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Monday, Dec. 17
Adobe beats estimates with strong profit, sales growth(4:13 pm ET)
SAN FRANCISCO (MarketWatch) - Adobe Systems Inc. said Monday its fourth-quarter profit and sales beat analysts' expectations. San Jose, Calif.-based Adobe (ADBE: news, chart, profile) said net income for the period ended in November rose to $222.2 million, or 38 cents a share, from $183.2 million, or 30 cents a share in the same period a year earlier. Meanwhile revenue rose 34% to $911.2 million. Excluding certain items, design and publishing software maker Adobe said fourth quarter earnings were 49 cents a share. Analysts had estimated Adobe would post earnings of 48 cents a share for the quarter, and $887 million in revenue, according to Thomson Financial.
Virgin America posts loss its first quarter in business(12:55 pm ET)
SAN FRANCISCO (MarketWatch) -- Virgin America posted a $34.8 million loss in the third quarter, its first quarter operating in the United States, according to financial statistics released Monday by the Bureau of Transportation Statistics. The privately owned start-up carrier, which is based near San Francisco International Airport, started flying in August. It made $16.16 million in operating revenues in the period ended Sept. 30. Its operating expenses totalled $51.16 million, said the U.S. agency. With its focus on cross-country flights, Virgin America has increased competition with other carriers big in the transcontinental market, including JetBlue Airways Group. (JBLU: news, chart, profile)
National City sees $700 mln quarterly loan loss(11:14 am ET)
BOSTON (MarketWatch) -- National City Corp. (NCC: news, chart, profile) in a Securities and Exchange Commission filing Monday said it expects the total provision for loan losses for the fourth quarter will be in the area of $700 million. "The mortgage business continues to be under stress," the company said, adding that net interest income is likely to be "flat to down slightly" for the fourth quarter compared with the third quarter. National City in the filing said it incurred mortgage-related charges of about $200 million in October and November. The stock rose nearly 4% in midday trades.
Ethanol stocks rise for second straight day(11:00 am ET)
NEW YORK (MarketWatch) -- Ethanol stocks moved up for the second straight day after a bill passed the U.S. senate late Thursday that would boost requirements for biofuel. Aventine Renewable (AVR: news, chart, profile) rose 4.3% to $11.93. VeraSun (VSE: news, chart, profile) edged up 2 cents to $14.80. Pacific Ethanol (PEIX: news, chart, profile) rose 12% tp $7.39. The rise came even as the World Trade Center launched a probe into U.S. farm subsidies, which include payments for ethanol production.
Marshall & Ilsley books $235 mln portfolio loss; Q4 charges(8:43 am ET)
NEW YORK (MarketWatch) -- Marshall & Isley (MI: news, chart, profile) on Monday said it's booking a one-time, after-tax charge of $48 million in connection with the retirement of $1 billion of Puttable Reset Securities. M&I expects to recover this charge through lower financing costs over the next three years. It also expects fourth-quarter charge-offs of up to $195 million and a loan loss provision of up to $235 million for its loan portfolio. "Despite these challenging market conditions, we are fortunate to have one of the strongest capital positions in the industry," said Mark Furlong, president and CEO, Marshall & Ilsley Corporation. "We believe we are well positioned to weather the downturn in the real estate market."
RBC cuts Starbucks to sector perform(8:28 am ET)
NEW YORK (MarketWatch) - RBC Capital Markets analyst Larry Miller cut his rating on Starbucks Corp. (SBUX: news, chart, profile) on Monday to sector perform from outperform after a meeting with company management. The analyst said he came away from the meeting "believing Starbucks' multiple pressure will last longer than we expected as sales weakness, EPS risk, and return compression continues." He cut his price target to $22 a share from $26 on the Seattle-based coffee-shop operator. Starbucks shares traded about 1.2% lower in Monday premarket trading after closing Friday at $21.25.
