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Tuesday, Oct. 30
McKesson profits climb 8%, beat analyst views(4:56 pm ET)
LOS ANGELES (MarketWatch) -- McKesson Corp. (MCK: news, chart, profile) reported net income of $247 million, or 83 cents a share, for the second quarter ended Sept. 30, up 8% compared with $229 million, or 75 cents a share, for the same period a year ago. Revenue for the San Francisco-based drug distributor was $24.5 billion vs. last year's $22.4 billion. The company said earnings from continuing operations amounted to 82 cents a share, compared with 66 cents a year ago. Analysts polled by Thomson Financial had expected earnings of 72 cents a share on sales of $24.1 billion. Shares ended trading up 56 cents, or 1%, to $58.55.
Dell restatements to cut $92 mln from four years of earnings(4:36 pm ET)
SAN FRANCISCO (MarketWatch) -- Dell Inc. (DELL: news, chart, profile) said Tuesday that its previously announced financial restatements would cut its earnings by $92 million, and its earnings-per-share by 3 cents for the combined period of its 2003, 2004, 2005 and 2006 fiscal years, and the first quarter of its 2007 fiscal year. Bob Pearson, a Dell spokesman, said the company had originally earned about $12 billion, or $4.78 a share, during the restatement periods. Pearson said Dell intends to restart its share buyback program shortly after it reports its third-quarter results on Nov. 29. Dell shares rose 33 cents to close Tuesday at $29.80.
Lincoln Financial quarterly net falls 9%(4:36 pm ET)
SAN FRANCISCO (MarketWatch) -- Lincoln Financial Group (LNC: news, chart, profile) said late Tuesday that third-quarter net income came in at $329.6 million, or $1.21 a share, down 9% from a year earlier when the annuity and life insurance company made $364.1 million, or $1.29 a share. Income from operations for the third quarter was $352.9 million, or $1.29 a share. Lincoln was expected to make $1.37 a share, according to 17 analysts in a Thomson Financial poll. Analysts usually exlude one-time items from their estimates. Consolidated domestic deposits, which include products such as individual annuities, mutual funds, life insurance and institutional investment offerings, stood at $10.9 billion at the end of the quarter, up 28% from a year ago, Lincoln reported.
Macau opening boosts Wynn profit, revenue(4:34 pm ET)
CHICAGO (MarketWatch) -- A full quarter of operations at its Macau property boosted Wynn Resorts' third-quarter bottom line with the casino operator turning to a hefty adjusted profit. After the close of trading Tuesday, Wynn said it earned $44.7 million, or 41 cents a share. While that is down sharply from the $715.7 million, or $6.43 a share it earned in the third quarter of 2006, the prior year numbers included a $779 million benefit from the sale of a subconcession in Macau. Knocking out that, along with various other charges and gains, the company would have earned $73.4 million, or 67 cents a share - vs. a loss of $1.3 million, or a penny a share. Revenue at the gambling company came in at $653.4 million, up from $318.1 million largely on the back of the September 2006 opening in Macau. The average estimate of analysts polled by Thomson Financial had been for Wynn (WYNN: news, chart, profile) to earn 63 cents a share on $637 million in revenue.
'Shrek the Third' drives DreamWorks profit higher(4:30 pm ET)
CHICAGO (MarketWatch) -- DreamWorks Animation Studios (DWA: news, chart, profile) said Tuesday that its third-quarter profit grew more than four-fold on proceeds from the hit sequel "Shrek the Third." The company said net income was $47 million, or 47 cents a share, compared with a profit of $10.5 million, or 10 cents a share, in the prior year. Revenue rose to $160.8 million from $55.6 million. Analysts polled by Thomson Financial were expecting a profit of 44 cents a share on revenue of $165.6 million. DreamWorks Animation reiterated its projection that fourth-quarter revenue will be primarily driven by the home video performance of "Shrek the Third," which will be released on DVD in the U.S. November 13.
Profit, sales climb at Chipotle(4:27 pm ET)
SAN FRANCISCO (MarketWatch) -- Chipotle Mexican Grills Inc. (CMG: news, chart, profile) late Tuesday reported its third-quarter profit rose more than 74%, helped by increased visits at its restaurants open at least one year. Chipotle said it earned $20.6 million, or 62 cents a share, up from $11.8 million, or 36 cents a share, in last year's same quarter. Revenue for the three months ended Sept. 30 increased 35.6% to $286.4 million. Chipotle said comparable restaurant sales rose 12.4% amid increased customer visits. The fast-food operator said it now expects comparable restaurant sales to increase in the "low double-digit range" on an annual basis this year. For 2008, Chipotle forecast comparable restaurant sales to rise in the "low to mid single-digit" range.
