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NBC Universal's quarterly profit plunges 30%
NBC Universal's fourth-quarter profit dropped 30%, General Electric Co. said Friday, on a sharp decline in DVD sales at Universal Studios, along with costs related to NFL rights and increased costs to develop programming for the NBC Televsion Network.
Segment profit at NBC Universal was $602 million, down from earnings of $865 million in the fourth quarter of 2008.
Revenue fell 4% to $4.27 billion. See story on GE's earnings.
General Electric /quotes/comstock/13*!ge/quotes/nls/ge (GE 16.43, +0.41, +2.56%) has agreed to sell a 51% stake in NBC Universal to Comcast Corp. /quotes/comstock/15*!cmcsa (CMCS.A 16.26, +0.28, +1.75%) /quotes/comstock/15*!cmcsk (CMCS.K 15.56, +0.26, +1.67%) in a deal that must still meet regulatory approval.
The companies are preparing joint filings and other notices for the Justice Department and the Federal Trade Commission, GE Chief Financial Officer Keith Sherin said on a conference call.
In the fourth quarter, Universal Studios faced difficult comparisons with a year-earlier period that included the strong DVD sales of "Mamma Mia," "The Incredible Hulk" and "Wanted," and there were no major theatrical releases during the final three months of 2009.
Operating profit at Universal fell $200 million, Sherin said, while revenue declined by more than $400 million.
Universal Pictures had a dismal 2009, marred by flops such as "Land of the Lost" starring Will Ferrell, a remake of the 1970s television show for youngsters, as well as "Funny People" starring Adam Sandler.
"Land Of the Lost" took in just $49.2 million domestically, while "Funny People" scraped up $51.9 million. The studio fired co-chairmen Marc Shmuger and David Linde in October.
At NBC, profit was hampered National Football League rights fees and "new programming investments that we have been making," Sherin said.
The network's moving quickly to develop one-hour dramas for the 10 p.m. time slot next season after the failure of Jay Leno's nightly primetime program. Leno will return to "The Tonight Show," which he hosted for 17 years, on March 1.
Conan O'Brien, who had been hosting "Tonight" for the last several months, refused to move the show back 30 minutes to make room for a truncated Leno effort. O'Brien's reached a deal to leave the network in a scenario that has become a public-relations catastrophe for NBC. See related story.
Sherin said advertising sales are improving at NBC, where rates were up by a low-double-digit percentage in the fourth quarter and up by more than 20% in the current period.
Cable was again a positive note for NBC Universal in the fourth quarter, showing an 8% increase in operating profit, with solid growth at USA, Syfy, Bravo and Oxygen, Sherin said.
First-quarter advertising rates at the cable networks are up more than 30%, Sherin explained, after increasing by the same amount during the fourth quarter.
http://www.marketwatch.com/story/nbc-universal-profit-plunges-30-2010-01-22?reflink=MW_news_stmp
AMD Advanced Micro Shares Fall 12% As Turnaround Bet Wanes
Advanced Micro Devices Inc. (AMD) shares fell as much as 12% Friday, following a quarterly report that topped expectations, as AMD's turnaround traction leaves Wall Street to wonder how AMD will compete against rival Intel Corp. (INTC)
AMD shares were recently down 10% to $8.05. Before today, the stock had more than quadrupled over the past year, helped by a recovery in the chip sector and the spin off of its money-losing manufacturing operations into a joint venture, Globalfoundries.
The Sunnyvale, Calif-based chip maker posted three years of losses until Thursday and faced worries of insolvency just a few years ago. But Chief Executive Dirk Meyer, taking the reins in 2008, has managed to complete a restructuring to focus AMD on designing new chips while also settling the long legal war against Intel, adding a $1.25 billion settlement to AMD's coffers last quarter.
Since the settlement in November, AMD's shares have gained more than 66%. And today's drop, said Auriga analyst Dan Berenbaum, reflects an acknowledgement by investors that playing the turnaround story may no longer offer big returns.
http://online.wsj.com/article/BT-CO-20100122-709146.html?mod=rss_Hot_Stocks
Markets tumble as China, Alcoa hit stocks worldwide
AA ER 1/11/2010 Monday AH
Shares of Alcoa Inc. fell 11% Tuesday, the day after the aluminum giant reported a narrower fourth-quarter loss.
While Alcoa could point to improving aluminum prices and lower corporate costs, the market focused on its ongoing struggle to boost sales in a crowded marketplace and on adjusted per-share earnings that fell short of analysts' expectations.
After Monday's closing bell, Alcoa reported a quarterly net loss was $277 million, or 28 cents a share, compared to a year-earlier loss of $1.2 billion or $1.49 a share, when aluminum prices and demand collapsed.
Sales fell 4% to $5.4 billion. Excluding charges, Alcoa said it earned 1 cent a share.
Analysts had expected Pittsburgh-based Alcoa /quotes/comstock/13*!aa/quotes/nls/aa (AA 14.41, -0.82, -5.38%) to earn 5 cents a share on sales of $4.9 billion, according to FactSet Research.
Alcoa shares closed at $15.92, pressuring the Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (INDU 10,395, -207.68, -1.96%) which includes it as one of its 30 components.
Alcoa, which has lost more than $2 billion over the past year, said it generated positive free cash flow for the first time since June 2008. Free cash flow, or money left over after all the expenses are paid, was up $947 million from the third quarter.
"Markets continue to be very weak relative to last year," Alcoa Chief Financial Officer Chuck McLane said in the conference call. Compared with the year-ago quarter, sales to aerospace makers fell 21%, while sales to auto makers dropped 43%. Primary metal sales tumbled 35%.
"Currency and energy costs dragged down results in the quarter by $65 million, and certain end markets such as aerospace and industrial gas turbines continue to experience weakness from destocking," wrote J.P. Morgan analysts in a note to clients early Tuesday. "However, we remain positive on shares of [Alcoa] as the aluminum price continues to exhibit strength ... in the absence of a full economic recovery as of yet."
Goldman Sachs Posts Blowout 4Q, Restrains Compensation
ER before Open today 1/21/2010
Goldman Sachs Group Inc. (GS) on Thursday delivered its richest quarterly profit in the investment bank's 140-year history, driven in part because it restrained compensation amid a public outcry about excessive pay.
The most profitable bank on Wall Street capped off a record year with quarterly earnings of nearly $5 billion, an amount that eclipsed the combined returns of rivals JPMorgan Chase & Co. (JPM), Morgan Stanley (MS), Citigroup Inc. (C), and Bank of America Corp. (BAC). It also highlights Goldman's revival, after all the federal aid, from a financial crisis that toppled many of its competitors.
But, the results also revealed that Goldman is being swayed by intense criticism about gilded pay packages so soon after the government's massive bailout of the banking industry. It also comes as President Obama is expected later Thursday to propose limits on the size and risk-taking of the nation's biggest banks.
The most-watched topic, compensation, took many on Wall Street by surprise. The bank set aside $16.2 billion for compensation for its employees in 2009, well below the record many expected the firm would announce.
Goldman sought to deflect criticism by cutting back how much it put into the bonus pool and giving $500 million in charity. That lowered amount helped lift profits, and kept the investment bank from toppling the record $20.2 billion in compensation it devoted to employees in 2007. The figure for 2009 represented 35.8% of revenues for the year, down from 48% a year earlier.
That said, Goldman's 32,500 employees will still receive a payout averaging about a half-million dollars for the year. It was still not known how much Goldman Chief Executive Lloyd C. Blankfein would be paid for 2009, though the company's top 30 executives will receive their bonus in stock that cannot be sold for at least five years.
Blankfein said the reduction in compensation is a "recognition of the broader environment, resulted in our lowest ever compensation to net revenues ratio." He went on to say that "despite significant economic headwinds, we are seeing signs of growth."
Goldman posted quarterly profit of $4.95 billion, or $8.20 a share, for the quarter, on revenue of $9.62 billion. Analysts surveyed by Thomson Reuters predicted earnings of $5.20 a share and revenue of $9.65 billion.
In the year-earlier period Goldman had a loss of $2.29 billion, or $4.97 a share, on negative revenue of $1.58 billion. The prior-year period ended on Nov. 28, before the company shifted to a different reporting calendar.
Fixed-income trading slowed after extraordinary profits in the previous three quarters. Revenue from fixed income, currency and commodities was $3.97 billion, down from the $5.99 billion in the third quarter.
But investment-banking revenue moved higher, after falling almost a third in the third quarter. It rose 82% from the previous quarter to $1.64 billion.
Revenue from principal investments, those made with the firm's own capital, fell from the previous period.
The investment bank's impressive results in 2009 propelled it further ahead of rivals, many of which have struggled to overcome the credit crisis. Goldman has been able to take on more risk and grab market share while competitors were licking their wounds.
Shares fell 2.6% to $162.97 on the New York Stock Exchange. The stock doubled in 2009 but is been down slightly for the year to date.
Citi Logs $7.6 Billion Loss as Investment Bank Struggles
ER before Open 1/20/2010
Citigroup Inc., still limping along, posted a $7.6 billion net loss in the fourth quarter as its investment bank missed out on the resurgence that has lifted many rival firms.
The loss dragged Citigroup to its second unprofitable year in a row, reinforcing lingering questions among some analysts and investors about the New York company's strategy.
The bulk of the fourth-quarter net loss stemmed from accounting charges related to Citigroup's repayment of $20 billion of federal bailout funds late last year. But excluding that hit, the results still were lackluster. Revenue of $5.4 billion was down about 4%.
Wednesday, July 29
Equity Residential profit down; dividend cut (5:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Equity Residential Properties Trust (EQR: news, chart, profile) reported Wednesday afternoon net income dropped to $105.9 million, or 35 cents share, compared to net income of $139.9 million, or 46 cents a share, in last year's quarter. The apartment owner said its profit was hit by lower gains from property sales. Funds from operations were 58 cents a share, down from 64 cents. As expected, Equity Residential cut its annual dividend to $1.35 a share from $1.93 a share. The real estate operator kept its sales view for the year. The company said it has been able to retain existing residents at renewal rents higher than it expected in this tough economic climate. Equity Residential shares closed at $21.87.
Aflac net profit falls 35% on investment losses(4:31 pm ET)
SAN FRANCISCO (MarketWatch) -- Insurance company Aflac (AFL: news, chart, profile) reported Wednesday afternoon second-quarter net income fell 35% to $314 million, or 67 cents a share, from a year ago. Aflac said its profit was hurt by investment losses mostly related to CIT Group, the troubled lender. The insurer said its operating earnings rose 15.3% to $562 million, or $1.20 a share. Analysts had forecast $1.14 a share. Aflac backed its 2009 earnings forecast, excluding foreign currency changes. The company said it was cautious about sales growth. Separately, Aflac said it will buy Continental American Insurance Company for $100 million. Aflac shares closed at $35.45 ahead of the earnings report. The stock is down 23% this year.
Hartford reports $15 million quarterly net loss(4:30 pm ET)
SAN FRANCISCO (MarketWatch) -- Hartford Financial Services (HIG: news, chart, profile) reported a second-quarter net loss of $15 million late Wednesday, versus net income of $543 million a year earlier. The loss was 6 cents per common share, versus a profit of $1.73 per common share in the same period last year. Core earnings, which exclude things like net realized investment gains and losses, were $622 million in the latest period, down 11% from a year earlier. Core earnings available to common shareholders were $1.90 a share, versus $2.22 a share last year. Hartford was expected to make a profit of $1.16 a share, according to the average estimate of 18 analysts in a Thomson Reuters survey.
Tesoro swings to loss on weak refining margins(4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- Oil refiner Tesoro Corp. (TSO: news, chart, profile) , facing poor margins and weak industrial fuel demand, reported late Wednesday a second-quarter loss of $45 million, or 33 cents a share. The company posted net income of $4 million, or 3 cents a share, a year ago. Revenue for the three months ended June 30 fell 53% to $4.18 billion from $8.89 billion. Analysts polled by FactSet had predicted the San Antonio, Texas, company would report a loss of 28 cents a share on $4.16 billion in revenue. Tesoro shares fell 2 cents ahead of the report to close at $13.07. The share price is down 17% over the past 12 months.
Lincoln National swings to a second-quarter loss(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Lincoln National Corp. (LNC: news, chart, profile) said late Wednesday that it swung to a second-quarter loss of $161.4 million, or 62 cents a share, from a profit of $124.7 million, or 48 cents a share, in the year-ago period. Lincoln reported income from operations of 81 cents a share. Revenue fell to $1.95 billion from $2.49 billion last year. Analysts surveyed by FactSet Research estimated results of 83 cents a share on revenue of $2.52 billion.
Visa reports quarterly net income of $729 million(4:19 pm ET)
SAN FRANCISCO (MarketWatch) -- Visa Inc. (V: news, chart, profile) said late Wednesday that fiscal third-quarter net income came in at $729 million, or 97 cents per class A common share. That compares to net income of $422 million, or 51 cents per class A common share, a year earlier. Net operating revenue in the latest period was $1.6 billion, up 2% over the prior year. Payments volume fell slightly in the U.S., but continued to grow elsewhere, Visa said. On an adjusted basis, which includes restructuring and purchase amortization, net income for the latest quarter was $744 million, or 98 cents per class A common share. Excluding the impact from the sale of the company's equity interest in VisaNet do Brasil, adjusted quarterly net income was $507 million, or 67 cents per class A common share, Visa said. The company was expected to make 64 cents a share on net revenue of $1.64 billion, according to the average estimate of 25 analysts polled by Thomson Reuters.
Flextronics International swings to a loss(4:13 pm ET)
SAN FRANCISCO (MarketWatch) -- Flextronics International Inc. (FLEX: news, chart, profile) on Wednesday reported a fiscal first-quarter loss of $154 million, or 19 cents a share, on revenue of $5.78 billion. During the same period a year ago, the electronics contract manufacturer earned $130 million, or 16 cents a share, on $8.35 billion in sales. Excluding one-time items, Flextronics would have earned $63 million, or 8 cents a share. Analysts surveyed by Thomson Reuters had forecast the company to earn 6 cents a share on $5.55 billion in sales. For its second quarter, Flextronics expects to break even or earn up to 4 cents a share, on sales, in a range of $5.2 billion to $6 billion. Excluding one-time items, Flextronics estimates it will earn 7 cents to 11 cents a share.
Symantec quarterly profit tumbles 58%(4:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Symantec Corp. (SYMC: news, chart, profile) said Wednesday its fiscal first-quarter net income fell sharply to $73 million, or 9 cents a share, from $172 million, or 20 cents a share in the same period a year earlier. Revenue for the period ended in early July fell to $1.43 billion from $1.65 billion, the security software maker said. Excluding special items, Symantec said earnings were 34 cents a share. Analysts on average had expected Symantec to post earnings excluding special items of 35 cents a share for the quarter, and $1.49 billion in revenue, according to data compiled by Thomson Reuters.
Aspen quarterly operating profit tops forecasts(4:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Aspen Insurance Holdings (AHL: news, chart, profile) reported quarterly operating profit late Wednesday that exceeded analyst forecasts. The reinsurer said it generated net income of $110.4 million in the second quarter, while operating earnings, which exclude net realized investment gains and losses, came in at $1.14 per ordinary share. This compares to net profit of $126.9 million and operating earnings of $1.44 per share a year earlier. Aspen was expected to make $1.04 a share, according to the average estimate of five analysts in a Thomson Reuters survey.
Varian Medical fiscal third-quarter profit rises(4:08 pm ET)
SAN FRANCISCO (MarketWatch) -- Varian Medical Systems Inc. (VAR: news, chart, profile) said late Wednesday that its fiscal third-quarter profit rose to $85.4 million, or 68 cents a share, from $74.2 million, or 58 cents a share, in the year-ago period. Revenue rose to $509.8 million from $507.4 million last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 63 cents a share on revenue of $535 million.
LSI sees losses grow as revenue declines(4:07 pm ET)
SAN FRANCISCO (MarketWatch) -- LSI Corp. said its net loss deepened for the second quarter on a sharp drop in revenue. For the quarter ended July 5, the company (LSI: news, chart, profile) said net losses were $61.5 million, or 9 cents a share, compared to a loss of of $13.6 million, or 2 cents a share, for the same period last year. On a non-GAAP basis, the company said it would have earned 1 cent per share for the recent period. Revenue fell 25% to $520.7 million. Analysts were expecting a loss of 2 cents a share on revenue of $506.3 million, according to consensus estimates from Thomson Reuters.
Hospira net income fell 63%, lifts guidance(1:53 pm ET)
MADRID (MarketWatch) -- Pharmaceutical and medication delivery group Hospira (HSP: news, chart, profile) on Wednesday said second-quarter net income fell to $25.5 million, or 16 cents a share, against $69.1 million, or 43 cents a share in the same period a year ago. Adjusted earnings per share were 73 cents, against 57 cents. Analysts polled by FactSet research were forecasting earnings of 60 cents a share, on average. Net sales rose 6.1% to $956.9 million against $901.6 million. Christopher B. Begley, chairman and chief executive officer, said the company delivered a "very good second quarter," with strong sales and earnings. The company lifted its full-year adjusted earnings guidance, and now expects it to range between $2.70 and $2.75 per share, with expectations for net sales for the year to rise approximately 4% to 6% on a constant-currency basis. Including the impact of foreign exchange, the company expects net sales to be flat to slightly up. (Corrects headline and lead to reflect a decline in the second quarter from a year ago. Corrects company description and the FactSet earnings estimate.)
Sealed Air posts lower quarterly profit(1:49 pm ET)
NEW YORK (MarketWatch) -- Sealed Air Corp. (SEE: news, chart, profile) said Wednesday that its second-quarter net profit fell to $60.5 million, or 33 cents a share, from $62.6 million, or 34 cents a share, in the year-earlier. Revenue for the quarter dropped 20% to $1.03 billion from $1.28 billion. The packaging materials and equipment manufacturer said adjusted earnings for the quarter were 34 cents a share, in line with the FactSet consensus forecast. The company said it still expects 2009 earnings to be in the range of $1.17 to $1.37 a share, including items. (Corrects the fiscal quarter.)
Bewkes: 'TV Everywhere' discussions going well(12:01 pm ET)
CHICAGO (MarketWatch) -- Time Warner Inc.'s (TWX: news, chart, profile) discussions with cable, satellite and telephone companies about joining its "TV Everywhere" online video initiative have been constructive, said Chairman Jeff Bewkes during a conference call on Wednesday. Bewkes also said "most programmers" will share Time Warner's view that the online streaming of TV shows should only be available to those who are paying for a video subscription. "We think it's a very powerful and pretty obvious natural evolution of...what consumers will easily embrace," he said.
Time Warner: Shift from DVD to digital 'positive'(11:39 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chairman Jeff Bewkes said Wednesday that the gradual transition away from DVDs to digital forms of home entertainment distribution combines "a set of positive developments" that should "make the business healthier." Speaking to analysts on a conference call, Bewkes pointed out that amid widespread concern about DVD sales, the biggest "tentpole" titles still sell well, and digital forms such as online downloading offer greater margins. The executive said the trend toward more rentals of movies and TV shows than purchases is unlikely to adversely affect overall profits for those properties. "We've been there before," he commented. "We saw rental as the chief means of everybody watching films back in the days of Blockbuster VHS rentals. And yet, it moved to sell-through because it was more convenient for people to keep it.."
Time Warner CEO: Turner to up ad dollar share(11:16 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc.'s (TWX: news, chart, profile) Turner Broadcasting cable channels, led by TNT and TBS Superstation, are poised to take dollars away from the Big Four broadcast networks as the "upfront" ad selling season winds down, Time Warner Chief Executive Jeff Bewkes told analysts Wednesday. The upfront is the period during June and July when networks sell commercial time in advance for the fall season. Speaking during a conference call, Bewkes added that overall upfront spending will probably be down in 2009 compared with last year, as more advertisers plan to buy airtime during the upcoming season. "We do think that it could make the upfront a little less of an indicator for the health of the ad market than it usually is," Bewkes said.
Pritchard Capital cuts National Oilwell Varco(9:14 am ET)
NEW YORK (MarketWatch) -- National Oilwell Varco Inc. (NOV: news, chart, profile) drew a downgrade to neutral from buy at Pritchard Capital Partners on Wednesday. Analsyts cut their price target to $35 a share from $40 a share. "Although National Oilwell Varco reiterated its anticipated orders from Brazil would come by year end, we believe sentiment may work against the stock near-term given potential further delays in the Petroleo Brasileiro S.A. process," analysts said. "We believe there is a greater risk to earnings in 2010 and 2011 due to the reduced order flow as well as other industry pressures that have materialized with greater severity than the company had anticipated earlier in the year."
ConocoPhillips profit falls 76%(8:40 am ET)
NEW YORK (MarketWatch) -- ConocoPhillips (COP: news, chart, profile) said Wednesday its second-quarter profit fell by more than $4 billion to $1.3 billion, or 87 cents a share, from $5.4 billion, or $3.50 a share in the year-ago period. The Houston-based oil giant was expected to earn 85 cents a share, according to a survey of Wall Street analysts by FactSet Research. The company's exploration and production unit earned $725 million, down from $4 billion. "The decrease was primarily due to the impact of significantly lower commodity prices, partially offset by higher volumes and lower operating costs," the company said.
Tidewater net income falls on Venezuelan costs (8:32 am ET)
NEW YORK (MarketWatch) -- Tidewater Inc. (TDW: news, chart, profile) said Wednesday first-quarter net income fell by about half to $44.5 million, or 86 cents a share, from $84.8 million, or $1.64 a share in the year-ago period. Revenue fell to $326.6 million from $340 million. The New Orleans shipping company for the energy business booked a non-cash charge of 93 cents per share related to its Venezuelan operations, where 11 of its vessels were seized as part of a program by the government. Wall Street analysts expected earnings of $1.79 a share and revenue of $330.4 million, according to a survey by FactSet Research.
Meredith reports quarterly loss(8:26 am ET)
BOSTON (MarketWatch) -- Marketing group Meredith Corp. (MDP: news, chart, profile) on Wednesday reported a fiscal fourth-quarter loss of $164 million, or $3.64 a share, compared with a profit of $19 million, or 41 cents a share, for the same period in 2008. Revenue for the quarter slipped to $346 million, from $376 million. Excluding various charges, Meredith would have posted adjusted earnings per share from continuing operations of 55 cents versus 75 cents. The company added it made a $100 million debt payment on June 30, which reduced its debt load to $380 million. The company secured a new $75 million private placement of debt on July 13. Meredith added its sees fiscal first quarter earnings coming in between 30 cents to 35 cents a share, and full-year fiscal 2010 earnings of $1.60 to $2.00 a share.
Southern earnings rise to 61 cents a share(8:04 am ET)
NEW YORK (MarketWatch) -- Southern Co. (SO: news, chart, profile) said Wednesday that second-quarter earnings were $479 million, or 61 cents a share, compared to $416 million, or 54 cents a share, in the same period last year. Revenue was $3.89 billion compared with $4.22 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 59 cents and sales of $4.28 billion for the electric utility.
MeadWestvaco profit jumps 123%(8:03 am ET)
NEW YORK (MarketWatch) -- MeadWestvaco Corp. (MWV: news, chart, profile) reported on Wednesday a rise in its second-quarter profit to $125 million, or 72 cents a share, compared to $56 million, or 33 cents a share, in the year-ago period. Profits rose despite a fall in net sales to $1.43 billion from $1.71 billion in the second quarter of 2008. The latest results include after-tax income of $112 million, or 65 cents a share, from excise tax credits for companies that use alternative fuel mixtures to produce energy to operate their businesses. "We are increasing the value we deliver to shareholders by making disciplined choices about our participation in key markets, and by strengthening our business model with permanent cost reductions and ongoing operating productivity," said John Luke, chairman and chief executive officer.
Watson Pharma lifts forecast as profit dips 12%(7:56 am ET)
LONDON (MarketWatch) -- Watson Pharmaceuticals Inc. (WPI: news, chart, profile) said Wednesday that its second-quarter net profit fell 12% to $53 million, or 46 cents a share, from $60.3 million, or 53 cents a share, a year earlier, as the group also raised its 2009 outlook. Watson said net revenue in the quarter rose 8.8% to $677.8 million and adjusted earnings were 61 cents a share. Analysts polled by FactSet had been expecting adjusted earnings of 57 cents a share on sales of $666.9 million. Watson said revenue growth was helped by the launch of new products in both its generic and branded businesses. The group lifted its forecast for 2009 earnings to a range of $2.13 to $2.21 a share.
Coca-Cola Enterprises turns to profit(7:50 am ET)
NEW YORK (MarketWatch) -- Coca-Cola Enterprises Inc. (CCE: news, chart, profile) said Wednesday that it earned $313 million, or 64 cents a share, in the second quarter compared to a loss of $3.17 billion, or $6.48 a share, in the year-ago period. On an adjusted basis, earnings per share were 67 cents versus 56 cents. Revenue fell to $5.91 billion compared to $5.94 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 50 cents and sales of $6 billion. The company lifted comparable full-year 2009 earnings-per-share expectations to a range of $1.44 to $1.49.
IAC/Interactive swings to profit (7:49 am ET)
NEW YORK (MarketWatch) -- IAC/Interactive Corp. (IACI: news, chart, profile) said on Wednesday that its second quarter net income was $40.8 million, or 28 cents a share, compared to last year's $421.6 million loss, or 60 cents a share. Last year's results included a discontinued operations loss of $360 million. Second quarter revenue dipped to $340 million, from $354.2 million.
Hess Corp. net income falls 89%(7:42 am ET)
NEW YORK (MarketWatch) -- Hess Corp. (HES: news, chart, profile) said Wednesday second-quarter net income fell to $100 million, or 31 cents a share, from $900 million, or $2.76 a share in the year-ago period. Exploration and production income fell to $215 million from $1 billion, while its loss from marketing and refining narrowed to $30 million from $52 million. Oil and gas production rose to 407,000 barrels per day, from 393,000 barrels a day. Revenue dropped to $6.8 billion from $11.7 billion. Refining operations generated a loss of $26 million compared with income of $3 million in the second quarter. Wall Street analysts expected Hess Corp. to earn 2 cents a share on revenue of $7.4 billion.
Wyndham's second-quarter profit falls(7:25 am ET)
NEW YORK (MarketWatch) -- Wyndham Worldwide Corp. (WYN: news, chart, profile) said Wednesday that its second-quarter profit was $71 million, or 39 cents a share, compared to $98 million, or 55 cents a share in the year-ago period. Net revenues were $920 million compared to $1.13 billion in the second quarter of 2008. On an adjusted basis, the hospitality company said earnings were 41 cents a share. Analysts surveyed by FactSet Research had expected, on average, earnings of 37 cents a share on revenue of $920 million. The latest quarter is the sixth in a row that Wyndam's earnings have beaten consensus estimates.
Jones Apparel posts higher quarterly profit(7:21 am ET)
NEW YORK (MarketWatch) -- Jones Apparel Group Inc. (JNY: news, chart, profile) said Wednesday that its second-quarter profit rose to $13.1 million, or 15 cents a share, from $10.6 million, or 12 cents a share, in the year-earlier period. Excluding items, the maker of apparel, footwear and accessories said it would have earned 29 cents a share. Analysts, on average, expected the company to earn 9 cents a share, according to FactSet Research. Revenue including licensing income slipped to $803.9 million from $829.4 million.
American Tower profit down 65%, reaffirms guidance(7:19 am ET)
LONDON (MarketWatch) -- American Tower Corp. (AMT: news, chart, profile) on Wednesday reported a 65% drop in second-quarter net profit to $56.3 million, or 14 cents a share, from $158.9 million, or 38 cents a share, a year earlier. Revenue for the quarter rose 7.5% to $423.4 million. The company, which operates broadcast and wireless communications sites, said its earnings were impacted by certain items in its tax provision that resulted in an effective tax rate of around 50%. The effective tax rate for the full year should be between 42% and 44%, it added. Analysts polled by FactSet were expecting earnings of 17 cents a share. The company reaffirmed its 2009 guidance for adjusted EBITDA of $1.16B to $1.19B.
Sprint Nextel loses 13 cents a share(7:12 am ET)
NEW YORK (MarketWatch) -- Sprint Nextel Corp. (S: news, chart, profile) said Wednesday that it lost $384 million, or 13 cents a share in the second-quarter. In the same period a year ago Sprint lost $344 million, or 12 cents a share. Revenue fell to $8.1 billion compared to $9.1 billion. Analysts polled by FactSet Research estimated, on average, a loss of 4 cents a share and sales of $8.2 billion.
Tuesday, July 28
Nortel gets Canada, U.S. court OK on Ericsson deal(5:19 pm ET)
SAN FRANCISCO (MarketWatch) -- Nortel Networks Corp. (NRTLQ: news, chart, profile) said late Tuesday its principal operating subsidiary Nortel Networks Ltd. received approvals from Canadian and U.S. courts on the proposed sale of its CDMA business and LTE Access assets to Ericsson (ERIC: news, chart, profile) for $1.13 billion. As a part of the deal, Ericsson will offer employment to about 2,500 Nortel employees. The sale is expected to close later this year.
Norfolk Southern profit nearly cut in half(5:07 pm ET)
SAN FRANCISCO (MarketWatch) -- Norfolk Southern Corp. (NSC: news, chart, profile) on Tuesday reported a second-quarter profit of $247 million, or 66 cents a share, down from $453 million, or $1.18 a share, a year ago. Sales fell 33% to $1.9 billion. Analysts polled by FactSet Research were looking for the railroad operator to post a profit, on average, of 63 cents a share with sales of $2.03 billion. "Second-quarter results obviously reflect the impact of the recession," CEO Wick Moorman said in a statement.
Conseco sees improved second-quarter results(4:43 pm ET)
SAN FRANCISCO (MarketWatch) -- Conseco (CNO: news, chart, profile) late Tuesday said it expects to report second-quarter net income of $15.8 million to $27.8 million, improving from a net loss of $488.5 million a year earlier. On a per-share basis, the company sees a profit of 9 cents to 15 cents, including 7 cents to 13 cents a share in net realized investment losses. In the same period in 2008, the company posted a net loss of $2.65 a share, the insurer said. Conseco also forecast net operating income of 22 cents a share in the quarter, up 69% from 13 cents a share in the same quarter last year.
TECO Energy boosts profit 18% on higher rates (4:40 pm ET)
SAN FRANCISCO (MarketWatch) -- Florida power, gas and coal company TECO Energy Inc. (TE: news, chart, profile) reported late Tuesday second-quarter net income rose to $60.9 million, or 29 cents a share, from $51.4 million, or 24 cents, a year ago. The company pinned the increase on higher state-approved electricity rates. Revenue for the three months ended June 30 fell to $825.2 million from $887.2 million. Analysts surveyed by FactSet Research had, on average, expected the parent of Tampa Electric to report earnings of 23 cents a share on $864 million in revenue. The company stuck by its earlier full-year earnings forecast of $1.00 to $1.15 a share. TECO shares fell 1.5% to close at $12.66 ahead of the report. The stock is down 34% over the past 12 months.
Arthur J. Gallagher says quarterly profit up 7% (4:41 pm ET)
SAN FRANCISCO (MarketWatch) -- Arthur J. Gallagher & Co. (AJG: news, chart, profile) said late Tuesday that second-quarter net income came in at $43.8 million, or 44 cents a share, up 7% from a year earlier when the insurance broker made $40.8 million, or 44 cents a share. Earnings from continuing operations in the latest period were also $43.8 million, or 44 cents a share, the company noted. Arthur J. Gallagher was expected to make 43 cents a share, according to the average estimate of 13 analysts in a Thomson Reuters survey. "Insurance rates were still soft in the second quarter, the economy continues to adversely impact our clients' buying activities and investment yields are at all time lows," said J. Patrick Gallagher Jr., chief executive of Arthur J. Gallagher.
Fidelity Nat'l Info. second-quarter profit falls(4:34 pm ET)
SAN FRANCISCO (MarketWatch) -- Fidelity National Information Services (FIS: news, chart, profile) said late Tuesday that its second-quarter profit fell to $59.2 million, or 31 cents a share, from $71.9 million, or 37 cents a share, in the year-ago period. Revenue decreased to $834.8 million from $869.7 million last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 33 cents a share on revenue of $833.1 million.
Endurance reports quarterly net income of $149 mln(4:30 pm ET)
SAN FRANCISCO (MarketWatch) -- Endurance Specialty Holdings Ltd. (ENH: news, chart, profile) said late Tuesday that second-quarter net income came in at $149.1 million, or $2.42 per common share, down from a year earlier when the reinsurer made $103.3 million, or $1.54 per common share. Operating income, which excludes after-tax realized investment gains and losses and foreign exchange gains and losses, came in at $130.8 million, or $2.11 per common share, in the latest period, Endurance reported. The company was expected to make $1.45 a share, according to the average estimate of eight analysts in a Thomson Reuters survey.
Jakks Pacific warns of soft toy sales(4:27 pm ET)
SAN FRANCISCO (MarketWatch)-- Toymaker Jakks Pacific (JAKK: news, chart, profile) late Tuesday swung to a second-quarter net loss and forecast soft sales for its core product lines, including Hannah Montana, Pokemon and Cabbage Patch Kids. Jakks said it plans to cut costs. Such moves may result in job cuts and office space consolidation. Net loss was $406.5 million compared to net income of $4.2 million a year-earlier. Sales were $144.8 million, down from $145.3 million. A large chunk of the earnings loss came from a goodwill impairment charge related to a sustained decline in its market capitalization. Jakks said the charge will not affect its liquidity or ongoing business operations. Jakks shares are down 43% this year. The stock closed at $11.70 ahead of the earnings report.
Western Digital earnings fall 8%(4:27 pm ET)
SAN FRANCISCO (MarketWatch) -- Western Digital Corp. (WDC: news, chart, profile) on Tuesday reported a fiscal fourth-quarter profit of $196 million, or 86 cents a share, on revenue of $1.9 billion. During the same period a year ago, the maker of computer hard-disk drives earned $213 million, or 94 cents a share on $2 billion in revenue. Excluding one-time items, Western Digital would have earned $173 million, or 76 cents a share. Analysts surveyed by Thomson Reuters had forecast Western Digital to earn 26 cents a share on $1.58 billion in sales.
WellCare Health second-quarter profit rises(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- WellCare Health Plans Inc. (WCG: news, chart, profile) said late Tuesday that its second-quarter profit rose to $37 million, or 88 cents a share, from $11.1 million, or 26 cents a share, in the year-ago period. Revenue increased to $1.79 billion from $1.65 billion last year. Excluding one-time items, the company would have reported earnings of $1.42 a share for the latest quarter. For 2009, the company forecast adjusted net earnings of $2.75 to $2.95 a share. Analysts surveyed by Thomson Reuters currently expect yearly earnings of $2.07.
McKesson profit rises 23% on cost controls(4:19 pm ET)
SAN FRANCISCO (MarketWatch) -- McKesson Corp. (MCK: news, chart, profile) on Tuesday reported a first-quarter profit of $288 million, or $1.06 a share, up from $235 million, or 83 cents a share, a year ago. Sales at the health-care services and information technology company were mostly flat at $26.7 billion. Analysts polled by FactSet Research were looking for a profit, on average, of 86 cents a share with sales of $26.78 billion. The company raised its full-year outlook to a profit of between $4.15 and $4.30 a share. Wall Street previously forecast a profit for the year of $3.99 a share.
XL reports 66% drop in quarterly net income(4:13 pm ET)
SAN FRANCISCO (MarketWatch) -- XL Capital (XL: news, chart, profile) said late Tuesday that second-quarter net income came in at $80 million, or 23 cents a share, down 66% from a year earlier when the Bermuda-based insurance and reinsurance company made $238 million, or $1.33 a share. Operating income, which excludes net realized investment gains and losses, was $163 million, or 47 cents a share, in the latest period, XL said. The company was expected to make 62 cents a share, according to the average estimate of 15 analysts in a Thomson Reuters survey.
THQ swings to a profit for first fiscal quarter(4:11 pm ET)
SAN FRANCISCO (MarketWatch) -- THQ Inc. swung to a profit for its first fiscal quarter thanks to strong growth in video game sales for the period, led by the company's surprise hit "UFC 2009 Undisputed." For the quarter ended June 31, the company (THQI: news, chart, profile) reported net income of $6.4 million, or 9 cents a share, compared to a loss of $27.2 million, or 41 cents a share, for the same period the previous year. Excluding charges related to stock options and restructuring, THQ said its net earnings would have been $6.9 million or 10 cents a share, for the recent period. Revenue jumped 77% to $243.5 million. Excluding deferred revenue stemming from the sale of online-enabled games, the top line came in at $233.9 million, the company said. Analysts were expecting a loss of 8 cents a share on revenue of $203.5 million, according to consensus estimates from Thomson Reuters.
S&P cuts Valero to hold from buy(3:39 pm ET)
NEW YORK (MarketWatch) -- S&P Equity Research on Tuesday downgraded Valero (VLO: news, chart, profile) to hold from buy, but kept its 12-month price target for the refining giant at $20 a share. "With fuel demand and heavy and sour discounts expected to be pressured in 2009, we cut our '09 operating estimate by $1.03 to a loss per share of 3 cents," S&P said.
Ecolab earnings per share fall to 41 cents(3:03 pm ET)
NEW YORK (MarketWatch) -- Ecolab Inc. (ECL: news, chart, profile) said Tuesday that it earned $99 million, or 41 cents a share, in the second quarter. In the same period last year it earned $139 million, or 55 cents a share. On an adjusted basis, the company earned 50 cents a share. Sales fell 8% to $1.44 billion from $1.57 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 48 cents and sales of $1.48 billion. For 2009, Ecolab sees adjusted earnings per share in the range of $1.96 to $2.02, compared to the previous forecast of $1.95 to $2.05. (Corrects ticker symbol and 2009 forecast range.)
Viacom CEO: DVD sales remain weak; hits do well(9:09 am ET)
CHICAGO (MarketWatch) -- The trend toward soft catalog sales of DVDs remained a problem in the second quarter at Viacom Inc. (VIA.B: news, chart, profile) (VIA: news, chart, profile) , reflecting an industry-wide trend, said Chief Executive Philippe Dauman, who spoke to analysts during a conference call on Tuesday. "While the economy is certainly playing a role in this decline, the trend does support the notion that the consumer's appetite for DVDs may be showing signs of fatigue," he said. The exceptions, Dauman added, are recent films that did very well at the box office. That phenomenon should bode well for Paramount Home Entertainment in the fourth quarter, when the latest "Star Trek" and "Transformers" films are released on disc, Dauman said.
KKR Financial predicts second-quarter profit(9:00 am ET)
NEW YORK (MarketWatch) -- KKR Financial Holdings LLC (KFN: news, chart, profile) said Tuesday that it expects to report second-quarter earnings of between 11 cents and 19 cents a share. The firm said it doesn't expect to make any cash distributions. The results will be announced on Aug. 6. Shares of KKR Financial jumped almost 25% in pre-market trading. The speciality-finance company also said it has taken steps regarding four of its collateralized loan obligations that it believes will improve liquidity. KKR Financial is an affiliate of private-equity firm Kohlberg Kravis Roberts & Co.
Viacom CEO: Ratings improving at MTV(9:01 am ET)
CHICAGO (MarketWatch) -- Viacom Inc. (VIA.B: news, chart, profile) (VIA: news, chart, profile) Chief Executive Philippe Dauman told analysts Tuesday that ratings at the company's MTV cable channel have shown improvement as the network's schedule is rebuilt. In the past seven weeks, ratings are down 5% compared with the same seven weeks a year ago, compared with a 14% decline in the second quarter. "We expect that trend to improve further," Dauman said during a conference call. He called strong ratings at MTV a "key priority" at Viacom.
Viacom CEO: Nearly done with upfront sales(8:41 am ET)
CHICAGO (MarketWatch) -- Viacom Inc. (VIA.B: news, chart, profile) (VIA: news, chart, profile) Chief Executive Philippe Dauman said Viacom's cable networks have nearly concluded their sales of advance advertising time for the fall season. "We are very pleased with the results from a volume and pricing standpoint," Dauman told analysts during a conference call. Echoing remarks he made in April, Dauman said there continue to be signs of stabilization on the ad market.
U.S. Steel swings to loss(8:34 am ET)
NEW YORK (MarketWatch) -- United States Steel Corp. (X: news, chart, profile) said Tuesday that it had losses of $392 million, or $2.92 a share, in the second quarter, compared to profits of $668 million, or $5.65, in the year-ago period. Net sales were $2.1 billion in the latest quarter, compared to $6.7 billion in the second quarter of 2008. Analysts surveyed by FactSet Research had expected, on average, losses per share of $3.32 on sales of $2.3 billion. John Surma, chairman and chief executive, said he expects the firm to report operating losses for the third quarter "due to continued low operating rates, idled facility carrying costs and lower average realized prices."
Paccar earnings per share slide to 7 cents(8:18 am ET)
NEW YORK (MarketWatch) -- Paccar (PCAR: news, chart, profile) said Tuesday that it earned $27 million, or 7 cents a share, in the second quarter compared to $314 million, or 86 cents a share, in the same quarter last year. During the second quarter, Paccar discontinued certain subsidies for post-retirement health care plans and recorded a one-time benefit of $30 million. Revenues were $1.85 billion compared to $4.11 billion in 2008. Analysts polled by FactSet Research estimated, on average, earnings per share of 4 cents and sales of $1.77 billion.
Valero posts wider-than-expected loss(8:13 am ET)
NEW YORK (MarketWatch) -- Valero Energy Corp. (VLO: news, chart, profile) said Tuesday it lost $254 million, or 48 cents a share in its second quarter, compared to net income of $734 million, or $1.37 a share in the year-ago period. The San Antonio, Texas refining giant posted an operating loss of $317 million, compared to year-ago net income of $1.2 billion. Operating revenue fell to $17.9 billion from $36.6 billion. Wall Street analysts expected a loss of 39 cents a share, according to a survey by FactSet Research. "The decline in operating income was primarily due to lower diesel and jet fuel margins and lower sour crude oil differentials versus the same quarter last year," the company said.
Tenet sees loss of 3 cents a share in quarter(7:46 am ET)
NEW YORK (MarketWatch) -- Tenet Healthcare Corp. (THC: news, chart, profile) said Tuesday that it expects to report a second-quarter loss of $15 million, or 3 cents a share, the same as for last year's period. Analysts polled by FactSet Research estimate, on average, a 3-cent-a-share loss for the second quarter. The health-care company said it sees income for 2009 in a range of a loss of $20 million to a positive net income of $60 million.
FPL Group net income up 77% (7:44 am ET)
NEW YORK (MarketWatch) -- FPL Group, Inc. (FPL: news, chart, profile) said Tuesday second-quarter net income rose to $370 million, or 91 cents a share, from $209 million, or 52 cents a share in the year-ago period. Its renewable energy unit, NextEra Energy Resources, saw its net income increase by $183 million while its Florida Power & Light unit decreased by $4 million in the face of a weaker economy. Adjusted net income rose to 99 cents a share from 93 cents a share. Revenue rose to $3.8 billion from $3.6 billion. Wall Street analysts expected earnings of 97 cents a share on revenue of $3.9 billion, according to a survey by FactSet Research. The company now expects adjusted 2009 earnings at the lower half of its range of $4.20 to $4.40 a share. The power company cited "a continued weak economy and the poor wind resource experienced in the second quarter."
Interpublic Group net off 71%, revenue down 20%(7:31 am ET)
TEL AVIV (MarketWatch) -- Interpublic Group of Cos., (IPG: news, chart, profile) the New York advertising and marketing-services group, reported that second-quarter earnings fell 71% on 20% lower revenue. Earnings attributable to IPG were $27.8 million compared with $95.1 million in the year-earlier quarter. Earnings per share were 4 cents against 17 cents. Revenue fell to $1.47 billion from $1.84 billion. A survey of analysts by FactSet Research produced a consensus estimate of 11 cents a share of profit on $1.6 billion of revenue. The second-quarter results reflect severance charges of $29.9 million compared with $10.7 million a year earlier.
Waters Corp. net income falls 16%(7:28 am ET)
NEW YORK (MarketWatch) -- Waters Corp. (WAT: news, chart, profile) said Tuesday second-quarter net income fell to $69.9 million, or 73 cents a share, from $83.1 million, or 83 cents a share in the year-ago period. Adjusted income rose to 78 cents a share from 76 cents a share. Sales fell to $362.8 million from $398.8 million. Wall Street analysts expected the Milford, Mass. instrument maker to earn 79 cents a share on revenue of $364.9 million, according to a survey by FactSet Research. "Our financial results in the quarter were in line with our expectations and sales to our major end markets in the quarter indicated a continuation of the general demand trends that we reported in April," the company said. "Our efforts throughout the quarter to focus on improved operational efficiency allowed us to generate...earnings per share growth in this challenging business environment."
McGraw-Hill reports profit drop(7:27 am ET)
NEW YORK (MarketWatch) -- McGraw-Hill Cos. (MHP: news, chart, profile) said Tuesday that its second-quarter profits were down 23%, to $164.1 million, or 52 cents a share, compared to profit of $212.3 million, or 66 cents a share, in the year-ago period. Revenue was down 12%, to $1.47 billion. Analysts surveyed by FactSet Research had expected, on average, profit of 56 cents a share on revenues of $1.56 billion. Information services provider McGraw-Hill said its profit was hit by an after-tax net charge of 3 cents a share caused by 550 layoffs, and a pre-tax loss of 3 cents a share due to the sale of Vista Research.
Celanese's profit declines in the second quarter(7:24 am ET)
NEW YORK (MarketWatch) -- Celanese Corp. (CE: news, chart, profile) said Tuesday that its second-quarter earnings fell to $104 million, or 66 cents a share, from $132 million, or 80 cents a share, in the year-ago period. On an adjusted basis, earnings for the three months ended June 30 were 53 cents a share. Wall Street analysts expected earnings of 46 cents a share, according to a survey by FactSet Research. Revenue at the Dallas-based chemical company declined to $1.24 billion from $1.87 billion. "We expect the economic environment to remain challenging during the second half of 2009," said David Weidman, chairman and chief executive officer. "We also see sustained demand across our key segments and geographies."
Office Depot loss widens to $82 million(7:21 am ET)
LONDON (MarketWatch) -- Office Depot Inc. (ODP: news, chart, profile) said Tuesday that its second-quarter net loss widened to $82.1 million, or 31 cents a share, from $2 million, or 1 cent a share, a year earlier. Revenue for the quarter fell 22% to $2.82 billion. The office supplies retailer said consumers and small business customers had continued to rein in their spending, leading to an 18% decline in same-store sales in the North American retail business. Adjusting for one-off charges, the group said it lost 22 cents a share in the latest quarter. Analysts polled by FactSet had been expecting a loss of 11 cents a share.
Rockwell earnings tumble to 23 cents a share(7:21 am ET)
NEW YORK (MarketWatch) -- Rockwell Automation (ROK: news, chart, profile) said Tuesday that third-quarter earnings fell to $33 million, or 23 cents a share, compared to $153 million, or $1.03 a share, in the same period a year ago. Revenue slumped to $1 billion, down 31% from $1.48 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 19 cents and sales of $1 billon. The Milwaukee, Wisc.-based industrial-automation company sees 2009 earnings per share of $1.40 to $1.70.
Monday, July 27
Crane posts 53% lower profit, cuts outlook(6:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Crane Co. (CR: news, chart, profile) , a maker of highly-engineered industrial components, reported late Monday second-quarter net income fell to $27.8 million, or 47 cents a share, from $59 million, or 97 cents, a year ago. The latest results were hit by one-time, after-tax charges totaling $1.4 million, or 2 cents a share, stemming primarily from restructuring costs. Revenue for the three months ended June 30 fell 21% to $545.5 million from $693.5 million. Analysts surveyed by FactSet Research predicted Crane would earn 48 cents a share on $579 million in sales. "Our sales and earnings declined from our record second quarter 2008 results and were lower than we expected just three months ago," Crane President and CEO Eric Fast said. The company cut its full-year 2009 per-share earnings forecast to $2.01 from $2.31, citing "difficult" market conditions, especially in merchandising systems and its fluid handling business. Shares of the Stamford, Conn.-based company fell 22 cents to close at $23.57 ahead of the report.
Fidelity National second-quarter profit rises(5:40 pm ET)
SAN FRANCISCO (MarketWatch) -- Fidelity National Financial (FNF: news, chart, profile) said late Monday that its second-quarter net earnings attributable to common shareholders rose to $91.9 million, or 40 cents a share, from $6.9 million, or 3 cents a share, in the year-ago period. Revenue rose to $1.57 billion from $1.17 billion last year. Analysts surveyed by FactSet Research estimated earnings of 40 cents a share on revenue of $1.61 billion. (Corrects second-quarter earnings and revenue figures.)
Manitowoc swings to $18.1M loss (5:19 pm ET)
SAN FRANCISCO (MarketWatch) -- Equipment maker Manitowoc Company Inc. (MTW: news, chart, profile) late Monday reported a second-quarter net loss of $18.1 million, or 14 cents a share, hurt by the sale of its Enodis ice business and restructuring charges. A year ago, the company reported a porfit of $133.9 million, or $1.01 a share. Sales fell 13.1% to $1 billion. Manitowoc makes cranes for the construction industry and commercial foodservice equipment. The company said orders for cranes are still weak in most of parts around the world. It said new orders are exceeding cancellations. Manitowoc said it is focused on reducing debt. Its stock is down 24% so far this year. Shares closed at $6.57 before the earnings report.
Meritage Homes second-quarter loss rises(5:01 pm ET)
SAN FRANCISCO (MarketWatch) -- Meritage Homes Corp. (MTH: news, chart, profile) said late Monday that its second-quarter loss increased to $73.6 million, or $2.37 a share, from $23.5 million, or 79 cents a share, in the year-ago period. Excluding one-time items, the real estate company would have reported a loss of $5 million for the latest quarter. Meritage did not provide a per share figure for the adjusted results. Revenue decreased to $221.5 million from $375.3 million last year. Analysts surveyed by FactSet Research estimated a quarterly loss of 72 cents a share on revenue of $206.7 million.
Plum Creek earnings boosted by timberland sale(4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- Plum Creek Timber Co. (PCL: news, chart, profile) reported late Monday second-quarter net income of $32 million, or 19 cents a share, compared with $31 million, or 18 cents a share, a year ago. The results benefited from the sale of 59,000 acres of timberland in Wisconsin, which added $23 million, or 14 cents a share, to the bottom line. Overall revenue for the three months ended June 30 fell to $272 million from $376 million a year earlier. Analysts polled by FactSet Research had predicted the Seattle-based lumber company would post revenue of $228 million for the quarter. The company said it expects to earn between 5 and 10 cents a share in the third quarter. Plum Creek shares rose nearly 3% ahead of the report to close at $33.17. The stock is off 28% over the past 12 months.
Amgen reports higher second-quarter profit(4:19 pm ET)
BOSTON (MarketWatch) -- Amgen Inc. (AMGN: news, chart, profile) late Monday reported higher second-quarter earnings, due in part to a variety of charges and gains taken in both the 2008 and 2009 quarters. The biotech group reported net income of $1.27 billion, or $1.25 a share, compared with $906 million, or 84 cents a share, for the same period last year. Excluding various items, Amgen would have posted adjusted earnings of $1.29 versus $1.14 a share. Revenue slipped 1% to $3.71 billion. A poll of analysts by FactSet pegged the company at earning $1.13 a share, on revenue of $3.59 billion. Amgen added it now sees 2009 adjusted earnings per share of $4.80 to $4.95, up from its previous outlook of $4.55 to $4.75. Revenue is seen as coming in at the upper end of its current range of $14.4 billion to $1.48 billion. Amgen and GlaxoSmithKline PLC (GSK: news, chart, profile) added they have agreed to co-market Amgen's new bone drug denosumab, which industry watchers believe could eventually be a major revenue driver for Amgen.
Torchmark quarterly profit slides(4:19 pm ET)
SAN FRANCISCO (MarketWatch) -- Torchmark Corp. (TMK: news, chart, profile) late Monday reported its second-quarter net income fell to $114.1 million, or $1.38 a share, from $133.7 million, or $1.47 a share, a year earlier. Operating income, which excludes net realized investment gains and losses and non-recurring items, rose to $126.2 million, or $1.53 a share, from $130.6 million, or $1.44 a share, in the same quarter last year. Analysts surveyed by FactSet Research had projected earnings of $1.50 a share. For the year ending Dec. 31, 2009, Thorchmark projected net operating income of $5.93 to $6.08 a share.
Masco profit drops amid construction slump(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- Masco Corp. (MAS: news, chart, profile) on Monday reported a second-quarter profit of $55 million, or 15 cents a share, down from $82 million, or 23 cents a share, a year ago. Sales slipped to $2.04 billion from $2.64 billion a year earlier amid a continued slump in new-home construction as well as another decline in consumer spending for home improvement products. Analysts polled by FactSet Research had expected a profit, on average, of 1 cent a share with sales of $2.01 billion.
Energy shares open mixed (9:35 am ET)
NEW YORK (MarketWatch) -- Energy shares opened mixed Monday as oil prices rose and the broad market fell. The NYSE Arca Oil Index (XOI: news, chart, profile) rose fractionally to 971. The NYSE Arca Natural Gas Index (XNG: news, chart, profile) dipped 0.2% 450. The Philadelphia Oil Service Index ($OSX: news, chart, profile) fell 0.2%. Crude futures rose 54 cents to $68.59.
Corning's second-quarter profit declines(8:08 am ET)
NEW YORK (MarketWatch) -- Corning Inc. (GLW: news, chart, profile) said Monday that its second-quarter net income tumbled to $611 million, or 39 cents a share, from $3.21 billion, or $2.01 a share, in the year-ago period. Excluding one-time items, the specialty glass and ceramics company said it would have earned 39 cents a share in the recent quarter. Analysts polled by FactSet Research were expecting earnings of 30 cents a share, on average. Corning said sales in the recent quarter fell to $1.4 billion from $1.69 billion. "As we enter the second half of the year, we are seeing signs that the impact of the global recession on our businesses may be moderating," said James Flaws, vice chairman and chief financial officer. "That said, questions pertaining to the pace of economic recovery remain. While we do not currently believe another corporate-wide downsizing will be necessary, we are looking at specific business unit restructuring needs." Shares of Corning ended Friday at $17. (Corrects latest-quarter sales.)
Invesco profit falls 54%(7:47 am ET)
NEW YORK (MarketWatch) -- Asset manager Invesco Ltd. (IVZ: news, chart, profile) said Monday that its second-quarter profit fell 54%, to $75.7 million, or 18 cents a share, from $162.8 million, or 41 cents a share, in the year-ago period. Total operating revenues were $625.1 million, a 33% fall from the second quarter of 2008. Analysts surveyed by FactSet Research had expected, on average, a profit of 16 cents a share on total revenues of $547.8 million. Assets under management at the Atlanta-based firm were $388.7 billion, down from $461.3 billion at the end of the second quarter of 2008, but up from the $348.2 billion at the end of the first quarter this year.
Lorillard earnings leap to $1.71 a share(7:44 am ET)
NEW YORK (MarketWatch) -- Lorillard Inc. (LO: news, chart, profile) said Monday that second-quarter earnings were $286 million, or $1.71 a share, compared to $217 million, or $1.25 a share, in the same period last year. Sales surged to $1.52 billion compared to $1.07 billion, including a significant increase in federal excise taxes. Analysts polled by FactSet Research estimated, on average, earnings per share of $1.43 and sales of $976 million. In addition, the Greensboro, N.C.-based tobacco company said it will repurchase up to $750 million of its common stock.
Verizon second-quarter earnings decline 7.2%(7:39 am ET)
WASHINGTON (MarketWatch) -- Verizon Communications Inc. (VZ: news, chart, profile) on Monday said second-quarter profit fell 7.2% on onetime costs and further weakness in its traditional wireline business. Net income totaled $3.16 billion, or 52 cents a share, down from $3.40 billion, or 66 cents a share, a year earlier. Revenue jumped 11.3% to $26.9 billion, fueled by the acquisition of Arkansas-based Alltel. Adjusted sales rose a lesser 1.9%. Omitting onetime items, Verizon would have earned 63 cents a share. The company was expected to earn 62 cents a share on revenue of $26.9 billion, according to the consensus of analysts compiled by FactSet Research. As reported Friday, Verizon gained a net 1.1 million wireless customers. It also added 300,000 customers for its fiber-TV service.
Warburg leads $75 million funding for Suniva(7:21 am ET)
NEW YORK (MarketWatch) -- Solar panel maker Sunivia Inc. said Monday it closed a $75 million venture financing round led by private equity giant Warburg Pincus. The Norcross, Ga. company had raised two earlier rounds of financing. Apex Venture Partners and returning investors New Enterprise Associates, HIG Ventures and Advanced Equities took part in the latest round. "Suniva is well positioned, delivering the leading combination of high efficiency and low-cost manufacturing," said Chansoo Joung, a managing director at Warburg Pincus. Suniva plans to complete its second manufacturing line in its Norcross plant this summer.
Tellabs profit more than halved (7:16 am ET)
NE WYORK (MarketWatch) Tellabs Inc. (TLAB: news, chart, profile) said on Monday that its second quarter net income fell to $15.7 million, or 4 cents a share from $39 million, or 10 cents a share a year ago. Total revenue at the company fell to $385.4 million, from $432.5 million last year.
Honeywell net income falls 38%(7:10 am ET)
NEW YORK (MarketWatch) -- Honeywell International Inc. (HON: news, chart, profile) said Monday second-quarter net income fell to $450 million or 60 cents a share, from $723 million, or 96 cents a share in the year-ago period. Sales fell to $7.57 billion from $9.67 billion. Wall Street analysts expected second-quarter earnings of 60 cents a share and revenue of $7.7 billion, according to a survey by FactSet Research. Honeywell expects 2009 earnings of $2.85 a share, compared to the analyst target of $2.82 a share. "Economic conditions, however, remain challenging and we are not planning for any recovery in 2009," the Morris Township, N.J.-based company said.
Cal-Maine profit declines 72%(6:41 am ET)
LONDON (MarketWatch) -- Egg producer Cal-Maine Foods Inc. (CALM: news, chart, profile) said Monday that its fiscal fourth-quarter net profit fell 72% to $10.3 million, or 43 cents a share, from $36.6 million, or $1.54 a share, a year earlier. The group said net sales for the quarter were down 9.3% at $213.6 million. Cal-Maine said the results reflect lower egg prices than a year earlier, with feed costs also declining, but still high by historical standards.
Enterprise profit down 29%(6:29 am ET)
LONDON (MarketWatch) -- Energy services group Enterprise Products Partners (EPD: news, chart, profile) said Monday that its second-quarter net profit fell 29% to $186.6 million, or 32 cents a unit, from $263.3 million, or 52 cents a unit, a year earlier. Revenue for the period declined 45% to $3.51 billion. The group said the result included charges of 11 cents per unit related to the forfeiture of an investment, lost business from hurricanes and costs related to its pending merger. Analysts polled by FactSet had been expecting earnings of 42 cents per unit. "Volumes handled by our integrated midstream energy system were at record or near record levels," said CEO Michael Creel.
Radio Shack profit rises to $48.8 million(6:22 am ET)
LONDON (MarketWatch) -- Electronics retailer Radio Shack (RSH: news, chart, profile) on Monday said second-quarter net income rose to $48.8 million, or 39 cents a share, compared to $41.4 million, or 32 cents a share, in the same period last year. The year-ago figures included a one-time, headquarters lease-related charge of $4.3 million that was partly offset by a favorable state sales tax settlement. Analysts surveyed by FactSet Research had produced a consensus forecast of 29 cents a share. Fort Worth, Texas-based Radio Shack said net sales and operating revenues fell 2.9% from the same period last year to $965.7 million. The company said consolidated selling, general and administrative expenses fell to $335.7 million from $375.4 million in the same period last year.
Aetna cuts earnings outlook as net drops 28%(6:08 am ET)
LONDON (MarketWatch) -- Health insurer Aetna (AET: news, chart, profile) cut its earnings outlook for 2009 on higher-than-projected medical costs, as its second-quarter net income dropped 28% to $346.6 million, or 77 cents a share. Revenue rose 10% to $8.66 billion, while its operating earnings dropped 28% to 68 cents a share, on higher commercial medical costs and unfavorable reserve developments. It cut its 2009 operating earnings view to a range of $2.75 to $2.90 a share, from a previous estimate of $3.55 to $3.70. Analysts polled by FactSet had forecast quarterly earnings of 78 cents and annual earnings of $3.55.
SSAB reports loss on weak demand, price pressure(2:55 am ET)
LONDON (MarketWatch) -- Sweden's SSAB (SE:SSABA: news, chart, profile) said it swung to a 636 million Swedish krona ($85 million) loss in the second quarter, after earning 2.03 billion krona in the year-earlier period. Sales fell 56% to 6.58 billion krona. Analysts polled by Dow Jones Newswires had expected a 838 million krona loss on revenue of 7.36 billion krona. The steelmaker said the quarter has been characterized by weak demand and continued pressure on prices, and it expects third quarter market conditions to be similar to the second quarter.
TNT second-quarter profit falls 60.5%(2:48 am ET)
MADRID (MarketWatch) -- Dutch international express mail service TNT (NL:TNT: news, chart, profile) on Monday said profit attributable to shareholders fell 60.5% in the second quarter to 81 million euros ($115 million} against 205 million euros a year ago. Operating income for the group fell 45% to 178 million euros, and analysts surveyed by Reuters were expecting operating income of 184 million euros. Revenue for the group fell 10% to 2.53 billion euros. The company said a recessionary environment persisted in the second quarter, but still said it would pay an interim dividend in 2008 of 0.18 euros per share, in either cash or stock. CEO Peter Bakker said the company has cut costs to cope with a tough environment. He said these conditions will persist in the second half of this year, as "early signs pointing towards improvements in the general economic climate in the second half of this year are still too uncertain to indicate a positive trend development."
Aberdeen assets under management up 34%(2:43 am ET)
LONDON (MarketWatch) -- Aberdeen Asset Management (UK:ADN: news, chart, profile) said Monday that its assets under management rose to 129.2 billion pounds ($212.4 billion) at the end of June from 96.3 billion pounds at the end of March. The increase was due to a 35.3 billion pound boost from corporate acquisitions, which was partly offset by a 9.2 billion pounds negative impact from exchange rate fluctuations. The group said new business wins in the quarter totalled 3.4 billion pounds, but were outweighed by the withdrawal by customers of 5.6 billion pounds of assets. Market appreciation and investment performance contributed 9 billion pounds.
Julius Baer adjusted 1st-half share net off 36%(2:26 am ET)
TEL AVIV (MarketWatch) -- Julius Baer Holding, (JBHGY: news, chart, profile) (CH:BAER: news, chart, profile) the Zürich money manager, reported that first-half adjusted net income fell 36% to 1.56 Swiss francs ($1.46) a share. Adjusted consolidated net fell 37% to 324 million Swiss francs; consolidated profit before tax fell 40% to 391 million Swiss francs. Operating profit fell 24% to 1.22 billion Swiss francs, "primarily as a result of 25% lower average assets under management" compared with a year earlier, the firm said in a statement on Monday. Assets under management rose 9% from year-end 2008, to 299 billion Swiss francs. Operating expense on a consolidated basis declined 12%. Julius Baer's plan to separate its private-banking and asset-management businesses "is on track to be completed by the end of the third quarter," subject to regulatory clearances, the firm said.
National Grid trading in line with expectation(2:23 am ET)
LONDON (MarketWatch) -- National Grid (UK:NG: news, chart, profile) , the U.K. electricity grid operator, said Monday that it continues to trade in line with the group's expectations and expects to deliver a "substantial improvement" in profitability in its electricity distribution and generation arm. The group said its 3.4 billion pound ($5.6 billion) investment program remains on target. It's raised the majority of the 2.5 billion pounds of funding needed for the year, with around another 400 million pounds of funding required in the current fiscal year.
