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Tuesday, May 6
THQ swings to loss for fourth fiscal quarter(4:47 pm ET)
SAN FRANCISCO (MarketWatch) -- THQ Inc. swung to a loss for its fourth fiscal quarter despite a rise in sales. For the quarter ended March 31, the video game publisher (THQI: news, chart, profile) reported a net loss of $34.5 million, or 52 cents a share, compared to net income of $6.5 million, or 9 cents a share, for the same period last year. Excluding certain charges, the company said net losses would have come in at $24.8 million, or 37 cents a share. Revenue grew 8.6% to $187 million. The company said revenue would have totaled $217.6 million were it not for the impact of deferred revenue from "Frontlines: Fuel of War." Analysts were expecting a loss of 4 cents a share on revenue of $200.4 million, according to estimates from FactSet Research.
Tesoro swings to a loss as refining margins fall 52%(4:42 pm ET)
SAN FRANCISCO (MarketWatch) -- Oil refiner Tesoro Corp. (TSO: news, chart, profile) , pinched by rising crude prices and narrower margins for its finished products, reported late Tuesday a first-quarter loss of $82 million, or 60 cents a share. The company posted net income of $116 million, or 84 cents a share, a year ago. Overall refining margins fell to $6.54 a barrel from $13.50 a year ago. Revenue for the three months ended March 31 rose to $6.53 billion from $3.88 billion. Analysts polled by FactSet had predicted the San Antonio, Texas, company would report a loss of 29 cents a share. Tesoro shares fell 32 cents ahead of the report to close at $25. The share price is down 48% so far this year.
Harman swings to loss, hurt by 'warranty' charges(4:26 pm ET)
SAN FRANCISCO (MarketWatch) -- Harman International Industries Inc. (HAR: news, chart, profile) late Tuesday swung to a fiscal third-quarter loss, compared to a year-earlier, and revamped part of its senior management team. Harman reported a net loss of $3.3 million, or 6 cents a share. The company said it was hurt by "unprecedented charges for warranty issues" due to problems with a memory chip. A year ago, it earned $71 million, or $1.07 a share. Harman, of Washington, D.C., is a maker of stereo and entertainment products for cars and consumer electronics. It said sales rose to $1 billion, from $883 million in the year-earlier period.
Pitney Bowes posts lower profit, raises outlook(4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- Pitney Bowes Inc. (PBI: news, chart, profile) on Tuesday reported a first-quarter profit of $119.1 million, or 56 cents a share, down from $144.8 million, or 65 cents a share, a year earlier. Excluding restructuring charges, earnings came to 66 cents a share. Revenue for the postage meter machine maker rose 11% to $1.6 billion. Analysts polled by FactSet Research were looking for earnings, on average, of 65 cents a share on sales of $1.49 billion. The Stamford, Conn.-based company also raised its adjusted 2008 earnings target to a range from $2.80 to $2.90 a share. Wall Street previously forecast a profit of $2.85 a share.
Web advertising firm ValueClick posts profit gain(4:15 pm ET)
SAN FRANCISCO (MarketWatch) - ValueClick Inc. said Tuesday its first-quarter profit and sales rose compared to the same period a year earlier. Westlake Village, Calif.-based Internet advertising services company ValueClick (VCLK: news, chart, profile) said net income for the period ended in March rose to $19.2 million, or 19 cents a share, from $18.6 million, or 18 cents a share in the same period a year earlier. Meanwhile revenue rose 12% to $176 million. Analysts estimated ValueClick would post earnings of 16 cents a share, and $169.86 million in revenue, according to FactSet Research.
Disney says earnings pass $1 billion mark, up 21%(4:08 pm ET)
LOS ANGELES (MarketWatch) - Walt Disney Co. (DIS: news, chart, profile) said Tuesday that second-quarter net income was $1.13 billion, or 58 cents a share, compared with $931 million, or 44 cents a share, for the same period a year ago. Reporting after the close, the Burbank, Calif.-based entertainment giant said sales were $8.71 billion vs. last year's $7.95 billion. Analysts polled by FactSet Research expected Disney to earn 51 cents a share on sales of $8.51 billion. Disney shares ended trading up 1.3% to $33.73.