KBR sees 2008 net of $1.30-$1.60 a share(8:19 am ET)
NEW YORK (MarketWatch) -- KBR (KBR: news, chart, profile) on Monday said it expects 2008 earnings of $1.30 to $1.60 a share. Analysts surveyed by Thomson Financial forecast earnings of $1.51 a share, on average. KBR, formerly known as Kellogg Brown & Root, was spun off Halliburton (HAL: news, chart, profile) late last year.
Infonxx files $250 mln IPO (7:26 am ET)
NEW YORK (MarketWatch) -- Infonxx Inc. late Friday filed a $250 million initial public offering with underwriters Goldman Sachs (GS: news, chart, profile) , J.P. Morgan (JPM: news, chart, profile) and Bank of America Securities (BAS: news, chart, profile) . Infonxx bills itself as the largest provider of branded directory assistance services in Europe and the largest independent provider of outsourced directory assistance services in the U.S. The company has yet to determine its trading symbol or its stock exchange.
American Fin'l to buy 67% of insurer; affirms '08 view(5:29 am ET)
TEL AVIV (MarketWatch) -- American Financial Group Inc., (AFG: news, chart, profile) the Cincinnati insurer, said on Monday that it would pay $75 million for 67% of Marketform Group Ltd., a Lloyd's insurer. After the deal, Marketform's managers and staff would hold the rest of the company, which focuses on property-casualty and medical-malpractice insurance outside the U.S. American Financial expects the deal to add 3 cents a share of earnings and $150 million of gross written premiums in 2008. It sees the earnings contribution growing to 9 cents a share over the next four years. And it affirmed that for 2008, it expects to earn $3.75 to $3.95 a share from operations. A survey of analysts by Thomson Financial produced a consensus estimate of $3.74 for 2008. Subject to conditions including regulatory clearances, AFG hopes to close the deal ealry next year.
Arriva sees performance meeting expectations(2:44 am ET)
LONDON (MarketWatch) -- U.K. bus and train group Arriva (UK:ARI: news, chart, profile) said Monday that its full year performance will be in line with management expectations. In its bus division, Arriva said growth in passenger numbers helped it more than offset a rise in fuel costs. In its trains unit, Arriva said the inter-city service launched in November has made a good start, though results for the division will be hurt by significant expenditure on three rail franchise bids. For 2008, Arriva said it's taken measures to reduce the impact of any fuel price rise.
Friday, Dec. 14
Taubman Centers ups 2007 FFO, EPS forecast(8:41 am ET)
Taubman Centers, Inc. (TCO: news, chart, profile) said Friday it expects its 2007 FFO per share to be at the upper end of its previously announced range of $2.83 to $2.87 per share. Earnings per share for the year are expected to be in the range of 78 cents to 92 cents, it said. For 2008, the company said it expects earnings of 59 cents to 78 cents per share and FFO per share of $3.04 to $3.09.
Goldman profiting from mortgage mess: report(8:21 am ET)
BOSTON (MarketWatch) -- Unlike rivals that have been hammered by the subprime-mortgage debacle, Goldman Sachs Group Inc. (GS: news, chart, profile) is set to reap a windfall as a result of bets made by its mortgage department that securities backed by high-risk home loans would plunge in value, The Wall Street Journal reported Friday. The well-timed move has generated nearly $4 billion of profit for the year ended Nov. 30, the newspaper reported, citing sources familiar with Goldman Sachs' financing. The gains more than offset between $1.5 billion and $2 billion of mortgage-related losses in other parts of the company, according the report. The Journal said Goldman Sachs, which is scheduled to report quarterly results next week, is expected by Wall Street analysts to deliver annual net income in excess of $11 billion.
Quest Energy Partners targets $78 mln in 2008 capex(8:08 am ET)
NEW YORK (MarketWatch) -- Quest Energy Partners L.P. (QELP: news, chart, profile) on Friday said its board of directors OK'd a captial spending plan of $78 million for 2008. "Based on the expected production gains from our 548-well 2007 drilling program and our 325-well 2008 program, we are well positioned to generate internal distribution growth," Quest Chairman, President, and CEO Jerry Cash said. The energy partnership affirmed its 2008 distribution rate of $1.60 a unit.