Sunday, July 26
Citi says $20 billion exchanged in equity swap(9:28 pm ET)
LOS ANGELES (MarketWatch) -- Citigroup Inc. (C: news, chart, profile) said Sunday that about $20.3 billion in convertible and non-convertible preferred and trust preferred securities had been tendered for exchange for common stock. The bank's exchange offer expired 5 p.m. Friday. As a result of this and other pending exchanges, Citi said its tangible common equity will rise by $60 billion, while its Tier 1 capital will increase by $64 billion to a ratio of about 9%, based on the bank's June 30 results. "The successful completion of the exchange offers marks a significant milestone for Citi," Chief Executive Vikram Pandit said in a statement.
Friday, July 24
Financials off lows but still in the red(1:55 pm ET)
NEW YORK (MarketWatch) -- Financial stocks remained in negative territory Friday with shares of Federated Investors Inc. (FII: news, chart, profile) leading the way down after it reported an 8% decline in second-quarter net income. Although off its lows, the sector's benchmark exchange-traded fund, Financial Select Sector SPDR Fund (XLF: news, chart, profile) , was down 0.2% to 12.47 at last check. Shares of Federated Investors, a Pittsburgh-based investment manager, fell 6.6% to $24.45 a share in midday trade.
Financials off on credit card makers' woes(9:43 am ET)
NEW YORK (MarketWatch) -- A day after topping new 30-day plus highs, financial stocks retreated Friday morning as investors grew wary heading into the weekend after American Express Co. (AXP: news, chart, profile) and Capital One Financial Corp. (COF: news, chart, profile) reported big declines in quarterly profit. The sector's benchmark exchange-traded fund, Financial Select Sector SPDR Fund (XLF: news, chart, profile) , was down 0.5% to 12.43. Shares of the two credit card makers were down 2.1% and 3.3%, respectively. On a bullish note, shares of CIT Group Inc. (CIT: news, chart, profile) surged nearly 25% after the company said late Thursday that if its tender offer for notes due in August is successfully completed, then it does not intend to file for bankruptcy.
Microsoft, Amazon lead broad tech losses(9:37 am ET)
SAN FRANCISCO (MarketWatch) -- Nearly every major technology stock was in the red in early trading Friday as a disappointing earnings report from Microsoft Corp. (MSFT: news, chart, profile) led to a sectorwide slump. Microsoft shares fell $1.87, or more than 7%, to $23.74 after the software giant reported declines in its fourth-quarter earnings and sales late Thursday. Also in the red were Amazon.com Inc. (AMZN: news, chart, profile) after it reported mixed quarterly results. The tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) fell 25 points to 1,948.
Exelon net income falls 12%(8:41 am ET)
NEW YORK (MarketWatch) -- Exelon Corp. (EXC: news, chart, profile) said Friday second-quarter net income fell to $657 million, or 99 cents a share, from $748 million, or $1.13 a share in the year-ago period. The Chicago-based power producer's adjusted income dipped to $1.03 a share from $1.13 a share. Wall Street analysts expected Exelon to earn $1 a share, according to a survey by FactSet Research. Exelon expects adjusted third-quarter earnings of 90 cents to $1 a share, below the Wall Street target of $1.09 a share.
Friday, July 24
Financials off lows but still in the red(1:55 pm ET)
NEW YORK (MarketWatch) -- Financial stocks remained in negative territory Friday with shares of Federated Investors Inc. (FII: news, chart, profile) leading the way down after it reported an 8% decline in second-quarter net income. Although off its lows, the sector's benchmark exchange-traded fund, Financial Select Sector SPDR Fund (XLF: news, chart, profile) , was down 0.2% to 12.47 at last check. Shares of Federated Investors, a Pittsburgh-based investment manager, fell 6.6% to $24.45 a share in midday trade.
Financials off on credit card makers' woes(9:43 am ET)
NEW YORK (MarketWatch) -- A day after topping new 30-day plus highs, financial stocks retreated Friday morning as investors grew wary heading into the weekend after American Express Co. (AXP: news, chart, profile) and Capital One Financial Corp. (COF: news, chart, profile) reported big declines in quarterly profit. The sector's benchmark exchange-traded fund, Financial Select Sector SPDR Fund (XLF: news, chart, profile) , was down 0.5% to 12.43. Shares of the two credit card makers were down 2.1% and 3.3%, respectively. On a bullish note, shares of CIT Group Inc. (CIT: news, chart, profile) surged nearly 25% after the company said late Thursday that if its tender offer for notes due in August is successfully completed, then it does not intend to file for bankruptcy.
Microsoft, Amazon lead broad tech losses(9:37 am ET)
SAN FRANCISCO (MarketWatch) -- Nearly every major technology stock was in the red in early trading Friday as a disappointing earnings report from Microsoft Corp. (MSFT: news, chart, profile) led to a sectorwide slump. Microsoft shares fell $1.87, or more than 7%, to $23.74 after the software giant reported declines in its fourth-quarter earnings and sales late Thursday. Also in the red were Amazon.com Inc. (AMZN: news, chart, profile) after it reported mixed quarterly results. The tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) fell 25 points to 1,948.
Exelon net income falls 12%(8:41 am ET)
NEW YORK (MarketWatch) -- Exelon Corp. (EXC: news, chart, profile) said Friday second-quarter net income fell to $657 million, or 99 cents a share, from $748 million, or $1.13 a share in the year-ago period. The Chicago-based power producer's adjusted income dipped to $1.03 a share from $1.13 a share. Wall Street analysts expected Exelon to earn $1 a share, according to a survey by FactSet Research. Exelon expects adjusted third-quarter earnings of 90 cents to $1 a share, below the Wall Street target of $1.09 a share.
SunPower profit draws praise at Lazard, Jefferies (8:20 am ET)
NEW YORK (MarketWatch) -- Solar wafer manufacturer SunPower Corp. (SPWRA: news, chart, profile) beat Wall Street's earnings target and drew praise from analysts at Jefferies & Co. and Lazard Capital Markets on Friday. The company's operating income of 24 cents a share came in ahead of Lazard's target of 5 cents a share. Revenue fell to $298 million from $383 million. "The company appears to be gaining solid traction with large-scale projects in Europe, and maintaining its market leadership in California in both the commercial and residential segments," Lazard analyst Sanjay Shrestha said in a note to clients. Meanwhile, Jefferies analysts said SunPower's "diverse and flexible vertically-integrated business model positions it to capture significant market share in the U.S. utility scale market in a recovery scenario." SunPower shares rallied 20% to $29.95 in pre-market trades on Friday. (Updated to correct change in revenue. An earlier version compared second-quarter revenue to the first quarter, instead of the year-ago period.)
Wilmington Trust loses 20 cents a share(8:16 am ET)
NEW YORK (MarketWatch) -- Wilmington Trust Corp. (WL: news, chart, profile) said Friday that it lost $9 million, or 20 cents a share, in the second quarter. This was caused primarily by securities losses of $23 million on pooled trust-preferred investment securities. On an after-tax-basis, this impairment reduced earnings by approximately 26 cents a share. In the same period a year ago it lost $20 million, or 29 cents a share. Analysts polled by FactSet Research estimated, on average, a loss per share of 11 cents.
Fortune Brands quarterly profit declines 27%(8:03 am ET)
NEW YORK (MarketWatch) -- Fortune Brands Inc. (FO: news, chart, profile) reported Friday that net income in the second-quarter fell nearly 27% from the year-ago period to $99.8 million, or 66 cents a share. Net sales decreased 17% to $1.74 billion in the three-month period. Analysts polled by FactSet Research, on average, expected the company, which makes products ranging from whiskey to golf balls, to earn 63 cents a share on sales of $1.7 billion. Fortune Brands now estimates full-year 2009 earnings per share in the range of $2.00 to $2.30.
Black & Decker earnings fall by more than half(7:45 am ET)
NEW YORK (MarketWatch) -- The Black & Decker Corp. (BDK: news, chart, profile) said Friday that earnings for the second quarter were $38 million or 63 cents a share, versus $97 million or $1.56 a share, a year ago. Sales decreased 27% to $1.2 billion, including a negative 5% impact from foreign currency translation. Analysts polled by FactSet Research estimated, on average, earnings per share of 37 cents and sales of $1.2 billion. "As we expected, demand in our end-markets remained extremely weak in the second quarter," said Chief Executive Noland Archibald.
T. Rowe Price profit falls (7:40 am ET)
NEW YORK (MarketWatch) -- Asset manager T. Row Price Group Inc. (TROW: news, chart, profile) said on Friday that its second quarter profit fell to $100 million, or 38 cents a share, from $162 million, or 59 cents a share a year ago. Analysts polled by Thomson Reuters had expected the firm to earn 34 cents a share in the quarter. Net revenue at the Baltimore-based firm fell to $442.2 million from $586.5 million.
Dover earnings per share fall to 52 cents(7:16 am ET)
NEW YORK (MarketWatch) -- Dover Corp. (DOV: news, chart, profile) said Friday that it earned $97 million, or 52 cents a share, compared to $135 million, or 71 cents a share, in the same period a year ago. Earnings from continuing operations were $101 million or 54 cents a share, compared to $187 million or 98 cents, a year ago. Revenue was $1.4 billion, a decrease of 31%. Analysts polled by FactSet Research estimated, on average, earnings per share of 46 cents and sales of $1.5 billion for the industrial-equipment maker.
Ashland profit drops as tax rate climbs(6:27 am ET)
LONDON (MarketWatch) -- Chemicals producer Ashland Inc. (ASH: news, chart, profile) said its fiscal third-quarter net income fell to $50 million, or 66 cents a share, from $72 million, or $1.13, as sales slipped to $2.04 billion from $2.2 billion. A 44% tax rate for the quarter and the acquisition of Hercules Inc. impacted results during the quarter, and the company said that on a proforma basis, its EBITDA rose 9% to $248 million on reduced expenses while sales fell 28%. From continuing operations excluding 33 cents a share in charges, its earnings of $1.01 a share came in ahead of FactSet-compiled estimates of 91 cents.
Viad cuts outlook as profit falls 58%(6:25 am ET)
LONDON (MarketWatch) -- Marketing and events group Viad Corp. (VVI: news, chart, profile) said Friday that its second-quarter net profit fell 58% to $5.4 million, or 26 cents a share, from $12.9 million, or 62 cents a share, a year earlier as it also cut its guidance. Revenue for the quarter declined 23% to $213.6 million. The group had previously forecast earnings of between 17 cents and 32 cents a share. The group said it had cut costs by more than $35 million as it countered the impact of small trade shows and reduced spending by exhibitors. The group said it's now expecting 2009 earnings to be in the range of 25 cents to 50 cents a share. It had previously forecast earnings in the range of 60 cents to 85 cents a share.
Syngenta shares drop after group cuts targets(4:36 am ET)
LONDON (MarketWatch) -- Shares in Swiss agrichemicals firm Syngenta (SYT: news, chart, profile) (CH:SYNN: news, chart, profile) fell 3.6% Friday after the company said its first-half net profit fell 9% to $1.39 billion, missing market expectations. The group also said achieving earnings growth for the year has "become more challenging" and it's now targeting earnings close to the level achieved in 2008. It had previously been targeting earnings growth. Sales for the period were down 9% on a reported basis at $6.66 billion, but were up 2% at constant exchange rates.
Investec profit drops as loan losses climb(2:37 am ET)
lONDON (MarketWatch) -- Banking group Investec (UK:INVP: news, chart, profile) said Friday that attributable earnings in the quarter ended June 30 fell 26% as loan defaults continued to rise. The group said the credit loss ratio on core loans increased to 0.8% from 0.3%. Over the course of the quarter, core loans and advances grew by 1% to 16.3 billion pounds ($26.9 billion) and third-party assets under management increased 9.7% to 53.6 billion pounds. The firm said it's kept tight control of expenses, which have fallen 7%.
United Utilities sees lower demand(2:27 am ET)
LONDON (MarketWatch) -- Water utility United Utilities (UK:UU: news, chart, profile) said Friday that current trading is in line with expectations, with economic pressures continuing. The group said its regulated business is allowed a 6% price increase for 2009/2010, but that revenue growth is expected to be lower because of lower demand. The group said its board is proposing a final dividend of 22.03 pence (36.4 cents) a share, making a total of 32.67 pence a share for the fiscal year. It expects to grow dividends for the coming year by 5%.
Danone net up 6% on improving margins(2:14 am ET)
LONDON (MarketWatch) -- Danone (FR:BN: news, chart, profile) said its first-half profit rose 6% to 932 million euros ($1.32 billion) on improving margins in baby nutrition and dairy, while sales fell 2% to 7.52 billion euros on swings in the value of the Polish zloty, Russian ruble, British pound and Mexican peso. It's expecting underlying EPS growth of 10% for the year after 6.7% growth by that measure in the first half.
Ericsson profit drops 56% on venture losses(1:55 am ET)
LONDON (MarketWatch) -- Ericsson (ERIC: news, chart, profile) (SE:ERICB: news, chart, profile) , the Swedish telecommunications equipment giant, said second-quarter net income fell 56% to 831 million Swedish krona ($111 million), or 0.26 krona a share, while revenue rose 7% to 52.1 billion krona. Losses at its two jointly held units, phone maker Sony Ericsson and chipmaker ST-Ericsson, hurt the firm. Network sales rose 4%, helped by currency swings, and services sales rose 28%. Analysts polled by Capital IQ expected a profit of 0.58 krona on sales of 53.14 billion krona.
Merck KGaA net down 48% on R&D, Serono hit(1:34 am ET)
LONDON (MarketWatch) -- Merck KGaA (DE:MRK: news, chart, profile) , the German drug and chemicals firm, said it second-quarter net income dropped 48% to 108.5 million euros, or 0.50 euros a share, as revenue was down 0.1% to 1.9 billion euros. The firm, which isn't related to the U.S. drugmaker of the same name, said it booked a charge of 146 million euros for amortization of intangible assets from the 2007 acquisition of Serono and also saw R&D expenses climb 23% on late-stage trials and new indications for existing drugs. Excluding Serono-related amortization and integration costs, its earnings would have fallen by 28.5% to 1.10 euros a share, compared to Capital IQ-compiled analyst estimates of 1.17 euros a share. The firm still sees annual adjusted operating margin between 15% and 20% and sales up 0% to 5%. Merck KgAA separately said late Thursday it was considering appealing a negative decision from the European Medicines Agency's scientific committee on Erbitux in combination with platinum-based chemotherapy for the treatment of patients with epidermal growth factor receptor-expressing, advanced or metastatic non-small cell lung cancer.
USG People reports loss and withholds forecast(1:20 am ET)
LONDON (MarketWatch) -- USG People (NL:USG: news, chart, profile) swung to a 5.9 million euro ($8.4 million) loss, as revenue fell 31% to 722 million euros, and specialist and professional staffing revenue falling in particular. Excluding restructuring costs and an interest-rate derivative, it would have earned 1 million euro, or 0.01 euro a shre, down 97% from the year-earlier quarter. Analysts polled by Capital IQ had expected earnings of a 0.05 euros a share. The Almere, Holland firm doesn't expect any significant improvement in the second half and declined to issue a profit forecast.
Thursday, July 23
Samsung Electronics profit beats expectations(9:40 pm ET)
LOS ANGELES (MarketWatch) -- Samsung Electronics Co. (SSNH.Y: news, chart, profile) reported Friday its second-quarter net profit rose 5.2% to 2.25 trillion won ($1.8 billion) from 2.14 trillion won a year earlier, with the results helped by strong sales of LCD panels. The bottom line for the world's largest maker of computer memory chips was well above expectations for a 1.84 trillion won in a Dow Jones Newswires survey of analysts and 1.7 trillion won reported by Korea's Yonhap news agency. Sales for the period hit 21 trillion won compared to 18.1 trillion won a year earlier. Shares of Samsung Electronics rose 0.8% during morning trade in Seoul.
Eastman Chemical profit falls 43%(5:36 pm ET)
SAN FRANCISCO (MarketWatch) -- Eastman Chemical Co. (EMN: news, chart, profile) , facing weak demand across most of its main markets, reported late Thursday second-quarter net income fell to $65 million, or 89 cents a share, from $115 million, or $1.48 a share, a year ago. Revenue for the three months ended June 30 fell 32% to $1.25 billion. Analysts polled by FactSet Research had expected the company to post earnings of 72 cents a share on $1.32 billion in revenue. Shares of the Kingsport, Tenn.-based company gained $3, or 7%, to close at $45.18 ahead of the report.
Compuware reports quarterly net income of $51 mln (4:47 pm ET)
SAN FRANCISCO (MarketWatch) -- Compuware Corp. (CPWR: news, chart, profile) late Thursday reported its fiscal first-quarter net income rose to $51 million, or 21 cents a share, from $34.7 million, or 13 cents a share, a year earlier. Revenue decreased to $214.4 million from $298.6 million in the same period last year, the information technology company said.
CA quarterly earns slip, FY10 view tops estimates(4:46 pm ET)
LOS ANGELES (MarketWatch) -- CA Inc. (CA: news, chart, profile) late Thursday reported fiscal first-quarter net income of $195 million, or 37 cents a share, compared with $196 million, or 38 cents a share, in the year-ago period. Total revenue at the IT management software company fell to $1.05 billion from $1.09 billion in the year-ago period. On a constant-currency basis, revenue rose 4%. Excluding certain items, earnings would have been $229 million, or 42 cents a share. Analysts polled by Thomson Reuters had expected earnings of 38 cents a share on revenue of $1.03 billion. CA also forecast fiscal 2010 pro forma earnings of $1.60 to $1.70 a share on revenue of $4.3 billion to $4.4 billion. Analysts currently expect earnings of $1.57 a share on revenue of $4.21 billion.
Leggett & Platt profit drops; outlook cut(4:42 pm ET)
SAN FRANCISCO (MarketWatch) -- Leggett & Platt Inc. (LEG: news, chart, profile) late Thursday afternoon reported second-quarter net income from continuing operations of $19 million, or 12 cents a share, down from $46.3 million, or 25 cents a share, in the year ago period. Sales fell 29% to $757.4 million on softer demand for components used in beds, residential and office furniture. Leggett & Platt lowered its 2009 sales outlook to $3 billion. It cut its earnings forecast to a range of 55 cents to 70 cents a share due to lower sales and bad debt expense associated with a customer bankruptcy. Leggett & Platt shares closed at $16.50 ahead of the report. The stock is up more than 8% for the year.
Arch Capital reports quarterly profit of $152 mln(4:38 pm ET)
SAN FRANCISCO (MarketWatch) -- Arch Capital Group (ACGL: news, chart, profile) said late Thursday that second-quarter net income available to common shareholders was $152.1 million, or $2.43 a share. That compares to profit of $192.3 million, or $2.92 a share, for the 2008 second quarter. Operating income, which excludes net realized investment gains and losses, came in at $163 million, or $2.60 a share, in the latest quarter, the reinsurer reported. Arch Capital was expected to make $2.48 a share, according to the average estimate of 15 analysts polled by Thomson Reuters.
Juniper Networks earnings fall 88%(4:35 pm ET)
SAN FRANCISCO (MarketWatch) -- Juniper Networks Inc. (JNPR: news, chart, profile) on Thursday reported a fiscal second-quarter profit of $14.8 million, or 3 cents a share, on revenue of $786.4 million, compared with earnings of $120.4 million, or 22 cents a share, on $879 million in revenue during the same period a year ago. Excluding one-time items, Juniper would have earned $103.8 milllion, or 19 cents a share. Analysts surveyed by FactSet Research had forecast the networking-equipment company to earn 18 cents a share on $764.8 million.
PMC-Sierra's second-quarter profit falls(4:31 pm ET)
SAN FRANCISCO (MarketWatch) -- PMC-Sierra Inc. (PMCS: news, chart, profile) said late Thursday that its second-quarter profit fell to $7.8 million, or 3 cents a share, from $135.9 million, or 60 cents a share, in the year-ago period. Excluding one-time items, the company would have reported a profit of 13 cents a share for the latest quarter. Revenue fell to $123.2 million from $139.8 million last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 6 cents a share on revenue of $119.9 million.
Amex quarterly net income falls 48%(4:30 pm ET)
SAN FRANCISCO (MarketWatch) -- American Express (AXP: news, chart, profile) said late Thursday that second-quarter net income came in at $337 million, down 48% from a year earlier when the credit card giant made $653 million. Net income attributable to common shareholders was nine cents a share, versus 56 cents a share a year earlier, the company added. The results include the money American Express paid to buy back preferred shares from the Treasury Department's Troubled Asset Relief Program. Excluding this payment, adjusted earnings from continuing operations were 27 cents a share, Amex said. The company was expected to make 24 cents a share, according to the average estimate of 18 analysts polled by FactSet Research.
Netflix profit rises 22%; lifts '09 forecast(4:25 pm ET)
CHICAGO (MarketWatch) -- Online DVD-rental pioneer Netflix Inc. (NFLX: news, chart, profile) said Thursday that its second-quarter profit rose 22% as it signed up more customers and cut subscriber acquisition costs during the period, topping the average estimate of Wall Street analysts. The company also lifted its revenue and subscriber estimates for 2009. For the full year, the company now expects to have 11.6 million to 12 million subscribers, up from the previous estimate of 11.2 million to 11.8 million. Revenue is now seen in a range of $1.65 billion to $1.67 billion, up from $1.63 billion to $1.67 billion. After the market closed, Netflix said it earned $32.4 million, or 54 cents a share, compared with a profit of $26.6 million, or 42 cents a share, in the same quarter a year ago. Excluding stock-based compensation, Netflix said it would have earned 58 cents a share in the latest three months. Revenue rose 21% to $408.5 million. Analysts surveyed by Thomson Reuters were expecting a profit, excluding stock-based compensation, of 52 cents a share on revenue of $409.7 million. Netflix ended the second quarter with about 10.6 million subscribers, up 26% from the year-ago period.
Capital One reports quarterly loss of $276 mln(4:23 pm ET)
SAN FRANCISCO (MarketWatch) -- Capital One Financial (COF: news, chart, profile) reported a second-quarter loss of $276 million, or 65 cents a share. That compares to a profit of $453 million, or $1.21 a share, a year earlier. The quarterly loss included $461.7 million that Capital One paid to redeem a government preferred investment from the Troubled Asset Relief Program and a $38 million dividend payment on those securities. Excluding those payments, Capital One said it made a second-quarter profit of $224.2 million, or 53 cents per common share. Capital One was expected to lose 73 cents a share, according to the average estimate of 23 analysts polled by Thomson Reuters.
Thursday, July 23
Eastman Chemical profit falls 43%(5:36 pm ET)
SAN FRANCISCO (MarketWatch) -- Eastman Chemical Co. (EMN: news, chart, profile) , facing weak demand across most of its main markets, reported late Thursday second-quarter net income fell to $65 million, or 89 cents a share, from $115 million, or $1.48 a share, a year ago. Revenue for the three months ended June 30 fell 32% to $1.25 billion. Analysts polled by FactSet Research had expected the company to post earnings of 72 cents a share on $1.32 billion in revenue. Shares of the Kingsport, Tenn.-based company gained $3, or 7%, to close at $45.18 ahead of the report.
Compuware reports quarterly net income of $51 mln (4:47 pm ET)
SAN FRANCISCO (MarketWatch) -- Compuware Corp. (CPWR: news, chart, profile) late Thursday reported its fiscal first-quarter net income rose to $51 million, or 21 cents a share, from $34.7 million, or 13 cents a share, a year earlier. Revenue decreased to $214.4 million from $298.6 million in the same period last year, the information technology company said.
CA quarterly earns slip, FY10 view tops estimates(4:46 pm ET)
LOS ANGELES (MarketWatch) -- CA Inc. (CA: news, chart, profile) late Thursday reported fiscal first-quarter net income of $195 million, or 37 cents a share, compared with $196 million, or 38 cents a share, in the year-ago period. Total revenue at the IT management software company fell to $1.05 billion from $1.09 billion in the year-ago period. On a constant-currency basis, revenue rose 4%. Excluding certain items, earnings would have been $229 million, or 42 cents a share. Analysts polled by Thomson Reuters had expected earnings of 38 cents a share on revenue of $1.03 billion. CA also forecast fiscal 2010 pro forma earnings of $1.60 to $1.70 a share on revenue of $4.3 billion to $4.4 billion. Analysts currently expect earnings of $1.57 a share on revenue of $4.21 billion.
Leggett & Platt profit drops; outlook cut(4:42 pm ET)
SAN FRANCISCO (MarketWatch) -- Leggett & Platt Inc. (LEG: news, chart, profile) late Thursday afternoon reported second-quarter net income from continuing operations of $19 million, or 12 cents a share, down from $46.3 million, or 25 cents a share, in the year ago period. Sales fell 29% to $757.4 million on softer demand for components used in beds, residential and office furniture. Leggett & Platt lowered its 2009 sales outlook to $3 billion. It cut its earnings forecast to a range of 55 cents to 70 cents a share due to lower sales and bad debt expense associated with a customer bankruptcy. Leggett & Platt shares closed at $16.50 ahead of the report. The stock is up more than 8% for the year.
Arch Capital reports quarterly profit of $152 mln(4:38 pm ET)
SAN FRANCISCO (MarketWatch) -- Arch Capital Group (ACGL: news, chart, profile) said late Thursday that second-quarter net income available to common shareholders was $152.1 million, or $2.43 a share. That compares to profit of $192.3 million, or $2.92 a share, for the 2008 second quarter. Operating income, which excludes net realized investment gains and losses, came in at $163 million, or $2.60 a share, in the latest quarter, the reinsurer reported. Arch Capital was expected to make $2.48 a share, according to the average estimate of 15 analysts polled by Thomson Reuters.
Juniper Networks earnings fall 88%(4:35 pm ET)
SAN FRANCISCO (MarketWatch) -- Juniper Networks Inc. (JNPR: news, chart, profile) on Thursday reported a fiscal second-quarter profit of $14.8 million, or 3 cents a share, on revenue of $786.4 million, compared with earnings of $120.4 million, or 22 cents a share, on $879 million in revenue during the same period a year ago. Excluding one-time items, Juniper would have earned $103.8 milllion, or 19 cents a share. Analysts surveyed by FactSet Research had forecast the networking-equipment company to earn 18 cents a share on $764.8 million.
PMC-Sierra's second-quarter profit falls(4:31 pm ET)
SAN FRANCISCO (MarketWatch) -- PMC-Sierra Inc. (PMCS: news, chart, profile) said late Thursday that its second-quarter profit fell to $7.8 million, or 3 cents a share, from $135.9 million, or 60 cents a share, in the year-ago period. Excluding one-time items, the company would have reported a profit of 13 cents a share for the latest quarter. Revenue fell to $123.2 million from $139.8 million last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 6 cents a share on revenue of $119.9 million.
Amex quarterly net income falls 48%(4:30 pm ET)
SAN FRANCISCO (MarketWatch) -- American Express (AXP: news, chart, profile) said late Thursday that second-quarter net income came in at $337 million, down 48% from a year earlier when the credit card giant made $653 million. Net income attributable to common shareholders was nine cents a share, versus 56 cents a share a year earlier, the company added. The results include the money American Express paid to buy back preferred shares from the Treasury Department's Troubled Asset Relief Program. Excluding this payment, adjusted earnings from continuing operations were 27 cents a share, Amex said. The company was expected to make 24 cents a share, according to the average estimate of 18 analysts polled by FactSet Research.
Netflix profit rises 22%; lifts '09 forecast(4:25 pm ET)
CHICAGO (MarketWatch) -- Online DVD-rental pioneer Netflix Inc. (NFLX: news, chart, profile) said Thursday that its second-quarter profit rose 22% as it signed up more customers and cut subscriber acquisition costs during the period, topping the average estimate of Wall Street analysts. The company also lifted its revenue and subscriber estimates for 2009. For the full year, the company now expects to have 11.6 million to 12 million subscribers, up from the previous estimate of 11.2 million to 11.8 million. Revenue is now seen in a range of $1.65 billion to $1.67 billion, up from $1.63 billion to $1.67 billion. After the market closed, Netflix said it earned $32.4 million, or 54 cents a share, compared with a profit of $26.6 million, or 42 cents a share, in the same quarter a year ago. Excluding stock-based compensation, Netflix said it would have earned 58 cents a share in the latest three months. Revenue rose 21% to $408.5 million. Analysts surveyed by Thomson Reuters were expecting a profit, excluding stock-based compensation, of 52 cents a share on revenue of $409.7 million. Netflix ended the second quarter with about 10.6 million subscribers, up 26% from the year-ago period.
Capital One reports quarterly loss of $276 mln(4:23 pm ET)
SAN FRANCISCO (MarketWatch) -- Capital One Financial (COF: news, chart, profile) reported a second-quarter loss of $276 million, or 65 cents a share. That compares to a profit of $453 million, or $1.21 a share, a year earlier. The quarterly loss included $461.7 million that Capital One paid to redeem a government preferred investment from the Troubled Asset Relief Program and a $38 million dividend payment on those securities. Excluding those payments, Capital One said it made a second-quarter profit of $224.2 million, or 53 cents per common share. Capital One was expected to lose 73 cents a share, according to the average estimate of 23 analysts polled by Thomson Reuters.
Federated Investors second-quarter profit falls(4:16 pm ET)
SAN FRANCISCO (MarketWatch) -- Federated Investors Inc. (FII: news, chart, profile) said late Thursday that its second-quarter profit fell to $53.3 million, or 52 cents a share, from $58 million, or 57 cents a share, in the year-ago period. Revenue fell to $306.9 million from $310.3 million last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 49 cents a share on revenue of $311.4 million.
Amazon earnings fall 10% in the second quarter(4:14 pm ET)
SAN FRANCISCO (MarketWatch) -- Amazon.com said Thursday afternoon that earnings for the second quarter fell 10% from the same period last year despite a strong gain in sales. For the quarter ended June 30, Amazon (AMZN: news, chart, profile) reported net income of $142 million, or 32 cents a share, compared to net income of $158 million, or 37 cents a share, for the same period last year. Revenue rose 14% to $4.65 billion for the quarter. Analysts were expecting earnings of 32 cents a share on revenue of $4.69 billion, according to consensus estimates from Thomson Reuters.
BNSF profit up despite lower freight demand(4:13 pm ET)
SAN FRANCISCO (MarketWatch) -- Burlington Northern Santa Fe Corp. (BNI: news, chart, profile) on Thursday reported a second-quarter profit of $404 million, or $1.18 a share, up from $350 million, or $1.00 a share, a year ago. Sales dropped to $3.32 billion from $4.48 billion last year primarily due to a decline in the Ft. Worth, Tex.-based company's freight business. Analysts polled by FactSet Research had expected the railroad operator to post a profit, on average, of $1.01 a share and sales of $3.52 billion.
Microsoft profit disappoints as sales drop 17%(4:14 pm ET)
SAN FRANCISCO (MarketWatch) - Microsoft Corp. (MSFT: news, chart, profile) said Thursday its fiscal fourth quarter net income fell to $3.05 billion, or 34 cents a share, from $4.3 billion, or 46 cents a share in the same period a year earlier. Revenue in the period ended in June fell 17% to $13.1 billion, Microsoft said. Wall Street analysts had expected Microsoft to post fourth-quarter earnings of 36 cents a share on $14.37 billion in revenue, according to data compiled by Thomson Reuters.
Chubb quarterly profit up 17%; beats expectations(4:13 pm ET)
SAN FRANCISCO (MarketWatch) -- Chubb Corp. (CB: news, chart, profile) said late Thursday that second-quarter net income came in at $551 million, or $1.54 a share, up 17% from a year earlier when the property and casualty insurer made $469 million, or $1.27 a share. Operating income, which excludes after-tax realized investment gains and losses, was $533 million, or $1.49 a share, in the latest period, the insurer reported. Chubb was expected to make $1.30 a share, according to the average estimate of 21 analysts polled by Thomson Reuters.
NY Times CEO: Ad rates holding firm(11:56 am ET)
CHICAGO (MarketWatch) -- New York Times Co. (NYT: news, chart, profile) has been able to hold firm on advertising rates amid the difficult economic environment, Chief Executive Janet Robinson told analysts Thursday. She explained that while there has been some pressure on rates at the Boston Globe and some of the company's regional newspapers, the price cuts have not been "meaningful." Robinson added that there is more difficulty maintaining ad volume than in holding the line on prices. Also during the call, Martin Nisenholtz, the company's head of digital operations, said that while NYTimes.com and its other newspaper sites saw a "slight dip" in online ad rates, that was primarily due to strong results in the year-ago quarter. "We have introduced several premium display units that are garnering significant premiums and rates," Nisenholtz said, "so that is helping our display [ad] position and bodes well for us in the rest of the year."
NY Times CEO: Still exploring paid online model(11:26 am ET)
CHICAGO (MarketWatch) -- New York Times Co. (NYT: news, chart, profile) Chief Executive Janet Robinson reiterated Thursday that the newspaper publisher is conducting research on "how many readers would pay for online content." Speaking during a conference call with analysts, Robinson said it is too early to speculate on what the research will indicate, but the company expects "to have more to report in the fall." Also during the call, Robinson declined comment on whether New York Times Co. is seeking a buyer for the Boston Globe.
NY Times Co. CEO: Rate of ad decline fell in 2Q(11:18 am ET)
CHICAGO (MarketWatch) -- New York Times Co. (NYT: news, chart, profile) Chief Executive Janet Robinson told analysts Thursday that total advertising revenues improved as the second quarter progressed. Ad sales were down 35% in April, 30% in May and 29% in June, she said, commenting during a conference call.
Standard Pacific up after results beat forecasts(9:59 am ET)
BOSTON (MarketWatch) -- Shares of Standard Pacific Corp. (SPF: news, chart, profile) were up more than 10% in early trading Thursday after the home builder's quarterly loss came in less than analysts had expected. The company after the close Wednesday reported a second-quarter net loss of 10 cents a share, while the consensus Wall Street estimate was a loss of 15 cents a share. "While we still obviously have not achieved the level of profitability that we ultimately need, we are a lot closer than we were a couple of quarters ago and believe that we are in pretty good shape in the short run because of our higher backlog level," said Standard Pacific Chief Executive Ken Campbell in the earnings statement.
Bank stocks unchanged after Buffett filing(9:55 am ET)
NEW YORK (MarketWatch) -- Financial stocks traded relatively flat in Thursday morning trade, with shares of Moody's Corp. (MCO: news, chart, profile) diving 8% after Warren Buffett's Berkshire Hathaway Inc. (BRK.B: news, chart, profile) disclosed in a regulatory filing that it sold approximately 8 million shares of the ratings agency over the past three trading days. The sector's benchmark exchange-traded fund, Financial Select Sector SPDR Fund (XLF: news, chart, profile) , was up 0.1% to 12.14. On the upside, shares of Fifth Third Bancorp (FITB: news, chart, profile) jumped 14% after the company said it earned $882 million in the second quarter after posting a $202 million loss in the year-ago period.
EMC, eBay, VMware lead early tech gains(9:43 am ET)
SAN FRANCISCO (MarketWatch) -- Technology stocks put in a mixed early trading performance Thursday, with gains from VMware Inc. (VMW: news, chart, profile) , EMC Corp. (EMC: news, chart, profile) and eBay Inc. (EBAY: news, chart, profile) highlighting the day's action following those companies' earnings reports. More results were expected after the market close from Microsoft Corp. (MSFT: news, chart, profile) , Amazon.com Inc. (AMZN: news, chart, profile) and Broadcom Corp. (BRCM: news, chart, profile) . The tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) rose 4 points to 1,930.
Energy stocks move up in early action(9:38 am ET)
NEW YORK (MarketWatch) -- Energy stocks rose in early action on Thursday as Wall Street sifted through positive earnings updates from Occidental Petroleum (OXY: news, chart, profile) and others. The NYSE Arca Oil Index (XOI: news, chart, profile) rose 0.4% to 940. The NYSE Arca Natural Gas Index (XNG: news, chart, profile) rose 0.7% to 436. The Philadelphia Oil Service Index ($OSX: news, chart, profile) rose 0.5% to 167. Occidental Petroleum (OXY: news, chart, profile) rose 28 cents to $70.27. Diamond Offshore (DO: news, chart, profile) fell 1.3% to $86.68 after its earnings update. Noble Corp. (NE: news, chart, profile) rose 1% to $32.24.
Ball quarterly profit rises 33%(9:21 am ET)
NEW YORK (MarketWatch) -- Ball Corp. (BLL: news, chart, profile) reported Thursday that net income in the second-quarter rose 33% from the year-ago period to $133.3 million, or $1.40 a share. Sales fell nearly 7% to $1.93 billion in the three-month period. Second-quarter results included an after-tax gain of $30.7 million, or 32 cents a share, for the sale of a portion of the company's interest in DigitalGlobe Inc. (DGI: news, chart, profile) , and an after-tax charge of $11.6 million, or 12 cents a share, primarily for the closure of two plastic packaging plants and for transaction costs relating to the acquisition of certain metal beverage-packaging assets from Anheuser Busch InBev (AHBI.Y: news, chart, profile) .
Nucor loses 43 cents a share in quarter(9:18 am ET)
NEW YORK (MarketWatch) -- Nucor Corp. (NUE: news, chart, profile) said Thursday that it lost $133 million, or 43 cents a share in the second quarter. In the same period a year ago Nucor earned $581 million, or $1.94 a share. Sales fell to $2.5 billion from $7.1 billion a year ago. Analysts polled by FactSet Research estimated, on average, a loss of 52 cents a share and sales of $2.24 billion.
Safeway posts higher profit, cuts full-year view(9:19 am ET)
NEW YORK (MarketWatch) -- Safeway Inc. (SWY: news, chart, profile) said Thursday that its second-quarter net income rose to $239 million, or 57 cents a share, from $234 million, or 53 cents a share, in the year-earlier period. Earnings in the latest period included a tax benefit of 14 cents a share. Sales fell 6.5% to $9.46 billion. On average, analysts polled by FactSet Research expected the supermarket operator to earn 55 cents a share on sales of $9.6 billion. The company also lowered its 2009 earnings forecast to a range of $1.70 to $1.90 a share, compared to its previous target of $2.10 to $2.30 a share.
New York Times profit rises on items(8:57 am ET)
CHICAGO (MarketWatch) -- New York Times Co. (NYT: news, chart, profile) said Thursday that its second-quarter profit rose 85% on a tax benefit and reduced severance costs compared with the same three months a year ago, and became the latest newspaper publisher reporting quarterly results this month to suggest a modestly improving advertising climate. In a statement, Chief Executive Janet Robinson said that based on what the newspaper publisher has seen in July, the ad environment will "continue to be challenging," but "the rate of decline will moderate slightly" in the third quarter. New York Times said it earned $39.1 million, or 27 cents a share in the second quarter, compared with a profit of $21.1 million, or 15 cents a share, in the same three months last year. Excluding a tax benefit and other items, New York Times said it would have earned 8 cents a share in the latest period. Revenue dropped 21% to $585 million on lower print and and online ad sales. Analysts were expecting a loss of 4 cents a share on revenue of $603 million, according to a survey by Thomson Reuters.
Ensco International net income down 33%(8:45 am ET)
NEW YORK (MarketWatch) -- Ensco International (ESV: news, chart, profile) said Thursday second-quarter net income fell to $197.9 million, or $1.41 a share, from $293.5 million, or $2.05 a share in the year-ago period. Earnings from continuing operations fell to $1.59 a share from $1.98 a share. Revenue at the Dallas based oil service firm dropped to $511.6 million from $609.4 million. Wall Street analysts expected earnings of $1.46 a share and revenue of $512.6 million, according to a survey by FactSet Research. "To further address the weakness in the premium jackup market, we are taking additional actions to reduce costs and align our fleet with the challenging market conditions," Ensco said.
Sigma-Aldrich profit declines on currency impact(8:32 am ET)
CHICAGO (MarketWatch) -- Biotechnology firm Sigma-Aldrich Corp. (SIAL: news, chart, profile) said Thursday that its second-quarter profit declined on an unfavorable currency impact. Sigma-Aldrich said its profit was $84 million, or 68 cents a share, compared with a profit of $91 million, or 70 cents a share, in the second quarter of 2008. Excluding the currency impact, Sigma-Aldrich said it would have earned 79 cents a share in the latest three months. Net sales fell to $522 million from $581 million. Analysts polled by Thomson Reuters were anticipating a profit of 68 cents a share on sales of $531.6 million.
ProLogis sees lower funds from operations(8:25 am ET)
BOSTON (MarketWatch) -- ProLogis (PLD: news, chart, profile) said Thursday its second-quarter funds from operations fell to 34 cents a share from $1.02 in the year-earlier quarter. The real estate investment trust, which has been hit by lower demand for industrial properties during the global economic downturn, said net earnings dropped to 58 cents a share from 76 cents. ProLogis Chief Executive Walter Rakowich said the industry is facing declining rents, and expects the difficult leasing environment to persist. "Property fundamentals continue to mirror global economic weakness, characterized by reductions in market rental rates and an increase in leasing concessions," the CEO said. ProLogis reiterated its full-year estimate for FFO in the range of $1.31 and $1.48 a share.
Northrop Grumman earnings fall; sales rise 4%(8:19 am ET)
NEW YORK (MarketWatch) -- Northrop Grumman Corp. (NOC: news, chart, profile) said Thursday that second-quarter earnings from continuing operations were $394 million, or $1.21 a share, compared with $483 million, or $1.40 a share, a year ago. Results include a $64 million pre-tax gain, or 13 cents a share, for legal matters, and a $105 million pre-tax charge, or 21 cents a share, for cost increases in the estimates to complete several ships under construction. Sales increased 4% to $8.96 billion from $8.63 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of $1.28 and sales of $8.66 billion.
Thursday, July 23 Before Open
Sigma-Aldrich profit declines on currency impact(8:32 am ET)
CHICAGO (MarketWatch) -- Biotechnology firm Sigma-Aldrich Corp. (SIAL: news, chart, profile) said Thursday that its second-quarter profit declined on an unfavorable currency impact. Sigma-Aldrich said its profit was $84 million, or 68 cents a share, compared with a profit of $91 million, or 70 cents a share, in the second quarter of 2008. Excluding the currency impact, Sigma-Aldrich said it would have earned 79 cents a share in the latest three months. Net sales fell to $522 million from $581 million. Analysts polled by Thomson Reuters were anticipating a profit of 68 cents a share on sales of $531.6 million.
ProLogis sees lower funds from operations(8:25 am ET)
BOSTON (MarketWatch) -- ProLogis (PLD: news, chart, profile) said Thursday its second-quarter funds from operations fell to 34 cents a share from $1.02 in the year-earlier quarter. The real estate investment trust, which has been hit by lower demand for industrial properties during the global economic downturn, said net earnings dropped to 58 cents a share from 76 cents. ProLogis Chief Executive Walter Rakowich said the industry is facing declining rents, and expects the difficult leasing environment to persist. "Property fundamentals continue to mirror global economic weakness, characterized by reductions in market rental rates and an increase in leasing concessions," the CEO said. ProLogis reiterated its full-year estimate for FFO in the range of $1.31 and $1.48 a share.
Northrop Grumman earnings fall; sales rise 4%(8:19 am ET)
NEW YORK (MarketWatch) -- Northrop Grumman Corp. (NOC: news, chart, profile) said Thursday that second-quarter earnings from continuing operations were $394 million, or $1.21 a share, compared with $483 million, or $1.40 a share, a year ago. Results include a $64 million pre-tax gain, or 13 cents a share, for legal matters, and a $105 million pre-tax charge, or 21 cents a share, for cost increases in the estimates to complete several ships under construction. Sales increased 4% to $8.96 billion from $8.63 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of $1.28 and sales of $8.66 billion.
Union Pacific net income down 12%(8:20 am ET)
NEW YORK (MarketWatch) -- Union Pacific Corp. (UNP: news, chart, profile) said Thursday second-quarter net income fell 12% to $468 million, or 92 cents a share, from $531 million, or $1.02 a share in the year-ago period. Without a one-time boost of $72 million for a land sale to Colorado's Regional Transportation District, earnings in the lastest period totaled 78 cents a share. Revenue fell 28% $3.3 billion. Analysts expected earnings of 78 cents a share and revenue of $3.4 billion, according to a survey by FactSet Research. "Although we expect it will be some time before the economy recovers, it appears that volume levels may have hit the bottom as the economy seems to have stabilized," the railroad said.
International Game Technology Q3 profit falls(8:14 am ET)
NEW YORK (MarketWatch) -- International Game Technology (IGT: news, chart, profile) reported Thursday that net income in its fiscal third quarter ended June 30 fell 39% from the year-ago period to $66.3 million, or 22 cents a share. Revenue dropped 23% to $522.1 million, while units shipped worldwide decreased 31%, the computer gaming provider said. In its gaming operating division, quarterly revenue and gross profit declined 14% and 11%, respectively, from the same quarter the previous year.
Ryder earnings slump by more than half(8:08 am ET)
NEW YORK (MarketWatch) -- Ryder System Inc. (R: news, chart, profile) said Thursday that second-quarter earnings fell to $23 million, or 41 cents a share, compared to $63 million, or $1.09 a share, from a year ago. Revenue fell to $1.24 billion, down 25% compared with $1.66 billion in the same period of last year. Analysts polled by FactSet Research estimated, on average, earnings per share of 38 cents and sales of $1.25 billion. Ryder said it anticipates the weak overall economic environment and protracted freight recession to continue throughout the remainder of 2009.
UPS profit falls 49% on global econnomic weakness (8:01 am ET)
NEW YORK (MarketWatch) -- Package delivery firm UPS (UPS: news, chart, profile) said its second quarter profit was almost halved due to the global economic slowdown, falling to $445 million, or 44 cents a share from $873 million, or 85 cents a share a year ago. On an adjusted basis, earnings per share were 49 cents versus 85 cents a year ago. Analysts polled by Thomson Reuters had expected the company to earn 49 cents a share in the quarter. Revenue totaled $10.83 billion in the quarter, compared to $13 billion a year ago. The company also Thursday reiterated its third quarter profit outlook of 45 cents a share to 55 cents a share.
JetBlue swings to profit as costs decline(7:57 am ET)
CHICAGO (MarketWatch) -- JetBlue Airways Corp. (JBLU: news, chart, profile) said Thursday that it swung to a better-than-expected second-quarter profit as operating expenses declined 13%. JetBlue said it earned $20 million, or 7 cents a share, in the quarter ended June 30. A year earlier, it took a loss of $9 million, or 4 cents a share. Excluding an accounting gain, JetBlue would have earned $14 million, or 5 cents a share in the latest three months. Revenue declined 6% to $807 million. Analysts were expecting a profit of 2 cents a share on revenue of $800.1 million, according to a survey by Thomson Reuters. Passenger revenue per available seat mile fell 5.7% to 8.76 cents, while operating revenue per available seat mile declined 4.4% to 9.80 cents. In the third quarter, JetBlue expects to report an operating margin of 6-8%. Passenger revenue per available seat mile is expected to decrease between 8% and 11% from 2008's third quarter, the company said, while revenue per available seat mile is seen declining between 7% and 10%.
Bristol-Myers reports higher quarterly earnings(7:54 am ET)
BOSTON (MarketWatch) -- Bristol-Myers Squibb (BMY: news, chart, profile) said early Thursday that its second-quarter earnings were $983 million, or 49 cents a share, up from $764 million, or 38 cents a share, for the 2008 quarter. Excluding various items, the drugmaker would have posted adjusted earnings of 56 cents a share, versus 43 cents a share. Revenue for the quarter rose 3% to $5.38 billion. According to a poll by FactSet Research, Bristol-Myers was pegged at posting earnings of 47 cents a share, on revenue of $5.29 billion. The company said it now sees 2009 earnings a share coming in between $1.58 and $1.68 a share, with adjusted earnings of $1.95 to $2.05.
Celgene posts higher quarterly profit(7:54 am ET)
NEW YORK (MarketWatch) -- Biotech company Celgene Corp. (CELG: news, chart, profile) said Thursday that its second-quarter profit rose to $143 million, or 31 cents a share, from $120 million, or 26 cents a share, in the year-earlier quarter. Excluding items, adjusted earnings came in at 46 cents a share. The consensus forecast was for earnings of 42 cents a share, according to FactSet Research. Revenue rose to $629 million from $571 million. The company reaffirmed its forecast for full-year adjusted earnings at the lower end of $2.05 to $2.10 a share.
Reynolds American earnings up 3.6%(7:52 am ET)
NEW YORK (MarketWatch) -- Reynolds American Inc. (RAI: news, chart, profile) said Thursday that second-quarter earnings were $377 million, or $1.29 a share, compared to $364 million, or $1.23 a share, in the same period a year ago. Revenue fell 3.8% to $2.25 billion compared to $2.34 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of $1.16 and sales of $2.27 billion. Reynolds American sees 2009 adjusted earnings per share of $4.40 to $4.60.
AT&T profit off 15%; activates 2.4 million iPhones(7:50 am ET)
WASHINGTON (MarketWatch) -- AT&T Inc. (T: news, chart, profile) on Thursday reported a 15% decline in second-quarter net income owing to further declines in its wireline business as well as heavy subsidies to sign up new iPhone customers. The company added a net 1.4 million mobile customers, including a record 2.4 million iPhone accounts. Net income slid to $3.2 billion, or 54 cents a share, from $3.8 billion, or 63 cents a share, a year earlier. Revenue dipped 0.4% to $30.7 billion. AT&T was projected to earn 52 cents a share on revenue of $30.72 billion, according to a survey of analysts compiled by FactSet Research.
Fifth Third chargeoffs almost doubled in Q2(7:50 am ET)
NEW YORK (MarketWatch) -- Ohio-based Fifth Third Bancorp (FITB: news, chart, profile) said on Thursday that its net chargeoffs as a percentage of loans almost doubled in the second quarter, driven by a surge in chargeoffs for commercial loans. Total net chargeoffs in the quarter rose to 3.08% of outstanding loans. The rate for commercial loans was 2.81%, up from 1.41% a year ago. Consumer chargeoffs as a percentage of total loans rose to 3.48% from 2.04%. In dollar amounts, the bank charged off $626 million of loans in the quarter, compared to $344 million a year ago. "Loss experience overall continues to be driven by commercial and residential real estate loans in Michigan and Florida, the company said in a press release. " In aggregate, Florida and Michigan represented approximately 45 percent of total losses during the quarter and 28 percent of total loans and leases." The company said within its commercial portfolio, "Michigan and Florida account(ed) for 54% of commercial construction losses."
Occidental Petroleum net income falls 70%(7:46 am ET)
NEW YORK (MarketWatch) -- Occidental Petroleum (OXY: news, chart, profile) said Thursday second-quarter net income fell 70% to $682 million, or 84 cents a share, from $2.3 billion or $2.78 a share in the year-ago period. The Los Angeles oil and gas producer said sales fell to $3.69 billion from $7.11 billion. Wall Street analysts expected earnings of 75 cents a share and revenue of $3.87 billion, according to a survey by FactSet Research. The company said it boosted production growth by 10% in the second quarter over the year-ago period. Its discovery in Kern County, Calif. announced on Wednesday "should also contribute to our future growth," the company said.
Zimmer net declines 7.5%; year outlook affirmed(7:47 am ET)
TEL AVIV (MarketWatch) -- Zimmer Holdings Inc., (ZMH: news, chart, profile) the Warsaw, Ind., medical-products developer, reported that second-quarter net income fell 7.5% on 5.5% lower sales. Earnings were $210.1 million, or 98 cents a share, compared with $227.1 million, or 99 cents, in the year-earlier quarter. Adjusted earnings for the period were $1 a share compared with $1.03. Shares outstanding declined 6.1% to 215.5 million. Net sales fell to $1.02 billion from $1.08 billion. A survey of analysts by FactSet Research produced consensus estimates of 96 cents of profit on $1.02 billion of sales. And Zimmer affirmed its earnings and sales estimates for the year. The company sees adjusted earnings of $3.85 to $4 a share as revenue declines 1% to 3% on a constant-currency basis. FactSet's survey is looking for earnings of $3.88.
EMC quarterly net income falls 43%(7:41 am ET)
NEW YORK (MarketWatch) -- EMC Corp. (EMC: news, chart, profile) said Thursday that it earned $205.2 million, or 10 cents a share, in the second-quarter ended June 30 compared to net income of $360.1 million, or 17 cents a share, in the year-ago period. Revenue fell 11% to $3.26 billion in the three-month period. On an adjusted basis, the data storage provider earned $358.9 million, or 18 cents a share, in the second-quarter. EMC also said it expects to earn 51 cents a share in 2009, including the negative impact of a little less than 2 cents a share from the acquisition of Data Domain Inc. (DDUP: news, chart, profile) .
Huntington Bancshares reports slimmer loss(7:41 am ET)
BOSTON (MarketWatch) -- Huntington Bancshares Inc. (HBAN: news, chart, profile) on Thursday reported a second-quarter net loss of $125.1 million, or 40 cents a share, compared with a loss of $2.43 billion, or $6.79 a share, in the year-earlier period. The Ohio-based bank said provision for credit losses was $413.7 million in the second quarter as it continues to wrestle with exposure to troubled real estate loans. "Though we saw increases in net charge-offs and delinquencies in our residential mortgage portfolio, this was in line with expectations given the market environment," said Chief Executive Stephen Steinour. "In light of our commercial loan portfolio review, it was prudent to continue to build reserves," he added.
L-3 Communications profit drops 18%(7:35 am ET)
LONDON (MarketWatch) -- L-3 Communications Holdings Inc. (LLL: news, chart, profile) said Thursday that its second-quarter net profit fell 18.2% to $225 million, or $1.90 a share, from $275 million, or $2.21 a share, a year earlier. Revenue for the quarter was up 5.6% at $3.93 billion. Excluding one-off gains a year ago, earnings were up 16%, the group said. Analysts had been expecting earnings of $1.77 a share. The group said sales growth was driven by its command, control, communications, intelligence, surveillance and reconnaissance division as well as its aircraft modernization and maintenance unit. The group lifted its guidance for 2009 earnings per share to a range of $7.25 to $7.35 from a range of $7.17 to $7.32.
NCR profit drops 49% in second quarter(7:30 am ET)
WASHINGTON (MarketWatch) - NCR Corp. (NCR: news, chart, profile) on Wednesday reported a 49% drop in second-quarter profit stemming from falling sales and onetime reorganization costs. The Duluth, Ga.-based company reported net income of $23 million, or 14 cents a share, down from $44 million, or 26 cents a share, in the year-earlier period. Revenue fell nearly 16% to $1.12 billion. Adjusted for onetime items, NCR said it would have earned 13 cents a share, compared with 40 cents a year earlier. The company reiterated its forecast for 2009 of adjusted earnings in the range of 60 cents to 75 cents a share, with revenue 5% to 10% lower compared to 2008. NCR makes automated tellers and related technology products.
Diamond Offshore net income falls 6.9%(7:29 am ET)
NEW YORK (MarketWatch) -- Diamond Offshore Drilling Inc. (DO: news, chart, profile) on Thursday said second-quarter net income fell 6.9% to $387.4 million, or $2.79 a share, from $416.2 million, or $2.99 a share in the year-ago period. Revenue dropped to $946.4 million from $954.4 million. Analysts expected earnings of $2.61 a share on revenue of $943.4 million, according to a survey by FactSet Research.
Omnicom's quarterly profit falls 24%(7:24 am ET)
NEW YORK (MarketWatch) -- Omnicom Group (OMC: news, chart, profile) said Thursday that its second-quarter profit fell 24% to $233.4 million, or 75 cents a share, from $307 million, or 95 cents a share, in the year-ago period. Analysts surveyed by FactSet Research had expected, on average, profit of 74 cents a share. The marketing and communications company said worldwide revenue in the quarter fell 17% to $2.87 billion from $3.48 billion.
CME Group's quarterly revenue climbs 15%(7:20 am ET)
BOSTON (MarketWatch) -- CME Group Inc. (CME: news, chart, profile) on Thursday reported second-quarter net income of $222 million, or $3.33 a share, compared with profit of $201 million, or $3.67 a share, in the same quarter the previous year. The operator of the Chicago Mercantile Exchange, Chicago Board of Trade and New York Mercantile Exchange said quarterly revenue rose 15% to $648 million. The company said average daily volume was 10.4 million contracts, off 19% from the year-ago quarter. "As the economy showed signs of stability, we saw increased volumes in June, particularly in interest rates, foreign exchange and agricultural markets," said Terry Duffy, CME Group's executive chairman.
Hershey earnings jump to 31 cents a share(7:20 am ET)
NEW YORK (MarketWatch) -- The Hershey Co. (HSY: news, chart, profile) said Thursday that second-quarter earnings rose to $71 million, or 31 cents a share, compared to $41 million, or 18 cents a share, in the year-ago period. On an adjusted basis, earnings per share were 43 cents. Sales were $1.2 billion compared with $1.1 billion a year earlier. Analysts polled by FactSet Research estimated, on average, earnings per share of 35 cents and sales of $1.1 billion. Hershey sees 2009 sales growth in 3% to 5% range and increase in adjusted earnings per share to be slightly above the 6% to 8% range.
Fifth Third swings to profit on $1 bln gain (7:13 am ET)
NEW YORK (MarketWatch) -- Fifth Third Bancorp (FITB: news, chart, profile) on Thursday said it earned net income of $882 million, or $1.15 a share, compared to a loss of $202 million, or 37 cents a share a year ago. Results for 2009 's second quarter net income included an after tax gain of $1.10 billion from the completion of the previously announced processing business transaction with Advent International. Results also included a special FDIC deposit insurance fund assessment of $36 million after-tax.
Wyeth ups earnings target after 13% profit rise(7:14 am ET)
LONDON (MarketWatch) -- Wyeth (WYE: news, chart, profile) said its second-quarter profit rose 13% to $1.27 billion, or 94 cents a share, while revenue fell 4% to $5.7 billion. Wyeth, which expects its takeover by Pfizer (PFE: news, chart, profile) to close at the end of the third quarter or the beginning of the fourth quarter, said it would have earned 98 cents a share if restructuring charges and merger costs are excluded. As with sector peers, Wyeth raised its earnings outlook, now seeing adjusted earnings between $3.48 and $3.58 a share. Analysts polled by FactSet had forecast second-quarter earnings of 85 cents a share and 2009 earnings of $3.46.
Ford's operating loss is narrower than expected (7:08 am ET)
NEW YORK (MarketWatch) -- Ford Motor Co. (F: news, chart, profile) on Thursday said it earned $2.3 billion, or 69 cents a share in its second quarter, compared to a loss of $8.7 billion, or $3.89 a share in the year-ago period. The latest period included a one-time gain of $3.4 billion related to Ford and Ford Credit's debt reduction moves. On an after-tax basis, excluding special items, Ford posted a second-quarter operating loss of $638 million, or 21 cents a share compared with a loss of $1.4 billion, or 63 cents a share a year ago. Revenue fell by $11 billion to $27.2 billion. Analysts expected a loss of 49 cents a share on revenue of $24.8 billion, according to a survey by FactSet Research. Ford remains on track, based on current planning assumptions, to achieve its 2011 financial targets.
Xerox reports 35% profit decline(7:06 am ET)
LONDON (MarketWatch) -- Xerox Corp. (XRX: news, chart, profile) said its second-quarter net income fell 35% to $140 million, or 16 cents a share, with revenue falling 18% to $3.73 billion. The copy machine producer cited continued spending constraints in the overall business environment, which is delaying purchasing decisions for new technology and slowing demand for document-related supplies. It expects third-quarter EPS between 10 cents and 12 cents a share and annual earnings between 50 cents and 55 cents. Analysts polled by FactSet had forecast earnings of 11 cents a share for the second quarter, 14 cents for the third, and 51 cents for the year.
PNC Financial posts lower second-quarter profit(6:56 am ET)
NEW YORK (MarketWatch) -- PNC Financial Services Group Inc. (PNC: news, chart, profile) said Thursday that its second-quarter net income fell to $207 million, or 14 cents a share, from $517 million, or $1.45 a share, in the year-earlier period. The Pittsburgh-based bank said that the latest results include a special FDIC assessment of 19 cents a share and integration costs of 20 cents a share. On average, analysts polled by FactSet Research were expecting earnings of 51 cents a share. Revenue rose to $3.99 billion from $2.04 billion, and net interest income more than doubled to $2.18 billion from $977 million.
NII Holdings net off 9.6%, revenue down 4.1%(6:54 am ET)
TEL AVIV (MarketWatch) -- NII Holdings Inc., (NIHD: news, chart, profile) the Reston, Va., provider of mobile communications for business in Latin America, reported that second-quarter net income fell 9.6% on 4.1% lower revenue. Earnings were $134.3 million, or 79 cents a share, compared with $148.5 million, or 86 cents, in the year-earlier quarter. Revenue fell to $1.06 billion from $1.1 billion. A survey of analysts by FactSet Research produced consensus estimates of 61 cents of profit on $1.03 billion of revenue. Net income included $64 million of gains related to the strengthening of the Brazilian real against the U.S. dollar. Average revenue per subscriber was $44 against $59 a year earlier. And the company affirmed that it expects revenue of $4.1 billion to $4.3 billion for 2009.
Goodrich profit slips, boosts full-year outlook(6:53 am ET)
LONDON (MarketWatch) -- Aerospace and defense firm Goodrich Corp. (GR: news, chart, profile) on Thursday reported second-quarter net income of $177.1 million, or $1.41 a share, compared to $186.6 million, or $1.47 a share in the same period last year. Discontinued operations contributed $31.2 million, or 25 cents a share, to second-quarter earnings. A survey of analysts by FactSet Research had produced a consensus forecast of $1.12 a share. Second-quarter sales fell 8% from a year earlier to $1.7 billion, the company said, including a $91 million reduction attributed to foreign exchange. The Charlotte, N.C.-based company raised the lower end of its full-year 2009 forecast range, saying it now expects earnings of $4.60 to $4.75 a share. It previously estimated earnings of $4.50 to $4.75 a share.
Wednesday, July 22
6:23PM Medtronic: FDA panel recommends approval of Medtronic heart valve under humanitarian device exemption (MDT) 34.09 -0.92 : Co announced the FDA's Circulatory System Devices Panel today recommended conditional approval of a Humanitarian Device Exemption (HDE) for the Melody Transcatheter Pulmonary Valve, by Medtronic (MDT), for the treatment of children and adults with congenital heart disease. The FDA usually follows the recommendations of its expert panels. Devices approved under HDE are intended to serve patient populations of fewer than 4,000 per year in the United States.
6:20PM Newfield Expl beats by $0.18, misses on revs (NFX) 35.52 +0.16 : Reports Q2 (Jun) earnings of $1.28 per share, $0.18 better than the First Call consensus of $1.10; revenues fell 58.5% year/year to $287 mln vs the $483.4 mln consensus.
6:16PM Newfield Exploration provides horizontal Granite Wash update; first seven wells wave initial production average of 22 MMcfe/d (NFX) 35.52 +0.16 :
6:04PM Walter Inds beats by $0.26, beats on revs (WLT) 42.96 -0.22 : Reports Q2 (Jun) earnings of $0.21 per share, $0.26 better than the First Call consensus of ($0.05); revenues fell 38.4% year/year to $169.1 mln vs the $163.9 mln consensus. Co says Q3 2009 metallurgical coal sales expected to total 1.4-1.6 mln tons.