Wachovia restates first-quarter results lower(10:51 am ET)
BOSTON (MarketWatch) -- Wachovia Corp. (WB: news, chart, profile) in a filing Tuesday restated first-quarter financial results due to valuation losses on stable value agreements provided by a third-party guarantor with respect to three related contracts within Wachovia's bank-owned life insurance portfolio. After a review, Wachovia has determined that the company will record valuation losses of $315 million on the related bank-owned life insurance assets in its financial statements for the quarter ended March 31, which will increase the net loss available to common stockholders for the quarter to $708 million, or 36 cents a share. In mid-April, Wachovia had reported a first-quarter net loss of $393 million, or 20 cents a share. The stock was off 1% at last check.
CORRECT: Energy stocks move up with oil prices(9:41 am ET)
NEW YORK (MarketWatch) -- Energy stocks moved higher in early action Tuesday despite weakness in the broad market, as crude prices remained in record territory. The Amex Oil Index (XOI: news, chart, profile) rose 0.8% to 1,514. The Amex Natural Gas Index (XNG: news, chart, profile) advanced 1.3% to 691. Spectra Energy (SE: news, chart, profile) rose 4.4% to $26.98 after it announced a stock buyback, dividend boost, and increased first-quarter profit. Among oil services shares, Noble Corp. (NE: news, chart, profile) rose 2% to $60.47. Crude futures rose 45 cents to $120.42. (Updated to reflect rise in Amex Oil Index.)
PG&E Corp.'s first-quarter profit falls(9:17 am ET)
NEW YORK (MarketWatch) -- PG&E Corp. (PCG: news, chart, profile) said Tuesday that its first-quarter net income fell to $224 million, or 62 cents a share, from $256 million, or 71 cents a share, in the year-earlier period. A FactSet survey of analysts, on average, predicted earnings of 68 cents a share for the quarter. The San Francisco energy company backed its earnings from operations views of $2.90 to $3 a share for 2008 and $3.15 to $3.25 a share for 2009. On Monday, PG&E shares closed down 19 cents, or 0.5%, to $40.71.
PSEG net income climbs 36%(8:58 am ET)
NEW YORK (MarketWatch) -- Public Service Enterprise Group Inc. (PSEG) (PEG: news, chart, profile) on Tuesday said first-quarter net income rose 36% to $448 million, or 88 cents a share, from $329 million, or 65 cents a share in the year-ago period. The Newark, N.J. electric and gas utility said non-GAAP operating earnings rose to 85 cents a share from 63 cents a share. The results were adjusted to reflect a 2-for-1 stock split effective Feb. 4. Analysts surveyed by FactSet forecast earnings of 73 cents a share. PSEG Power's margins benefited from recontracting at higher prices, and an increase in generation in response to strong market fundamentals, offset partly by lower demand from a more mild winter. PSEG expects 2008 operating earnings of $2.80-$3.05 a share, compared to the target of $2.99 a share.
MGM Mirage profit and revenue fall(8:48 am ET)
NEW YORK (MarketWatch) -- MGM Mirage (MGM: news, chart, profile) on Tuesday said first-quarter net income fell to $118.3 million, or 40 cents a share, from $168.2 million, or 57 cents a share, in the year-ago period. Revenue fell to $1.88 billion from $1.93 billion. The Las Vegas-based company experienced low-single digit percentage decreases in both gaming and non-gaming revenues on a quarter-over-quarter basis, while earnings were hurt by the temporary closure of the Monte Carlo and ramp-up costs related to the recent opening of two resorts. Analysts, on average, expected it to earn 44 cents a share on revenue of $1.9 billion, according to FactSet Research.
Hospitality Properties Trust's first-quarter results rise(8:35 am ET)
NEW YORK (MarketWatch) -- Hotel real estate investment trust Hospitality Properties Trust (HPT: news, chart, profile) said Tuesday that its first-quarter net income available for common shareholders rose to $48.3 million, or 51 cents a share, from $39 million, or 43 cents a share, in the year-earlier period. Funds from operations for the quarter also increased to $110.9 million, or $1.18 a share, from $98.5 million, or $1.08 a share. Shares of Hospitality Properties Trust closed Tuesday at $31.96.
