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Friday, Nov. 9
Bank of America: CDO dislocations may knock Q4 results(3:13 pm ET)
SAN FRANCISCO (MarketWatch) -- Bank of America Corp. (BAC: news, chart, profile) said on Friday that dislocations in the market for collateralized debt obligations (CDOs) will knock the bank's fourth-quarter results. "It may take more time for the markets to return to a more normal environment with tighter credit spreads and greater liquidity," the bank said in its quarterly filing with the Securities and Exchange Commission. Bank of America disclosed that it provided more than $15 billion of liquidity support for commercial paper sold by CDOs. A net $9.8 billion of that is mainly backed by subprime residential mortgage securities, it added. The bank also has more than $3 billion of exposure to CDOs through its structuring, warehousing and trading activities, it said in the filing.
JP Morgan: CDO, subprime positions could be hit in Q4(2:49 pm ET)
SAN FRANCISCO (MarketWatch) -- J.P. Morgan Chase & Co. (JPM: news, chart, profile) said on Friday that some of its subprime-related positions could be hit by turbulent conditions in credit markets in the fourth quarter. "The firm's CDO and subprime mortgage warehouse and trading positions could also be negatively affected by market conditions during the fourth quarter of 2007," the bank said in its quarterly filing with the Securities and Exchange Commission. In the third quarter, J.P. Morgan noted that it took a $339 million write-down (net of risk management results) on $6.8 billion of collateralized debt obligation (CDO) warehouse and unsold positions.
Comstock Homebuilding's shares fall on loss(12:20 pm ET)
BOSTON (MarketWatch) -- Shares of Comstock Homebuilding Cos. (CHCI: news, chart, profile) were off more than 5% in afternoon trading Friday after the company reported a quarterly loss of $42.5 million on a slumping housing market. Chief Executive Christopher Clemente in a statement said housing remains weak and that the company does not see conditions improving in the near term. In the latest quarter, Comstock booked impairment charges of $61.4 million and write-offs of $7.6 million related to land options. The company said it has received waivers from its lenders for violating tangible net-worth covenants as a result of the impairment charges.
Fannie Mae's shares slump at opening after earnings report(9:39 am ET)
WASHINGTON (MarketWatch) -- Fannie Mae's (FNM: news, chart, profile) shares fell 5% just after the opening bell, to $47.30, following the company's reporting of earnings for the first, second and third quarters of 2007. Earnings for that period fell by 57% compared to the same period a year ago. Fannie reported net income of $1.5 billion for the first three quarters of 2007 versus $3.5 billion for the same period in 2006. The company said worsening housing market conditions and credit-market volatility were behind the weaker results.
DUSA Pharmaceuticals' third-quarter loss narrows(9:31 am ET)
NEW YORK (MarketWatch) -- DUSA Pharmaceuticals Inc.'s (DUSA: news, chart, profile) third-quarter loss narrowed to $1.9 million, or 10 cents a share, from $3.8 million, or 19 cents, a year ago. Excluding items, the Wilmington, Mass., company had a loss of $1.4 million, or 7 cents a share, in the latest period. Total product revenue fell to $5.8 million from $6.1 million a year ago. On average, analysts polled by Thomson Financial expected a loss of 16 cents a share on revenue of $6 million.
CIBC to take $463 mln write-down on mortgage assets(9:15 am ET)
BOSTON (MarketWatch) -- Canadian Imperial Bank of Commerce (CA:CM: news, chart, profile) Friday said it expects to report write-downs of $463 million, net of hedges, in the fourth quarter to mark down collateralized debt obligations and residential mortgage-backed securities related to the U.S. residential mortgage market. Separately, CIBC said it expects to report a $456 million pretax gain in the fourth quarter from the completion of the restructuring of Visa Inc. CIBC is scheduled to release fourth-quarter results on Dec. 6.