5:59PM Education Realty Trust announces pricing of common stock offering at $4.35 (EDR) 4.70 -0.35 : Co announced that it has priced its public offering of 24,500,000 shares of its common stock at a price to the public of $4.35 per share. The offering was increased in size from the originally contemplated 21,000,000 shares of common stock. Additionally, the co has granted the underwriters a 30-day option to purchase up to 3,675,000 additional shares of common stock to cover overallotments, if any, at the price to the public less the underwriting discount. The co intends to use the net proceeds from the offering to repay debt, including the outstanding balance under its revolving credit facility and a portion of the mortgage debt associated with the communities in its Place portfolio, and any additional net proceeds will be used for general corporate purposes.
5:58PM Rush Enterprises beats by $0.01, beats on revs (RUSHA) 12.69 +0.14 : Reports Q2 (Jun) earnings of $0.04 per share, excluding an $0.08 charge, $0.01 better than the First Call consensus of $0.03; revenues fell 31.4% year/year to $312.1 mln vs the $308.7 mln consensus. Co says, "Currently, industry analysts have dropped the forecast for 2009 U.S. retail sales of Class 8 trucks to 93,000 units, down 19% from last quarter's forecast and 33% over 2008. We believe 2009 sales of Class 8 units will be in the range of 90,000 to 100,000 units. U.S. retail sales of medium-duty trucks are also forecasted to be down as much as 35% compared to 2008. With U.S. Class 8 retail sales forecast now below 100,000 units, we expect this will continue to be one of the weakest markets since 1983."
5:56PM Richardson Elec reports Q2 (RELL) 3.46 : Reports Q4 (Jun) earnings of ($.59), includs charges, may not be comparablet to the First Call consensus of $0.11; revenues fell 26.1% year/year to $114.6 mln vs the $124.3 mln consensus. Co says, "While sales have declined, we are beginning to see our backlog stabilize, our customers are becoming more optimistic, and we are seeing pockets of good news in terms of projects that are getting back on track. We are continuing to aggressively take costs out of the business. We are making permanent fundamental changes to the way we operate that will position us to return to profitability during fiscal 2010."
5:47PM Alcon beats by $0.23, reports revs in-line; reaffirmed FY09 EPS in-line (ACL) 120.04 -2.96 : Reports Q2 (Jun) earnings of $1.94 per share, $0.23 better than the First Call consensus of $1.71; revenues fell 3.4% year/year to $1.68 bln vs the $1.66 bln consensus. Co reaffirmed in-line guidance for FY09, sees EPS of $6.25-6.40, excluding non-recurring items, vs. $6.28 consensus. ACL has entered into a five-year collaborative research agreement with AstraZeneca for the exclusive ophthalmic discovery and potential development rights to AstraZeneca's compound library. The agreement covers multiple classes of small molecules with lead compounds targeting development of drugs to treat sight-threatening conditions such as glaucoma, wet and dry age-related macular degeneration and other retinal diseases, as well as ocular allergy, dry eye and other inflammatory eye conditions
5:38PM Raymond James beats by $0.14, misses on revs (RJF) 18.45 +0.35 : Reports Q3 (Jun) earnings of $0.36 per share, $0.14 better than the First Call consensus of $0.22; revenues fell 15.8% year/year to $624.8 mln vs the $637.5 mln consensus. "The market rally in the June quarter was sufficient to generate a material increase in profits from the second quarter, but not nearly enough to emulate the record revenues and net income attained in last year's comparable quarter. Like the rest of corporate America, improved short-term profit results don't reflect much revenue growth, symptomatic of the continuing deep recession.. My best guess is that volatility in the market will continue to be high by historical standards and that the general economic recovery will be protracted given the damage to the financial sector and the overall economy. During the June quarter, we added 150 financial advisors, which resulted in a total of 5,333 retail and institutional financial advisors. As we have continued to add producing personnel of all types aggressively, we are poised to participate in the recovery as it occurs."
5:37PM Steel Dynamics beats by $0.03, beats on revs; guides Q3 EPS above consensus (STLD) 17.01 +0.22 : Reports Q2 (Jun) loss of $0.08 per share, $0.03 better than the First Call consensus of ($0.11); revenues fell 67.0% year/year and 3% sequentially to $792.2 mln vs the $739.6 mln consensus. Co issues upside guidance for Q3, sees EPS of $0.10-0.20 vs. $0.10 consensus. Co says Q2 average selling price declined to $594 per ton from $720 per ton in Q1. Co experienced a slight improvement in business conditions in Q2. Order entry picked up at the Flat Roll Division and at The Techs in early May and has continued to be strong, resulting in improved backlogs. It remains unclear whether this increase in business activity will persist, or will be short-lived, as the co continues to see conflicting signs in the economy. While its flat-roll steel businesses are currently operating near capacity, co has seen only marginal improvement in long products. Co has yet to see signs of improvement in the construction markets.
5:33PM Humana filed a protest with the GAO regarding recent award of the third generation Tricare program contract (HUM) 29.38 -0.06 : Co announced that its wholly owned subsidiary, Humana Military Healthcare Services, has filed a protest with the Government Accountability Office in connection with the recent award of the third generation Tricare program contract for the South Region to another contractor. In its protest, Humana cited discrepancies between the award criteria and procedures prescribed in the request for proposals issued by the Department of Defense (DoD) and those that appear to have been used by the DoD in making its contractor selection. Under its existing Tricare contract, Humana Military provides managed care services supporting the DoD's delivery of health benefits to approximately 3 million active duty service men and women, their dependents, as well as retired service members and their families in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas.
5:32PM DST Systems beats by $0.02, misses on revs (DST) 40.26 +0.72 : Reports Q2 (Jun) earnings of $0.90 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.88; revenues fell 5.2% year/year to $404.5 mln vs the $419.8 mln consensus.
5:29PM Glimcher Realty beats by $0.03; issues in-line FY09 FFO guidance, issues Q3 FFO guidance below consensus (GRT) 2.90 +0.09 : Reports Q2 (Jun) funds from operations (FFO) of $0.44 per share, $0.03 better than the First Call consensus of $0.41; revenues fell 2.7% year/year to $75.6 mln vs the $74.2 mln consensus. Co sees Q3 FFO's of $1.85-1.95 vs $1.87 consensus; sees Q3 FFO's of $0.39-0.43 vs $0.45 consensus.
5:28PM Duke Realty Corporation announces increase in number of authorized shares of common stock to 400 mln from 250 mln (DRE) 8.37 -0.09 : Co says a separate proposal to increase the number of authorized shares of preferred stock to ten million from five million failed to receive the necessary shareholder approval.
5:12PM Albemarle beats by $0.08, misses on revs (ALB) 27.19 +0.84 : Reports Q2 (Jun) earnings of $0.41 per share, excluding non-recurring items, $0.08 better than the First Call consensus of $0.33; revenues fell 28.3% year/year to $445.3 mln vs the $512.2 mln consensus. Co says, "Much uncertainty still exists as to the duration of the current global economic downturn and the impacts on the end-markets serviced by our products. However, we are seeing indications of better customer order patterns across our businesses and the benefits of our cost reduction programs. We believe that these dynamics will favorably position us to cope with the continuing challenges in the global marketplace and emerge even stronger in the markets we serve."
5:02PM Noble Corp beats by $0.04, reports revs in-line (NE) 31.93 -0.62 : Reports Q2 (Jun) earnings of $1.54 per share, excluding a net after-tax charge of $0.05 per share related to expenses associated with the Noble David Tinsley, which was damaged as a result of the previously disclosed "punch-through" event that occurred as the unit was being positioned on location offshore Qatar, $0.04 better than the First Call consensus of $1.50; revenues rose 10.6% year/year to $898.9 mln vs the $899.9 mln consensus. "Looking ahead, we do not expect the near-term contracting environment to change significantly despite the gradual recovery we are seeing in crude prices. However, every day that crude prices stay at a reasonable level or continue to improve builds confidence in our future. Our backlog is at a very healthy level and we continue to exercise discipline on the cost side. At the same time, we are making investments to improve the reliability and performance of our fleet."
5:02PM Graco beats by $0.01, misses on revs (GGG) 24.47 +0.33 : Reports Q2 (Jun) earnings of $0.19 per share, $0.01 better than the First Call consensus of $0.18; revenues fell 38.3% year/year to $147.7 mln vs the $158.9 mln consensus. Co said, "We are hopeful that the worst of the economic crisis is behind us, but we expect that global economic conditions will continue to present a challenging operating environment for at least the rest of the year. We intend to continue making targeted investments in our strategic growth initiatives. We will continue to strengthen our competitive position, expand our product offering, build our global channel and enter new markets. We are working to position the co to emerge from this recession with strong, profitable growth. The timing and shape of this recovery are highly uncertain, so we will remain flexible and have contingency plans in place to appropriately respond to conditions as they unfold."
4:50PM IRobot beats by $0.01, beats on revs; guides Q3 EPS below consensus, revs below consensus; guides FY09 EPS in-line, revs in-line (IRBT) 12.75 -0.19 : Reports Q2 (Jun) loss of $0.10 per share, $0.01 better than the First Call consensus of ($0.11); revenues fell 8.8% year/year to $61.3 mln vs the $59.3 mln consensus. Co issues downside guidance for Q3, sees EPS of $0.00-0.03 vs. $0.07 consensus; sees Q3 revs of $75-80 mln vs. $87.10 mln consensus. Co issues in-line guidance for FY09, sees EPS of $0.00-0.04 vs. $0.03 consensus; sees FY09 revs of $295-305 mln vs. $299.05 mln consensus.
4:49PM Barrett Business expects to record a material second quarter charge relating to its workers' compensation liabilities (BBSI) 10.89 +0.07 : Co reported that it expects to record an increase to its workers' compensation reserve of approx $11.8 mln pre-tax, or $7.4 mln after tax equating to approximately $.72 per share, in the 2009 second quarter as a result of management's change in estimate of the ultimate cost of the Company's self-insured workers' compensation claim liabilities related to prior year injury claims.
4:42PM Alcon and AstraZeneca to collaborate on eye drug development (ACL) 20.04 -2.96 : Co announces that it has entered into a five-year collaborative research agreement with AstraZeneca (AZN) for the exclusive ophthalmic discovery and potential development rights to AstraZeneca's compound library. The agreement matches Alcon's specific ophthalmic research capability with AstraZeneca's rich drug libraries and covers multiple classes of small molecules with lead compounds that already have been identified to have a strong scientific rationale for utility in ophthalmic disease. The two companies are targeting development of drugs to treat sight-threatening conditions such as glaucoma, wet and dry age-related macular degeneration and other retinal diseases, as well as ocular allergy, dry eye and other inflammatory eye conditions.
4:41PM NetSuite to acquire QuickArrow for $20 million in cash (N) 12.64 +0.22 : Co announced that it has signed a definitive agreement to acquire QuickArrow, software maker of cloud computing software for professional services businesses. NetSuite will purchase QuickArrow for $20 million in cash. NetSuite does not currently expect that this transaction will have a material impact on its results of operations in 2009. NetSuite expects the transaction on a standalone basis to be accretive in 2010 to non-GAAP net income and cash flow. Non-GAAP net income excludes expenses related to stock-based compensation and the amortization of intangible assets. The Company is not able to reconcile its non-GAAP net income outlook for 2010 with its GAAP equivalent because the Company cannot at this time accurately estimate expenses relating to amortization of intangibles from this acquisition.
4:39PM Skyworks beats by $0.02, beats on revs; guides Q4 EPS above consensus, revs above consensus (SWKS) 11.68 +0.38 : Reports Q3 (Jun) earnings of $0.16 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.14; revenues fell 11.1% year/year to $191.2 mln vs the $183.2 mln consensus. Co issues upside guidance for Q4, sees EPS of $0.19 vs. $0.17 consensus; sees Q4 revs of $210.3 mln vs. $196.15 mln consensus. "Although we remain cautious on the macro-economy, our expanding product, market and customer footprints are setting the stage for a much stronger back half of 2009 for Skyworks."
4:38PM Mosaic beats by $0.23, reports revs in-line; Co is not providing financial guidance on potash sales volumes or MOP selling price (MOS) 48.42 -0.71 : Reports Q4 (May) earnings of $0.33 per share, including tax benefit of $282.7 million, or $0.63 per share, was recorded relating to a special dividend from Mosaic's non-U.S. subsidiaries to its U.S. subsidiaries, $0.23 better than the First Call consensus of $0.10; revenues fell 54.0% year/year to $1.59 bln vs the $1.58 bln consensus. In potash, the average Q4 MOP selling price, FOB plant, was $540 per tonne, which is a $205 per tonne increase compared with a year ago and a $25 per tonne decrease compared with the Q3 of FY09. The Potash segment's total sales volume was 0.6 mln tonnes for Q4 compared to 2.4 mln tonnes a year ago. Potash production was 0.7 mln tonnes in Q4, a decline of 1.5 mln tonnes from a year ago. In phosphate, The average Q4 DAP selling price, FOB plant, was $345 per tonne, which was a $409 per tonne decrease compared with a year ago and a $68 per tonne decrease compared with Q3 of FY09. The Phosphates segment's total sales volume was 1.9 mln tonnes for Q4 compared to 2.4 mln tonnes a year ago. MOS' gross margin for Q4 of FY09 was $204.1 mln, or 13% of net sales, compared with $1.3 bln, or 37% of net sales, a year ago. MOS' Q4 results were driven by significantly lower sales volumes and lower phosphate selling prices. The significant decline in sales volumes, primarily potash, in Q4 was related to continued cautious purchasing by customers due to, among other factors, volatile grain and oilseed prices, global economic conditions, the recalibration of the phosphate market to reflect, in part, lower raw material input costs and the lack of normal contracting activity in the potash market... Sales volumes for the Phosphates segment are expected to range from 1.9-2.2 mln tonnes for the first quarter of fiscal 2010. MOS' realized DAP price, FOB plant, for the first quarter of FY10 is estimated to be $255-295 per tonne. Mosaic is not providing financial guidance on potash sales volumes or MOP selling price until market conditions normalize.
4:38PM Genco Shipping & Trading has taken delivery of the Genco Commodus (GNK) 23.32 -1.04 : Co announces that it has taken delivery of the Genco Commodus, a 170,500 dwt Capesize newbuilding. The Genco Commodus is the seventh vessel to be delivered to the Company under Genco's previously announced agreement on July 18, 2007 to acquire nine Capesize vessels from companies within the Metrostar Management Corporation group.
4:37PM Mastech announces that Thomas B. Moran has been appointed as President and Chief Executive Officer and Director (MHH) 3.10 +0.20 :
4:36PM Equifax reports EPS in-line, revs in-line; guides Q3 EPS below consensus (EFX) 26.80 +0.30 : Reports Q2 (Jun) earnings of $0.57 per share, in-line with the First Call consensus of $0.57; revenues fell 9.3% year/year to $455.4 mln vs the $452.8 mln consensus. Co issues downside guidance for Q3, sees EPS of $0.52-0.57 vs. $0.59 consensus.
4:35PM Cohen & Steers reports Q2 results, beats on revs (CNS) 16.38 +0.57 : Reports Q2 (Jun) loss of $0.15 per share, including an after-tax expense of approximately $0.30 per share due to other-than-temporary impairment charges recorded on available-for-sale securities. $0.18 worse than the First Call consensus of $0.03; revenues fell 51.5% year/year to $26.4 mln vs the $25.1 mln consensus. Co says, "Our strategy to grow our asset gathering capabilities despite the economic challenges we are facing is beginning to pay off. We recorded significant net inflows into both our open-end mutual funds and our institutional separate account offerings. In addition, our institutional pipeline has never been more promising."
4:33PM Cymer beats by $0.07, beats on revs; guides Q3 revs above consensus (CYMI) 31.49 +0.50 : Reports Q2 (Jun) earnings of $0.02 per share, $0.07 better than the First Call consensus of ($0.05); revenues fell 49.6% year/year to $62.4 mln vs the $57.1 mln consensus. Co issues upside guidance for Q3, sees Q3 revs growth of 15% q/q (~$71 mln) vs. $66.72 mln consensus. Expects gross margins in the range of 40-42%.
4:32PM Trimerisannounces worldwide net sales of Fuzeon for the second quarter of 2009 were $29.1 million, down 24% YoY, and up 5% from $27.8 mln in 1Q09 (TRMS) 2.01 -0.01 :
4:32PM Tessera Tech: Federal Circuit declines to enter immediate stay of ITC orders requested by respondents (TSRA) 27.56 +0.05 : Co announces that the Court of Appeals for the Federal Circuit has declined to enter the immediate stay requested by the respondents of the U.S. International Trade Commission's Limited Exclusion Order and Cease and Desist Orders in Investigation No. 337-TA-605 (Wireless ITC Action). Contrary to the respondents' requests, the I.T.C.'s L.E.O. and CDOs will remain in full effect while the Federal Circuit considers respondents' motion for a longer stay during the appeal. TSRA and the I.T.C. must submit by July 29, 2009 any oppositions to a stay during the appeal, and the Federal Circuit will thereafter issue its ruling. "The Federal Circuit's ruling, declining to issue an immediate stay, is an important step that we hope will help encourage the respondents to respect Tessera's rights," stated HenryNothhaft, president and CEO of Tessera. "We will vigorously oppose any longer term stay. In the interim, enforcement of ITC Orders will be carried out by the ITC and the U.S. Customs and Border Protection Service, and the Wireless ITC Action respondents, including Qualcomm, Freescale and Spansion, are not permitted to import or sell infringing products in the U.S., even under bond."
4:31PM Celera Genomics announces that it expects to report revenue for the second quarter of 2009 in the range of $40 to $42 mln vs $47.45 mln consensus (CRA) 7.74 -0.01 : Co announces it expects to report revenue for the second quarter of 2009 in the range of $40 to $42 mln vs $47.45 mln consensus. The co reported revenue of $42.8 mln in the second quarter of 2008. Second quarter 2009 revenues relative to the prior year quarter are expected to show a reduction for the co's Lab Services business, conducted by Berkeley HeartLab (BHL), mid-single digit percentage growth for the Products business, and a decline in licensing revenue in the Corporate segment. Lab Services revenues were adversely affected by lower than anticipated sample volume due to broad economic pressures, lost business as a result of the co's efforts to collect aged receivables, and the denial of reimbursement on a number of legacy BHL tests by certain payors in some regions. Overall, reimbursement rates, reflecting the impact of denied tests and historical collection activities, declined from both the second quarter of 2008 and the first quarter of 2009. The reduction in Corporate segment revenue in the second quarter of 2009 compared to the prior year period was due to the completion of payments by one licensee, which was anticipated, as well as reduced royalty revenue received from another licensee. Celera also announced it is implementing an immediate restructuring program, which includes the elimination of approx 80 full-time positions nationally, or 13% of the workforce. This includes a reduction and redeployment of resources at BHL, which is expected to provide a more efficient disease management model focused on web and telephone support. The co expects to incur a charge in connection with the restructuring in the third quarter of 2009.
4:27PM BancorpSouth beats by $0.11 (BXS) 19.81 +0.09 : Reports Q2 (Jun) earnings of $0.41 per share, $0.11 better than the First Call consensus of $0.30. Non-performing loans and leases increased to $97.7 mln, or 1.00 percent of net loans and leases, at June 30, 2009 from $46.0 mln, or 0.49 percent of net loans and leases, at June 30, 2008 and from $73.8 mln, or 0.76 percent of net loans and leases, at March 31, 2009. The allowance for credit losses increased to 1.42 percent of net loans and leases at June 30, 2009 compared with 1.30 percent at June 30, 2008 and 1.39 percent at March 31, 2009.
4:26PM Herley Industries concludes strategic alternatives review to discuss conclusions with investors at a July 22, 2009 (HRLY) 10.56 +0.17 : Co announced changes to its top management leadership including Myron Levy replaced as Chairman and CEO, David Lieberman named Chairman of The Board and Richard Poirier named Chief Executive Officer and President. Co is also implementing certain actions which should significantly reduce its general and administrative expenses. The position of Chief Operating Officer, previously held by Jeffrey L. Markel, has been eliminated and he will be leaving the Company; the Company's separate executive offices are being consolidated with the Lancaster operating facility and the executive compensation to key executives has been reduced in comparison to historical compensation.
4:25PM Citrix Systems beats by $0.01, beats on revs; reaffirms FY09 rev and operating margin outlook (CTXS) 34.70 -0.17 : Reports Q2 (Jun) earnings of $0.39 per share, ex-items, $0.01 better than the First Call consensus of $0.38; revenues rose 0.3% year/year to $393 mln vs the $386.7 mln consensus. Non-GAAP operating margin was 22% for the quarter. Q3 net revenue is expected to be flat compared to the third quarter of 2008 (3Q08 revs were $399 mln vs the $398 mln 3Q09 consensus); and non-GAAP operating margin is expected to increase 100 bps compared to the second quarter 2009. Co reaffirms FY10 rev and operating margin outlook; expects net revenue to be flat as compared to 2008 (FY08 revs were $1.58 bln vs the $1.58 bln FY09 consensus); and non-GAAP operating margin is expected to increase by as much as 100 basis points compared to non-GAAP operating margin from the prior year. Co says, "I'm pleased with our second quarter results. We are still in a tough economic climate, especially in the EMEA market, but our customers are embracing IT as an on-demand service, confirming our strategy around desktop virtualization, the next generation datacenter and SaaS."
4:25PM eBay beats by $0.01, beats on revs; guides Q3 EPS in-line, revs above consensus (EBAY) 19.45 +0.52 : Reports Q2 (Jun) earnings of $0.37 per share, $0.01 better than the First Call consensus of $0.36; revenues fell 4.5% year/year to $2.1 bln vs the $1.99 bln consensus. Co issues mixed guidance for Q3, sees EPS of $0.34-0.36 vs. $0.35 consensus; sees Q3 revs of $2.05-2.15 bln vs. $2 bln consensus. The company's cash and cash equivalents totaled $2.57 billion at June 30, 2009, compared to $3.19 billion at December 31, 2008. The acquisition of Gmarket for $1.21 billion was completed on June 15, 2009. Skype contributed $170.0 million in revenue for the quarter, representing 25% year-over-year growth. Skype added 37.3 million registered users during the quarter and ended the period with more than 480.5 million registered users, Net total payment volume (TPV) for the quarter was $16.71 billion, an increase of 12%. Gross Merchandise Volume rose 2% sequentially to $11.1 bln and Total Users rose to 88.4 mln from 88.3 mln.
4:24PM Monarch Casino & Resort beats by $0.05, beats on revs (MCRI) 8.85 +0.05 : Reports Q2 (Jun) earnings of $0.11 per share, $0.05 better than the First Call consensus of $0.06; revenues fell 2.3% year/year to $34.5 mln vs the $33.2 mln consensus. "Despite the disappointing decline in net revenue, we are pleased with the reduction in expenses we achieved. With the implementation of numerous cost reduction programs, and the completion of our expansion and skybridge capital projects, we were able to drive selling, general and administrative expenses down throughout the Company, which allowed us to achieve an EBITDA level consistent with that of the prior year's second quarter and for that we are pleased."
4:20PM Cohu reports Q2 net loss per share of ($0.06), beats on revs (COHU) 10.07 +0.01 : Reports Q2 (Jun) loss of $0.06 per share, ex-items, may not compare to single analyst estimate of ($0.22); revenues fell 25.9% year/year to $38.4 mln vs the $31.5 mln estimate.
4:20PM E*TRADE beats by $0.09 (ETFC) 1.36 +0.07 : Reports Q2 (Jun) loss of $0.22 per share, $0.09 better than the First Call consensus of ($0.31). Co reports they continued to make progress during the second quarter in reducing balance sheet risk as its loan portfolio continued its run-off, shrinking by approx $1.3 bln from last quarter, of which approx $900 mln was related to prepayments or scheduled principal reductions. To accommodate this planned long-term reduction in assets, the Company is also similarly reducing its liabilities. As a result, total customer cash and deposits were reduced by $700 mln to $33.7 bln. This was composed of a $1 bln increase in brokerage cash, offset by a $1.7 bln reduction in CSA and other bank deposits. Margin receivables increased from $2.4 bln to $3.1 bln. Second quarter provision for loan losses decreased $49 mln from the prior quarter to $405 mln. Total allowance for loan losses essentially was flat at $1.2 bln, or five percent of gross loans receivable. Total net charge-offs in the quarter were $386 mln, an increase of $53 mln from the prior quarter.
4:19PM IntercontinentalExchange announces October launch of buy-side solution for CDS clearing (ICE) 89.71 -1.03 : Co announced that it has developed a solution that provides segregation of customer funds and positions in credit default swap (CDS) clearing. The solution is expected to be introduced in October 2009, subject to regulatory approval.
4:19PM Covanta beats by $0.01, misses on revs; reaffirms FY09 EPS guidance (CVA) 17.91 +0.04 : Reports Q2 (Jun) earnings of $0.21 per share, $0.01 better than the First Call consensus of $0.20; revenues fell 11.2% year/year to $375.8 mln vs the $390.6 mln consensus. Co reaffirms guidance for FY09, sees EPS of $0.65-0.80 vs. $0.71 consensus. "We are reaffirming our full year guidance on all key metrics, while noting that we expect to be on the low end of the ranges in light of the current economic conditions and depressed natural gas prices. [Operating Cash Flow in the range of $325 million to $375 million; and Adjusted EBITDA of $500 million to $540 million]"
4:18PM Heritage Oaks Bancorp elects Ron Oliveira as Chief Operating Officer/Chief Credit Officer (HEOP) 6.10 +0.20 :
4:18PM Quidel beats by $0.03, beats on revs (QDEL) 15.29 +0.40 : Reports Q2 (Jun) earnings of $0.02 per share, $0.03 better than the First Call consensus of ($0.01); revenues rose 90.7% year/year to $24.6 mln vs the $22.5 mln consensus. Included in the second quarter of 2009 earnings per diluted share is a restructuring charge related to idle space in the Santa Clara facility of $1.1 million or $0.02 per share. "Our second quarter results benefited from the increased non-seasonal demand for QuickVue A+B flu tests... During the quarter, we sold flu tests to new international markets and saw a decline in flu inventory levels in our domestic distribution channel. Sales of our strep and pregnancy product lines in the second quarter were comparatively down as distributor inventory levels continued to adjust downward and are now at two and one half year lows." Cash and cash equivalents as of June 30, 2009 were $49.4 million, compared to $57.9 million as of December 31, 2008. Year-to-date, Quidel repurchased approximately 2.1 million shares of its common stock for $18.9 million under the Company's previously announced share repurchase program. A total of $8.1 million remains available for stock repurchase under the current Board authorized program.
4:18PM Mellanox Tech beats by $0.02, beats on revs (MLNX) 14.17 +0.28 : Reports Q2 (Jun) earnings of $0.13 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.11; revenues fell 10.3% year/year to $25.3 mln vs the $24.4 mln consensus. Co says Q2 results were highlighted by increased OEM and end-user adoption of the co's 40Gb/s InfiniBand connectivity solutions, which grew to 56% of revenue, up from 34% in Q1. Co says in Q2 it gained 10GigE design wins at two tier-1 server OEMs.
4:17PM eBay seeing some downward action following earnings, down about a point now (EBAY) 19.45 +0.52 :
4:17PM Occidental Petro announces 'significant' California oil and gas discovery (OXY) 69.99 -0.23 : Co announces that it has made a significant discovery of oil and gas reserves in Kern County, California. The co believes there are between 150 million and 250 million gross barrels of oil equivalent reserves within the outlined area where Oxy has drilled six wells to date to delineate the discovery. The multi-pay zone discovery area, whose areal geological extent is still being defined, has both conventional and unconventional pay zones. The bulk of the discovery's producing zones are conventional oil and gas bearing formations. "It is probable that there are additional reserves outside the defined area, and it is possible that structures of this type exist elsewhere in Oxy's 1.1 million net acre position in California. We plan to drill wells to exploit these opportunities over the next 5 to 10 years,"
4:17PM TrueBlue beats by $0.14, beats on revs; guides Q3 EPS above consensus, revs above consensus; files $100 mln shelf (TBI) 9.01 0.00 : Reports Q2 (Jun) earnings of $0.09 per share, $0.14 better than the First Call consensus of ($0.05); revenues fell 33.2% year/year to $247.1 mln vs the $227.5 mln consensus. Co issues upside guidance for Q3, sees EPS of $0.10-0.15 vs. $0.04 consensus; sees Q3 revs of $267-277 mln vs. $249.41 mln consensus. The company filed a $100 million Shelf Registration Statement today with the Securities and Exchange Commission
4:17PM MTS Systems beats by $0.01, reports revs in-line; reaffirms FY09 outlook (MTSC) 22.08 -0.02 : Reports Q3 (Jun) earnings of $0.24 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.23; revenues fell 22.3% year/year to $90.8 mln vs the $90.3 mln consensus. Lower income from operations and unfavorable net interest, primarily resulting from reduced interest rates in Europe, negatively impacted earnings from continuing operations by $0.42 and $0.06, respectively. On a sequential basis, orders increased 17% compared to second quarter 2009, driven by the Test organic business. Backlog decreased 7 percent to $163 mln. The company reaffirmed the fiscal 2009 full-year revenue and EPS outlook provided last quarter which stated that, without a significant improvement in orders in the second half of the year, full-year revenue would be down approximately 10-15% (vs -13.5% consensus) and EPS would decline approximately 50% (consensus -48.6%). The outlook excludes Q4 cost-reduction charges.
4:16PM LaSalle Hotel beats by $0.12, beats on revs (LHO) 12.68 -0.05 : Reports Q2 (Jun) funds from operations of $0.70 per share, $0.12 better than the First Call consensus of $0.58; revenues fell 13.2% year/year to $174.4 mln vs the $169.4 mln consensus. "During the second quarter, the U.S. lodging industry continued to be challenged by a very difficult economic environment, though we are seeing signs of stabilization in both demand and RevPAR declines on a year over year basis," said Jon Bortz, Chairman and Chief Executive Officer of LaSalle Hotel Properties. "In light of the substantial reductions in revenues so far this year, our team and our operators continue to develop and implement cost saving measures. These efforts have significantly mitigated EBITDA margin erosion for the portfolio during the second quarter and the year to date."... Due to uncertain general economic conditions and the lack of visibility related to the economy, travel industry and our business, the Company remains unable to provide a full outlook for 2009 at this time.
4:16PM EV Energy Partners announces additional Austin Chalk add-on acquisition (EVEP) 20.05 0.28 : Co announces it, along with certain institutional partnerships managed by EnerVest, has signed an agreement to acquire oil and natural gas properties in the Austin Chalk from an undisclosed seller. EVEP will acquire a 15.15% interest in these assets for $5.3 mln. The acquisition is expected to close by September 1, 2009, and is subject to customary closing conditions and purchase price adjustments. The acquisition is comprised of 67 wells producing primarily from the Austin Chalk formation in Fayette, Grimes, Lee, Washington and Burleson counties in Central Texas.
4:16PM Amazon.com to acquire Zappos.com (AMZN) 88.79 -0.22 : Co announces that it has reached an agreement to acquire Zappos.com, Inc. an in online apparel and footwear sales that strives to provide shoppers with the best possible service and selection. Under the terms of the agreement, Amazon will acquire all of the outstanding shares and assume all outstanding options and warrants of Zappos in exchange for approximately 10 million shares of Amazon common stock, equal to approximately $807 million based on the average closing price for the 45 trading days ending July 17, 2009. In addition, Amazon will provide Zappos employees with $40 million in cash and restricted stock units.
4:14PM Chipotle Mexican Grill beats by $0.22, reports revs in-line (CMG) 88.78 +0.08 : Reports Q2 (Jun) earnings of $1.10 per share, $0.22 better than the First Call consensus of $0.88; revenues rose 14.1% year/year to $388.8 mln vs the $391.2 mln consensus. Co expects full year comparable restaurant sales increases in the low single digits, 120-130 new restaurant openings, an effective tax rate of approximately 38.4%, and diluted weighted average common shares outstanding of approximately 32.2 mln.
4:12PM Intuitive Surgical beats on top and bottom line (ISRG) 169.79 +2.38 : Reports Q2 (Jun) earnings of $1.62 per share, $0.37 better than the First Call consensus of $1.25; revenues rose 18.9% year/year to $260.6 mln vs the $230 mln consensus. Co sold 76 da Vinci Surgical Systems during Q2 (street expectations were for 69). Q2 results include $13.8 mln of revenue recognized in Q2, related to revenue deferred in the first quarter, which increased Q2 net income by approximately $8.3 mln, or $0.22 per diluted share. $13.8 mln of revenue that was originally deferred in the first quarter of 2009 in association with discounted offers made to certain customers to upgrade da Vinci S Surgical Systems to our recently introduced da Vinci Si Surgical Systems. The Company had deferred a total of $20.1 million of revenue in the first quarter of 2009 and expects to recognize the remaining $6.3 million in the second half of 2009. The growth in instruments and accessories revenue was primarily driven by growth in da Vinci surgical procedures of approximately 52%, partially offset by lower instruments and accessories revenue per procedure. "We are pleased by our continued strong procedure growth and the positive market response to our new da Vinci Si system."
4:11PM Jarden beats by $0.05, beats on revs (JAH) 21.84 +0.09 : Reports Q2 (Jun) earnings of $0.60 per share, $0.05 better than the First Call consensus of $0.55; revenues fell 6.6% year/year to $1.27 bln vs the $1.25 bln consensus.
4:11PM Vascular Solutions beats by $0.02, beats on revs; guides Q3 EPS in-line, revs in-line (VASC) 8.36 +0.21 : Reports Q2 (Jun) earnings of $0.09 per share, $0.02 better than the First Call consensus of $0.07; revenues rose 13.2% year/year to $17.2 mln vs the $16.8 mln consensus. Co issues in-line guidance for Q3, sees EPS of $0.08-0.09 vs. $0.08 consensus; sees Q3 revs of $17.1-17.5 mln vs. $17.03 mln consensus.
4:11PM NVE Corp beats by $0.06, beats on revs (NVEC) 48.78 +0.73 : Reports Q1 (Jun) earnings of $0.61 per share, $0.06 better than the single estimate of $0.55; revenues rose 40.5% year/year to $6.8 mln vs the $6.2 mln estimate. Co says the revenue increase was due to a 22% increase in product sales and a 311% increase in contract research and development revenue.
4:10PM F5 Networks beats by $0.03, beats on revs; guides Q4 EPS above consensus, revs above consensus (FFIV) 35.83 -1.24 : Reports Q3 (Jun) earnings of $0.40 per share, $0.03 better than the First Call consensus of $0.37. Co issues upside guidance for Q4, sees EPS of $0.40-$0.42 vs. $0.39 consensus; sees Q4 revs of $160-164 mln vs. $158.63 mln consensus. Co states, "While it is still too early to say that the worst is behind us, customer buying patterns did appear to stabilize during the third quarter. As a result, we were able to grow revenue sequentially and exceed our revenue target. Coupled with better top-line performance, modest gross margin improvement and ongoing expense controls further improved our non-GAAP operating margin and enabled us to exceed both our GAAP and non-GAAP earnings targets as well."
4:10PM SanDisk beats by $0.52, beats on revs (SNDK) 18.99 +0.76 : Reports Q2 (Jun) earnings of $0.36 per share, excluding non-recurring items, $0.52 better than the First Call consensus of ($0.16); revenues fell 10.4% year/year to $731 mln vs the $709.7 mln consensus. "We are very pleased with our return to profitability in the second quarter, driven by increased pricing, higher royalty revenue, and strong execution. Our decisive and timely restructuring actions are delivering the intended results... In the second quarter we renewed our patent cross license agreement with Samsung Electronics, providing market certainty. We remain cautiously optimistic about the second half of 2009."
4:10PM PSS World Med reports EPS in-line, beats on revs; reaffirms FY10 EPS guidance (PSSI) 18.92 +0.32 : Reports Q1 (Jun) earnings of $0.21 per share, excluding accounting for convertible debt instruments that may be settled in cash upon conversion, in-line with the First Call consensus of $0.21; revenues rose 4.5% year/year to $493.6 mln vs the $486.8 mln consensus. Co reaffirms guidance for FY10, sees EPS of $1.05-1.09 vs. $1.15 consensus. Co says, "Execution of efficiency projects, customer solutions programs, and market share expansion is ahead of schedule. Customers are embracing our solutions and employees are now leading efficiency innovation. Overall revenue growth in the first quarter slightly exceeded expectations, reflecting a very positive market response to our business strategies. Business simplification, our 'lean way of life', and the cost containment programs implemented earlier this year contributed to significant growth in operating profit in each business. The solid start to our fiscal year, along with the positive impact resulting from the sale of securities and swine flu-related product sales, required an increase in accruals for long-term incentive compensation in the quarter. Growth in profitability, in addition to our ongoing focus on working capital turns, resulted in record operating cash flow and a nearly eight percentage-point increase in quarterly return on committed capital, to 28.4%. As a result of the adoption of the new accounting for convertible debt securities, our GAAP EPS goal for fiscal year 2010, which we announced at our investor day, is $1.05-$1.09 per diluted share. This goal includes approximately $0.08 of non-cash interest expense. Fiscal year 2009 results will be restated to $0.85 per diluted share to reflect the adoption of this accounting change."
4:10PM Fair Isaac beats by $0.09, misses on revs (FIC) 15.81 +0.38 : Reports Q3 (Jun) earnings of $0.45 per share, excluding non-recurring items, $0.09 better than the First Call consensus of $0.36; revenues fell 14.9% year/year to $156 mln vs the $159.3 mln consensus. In light of the continuing uncertainty in the global financial markets and the continuing lack of visibility into our clients' spending intentions, the company is not providing revenue or earnings per share guidance. However, it is updating its fiscal 2009 annual operating expense guidance from the $525.0 million previously provided to $505.0 million in Operating Expenses before Restructuring Activities, which reflects a reduction in expenses from both our re-engineering initiatives and from the sale of our telecom assets. The Operating Expenses before Restructuring Activities guidance of $505.0 million will equal the Total Operating Expenses reported on the Condensed Consolidated Statements of Income less the Restructuring and Loss on Sale of Product Line Assets incurred year-to-date and any similar charges recorded during the fourth quarter.
4:09PM TriQuint Semi beats by $0.05, beats on revs; guides Q3 revs above consensus (TQNT) 6.54 +0.38 : Reports Q2 (Jun) earnings of $0.08 per share, excluding non-recurring items, $0.05 better than the First Call consensus of $0.03; revenues rose 33.2% year/year and 42% sequentially to $169.1 mln vs the $146.0 mln consensus. Co issues upside guidance for Q3, sees EPS of $0.08-0.10, excluding non-recurring items, vs. $0.08 consensus; sees Q3 revs of $170-180 mln vs. $159.3 mln consensus.
4:08PM Conceptus beats by $0.04, beats on revs; guides Q3 EPS below consensus, revs in-line; guides FY09 EPS in-line, revs above consensus (CPTS) 17.50 +0.06 : Reports Q2 (Jun) loss of $0.02 per share, $0.04 better than the First Call consensus of ($0.06); revenues rose 28.4% year/year to $33 mln vs the $31.3 mln consensus. Co issues mixed guidance for Q3, sees EPS of 0.06-0.07 vs. $0.14 consensus; sees Q3 revs of $32-33.5 mln vs. $32.72 mln consensus. Co issues mixed guidance for FY09, sees EPS of $0.13-0.22 vs. $0.19 consensus; sees FY09 revs of $130-133 mln vs. $127.10 mln consensus.
4:08PM VMware spiking higher on earnings, now up ~$3.50 (10%) (VMW) 31.25 $+0.28 : It has already broken the June highs at $33... last trade at $34.65
4:08PM Intersil misses by $0.07, reports revs in-line; guides Q3 revs above consensus (ISIL) 14.28 +0.46 : Reports Q2 (Jun) earnings of $0.08 per share, $0.07 worse than the First Call consensus of $0.15; revenues fell 31.9% year/year to $147.3 mln vs the $146.7 mln consensus. Gross margin was 54.2%, compared with gross margin of 56.7% in the same quarter last year, and 55.1% in the first quarter of 2009. Co issues guidance for Q3, sees EPS of $0.08-0.11, may not be comparable to $0.16 consensus; sees Q3 revs of $156-162 mln vs. $154.01 mln consensus. Gross margin is expected to be up slightly from second quarter
4:08PM Human Genome misses by $0.14, misses on revs (HGSI) 14.05 +0.21 : Reports Q2 (Jun) loss of $0.48 per share, $0.14 worse than the First Call consensus of ($0.34); revenues rose 130.2% year/year to $26.7 mln vs the $30.8 mln consensus. The lower net loss for the quarter was due primarily to revenue associated with the completion of the raxibacumab delivery and revenue from manufacturing and development services. HGS has previously expensed substantially all of the research, development and manufacturing costs related to meeting the terms of the raxibacumab contract. Revenues included $8.9 million recognized upon completion of delivery of raxibacumab to the U.S. Strategic National Stockpile, $8.9 million recognized from the ZALBIN agreement with Novartis (NVS), $7.2 million recognized from manufacturing and development services, and $1.0 million recognized from the BENLYSTA agreement with GSK.
4:08PM Alliance Data misses by $0.07, misses on revs; reaffirms FY09 EPS guidance (ADS) 47.60 -0.35 : Reports Q2 (Jun) earnings of $0.95 per share, $0.07 worse than the First Call consensus of $1.02. Co reaffirms guidance for FY09, sees EPS of $5.15 vs. $5.00 consensus.
4:07PM C.R. Bard beats by $0.02, misses on revs (BCR) 72.87 -1.73 : Reports Q2 (Jun) earnings of $1.23 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $1.21; revenues rose 1.2% year/year to $624.6 mln vs the $633.8 mln consensus.
4:07PM Sandisk: Initial response to earnings is a quick spike lower... now trading down ~$1.50 (SNDK) 18.99 +0.76 : $16.50 is a big level from June highs
4:06PM Omniture beats by $0.01, reports revs in-line (OMTR) 13.17 -0.03 : Reports Q2 (Jun) earnings of $0.13 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.12; revenues rose 22.3% year/year to $87.6 mln vs the $88.5 mln consensus.
4:05PM NETGEAR misses by $0.01, beats on revs; guides Q3 revs in-line, announces restatement (NTGR) 16.53 +0.68 : Reports Q2 (Jun) loss of $0.02 per share, $0.01 worse than the First Call consensus of ($0.01); revenues fell 29.2% year/year to $144.7 mln vs the $141.8 mln consensus. Co issues in-line guidance for Q3, sees Q3 revs of $150-160 mln vs. $151.89 mln consensus; sees non-GAAP operating margins of 5-7%. Non-GAAP operating margin was 3.7% in the second quarter of 2009, compared to 11.5% in the second quarter of 2008, and 3.7% in the first quarter of 2009. We are also pleased to announce that our current year-to-date operating expense cost reductions is approximately $6.6 million, as compared to our total 2009 operating expense cost reduction target of $10.0 million, which was based on our annualized fourth quarter 2008 run rate." NETGEAR also announced today that the Company will restate its financial statements for the first quarter ended March 29, 2009, due to a misapplication of FASB Interpretation No. 18, Accounting for Income Taxes in Interim Periods. As a result, the Audit Committee of the Board of Directors today has concluded that investors should no longer rely on the Company's previously filed financial statements for the quarter ended March 29, 2009. Consequently, for the quarter ended March 29, 2009, the Company expects net income and earnings per share computed in accordance with GAAP to be negatively impacted by $3.8 million and $0.11 per share, respectively, and non-GAAP net income and earnings per share to decrease by $431,000 and $0.01 per share, respectively. "With inventory at healthy levels and currency exchange rates becoming more favorable, we expect improvement in both gross and operating margin in the third quarter of 2009."
4:05PM Amdocs beats by $0.05, beats on revs; guides SepQ revs above consensus (DOX) 23.06 +0.11 : Reports Q3 (Jun) earnings of $0.53 per share, excluding non-recurring items, $0.05 better than the First Call consensus of $0.48; revenues fell 15.9% year/year to $690.3 mln vs the $678.9 mln consensus. For Q4 (Sep), co sees EPS of $0.47-0.51, excluding non-recurring items, vs. $0.48 consensus; sees Q4 revs of $670-690 mln vs. $667.7 mln consensus.
4:05PM Chipotle Mexican Grill down ~$5.00 after earnings (CMG) 88.78 +0.08 : $85 is some support, but $80 is a much bigger level. Last trade at $84.00
4:05PM Qualcomm beats by $0.02, reports revs in-line; guides Q4 revs in-line (QCOM) 48.45 +0.47 : Reports Q3 (Jun) earnings of $0.54 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.52; revenues fell 0.6% year/year to $2.74 bln vs the $2.73 bln consensus. Co issues in-line guidance for Q4, sees Q4 revs of $2.55-2.75 bln vs. $2.71 bln consensus. Co said, "Despite the global economic uncertainty, we anticipate another strong quarter for our chipset shipments in the fourth fiscal quarter. We believe the CDMA inventory channel has largely stabilized, yet remains near historically low levels consistent with our prior forecast."
4:04PM Tractor Supply beats by $0.01, reports revs in-line; guides FY09 EPS in-line, revs in-line (TSCO) 48.37 +1.26 : Reports Q2 (Jun) earnings of $1.50 per share, $0.01 better than the First Call consensus of $1.49; revenues rose 5.4% year/year to $946.5 mln vs the $945.1 mln consensus. Co issues in-line guidance for FY09, sees EPS of $2.78-2.92 vs. $2.87 consensus; sees FY09 revs of $3.10-3.25 bln vs. $3.2 bln consensus.
4:04PM LSI Logic announces agreement to acquire ONStor (LSI) 5.40 -0.04 : Co announces that it has signed a definitive agreement to acquire ONStor, Inc. for approximately $25 million in cash inclusive of assumed debt and other net liabilities. LSI expects the acquisition to be roughly neutral to non-GAAP earnings per share in 2009. The company expects to provide further details on July 29 when it reports second quarter results.
4:04PM Knight Transportation reports EPS in-line, beats on revs (KNX) 16.61 +0.29 : Reports Q2 (Jun) earnings of $0.15 per share, in-line with the First Call consensus of $0.15; revenues fell 21.3% year/year to $162.1 mln vs the $159.6 mln consensus. "Lower diesel fuel prices combined with ongoing success of several internal initiatives to improve fuel efficiency helped profitability. These initiatives include improving fuel efficiency, more disciplined fuel purchasing and fuel stop routing, and fewer out-of-route miles."
4:03PM Pacific Sunwear lowers Q2 loss per share estimate to ($0.24)-($0.22) vs prior guidance of ($0.17)-($0.11) and vs consensus of ($0.13) (PSUN) 3.40 +0.05 : Co lowers Q2 guidance, sees loss per share of ($0.24)-($0.22) vs. prior guidance of ($0.17)-($0.11) and vs. First Call consensus of ($0.13). Same-store sales for Q2 are projected to decrease by approx 24% vs original expectations of negative 17% to 20%. Additionally, the company expects a lower effective income tax rate and higher store asset impairment charges for the quarter. The company estimates its fiscal 2009 effective income tax rate will be approx 38%, which will result in an income tax rate for Q2 of approximately 35% vs previous guidance of 43%. The decrease in the tax rate will negatively impact second quarter earnings results by approximately $0.03 per share. The company expects to incur approximately $5.5 mln in non-cash, store asset impairment charges during Q2. These impairment charges are approximately $2.7 mln, or $0.02 per share, higher than previously anticipated.
4:03PM Equinix beats by $0.11, beats on revs; guides Q3 revs above consensus; guides FY09 revs in-line (EQIX) 77.59 0.96 : Reports Q2 (Jun) earnings of $0.44 per share, $0.11 better than the First Call consensus of $0.33; revenues rose 7.0% year/year to $213.2 mln vs the $208.8 mln consensus. Co issues upside guidance for Q3, sees Q3 revs of $221-225 mln vs. $219.91 mln consensus. Q3 Capital expenditures for the third quarter of 2009 are expected to be $140.0 to $150.0 million, comprised of approximately $15.0 million of ongoing capital expenditures and $125.0 to $135.0 million of expansion capital expenditures. Co issues in-line guidance for FY09, sees FY09 revs of $860-875 mln vs. $861.16 mln consensus.
4:02PM Qualcomm getting hit on earnings, now down ~$1.50 (QCOM) 48.45 +0.47 : Support at $46.50-$46.75 from the June highs
4:02PM Orexigen Therapeutics announces proposed 9,000,000 shares public offering of common stock (OREX) 8.27 +0.75 :
4:02PM Affymetrix beats by $0.07, beats on revs (AFFX) 5.88 -0.16 : Reports Q2 (Jun) loss of $0.12 per share, excluding a pretax restructuring charge of $0.2 million, or $0.01 per diluted share, and a $17.4 million, or $0.25 per diluted share, gain on debt repurchase from the convertible notes buyback of $69.1 million of aggregate principal amount, $0.07 better than the First Call consensus of ($0.19); revenues fell 6.1% year/year to $81.6 mln vs the $77.1 mln consensus. "Despite challenging macro-economic conditions, we achieved our financial and operational goals through the first half of 2009," stated Kevin King, CEO of Affymetrix. "The combination of new product introductions, recent acquisitions, and revenue from partners is expanding our business into the larger markets for validation and routine testing."
4:02PM Encore Wire misses by $0.22, misses on revs (WIRE) 22.07 +0.18 : Reports Q2 (Jun) earnings of $0.03 per share, $0.22 worse than the First Call consensus of $0.25; revenues fell 50.6% year/year to $159.4 mln vs the $178.5 mln consensus.
4:02PM Cirrus Logic misses by $0.01, misses on revs; guides Q2 revs above consensus (CRUS) 4.63 +0.09 : Reports Q1 (Jun) loss of $0.01 per share, excluding non-recurring items, $0.01 worse than the First Call consensus of ($0.00); revenues fell 14.8% year/year to $37.5 mln vs the $38.1 mln consensus. Co issues upside guidance for Q2, sees Q2 revs of $48-52 mln vs. $42.76 mln consensus. Co says, "Our portable product line continued to build momentum in Q1, shipping new devices into new applications such as media centric smart phones. In Q2, we expect to see accelerated revenue growth driven by new products for portable and home audio applications. We are proud that our first Power Factor Correction device and our new audio DSP are both already sampling with key customers and we expect these new platforms to live up to the standard set by our growing portable audio business."
4:02PM MicroFinancial reports Q2 EPS of $0.07 vs $0.13 a year ago; revs increased 15.4% YoY to $11.1 mln (no ests) (MFI) 3.50 +0.35 :
4:01PM Skechers USA beats by $0.05, misses on revs (SKX) 11.82 -0.08 : Reports Q2 (Jun) loss of $0.13 per share, $0.05 better than the First Call consensus of ($0.18); revenues fell 15.7% year/year to $299 mln vs the $306.5 mln consensus. "Our revenues continue to be negatively impacted by the weakness in the global economy, yet we have reacted in a strategic and aggressive manner to these challenges by continuing to focus on managing our inventory and expenses, and further strengthening our product offering and balance sheet. While we continued to experience margin pressure in the early part of the quarter, margins improved in June and we believe our inventory is now clean. In addition, our expenses are in line with our current business. Importantly, we are maintaining our position in the global footwear market and we currently expect to be profitable in the second half of the year... We believe our cash position of $257 million, which increased by $184 million during the second quarter in part due to the redemption of our auction rate securities, provides us ample liquidity to effectively operate in a difficult retail environment. With a new untapped credit facility of $250 million and a cash balance in excess of $5.50 per share, we believe we are in a great position to capitalize on opportunities as they arise and to further grow our business around the world."
4:01PM Hub Group beats by $0.01, misses on revs (HUBG) 18.34 -0.68 : Reports Q2 (Jun) earnings of $0.22 per share, $0.01 better than the First Call consensus of $0.21; revenues fell 26.1% year/year to $362.6 mln vs the $387.5 mln consensus.
3:50PM Earnings Calendar : Today after the close of the many companies scheduled to report, some of the bigger names include: EBAY, ISRG, MOS, QCOM, SNDK, STLD, and VMW. Tomorrow before the open of the many companies scheduled to report, some of the bigger names include: MMM, T, BMY, CME, GR, NUE, PM, POT, and UPS.
2:49PM CBOT Agriculture and Ethanol Closing Prices : December corn closed lower by 2.75 cents to $3.1975 per bushel, November soybeans closed higher by 3 cents to $9.08 per bushel, September wheat closed lower by 12.75 cents to $5.22 per bushel, September Ethanol closed lower by $0.014 to $1.491 per gallon
2:45PM Greif intends to offer up to $250 million aggregate principal amount of senior notes due 2019 (GEF) 50.23 -0.59 :
2:38PM NYMEX Energy Closing Prices : Sept crude ended lower by 25 cents to $63.56, Aug nat gas gained 8.8 cents to finish at $3.793, Aug RBOB gasoline closed up 2.45 cents to $1.6365 and Aug heating oil finished higher by 1.36 cents to $1.712.
2:30PM Barnes Group declares quarterly dividend of $0.08/share, down from prior dividend of $0.16/share (B) 13.05 +0.17 :
2:05PM Bankrate trading resumes (RATE) 28.38 +3.77 :
1:36PM Bankrate misses by $0.11, misses on revs (RATE) 28.37 +3.75 : Reports Q2 (Jun) earnings of $0.19 per share, excluding items, $0.11 worse than the First Call consensus of $0.30; revenues fell 22.9% year/year to $31 mln vs the $37.5 mln consensus. (stock is still halted following announcement that it agreed to be acquired)
1:33PM COMEX Metals Closing Prices : August gold ended higher by $6.80 to $953.70, Sept silver gained 23.7 cents to finish at $13.715 and Sept copper rallied for 7.45 cents to $2.5255.
1:31PM Bankrate agrees to be acquired by Apax Partners for $28.50/share in cash (RATE) 27.79 +3.00 : Co announces that it has entered into a definitive agreement to be acquired and taken private by funds advised by Apax Partners. Under the terms of the agreement, Apax will commence a tender offer to acquire all of the outstanding common stock of Bankrate, for $28.50 per share in cash, followed by a merger to acquire all remaining outstanding Bankrate shares at the same price paid in the tender offer. The offer price represents a premium of 15.8% over yesterday's closing stock price and 18.2% over the average closing price for the previous ten trading days. The transaction is valued at approximately $571 mln. Apax is providing 100% of the financing for the acquisition from its equity funds under management. Shareholders representing approximately 24% of Bankrate's outstanding shares have entered into support agreements with Apax in connection with the transaction. Bankrate's Board of Directors unanimously approved the transaction, which is subject to customary closing conditions, including minimum levels of participation in the tender offer and regulatory approvals. Under the terms of the merger agreement, Apax will commence the tender offer no later than Tuesday, July 28, 2009 (Stock is halted)
1:27PM CIT Group: S&PBulletin: CIT Group Rtgs unaffectd by announced recap plan (CIT) 0.86 -0.12 :
1:03PM Fuel-Tech announces receipt of a commercial FUEL CHEM order (FTEK) 8.98 -0.02 : Co announces receipt of a commercial FUEL CHEM order from an existing domestic electric utility customer. The FUEL CHEM program will be conducted on a medium-sized coal-fired boiler, with chemical injection scheduled to commence during the first quarter of 2010.
1:02PM Susquehanna Bank beats by $0.06 (SUSQ) 4.08 +0.12 : Reports Q2 (Jun) loss of $0.14 per share, $0.06 better than the First Call consensus of ($0.20). Susquehanna's second quarter 2009 earnings included a provision for loan losses of $50.0 mln, an increase of $15.0 mln from the first quarter of 2009. This increase was due primarily to a decline in loan quality as well as continued deterioration in general economic conditions. Second quarter results also included a FDIC special assessment of $6.2 mln, consolidation pre-tax charges of $2.9 mln and other than temporary impairment pre-tax charges of $0.9 mln. Net charge-offs as a percentage of average loans and leases for the second quarter of 2009 were 1.01% compared to 0.48% for the second quarter of 2008. Non-performing assets as a percentage of loans, leases and other real estate owned were 2.57% at June 30, 2009 compared to 0.99% at June 30, 2008.
12:57PM Energen beats by $0.19, beats on revs; reaffirms FY09 EPS guidance (EGN) 39.79 +0.23 : Reports Q2 (Jun) earnings of $0.76 per share, $0.19 better than the First Call consensus of $0.57; revenues fell 10.3% year/year to $306.2 mln vs the $296.6 mln consensus. Co reaffirms guidance for FY09, sees EPS of $3.10-3.50 vs. $3.28 consensus. This guidance assumes that commodity prices applicable to the company's unhedged volumes will, for the remainder of the year, average $6 per Mcf for natural gas, $50 per barrel for oil, and 65 cents per gallon for natural gas liquids; however, Energen's production is so substantially hedged that its earnings and cash flows are unlikely to be materially influenced by commodity price differences reflected by the current strip. (stock is halted)
12:33PM Park Electrochem declares quarterly dividend of $0.10/share, up from prior $0.08/share (PKE) 22.46 +0.37 :
12:02PM Goldman Sachs pays $1.1 bln to redeem TARP Warrants (GS) 159.21 -0.59 :
11:01AM Wells Fargo: Fitch downgrades Wells Fargo's IDR to 'AA-'; Outlook Stable (WFC) 23.91 -1.44 : Fitch Ratings has downgraded the long-term Issuer Default Ratings (IDRs) of Wells Fargo & Company (WFC) and subsidiaries to 'AA-' from 'AA'. Fitch has also removed WFC from Rating Watch Negative, where it was originally placed on May 15, 2009. The Rating Outlook is Stable. WFC faces continued significant pressure on asset quality in light of the extremely weak economic environment. The ratings also consider WFC's above average earnings capacity, derived primarily from its diverse community and mortgage banking activities, which has allowed WFC to provide for elevated loan losses and simultaneously build the reserve against future losses. Today, WFC reported another strong profit of $3.2 billion, despite a significant $700 million reserve build and the sizeable $565 million FDIC special assessment.
10:58AM Crude oil ticks to its best levels of pit trade around $65.30; now down 45 cents to $65.16 :
10:57AM Nat gas ticks to fresh highs at $3.85; currently higher by 11.7 cents to $3.822 :
10:34AM Sinovac Biotech initiates dosing in human clinical trial of Panflu for Pandemic Influenza A (H1N1) (SVA) 4.20 +0.09 :
10:31AM Crude oil ticks slightly lower following inventory data; now off $1.05 to $64.55 :
10:30AM Industrial Services expects Q2 EPS of $0.24 to $0.26 (no ests) (IDSA) 7.20 +0.30 : Co announces financial guidance for the second quarter of 2009. Based on actual results and projected trends, the co said second quarter earnings are expected to be in the range of $0.24 to $0.26 per share. Basic and diluted earnings for the second quarter of 2008 were $0.46 per share. Co says "... We completed our shredder installation in June, expanded our banking facility to take advantage of growth opportunities at our Alloys division and continued to develop our corporate capabilities... We look forward to taking advantage of our fully operational and integrated facilities as the year progresses,"
10:10AM Mercantile Bancorp elects Michael J. Foster as New Board Chairman (MBR) 4.55 +0.02 :
9:30AM Abbott Labs reports investigational urine NGAL biomarker shows promise to monitor cyclosporine toxicity in cardiac transplant patients (ABT) 45.05 +0.05 : Research presented indicates that monitoring cardiac transplant patients with the Urine NGAL assay on Abbott's ARCHITECT immunoassay analyzer may help clinicians to monitor cyclosporine-induced toxicity and adjust doses of cyclosporine drugs to prevent possible irreversible kidney damage. In a scientific poster presented, eleven heart transplant patients were treated with anti-rejection drug combinations and monitored with the Urine NGAL assay within twelve hours of administration. The study concluded that Urine NGAL monitoring may be able to assist in the detection of chronic cyclosporine-induced toxicity in the kidneys following heart transplant procedures.
9:27AM Integral Systems enters multi-year contract with Thales to provide network management system to the Norwegian and Netherlands Navies (ISYS) 8.75 : Integral Systems Europe, a wholly-owned subsidiary of ISYS, has been chosen to provide advanced network monitoring and management systems to the Norwegian Navy's fleet of NANSEN class frigates and Netherlands Navy NAVSAT class frigates.
9:24AM Fuqi Intl announces proposed public offering of 4.5 mln shares of common stock (FUQI) 23.53 :
9:17AM QuadraMed announces that National Institutes of Health Clinical Center selects AcuityPlus solution (QDHC) 6.52 : Co announces that the National Institutes of Health Clinical Center (NIH Clinical Center) selected QuadraMed AcuityPlus productivity, benchmarking and outcomes system to optimize its nursing resources enterprise-wide. NIH's 234-bed clinical research hospital purchased the AcuityPlus platform, which includes inpatient, ambulatory and mental health methodologies, outcomes module, and import and export features, to help ensure interoperability with existing A.D.T. and staff scheduling systems.
9:17AM Toro authorizes repurchase of additional 5 million shares of common stock (TTC) 35.10 :
9:12AM Genzyme reports EPS in-line, misses on revs; guides FY09 EPS below consensus, revs in-line (GENZ) 55.91 : Reports Q2 (Jun) earnings of $0.85 per share, in-line with the First Call consensus of $0.85; revenues rose 5.0% year/year to $1.23 bln vs the $1.26 bln consensus. Co issues mixed guidance for FY09, lowers EPS guidance to $2.35-2.90 vs. $3.31 consensus; lowers FY09 rev guidance to $4.6-5.0 bln vs. $4.96 bln consensus. Q2 drug sales: Cerezyme $298.1 mln vs. $311 mln First Call Consensus; Renagel $175.4 mln vs. $173 mln First Call Consensus; Fabrazyme $134.4 mln vs. $133 mln First Call Consensus; Myozyme $79.3 mln vs. $78 mln First Call Consensus; Synvisc $82.4 mln vs. $71 mln First Call Consensus. Genzyme last month announced that it had detected a virus that impairs cell growth in a bioreactor used for Cerezyme production at its Allston facility. Genzyme has now completed the sanitization and is on-track to resume production at Allston this month. When manufacturing resumes, Allston will be fully dedicated to the production of Cerezyme and Fabrazyme. All Myozyme/Lumizyme production will occur at the company's 4000 L scale facility in Belgium. Genzyme has already taken the initial steps in the cell culture process necessary for the re-start of production of Cerezyme and Fabrazyme at Allston. The first release of both products is expected before the end of this year. Cerezyme and Fabrazyme inventories are not sufficient to avoid shortages during the period of suspended production and recovery.
9:07AM Cullen/Frost Bnkrs misses by $0.10 (CFR) 47.32 : Reports Q2 (Jun) earnings of $0.63 per share, $0.10 worse than the First Call consensus of $0.73. For the second quarter of 2009, the provision for possible loan losses was $16.6 mln, compared to net charge-offs of $8.3 mln. The loan loss provision for the second quarter of 2008 was $6.3 mln, compared to net charge-offs of $4.3 mln. Non-performing assets for the second quarter of 2009 were $190.3 mln, compared to $127.8 mln last quarter and $49.6 mln a year earlier. The allowance for possible loan losses as a percentage of loans at June 30, 2009 was 1.42 percent, compared to 1.13% at the end of the second quarter of 2008. Returns on average assets and equity were .98% and 8.35%, respectively, compared to 1.56% and 13.44% for the same period a year earlier. Tier 1 and Total Risk-Based Capital Ratios remained strong at 10.91% and 13.34%, respectively, at the end of the second quarter of 2009 and are in excess of well capitalized levels.
9:06AM On The Wires : GSI Group (GSIG) announces that the Nasdaq Hearings Panel has determined to grant the Company's request for continued listing on The Nasdaq Stock Market... Peregrine Pharmaceuticals (PPHM) and Affitech (AFFI) announce that they have entered into a licensing agreement for antibody therapeutic rights under Peregrine's preclinical anti-VEGF antibody program. Under the terms of the agreement, Affitech will license exclusive worldwide rights to develop and commercialize products under Peregrine's selective anti-VEGF intellectual property portfolio, including the fully human antibody r84, which was discovered by Affitech and jointly developed by the companies under an ongoing collaboration... Apollo Gold (AGT) announces plans for a second phase of core drilling to follow up the positive drilling results from the 2008 diamond drilling program on its Grey Fox property.
