Earning Plays

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Monday, March 3
Knight Vinke: Much of HSBC net rise from one-offs, FX(12:08 pm ET)
LONDON (MarketWatch) -- Activist investor Knight Vinke said on Monday that much of HSBC Holdings's (HBC: news, chart, profile) (UK:HSBA: news, chart, profile) earnings growth came from "one-offs, acquisitions and currency changes rather than from underlying improvements in operating performance." But it added that HSBC has "gone a long way" to address concerns about corporate governance and board independence. The problems at its HFC arm are worse than thought, Knight Vinke added, and it said the U.S. division can't support the $150 billion in debt on its balance sheet.
Sunrise Senior Living reports preliminary Q4 results(9:32 am ET)
NEW YORK (MarketWatch) - Sunrise Senior Living Inc. (SRZ: news, chart, profile) on Monday reported some preliminary financial results for its quarter ended Dec. 31. McClean, Va.-based Sunrise said revenue under management rose 7% to $617 million in the fourth quarter from $576 million in the prior-year period. Fourth-quarter same-community revenue increased 5.9%. The company said it expects the impact of previously disclosed restatement issues will reduce net income for all affected periods, including 1996 through 2005, by about $140 million, excluding stock option adjustments and revenue recognition related to its Greystone subsidiary.
Hormel Foods sets sales target(7:50 am ET)
NEW YORK (MarketWatch) -- Hormel Foods Corp. (HRL: news, chart, profile) said Monday that by 2012, it intends to achieve $2 billion of sales from products created since 2000. Shares of the Austin, Minn., processed food company closed Friday down $1.06, or 2.5%, at $40.86.
Bunge corrects 2 figures in 2007 reports; no effect on net(6:43 am ET)
TEL AVIV (MarketWatch) -- Bunge Ltd., (BG: news, chart, profile) the White Plains, N.Y., agribusiness and food company, said that in its annual report, filed Monday with the Securities and Exchange Commission, it corrected 2007 net sales and cost of goods sold, which were overstated in its 2007 preliminary report. The corrections total about $7 billion for the two figures and do not affect segment operating profit, net income, or earnings per share, Bunge said. The company said that the errors reflected "material weaknesses" in its internal financial-reporting controls and that it would remedy the weaknesses.
Polypore buys a company and lifts full-year profit estimate(6:23 am ET)
TEL AVIV (MarketWatch) -- Polypore International Inc., (PPO: news, chart, profile) the Charlotte, N.C., filter producer, bought a producer of battery-separator membranes and, as a result of the deal, increased its estimate of its earnings for fiscal 2009, ending Jan. 3. Polypore acquired Microporous Holding Corp. of Piney Flats, Tenn., from Industrial Growth Partners II, the San Francisco private-equity firm, and other holders. Polypore said in a statement on Monday that the deal is valued at $76 million, including the purchase price and assumption of debt. Polypore now expects to earn 90 cents to $1.01 a share in fiscal 2009 on sales of $580 million to $605 million. A survey of four analysts by FactSet Research produced a consensus estimate of 87 cents a share for the year.
HSBC could sell portfolios, committed to rebuilding U.S. arm(6:18 am ET)
LONDON (MarketWatch) -- Michael Geoghegan, CEO of HSBC Holdings (UK:HSBA: news, chart, profile) (HBC: news, chart, profile) (HK:5: news, chart, profile) on Monday told an analyst conference the bank would consider selling portfolio's of U.S. debt, but only if it could get a sensible price. But he also effectively dismissed calls from some investors for it to exit its U.S. operations. Geoghegan said the bank wants to protect its U.S. franchise because, when the subprime crisis settles down, there will be fewer competitors, creating some opportunities for growth.