Triarc profit rises; deal exploration costs mount(9:06 am ET)
NEW YORK (MarketWatch) - Triarc Companies (TRY: news, chart, profile) on Friday said third-quarter net income rose to $3.7 million, or 4 cents a share, from $687,000, or 1 cent a share, in the year-ago period. Revenue rose to $324.2 million from $311.7 million. Systemwide same-store sales were relatively flat in the third quarter. The company, which operates Arby's restaurants, expects systemwide same-store sales to be positive for the fourth quarter. The company said it is currently incurring significant costs to evaluate a potential material acquisition of another company in the restaurant industry. There can be no assurance, however, that this acquisition will occur. The company has expressed interest in acquiring Wendy's International Inc. (WEN: news, chart, profile) and signed a confidentiality pact, giving it access to the hamburger chain's books.
Goldcorp's third-quarter earnings rise(8:55 am ET)
NEW YORK (MarketWatch) -- GoldCorp. Inc.'s (GG: news, chart, profile) third-quarter net earnings rose to $75.8 million, or 11 cents a share, from $59.5 million, or 14 cents, a year ago, helped in part by an increase in production and sales. The mining company said revenue rose to $524 million from $404.3 million a year ago.
Ameren's third-quarter income falls(8:53 am ET)
NEW YORK (MarketWatch) -- Ameren Corp. (AEE: news, chart, profile) on Friday reported third-quarter net income of $244 million, or $1.18 a share, down from $293 million, or $1.42 a share, in the year-ago period. The St. Louis-based electric and gas utility said that excluding items, earnings were $282 million, or $1.36 a share, compared to the year-earlier $312 million, or $1.52 a share. Analysts polled by Thomson Financial were expecting, on average, a per-share profit of $1.56.
Sotheby's Q3 net loss 33 cents per share vs 50 cent loss(8:30 am ET)
NEW YORK (MarketWatch) -- Sotheby's (BID: news, chart, profile) said Friday its third-quarter net loss totaled $20.9 million, or 33 cents per share, from a loss of $30.4 million, or 50 cents per share, in the same quarter a year before. Revenue for the recent quarter was $85.1 million compared with $57.4 million in the year-ago period. A poll of analysts by Thomson Financial had yielded an average forecast of a 30 cent loss per share for the quarter on revenue of $79.2 million. The New York-based auction firm said the third quarter has "historically been a loss period for the company," and added that results for the quarter included a $14.6 million loss on auction guarantees.
JA Solar Holdings third-quarter income rises(8:00 am ET)
NEW YORK (MarketWatch) -- JA Solar Holdings Co. Ltd.'s (JASO: news, chart, profile) third-quarter net income rose to $22.1 million, or 47 cents a share, from $5.3 million, or 2 cents a share, a year ago, helped in part by announcements of supply deals and the strengthened customer partnership, the company said. The Hebei, China, maker of monocrystalline solar cells said revenue rose to $113.4 million from $33.1 million a year ago. The company raised its 2007 revenue estimate to $320 million to $310 million from the previously stated $280 million to $290 million.
Merck approves $4.85 billion Vioxx settlement(7:51 am ET)
NEW YORK (MarketWatch) - Merck & Co. (MRK: news, chart, profile) said Friday it agreed to settle the majority of product liability lawsuits related to its Vioxx painkiller for about $4.85 billion. The Whitehouse Station, N.J.-based drugmaker said if certain conditions under the agreement are met, Merck will pay a fixed amount of $4.85 billion into a settlement fund for qualifying claims that enter into the resolution process. This is not a class-action settlement, Merck said, and claims will be evaluated on an individual basis. The company expects to record a fourth-quarter 2007 pre-tax charge in the amount of $4.85 billion to cover the cost of the agreement. Under the terms of the agreement, Merck does not admit fault or causation. The company said it will continue to defend all claims that are not included in the resolution process. Shares rose more than 2% in premarket trading.