9:04AM Shire Pharm: Study published in Child and Adolescent Psychiatry and Mental Health demonstrated once-daily Vyvanse CII provided significant improvement of ADHD symptoms for children at 13 hours after administration (SHPGY) 42.01 : Co announces that a study published online in the peer-reviewed journal Child and Adolescent Psychiatry and Mental Health found once-daily Vyvanse C.I.I. significantly reduced the symptoms of Attention-Deficit/Hyperactivity Disorder in children aged 6 to 12 from the first time point measured (1.5 hours) up to the last time point assessed (13 hours) after administration. In this pediatric analog classroom study, treatment with Vyvanse was associated with significant improvement in behavior and attention in children at each time point measured, with improvement at 13 hours after administration. In the study, Vyvanse demonstrated significant efficacy versus placebo at 1.5 hours, the first time point measured. Further, Vyvanse treatment was associated with significant efficacy as measured by both subjective and objective assessments from the first time point (1.5 hours) through the last time point (13 hours) assessed during the classroom day, and at all time points in between (2.5, 5.0, 7.5, 10.0, and 12.0 hours). Safety was also evaluated during the study. The adverse event profile for Vyvanse was similar to other currently marketed stimulants. The most frequently reported adverse events (greater than or equal to 10%) in the dose-optimization phase for patients taking Vyvanse were decreased appetite, insomnia, headache, irritability, upper abdominal pain, and affect lability.
9:04AM Gammon Gold reports preliminary second quarter production and updated 2009 guidance (GRS) 7.77 : "While production at Ocampo was in line with Q1 2009, the 7-week labour disruption at El Cubo adversely affected production during the quarter. As a result of the lower consolidated production levels achieved in the quarter, consolidated cash costs are expected to be between $445 and $465 per gold equivalent ounce." stated Rene Marion, Chief Executive Officer of Gammon Gold. He continued, "With the completion of the 18-month strategic capital expansion program at Ocampo and the resumption of operations at El Cubo, we fully expect increased production and an enhanced cost structure during the second half of 2009. While we have revised our 2009 guidance to address the production shortfall, our guidance for 2010 remains unchanged at 200 to 220 thousand gold ounces and 8.5 to 9.3 million silver ounces."... Production during the first six months of 2009 was lower than expected, however with the successful end to the work stoppage at El Cubo the Company is now able to provide revised guidance for 2009 that lowers production yet maintains previous cash cost guidance.
9:02AM NVR beats by $2.68, misses on revs (NVR) 554.34 : Reports Q2 (Jun) earnings of $6.79 per share, $2.68 better than the First Call consensus of $4.11; revenues fell 34.6% year/year to $625.4 mln vs the $642.6 mln consensus. New orders in the second quarter of 2009 increased 2% to 2,728 units, when compared to 2,670 units in the second quarter of 2008. The cancellation rate in the quarter ended June 30, 2009 was 14% compared to 19% in the second quarter of 2008 and 15% in the first quarter of 2009. Settlements decreased in the second quarter of 2009 to 2,048 units, 26% less than the same period of 2008. The Company's backlog of homes sold but not settled at the end of the 2009 quarter decreased on a unit basis by 16% to 4,497 units and on a dollar basis by 27% to $1,332,056,000 when compared to the same period last year.
9:02AM Orion Energy Systems announces James Kackley as President and COO (OESX) 3.50 :
9:01AM Abbott Labs HIV test demonstrates earlier disease detection (ABT) 45.00 : Research presented today at the American Association for Clinical Chemistry annual meeting shows that an assay developed by Abbott for simultaneous detection of both HIV antigens and antibodies reduced the detection window by zero to nine days in this study compared to HIV antibody-only assays. Earlier detection was shown on four of the five panels tested. "The ability to use a blood test to diagnose HIV sooner, in the acute phase of the disease where antibodies are not yet present, presents an exciting opportunity in the fight against HIV," said Gerald Schochetman, Ph.D., senior director, infectious diseases, research and development, Abbott Diagnostics. "This data is very promising and we are excited about the clinical potential of this assay to help detect HIV earlier."
9:01AM HJ Heinz announces that its subsidiary H.J. Heinz Finance plans to offer $250 mln of notes due 2039 through a private placement (HNZ) 37.29 : The co intends to use the net proceeds of the proposed offering for payment of the cash component of the anticipated exchange offer, various expenses relating to the anticipated exchange offer and for general corporate purposes.
8:56AM Basic Energy Services reports preliminary Q2 results, sees revs of $118-$119 mln vs $119.78 mln consensus (BAS) 6.15 : Co reports preliminary results for Q2, expecting revenue of $118-$119 mln vs $119.78 mln consensus, operating loss of $28.9-$29.9 mln, and net loss of $21.1-$22.1 mln.
8:53AM Crude oil ticks to fresh lows, in electronic trade, at $64.06; now off $1.39 to $64.22 :
8:46AM Moody's says US credit card charge-offs rise in June to 10.76%, pace slower : Charge-offs on US credit cards as measured by Moody's Credit Card Index continued to rise in June, reaching a record 10.76%, but the increase was somewhat slower than in preceding months. Also, the charge-offs for several large credit card issuers improved during the month, says Moody's. The overall delinquency rate declined for the third consecutive month in June, to 5.81%, its lowest level of 2009, according to the Moody's Index. The significance of the decline is unclear, however, as the rate usually shows seasonal improvement this time of year. "If delinquencies continue to improve beyond the typical seasonal pattern, then a similar trend in charge-offs may follow," says Moody's Senior Vice President William Black. "Nevertheless, we continue to expect increasing industry-wide delinquencies to resume through the second half of the year -- an assumption consistent with our forecast for a rising unemployment rate."... Moody's continues to expect a recovery of the credit card sector to begin once charge-offs peak in mid-2010 between 12% and 13%. The charge-off rate measures those credit card account balances written off as uncollectible as an annualized percentage of total outstanding principal balance.
8:37AM Avon Products highlights initial restructuring actions under 2009 program announced in February (AVP) 28.82 : Co announces the highlights of the initial restructuring actions under the new 2009 program it announced in February. The co said that it expects total costs to implement the initiatives approved to date to be approximately $165 mln, including a charge of approximately $77 mln pretax in the second quarter of 2009. When combined with costs of approximately $13 mln to implement initiatives from its 2005 restructuring program, the co said that it will incur a total charge of approximately $90 mln in the quarter, or $0.19 per share, including $0.05 per share for a one-time restructuring tax charge. The restructuring initiatives will include realignments in its global supply chain manufacturing footprint and improvements in operating model effectiveness in key geographies. As a result, the co said that approximately 2,300 positions will be impacted globally, with a net reduction of approximately 1,200 positions when the initiatives are fully implemented by 2012-2013.
8:36AM Odyssey Marine files objections to report and recommendation in "Black Swan" admiralty case (OMEX) 1.82 : Co announces it has filed its objections to the June 3, 2009 Report and Recommendation in the "Black Swan" Admiralty case (case number 08:07-cv-614). Odyssey's Objections include arguments that: 1) The applied legal standard of review is incorrect. 2) There is no coherent vessel located at the "Black Swan" site. 3) There is clear and convincing evidence of the commercial nature of the Mercedes' mission at the time of her demise which Odyssey believes legally nullifies the claim to sovereign immunity of that vessel. 4) A distinction between cargo and vessel is allowed and even required by settled admiralty law. 5) The majority of the coins aboard the Mercedes were merchant-owned, commercial cargo being shipped as freight for a fee and were never owned by Spain.
8:36AM TCF Financial misses by $0.02, beats on revs (TCB) 14.31 : Reports Q2 (Jun) earnings of $0.08 per share, $0.02 worse than the First Call consensus of $0.10; revenues rose 8.3% year/year to $296.8 mln vs the $263.8 mln consensus. TCF's total risk-based capital at June 30, 2009 of $1.5 bln, or 11.37% of risk-weighted assets, is $176.9 mln in excess of the stated "well-capitalized" requirement. Co says "TCF reported its 57th consecutive profitable quarter and announced a regular quarterly dividend of 5 cents per common share... At the heart of our core business, we saw continued positive momentum in revenues with increasing margin and fee income along with strong growth in deposit accounts and balances as well as loans and leases. Although provision for loan and lease losses remain at higher levels during this credit cycle, our philosophy of conservative banking and secured lending positions TCF to quickly benefit as the conomy improves."
8:32AM USG Corp misses by $0.04, misses on revs (USG) 12.12 : Reports Q2 (Jun) loss of $0.41 per share, excluding $0.12 restructuring charge, $0.04 worse than the First Call consensus of ($0.37); revenues fell 33.7% year/year to $829 mln vs the $956.5 mln consensus. "Revenues in all business segments are under pressure due to the significant declines in residential and commercial construction activity in the U.S. and abroad... In the U.S., our largest markets, new residential and home repair and remodeling, appear to be stabilizing, while the commercial market continues to decline."
8:31AM Basic Energy Services announces private offer of up to $225 mln in Senior Secured Notes (BAS) 6.15 :
8:30AM Wave Systems announces additional $1,648,400 stock offering (WAVX) 0.89 : Co announces that it is selling to investors 1,791,738 shares of its Class A common stock at a price of $0.92 per share, yielding gross proceeds of $1,648,400.
8:22AM Northern Trust beats by $0.40, beats on revs (NTRS) 57.54 : Reports Q2 (Jun) earnings of $0.95 per share, including redictions from TARP, $0.40 better than the First Call consensus of $0.55; revenues fell 4.5% year/year to $1.04 bln vs the $986 mln consensus. Trust, investment and other servicing fees increased $190.7 mln or 46% in the quarter, with C&IS fees increasing $183.9 mln or 89% and PFS fees increasing $6.8 mln or 3%. C&IS fees increased primarily due to higher securities lending fees and new business. Securities lending fees totaled $172.5 mln in the current quarter compared with a negative $7.9 mln in the first quarter. The current quarter included a positive mark-to-market adjustment of approximately $129 mln relating to prior period unrealized asset valuation losses recorded in one mark-to-market investment fund used in our securities lending activities. This compares to a negative mark-to-market adjustment of previous unrealized asset valuation losses of approximately $52 mln in the prior quarter. The increase in PFS fees primarily reflects new business and improved markets. The provision for credit losses totaled $60.0 mln in the current quarter, compared with $55.0 mln in the first quarter of 2009. Net investment security losses totaled $17.5 mln for the current quarter and included the $18.0 mln pre-tax charge to reflect the credit related other-than-temporary impairment of certain residential mortgage backed securities held within NTRS's balance sheet investment securities portfolio. NTRS's risk-based capital ratios remained strong at June 30, 2009, with the Corporation's tier 1 capital ratio of 12.6%, total risk-based capital ratio of 15.0%, and leverage ratio of 8.6%. The ratio of tier 1 common equity to risk-weighted assets, a non-GAAP financial measure, was 12.1% at June 30, 2009, up from 9.6% at March 31, 2009 and up from 9.3% at June 30, 2008. Co says, "We are pleased with our performance in the quarter. Client assets under custody and management, which represent an important component of our business, increased 13% and 7%, respectively, during the quarter. Improved market conditions favorably impacted securities lending revenues and reduced our obligations under capital support agreements with certain Northern Trust investment vehicles. While encouraged by our results, economic conditions remain difficult. In this challenging environment, we continue to maintain a heightened focus on serving the needs of our clients.
8:17AM Morgan Stanley misses by $0.88, beats on revs (MS) 27.13 : Reports Q2 (Jun) loss of $1.37 per share, $0.88 worse than the First Call consensus of ($0.49); revenues fell 11.3% year/year to $5.41 bln vs the $5.35 bln consensus. Results reflect a reduction of $2.3 billion ($1.32 per share) due to continued improvement in Morgan Stanley's Debt-Related Credit Spreads and $0.74 per share due to TARP repayments. This debt-related credit spread reduction compares to a $1.5 bln reduction in Q1. Firm results reflect net losses on investments in real estate of $0.7 bln, amidst the industry-wide decline in this market. Fixed income sales and trading net revenues of $1.0 bln reflect a loss of $1.3 bln related to the tightening of MS debt-related credit spreads which was partly offset by strong results in investment grade and distressed debt trading. The co's average trading VaR measured at the 95% confidence level was $113 mln compared with $100 mln in 2Q08 and $115 mln in 1Q09. Assets under management or supervision at June 30, 2009 were $361 bln, compared with $356 bln in Q1. As of June 30, 2009, the co's Tier 1 capital ratio, under Basel I, is ~15.8%, compared to 16% in Q1 (12.9% ex-TARP). Total capital as of June 30, 2009 was $213.2 bln, including $57.3 bln of common equity, preferred equity and junior subordinated debt issued to capital trusts. As of June 30, 2009, the co has not repurchased any shares of its common stock during this year as part of its capital management share repurchase program and book value per common share was $27.21, based on 1.4 bln shares outstanding. As a result of the co's equity offerings, period end and average common shares outstanding increased by approximately 276 mln and 123 mln shares, respectively.
8:11AM Quigley Corp announces final results of Phase IIb study for QR-333; there were nominal trends, but no statistical differences between active and placebo groups (QGLY) 2.54 : Co announces the results from its Phase IIb double-blind, placebo-controlled, study of topical compound QR-333 for the treatment of symptomatic diabetic peripheral neuropathy. The study was completed with fewer than expected evaluable patients with the final and comprehensive conclusions revealing that: 1) the compound is safe and well tolerated, and 2) there were nominal trends, but no statistical differences, between active and placebo groups for the primary and secondary endpoints measuring efficacy by (a) the reduction of pain, (b) symptomatic improvements, (c) improved quality of life and (d) improved sleep. However, the Company is encouraged by the positive, clinical and statistically significant improvement for efficacy in sural nerve conduction velocity and amplitude unexpectedly found in a sub-set of the patient population, announced in a press release on April 30, 2009. Those data may indicate the potential benefit of this compound as a disease modifying agent which, if validated through additional clinical trials, potentially broadens the therapeutic market opportunity. Additional clinical work would be required and future study considerations might include, a longer duration period to improve patient compliance as well as an assessment of sural nerve function and measures of distal nerve sensory thresholds in the feet to provide more detail to the potential for disease modification.
8:10AM Wells Fargo beats by $0.23 (WFC) 25.35 : Reports Q2 (Jun) earnings of $0.57 per share, $0.23 better than the First Call consensus of $0.34; revenues rose 28% year/year to $22.5 bln vs the $20.49 bln consensus. EPS includes $700 mln credit reserve build ($0.10 per common share), FDIC special assessment of $565 mln ($0.08 per common share) and merger-related and restructuring expenses of $244 mln ($0.03 per common share). As a percentage of total risk-weighted assets, Tier 1 capital, tangible common equity, and Tier 1 common equity increased to 9.80%, 5.24%, and 4.49%, respectively, at June 30, 2009, up from 8.30%, 3.84%, and 3.12%, respectively, at March 31, 2009. Net interest margin of 4.30%, up 14 basis points from first quarter. Co notes it has generated $14.2 bln from market and internal sources toward the Supervisory Capital Assessment Program (SCAP) $13.7 bln requirement. While SCAP process will not be completed until the third quarter is finished, already exceeded requirement by $500 mln and expect to internally generate additional SCAP-qualifying capital in third quarter. Credit performance met expectations, with some signs of stabilization in certain loan portfolios: net charge-offs of $4.39 bln compared with $3.26 bln in first quarter... The Wachovia integration proceeding as expected, with business and revenue synergies ahead of expectations... "We've extended more than $471 bln of loans to creditworthy customers since October 2008, including $206 bln in new loan commitments and originations this quarter... We took many actions to further strengthen our balance sheet, including building credit reserves to $23.5 bln and building Tier 1 common equity to $47.1 bln, or 4.49% of risk-weighted assets, and building Tier 1 capital to 9.8% of risk-weighted assets. While the Supervisory Capital Assessment Program (SCAP) will not be completed until after the third quarter is finished, we have already generated $14.2 bln from market and internal sources toward the $13.7 bln capital buffer required by the Federal Reserve and expect to generate additional capital internally in the third quarter. We're seeing some signs of moderation in consumer and small business credit losses, largely due to our efforts over the last two years to modify and restructure loans for our customers, our successful efforts to reduce high risk loan portfolios and the write-downs we already took in Wachovia's loan portfolios. The Wachovia integration remains on track, with business and revenue synergies already exceeding our expectations."
8:08AM On The Wires : Max Capital Group (MXGL) announces that Max Specialty Insurance Company is now approved to write business on a non-admitted basis in 49 other states, the US Virgin Islands and Puerto Rico... Rogers (ROG) announces that it has made a strategic investment of $5 mln in Solicore, which offers its patented Flexionadvanced ultra-thin, flexible, lithium polymer batteries for smart cards, controlled access cards, RFID tags, and medical devices... GeoMet (GMET) announces that it has added new natural gas hedges with protection extending into 2012... AsiaInfo Holdings (ASIA) announces that it will upgrade both Shandong and Zhejiang Mobile's Business Intelligence systems to Next Generation Business Analysis Support System... Amarin (AMRN) announces that it has revised the terms of the previously announced non-binding term sheet relating to the private placement of American Depositary Shares for up to $55 mln. The revised non-binding term sheet contemplates that the lead investors in the proposed financing, funds affiliated with Fountain Healthcare Partners, Sofinnova Ventures, Orbimed Advisors and Longitude Capital, along with other potential investors that have expressed strong interest, will purchase an aggregate of up to $30 mln of the ADSs with the balance of approx $25 mln reserved for other investors mutually acceptable to both the co and the lead investors...
8:06AM Silgan Holdings beats by $0.08, misses on revs; guides Q3 EPS in-line; raises FY09 EPS (SLGN) 50.00 : Reports Q2 (Jun) earnings of $0.89 per share, excluding non-recurring items, $0.08 better than the First Call consensus of $0.81; revenues fell 6.2% year/year to $689.5 mln vs the $738.6 mln consensus. Co issues in-line guidance for Q3, sees EPS of $1.45-1.65, ex-items vs. $1.54 consensus. Co rasies guidance for FY09 by $0.15 for FY09, sees EPS of $3.75-3.95, excluding non-recurring items, vs. $3.79 consensus. Co says, "Our metal food container business benefited from year-over-year volume improvements and solid operational performance. Our closures business effectively managed their costs to offset the negative impact from continued volume softness in the single-serve beverage market. In spite of significant cost reductions and operating efficiencies, we saw disappointing results in our plastic bottle business as its markets continued to suffer from weak consumer demand and some trade down to products with less value added packaging. Given our relatively stable markets and strong operating performance year to date and our expectations for continued performance in the second half, we are raising our full year 2009 earnings estimate of adjusted net income per diluted share by $0.15 to a range of $3.75 to $3.95."
8:05AM Illinois Tool beats by $0.02, beats on revs; guides Q3 EPS in-line, revs in-line (ITW) : Reports Q2 (Jun) earnings of $0.36 per share, $0.02 better than the First Call consensus of $0.34; revenues fell 25.5% year/year to $3.39 bln vs the $3.36 bln consensus. Co issues in-line guidance for Q3, sees EPS of $0.39-0.51 vs. $0.45 consensus. Co assumes a Q3 total revenue range of -2% to +4% vs the 2009 second quarter (roughly $3.33-3.53 bln) vs. $3.53 bln consensus. Co expects to reinstate full-year guidance when longer-term visibility becomes more reliable.
8:04AM SEI Investments beats by $0.01, reports revs in-line (SEIC) 18.45 : Reports Q2 (Jun) earnings of $0.22 per share, $0.01 better than the First Call consensus of $0.21; revenues fell 23.5% year/year to $252 mln vs the $249.6 mln consensus. Co said, "While the capital markets did improve in the second quarter, their still-depressed levels continue to have a significant negative impact on our second-quarter financial results as compared to the second quarter, 2008".
8:04AM Onyx Pharma: Nexavar in combination with chemotherapy shown to extend progression-free survival in patients with advanced breast cancer (ONXX) : Bayer HealthCare Pharmaceuticals and Onyx Pharmaceuticals (ONXX) announce that their first cooperative group-sponsored randomized Phase 2 trial in advanced metastatic breast cancer met its primary endpoint of progression-free survival. The study evaluated Nexavar tablets in combination with the oral chemotherapeutic, capecitabine, in patients with locally advanced or metastatic HER-2 negative breast cancer. Study findings demonstrated that the median progression-free survival was extended in patients treated with Nexavar and capecitabine compared to patients receiving capecitabine and placebo. These results were statistically significant. A complete data analysis from this study is expected to be presented at an upcoming scientific meeting.
8:03AM Piper Jaffray beats by $0.20, beats on revs (PJC) 44.33 : Reports Q2 (Jun) earnings of $0.59 per share, $0.20 better than the First Call consensus of $0.39; revenues rose 35.4% year/year to $132.3 mln vs the $113.1 mln consensus. Co said, "Equity capital market conditions began to improve during the quarter, and we raised capital for or advised our clients in a number of successful transactions across all of our focus sectors. Also, higher fixed income sales and trading revenues were driven by solid client activity, favorable trading spreads and improved asset valuations. In addition, our revenues were positively impacted by the senior talent we have added across our platform. This is particularly true for our public finance business, where we are capturing an increased market share. Finally, the second quarter results demonstrate the operating leverage we have created by reducing our fixed costs. Our revenues increased 58 percent and our pre-tax operating income increased 420 percent, compared to the first quarter of 2009."
8:02AM Cardica announces publication of pivotal PAS-Port proximal anastomosis system clinical trial results (CRDC) 1.33 : The co announces that the full results of the PAS-Port system multi-center pivotal trial, known as the EPIC trial, were published in the July issue of the peer-reviewed publication The Journal of Thoracic and Cardiovascular Surgery. The PAS-Port system creates a secure connection, or anastomosis, between a vein graft and the aorta, the main artery in the human body, during coronary artery bypass grafting (CABG) procedures. The data published show that the PAS-Port system met the primary efficacy endpoint of non-inferiority in patency at nine-month follow up compared to hand-sewn anastomoses. In addition, of the 12 major adverse cardiac events (MACEs) reported that may possibly be related to target vessel revascularization, four (33%) may have been related to the PAS-Port system with eight (67%) potentially related to hand-sewn anastomoses
8:00AM Suntech Power and China Huadian sign strategic agreement to develop 500MW of solar projects (STP) 17.80 : The co announces that Suntech has recently entered into a strategic agreement with China Huadian New Energy Development (HNE) to develop a total of 500MW of utility-scale and commercial roof-top solar projects in China's sun rich western provinces, Jiangsu province and Shanghai over the next three years. Under the agreement, HNE will be responsible for the project investment and development of solar projects and Suntech will be responsible for supplying crystalline silicon solar modules, system design and technical support. Separate project-specific agreements will be signed prior to the implementation of solar projects related to this agreement.
7:56AM Hubbell Inc Reaches Agreement to Acquire Burndy for $360 mln (HUB.B) : Co announces the signing of a definitive agreement to acquire FCI Americas (the business known as "Burndy") for consideration of $360 mln in cash, subject to certain standard adjustments. Burndy is a North American manufacturer of connectors, cable accessories and tooling serving utilities as well as commercial and industrial customers. In 2008, Burndy generated sales of approx $225 mln with operating profit margins in the high teens. Products are primarily sold through distributors, the same channel utilized by Hubbell. Sales are roughly 63% Construction & Industrial and 37% Utility while the geographic split is approx 75% in the U.S. and 25% in Canada, Brazil and Mexico
7:41AM Hubbell Inc beats by $0.06, misses on revs (HUB.B) 34.13 : Reports Q2 (Jun) earnings of $0.70 per share, $0.06 better than the First Call consensus of $0.64; revenues fell 15.3% year/year to $584.2 mln vs the $596.3 mln consensus. Co said, "We anticipate the current trends in our markets to continue for the second half of the year. Hubbell's largest served market, non-residential construction, is forecasted to decline at a slightly higher rate in the second half of 2009 compared to the first half. The utility market is expected to remain down in the 10-12% range primarily due to weaker distribution spending partially offset by some transmission and substation project spending. We do not expect any meaningful improvement for the remainder of this year in the industrial or residential markets."
7:41AM Lazard initiates select PBM's; initiates CVS, ESRX and MHS with a Buy : Lazard initiates CVS, ESRX and MHS with a Buy and establishes a tgt of $40, $85 and $57, respectively. The firm views the pharmacy benefit management group as well positioned to take advantage of key secular trends. Visibility on long-term earnings growth in the high-teens range or better remains very high due to a combination of factors, including rising generic penetration, robust growth of specialty drugs, and the continued motivation of payors to use the tools that PBMs have to offer in an effort to control drug spend. The firm views drug retailer-PBM CVS as the value play and "show-me" story; the firm expects shares to outperform as EPS accelerate in 2010 and proof of traction at the vertical model becomes more apparent. ESRX is the "momentum" name in the group; when a PBM stock captures positive momentum its outperformance can be meaningful and the firm believes that the WLP deal can drive shares of ESRX over the next 12-24 months. MHS is arguably the "cleanest" of the stories, with its asset base positioning the co well to take advantage of underlying industry trends. Further, the firm believes EPS visibility is high at MHS and upside is possible.
7:35AM US Bancorp beats by $0.02 (USB) 18.27 : Reports Q2 (Jun) earnings of $0.12 per share, $0.02 better than the First Call consensus of $0.10; revenues rose 7.1% year/year to $4.16 bln vs the $4.03 bln consensus. Significant items impacting the second quarter of 2009 results included an FDIC special assessment equal to $0.05 per diluted common share and the accelerated amortization of the discount associated with the TARP preferred stock ("deemed dividend") redeemed on June 17, 2009, equal to $0.08 per diluted common share. In addition, the Company recorded a provision for credit losses in excess of net charge-offs equal to $0.20 per diluted common share. Return on average assets and return on average common equity were 0.71% and 4.2%, respectively, for the second quarter of 2009, compared with 1.58% and 17.9%, respectively, for the second quarter of 2008. "Our capital position remains strong with a Tier 1 capital ratio of 9.4% at June 30, 2009, above the 6.0% well-capitalized ratio as defined by the regulators. In addition, the issuance of new common equity strengthened the Tier 1 common equity ratio from 5.4% at March 31, 2009, to 6.7% at June 30, 2009. Our capital position is solid and it provides a strong base of support at this point in the cycle for our on-going operations, including lending activity and growth initiatives... Credit costs, as expected, continued to have a negative impact on earnings in the second quarter, but the rate of growth on a linked quarter basis in both dollars of net charge-offs and nonperforming assets moderated. For the sixth consecutive quarter, we added to the reserve for credit losses. Specifically, incremental provision expense was approximately 50 percent of net charge-offs in the second quarter versus approximately 67 percent of net charge-offs in the first quarter of 2009. The additional provision expense led to a rise in the allowance for credit losses as a percent of period end loans to 2.51 percent at June 30, 2009, from 2.23 percent at March 31, 2009. We expect to continue to build reserves until we see consistent evidence of a leveling-off or decline in net charge-offs. As the results of the stress test indicated, we have the capital and earnings power to cover future losses, even under more adverse economic conditions."
7:35AM Dyax reports Q2 revenue up 11% (DYAX) 3.35 : Co reports Q2 (Jun) revenue rose 11% yr/yr to $4.2 mln; co also reports Q2 loss of $0.23 per share. There are no analyst estimates. Co says that during 2009, it has taken multiple steps to support its long-term business strategy and strengthen its balance sheet. Co believes it has the cash and resources to support ongoing operations well into 2010.
7:35AM Boeing beats by $0.20, reports revs in-line; reaffirms FY09 EPS guidance, revs guidance (BA) 43.02 : Reports Q2 (Jun) earnings of $1.41 per share, $0.20 better than the First Call consensus of $1.21; revenues rose 1.1% year/year to $17.15 bln vs the $17.15 bln consensus. Co reaffirms guidance for FY09, sees EPS of $4.70-5.00 vs. $4.52 consensus; sees FY09 revs of $68-69 bln vs. $67.83 bln consensus. The 787 program has identified a technical solution to the previously announced requirement to reinforce an area within the side-of-body joint, and is currently evaluating alternative ways to implement that solution. The company expects to complete its assessment of the schedule and financial implications during the third quarter. Commercial Airplanes' 2009 delivery guidance remains at between 480 and 485 airplanes and is sold out. BCA's 2009 revenue is unchanged at between $34 bln and $35 bln, and operating margin remains at between 8 percent and 8.5 percent. IDS guidance for 2009 remains unchanged with revenue between $33 bln and $34 bln and operating margins of approximately 10 percent. Boeing's 2009 R&D forecast is between $3.6 bln and $3.8 bln. 2009 capital expenditures are expected to be approximately $1.4 bln. The company's non-cash pension expense is expected to be approximately $0.9 bln in 2009. Boeing Capital Corporation continues to expect that the aircraft finance portfolio will increase modestly as the amount of new aircraft financing in 2009 will exceed normal portfolio runoff due to customer payments and depreciation.
7:34AM Domino's Pizza beats by $0.01, beats on revs (DPZ) 8.37 : Reports Q2 (Jun) earnings of $0.21 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.20; revenues fell 5.3% year/year to $316.6 mln vs the $310.3 mln consensus. Global Retail Sales were down 4.7% in the second quarter, or up 3.8% when excluding the impact of foreign currency. Co says, "I'm putting this quarter in the "win" column for Domino's Pizza. I'm proud of my team and our accomplishment of emerging as a leader during tough times. Our franchisees are engaged and have embraced the expansion of our products and day parts. The predictability of our model continues to be a plus in an unpredictable landscape. Our international business continues to thrive despite the dampening effect of foreign exchange. We are driving positive sales at a robust rate... and we've done so for more than the past fifteen years. We are consistently opening new stores and new markets, driving future growth for Domino's Pizza."
7:33AM St. Jude Medical reports EPS in-line, misses on revs; guides Q3 EPS in-line; guides FY09 EPS in-line; authorizes $500 mln stock repurchase program (STJ) 39.60 : Reports Q2 (Jun) earnings of $0.63 per share, in-line with the First Call consensus of $0.63; revenues rose 4.2% year/year to $1.18 bln vs the $1.2 bln consensus. Co issues in-line guidance for Q3, sees EPS of $0.61-$0.63 vs. $0.63 consensus. Co issues in-line guidance for FY09, sees EPS of $2.48-$2.54 vs. $2.52 consensus. The Company also announced today that its Board of Directors has authorized the repurchase of up to $500 million of St. Jude Medical common stock. Co states, "Sales results met or exceeded guidance in each of our four major growth programs during the second quarter. We are pleased with our currency neutral sales growth of 14% for the first half of 2009.."
7:33AM On The Wires : Bovie Medical (BVX) announces a 510K submission to the FDA seeking pre-market clearance for Bovie's Polarian Seal-N-Cut vessel sealing line of hybrid monopolar and bipolar forceps... LaserCard (LCRD) announces receipt of a purchase order of approximately $1.5 mln for the supply of ID cards for Italy's Foreign Resident Card program. The order calls for deliveries to be completed during the current fiscal quarter, ending September 30, 2009... EMCOR Group (EME) announces that its Fagan Company subsidiary has received a contract for the installation of the mechanical systems for a major retrofit at the new headquarters for Kansas City Power and Light located in Kansas City, Missouri.
7:20AM On The Wires : CARBO Ceramics (CRR) announced it has approved an increase in the dividend, raising the quarterly dividend 6% to 18 cents per common share... United Rentals (URI) announced that it has acquired the operating assets of Leasco Equipment Services, a rental company that serves the industrial sector with a focus on power generation, petroleum, chemical, and pulp and paper companies... Metavante Corporation, the principal subsidiary of Metavante Technologies (MV) and Temenos announced that they have reached a settlement relating to the termination of their agreement to launch an advanced core banking platform based on TEMENOS Core Banking in the U.S. market... Double Eagle Petroleum Co. (DBLE) announced that on June 22, 2009 the Bureau of Land Management approved the suspension of operations and production for all leases within the Main Fork Environmental Impact Study Area effective May 1, 2009... Tree.com (TREE) announced that it acquired certain assets of LeadRelevance, an interactive direct marketing company specializing in generation for the for-profit, post-secondary education market, from Webloyalty... Depomed (DEPO) announced that it has provided a license to certain patents directed to metformin extended release technology to Merck (MRK) to be used in developing fixed dose combinations of sitagliptin and extended release metformin. Under terms of the agreement, Merck will receive a non-exclusive license as well as other rights to certain Depomed patents directed to metformin extended release technology. In exchange Depomed will receive a $10 million upfront fee... Alien Technology is pleased to announce positive outcomes related to patent infringement claims filed by Avery Dennison (AVY). In 2008, Avery Dennison filed suit against Alien in federal district court in Ohio asserting that Alien's manufacturing and testing processes infringe Avery Dennison's patents.
7:16AM ExpressJet reports Q2 EPS of (0.78), ex-items, vs the ($2.56) last yr; total revs fell 62% YoY to $170.6 mln (no estimates) (XJT) 1.30 :
7:12AM PF Chang's beats by $0.10, reports revs in-line; raises FY09 guidance (PFCB) 34.91 : Reports Q2 (Jun) earnings of $0.51 per share, $0.10 better than the First Call consensus of $0.41; revenues were unchanged from the year-ago period at $301.4 mln vs $299.9 mln consensus. Co raises guidance for FY09, sees EPS of 1.60-1.65 vs. $1.63 consensus up from prior guidance of $1.45-$1.50. The Company continues to expect a negative sales environment for the remainder of 2009. As a result, the Company anticipates average weekly sales for fiscal 2009 to decline approximately 6% to 7% at the Bistro and approximately 3% to 4% at Pei Wei. Consolidated revenues for fiscal 2009 are expected to increase 1% to 2% compared to fiscal 2008.
7:09AM Broadpoint Gleacher Securities announces 20.0 mln common share offering (BPSG) 6.56 : Offering consists of 12.0 mln shares from the co and 8.0 mln shares held by certain of its shareholders.
7:09AM Old Dominion misses by $0.01, misses on revs (ODFL) 33.20 : Reports Q2 (Jun) earnings of $0.29 per share, $0.01 worse than the First Call consensus of $0.30; revenues fell 24.3% year/year to $316.2 mln vs the $329.7 mln consensus. ODFL's operating ratio was 93.2% for the second quarter of 2009 vs 89.7% for the second quarter of 2008. Co says, "The decline in our second quarter revenue was attributable to a decline in our tonnage, consistent with the overall LTL industry, and a reduction in our fuel surcharges that resulted from the decrease in the price of diesel fuel. Tonnage decreased 14.6% for the second quarter of 2009 compared to the same quarter of 2008, some of which may have resulted from pricing decisions. Despite this decrease, we have maintained our relative market share thus far in 2009. For the comparative second quarters, we increased platform pounds per hour by 18.5% and increased pickup and delivery shipments per hour by 3.9%. We were also able to minimize the impact of lower volumes on our linehaul operations, as our linehaul laden load average declined only 0.7% from the second quarter of 2008 despite our improved on-time service performance. However, the cost savings achieved were not sufficient to offset the declining operating leverage from lower volumes. As we enter the second half of the year, we intend to redouble our efforts, as we have little visibility to near-term improvement in industry conditions."
7:07AM Delta Air Lines beats by $0.05, reports revs in-line (DAL) 6.06 : Reports Q2 (Jun) loss of $0.24 per share, excluding non-recurring items, $0.05 better than the First Call consensus of ($0.29); revenues rose 27.3% year/year to $7 bln vs the $6.94 bln consensus. Delta has achieved more than $200 million in synergy benefits from its merger with Northwest Airlines in the first half of 2009, and expects to generate at least $500 million in total synergies in 2009. Synergies achieved year to date have improved revenue from increased market share, Delta's affinity card agreement and alignment of frequent flyer programs. In addition, costs have been reduced through streamlined overhead, facilities and technology, elimination of dedicated freighter flying and supply chain savings.
7:05AM Human Genome announces new order for Raxibacumab from U.S. government (HGSI) 13.84 : Co announces that the U.S. government has exercised its option to purchase an additional 45,000 doses of raxibacumab for the Strategic National Stockpile, to be delivered over a three-year period, beginning near the end of 2009. HGS expects to receive approximately $151 million from this award as deliveries are completed.
7:05AM MKS Instruments beats by $0.07, beats on revs; guides Q3 EPS above consensus, revs above consensus (MKSI) 17.28 : Reports Q2 (Jun) loss of $0.19 per share, excluding items, $0.07 better than the First Call consensus of ($0.26); revenues rose 3.3% year/year to $79.2 mln vs the $66.7 mln consensus. Co issues upside guidance for Q3, sees EPS of ($0.18)-(0.07) vs. ($0.25) consensus; sees Q3 revs of $77-92 mln vs. $70.67 mln consensus.
7:05AM Landry's Seafood misses by $0.08, reports revs in-line (LNY) 10.07 : Reports Q2 (Jun) earnings of $0.23 per share, excluding non-recurring items, $0.08 worse than the First Call consensus of $0.31; revenues fell 8.5% year/year to $282 mln vs the $283.6 mln consensus. The Company believes that for the full year 2009, its restaurant and hospitality division will generate adjusted EBITDA between $130.0 mln and $135.0 mln while the gaming division will generate between $43.0 mln and $48.0 mln in adjusted EBITDA in 2009. Therefore, consolidated adjusted EBITDA in 2009 is expected to range from $173.0 mln to $183.0 mln for the full year.
7:04AM BioDelivery Services receives $27 mln milestone payment from Meda AB (BDSI) 5.30 :
7:04AM Pfizer beats by $0.01, misses on revs; guides FY09 EPS in-line, revs in-line (PFE) 15.70 : Reports Q2 (Jun) earnings of $0.48 per share, $0.01 better than the First Call consensus of $0.47; revenues fell 9.4% year/year to $10.98 bln vs the $11.27 bln consensus. Co issues in-line guidance for FY09, raises EPS outlook, to $1.90-2.00 (from $1.85-1.95) vs. $1.96 consensus; sees FY09 revs of $45-46 bln (from $44-46 bln) vs. $45.57 bln consensus. "We've made substantial progress on our cost-reduction initiative with an operational decrease of approximately $740 million in adjusted total costs(10) realized during first-half 2009, a portion of which we expect will fund increased activity in support of business opportunities, primarily in emerging markets and established products, and in support of our late-stage development portfolio, among other things, during second-half 2009. In connection with the pending Wyeth acquisition, we replaced our bridge loan facility with permanent financing and are making substantial progress in planning for a successful and rapid integration of Wyeth following the closing."
7:04AM Altria beats by $0.03, beats on revs; guides FY09 EPS above consensus (MO) 17.33 : Reports Q2 (Jun) earnings of $0.50 per share, excluding non-recurring items, $0.03 better than the First Call consensus of $0.47; revenues rose 32.9% year/year to $6.72 bln vs the $5.35 bln consensus. Co issues upside guidance for FY09, sees EPS of $1.72-1.77 (previous range $1.70-1.75), excluding non-recurring items, vs. $1.71 consensus. Cigarettes segment's operating companies income increased 7.4% on an adjusted basis and 6.7% on a reported basis vs 2Q08. Reported results during quarter reflect higher operating companies income from cigarettes and financial services, as well as the OCI contribution from the UST LLC acquisition, higher earnings from Altria's equity investment in SABMiller plc (SABMiller) and lower general corporate expenses. These factors were partially offset by higher interest expense and lower OCI from cigars versus the prior-year period.
7:03AM Stanley Works beats by $0.01, misses on revs; guides FY09 EPS in-line (SWK) 38.03 : Reports Q2 (Jun) earnings of $0.55 per share, $0.01 better than the First Call consensus of $0.54; revenues fell 20.2% year/year to $919.2 mln vs the $979.4 mln consensus. Co issues in-line guidance for FY09, sees EPS of $2.00-2.50, excluding $0.34 gain on debt extinguishment, vs. $2.32 consensus. For 2010, the per share benefit of all programs is expected to be $0.99 ($0.24 from 4Q'08, $0.51 from 1Q'09 and $0.24 from 2Q'09).
7:03AM Navigant Consult misses by $0.06, misses on revs; guides FY09 EPS below consensus, revs below consensus (NCI) 13.88 : Reports Q2 (Jun) earnings of $0.14 per share, excluding items, $0.06 worse than the First Call consensus of $0.20; revenues fell 17.9% year/year to $173.6 mln vs the $183.2 mln consensus. Co issues downside guidance for FY09, sees EPS of $0.60-0.70, excluding non-recurring items, vs. $0.86 consensus; sees FY09 revs of $690-730 mln vs. $754.60 mln consensus.
7:01AM Air Tran Holdings beats by $0.02, reports revs in-line (AAI) 5.75 : Reports Q2 (Jun) earnings of $0.34 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.32; revenues fell 12.9% year/year to $603.7 mln vs the $601.1 mln consensus.
6:59AM PepsiCo beats by $0.06, misses on revs; reaffirms guidance for FY09 (PEP) 56.40 : Reports Q2 (Jun) earnings of $1.06 per share, $0.06 better than the First Call consensus of $1.00; revenues fell 3.2% year/year to $10.59 bln vs the $10.99 bln consensus. The company reaffirms its full-year 2009 guidance for both net revenue and core EPS of mid- to high-single-digit constant currency growth over its 2008 core EPS of $3.68.
6:46AM GE Capital receives approval for TLGP exit plan (GE) 11.47 : GE announces that, at the request of GE Capital Corp, the FDIC has approved an application filed by GECC, which positions it to exit the Temporary Liquidity Guarantee Program. As a result, GECC no longer will issue government-guaranteed short-term debt and will be able to issue non-guaranteed long-term debt with maturities of 18 months to three years, as well. The FDIC and GECC also agreed to reduce GECC's aggregate limit under the program, consistent with the company's position that it would not need to utilize its maximum authorized capacity. With these revisions, the company will have about $14 billion remaining long-term debt capacity under TLGP.
6:39AM Eli Lilly beats by $0.10, reports revs in-line; raises FY09 EPS guidance, still in-line (LLY) 34.45 : Reports Q2 (Jun) earnings of $1.12 per share, excluding non-recurring items, $0.10 better than the First Call consensus of $1.02; revenues rose 0.8% year/year to $5.29 bln vs the $5.28 bln consensus. Co issues raises guidance for FY09, sees EPS of $4.20-4.30, excluding non-recurring items, vs. $4.23 consensus, from previous guidance of $4.00-4.25. Gross margin as a percent of total revenue increased by 5.4 % points, to 82.1%. This increase was due to the impact of the decline in foreign currencies compared to the U.S.$ on international inventories sold during the quarter, resulting in a benefit to cost of sales as compared to the second quarter of 2008, and the inclusion in cost of sales of $57.1 million in expenses in the second quarter 2008 related to asset impairments at certain manufacturing facilities. Co says, "Lilly continues to deliver solid financial results notwithstanding the challenging global economic environment. Our business remained strong in the second quarter, with volume-driven revenue growth, good operating leverage and double-digit EPS growth. Sales of Cymbalta and Alimta were particularly noteworthy this quarter, while movements in foreign exchange rates led to an improved gross margin percent. In addition, we continued to advance molecules into and through our pipeline, and now have 66 molecules in clinical development. We also received several important regulatory approvals, most notably Effient in the U.S. Based on these results, and our outlook for the remainder of the year, we have raised our full-year 2009 pro forma non-GAAP earnings per share guidance."
6:23AM S&P futures vs fair value: -1.50. Nasdaq futures vs fair value: flat. :
6:23AM European Markets : FTSE...4479.73...-1.40...0.00. DAX...5085.11...-8.80...-0.20%.
6:23AM Asian Markets : Nikkei...9723.16...+71.10...+0.70%. Hang Seng...19248.17...-253.60...-1.30%.
6:19AM ICON plc beats by $0.04, misses on revs; guides FY09 EPS in-line, revs below consensus (ICLR) 22.98 : Reports Q2 (Jun) earnings of $0.38 per share, ex-items, $0.04 better than the First Call consensus of $0.34; revenues rose 0.8% year/year to $220 mln vs the $226.4 mln consensus. Co issues lowers guidance for FY09, sees EPS of $1.38-1.44, excluding non-recurring items, vs. $1.38 consensus, down from "lower end" of $1.40-1.52; sees FY09 revs of $880-900 mln vs. $919.98 mln consensus, down from "lower end" of $930-980 mln. Co says, "In the current market, we are pleased with the results for the quarter. We continue to expand margin and as a result we increased operating income by 20% compared to the same period last year. In addition we are now amending guidance for revenue for the remainder of 2009 to $880 - $900 million and firming our EPS guidance, before one time net charges to, $1.38 -$1.44."
6:09AM Knight Capital Group beats by $0.12, beats on revs (NITE) 17.78 : Reports Q2 (Jun) earnings of $0.52 per share, excluding discontinued operations, $0.12 better than the First Call consensus of $0.40; revenues rose 65.4% year/year to $313.9 mln vs the $258.7 mln consensus. "Knight's strong financial results in the second quarter were due to further market share gains in equities and the continued execution of our multi-asset class strategy, especially the expansion in fixed income," said Thomas M. Joyce, Chairman and Chief Executive Officer. "Equity trade volumes and revenues from both institutional and broker-dealer clients rose in an industry environment marked by increasing competition and downward pressure on margins. In institutional fixed income, Knight added products, talent and new clients. During the second quarter, we made additional investments in Europe and the Asia-Pacific region to drive future growth."
6:07AM Broadpoint Gleacher Securities beats by $0.12, beats on revs (BPSG) 6.56 : Reports Q2 (Jun) earnings of $0.18 per share, $0.12 better than the First Call consensus of $0.06; revenues rose 171.8% year/year to $92.7 mln vs the $69.5 mln consensus. Revenue growth in the second quarter of 2009 was primarily driven by Fixed Income and Investment Banking. Revenues from principal transactions and commissions were $70.0 mln in the second quarter of 2009, an increase of $48.1 mln, or 220% compared to the second quarter of 2008, due to increased revenues in the Broadpoint Descap division of $23.3 mln, the Debt Capital Markets division of $22.2 mln and the Equities division of $2.9 mln. Investment Banking revenues increased $3.8 mln over the second quarter of 2008 to $13.0 mln, primarily due to an increase in advisory fees. Co says, "I could not be happier with the integration of our two firms so far. We have already begun the process of offering our respective clients a broader array of advisory and corporate finance services. We have added over 60 professionals so far in 2009 and are beginning to see the benefit of their increased productivity."
6:06AM Host Hotels beats by $0.03, misses on revs; guides FY09 FFO in-line (HST) 8.36 : Reports Q2 (Jun) funds from operations of $0.27 per share, excluding non-recurring items, $0.03 better than the First Call consensus of $0.24; revenues fell 23.3% year/year to $1.06 bln vs the $1.08 bln consensus. Co issues in-line guidance for FY09, sees FFO of $0.68-0.75, excluding non-recurring items, vs. $0.68 consensus. Comparable hotel RevPAR for the second quarter of 2009 decreased 24.9% when compared to the second quarter of 2008. Year-to-date 2009 comparable hotel RevPAR decreased 22.7% when compared to year-to-date 2008. Comparable hotel adjusted operating profit margins decreased 560 basis points and 500 basis points for the second quarter and year-to-date 2009, respectively.
6:04AM Whirlpool beats by $0.53, reports revs in-line; guides FY09 EPS above consensus (WHR) 56.34 : Reports Q2 (Jun) earnings of $1.04 per share, $0.53 better than the First Call consensus of $0.51; revenues fell 17.9% year/year to $4.17 bln vs the $4.2 bln consensus. Co issues upside guidance for FY09, sees EPS of $3.50-4.00 vs. $3.41 consensus. Q2 operating profit was favorably impacted by cost reduction initiatives and favorable product price/mix. These favorable items were offset by substantially lower global sales and production volumes, unfavorable foreign currency fluctuations and lower monetization of certain tax credits. Based on current economic conditions, the co expects FY09 U.S. industry unit shipments to decline between 10-12%. Based on current economic conditions in the European region, the company expects FY09 industry unit shipments to decline approx 13% from 2008 levels, compared with its previous expectation of a 10% decline.
6:03AM Air Products beats by $0.07, misses on revs; guides Q4 EPS in-line; guides FY09 EPS in-line (APD) 69.70 : Reports Q3 (Jun) earnings of $1.05 per share, excluding non-recurring items, $0.07 better than the First Call consensus of $0.98; revenues fell 28.1% year/year to $1.98 bln vs the $2.13 bln consensus. Co issues in-line guidance for Q4, sees EPS of $1.04-1.14 vs. $1.12 consensus. Co issues in-line guidance for FY09, sees EPS of $3.95-4.05 vs. $3.95 consensus. Co said, "While we are still seeing the impact of the global recession on our volumes, we've seen signs of improvement during this quarter in some of our end markets, particularly in Electronics and Asia. The productivity and continuous improvement efforts of our employees are having an impact, as margins improved substantially both sequentially and versus prior year."
5:55AM CNH Global misses by $0.06, misses on revs (CNH) 15.88 : Reports Q2 (Jun) loss of $0.06 per share, excluding non-recurring items, $0.06 worse than the First Call consensus of ($0.00); revenues fell 32.6% year/year to $3.56 bln vs the $3.74 bln consensus. CNH expects Equipment Operations net sales for FY09 to be down 25 to 30% from 2008, including a reduction of approx 5% related to currency translation, following the trend of the first half of the year. To compensate for lower levels of market demand and to reduce inventory levels, CNH plans to continue to under-produce expected retail unit sales by 10 to 15% for agricultural equipment and by 50 to 55% for construction equipment. CNH anticipates that markets will remain challenging through at least the balance of the year and expects a net loss for the full year, excluding restructuring. Overall, with the corrective measures it has put in place, co is confident about the future of both the construction and agricultural equipment businesses.
5:15AM Portland General Electric lowers 2Q09 and FY09 EPS guidance (POR) 19.86 : Co issues downside guidance for Q2 (Jun), sees EPS of $0.31 vs. $0.53 First Call consensus. Co issues downside guidance for FY09 (Dec), sees EPS of $1.35-1.45 vs. $1.81 consensus. "Oregon's economy continues to be impacted by the national recession. Retail loads are down, primarily because our industrial customers' electricity use has declined by more than we projected just three months ago. In addition, lower prices in the wholesale energy market have made it difficult to offset lost revenue with the sale of excess power. These issues, combined with an extended outage at the Colstrip plant, have led us to reduce our full-year earnings guidance," says Jim Piro, president and CEO.
3:18AM ClickSoftware Tech. beats by $0.02, beats on revenue (CKSW) 6.74 : Reports Q2 (Jun) earnings of $0.09 per share, excludes items, $0.02 better than the $0.07 First Call consensus; revenues increased 31.0% year/year to $14.37 mln vs the $13.75 mln consensus. Co reports backlog and deferred revenue was approx $29 mln. Based on the level of backlog, deferred revenues and current pipeline, co believes that revenues will continue to grow in 2H09 compared to 2H08.
3:12AM Arkansas Best misses by $0.23, misses on revs (ABFS) 25.66 : Reports Q2 (Jun) loss of $0.50 per share, excluding $0.12 per share off additional costs associated with nonunion healthcare and pension, workers' comp and third-party casualty insurance claims, $0.23 worse than the First Call consensus of ($0.27); revenues fell 27.3% year/year to $362.6 mln vs the $377.2 mln consensus.
2:38AM Suncor Energy misses by C$0.13 (SU) 32.71 : Reports Q2 (Jun) earnings of C$0.20 per share, excluding non-recurring items, C$0.13 worse than the First Call consensus of C$0.33. Cash flow from operations was C$342 mln in Q2 vs C$1.405 bln in 2Q08. The decrease in earnings and cash flow was primarily due to lower price realizations, as benchmark commodity prices were significantly weaker in 2Q09 compared to the same period in 2008, and operating expenses were higher at oil sands due to increased production and sales. These were partially offset by the increased production in our oil sands business segment, reduced natural gas royalty expense due to lower benchmark commodity prices, and increased refined product sales in our downstream business segment. Co estimates FY09 oil sands production of 300,00 bpd (+5%/-10%). Co estimates FY09 natural gas production of 210 mmcf equivalent per day (+5%/-5%). On March 23, 2009 Suncor and Petro-Canada (PCZ) announced a merger and the cos intend to make the merger effective August 1, 2009.
2:14AM Energy Conversion Devices to acquire Solar Integrated Technologies (ENER) 12.84 : Co and Solar Integrated Technologies a provider of building integrated photovoltaic roofing systems, announce that they have signed a definitive agreement pursuant to which ENER will acquire Solar Integrated. Under the terms of the agreement, ENER will pay 6.75 pence in cash (or approx $0.11) for each share of Solar Integrated or approx $11.2 mln. Including the assumption of net debt obligations, the purchase price will be approx $16.3 mln.
1:26AM ATC Technology updates restructuring actions for Drivetrain business (ATAC) 15.95 : Co announces additional restructuring actions to reduce operating costs of its Drivetrain business resulting from the pending loss of the Honda transmission remanufacturing program that include additional workforce reductions and consolidation of certain warehousing activities. Co expects these actions to result in pre-tax charges of approx $1.5 mln or $0.05 per diluted share after tax in the second half of the year for severance and related costs. These charges are in addition to the previously announced pre-tax goodwill impairment charge of $37 mln, or $1.32 per share after tax, to be recorded in 2Q09. The co's announced restructuring actions, which are substantially complete, total $5.3 mln pre-tax or $0.17 per diluted share after tax YTD. Co expects Drivetrain revenues of $147-150 mln in 2009.
1:23AM IberiaBank beats by $0.02, beats on revs (IBKC) 41.20 : Reports Q2 (Jun) earnings of $0.53 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.51; revenues rose 24.6% year/year to $70.3 mln vs the $67 mln consensus.
1:18AM Hancock Holding beats by $0.04, beats on revs (HBHC) 33.62 : Reports Q2 (Jun) earnings of $0.43 per share, excluding non-recurring items, $0.04 better than the First Call consensus of $0.39; revenues rose 9.4% year/year to $94.1 mln vs the $87.9 mln consensus. Q2 net income was impacted by a higher level of net charge-offs compared to the first quarter. Co recorded net charge-offs of $16.0 mln, or 1.50% of average loans, in 2Q09 compared to $7.1 mln, or 0.67% of average loans, in the first quarter.
1:16AM Pinnacle Finl misses by $0.36, beats on revs (PNFP) 12.40 : Reports Q2 (Jun) loss of $1.33 per share, excluding non-recurring items, $0.36 worse than the First Call consensus of ($0.97); revenues rose 12.0% year/year to $41.1 mln vs the $40.3 mln consensus. Net loan growth during 2Q09 was $70 mln, compared to $119 mln reported in 1Q09. Net loan growth for Q2 was negatively impacted by net charge-offs of $44.6 mln. At June 30, 2009, Pinnacle's allowance for loan losses was 1.86% of total loans, compared to 1.30% at March 31, 2009, and 1.05% at June 30, 2008. Pinnacle also reported that core funding growth was $96 mln during 2Q09.
1:12AM On The Wires : Intel (INTC) announces the pricing of its offering of $1.75 bln principal amount of 3.25% junior subordinated convertible debentures due 2039.
1:11AM CVB Financial prices 19.7 mln common share offering at $5.85/share (CVBF) 6.26 :
1:10AM Wipro beats by $0.02, beats on revs (WIT) 13.48 : Reports Q1 (Jun) earnings of $0.14 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.12; revenues fell 3.7% year/year to $1.34 bln vs the $1.28 bln consensus. IT Services business segment recorded Revenue of $1.01 bln for our quarter ended June 30, 2009, representing an increase of 10% over the same period last year. EBIT for this segment was $224 mln for the quarter ended June 30, 2009, representing an increase of 17% over the same period last year. For 2Q10, co expects revenues from IT Services business to be in the range of $1,035-1,053 mln.
1:01AM Allegiant Travel misses by $0.01, beats on revs; increases stock repurchase program by $10 mln to $35 mln (ALGT) 45.80 : Reports Q2 (Jun) earnings of $1.17 per share, $0.01 worse than the First Call consensus of $1.18; revenues rose 12.5% year/year to $148 mln vs the $145.3 mln consensus. Allegiant Air expects 3Q09 year-over-year departure growth of approx 30% and ASM growth of approx 35%. Allegiant Air expects 4Q09 year-over-year departure and ASM growth of approx 20%. Co expects departure and ASM growth of at least 20% over 2008. Co expects to operate 46 aircraft by the end of 2009. Co's Board approved an increase of existing $25 mln authority in common stock repurchase program by $10 mln to a total of $35 mln.
1:00AM Juniper Networks and IBM expand relationship with OEM agreement (JNPR) 25.88 : Co and IBM (IBM) expand strategic relationship by entering into an OEM agreement that will enable IBM to provide Juniper's Ethernet networking products and support within IBM's data center portfolio of products.
http://finance.yahoo.com/marketupdate/inplay
Tuesday, July 21
SLM reports quarterly net loss of $123 mln(5:38 pm ET)
SAN FRANCISCO (MarketWatch) -- SLM Corp. (SLM: news, chart, profile) late Tuesday reported a second-quarter net loss of $123 million, or 23 cents a share, as the student loan giant recorded $484 million in unrealized losses on derivatives and hedging activities while setting aside $278 million in provisions for loan losses. A year earlier, SLM said it generated net income of $266 million, or 50 cents a share. SLM also reports "core" results, which don't adhere to generally accepted accounting principles. On that basis, SLM said it made a second-quarter profit of $170 million, or 31 cents a share, versus a profit of $156 million, or 27 cents a share, in the year-ago quarter. SLM shares fell 2.8% to $9.24 in after-hours action.
Nabors Industries swings to a loss (5:32 pm ET)
SAN FRANCISCO (MarketWatch) -- Oil drilling company Nabors Industries Ltd. (NBR: news, chart, profile) reported late Tuesday a second-quarter net loss of $193 million, or 68 cents a share. A year ago it posted net income of $176 million, or 60 cents a share. Excluding one-time items, Nabors' adjusted earnings totaled $91 million, or 32 cents a share. Revenue for the three months ended June 30 fell 33% to $878 million as drilling activity fell sharply on lower energy prices. Analysts polled by FactSet Research had predicted the Hamilton, Bermuda-registered company would report earnings of 27 cents a share on $921 million in revenue. The company warned operating income in the U.S. could fall another 50% in the third quarter while income from operations abroad was poised for second-half growth. Nabors shares fell 13 cents ahead of the report to close at $17.16. The stock is down 60% over the past 12 months.
Linear Technology quarterly profit down sharply(5:24 pm ET)
SAN FRANCISCO (MarketWatch) -- Linear Technology (LLTC: news, chart, profile) late Tuesday reported a fourth-quarter net income of $56.2 million, or 25 cents a share, down from $103.1 million, or 46 cents a share, a year earlier. Revenue decreased to $208 million from $307.1 million, the integrated circuit maker said. Analysts surveyed by FactSet Research had forecast earnings of 22 cents a share on revenue of $204 million. "Looking ahead to the September quarter, there is continued uncertainty in the marketplace and our customers continue to be cautious with their ordering patterns," the company said in a statment. The company expects revenue to rise 2% to 5% in the first quarter from the fourth quarter.
QLogic quarterly profit down nearly 50%(4:45 pm ET)
SAN FRANCISCO (MarketWatch) -- QLogic Corp. (QLGC: news, chart, profile) late Tuesday reported its fiscal first-quarter net income fell to $15 million, or 13 cents a share, compared with a net income of $31.6 million, or 24 cents a share, in the same period last year. On an adjusted basis, the networking equipment company would have earned $23.9 million, or 20 cents a share. Net revenue decreased to $122.8 million from $168.4 million a year earlier. Analysts had forecast earnings of 18 cents a share on revenue of $125.1 million, according to consensus estimates from FactSet Research.
Apple earnings jump 15% for third fiscal quarter(4:40 pm ET)
SAN FRANCISCO (MarketWatch) -- Apple Inc. (AAPL: news, chart, profile) on Tuesday reported a fiscal third-quarter profit of $1.23 billion, or $1.35 a share, on revenue of $8.34 billion. During the same period a year ago, Apple earned $1.07 billion, or $1.19 a share, on $7.46 billion in sales. The results beat the estimates of analysts surveyed by Thomson Reuters, who forecast Apple to earn $1.17 a share on revenue of $8.16 billion. Apple said its results were led by sales of 2.6 million Mac computers and 5.2 million iPhones. For its fourth quarter, Apple expects to earn $1.18 to $1.23 a share on revenue in a range of $8.7 billion to $8.9 billion.
C.H. Robinson posts higher profit; sales dip(4:33 pm ET)
SAN FRANCISCO (MarketWatch) -- C.H. Robinson Worldwide (CHRW: news, chart, profile) on Tuesday reported a second-quarter profit of $92 million, or 54 cents a share, up slightly from $90 million, or 52 cents a share, a year ago. Revenue fell 17% to $1.93 billion due primarily to lower volumes and fuel prices. Analysts polled by FactSet Research had expected the Minneapolis-based trucking company to post a profit, on average, of 52 cents a share and sales of $1.98 billion.
Nabors Industries swings to a second-quarter loss(4:33 pm ET)
SAN FRANCISCO (MarketWatch) -- Nabors Industries Ltd. (NBR: news, chart, profile) said late Tuesday that it swung to a second-quarter loss of $193 million, or 68 cents a share, from a profit of $176.4 million, or 60 cents a share, in the year-ago period. Excluding one-time items, the company would have reported a profit of 32 cents a share in the latest quarter. Revenue decreased to $878 million from $1.3 billion last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 27 cents a share on revenue of $920.8 million.
Boston Properties funds from operations $166.7 mln(4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- Boston Properties (BXP: news, chart, profile) said late Tuesday that second-quarter funds from operations came in at $166.7 million, or $1.32 a share. This compares to funds from operations of $141 million, or $1.16 a share, for the quarter ended June 30, 2008. Net income available to common shareholders was $67.2 million, or 53 cents a share, in the latest quarter, the real estate investment trust said.
Pactiv posts higher profit, raises outlook(4:26 pm ET)
SAN FRANCISCO (MarketWatch) -- Pactiv (PTV: news, chart, profile) on Tuesday reported a second-quarter profit of $96 million, or 73 cents a share, up from $61 million, or 46 cents a share, a year ago. Sales fell to $901 million from $951 million. Analysts polled by FactSet Research had expected a profit, on average, of 56 cents a share and sales of $855 million. The company, whose product line includes Hefty brand trash bags, raised its full-year forecast to a range of $2.37 to $2.45 a share. Wall Street previously forecast 2009 earnings of $2.22 a share.
VF Corp. profit falls 27% (4:24 pm ET)
SAN FRANCISCO (MarketWatch) -- Apparel giant VF Corp. (VFC: news, chart, profile) , whose brands include Wrangler, Lee and North Face, reported late Tuesday second-quarter net income fell to $75.5 million, or 68 cents a share, from $104 million, or 94 cents, a year ago. Revenue for the three months ended June 30 fell 11% to $1.49 billion. Analysts polled by FactSet Research had predicted the Greensboro, N.C.-based company would earn 57 cents a share on $1.53 billion in revenue. The company said it expects to earn between $4.70 and $5 a share for the full year, in line with analysts' expectations of $4.84. VF Corp. shares closed ahead of the report with a 1% loss at $60.59. The stock is down nearly 17% over the past 12 months.
