AI
Wednesday, April 30
Murphy Oil profit surges on higher oil prices, sales volume (5:39 pm ET)
SAN FRANCISCO (MarketWatch) -- Murphy Oil Corp. (MUR: news, chart, profile) reported late Wednesday first-quarter net income of $409 million, or $2.14 a share, up from $110.6 million, or 58 cents a share, a year ago. The latest quarter's earnings also included a $39.9 million one-time gain on the sale of its Berkana Energy shares in Canada. Revenue for the three months ended March 31 rose to $6.53 billion from $3.43 billion. Analysts polled by Thomson Financial had predicted the El Dorado, Ark.-based company would earn $1.94 a share on $6.23 billion in revenue. Murphy Oil shares closed 0.7% higher at $90.34 ahead of the report.
Allegheny Energy profit rises on prices, lower taxes(5:35 pm ET)
SAN FRANCISCO (MarketWatch) -- Allegheny Energy, Inc. (AYE: news, chart, profile) on Wednesday reported a first-quarter profit of $136 million, or 80 cents a share, up from $109.7 million, or 65 cents a share a year earlier. Analysts polled by FactSet Research were looking for a profit, on average, of 79 cents a share. The Greensburg, Pa.-based electric utility said increased market prices and lower taxes helped drive the improved profit. In a separate release, Allegheny said it filed a request with the Virginia State Corporation Commission to recover purchased power costs in Virginia.
Sunoco tumbles to loss on higher crude price, weaker demand (5:24 pm ET)
SAN FRANCISCO (MarketWatch) -- Independent oil refiner Sunoco Inc. (SUN: news, chart, profile) , citing a steep rise in crude-oil prices and weaker gasoline demand, reported late Wednesday a first-quarter loss of $59 million, or 50 cents a share. The company had a profit of $175 million, or $1.44 a share, in the year-ago period. Excluding one-time items, the year-ago net income was $85 million. Revenue for the three months ended March 31 rose to $12.81 billion from $9.31 billion. Analysts surveyed by Thomson Financial predicted the Philadelphia-based company would hand in a loss of 43 cents a share. Sunoco shares fell 3% ahead of the report to close at $46.41.
Starbucks warns of stagnating operating margin (5:17 pm ET)
SAN FRANCISCO (MarketWatch) -- Starbucks (SBUX: news, chart, profile) is making moves to shore up its business but don't expect the company's operating margin to improve. The coffee-shop chain warned Wednesday its total operating margin by 2011 will remain below 2007's level of 11.2%, "driven by erosion in the U.S. business." That said, Starbucks is forecasting its earnings to pick up over the next three years. It pegged fiscal 2009 earnings to be as much as $1 a share, growing as high as a $1.50 a share in fiscal 2011. On Wednesday, Starbucks reported its net income tumbled 28% from the year-earlier quarter.
Unum quarterly net income falls 9%(4:32 pm ET)
SAN FRANCISCO (MarketWatch) -- Unum Group (UNM: news, chart, profile) said late Wednesday that first-quarter net income came in at $163.1 million, or 46 cents a share, down 9% from a year earlier when the disability insurer made $178.3 million, or 51 cents a share. Income from continuing operations, which excludes net realized investment gains and losses and other items, was $207.8 million, or 59 cents a share, the company reported. Unum was expected to make 57 cents a share, according to the average estimate of 14 analysts in a FactSet survey. The insurer said it expects operating earnings for 2008 to be between $2.37 and $2.42 a share, up from a previous forecast.
Allied Waste nearly doubles profit(4:33 pm ET)
SAN FRANCISCO (MarketWatch) -- Allied Waste Industries Inc. (AW: news, chart, profile) reported late Wednesday first-quarter net income rose 82% to $72.6 million, or 17 cents a share, from $39.9 million, or 8 cents a share, a year ago. Revenue for the three months ended March 31 rose 2.7% to $1.48 billion from $1.44 billion. Analysts surveyed by Factset had expected the Phoenix, Ariz.-based garbage hauler and recycler to post earnings of 17 cents a share on $1.48 billion in revenue. Allied Waste shares fell 11 cents to close at $12.36 ahead of the report.
Prudential Financial quarterly net drops 92%(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Prudential Financial Inc. (PRU: news, chart, profile) said late Wednesday that first-quarter net income came in at $77 million, or 20 cents per common share, down 92% from a year earlier when the life insurance and annuity company made $1.025 billion, or $2.18 per common share. Adjusted operating income, which excludes realized investment gains and losses, was $729 million, or $1.65 per common share, for the first quarter of 2008, the company reported. Prudential was expected to make $1.83 a share, according to the average estimate of 15 analysts polled by FactSet. After-tax adjusted operating income will likely be $7.50 to $7.80 per common share in 2008, in line with the previous forecast, Prudential said.
