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Wednesday, Dec. 19
3Com reports loss of $35.6 million(4:45 pm ET)
SAN FRANCISCO (MarketWatch) -- 3Com Corp. (COMS: news, chart, profile) on Wednesday reported a fiscal second-quarter loss of $35.6 million, or 9 cents a share, compared to losing $3.5 million, or a penny a share, in the same period a year ago. The networking equipment company said its sales slipped to $317.8 million from last year's $333 million. 3Com said its loss ballooned due to corporate acquisition charges. Excluding those charges, 3Com would have earned $13 million, or 3 cents a share. By that measure, analysts surveyed by Thomson Financial had forecast 3Com to earn 2 cents a share on $327 million in sales.
Accenture quarterly net rises 34%; firm lifts forecast(4:30 pm ET)
SAN FRANCISCO (MarketWatch) -- Accenture Ltd. (ACN: news, chart, profile) reported a 34% increase in fiscal first-quarter net income late Wednesday and lifted its full-year profit forecast. Net income came in at $381 million in the first quarter vs. $284 million a year earlier. Earnings per share was 60 cents vs. 46 cents. Net revenue climbed 19% to $5.67 billion, the consulting and outsourcing firm reported. Accenture raised its full-year earnings-per-share forecast by 15 cents to a range of $2.36 to $2.41.
Healthways first-quarter profit dips; sales climb(4:21 pm ET)
LOS ANGELES (MarketWatch) -- Healthways Inc. (HWAY: news, chart, profile) said Wednesday that first-quarter net income was $11.2 million, or 30 cents a share, down from the $11.8 million, or 32 cents a share, for the same period a year ago. Reporting after the close, the Nashville, Tenn.-based provider of health-care solutions said sales were $175.8 million, up 50.2% from the $117.1 million reported last year. Analysts polled by Thomson Financial had expected the company to report earnings of 28 cents a share on sales of $177 million. Healthways said it expects 2008 earnings of $1.77 to $1.86 a share on sales of $782 million to $815 million. Analysts expect the company to earn $1.80 a share on sales of $796 million.
Activision raises forecast for December quarter(4:17 pm ET)
SAN FRANCISCO (MarketWatch) -- Activision Inc. said Wednesday afternoon that it is raising its forecast for the December quarter, citing strong sales of its slate of video game titles for the holiday season. In a statement, Activision (ATVI: news, chart, profile) said it was lifting its revenue forecast for its third fiscal quarter to $1.375 billion compared to its previous forecast of $1.225 billion. The company now expects earnings of 76 cents a share, compared to its previous target of 66 cents a share. Activision is the publisher of popular video game franchises such as "Guitar Hero" and "Call of Duty."
Paychex sees earnigns rise 11% in third quarter(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- Paychex Inc. (PAYX: news, chart, profile) saw earnings climb 11% for the second fiscal quarter ended Nov. 30. After Wednesday's closing bell, the payroll processing company reported earnings of $147.1 million, or 40 cents a share, compared to earnings of $132.7 million, or 35 cents a share, for the same period last year. Revenue grew 12% to $507.8 million. Analysts were expecting earnings of 39 cents a share on revneue of $504.9 million, according to Thomson Financial.
Oracle beats estimates with strong profit, sales gains(4:07 pm ET)
SAN FRANCISCO (MarketWatch) - Oracle Corp. said Wednesday its fiscal second-quarter profit jumped 34%, amid strong sales of the company's business software. Oracle (ORCL: news, chart, profile) said net income for the period ended in November rose to $1.3 billion, or 25 cents a share, from $967 million, or 18 cents a share in the same period a year earlier. Meanwhile revenue rose to $5.3 billion from $4.16 billion. Excluding special items, Oracle said earnings for the quarter were 31 cents a share. Analysts polled by Thomson Financial had been estimating Oracle would post earnings of 27 cents a share, on $5.04 billion in revenue. Oracle said sales of new software license sales grew 38% over the period a year earlier.
