Earning Plays

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Tuesday, Nov. 13
Bank of America sees $3 bln in CDO mark-downs(11:29 am ET)
BOSTON (MarketWatch) -- Bank of America Corp. (BAC: news, chart, profile) Tuesday said it's currently estimating a $3 billion pretax charge in the fourth quarter to mark down collateralized debt obligations, or CDOs. Since the end of the third quarter, "the credit ratings of certain CDOs were downgraded which, among other things, helped to trigger severe dislocations in the CDO markets," said Chief Financial Officer Joe Price at an investment conference Tuesday hosted by Merrill Lynch & Co. "As a result, many market participants have announced large write-downs." The CFO said Bank of America has about $11.7 billion total in subprime exposure. Additionally, the company has about $400 million in subprime-backed exposure in its CDO warehouse. "As market conditions change and possibly worsen there could be additional diminution in value," Price warned. He said the company doesn't intend to update its loss estimates prior to the release of fourth-quarter results in early January. Shares of Bank of America rose more than 2% at last check.
Fortress Investment reports quarterly loss(9:27 am ET)
BOSTON (MarketWatch) -- Fortress Investment Group LLC (FIG: news, chart, profile) Tuesday said it swung to a net loss of $37.6 million, or 52 cents a share, in the third quarter, from earnings of $64.7 million a year earlier. Total revenue fell to $247.3 million from $335.2 million in the year-ago period. The private equity and hedge fund company said fee-paying assets under management at quarter-end were $31.2 billion, up 62% from a year earlier.
Nymex Holdings October daily volume rose 30%(8:34 am ET)
TEL AVIV (MarketWatch) -- Nymex Holdings Inc., (NMX: news, chart, profile) the parent of the New York Mercantile Exchange, reported that in October, average daily volume rose 30% to 1.6 million contracts from 1.2 million in the year-earlier month. Nymex daily electronic volume on the CME Globex (CME: news, chart, profile) electronic-trading platform more than doubled to about 747,600 contracts from 336,000.
Additional $1.5 bln seen for Gulf oil storage biz (7:34 am ET)
NEW YORK (MarketWatch) -- A storage infrastructure spending boost of $1.5 billion is expected in the energy-rich region of Texas and Louisiana for crude oil (XOI: news, chart, profile) and refined petroleum products ($OSX: news, chart, profile) , an industry survey reported Tuesday. During the next three years, the money will be spread across 91 projects with an average capital value of about $17 million, according to Industrial Info Resources of Sugar Land, Texas.
Fossil Inc. net income up 41%(7:12 am ET)
NEW YORK (MarketWatch) -- Fossil Inc. (FOSL: news, chart, profile) said Tuesday third-quarter net income rose 41% to $30.5 million, or 43 cents a share, from $21.5 million, or 31 cents a share in the year-ago period. The latest quarter included a charge of 3 cents a share. Net sales increased 19.6% to $358.6 million. Analysts surveyed by Thomson Financial forecast earnings of 34 cents a share, on average. The company forecast fourth-quarter earnings of 67 cents a share. The Richardson, Texas maker of watches and jewelry also OK'd the repurchase 2 million shares of its common stock.
E.On nine-month adjusted profit climbs 23.5%(6:50 am ET)
LONDON (MarketWatch) -- E.ON AG (DE:761440: news, chart, profile) Tuesday said its adjusted net profit in the first nine months of the year increased 23.5% from the same period last year, driven mainly by high wholesale electricity prices throughout Europe. E.ON, the world's largest investor-owned utility by market value, said adjusted net profit in the nine months to Sept. 30 came in at EUR4.2 billion from EUR3.4 billion a year earlier. Analysts had forecast EUR4.97 billion, according to the average of 11 analysts polled by Dow Jones Newswires. Adjusted earnings before interest and taxes, or EBIT, the company's preferred measure of operating profitability, came in 10.9% higher at EUR7.1 billion, while analysts expected EUR6.87 billion. Sales in the first nine months of the year rose 6.7% from the same period a year earlier to EUR49.4 billion, compared with the EUR49.55 billion forecast by analysts.