Intellon IPO cuts price to $6, raises $45 mln(7:48 am ET)
NEW YORK (MarketWatch) -- Intellon (ITLN: news, chart, profile) , a designer of integrated circuits for data transfer over existing electrical wiring, priced 7.5 million shares at $6, raising $45 million in its stock market debut Friday. The company cut its price from the estimated $9-$11 range. The move comes a week after a competitor, Entropic Communications (ENTR: news, chart, profile) , cut its price to $6 a share from its $9-$11 range, IPO fund manager Renaissance Capital (IPOSX: news, chart, profile) noted. Entropic shares closed at $6.81 on Thursday.
United Business Media sees trading in line with consensus(2:23 am ET)
LONDON (MarketWatch) -- United Business Media (UK:UBM: news, chart, profile) said Friday that its overall trading performance for the second half of 2007 is in line with the market's expectations. Revenue and earnings growth accelerated in the second half of the year and UBM said November was its most profitable month in the last five years. Underlying revenue growth for the year is expected to be 6% to 7%, excluding its CPMedia unit, which is in the middle of a restructuring program. UBM earns more than half its profit in the U.S. The weak dollar will result in a roughly three million pound impact on operating profit, while performance in 2008 will continue to be influenced by the exchange rate and the U.S. economy.
PartyGaming sees trading in line with expectations(2:16 am ET)
LONDON (MarketWatch) -- PartyGaming Plc (UK:PRTY: news, chart, profile) said Friday that its financial performance in the fourth quarter to date has been in line with management's expectations and the group remains confident about its prospects for the current year.
Thursday, Dec. 13
Novell swings to a loss in fourth quarter(4:12 pm ET)
SAN FRANCISCO (MarketWatch) -- Novell Inc. (NOVL: news, chart, profile) said Thursday that it swung to a loss for the fourth fiscal quarter ended Oct. 31. The maker of Linux-based software reported a loss of $17.9 million, or 5 cents a share, compared to earnings of $19.9 million, or 5 cents a share, for the same period last year. On a non-GAAP basis, the company said it would have earned $20 million, or 6 cents a share, for the period. Revenue grew nearly 5% to $244.9 million. Analysts were expecting earnings of 4 cents a share on revenue of $242.2 million, according to Thomson Financial.
Lehman CFO says no job cuts planned for 2008: report(2:21 pm ET)
BOSTON (MarketWatch) -- Lehman Brothers Holdings Inc. (LEH: news, chart, profile) Chief Financial Officer Erin Callan said the company does not have any plans to lay off workers next year, according to a published report Thursday. If Lehman does pull back in some businesses, it will attempt to reshuffle employees rather than reducing headcount, the CFO told Reuters. Lehman Brothers on Thursday reported an 11% drop in fourth-quarter profit from a year earlier, but the earnings beat consensus estimates. The roughly $830 million fixed-income net write-down was offset in part by hedges, while the company posted strong results in its equities and international businesses.
Lehman Brothers Q4 earnings $1.54 per share vs $1.72 (8:54 am ET)
Lehman Brothers Holdings Inc.'s (LEH: news, chart, profile) fiscal fourth-quarter net income fell 12% to $886 million, or $1.54 a share, from $1 billion, or $1.72 a share, a year earlier, the company said Thursday. For the quarter ended Nov. 30, the New York investment bank said net revenue, representing total revenue less interest expense, dropped to $4.4 billion from $4.5 billion. For the year, however, it said net revenue, net income and earnings per share were at record levels. For the quarter, Capital Markets net revenue declined 10% to $2.7 billion. Fixed Income Capital Markets net revenue dropped 60% to $860 million, due to negative valuation adjustments on trading assets, principally in the firm's Securitized Products and Real Estate businesses. Equities Capital Markets net revenue more than doubled to $1.9 billion. Investment Banking net revenue slipped 3% to $831 million. On average, analysts polled by Thomson Financial expected earnings of $1.42 a share on revenue of $4.26 billion.
