AI
Friday, Oct. 26
Tesoro Corp. reviewing Tracinda offer, touts low valuation (2:44 pm ET)
NEW YORK (MarketWatch) -- Tesoro Corp. (TSO: news, chart, profile) on Friday said it'll review an offer by Tracinda Corp. to increase its stake in the company to 16% at a price of $64 a share, and make a recommendation to shareholders within 10 days after it's filed. "We believe the offer by Tracinda acknowledges our successful strategy to create shareholder value as well as the relatively lower valuation of our stock compared to others in our industry," Tesoro said.
Countrywide says secondary mortgage market stabilizing(1:36 pm ET)
BOSTON (MarketWatch) -- Executives at mortgage lender Countrywide Financial Corp. (CFC: news, chart, profile) on Friday said they see signs the secondary mortgage markets are stabilizing. "The current market for non-agency securities is improving, at least as it relates to securities backed by newer production, where the market has really bifurcated between older and newly issued securities," said Chief Operating Officer David Sambol during a conference call. However, securities packaged before the rating agencies changed their rating methodology in the third quarter are still "trading at very wide levels, if at all," he added. "But liquidity has returned and spreads have been tightening at least for [AAA-rated] securities backed by newly originated loans, and that includes both subprime as well as prime," while below-AAA-rated liquidity exists but mostly on newly-originated, better-documented prime mortgages, he said. "As a result of this market improvement we are now anticipating that we will securitize most of our non-agency inventory that we held at the end of the third quarter and begin selling, at least the AAA securities, as early as the coming months, ahead of where we previously suggested our plan was, which was the first quarter of 2008," Sambol said.
Countrywide COO says lender has 'ample' liquidity(12:53 pm ET)
BOSTON (MarketWatch) -- Countrywide Financial Corp. (CFC: news, chart, profile) has sufficient capital, liquidity and financing capacity to fund its operating and growth needs, the mortgage lender's chief operating officer said Friday. "The company has ample and growing liquidity," said Countrywide COO David Sambol during a conference call. "Importantly, we no longer have or plan to have any reliance on the commercial paper markets for funding." Since August, the company has arranged for about $18 billion of additional secured borrowing capacity, he added.
Energy rises on Tracinda bid, oil prices(9:50 am ET)
NEW YORK (MarketWatch) -- Energy stocks rose along with the overall market Friday as oil continued moving to new record levels. The Amex Oil Index (XOI: news, chart, profile) rose 1.8% 1,501. The Amex Natural Gas Index (XNG: news, chart, profile) increased 1% to 555.8. Tesoro (TSO: news, chart, profile) rallied 13% to $64.77 after Tracinda Corp. offered to buy 12% of the company, or 21.9 million shares, at $64 a share. Suncor (SU: news, chart, profile) rose 10 cents to $106.24 and EnCana (ECA: news, chart, profile) rose 43 cents to $67.02 after Canada moved to increase taxes on oil sands revenue. Exxon Mobil (XOM: news, chart, profile) increased 1% to $92.58.
Brunswick Q3 earnings 2 cents per share vs 39 cents(9:25 am ET)
NEW YORK (MarketWatch) -- Brunswick Corp. (BC: news, chart, profile) said Friday its third-quarter profit totaled $1.9 million, or 2 cents per share, from $36.5 million, or 39 cents per share, in the same quarter a year before. Excluding items, earnings from continuing operations were 16 cents a share, down from the year-ago's 48 cents. Analysts polled Thomson Financial had expected earnings of 12 cents per share. The Lake Forest, Ill., company reported net sales for the quarter at $1.33 billion compared with $1.34 billion a year previously. The company -- which makes boating motors and products, pool and bowling equipment and fitness machines -- reaffirmed its 2007 forecast at $1.20 to $1.30 per share.
Horizon reports third-quarter results, reaffirms outlook(9:11 am ET)
NEW YORK (MarketWatch) -- Horizon Lines Inc. (HRZ: news, chart, profile) said Friday its third-quarter profit fell to $1.57 million, or 5 cents a share, compared with $52.9 million, or $1.57 a share, in the same quarter a year before. Adjusted net earnings were 61 cents per share, up a penny from the year-earlier quarter. On average, analysts polled by Thomson Financial expected earnings of 63 cents a share. The Charlotte, N.C.-based shipping company said its quarterly operating revenue was $321.1 million compared to the year-earlier $304.7 million. It also reaffirmed guidance for full-year earnings of $1.56 to $1.68 a share and forecast fourth-quarter earnings of 53 to 65 cents a share.
Exelon Corp. swings to a gain(8:57 am ET)
NEW YORK (MarketWatch) -- Exelon Corp. (EXC: news, chart, profile) on Friday said third-quarter consolidated earnings rose to $780 million, or $1.15 a share, from a loss of $44 million, or 7 cents a share, in the year-ago period. Adjusted non-GAAP earnings increased to $823 million, or $1.21 a share from $690 million, or $1.02 a share in the year-ago period. Operating revenue rose to $5.03 billion from $4.4 billion. Analysts surveyed by Thomson Financial forecast earnings of $1.21 a share and revenue of $5.12 billion, on average. The Chicago-based utility giant said it's confident it'll hit its full-year operating earnings target of $4.15 to $4.30 a share. Exelon increased it 2007 target for GAAP earnings to $3.90 to $4.20 a share, up from its previous view of $3.70 to $4 a share.