Yahoo bucks expectations to post profit growth(4:21 pm ET)
SAN FRANCISCO (MarketWatch) - Yahoo Inc. (YHOO: news, chart, profile) said Tuesday its second-quarter net income rose to $143 million, or 10 cents a share, from $132.4 million, or 9 cents a share in the same period a year earlier. Net revenue in the period ended in June fell to $1.14 billion from $1.35 billion, the Sunnyvale, Calif.-based Internet giant said. Wall Street analysts on average had been expecting Yahoo to post second-quarter earnings of 8 cents a share and $1.14 billion in net revenue, according to data from Thomson Reuters.
Gilead quarterly profit rises to 61c vs. 45c(4:17 pm ET)
SAN FRANCISCO (MarketWatch) -- Gilead Sciences Inc. (GILD: news, chart, profile) said late Tuesday that its second-quarter profit increased to $571,398, or 61 cents a share, from $434,783, or 45 cents a share, in the year-ago period. Revenue increased to $1.65 billion from $1.29 billion last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 61 cents a share on revenue of $1.59 billion.
Starbucks swings to profit(4:14 pm ET)
SAN FRANCISCO (MarketWatch) -- Starbucks (SBUX: news, chart, profile) late Tuesday reported a third-fiscal-quarter profit of $151.5 million, or 20 cents a share. A year ago, the coffee retailer lost $6.7 million, or 1 cent a share, due to charges to cover store closures and workforce cuts. Sales fell to $2.4 billion in the recently completed quarter from a year-earlier $2.6 billion. Analysts had pegged Starbucks to earn 19 cents a share on sales of $2.37 billion, according to FactSet Research. Traffic at Starbucks stores has improved from earlier this year. Sales at stores open a year or more fell 5% during the quarter, compared with an 8% decline for quarter ended March 29. In addition, the Seattle-based company said it plans to cut $550 million in annual costs, up from its previous savings target of $500 million. Starbucks shares have steamed 55% higher this year. The stock closed Tuesday at $14.69.
Stryker posts flat per-share profit, sales dip(4:09 pm ET)
SAN FRANCISCO (MarketWatch) -- Stryker Corp. (SYK: news, chart, profile) on Tuesday reported a second-quarter profit of $291 million, or 73 cents a share, down from $306 million, or 73 cents a share, a year earlier. Sales came in at $1.63 billion compared with $1.71 billion a year ago. Analysts polled by FactSet Research had expected a profit, on average, of 72 cents a share and revenue of $1.65 billion. The medical equipment maker said it expects to post a profit of $2.90 to $3.10 a share for the full year. Wall Street previously forecast a 2009 profit of $2.96 a share.
Seagate swings to loss on restructuring charges(4:09 pm ET)
SAN FRANCISCO (MarketWatch) -- Seagate Technology said Tuesday that it swung to a net loss for the fourth fiscal quarter on a drop in sales as well as large restructuring charges. The maker of hard disk drives and other data storage products (STX: news, chart, profile) reported a net loss of $81 million, or 16 cents a share, for the period ended July 3. This compares to earnings of $160 million, or 32 cents a share, for the same period last year. The results include charges of $106 million, or approximately 22 cents per share, from write-offs as well as restructuring. Revenue fell 19% to $2.35 billion for the quarter. Analysts were expecting a net loss of 10 cents a share on revenue of $2.25 billion, according to consensus estimates from Thomson Reuters.
Banking stocks feel pressure from Comerica, Region(9:43 am ET)
NEW YORK (MarketWatch) -- U.S. financial stocks fell Tuesday morning with shares of Comerica Inc. (CMA: news, chart, profile) and Regions Financial Corp. (RF: news, chart, profile) adding to the selling pressure after their second-quarter earnings releases showed the firms are banking that credit losses will remain on the rise. The sector's benchmark exchange-traded fund, Financial Select Sector SPDR Fund (XLF: news, chart, profile) , was down 0.7% to 12.16. Shares of Comerica and Regions Financial were off 7.1% and nearly 11%, respectively.
McClatchy CEO: 'We won't violate covenants in '09'(9:39 am ET)
CHICAGO (MarketWatch) -- McClatchy Co. (MNI: news, chart, profile) Chief Executive Gary Pruitt said Tuesday that the company will not violate its bank covenants this year, even if its advertising sales don't improve in 2009. Pruitt's remarks came in a statement issued in conjunction with the newspaper publisher's second quarter earnings report. There had been increasing speculation that the company could go into default and possible bankruptcy this year. In the second quarter, McClatchy earned $42.2 million, or 50 cents a share, compared with a profit of $20 million, or 24 cents, in the same quarter a year ago. Excluding discontinued operations and special items, McClatchy would have earned $17.3 million, or 21 cents a share, in the latest three months. Revenue plunged 25% to $365.3 million, reflecting a 30% decline in ad revenues. Analysts polled by Thomson Reuters were expecting revenue of $369 million.
Tech stocks get off to mixed early start(9:35 am ET)
SAN FRANCISCO (MarketWatch) -- Technology stocks put in a mixed early performance Tuesday as the market awaited earnings reports from Apple Inc. (AAPL: news, chart, profile) , Yahoo Inc. (YHOO: news, chart, profile) and Advanced Micro Devices Inc. (AMD: news, chart, profile) after the closing bell. Texas Instruments Inc. (TXN: news, chart, profile) shares fell 40 cents to $23.22 after the chipmaker reported a drop in its second-quarter earnings late Monday. The tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) rose 4.3 points to 1,913.
UAL posts profit on fuel hedge gains, cost cuts(9:09 am ET)
CHICAGO (MarketWatch) -- UAL Corp. (UAUA: news, chart, profile) said Tuesday that it swung to a second-quarter profit on fuel hedge gains and a 52% reduction in costs. The parent of United Airlines said it earned $28 million, or 19 cents a share, in the latest three months. In the same quarter a year ago, it posted a loss of $2.74 billion, or $21.57 a share. Excluding items, UAL said it would have lost $323 million, or $2.23 a share, in the second quarter of 2009. Revenue fell 25% to $4.02 billion. Analysts surveyed by Thomson Reuters were expecting an adjusted loss of $2.61 a share on revenue of $4.04 billion. Operating expenses fell to $3.91 billion from $8.1 billion. UAL expects to cut international capacity by 7% during the last four months of 2009 to "better match supply with demand." The company also now expects cost-per-available seat mile to be in a range from down 0.5% to up 0.5% for the full year 2009, excluding fuel, profit sharing and other charges. The new outlook represents a $150 million improvement compared with the forecast UAL issued in April.
Sherwin-Williams posts lower quarterly profit(9:09 am ET)
NEW YORK (MarketWatch) -- Sherwin-Williams Co. (SHW: news, chart, profile) said Tuesday that its second-quarter earnings were $158 million, or $1.35 a share, compared to $172 million, or $1.45 a share, in the same period a year ago. Sales were $1.95 billion compared to the year-earlier $2.23 billion. Analysts polled by FactSet Research estimated, on average, earnings of $1.32 a share and sales of $1.99 billion. The Cleveland, Ohio-based paint company expects earnings of $1.15 to $1.45 a share for the third quarter and $3.30 to $3.80 for the full year.
AK Steel swings to second-quarter loss(8:42 am ET)
NEW YORK (MarketWatch) -- AK Steel (AKS: news, chart, profile) said Tuesday that it lost $47.2 million, or 43 cents a share, in the second quarter, compared to a profit of $145.2 million, or $1.29 a share, in the year-earlier period. Analysts polled by FactSet Research estimated, on average, a loss of 51 cents a share. Net sales fell to $794 million from $2.24 billion. For the third quarter, the West Chester, Ohio-based specialty steel maker expects to roughly break even in operating profit.
Hudson City Bancorp reports profit rise(8:22 am ET)
NEW YORK (MarketWatch) -- Hudson City Bancorp Inc. (HCBK: news, chart, profile) said Tuesday that its second-quarter profit rose 15.5% to $127.9 million, or 26 cents a share, from $110.7 million, or 22 cents a share, in the year-ago period. Analysts surveyed by FactSet Research had expected, on average, earnings per share of 26 cents. The Paramus, N.J.,-based parent of Hudson City Savings Bank also declared a quarterly dividend of 15 cents a share, up from 11 cents a share in the second quarter of 2008.
Precision Castparts net income shrinks 12.8%(8:16 am ET)
NEW YORK (MarketWatch) -- Precision Castparts Corp. (PCP: news, chart, profile) said Tuesday first-quarter net income fell to $240.4 million, or $1.70 a share, from $275.8 million, or $1.96 a share in the year-ago period. The Portland, Ore.-based industrial firm said sales dropped to $1.38 billion from $1.81 billion. Wall Street analysts expected earnings of $1.78 a share and sales of $1.64 billion, according to a survey by FactSet Research. The company said it's seeing further signs of a bottom in the economy and that it expects a better second half of the year. "In line with what we stated at the end of last quarter, inventory destocking across our aerospace operations was going to impact sales both in the first and second quarter," the company said. "As we look beyond Q2, this situation stabilizes."
Peabody Energy profit falls (8:17 am ET)
NEW YORK (MarketWatch) -- Peabody Energy Corp. (BTU: news, chart, profile) said on Tuesday that its net income available to common shareholders was $79.2 million, or 29 cents a share in the second quarter, compared to $233 million, or 85 cents a share a year ago. Revenue in the quarter fell to $1.34 billion, from $1.53 billion a year ago. The company reported adjusted earnings per share of 49 cents, versus 50 cents a year ago. Analysts polled by Thomson Reuters had expected the company to earn 49 cents a share.
Forest Lab earnings rise to 87 cents a share(8:13 am ET)
NEW YORK (MarketWatch) -- Forest Laboratories Inc. (FRX: news, chart, profile) said Tuesday that fiscal first-quarter earnings were $263 million, or 87 cents a share, compared to $243 million, or 79 cents a share in the same period a year ago. Revenue grew 4.3% to $1 billion from $967 million. Analysts polled by FactSet Research estimated, on average, earnings per share of 82 cents and sales of $1 billion.
Freeport-McMoRan net income down 38%(8:08 am ET)
NEW YORK (MarketWatch) -- Freeport-McMoRan Copper & Gold Inc. (FCX: news, chart, profile) said Tuesday its second-quarter net income fell to $588 million, or $1.38 a share from $947 million, or $2.25 a share in the year-ago period. Revenue fell to $3.68 billion from $5.44 billion. Wall Street analysts expected earnings of 63 cents a share on revenue of $3.35 billion, according to a survey by FactSet Research. Looking out at the balance of 2009, the Phoenix based mining giant expects sales from mines of 3.9 billion pounds of copper, 2.4 million ounces of gold and 56 million pounds of molybdenum for the year. For the third quarter, it expects 910 million pounds of copper, 550 thousand ounces of gold and 15 million pounds of molybdenum.
Regions swings to loss (7:55 am ET)
NEW YORK (MarketWatch) -- Regions Financial Corp. (RF: news, chart, profile) on Tuesday posted a loss of $188 million, or 28 cents a share, compared with a year-earlier profit of $206 million, or 30 cents a share. A survey of analysts by Thomson Reuters predicted a 22-cent loss. Loan-loss provisions surged to $912 million from $309 million a year earlier.
State Street swings to loss on conduit charges(7:52 am ET)
BOSTON (MarketWatch) -- State Street Corp. (STT: news, chart, profile) on Tuesday reported a second-quarter net loss of $3.31 billion, or $7.12 a share, compared with profit of $548 million, or $1.35 a share, in the year-ago period. The Boston-based financial-services giant said the latest quarter's results included a loss of $7.91 a share to move troubled investment vehicles known as conduits that issued asset-backed commercial paper onto its balance sheet. The company also booked a charge of 23 cents a share related to paying back funds it borrowed under the government's financial bailout.
Caterpillar raises 2009 profit outlook (7:47 am ET)
NEW YORK (MarketWatch) -- Caterpillar Inc. [s; c] on Tuesday raised its profit outlook for 2009 to a range of 40 cents a share to $1.50 a share, including redundancy costs. Excluding redundancy costs, profit is forecast to be between $1.15 and $2.25 per share. The firm also narrowed the range of its internal sales and revenue expectations to $32 to $36 billion. "As tough as this year has been, the improved profit outlook is a tangible sign of what happens when the entire team is pulling in the same direction and deploying the trough strategy we put in place over the past four years," Chief Executive Officer Jim Owens, said in a press release.
Lockheed Martin net down 17% on pension expenses(7:44 am ET)
LONDON (MarketWatch) -- Defense contractor Lockheed Martin (LMT: news, chart, profile) said its second-quarter net income fell 17% to $734 million, or $1.88 a share, hurt by higher pension expenses. Sales edged up to $11.24 billion from $11.04 billion, helped by increased combat aircraft sales. Analysts polled by FactSet had forecast earnings of $1.81 a share on sales of $11.16 billion. For the year, the company is sticking to its view of earnings per share between $7.15 and $7.35 and revenue between $44.7 billion and $45.7 billion, though its pretax earnings view was reduced.
Monday, July 20
Boston Scientific posts higher quarterly profit(5:46 pm ET)
SAN FRANCISCO (MarketWatch) -- Boston Scientific Corp. (BSX: news, chart, profile) late Monday reported a second-quarter net income of $158 million, or 10 cents a share, compared with a net income of $98 million, or 7 cents a share, a year earlier. Excluding items, the medical device maker said it would have earned 20 cents a share. Net sales rose marginally to $2.07 billion from $2.02 billion. Analysts, on average, had expected Boston Scientific to post earnings of 13 cents a share on revenue of $2.04 billion, according to FactSet Research. The company forecasted net sales of $2 billion to $2.1 billion and earnings of 8 cents to 13 cents a share in the third quarter. On an adjusted basis, it sees earnings of 17 cents and 21 cents a share.
Bemis to offer 7.5 mln in common shares(4:29 pm ET)
SAN FRANCISCO (MarketWatch) -- Bemis Co. (BMS: news, chart, profile) said late Monday it is offering 7,500,000 of common shares. The company will grant the underwriters an option for 30 days to purchase up to 1.1 million additional shares to cover over-allotments. Bemis plans to use the proceeds from the equity offering to fund a portion of its purchase of Alcan Packaging Food Americas, a business unit of Rio Tinto (RTP: news, chart, profile) .
Zions reports quarterly loss of $40.7 million(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Zions Bancorporation (ZION: news, chart, profile) reported a second-quarter loss of $40.7 million, or 35 cents a share, late Monday. That compares to a profit of $69.7 million, or 65 cents a share, a year earlier. Zions said it set aside $762.7 million in provisions for loan losses during the second quarter, up from $297.6 million for the first quarter of 2009 and $114.2 million in the second quarter of 2008. Zions was expected to lose $1.02 a share in the latest period, according to 14 analysts polled by Thomson Reuters.
Legg Mason earnings improve in first quarter(4:19 pm ET)
SAN FRANCISCO (MarketWatch) -- Legg Mason Inc. (LM: news, chart, profile) late Monday reported first-quarter earnings of $50.1 million, or 35 cents a share, recovering from a loss of $36.1 million, or 26 cents a share, a year earlier. Operating revenue decreased to $613.1 million from $1.1 billion in the same period last year. Analysts surveyed by FactSet Research had forecast earnings of 21 cents a share on revenue of $612.1 million in the quarter. Assets under management at the end of the quarter were up 4% to $656.9 billion from $632.4 billion at the end of the fourth quarter of fiscal 2009, and $948.5 billion at the end of the first quarter of fiscal 2009, the asset manager said.
M&T Bank second-quarter net income down 68%(8:25 am ET)
NEW YORK (MarketWatch) -- M&T Bank Corp. (MTB: news, chart, profile) announced Monday that it earned $51.2 million, or 36 cents a share, in the second-quarter ending June 30, compared with net income of $160.3 million, or $1.45 a share, in the year-ago period. Analysts polled by FactSet Research, on average, expected the Buffalo, N.Y.-based bank to earn 61 cents a share in the second-quarter. Certain expenses associated with the completed acquisition of Provident Bankshares Corp. during the quarter cost M&T $40 million, or 35 cents a share, the company said. Also, M&T incurred a $32.5 million special assessment from the Federal Deposit Insurance Corp., lowering after-tax earnings per share by 17 cents.
Entergy to fall short of earnings target(7:52 am ET)
NEW YORK (MarketWatch) -- Entergy Corp. (ETR: news, chart, profile) on Monday warned its second-quarter net income would fall below Wall Street estimates as the power company made planned and unplanned outages at its nuclear plants. The New Orleans firm also cited recognition of an impairment for decommissioning trust investments. Entergy expects second-quarter operating earnings of $1.22 a share, compared to the Wall Street estimate of $1.50 a share in a survey of analysts by FactSet Research. In the year-ago period, Entergy posted operating earnings of $1.46 a share. Entergy said it expects 2009 operating earnings of $6.20 to $6.80 per share, lower than its earlier view of $6.70 to $7.30 a share.
Halliburton net income down 48%(7:21 am ET)
NEW YORK (MarketWatch) -- Halliburton Co. (HAL: news, chart, profile) said Monday second-quarter net income fell 48% to $262 million, or 29 cents a share, from $504 million, or 55 cents a share in the year-ago period. The Houston-based oil service firm's adjusted net income totaled 30 cents a share excluding employee separation costs of $12 million, or a penny a share. Revenue dropped to $3.5 billion from $3.9 billion. Wall Street analysts expected earnings of 27 cents a share and revenue of $3.45 billion, according to a survey by FactSet Research. "Weak global demand and volatility in the commodity markets continue to weigh on the oilfield services industry," Halliburton said. "The worldwide average rig count decreased 25% sequentially, further weakening industry fundamentals during the second quarter."
Eaton cuts guidance as profit falls 91%(7:21 am ET)
LONDON (MarketWatch) -- Diversified industrial manufacturer Eaton Corp. (ETN: news, chart, profile) said Monday that its second-quarter net profit fell 91% to $29 million, or 17 cents a share, from $333 million, or $2.03 a share, as it also lowered its guidance for the year. Net sales for the quarter fell 32% to $2.9 billion. Excluding charges for the integration of acquisitions, operating earnings in the quarter were 23 cents a share. Analysts polled by FactSet had been expecting earnings of 18 cents a share on revenue of $3.03 billion. Eaton said significant destocking had continued in virtually all its segments during the quarter and added end markets are now expected to be considerably weaker than it had forecast. The group cuts its net earnings guidance for the year to a range of $1.65 to $1.85 a share. It had previously forecast earnings per share of $2.10 to $2.60. For the third quarter the group expects earnings of 80 cents to 90 cents a share.
Weatherford net income falls 89%, below estimates(7:12 am ET)
NEW YORK (MarketWatch) -- Weatherford International Ltd. (WFT: news, chart, profile) on Monday said second-quarter net income fell 89% to $42 million, or 6 cents a share, from $371 million, or 54 cents a share in the year-ago period. The oil service firm said adjusted net income in the latest period totaled 10 cents a share. The Geneva, Switzerland-based company cited record low seasonal activity in Canada and greater-than-anticipated pricing declines in both the United States and Canada. Revenue fell 11% to $2 billion. Wall Street analysts expected earnings of 16 cents a share on revenue of $2.18 billion, according to a survey by FactSet Research.
Hasbro profit up 5%; firm lowers JV cost estimate(6:38 am ET)
LONDON (MarketWatch) -- Toy maker Hasbro (HAS: news, chart, profile) said its second-quarter net profit rose 5% to $39.3 million, or 26 cents a share, with revenue up 1% to $792.2 million. Reduced expenses also helped increase the profit for the maker of G.I. Joe and Transformers toys. The quarter included a 6 cents a share hit from investing in a joint venture with Discovery Communications and financing costs. Analysts polled by FactSet expected earnings of 24 cents a share. The company now sees a smaller dilution from the Discovery venture, expecting a 15-to-20 cents a share hit this year and a 25-to-30 cent hit next year, compared to previous guidance of a 25-to-30 cents hit in 2009 and a 30-to-35 cents negative impact in 2010.
Boliden profit up 82% on revaluation(6:21 am ET)
LONDON (MarketWatch) -- Swedish miner Boliden (SE:BOL: news, chart, profile) reported a 82% improvement in second-quarter profit to 432 million krona ($55 million), helped by a revaluation of smelters' process stocks. Excluding that, its operating profit fell 10% to 477 million krona, with revenue down 18% to 6.44 billion krona. China's increased demand for base metals had a positive effect on price trends during the quarter, and European demand improved slightly toward the end in part due to stockpiling by customers. Cast zinc production fell 11% and copper production fell 20%.
SEB swings to loss after Baltic write-offs(2:31 am ET)
LONDON (MarketWatch) -- Sweden's Skandinaviska Enskilda Banken (SE:SEBA: news, chart, profile) said Monday that it swung to a second-quarter net loss of 193 million kronor ($24.8 million) from a profit of 2.81 billion kronor a year earlier, due to a goodwill write-off and rising loan impairments. The group said provisions for credit losses jumped to 3.57 billion kronor from 448 million kronor a year earlier, with the Baltic countries accounting for 2.64 billion kronor of the provisions. It also wrote off 2.32 billion kronor of goodwill from acquisitions in the Baltic countries due to the economic situation in the region. Analysts polled by Dow Jones Newswires had been expecting a net profit of around 638 million kronor. The group said operating income increased by 27% to 13.17 billion kronor.
Friday, July 17
CIT soars on report of financing talks with banks(12:49 pm ET)
SAN FRANCISCO (MarketWatch) -- CIT Group Inc. (CIT: news, chart, profile) shares soared during Friday afternoon trading after Reuters reported that the troubled lender is in talks with J.P. Morgan Chase (JPM: news, chart, profile) and Goldman Sachs (GS: news, chart, profile) for short-term financing of $2 billion to $3 billion. CIT shares jumped 40 cents to 81 cents in afternoon action on Friday. A CIT spokesman didn't immediately respond to a phone call and email seeking comment.
Wilmington Trust warns of lower Q2 earnings (11:26 am ET)
LOS ANGELES (MarketWatch) -- Wilmington Trust Corp. (WL: news, chart, profile) on Friday warned of lower second-quarter earnings, citing an increase in the provision for loan losses, among other items. The company expects the provision for loan losses to rise to $54 million from $29.5 million in the first quarter primarily because of an increase in nonperforming loans and an expected rise in net charge-offs to $36 million from the first quarter. Analysts polled by Thomson Reuters currently expect second-quarter earnings of 9 cents a share. Wilmington Trust also said the quarterly results will show that the company remains well-capitalized.
Citi CEO: growth in consumer losses moderating(11:23 am ET)
SAN FRANCISCO (MarketWatch) -- Citigroup Inc. (C: news, chart, profile) Chief Executive Vikram Pandit said Friday that consumer losses at the financial-services giant may be growing more slowly. Credit card and mortgage losses are "elevated" because of the deep recession, but "it seems as though the rate of growth in these consumer losses may be moderating," Pandit said during a conference call with analysts. That "has implications for future additions to reserves," he added.
Energy stocks retreat at the open(9:40 am ET)
NEW YORK (MarketWatch) -- Energy stocks fell back on Friday after recent gains. The Amex Oil Index (XOI: news, chart, profile) fell 0.7% to 912. The Amex Natural Gas Index (XNG: news, chart, profile) fell 0.9% to 419. The Philadelphia Oil Service Index ($OSX: news, chart, profile) dropped 1.6% to 162.
B. of A., Citi results propel banking sector(9:32 am ET)
NEW YORK (MarketWatch) -- Second-quarter earnings results from two leading financial firms, Bank of America Corp. (BAC: news, chart, profile) and Citigroup Inc. (C: news, chart, profile) , were enough to lift the broader sector higher Friday, as both companies topped Wall Street's consensus estimates. Shares of B. of A. and Citi were up 0.2% and nearly 4%, respectively. The sector's benchmark exchange-traded fund, Financial Select Sector SPDR Fund (XLF: news, chart, profile) , was up 0.25% to 12.25.
Bemis earnings inch higher to 47 cents a share(8:20 am ET)
NEW YORK (MarketWatch) -- Bemis Co. (BMS: news, chart, profile) said Friday that it earned $49 million, or 47 cents a share, compared to $46 million, or 45 cents a share, in the same period a year ago. Results were affected by a 3 cent a share charge primarily for acquisition-related costs. Net sales were $866 million, an 11.6% decrease from $980 million a year earlier. Analysts polled by Fact Set Research estimated, on average, earnings per share of 45 cents and sales of $894 million. For the third quarter, the Neenah, Wis.-based packaging company sees earnings per share in the range of 38 cents to 43 cents a share.
Citigroup posts profit after Smith Barney gains(8:05 am ET)
NEW YORK (MarketWatch) -- Citigroup Inc (C: news, chart, profile) said on Friday that it posted a second quarter profit of $4.3 billion, or 49 cents a share, which includes an $11 billion pre-tax gain from its joint venture with Smith Barney, which closed on June 1. Analysts polled by Thomson Reuters had expected the company to lose 37 cents a share in the quarter. Revenue in the quarter was $30 billion. Last year, the company said it lost $2.5 billion, or 55 cents a share in the second quarter.
Marathon sells stake to Chinese for $1.3 billion(7:20 am ET)
NEW YORK (MarketWatch) -- Marathon Oil (MRO: news, chart, profile) on Friday said it's selling a 20% interest in the Angola Block 32 field off the coast of Africa to Chinese oil giants CNOOC International Ltd. (CEO: news, chart, profile) and Sinpoec (SNP: news, chart, profile) for $1.3 billion. Marathon will continue to hold a 10% stake in Block 32, where the company has announced 11 successful exploration wells. Other stakeholders in the area include Total SA (TOT: news, chart, profile) Sonangol, Esso Exploration and Production Angola and Petrogal.
First Horizon posts $123.2 mln second-quarter loss(7:08 am ET)
LONDON (MarketWatch) -- First Horizon National Corp. (FHN: news, chart, profile) on Friday said its second quarter net loss totaled $123.2 million, or 58 cents a share, compared to a loss of $19.1 million, or 10 cents a share, in the same period last year. Analysts surveyed by FactSet Research produced a consensus forecast of a loss of 31 cents a share. The Memphis-based regional bank said total revenue fell 23% from the second quarter of last year to $491.4 million. First Horizon CEO Bryan Jordan, in a news release, said the long-term earnings power of the bank's core franchises remained solid and were capable of delivering 15% to 20% returns on equity.
Vopak rises on prediction of 'robust' profit(3:29 am ET)
LONDON (MarketWatch) -- Tank terminal operator Vopak (NL:VPK: news, chart, profile) climbed in early Amsterdam trade as the company said it expects a "robust" operator profit of close to 100 million euros ($140 million) for the second quarter. First half adjusted operating profit will be around 185 million euros, up 18% from the prior period. All divisions except for chemicals in Europe, Middle East and Africa drove the improvement. The firm cited high occupancy rates and "healthy" demand for storage and handling services.
Accor shares slump after 9% sales drop(3:24 am ET)
LONDON (MarketWatch) -- French hotels group Accor (FR:AC: news, chart, profile) dropped sharply in early Paris trade after reporting a 9% drop in second-quarter revenue, to 1.79 billion euros, with comparable sales down 10.1%. It said the global economic situation is "still extremely depressed," that prepaid services comparable revenue will be "slightly positive" as interest income will drop by more than 25% in the second half and said there was low visibility in the hotels business.
Thursday, July 16
IBM reports earnings rise 12%(4:20 pm ET)
SAN FRANCISCO (MarketWatch) -- IBM Corp. (IBM: news, chart, profile) on Thursday reported a second-quarter profit of $3.1 billion, or $2.32 a share, on revenue of $23.3 billion. Analysts surveyed by FactSet Research had forecast IBM to earn $2.01 a share on $23.56 billion in sales. During the same period a year ago, IBM earned $2.8 billion, or $1.97 a share, on revenue of $26.8 billion. IBM also raised its full-year earnings forecast to at least $9.70 a share from $9.20 a share.
Google tops views with second-quarter profit(4:05 pm ET)
SAN FRANCISCO (MarketWatch) - Google Inc. (GOOG: news, chart, profile) on Thursday said its second-quarter net income rose to $1.48 billion, or $4.66 a share, from $1.25 billion, or $3.92 a share in the same period a year earlier. Net revenue in the period ended in June rose to $4.07 billion from $3.9 billion, Google said. Excluding special items, earnings were $5.36 a share. Wall Street analysts had expected Google to post earnings excluding special items of $5.09 a share, and $4.06 billion in net revenue, according to data from Thomson Reuters.
CDC Software files $62 million IPO(9:33 am ET)
NEW YORK (MarketWach) -- CDC Software Corp. on Thursday filed to raise up to $62.4 million in an initial public offering of 4.8 million American depositary shares at an estimated price range of $11-$13 each. The Hong Kong-based maker of business software will remain a unit of CDC Corp. (CHINA: news, chart, profile) after the offering. CDC Software expects to trade on the Nasdaq under the symbol CDCS. Lazard Capital Markets and JMP Securities are underwriting the deal.
Genuine Parts posts lower quarterly profit(9:19 am ET)
NEW YORK (MarketWatch) -- Genuine Parts Co. (GPC: news, chart, profile) said Thursday that its second-quarter profit fell to $103 million, or 65 cents a share, from $133 million, or 81 cents a share, in the year-earlier period. Sales at the distributor of automotive-replacement parts fell to $2.54 billion from $2.87 billion. "We are not satisfied with our results for the second quarter and first half of 2009, but feel that they reflect the realities of a difficult economy," said Thomas Gallagher, the company's chairman and chief executive officer, in a statement.
J.P. Morgan first half provisions doubled vs 2008 (8:35 am ET)
NEW YORK (MarketWatch) -- J.P. Morgan Chase (JPM: news, chart, profile) has set aside $16.63 billion for credit loss provisions since the beginning of the year, according to the firm's Thursday earnings report for the second quarter. The company said it set aside $8.03 billion in loss provisions in the second quarter, after putting away $8.60 billion in the first quarter. In the first half of 2008, J.P. Morgan set aside $7.88 billion for loan losses.
PPG net income falls 42%; sales hit by currency(8:14 am ET)
NEW YORK (MarketWatch) -- PPG Industries (PPG: news, chart, profile) said Thursday second-quarter net income fell to $146 million, or 89 cents a share, from $250 million, or $1.52 a share in the year-ago period. Adjusted net income at the Pittsburgh-based maker of paints, optical products and coatings said adjusted net income for the quarter totaled 91 cents a share. Sales dropped 30% to $3.1 billion. Currency conversion accounted for more than 40%of the sales decline, and the company also realized lower volumes in the automotive refinish business. Analysts expected earnings of 74 cents a share on revenue of $3.28 billion, according to a survey by FactSet Research. "Looking ahead to the third quarter, we expect overall market demand to improve, but only mildly," the company said. "We expect sequential improvement in the U.S. automotive original equipment manufacturing market, but we expect the opposite for commodity chemicals."
Biogen Idec earnings per share drop to 49 cents(7:42 am ET)
NEW YORK (MarketWatch) -- Biogen Idec Inc. (BIIB: news, chart, profile) said Thursday that second-quarter earnings fell to $143 million, or 49 cents a share, compared to $207 million, or 71 cents, in the same period a year ago. Revenue was $1.1 billion, compared to $993 million. Adjusted earnings per share were 75 cents. Analysts polled by FactSet Research estimated, on average, earnings per share of 79 cents and sales of $1.1 billion. Biogen sees revenue growth in the high single digits in 2009 and adjusted earnings per share above $3.85.
Friday, July 17
CIT soars on report of financing talks with banks(12:49 pm ET)
SAN FRANCISCO (MarketWatch) -- CIT Group Inc. (CIT: news, chart, profile) shares soared during Friday afternoon trading after Reuters reported that the troubled lender is in talks with J.P. Morgan Chase (JPM: news, chart, profile) and Goldman Sachs (GS: news, chart, profile) for short-term financing of $2 billion to $3 billion. CIT shares jumped 40 cents to 81 cents in afternoon action on Friday. A CIT spokesman didn't immediately respond to a phone call and email seeking comment.
Wilmington Trust warns of lower Q2 earnings (11:26 am ET)
LOS ANGELES (MarketWatch) -- Wilmington Trust Corp. (WL: news, chart, profile) on Friday warned of lower second-quarter earnings, citing an increase in the provision for loan losses, among other items. The company expects the provision for loan losses to rise to $54 million from $29.5 million in the first quarter primarily because of an increase in nonperforming loans and an expected rise in net charge-offs to $36 million from the first quarter. Analysts polled by Thomson Reuters currently expect second-quarter earnings of 9 cents a share. Wilmington Trust also said the quarterly results will show that the company remains well-capitalized.
Citi CEO: growth in consumer losses moderating(11:23 am ET)
SAN FRANCISCO (MarketWatch) -- Citigroup Inc. (C: news, chart, profile) Chief Executive Vikram Pandit said Friday that consumer losses at the financial-services giant may be growing more slowly. Credit card and mortgage losses are "elevated" because of the deep recession, but "it seems as though the rate of growth in these consumer losses may be moderating," Pandit said during a conference call with analysts. That "has implications for future additions to reserves," he added.
Energy stocks retreat at the open(9:40 am ET)
NEW YORK (MarketWatch) -- Energy stocks fell back on Friday after recent gains. The Amex Oil Index (XOI: news, chart, profile) fell 0.7% to 912. The Amex Natural Gas Index (XNG: news, chart, profile) fell 0.9% to 419. The Philadelphia Oil Service Index ($OSX: news, chart, profile) dropped 1.6% to 162.
B. of A., Citi results propel banking sector(9:32 am ET)
NEW YORK (MarketWatch) -- Second-quarter earnings results from two leading financial firms, Bank of America Corp. (BAC: news, chart, profile) and Citigroup Inc. (C: news, chart, profile) , were enough to lift the broader sector higher Friday, as both companies topped Wall Street's consensus estimates. Shares of B. of A. and Citi were up 0.2% and nearly 4%, respectively. The sector's benchmark exchange-traded fund, Financial Select Sector SPDR Fund (XLF: news, chart, profile) , was up 0.25% to 12.25.
Bemis earnings inch higher to 47 cents a share(8:20 am ET)
NEW YORK (MarketWatch) -- Bemis Co. (BMS: news, chart, profile) said Friday that it earned $49 million, or 47 cents a share, compared to $46 million, or 45 cents a share, in the same period a year ago. Results were affected by a 3 cent a share charge primarily for acquisition-related costs. Net sales were $866 million, an 11.6% decrease from $980 million a year earlier. Analysts polled by Fact Set Research estimated, on average, earnings per share of 45 cents and sales of $894 million. For the third quarter, the Neenah, Wis.-based packaging company sees earnings per share in the range of 38 cents to 43 cents a share.
Citigroup posts profit after Smith Barney gains(8:05 am ET)
NEW YORK (MarketWatch) -- Citigroup Inc (C: news, chart, profile) said on Friday that it posted a second quarter profit of $4.3 billion, or 49 cents a share, which includes an $11 billion pre-tax gain from its joint venture with Smith Barney, which closed on June 1. Analysts polled by Thomson Reuters had expected the company to lose 37 cents a share in the quarter. Revenue in the quarter was $30 billion. Last year, the company said it lost $2.5 billion, or 55 cents a share in the second quarter.
Marathon sells stake to Chinese for $1.3 billion(7:20 am ET)
NEW YORK (MarketWatch) -- Marathon Oil (MRO: news, chart, profile) on Friday said it's selling a 20% interest in the Angola Block 32 field off the coast of Africa to Chinese oil giants CNOOC International Ltd. (CEO: news, chart, profile) and Sinpoec (SNP: news, chart, profile) for $1.3 billion. Marathon will continue to hold a 10% stake in Block 32, where the company has announced 11 successful exploration wells. Other stakeholders in the area include Total SA (TOT: news, chart, profile) Sonangol, Esso Exploration and Production Angola and Petrogal.
First Horizon posts $123.2 mln second-quarter loss(7:08 am ET)
LONDON (MarketWatch) -- First Horizon National Corp. (FHN: news, chart, profile) on Friday said its second quarter net loss totaled $123.2 million, or 58 cents a share, compared to a loss of $19.1 million, or 10 cents a share, in the same period last year. Analysts surveyed by FactSet Research produced a consensus forecast of a loss of 31 cents a share. The Memphis-based regional bank said total revenue fell 23% from the second quarter of last year to $491.4 million. First Horizon CEO Bryan Jordan, in a news release, said the long-term earnings power of the bank's core franchises remained solid and were capable of delivering 15% to 20% returns on equity.
Vopak rises on prediction of 'robust' profit(3:29 am ET)
LONDON (MarketWatch) -- Tank terminal operator Vopak (NL:VPK: news, chart, profile) climbed in early Amsterdam trade as the company said it expects a "robust" operator profit of close to 100 million euros ($140 million) for the second quarter. First half adjusted operating profit will be around 185 million euros, up 18% from the prior period. All divisions except for chemicals in Europe, Middle East and Africa drove the improvement. The firm cited high occupancy rates and "healthy" demand for storage and handling services.
Accor shares slump after 9% sales drop(3:24 am ET)
LONDON (MarketWatch) -- French hotels group Accor (FR:AC: news, chart, profile) dropped sharply in early Paris trade after reporting a 9% drop in second-quarter revenue, to 1.79 billion euros, with comparable sales down 10.1%. It said the global economic situation is "still extremely depressed," that prepaid services comparable revenue will be "slightly positive" as interest income will drop by more than 25% in the second half and said there was low visibility in the hotels business.
Thursday, July 16
IBM reports earnings rise 12%(4:20 pm ET)
SAN FRANCISCO (MarketWatch) -- IBM Corp. (IBM: news, chart, profile) on Thursday reported a second-quarter profit of $3.1 billion, or $2.32 a share, on revenue of $23.3 billion. Analysts surveyed by FactSet Research had forecast IBM to earn $2.01 a share on $23.56 billion in sales. During the same period a year ago, IBM earned $2.8 billion, or $1.97 a share, on revenue of $26.8 billion. IBM also raised its full-year earnings forecast to at least $9.70 a share from $9.20 a share.
Google tops views with second-quarter profit(4:05 pm ET)
SAN FRANCISCO (MarketWatch) - Google Inc. (GOOG: news, chart, profile) on Thursday said its second-quarter net income rose to $1.48 billion, or $4.66 a share, from $1.25 billion, or $3.92 a share in the same period a year earlier. Net revenue in the period ended in June rose to $4.07 billion from $3.9 billion, Google said. Excluding special items, earnings were $5.36 a share. Wall Street analysts had expected Google to post earnings excluding special items of $5.09 a share, and $4.06 billion in net revenue, according to data from Thomson Reuters.
CDC Software files $62 million IPO(9:33 am ET)
NEW YORK (MarketWach) -- CDC Software Corp. on Thursday filed to raise up to $62.4 million in an initial public offering of 4.8 million American depositary shares at an estimated price range of $11-$13 each. The Hong Kong-based maker of business software will remain a unit of CDC Corp. (CHINA: news, chart, profile) after the offering. CDC Software expects to trade on the Nasdaq under the symbol CDCS. Lazard Capital Markets and JMP Securities are underwriting the deal.
Genuine Parts posts lower quarterly profit(9:19 am ET)
NEW YORK (MarketWatch) -- Genuine Parts Co. (GPC: news, chart, profile) said Thursday that its second-quarter profit fell to $103 million, or 65 cents a share, from $133 million, or 81 cents a share, in the year-earlier period. Sales at the distributor of automotive-replacement parts fell to $2.54 billion from $2.87 billion. "We are not satisfied with our results for the second quarter and first half of 2009, but feel that they reflect the realities of a difficult economy," said Thomas Gallagher, the company's chairman and chief executive officer, in a statement.
J.P. Morgan first half provisions doubled vs 2008 (8:35 am ET)
NEW YORK (MarketWatch) -- J.P. Morgan Chase (JPM: news, chart, profile) has set aside $16.63 billion for credit loss provisions since the beginning of the year, according to the firm's Thursday earnings report for the second quarter. The company said it set aside $8.03 billion in loss provisions in the second quarter, after putting away $8.60 billion in the first quarter. In the first half of 2008, J.P. Morgan set aside $7.88 billion for loan losses.
PPG net income falls 42%; sales hit by currency(8:14 am ET)
NEW YORK (MarketWatch) -- PPG Industries (PPG: news, chart, profile) said Thursday second-quarter net income fell to $146 million, or 89 cents a share, from $250 million, or $1.52 a share in the year-ago period. Adjusted net income at the Pittsburgh-based maker of paints, optical products and coatings said adjusted net income for the quarter totaled 91 cents a share. Sales dropped 30% to $3.1 billion. Currency conversion accounted for more than 40%of the sales decline, and the company also realized lower volumes in the automotive refinish business. Analysts expected earnings of 74 cents a share on revenue of $3.28 billion, according to a survey by FactSet Research. "Looking ahead to the third quarter, we expect overall market demand to improve, but only mildly," the company said. "We expect sequential improvement in the U.S. automotive original equipment manufacturing market, but we expect the opposite for commodity chemicals."
Biogen Idec earnings per share drop to 49 cents(7:42 am ET)
NEW YORK (MarketWatch) -- Biogen Idec Inc. (BIIB: news, chart, profile) said Thursday that second-quarter earnings fell to $143 million, or 49 cents a share, compared to $207 million, or 71 cents, in the same period a year ago. Revenue was $1.1 billion, compared to $993 million. Adjusted earnings per share were 75 cents. Analysts polled by FactSet Research estimated, on average, earnings per share of 79 cents and sales of $1.1 billion. Biogen sees revenue growth in the high single digits in 2009 and adjusted earnings per share above $3.85.
MGIC second-quarter loss widens(7:22 am ET)
NEW YORK (MarketWatch) -- MGIC Investment Corp. (MTG: news, chart, profile) said Thursday that its second-quarter loss was $339.8 million, or $2.74 a share, compared to a loss of $99.9 million, or 81 cents a share, in the year-ago period. Analysts surveyed by FactSet Research had expected, on average, a loss of 93 cents a share. Mortgage insurer MGIC's total revenues for the second quarter were $454.5 million, compared with $424.5 million in the second quarter last year. Separately, MGIC said it will provide up to $1 billion to subsidiary MGIC Indemnity Corp. to write new mortgage guaranty insurance on or about Jan. 1. The cash will come from existing cash and investments, said the firm. "In order to provide certainty that we would be able to continue writing new business on an uninterrupted basis, we needed to write new business in a company which has a lower risk to capital ratio," said MGIC of the move.
Baxter net income climbs 8% on wider margins(7:15 am ET)
NEW YORK (MarketWatch) -- Baxter International Inc. (BAX: news, chart, profile) said Thursday second-quarter net income grew by 8% to $587 million, or 96 cents a share, from $544 million, or 85 cents a share in the year-ago period, despite lower revenue from the Deerfield, Ill. medical products giant. Baxter said sales fell 2% to $3.1 billion. Wall Street analysts expected earnings of 94 cents a share on revenue of $3.1 billion, according to a survey by FactSet Research. The company said it beat its 93 to 95 cents-a-share forecast for the quarter because of "improved margins and benefits derived from the company's ongoing share repurchase program." Baxter expects third-quarter earnings of 95-97 cents a share, compared to the Wall Street target of 96 cents a share.
Marriott net off. adjusted profit above estimate(6:58 am ET)
TEL AVIV (MarketWatch) -- Marriott International Inc., (MAR: news, chart, profile) the Bethesda, Md., hotel operator, reported that second-quarter net income fell 77% and adjusted earnings per share from continuing operations declined 55%. Net income fell to $35 million from $155 million in the year-earlier quarter. Net attributable to shareholders was $37 million, or 10 cents a share, compared with $157 million, or 42 cents. The latest adjusted earnings from operations were 23 cents a share. Revenue fell 20% to $2.56 billion from $3.19 billion. A survey of analysts by FactSet Research produced consensus estimates of 21 cents of profit on $2.54 billion of revenue. For the third quarter, Marriott pegs adjusted earnings from continuing operations at 9 cents to 14 cents; FactSet's survey is looking for 20 cents.
J.P. Morgan Chase tops with 36% profit rise(6:37 am ET)
LONDON (MarketWatch) -- J.P. Morgan Chase (JPM: news, chart, profile) said its second-quarter net income climbed 36% to $2.72 billion, or 28 cents a share, as revenue rose to $25.62 billion from $18.4 billion. The quarter included a 27 cents a share hit for TARP repayment and a 10-cents-a-share FDIC special assessment penalty. Analysts had forecast earnings of 4 cents a share. The investment bank had record first half revenue, and it saw "solid" performance from commercial banking, asset management, treasury and security services and retail banking. But it expects high levels of credit costs to remain elevated for the foreseeable future.
Update: Harley-Davidson net off; cuts outlook(6:26 am ET)
TEL AVIV (MarketWatch) -- Harley-Davidson Inc., (HOG: news, chart, profile) the Milwaukee motorcycle maker, reported that second-quarter net income fell 91%, reflecting fewer motorcycle shipments as well as charges tied to Harley-Davidson Financial Services. The company earned $19.8 million, or 8 cents a share, compared with $222.8 million, or 95 cents, in the year-earlier quarter. Revenue fell 27% to $1.15 billion from $1.57 billion. A survey of analysts by FactSet Research produced consensus estimates of 26 cents of profit on $1.15 billion of sales. Worldwide retail-unit sales of new Harley-Davidson motorcycles fell 30% from the year-earlier quarter. That reflected declines of 35% in the U.S. and 18% internationally, Harley-Davidson reported. The company also lowered its 2009 expectations for shipments, now planning to ship 212,000 to 228,000 motorcycles to dealers and distributors worldwide this year. That's 25% to 30% fewer than the nearly 303,500 shipped in 2008. The prior 2009 estimate was 264,000 to 273,000. Third-quarter shipments are estimated at 52,000 to 57,000. And Harley-Davidson plans 700 more job cuts. (Updates with FactSet estimate.)
Nokia posts 73% drop in profit, lowers share view(6:20 am ET)
LONDON (MarketWatch) -- Nokia Corp. (NOK: news, chart, profile) , the world's largest maker of mobile phones, on Thursday posted a 73% drop in second-quarter net profit to 287 million euros, or 0.10 euro a share, from 1.08 billion euros, or 0.29 euro a share, earned in the year-earlier quarter. Adjusted earnings came in at 0.15 euro a share. Sales declined 25% to 9.9 billion euros. On a sequential basis, they rose 7%. Nokia shipped 103.2 million units in the quarter, down 15% year on year but up 11% sequentially. The average selling price of a Nokia phone slipped to 62 euros from 65 euros in the first quarter. The company reiterated its forecast for the global mobile industry to contract 10% this year. Nokia, however, changed its mobile device operating margin forecast for the second half, saying it now sees it at the same level as in the first half rather than in the teens. In the second quarter it was 11.2%. Nokia also said it no longer expects to gain market share in the second half of the year but for it to remain flat.
Sony Ericsson loses $301 million as sales slump(2:42 am ET)
LONDON (MarketWatch) -- Sony Ericsson Mobile Communications, the handset making joint venture between Sony (SNE: news, chart, profile) and Ericsson (ERIC: news, chart, profile) , said it swung to a second-quarter loss of 213 million euros ($301 million) as sales dropped 40% to 1.68 billion euros. The firm, which earned 6 million euros in the year-earlier quarter, saw its gross margins nearly halved to 12% from 23% as the number of units shipped fell to 13.8 million from 24.4 million. The company said the remainder of the year will be difficult as it said it's on track to reduce operating expenses by 880 million euros by the second half of 2010. Sony Ericsson maintains its forecast that the global handset market for 2009 will continue to contract by at least 10%.
Novartis net down 9.8% but exceeds estimate(1:57 am ET)
TEL AVIV (MarketWatch) -- Novartis AG (NVS: news, chart, profile) (CH:NOVN: news, chart, profile) reported Thursday that second-quarter net income fell 9.8% on 1.7% lower sales. Net income was $2.04 billion, or 90 cents a share, compared with $2.27 billion, or 99 cents, in the year-earlier quarter. Sales slipped to $10.55 billion from $10.73 billion. A survey of analysts by FactSet Research produced consensus estimates of 88 cents of profit on $10.07 billion of sales. The Basel health-care giant affirmed that for 2009, it expects sales measured in local currencies to grow at a mid-single-digit percentage rate. Adjusted net income should reach a yearly record in 2009, but that growth "could be more than offset in reported results by currency-related losses," Novartis said.
Wednesday, July 15
Crown Holdings quarterly earnings rise to 65 cents(6:18 pm ET)
LOS ANGELES (MarketWatch) -- Crown Holdings Inc. (CCK: news, chart, profile) late Wednesday said second-quarter net income attributable to Crown Holdings were $105 million, or 65 cents a share, up from $99 million, or 61 cents a share, in the year-ago period. Excluding a net charge related to previously announced restructuring actions, earnings for the beverage and food packaging producer would have been 66 cents a share. Revenue fell to $2.06 billion from $2.2 billion in the same period a year ago. Analysts polled by Thomson Reuters had expected earnings of 61 cents a share on revenue of $2.09 billion.
Cintas quarterly profit drops to $4.1 million(4:32 pm ET)
SAN FRANCISCO (MarketWatch) -- Cintas Corp. (CTAS: news, chart, profile) said late Wednesday that its fiscal fourth-quarter profit was $4.1 million, or 3 cents a share, down from $89.7 million, or 58 cents a share, in the year-ago period. Excluding a $54 million after-tax charge, earnings would have been 38 cents a share. Revenue fell to $878.7 million from $1.01 billion in the same period a year ago, said the corporate apparel provider.
Gannett CFO: Ad trends stabilizing at newspapers(10:32 am ET)
CHICAGO (MarketWatch) -- Gannett Co. (GCI: news, chart, profile) Chief Financial Officer Gracia Martore told analysts Wednesday that while economic weakness continues to hamper advertising revenue, "demand seems to be firming up a bit in some categories and in some geographic locations." During a conference call, Martore noted that classified ad revenue, the traditional lifeblood of newspaper income, showed improvement in the second quarter. Real estate revenue "trended upward," she said, while other classified categories "have stabilized somewhat." Help-wanted classified "has historically been a lagging indicator, so we will be keeping an eye on that," Martore said. In national advertising, the month of June was the strongest of the year thus far, with revenue about 12% lower, compared with "declines in the mid-20s" during April and May, she added. At USA Today, ad revenue fell 26%, but that decline was smaller than that of the first quarter.
Drug stocks gain; Abbott falls on forecast(9:43 am ET)
BOSTON (MarketWatch) -- Drug stocks gained in early action Wednesday while shares of Abbott Laboratories (ABT: news, chart, profile) fell after it issued a third-quarter financial forecast that fell at the lower end of Wall Street estimates. The NYSE Arca Pharmaceutical Index ($DRG: news, chart, profile) was up marginally at 263.92 and the NYSE Arca Biotechnology Index ($BTK: news, chart, profile) rose 0.5% to 653.32. Abbott shares were down almost 3% at $45.15.
Thursday, July 16
IBM reports earnings rise 12%(4:20 pm ET)
SAN FRANCISCO (MarketWatch) -- IBM Corp. (IBM: news, chart, profile) on Thursday reported a second-quarter profit of $3.1 billion, or $2.32 a share, on revenue of $23.3 billion. Analysts surveyed by FactSet Research had forecast IBM to earn $2.01 a share on $23.56 billion in sales. During the same period a year ago, IBM earned $2.8 billion, or $1.97 a share, on revenue of $26.8 billion. IBM also raised its full-year earnings forecast to at least $9.70 a share from $9.20 a share.
Google tops views with second-quarter profit(4:05 pm ET)
SAN FRANCISCO (MarketWatch) - Google Inc. (GOOG: news, chart, profile) on Thursday said its second-quarter net income rose to $1.48 billion, or $4.66 a share, from $1.25 billion, or $3.92 a share in the same period a year earlier. Net revenue in the period ended in June rose to $4.07 billion from $3.9 billion, Google said. Excluding special items, earnings were $5.36 a share. Wall Street analysts had expected Google to post earnings excluding special items of $5.09 a share, and $4.06 billion in net revenue, according to data from Thomson Reuters.
CDC Software files $62 million IPO(9:33 am ET)
NEW YORK (MarketWach) -- CDC Software Corp. on Thursday filed to raise up to $62.4 million in an initial public offering of 4.8 million American depositary shares at an estimated price range of $11-$13 each. The Hong Kong-based maker of business software will remain a unit of CDC Corp. (CHINA: news, chart, profile) after the offering. CDC Software expects to trade on the Nasdaq under the symbol CDCS. Lazard Capital Markets and JMP Securities are underwriting the deal.
Genuine Parts posts lower quarterly profit(9:19 am ET)
NEW YORK (MarketWatch) -- Genuine Parts Co. (GPC: news, chart, profile) said Thursday that its second-quarter profit fell to $103 million, or 65 cents a share, from $133 million, or 81 cents a share, in the year-earlier period. Sales at the distributor of automotive-replacement parts fell to $2.54 billion from $2.87 billion. "We are not satisfied with our results for the second quarter and first half of 2009, but feel that they reflect the realities of a difficult economy," said Thomas Gallagher, the company's chairman and chief executive officer, in a statement.
J.P. Morgan first half provisions doubled vs 2008 (8:35 am ET)
NEW YORK (MarketWatch) -- J.P. Morgan Chase (JPM: news, chart, profile) has set aside $16.63 billion for credit loss provisions since the beginning of the year, according to the firm's Thursday earnings report for the second quarter. The company said it set aside $8.03 billion in loss provisions in the second quarter, after putting away $8.60 billion in the first quarter. In the first half of 2008, J.P. Morgan set aside $7.88 billion for loan losses.
PPG net income falls 42%; sales hit by currency(8:14 am ET)
NEW YORK (MarketWatch) -- PPG Industries (PPG: news, chart, profile) said Thursday second-quarter net income fell to $146 million, or 89 cents a share, from $250 million, or $1.52 a share in the year-ago period. Adjusted net income at the Pittsburgh-based maker of paints, optical products and coatings said adjusted net income for the quarter totaled 91 cents a share. Sales dropped 30% to $3.1 billion. Currency conversion accounted for more than 40%of the sales decline, and the company also realized lower volumes in the automotive refinish business. Analysts expected earnings of 74 cents a share on revenue of $3.28 billion, according to a survey by FactSet Research. "Looking ahead to the third quarter, we expect overall market demand to improve, but only mildly," the company said. "We expect sequential improvement in the U.S. automotive original equipment manufacturing market, but we expect the opposite for commodity chemicals."
Biogen Idec earnings per share drop to 49 cents(7:42 am ET)
NEW YORK (MarketWatch) -- Biogen Idec Inc. (BIIB: news, chart, profile) said Thursday that second-quarter earnings fell to $143 million, or 49 cents a share, compared to $207 million, or 71 cents, in the same period a year ago. Revenue was $1.1 billion, compared to $993 million. Adjusted earnings per share were 75 cents. Analysts polled by FactSet Research estimated, on average, earnings per share of 79 cents and sales of $1.1 billion. Biogen sees revenue growth in the high single digits in 2009 and adjusted earnings per share above $3.85.
MGIC second-quarter loss widens(7:22 am ET)
NEW YORK (MarketWatch) -- MGIC Investment Corp. (MTG: news, chart, profile) said Thursday that its second-quarter loss was $339.8 million, or $2.74 a share, compared to a loss of $99.9 million, or 81 cents a share, in the year-ago period. Analysts surveyed by FactSet Research had expected, on average, a loss of 93 cents a share. Mortgage insurer MGIC's total revenues for the second quarter were $454.5 million, compared with $424.5 million in the second quarter last year. Separately, MGIC said it will provide up to $1 billion to subsidiary MGIC Indemnity Corp. to write new mortgage guaranty insurance on or about Jan. 1. The cash will come from existing cash and investments, said the firm. "In order to provide certainty that we would be able to continue writing new business on an uninterrupted basis, we needed to write new business in a company which has a lower risk to capital ratio," said MGIC of the move.
Baxter net income climbs 8% on wider margins(7:15 am ET)
NEW YORK (MarketWatch) -- Baxter International Inc. (BAX: news, chart, profile) said Thursday second-quarter net income grew by 8% to $587 million, or 96 cents a share, from $544 million, or 85 cents a share in the year-ago period, despite lower revenue from the Deerfield, Ill. medical products giant. Baxter said sales fell 2% to $3.1 billion. Wall Street analysts expected earnings of 94 cents a share on revenue of $3.1 billion, according to a survey by FactSet Research. The company said it beat its 93 to 95 cents-a-share forecast for the quarter because of "improved margins and benefits derived from the company's ongoing share repurchase program." Baxter expects third-quarter earnings of 95-97 cents a share, compared to the Wall Street target of 96 cents a share.
Marriott net off. adjusted profit above estimate(6:58 am ET)
TEL AVIV (MarketWatch) -- Marriott International Inc., (MAR: news, chart, profile) the Bethesda, Md., hotel operator, reported that second-quarter net income fell 77% and adjusted earnings per share from continuing operations declined 55%. Net income fell to $35 million from $155 million in the year-earlier quarter. Net attributable to shareholders was $37 million, or 10 cents a share, compared with $157 million, or 42 cents. The latest adjusted earnings from operations were 23 cents a share. Revenue fell 20% to $2.56 billion from $3.19 billion. A survey of analysts by FactSet Research produced consensus estimates of 21 cents of profit on $2.54 billion of revenue. For the third quarter, Marriott pegs adjusted earnings from continuing operations at 9 cents to 14 cents; FactSet's survey is looking for 20 cents.
J.P. Morgan Chase tops with 36% profit rise(6:37 am ET)
LONDON (MarketWatch) -- J.P. Morgan Chase (JPM: news, chart, profile) said its second-quarter net income climbed 36% to $2.72 billion, or 28 cents a share, as revenue rose to $25.62 billion from $18.4 billion. The quarter included a 27 cents a share hit for TARP repayment and a 10-cents-a-share FDIC special assessment penalty. Analysts had forecast earnings of 4 cents a share. The investment bank had record first half revenue, and it saw "solid" performance from commercial banking, asset management, treasury and security services and retail banking. But it expects high levels of credit costs to remain elevated for the foreseeable future.
Update: Harley-Davidson net off; cuts outlook(6:26 am ET)
TEL AVIV (MarketWatch) -- Harley-Davidson Inc., (HOG: news, chart, profile) the Milwaukee motorcycle maker, reported that second-quarter net income fell 91%, reflecting fewer motorcycle shipments as well as charges tied to Harley-Davidson Financial Services. The company earned $19.8 million, or 8 cents a share, compared with $222.8 million, or 95 cents, in the year-earlier quarter. Revenue fell 27% to $1.15 billion from $1.57 billion. A survey of analysts by FactSet Research produced consensus estimates of 26 cents of profit on $1.15 billion of sales. Worldwide retail-unit sales of new Harley-Davidson motorcycles fell 30% from the year-earlier quarter. That reflected declines of 35% in the U.S. and 18% internationally, Harley-Davidson reported. The company also lowered its 2009 expectations for shipments, now planning to ship 212,000 to 228,000 motorcycles to dealers and distributors worldwide this year. That's 25% to 30% fewer than the nearly 303,500 shipped in 2008. The prior 2009 estimate was 264,000 to 273,000. Third-quarter shipments are estimated at 52,000 to 57,000. And Harley-Davidson plans 700 more job cuts. (Updates with FactSet estimate.)
Nokia posts 73% drop in profit, lowers share view(6:20 am ET)
LONDON (MarketWatch) -- Nokia Corp. (NOK: news, chart, profile) , the world's largest maker of mobile phones, on Thursday posted a 73% drop in second-quarter net profit to 287 million euros, or 0.10 euro a share, from 1.08 billion euros, or 0.29 euro a share, earned in the year-earlier quarter. Adjusted earnings came in at 0.15 euro a share. Sales declined 25% to 9.9 billion euros. On a sequential basis, they rose 7%. Nokia shipped 103.2 million units in the quarter, down 15% year on year but up 11% sequentially. The average selling price of a Nokia phone slipped to 62 euros from 65 euros in the first quarter. The company reiterated its forecast for the global mobile industry to contract 10% this year. Nokia, however, changed its mobile device operating margin forecast for the second half, saying it now sees it at the same level as in the first half rather than in the teens. In the second quarter it was 11.2%. Nokia also said it no longer expects to gain market share in the second half of the year but for it to remain flat.
Sony Ericsson loses $301 million as sales slump(2:42 am ET)
LONDON (MarketWatch) -- Sony Ericsson Mobile Communications, the handset making joint venture between Sony (SNE: news, chart, profile) and Ericsson (ERIC: news, chart, profile) , said it swung to a second-quarter loss of 213 million euros ($301 million) as sales dropped 40% to 1.68 billion euros. The firm, which earned 6 million euros in the year-earlier quarter, saw its gross margins nearly halved to 12% from 23% as the number of units shipped fell to 13.8 million from 24.4 million. The company said the remainder of the year will be difficult as it said it's on track to reduce operating expenses by 880 million euros by the second half of 2010. Sony Ericsson maintains its forecast that the global handset market for 2009 will continue to contract by at least 10%.
Novartis net down 9.8% but exceeds estimate(1:57 am ET)
TEL AVIV (MarketWatch) -- Novartis AG (NVS: news, chart, profile) (CH:NOVN: news, chart, profile) reported Thursday that second-quarter net income fell 9.8% on 1.7% lower sales. Net income was $2.04 billion, or 90 cents a share, compared with $2.27 billion, or 99 cents, in the year-earlier quarter. Sales slipped to $10.55 billion from $10.73 billion. A survey of analysts by FactSet Research produced consensus estimates of 88 cents of profit on $10.07 billion of sales. The Basel health-care giant affirmed that for 2009, it expects sales measured in local currencies to grow at a mid-single-digit percentage rate. Adjusted net income should reach a yearly record in 2009, but that growth "could be more than offset in reported results by currency-related losses," Novartis said.
Wednesday, July 15
Crown Holdings quarterly earnings rise to 65 cents(6:18 pm ET)
LOS ANGELES (MarketWatch) -- Crown Holdings Inc. (CCK: news, chart, profile) late Wednesday said second-quarter net income attributable to Crown Holdings were $105 million, or 65 cents a share, up from $99 million, or 61 cents a share, in the year-ago period. Excluding a net charge related to previously announced restructuring actions, earnings for the beverage and food packaging producer would have been 66 cents a share. Revenue fell to $2.06 billion from $2.2 billion in the same period a year ago. Analysts polled by Thomson Reuters had expected earnings of 61 cents a share on revenue of $2.09 billion.
Cintas quarterly profit drops to $4.1 million(4:32 pm ET)
SAN FRANCISCO (MarketWatch) -- Cintas Corp. (CTAS: news, chart, profile) said late Wednesday that its fiscal fourth-quarter profit was $4.1 million, or 3 cents a share, down from $89.7 million, or 58 cents a share, in the year-ago period. Excluding a $54 million after-tax charge, earnings would have been 38 cents a share. Revenue fell to $878.7 million from $1.01 billion in the same period a year ago, said the corporate apparel provider.
Gannett CFO: Ad trends stabilizing at newspapers(10:32 am ET)
CHICAGO (MarketWatch) -- Gannett Co. (GCI: news, chart, profile) Chief Financial Officer Gracia Martore told analysts Wednesday that while economic weakness continues to hamper advertising revenue, "demand seems to be firming up a bit in some categories and in some geographic locations." During a conference call, Martore noted that classified ad revenue, the traditional lifeblood of newspaper income, showed improvement in the second quarter. Real estate revenue "trended upward," she said, while other classified categories "have stabilized somewhat." Help-wanted classified "has historically been a lagging indicator, so we will be keeping an eye on that," Martore said. In national advertising, the month of June was the strongest of the year thus far, with revenue about 12% lower, compared with "declines in the mid-20s" during April and May, she added. At USA Today, ad revenue fell 26%, but that decline was smaller than that of the first quarter.