RealNetworks sees revenue jump in third quarter(4:16 pm ET)
SAN FRANCISCO (MarketWatch) -- RealNetworks Inc. saw third-quarter earnings fall sharply from last year, when the bottom line was skewed by a large settlement payment from Microsoft. The digital music and video game company (RNWK: news, chart, profile) reported earnings of $4.3 million, or 3 cents a share, for the third quarter compared to earnings of $42.2 million, or 26 cents a share, for the same period last year. Excluding the effects of the Microsoft settlement and charges related to stock options, the company said adjusted net income grew to $9.2 million from $9 million last year. Revenue jumped 55% to $145.1 million. Analysts were expecting a loss of 1 cent a share on revenue of $143.4 million, according to estimates from Thomson Financial.
B/E Aerospace profit rises, hikes full-year forecast(10:36 am ET)
NEW YORK (MarketWatch) -- B/E Aerospace Inc. (BEAV: news, chart, profile) , the Wellington, Fla., maker of products for aircraft cabin interiors, reported third-quarter earnings rose to $44.5 million, or 48 cents a share, from $31.4 million, or 40 cents, in the year-earlier period. Revenue increased to $428.2 million from $287.9 million. A survey of analysts by Thomson Financial produced consensus estimates of 41 cents a share in profit on $400 million of revenue. Backlog at Sept. 30 was $2.0 billion. B/E Aerospace also added 12 cents to its earnings-per-share estimate for the year, bringing it to $1.69, excluding debt prepayment costs.
Vornado's funds from operations rise in third quarter(10:15 am ET)
NEW YORK (MarketWatch) -- Vornado Realty Trust (VNO: news, chart, profile) said Tuesday that third-quarter funds from operations rose to $1.35 a share from $1.31 a share in the year-ago period. Analysts surveyed by Thomson Financial expected the real estate investment trust to post funds from operations of $1.35 a share, on average. Net income came in at $116.5 million, or 74 cents a share.
Bemis third-quarter income falls(10:06 am ET)
NEW YORK (MarketWatch) -- Bemis Co. (BMS: news, chart, profile) on Tuesday reported third-quarter net income of $41 million, or 40 cents a share, compared with $47.9 million, or 45 cents a share, in the third quarter of 2006. The Neenah, Wis., maker of flexible packaging reported sales for the period ended Sept. 30 of $905.7 million, up from $903.3 million a year earlier. The company's shares closed Monday at $28.
Energy stocks fall back along with oil prices(9:55 am ET)
NEW YORK (MarketWatch) -- Energy stocks retreated along with the overall market as oil prices fell Tuesday. The Amex Oil Index (OIX: news, chart, profile) dropped 1.3% to 837. The Amex Natural Gas Index (XNG: news, chart, profile) dipped 0.4% to 561. Oil fell $1.39 to $92.14 a barrel. EOG Resources (EOG: news, chart, profile) rose 1.9% to $84.10 after it was upgraded to outperform from market perform at Raymond James. Hercules Offshore (HERO: news, chart, profile) rose 2.3% to $26.36 after it said third-quarter net income rose 63%. BJ Services (BJS: news, chart, profile) fell 1.6% to $24.93 after it said third-quarter earnings fell on price pressure in the Gulf of Mexico.
CORRECT: UBS upgrades Western Refining to neutral (9:28 am ET)
NEW YORK (MarketWatch) -- UBS on Monday upgraded Western Refining (WNR: news, chart, profile) to neutral from sell on valuation. The company has fallen 40% since July and 46% since its highs earlier in the year, UBS said in a note to clients. "Gvien the pullback in benchmark crack spreads on the back of a sharp rise in crude prices, we do not expect any fundamental catalyst in the short term," UBS said in a note to clients. "Also, WNR has relatively high earnings sensitivity to refining margins coupled with its high regulatory capex requirements, we expect WNR to remain vulnerable from a cash flow standpoint." (Corrects day of upgrade.)