Shoe retailer DSW cuts profit and sales forecast(8:29 am ET)
NEW YORK (MarketWatch) - DSW Inc. (DSW: news, chart, profile) on Friday said it expects its profit for the year to be at least 10% below last year's earnings of $1.48 a share, down from the shoe retailer's previously announced target of $1.63 to $1.68 a share. The Columbus, Ohio-based company said it now expects a mid-single-digit decline in same-store sales for the third quarter ending Nov. 3. As a result, annual same-store store sales are now estimated to be in the range of flat to down 2%, below the prior of flat to up 3%. DSW said it is maintaining its plans to open at least 35 new DSW stores during the year and remains committed to making investments in future growth initiatives throughout the balance of the fiscal year. Analysts, on average, expect it to earn $1.54 a share for the year, according to Thomson Financial.
Countrywide swings to third-quarter loss of $1.2 billion (8:25 am ET)
NEW YORK (MarketWatch) -- Countrywide Financial Corp. (CFC: news, chart, profile) swung to a third-quarter loss of $1.2 billion, or $2.85 a share, from a year earlier profit of $648 million, or $1.03 a share, hurt by a $1.31 billion loss in its mortgage banking unit. Excluding the impact of a below-market strike price of the convertible preferred stock issued in third quarter, the company posted a loss of $2.12 a share. A Thomson Financial survey of analysts, on average, projected a loss of $1.28 a share for the quarter. Analysts' estimates usually exclude items. The Calabasas, Calif., mortgage banking company's said its banking unit posted a $407 million loss and its capital markets division swung to $344 million loss. In addition, the company's loss from the sales of loans and securities tumbled to $718.6 million from year-ago revenue of $1.37 billion. Countrywide's provision for loan losses was $784 million, up from $28 million. The company said it views the third quarter as an "earnings trough" and anticipates it will be profitable in the fourth quarter and in 2008. Countrywide said the prospects for the U.S. housing and mortgage markets and for the company "remain very attractive." Countrywide expects fourth-quarter earnings of 25 cents to 75 cents a share. Wall Street is looking for earnings of 21 cents a share for the quarter. On Thursday, Countrywide shares closed down 76 cents, or 5.5% to $13.07.
Lubrizol Corp. Q3 net income up 44%(7:44 am ET)
NEW YORK (MarketWatch) -- Lubrizol Corp. (LZ: news, chart, profile) on Friday said third-quarter earnings for the three months ended Sept. 30 rose 44% to $71.4 million, or $1.02 a share, from $49.6 million, or 72 cents a share in the year-ago period. Adjusted earnings rose to $1.04 a share from 75 cents a share. Revenue rose 9% to $1.12 billion. Analysts surveyed by Thomson Financial forecast earnings of 94 cents a share on revenue of $1.1 billion, on average. Excluding the restructuring and impairment charges from the respective years, the Cleveland-based specialty chemical firm projects 2007 adjusted earnings in the range of $3.85 to $3.90 a share, or approximately 26.5% higher compared to 2006 adjusted earnings from continuing operations of $3.06 a share.
Idexx reports rise in third-quarter income, sets split(7:37 am ET)
NEW YORK (MarketWatch) -- Animal health diagnostic test maker Idexx Laboratories Inc. (IDXX: news, chart, profile) said Friday that its third-quarter net income rose to $25.8 million, or 81 cents a share, compared to $25.0 million, or 76 cents a share, a year earlier. Quarterly revenue increased to $229.4 million from $187.4 million. On average, analysts surveyed by Thomson Financial expected earnings of 79 cents a share. The company also announced a two-for-one stock split, planning to distribute the additional shares on or about Nov. 26. The company forecast 2007 earnings of $2.88 to $2.91 on a pre-split basis, or $1.44 to $1.46 on a post-split basis. For 2008, it expects earnings of $3.63 to $3.73 on a pre-split basis, or $1.82 to $1.87 on a post-split basis.
Coventry Health profit and revenue rise(7:29 am ET)
NEW YORK (MarketWatch) - Coventry Health Care Inc. (CVH: news, chart, profile) on Friday said third-quarter net income rose to $168.7 million, or $1.08 a share, from $147.5 million, or 92 cents a share, in the year-ago period. Total operating revenue rose to $2.52 billion from $1.9 billion. Analysts, on average, expected it to earn $1.08 a share on revenue of $2.51 billion, according to Thomson Financial. The managed healthcare company said it is expecting earnings per share of $1.17 to $1.18 for the fourth quarter and total revenue of $2.65 billion to $2.75 billion, resulting in profit for the year in a range of $3.97 to $3.98. Coventry also forecast 2008 profit in a range of $4.42 to $4.58 a share. Analysts polled by Thomson expect it to earn $1.19 a share in the fourth quarter on revenue of $2.75 billion, $4.02 a share for the year, and $4.63 a share for 2008, on average.
Power Medical Interventions IPO price below range(7:26 am ET)
NEW YORK (MarketWatch) -- Power Medical Interventions Inc. (PMII: news, chart, profile) said Friday its initial public offering of 3.85 million shares priced at $11 a share, raising $42 million. The medical device firm 0priced below its $12-$14 range for its stock market debut on the Nasdaq on Friday.
ITT Corp. net income rises 60%(7:21 am ET)
NEW YORK (MarketWatch) -- ITT Corp. (ITT: news, chart, profile) on Friday said third-quarter net income for the three months ended Sept. 30 rose by nearly $87 million to $230.1 million, or $1.25 a share, from $143.5 million, or 77 cents a share in the year-ago period. The latest period included a $64 million gain from the sale of its Switches business, which was announced in July. Operating income came in at 92 cents a share. Revenue rose to $2.18 billion from $2 billion. Analysts surveyed by Thomson Financial forecast earnings of 90 cents a share and revenue of $2.16 billion, on average. The conglomerate said it expects 2007 earnings of $3.50-43.53 a share.