Drug stocks gain; Abbott falls on forecast(9:43 am ET)
BOSTON (MarketWatch) -- Drug stocks gained in early action Wednesday while shares of Abbott Laboratories (ABT: news, chart, profile) fell after it issued a third-quarter financial forecast that fell at the lower end of Wall Street estimates. The NYSE Arca Pharmaceutical Index ($DRG: news, chart, profile) was up marginally at 263.92 and the NYSE Arca Biotechnology Index ($BTK: news, chart, profile) rose 0.5% to 653.32. Abbott shares were down almost 3% at $45.15.
AMR Corp.'s adjusted loss grows by $21 million(9:12 am ET)
NEW YORK (MarketWatch) -- AMR Corp. (AMR: news, chart, profile) said Wednesday it lost $390 million in its second quarter, or $1.39 a share, narrower than the year-ago loss of $1.46 billion, or $5.83 a share. Adjusted net loss grew by $21 million to $319 million, or $1.14 a share, excluding $70 million in non-recurring charges related to the sale of aircraft and the grounding of leased Airbus A300 aircraft prior to lease expiration. Revenue at the Fort Worth, Texas parent company of American Airlines fell 21% to $4.89 billion. Analysts expected a loss of $1.21 a share on revenue of $4.87 billion, according to a survey by FactSet Research. AMR expects consolidated capacity in the third quarter to decrease by approximately 9% compared to the year-ago period.
Abbott earnings per share 83 cents versus 85 cents(8:50 am ET)
NEW YORK (MarketWatch) -- Abbott (ABT: news, chart, profile) said Wednesday that second-quarter earnings were $1.3 billion, or 83 cents a share, compared to $1.3 billion, or 85 cents a share, in the same period a year ago. Excluding items, earnings per share were 89 cents versus 84 cents. Revenue rose 2.5% to $7.5 billion compared to $7.3 billion a year ago. Analysts polled by Fact Set Research estimated, on average, earnings per share of 89 cents and sales of $7.6 billion. Abbott sees double-digit sales growth for 2009 and earnings per share in the $3.65-$3.70 range. Third-quarter adjusted earnings per share are forecast at 88 cents to 90 cents a share. (Corrects earnings for second quarter 2009)
Worthington Industries swings to a loss (8:46 am ET)
NEW YORK (MarketWatch) -- Worthington Industries (WOR: news, chart, profile) on Wednesday reported a fourth-quarter loss of $13.7 million, or 17 cents a share, from net income of $53.9 million, or 68 cents a share in the year-ago period. Excluding items, the Columbus, Ohio metal processing company lost 2 cents a share. Sales fell 46% to $471.6 million. Wall Street analysts expected a loss of 3 cents a share, according to a survey by FactSet Research. Looking ahead, Worthington said, "Our goal is not just to maintain our business, but to be in a position to gain share, make selective acquisitions and capture opportunities as they present themselves."
Campbell sees above 5% to 7% 2009 earnings growth(8:41 am ET)
NEW YORK (MarketWatch) -- Campbell Soup Co. (CPB: news, chart, profile) said Wednesday that it expects growth in adjusted earnings per share on a currency-neutral basis to exceed the 5%-to-7% range from the fiscal 2008 adjusted base of $2.09. It also said earnings-per-share and sales growth will be held back about 5% due to currency translation.
Gannett swings to a second-quarter profit(8:27 am ET)
NEW YORK (MarketWatch) -- Newspaper publisher Gannett Co. (GCI: news, chart, profile) said Wednesday that it swung to a second-quarter profit of $70.5 million, or 30 cents a share, from a year-earlier loss of $2.29 billion, or $10.03 a share. Excluding items, the McLean, Va.-based company would have earned 46 cents a share in the most recent quarter. Revenue slipped to $1.41 billion from $1.72 billion. Analysts polled by FactSet Research had expected a profit of 35 cents a share.
Bemis raises outlook(8:12 am ET)
NEW YORK (MarketWatch) -- Bemis Co. Inc. (BMS: news, chart, profile) on Wednesday improved its outlook for its second-quarter and full-year earnings. The Neenah, Wis., packaging and materials company said it now expects earnings of 47 cents a share in the second quarter, up from its original guidance of 35 cents to 43 cents a share. For the full year, Bemis said it expects earnings of between $1.68 and $1.75 a share, up from previous guidance of $1.50 to $1.70 a share. Bemis said it had benefited from lower raw material costs related to shipments as well as "the positive impact of cost management initiatives implemented during the fourth quarter of 2008 and the first quarter of 2009."
Lubrizol sees earnings per share of about $1.92(8:09 am ET)
NEW YORK (MarketWatch) -- The Lubrizol Corp. (LZ: news, chart, profile) said Wednesday that it expects second-quarter earnings per share of about $1.92, including a restructuring and impairment charge of approximately 10 cents a share.
W.W. Grainger net income down 18%(8:00 am ET)
NEW YORK (MarketWatch) -- W.W. Grainger Inc. (GWW: news, chart, profile) on Wednesday said second-quarter earnings fell 18% to $92 million, or $1.21 a share, from $113 million, or $1.42 a share in the year-ago period. Sales for the Chicago-based supplier of facilities maintenance products fell 13% to $1.5 billion. Analysts expected earnings of $1.14 a share on revenue of $1.5 billion, according to a survey by FactSet Research. "We have not seen an indication of an economic turnaround at this point but our results indicate that we are gaining market share during this recession," the company said. "We are in a great position to grow when the economy eventually recovers. We're expanding our sales force to improve customer coverage."
Wolverine World Wide profit off, outlook higher(6:59 am ET)
TEL AVIV (MarketWatch) -- Wolverine World Wide Inc., (WWW: news, chart, profile) the Rockford, Mich., marketer of footwear and apparel under brands including Hush Puppies, Sebago and more, reported that second-quarter earnings fell 53% and raised its estimate of earnings for the full year. Earnings fell to $7.9 million, or 16 cents a share, from $16.8 million, or 33 cents, in the year-earlier quarter. Adjusted profit was 27 cents against 33 cents. Revenue fell 7.8% to $246.4 million from $267.4 million. Adjusting for foreign-exchange fluctuations, revenue fell 3.1%. A survey of analysts by FactSet Research produced consensus estimates of 26 cents of profit on $243.1 million of sales. The company now expects to earn an adjusted $1.55 to $1.73 in 2009, compared with its previous estimate of $1.50 to $1.70. Diluted earnings are projected at $1.07 to $1.25. Revenue should range $1.07 billion to $1.12 billion; constant-currency revenue should come in $1.12 billion to $1.17 billion. FactSet's survey is looking for $1.67 and $1.13 billion.
Fifth Street Finance investment income rises(6:31 am ET)
TEL AVIV (MarketWatch) -- Fifth Street Finance Corp., (FSC: news, chart, profile) the White Plains, N.Y., provider of financing and investments for small and medium-sized companies, estimated that for the quarter ended June 30, net investment income was 34 cents to 36 cents a share, compared with 33 cents in the quarter ended March 31. The company on Wednesday estimated that its net asset value at the end of the June quarter was about flat with the $11.94 a share reported at March 31. The number of investments on non-accrual status also was about level with the previous quarter, Fifth Street Finance reported. Separately, the company plans a public offering of 6.5 million common shares. The underwriters will have an option on 975,000 more shares if demand for the offering requires. Wells Fargo and UBS will run the books for the offering. Fifth Street expects to use $16.5 million of the offering proceeds to pay down its secured revolving-credit line and the rest for investments.
Lufkin Industries net off 79%, sales down 29%(6:20 am ET)
TEL AVIV (MarketWatch) -- Lufkin Industries Inc., (LUFK: news, chart, profile) the Lufkin, Texas, provider of oilfield-pumping units and other equipment, reported that second-quarter earnings fell 79% on 29% lower sales. Net income was $4.5 million, or 30 cents a share, compared with $21.2 million, or $1.42, in the year-earlier quarter. Adjusted per-share earnings from continuing operations for the latest period were 40 cents. Sales fell to $123.7 million from $174.5 million. To cut costs and improve its competitive position, Lufkin has cut its workforce 16% this year, placed some operations on short workweeks, and eliminated overtime pay.
Wednesday, July 15
Crown Holdings quarterly earnings rise to 65 cents(6:18 pm ET)
LOS ANGELES (MarketWatch) -- Crown Holdings Inc. (CCK: news, chart, profile) late Wednesday said second-quarter net income attributable to Crown Holdings were $105 million, or 65 cents a share, up from $99 million, or 61 cents a share, in the year-ago period. Excluding a net charge related to previously announced restructuring actions, earnings for the beverage and food packaging producer would have been 66 cents a share. Revenue fell to $2.06 billion from $2.2 billion in the same period a year ago. Analysts polled by Thomson Reuters had expected earnings of 61 cents a share on revenue of $2.09 billion.
Cintas quarterly profit drops to $4.1 million(4:32 pm ET)
SAN FRANCISCO (MarketWatch) -- Cintas Corp. (CTAS: news, chart, profile) said late Wednesday that its fiscal fourth-quarter profit was $4.1 million, or 3 cents a share, down from $89.7 million, or 58 cents a share, in the year-ago period. Excluding a $54 million after-tax charge, earnings would have been 38 cents a share. Revenue fell to $878.7 million from $1.01 billion in the same period a year ago, said the corporate apparel provider.
Gannett CFO: Ad trends stabilizing at newspapers(10:32 am ET)
CHICAGO (MarketWatch) -- Gannett Co. (GCI: news, chart, profile) Chief Financial Officer Gracia Martore told analysts Wednesday that while economic weakness continues to hamper advertising revenue, "demand seems to be firming up a bit in some categories and in some geographic locations." During a conference call, Martore noted that classified ad revenue, the traditional lifeblood of newspaper income, showed improvement in the second quarter. Real estate revenue "trended upward," she said, while other classified categories "have stabilized somewhat." Help-wanted classified "has historically been a lagging indicator, so we will be keeping an eye on that," Martore said. In national advertising, the month of June was the strongest of the year thus far, with revenue about 12% lower, compared with "declines in the mid-20s" during April and May, she added. At USA Today, ad revenue fell 26%, but that decline was smaller than that of the first quarter.
Drug stocks gain; Abbott falls on forecast(9:43 am ET)
BOSTON (MarketWatch) -- Drug stocks gained in early action Wednesday while shares of Abbott Laboratories (ABT: news, chart, profile) fell after it issued a third-quarter financial forecast that fell at the lower end of Wall Street estimates. The NYSE Arca Pharmaceutical Index ($DRG: news, chart, profile) was up marginally at 263.92 and the NYSE Arca Biotechnology Index ($BTK: news, chart, profile) rose 0.5% to 653.32. Abbott shares were down almost 3% at $45.15.
AMR Corp.'s adjusted loss grows by $21 million(9:12 am ET)
NEW YORK (MarketWatch) -- AMR Corp. (AMR: news, chart, profile) said Wednesday it lost $390 million in its second quarter, or $1.39 a share, narrower than the year-ago loss of $1.46 billion, or $5.83 a share. Adjusted net loss grew by $21 million to $319 million, or $1.14 a share, excluding $70 million in non-recurring charges related to the sale of aircraft and the grounding of leased Airbus A300 aircraft prior to lease expiration. Revenue at the Fort Worth, Texas parent company of American Airlines fell 21% to $4.89 billion. Analysts expected a loss of $1.21 a share on revenue of $4.87 billion, according to a survey by FactSet Research. AMR expects consolidated capacity in the third quarter to decrease by approximately 9% compared to the year-ago period.
Abbott earnings per share 83 cents versus 85 cents(8:50 am ET)
NEW YORK (MarketWatch) -- Abbott (ABT: news, chart, profile) said Wednesday that second-quarter earnings were $1.3 billion, or 83 cents a share, compared to $1.3 billion, or 85 cents a share, in the same period a year ago. Excluding items, earnings per share were 89 cents versus 84 cents. Revenue rose 2.5% to $7.5 billion compared to $7.3 billion a year ago. Analysts polled by Fact Set Research estimated, on average, earnings per share of 89 cents and sales of $7.6 billion. Abbott sees double-digit sales growth for 2009 and earnings per share in the $3.65-$3.70 range. Third-quarter adjusted earnings per share are forecast at 88 cents to 90 cents a share. (Corrects earnings for second quarter 2009)
Worthington Industries swings to a loss (8:46 am ET)
NEW YORK (MarketWatch) -- Worthington Industries (WOR: news, chart, profile) on Wednesday reported a fourth-quarter loss of $13.7 million, or 17 cents a share, from net income of $53.9 million, or 68 cents a share in the year-ago period. Excluding items, the Columbus, Ohio metal processing company lost 2 cents a share. Sales fell 46% to $471.6 million. Wall Street analysts expected a loss of 3 cents a share, according to a survey by FactSet Research. Looking ahead, Worthington said, "Our goal is not just to maintain our business, but to be in a position to gain share, make selective acquisitions and capture opportunities as they present themselves."
Campbell sees above 5% to 7% 2009 earnings growth(8:41 am ET)
NEW YORK (MarketWatch) -- Campbell Soup Co. (CPB: news, chart, profile) said Wednesday that it expects growth in adjusted earnings per share on a currency-neutral basis to exceed the 5%-to-7% range from the fiscal 2008 adjusted base of $2.09. It also said earnings-per-share and sales growth will be held back about 5% due to currency translation.
Gannett swings to a second-quarter profit(8:27 am ET)
NEW YORK (MarketWatch) -- Newspaper publisher Gannett Co. (GCI: news, chart, profile) said Wednesday that it swung to a second-quarter profit of $70.5 million, or 30 cents a share, from a year-earlier loss of $2.29 billion, or $10.03 a share. Excluding items, the McLean, Va.-based company would have earned 46 cents a share in the most recent quarter. Revenue slipped to $1.41 billion from $1.72 billion. Analysts polled by FactSet Research had expected a profit of 35 cents a share.
Bemis raises outlook(8:12 am ET)
NEW YORK (MarketWatch) -- Bemis Co. Inc. (BMS: news, chart, profile) on Wednesday improved its outlook for its second-quarter and full-year earnings. The Neenah, Wis., packaging and materials company said it now expects earnings of 47 cents a share in the second quarter, up from its original guidance of 35 cents to 43 cents a share. For the full year, Bemis said it expects earnings of between $1.68 and $1.75 a share, up from previous guidance of $1.50 to $1.70 a share. Bemis said it had benefited from lower raw material costs related to shipments as well as "the positive impact of cost management initiatives implemented during the fourth quarter of 2008 and the first quarter of 2009."
Lubrizol sees earnings per share of about $1.92(8:09 am ET)
NEW YORK (MarketWatch) -- The Lubrizol Corp. (LZ: news, chart, profile) said Wednesday that it expects second-quarter earnings per share of about $1.92, including a restructuring and impairment charge of approximately 10 cents a share.
W.W. Grainger net income down 18%(8:00 am ET)
NEW YORK (MarketWatch) -- W.W. Grainger Inc. (GWW: news, chart, profile) on Wednesday said second-quarter earnings fell 18% to $92 million, or $1.21 a share, from $113 million, or $1.42 a share in the year-ago period. Sales for the Chicago-based supplier of facilities maintenance products fell 13% to $1.5 billion. Analysts expected earnings of $1.14 a share on revenue of $1.5 billion, according to a survey by FactSet Research. "We have not seen an indication of an economic turnaround at this point but our results indicate that we are gaining market share during this recession," the company said. "We are in a great position to grow when the economy eventually recovers. We're expanding our sales force to improve customer coverage."
Wolverine World Wide profit off, outlook higher(6:59 am ET)
TEL AVIV (MarketWatch) -- Wolverine World Wide Inc., (WWW: news, chart, profile) the Rockford, Mich., marketer of footwear and apparel under brands including Hush Puppies, Sebago and more, reported that second-quarter earnings fell 53% and raised its estimate of earnings for the full year. Earnings fell to $7.9 million, or 16 cents a share, from $16.8 million, or 33 cents, in the year-earlier quarter. Adjusted profit was 27 cents against 33 cents. Revenue fell 7.8% to $246.4 million from $267.4 million. Adjusting for foreign-exchange fluctuations, revenue fell 3.1%. A survey of analysts by FactSet Research produced consensus estimates of 26 cents of profit on $243.1 million of sales. The company now expects to earn an adjusted $1.55 to $1.73 in 2009, compared with its previous estimate of $1.50 to $1.70. Diluted earnings are projected at $1.07 to $1.25. Revenue should range $1.07 billion to $1.12 billion; constant-currency revenue should come in $1.12 billion to $1.17 billion. FactSet's survey is looking for $1.67 and $1.13 billion.
Fifth Street Finance investment income rises(6:31 am ET)
TEL AVIV (MarketWatch) -- Fifth Street Finance Corp., (FSC: news, chart, profile) the White Plains, N.Y., provider of financing and investments for small and medium-sized companies, estimated that for the quarter ended June 30, net investment income was 34 cents to 36 cents a share, compared with 33 cents in the quarter ended March 31. The company on Wednesday estimated that its net asset value at the end of the June quarter was about flat with the $11.94 a share reported at March 31. The number of investments on non-accrual status also was about level with the previous quarter, Fifth Street Finance reported. Separately, the company plans a public offering of 6.5 million common shares. The underwriters will have an option on 975,000 more shares if demand for the offering requires. Wells Fargo and UBS will run the books for the offering. Fifth Street expects to use $16.5 million of the offering proceeds to pay down its secured revolving-credit line and the rest for investments.
Lufkin Industries net off 79%, sales down 29%(6:20 am ET)
TEL AVIV (MarketWatch) -- Lufkin Industries Inc., (LUFK: news, chart, profile) the Lufkin, Texas, provider of oilfield-pumping units and other equipment, reported that second-quarter earnings fell 79% on 29% lower sales. Net income was $4.5 million, or 30 cents a share, compared with $21.2 million, or $1.42, in the year-earlier quarter. Adjusted per-share earnings from continuing operations for the latest period were 40 cents. Sales fell to $123.7 million from $174.5 million. To cut costs and improve its competitive position, Lufkin has cut its workforce 16% this year, placed some operations on short workweeks, and eliminated overtime pay.
SKF profit slumps on volume drop, revamp hit(2:42 am ET)
LONDON (MarketWatch) -- Swedish ball-bearings maker SKF (SE:SKFB: news, chart, profile) said second-quarter profit dropped to 323 million krona ($40.8 million) from 1.37 billion krona, with sales falling 11.9% to 14.17 billion krona as volumes dropped 30.8%. The quarter also included 500 million krona in restructuring charges. For the third quarter, demand will be significantly lower than the year-earlier level but, adjusted for seasonality, relatively unchanged.
ASML posts 2nd-qtr loss on 67% lower net sales(1:36 am ET)
TEL AVIV (MarketWatch) -- ASML Holding N.V., (ASML: news, chart, profile) (NL:ASML: news, chart, profile) the Veldhoven, Netherlands, producer of lithography systems for the semiconductor industry, swung to a second-quarter loss from a year-earlier profit on 67% lower net sales. The loss was 104 million euros ($145 million), or 0.24 euro a share, compared with net income of 192 million euros, or 0.44, in the year-earlier quarter. System sales were 183.3 million euros against 725.6 million. Net sales, reflecting service and field option sales, were 276.6 million euros against 844.2 million euros. The backlog at June 28 rose to 1.06 billion euros from 853 million at March 29. The current backlog involves 43 systems at an average selling price of 24.7 million euros compared with the March 29 figures of 38 systems at an average selling price of 22.4 million. The company expects minimum quarterly net sales of 400 million to 500 million euros "for the next quarters, until a recovery of semiconductor-unit growth -- even if limited -- contributes to a restart of capacity buys." ASML pegged third-quarter sales at 450 million euros at a gross margin of about 30%.
Tuesday, July 14
Janus Capital posts $2.3 billion in net inflows (4:59 pm ET)
SAN FRANCISCO (MarketWatch) -- Janus Capital Group Inc. (JNS: news, chart, profile) said Tuesday that its second-quarter net income from continuing operations fell to $15.8 million, or 10 cents a share, from $65.6 million, or 40 cents a share in the same period last year. Long term net inflows hit $2.3 billion as firmwide assets in the quarter reflected $20 billion of net appreciation, Janus said. Assets under management fell to $132.6 billion from $191.8 billion in the period a year ago. The quarterly results included charges stemming from goodwill impairment and litigation, Janus said in a statement.
Yum Brands profit up on cost cuts, int'l growth(4:47 pm ET)
CHICAGO (MarketWatch) -- Yum Brands reported sharply higher second-quarter profit Tuesday, fueled by lower expenses and international growth. After the close of trading, Yum (YUM: news, chart, profile) said that it earned $303 million, or 63 cents a share, up from $224 million, or 45 cents a share, in the year-ago period. Excluding items the company would have earned 50 cents a share. Total revenue dipped 7% to $2.48 billion. The average estimate of analysts polled by FactSet Research had been for Louisville, Ky.-based Yum to earn 43 cents a share on revenue of $2.49 billion. Looking ahead, the company said it still expects to earn $2.10 a share, excluding items, for all of 2009.
Altera earnings fall almost 50%(4:28 pm ET)
SAN FRANCISCO (MarketWatch) -- Altera Corp. (ALTR: news, chart, profile) on Tuesday reported a fiscal second-quarter profit of $47.4 million, or 16 cents a share, on revenue of $279.2 million. Gross margins as a percent of income were 66.5%. During the same period a year ago, the programmable chipmaker earned $98 million, or 32 cents a share, on $360 million in sales. Excluding a tax expense of 4 cents a share, Altera would have earned 20 cents a share. By that measure, analysts surveyed by FactSet Research had forecast Altera to earn 19 cents a share on revenue of $277 million. For its third quarter, Altera expects gross margins of 66.5% to 67.5% and sales to fall between 1% and 5% from its second-quarter results.
Intel swings to loss due to EU fine(4:22 pm ET)
SAN FRANCISCO (MarketWatch) - Intel Corp. (INTC: news, chart, profile) on Tuesday reported a second-quarter loss of $398 million, or 7 cents a share, compared with a profit of $1.6 billion, or 28 cents a share for the year-earlier period. Revenue was $8 billion, down from $9.5 billion for the same quarter last year. Adjusted income, which excludes the impact of a fine imposed by European Commission, was 18 cents a share. Analysts had expected the Santa Clara, Calif.-based chip giant to report earnings of 8 cents a share, on revenue of $7.3 billion, according to a consensus survey by FactSet Research.
Tuesday, July 14
Janus Capital posts $2.3 billion in net inflows (4:59 pm ET)
SAN FRANCISCO (MarketWatch) -- Janus Capital Group Inc. (JNS: news, chart, profile) said Tuesday that its second-quarter net income from continuing operations fell to $15.8 million, or 10 cents a share, from $65.6 million, or 40 cents a share in the same period last year. Long term net inflows hit $2.3 billion as firmwide assets in the quarter reflected $20 billion of net appreciation, Janus said. Assets under management fell to $132.6 billion from $191.8 billion in the period a year ago. The quarterly results included charges stemming from goodwill impairment and litigation, Janus said in a statement.
Yum Brands profit up on cost cuts, int'l growth(4:47 pm ET)
CHICAGO (MarketWatch) -- Yum Brands reported sharply higher second-quarter profit Tuesday, fueled by lower expenses and international growth. After the close of trading, Yum (YUM: news, chart, profile) said that it earned $303 million, or 63 cents a share, up from $224 million, or 45 cents a share, in the year-ago period. Excluding items the company would have earned 50 cents a share. Total revenue dipped 7% to $2.48 billion. The average estimate of analysts polled by FactSet Research had been for Louisville, Ky.-based Yum to earn 43 cents a share on revenue of $2.49 billion. Looking ahead, the company said it still expects to earn $2.10 a share, excluding items, for all of 2009.
Altera earnings fall almost 50%(4:28 pm ET)
SAN FRANCISCO (MarketWatch) -- Altera Corp. (ALTR: news, chart, profile) on Tuesday reported a fiscal second-quarter profit of $47.4 million, or 16 cents a share, on revenue of $279.2 million. Gross margins as a percent of income were 66.5%. During the same period a year ago, the programmable chipmaker earned $98 million, or 32 cents a share, on $360 million in sales. Excluding a tax expense of 4 cents a share, Altera would have earned 20 cents a share. By that measure, analysts surveyed by FactSet Research had forecast Altera to earn 19 cents a share on revenue of $277 million. For its third quarter, Altera expects gross margins of 66.5% to 67.5% and sales to fall between 1% and 5% from its second-quarter results.
Intel swings to loss due to EU fine(4:22 pm ET)
SAN FRANCISCO (MarketWatch) - Intel Corp. (INTC: news, chart, profile) on Tuesday reported a second-quarter loss of $398 million, or 7 cents a share, compared with a profit of $1.6 billion, or 28 cents a share for the year-earlier period. Revenue was $8 billion, down from $9.5 billion for the same quarter last year. Adjusted income, which excludes the impact of a fine imposed by European Commission, was 18 cents a share. Analysts had expected the Santa Clara, Calif.-based chip giant to report earnings of 8 cents a share, on revenue of $7.3 billion, according to a consensus survey by FactSet Research.
Goldman's results not sustainable: S&P(1:51 pm ET)
BOSTON (MarketWatch) -- Standard & Poor's Ratings Services on Tuesday said its rating on Goldman Sachs Group Inc. (GS: news, chart, profile) was not affected by the bank's "very strong" second-quarter earnings report. "Although Goldman Sachs may well continue outperforming its close peers, we don't consider its first-half results to be sustainable," S&P said. "Moreover, we continue to have concerns about the confidence sensitivity of securities firms with sizable trading operations and high reliance on wholesale funding, despite this strong recent showing."
Hedge fund redemptions mostly over: Goldman CFO(12:40 pm ET)
SAN FRANCISCO (MarketWatch) -- The wave of investor redemptions that crushed the hedge fund industry during the past year is mostly over, Goldman Sachs (GS: news, chart, profile) Chief Financial Officer David Viniar said during a conference call with analysts and investors on Tuesday. "It feels like we are pretty much through the redemption cycle and it actually looks like you are going to start to see some money flowing into hedge funds," he said, according to a transcript of the call. "How that continues will be really dependent on performance, but that is certainly what it feels like right now." Goldman is one of the largest prime brokers, lending money and securities to hedge funds and providing managers with other support services.
Goldman: more capital to flow into fixed income(12:29 pm ET)
SAN FRANCISCO (MarketWatch) -- More capital will eventually flow back into fixed-income markets, providing Goldman Sachs (GS: news, chart, profile) with more competition and reducing the profitability of the business, Chief Financial Officer David Viniar said during a conference call with analysts and investors on Tuesday. Goldman reported huge second-quarter profit driven by record net revenue from its Fixed Income, Currency and Commodities (FICC) business. The collapse of Lehman Brothers (LEHMQ: news, chart, profile) and the near demise of Bear Stearns has reduced competition and drained capital from fixed income markets. That left spreads wider and Goldman has been able to gain profitable market share. However, Viniar said Tuesday that some part of this is not sustainable. "Over time, firms will recover, firms will be willing to provide more risk capital, and it is going to happen over time and it will drive spreads narrower," he said. While margins are up now, it's unrealistic to think that some amount of capital won't flow back into fixed-income markets, he explained.
Goldman 'well secured, well protected' on CIT(12:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Goldman Sachs (GS: news, chart, profile) is "well secured" and "well protected" on its exposure to troubled lender CIT Group (CIT: news, chart, profile) , Chief Financial Officer David Viniar said during a conference call with analysts and investors on Tuesday. CIT secured a $3 billion long-term financing facility from Goldman last year. With collateral and hedging around the deal, Goldman is well secured and protected, Viniar explained. If CIT drew down all the $3 billion from the facility, an analyst asked the Goldman CFO whether the firm would have enough collateral to cover that amount of money. Viniar said yes.
Drug stocks mixed; J&J flat after earnings report(9:59 am ET)
BOSTON (MarketWatch) -- Drug stocks were modestly mixed early Tuesday as shares of Johnson & Johnson (JNJ: news, chart, profile) traded largely flat following a lackluster second-quarter earnings report. The NYSE Arca Pharmaceutical Index ($DRG: news, chart, profile) was up nominally at 262.20 while the NYSE Arca Biotechnology Index ($BTK: news, chart, profile) was down 0.5% at 650.50. Shares of J&J were trading at $57.67. Early Tuesday, J&J reported moderately lower earnings but reaffirmed its 2009 financial forecast.
Marathon Oil taking $100 million charge in Q2(9:19 am ET)
NEW YORK (MarketWatch) -- Marathon Oil Corp. (MRO: news, chart, profile) said Tuesday it plans to take a second-quarter charge of $100 million related to foreign currency re-measurement on deferred taxes. Liquid hydrocarbon and natural gas production available for sale from continuing operations during the second quarter is expected to be approximately 411,000 barrels of oil equivalent per day (boepd), above the company's forecast of 385,000 to 405,000. Second-quarter exploration expense is expected to be approximately $65 million, which is within previous guidance.
Weak M&A market hits Goldman's advisory fees(8:52 am ET)
BOSTON (MarketWatch) -- Goldman Sachs Group Inc. (GS: news, chart, profile) on Tuesday said net revenue in its investment-banking business dropped 15% in the second quarter from the same quarter the previous year to $1.44 billion. Net revenue in the financial advisory segment fell 54% to $369 million as the company blamed the decline on a significant pullback in mergers and acquisitions. However, within investment banking, Goldman reported improvement in its equity and debt underwriting businesses.
Goldman compensation rises in Q2, staff trimmed 1%(8:43 am ET)
NEW YORK (MarketWatch) -- Goldman Sachs Group Inc. (GS: news, chart, profile) said on Tuesday that its compensation and benefits expenses, which includes salaries, estimated year-end bonuses and related costs were $6.65 billion in the second quarter, which was higher than the second quarter of 2008. The company said the rise was primarily due to higher net revenues. The ratio of compensation and benefits to net revenues was 49% for the first half of 2009. Total staff decreased 1% during the quarter, the firm said.
Goldman books $700 mln loss on commercial loans(8:42 am ET)
BOSTON (MarketWatch) -- Goldman Sachs Group Inc. (GS: news, chart, profile) on Tuesday said second-quarter results in its fixed income, currency and commodities business included a loss of about $700 million on commercial mortgage loans. One lingering problem on banks' balance sheets is their exposure to commercial real estate as the economy remains weak and defaults rise.
Goldman's trading, FICC revenue jumps(8:34 am ET)
BOSTON (MarketWatch) -- Goldman Sachs Group Inc. (GS: news, chart, profile) on Tuesday said second-quarter net revenue in its trading and principal investments business rose 93% from the year-earlier period to $10.78 billion. Net revenue in fixed income, currency and commodities jumped 186% to $6.8 billion. "These results reflected particularly strong performances in credit products, interest rate products and currencies, reflecting strength in the client franchise," Goldman said in the earnings release. "During the quarter, FICC operated in an environment characterized by strong client-driven activity, particularly in more liquid products, favorable market opportunities and tighter corporate credit spreads," the bank added.
Goldman Sachs profit rises (8:25 am ET)
NEW YORK (MarketWatch) -- Goldman Sachs Group Inc (GS: news, chart, profile) said on Tuesday that its second quarter net income rose to $3.44 billion, or $4.93 a share, compared to $2.05 billion, or $4.58 a share a year ago. Analysts polled by Thomson Reuters had expected the company to earn $3.54 a share in the quarter. Net revenues at the firm were $13.76 billion in the second quarter, compared to $9.42 billion last year. Goldman switched from a fiscal reporting schedule to a calendar schedule last year, and this year's second quarter ended in June, while the year ago data is for the period ended May 31, 2008.
Oracle sees Sun Micro adding to profit (8:15 am ET)
NEW YORK (MarketWatch) -- Oracle Corp. (ORCL: news, chart, profile) said it expects the acquisition of Sun Microsystems Inc. (JAVA: news, chart, profile) to add at least 15 cents a share in non-GAAP earnings to its bottom line in the first full year after closing the transaction. Sun Micro will contribute more than $1.5 billion to its non-GAAP operating profit in that year, increasing to more than $2 billion in the second year. Oracle's acquisition of Sun remains subject to stockholder and regulatory approvals and other closing conditions. Oracle based its projection on Sun's preliminary second-quarter results.
J&J reports lower earnings, confirms forecast(8:04 am ET)
BOSTON (MarketWatch) -- Johnson & Johnson (JNJ: news, chart, profile) early Tuesday reported its second quarter net income dropped to $3.2 billion, or $1.15 a share, from $3.3 billion, or $1.17 a share, for the same quarter in 2008. This year's quarter saw the number of outstanding shares fall to 2.78 billion from 2.85 billion. Revenue declined 7.4% to $15.2 billion. Analysts polled by FactSet had pegged the healthcare conglomerate of posting earnings per share of $1.11, on revenue of $15 billion. The company confirmed its 2009 adjusted earnings per share forecast of $4.45 to $4.55.
Genesee & Wyoming June traffic down 1.8%(6:37 am ET)
LONDON (MarketWatch) -- Railroad operator Genesee & Wyoming Inc. (GWR: news, chart, profile) said Tuesday that traffic in June fell 1.8% from a year earlier to 64,276 carloads. Traffic for the second quarter was down 4.3% at 188,189 carloads. The group said same-railroad traffic in June was down 17.2%, in part due to lower steel shipments and a drop in pulp and paper traffic.
Investor AB swings to profit after stocks rebound(2:55 am ET)
LONDON (MarketWatch) -- Swedish investment group Investor AB (SE:INVEB: news, chart, profile) said Tuesday that it swung to a net profit of 13.83 billion kronor in the first half of 2009, from a loss of 12.46 billion kronor a year earlier. Net asset value at June 30 was 165 kronor a share, compared to 150 kronor a share at the end of 2008. The group noted that after seven sequential negative quarters, the Swedish stock market returned 26% during the second quarter for a total of 24% during the first half of the year. "Lately, the focus has been on "green shoots" in the economy. I would be surprised if the global economy isn't bottoming out and we are on our way to recovery," said CEO Boerje Ekholm. "However, visibility on the fundamental activity level in the economy is poor as we are in the middle of an inventory correction," he added.
Martin Marietta cuts 2009 earnings estimate(2:40 am ET)
TEL AVIV (MarketWatch) -- Martin Marietta Materials Inc., (MLM: news, chart, profile) the Raleigh, N.C., producer of construction materials, late on Monday cut its 2009 earnings estimate to a range of $2.70 to $3.30 a share. The figures reflect "a weaker- and slower-than-expected recovery of the general U.S. economy, a marked decrease in transportation-infrastructure spending resulting from a decline in state revenues and a longer-than-expected delay in federal-stimulus projects moving to the construction stage"; and adverse weather in the first half of the year, the company said in a statement. On May 5, when Martin Marietta reported first-quarter earnings, the company said 2009 would be a "challenging year." The company then estimated earnings at $3.70 to $4.15. A survey of analysts by FactSet Research produced a consensus estimate for 2009 of $3.57 a share.
Ferrexpo production up, margins under pressure(2:30 am ET)
LONDON (MarketWatch) -- Swiss-headquartered iron ore pellet producer Ferrexpo (UK:FXPO: news, chart, profile) said it continued to trade profitable during the second quarter. The group said freight rates from the Black Sea to China put pressure on average achieved prices and margins, but this is likely to prove a temporary phenomenon. Ferrexpo said the outlook for iron ore is improving, particularly in its traditional markets, which will reduce its reliance in the Asian seaborne spot market. Total pellet production rose 3.8% from a year earlier and the group said it produced at full mining capacity throughout the quarter.
Monday, July 13
CSX Corp. second-quarter earns fall to 78c (5:02 pm ET)
LOS ANGELES (MarketWatch) -- CSX Corp. (CSX: news, chart, profile) late Monday said second-quarter net earnings were $308 million, or 78 cents a share, compared with $385 million, or 93 cents a share, in the year-ago period. Excluding items related to the Greenbrier resort, CSX's per-share earnings from continuing operations would have declined 24% to 72 cents. Revenue for the period fell to $2.19 billion from $2.91 billion in the same period a year ago primarily because of a decline in volume and lower fuel surcharge recovery.
Take-Two cuts outlook; delays 'Bioshock 2'(4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- Take-Two Interactive Software Inc. said Monday afternoon that it was cutting its forecast for the next two quarters as the video game publisher faces a tougher retail environment, as well as the delay of "Bioshock 2" into the next fiscal year. In a statement, the company (TTWO: news, chart, profile) said it was moving "Bioshock 2" in order "to provide additional development time for the title." The game will now be released in the 2010 fiscal year, which begins in November, though no specific date was given. Take-Two said it now expects revenue between $120 million and $130 million for the current quarter and revenue of $350 million to $400 million for the period ending Oct. 31. Analysts were expecting revenue of $162.2 million and $471.4 million for the two periods, respectively.
Novellus sees losses deepen in second quarter(4:14 pm ET)
SAN FRANCISCO (MarketWatch) -- Novellus Systems Inc. said Monday that net losses sank deeper in the second quarter as sales of the company's semiconductor manufacturing equipment fell sharply amid a sharp slump across the sector. For the quarter ended June 27, Novellus (NVLS: news, chart, profile) reported a net loss of $50 million, or 52 cents a share, compared to a loss of $2.4 million, or 2 cents a share, for the same period the previous year. Excluding one-time charges, the company said it would have lost $39.3 million, or 41 cents, for the period. Revenue fell 54% to $119.2 million. Analysts were expecting a loss of 38 cents a share on revenue of $118.8 million for the quarter, according to consensus estimates from FactSet Research.
Dell sees slight second-quarter sales gain(4:12 pm ET)
SAN FRANCISCO (MarketWatch) -- Dell Inc. (DELL: news, chart, profile) on Monday said it expects to report "a slight sequential revenue increase" for its second fiscal quarter, which ends July 31. During its first quarter, Dell reported sales of $12.34 billion. In a statement, Dell Chief Financial Officer Brian Gladden said that demand for the company's products has stabilized, but that stabilization varies "by customer segment and geography." Analysts surveyed by FactSet Research had forecast Dell to report sales of $12.5 billion for its second quarter. Dell's announcement came a day before the computer giant's schedule meeting with financial analysts.
Fastenal earnings per share drop to 29 cents(8:09 am ET)
NEW YORK (MarketWatch) -- The Fastenal Co. (FAST: news, chart, profile) said Monday that second-quarter earnings fell to $44 million, or 29 cents a share, compared to $76 million, or 51 cents a share, in the same period a year ago. Sales fell 21% to $475 million from $604 million. Analysts polled by FactSet Research estimated, on average, earnings per share of 33 cents and sales of $486 million.
Nabors to take $240 million of charges(6:11 am ET)
LODNON (MarketWatch) -- Oil rig operator Nabors Industries (NBRS: news, chart, profile) said Monday that its second-quarter results will include non-cash pretax charges of around $240 million. The charge includes $178 million of impairments and reserves as well as $62 million from the acceleration into the quarter of expenses related to certain unvested stock grants. Among the items included in the charges are a $51 million reserve against a specific investment in its oil and gas operations in light of weak forward natural gas prices, and a $35 million reserve against MBIA bonds owned by the company.
Experian revenue down 8%(2:28 am ET)
LONDON (MarketWatch) -- U.K. credit checking agency Experian (UK:EXPN: news, chart, profile) said Monday that its revenue for the three months ended June 30 fell 8% due to changes in exchange rates. At constant exchange rates revenue was up 1%, driven by growth in Latin America and the Asia Pacific region. Eperian said it traded in line with its expectations for the quarter and it continues to expect little organic revenue growth for the first half of the fiscal year. In the U.K. and Ireland, revenue was down 22%, but was flat at constant exchange rates. The group said its financial position hasn't changed since the end of March and remains strong.
Philips Electronics profit tumbles(1:42 am ET)
LONDON (MarketWatch) -- Philips Electronics (PHG: news, chart, profile) (NL:PHIA: news, chart, profile) said its second-quarter profit dropped to 44 million euros from 732 million euros, with sales dropping 19% to 5.2 billion euros. The company said it did not see material improvement in consumer or professional markets in the past three months. Though still cautious, it expects its second half performance to be better than the first half, adding "there could be some early sequential improvement in comparable sales as well."
Friday, July 10
Bodycote sales down 20%, profit may miss consensus(2:28 am ET)
LONDON (MarketWatch) -- Bodycote (UK:BOY: news, chart, profile) said Friday that revenue from continuing operations in the first half of the year fell around 20% and if demand remains weak it expects earnings will be materially below recent market expectations. The group, which provides heat treatment and metallurgical coating services, said demand has been weakest in countries such as Germany and Sweden with major automotive industries. It is stepping up its cost-cutting measures, particularly in South America and Europe. Bodycote said its short order book and continuing uncertainty in market conditions makes visibility very limited, but if demand remains depressed earnings before interest and taxes for the year will be below the 24 million pound ($39 million) consensus.
Friday, July 10
Bodycote sales down 20%, profit may miss consensus(2:28 am ET)
LONDON (MarketWatch) -- Bodycote (UK:BOY: news, chart, profile) said Friday that revenue from continuing operations in the first half of the year fell around 20% and if demand remains weak it expects earnings will be materially below recent market expectations. The group, which provides heat treatment and metallurgical coating services, said demand has been weakest in countries such as Germany and Sweden with major automotive industries. It is stepping up its cost-cutting measures, particularly in South America and Europe. Bodycote said its short order book and continuing uncertainty in market conditions makes visibility very limited, but if demand remains depressed earnings before interest and taxes for the year will be below the 24 million pound ($39 million) consensus.
Infosys reports 17.3% jump in first-quarter profit(12:17 am ET)
HONG KONG (MarketWatch) -- India's Infosys Technologies (INFY: news, chart, profile) on Friday reported a better-than-expected 17.3% jump in fiscal first-quarter net profit, but forecast a bigger drop in annual profit on a difficult business environment and a strengthened rupee. The software major said it made 15.27 billion rupees ($318 million) in net income for the quarter ended June 30, while revenue grew 12.7% to 54.72 billion rupees. The company forecast its earnings per share for the full-year will decline by between 8.2% and 9.6% to a range between 94.59 and 96 rupees, under Indian accounting standards. That compared with its April prediction of an EPS between 96.65 rupees and 101.18 rupees.
Thursday, July 9
Shaw profit falls to $7.9 million (4:29 pm ET)
SAN FRANCISCO (MarketWatch) -- Shaw Group (SGR: news, chart, profile) late Thursday afternoon reported fiscal third-quarter net income fell to $7.9 billion, or 9 cents a share, from $51.9 million, or 62 cents a share, a year earlier. Shaw said foreign currency losses tied to its Westinghouse segment ate into its profit. Excluding Westinghouse, Shaw said it earned 57 cents a share, compared to 67 cents last year. Sales for the quarter were flat at $1.8 billion. Shaw said its backlog of unfilled orders at May 31, 2009, was a record $22.9 billion, up from $15.6 billion last fall. Based in Baton Rogue, La., Shaw provides engineering and construction services to the energy and chemicals industries.
AIG shares slump 21% on bearish Citi note(10:47 am ET)
SAN FRANCISCO (MarketWatch) -- American International Group shares (AIG: news, chart, profile) slumped more than 20% Thursday after Citigroup analyst Joshua Shanker said there's a strong chance that the troubled insurer's common stock goes to zero. "Our valuation includes a 70% chance that the equity at AIG is zero," the analyst wrote in a note to investors late Wednesday. That reflects the risk of further losses on credit-default swaps and the company's increased willingness to sell businesses at low valuations, Shanker explained. "While AIG may be able to pay back [the] U.S. investment as well as some debt with core asset sales, eventually the remaining businesses may be those that generate lower ROEs, handicapped by a high debt burden." AIG shares slumped 21% to $10.32 during morning action Thursday. The stock has lost more than half its value so far this month.
Destination Maternity EPS to climb more than 34%(6:14 am ET)
LONDON (MarketWatch) -- Destination Maternity (DEST: news, chart, profile) said fiscal third-quarter earnings per share are expected to rise by more than 34% to above 91 cents a share, which is above the firm's prior target between 74 cents and 91 cents a share, as it was able to reduce expenses and control markdown levels. Same-store sales in June fell 10.7% and total sales fell 10% to $41.3 million.
Stage Stores June comparable sales off (6:11 am ET)
TEL AVIV (MarketWatch) -- Stage Stores Inc., (SSI: news, chart, profile) the Houston retailer, reported that for June, comparable-store sales fell 12.6% as total sales fell 10.1% to $128 million from $142 million in the year-earlier month. A survey of analysts by Thompson Reuters produced a consensus estimate of a decline of 8% in same-store sales. "Cosmetics continued as the strongest family of business and achieved a comparable-store sales increase during June," the company said in a statement. June overall was "disappointing," President and Chief Executive Andy Hall said. Stage pared comparable-store inventories by 13%.
Costco June same-store sales fell 6%(3:09 am ET)
TEL AVIV (MarketWatch) -- Costco Wholesale Corp., (COST: news, chart, profile) the Issaquah, Wash., warehouse retailer, reported that for June, same-store sales fell 6%, matching the consensus estimate of analysts surveyed by Thomson Reuters. Net sales for the month fell 4% to $6.88 billion from $7.15 billion in the year-earlier month. The same-store sales reflected declines of 6% in the U.S. and 3% internationally. Excluding the impact of gasoline-price declines in the U.S. and foreign-exchange translations -- largely in Canada, the U.K. and South Korea -- comparable sales rose 1%.
Hays sees demand falling across all regions(3:00 am ET)
LONDON (MarketWatch) -- U.K. recruitment firm Hays (UK:HAS: news, chart, profile) said Thursday that the three months to June 30 were another tough quarter, with continued reductions in demand across all the 28 countries in which it operates. Net fees were down 37% from a year earlier, with the biggest declines seen in the U.K. and the Asia Pacific region. Demand has continued to weaken since the end of the quarter, but the group said it is positioned well to deal with the short-term market conditions after cutting costs early in the downturn.
PartyGaming revenue in line with first quarter(2:53 am ET)
LONDON (MarketWatch) -- U.K. online gambling group PartyGaming (UK:PRTY: news, chart, profile) said Thursday that group revenue since early April has been in line with that achieved in the first quarter of the year as it also announced the launch of a new poker site in Italy. The group said revenue from its casino business has grown strongly from the first quarter following a major marketing campaign. Poker revenue was down due to increased player loyalty bonuses. The group said it has increased its marketing in certain territories in order to capitalize on the recent seizure of player funds from U.S.-facing sites. This has already helped boost player numbers, but is also expected to lead to distribution costs being slightly higher than the previous guidance of 38% to 40% of net revenue.
Thursday, July 9
Shaw profit falls to $7.9 million (4:29 pm ET)
SAN FRANCISCO (MarketWatch) -- Shaw Group (SGR: news, chart, profile) late Thursday afternoon reported fiscal third-quarter net income fell to $7.9 billion, or 9 cents a share, from $51.9 million, or 62 cents a share, a year earlier. Shaw said foreign currency losses tied to its Westinghouse segment ate into its profit. Excluding Westinghouse, Shaw said it earned 57 cents a share, compared to 67 cents last year. Sales for the quarter were flat at $1.8 billion. Shaw said its backlog of unfilled orders at May 31, 2009, was a record $22.9 billion, up from $15.6 billion last fall. Based in Baton Rogue, La., Shaw provides engineering and construction services to the energy and chemicals industries.
AIG shares slump 21% on bearish Citi note(10:47 am ET)
SAN FRANCISCO (MarketWatch) -- American International Group shares (AIG: news, chart, profile) slumped more than 20% Thursday after Citigroup analyst Joshua Shanker said there's a strong chance that the troubled insurer's common stock goes to zero. "Our valuation includes a 70% chance that the equity at AIG is zero," the analyst wrote in a note to investors late Wednesday. That reflects the risk of further losses on credit-default swaps and the company's increased willingness to sell businesses at low valuations, Shanker explained. "While AIG may be able to pay back [the] U.S. investment as well as some debt with core asset sales, eventually the remaining businesses may be those that generate lower ROEs, handicapped by a high debt burden." AIG shares slumped 21% to $10.32 during morning action Thursday. The stock has lost more than half its value so far this month.
Destination Maternity EPS to climb more than 34%(6:14 am ET)
LONDON (MarketWatch) -- Destination Maternity (DEST: news, chart, profile) said fiscal third-quarter earnings per share are expected to rise by more than 34% to above 91 cents a share, which is above the firm's prior target between 74 cents and 91 cents a share, as it was able to reduce expenses and control markdown levels. Same-store sales in June fell 10.7% and total sales fell 10% to $41.3 million.
Stage Stores June comparable sales off (6:11 am ET)
TEL AVIV (MarketWatch) -- Stage Stores Inc., (SSI: news, chart, profile) the Houston retailer, reported that for June, comparable-store sales fell 12.6% as total sales fell 10.1% to $128 million from $142 million in the year-earlier month. A survey of analysts by Thompson Reuters produced a consensus estimate of a decline of 8% in same-store sales. "Cosmetics continued as the strongest family of business and achieved a comparable-store sales increase during June," the company said in a statement. June overall was "disappointing," President and Chief Executive Andy Hall said. Stage pared comparable-store inventories by 13%.
Costco June same-store sales fell 6%(3:09 am ET)
TEL AVIV (MarketWatch) -- Costco Wholesale Corp., (COST: news, chart, profile) the Issaquah, Wash., warehouse retailer, reported that for June, same-store sales fell 6%, matching the consensus estimate of analysts surveyed by Thomson Reuters. Net sales for the month fell 4% to $6.88 billion from $7.15 billion in the year-earlier month. The same-store sales reflected declines of 6% in the U.S. and 3% internationally. Excluding the impact of gasoline-price declines in the U.S. and foreign-exchange translations -- largely in Canada, the U.K. and South Korea -- comparable sales rose 1%.
Hays sees demand falling across all regions(3:00 am ET)
LONDON (MarketWatch) -- U.K. recruitment firm Hays (UK:HAS: news, chart, profile) said Thursday that the three months to June 30 were another tough quarter, with continued reductions in demand across all the 28 countries in which it operates. Net fees were down 37% from a year earlier, with the biggest declines seen in the U.K. and the Asia Pacific region. Demand has continued to weaken since the end of the quarter, but the group said it is positioned well to deal with the short-term market conditions after cutting costs early in the downturn.
PartyGaming revenue in line with first quarter(2:53 am ET)
LONDON (MarketWatch) -- U.K. online gambling group PartyGaming (UK:PRTY: news, chart, profile) said Thursday that group revenue since early April has been in line with that achieved in the first quarter of the year as it also announced the launch of a new poker site in Italy. The group said revenue from its casino business has grown strongly from the first quarter following a major marketing campaign. Poker revenue was down due to increased player loyalty bonuses. The group said it has increased its marketing in certain territories in order to capitalize on the recent seizure of player funds from U.S.-facing sites. This has already helped boost player numbers, but is also expected to lead to distribution costs being slightly higher than the previous guidance of 38% to 40% of net revenue.
Wednesday, July 8
Alcoa posts third straight loss, tops targets(4:20 pm ET)
SAN FRANCISCO (MarketWatch) -- Aluminum giant Alcoa Inc. (AA: news, chart, profile) on Wednesday reported a second-quarter loss of $454 million, or 47 cents a share, vs. a profit of 66 cents a share, or $546 million, a year ago. Losses from continuing operations came to 32 cents a share. Excluding restructuring charges, the company would have lost 26 cents a share. Revenue fell to $4.2 billion from $7.2 billion a year ago. Alcoa, which had already lost almost $1.7 billion over the previous two quarters, was expected to report another loss, on average, of 39 cents a share with total sales of $4.3 billion, according to analysts polled by FactSet Research.
Glu Mobile CEO to step aside; results in line(4:18 pm ET)
SAN FRANCISCO (MarketWatch) -- Glu Mobile Inc. said Wednesday that CEO Greg Ballard plans to step down from his position, though he will remain as the company seeks out a new candidate for the top slot. In a statement, the publisher of mobile games (GLUU: news, chart, profile) said Ballard "has indicated his intention to transition his role with the company to new leadership." Glu said it has hired executive recruiting firm Egon Zehnder to seek out a replacement. The company also said that - based on preliminary data - results for the second quarter are expected to come in within line of its previous guidance.
Wednesday, July 8
Alcoa posts third straight loss, tops targets(4:20 pm ET)
SAN FRANCISCO (MarketWatch) -- Aluminum giant Alcoa Inc. (AA: news, chart, profile) on Wednesday reported a second-quarter loss of $454 million, or 47 cents a share, vs. a profit of 66 cents a share, or $546 million, a year ago. Losses from continuing operations came to 32 cents a share. Excluding restructuring charges, the company would have lost 26 cents a share. Revenue fell to $4.2 billion from $7.2 billion a year ago. Alcoa, which had already lost almost $1.7 billion over the previous two quarters, was expected to report another loss, on average, of 39 cents a share with total sales of $4.3 billion, according to analysts polled by FactSet Research.
Glu Mobile CEO to step aside; results in line(4:18 pm ET)
SAN FRANCISCO (MarketWatch) -- Glu Mobile Inc. said Wednesday that CEO Greg Ballard plans to step down from his position, though he will remain as the company seeks out a new candidate for the top slot. In a statement, the publisher of mobile games (GLUU: news, chart, profile) said Ballard "has indicated his intention to transition his role with the company to new leadership." Glu said it has hired executive recruiting firm Egon Zehnder to seek out a replacement. The company also said that - based on preliminary data - results for the second quarter are expected to come in within line of its previous guidance.
Energy stocks rise after three-day sell-off(9:40 am ET)
NEW YORK (MarketWatch) -- Energy stocks rose in early action on Wednesday after three straight days of losses. The NYSE Arca Oil Index (XOI: news, chart, profile) rose 0.2% to 860. The NYSE Arca Natural Gas Index (XNG: news, chart, profile) rose 0.4% to 381. The Philadelphia Oil Service Index ($OSX: news, chart, profile) rose 0.8% to 147. Deutsche Bank cut its second-quarter financial target for Hess Corp. to a loss of 21 cents a share based on costs associated with exploration. Analysts cited the company's "major" dry hole at the Brazilian sub-salt appraisal well Guarini. Deutsche Bank reiterated its hold rating and a $46 a share price target. Shares of Hess Corp. (HES: news, chart, profile) rose 0.9% to $49.16.
Tractor Supply raises 2009 profit forecast(8:06 am ET)
WASHINGTON (MarketWatch) -- Tractor Supply Co. (TSCO: news, chart, profile) said it's raising its profit target for fiscal 2009, pegging earnings in a range of $2.78 to $2.92 a share. This compares with a prior projection of $2.58 to $2.74 a share, while revising its full-year sales forecast to a range of $3.15 billion to $3.25 billion, as opposed to $3.2 billion to $3.3 billion previously. The revision coincides with the Brentwood, Tenn.-based retailer's sales results for the second quarter ended June 27. Three-month sales reached $946.4 million from the prior year's $898.3 million, although adjusted same-store sales dropped 1.7%. Tractor Supply pegged second-quarter earnings at $1.48 to $1.50 a share, implying profit growth of 29% to 30% from the same period last year. The company will officially report quarterly results after the close on July 22.
Family Dollar net income climbs 36%(7:12 am ET)
NEW YORK (MarketWatch) -- Family Dollar Stores Inc. (FDO: news, chart, profile) said Wednesday third-quarter net income climbed by nearly 36% to $87.7 million, or 62 cents a share, from $64.7 million, or 46 cents a share in the year-ago period. The retailer beat the Wall Street analyst estimate of 59 cents a share in a survey by FactSet Research. The company reported a 2% increase in same-store sales in June. Fadmily Dollar expects fourth-quarter earnings of 39 to 43 cents a share, compared to the Wall Street target of 39 cents a share.
Pepsi Bottling profit up on tax settlement(7:00 am ET)
LONDON (MarketWatch) -- Pepsi Bottling Group (PBG: news, chart, profile) said second-quarter ending June 13 net income rose to $211 million, or 96 cents a share, from $174 million, or 78 cents a share, while revenue fell to $3.27 billion from $3.52 billion. The quarter included a net after-tax gain of $39 million, or 18 cents per share, as a result of a benefit from the settlement of tax audits, previously announced restructuring charges and advisory fees relating to PepsiCo's (PEP: news, chart, profile) proposal to acquire PBG. Net revenue per case fell 3%. The company sees earnings for the year at the high end of its $2.30 to $2.40 a share range, which included a 13-cents-a-share hit from currency translation. Analysts polled by FactSet had forecast quarterly earnings of 73 cents a share and annual earnings of $2.36 a share.
Tullow Oil production down 16%(2:39 am ET)
LONDON (MarketWatch) -- U.K. exploration and production group Tullow Oil (UK:TLW: news, chart, profile) said Wednesday that working interest production in the first half of 2009 fell 16% to 59,000 barrels of oil equivalent per day. Production for 2009 as a whole is now expected to average 58,000 barrels a day, due to mixed results from infill wells in the U.K. Realized prices declined, with the realized oil price around $53 a barrel, compared to $80 a barrel a year earlier. The group said it will take charges including a 12 million pound ($19.4 million) asset impairment and lifted its capital expenditure forecast for the year to 700 million pounds due to additional exploration in Ghana and Uganda. CEO Aidan Heavey said exploration in the period "resulted in significant resource additions in Uganda and the discovery of the potentially transformational Tweneboa field in Ghana." He added the group has also finalized a development plan with the Ghanian government for its Jubilee field.
3i investment proceeds drop, net debt reduced(2:27 am ET)
LONDON (MarketWatch) -- U.K. private equity investment firm 3i Group (UK:III: news, chart, profile) said Wednesday that realized proceeds from its investments fell 46% in its fiscal first quarter to 163 million pounds ($263 million) from 301 million pounds a year earlier. Investments in the three months ending June 30 fell 82% to 76 million pounds. "Our focus in the first quarter was on strengthening the balance sheet. A substantial increase in liquidity and the reduction in net debt provide further resilience in what remains a fragile environment," said CEO Michael Queen. He added the firm continues to take a cautious approach to new investments. Net debt was reduced to 961 million pounds from 1.91 billion pounds at the start of the quarter following the group's rights issue.
Tuesday, July 7
ConocoPhillips sees 1.86 million BOE production(8:42 am ET)
NEW YORK (MarketWatch) -- ConocoPhillips (COP: news, chart, profile) said Tuesday it expects second-quarter production of 1.86 million barrel-of-oil equivalent per day, including Syncrude and excluding Lukoil. Exploration expenses are expected to be approximately $225 million before-tax for the quarter. Refining and marketing results are expected to be impacted by significantly compressed light-heavy crude differentials, low worldwide distillate margins and the impact of inventory levels, the company said.
Greenbrier swings to loss after goodwill charge(6:26 am ET)
LONDON (MarketWatch) -- Railroad car manufacturer Greenbrier Cos. Inc. (GBX: news, chart, profile) said Tuesday that it swung to a fiscal third-quarter net loss of $50.5 million, or $3 a share, from a profit of $8.1 million, or 49 cents a share, as a disagreement with General Electric (GE: news, chart, profile) continues. Total revenue dropped 36% to $244.4 million. The group said its loss was caused by a goodwill impairment charge of $55.7 million. Excluding that charge, earnings for the quarter would have been 3 cents a share. Analysts polled by FactSet had been expecting a loss of 2 cents a share on revenue of $228.7 million. The group said it's still in talks with General Electric over the industrial giant's desire to reduce a multi-year contract. Greenbrier said that GE has unilaterally reduced the number of railcars it would accept for delivery. The group added that it believes that GE is in breach of its obligations under the contract. Greenbrier said it will cease new railcar production at its Concarril plant in Mexico and furlough another 550 workers.
Finnair traffic down 13.4%(2:40 am ET)
LONDON (MarketWatch) -- Finnish airline Finnair (FNNNF: news, chart, profile) said Tuesday that total traffic in June fell 13.4% and the number of passengers carried declined 12.2% to 641,989 as demand continues to weaken. The group said the lower demand reduced the average price per passenger kilometer by more than 18% for the second quarter as a whole. Capacity was down 14.2% in June compared to a year earlier, resulting in a 0.6 percentage point increase in load factor to 74%.
Japan Aeon's first-quarter profit slips 62%(2:35 am ET)
TOKYO (MarketWatch) -- Japanese retailer Aeon Co. (JP:8267: news, chart, profile) Tuesday posted a 62% percent fall in operating profit to 8.72 billion yen ($91.5 million) in its first quarter ended in May from the same quarter a year ago. Aeon is also a majority owner of U.S. women's apparel retailer Talbots Inc. (TLB: news, chart, profile) . For the full year through February, the company kept its operating profit forecast of 130 billion yen to 140 billion yen, which was above an average estimate of 128.7 billion yen in a poll of 13 analysts by Thomson Reuters.
Michael Page gross profit drops 45%(2:31 am ET)
LONDON (MarketWatch) -- Recruitment firm Michael Page International (UK:MPI: news, chart, profile) said Tuesday that its second-quarter gross profit fell 45% to 83.8 million pounds ($136.2 million) as earnings declined across all its regions. The group said that while market conditions continued to weaken, the rate of decline in the U.K. has slowed and gross profit in the region was at a similar level to the first quarter of the year. Group headcount declined by 429, or around 10%. "As we enter the seasonally quiet summer period, we anticipate a challenging third quarter," the group said.
Monday, July 6
Chubb may face $2 bln in D&O losses, analyst says(12:34 pm ET)
SAN FRANCISCO (MarketWatch) -- Chubb Corp. (CB: news, chart, profile) may face $2 billion in losses from directors and officers insurance policies it has sold as litigation surges in the wake of the financial crisis and recession, Barclays Capital analyst Jay Gelb wrote in a note to investors Monday. "Chubb does not appear appropriately reserved in this line," the analyst said. "If Chubb's 2008 U.S. D&O accident year loss ratio of 78% rose to the peak developed loss ratio over the past 10 years of 120% (which occurred in 2002 due to the tech bubble/IPO laddering), we estimate Chubb could report additional D&O losses of $2 billion, pre-tax over several years." Gelb cut his price target on Chubb shares to $41 from $43, but kept his equal weight rating. That's because Chubb shares trade at a historically low one times book value. Chubb shares rose 1.1% to $39.23 during afternoon trading on Monday.
Monday, July 6
Chubb may face $2 bln in D&O losses, analyst says(12:34 pm ET)
SAN FRANCISCO (MarketWatch) -- Chubb Corp. (CB: news, chart, profile) may face $2 billion in losses from directors and officers insurance policies it has sold as litigation surges in the wake of the financial crisis and recession, Barclays Capital analyst Jay Gelb wrote in a note to investors Monday. "Chubb does not appear appropriately reserved in this line," the analyst said. "If Chubb's 2008 U.S. D&O accident year loss ratio of 78% rose to the peak developed loss ratio over the past 10 years of 120% (which occurred in 2002 due to the tech bubble/IPO laddering), we estimate Chubb could report additional D&O losses of $2 billion, pre-tax over several years." Gelb cut his price target on Chubb shares to $41 from $43, but kept his equal weight rating. That's because Chubb shares trade at a historically low one times book value. Chubb shares rose 1.1% to $39.23 during afternoon trading on Monday.
Regis plans share sale, revenue drops 2.5%(6:38 am ET)
LONDON (MarketWatch) -- Beauty Salon operator Regis Corp. (RGS: news, chart, profile) said Monday that it plans to sell around 11.5 million new shares and offer $125 million of convertible senior notes, as it also said fiscal fourth-quarter revenue dropped 2.5% to $625 million. The group said it will use the proceeds from its share and note sale to repay $267 million of private placement debt of varying maturities, with the remaining proceeds to be used for general corporate purposes, including the repayment of bank debt. The group said that, as expected, same-store sales for the fiscal fourth quarter were down 4%. Analysts polled by FactSet were expecting sales of $630.6 million. Regis said that in connection with the stock offering it has amended its revolving credit facility and term loan facility in order to provide relief with respect to certain covenants.