Louisiana-Pacific net loss widens as revenue falls(8:13 am ET)
NEW YORK (MarketWatch) -- Louisiana-Pacific Corp. (LPX: news, chart, profile) on Tuesday said its first-quarter loss increased to $46 million, or 45 cents a share, from $37 million, or 36 cents a share in the year-ago period. Revenue at the Nashville, Tenn. maker of building products fell to $349 million from $395 million. Analysts expected the company to lose 49 cents a share. "The continued weakness in the housing sector resulted in LP reporting a loss for the first quarter," said Rick Frost, CEO. "We took significant downtime at most of our mills to balance production to lowered demand. Based upon the current inventory of existing homes, difficulties in the mortgage market, energy related raw materials costs and the possibility of a mild recession; we expect these conditions to continue for at least the next several quarters."
Fannie Mae's regulator agrees to reduce capital surplus(8:00 am ET)
WASHINGTON (MarketWatch) -- Fannie Mae's federal regulator said on Tuesday it will reduce the company's capital-surplus requirement to 15% from 20% when Fannie Mae (FNM: news, chart, profile) completes a new capital-raising plan. Fannie said Tuesday it is planning to raise $6 billion in new capital. The mortgage-finance giant reported a first-quarter loss of $2.2 billion on Monday, or $2.57 a share, citing credit-related expenses.
Playboy swings to first-quarter loss(7:57 am ET)
NEW YORK (MarketWatch) -- Playboy Enterprises Inc. (PLA: news, chart, profile) said Tuesday that it swung to a first-quarter loss of $3.1 million, or 9 cents a share, from a profit of $1.5 million, or 4 cents a share, in the year-earlier period. The Chicago-based media company said quarterly revenue was $78.5 million compared to the year-ago $85.4 million, citing "continued structural and economic pressures on the company's domestic media businesses" for the decline. Shares of Playboy closed Monday at $8.26.
Arch Chemical net income down, but ahead of target(7:56 am ET)
NEW YORK (MarketWatch) -- Arch Chemical Inc. (ARJ: news, chart, profile) on Tuesday said first-quarter net income fell to $5.7 million, or 23 cents a share, from $14.6 million, or 60 cents a share in the year-ago period. Earnings in the year-ago period were 26 cents a share, excluding a one-time gain of $12.8 million. Revenue rose 9% to $347.1 million. The Norwalk, Conn. company said its performance products unit results were lower than expected due to record oil-based raw material costs. Analysts surveyed by FactSet forecast earnings of 12 cents a share, on average. Second-quarter earnings from continuing operations are expected to be in the $1.30 to $1.40 range, compared to the analyst target of $1.50 a share. The company continues to expect 2008 earnings of $2.55-$2.65 a share. The Wall Street target is $2.57 a share.
Weekly chain-store sales rose 2.3% from year ago: survey(7:54 am ET)
NEW YORK (MarketWatch) -- U.S. chain-store sales for the week ended May 3 rose 2.3% from the year-ago period, according to a survey released Tuesday by the International Council of Shopping Centers. On a week over week basis, sales slipped 0.2%. "The consumer faced intensified economic headwinds throughout the month with a contraction in April employment, record high gasoline prices, and even Mother Nature was less than favorable with a seasonably warm start to the month, but a cold finish," said Michael Niemira, ICSC's chief economist. ICSC expects April sales to rise by 1.5% to 2.0%. Most retailers will report monthly sales at stores open at least one year -- an industry metric known as same-store sales -- on Thursday.
Fannie Mae reports $2.2 billion loss in first quarter(7:49 am ET)
WASHINGTON (MarketWatch) -- Mortgage-finance giant Fannie Mae (FNM: news, chart, profile) reported a much greater-than-expected loss in the first quarter, losing $2.2 billion as credit-related expenses took a bite out of its bottom line, and said it's planning to raise $6 billion in new capital. On a per-share basis, Fannie Mae lost $2.57 in the first quarter, much more than the 81-cent-a-share loss expected by Wall Street analysts surveyed by FactSet. In the same period a year ago, Fannie Mae earned 85 cents a share. Shares of Fannie Mae were recently down 13% in pre-market trading.