HSBC profit climbs 21%, loan impairment charges soar(3:35 am ET)
LONDON (MarketWatch) -- HSBC Holdings (UK:HSBA: news, chart, profile) (HBC: news, chart, profile) (HK:5: news, chart, profile) said Monday that its net profit for 2007 rose 21% to $19.13 billion even after profits in North America were virtually wiped out by rising bad debt charges. The result came in ahead of market expectations as the bank reported strong profit growth in other regions, including 42% pretax profit growth in Hong Kong to $7.34 billion. In the U.S., pretax profit fell over 98% to $91 million as total impairment charges for the group rose 63% to $17.24 billion. The bank also raised its total dividend payout for the year by 11.1% to 90 cents a share and named four new appointments to its board of directors.
Arcadis 4th-quarter net up 22%, revenue up 24%(2:27 am ET)
TEL AVIV (MarketWatch) -- Arcadis NV, (ARCAY: news, chart, profile) (NL:35855: news, chart, profile) the Arnhem, Netherlands, engineering firm, reported fourth-quarter net income up 22% on 24% higher gross revenue. Net reached 17.8 million euros, or 0.88 euro a share, from 14.6 million, or 0.72, in the year-earlier period. Gross revenue rose to 422.3 million euros from 341.5 million. Net revenue, the part of revenue produced by Arcadis's staff, rose 21%. Of that figure, 16% was derived from acquisitions. Currency fluctuations knocked 4% off net revenue. Arcadis proposed to lift the dividend for 2007 to 1.23 euros a share from the 2006 payout of 1 euro a share. It has boosted its goal of growth in earnings per share, excluding currency effects, now targeting a rise of 15% a year.
Sunday, March 2
Takefuji Corp. says subprime losses may hit $290 million(8:49 pm ET)
HONG KONG (MarketWatch) -- Japanese consumer finance firm Takefuji Corp. (JP:8564: news, chart, profile) said Monday it may report up to 30 billion yen ($290 million) in losses from derivative transactions linked to the U.S. mortgage market. The firm, Japan's third-largest consumer lender by market value, said it may reduce its full-year net profit forecast from 42.3 billion yen for the fiscal year ending March 31 because of the losses. The soured investments involved transactions in May using credit default swaps that were arranged by Merrill Lynch Japan Securities Co., the Nikkei business daily reported. Shares of Takefuji were down 2.7% in mid-morning trade in Tokyo.
Friday, Feb. 29
Berkshire quarterly net income falls 18%(4:43 pm ET)
SAN FRANCISCO (MarketWatch) -- Berkshire Hathaway (BRKA: news, chart, profile) (BRKB: news, chart, profile) said late Friday that fourth-quarter net income came in at $2.95 billion, or $1,904 per class A share, down 18% from a year earlier when the insurance-focused conglomerate made $3.58 billion, or $2,323 per class A share. Operating earnings, which exclude realized gains and losses from investments and derivatives, came in at $2.35 billion, or $1,518 per class A share, the company reported.
Pepco profit rises on power delivery unit(4:37 pm ET)
SAN FRANCISCO (MarketWatch) -- Pepco Holdings Inc. (POM: news, chart, profile) said Friday that its fourth-quarter profit rose to $57.8 million, or 29 cents a share, from $36.3 million, or 19 cents a share, last year. Analysts surveyed by FactSet Research estimated a profit of 33 cents a share. Operating revenue rose to $2.33 billion from $1.9 billion in the year-ago period.
Wells says it lost $39 mln in money funds(3:52 pm ET)
NEW YORK (MarketWatch) -- Wells Fargo & Co. (WFC: news, chart, profile) said Friday that it took a $39 million loss in 2007 on debt held in one of its structured investment vehicles. It outlined the loss in an annual report filed with the U.S. Securities and Exchange Commission. Wells said the loss came as part of a $130 million capital support agreement Wells entered into as a way to safeguard a coveted Triple-A credit rating for many of its investment funds. The bank is currently the only one of the top five American banks to hold such a high credit ranking. The nation's fifth-largest bank added it had three separate SIVs worth more than $1 billion as of Feb.1.