Symantec posts sharp profit gain amid strong sales(4:18 pm ET)
SAN FRANCISCO (MarketWatch) - Symantec Corp. said Wednesday its fiscal fourth-quarter profit rose sharply, amid strong sales to both businesses and consumers. Cupertino, Calif.-based security and storage software maker Symantec (SYMC: news, chart, profile) said net income for the period ended in March rose to $186.4 million, or 22 cents a share, from $60.9 million, or 7 cents a share in the same period a year earlier. Meanwhile revenue rose to $1.54 billion from $1.36 billion. Excluding special items, Symantec said earnings for the period rose to 36 cents a share. Analysts had estimated Symantec would post earnings excluding special items of 34 cents a share, and $1.52 billion in revenue, according to FactSet Research.
Starbucks profit slumps 28%, cuts target for new U.S. stores(4:16 pm ET)
SAN FRANCISCO (MarketWatch) -- Starbucks (SBUX: news, chart, profile) late Wednesday reported its quarterly net income fell 28% from a year ago, undercut by a weaker U.S. economy. The coffee-shop chain also cut its target for U.S. store openings in fiscal 2008 by 155 sites to 1,020. Starbucks posted fiscal second-quarter net income of $108.7 million, or 15 cents a share, compared with net income of $150.8 million, or 19 cents a share, in the year-earlier quarter. Sales rose 12% to $2.5 billion. A week ago, Starbucks had warned its profit would be lower for the quarter and its fiscal year. It still expects fiscal 2008 profit to be "somewhat lower" than the 87 cents a share it earned a year ago. It pegged revenue growth in the range of 13% to 14%.
Energy stocks perk up after Fed cuts rates(2:21 pm ET)
NEW YORK (MarketWatch) -- Energy stocks moved into positive territory, reversing losses during session, after the Federal Open Market Committee moved to cut interest rates a quarter point. The Amex Oil Index (XOI: news, chart, profile) rose fractionally at 1,484. The Amex Natural Gas Index (XNG: news, chart, profile) rose fractionally at 661. The Philadelphia Oil Service Index ($OSX: news, chart, profile) rose 0.2% to 313.
FBR boosts price target on Hess to $125 a share from $107 (1:43 pm ET)
NEW YORK (MarketWatch) -- FBR analyst Eitan Bernstein on Wednesday lifted Hess Corp.'s (HES: news, chart, profile) 2008 earnings estimate to $8.50 a share from $7.70 a share, based on the oil firm's better-than-expected first-quarter earnings update. FBR boosted its price target for the stock to $125 a share from $107 a share, "to better reflect the company's large inventory of probable and possible, but unbooked, reserves." Bernstein cited the company's higher upstream volumes and better-than-expected price realizations. Upstream earnings came in above expectations, but Hess Corp.'s refining business missed targets.
Exxon Mobil lifts quarterly dividend by 14%(1:32 pm ET)
NEW YORK (MarketWatch) -- Exxon Mobil (XOM: news, chart, profile) on Wednesday said it would increase its quarterly dividend by 5 cents a share, or 14%, to 40 cents a share in the second quarter, payable June 10 to shareholders of record on the close of May 13. The Irving, Texas oil and gas giant said it paid a first-quarter dividend of 35 cents a share.
CORRECT: Lincoln National quarterly net income falls 27%(12:06 pm ET)
SAN FRANCISCO (MarketWatch) -- Lincoln National Corp. (LNC: news, chart, profile) said late Tuesday that first-quarter net income came in at $289 million, or $1.10 a share, down 27% from a year earlier when the life insurance and annuity company made $396 million, or $1.42 a share. Operating earnings, which exclude net realized investment gains and losses and other items, were $333 million, or $1.27 a share, the company reported. Lincoln was expected to make $1.32 a share, according to a FactSet analyst survey. (Corrects company error in reporting per-share figures.)
Time Warner CEO: AOL display ads disappoint; changes made(11:03 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Executive Jeff Bewkes told analysts Wednesday that the company was "not satisfied" with a decline in sales of display advertising at AOL during the first quarter, which led to another quarter of slowing ad growth at the entire unit. AOL's display ad sales are expected to decline again in the second quarter, Chief Financial Offficer John Martin said. Bewkes, speaking during a conference call, said the problem stemmed from difficulty in integrating Platform A, formed late last year, which allows advertisers to make purchases across its ad network, including Advertising.com, the behavioral-targeting firm Tacoda and other areas. To streamline ad sales, AOL has now made it possible for a client to buy ads across AOL and its third-party networks through one sales contact, Bewkes said. The company doesn't expect the change to improve display results during the current quarter, but anticipates an improvement later in the year, the CEO commented.