Wal-Mart optimistic on fourth-quarter earnings(6:42 am ET)
WASHINGTON (MarketWatch) -- Wal-Mart Stores Inc. (WMT: news, chart, profile) said it now anticipates generating earnings from continuing operations of 99 cents to $1.03 a share. This pegs the retailing giant's earnings from continuing operations for the full fiscal year ending next January in a range of $3.13 to $3.17 a share. Analysts' average estimates as compiled by Thomson Financial stand at $1.02 and $3.09 a share, respectively. In addition, Wal-Mart's estimating that U.S. comparable-store sales will be flat to 2% higher for the fourth quarter. U.S. comp-store sales were up 1.5% in the third quarter ended Oct. 31, financial results reported Tuesday show.
Duff & Phelps net improves 46%(6:39 am ET)
LNODON (MarketWatch) -- Duff & Phelps (DUF: news, chart, profile) , the financial advisory and investment banking firm, said third-quarter net income rose 46% to $10.7 million, with revenue up 24% to $87.6 million.
Wal-Mart generates nearly 8% growth in quarterly profit(6:35 am ET)
WASHINGTON (MarketWatch) -- Wal-Mart Stores Inc. (WMT: news, chart, profile) reported net income of $2.86 billion, or 70 cents a share, for the third quarter ended Oct. 31, up from $2.65 billion, or 63 cents, earned in the same period last year. Based in Bentonville, Ark., the Dow Jones Industrial Average component generated quarterly sales of $91.95 billion, up from the prior year's $84.47 billion. Earnings from continuing operations improved to 70 cents a share from 62 cents in the year-earlier third quarter. Analysts, on average, had been looking for earnings of 67 cents a share on revenue of $91.67 billion, according to estimates compiled by Thomson Financial.
Nash Finch posts profit; to propose annual election of board(4:14 am ET)
TEL AVIV (MarketWatch) -- Nash Finch Co., (NAFC: news, chart, profile) the Minneapolis foods distributor, swung to a fiscal third-quarter profit from a year-earlier loss on 4.2% lower sales. For the quarter ended Oct. 6, earnings were $15.4 million, or $1.12 a share, compared with a net loss of $4.6 million, or 34 cents, in the year-earlier period. Special items in the periods benefited the share figures by a net 8 cents in the latest quarter and 83 cents a year earlier. Sales fell to $1.37 billion from $1.43 billion. Nash Finch also said that at the 2008 annual meeting, it would propose to holders a change in the way the board is elected. Currently, directors serve staggered terms; the proposal would provide that all directors stand for election annually.
Emap operating profit up 6% on women's titles, radio(2:48 am ET)
LONDON (MarketWatch) -- Emap (UK:EMA: news, chart, profile) , the U.K. magazine-to-radio station operator that's splitting itself up, said first-half operating profit from continuing operations rose 6% to 93 million pounds ($196 million), with revenue up 1% to 386 million pounds. The company reported good performances from women's weekly titles, radio and business-to-business events and information services, and said its profit also was helped by cost savings. Revenue continued to fall at its portfolio of men's monthly consumer magazine titles. It's paying a half-year dividend of 9.5 pence a share, up 7%, and is holding onto annual forecasts. It's also transferring its main defined benefit pension schemes to a third-party insurer with a final cash contribution of approximately 40 million pounds in November.
British Energy profit climbs 29% on rising prices(2:35 am ET)
LONDON (MarketWatch) -- U.K. nuclear power plant operator British Energy (UK:BGY: news, chart, profile) said first-half profit rose 29% to 243 million pounds ($511 million), with revenue up 2% to 1.39 billion pounds and total output down 4% after boiler inspection outages and load restrictions. Profit was helped by a credit from the Nuclear Liabilities Fund and increased prices. It plans to pay an additional dividend in February 2008, and said it would pay particular attention to recent performance history and "any liquidity issues" in determining the amount of any additional dividend. The remainder of the year will be significantly impacted by boiler closure unit issues at Hartlepool and Heysham 1, it added.
