Earning Plays

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Tuesday, April 8
Novellus shares drop on revenue, earnings warning(2:12 pm ET)
SAN FRANCISCO (MarketWatch) -- Shares of Novellus Systems Inc. (NVLS: news, chart, profile) fell nearly 8% by Tuesday afternoon after the maker of semiconductor manufacturing equipment warned that first-quarter revenue is expected to come in at the low end of its previously forecasted range of $315 million to $325 million. Net income will come in between 15-17 cents a share - below the 21-24 cents a share previously predicted. The company blamed a number of factors, including "a less-favorable than expected product mix combined with higher manufacturing spending in our industrial applications segment, a larger than expected inventory write-down related to evaluation units in our semiconductor segment, and an increase in our forecasted tax rate." The stock was last trading down $1.90 at $21.91.
Constellation Energy paying $187 mln in Md.settlement(8:52 am ET)
NEW YORK (MarketWatch) -- Constellation Energy (CEG: news, chart, profile) will contribute $187 million in the form of a one-time $170 rate credit for BGE's residential electric customers as part of a settlement with the Maryland legislature. Under the pact that now awaits the governor's signature, BGE customers will be relieved of the potential future liability for decommissioning Constellation Energy's Calvert Cliffs Unit 1 and Unit 2 nuclear plants, scheduled to occur no earlier than 2034 and 2036. Constellation Energy will, through 2016, continue to collect $18.7 million per year in nuclear decommissioning costs for Calvert Cliffs and rebate this amount to residential customers as previously authorized by a Senate Bill 1, approved in 2006.
Soleil boosts Alcoa's Q2 profit view on fat aluminum prices (8:25 am ET)
NEW YORK (MarketWatch) -- Soleil Group analyst Charles A. Bradford on Tuesday raised his second-quarter profit target for Alcoa (AA: news, chart, profile) to 65 cents a share from 45 cents a share based on the rising cost of aluminum. "We believe that the increased aluminum prices are due to two non-economic factors: the worst winter weather in 50 years in China, and a long-term power shortage in South Africa," Bradford said in a note to clients. "In both cases, primary aluminum production has dropped, but so has the growth in likely aluminum consumption." He sees prices normalizing in the near future.
MSC Industrial Direct posts higher second-quarter profit(7:50 am ET)
NEW YORK (MarketWatch) -- MSC Industrial Direct Co. (MSM: news, chart, profile) said Tuesday that its fiscal second-quarter net income rose 17% to $47.5 million, or 73 cents a share, from $40.5 million, or 61 cents, a year earlier. The year-ago quarterly profit included pretax charges totaling $2.2 million. The Melville, N.Y., maintenance supplies company said revenue for the period ended March 1 rose 7.9% to $436.5 million from $404.6 million a year ago. On average, analysts polled by Thomson Financial expected earnings of 69 cents a share on revenue of $433 million. For the upcoming fiscal third-quarter, MSC expects earnings of 77 cents to 79 cents a share on revenue of $457 million to $463 million. The company expects cash flows to remain strong. On average, analyst polled by Thomson Financial expect third-quarter earnings of 75 cents a share on revenue of $458 million.
888 Holdings profit down 54% after loss of U.S. business(2:41 am ET)
LONDON (MarketWatch) -- Online gambling group 888 Holdings (UK:888: news, chart, profile) said Tuesday that its net profit for 2007 fell 54% to $34.2 million due to the forced closure of its U.S. business following the introduction of anti-gambling laws in 2006. Excluding these discontinued operations, net gaming revenue rose 36% to $213.4 million and pretax profit more than doubled to $45.8 million from $22.2 million. The group said growth was driven by both its core casino and poker games as well as the introduction of new products, particularly bingo. The group said its board has recommended a final dividend of 5 cents a share.
Harry Winston 1st-quarter net triples; operating net up 59%(2:00 am ET)
TEL AVIV (MarketWatch) -- Harry Winston Diamond Corp., (HWD: news, chart, profile) (CA:HW: news, chart, profile) the Toronto diamond miner and jewelry retailer, reported fiscal fourth-quarter net income more than tripled, reflecting certain tax-related special gains, on 22% higher sales. For the quarter ended Jan. 31, the company earned US$90.4 million, or US$1.55 a share, compared with $27.3 million, or 47 cents, in the year-earlier period. Earnings from operations rose 59% to $59.1 million from $37.2 million. Sales rose to $188.2 million from $154.3 million. "Our new fiscal year is off to a good start in retail sales, and we will continue to focus on the high-net-worth individuals in markets such as Russia, China, the Middle East and India to drive our luxury diamond jewelry and timepiece business," President Thomas J. O'Neill.
LDK trims earnings-estimate range, lifts revenue view(1:38 am ET)
TEL AVIV (MarketWatch) -- LDK Solar Ltd., (LDK: news, chart, profile) the Xinyu City, China, producer of solar wafers, the raw material used to make solar cells, estimates that for the first quarter it earned 40 cents to 44 cents a share on revenue of $225 million to $235 million. That earnings estimate trims a penny from the top and bottom of the range the company estimated in February, when it reported fourth-quarter 2007 earnings. And the new revenue estimate is up $15 million on the top and bottom of the range LDK estimated in February. Three analysts surveyed by FactSet Research are looking for 41 cents a share for the quarter.