Conference organizer Viad's net drops 64% on show rotation(6:15 am ET)
LONDON (MarketWatch) -- Viad Corp. (VVI: news, chart, profile) said third-quarter net income dropped 64% to $8.54 million, or 41 cents a share, while revenue slipped 1% to $228.8 million, with the company attributing negative show rotation. On an adjusted basis, Viad earned 32 cents a share. Analysts polled by Thomson Financial expected earnings of 28 cents a share. For the fourth quarter, it expects a loss before items between 8 cents and 14 cents a share on revenue between $186 million and $208 million. Viad said show rotation works in its favor in 2008. (Updates to include adjusted earnings.)
Builder Standard Pacific swings to $120 million loss(5:21 am ET)
LONDON (MarketWatch) -- Standard Pacific (SPF: news, chart, profile) , the Irvine, Calif.-based home builder, late Thursday said it swung to a loss of $119.7 million, or $1.85 a share in the third quarter, after taking $223.5 million, or $2.12 a share in impairment costs on writing off inventory, joint venture and land deposits. Homebuilding revenue dropped to $675.5 million from $834.1 million, it said, and gross margins on home sales fell to 0.9% from 19.2%. New home deliveries dropped 25% and the value of its backlog dropped to $1 billion from $1.6 billion.
Arkansas Best profit drops 40% as tonnage levels drop(4:43 am ET)
LONDON (MarketWatch) -- Arkansas Best (ABFS: news, chart, profile) said third-quarter net income dropped 40% to $18.9 million, or 75 cents a share, with revenue down 5% to $479.8 million. The freight transportation firm said it was hurt by lower tonnage levels and higher costs, among other factors. Analysts polled by Thomson Financial had expected earnings of 88 cents a share.
Baker Hughes profit up 9%, meets forecast(4:38 am ET)
LONDON (MarketWatch) -- Baker Hughes (BHI: news, chart, profile) said third-quarter net income rose 9% to $389.1 million, or $1.22 a share, with revenue up 16% to $2.68 billion. The oil services firm said it was helped by strong international activity and a seasonal recovery in Canadian driling. The earnings met Thomson Financial-compiled analyst estimates.
Volkswagen 9-month profit surges; sales rise 5%(4:29 am ET)
LONDON (MarketWatch) -- German carmaker Volkwagen AG (DE:766400: news, chart, profile) on Friday said nine-month profit surged to 2.91 billion euros from 1.21 billion euros a year earlier. Operating profit excluding special items improved 47% to 4.28 billion euros. Sales rose 5.1% to 81 billion euros. The carmaker said it sees higher sales in 2007 and expects to post a pretax profit for the year of at least 5.1 billion euros even as it noted a fall in passenger car registrations in Spain and Germany. It said passenger car sales will also be lower in North America but noted that Chinese and South American markets will continue to record high growth rates.
Nissan 2Q net drops 26.8%, keeps 2007 profit forecast(3:09 am ET)
HONG KONG (MarketWatch) -- Japanese auto major Nissan Motor Co. (JP:7201: news, chart, profile) Friday said its second quarter net profit dropped 26.8% from a year ago due to higher taxes, although the company sold 6.6% more vehicles during the period. Net income dropped to 120.1 billion yen ($1.05 billion), although operating profit expanded 12% to 218.7 billiion yen, it said. Nissan said it sold 941,000 vehicles worldwide during the quarter. Nissan said its full year forecast of 800 billion yen in operating profit and 480 billion yen in net income remains unchanged. Its shares closed 3.2% in Tokyo before the earnings report was made public.
Software AG profit up 12% as license revenue climbs 62%(2:47 am ET)
LONDON (MarketWatch) -- German business software group Software AG (DE:330400: news, chart, profile) said third-quarter net income rose 12% to 19.2 million euros from 17.1 million euros, with revenue rising to 157.8 million euros from 113.8 million euros. Analysts polled by Thomson Financial had expected a profit of 18.6 million euros on revenue of 168 million euors. License revenue grew 62% during the quarter, it said. For 2008, the company plans to raise its operating revenue by 22% to 25% net of currency effects, and its EBIT margin to around 23% from 22.9% over the first nine months of the year.
Thursday, Oct. 25
Japan's Nova Corp. files for bankruptcy protection(11:34 pm ET)
HONG KONG (MarketWatch) -- Osaka-based Nova Corp. (JP:4655: news, chart, profile) , Japan's largest language school chain, filed for court protection from creditors under the Corporate Rehabilitation Law, according to the Nikkei News, which cited company officials Friday. The company, which provides mostly English conversation courses, reportedly had liabilities of 43.9 billion yen and will be delisted from the Jasdaq Securities Exchange on Nov. 27. Nova had a 50% market share among foreign language schools in the financial year from April 2002 to March 2003, according to a government statistics cited on Nova' s Web site. Japan's trade ministry ordered the firm to suspend some of its operations in June after it was found to have violated commercial laws amid misled customers about it services in advertisements, the Nikkei reported.