Fraport: Frankfurt Airport October traffic up 3.2% (2:31 am ET)
TEL AVIV (MarketWatch) -- Fraport AG, (FPRUF: news, chart, profile) (DE:577330: news, chart, profile) operator of Frankfurt Airport, reported that for October, traffic there rose 3.2% to nearly 5 million passengers and air freight rose 2.2% to more than 184,000 metric tons. "Intercontinental traffic continued to drive" passenger growth, notably in connections to South America and the U.S., the company said in a statement.
Cable & Wireless profit more than doubles on lower revenue(2:24 am ET)
LONDON (MarketWatch) -- Cable & Wireless (UK:CW.: news, chart, profile) said its first-half profit more than doubled to 134 million pounds ($282 million), with operating profit before exceptional items rising a stronger-than-forecast 29% to 284 million pounds. Revenue fell 9% to 1.56 billion pounds. The telecom said it's actively shedding lower-margin customers, and its profit rose on a combination of cost-cutting and on mobile and broadband growth in its international business, which consists of the Caribbean, Panama, Macau, Monaco and various islands. It's lifting its dividend by 47% to 2.5 pence and forecasts an annual dividend of 7.5 pence. For the year, it's keeping its operating profit in sterling terms virtually unchanged, as it's hiking its Europe, Asia and U.S. view up by 35 million pounds but cutting its international guidance dwon by $20 million. The firm also said John Pluthero will become executive chairman of the international business while continuing to hold that role for the Europe, Asia and U.S. division, as Harris Jones is stepping down as CEO of the international division.
Genpact 3rd-quarter profit up 27% on 32% higher revenue(1:37 am ET)
TEL AVIV (MarketWatch) -- Genpact Ltd., (G: news, chart, profile) the Gurgaon, India, manager of business processes for companies, reported third-quarter earnings rose 27% on 32% higher revenue. Earnings reached $16.3 million from $12.8 million in the year-earlier period. Earnings per share were 7 cents against a loss of 2 cents. Adjusted profit was 12 cents against 8 cents. Shares outstanding more than doubled to 196 million from 71.3 million. Revenue rose to $214.6 million from $162.4 million. Genpact's overall results have not been significantly affected by the mortgage and credit-market turmoil in the U.S., the company said in a statement on Tuesday. Genpact increased its revenue estimate for 2007 to a rise of 30% to 32% from 2006 compared with 28% to 30% previously. The profit margin Gbased on earnings from operations should be about level with a year earlier, Genpact said.
Macquarie shares slip after saying first-half net rose 45%(1:37 am ET)
HONG KONG (MarketWatch)-- Macquarie Group Ltd, Australia's largest investment bank, reported a higher-than-expected net profit in the six months through September, but lowered its outlook for the second half, sending its shares lower in Sydney trading Tuesday. Macquarie reported half-year net profit of A$1.06 billion, up 45% from the year-earlier period, and outpacing its own forecasts. Macquarie said the result was buoyed by strong equity markets, asset sales and a steady income from its investment banking business. Macquarie forecast second-half results would be at least in line with last year's A$733 million net profit, but cautioned asset sales would lag the first half, equity market conditions were unlikely to be as favorable as recent times, and other seasonal factors would weigh on performance. Shares of Macquarie (AU:MQG: news, chart, profile) fell 3.7% to close at A$79.00.
Monday, Nov. 12
Fidelity's broker units see higher assets, trading(10:17 am ET)
BOSTON (MarketWatch) -- Fidelity Investments on Monday said its brokerage units saw daily average commissionable trades in the third quarter rise 31% from a year earlier to 368,502. The Boston-based company said total brokerage client assets rose 24% from the prior year to a record $1.961 trillion on higher inflows and market activity. Net new client assets during the quarter were $54.8 billion, compared with inflows of $27.8 billion a year earlier. Total client accounts rose 6% to 17.6 million, Fidelity said.