D.R. Horton swings to second-quarter loss(7:40 am ET)
NEW YORK (MarketWatch) -- D.R. Horton Inc. (DHI: news, chart, profile) said Tuesday that it swung to a fiscal second-quarter loss of $1.31 billion, or $4.14 a share, from a year-earlier profit of $51.7 million, or 16 cents a share. The loss for the latest period included $834.1 million in pretax charges and write-offs related to inventory impairments. The Fort Worth, Texas, home builder said revenue for the period fell 38% to $1.62 billion from $2.62 billion. On average, analysts polled by Thomson Reuters expected a loss of 39 cents a share on revenue of $1.36 billion. D.R. Horton said it closed on 6,719 homes in the latest quarter, compared with 9,792 in the year-ago quarter.
Lazard profit falls 70%(7:35 am ET)
NEW YORK (MarketWatch) -- Lazard Ltd. (LAZ: news, chart, profile) said Tuesday its first quarter net income fell 70%, to $7.8 million, or 14 cents a share, compared to $26.4 million, or 47 cents a share a year ago. Revenue for the quarter fell to $350.1 million from $398.6 million a year ago. CEO Bruce Wasserstein said in a press release that, "There is little transparency or certainty about the level of liquidity and market activity over the remainder of this year, but we expect some improvement in market activity by year end." And, the firm's CFO, Michael Castellano, said, ""Our first-quarter results are not, we believe, representative of the outlook for the year."
Perrigo third-quarter earnings 42 cents per share(7:30 am ET)
NEW YORK (MarketWatch) -- Perrigo Co. (PRGO: news, chart, profile) said Tuesday its third-quarter profit totaled $39.97 million, or 42 cents per share, from $17.06 million, or 18 cents per share, in the same quarter a year before. Sales for the quarter were $503.7 million versus $362.3 million in the year-ago quarter. Analysts had expected earnings of 41 cents per share, according to a FactSet Research poll. Allegan, Mich.-based Perrigo said it was narrowing its expected fiscal 2008 adjusted earnings-per-share estimate to $1.55-$1.60.
Joy Global trims 2008 profit target on acquisition costs(7:14 am ET)
NEW YORK (MarketWatch) -- Joy Global Inc. (JOYG: news, chart, profile) on Tuesday lowered its 2008 earnings target to $2.96 to $3.22 a share from its earlier view of $3.15 to $3.45 a share, but kept its revenue target unchanged at $3.1 billion to $3.3 billion. The Milwaukee-based owner of P&H Mining Equipment and Joy Mining Machinery said it now expects higher purchase accounting charges for its acquisition of Continental Global Inc. and costs for the early termination of a maintenance and repair contract.
R.R. Donnelley profit rises, meets forecast(6:51 am ET)
LONDON (MarketWatch) -- R.R. Donnelley (RRD: news, chart, profile) said first-quarter net income rose to $182.5 million, or 85 cents a share, from $138.8 million, or 64 cents a share. Sales rose to $3 billion from $2.8 billion, the printing giant said. Non-GAAP earnings from continuing operations were 69 cents a share. It expects annual adjusted earnings between $3.08 to $3.15 a share, which is up three cents on the low end. Analysts polled by FactSet expected earnings of 69 cents a share for the quarter and $3.12 for the year.
Cimarex 1st-quarter net doubled on 55% higher revenue(6:29 am ET)
TEL AVIV (MarketWatch) -- Cimarex Energy Co., (XEC: news, chart, profile) the Denver oil-and-gas producer, reported first-quarter net income more than doubled on 55% higher revenue. Earnings reached $149.8 million, or $1.76 a share, from $64.6 million, or 77 cents, in the year-earlier period. Revenue rose to $477.1 million from $306.9 million. More production -- an average of 8% more oil and gas daily -- and higher prices drove the improved results, Cimarex said on Tuesday.
A&P 4th-period loss widens; adjusted Ebitda triples(6:24 am ET)
TEL AVIV (MarketWatch) -- Great Atlantic & Pacific Tea Co., (GAP: news, chart, profile) the Montvale, N.J., operator of A&P supermarkets, reported its fiscal fourth-quarter net loss widened on 74% higher sales. The sales figure reflects inclusion of Pathmark Stores for the first time. For the quarter ended Feb. 23, the affiliate of closely held Tengelmann Group of Germany reported a loss of $61.5 million, or $1.73 a share, compared with $7.2 million, or 17 cents, in the year-earlier period. Shares outstanding rose 22% to 50.7 million. Excluding non-operating special items, A&P's earnings before interest, taxes, depreciation and amortization more than tripled to $72.2 million. Sales reached $2.2 billion from $1.27 billion. Comparable-store sales, which exclude the early-fourth-quarter acquisition of Pathmark, rose 3%. Comparable-store sales for Pathmark in the fiscal fourth quarter rose 1.5%. A&P operates 447 stores in eight states and Washington, D.C., under brands including A&P, Waldbaum's, Pathmark and others.