H&R Block may issue more debt or equity: filing(8:42 am ET)
BOSTON (MarketWatch) -- H&R Block Inc. (HRB: news, chart, profile) in a Securities and Exchange Commission filing Thursday said further turmoil in the credit markets or a violation of covenants under its unsecured committed lines of credit could affect its access to funding. "In addition, it is possible that the borrowing capacity under our [committed lines of credit] may not be sufficient to meet our financing needs," H&R Block said. "To meet our future financing needs we may be required issue additional debt or equity securities." The company said the termination of mortgage-lending activities at Option One Mortgage Corp. is expected to result in a pretax restructuring charge of $74.8 million. H&R Block said it saw a net loss of $1.55 a share for the quarter ended Oct. 31.
Honeywell sees 2008 as 'another great year'(7:11 am ET)
NEW YORK (MarketWatch) -- Honeywell (HON: news, chart, profile) on Thursday said it expects 2008 sales of $36.1 billion to $36.7 billion and earnings of $3.65-$3.80 a share. Analysts surveyed by Thomson financial forecast earnings of $3.67 a share and revenue of $36.35 billion, on average. "While there is greater uncertainty in the outlook for the global economy in 2008, we're confident in our ability to deliver another great year," the company said. "Our businesses are well positioned globally and we expect that favorable macro trends will continue, helping us to build on our track record of delivering consistent strong financial performance."
Pepsi Bottling lifts '07 view, offers outlook for '08-'10(7:04 am ET)
TEL AVIV (MarketWatch) -- Pepsi Bottling Group (PBG: news, chart, profile) of Somers N.Y., the world's largest producer of PepsiCo (PEP: news, chart, profile) drinks, expects earnings per share to rise in the high-single-digits percent and revenue to rise 6% in 2008 through 2010. In a statement on Thursday, ahead of an investor presentation in New York, the company raised the top and bottom of its estimated range of earnings per share for 2007 by 2 cents, to $2.17 to $2.20. A survey of analysts by Thomson Financial produced a consensus estimate of $2.17 of earnings for 2007. PBG affirmed that it expects earnings from operations to rise 10% to 11% for 2007. For 2008, it expects adjusted earnings of $2.30 to $2.38 a share. In 2008 through 2010, the company expects to sell 3% more drinks a year; revenue per case should rise 3% a year as operating profit rises 5% to 7%, PBG estimated. The cost to make each case of its products should rise 5% to 6% in 2008, Pepsi Bottling estimated. (Adds dropped word in second sentence.)
Genesee & Wyoming traffic falls 5.5%(6:50 am ET)
LONDON (MarketWatch) -- Railroad operator Genesee & Wyoming Inc. (GWR: news, chart, profile) said Thursday that traffic fell 5.5% in November to 62,435 carloads. The drop was largely due to the discontinuation of haulage traffic on its Meridian & Bigbee Railroad.
Jos. A. Bank quarterly net earnings climb 27%(6:13 am ET)
LONDON (MarketWatch) -- Retailer Jos. A. Bank. Clothiers Inc (JOSB: news, chart, profile) said third-quarter net income rose 27% to $7.1 million, or 38 cents a share, from $5.5 million, or 30 cents a share, a year earlier. Sales climbed 10% to $131 million. The average forecast of analysts polled by Thomson Financial was for earnings of 33 cents a share and sales of $131 million.
Costco 1st-quarter net rose 11%, sales up 12%(4:25 am ET)
TEL AVIV (MarketWatch) -- Costco Wholesale Corp., (COST: news, chart, profile) the Issaquah, Wash., warehouse retailer, reported fiscal first-quarter net income rose 11%, meeting analysts' expectations, on 12% higher sales and 8% higher same-store sales. Earnings for the quarter ended Nov. 25 reached $262 million, or 59 cents a share, from $236.9 million, or 51 cents, in the year-earlier period. Sales reached $15.47 billion from $13.85 billion. Total revenue, including membership fees, also rose 12%, to $15.81 billion. Same-store sales, those from outlets open at least a year to eliminate the effects of acquisitions and divestitures, rose 8% companywide. That included increases of 5% in the U.S. and 17% internationally. Excluding gasoline-price rises, U.S. same-store sales rose 4%.