Take-Two, Palm lead early tech sector trading action(9:40 am ET)
SAN FRANCISCO (MarketWatch) -- Technology stocks put in a mixed early performance Wednesday, with Take-Two Interactive Software Inc. (TTWO: news, chart, profile) and Palm Inc. (PALM: news, chart, profile) highlighting the sector's action. Take-Two shares rose 92 cents, or more than 5%, to $18.97 following its upbeat fourth-quarter report, which it delivered late Monday. Palm also reported results after Monday's market close, but its shares fell 56 cents, or more than 9%, to $5.36, after the company gave a weaker-than-expected earnings forecast. The tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) fell 4.5 points to 2,591.
Commercial Metals 1st-quarter net off 19%, sales off 12%(9:36 am ET)
TEL AVIV (MarketWatch) -- Commercial Metals Co., (CMC: news, chart, profile) the Irving, Texas, producer and recycler of steel and metal products, reported that fiscal first-quarter earnings fell 19% on 12% higher sales. For the quarter ended Nov. 30, net income fell to $69.2 million, or 57 cents a share, from $85.4 million, or 71 cents, in the year-earlier period. Earnings from continuing operations were 54 cents against 75 cents. Sales reached $2.12 billion from $1.89 billion. A survey of analysts by Thomson Financial produced consensus estimates of 62 cents of profit on $2.23 billion of revenue. Profitability dropped at a Poland mill and startup costs in Croatia also hurt, CMC said. The company estimates second-quarter net at 50 cents to 60 cents against 54 cents a year earlier. Thomson's survey is looking for 63 cents.
Morgan Stanley gets $5 bln capital infusion(8:01 am ET)
BOSTON (MarketWatch) -- Morgan Stanley (MS: news, chart, profile) Wednesday said it has entered into an agreement with China Investment Corp. to issue new capital of about $5 billion through equity units with mandatory conversion into common stock. China Investment Corp.'s total passive ownership in Morgan Stanley common shares, including the conversion of the equity units, will be 9.9% or less of total shares outstanding, the company said.
Mack says Morgan Stanley write-down 'deeply disappointing'(7:46 am ET)
BOSTON (MarketWatch) -- Morgan Stanley (MS: news, chart, profile) Chief Executive John Mack said the $9.4 billion mortgage-related write-down the company took in the fourth quarter is "deeply disappointing." In a statement, the CEO said he plans not to accept a bonus for 2007.
Morgan Stanley books additional $5.7 bln mortgage write-down(7:39 am ET)
BOSTON (MarketWatch) -- Morgan Stanley (MS: news, chart, profile) before Wednesday's opening bell said its fourth-quarter results reflect an additional $5.7 billion of mortgage-related write-downs in November. Including the $3.7 billion write-down as of Oct. 31, which was announced on Nov. 7, the total fourth-quarter mark-down on mortgage exposure was about $9.4 billion. The company reported a fourth-quarter loss from continuing operations of $3.59 billion, or $3.61 a share.
PPL seeks license for third Northeast Pa. nuke unit(7:20 am ET)
LONDON (MarketWatch) -- PPL Corp. (PPL: news, chart, profile) said one of its subsidiaries will ask the U.S. Nuclear Regulatory Commission to approve a combined license to construct and operate a new generating unit near the Susquehanna nuclear power plant near Berwick, Pa. PPL has contracted with an affiliate of UniStar Nuclear Energy, a joint venture of Constellation Energy (CEG: news, chart, profile) and EDF (FR:EDF: news, chart, profile) , to prepare the application, which will be based on Areva's (FR:004524: news, chart, profile) U.S. Evolutionary Power Reactor design. PPL does not expect the cost of the licensing effort to impact its forecasts of earnings from ongoing operations.
Level 3 to sell part of Vyvx business for $129 million(7:15 am ET)
NEW YORK (MarketWatch) - Level 3 Communications Inc. (LVLT: news, chart, profile) on Wednesday said it will sell the advertising distribution business of Vyvx LLC to DG FastChannel Inc. (DGIT: news, chart, profile) . Vyvx is a wholly owned subsidiary of Level 3. Under the terms of the deal, Level 3 will receive $129 million payable in cash. The purchase price is subject to customary working capital and certain other post-closing adjustments. The sale is subject to regulatory approvals as well as certain other customary closing conditions, and is expected to close in the first quarter of 2008. Level 3 will retain ownership of Vyvx and its core broadcast business including all of the Vyvx Services Broadcast Business' content distribution capabilities.