Time Warner CEO: Ad sales strong at Turner cable networks(10:49 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Executive Jeff Bewkes said Wednesday that second-quarter advertising sales at the Turner cable networks, including CNN, TBS Superstation, TNT and other channels, are up by a double-digit percentage over last spring's sales.
Energy shares rise in early action (9:39 am ET)
NEW YORK (MarketWatch) -- Energy stocks rose with the broad market in early action on Wednesday, ahead of key weekly inventory data and a possible interest rate cut by the U.S. Federal Reserve Open Market Committee. The Amex Oil Index (XOI: news, chart, profile) rose 0.9% to 1,497. The Amex Natural Gas Index (XNG: news, chart, profile) rose 0.8% to 666.
Diebold estimates first-quarter revenue rose 8.1%(9:06 am ET)
NEW YORK (MarketWatch) -- Diebold Inc. (DBD: news, chart, profile) on Wednesday estimated its first-quarter revenue rose 8.1% as the ATM and security-systems maker continues to deal with past revenue-recognition actions. The company, perhaps best know for its electronic voting machines, hasn't released complete financial results for about a year while federal regulators review the way it reports revenue. Diebold has said it plans to restate some financials from 2003 through 2008 when it completes its review, which the company noted Wednesday is still ongoing but should be completed by midyear. Diebold put first-quarter revenue at $700.2 million, compared with a revised 2007 figure of $647.7 million. The mean revenue estimate of analysts polled by Thomson Reuters was $715 million.
Och-Ziff posts first-quarter loss on IPO expenses(8:51 am ET)
NEW YORK (MarketWatch) -- Och-Ziff Capital Management Group LLC (OZM: news, chart, profile) swung to a first-quarter loss of $268.1 million from a profit of $85.2 million, a year earlier, due to reorganization noncash expenses of $425.6 million related to the company's initial public offering in November. The New York provider of alternative asset management services posted a loss per share of $3.62 for the latest quarter. The company managed $33.3 billion in assets as of March 31, up 30% from $25.7 billion a year earlier. Revenue fell to $147.8 million from $284.4 million.
M/I Homes swings to loss after land charges(8:50 am ET)
BOSTON (MarketWatch) -- M/I Homes Inc. (MHO: news, chart, profile) Wednesday reported a first-quarter net loss of $22.2 million, or $1.58 a share, compared with net income of $2.2 million, or 16 cents a share, in the year-ago quarter. The residential builder said the results included pretax charges of $22.3 for impairments and write-offs related to land inventory. The company said new contracts in the first quarter dropped to 554 from 931 a year earlier as the housing market remained soft. Shares of M/I Homes have surged 72% so far this year.
Wachovia sees $800 mln to $1 bln accounting charge in Q2(8:49 am ET)
NEW YORK (MarketWatch) -- Wachovia Corp (WB: news, chart, profile) said Wednesday that it expects to take a second-quarter charge of $800 million to $1 billion related to a tax ruling. Wachovia said it decided to take the charge because of its analysis of a ruling in BB&T Corporation v. the United States. That ruling regarded accounting for lease transactions that are similar, but not identical, to some of Wachovia's lease arrangements.
Brink's first-quarter profit climbs(8:47 am ET)
NEW YORK (MarketWatch) -- Brink's Co. (BCO: news, chart, profile) said Wednesday that its first-quarter earnings climbed to $50.1 million, or $1.07 a share, from $28.7 million, or 61 cents a share, a year earlier, boosted in part by growth in its Latin America operations. Earnings from continuing operations were $1.02 a share for the quarter. The Richmond, Va., security-related services company said revenue rose to $920.6 million from $740.5 million.
AGL Resources posts lower first-quarter profit(8:45 am ET)
NEW YORK (MarketWatch) -- AGL Resources Inc. (ATG: news, chart, profile) said Wednesday that its first-quarter net income fell to $89 million, or $1.16 a share, from $102 million, or $1.30 a share, a year earlier. A Thomson Financial survey of analysts, on average, projected earnings of $1.28 a share for the quarter. The Atlanta-based energy-services company said operating revenue rose to $1.01 billion from $973 million a year earlier. The company expects 2008 earnings of $2.75 to $2.85 a share, assuming normal weather and average volatility in natural gas prices.
Rockefeller family members call for CEO, Chair split at XOM(8:43 am ET)
NEW YORK (MarketWatch) -- Rockefeller family members on Wednesday added their names to a shareholder resolution to separate the chief executive officer and chairman roles at Exxon Mobil Corp. (XOM: news, chart, profile) . While family members praised CEO Rex W. Tillerson for his oil and gas results, they concluded that an independent board chair remains "key to Exxon Mobil's future." A majority of Rockefeller Family members -- the oldest continuous shareholders in Exxon Mobil Corp. -- called on other shareholders to join them in supporting the resolution.