Amec pretax to be at upper end of forecasts(2:52 am ET)
LONDON (MarketWatch) -- U.K. engineering group Amec (UK:AMEC: news, chart, profile) said 2007 profit from continuing operations before tax and amortization will be at the upper end of the consensus range from 111 million pounds to 122 million pounds. Energy, power and process end markets continue to be strong, Amec said, and it set new divisional margin targets while keeping group targets of 6% in 2008 and 8% in 2010.
Rexam underlying trading on track; weak dollar to hit profit(2:34 am ET)
LONDON (MarketWatch) -- U.K. containers and packaging group Rexam Plc (UK:REX: news, chart, profile) said Thursday that it expects underlying trading in the second half of the year to be broadly in line with it expectations excluding the impact of currency moves and a one-off inventory adjustment on the acquisition of O-I Plastics. Rexam said its European and South American beverage can business have seen strong volume growth, partly mitigated by the strengthening Brazilian Real against the dollar. The North American business is still recovering from the effects of a strike in the first half of the year. In addition to negative currency effects, rising oil prices have increased energy and freight costs, which will likely continue into 2008, the group said.
HBOS sees underlying profit meeting expectations(2:25 am ET)
LONDON (MarketWatch) -- U.K. banking group HBOS Plc (UK:HBOS: news, chart, profile) said Thursday that its underlying earnings per share for the year are set to meet market expectations of 106 pence. This expected outcome is after taking a negative fair value adjustment of 180 million pounds to traded investment securities, representing 3.5 pence a share in underlying earnings. Customer deposit growth and wholesale funding supply during the liquidity crunch has been strong, though a rise in the cost of funding will result in a slightly lower group margin for the year than previously guided. Mortgage lending increased in the second half and HBOS said it expects to have a net lending market share of 17% to 18%. The group's total exposure to subprime has fallen to 430 million pounds from 550 million pounds at the end of August. HBOS said it expects global credit market dislocation to continue in the short-term.
Harry Winston Diamond posts loss on strong Canada dollar(2:05 am ET)
TEL AVIV (MarketWatch) -- Harry Winston Diamond Corp., (HWD: news, chart, profile) the Toronto diamond miner and retailer, swung to a fiscal third-quarter loss from a year-earlier profit, hurt by a strengthened Canadian dollar. Earnings from operations rose 79% on 22% higher sales. For the quarter ended Oct. 31, the loss was US$7.4 million, or 13 cents a share, against earnings of $18.8 mimllion, or 32 cents, in the year-earlier period. Revenue reached $176.5 million from $145.2 million. Excluding the currency-exchange loss of 70 cents a share, earnings from operations were 57 cents. The Canadian dollar reached $1.06 against the U.S. dollar in the fiscal third quarter, up 13% from the second period. HWD said. Currently, the U.S. dollar and Canadian dollar are trading at close to 1 for 1, "which would support a currency gain in the fourth quarter should this rate continue to [the] Jan. 31, 2008, year end," Chief Financial Officer Alice Murphy said in a statement. Operating earnings from production and sales of rough diamonds rose 72% to $70 million while at the retail operations, the loss widened to $3.6 million from $3.5 million a year earlier.
Wednesday, Dec. 12
EnCana rallies as it doubles dividend, ups capital spending (10:09 am ET)
NEW YORK (MarketWatch) -- Shares of EnCana (ECA: news, chart, profile) jumped 4% to $67.77 after the Canadian natural gas and oil sands company said it would double its annual dividend and boost capital spending by 13% to $6.9 billion. EnCana will pay an annual dividend of $1.60, up from $0.80, upon approval from the board beginning in 2008.