Zions to take $94 million hit on CDO write-down(7:00 am ET)
LONDON (MarketWatch) -- Utah-based Zions Bancorp (ZION: news, chart, profile) said in a filing to the Securities and Exchange Commission it's taking a charge of $94 million before tax after significant declines in dealer price quotes in seven of 12 REIT trust preferred CDO securities. The hit amounts to 52 cents after tax. The decision to deem these securities other-than-temporarily-impaired was based on a specific analysis of each security, including an evaluation of the underlying collateral using information and industry knowledge available to Zions. At Sept. 30, the seven securities now deemed OTTI had a total book value of $116.8 million and an aggregate fair value of $58.5 million. As of Dec. 18, it's writing these seven securities down to current fair value of $22.7 million. Zions separately will record a 2.2 cents expense in the fourth quarter for its share of the Visa antitrust settlement.
Park Electrochemical posts lower quarterly net profit, sales(6:42 am ET)
WASHINGTON (MarketWatch) -- Park Electrochemical Corp. (PKE: news, chart, profile) reported net earnings of $8.8 million, or 43 cents a share, for the third quarter ended Nov. 25, down from $9.5 million, or 47 cents, earned in the year-earlier period. Quarterly sales dropped to $63.7 million from the prior year's $68.2 million. The Melville, N.Y.-based advanced-materials company noted that it incurred some $500,000 in out-of-pocket costs tied to due-diligence efforts in preparation for its participation in the bidding for certain Columbia Aircraft Manufacturing Corp. business assets. Two analysts who follow Park Electrochemical had, on average, been looking for earnings of 46 cents a share for the latest quarter, according to estimates compiled by Thomson Financial.
AAR 2nd-quarter earnings rose 30% on 27% hgiher sales(6:21 am ET)
TEL AVIV (MarketWatch) -- AAR Corp., (AIR: news, chart, profile) the Wood Dale, Ill., provider of products and services for aerospace and defense, reported that fiscal second-quarter earnings rose 30% on 27% higher sales. For the quarter ended Nov. 30, net income reached $17.9 million, or 42 cents a share, from $13.8 million, or 33 cents, in the year-earlier period. Sales rose to $310.6 million from $244.2 million. A survey of analysts by Thomson Financial produced consensus estimates of 45 cents of profit on $325 million of revenue. "The demand from airlines for outsourced technical services and additional aircraft lift is strong, as are the opportunities to support the U.S. Department of Defense and its allies," Chairman and Chief Executive Officer David P. Storch said in a Securities and Exchange Commission Form 8-K dated Wednesday. Gross-profit margin widened to 19.4% in the quarter from 18.8% a year earlier.
Icon stands by 2007 outlook, sets financial targets for 2008(6:14 am ET)
WASHINGTON (MarketWatch) -- Icon plc (ICLR: news, chart, profile) reaffirmed its profit outlook for 2007. The Ireland-based company, which provides outsourced development services to the pharmaceutical, biotechnology and medical device industries, pegged full-year earnings in a range of $1.82 to $1.85 a share and forecast revenue at $615 million to $625 million. Analysts, on average, are looking for earnings of $1.85 a share on revenue of $619 million, according to estimates compiled by Thomson Financial. Icon also set forth its 2008 financial targets, estimating earnings of $2.27 to $2.36 a share as well as revenue of $750 million to $770 million. The Thomson Financial-derived average estimates stand at $2.31 a share and $765 million, respectively.
IMI sees revenue growth of 6% to 7%(2:42 am ET)
LONDON (MarketWatch) -- U.K. engineering group IMI Plc (UK:IMI: news, chart, profile) said Wednesday that it expects organic revenue growth for the year excluding the impact of exchange rates to be in the range of 6% to 7%. The group said the power, oil and gas markets remain buoyant, leading to revenue growth of around 15% for the year. The group said its beverage dispensing business continues to show signs of improvement, with revenue expected to grow by 5% to 6%. An investigation into possible irregular payments at a U.S. unit, which the firm announced in August, should be complete by the end of the first quarter of 2008. The investigation will reduce the anticipated revenue growth for the company by around two percentage points in 2008. Order intake, however, remains positive, IMI said.
