Panera leads parade of disappointing earnings
Panera Bread Co. reported Tuesday that first-quarter net income fell sharply, reflecting a charge related to the reduction of company-owned new store openings and the rapid rise of wheat costs.
Despite the rise in wheat costs, the Richmond Heights-based bakery cafe company said it was able to improve margins by better managing its costs and pricing, and by dropping its Crispani pizza product.
Same-store sales, an important measure of a retailer’s performance, were hurt by the shift of the Easter holiday from the second quarter in 2007 to the first quarter of 2008. Company-owned bakery-cafe same-store sales rose 3.3 percent in the first quarter and franchised unit sales rose 1.7 percent.
The company reaffirmed its earnings-per-share expectation of $2 to $2.11 for fiscal 2008, a growth rate of 12 percent to 18 percent. It also increased and narrowed its earnings-per-share target for the second quarter to a range to 40 cents to 44 cents from a range of 37 cents to 43 cents. This would be an increase of 3 to 13 percent from second-quarter 2007 results of 39 cents per share.
Savvis Inc., based in Town and Country, on Tuesday dropped its full-year revenue forecast by more than 6 percent, largely due to pricing pressure and low demand for its network services.
It now expects 2008 revenue in the range of $840 to $870 million — down from February guidance of $910 to $925 million, and less than the $905.5 million average expectation of Wall Street analysts polled by Thomson Reuters.
Savvis, which provides information-technology infrastructure services and data hosting, turned in a second-quarter net loss of $4.2 million, or 8 cents a share, which was better than a 13-cent loss expected by analysts online payday loan. In the first quarter of 2007, the company’s results included a one-time gain of $125.2 million on an asset sale.
Clayton-based Olin Corp.’s stock tumbled 11 percent Tuesday after providing a second-quarter earnings estimate that displeased some on Wall Street. The company made the forecast when it reported first-quarter results late Monday that were in line with expectations.
The company projected Monday that its second-quarter profit per share would be 45 cents to 50 cents versus a 49-cent average estimate among analysts polled by Thomson Reuters.
However, an analyst with BB&T Capital Markets, who had expected a forecast of 60 cents a share, described the second-quarter figure as "disappointing," according to Bloomberg News.
Olin, which makes chemicals and ammunition, said its sales were improved during the first quarter from a year ago because of the acquisition of chemical maker Pioneer Cos.
Patriot Coal Corp., the mining company spun off from Peabody Energy Corp. on Nov. 1, had a first-quarter loss compared with a profit for the same period last year, when the company benefitted from asset sales.
The 2007 results are stated to reflect how Creve Coeur-based Patriot would have performed as a standalone company. Patriot’s revenue rose even though sales volume declined.
Patriot President and Chief Executive Richard M. Whiting said in a statement that the company anticipated "solid financial performance" for the remainder of the year.
GAIL APPLESON, RACHEL MELCER, CHRISTOPHER BOYCE AND JEFFREY TOMICH
Filed under: economics by Specialist