National Oilwell Varco earnings up 44%(8:20 am ET)
NEW YORK (MarketWatch) -- National Oilwell Varco Inc. (NOV: news, chart, profile) on Wednesday said first-quarter net income rose 44% to $397.6 million, or $1.11 a share from $275.9 million, or 78 cents a share in the year-ago period. Revenue rose 245 to $2.69 billion. The Houston-based oil services firm was expected to earn $1.10 a share on revenue of $2.75 billion, according to a survey by FactSet.
CORRECT: IAC/InterActiveCorp's first-quarter profit falls(8:15 am ET)
NEW YORK (MarketWatch) -- IAC/InterActiveCorp (IACI: news, chart, profile) said Wednesday that its first-quarter net income fell to $52.8 million, or 18 cents a share, from $60.7 million, or 20 cents a share, a year earlier. On average, analysts polled by Thomson Reuters expected fully reported earnings of 18 cents a share. The New York Internet company said revenue rose 8% to $1.6 billion from the same period last year, helped by results at HSN, Ticketmaster and other units. (Corrects quarter and profit figures.)
FPL Group net rises, reiterates earnings target(7:56 am ET)
NEW YORK (MarketWatch) -- FPL Group Inc. (FPL: news, chart, profile) said first-quarter net income rose to $249 million, or 62 cents a share from $150 million, or 38 cents a share in the year-ago period. Adjusted earnings rose to 76 cents a share from 70 cents a share. Analysts surveyed by FactSet forecast earnings of 81 cents a share, on average. FPL Group reaffirmed its target for 2008 adjusted earnings of $3.83 to $3.93 a share and $4.15 to $4.35 a share for 2009. The June Beach, Fla. electricity firm said results at its Florida Power & Light Company's were impacted by the economic slowdown.
Cincinnati Financial first-quarter loss 26 cents a share(7:53 am ET)
NEW YORK (MarketWatch) -- Cincinnati Financial Corp. (CINF: news, chart, profile) said Wednesday its first-quarter loss totaled $42 million, or 26 cents per share, swinging from a profit $194 million, or $1.11 per share, in the same quarter a year before. Total revenue was $704 million compared to $1.03 billion in the year-ago period. Operating income for the insurer was 66 cents per share, with catastrophe losses reducing the figure by 17 cents. Expectations were for quarterly earnings of 73 cents per share, according to a poll of analysts by FactSet Research. The company kept its 2008 outlook unchanged, saying it expects "property casualty net written premiums could decline as much as 5% for the full year due to competitive pricing."
Rockwood Holdings reports earnings of 36 cents per share(7:51 am ET)
NEW YORK (MarketWatch) -- Rockwood Holdings Inc. (ROC: news, chart, profile) said Wednesday its first-quarter earnings rose to $168.4 million, or 36 cents a share, up from $147 million, or $1.93 a share, in the year-ago period. The latest results include a 22 cent per share charge related to mark-to-market valuation losses on the company's interest rate hedging instruments. Analysts polled by Thomson Reuters expected, on average, earnings of 49 cents a share. The Princeton, N.J., specialty chemicals business said net sales climbed 14.2% to $854 million from $747.7 million last year. Rockwood shares closed Tuesday at $36.82.
Hess Corp. net income more than doubles(7:43 am ET)
NEW YORK (MarketWatch) -- Hess Corp. (HES: news, chart, profile) said first-quarter net income rose to $759 million, or $2.34 a share from $370 million, or $1.17 a share in the year-ago period. Analysts surveyed by FactSet forecast earnings of $1.87 a share, on average. Revenue and non-operating income at the New York-based petroleum firm rose to $10.7 billion from $7.4 billion in the year-ago period. Exploration and production earnings more than doubled to $824 million from $340 million. Oil and gas production, on a barrel-of-oil equivalent basis, rose to 391,000 barrels a day in the first quarter, compared with 382,000 barrels per day in the first quarter of 2007.
Auxilium Pharma first-quarter loss 30 cents per share(7:40 am ET)
NEW YORK (MarketWatch) -- Auxilium Pharmaceuticals, Inc. (AUXL: news, chart, profile) said Wednesday its first-quarter loss totaled $12.3 million, or 30 cents per share, from a loss of $11.9 million, or 33 cents per share, in the same quarter a year before. Revenue for the quarter was $27.1 million versus $18.4 million a year earlier. The results matched expectations of a 30 cent loss per share, according to a poll of analysts by FactSet. The company also said its gross margin widened to 77.9% for the quarter from 72.4% in the first quarter of 2007.