Frontier Airlines profits rise 33% on better traffic(6:57 pm ET)
SAN FRANCISCO (MarketWatch) -- Frontier Airlines, Inc. (FRNT: news, chart, profile) said late Thursday profit rose to $17.3 million, or 39 cents a share, in its fiscal second quarter ended Sept. 30, from $0.5 million, or a penny a share, in the same period last year. Sales at the Denver carrier rose 19% to $373 million. Analysts polled by Thomson Financial were anticipating earnings of 19 cents a share on sales of $178 million. Shares closed unchanged at $6.75 ahead of the report.
Allegheny Energy profit rises 4% (5:49 pm ET)
SAN FRANCISCO (MarketWatch) -- Allegheny Energy Inc. (AYE: news, chart, profile) reported late Thursday third-quarter net income rose to $115 million, or 67 cents a share, from $110.2 million, or 65 cents, a year ago. The year-ago earnings included $16.2 million in one-time gains. Revenue for the three months ended Sept. 30 rose nearly 3.7% to $846.6 million from $816.6 million. Analysts polled by Thomson Financial expected the Greensburg, Pa., power generator to post earnings of 68 cents a share on $990.8 million in revenue. Allegheny shares rose 2.9% ahead of the report to close at a record-high $58.04.
Eastman Chemical profit drops 79% on restructuring(5:45 pm ET)
SAN FRANCISCO (MarketWatch) -- Eastman Chemical Co. (EMN: news, chart, profile) said late Thursday profit in the third quarter fell to $20 million, or 24 cents a share, from $95 million, or $1.15 a share, in the year-earlier period. The Kingsport, Tenn. chemicals company said profits in the most recent quarter were dragged down by $120 million in pre-tax restructuring charges. Excluding those charges, profits rose by two cents a share to $1.26. Analysts polled by Thomson Financial were expecting $1.26 a share. Sales fell 8% to $1.81 billion, slightly under analyst forecasts of $1.89 billion. Eastman forecast fourth-quarter results will be similar to a year-ago operating profit of $1 a share; analysts forecast $1.04. Shares fell 0.2% to $64.05 ahead of the report.
Sierra Wireless quarterly net profit rises (5:16 pm ET)
SAN FRANCISCO (MarketWatch) -- Sierra Wireless Inc. (SWIR: news, chart, profile) late Thursday reported a third-quarter net profit of $9 million, or 33 cents a share, compared with $1 million, or 4 cents a share, in the year-earlier period. The Canada-based maker of mobile broadband network products and software said revenue in the quarter totaled $111.5 million, up from $52.5 million a year ago. Analysts polled by Thomson Financial had forecast 27 cents a share on revenue of $110 million. In the fourth quarter, Sierra expects net profit of 35 cents a share on revenue of $125 million. Analysts are estimating 28 cents a share on revenue of $116 million.
KLA-Tencor earnings drop 35% in first quarter(4:46 pm ET)
SAN FRANCISCO (MarketWatch) - KLA-Tencor Corp. (KLAC: news, chart, profile) reported net income of $88 million on revenue of $693 million for the quarter ended Sept. 30. compared to profit of $136 million on revenue of $629 million for the same period last year. The company's results included $91 million in charges for special items, including stock based compensation. On a GAAP basis, KLA reported earnings per share of 46 cents, compared to 67 cents in the year-ago quarter. Analysts had expected the company to report earnings per share of 77 cents on revenue of $682 million.
Genworth quarterly net rises 12%; insurer trims 2007 outlook(4:44 pm ET)
SAN FRANCISCO (MarketWatch) -- Genworth Financial (GNW: news, chart, profile) said late Thursday that third-quarter net income came in at $339 million, or 76 cents a share, up 12% from a year earlier when the insurer made $304 million, or 65 cents a share. Net operating income was $368 million, or 83 cents a share. Genworth forecast full-year net operating earnings of $3 to $3.10 a share, down from a previous estimate of $3.15 to $3.25 a share. Results from the company's U.S. mortgage insurance business fell short of Genworth's expectations, reflecting a difficult environment in the U.S. residential real estate market, Chief Executive Michael Fraizer said in a statement.
McAfee earnings double to $62.9 million(4:20 pm ET)
SAN FRANCISCO (MarketWatch) -- McAfee Inc. (MFE: news, chart, profile) on Thursday reported a preliminary third-quarter profit of $62.9 million, or 38 cents a share, on revenue of $322 million. During the same period a year ago, the security-software maker earned $30.3 million, or 19 cents a share on $288 million in sales. Excluding one-time items, McAfee would have earned $72.5 million, or 44 cents a share. Analysts surveyed by Thomson Financial had forecast McAfee to earn 40 cents a share on $320 million. McAfee said the results were preliminary because, as it previously announced, it will restate several financial statements to account for past stock-option grants and it expects to take a charge of between $100 million and $150 million as a result.
Wendy's earnings hit by charges; revenue flat(4:20 pm ET)
CHICAGO (MarketWatch) -- Wendy's International said Thursday its third quarter profit was cut by better than half, weighed down by charges and the spin-off of Tim Horton's. After the close of trading, Wendy's reported earnings of $29.9 million, or 34 cents a share, on the period - down from $69.2 million, or 58 cents, in the same quarter of 2006. On a continuing operations basis, the company said it would have earned $28.8 million, or 33 cents a share, up from $23.7 million or 20 cents. Revenue came in at $631.1 million, up 0.2%. The average estimate of analysts polled by Thomson First Call had been for the company to earn 33 cents a share on revenue of $629 million. Wendy's (WEN: news, chart, profile) added that it now expects full-year earnings per share to come in at the high end of its previously announced target range of $1.09 to $1.23.