M/I Homes swings to third-quarter loss (9:14 am ET)
NEW YORK (MarketWatch) -- M/I Homes Inc. (MHO: news, chart, profile) swung to a third-quarter loss of $21.7 million, or $1.73 a share, from year-earlier net income of $15.2 million, or $1.08 a share. The latest quarter's results include pretax charges of $1.49 a share for land-related impairment, joint venture investment write-offs and severance costs. The Columbus, Ohio, home builder said revenue declined 20% to $243.7 million from $306.2 million. M/I Homes said it delivered 787 homes in the quarter, down 15% from 927 a year ago. It expects to deliver 3,000 homes this year and further reduce its debt. The company said its backlog of homes at Sept. 30 stood at 1,468 units with a value of $481 million, down from 2,533 units and $923 million, respectively, a year ago.
First Energy posts decline in third-quarter earnings(9:06 am ET)
TEL AVIV (MarketWatch) -- First Energy Corp. (FE: news, chart, profile) , the Akron, Ohio, electric-power provider, reported Tuesday that third-quarter earnings fell 9% while revenue rose 8.2%. Net income fell to $413 million, or $1.34 a share, from $454 million, or $1.40 a share, in the year-earlier period. Shares outstanding fell 5.5% to 307 million. Revenue reached $3.64 billion from $3.36 billion. A survey of analysts by Thomson First Call produced a consensus estimate for profit of $1.28 a share for the quarter.
Martin Marietta Materials' quarterly net up(8:31 am ET)
BOSTON (MarketWatch) -- Martin Marietta Materials Inc. (MLM: news, chart, profile) before Tuesday's opening bell said third-quarter net income rose to $90.3 million, or $2.12 a share, from $76.2 million, or $1.65 a share the previous year. Total revenue climbed to $620.2 million from $601.7 million a year earlier. The company forecast fourth-quarter earnings in the range of $1.37 to $1.72 a share, and sees profit of $6.10 to $6.45 a share for the full year. Analysts are forecasting full-year earnings of $6.41 a share, according to a poll conducted by Thomson Financial.
Tenneco's third-quarter earnings triple(8:27 am ET)
TEL AVIV (MarketWatch) -- Tenneco (TEN: news, chart, profile) , the Lake Forest, Ill., auto-parts producer, reported third-quarter earnings tripled on 39% higher revenue. Net income reached $21 million, or 45 cents a share, from $7 million, or 16 cents, in the year-earlier period. Shares outstanding rose 1.5% to 47.9 million. Adjusted net was 39 cents a share versus 26 cents. Revenue rose to $1.56 billion from $1.12 billion. A survey of analysts by Thomson Financial produced consensus estimates of 40 cents of profit on $1.44 billion of revenue. Gross-profit margin in the quarter was 15.6% compared with 17.5%.
Safeco net income falls 24%(8:20 am ET)
NEW YORK (MarketWatch) -- Safeco (SAF: news, chart, profile) on Tuesday said third-quarter net income fell 24% to $194.4 million, or $1.93 a share, from $255.7 million, or $2.20 a share in the year-ago period. Operating earnings rose to $1.51 a share from $1.47 a share. Analysts surveyed by Thomson Financial forecast earnings of $1.55 a share. Net written premiums were $1.45 billion for the third quarter, a 1.5% increase. Auto net written premiums declined 3.1%. The company said it's taking steps to improve its auto insurance operations.
Pennsylvania REIT's results boosted by preferred redemption(8:11 am ET)
BOSTON (MarketWatch) -- Pennsylvania Real Estate Investment Trust (PEI: news, chart, profile) Tuesday said third-quarter net income available to common shareholders was $13.7 million, or 35 cents a share, including $13.3 million related to its earlier redemption of preferred shares. The company said funds from operations rose to $1.16 a share from 80 cents in the year-ago period. Wall Street analysts polled by Thomson Financial had been looking for FFO of $1.10 a share, on average. The stock closed Monday off 3.4% at $36.37.
Hercules Offshore net income up 63% despite Gulf weakness(7:59 am ET)
NEW YORK (MarketWatch) -- Hercules Offshore (HERO: news, chart, profile) on Tuesday said third-quarter earnings rose 63% to $48.4 million, or 58 cents a share, from $29.7 million, or 91 cents a share in the year-ago period. The oil services firm said revenue tripled to $294.4 million from $97.2 million in the year-ago period after closing on its acquisition of Todco. Excluding items, net income in the latest period totaled 61 cents a share. Analysts surveyed by Thomson First Call forecast earnings of 54 cents a share and revenue of $302 million, on average. "Our third quarter financial results clearly reflect a difficult market environment for shallow water drilling in the U.S. Gulf of Mexico," the company said. Two-thirds of its operating income was generated by business segments other than its domestic offshore. "While it is difficult to predict a recovery in our domestic offshore drilling business, there are some early signs of a moderate increase in demand as we enter the fourth quarter," Hercules Offshore said.