Murphy Oil profit surges on higher oil prices, sales volume (5:39 pm ET)
SAN FRANCISCO (MarketWatch) -- Murphy Oil Corp. (MUR: news, chart, profile) reported late Wednesday first-quarter net income of $409 million, or $2.14 a share, up from $110.6 million, or 58 cents a share, a year ago. The latest quarter's earnings also included a $39.9 million one-time gain on the sale of its Berkana Energy shares in Canada. Revenue for the three months ended March 31 rose to $6.53 billion from $3.43 billion. Analysts polled by Thomson Financial had predicted the El Dorado, Ark.-based company would earn $1.94 a share on $6.23 billion in revenue. Murphy Oil shares closed 0.7% higher at $90.34 ahead of the report.
Allegheny Energy profit rises on prices, lower taxes(5:35 pm ET)
SAN FRANCISCO (MarketWatch) -- Allegheny Energy, Inc. (AYE: news, chart, profile) on Wednesday reported a first-quarter profit of $136 million, or 80 cents a share, up from $109.7 million, or 65 cents a share a year earlier. Analysts polled by FactSet Research were looking for a profit, on average, of 79 cents a share. The Greensburg, Pa.-based electric utility said increased market prices and lower taxes helped drive the improved profit. In a separate release, Allegheny said it filed a request with the Virginia State Corporation Commission to recover purchased power costs in Virginia.
Sunoco tumbles to loss on higher crude price, weaker demand (5:24 pm ET)
SAN FRANCISCO (MarketWatch) -- Independent oil refiner Sunoco Inc. (SUN: news, chart, profile) , citing a steep rise in crude-oil prices and weaker gasoline demand, reported late Wednesday a first-quarter loss of $59 million, or 50 cents a share. The company had a profit of $175 million, or $1.44 a share, in the year-ago period. Excluding one-time items, the year-ago net income was $85 million. Revenue for the three months ended March 31 rose to $12.81 billion from $9.31 billion. Analysts surveyed by Thomson Financial predicted the Philadelphia-based company would hand in a loss of 43 cents a share. Sunoco shares fell 3% ahead of the report to close at $46.41.
Starbucks warns of stagnating operating margin (5:17 pm ET)
SAN FRANCISCO (MarketWatch) -- Starbucks (SBUX: news, chart, profile) is making moves to shore up its business but don't expect the company's operating margin to improve. The coffee-shop chain warned Wednesday its total operating margin by 2011 will remain below 2007's level of 11.2%, "driven by erosion in the U.S. business." That said, Starbucks is forecasting its earnings to pick up over the next three years. It pegged fiscal 2009 earnings to be as much as $1 a share, growing as high as a $1.50 a share in fiscal 2011. On Wednesday, Starbucks reported its net income tumbled 28% from the year-earlier quarter.
Unum quarterly net income falls 9%(4:32 pm ET)
SAN FRANCISCO (MarketWatch) -- Unum Group (UNM: news, chart, profile) said late Wednesday that first-quarter net income came in at $163.1 million, or 46 cents a share, down 9% from a year earlier when the disability insurer made $178.3 million, or 51 cents a share. Income from continuing operations, which excludes net realized investment gains and losses and other items, was $207.8 million, or 59 cents a share, the company reported. Unum was expected to make 57 cents a share, according to the average estimate of 14 analysts in a FactSet survey. The insurer said it expects operating earnings for 2008 to be between $2.37 and $2.42 a share, up from a previous forecast.
Allied Waste nearly doubles profit(4:33 pm ET)
SAN FRANCISCO (MarketWatch) -- Allied Waste Industries Inc. (AW: news, chart, profile) reported late Wednesday first-quarter net income rose 82% to $72.6 million, or 17 cents a share, from $39.9 million, or 8 cents a share, a year ago. Revenue for the three months ended March 31 rose 2.7% to $1.48 billion from $1.44 billion. Analysts surveyed by Factset had expected the Phoenix, Ariz.-based garbage hauler and recycler to post earnings of 17 cents a share on $1.48 billion in revenue. Allied Waste shares fell 11 cents to close at $12.36 ahead of the report.
Prudential Financial quarterly net drops 92%(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Prudential Financial Inc. (PRU: news, chart, profile) said late Wednesday that first-quarter net income came in at $77 million, or 20 cents per common share, down 92% from a year earlier when the life insurance and annuity company made $1.025 billion, or $2.18 per common share. Adjusted operating income, which excludes realized investment gains and losses, was $729 million, or $1.65 per common share, for the first quarter of 2008, the company reported. Prudential was expected to make $1.83 a share, according to the average estimate of 15 analysts polled by FactSet. After-tax adjusted operating income will likely be $7.50 to $7.80 per common share in 2008, in line with the previous forecast, Prudential said.