For week ending on 10-26-07
Tesoro Corp. reviewing Tracinda offer, touts low valuation (2:44 pm ET)
NEW YORK (MarketWatch) -- Tesoro Corp. (TSO: news, chart, profile) on Friday said it'll review an offer by Tracinda Corp. to increase its stake in the company to 16% at a price of $64 a share, and make a recommendation to shareholders within 10 days after it's filed. "We believe the offer by Tracinda acknowledges our successful strategy to create shareholder value as well as the relatively lower valuation of our stock compared to others in our industry," Tesoro said.
Countrywide says secondary mortgage market stabilizing(1:36 pm ET)
BOSTON (MarketWatch) -- Executives at mortgage lender Countrywide Financial Corp. (CFC: news, chart, profile) on Friday said they see signs the secondary mortgage markets are stabilizing. "The current market for non-agency securities is improving, at least as it relates to securities backed by newer production, where the market has really bifurcated between older and newly issued securities," said Chief Operating Officer David Sambol during a conference call. However, securities packaged before the rating agencies changed their rating methodology in the third quarter are still "trading at very wide levels, if at all," he added. "But liquidity has returned and spreads have been tightening at least for [AAA-rated] securities backed by newly originated loans, and that includes both subprime as well as prime," while below-AAA-rated liquidity exists but mostly on newly-originated, better-documented prime mortgages, he said. "As a result of this market improvement we are now anticipating that we will securitize most of our non-agency inventory that we held at the end of the third quarter and begin selling, at least the AAA securities, as early as the coming months, ahead of where we previously suggested our plan was, which was the first quarter of 2008," Sambol said.
Countrywide COO says lender has 'ample' liquidity(12:53 pm ET)
BOSTON (MarketWatch) -- Countrywide Financial Corp. (CFC: news, chart, profile) has sufficient capital, liquidity and financing capacity to fund its operating and growth needs, the mortgage lender's chief operating officer said Friday. "The company has ample and growing liquidity," said Countrywide COO David Sambol during a conference call. "Importantly, we no longer have or plan to have any reliance on the commercial paper markets for funding." Since August, the company has arranged for about $18 billion of additional secured borrowing capacity, he added.
Energy rises on Tracinda bid, oil prices(9:50 am ET)
NEW YORK (MarketWatch) -- Energy stocks rose along with the overall market Friday as oil continued moving to new record levels. The Amex Oil Index (XOI: news, chart, profile) rose 1.8% 1,501. The Amex Natural Gas Index (XNG: news, chart, profile) increased 1% to 555.8. Tesoro (TSO: news, chart, profile) rallied 13% to $64.77 after Tracinda Corp. offered to buy 12% of the company, or 21.9 million shares, at $64 a share. Suncor (SU: news, chart, profile) rose 10 cents to $106.24 and EnCana (ECA: news, chart, profile) rose 43 cents to $67.02 after Canada moved to increase taxes on oil sands revenue. Exxon Mobil (XOM: news, chart, profile) increased 1% to $92.58.
Brunswick Q3 earnings 2 cents per share vs 39 cents(9:25 am ET)
NEW YORK (MarketWatch) -- Brunswick Corp. (BC: news, chart, profile) said Friday its third-quarter profit totaled $1.9 million, or 2 cents per share, from $36.5 million, or 39 cents per share, in the same quarter a year before. Excluding items, earnings from continuing operations were 16 cents a share, down from the year-ago's 48 cents. Analysts polled Thomson Financial had expected earnings of 12 cents per share. The Lake Forest, Ill., company reported net sales for the quarter at $1.33 billion compared with $1.34 billion a year previously. The company -- which makes boating motors and products, pool and bowling equipment and fitness machines -- reaffirmed its 2007 forecast at $1.20 to $1.30 per share.
Horizon reports third-quarter results, reaffirms outlook(9:11 am ET)
NEW YORK (MarketWatch) -- Horizon Lines Inc. (HRZ: news, chart, profile) said Friday its third-quarter profit fell to $1.57 million, or 5 cents a share, compared with $52.9 million, or $1.57 a share, in the same quarter a year before. Adjusted net earnings were 61 cents per share, up a penny from the year-earlier quarter. On average, analysts polled by Thomson Financial expected earnings of 63 cents a share. The Charlotte, N.C.-based shipping company said its quarterly operating revenue was $321.1 million compared to the year-earlier $304.7 million. It also reaffirmed guidance for full-year earnings of $1.56 to $1.68 a share and forecast fourth-quarter earnings of 53 to 65 cents a share.
Exelon Corp. swings to a gain(8:57 am ET)
NEW YORK (MarketWatch) -- Exelon Corp. (EXC: news, chart, profile) on Friday said third-quarter consolidated earnings rose to $780 million, or $1.15 a share, from a loss of $44 million, or 7 cents a share, in the year-ago period. Adjusted non-GAAP earnings increased to $823 million, or $1.21 a share from $690 million, or $1.02 a share in the year-ago period. Operating revenue rose to $5.03 billion from $4.4 billion. Analysts surveyed by Thomson Financial forecast earnings of $1.21 a share and revenue of $5.12 billion, on average. The Chicago-based utility giant said it's confident it'll hit its full-year operating earnings target of $4.15 to $4.30 a share. Exelon increased it 2007 target for GAAP earnings to $3.90 to $4.20 a share, up from its previous view of $3.70 to $4 a share.