Volkswagen annual profit climbs nearly 50%(10:20 am ET)
LONDON (MarketWatch) -- Volkswagen Group (DE:766400: news, chart, profile) , in an unplanned announcement, said annual profit rose nearly 50% to 4.12 billion euros ($6.2 billion), with revenue up 4% to 108.9 billion euros. The automaker said it recorded the highest profit before tax in the company's history, and is planning 1.80 euros a share dividend, up from 1.25 euros last year. Analysts polled by FactSet expected a profit of 3.89 billion euros on revenue of 109.7 billion euros, and a dividend of 1.59 euros per share. For 2008, the company expects growing sales, led by Asia-Pacific and Central and Eastern Europe regions, with growth in operating profit.
Grant Prideco Q4 earnings $1.00; merger seen closing April(9:11 am ET)
NEW YORK (MarketWatch) -- Grant Prideco, Inc. (GRP: news, chart, profile) said Friday its fourth-quarter profit totaled $128.5 million, or $1.00 per share, from $140.1 million, or $1.07 per share, in the same quarter a year before. This was below the $1.09 average forecast of analysts polled by FactSet. Revenue for the quarter was $505.4 million, up from $452.2 million in last year's fourth quarter. Grant Prideco said its acquisition by National Oilwell Varco is expected to close in April.
Cassano, CEO of AIG's derivatives unit, to retire(9:01 am ET)
SAN FRANCISCO (MarketWatch) -- Joe Cassano, chief executive of American International Group's (AIG: news, chart, profile) derivatives unit, will retire on March 31, Martin Sullivan, CEO of the giant insurer, said on Friday during a conference call with analysts. Bill Dooley will assume interim responsibility for the day-to-day operation of AIG Financial Products, along with his current duties, Sullivan added. Cassano will stay on as a consultant to AIG for the rest fo the year, while AIG looks for a new CEO for the derivatives unit. AIG reported a large quarterly loss late Thursday after taking more than $11 billion in charges related to the valuation of credit derivatives.
Armstrong World Industries' fourth-quarter net soars(8:55 am ET)
NEW YORK (MarketWatch) -- Armstrong World Industries Inc.'s (AWI: news, chart, profile) fourth-quarter earnings soared to $19.6 million, or 34 cents a share, from $2.2 million, or 4 cents a share, a year earlier, boosted in part by higher selling prices. A Thomson Financial survey of analysts, on average, predicted earnings of 39 cents a share for the quarter. Analysts' estimates usually exclude items. The Lancaster, Pa., floor maker said sales increased to $852.4 million from $817.3 million a year ago. Armstrong also said it completed its strategic review. The company said due in part to current market conditions, it will continue to operate under its current structure. In addition, the company declared a special cash dividend of $4.50 a common share, payable March 31 to shareholders of record March 11. Looking forward, the company expects 2008 adjusted earnings of $2.30 to $2.90 a share on revenue of $3.5 billion to $3.65 billion. Armstrong sees first-quarter adjusted earnings of 30 cents to 35 cents a share. On Thursday, Armstrong shares closed down $1.06, or 3.1%, to $33.13.
New York Times January ad revenue falls 9.8% to $165 million(8:48 am ET)
NEW YORK (MarketWatch) -- The New York Times Co. (NYT: news, chart, profile) said Friday its advertising revenue for January fell 9.8% to just under $165 million. Total revenue from continuing operations fell 5.5% on year, while circulation revenues increased 1.6%. The newspaper publisher said its Internet ad revenue grew 8.6% during the month. It also said it had the 10th largest presence on the Web, with 51.6 million unique visitors in the U.S. -- for an on-year growth of about 21% -- according to Nielsen Online.
FBR boosts price target on Southwestern Energy(8:30 am ET)
NEW YORK (MarketWatch) -- Friedman Billings Ramsey on Friday raised its price target on Southwestern Energy Company (SWN: news, chart, profile) to $75 a share from $64 a share following the company's profit update. The move reflects FBR's higher net asset value for Southwestern. "With shale production continuing to grow, expectation of average initial production rates continuing to improve, and a good possibility of more strong initial production results in weekly...filings (given the increased use of seismic and longer laterals), we believe that the positive news flow will continue," FBR said.