Warner Chilcott swings to third-quarter profit(7:37 am ET)
NEW YORK (MarketWatch) -- Warner Chilcott Ltd. (WCRX: news, chart, profile) said Friday that it swung to a third-quarter profit, boosted by sales of its Loestrin 24 FE and Taclonex products. The Bermuda-based specialty pharmaceutical company reported third-quarter earnings of $5.8 million, or 2 cents a share, compared with a loss of $81.0 million, or 95 cents a share, a year earlier. Excluding a $9 million expense relating to the tentative settlement of a lawsuit, the company had adjusted cash net income of $69.3 million. Warner Chilcott said total revenue for the quarter rose 16% to $226.5 million from $194.7 million a year ago. In addition, Warner Chilcott said it now expects earnings for 2007 of $12 million to $17 million, or adjusted cash net income of $1.03 to $1.05 a share.
Station Casinos net income falls, revenue rises(7:30 am ET)
NEW YORK (MarketWatch) - Station Casinos Inc. on Friday said third-quarter net income fell to $3.7 million, or 7 cents a share, from $19.2 million, or 34 cents a share, in the year-ago period. Results in the most recent third quarter include $2.3 million in costs to develop new gaming opportunities, primarily related to Native American gaming, $2.2 million related to costs associated with the acquisition of the company, $900,000 of preopening expenses and $2.5 million of other non-recurring costs. Gross revenue rose to $380.9 million from $371.5 million. Net revenue rose to $354.1, up 2%.
DRS Technologies posts rise in second-quarter earnings(7:25 am ET)
NEW YORK (MarketWatch) -- DRS Technologies Inc. (DRS: news, chart, profile) on Friday reported second-quarter earnings of $43.0 million, or $1.04 a share, up from a year-ago profit of $25.2 million, or 62 cents a share. On an adjusted basis, excluding certain items, the company said it earned 79 cents a share in the latest quarter. Revenue rose 10% in the latest three months to $783.8 million from $711.5 million a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 98 cents a share. Looking ahead, the Parsippany, N.J.-based supplier of military products said it sees earnings of $3.12 to $3.22 a share in fiscal 2008 on revenue of $3.10 billion to $3.15 billion. The stock closed Thursday at $57.78, up 0.9%.
Brooks Automation swings to quarterly loss; bookings fall(6:46 am ET)
LONDON (MarketWatch) -- Brooks Automation (BRKS: news, chart, profile) , a provider of business, marketing and technology consulting services, said it swung to a fourth-quarter net loss of $1.3 million, or 2 cents a share, compared to net profit of $16 million, or 22 cents a share, a year earlier. Revenue slipped 11% to $166.5 million. Bookings for the quarter fell 10.5% to $153 million. The company said it expects first-quarter revenue of $155 million to $165 million. It forecast results ranging from a loss of 4 cents a share to earnings of 4 cents a share in the quarter.
Clearwire, Sprint Nextel scrap WiMax network agreement(6:36 am ET)
LONDON (MarketWatch) -- Clearwire Corp. (CLWR: news, chart, profile) , a provider of wireless high-speed Internet services, and Sprint Nextel Corp. (S: news, chart, profile) on Friday said they scrapped their agreement to jointly build a nationwide high-speed WiMax network, citing the complexity it would have added to their businesses. The companies said they are continuing discussions on how to reach the benefits that were expected under the original agreement. Sprint said in a separate statement that it would review its WiMax business plan and outlook in light of the announcement and plans to make further comments on the topic early next year. Clearwire also reported that its third-quarter net loss widened to $329 million, or $2.01 a share, from $60 million, or 61 cents a share, a year earlier, because of a one-time charge of $159 million. Revenue jumped to $41 million from $27 million.
FormFactor sees $22.2 mln profit, to restate prior earnings(5:26 am ET)
LONDON (MarketWatch) -- FormFactor Inc. (FORM: news, chart, profile) said Friday that it expects to report third-quarter net income of $22.2 million, or 45 cents a share and that it will restate its earnings for 2006 and the first half of 2007 after its internal review found the company hadn't correctly followed inventory accounting policies. For 2006 FormFactor said it expects to revise earnings per share down to $1.21 from the $1.29 previously reported. For the first quarter of 2007 earnings are expected to be 31 cents vs the 30 cents previously reported and for the second quarter earnings are seen at 43 cents vs 38 cents previously reported. The company said the accounting failure was limited to a small number of employees and senior management were not aware of the non-compliance.