Shoe retailer DSW cuts profit and sales forecast(8:29 am ET)
NEW YORK (MarketWatch) - DSW Inc. (DSW: news, chart, profile) on Friday said it expects its profit for the year to be at least 10% below last year's earnings of $1.48 a share, down from the shoe retailer's previously announced target of $1.63 to $1.68 a share. The Columbus, Ohio-based company said it now expects a mid-single-digit decline in same-store sales for the third quarter ending Nov. 3. As a result, annual same-store store sales are now estimated to be in the range of flat to down 2%, below the prior of flat to up 3%. DSW said it is maintaining its plans to open at least 35 new DSW stores during the year and remains committed to making investments in future growth initiatives throughout the balance of the fiscal year. Analysts, on average, expect it to earn $1.54 a share for the year, according to Thomson Financial.
Countrywide swings to third-quarter loss of $1.2 billion (8:25 am ET)
NEW YORK (MarketWatch) -- Countrywide Financial Corp. (CFC: news, chart, profile) swung to a third-quarter loss of $1.2 billion, or $2.85 a share, from a year earlier profit of $648 million, or $1.03 a share, hurt by a $1.31 billion loss in its mortgage banking unit. Excluding the impact of a below-market strike price of the convertible preferred stock issued in third quarter, the company posted a loss of $2.12 a share. A Thomson Financial survey of analysts, on average, projected a loss of $1.28 a share for the quarter. Analysts' estimates usually exclude items. The Calabasas, Calif., mortgage banking company's said its banking unit posted a $407 million loss and its capital markets division swung to $344 million loss. In addition, the company's loss from the sales of loans and securities tumbled to $718.6 million from year-ago revenue of $1.37 billion. Countrywide's provision for loan losses was $784 million, up from $28 million. The company said it views the third quarter as an "earnings trough" and anticipates it will be profitable in the fourth quarter and in 2008. Countrywide said the prospects for the U.S. housing and mortgage markets and for the company "remain very attractive." Countrywide expects fourth-quarter earnings of 25 cents to 75 cents a share. Wall Street is looking for earnings of 21 cents a share for the quarter. On Thursday, Countrywide shares closed down 76 cents, or 5.5% to $13.07.
Lubrizol Corp. Q3 net income up 44%(7:44 am ET)
NEW YORK (MarketWatch) -- Lubrizol Corp. (LZ: news, chart, profile) on Friday said third-quarter earnings for the three months ended Sept. 30 rose 44% to $71.4 million, or $1.02 a share, from $49.6 million, or 72 cents a share in the year-ago period. Adjusted earnings rose to $1.04 a share from 75 cents a share. Revenue rose 9% to $1.12 billion. Analysts surveyed by Thomson Financial forecast earnings of 94 cents a share on revenue of $1.1 billion, on average. Excluding the restructuring and impairment charges from the respective years, the Cleveland-based specialty chemical firm projects 2007 adjusted earnings in the range of $3.85 to $3.90 a share, or approximately 26.5% higher compared to 2006 adjusted earnings from continuing operations of $3.06 a share.
Idexx reports rise in third-quarter income, sets split(7:37 am ET)
NEW YORK (MarketWatch) -- Animal health diagnostic test maker Idexx Laboratories Inc. (IDXX: news, chart, profile) said Friday that its third-quarter net income rose to $25.8 million, or 81 cents a share, compared to $25.0 million, or 76 cents a share, a year earlier. Quarterly revenue increased to $229.4 million from $187.4 million. On average, analysts surveyed by Thomson Financial expected earnings of 79 cents a share. The company also announced a two-for-one stock split, planning to distribute the additional shares on or about Nov. 26. The company forecast 2007 earnings of $2.88 to $2.91 on a pre-split basis, or $1.44 to $1.46 on a post-split basis. For 2008, it expects earnings of $3.63 to $3.73 on a pre-split basis, or $1.82 to $1.87 on a post-split basis.
Coventry Health profit and revenue rise(7:29 am ET)
NEW YORK (MarketWatch) - Coventry Health Care Inc. (CVH: news, chart, profile) on Friday said third-quarter net income rose to $168.7 million, or $1.08 a share, from $147.5 million, or 92 cents a share, in the year-ago period. Total operating revenue rose to $2.52 billion from $1.9 billion. Analysts, on average, expected it to earn $1.08 a share on revenue of $2.51 billion, according to Thomson Financial. The managed healthcare company said it is expecting earnings per share of $1.17 to $1.18 for the fourth quarter and total revenue of $2.65 billion to $2.75 billion, resulting in profit for the year in a range of $3.97 to $3.98. Coventry also forecast 2008 profit in a range of $4.42 to $4.58 a share. Analysts polled by Thomson expect it to earn $1.19 a share in the fourth quarter on revenue of $2.75 billion, $4.02 a share for the year, and $4.63 a share for 2008, on average.
Power Medical Interventions IPO price below range(7:26 am ET)
NEW YORK (MarketWatch) -- Power Medical Interventions Inc. (PMII: news, chart, profile) said Friday its initial public offering of 3.85 million shares priced at $11 a share, raising $42 million. The medical device firm 0priced below its $12-$14 range for its stock market debut on the Nasdaq on Friday.
ITT Corp. net income rises 60%(7:21 am ET)
NEW YORK (MarketWatch) -- ITT Corp. (ITT: news, chart, profile) on Friday said third-quarter net income for the three months ended Sept. 30 rose by nearly $87 million to $230.1 million, or $1.25 a share, from $143.5 million, or 77 cents a share in the year-ago period. The latest period included a $64 million gain from the sale of its Switches business, which was announced in July. Operating income came in at 92 cents a share. Revenue rose to $2.18 billion from $2 billion. Analysts surveyed by Thomson Financial forecast earnings of 90 cents a share and revenue of $2.16 billion, on average. The conglomerate said it expects 2007 earnings of $3.50-43.53 a share.
