Key Developments: Sears Holdings Corporation (SHLD.O)
90.40USD
9 Feb 2010
$0.47 (+0.52%)
$90.40
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$91.80
$89.20
1,679,729
1,765,921
$106.06
$34.27
Latest Key Developments
Sears Holdings Corporation Issues Q4, FY 2010 Earnings Outlook Above Analysts' Estimates
Sears Holdings Corporation announced that for fourth quarter of 2010, it expects net income to be between $385-$465 million or between $3.36-$4.06 per diluted share (EPS). For fiscal 2010, it expects net income to be between $190-$270 million or between $1.61-$2.29 EPS, which also excludes the potential fourth quarter impact, if any, related to store closings and impairment charges, restructuring activities including severance, and mark-to-market gains and losses on hedge transactions executed by Sears Canada. For fiscal 2010, it expects adjusted EBITDA of $1.720-$1.830 billion. According to Reuters Estimates, analysts were expecting the Company to report net profit of $315 million and EPS of $2.60 for fourth quarter of 2010 and net profit of $183 million, EPS of $1.38 and EBITDA of $1.462 billion for fiscal 2010.
Sears Holdings Corporation Announces Increased Share Repurchase Authorization
Sears Holdings Corporation announced that its Board of Directors has approved the repurchase of up to an additional $500 million of the Company's common shares. This authorization is in addition to the $82 million worth of shares that currently remain available for repurchase under the Company's existing repurchase program. Share repurchases may be implemented using a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, the purchase of call options, the sale of put options or otherwise, or by any combination of such methods. Timing of repurchases is dependent on prevailing market conditions, alternative uses of capital and other factors.
The California Attorney General Reaches $8.7 Million Settlement With Sears Holdings Corporation's Kmart, Sues Target Corp.-DJ
Dow Jones reported that The California attorney general's office reached an $8.65 million settlement with Sears Holdings Corporation's Kmart stores and filed a similar lawsuit against Target Corp., seeking to block it from allegedly dumping hazardous waste in local landfills. The Kmart settlement includes civil penalties, costs and funding for projects to improve environmental protection in California. Meanwhile, the attorney general's office said Target carries and handles hundreds of items with hazardous properties, including bleach, paints, pesticides, aerosol products, oven cleaners and automotive products. It noted Target is responsible for properly handling and disposing of products that are damaged during shipping or stocking, returned to the store by customers or removed because they are past their expiration date.
GE Capital Co-Leads $4 Billion Loan For Sears Holdings Corp.
GE Capital, Corporate Retail Finance announced it co-led a $4 billion asset-based credit facility for Sears Holdings Corp. The loan will be used for working capital needs. GE Capital Markets served as joint lead arranger.
Kmart Corporation Announces Extension Of Credit Facility
Kmart Corporation announced that it has extended the maturity date of its revolving credit facility by entering into an amended credit agreement which has an expiration date of June 22, 2012. Its original credit agreement, which was set to expire on March 24, 2010, provided $4.0 billion of borrowing capacity, however only approximately $3.8 billion had been available since September 2008 when an affiliate of Lehman Brothers notified it would no longer fund its proportionate share of the Original Agreement. As part of the Amended Agreement, its borrowing capacity under the Original Agreement will be increased over the original amount to $4.1 billion until March 24, 2010. The amended terms and conditions of the asset based credit facility provide for a bifurcation of the existing $4 billion facility into a $2.4 billion tranche maturing on June 22, 2012 and bearing an interest rate of London Interbank Offered Rate (LIBOR) plus 4.00%, with a LIBOR floor of 1.75%, and a $1.7 billion tranche maturing March 24, 2010, bearing an initial interest rate of LIBOR plus 0.875%. The transaction was led by Banc of America Securities LLC, Wells Fargo Retail Finance, and GE Capital Markets, as Joint Lead Arranger and Joint Book Runners, which collectively committed $1.2 billion, and was supported by many other financial institutions.
Sears Holdings Corp. Issues Q4, FY 2009 Outlook; Q4 2009 EPS Outlook Above Analysts' Estimates
Sears Holdings Corp. announced that for the fourth quarter of 2009, it expects net income to be between $300 million and $380 million, or between $2.44 and $3.09 per fully diluted share (EPS). The expectation of fourth quarter net income and EPS excludes the potential impact, if any, related to store closings, restructuring activities including severance, mark-to-market gains and losses on hedge transactions executed by Sears Canada and impairment of goodwill and other intangible assets as prescribed in Statement of Financial Accounting Standards No. 142. For fiscal 2009, the Company expects net income to be between $163 million and $243 million, or between $1.27 and $1.90 per fully diluted share, which also excludes the potential fourth quarter impact, if any, related to store closings, restructuring activities including severance, mark-to-market gains and losses on hedge transactions executed by Sears Canada and impairment of goodwill and other intangible assets as prescribed in Statement of Financial Accounting Standards No. 142. According to Reuters Estimates, analysts were expecting the Company to report EPS of $1.90 for the fourth quarter of 2009.
Sears Holdings Corp.'s Michael D. Collins Assumes Chief Financial Officer Role
Sears Holdings Corp. announced that effective immediately, Michael D. Collins, previously Senior Vice President, Finance will begin serving as the Company's Chief Financial Officer. On October 13, 2008, the Company named Collins to succeed J. Miles Reidy who will be leaving the Company before the end of the fiscal year.
Sears Holdings Corp. Withdraws H2, FY 2008 EBITDA Outlook; Comments On Q3, Q4 2008 Comparable Store Sales Outlook
Sears Holdings Corp. announced that EBITDA forecast mentioned in the August 28, 2008 press release is no longer relevant given its assumption of flat to modest comparable store sales declines in the third and fourth quarters of 2008. According to Reuters Estimates, analysts were expecting the Company to report EBITDA of $225 million and $891million for the third and fourth quarters of 2008 respectively; EBITDA of $1.7 billion for fiscal 2008. The Company cited the severe conditions in the economy, as the primary reason for withdrawing the EBITDA outlook.
Sears Holdings Corp. To Shut 12 Stores Including Four Kmarts, Across U.S.-DJ
Dow Jones reported that according to the Chicago Tribune, Sears Holdings Corp. plans to close eight Kmart stores and four Sears stores early next year.
Sears Holdings Corp. Announces Resignation Of J. Miles Reidy As Chief Financial Officer-Form 8-K
Sears Holdings Corp. announced in its Form 8-K the resignation of J. Miles Reidy as Chief Financial Officer of the Company prior to the end of the 2008 fiscal year.
UPDATE 2-Weak television sales outlook drags down hhgregg shares
* Shares fall nearly 9 pct (Recasts; adds analyst comment, conference call details, updates share movement)
Earnings vs. 
Estimates
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