Inmarsat profit more than doubles (2:36 am ET)
LONDON (MarketWatch) -- Satellite communications group Inmarsat (UK:ISAT: news, chart, profile) said Friday that its third-quarter profit more than doubled to $23.7 million from $11.1 million as revenue rose 8% to $139.6 million. The group said the strongest growth was in its aeronautical business, where revenue rose 45%. "The strong growth trends in our core business have maintained our momentum through the third quarter. This performance places us well on track to deliver on our previously upgraded expectations for revenue and cash flow for the full year," said CEO Andrew Sukawaty.
Thursday, Nov. 8
DTE Energy profit rises 5%(5:19 pm ET)
SAN FRANCISCO (MarketWatch) -- Detroit-based utility DTE Energy (DTE: news, chart, profile) on Thursday posted a third-quarter profit of $197 million, or $1.19 a share, up from $188 million, or $1.06 a share, a year earlier. Operating earnings, excluding one-time items, came to $1.09 a share. Analysts polled by Thomson Financial had expected earnings, on average, of 89 cents a share. For the full year, the company said it is confident it will post a profit of $2.50 to $2.65 a share. Wall Street previously forecast earnings of $2.76 a share.
Cephalon swings to loss(5:06 pm ET)
SAN FRANCISCO (MarketWatch) -- Cephalon Inc. (CEPH: news, chart, profile) late Thursday said it swung to a third-quarter net loss of $306.7 million, or $4.58 a share. In the same period last year, the drug maker posted a profit of $95.7 million, or $1.43 a share. For the three months ended Sept. 30, sales fell to $438.4 million from $482.3 million. Cephalon said it expects to pay $425 million as part of a comprehensive settlement with federal regulators regarding Federal and related state Medicaid claims. Looking ahead, the company reiterated its 2007 sales forecast of $1.675 billion to $1.725 billion.
Nvidia earnings more than double in third quarter(4:45 pm ET)
SAN FRANCISCO (MarketWatch) - Nvidia Corp. (NVDA: news, chart, profile) reported net income of $235.7 million, or 38 cents per share, on revenue of $1.12 billion for the quarter ended Oct. 28, compared to income of $106.5 million, or 18 cents per share, on revenue of $820.57 million for the year-ago quarter. Minus one-time charges, the company said earnings per share would have been 44 cents. Analysts were expecting the company to report earnings per share of 37 cents on revenue of $1 billion.
Disney earnings rise on across-the-board strength(4:12 pm ET)
LOS ANGELES (MarketWatch) -- Walt Disney Co. (DIS: news, chart, profile) on Thursday said net income was $877 million, or 44 cents a share, compared with $782 million, or 36 cents a share from a year ago. Reporting after the close, the Burbank, Calif.-based entertainment conglomerate said sales were $8.93 billion vs. last year's $8.65 billion. Excluding tax adjustments, the company's earnings came in at 42 cents a share. Analysts polled by Thomson First Call expected the company to post earnings of 41 cents a share on sales of $8.98 billion. Disney shares had ended trading Thursday up 13 cents to $33.63. The company said in press release that it saw growth across the board, contributing to the gains.
Qualcomm earnings surge 84% for fourth quarter(4:08 pm ET)
SAN FRANCISCO (MarketWatch) - Qualcomm Inc. saw earnings surge 84% for the September quarter amid strong demand for the company's chipsets that power wireless phones. For the fourth fiscal quarter ended Sept. 30, the wireless technology company (QCOM: news, chart, profile) reported earnings of $1.13 billion, or 67 cents a share, compared to earnings of $614 million, or 36 cents a share, for the same period last year. The company said pro-forma earnings totaled $911 million, or 54 cents a share. Revenue grew 15% to $2.31 billion for the period from $2 billion last year. Analysts were expecting earnings of 53 cents a share on revenue of $2.26 billion, according to consensus estimates from Thomson Financial.