On Semiconductor third-quarter income declines(8:00 am ET)
NEW YORK (MarketWatch) -- On Semiconductor Corp. (ONNN: news, chart, profile) said Tuesday that its third-quarter net income fell to $63.8 million, or 20 cents a share, from $76.8 million, or 23 cents a share, in the year-earlier period. Revenue declined to $402.9 million from $420.9 million. Analysts expected earnings of 22 cents a share on revenue of $398.8 million, according to Thomson Financial. On Semi estimated that fourth-quarter revenue will come in about flat to up 2% sequentially. Phoenix.-based On Semi makes audio and power management chips used in mobile phones, cars, and portable electronics.
MF Global swings to loss (7:50 am ET)
NEW YORK (MarketWatch) -- MF Global, (MF: news, chart, profile) Tuesday reported a second quarter loss of $90.6 million, or 78 cents a share, compared to a profit of $25.4 million, or 25 cents a share a year ago. The firm said its second quarter non-GAAP earnings per share were 42 cents. The firm said it recorded a litigation accrual of $69 million in the quarter, adding that the litigation costs are covered by insurance and will have no material effect on long-term results. MF said it expects to settle the litigation, brought by the Receiver Ad Litem for Philadelphia Alternative Asset Fund ("PAAF") and related entities, in coming weeks.
FPL Group net income up 1%(7:48 am ET)
NEW YORK (MarketWatch) -- FPL Group Inc. (FPL: news, chart, profile) said Tuesday third-quarter net income rose 1% to $533 million, or $1.33 a share, from $527 million, or $1.32 a share in the year-ago period. Adjusted net income increased to $1.23 a share from $1.15 a share. Revenue fell to $4.58 billion from $4.69 billion. Analysts surveyed by Thomson Financial forecast earnings of $1.23 a share and revenue of $4.73 billion, on average. The Juno Beach, Fla. utility said it expects adjusted 2008 earnings of $3.83 to $3.93 a share, ahead of the Wall Street estimate of $3.81 a share. FPL Group expects average annual adjusted earnings growth of at least 10% through 2012.
Avon posts jump in third-quarter earnings(7:43 am ET)
NEW YORK (MarketWatch) -- Avon Products Inc.'s (AVP: news, chart, profile) third-quarter net income jumped 61% to $139.1 million, or 32 cents a share, from $86.4 million, or 19 cents a share, a year earlier. The latest quarter included $96 million in advertising expenses, up 44% from a year ago, and $37 million in restructuring costs. Revenue rose 14% to $2.35 billion from $2.06 billion a year ago, as beauty products sales rose 16%. On average, analysts polled by Thomson Financial expected the New York-based direct seller of cosmetics to earn 31 cents a share on revenue of $2.27 billion. For fiscal 2007, the company said it remains on track for $375 million in advertising spending and an incremental $100 million in restructuring costs. The company also said it expects its 2008 operating margin to approach 2005's level.
Sepracor profit slips; to cut jobs(7:35 am ET)
NEW YORK (MarketWatch) - Pharmaceutical company Sepracor Inc. (SEPR: news, chart, profile) posted a lower third-quarter profit on Tuesday and said it will cut sales jobs as well as sales and marketing expenses. Net income in the third quarter fell to $42.9 million, or 37 cents a share, from $64.4 million, or 56 cents a share, in the year-ago period. Total revenue fell to $283.9 million from $289.3 million. Analysts, on average, expected it to earn 26 cents a share on revenue of $289 million, according to Thomson Financial. The Marlborough, Mass.-based company said it will cut the number of sales force positions by about 300. This, together with other anticipated cost reduction initiatives across the business, has resulted in a projected reduction in sales and marketing expenses of approximately $90 million to $100 million for 2008. Sepracor said its overall forecast for 2007 remains unchanged from the last quarter with anticipated total revenues for 2007 of between $1.23 billion to $1.3 billion. Sepracor has narrowed its earnings target range to $1.05 to $1.15 a share for 2007 from the previous forecast of $1.00 to 1.30. This range not only includes the after-tax charge relating to the settlement of the tecastemizole litigation of 28 cents a share, but also includes expected restructuring charges during the fourth quarter that the company will incur related principally to the sales force reorganization, the company said. For 2008, Sepracor expects to earn $2.35 to $2.45 a share. Analysts polled by Thomson Financial expect it to earn $1.40 a share on revenue of $1.25 billion for 2007, and $1.83 a share for 2008, on average.