Spectra Energy net up 56%, sets buyback(6:13 am ET)
LONDON (MarketWatch) -- Gas infrastructure firm Spectra Energy (SE: news, chart, profile) said its profit rose 56%, its board approved a $600 million stock buyback and it lifted its quarterly dividend. The company's net income rose to $367 million, or 58 cents a share, with revenue up 15% to $1.61 billion, helped by higher commodity prices and a strong Canadian dollar. It expects to exceed the $1.56 in earnings per share in 2008 for its employee incentive target. Analysts polled by FactSet expected earnings of 46 cents a share for the quarter and $1.62 for the year.
Delek US swings to 1st-quarter loss on 51% higher revenue(5:29 am ET)
TEL AVIV (MarketWatch) -- Delek US Holdings Inc., (DK: news, chart, profile) the Brentwood, Tenn., gasoline refiner and convenience-store operator, swung to a first-quarter net loss from a year-earlier profit on 51% higher revenue. The loss was $5 million, or 9 cents a share, compared with net income of $20.9 million, or 40 cents, in the year-earlier period. The latest period reflects a $6.5 million non-cash loss on an investment in Lion Oil and a $2.1 million non-cash gain on ethanol-hedging positions. Sales reached $1.22 billion from $805.6 million. The first-quarter results reflected 68% higher crude-oil prices, the affiliate of Israel's Delek Group said.
Taleo 1st-quarter net up; agrees to acquire software firm(5:15 am ET)
TEL AVIV (MarketWatch) -- Taleo Corp., (TLEO: news, chart, profile) the Dublin, Calif., provider of solutions that enable companies to assess and optimize their workforces, reported that first-quarter net income rose 76% and said it would buy a software provider for $128.8 million of cash and stock. Earnings reached $1.6 million, or 6 cents a share, from $908,000, or 3 cents, in the year-earlier period. Shares outstanding rose 11% to 28.9 million. Revenue climbed 30% to $37.2 million from $28.7 million. Taleo definitively agreed to acquire closely held Vurv Technology Inc., the Jacksonville, Fla., provider of talent-management-software solutions. The deal, which Taleo hopes to close in the second quarter, should add to adjusted earnings in 2008, the company said.
NYSE Euronext profit surges, on track for cost savings(2:51 am ET)
LONDON (MarketWatch) -- Stock exchange operator NYSE Euronext (NYX: news, chart, profile) (FR:NYX: news, chart, profile) said Tuesday that its first-quarter net profit jumped to $230 million, or 87 cents a share, from $68 million, or 43 cents a share, due to the acquisition of the European Euronext business as well as rising volumes. Assuming the Euronext deal had occurred a year earlier and ignoring merger expenses, profit was up 53% at $241 million, or 91 cents a share. Analysts polled by FactSet had been expecting earnings of 82 cents a share. Total revenue for the quarter rose 84% to $1.29 billion and the group said it beat its cost-savings goal for the quarter and is well on target to achieve annual technology-related savings of $250 million.
Lloyds TSB remains on track(2:44 am ET)
LONDON (MarketWatch) -- U.K. banking group Lloyds TSB (UK:LLOY: news, chart, profile) (LYG: news, chart, profile) said Tuesday that it "remains on track to deliver a good performance" in the first half of 2008 after maintaining a strong liquidity and funding position. Lloyds said the impact from the credit crisis on its wholesale and international banking division was 387 million pounds ($762 million) in the first quarter. Of that impact, 287 million pounds was a result of mark-to-market adjustments in the group's trading portfolio. The bank also took a 740 million pound adjustment to assets held as available-for-sale, but this will not affect its capital position. "Excluding the impact of market dislocation and insurance related volatility, each division and the group delivered double-digit profit before tax growth in the first quarter of 2008," said CEO Eric Daniels.