Sports Direct profit down 73%(2:31 am ET)
LONDON (MarketWatch) -- U.K. sporting goods retailer Sports Direct International (UK:SPD: news, chart, profile) said Wednesday that its profit for the six months ended Oct. 28 fell 73% to 13 million pounds ($26.2 million) as revenue fell 7.1% to 668.1 million pounds. The company said the results reflect a very challenging U.K. market and tough comparisons against the same period last year, which included the soccer World Cup. In November the company warned that the England national team's failure to qualify for the European Championship in 2008 would hit earnings. Sports Direct said Wednesday it expects a roughly 50-million-pound impact on earnings before interest, taxes, depreciation and amortization, spread between fiscal 2008 and fiscal 2009.
Whitehall Jewelers narrows loss, is seeking financing(2:13 am ET)
TEL AVIV (MarketWatch) -- Whitehall Jewelers Holdings Inc., (WHJH: news, chart, profile) the Chicago retailer, narrowed its third-quarter net loss and also said it is "actively seeking financing" to meet working-capital and capital-spending needs for the rest of the fiscal year. For the quarter ended Nov. 3, Whitehall posted a loss of $16.4 million, or 41 cents a share, compared with $21.8 million, or 86 cents, in the year-earlier period. Net sales fell 8.9% to $44.5 million from $48.8 million. The narrower gap reflects lower selling, general and administrative expense and more efficient operations, Whitehall said in a statement on Tuesday. The company said it may not have enough funds -- from credit lines, cash on hand, cash flow and cost cuts -- to meet its needs for the rest of the fiscal year. It's agreed on a $25 million term loan arranged by Prentice Capital Management of New York. And Whitehall said it would close certain underperforming stores. At Nov. 3, Whitehall operated 314 stores under the Whitehall and Lundstrom brands.
Exar cuts 3rd-quarter revenue estimate(1:32 am ET)
TEL AVIV (MarketWatch) -- Exar Corp., (EXAR: news, chart, profile) the Fremont, Calif., producer of solutions to connect portable devices, networks, industrial equipment and more, cut its estimate of revenue for the fiscal third quarter ending Dec. 30. The company now sees revenue of $22.5 million to $23.5 million, compared with up low-single-digits percent from the September quarter's $36.9 million. The estimate excludes $11 million of revenue it will not report because of certain accounting changes. The estimate also reflects lower-than-anticipated orders for its power and interface products" and wafer-fabrication delays at a supplier in China, Exar said. Exar said that its acquisition of Sipex, which closed Aug. 25, should begin adding to profit in the September 2008 quarter. Meantime, the company is continuing to buy back its stock.
Tuesday, Dec. 18
AAR Corp. profit boosted by commercial aviation demand(5:41 pm ET)
SAN FRANCISCO (MarketWatch) -- AAR Corp. (AIR: news, chart, profile) on Tuesday reported a second-quarter profit of $17.9 million, or 42 cents a share, up from $13.8 million, or 33 cents a share, a year ago. Revenue grew to $310.6 million, up from $244.3 million a year earlier. Analysts polled by Thomson Financial had expected the Wood Dale, Ill.-based aerospace products leasing group to post a profit, on average, of 40 cents a share with revenue of $308.6 million.
ACE Limited issues 2008 outlook, details portfolio(5:28 pm ET)
SAN FRANCISCO (MarketWatch) -- ACE Limited (ACE: news, chart, profile) on Tuesday said it expects to post a 2008 profit in a range between $7.00 and $7.50 a share. Property and casualty net earned premiums are expected to drop 3% to 5%. The insurance company forecast $400 million in pre-tax catastrophe losses to be included in its earnings estimates. ACE said it has reduced its subprime asset-backed holdings to $137 million from $257 million. The company also said is high-yield corporate bond holdings amount to $2.6 billion, or 6.5%, of the total fixed income portfolio.
Allstate says California fires mean up to $335M in losses(5:19 pm ET)
SAN FRANCISCO (MarketWatch) -- Insurance company Allstate Corp. said Tuesday that the wildfires that blanketed southern California in October have resulted in over 7,000 claims, and up to $335 million in "catastrophe losses" to be recorded in the fourth quarter of 2007. Allstate (ALL: news, chart, profile) said in a prepared release that it declared a total of 10 catastrophes in October and November, including ice storms in the midwest. Including the California wildfires, the total catastrophe losses for those two months were between $360 million and $400 million, or roughly $100 million higher than the total catastrophe losses in the company's fiscal fourth quarter a year earlier. Allstate is expected to post its fourth-quarter financial results in late January.