Monday, April 7
Firms from energy sector hit 52-week highs(10:42 am ET)
NEW YORK (MarketWatch) -- Several companies from the energy sector hit 52-week highs on Monday. Massey Energy (MEE: news, chart, profile) rose 6% to $50.17. Patriot Coal (PCX: news, chart, profile) rose 6% to $59.75. Alpha Natural Resources (ANR: news, chart, profile) rose 5% to $50.14. Southwestern Energy Co. (SWN: news, chart, profile) rose 4% to $37.95. Weatherford International (WFT: news, chart, profile) advanced 4% to $78.53. Continental Resources (CLR: news, chart, profile) rose 4% to $34.40. Bois D'Arc Energy (BDE: news, chart, profile) rose 3.5% to $24.70. Exco Resources (XCO: news, chart, profile) rose 3.4% to $56.65. Cabot Oil & Gas Corp. (COG: news, chart, profile) rose 3.3% to $56.65. First Solar Inc. (FSLR: news, chart, profile) touched an all-time high of $291.49, before falling back to $282.24 in recet action. Its previous 52-week high was $283.90 on April 4.
Hartford shares cut to neutral by UBS analyst Kligerman(10:05 am ET)
SAN FRANCISCO (MarketWatch) -- Hartford Financial Services shares (HIG: news, chart, profile) were cut to neutral from buy by UBS analyst Andrew Kligerman on Monday. He also introduced a short-term sell rating on the stock because the insurer will likely miss expectations for operating-earnings per share this year. Credit impairments, derivative positions, and "hedging breakages" may lower net-earnings per share further, Kligerman wrote in a note to investors. He also expects unrealized mark-to-market losses on commercial mortgage-backed securities and subprime residential mortgage-backed securities holdings. Hartford shares slipped 1.8% to $76.50 during morning trading on Monday.
Energy stocks up in early action (9:36 am ET)
NEW YORK (MarketWatch) -- Shares of energy companies rose with the broad market on Monday as the price of crude rose. The Amex Oil Index (XOI: news, chart, profile) rose 0.6%. The Amex Natural Gas Index (XNG: news, chart, profile) rose 0.8% to 630. Sector leaders Exxon Mobil (XOM: news, chart, profile) and Chevron (CVX: news, chart, profile) rose 0.2% and 0.3% respectively. Crude gained $2.03 to trade at $108.26.
ScanSource sees quarterly sales of $509 million-$515 million(8:24 am ET)
NEW YORK (MarketWatch) -- ScanSource Inc. (SCSC: news, chart, profile) said Monday that it expects sales of $509 million to $515 million in the quarter ended March 31, vs. $492.7 million in the year-earlier period. On average, analysts polled by FactSet Research were expecting quarterly sales of about $563 million. The Greenville, S.C., distributor of automatic-identification and data-capture products cited weakness in its Catalyst Telecom unit and its international POS and bar-code business. Shares of ScanSource closed Friday at $34.49.
U.S. retail gasoline prices rise to $3.34 a gallon(8:04 am ET)
NEW YORK (MarketWatch) -- The average U.S. retail gasoline prices edged up to $3.34 a gallon on Monday, up a penny from the day before and well ahead of the month-ago price of $3.20 a gallon, according to the AAA Daily Fuel Gauge Report. Gasoline has been hitting fresh records on the heels of spiking crude oil costs and a dip in refinery utilization.
Tetra Technologies sticks to 2008 profit view(7:44 am ET)
NEW YORK (MarketWatch) -- Tetra Technologies Inc. (TTI: news, chart, profile) on Monday said it continues to expect 2008 earnings of $1.30 to $1.55 a share. Analysts surveyed by FactSet Research forecast earnings of $1.45 a share, on average. The company said earnings performance by quarter could be impacted by poor weather conditions in the Gulf of Mexico in the first quarter, but it'll still hit its year-end target. The Woodlands, Texas oil and gas services business said it'll get an earnings boost in its Maritech unit from production performance, new discoveries, pricing, and the benefits of its Cimarex purchase.
Michael Page gross profit up 33%(2:24 am ET)
LONDON (MarketWatch) -- Recruitment firm Michael Page (UK:MPI: news, chart, profile) said Monday that its first-quarter gross profit rose 33% to 140.3 million pounds ($280.2 million), driven by rapid growth in Europe, the Middle East and Africa. The group said it has seen further weakness in the banking sector and other disciplines that service banking clients. "Whilst we continue to experience strong activity levels and demand for talent, in certain areas there are signs of more cautionary behaviour," the group said.
Yahoo plans simpler integrated ad-purchase-and-sale platform(1:23 am ET)
TEL AVIV (MarketWatch) -- Yahoo Inc., (YHOO: news, chart, profile) the Sunnyvale, Calif., Internet-services giant, said on Monday that it would launch AMP, a platform that will ease users' ability to buy and sell ads online. AMP, based on one integrated user interface, "will allow advertisers to precisely yet easily target audiences while enabling publishers to better monetize their content," the company said in a statement. Yahoo will launch the system, which had been known as Project Apex, in phases beginning in the third quarter. First to use it will be the more than 600 member newspapers in Yahoo's newspaper consortium.