Constellation Brands to consolidate some operations(8:48 am ET)
NEW YORK (MarketWatch) -- Constellation Brands Inc. (STZ: news, chart, profile) said its Hardy Wine Co., will be consolidating winemaking and packaging currently taking place at its Buronga winery, to its Berri Estates winery, resulting in about $22 million in one-time charges over various years. The Fairport, N.Y., beverage products maker said the Buronga winery will retain some grape processing and staff to support local grape growers. Beginning with the 2008 harvest, winemaking will take place at Berri Estates. The company expects cost savings of more than $5 million annually by the end of fiscal 2009. For fiscal 2008, the company is now expecting earnings of $1.16 to $1.24 a share.
Tyson swings to profit; chicken and beef pressured(7:47 am ET)
NEW YORK (MarketWatch) - Tyson Foods Inc. (TSN: news, chart, profile) on Monday swung to a fiscal fourth-quarter profit of $32 million, or 9 cents a share. In the year ago-period, it lost $56 million, or 17 cents a share. During the most recent quarter, the company recognized $17 million of non-cash tax expense associated with the correction of fixed asset tax costs. During the year-ago fourth quarter, the beef, pork and chicken processor recorded pretax charges totaling $23 million associated with a cost cutting, plant closing costs and other business consolidation efforts. Tyson also recorded a $15 million charge in the quarter, resulting from a review of tax account balances, as well as a $5 million charge related to an accounting change. Sales rose to $6.88 billion from $6.47 billion. Analysts, on average, expected it to earn 10 cents a share on revenue of $6.73 billion, according to Thomson Financial. As we begin 2008, we are experiencing some challenging market conditions. "Based on present assessments, we believe we will incur additional increased grain costs of approximately $300 million in the chicken segment," Richard Bond, Tyson's president and chief executive said. "The current beef environment is extremely difficult as well." For fiscal 2008, Tyson expects to earn 30 cents to 70 cents a share. Analysts polled by Thomson expect it to earn $1.02 a share, on average.
Hewitt swings to fourth-quarter loss on charges(7:31 am ET)
NEW YORK (MarketWatch) -- Hewitt Associates Inc. (HEW: news, chart, profile) , the Lincolnshire, Ill., provider of human-resources consulting services, reported a fiscal fourth-quarter loss of $265.6 million, or $2.51 a share, compared with a profit of $23.0 million, or 21 cents a share, in the year-earlier period. The most recent fourth quarter included $326 million in pretax charges. Reported net revenue before reimbursements rose to $750.3 million from $713.3 million. A survey of analysts by Thomson Financial produced a consensus estimate of 35 cents a share of profit on $750 million of revenue. Hewitt also said it expects underlying earnings in fiscal 2008 of $1.70 to $1.80 a share. The shares closed Friday at $34.08.
Imation revises earnings higher on death of ex-CEO(6:14 am ET)
LONDON (MarketWatch) -- Imation (IMN: news, chart, profile) said it's revising its third-quarter earnings higher by $3.8 million, or 6 cents a share, on a reversal of a charge incurred in the second-quarter 2007 related to a terminated employment agreement covering anticipated stock based compensation and medical costs for the company's former Chairman and CEO, who had been on long term disability. The former executive passed away on Nov. 5th prior to the filing of the Form 10-Q, which necessitated adjustment to previously reported results. The company earned $16.3 million, or 24 cents a share, during the quarter, and the firm sees earnings per share between 92 cents and $1.02 on revenue of $2 billion to $2.05 billion.
Premier Foods sales for 4 months through October up 3%(2:33 am ET)
TEL AVIV (MarketWatch) -- Premier Foods, (PRRFF: news, chart, profile) (UK:PFD: news, chart, profile) the St. Albans, U.K., foods company, reported that for the four months through October, core sales and adjusted sales rose 3%. The adjustd sales reflect the acquisitions of Campbell's in August 2006 and RHM in March 2007. Sales in culinary brands rose 3% in the period. Sales in the bread-bakeries unit "were moderately ahead" of those in the year-earlier period as price increases offset lower volume, Premier said. The company affirmed its outlook for the full year.
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.