Royal Bank of Canada posts lower first-quarter net (8:12 am ET)
NEW YORK (MarketWatch) -- Royal Bank of Canada (RY: news, chart, profile) posted lower earnings in the fiscal first quarter, noting that although a few of its businesses were hurt by difficult market conditions, most performed well. The Canadian chartered bank credited its diversified business mix and "proactive approach to risk management" for the latest results. It said it had net income of C$1.245 billion, or 95 Canadian cents a share, in the first quarter, down from C$1.494 billion, or C$1.14 a share, a year earlier. The bank said its latest results reflect an after-tax writedown in Capital Markets of C$187 million and related compensation adjustments, higher impaired loans in U.S. banking over last year, and a C$45 million impact from strong appreciation of the Canadian dollar against the U.S. dollar. The year-earlier earnings were helped by a C$40 million adjustment related to reallocation of foreign investment capital, a C$25 million cumulative valuation adjustment related to prior periods, a C$14 million foreign-exchange translation gain on certain deposits and a tax reversal. Return on equity was 21.4% versus 27.3%, and the provision for credit losses rose to C$293 million from C$162 million.
Regency Energy fourth-quarter net falls 69%(8:09 am ET)
NEW YORK (MarketWatch) -- Regency Energy Partners LP (RGNC: news, chart, profile) said fourth-quarter net income fell 69% to $2.04 million from $6.58 million a year earlier, due in part to the recent period's inclusion of $12 million in non-cash losses from risk-management activities. Results from the fourth quarter of 2006 included $1 million in non-cash gains from risk-management activities. On average, analysts polled by Thomson Financial expected earnings of 24 cents a share. The Dallas energy partnership said revenue increased 46% to $324.7 million from $221.8 million.
Tempur-Pedic CEO retiring this year(7:41 am ET)
NEW YORK (MarketWatch) -- Tempur-Pedic International Inc. (TPX: news, chart, profile) on Friday said CEO H. Thomas Bryant, 60, plans to retire in the middle of this year. The Lexington, Ky. mattress maker said Bryant will serve as a director and stand for re-election at the annual meeting of stockholders in May.
Southern Union 2007 earnings $1.75 per share vs 40 cents(7:23 am ET)
NEW YORK (MarketWatch) -- Southern Union Company (SUG: news, chart, profile) said Friday its 2007 profit totaled $229 million, or $1.75 per share, from $64 million, or 40 per share, in 2006. The results matched the average expectation in a poll of analysts conducted by FactSet. Revenue for the year totaled $2.62 billion, compared with $2.34 billion in 2006. The Houston-based natural gas company didn't provide quarterly data in its financial report. It said its increase in operating results were "primarily attributable to growth in Southern Union's transportation and storage segment and increased contributions from the distribution segment." It said it expects 2008 earnings to come in at $1.80 to $1.90 per share.
Dean Foods to sell shares, reiterates outlook(7:21 am ET)
NEW YORK (MarketWatch) -- Dean Foods Co. (DF: news, chart, profile) said Friday that it plans to sell about 18.7 million shares in a registered public offering, expected to close March 5. The offering, which will be underwritten by Lehman Brothers Inc., will increase the diluted shares outstanding by about 13%. The leading U.S. milk producer says it will use proceeds to reduce debt and to fund potential acquisitions or investments. It also reiterated its prior earnings forecast for 15 to 20 cents a share in the first quarter and at least $1.20 a share for 2008. Shares of Dean Foods closed Thursday at $22.99.
Warner Chilcott swings to a gain (7:11 am ET)
NEW YORK (MarketWatch) -- Warner Chilcott (WCRX: news, chart, profile) on Friday said fourth-quarter net income climbed to $19.7 million, or 8 cents a share, from a loss of $8.5 million, or 3 cents a share in the year-ago period. Revenue at the St. David's, Bermuda-based pharmaceutical firm rose 10% to $227.7 million after launching two new products, Loestrin 24 FE and Taclonex. Analysts surveyed by Thomson Financial forecast earnings of 26 cents a share and revenue of $219.5 million, on average.