Symantec posts sharp profit gain amid strong sales(4:18 pm ET)
SAN FRANCISCO (MarketWatch) - Symantec Corp. said Wednesday its fiscal fourth-quarter profit rose sharply, amid strong sales to both businesses and consumers. Cupertino, Calif.-based security and storage software maker Symantec (SYMC: news, chart, profile) said net income for the period ended in March rose to $186.4 million, or 22 cents a share, from $60.9 million, or 7 cents a share in the same period a year earlier. Meanwhile revenue rose to $1.54 billion from $1.36 billion. Excluding special items, Symantec said earnings for the period rose to 36 cents a share. Analysts had estimated Symantec would post earnings excluding special items of 34 cents a share, and $1.52 billion in revenue, according to FactSet Research.
Starbucks profit slumps 28%, cuts target for new U.S. stores(4:16 pm ET)
SAN FRANCISCO (MarketWatch) -- Starbucks (SBUX: news, chart, profile) late Wednesday reported its quarterly net income fell 28% from a year ago, undercut by a weaker U.S. economy. The coffee-shop chain also cut its target for U.S. store openings in fiscal 2008 by 155 sites to 1,020. Starbucks posted fiscal second-quarter net income of $108.7 million, or 15 cents a share, compared with net income of $150.8 million, or 19 cents a share, in the year-earlier quarter. Sales rose 12% to $2.5 billion. A week ago, Starbucks had warned its profit would be lower for the quarter and its fiscal year. It still expects fiscal 2008 profit to be "somewhat lower" than the 87 cents a share it earned a year ago. It pegged revenue growth in the range of 13% to 14%.
Energy stocks perk up after Fed cuts rates(2:21 pm ET)
NEW YORK (MarketWatch) -- Energy stocks moved into positive territory, reversing losses during session, after the Federal Open Market Committee moved to cut interest rates a quarter point. The Amex Oil Index (XOI: news, chart, profile) rose fractionally at 1,484. The Amex Natural Gas Index (XNG: news, chart, profile) rose fractionally at 661. The Philadelphia Oil Service Index ($OSX: news, chart, profile) rose 0.2% to 313.
FBR boosts price target on Hess to $125 a share from $107 (1:43 pm ET)
NEW YORK (MarketWatch) -- FBR analyst Eitan Bernstein on Wednesday lifted Hess Corp.'s (HES: news, chart, profile) 2008 earnings estimate to $8.50 a share from $7.70 a share, based on the oil firm's better-than-expected first-quarter earnings update. FBR boosted its price target for the stock to $125 a share from $107 a share, "to better reflect the company's large inventory of probable and possible, but unbooked, reserves." Bernstein cited the company's higher upstream volumes and better-than-expected price realizations. Upstream earnings came in above expectations, but Hess Corp.'s refining business missed targets.
Exxon Mobil lifts quarterly dividend by 14%(1:32 pm ET)
NEW YORK (MarketWatch) -- Exxon Mobil (XOM: news, chart, profile) on Wednesday said it would increase its quarterly dividend by 5 cents a share, or 14%, to 40 cents a share in the second quarter, payable June 10 to shareholders of record on the close of May 13. The Irving, Texas oil and gas giant said it paid a first-quarter dividend of 35 cents a share.
CORRECT: Lincoln National quarterly net income falls 27%(12:06 pm ET)
SAN FRANCISCO (MarketWatch) -- Lincoln National Corp. (LNC: news, chart, profile) said late Tuesday that first-quarter net income came in at $289 million, or $1.10 a share, down 27% from a year earlier when the life insurance and annuity company made $396 million, or $1.42 a share. Operating earnings, which exclude net realized investment gains and losses and other items, were $333 million, or $1.27 a share, the company reported. Lincoln was expected to make $1.32 a share, according to a FactSet analyst survey. (Corrects company error in reporting per-share figures.)
Time Warner CEO: AOL display ads disappoint; changes made(11:03 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Executive Jeff Bewkes told analysts Wednesday that the company was "not satisfied" with a decline in sales of display advertising at AOL during the first quarter, which led to another quarter of slowing ad growth at the entire unit. AOL's display ad sales are expected to decline again in the second quarter, Chief Financial Offficer John Martin said. Bewkes, speaking during a conference call, said the problem stemmed from difficulty in integrating Platform A, formed late last year, which allows advertisers to make purchases across its ad network, including Advertising.com, the behavioral-targeting firm Tacoda and other areas. To streamline ad sales, AOL has now made it possible for a client to buy ads across AOL and its third-party networks through one sales contact, Bewkes said. The company doesn't expect the change to improve display results during the current quarter, but anticipates an improvement later in the year, the CEO commented.