Conference organizer Viad's net drops 64% on show rotation(6:15 am ET)
LONDON (MarketWatch) -- Viad Corp. (VVI: news, chart, profile) said third-quarter net income dropped 64% to $8.54 million, or 41 cents a share, while revenue slipped 1% to $228.8 million, with the company attributing negative show rotation. On an adjusted basis, Viad earned 32 cents a share. Analysts polled by Thomson Financial expected earnings of 28 cents a share. For the fourth quarter, it expects a loss before items between 8 cents and 14 cents a share on revenue between $186 million and $208 million. Viad said show rotation works in its favor in 2008. (Updates to include adjusted earnings.)
Builder Standard Pacific swings to $120 million loss(5:21 am ET)
LONDON (MarketWatch) -- Standard Pacific (SPF: news, chart, profile) , the Irvine, Calif.-based home builder, late Thursday said it swung to a loss of $119.7 million, or $1.85 a share in the third quarter, after taking $223.5 million, or $2.12 a share in impairment costs on writing off inventory, joint venture and land deposits. Homebuilding revenue dropped to $675.5 million from $834.1 million, it said, and gross margins on home sales fell to 0.9% from 19.2%. New home deliveries dropped 25% and the value of its backlog dropped to $1 billion from $1.6 billion.
Arkansas Best profit drops 40% as tonnage levels drop(4:43 am ET)
LONDON (MarketWatch) -- Arkansas Best (ABFS: news, chart, profile) said third-quarter net income dropped 40% to $18.9 million, or 75 cents a share, with revenue down 5% to $479.8 million. The freight transportation firm said it was hurt by lower tonnage levels and higher costs, among other factors. Analysts polled by Thomson Financial had expected earnings of 88 cents a share.
Baker Hughes profit up 9%, meets forecast(4:38 am ET)
LONDON (MarketWatch) -- Baker Hughes (BHI: news, chart, profile) said third-quarter net income rose 9% to $389.1 million, or $1.22 a share, with revenue up 16% to $2.68 billion. The oil services firm said it was helped by strong international activity and a seasonal recovery in Canadian driling. The earnings met Thomson Financial-compiled analyst estimates.
Volkswagen 9-month profit surges; sales rise 5%(4:29 am ET)
LONDON (MarketWatch) -- German carmaker Volkwagen AG (DE:766400: news, chart, profile) on Friday said nine-month profit surged to 2.91 billion euros from 1.21 billion euros a year earlier. Operating profit excluding special items improved 47% to 4.28 billion euros. Sales rose 5.1% to 81 billion euros. The carmaker said it sees higher sales in 2007 and expects to post a pretax profit for the year of at least 5.1 billion euros even as it noted a fall in passenger car registrations in Spain and Germany. It said passenger car sales will also be lower in North America but noted that Chinese and South American markets will continue to record high growth rates.
Nissan 2Q net drops 26.8%, keeps 2007 profit forecast(3:09 am ET)
HONG KONG (MarketWatch) -- Japanese auto major Nissan Motor Co. (JP:7201: news, chart, profile) Friday said its second quarter net profit dropped 26.8% from a year ago due to higher taxes, although the company sold 6.6% more vehicles during the period. Net income dropped to 120.1 billion yen ($1.05 billion), although operating profit expanded 12% to 218.7 billiion yen, it said. Nissan said it sold 941,000 vehicles worldwide during the quarter. Nissan said its full year forecast of 800 billion yen in operating profit and 480 billion yen in net income remains unchanged. Its shares closed 3.2% in Tokyo before the earnings report was made public.
Software AG profit up 12% as license revenue climbs 62%(2:47 am ET)
LONDON (MarketWatch) -- German business software group Software AG (DE:330400: news, chart, profile) said third-quarter net income rose 12% to 19.2 million euros from 17.1 million euros, with revenue rising to 157.8 million euros from 113.8 million euros. Analysts polled by Thomson Financial had expected a profit of 18.6 million euros on revenue of 168 million euors. License revenue grew 62% during the quarter, it said. For 2008, the company plans to raise its operating revenue by 22% to 25% net of currency effects, and its EBIT margin to around 23% from 22.9% over the first nine months of the year.
Thursday, Oct. 25
Japan's Nova Corp. files for bankruptcy protection(11:34 pm ET)
HONG KONG (MarketWatch) -- Osaka-based Nova Corp. (JP:4655: news, chart, profile) , Japan's largest language school chain, filed for court protection from creditors under the Corporate Rehabilitation Law, according to the Nikkei News, which cited company officials Friday. The company, which provides mostly English conversation courses, reportedly had liabilities of 43.9 billion yen and will be delisted from the Jasdaq Securities Exchange on Nov. 27. Nova had a 50% market share among foreign language schools in the financial year from April 2002 to March 2003, according to a government statistics cited on Nova' s Web site. Japan's trade ministry ordered the firm to suspend some of its operations in June after it was found to have violated commercial laws amid misled customers about it services in advertisements, the Nikkei reported.