SocGen sees slightly positive net income(2:50 am ET)
LONDON (MarketWatch) -- French bank Societe Generale (FR:GLE: news, chart, profile) said Monday that it expects its second-quarter net income to be "slightly positive." The group said a solid performance in corporate and investment banking will absorb the significant negative impact of the substantial tightening of credit spreads as markets have improved and risk aversion has reduced since mid-March. The bank said its net banking income is expected to include a 1.3 billion euro negative impact from credit default swaps used to hedge its loan portfolio and from debt instruments issued by the group. The Tier 1 and Core Tier 1 ratios are expected to be close to their levels at the end of March.
EasyJet passenger numbers edge up 0.8%(2:26 am ET)
LONDON (MarketWatch) -- U.K. low-cost airline easyJet (UK:EZJ: news, chart, profile) said Monday that the total number of passengers it carried in June rose 0.8% to 4.15 million from 4.11 million. The airline's load factor, a measure of passengers against available seats, fell by 0.6 percentage points to 86.3%.
Friday, July 3
Bank of Ireland's margin under pressure(2:28 am ET)
LONDON (MarketWatch) -- Bank of Ireland (UK:BKIR: news, chart, profile) (IRE: news, chart, profile) said Friday that trading conditions remain challenging in its main markets and its primary objective continues to be maintaining the stability of the bank. The group said demand for new lending remains muted and that the lower interest rate environment and higher wholesale funding costs are having a significant negative impact on net interest margin. The economic trends that led the bank to forecast around 6 billion euros ($8.4 billion) of impairments through March 2011 are broadly as expected. The bank said it's also continuing "to engage positively" with the National Asset Management Agency, which will inject funding into the Irish banking system when new legislation is agreed later this year. Including recent moves to strengthen its capital, the bank's previously announced 9.5% Core Tier 1 ratio would have been around 10.5%, it added.
Thursday, July 2
Acuity Brands' third-quarter profit tumbles(9:04 am ET)
NEW YORK (MarketWatch) -- Acuity Brands Inc. (AYI: news, chart, profile) said Thursday that its third-quarter net income fell to $22 million, or 53 cents a share, from $41.1 million, or $1.00 a share, in the year-ago period. On a continuing operations basis, it earned 54 cents a share compared with $1.01 a share in the year-earlier quarter. On average, analysts polled by FactSet Research were looking for earnings of 57 cents a share. Net sales at the maker of lighting fixtures declined to $397 million from $512 million, hurt by the decline in construction activity.
Thursday, July 2
Acuity Brands' third-quarter profit tumbles(9:04 am ET)
NEW YORK (MarketWatch) -- Acuity Brands Inc. (AYI: news, chart, profile) said Thursday that its third-quarter net income fell to $22 million, or 53 cents a share, from $41.1 million, or $1.00 a share, in the year-ago period. On a continuing operations basis, it earned 54 cents a share compared with $1.01 a share in the year-earlier quarter. On average, analysts polled by FactSet Research were looking for earnings of 57 cents a share. Net sales at the maker of lighting fixtures declined to $397 million from $512 million, hurt by the decline in construction activity.
Xilinx cuts June-quarter sales forecast(8:21 am ET)
NEW YORK (MarketWatch) -- Xilinx Inc. (XLNX: news, chart, profile) said Thursday that it now expects June-quarter sales to decline about 5% sequentially, compared to previous guidance of down 4% to up 4%. The semiconductor maker blamed the shortfall on supply constraints for certain Virtex-5 devices that are in high demand, but that should be resolved next quarter. The company's forecasts for gross margin and operating expense remain unchanged.
Greene King profit down 68% after impairment(2:26 am ET)
LONDON (MarketWatch) -- U.K. brewer and pub operator Greene King (UK:GNK: news, chart, profile) said Thursday that its profit for the fiscal year ended May 3 fell 68% to 39.5 million pounds ($65.1 million) as revenue dipped 0.6% to 954.6 million pounds. Excluding the impact of an extra week in the previous fiscal year, revenue rose 1.3%, the group said. The group said it achieved comparable sales growth of 1.7% in its retail business and added that trading conditions generally improved from around December, though it added cost pressures remain and both economic and political uncertainty are affecting consumer confidence. The drop in profit was mainly due to a 53.5 million pound impairment charge. In the brewing business, own-brewed volume rose 1.8%. The group, which recently completed a 207.5 million pound rights issue, said trading has been stronger since the start of the new fiscal year, with comparable sales in its Greene King retail business up 5.2%.
Wednesday, July 1
Continental Airlines June traffic down 6.5%(9:18 pm ET)
NEW YORK (MarketWatch) -- Continental Airlines (CAL: news, chart, profile) said Wednesday that traffic in June fell 6.5% and capacity decreased 7.8% compared with the same month a year ago. Consolidated load factor, or the percentage of the plane filled with passengers, was up 1.1 percentage points on year to 84.8%, the Houston-based carrier said.
Drug stocks mixed; Myriad tanks on outlook(9:42 am ET)
BOSTON (MarketWatch) -- Drug stocks were mixed early Wednesday while shares of Myriad Genetics (MYGN: news, chart, profile) tanked on news that 2009 revenue would come in below its previous forecast. The NYSE Arca Pharmaceutical Index ($DRG: news, chart, profile) rose 0.5% to 53.26 as the NYSE Arca Biotechnology Index ($BTK: news, chart, profile) fell 0.4% to 694.21. The Dow Jones Industrial Average (DJII: news, chart, profile) climbed about 70 points to 8,519. Shares of Myriad dropped nearly 25% to $27.31.
Wednesday, July 1
Drug stocks mixed; Myriad tanks on outlook(9:42 am ET)
BOSTON (MarketWatch) -- Drug stocks were mixed early Wednesday while shares of Myriad Genetics (MYGN: news, chart, profile) tanked on news that 2009 revenue would come in below its previous forecast. The NYSE Arca Pharmaceutical Index ($DRG: news, chart, profile) rose 0.5% to 53.26 as the NYSE Arca Biotechnology Index ($BTK: news, chart, profile) fell 0.4% to 694.21. The Dow Jones Industrial Average (DJII: news, chart, profile) climbed about 70 points to 8,519. Shares of Myriad dropped nearly 25% to $27.31.
Constellation Brands profit falls (7:49 am ET)
NEW YORK (MarketWatch) -- Drinks firm Constellation Brands Inc. (STZ: news, chart, profile) said on Wednesday that its fiscal first quarter net income fell to $6.5 million, or 3 cents a share, from $44.6 million, or 20 cents a year ago. Constellation said net sales in the quarter fell to $791.6 million, from $931.8 million a year ago. Constellation also said it sees its full year 2010 net income between 97 cents a share and $1.07 a share. It expects 2010 free cash flow of $230 million to $270 million.
General Mills sees adjusted 2010 net up 6% to 7%(6:06 am ET)
TEL AVIV (MarketWatch) -- General Mills, (GIS: news, chart, profile) the Minneapolis cereal giant, estimated fiscal 2010 earnings at $4.20 to $4.25 a share, assuming no impact from marking to market the valuation of commodity positions. The net income will include such valuation but the company can't predict how it will affect the bottom line, General Mills said. The estimate further includes a negative foreign-exchange impact of 15 cents a share. The estimate reflects growth of 6% to 7% from fiscal 2009's profit of $3.98 a share. For fiscal 2010, FactSet Research's survey of analysts reflects a consensus estimate of $4.18 a share.
General Mills 4th-period net nearly doubled(5:56 am ET)
TEL AVIV (MarketWatch) -- General Mills, (GIS: news, chart, profile) the Minneapolis cereal giant, reported fiscal fourth-quarter net income nearly doubled on 5% higher net sales. For the quarter ended May 31, net income reached $358.8 million, or $1.07 a share, from $185.2 million, or 53 cents, in the year-earlier quarter. On an adjusted basis, earnings were 86 cents a share against 73 cents. Sales advanced to $3.65 billion from $3.47 billion. A survey of analysts by FactSet Research produced consensus estimates of 81 cents of profit on $3.7 billion of sales. General Mills reported that foreign-currency translations reduced sales growth in the quarter by three percentage points.
National Express hit by rail losses, CEO to leave(2:35 am ET)
LONDON (MarketWatch) -- U.K. bus and rail operator National Express Group (UK:NEX: news, chart, profile) said Wednesday that all of its businesses experienced difficult market conditions in the first half of the year as it also announced that CEO Richard Bowker will leave at the end of August. The group said higher hedged fuel costs are expected to add 11 million pounds ($18.1 million) of costs in the first half of the year, while increased pension costs will add a further 3 million pounds. The group said it's planning cost cuts that will save 40 million pounds, but profitability will be hit in the first half, mainly due to a loss of over 20 million pounds from its east coast franchise. Bowker is leaving to become CEO designate of Union Railway in the UAE. John Devaney, currently non-executive chairman, will become executive chairman, and Ray O'Toole will become chief operating officer while the board seeks a new CEO.
Wood Group sees market conditions unchanged(2:23 am ET)
LONDON (MarketWatch) -- John Wood Group (UK:WG: news, chart, profile) , which provides services to the energy industry, said Wednesday that although oil prices have strengthened over recent weeks, market conditions remain broadly similar to those earlier in the year. The group said performance in the year to data therefore remains in line with expectations.
Sodexo revenue up 11% in quarter, 8.8% in 9 months(1:33 am ET)
TEL AVIV (MarketWatch) -- Sodexo, (SDXAY: news, chart, profile) (FR:SW: news, chart, profile) the Paris provider of food and facilities-management services, reported that fiscal third-quarter revenue rose 11% to 3.77 billion euros ($5.29 billion) from 3.4 billion in the year-earlier quarter. For the nine months ended May 31, revenue rose 8.8% to 11.4 billion euros from 10.48 billion a year earlier. For the nine months, organic growth -- excluding acquisitions -- was 3.4%, and currency effects added 1.7% to the revenue number. Sodexo "is on track to achieve its objectives" for the fiscal year, Chief Executive Michel Landel said in a statement on Wednesday.
Tuesday, June 30
Sealy swings to quarterly loss (4:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Sealy Corp. [s:zz] late Tuesday reported it swung to a net loss of $5.2 million, or 6 cents a share, from a profit of $12 million, or 13 cents a share, in the same quarter last year. The quarterly results included charges of 13 cents a share related to the company's refinancing of its senior credit facility and rights for convertible notes. Revenue slid to $298.5 million from $375.4 million a year ago, the Trinity, N.C.-based bedding products manufacturer said. Analysts surveyed by FactSet Research, on average, had forecast earnings of 5 cents a share on revenue of $299.6 million.
Citi downgrades Southern Co. to hold(9:04 am ET)
NEW YORK (MarketWatch) -- Citi on Tuesday downgraded shares of Southern Co. (SO: news, chart, profile) to hold from buy after the utility firm broke though the broker's target price of $31.50 a share. Analyst Brian Chin said in a note to clients that Southern Co.'s ability to win rate increases may slow down in the face of the recession. Chin reiterated his price target of $31.50 a share.
Tuesday, June 30
Sealy swings to quarterly loss (4:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Sealy Corp. [s:zz] late Tuesday reported it swung to a net loss of $5.2 million, or 6 cents a share, from a profit of $12 million, or 13 cents a share, in the same quarter last year. The quarterly results included charges of 13 cents a share related to the company's refinancing of its senior credit facility and rights for convertible notes. Revenue slid to $298.5 million from $375.4 million a year ago, the Trinity, N.C.-based bedding products manufacturer said. Analysts surveyed by FactSet Research, on average, had forecast earnings of 5 cents a share on revenue of $299.6 million.
Citi downgrades Southern Co. to hold(9:04 am ET)
NEW YORK (MarketWatch) -- Citi on Tuesday downgraded shares of Southern Co. (SO: news, chart, profile) to hold from buy after the utility firm broke though the broker's target price of $31.50 a share. Analyst Brian Chin said in a note to clients that Southern Co.'s ability to win rate increases may slow down in the face of the recession. Chin reiterated his price target of $31.50 a share.
Deere & Co. says 800 workers take buyouts(8:39 am ET)
NEW YORK (MarketWatch) -- Deere & Co. (DE: news, chart, profile) said Tuesday it'll take a larger-than-expected fourth-quarter charge of $100 million after 800 salaried employees took voluntary buyouts. Deere said it had expected a charge of about $50 million for the program, which it initially announced in April. The farm equipment maker expects the cuts will save $75 million in the first year.
American Express YTD gain of 29% leads DJIA (7:09 am ET)
NEW YORK (MarketWatch) -- American Express (AXP: news, chart, profile) leads the 30 stocks in the Dow Jones Industrial Average ($DJ: news, chart, profile) with a year-to-date gain of 29.4% with one trading day left to the first half of 2009. The blue chip financial firm is trailed by IBM (IBM: news, chart, profile) in the No. 2 slot with a year-to-date gain of 25.8%, followed by Microsoft (MSFT: news, chart, profile) with a gain of 22.7%. General Electric (GE: news, chart, profile) places last with a loss of 27.4% so far this year. The list of Dow component results was compiled by Dow Jones Indexes. Dow Jones and MarketWatch are both owned by News Corp.
Schnitzer posts 3rd-quarter loss; (6:12 am ET)
TEL AVIV (MarketWatch) -- Schnitzer Steel Industries Inc., (SCHN: news, chart, profile) the Portland, Ore., provider of recycled metal products, swung to a fiscal-third-quarter net loss from a year-earlier profit on 58% lower revenue. For the quarter ended May 31, the loss was $1.5 million, or 5 cents a share, compared with net income of $62 million, or $2.14, in the year-earlier quarter. Revenue fell to $411.8 million from $972.1 million. A survey of analysts by FactSet Research produced consensus estimates of a profit of 11 cents a share on revenue of $378 million.
Wall Street's 2nd quarter is seen strong: Journal(4:15 am ET)
TEL AVIV (MarketWatch) -- Wall Street's securities firms (JPM: news, chart, profile) (GS: news, chart, profile) (MS: news, chart, profile) (BAC: news, chart, profile) are expected to post their strongest quarters since the credit crisis began, The Wall Street Journal reported. They've done so not with risk and leverage but with their basic businesses, trading and underwriting, the Journal reported. Second-quarter debt issuance of $1.5 trillion through Monday eased a bit from the first quarter, the Journal reported, citing Dealogic statistics. But equity offerings nearly quadrupled in the second quarter from the first, to $260 billion, Dealogic reported, according to the Journal.
Arriva sees slowing growth in train business(2:23 am ET)
LONDON (MarketWatch) -- U.K. bus and train operator Arriva (UK:ARI: news, chart, profile) said Tuesday that passenger revenue growth has slowed in its U.K. train business, reflecting the weaker economic conditions. Excluding the impact of lower revenue growth in the CrossCountry trains unit, group results for the first six months of 2009 are expected to be broadly in line with management expectations, the firm said. In the bus unit, trading has continued to be strong, helping offset an increase in fuel costs in the first half of the year. Adjusted for the number of trading days, revenue in the unit was up 5.2% in the first five months of the year, Arriva said.
Petrofac backlog set to double(2:19 am ET)
LONDON (MarketWatch) -- Oil and gas services group Petrofac [s:uk:pfc] said Tuesday that it has had a good start to the year and is "increasingly confident that 2009 will be another year of strong growth." The group said year-to-date order intake is around $5.4 billion, including $5 billion of new engineering and construction project awards. Total backlog is expected to be around $8 billion at June 30, or roughly double the total at the end of 2008.
Monday, June 29
H&R Block quarterly income jumps to $2.09 a share(4:59 pm ET)
SAN FRANCISCO (MarketWatch) -- H&R Block Inc. (HRB: news, chart, profile) late Monday reported a fourth-quarter net income of $706.9 million, or $2.09 a share, compared with a profit of $543.6 million, or $1.66 a share, in the same period last year. Revenue slid to $2.47 billion from $2.54 billion a year earlier. Analysts polled by FactSet projected earnings of $2.06 a share on revenue of $2.53 billion. In 2010, the tax services provider expects adjusted earnings of $1.60 to $1.80 a share.
Monday, June 29
H&R Block quarterly income jumps to $2.09 a share(4:59 pm ET)
SAN FRANCISCO (MarketWatch) -- H&R Block Inc. (HRB: news, chart, profile) late Monday reported a fourth-quarter net income of $706.9 million, or $2.09 a share, compared with a profit of $543.6 million, or $1.66 a share, in the same period last year. Revenue slid to $2.47 billion from $2.54 billion a year earlier. Analysts polled by FactSet projected earnings of $2.06 a share on revenue of $2.53 billion. In 2010, the tax services provider expects adjusted earnings of $1.60 to $1.80 a share.
Premier Foods trading matching expectations(2:29 am ET)
LONDON (MarketWatch) -- Premier Foods (UK:PFD: news, chart, profile) said Monday that trading in May and June continued in line with the trends seen in the first four months of the year. The group said it saw good growth in sales for its grocery division and an improving market share in its bread business, although sales of bulk flour declined due to the previously-announced exit from a low-margin contract. Profitability in its chilled foods business has been reduced by higher marketing spend and production costs. The group said expectations for sales and profit for the year are unchanged.
Informa sees trading in line with expectations(2:22 am ET)
LONDON (MarketWatch) -- U.K. publishing and events group Informa (UK:INF: news, chart, profile) said Monday that it is continuing to trade in line with management expectations. The group said its publishing business continued to grow and will benefit from an improved operating profit margin after further cost-cutting. In events and training, revenue in the first six months of the year will be considerably lower than a year earlier as the group has cut volume in the face of weak demand. Restructuring costs for the year to data are around 10 million pounds, with annualized savings of around 20 million pounds.
Sunday, June 28
Elpida gains on report of $2.1 billion in aid(9:38 pm ET)
LOS ANGELES (MarketWatch) -- Shares in Elpida Memory Inc. (JP:6665: news, chart, profile) (ELPDF: news, chart, profile) traded 6.5% higher midmorning in Tokyo after a weekend report saying it could receive up to 200 billion yen ($2.1 billion) in funding support. Japan's Nikkei newspaper reported Saturday that the funding injection for Elpida over the next three years will come from the government-backed Development Bank of Japan and by a public-private fund that supports innovation.
Friday, June 26
Palm gains highlight early tech trading action(9:53 am ET)
SAN FRANCISCO (MarketWatch) -- Technology stocks were mostly on the rise in early trading Friday, with Palm Inc. (PALM: news, chart, profile) among the top gainers. Palm's share rose $1.55, or more than 11%, to $15.50 after the smart phone maker reported a fourth-quarter loss that was less than what Wall Street analysts had forecast. Other gains came from Apple Inc. (AAPL: news, chart, profile) , Dell Inc. (DELL: news, chart, profile) and Cisco Systems Inc. (CSCO: news, chart, profile) . The tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) was at its breakeven point of 1,828.
Energy stocks retreat as broad market drops(9:36 am ET)
NEW YORK (MarketWatch) -- Energy stocks moved into the red with the broad market on Friday morning as shares fell back from gains in the previous session. The NYSE Arca Oil Index (XOI: news, chart, profile) dipped 0.7% to 911. The NYSE Arca Natural Gas Index (XNG: news, chart, profile) fell 0.8% to 414. The Philadelphia Oil Service Index ($OSX: news, chart, profile) dropped 0.6% to 161. The Dow Jones Industrial Average fell 25 points, or 0.2%.
Shaw Communications Q3 net edges up(8:44 am ET)
NEW YORK (MarketWatch) -- Shaw Communications Inc. (SJR: news, chart, profile) on Friday said third-quarter net income rose slightly to $131.95 million, from $128.1 million, or 30 cents a share in the year-ago period. The Calgary, Alb. cable TV and communications firm said revenue rose to $861.4 million from $792.2 million. Analysts expected earnings of 26 cents a share, according to a survey by FactSet Research. (Updated to correct analyst target figure.)
KB Home's quarterly loss narrows(8:19 am ET)
BOSTON (MarketWatch) -- KB Home (KBH: news, chart, profile) on Friday reported a net loss of $78.4 million, or $1.03 a share, compared with a loss of $255.9 million, or $3.30 a share, in the same quarter the prior year. The Los Angeles-based home builder said impairment charges shrunk to $49.5 million from $176.5 million. Revenue fell 40% from the year-ago quarter to $384.5 million, KB Home said. Analysts surveyed by Thomson Reuters had forecast a loss of 64 cents a share on revenue of $339.1 million, on average.
Thursday, June 25
Accenture quarterly net income falls slightly(4:51 pm ET)
SAN FRANCISCO (MarketWatch) -- Accenture Ltd. (ACN: news, chart, profile) said late Thursday that fiscal third-quarter net income came in at $444 million, down slightly from a year earlier when the consulting and out-sourcing firm made $469 million. Net income per share, which includes minority interests in some Accenture businesses, came in at 68 cents a share in the latest period. Accenture shares climbed 5.6% to $33.40 during after-hours trading on Thursday.
Micron Technology loss widens to $290 million(4:16 pm ET)
SAN FRANCISCO (MarketWatch) -- Micron Technology Inc. (MU: news, chart, profile) on Thursday reported a fiscal third-quarter loss of $290 million, or 36 cents a share, compared to a loss of $236 million, or 30 cents a share, during the same period a year ago. Revenue fell 26% to $1.1 billion from $1.5 billion in the prior year. Analysts surveyed by FactSet Research had forecast the memory chip maker to lose 39 cents a share on $1.2 billion in sales.
Palm net losses grow in fourth quarter(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- Palm Inc. saw net losses grow deeper on a sharp drop in sales in its fourth fiscal quarter -- which ended before the company's popular Pre smartphone went on sale. For the period ended May 29, the wireless device maker (PALM: news, chart, profile) reported a net loss of $105 million, or 78 cents a share, compared to a loss of $43.4 million, or 40 cents a share, for the same period the previous year. Excluding stock-option charges and expenses related to restructuring, Palm said net losses would have totaled $53.4 million, or 40 cents a share, for the recent period. Revenue fell more than 70% to $86.8 million. Analysts were expecting a loss of 62 cents a share on revenue of $80.6 million, according to consensus forecasts from Thomson Reuters.
Thursday, June 25
Accenture quarterly net income falls slightly(4:51 pm ET)
SAN FRANCISCO (MarketWatch) -- Accenture Ltd. (ACN: news, chart, profile) said late Thursday that fiscal third-quarter net income came in at $444 million, down slightly from a year earlier when the consulting and out-sourcing firm made $469 million. Net income per share, which includes minority interests in some Accenture businesses, came in at 68 cents a share in the latest period. Accenture shares climbed 5.6% to $33.40 during after-hours trading on Thursday.
Micron Technology loss widens to $290 million(4:16 pm ET)
SAN FRANCISCO (MarketWatch) -- Micron Technology Inc. (MU: news, chart, profile) on Thursday reported a fiscal third-quarter loss of $290 million, or 36 cents a share, compared to a loss of $236 million, or 30 cents a share, during the same period a year ago. Revenue fell 26% to $1.1 billion from $1.5 billion in the prior year. Analysts surveyed by FactSet Research had forecast the memory chip maker to lose 39 cents a share on $1.2 billion in sales.
Palm net losses grow in fourth quarter(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- Palm Inc. saw net losses grow deeper on a sharp drop in sales in its fourth fiscal quarter -- which ended before the company's popular Pre smartphone went on sale. For the period ended May 29, the wireless device maker (PALM: news, chart, profile) reported a net loss of $105 million, or 78 cents a share, compared to a loss of $43.4 million, or 40 cents a share, for the same period the previous year. Excluding stock-option charges and expenses related to restructuring, Palm said net losses would have totaled $53.4 million, or 40 cents a share, for the recent period. Revenue fell more than 70% to $86.8 million. Analysts were expecting a loss of 62 cents a share on revenue of $80.6 million, according to consensus forecasts from Thomson Reuters.
McCormick sees quarterly profit fall(7:27 am ET)
NEW YORK (MarketWatch) -- McCormick & Co. (MKC: news, chart, profile) said Thursday that its fiscal second quarter net income was $50.7 million, or 38 cents share, compared to $53.3 million, or 41 cents a share, in the year ago period. On an adjusted basis, earnings per share were 42 cents compared to 39 cents in the fiscal second quarter of 2008. Analysts surveyed by FactSet Research had expected, on average, adjusted earnings per share of 41 cents. The spice and seasonings maker reaffirmed its fiscal 2009 forecast of earnings per share between $2.24 and $2.28, and sales growth of 2% to 3%.
Lennar second-quarter loss widens to $125.2 mln(6:18 am ET)
LONDON (MarketWatch) -- Lennar Corp. (LEN: news, chart, profile) (LEN.B: news, chart, profile) on Thursday reported a net loss of $125.2 million, or 76 cents a share, in the second quarter, compared to a net loss of $120.9 million, or 76 cents a share, in the same period in 2008. The results include a charge of 38 cents related to valuation adjustments and other write-offs and a 27-cent charge tied to a non-cash deferred tax asset valuation allowance. A survey of analysts by FactSet Research produced a consensus forecast for a net loss of 70 cents a share. The Miami-based homebuilder said revenues totaled $891.9 million, a 21% decline. "As we continue our intense focus on rebuilding homebuilding profitability and on cash generation, we are well positioned with a strong balance sheet to navigate the current market and to take advantage of opportunities as they present themselves," said Lennar CEO Stuart Miller, in a news release.
Hertz estimates second-quarter profit(6:01 am ET)
TEL AVIV (MarketWatch) -- Hertz Global Holdings Inc., (HTZ: news, chart, profile) the Park Ridge, N.J., car-rental provider, estimated on Thursday that second-quarter adjusted net income would range 9 cents to 10 cents a share on revenue of $1.7 billion to $1.75 billion. A survey of analysts by FactSet Research produced a consensus estimate of a loss of 1 cent a share. Chairman and Chief Executive Mark P. Frissora said in a statement that the company was able to resume providing earnings estimates because "car-rental demand in the U.S. and Europe has stabilized" and "summer peak reservation build in both markets" is better than the company expected. And Hertz expects "no significant long-term financial impact from the GM and Chrysler bankruptcies," the executive said.
DSG International loss narrows(2:34 am ET)
LONDON (MarketWatch) -- U.K. electronic goods retailer DSG International (UK:DSGI: news, chart, profile) said Thursday that its net loss for the year ending May 2 narrowed to 219.4 million pounds ($360.1 million) from 260.8 million pounds, while revenue slipped 1% to 8.36 billion pounds. Comparable sales for the fiscal year were down 9% and underlying retail profit fell 57% to 95.5 million pounds. DSG said it expects the weak conditions to continue through the coming year in many of its markets. It will focus on managing costs, margins, stock and cashflow, adding that it remains confident of its medium-term target of achieving a 3% to 4% return on sales.
Wednesday, June 24
Nike posts lower profit(4:33 pm ET)
SAN FRANCISCO (MarketWatch) -- Nike Inc. (NKE: news, chart, profile) late Thursday reported fiscal fourth-quarter net income fell 30% to $341.4 million, or 70 cents a share, compared to net income of $490.5 million, or 98 cents a share, a year ago. Excluding items, Nike said it earned 99 cents a share. Analysts polled by FactSet had pegged the athletic shoe and apparel maker to earn 96 cents a share. Sales fell 7% to $4.7 billion. Nike said worldwide futures orders for Nike brand athletic footwear and apparel, scheduled for delivery from June 2009 through November 2009, was $7.8 billion, down 12% from a year ago. Nike shares fell 4.9% in late trading.
Bed Bath & Beyond profit up, same-store sales dip(4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- Bed Bath & Beyond, Inc. (BBBY: news, chart, profile) on Wednesday reported a first-quarter net income of $87.2 million, or 34 cents a share, up from $76.8 million, or 30 cents a share, a year ago. Sales rose 2.8% to $1.69 billion. Analysts polled by FactSet Research were looking for a profit, on average, of 24 cents a share with sales of $1.68 billion. Same store sales for the home furnishings retailer fell 1.6%. The shares jumped more than 6% to $30.12 in after-hours trading.
Red Hat tops views with profit increase(4:15 pm ET)
SAN FRANCISCO (MarketWatch) -- Red Hat Inc. (RHT: news, chart, profile) said Wednesday its fiscal first-quarter net income rose to $18.5 million, or 10 cents a share, from $17.3 million, or 8 cents a share in the same period a year earlier. The business software provider said revenue for the period ended in May rose 11% to $174.4 million. Excluding special items, Red Hat said earnings for the quarter were 15 cents a share. Analysts on average had expected Red Hat to post earnings excluding special items of 14 cents a share, on $171.8 million in revenue, according to data from Thomson Reuters.
Seagate Technology raises revenue outlook(4:12 pm ET)
SAN FRANCISCO (MarketWatch) -- Seagate Technology (STX: news, chart, profile) on Wednesday said that it expects its current, fiscal fourth-quarter revenue to between $2.2 billion and $2.3 billion, up from its prior forecast of $1.9 billion to $2.2 billion. The computer hard-disk drive maker said it believes the total addressable market for hard-disk drives to be 120 million units, up from its earlier estimate of 114 million units. Seagate also said that for its fiscal first quarter it expects revenue to be in a range of $2.35 billion to $2.5 billion.
Paychex earnings fall 16% in fourth quarter(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- Paychex Inc. said Wedneday that earnings fell 16% for its fourth fiscal quarter on a decline in payroll services. The provider of payroll processing servcies (PAYX: news, chart, profile) reported earnings of $113.8 million, or 32 cents a share, for the quarter ended May 31, compared to earnings of $135.5 million, or 38 cents a share, for the same period the previous year. Total revenue fell 4.5% to $495.9 million.
Supervalu sees first quarter below estimate(8:30 am ET)
NEW YORK (MarketWatch) -- Supervalu Inc. (SVU: news, chart, profile) said Wednesday that earnings for the first quarter would be substantially below "First Call consensus earnings for the quarter." Analysts polled by FactSet Research estimated, on average, earnings of 65 cents a share for the grocer. Chief Executive Craig Herkert stated, "Consumers have become more value focused and cautious in their spending which has pressured sales and margins greater than anticipated. We currently estimate our identical store sales will be approximately negative 3%."
Inchcape shares jump after trading update(3:17 am ET)
LONDON (MarketWatch) -- Shares in U.K. car dealer Inchcape (UK:INCH: news, chart, profile) rose 7.7% in early London trading after the group said its second-quarter pretax profit is expected to be significantly ahead of the 20 million pounds reported in the first quarter, though still well below the year-earlier figure. The group said total sales for the first five months of the year were down 16.3% and fell 22.6% at constant exchange rates. "Customer demand for new vehicles is still weak but our after-sales business, which represents approximately half of our gross profit, remains strong," the group said.
Stagecoach profit down 46%, dividend increased(2:33 am ET)
LONDON (MarketWatch) -- U.K. bus and rail company Stagecoach (UK:SGC: news, chart, profile) said Wednesday that its net profit for fiscal 2009 fell 46% to 133.5 million pounds ($219.6 million), while revenue rose 19% to 2.1 billion pounds. The decline in profit was due to a tax benefit and gains from discontinued operations a year earlier. Underlying operating profit for the year ended April 30 rose 11% to 227.8 million pounds. The group said growth was driven by its bus operations, where comparable revenue increased, though overall rates of revenue and passenger volume growth have slowed, especially in the second half of the year. The group said it will pay a final dividend of 4.2 pence a share, up 3.7% from a year earlier.
Tuesday, June 23
N.Y. Times may charge for mobile content: report(11:45 pm ET)
LOS ANGELES (MarketWatch) -- New York Times Co. (NYT: news, chart, profile) is considering charging paid subscriptions to access its news on mobile devices, including Apple Inc.'s (AAPL: news, chart, profile) iPhone, because they allow for less advertising than the Web does, according to a Bloomberg News interview Tuesday with the company's head of digital operations. Martin Nisenholtz told the news agency that the New York Times is likely to begin charging users to access its news via mobile phones before it starts charging for access to its Web sites. "For publishers to offer their content for free in the mobile platform forever without getting paid very much money, I don't think it's going to be tenable," Nisenholtz was quoted as saying.
Darden reports higher profit(4:53 pm ET)
SAN FRANCISCO (MarketWatch) -- Darden Restaurants Inc. (DRI: news, chart, profile) late Tuesday reported fiscal fourth-quarter net income of $123 million, or 87 cents a share, compared to net income of $101.8 million, or 71 cents a share, in the year-earlier period. Sales rose to $1.97 billion from $1.82 billion. Sales included an extra week of business in the most recent period. Same-restaurant sales for Olive Garden, Red Lobster and LongHorn Steakhouse fell 1.4%. For fiscal 2010, Darden said it expects to earn between $2.59 and $2.85 a share. Darden shares closed at $33 ahead of the report. The stock is up 17% this year.
Jabil Circuit swings to a $28.8 million loss(4:37 pm ET)
SAN FRANCISCO (MarketWatch) -- Jabil Circuit Inc. (JBL: news, chart, profile) on Tuesday reported a fiscal third-quarter loss of $28.8 million, or 14 cents a share, compared to a profit of $38.4 million, or 19 cents a share, in the same period a year ago. Revenue for the electronics contract manufacturer fell to $2.6 billion from last year's sales of $3.1 billion. Jabil said its earnings excluding one-time items, or what it calls its core earnings, were $8.5 million, or 4 cents a share. For its fourth-quarter, Jabil estimates it will lose up to 9 cents a share, or could earn as much as a penny a share, on revenue between $2.5 billion and $2.7 billion.
Wednesday, June 24
Nike posts lower profit(4:33 pm ET)
SAN FRANCISCO (MarketWatch) -- Nike Inc. (NKE: news, chart, profile) late Thursday reported fiscal fourth-quarter net income fell 30% to $341.4 million, or 70 cents a share, compared to net income of $490.5 million, or 98 cents a share, a year ago. Excluding items, Nike said it earned 99 cents a share. Analysts polled by FactSet had pegged the athletic shoe and apparel maker to earn 96 cents a share. Sales fell 7% to $4.7 billion. Nike said worldwide futures orders for Nike brand athletic footwear and apparel, scheduled for delivery from June 2009 through November 2009, was $7.8 billion, down 12% from a year ago. Nike shares fell 4.9% in late trading.
Bed Bath & Beyond profit up, same-store sales dip(4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- Bed Bath & Beyond, Inc. (BBBY: news, chart, profile) on Wednesday reported a first-quarter net income of $87.2 million, or 34 cents a share, up from $76.8 million, or 30 cents a share, a year ago. Sales rose 2.8% to $1.69 billion. Analysts polled by FactSet Research were looking for a profit, on average, of 24 cents a share with sales of $1.68 billion. Same store sales for the home furnishings retailer fell 1.6%. The shares jumped more than 6% to $30.12 in after-hours trading.
Red Hat tops views with profit increase(4:15 pm ET)
SAN FRANCISCO (MarketWatch) -- Red Hat Inc. (RHT: news, chart, profile) said Wednesday its fiscal first-quarter net income rose to $18.5 million, or 10 cents a share, from $17.3 million, or 8 cents a share in the same period a year earlier. The business software provider said revenue for the period ended in May rose 11% to $174.4 million. Excluding special items, Red Hat said earnings for the quarter were 15 cents a share. Analysts on average had expected Red Hat to post earnings excluding special items of 14 cents a share, on $171.8 million in revenue, according to data from Thomson Reuters.
Seagate Technology raises revenue outlook(4:12 pm ET)
SAN FRANCISCO (MarketWatch) -- Seagate Technology (STX: news, chart, profile) on Wednesday said that it expects its current, fiscal fourth-quarter revenue to between $2.2 billion and $2.3 billion, up from its prior forecast of $1.9 billion to $2.2 billion. The computer hard-disk drive maker said it believes the total addressable market for hard-disk drives to be 120 million units, up from its earlier estimate of 114 million units. Seagate also said that for its fiscal first quarter it expects revenue to be in a range of $2.35 billion to $2.5 billion.
Paychex earnings fall 16% in fourth quarter(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- Paychex Inc. said Wedneday that earnings fell 16% for its fourth fiscal quarter on a decline in payroll services. The provider of payroll processing servcies (PAYX: news, chart, profile) reported earnings of $113.8 million, or 32 cents a share, for the quarter ended May 31, compared to earnings of $135.5 million, or 38 cents a share, for the same period the previous year. Total revenue fell 4.5% to $495.9 million.
Supervalu sees first quarter below estimate(8:30 am ET)
NEW YORK (MarketWatch) -- Supervalu Inc. (SVU: news, chart, profile) said Wednesday that earnings for the first quarter would be substantially below "First Call consensus earnings for the quarter." Analysts polled by FactSet Research estimated, on average, earnings of 65 cents a share for the grocer. Chief Executive Craig Herkert stated, "Consumers have become more value focused and cautious in their spending which has pressured sales and margins greater than anticipated. We currently estimate our identical store sales will be approximately negative 3%."
Inchcape shares jump after trading update(3:17 am ET)
LONDON (MarketWatch) -- Shares in U.K. car dealer Inchcape (UK:INCH: news, chart, profile) rose 7.7% in early London trading after the group said its second-quarter pretax profit is expected to be significantly ahead of the 20 million pounds reported in the first quarter, though still well below the year-earlier figure. The group said total sales for the first five months of the year were down 16.3% and fell 22.6% at constant exchange rates. "Customer demand for new vehicles is still weak but our after-sales business, which represents approximately half of our gross profit, remains strong," the group said.
Stagecoach profit down 46%, dividend increased(2:33 am ET)
LONDON (MarketWatch) -- U.K. bus and rail company Stagecoach (UK:SGC: news, chart, profile) said Wednesday that its net profit for fiscal 2009 fell 46% to 133.5 million pounds ($219.6 million), while revenue rose 19% to 2.1 billion pounds. The decline in profit was due to a tax benefit and gains from discontinued operations a year earlier. Underlying operating profit for the year ended April 30 rose 11% to 227.8 million pounds. The group said growth was driven by its bus operations, where comparable revenue increased, though overall rates of revenue and passenger volume growth have slowed, especially in the second half of the year. The group said it will pay a final dividend of 4.2 pence a share, up 3.7% from a year earlier.
Tuesday, June 23
Darden reports higher profit(4:53 pm ET)
SAN FRANCISCO (MarketWatch) -- Darden Restaurants Inc. (DRI: news, chart, profile) late Tuesday reported fiscal fourth-quarter net income of $123 million, or 87 cents a share, compared to net income of $101.8 million, or 71 cents a share, in the year-earlier period. Sales rose to $1.97 billion from $1.82 billion. Sales included an extra week of business in the most recent period. Same-restaurant sales for Olive Garden, Red Lobster and LongHorn Steakhouse fell 1.4%. For fiscal 2010, Darden said it expects to earn between $2.59 and $2.85 a share. Darden shares closed at $33 ahead of the report. The stock is up 17% this year.
Jabil Circuit swings to a $28.8 million loss(4:37 pm ET)
SAN FRANCISCO (MarketWatch) -- Jabil Circuit Inc. (JBL: news, chart, profile) on Tuesday reported a fiscal third-quarter loss of $28.8 million, or 14 cents a share, compared to a profit of $38.4 million, or 19 cents a share, in the same period a year ago. Revenue for the electronics contract manufacturer fell to $2.6 billion from last year's sales of $3.1 billion. Jabil said its earnings excluding one-time items, or what it calls its core earnings, were $8.5 million, or 4 cents a share. For its fourth-quarter, Jabil estimates it will lose up to 9 cents a share, or could earn as much as a penny a share, on revenue between $2.5 billion and $2.7 billion.
Oracle profit slumps, but tops Wall Street views(4:05 pm ET)
SAN FRANCISCO (MarketWatch) - Oracle Corp. (ORCL: news, chart, profile) said Tuesday its fiscal fourth-quarter net income fell to $1.9 billion, or 38 cents a share, from $2 billion, or 39 cents a share in the same period a year earlier. Revenue for the period ended in May fell 5% to $6.9 billion, Oracle said. Excluding special items, earnings were 46 cents a share. Analysts on average had been expecting Oracle to post earnings excluding special items of 44 cents a share, and $6.5 billion in revenue, according to data from Thomson Reuters.
J.P. Morgan upgrades FedEx to overweight(12:19 pm ET)
NEW YORK (MarketWatch) -- Saying bad news is already reflected in its stock price, J.P. Morgan Chase analyst Thomas R. Wadewitz on Tuesday upgraded FedEx (FDX: news, chart, profile) to overweight from neutral. A potential bankruptcy for rival YRC Worldwide (YRCW: news, chart, profile) could boost prospects for FedEx. "We expect gradual improvement in transport demand data points to drive upside for the stock," Wadewitz said in a note to clients. He lifted his price target on the stock to $66 a share from $60 a share. (Updates to clarify that YRC Worldwide is not in bankruptcy.)
Kroger earnings climb to 66 cents a share(8:58 am ET)
NEW YORK (MarketWatch) -- The Kroger Co. (KR: news, chart, profile) said Tuesday that first-quarter earnings were, $435 million, or 66 cents a share, compared to $386 million, or 58 cents a share, in last year's period. Total sales, including fuel, in the first quarter were $22.8 billion compared with $23.1 billion for the same period last year. Analysts polled by FactSet Research estimated, on average, earnings per share of 62 cents and sales of $23.3 billion. Kroger confirmed its full-year 2009 earnings outlook of $2.00 to $2.05 a share.
Cytec cuts 2009 earnings forecast(7:39 am ET)
NEW YORK (MarketWatch) -- Cytec Industries Inc. (CYT: news, chart, profile) said Tuesday that due to continued deterioration in market demand, it is reducing its outlook for full year 2009 earnings per share, after adjusting for special items, to a range of 60 cents to 90 cents a share. The prior guidance was for $1.35 to $1.75 per share. Chief Financial Officer David Drillock said, "The continuing weak demand in coating resins plus the recent demand slowdown mentioned earlier in engineered materials lead us to expect a modest loss for the second quarter before special items."
BMC Software reaffirms full-year profit view(7:10 am ET)
NEW YORK (MarketWatch) -- BMC Software Inc. (BMC: news, chart, profile) said Tuesday that it will reaffirm its previous fiscal-year guidance at the company's investor day in New York. The maker of business software said it expects to report adjusted earnings of $2.37 to $2.47 a share, excluding special items totaling about 60 cents to 64 cents. It also said it sees cash flow from operations of $600 million to $650 million. Shares of BMC ended Monday at $33.73.
Monday, June 22
Clean Energy Fuels to issue $54 mln in stock(7:00 am ET)
NEW YORK (MarketWatch) -- Clean Energy Fuels Inc. (CLNE: news, chart, profile) on Monday filed a common stock offering of six million shares. Based on its closing price on Friday, the offering will raise $54 million.
Marvell lifts estimate of 2nd-quarter revenue(3:19 am ET)
TEL AVIV (MarketWatch) -- Marvell Technology Group Ltd., (MRVL: news, chart, profile) the Santa Clara, Calif., provider of communications-infrastructure solutions, on Monday increased its estimate of fiscal 2010 second-quarter revenue. The company now expects revenue to total $600 million to $630 million, up 15% to 21% sequentially from the $521 million reported for the first quarter. Marvell's previous second-quarter estimate was a range of $540 million to $580 million. A survey of analysts by FactSet Research produced a consensus estimate for the second quarter of $562.6 million. The company based the increased estimate on a stronger order rate, which "generally signals some strengthening in our customers' expectations for their businesses," Marvell's chairman, president and chief executive, Sehat Sutardja, said in a statement. At the same time, the executive urged caution about "the demand environment for the next few quarters" in light of the industry's experience in the past nine months.
Sunday, June 21
Yue Yuen net income climbs 4% in first half(10:36 pm ET)
HONG KONG (MarketWatch) -- Sneaker maker Yue Yuen Industrial Ltd. (HK:551: news, chart, profile) said in a weekend announcement that its net income in the first half climbed 4% from a year earlier. The company, which manufactures footwear on a contract basis for leading athletic brands such as Nike and Adidas, said net income for the six months ending March 31 totaled $217.7 million, compared to $209.3 million a year earlier, while revenue totaled $2.55 billion, a 9.7% rise on year. Citigroup recommend investors buy the company's shares, adding that business conditions are likely to continue to improve in 2010. Citi set a target price of 22.50 Hong Kong dollars ($2.90). Yue Yuen's shares, which were dropped from the benchmark Hang Seng Index earlier this year, were up 1.5% at 17.50 Hong Kong dollars in trading Monday.
Friday, June 19
Wyndham sticks to second-quarter target(9:12 am ET)
CHICAGO (MarketWatch) -- In the midst of the global travel slowdown, Wyndham Worldwide (WYN: news, chart, profile) said Friday that it is sticking to its second-quarter profit targets. Before the start of trading, the hotel operator said that it still expects to earn 36 cents to 41 cents a share for the period on an adjusted basis with earnings before interest, taxes, deprecation and amortization coming in at $760 million to $810 million for the full year. Shares of Wyndham ended Thursday's session down 3% at $11.20.
Friday, June 19
Wyndham sticks to second-quarter target(9:12 am ET)
CHICAGO (MarketWatch) -- In the midst of the global travel slowdown, Wyndham Worldwide (WYN: news, chart, profile) said Friday that it is sticking to its second-quarter profit targets. Before the start of trading, the hotel operator said that it still expects to earn 36 cents to 41 cents a share for the period on an adjusted basis with earnings before interest, taxes, deprecation and amortization coming in at $760 million to $810 million for the full year. Shares of Wyndham ended Thursday's session down 3% at $11.20.
CarMax earnings per share steady at 13 cents.(7:58 am ET)
NEW YORK (MarketWatch) -- CarMax Inc. (KMX: news, chart, profile) said Friday that first-quarter earnings were $29 million, or 13 cents a share, compared to $30 million, or 13 cents a share, in the same period a year ago. Sales were $1.8 billion compared to $2.2 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 3 cents and sales of $1.7 billion for the Richmond, Va. based used car retailer
Taylor Wimpey sees continued stability in U.K.(2:32 am ET)
LONDON (MarketWatch) -- U.K. house builder Taylor Wimpey (UK:TW: news, chart, profile) said Friday that it has seen continued stability in U.K. markets in recent months as well as an improvement in its North American operations following the difficult conditions in January and February. "Whilst wider economic conditions remain weak and rising unemployment could still have an effect on our markets, the severe downside scenarios for which we have bee planning now appear less likely to materialize," the company said. In the U.K. net reservation rates remain around 0.6 per site per week, with prices broadly flat and cancellation rates below the long-run average. In North America the group said pricing is now generally stable, following some falls in the first quarter.
Thursday, June 18
RIM earnings jump in first quarter(4:13 pm ET)
SAN FRANCISCO (MarketWatch) - Research In Motion Ltd. said Thursday afternoon that earnings for its first fiscal quarter jumped 33% thanks to strong sales of the company's line of BlackBerry smartphones. For the period ended May 30, RIM (RIMM: news, chart, profile) said it earned $643 million, or $1.12 a share, compared to earnings of $482.5 million, or 84 cents a share, for the same period the previous year. Earnings excluding special items came in at $564.4 million, or 98 cents a share. Revenue jumped 53% to $3.42 billion for the quarter. Analysts were expecting earnings of 94 cents a share on revenue of $3.4 billion, according to consensus forecasts from FactSet Research. The company said it expects revenue to come in the range of $3.45 billion to $3.7 billion for the second quarter, with earnings between 94 cents a share and $1.03 a share. Analysts were expecting $3.6 billion in revenue with earnings of 95 cents a share for the period.
Carnival profit slumps, cuts outlook (9:33 am ET)
CHICAGO (MarketWatch) -- Lower prices and the outbreak of swine flu in Mexico dragged down Carnival Corporation's fiscal second quarter bottom line as the cruise line operator on Thursday reported a steep drop in profit. Before the start of trading, Carnival (CCL: news, chart, profile) said that it earned $264 million, or 33 cents a share, on the period - down from $390 million, or 49 cents a share, in the same quarter a year ago. Revenue fell to $2.9 billion from $3.4 billion. The average estimate of analysts polled by FactSet Research had been for the company to earn 28 cents a share. Looking ahead, the company said it now expects to earn $2 to $2.10 a share for the full year, vs. a previous target of $2.10 to $2.30 and below the current Wall Street view of $2.11.
Discover's quarterly net falls slightly(8:47 am ET)
BOSTON (MarketWatch) -- Discover Financial Services Inc. (DFS: news, chart, profile) on Thursday reported second-quarter net income of $225.8 million, or 43 cents a share, compared with $234.1 million, or 48 cents a share, in the year-ago period. Discover said net income in the latest quarter included about $295 million related to the Visa/MasterCard antitrust litigation settlement. The company, which declared a dividend of 2 cents a share, said provision for loan losses rose to $643.9 million from $211 million in the same quarter the previous year.
J.M. Smucker earnings leap to 80 cents a share(7:19 am ET)
NEW YORK (MarketWatch) -- The J. M. Smucker Company (SJM: news, chart, profile) said Thursday that it earned $94 million, or 80 cents a share, in the fourth quarter. In the same period a year ago it earned $37 million, or 67 cents a share. Sales rose to $1.1 billion compared to $590 million. On an adjusted basis, earnings per share were $1.01 versus 73 cents. Analysts polled by FactSet Research estimated, on average, earnings per share of 69 cents and sales of $997 million. Results include the merger of The Folger Coffee Company. For fiscal 2010, excluding items, earnings per share are expected to range between $3.65 and $3.80.
Pier 1 Imports swings to profit(6:15 am ET)
LONDON (MarketWatch) -- Home furnishings and gifts retailer Pier 1 Imports Inc. (PIR: news, chart, profile) said Thursday that it swung to a fiscal first-quarter net profit of $29.3 million, or 32 cents a share, from a loss of $32.8 million, or 37 cents a share, a year earlier. Revenue for the quarter fell 9.3% to $281.1 million and comparable store sales dropped 7.5%. The group said it improved its margins thanks to reduced supply chain costs and decreased clearance activity. Store occupancy costs also fell due to negotiated reductions in rent. The company said it also collected $10 million during the quarter from the settlement of foreign litigation.
Wednesday, June 17
State Street repays $2 billion in TARP funds(7:34 pm ET)
LOS ANGELES (MarketWatch) -- State Street Corp. (STT: news, chart, profile) said late Wednesday that it has repaid the full amount of the Treasury Department's $2 billion investment in the company under the TARP Capital Purchase Program. Boston-based State Street said it redeemed all of the outstanding shares of preferred stock issued to the Treasury, with the move set to reduce its net income by approximately $105 million in the second quarter, as a result of the difference between the amortized cost of the preferred stock and the redemption price. State Street also said it will start discussions with the Treasury for the financial-services firm to repurchase the Treasury's warrant to buy 2.79 million State Street shares.
Wednesday, June 17
State Street repays $2 billion in TARP funds(7:34 pm ET)
LOS ANGELES (MarketWatch) -- State Street Corp. (STT: news, chart, profile) said late Wednesday that it has repaid the full amount of the Treasury Department's $2 billion investment in the company under the TARP Capital Purchase Program. Boston-based State Street said it redeemed all of the outstanding shares of preferred stock issued to the Treasury, with the move set to reduce its net income by approximately $105 million in the second quarter, as a result of the difference between the amortized cost of the preferred stock and the redemption price. State Street also said it will start discussions with the Treasury for the financial-services firm to repurchase the Treasury's warrant to buy 2.79 million State Street shares.
FedEx loss is $2.82 a share in quarter(8:06 am ET)
NEW YORK (MarketWatch) -- FedEx Corp. (FDX: news, chart, profile) said today it lost $876 million, or $2.82 per share for the fourth quarter , including $3.46 a share of previously disclosed charges. In the same period a year ago, FedEx lost $241 million, or 78 cents a share. Excluding these charges, earnings were 64 cents a share. These charges, approximately $1.2 billion, result from the impairment of goodwill related to the acquisitions of Kinko's Inc. and Watkins Motor Lines. Revenue was $7.85 billion, down 20%. Analysts polled by FactSet Research estimated, on average, adjusted earnings of 51 cents and sales of $8.4 billion. FedEx sees earnings of 30 cents to 45 cents a share in the first quarter, compared to $1.23 a year ago. "At this time we do not have enough visibility into the economic recovery and jet fuel prices to provide a meaningful annual earnings forecast," said Chief Financial Officer Alan Graf, Jr.
Southern California Edison inks solar thermal deal(7:24 am ET)
NEW YORK (MarketWatch) -- Southern California Edison, a unit of Edison International (EIX: news, chart, profile) , said Wednesday it inked two contracts with Solar Millennium for a potential 726 megawatts of power through solar thermal generators, which use heat from the sun to create steam and produce electricity. The projects call for two 242 megawatt facilities with an option to expand one by another 242 megawatts. The units will be built in Blythe, Calif. and Ridgecrest, Calif. and are expected to go into operation in 2013 and 2014. Financial terms of the deals weren't disclosed.
Scotts Miracle-Gro lifts earnings forecast(7:07 am ET)
LONDON (MarketWatch) -- Scotts Miracle-Gro Co. (SMG: news, chart, profile) on Wednesday lifted its earnings forecast for fiscal 2009, citing strong consumer demand in the U.S. The group said it now expects to report adjusted earnings of $2.35 to $2.45 a share, compared to a previous forecast of $2.10 to $2.30 a share. It also upped its free cash flow forecast to a minimum of $180 million from a range of $150 million to $170 million. The company said consumer purchases of its products in the U.S. were up 17% for the fiscal year to date, as measured by point-of-sale data from its largest retail partners.
Tuesday, June 16
Adobe profit dips, but meets expectations(4:08 pm ET)
SAN FRANCISCO (MarketWatch) - Adobe Systems Inc. (ADBE: news, chart, profile) said Tuesday its fiscal second-quarter net income fell to $126 million, or 24 cents a share, from $214.9 million, or 40 cents a share in the same period a year earlier. San Jose-based Adobe said revenue for the period ended in May fell to $704.7 million from $886.9 million. Excluding special items, Adobe said earnings for the quarter were 35 cents a share. Analysts on average had expected Adobe to post earnings excluding special items of 35 cents a share on $694.8 million in revenue, according to Thomson Reuters data.
Monday, June 15
SMFG opens down following offering announcement(8:04 pm ET)
LOS ANGELES (MarketWatch) -- Sumitomo Mitsui Financial Group Inc. (JP:8316: news, chart, profile) (SMFJ.Y: news, chart, profile) shares opened down 1.23% at 4,000 yen ($40.97) Tuesday, a day after the financial giant said it had priced its new share offering at 3,928 yen, with expectations it will raise up to 923 billion yen. SMFG stock had closed down 6.9% Monday following news reports that its offering would be larger than previously announced. Dow Jones Newswires quoted an unnamed Japanese asset manager as saying concern over dilution for existing investors has now been priced into the shares.
Energy stocks move lower with broad market(9:37 am ET)
NEW YORK (MarketWatch) -- Energy stocks gave up ground on Monday as lower oil prices and a weak start in the broad equities market weighed on shares of oil and natural gas producers. The Nymex Arca Oil Index (XOI: news, chart, profile) fell 2% to 969. The Nymex Arca Natural Gas Index (XNG: news, chart, profile) fell 1.7% to 457. The Philadelphia Oil Service Index ($OSX: news, chart, profile) subtracted 2.4% to 180. Crude futures fell 64 cents to $71.40.
Illinois Tool Works lifts guidance(8:24 am ET)
NEW YORK (MarketWatch) -- Illinois Tool Works Inc. (ITW: news, chart, profile) said Monday that it is raising its forecast for second-quarter earnings by 4 cents a share to a range of 29 cents to 41 cents due to better results from its decorative surfaces segment. Analysts polled by FactSet Research estimated, on average, earnings per share of 30 cents in the period.
VTech profit down 34%(7:01 am ET)
LONDON (MarketWatch) -- VTech Holdings [s:hk:303] (VTKHY: news, chart, profile) said Monday that its profit attributable to shareholders for the fiscal year ended March 31 fell 34% to $143.2 million as revenue for the year declined 6.7% to $1.45 billion. As well as the drop in sales, VTech said profit was hit by increased price promotions and unfavorable moves in exchange rates. The group, which makes cordless telephones and electronic learning products for children, said consumer sentiment is expected to remain weak throughout the current year and that top line growth will therefore be very difficult to achieve. It added it is "cautiously optimistic" that profitability will improve as the euro, sterling and Renminbi show stability and raw materials prices decline.
United Technologies affirms 2009 estimates(5:22 am ET)
TEL AVIV (MarketWatch) -- United Technologies Corp., (UTX: news, chart, profile) the Hartford, Conn., building and aerospace giant, said that at a Monday meeting with investors at the Paris Air Show, President and Chief Executive Louis Chenevert and Senior Vice President and Chief Financial Officer Greg Hayes will affirm that in 2009, the company expects to earn $4 to $4.50 a share on revenue of about $55 billion. Cash flow from operations less capital expenditures should equal or exceed net income attributable to common-share holders, UTX said.
Wessanen: Irregularities found in U.S. unit(3:02 am ET)
LONDON (MarketWatch) -- Holland's Wessanen (NL:WES: news, chart, profile) said an investigation has found results at its ABC division were misstated over a number of years, going back to 2006. As a result, equity as at year-end 2008 potentially has been overstated by approximately 10 million euros ($14 million), assuming full tax relief. The investigation is still in its early stages. Wessanen said the CEO and CFO of ABC have left the company and that it has appointed new management. It's holding its outlook for the second quarter excluding the operating result of the North America Branded segment, largely consisting of ABC. The period to review the business case to sell ABC, which the firm announced in February of this year, is extended in light of these developments.
Punch Taverns to raise $573 mln through share sale(2:36 am ET)
LONDON (MarketWatch) -- U.K. pub group Punch Taverns (UK:PUB: news, chart, profile) said Monday that it will raise 350 million pounds ($573 million) through selling new shares as it also said trading has been hit by a significant drop in consumer confidence. The group said existing shareholders will be able to invest in up to half the shares being offered through a so-called "clawback" deal. It intends to use the proceeds of the sale to buy back 275 million pounds of convertible bonds. Punch Taverns said comparable EBITDA on its leased estate was down 11.2% for the 40 weeks to May 30. It added that, although it doesn't anticipate that demand levels will improve in the near term, the group is on track to meet its expectations for the financial year.
Lonmin hit by furnace shutdown(2:21 am ET)
LONDON (MarketWatch) -- Lonmin (UK:LMI: news, chart, profile) , the U.K. producer of platinum group metals, said Monday that it has shut down its No. 1 furnace for repairs that are likely to take around 30 days. The group said it has started up three other furnaces to try and mitigate the impact and will provide guidance on the impact on production and sales once a full inspection has been made.
Friday, June 12
Tech stocks weighed down by Nat Semi(9:41 am ET)
SAN FRANCISCO (MarketWatch) -- Technology stocks slipped in early trading Friday, led down by the broader market as well as by weakness at National Semiconductor (NSM: news, chart, profile) , a chipmaker that reported a large quarterly loss late Thursday. Shares of National Semiconductor fell more than 6% after the opening bell. The tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) slipped 0.7% to 1,849, while the Morgan Stanley High-Tech Index (MSH: news, chart, profile) fell 1% to 460. The Philadelphia Semiconductor Index (SOXX: news, chart, profile) was off 2% in early trades.
Gasoline prices rise a penny to $2.64 a gallon(7:28 am ET)
NEW YORK (MarketWatch) -- Average U.S. retail gasoline prices rose a penny to $2.64 a gallon on Friday, up a penny from the previous day, according to the AAA Daily Fuel Gauge Report. A week ago, gasoline sold for $2.59 a gallon. A month ago, it sold for $2.27 a gallon. A year ago, gasoline cost $4.06 a gallon, on average.
Thursday, June 11
National Semiconductor swing to $63.7 million loss(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- National Semiconductor Corp. (NSM: news, chart, profile) on Thursday reported a fiscal fourth-quarter loss of $63.7 million, or 28 cents a share, on revenue of $281 million. Analysts surveyed by Thomson Reuters had forecast National Semi to lose 38 cents a share on $273 million in sales. During the same period a year ago, the analog chip maker earned $83.2 million, or 34 cents a share, on revenue of $462 million. For its fiscal first quarter, the company estimates sales will be between $285 mililon and $305 million.
Palm, Qualcomm highlight early tech trading action(9:42 am ET)
SAN FRANCISCO (MarketWatch) -- Palm Inc. (PALM: news, chart, profile) and Qualcomm Inc. (QCOM: news, chart, profile) were in the tech-sector spotlight in early trading Thursday, as the tech sector tried to turn around from the previous session's losses. Palm rose 36 cents a share, or 3%, to $12.35 after the smart phone maker named Jon Rubenstein as its new CEO, while Qualcomm gave up 58 cents a share to trade at $45.47 after the company raised its third-quarter revenue and earnings forecasts, but said it is still cautious about the weak global economy. The tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) rose 5 poinst to 1,858.
Qualcomm boosts third-quarter outlook (9:11 am ET)
NEW YORK (MarketWatch) -- Qualcomm Inc. (QCOM: news, chart, profile) on Thursday boosted its third-quarter revenue outlook to $2.67 billion to $2.77 billion, based on demand for high-end phone chips. The tech firm's earlier revenue view was $2.4 billion to $2.6 billion. Qualcomm now expects third-quarter operating profit of $830 million to $880 million, up sharply from its earlier estimate of $550 million to $650 million. "We are very pleased to raise our fiscal third quarter guidance, reflecting the strong worldwide demand for wireless broadband powered by 3G CDMA," the company said. Shares rose 1% to $46.59 in pre-market trades.
GE Energy inks $500 million power plant pact (8:13 am ET)
NEW YORK (MarketWatch) -- GE Energy, a unit of General Electric Co. (GE: news, chart, profile) , said Thursday it inked $500 million in contracts to equip Al Dur Independent Water and Power Project, the largest power plant in the Kingdom of Bahrain. GE will supply gas turbines and other gear for the plant, which will provide 1,250 megawatts of power and provide about 30% of the kingdom's existing electricity output, as well as 48 million imperial gallons of desalinated water a day. GE also signed a 20-year contractual service agreement contract for the project, which will support the long-term operability and performance of the turbines.
Clorox hikes quarterly dividend 9% (7:55 am ET)
NEW YORK (MarketWatch) -- The Clorox Co. (CLX: news, chart, profile) said its board declared a quarterly dividend of 50 cents a share, payable Aug. 14 to stockholders of record on July 27. The amount represents an increase of 4 cents a share, or 9%, in the company's quarterly dividend. Clorox confirms 2010 earnings per share in the $4.00-to-$4.15 range and 1% to 2% sales growth. FactSet Research analysts estimate, on average, earnings per share of $4.18 for the period. Clorox also said it sees sales growth through fiscal 2013 of 3% to 5% annually.
Genesee & Wyoming cuts earnings forecast(6:51 am ET)
LONDON (MarketWatch) -- Railroad operator Genesee & Wyoming Inc. (GWR: news, chart, profile) on Thursday warned its second-quarter earnings will be below previous expectations after a decline in railroad traffic. The group said it's expecting second-quarter earnings from continuing operations of 35 cents to 37 cents a share on revenue of $130 million. It had previously forecast earnings of around 45 cents a share on revenue of $140 million to $145 million. Genesee & Wyoming said traffic in the second quarter through May was down 5.5% compared to a year ago and same-railroad traffic has slumped 21.4%. The group said it has reduced its active locomotive fleet by 17 units since the end of the first quarter and put an additional 70 employees on leave.