Time Warner CEO: Ad sales strong at Turner cable networks(10:49 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Executive Jeff Bewkes said Wednesday that second-quarter advertising sales at the Turner cable networks, including CNN, TBS Superstation, TNT and other channels, are up by a double-digit percentage over last spring's sales.
Energy shares rise in early action (9:39 am ET)
NEW YORK (MarketWatch) -- Energy stocks rose with the broad market in early action on Wednesday, ahead of key weekly inventory data and a possible interest rate cut by the U.S. Federal Reserve Open Market Committee. The Amex Oil Index (XOI: news, chart, profile) rose 0.9% to 1,497. The Amex Natural Gas Index (XNG: news, chart, profile) rose 0.8% to 666.
Diebold estimates first-quarter revenue rose 8.1%(9:06 am ET)
NEW YORK (MarketWatch) -- Diebold Inc. (DBD: news, chart, profile) on Wednesday estimated its first-quarter revenue rose 8.1% as the ATM and security-systems maker continues to deal with past revenue-recognition actions. The company, perhaps best know for its electronic voting machines, hasn't released complete financial results for about a year while federal regulators review the way it reports revenue. Diebold has said it plans to restate some financials from 2003 through 2008 when it completes its review, which the company noted Wednesday is still ongoing but should be completed by midyear. Diebold put first-quarter revenue at $700.2 million, compared with a revised 2007 figure of $647.7 million. The mean revenue estimate of analysts polled by Thomson Reuters was $715 million.
Och-Ziff posts first-quarter loss on IPO expenses(8:51 am ET)
NEW YORK (MarketWatch) -- Och-Ziff Capital Management Group LLC (OZM: news, chart, profile) swung to a first-quarter loss of $268.1 million from a profit of $85.2 million, a year earlier, due to reorganization noncash expenses of $425.6 million related to the company's initial public offering in November. The New York provider of alternative asset management services posted a loss per share of $3.62 for the latest quarter. The company managed $33.3 billion in assets as of March 31, up 30% from $25.7 billion a year earlier. Revenue fell to $147.8 million from $284.4 million.
M/I Homes swings to loss after land charges(8:50 am ET)
BOSTON (MarketWatch) -- M/I Homes Inc. (MHO: news, chart, profile) Wednesday reported a first-quarter net loss of $22.2 million, or $1.58 a share, compared with net income of $2.2 million, or 16 cents a share, in the year-ago quarter. The residential builder said the results included pretax charges of $22.3 for impairments and write-offs related to land inventory. The company said new contracts in the first quarter dropped to 554 from 931 a year earlier as the housing market remained soft. Shares of M/I Homes have surged 72% so far this year.
Wachovia sees $800 mln to $1 bln accounting charge in Q2(8:49 am ET)
NEW YORK (MarketWatch) -- Wachovia Corp (WB: news, chart, profile) said Wednesday that it expects to take a second-quarter charge of $800 million to $1 billion related to a tax ruling. Wachovia said it decided to take the charge because of its analysis of a ruling in BB&T Corporation v. the United States. That ruling regarded accounting for lease transactions that are similar, but not identical, to some of Wachovia's lease arrangements.
Brink's first-quarter profit climbs(8:47 am ET)
NEW YORK (MarketWatch) -- Brink's Co. (BCO: news, chart, profile) said Wednesday that its first-quarter earnings climbed to $50.1 million, or $1.07 a share, from $28.7 million, or 61 cents a share, a year earlier, boosted in part by growth in its Latin America operations. Earnings from continuing operations were $1.02 a share for the quarter. The Richmond, Va., security-related services company said revenue rose to $920.6 million from $740.5 million.
AGL Resources posts lower first-quarter profit(8:45 am ET)
NEW YORK (MarketWatch) -- AGL Resources Inc. (ATG: news, chart, profile) said Wednesday that its first-quarter net income fell to $89 million, or $1.16 a share, from $102 million, or $1.30 a share, a year earlier. A Thomson Financial survey of analysts, on average, projected earnings of $1.28 a share for the quarter. The Atlanta-based energy-services company said operating revenue rose to $1.01 billion from $973 million a year earlier. The company expects 2008 earnings of $2.75 to $2.85 a share, assuming normal weather and average volatility in natural gas prices.
Rockefeller family members call for CEO, Chair split at XOM(8:43 am ET)
NEW YORK (MarketWatch) -- Rockefeller family members on Wednesday added their names to a shareholder resolution to separate the chief executive officer and chairman roles at Exxon Mobil Corp. (XOM: news, chart, profile) . While family members praised CEO Rex W. Tillerson for his oil and gas results, they concluded that an independent board chair remains "key to Exxon Mobil's future." A majority of Rockefeller Family members -- the oldest continuous shareholders in Exxon Mobil Corp. -- called on other shareholders to join them in supporting the resolution.