Frontier Airlines profits rise 33% on better traffic(6:57 pm ET)
SAN FRANCISCO (MarketWatch) -- Frontier Airlines, Inc. (FRNT: news, chart, profile) said late Thursday profit rose to $17.3 million, or 39 cents a share, in its fiscal second quarter ended Sept. 30, from $0.5 million, or a penny a share, in the same period last year. Sales at the Denver carrier rose 19% to $373 million. Analysts polled by Thomson Financial were anticipating earnings of 19 cents a share on sales of $178 million. Shares closed unchanged at $6.75 ahead of the report.
Allegheny Energy profit rises 4% (5:49 pm ET)
SAN FRANCISCO (MarketWatch) -- Allegheny Energy Inc. (AYE: news, chart, profile) reported late Thursday third-quarter net income rose to $115 million, or 67 cents a share, from $110.2 million, or 65 cents, a year ago. The year-ago earnings included $16.2 million in one-time gains. Revenue for the three months ended Sept. 30 rose nearly 3.7% to $846.6 million from $816.6 million. Analysts polled by Thomson Financial expected the Greensburg, Pa., power generator to post earnings of 68 cents a share on $990.8 million in revenue. Allegheny shares rose 2.9% ahead of the report to close at a record-high $58.04.
Eastman Chemical profit drops 79% on restructuring(5:45 pm ET)
SAN FRANCISCO (MarketWatch) -- Eastman Chemical Co. (EMN: news, chart, profile) said late Thursday profit in the third quarter fell to $20 million, or 24 cents a share, from $95 million, or $1.15 a share, in the year-earlier period. The Kingsport, Tenn. chemicals company said profits in the most recent quarter were dragged down by $120 million in pre-tax restructuring charges. Excluding those charges, profits rose by two cents a share to $1.26. Analysts polled by Thomson Financial were expecting $1.26 a share. Sales fell 8% to $1.81 billion, slightly under analyst forecasts of $1.89 billion. Eastman forecast fourth-quarter results will be similar to a year-ago operating profit of $1 a share; analysts forecast $1.04. Shares fell 0.2% to $64.05 ahead of the report.
Sierra Wireless quarterly net profit rises (5:16 pm ET)
SAN FRANCISCO (MarketWatch) -- Sierra Wireless Inc. (SWIR: news, chart, profile) late Thursday reported a third-quarter net profit of $9 million, or 33 cents a share, compared with $1 million, or 4 cents a share, in the year-earlier period. The Canada-based maker of mobile broadband network products and software said revenue in the quarter totaled $111.5 million, up from $52.5 million a year ago. Analysts polled by Thomson Financial had forecast 27 cents a share on revenue of $110 million. In the fourth quarter, Sierra expects net profit of 35 cents a share on revenue of $125 million. Analysts are estimating 28 cents a share on revenue of $116 million.
KLA-Tencor earnings drop 35% in first quarter(4:46 pm ET)
SAN FRANCISCO (MarketWatch) - KLA-Tencor Corp. (KLAC: news, chart, profile) reported net income of $88 million on revenue of $693 million for the quarter ended Sept. 30. compared to profit of $136 million on revenue of $629 million for the same period last year. The company's results included $91 million in charges for special items, including stock based compensation. On a GAAP basis, KLA reported earnings per share of 46 cents, compared to 67 cents in the year-ago quarter. Analysts had expected the company to report earnings per share of 77 cents on revenue of $682 million.
Genworth quarterly net rises 12%; insurer trims 2007 outlook(4:44 pm ET)
SAN FRANCISCO (MarketWatch) -- Genworth Financial (GNW: news, chart, profile) said late Thursday that third-quarter net income came in at $339 million, or 76 cents a share, up 12% from a year earlier when the insurer made $304 million, or 65 cents a share. Net operating income was $368 million, or 83 cents a share. Genworth forecast full-year net operating earnings of $3 to $3.10 a share, down from a previous estimate of $3.15 to $3.25 a share. Results from the company's U.S. mortgage insurance business fell short of Genworth's expectations, reflecting a difficult environment in the U.S. residential real estate market, Chief Executive Michael Fraizer said in a statement.
McAfee earnings double to $62.9 million(4:20 pm ET)
SAN FRANCISCO (MarketWatch) -- McAfee Inc. (MFE: news, chart, profile) on Thursday reported a preliminary third-quarter profit of $62.9 million, or 38 cents a share, on revenue of $322 million. During the same period a year ago, the security-software maker earned $30.3 million, or 19 cents a share on $288 million in sales. Excluding one-time items, McAfee would have earned $72.5 million, or 44 cents a share. Analysts surveyed by Thomson Financial had forecast McAfee to earn 40 cents a share on $320 million. McAfee said the results were preliminary because, as it previously announced, it will restate several financial statements to account for past stock-option grants and it expects to take a charge of between $100 million and $150 million as a result.
Wendy's earnings hit by charges; revenue flat(4:20 pm ET)
CHICAGO (MarketWatch) -- Wendy's International said Thursday its third quarter profit was cut by better than half, weighed down by charges and the spin-off of Tim Horton's. After the close of trading, Wendy's reported earnings of $29.9 million, or 34 cents a share, on the period - down from $69.2 million, or 58 cents, in the same quarter of 2006. On a continuing operations basis, the company said it would have earned $28.8 million, or 33 cents a share, up from $23.7 million or 20 cents. Revenue came in at $631.1 million, up 0.2%. The average estimate of analysts polled by Thomson First Call had been for the company to earn 33 cents a share on revenue of $629 million. Wendy's (WEN: news, chart, profile) added that it now expects full-year earnings per share to come in at the high end of its previously announced target range of $1.09 to $1.23.
For week ending on 10-26-07
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