Carustar Industries loss narrows amid flat sales(6:53 am ET)
LONDON (MarketWatch) -- Caraustar Industries (CSAR: news, chart, profile) said its fourth-quarter loss narrowed to $6.77 million, or 24 cents a share, from $12.5 million, or 44 cents a share, with sales virtually flat at $203.9 million vs. $203 million. The recycled packaging company said the quarter included 8 cents a share in restructing costs and 4 cents a share in charges related to a customer bankruptcy, as well as a penny gain from discontinued operations. Two analysts polled by FactSet estimated earnings of two cents a share.
Magellan posts higher quarterly profit on 43% revenue growth(6:49 am ET)
WASHINGTON (MarketWatch) -- Magellan Health Services Inc. (MGLN: news, chart, profile) reported fourth-quarter net income of $31.3 million, or 78 cents a share, up from $22.5 million, or 58 cents, earned in the final three months of 2006. Quarterly revenue generated by the Avon, Conn.-based specialty health-care management company increased to $658 million from the prior year's $461.3 million. The average of seven analysts surveyed by FactSet Research had been for Magellan to post a profit of 67 cents a share. The company also reiterated that it anticipates revenue for 2008 in a range of $2.53 billion to $2.66 billion and pegged projected earnings at $1.88 to $2.34 a share. The FactSet-derived mean estimate stands at $2.15 a share. Magellan's year-end membership stood at 64.3 million, up from 60.8 million at the end of 2006, results showed.
WPCS lowers 2008 guidance on project delays this quarter(6:46 am ET)
LONDON (MarketWatch) -- Wireless infrastructure provider WPCS Intl Inc. (WPCS: news, chart, profile) lowered its guidance for fiscal 2008, saying it now expects earnings of 62 cents instead of 88 cents a share and revenue of $106 million compared to an earlier forecast of $107 million. It forecast earnings of 5 cents a share in the third quarter and 22 cents a share in the fourth quarter. The company said the shortfall in the third quarter was due to significant project delays and not indicative of an overall downturn in its business. The company will release third-quarter results on March 17.
Calpine generates 2007 revenue growth of nearly 15%(6:36 am ET)
WASHINGTON (MarketWatch) -- Calpine Corp. (CPN: news, chart, profile) reported 2007 net income of $2.69 billion, or $5.62 a share, on revenue of $7.97 billion. The operator of electricity-generating plants emerged from Chapter 11 bankruptcy at the end of January, a little more than two years after seeking protection from creditors. For 2006, Calpine had a loss of $1.77 billion, or $3.68 a share, on revenue of $6.94 billion. The number of megawatt-hours generated by Calpine during 2007 rose 9%, results showed. Gross profit for 2007 increased to $895 million from $740 million in 2006.
Iowa Telecom's fourth-quarter profit up on 3% revenue growth(6:14 am ET)
WASHINGTON (MarketWatch) -- Iowa Telecommunications Services Inc. (IWA: news, chart, profile) reported fourth-quarter net income of $6 million, or 19 cents a share, up from $3.5 million, or 11 cents, earned in the final three months of 2006. The Newton, Iowa-based communications carrier posted quarterly revenue of $61.4 million, up from the prior year's $59.8 million. The consensus of four analysts surveyed by FactSet Research had been for Iowa Telecom to post a profit of 19 cents a share.
Bayer upgraded to overweight at Lehman Brothers(5:51 am ET)
LONDON (MarketWatch) -- Lehman Brothers upgraded chemicals and pharmaceuticals manufacturer Bayer AG (DE:575200: news, chart, profile) (BAYRY: news, chart, profile) to overweight from equal weight, citing valuation. The broker said Bayer has underperformed the chemicals sector by 11% since mid February on negative headlines abouts its pharmaceuticals unit and a "slightly disappointing" fourth quarter, but Lehman added it believes these events have no material impact on the firm's valuation. "With its attractive earnings outlook and pipeline catalysts, we believe a stock recovery is highly probable," the broker said.