Industrial Distribution 3rd-quarter net off 28%(7:20 am ET)
AVIV (MarketWatch) -- Industrial Distribution Group Inc., (IDGR: news, chart, profile) the Atlanta distributor of equipment for maintenance, repair, operations and production, reported third-quarter earnings fell 28% on 3.4% lower revenue. Earnings fell to $1.3 million, or 14 cents a share, from $1.8 million, or 19 cents, in the year-earlier period. Revenue fell to $134.3 million from $139 million. Gross profit was 23.4% of revenue against 22.6% a year earlier.
Qwest net income jumps, sees capex flat with year ago(7:18 am ET)
NEW YORK (MarketWatch) - Qwest Communications International Inc. (Q: news, chart, profile) on Tuesday said third-quarter net income rose to $2.07 billion, or $1.08 a share, from $194 million, or 9 cents a share, in the year-ago period. The results include the recognition of a $2.15 billion tax benefit and $353 million in charges for litigation. Operating revenue fell to $3.43 billion from $3.49 billion. Analysts, on average, expected it to earn 15 cents a share on revenue of $3.49 billion, according to Thomson Financial. The Denver-based company said it sees 2007 capital expenditures about flat with 2006 levels. Qwest said it's still comfortable with its previously stated goals for adjusted free cash flow and capital expenditures for the year. The company said it has refined its expectations for adjusted EBITDA which is expected be in the range of a $250 million improvement above last year's level.
TRW net income rises fivefold(7:18 am ET)
NEW YORK (MarketWatch) -- TRW Automotive Holdings Corp. (TRW: news, chart, profile) on Tuesday said third-quarter net income rose nearly five times to $23 million, or 22 cents a share, from $5 million, or 5 cents a share in the year-ago period. Revenue increased to $3.5 billion from $3 billion. Analysts surveyed by Thomson Financial forecast earnings of 26 cents a share and revenue of $3.3 billion, on average. The automotive parts maker forecast adjusted 2007 earnings of $2.10 to $2.30 a share, compared to the Wall Street target of $2.34 a share.
Sirius Satellite loss lessens (7:16 am ET)
NEW YORK (MarketWatch) -- Sirius Satellite Radio (SIRI: news, chart, profile) said Tuesday that its net loss for the third quarter shrank to $120.1 million, or 8 cents a share versus a loss of $162.9 million, or 12 cents a share a year ago. Its third quarter revenue was $241.8 million versus $167.1 million last year. The company said it sees full year 2007 revenue near $1 billion, and it expects to have 8 million subscribers by year-end.
BJ Services Company net income falls(7:11 am ET)
NEW YORK (MarketWatch) -- BJ Services Company (BJS: news, chart, profile) on Tuesday said fourth-quarter net income fell to $189.4 million, or 64 cents a share, from $228.6 million, or 76 cents a share in the year-ago period. Revenue rose 11% to $1.28 billion. Analysts surveyed by Thomson Financial forecast earnings of 60 cents a share and revenue of $1.2 billion, on average. The oil services company said it expects first-quarter earnings of 58-60 cents a share, compared to the Wall Street estimate of 63 cents a share. For 2008, BJ Services forecast earnings of $2.35 to $2.45 a share verses the Street estimate of $2.50 a share.
Navios Maritime 3rd-quarter net doubles, revenue jumps(7:07 am ET)
TEL AVIV (MarketWatch) -- Navios Maritime Holdings Inc., (NM: news, chart, profile) the Piraeus, Greece, specialist in dry-bulk shipping, reported third-quarter earnings doubled and revenue quadrupled, driven by more contracts serviced, higher rates, and more operating days. Profit reached $36.5 million, or 34 cents a share, from $16.9 million, or 27 cents, in the year-earlier period. Shares outstanding rose 74% to 108.3 million. Revenue rose to $212.9 million from $50.9 million. A survey of analysts by Thomson Financial produced a consensus estimate of 27 cents of profit for the quarter.