Palm warns of 'tight component supply' on Centro line(5:05 pm ET)
SAN FRANCISCO (MarketWatch) -- Palm Inc. told analysts Tuesday that it expects a "tight component supply" that could strain shipments of its smartphones for the current third fiscal quarter. In a conference call to discuss the company's second-quarter results, Palm officers said the component supply situation is "mostly" centered on its popular Centro device, a $99 smartphone the company sells through an exclusive deal with carrier Sprint.
Nordson posts higher net income (4:53 pm ET)
SAN FRANCISCO (MarketWatch) -- Nordson Corp. (NDSN: news, chart, profile) reported late Tuesday fourth-quarter net earnings rose to $29.6 million, or 87 cents a share, from $27.8 million, or 82 cents, a year ago. Revenue for the three months ended Oct. 31 rose 20% to $290.8 million from $241.5 million. Analysts polled by Thomson Financial predicted the Westlake, Ohio-based maker of adhesives and sealant application systems would earn 80 cents a share on $283.4 million in revenue. The company predicted sales in the first quarter of fiscal 2008 would grow from 21% to 25% from a year ago, putting per-share earnings for the quarter in a range of 55 cents to 64 cents. Shares of Nordson rose 1.8% to close at $51.97 ahead of the report.
Darden profit falls on acquisition costs(4:46 pm ET)
CHICAGO (MarketWatch) -- An acquisition dragged down Darden Restaurants fiscal second quarter profit even as business remained brisk at its flagship Olive Garden chain, the company said Tuesday. Darden earned $43.5 million, or 30 cents a share on the period - down sharply from the $61.7 million, or 41 cents, of the year-ago period. But the company estimates its acquisition of RARE Hospitality and other items nipped 12 cents a share off its bottom line. Sales came in at $1.52 billion, up 17%, with same-store sales at Olive Garden up 3.2%. The average estimate of analysts polled by Thomson Financial had been for Darden to earn 50 cents a share on revenue of $1.54 billion. Looking ahead, Darden (DRI: news, chart, profile) said it still expects combined U.S. same-store sales growth for the full fiscal year to be between 2% and 4% with total sales growth of 19% to 20%. But with commodity cost pressures and acquisition-related expenses, it sees earnings per share growth of just 2% to 4%.
Take-Two nearly cuts quarterly loss in half(4:08 pm ET)
SAN FRANCISCO (MarketWatch) -- Take-Two Interactive Software Inc. (TTWO: news, chart, profile) on Tuesday reported a fourth-quarter loss of $7.1 million, or 10 cents a share, on revenue of $292.6 million. During the same period a year ago, the video game publisher lost $14 million, or 20 cents a share, on $266.6 million in sales. The company said its results were helped by strong sales of its "BioShock" and "NBA 2K8" titles, as well as prior versions of its "Grand Theft Auto" video game franchise titles.
Palm swings to loss on drop in sales(4:08 pm ET)
SAN FRANCISCO (MarketWatch) -- Palm Inc. swung to a net loss for its second fiscal quarter ended Nov. 30. The maker of wireless smartphone devices (PALM: news, chart, profile) reported a net loss of $9.6 million, or 9 cents a share, compared to earnings of $12.8 million, or 12 cents a share, for the same period last year. The company said net loss on a non-GAAP basis, which exclude certain charges, would have been $7.8 million, or 7 cents a share. Revenue fell 11% to $349.6 million. Analysts were expecting a loss of 8 cents a share on revenue of $350.3 million, according to consensus estimates from Thomson Financial. The results were roughly in line with the company's pre-announcement two weeks ago.
Goldman's 'horrible' Nov. points to more credit losses: CNBC(12:22 pm ET)
BOSTON (MarketWatch) -- Despite fourth-quarter profit that topped Wall Street's expectations, Goldman Sachs Group Inc. (GS: news, chart, profile) suffered through a "horrible" November, in a signal that the credit crunch may continue, CNBC reported Tuesday, citing an unnamed Goldman senior executive. Additionally, the business channel reported that Goldman recently endured the worst two weeks in the company's history. The stock was off nearly 5% in midday trades.