National Oilwell Varco earnings up 44%(8:20 am ET)
NEW YORK (MarketWatch) -- National Oilwell Varco Inc. (NOV: news, chart, profile) on Wednesday said first-quarter net income rose 44% to $397.6 million, or $1.11 a share from $275.9 million, or 78 cents a share in the year-ago period. Revenue rose 245 to $2.69 billion. The Houston-based oil services firm was expected to earn $1.10 a share on revenue of $2.75 billion, according to a survey by FactSet.
CORRECT: IAC/InterActiveCorp's first-quarter profit falls(8:15 am ET)
NEW YORK (MarketWatch) -- IAC/InterActiveCorp (IACI: news, chart, profile) said Wednesday that its first-quarter net income fell to $52.8 million, or 18 cents a share, from $60.7 million, or 20 cents a share, a year earlier. On average, analysts polled by Thomson Reuters expected fully reported earnings of 18 cents a share. The New York Internet company said revenue rose 8% to $1.6 billion from the same period last year, helped by results at HSN, Ticketmaster and other units. (Corrects quarter and profit figures.)
FPL Group net rises, reiterates earnings target(7:56 am ET)
NEW YORK (MarketWatch) -- FPL Group Inc. (FPL: news, chart, profile) said first-quarter net income rose to $249 million, or 62 cents a share from $150 million, or 38 cents a share in the year-ago period. Adjusted earnings rose to 76 cents a share from 70 cents a share. Analysts surveyed by FactSet forecast earnings of 81 cents a share, on average. FPL Group reaffirmed its target for 2008 adjusted earnings of $3.83 to $3.93 a share and $4.15 to $4.35 a share for 2009. The June Beach, Fla. electricity firm said results at its Florida Power & Light Company's were impacted by the economic slowdown.
Cincinnati Financial first-quarter loss 26 cents a share(7:53 am ET)
NEW YORK (MarketWatch) -- Cincinnati Financial Corp. (CINF: news, chart, profile) said Wednesday its first-quarter loss totaled $42 million, or 26 cents per share, swinging from a profit $194 million, or $1.11 per share, in the same quarter a year before. Total revenue was $704 million compared to $1.03 billion in the year-ago period. Operating income for the insurer was 66 cents per share, with catastrophe losses reducing the figure by 17 cents. Expectations were for quarterly earnings of 73 cents per share, according to a poll of analysts by FactSet Research. The company kept its 2008 outlook unchanged, saying it expects "property casualty net written premiums could decline as much as 5% for the full year due to competitive pricing."
Rockwood Holdings reports earnings of 36 cents per share(7:51 am ET)
NEW YORK (MarketWatch) -- Rockwood Holdings Inc. (ROC: news, chart, profile) said Wednesday its first-quarter earnings rose to $168.4 million, or 36 cents a share, up from $147 million, or $1.93 a share, in the year-ago period. The latest results include a 22 cent per share charge related to mark-to-market valuation losses on the company's interest rate hedging instruments. Analysts polled by Thomson Reuters expected, on average, earnings of 49 cents a share. The Princeton, N.J., specialty chemicals business said net sales climbed 14.2% to $854 million from $747.7 million last year. Rockwood shares closed Tuesday at $36.82.
Hess Corp. net income more than doubles(7:43 am ET)
NEW YORK (MarketWatch) -- Hess Corp. (HES: news, chart, profile) said first-quarter net income rose to $759 million, or $2.34 a share from $370 million, or $1.17 a share in the year-ago period. Analysts surveyed by FactSet forecast earnings of $1.87 a share, on average. Revenue and non-operating income at the New York-based petroleum firm rose to $10.7 billion from $7.4 billion in the year-ago period. Exploration and production earnings more than doubled to $824 million from $340 million. Oil and gas production, on a barrel-of-oil equivalent basis, rose to 391,000 barrels a day in the first quarter, compared with 382,000 barrels per day in the first quarter of 2007.
Auxilium Pharma first-quarter loss 30 cents per share(7:40 am ET)
NEW YORK (MarketWatch) -- Auxilium Pharmaceuticals, Inc. (AUXL: news, chart, profile) said Wednesday its first-quarter loss totaled $12.3 million, or 30 cents per share, from a loss of $11.9 million, or 33 cents per share, in the same quarter a year before. Revenue for the quarter was $27.1 million versus $18.4 million a year earlier. The results matched expectations of a 30 cent loss per share, according to a poll of analysts by FactSet. The company also said its gross margin widened to 77.9% for the quarter from 72.4% in the first quarter of 2007.
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