Friday, June 12
Tech stocks weighed down by Nat Semi(9:41 am ET)
SAN FRANCISCO (MarketWatch) -- Technology stocks slipped in early trading Friday, led down by the broader market as well as by weakness at National Semiconductor (NSM: news, chart, profile) , a chipmaker that reported a large quarterly loss late Thursday. Shares of National Semiconductor fell more than 6% after the opening bell. The tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) slipped 0.7% to 1,849, while the Morgan Stanley High-Tech Index (MSH: news, chart, profile) fell 1% to 460. The Philadelphia Semiconductor Index (SOXX: news, chart, profile) was off 2% in early trades.
Gasoline prices rise a penny to $2.64 a gallon(7:28 am ET)
NEW YORK (MarketWatch) -- Average U.S. retail gasoline prices rose a penny to $2.64 a gallon on Friday, up a penny from the previous day, according to the AAA Daily Fuel Gauge Report. A week ago, gasoline sold for $2.59 a gallon. A month ago, it sold for $2.27 a gallon. A year ago, gasoline cost $4.06 a gallon, on average.
Thursday, June 11
National Semiconductor swing to $63.7 million loss(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- National Semiconductor Corp. (NSM: news, chart, profile) on Thursday reported a fiscal fourth-quarter loss of $63.7 million, or 28 cents a share, on revenue of $281 million. Analysts surveyed by Thomson Reuters had forecast National Semi to lose 38 cents a share on $273 million in sales. During the same period a year ago, the analog chip maker earned $83.2 million, or 34 cents a share, on revenue of $462 million. For its fiscal first quarter, the company estimates sales will be between $285 mililon and $305 million.
Palm, Qualcomm highlight early tech trading action(9:42 am ET)
SAN FRANCISCO (MarketWatch) -- Palm Inc. (PALM: news, chart, profile) and Qualcomm Inc. (QCOM: news, chart, profile) were in the tech-sector spotlight in early trading Thursday, as the tech sector tried to turn around from the previous session's losses. Palm rose 36 cents a share, or 3%, to $12.35 after the smart phone maker named Jon Rubenstein as its new CEO, while Qualcomm gave up 58 cents a share to trade at $45.47 after the company raised its third-quarter revenue and earnings forecasts, but said it is still cautious about the weak global economy. The tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) rose 5 poinst to 1,858.
Qualcomm boosts third-quarter outlook (9:11 am ET)
NEW YORK (MarketWatch) -- Qualcomm Inc. (QCOM: news, chart, profile) on Thursday boosted its third-quarter revenue outlook to $2.67 billion to $2.77 billion, based on demand for high-end phone chips. The tech firm's earlier revenue view was $2.4 billion to $2.6 billion. Qualcomm now expects third-quarter operating profit of $830 million to $880 million, up sharply from its earlier estimate of $550 million to $650 million. "We are very pleased to raise our fiscal third quarter guidance, reflecting the strong worldwide demand for wireless broadband powered by 3G CDMA," the company said. Shares rose 1% to $46.59 in pre-market trades.
GE Energy inks $500 million power plant pact (8:13 am ET)
NEW YORK (MarketWatch) -- GE Energy, a unit of General Electric Co. (GE: news, chart, profile) , said Thursday it inked $500 million in contracts to equip Al Dur Independent Water and Power Project, the largest power plant in the Kingdom of Bahrain. GE will supply gas turbines and other gear for the plant, which will provide 1,250 megawatts of power and provide about 30% of the kingdom's existing electricity output, as well as 48 million imperial gallons of desalinated water a day. GE also signed a 20-year contractual service agreement contract for the project, which will support the long-term operability and performance of the turbines.
Clorox hikes quarterly dividend 9% (7:55 am ET)
NEW YORK (MarketWatch) -- The Clorox Co. (CLX: news, chart, profile) said its board declared a quarterly dividend of 50 cents a share, payable Aug. 14 to stockholders of record on July 27. The amount represents an increase of 4 cents a share, or 9%, in the company's quarterly dividend. Clorox confirms 2010 earnings per share in the $4.00-to-$4.15 range and 1% to 2% sales growth. FactSet Research analysts estimate, on average, earnings per share of $4.18 for the period. Clorox also said it sees sales growth through fiscal 2013 of 3% to 5% annually.
Genesee & Wyoming cuts earnings forecast(6:51 am ET)
LONDON (MarketWatch) -- Railroad operator Genesee & Wyoming Inc. (GWR: news, chart, profile) on Thursday warned its second-quarter earnings will be below previous expectations after a decline in railroad traffic. The group said it's expecting second-quarter earnings from continuing operations of 35 cents to 37 cents a share on revenue of $130 million. It had previously forecast earnings of around 45 cents a share on revenue of $140 million to $145 million. Genesee & Wyoming said traffic in the second quarter through May was down 5.5% compared to a year ago and same-railroad traffic has slumped 21.4%. The group said it has reduced its active locomotive fleet by 17 units since the end of the first quarter and put an additional 70 employees on leave.
Thursday, June 11
National Semiconductor swing to $63.7 million loss(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- National Semiconductor Corp. (NSM: news, chart, profile) on Thursday reported a fiscal fourth-quarter loss of $63.7 million, or 28 cents a share, on revenue of $281 million. Analysts surveyed by Thomson Reuters had forecast National Semi to lose 38 cents a share on $273 million in sales. During the same period a year ago, the analog chip maker earned $83.2 million, or 34 cents a share, on revenue of $462 million. For its fiscal first quarter, the company estimates sales will be between $285 mililon and $305 million.
Palm, Qualcomm highlight early tech trading action(9:42 am ET)
SAN FRANCISCO (MarketWatch) -- Palm Inc. (PALM: news, chart, profile) and Qualcomm Inc. (QCOM: news, chart, profile) were in the tech-sector spotlight in early trading Thursday, as the tech sector tried to turn around from the previous session's losses. Palm rose 36 cents a share, or 3%, to $12.35 after the smart phone maker named Jon Rubenstein as its new CEO, while Qualcomm gave up 58 cents a share to trade at $45.47 after the company raised its third-quarter revenue and earnings forecasts, but said it is still cautious about the weak global economy. The tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) rose 5 poinst to 1,858.
Qualcomm boosts third-quarter outlook (9:11 am ET)
NEW YORK (MarketWatch) -- Qualcomm Inc. (QCOM: news, chart, profile) on Thursday boosted its third-quarter revenue outlook to $2.67 billion to $2.77 billion, based on demand for high-end phone chips. The tech firm's earlier revenue view was $2.4 billion to $2.6 billion. Qualcomm now expects third-quarter operating profit of $830 million to $880 million, up sharply from its earlier estimate of $550 million to $650 million. "We are very pleased to raise our fiscal third quarter guidance, reflecting the strong worldwide demand for wireless broadband powered by 3G CDMA," the company said. Shares rose 1% to $46.59 in pre-market trades.
GE Energy inks $500 million power plant pact (8:13 am ET)
NEW YORK (MarketWatch) -- GE Energy, a unit of General Electric Co. (GE: news, chart, profile) , said Thursday it inked $500 million in contracts to equip Al Dur Independent Water and Power Project, the largest power plant in the Kingdom of Bahrain. GE will supply gas turbines and other gear for the plant, which will provide 1,250 megawatts of power and provide about 30% of the kingdom's existing electricity output, as well as 48 million imperial gallons of desalinated water a day. GE also signed a 20-year contractual service agreement contract for the project, which will support the long-term operability and performance of the turbines.
Clorox hikes quarterly dividend 9% (7:55 am ET)
NEW YORK (MarketWatch) -- The Clorox Co. (CLX: news, chart, profile) said its board declared a quarterly dividend of 50 cents a share, payable Aug. 14 to stockholders of record on July 27. The amount represents an increase of 4 cents a share, or 9%, in the company's quarterly dividend. Clorox confirms 2010 earnings per share in the $4.00-to-$4.15 range and 1% to 2% sales growth. FactSet Research analysts estimate, on average, earnings per share of $4.18 for the period. Clorox also said it sees sales growth through fiscal 2013 of 3% to 5% annually.
Genesee & Wyoming cuts earnings forecast(6:51 am ET)
LONDON (MarketWatch) -- Railroad operator Genesee & Wyoming Inc. (GWR: news, chart, profile) on Thursday warned its second-quarter earnings will be below previous expectations after a decline in railroad traffic. The group said it's expecting second-quarter earnings from continuing operations of 35 cents to 37 cents a share on revenue of $130 million. It had previously forecast earnings of around 45 cents a share on revenue of $140 million to $145 million. Genesee & Wyoming said traffic in the second quarter through May was down 5.5% compared to a year ago and same-railroad traffic has slumped 21.4%. The group said it has reduced its active locomotive fleet by 17 units since the end of the first quarter and put an additional 70 employees on leave.
Wednesday, June 10
GM cancels 2010 Malibu hybrid amid slow sales: WSJ(11:07 pm ET)
LOS ANGELES (MarketWatch) -- General Motors Corp. (GM: news, chart, profile) plans to cancel production of the hybrid-electric version of its Chevrolet Malibu sedan for the 2010 model year due to slow sales that has led to a backlog of inventory of the vehicles on dealer lots, The Wall Street Journal reported late Wednesday. A GM spokesman was quoted as saying the company made the decision because of a "sufficient stock of 2009s," and said starting up production in the near future is "possible, but not likely." However, the company will continue to make hybrid versions of the Malibu -- first introduced in 2008 -- for fleet buyers, the report said.
Brown-Forman earnings per share fall to 53 cents(8:08 am ET)
NEW YORK (MarketWatch) -- Brown-Forman Corp. (BFB: news, chart, profile) said Wednesday that fiscal fourth-quarter earnings fell to $80 million, or 53 cents a share, from $99 million, or 65 cents a share, in the same period a year ago. Sales were down 12% to $683 million, from $772 million a year ago. Analysts polled by FactSet Research estimated, on average, earnings per share of 49 cents and sales of $638 million. For fiscal 2010 the Louisville, Ky. maker of alcoholic beverages sees earnings per share in the range of $2.60 to $3.00.
Average gasoline price edges up a penny to $2.63 (7:20 am ET)
NEW YORK (MarketWatch) -- The average retail price for a gallon of unleaded gasoline in the U.S. climbed a penny to $2.63 a gallon on Wednesday, according to the AAA Daily Fuel Gauge Report. Gasoline sold for $2.55 a gallon a week ago and $2.23 a gallon a month ago. A year ago, gasoline cost an average of $4.04 a gallon.
CB Richard Ellis provides earnings guidance(6:28 am ET)
LONDON (MarketWatch) -- Commercial real estate services firm CB Richard Ellis Group Inc. (CBG: news, chart, profile) said Wednesday that it expects to report adjusted second-quarter earnings of between break-even and 7 cents a share. Adjusted earnings a year earlier were 16 cents a share. The group said the forecast is "highly preliminary" because its sales and leases transaction businesses tend to recognize a significant portion of their revenue toward the end of the reporting period. Analysts polled by FactSet Research had been expecting second-quarter earnings of 7 cents a share. Separately the company announced it will offer $400 million of senior subordinated notes due 2017 to repay some of its outstanding debt and for general corporate purposes. It's also sold 13.4 million shares to Paulson & Co. Inc. for gross proceeds of $100 million and intends to sell a further $50 million of shares in an at-the-market offering.
Halfords net profit slips, dividend lifted(2:49 am ET)
LONDON (MarketWatch) -- U.K. auto accessories retailer Halfords (UK:HFD: news, chart, profile) said its net profit for the year ended April 3 fell 13% to 55.8 million pounds ($91.1 million). Revenue rose to 809.5 million pounds from 797.4 million pounds. The group said comparable sales for the year declined by 3.3%. Adjusted operating profit was up 0.9% at 101.9 million pounds. The company said it generated good growth in its core business of car maintenance and cycling and expects to deliver further earnings growth in the current year. The board recommended a final dividend payment of 10.9 pence a share, making a total of 15.9 pence for the year, or an increase of 5.3%.
Inditex posts 5% rise in sales; keeps guidance(2:44 am ET)
MADRID (MarketWatch) -- Spanish retail group Inditex (ES:ITX: news, chart, profile) on Wednesday reported a 5% rise in first quarter sales to 2.3 billion euros ($3.2 billion), against sales of 2.2 billion euros in the same period a year ago. Net income for the group fell 16% to 184 million euros, against 219 million euros a year ago. A survey of analysts polled by Dow Jones Newswires was expecting net income of 190 million euros. From May 1 to June 7, store sales in local currencies rose 9%. Inditex said it would maintain its expectations for both retail space growth and capital expenditure for fiscal year 2009.
Tuesday, June 9
Energy stocks up as oil hits $69(9:51 am ET)
NEW YORK (MarketWatch) -- Energy stocks rose in early action on Tuesday as oil hit $69 a barrel and the broad market moved into the green. The Amex Oil Index (XOI: news, chart, profile) rose 1.1% to 990. The Amex Natural Gas Index (XNG: news, chart, profile) rose 1% to 449. The Philadelphia Oil Service Index ($OSX: news, chart, profile) rose 1.75% to 180. Chesapeake Energy (CHK: news, chart, profile) edged up 5 cents to $22.97 after it agreed to sell $218 million in energy assets to privately held Indigo Minerals LLC. (An earlier version of this article incorrectly stated that oil hit $70 a barrel).
Royal Caribbean sees 22 cents a share hit from flu(8:40 am ET)
NEW YORK (MarketWatch) -- Royal Caribbean Cruises Ltd. (RCL: news, chart, profile) said Tuesday the swine flu will hurt its bottom line by 22 cents a share after it cancelled a product launch in Mexico. Analysts expect the cruise operator to lose 3 cents a share in its current quarter, according to a survey by FactSet Research. The company said it deviated vessels away from Mexican ports and faced pricing pressures in the Mexican market. "The H1N1 outbreak occurred just prior to the launch of Pullmantur's Pacific Dream, a new product targeting Mexican nationals," the company said. "The launch was cancelled and the ship remained idle." Additionally, the outbreak caused a significant reduction in Pullmantur's tour capacity in Mexico. There was essentially no impact on Celebrity's operations, the company said.
Navistar earnings per share tumble to 16 cents(7:20 am ET)
NEW YORK (MarketWatch) -- Navistar International Inc. (NAV: news, chart, profile) said Tuesday that second-quarter earnings fell to $12 million, or 16 cents a share, compared to $211 million, or $2.88 a share, in the same period a year ago. Revenue fell to $2.8 billion from $3.9 billion a year ago. Earnings were reduced by $31 million, or 44 cents a share, from costs related to a settlement with Ford (F: news, chart, profile) . Analysts polled by FactSet Research estimated, on average, earnings per share of 93 cents and sales of $3 billion. Guidance for 2009 is $5.20-$5.50 earnings per share, including Ford settlement effects, and $2.80-$3.10 without Ford impacts.
Wednesday, June 10
Brown-Forman earnings per share fall to 53 cents(8:08 am ET)
NEW YORK (MarketWatch) -- Brown-Forman Corp. (BFB: news, chart, profile) said Wednesday that fiscal fourth-quarter earnings fell to $80 million, or 53 cents a share, from $99 million, or 65 cents a share, in the same period a year ago. Sales were down 12% to $683 million, from $772 million a year ago. Analysts polled by FactSet Research estimated, on average, earnings per share of 49 cents and sales of $638 million. For fiscal 2010 the Louisville, Ky. maker of alcoholic beverages sees earnings per share in the range of $2.60 to $3.00.
Average gasoline price edges up a penny to $2.63 (7:20 am ET)
NEW YORK (MarketWatch) -- The average retail price for a gallon of unleaded gasoline in the U.S. climbed a penny to $2.63 a gallon on Wednesday, according to the AAA Daily Fuel Gauge Report. Gasoline sold for $2.55 a gallon a week ago and $2.23 a gallon a month ago. A year ago, gasoline cost an average of $4.04 a gallon.
CB Richard Ellis provides earnings guidance(6:28 am ET)
LONDON (MarketWatch) -- Commercial real estate services firm CB Richard Ellis Group Inc. (CBG: news, chart, profile) said Wednesday that it expects to report adjusted second-quarter earnings of between break-even and 7 cents a share. Adjusted earnings a year earlier were 16 cents a share. The group said the forecast is "highly preliminary" because its sales and leases transaction businesses tend to recognize a significant portion of their revenue toward the end of the reporting period. Analysts polled by FactSet Research had been expecting second-quarter earnings of 7 cents a share. Separately the company announced it will offer $400 million of senior subordinated notes due 2017 to repay some of its outstanding debt and for general corporate purposes. It's also sold 13.4 million shares to Paulson & Co. Inc. for gross proceeds of $100 million and intends to sell a further $50 million of shares in an at-the-market offering.
Halfords net profit slips, dividend lifted(2:49 am ET)
LONDON (MarketWatch) -- U.K. auto accessories retailer Halfords (UK:HFD: news, chart, profile) said its net profit for the year ended April 3 fell 13% to 55.8 million pounds ($91.1 million). Revenue rose to 809.5 million pounds from 797.4 million pounds. The group said comparable sales for the year declined by 3.3%. Adjusted operating profit was up 0.9% at 101.9 million pounds. The company said it generated good growth in its core business of car maintenance and cycling and expects to deliver further earnings growth in the current year. The board recommended a final dividend payment of 10.9 pence a share, making a total of 15.9 pence for the year, or an increase of 5.3%.
Inditex posts 5% rise in sales; keeps guidance(2:44 am ET)
MADRID (MarketWatch) -- Spanish retail group Inditex (ES:ITX: news, chart, profile) on Wednesday reported a 5% rise in first quarter sales to 2.3 billion euros ($3.2 billion), against sales of 2.2 billion euros in the same period a year ago. Net income for the group fell 16% to 184 million euros, against 219 million euros a year ago. A survey of analysts polled by Dow Jones Newswires was expecting net income of 190 million euros. From May 1 to June 7, store sales in local currencies rose 9%. Inditex said it would maintain its expectations for both retail space growth and capital expenditure for fiscal year 2009.
Monday, June 8
Pall profit falls 30% on weak industrial sales (5:46 pm ET)
SAN FRANCISCO (MarketWatch) -- Pall Corp. (PLL: news, chart, profile) reported late Monday fiscal third-quarter net income fell to $44.2 million, or 37 cents a share, from $63.3 million, or 51 cents, a year ago. Excluding restructuring costs and other one-time items, the filtration specialist earned 42 cents a share compared with 51 cents a year earlier. Revenue for the three months ended April 30 fell 16% to $555.9 million from $661.7 million, with a drop in industrial sales outpacing gains in medical filteration sales. Analysts polled by FactSet Research predicted the East Hills, N.Y. company would earn 41 cents a share on $558 million in revenue. Pall shares closed ahead of the report with a 25-cent gain at $26.85.
Men's Wearhouse profit slides to 10 cents a share(4:21 pm ET)
SAN FRANCISCO (MarketWatch) -- Men's Wearhouse (MW: news, chart, profile) late Monday reported its first-quarter net income fell to $5.26 million, or 10 cents a share, from $9.94 million, or 19 cents a share, in the same quarter last year. The profit beat analyst expectations for a loss of 1 cent a share, according to analysts surveyed by FactSet Research. Revenue also decreased to $464.1 million from $491.1 million, men's clothing retailer said. In the second quarter, the company expects earnings in a range of 56 cents to 60 cents a share.
Energy stocks retreat with broad market, (9:35 am ET)
NEW YORK (MarketWatch) -- Energy stocks fell with the broad market on Monday as oil prices retreated. The Amex Oil Index (XOI: news, chart, profile) fell 0.9%. The Amex Natural Gas Index (XNG: news, chart, profile) dropped 1% to 441. The Philadelphia Oil Service Index ($OSX: news, chart, profile) retreated 1.2% to 177.
General Mills raises fiscal 2009 outlook(12:30 am ET)
LOS ANGELES (MarketWatch) -- General Mills Inc. (GIS: news, chart, profile) said early Monday that it expects to report fiscal 2009 earnings per share that are "several cents" higher than its most recently announced estimates of $3.87 to $3.89 a share, excluding certain items. The higher outlook reflects "good operating performance and a lower fourth-quarter tax rate," the Minneapolis-based company said. General Mills expects to report complete fourth-quarter and full-year results on July 1.
Friday, June 5
Bellway sees demand remaining steady(2:25 am ET)
LONDON (MarketWatch) -- U.K. house builder Bellway (UK:BWY: news, chart, profile) said Friday that it has seen no overall major change in demand since the end of March. Net reservations since the start of February have averaged 105 per week and the total number of completed stock units has fallen to 660 from 1,000 at the end of January. Bellway said its southern based divisions have experienced a marginally stronger market and it is envisaged that turnover in these divisions will be much higher by the year end than the northern based divisions, where markets still remain fragile.
Thursday, June 4
Guess tops profit target(4:30 pm ET)
SAN FRANCISCO (MarketWatch) -- Guess Inc. (GES: news, chart, profile) Thursday afternoon reported net earnings for the quarter ended May 2 fell 32% from a year ago. But its profit exceeded analyst expectations and the clothing and apparel maker offered a bright forecast, sending its shares higher in late trading. Guess posted fiscal first-quarter net earnings of $32.5 million, or 35 cents a share. Analysts had expected 29 cents, according to FactSet. Sales fell 10% to $441.2 million. A year ago, Guess earned $47.8 million, or 50 cents a share. The company forecast fiscal second-earnings between 42 cents and 45 cents. Analysts are looking for 37 cents. Los Angeles-based Guess operates 429 retail stores in the U.S. and Canada. It plans to a dividend of 10 cents a share July 2.
Energy stocks recover on upside jobs surprise(9:42 am ET)
NEW YORK (MarketWatch) -- Energy stocks moved past bearish inventory data from the previous session and rose Thursday on a better-than-expected weekly jobs report. The Amex Oil Index (XOI: news, chart, profile) rose 1.4% to 982. The Amex Natural Gas Index (XNG: news, chart, profile) rose 1.5% to 443. The Philadelphia Oil Service Index ($OSX: news, chart, profile) rose 2% to 179. Valero (VLO: news, chart, profile) rose 12 cents to $18.52.
Rite Aid's May same-store sales rise 0.6%(8:50 am ET)
NEW YORK (MarketWatch) - Drugstore chain Rite Aid Corp. (RAD: news, chart, profile) said Thursday that its May same-store sales rose 0.6%. Analysts, on average, had expected same-store sales to rise 0.8%, according to Thomson Reuters. Front-end same-store sales in the five weeks ended May 30 fell 1.5%, while pharmacy same-store sales rose 1.6%. For the quarter ended May 30, same-store sales rose 0.6%.
Vail reports sharp declines in profit, visitation(8:29 am ET)
NEW YORK (MarketWatch) -- The recession tightened its grip on Vail Resorts in the fiscal third quarter as the ski area operator on Thursday reported sharp declines in profit and visitation. Before the start of trading, Vail (MTN: news, chart, profile) said that it earned $61.6 million, or $1.68 a share, for the period. That is down 29% from $87.3 million, or $2.24 a share, in the same quarter last year. Revenue slipped to $334 million from $424 million as the company said it was hit by "the continued severe downturn in the economy, driving lower destination visitation in the quarter." The average estimate of analysts polled by FactSet Research had been for the company to earn $1.56 a share on sales of $341 million.
Family Dollar net to meet or exceed estimate(8:17 am ET)
TEL AVIV (MarketWatch) -- Family Dollar Stores Inc., (FDO: news, chart, profile) the Matthews, N.C., discount retailer, estimated that fiscal third-quarter earnings will be at or above the upper end of its earlier estimate of 54 cents to 58 cents a share. A survey of analysts by FactSet Research produced a consensus estimate of 57 cents for the quarter. Third-quarter sales rose 6.2% on a comparable basis, while total sales rose 8.2% to $1.84 billion from $1.7 billion in the year earlier quarter. "Sales of consumable merchandise continued to be strong," rising 13% in the quarter, Chairman and Chief Executive Howard R. Levine said in a statement. "Notably, sales trends in several discretionary categories improved" from the second quarter.
Dillard May same-store sales down 13%(8:14 am ET)
NEW YORK (MarketWatch) -- Dillard Department Stores Inc. (DDS: news, chart, profile) on Thursday said May same-store sales fell 13%. Analysts expected same-store sales to fall 8%, according to a survey by Thomson Reuters. Total sales dropped to $430 million from $500 million. The Little Rock, Ark. retailer said sales performance in the home and furniture category was significantly below trend during the period.
Ciena loses $503 million on goodwill markdown(7:15 am ET)
NEW YORK (MarketWatch) -- Ciena Corp. (CIEN: news, chart, profile) on Thursday said it lost $503 million, or $5.53 a share in its fiscal second quarter, against year-ago net income of $23.8 million, or 23 cents a share. The latest period included a non-cash charge of $455.7 million for impairment of goodwill. Ciena's adjusted net loss was 25 cents a share. Revenue fell to $144.2 million from $242.2 million. Analysts expected a loss of 14 cents a share for the second quarter, according to a survey by FactSet Research.
The Buckle's same-store sales rise 13.4% in May(7:09 am ET)
NEW YORK (MarketWatch) -- The Buckle Inc. (BKE: news, chart, profile) said Thursday that its May sales at stores open at least one year rose 13.4%. Analysts, on average, had expected same-store sales to rise 11.2%, according to Thomson Reuters. Net sales for the four weeks ended May 30 rose 19.2% to $60.6 million.
Stage Stores May same-store sales fell 7.2%(6:11 am ET)
LONDON (MarketWatch) -- Stage Stores Inc. (SSI: news, chart, profile) said Thursday that its May sales at stores open at least one year fell 7.2%. Analysts, on average, had expected same-store sales to fall 6%, according to Thomson Reuters. Total sales for the four weeks ended May 30 fell 4.7% to $116.8 million from $122.6 million a year earlier.
Costco May same-store sales fell 7%, total off 5%(4:42 am ET)
TEL AVIV (MarketWatch) -- Costco Wholesale Corp., (COST: news, chart, profile) the Issaquah, Wash., warehouse retailer, reported that for May, comparable-store sales fell 7% while total sales fell 5% to $5.47 billion from $5.77 billion in the year-earlier month. A survey of analysts by Thomson Reuters produced a consensus estimate of same-store sales down 6.4% for the month. The same-store sales reflected declines of 6% in the U.S. and 7% internationally, Costco reported. Excluding a drop in gasoline prices, U.S. same-store sales fell 1%; excluding currency effects, international comparable sales rose 7%. Excluding the special impacts, total comparable-store sales rose 1%. (Adds Thomson Reuters estimate of same-store sales.)
Copart 3rd-quarter net off 9.5%, revenue down 11%(2:35 am ET)
TEL AVIV (MarketWatch) -- Copart Inc., (CPRT: news, chart, profile) the Fairfield, Calif., provider of vehicle-remarketing services for insurers, banks and finance companies, car dealers and more, reported that fiscal-third-quarter net income fell 9.5% on 11% lower revenue. For the quarter ended April 30, earnings were $42.1 million, or 50 cents a share, compared with $46.5 million, or 52 cents, in the year-earlier quarter. Earnings from continuing operations were 48 cents against 52 cents. Shares outstanding fell 5.5% to 84.8 million. Revenue declined to $197.3 million from $221.2 million. The strengthening of the dollar in the latest period compared with the year-earlier reduced the quarter's revenue by $14.1 million, Copart said in a statement on late on Wednesday.
Wednesday, June 3
Williams-Sonoma swings to loss; revenue off 22%(7:32 am ET)
TEL AVIV (MarketWatch) -- Williams-Sonoma Inc., (WSM: news, chart, profile) the San Francisco housewares retailer, swung to a fiscal first-quarter loss from a year-earlier profit on 22% lower revenue and 21% lower comparable-store sales. For the quarter ended May 3, the loss totaled $18.7 million, or 18 cents a share, compared with earnings of $10.4 million, or 10 cents, in the year-earlier quarter. Backing out special items, the results were a loss of 14 cents a share against profit of 5 cents. Revenue fell to $611.6 million from $781.8 million. A survey of analysts by FactSet Research produced consensus estimates of a loss of 21 cents a share on sales of $611.4 million. Gross-profit margin narrowed to 30.1% of revenue from 35.3% a year earlier. Williams-Sonoma affirmed its estimates for the year, saying that while the first-quarter performance was better than expected, the economy remains volatile and promotions may be required as the industry reduces inventory.
Joy Global earnings per share up 77%(7:27 am ET)
NEW YORK (MarketWatch) -- Joy Global Inc. (JOYG: news, chart, profile) said Wednesday that second-quarter earnings were $121 million, or $1.17 a share, compared to $72 million, or 66 cents a share, in the same period a year ago. Sales rose 10% to $924 million, compared to $843 million a year ago. Analysts polled by FactSet Research estimated, on average, earnings per share of 89 cents and sales of $869 million. The mining-equipment maker expects fiscal 2009 revenues to be between $3.5 billion and $3.6 billion and earnings per share to be between $3.80 and $4.00.
Bombardier profit off 31%, revenue down 6.6%(6:31 am ET)
TEL AVIV (MarketWatch) -- Bombardier Inc., (BDRAF: news, chart, profile) (BDRBF: news, chart, profile) (CA:BBD.A: news, chart, profile) (CA:BBD.B: news, chart, profile) the Montreal aerospace and transportation company, reported fiscal first-quarter net income fell 31% on 6.6% lower revenue. For the quarter ended April 30, Bombardier earned US$158 million against US$229 million in the year-earlier quarter. Earnings attributable to shareholders were $156 million, or 9 cents a share, down 31% from $226 million, or 12 cents. Revenue fell to $4.47 billion from $4.79 billion. In the aerospace division, overall deliveries "held up relatively well" in the quarter but "cancellations in business aircraft have outpaced" new orders, President and Chief Executive Pierre Beaudoin said in a statement on Wednesday. "For the rail industry, the fundamentals remain strong and the recession is not currently expected to have a significant impact." At April 30, Bombardier's order backlog was $47.4 billion, compared with $48.2 billion at Jan. 31.
Toll Brothers shrinks loss; write-downs ease(5:36 am ET)
TEL AVIV (MarketWatch) -- Toll Brothers Inc., (TOL: news, chart, profile) the Horsham, Pa., luxury-home builder, reported a narrower fiscal second-quarter net loss on 51% lower revenue. For the quarter ended April 30, the loss was $83.2 million, or 52 cents a share, compared with $93.7 million, or 59 cents, in the year-earlier quarter. Revenue declined to $398.3 million from $818 million. Write-downs in the quarter declined to the equivalent of 48 cents a share from $1.06. The year-earlier quarter also included 15 cents a share of profit from proceeds of a judgment. Excluding special items, the adjusted loss was 3 cents a share in the latest period, compared with earnings of 32 cents a year earlier. A survey of analysts by FactSet Research produced consensus estimates of a loss of 47 cents on $403.1 million of sales. At the end of the second quarter, the backlog was 1,581 units, down 48% from a year earlier. The backlog was valued at $944.3 million, down 55%.
Arrow Electronics sharpens 2nd-quarter estimates(2:49 am ET)
TEL AVIV (MarketWatch) -- Arrow Electronics Inc., (ARW: news, chart, profile) the Melville, N.Y., provider of products and services for users of electronic parts and enterprise-computing solutions, estimated late on Tuesday that fiscal second-quarter earnings would come in at 26 cents to 31 cents a share on revenue of $3.05 billion to $3.65 billion. For the quarter ending July 4, a survey of analysts by FactSet Research produced a consensus estimate of 34 cents of profit on $3.49 billion of revenue. Arrow's previous estimate was 26 cents to 38 cents of profit on $3.15 billion to $3.75 billion of revenue. The global economic crisis continues to hurt Arrow, mainly in the European parts business, the company said in a statement. Sales in global enterprise-computing solutions "in the last few weeks of June, which typically account for a significant portion of the quarter's revenue," will be "a determining factor in the actual revenue and earnings achieved," the company said.
Tuesday, June 2
FirstEnergy issues 2009 profit outlook(5:06 pm ET)
SAN FRANCISCO (MarketWatch) -- FirstEnergy Corp. (FE: news, chart, profile) late Tuesday said it expects to earn fiscal 2009 adjusted earnings between $3.70 and $3.85 a share. On average, analysts expect FirstEnergy to earn $3.64 a share, according to FactSet Research. The Akron, Ohio energy provider plans to make a presentation to analysts on Wednesday in New York City. The company serves 4.5 million customers in Ohio, Pennsylvania and New Jersey. FirstEnergy shares rose more than 3% to $39.97 in late trading.
Aetna lowers 2009 profit guidance(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- Aetna Inc. (AET: news, chart, profile) said Tuesday it's lowering guidance for earnings in 2009 to between $3.55 and $3.70 a share, from its previous range of between $3.85 and $3.95 a share. The insurance company cited "higher projected Commercial medical costs; and lower projected 2009 Medicare revenue." Shares of Aetna fell more than 10% in late trading to $24.40.
Thursday, June 4
Guess tops profit target(4:30 pm ET)
SAN FRANCISCO (MarketWatch) -- Guess Inc. (GES: news, chart, profile) Thursday afternoon reported net earnings for the quarter ended May 2 fell 32% from a year ago. But its profit exceeded analyst expectations and the clothing and apparel maker offered a bright forecast, sending its shares higher in late trading. Guess posted fiscal first-quarter net earnings of $32.5 million, or 35 cents a share. Analysts had expected 29 cents, according to FactSet. Sales fell 10% to $441.2 million. A year ago, Guess earned $47.8 million, or 50 cents a share. The company forecast fiscal second-earnings between 42 cents and 45 cents. Analysts are looking for 37 cents. Los Angeles-based Guess operates 429 retail stores in the U.S. and Canada. It plans to a dividend of 10 cents a share July 2.
Energy stocks recover on upside jobs surprise(9:42 am ET)
NEW YORK (MarketWatch) -- Energy stocks moved past bearish inventory data from the previous session and rose Thursday on a better-than-expected weekly jobs report. The Amex Oil Index (XOI: news, chart, profile) rose 1.4% to 982. The Amex Natural Gas Index (XNG: news, chart, profile) rose 1.5% to 443. The Philadelphia Oil Service Index ($OSX: news, chart, profile) rose 2% to 179. Valero (VLO: news, chart, profile) rose 12 cents to $18.52.
Rite Aid's May same-store sales rise 0.6%(8:50 am ET)
NEW YORK (MarketWatch) - Drugstore chain Rite Aid Corp. (RAD: news, chart, profile) said Thursday that its May same-store sales rose 0.6%. Analysts, on average, had expected same-store sales to rise 0.8%, according to Thomson Reuters. Front-end same-store sales in the five weeks ended May 30 fell 1.5%, while pharmacy same-store sales rose 1.6%. For the quarter ended May 30, same-store sales rose 0.6%.
Vail reports sharp declines in profit, visitation(8:29 am ET)
NEW YORK (MarketWatch) -- The recession tightened its grip on Vail Resorts in the fiscal third quarter as the ski area operator on Thursday reported sharp declines in profit and visitation. Before the start of trading, Vail (MTN: news, chart, profile) said that it earned $61.6 million, or $1.68 a share, for the period. That is down 29% from $87.3 million, or $2.24 a share, in the same quarter last year. Revenue slipped to $334 million from $424 million as the company said it was hit by "the continued severe downturn in the economy, driving lower destination visitation in the quarter." The average estimate of analysts polled by FactSet Research had been for the company to earn $1.56 a share on sales of $341 million.
Family Dollar net to meet or exceed estimate(8:17 am ET)
TEL AVIV (MarketWatch) -- Family Dollar Stores Inc., (FDO: news, chart, profile) the Matthews, N.C., discount retailer, estimated that fiscal third-quarter earnings will be at or above the upper end of its earlier estimate of 54 cents to 58 cents a share. A survey of analysts by FactSet Research produced a consensus estimate of 57 cents for the quarter. Third-quarter sales rose 6.2% on a comparable basis, while total sales rose 8.2% to $1.84 billion from $1.7 billion in the year earlier quarter. "Sales of consumable merchandise continued to be strong," rising 13% in the quarter, Chairman and Chief Executive Howard R. Levine said in a statement. "Notably, sales trends in several discretionary categories improved" from the second quarter.
Dillard May same-store sales down 13%(8:14 am ET)
NEW YORK (MarketWatch) -- Dillard Department Stores Inc. (DDS: news, chart, profile) on Thursday said May same-store sales fell 13%. Analysts expected same-store sales to fall 8%, according to a survey by Thomson Reuters. Total sales dropped to $430 million from $500 million. The Little Rock, Ark. retailer said sales performance in the home and furniture category was significantly below trend during the period.
Ciena loses $503 million on goodwill markdown(7:15 am ET)
NEW YORK (MarketWatch) -- Ciena Corp. (CIEN: news, chart, profile) on Thursday said it lost $503 million, or $5.53 a share in its fiscal second quarter, against year-ago net income of $23.8 million, or 23 cents a share. The latest period included a non-cash charge of $455.7 million for impairment of goodwill. Ciena's adjusted net loss was 25 cents a share. Revenue fell to $144.2 million from $242.2 million. Analysts expected a loss of 14 cents a share for the second quarter, according to a survey by FactSet Research.
The Buckle's same-store sales rise 13.4% in May(7:09 am ET)
NEW YORK (MarketWatch) -- The Buckle Inc. (BKE: news, chart, profile) said Thursday that its May sales at stores open at least one year rose 13.4%. Analysts, on average, had expected same-store sales to rise 11.2%, according to Thomson Reuters. Net sales for the four weeks ended May 30 rose 19.2% to $60.6 million.
Stage Stores May same-store sales fell 7.2%(6:11 am ET)
LONDON (MarketWatch) -- Stage Stores Inc. (SSI: news, chart, profile) said Thursday that its May sales at stores open at least one year fell 7.2%. Analysts, on average, had expected same-store sales to fall 6%, according to Thomson Reuters. Total sales for the four weeks ended May 30 fell 4.7% to $116.8 million from $122.6 million a year earlier.
Costco May same-store sales fell 7%, total off 5%(4:42 am ET)
TEL AVIV (MarketWatch) -- Costco Wholesale Corp., (COST: news, chart, profile) the Issaquah, Wash., warehouse retailer, reported that for May, comparable-store sales fell 7% while total sales fell 5% to $5.47 billion from $5.77 billion in the year-earlier month. A survey of analysts by Thomson Reuters produced a consensus estimate of same-store sales down 6.4% for the month. The same-store sales reflected declines of 6% in the U.S. and 7% internationally, Costco reported. Excluding a drop in gasoline prices, U.S. same-store sales fell 1%; excluding currency effects, international comparable sales rose 7%. Excluding the special impacts, total comparable-store sales rose 1%. (Adds Thomson Reuters estimate of same-store sales.)
Copart 3rd-quarter net off 9.5%, revenue down 11%(2:35 am ET)
TEL AVIV (MarketWatch) -- Copart Inc., (CPRT: news, chart, profile) the Fairfield, Calif., provider of vehicle-remarketing services for insurers, banks and finance companies, car dealers and more, reported that fiscal-third-quarter net income fell 9.5% on 11% lower revenue. For the quarter ended April 30, earnings were $42.1 million, or 50 cents a share, compared with $46.5 million, or 52 cents, in the year-earlier quarter. Earnings from continuing operations were 48 cents against 52 cents. Shares outstanding fell 5.5% to 84.8 million. Revenue declined to $197.3 million from $221.2 million. The strengthening of the dollar in the latest period compared with the year-earlier reduced the quarter's revenue by $14.1 million, Copart said in a statement on late on Wednesday.
Wednesday, June 3
Williams-Sonoma swings to loss; revenue off 22%(7:32 am ET)
TEL AVIV (MarketWatch) -- Williams-Sonoma Inc., (WSM: news, chart, profile) the San Francisco housewares retailer, swung to a fiscal first-quarter loss from a year-earlier profit on 22% lower revenue and 21% lower comparable-store sales. For the quarter ended May 3, the loss totaled $18.7 million, or 18 cents a share, compared with earnings of $10.4 million, or 10 cents, in the year-earlier quarter. Backing out special items, the results were a loss of 14 cents a share against profit of 5 cents. Revenue fell to $611.6 million from $781.8 million. A survey of analysts by FactSet Research produced consensus estimates of a loss of 21 cents a share on sales of $611.4 million. Gross-profit margin narrowed to 30.1% of revenue from 35.3% a year earlier. Williams-Sonoma affirmed its estimates for the year, saying that while the first-quarter performance was better than expected, the economy remains volatile and promotions may be required as the industry reduces inventory.
Joy Global earnings per share up 77%(7:27 am ET)
NEW YORK (MarketWatch) -- Joy Global Inc. (JOYG: news, chart, profile) said Wednesday that second-quarter earnings were $121 million, or $1.17 a share, compared to $72 million, or 66 cents a share, in the same period a year ago. Sales rose 10% to $924 million, compared to $843 million a year ago. Analysts polled by FactSet Research estimated, on average, earnings per share of 89 cents and sales of $869 million. The mining-equipment maker expects fiscal 2009 revenues to be between $3.5 billion and $3.6 billion and earnings per share to be between $3.80 and $4.00.
Wednesday, June 3
Williams-Sonoma swings to loss; revenue off 22%(7:32 am ET)
TEL AVIV (MarketWatch) -- Williams-Sonoma Inc., (WSM: news, chart, profile) the San Francisco housewares retailer, swung to a fiscal first-quarter loss from a year-earlier profit on 22% lower revenue and 21% lower comparable-store sales. For the quarter ended May 3, the loss totaled $18.7 million, or 18 cents a share, compared with earnings of $10.4 million, or 10 cents, in the year-earlier quarter. Backing out special items, the results were a loss of 14 cents a share against profit of 5 cents. Revenue fell to $611.6 million from $781.8 million. A survey of analysts by FactSet Research produced consensus estimates of a loss of 21 cents a share on sales of $611.4 million. Gross-profit margin narrowed to 30.1% of revenue from 35.3% a year earlier. Williams-Sonoma affirmed its estimates for the year, saying that while the first-quarter performance was better than expected, the economy remains volatile and promotions may be required as the industry reduces inventory.
Joy Global earnings per share up 77%(7:27 am ET)
NEW YORK (MarketWatch) -- Joy Global Inc. (JOYG: news, chart, profile) said Wednesday that second-quarter earnings were $121 million, or $1.17 a share, compared to $72 million, or 66 cents a share, in the same period a year ago. Sales rose 10% to $924 million, compared to $843 million a year ago. Analysts polled by FactSet Research estimated, on average, earnings per share of 89 cents and sales of $869 million. The mining-equipment maker expects fiscal 2009 revenues to be between $3.5 billion and $3.6 billion and earnings per share to be between $3.80 and $4.00.
Bombardier profit off 31%, revenue down 6.6%(6:31 am ET)
TEL AVIV (MarketWatch) -- Bombardier Inc., (BDRAF: news, chart, profile) (BDRBF: news, chart, profile) (CA:BBD.A: news, chart, profile) (CA:BBD.B: news, chart, profile) the Montreal aerospace and transportation company, reported fiscal first-quarter net income fell 31% on 6.6% lower revenue. For the quarter ended April 30, Bombardier earned US$158 million against US$229 million in the year-earlier quarter. Earnings attributable to shareholders were $156 million, or 9 cents a share, down 31% from $226 million, or 12 cents. Revenue fell to $4.47 billion from $4.79 billion. In the aerospace division, overall deliveries "held up relatively well" in the quarter but "cancellations in business aircraft have outpaced" new orders, President and Chief Executive Pierre Beaudoin said in a statement on Wednesday. "For the rail industry, the fundamentals remain strong and the recession is not currently expected to have a significant impact." At April 30, Bombardier's order backlog was $47.4 billion, compared with $48.2 billion at Jan. 31.
Toll Brothers shrinks loss; write-downs ease(5:36 am ET)
TEL AVIV (MarketWatch) -- Toll Brothers Inc., (TOL: news, chart, profile) the Horsham, Pa., luxury-home builder, reported a narrower fiscal second-quarter net loss on 51% lower revenue. For the quarter ended April 30, the loss was $83.2 million, or 52 cents a share, compared with $93.7 million, or 59 cents, in the year-earlier quarter. Revenue declined to $398.3 million from $818 million. Write-downs in the quarter declined to the equivalent of 48 cents a share from $1.06. The year-earlier quarter also included 15 cents a share of profit from proceeds of a judgment. Excluding special items, the adjusted loss was 3 cents a share in the latest period, compared with earnings of 32 cents a year earlier. A survey of analysts by FactSet Research produced consensus estimates of a loss of 47 cents on $403.1 million of sales. At the end of the second quarter, the backlog was 1,581 units, down 48% from a year earlier. The backlog was valued at $944.3 million, down 55%.
Arrow Electronics sharpens 2nd-quarter estimates(2:49 am ET)
TEL AVIV (MarketWatch) -- Arrow Electronics Inc., (ARW: news, chart, profile) the Melville, N.Y., provider of products and services for users of electronic parts and enterprise-computing solutions, estimated late on Tuesday that fiscal second-quarter earnings would come in at 26 cents to 31 cents a share on revenue of $3.05 billion to $3.65 billion. For the quarter ending July 4, a survey of analysts by FactSet Research produced a consensus estimate of 34 cents of profit on $3.49 billion of revenue. Arrow's previous estimate was 26 cents to 38 cents of profit on $3.15 billion to $3.75 billion of revenue. The global economic crisis continues to hurt Arrow, mainly in the European parts business, the company said in a statement. Sales in global enterprise-computing solutions "in the last few weeks of June, which typically account for a significant portion of the quarter's revenue," will be "a determining factor in the actual revenue and earnings achieved," the company said.
Tuesday, June 2
FirstEnergy issues 2009 profit outlook(5:06 pm ET)
SAN FRANCISCO (MarketWatch) -- FirstEnergy Corp. (FE: news, chart, profile) late Tuesday said it expects to earn fiscal 2009 adjusted earnings between $3.70 and $3.85 a share. On average, analysts expect FirstEnergy to earn $3.64 a share, according to FactSet Research. The Akron, Ohio energy provider plans to make a presentation to analysts on Wednesday in New York City. The company serves 4.5 million customers in Ohio, Pennsylvania and New Jersey. FirstEnergy shares rose more than 3% to $39.97 in late trading.
Aetna lowers 2009 profit guidance(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- Aetna Inc. (AET: news, chart, profile) said Tuesday it's lowering guidance for earnings in 2009 to between $3.55 and $3.70 a share, from its previous range of between $3.85 and $3.95 a share. The insurance company cited "higher projected Commercial medical costs; and lower projected 2009 Medicare revenue." Shares of Aetna fell more than 10% in late trading to $24.40.
Energy stocks cool off after big gains (9:37 am ET)
NEW YORK (MarketWatch) -- Energy stocks cooled off Tuesday after three days of strong gains, as crude futures weakened. The Amex Oil Index (XOI: news, chart, profile) fell 0.7% to 1,013. The Amex Natural Gas Index (XNG: news, chart, profile) fell 1.9% to 452. Natco Group (NTG: news, chart, profile) jumped 17% to $36.19 after it agreed to be bought by Cameron International (CAM: news, chart, profile) . Cameron International fell 4.3% to $31.06.
Morgan Stanley to raise $2.2 billion common equity(7:17 am ET)
NEW YORK (MarketWatch) -- Morgan Stanley said Tuesday that it intends to raise $2.2 billion in common equity to satisfy a condition to redeem Troubled Asset Relief Progra preferred capital. While approval for repayment has not been granted, Morgan Stanley believes that upon completion of this capital raise it will have satisfied the criteria for fully redeeming the TARP preferred capital and expects to redeem it before the end of June. The offering is expected to include China Investment Corp. and Mitsubishi UFJ Financial Group Inc.
Tuesday, June 2
FirstEnergy issues 2009 profit outlook(5:06 pm ET)
SAN FRANCISCO (MarketWatch) -- FirstEnergy Corp. (FE: news, chart, profile) late Tuesday said it expects to earn fiscal 2009 adjusted earnings between $3.70 and $3.85 a share. On average, analysts expect FirstEnergy to earn $3.64 a share, according to FactSet Research. The Akron, Ohio energy provider plans to make a presentation to analysts on Wednesday in New York City. The company serves 4.5 million customers in Ohio, Pennsylvania and New Jersey. FirstEnergy shares rose more than 3% to $39.97 in late trading.
Aetna lowers 2009 profit guidance(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- Aetna Inc. (AET: news, chart, profile) said Tuesday it's lowering guidance for earnings in 2009 to between $3.55 and $3.70 a share, from its previous range of between $3.85 and $3.95 a share. The insurance company cited "higher projected Commercial medical costs; and lower projected 2009 Medicare revenue." Shares of Aetna fell more than 10% in late trading to $24.40.
Energy stocks cool off after big gains (9:37 am ET)
NEW YORK (MarketWatch) -- Energy stocks cooled off Tuesday after three days of strong gains, as crude futures weakened. The Amex Oil Index (XOI: news, chart, profile) fell 0.7% to 1,013. The Amex Natural Gas Index (XNG: news, chart, profile) fell 1.9% to 452. Natco Group (NTG: news, chart, profile) jumped 17% to $36.19 after it agreed to be bought by Cameron International (CAM: news, chart, profile) . Cameron International fell 4.3% to $31.06.
Morgan Stanley to raise $2.2 billion common equity(7:17 am ET)
NEW YORK (MarketWatch) -- Morgan Stanley said Tuesday that it intends to raise $2.2 billion in common equity to satisfy a condition to redeem Troubled Asset Relief Progra preferred capital. While approval for repayment has not been granted, Morgan Stanley believes that upon completion of this capital raise it will have satisfied the criteria for fully redeeming the TARP preferred capital and expects to redeem it before the end of June. The offering is expected to include China Investment Corp. and Mitsubishi UFJ Financial Group Inc.
Pepsi Bottling lifts estimates for quarter, year(6:31 am ET)
TEL AVIV (MarketWatch) -- Pepsi Bottling Group Inc., (PBG: news, chart, profile) the Somers, N.Y., bottler of Pepsi (PEP: news, chart, profile) drinks, raised its comparable-earnings estimates for the second quarter and 2009. The company added a nickel a share to its estimate for the quarter, bringing the range to 70 cents to 74 cents, and a dime a share to its full-year view, bringing the range to $2.30 to $2.40. A survey of analysts by FactSet Research produced consensus estimates of 70 cents for the quarter and $2.26 for the year. "Among the key drivers of the company's revised outlook are improved carbonated-soft-drink performance in the U.S., decreased volatility in foreign currencies, and continued commodity-cost deflation," Pepsi Bottling said in a statement on Tuesday. Business fundamentals in the U.S. and Canada are improving and its global pricing strategy is succeeding, "producing solid results," PBG said.
CORRECT: Ryanair loses $239 million(2:55 am ET)
LONDON (MarketWatch) -- Ryanair Holdings (RYAAY: news, chart, profile) (UK:RYA: news, chart, profile) , the Irish-based European discount airline, said it lost 169.1 million euros ($239 million) in the year ending March 31 after earning 390.7 million euros the previous year, with the airline taking accelerated depreciation of 51.6 million euros on aircraft and a 222.5 million euro impairment charge on its Aer Lingus (UK:AERL: news, chart, profile) stake. The company's fuel bill rose 59% to 466 million euros. Revenue rose 8% to 2.94 billion euros. The airline highlighted that its passenger traffic of 67 million and market capitalization as of May 1 exceeded Lufthansa, Air France-KLM and British Airways. It expects annual traffic to climb 15% and an adjusted after-tax profit between 200 million and 300 million euros, compared to 105 million euros in the past fiscal year. (Fixes date of comparison in profit forecast.)
Monday, June 1
GM cutting 7,900 salaried jobs by end of year(10:13 am ET)
NEW YORK (MarketWatch) -- General Motors Corp. (GM: news, chart, profile) said Monday it would cut 7,900 jobs this year as part of its move to emerge from bankrtupcy. The auto maker said it'll cut salaried employment in North America from its year-end total of 35,100 to approximately 27,200. It'll also reduce retiree benefits for salaried retirees and non-UAW hourly retirees. GM also said GM Europe has an agreement for bridge financing from the German government and a Memorandum of Understanding to partner with Magna International Inc. (MGA: news, chart, profile) . GM's Opel/Vauxhall assets have been pooled under Adam Opel GmbH, with the majority of the shares of Adam Opel GmbH being put into an independent trust. Negotiations to close the agreement should take several weeks, GM said.
Monday, June 1
GM cutting 7,900 salaried jobs by end of year(10:13 am ET)
NEW YORK (MarketWatch) -- General Motors Corp. (GM: news, chart, profile) said Monday it would cut 7,900 jobs this year as part of its move to emerge from bankrtupcy. The auto maker said it'll cut salaried employment in North America from its year-end total of 35,100 to approximately 27,200. It'll also reduce retiree benefits for salaried retirees and non-UAW hourly retirees. GM also said GM Europe has an agreement for bridge financing from the German government and a Memorandum of Understanding to partner with Magna International Inc. (MGA: news, chart, profile) . GM's Opel/Vauxhall assets have been pooled under Adam Opel GmbH, with the majority of the shares of Adam Opel GmbH being put into an independent trust. Negotiations to close the agreement should take several weeks, GM said.
Energy stocks rise with the broad market (9:54 am ET)
NEW YORK (MarketWatch) -- Energy stocks jumped with the broad market on optimism tied to an uptick in industrial activity in China. The Amex Oil Index (XOI: news, chart, profile) jumped 2.4%, breaking through the 1,000 barrier for the first time since January. The Amex Natural Gas Index (XNG: news, chart, profile) rose 2.3% to 450. Crude prices rose $1 a barrel to break through the $67 level. Energy sector leader Exxon Mobil (XOM: news, chart, profile) rose 1.9% to $70.65. Chevron (CVX: news, chart, profile) rose $1.13 to $67.80. Both oil majors are components of the Dow Jones Industrial Average ($DJ: news, chart, profile) , which rose more than 100 points.
Magna International moves ahead with Opel purchase(8:39 am ET)
NEW YORK (MarketWatch) -- Magna International Inc. (MGA: news, chart, profile) on Monday said it's moving ahead with plans to buy GM's Opel unit in a transaction that will allow the German car firm to avoid bankruptcy. The Canadian auto parts giant said it's held extensive negotiations over the past several days with representatives of German federal and state governments, GM Europe, General Motors Corp, and the U.S. Treasury. "While the recent negotiations have been intense and difficult at times, I believe we have achieved a constructive solution that represents a 'win-win' for all stakeholders and will position Opel to compete and succeed," said Magna Chairman Frank Stronach.
Tenet reconfirms adjusted EBITDA view(7:31 am ET)
NEW YORK (MarketWatch) -- Tenet Healthcare Corp. (THC: news, chart, profile) on Monday reconfirmed its 2009 outlook for adjusted EBITDA of $760 million to $825 million and said it has "a growing level of confidence toward the higher end of that range." The company also said that its aggregate patient admission trends for May were mostly in line with April's trends.
Sunday, May 31
U.S. providing GM $30 billion in bankruptcy deal(10:00 pm ET)
NEW YORK (MarketWatch) -- Senior officials in the Obama administration said Sunday the U.S. government will provide $30 billion in financing to General Motors Corp. (GM: news, chart, profile) to allow it to continue to operate through a historic Chapter 11 bankruptcy proceeding that will last an estimated 60 to 90 days. Officials confirmed that a majority of GM debt holders approved a deal to allow the ailing car maker to restructure its obligations. Describing the process as "painful but necessary," officials said GM will move ahead with plans to close 11 facilities and idle three more. The specific number of layoffs will be released by GM and the United Auto Workers, officials said. They said the U.S. government will own 60% of the new General Motors.
Thursday, May 28
J. Crew profit drops 33% (4:26 pm ET)
SAN FRANCISCO (MarketWatch) -- Apparel retailer J. Crew Group Inc. (JCG: news, chart, profile) reported late Thursday fiscal first-quarter net income fell to $20.4 million, or 32 cents a share, from $30.5 million, or 48 cents, a year ago. Severance and asset writedowns trimmed about 2 cents a share from the bottom line. Total revenue for the three months ended May 2, including store and direct sales, rose 1.5% to nearly $346 million from $341 million. Analysts polled by FactSet Research had expected the New York-based company to post earnings of 11 cents a share. The company said it expects to earn 8 cents to 12 cents in the second quarter. J. Crew shares rose 1.4% to close at $20.46 ahead of the report. The stock is down 57% over the past 12 months.
Dell earnings plunge 63% in first quarter(4:07 pm ET)
SAN FRANCISCO (MarketWatch) - Dell Inc. said Thursday afternoon that earnings plunged 63% on a sharp drop in PC sales, as well as restructuring charges. For the quarter ended May 1, the PC maker (DELL: news, chart, profile) said net income was $290 million, or 15 cents a share, compared to earnings of $784 million, or 38 cents a share, for the same period the previous year. The results include a charge of 9 cents a share for restructuring. Revenue slipped 23% to $12.3 billion. Analysts were expecting earnings of 22 cents a share on revenue of $12.6 billion, according to consensus forecasts from FactSet Research.
Revlon to cut about 400 jobs(9:13 am ET)
NEW YORK (MarketWatch) -- Revlon Inc. (REV: news, chart, profile) said Thursday that it will eliminate about 400 jobs worldwide as part of an organizational restructuring. The cosmetics company said the move is expected to lower costs by about $30 million on an annualized basis, and it expects to take about $20 million in restructuring and related charges, mostly in the second quarter. Revlon also said its second-quarter forecast is "significantly below" results from the year-earlier quarter.
Grubb & Ellis reports wider quarterly loss(9:04 am ET)
BOSTON (MarketWatch) -- Grubb & Ellis Co. (GBE: news, chart, profile) on Thursday reported a first-quarter net loss of $43.3 million, or 65 cents a share, compared with a loss of $6.3 million, or 10 cents a share, in the year-ago quarter. The real estate company said total revenue fell to $118.3 million from $150.4 million. The latest quarter's results "reflect the challenging operating environment as well as the seasonal nature of the commercial real estate industry," said Gary Hunt, the firm's interim chief executive, in a prepared statement.
Procter & Gamble sees higher 2010 profit, sales (8:55 am ET)
NEW YORK (MarketWatch) -- The Procter & Gamble Co. (PG: news, chart, profile) on Thursday said it expects 2010 earnings of $3.65 to $3.80 a share, up from the midpoint of its year-ago target of $3.65 a share. Wall Street analysts expect the Cincinnati consumer products giant to earn $3.92 a share, according to a survey by FactSet Research. P&G expects 2010 organic sales growth of 1% to 3%, driven primarily by market share growth.
Mylan names CFO from Dr. Pepper Snapple(8:10 am ET)
NEW YORK (MarketWatch) -- Mylan Inc. (MYL: news, chart, profile) on Thursday named Jolene Varney as executive vice president and chief financial officer. Most recently, Varney served as senior vice president of corporate finance with Dr Pepper Snapple Group (DPS: news, chart, profile) .
Sanderson Farms profit surges(6:40 am ET)
LONDON (MarketWatch) -- Chicken producer Sanderson Farms Inc. (SAFM: news, chart, profile) said Thursday that its fiscal second-quarter net profit jumped to $26.2 million, or $1.27 a share, from $6.2 million, or 30 cents a share, a year earlier. Revenue for the quarter ended April 30 dipped 1.6% to $426.8 million. The group said its results reflect improved market conditions for the poultry industry. The group said much of the improvement in the market is due to production cuts and the resulting reduced supply of chicken in the market. Analysts polled by FactSet had been expecting earnings of 54 cents a share on sales of $402.1 million.
VimpelCom swings to loss on 31% higher revenue(6:28 am ET)
TEL AVIV (MarketWatch) -- Vimpel Communications, (VIP: news, chart, profile) the provider of telecom services to Russia and the Commonwealth of Independent States, swung to a first-quarter net loss from a year-earlier profit on 31% higher revenue. The loss was 8.51 billion rubles ($272 million), or 8.41 rubles an American depositary share, compared with net income of 14.59 billion rubles, or 14.36 per ADS, in the year-earlier quarter. Revenue reached 66.84 billion rubles from 51.14 billion. The net loss reflected losses on foreign exchange totaling 23.6 billion rubles. Operating earnings before depreciation and amortization rose 18% to 32.17 billion rubles; profit margin on this basis narrowed to 48.1% from 53.4%. VimpelCom now has 62.7 million mobile subscribers, up 20% from the year-earlier quarter.
Costco net off 29%; same-store sales down 7%(3:31 am ET)
TEL AVIV (MarketWatch) -- Costco Wholesale Corp., (COST: news, chart, profile) the Issaquah, Wash., warehouse retailer, reported that fiscal third-quarter earnings fell 29% on 4.8% lower net sales and 7% lower comparable-store sales. For the quarter ended May 10, Costco earned $209.6 million, or 48 cents a share, compared with $295.1 million, or 67 cents, in the year-earlier quarter. Net sales fell to $15.48 billion from $16.26 billion. Total revenue, which includes membership fees, fell 4.9% to $15.81 billion from $16.61 billion. A survey of analysts by FactSet Research produced consensus estimates of 54 cents of profit on $16.13 billion of sales. On a comparable basis for the quarter, sales fell 5% in the U.S. and 12% internationally, Costco reported. In a statement on Thursday, Chief Financial Officer Richard Galanti said the latest earnings reflected a pretax, mostly non-cash, charge of $34 million as Costco settled litigation regarding its membership-renewal policy. Also having an impact: higher costs of employee benefits, particularly health care; a stronger U.S. dollar against the currencies of Canada, the U.K., South Korea and Mexico; and weaker sales, particularly for "higher-ticket discretionary items," the executive said.
Tate & Lyle profit down 66%, dividend unchanged(2:39 am ET)
LONDON (MarketWatch) -- U.K. sugar producer Tate & Lyle (UK:TATE: news, chart, profile) said Thursday that its net profit for the year ended March 31 fell 66% to 65 million pounds ($104 million), while revenue rose 24% to 3.55 billion pounds. The group said that excluding one-off charges of 119 million pounds and the results from business that had been sold, adjusted pretax profit fell 2% to 247 million pounds, roughly matching expectations. The group said it will leave its final dividend unchanged at 16.1 pence, lifting the total payout for the year by 1.3% to 22.9 pence a share. Tate & Lyle said the new financial year has started in line with its expectations, but that the global recession, and its uncertain impact on customer demand, makes it difficult to predict the outlook for the year.
Man Group profit drops 86%, maintains dividend(2:28 am ET)
LONDON (MarketWatch) -- U.K. hedge fund manager Man Group (UK:EMG: news, chart, profile) said Thursday that its net profit for the fiscal year ended March 31 fell 86% to $503 million from $3.47 billion. The group said revenue fell 23% to $2.49 billion due to a sharp drop in performance fees. Excluding impairments and amortization charges, pretax profit fell 43% to $1.2 billion. The group said its funds under management at the end of March were $46.8 billion. That figure was $900 million below the level in a pre-close trading update because of a negative performance and the impact of exchange rate moves in the last week of March. Man Group said that since the end of the financial year it has seen strong demand from private investors and that there are signs of stabilization in the hedge fund industry. It added it will keep its final dividend unchanged at 24.8 cents a share.
Wednesday, May 27
TiVo swings to loss(4:20 pm ET)
CHICAGO (MarketWatch) -- Digital video recorder pioneer TiVo Inc. (TIVO: news, chart, profile) said it swung to a loss in its fiscal first quarter as paid subscriptions declined against the backdrop of the economic downturn. The company said it lost $4.13 million, or 4 cents a share, in the latest three months. In the first fiscal quarter a year earlier, it posted a profit of $3.6 million, or 4 cents a share. Service and technology revenues fell to $48.5 million from $54.9 million. Analysts polled by Thomson Reuters were expecting a loss of 5 cents a share on service and technology revenues of $48.6 million. In its second fiscal quarter, TiVo expects to take a loss in the range of $6 million to $8 million on service and technology revenues of $47 million to $49 million.
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