Cisco downgraded by Raymond James to market perform(9:48 am ET)
SAN FRANCISCO (MarketWatch) -- Cisco Systems Inc. (CSCO: news, chart, profile) was downgraded to a market perform rating Thursday morning by Raymond James. In a note to clients, analyst Todd Koffman said the company's first fiscal quarter results, which were reported late Wednesday, shows that Cisco's revenue growth trends "may be moderating." Cisco's results for the quarter came in above Wall Street's estimates, but the company's forecast for the current period was below analysts' expectations. "As such, multiple expansion has likely run its course and we would expect some multiple contraction as growth rates moderate," Koffman wrote.
Kohl's October comparable-store sales fell 3.8% (9:47 am ET)
NEW YORK (MarketWatch) -- Kohl's Corp.'s (KSS: news, chart, profile) October same-store sales fell 3.8%, hurt by "significant declines" in weather-sensitive businesses such as outerwear, fleece and sweaters. On average, analysts polled by Thomson Financial predicted an October same-store sales increase of 0.5%. The Wisconsin department store chain's total sales for the four-week period ended Nov. 3 rose 1.6% to $1.27 billion over the four-week period ended Oct. 28, 2006. Based on October's results, Kohl's expects third-quarter earnings in the range of 59 cents to 60 cents a share.
Fred's October same-store sales increase 0.6% (9:43 am ET)
NEW YORK (MarketWatch) -- Fred's Inc. (FRED: news, chart, profile) said October same-store sales rose 0.6%, missing its forecast of 1% to 3%, due to warm weather. As a result, the Memphis-based general merchandise retailer expects third-quarter earnings to fall a penny short of its forecast of 15 cents a share. Analysts polled by Thomson Financial, on average, expected same-store sales growth of 1.6%. The Memphis-based general merchandise retailer said total sales for the four weeks ended Nov. 3 increased 4% to $129.5 million from $124.9 million. Third-quarter sales rose 3% to $419.9 million from $407.9 million, as same-store sales rose 1.1%.
Spectrum Brands reports narrowed quarterly loss(9:32 am ET)
BOSTON (MarketWatch) -- Spectrum Brands (SPC: news, chart, profile) reported a narrowed fourth-quarter loss early Thursday. For the quarter ended Sept. 30, Spectrum reported a net loss of $333 million, or $6.60 a share, compared with a loss of $439 million, or $8.88 a share, for the same quarter last year. Both years' quarters included hefty charges related to discontinued operations, tax adjustments and restructuring. Excluding various charges, Spectrum would have posted adjusted earnings of 23 cents a share, versus 17 cents last year. Sales rose to $548 million, up 13% from the 2006 period.
Rockwell Automation fourth-quarter income slips(9:30 am ET)
NEW YORK (MarketWatch) -- Rockwell Automation Inc.'s (ROK: news, chart, profile) fiscal fourth-quarter net income fell slightly to $165.2 million, or $1.08 a share, from $165.8 million or 94 cents a share, a year earlier. Earnings from continuing operations were $1.07 a share. The Milwaukee automation services company said revenue for the period rose 15% to $1.37 billion from $1.19 billion a year ago. On average, analysts polled by Thomson Financial expected earnings of $1.07 a share and revenue of $1.37 billion. The company expects 2008 revenue growth between 10% and 12% and earnings for the fiscal year between $4.25 and $4.45 a share.
Petrohawk 3rd-quarter net fell 49% on 8.6% higher revenue(9:31 am ET)
TEL AVIV (MarketWatch) -- Petrohawk Energy Corp., (HK: news, chart, profile) the Houston oil and natural-gas producer, reported that third-quarter net income fell 49% on 8.6% higher revenue. Earnings fell to $26.8 million, or 16 cents a share, from $52.7 million, or 33 cents, in the year-earlier period. Shares outstanding rose 7.9% to 172.3 million. Revenue reached $213.3 million from $196.4 million. On Oct. 30, Petrohawk registered with the Securities and Exchange Commission an initial public offering of units in a new master limited partnership, HK Energy Partners LP. The partnership will hold certain long-lived low-maintenance properties from PetroHawk's Permian Basin portfolio.