Earning Plays

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Tuesday, June 24
Darden swings to profit, hikes dividend(5:33 pm ET)
SAN FRANCISCO (MarketWatch) -- Darden Restaurants Inc. (DRI: news, chart, profile) late Tuesday reported it swung to a fiscal fourth-quarter profit of $102 million, or 71 cents a share, which includes discontinued operations. It lost $55.1 million, or 38 cents a share, a year ago. Sales rose 25% to $1.8 billion, helped by growth at its Olive Garden restaurant. Orlando, Fla.-based Darden also operates Red Lobster, LongHorn Steakhouse and other restaurants. Looking ahead, Darden pegged sales growth for fiscal 2009 between 14% and 15%. It also increased its quarterly dividend to 20 cents a share, from 18 cents.
Sonic third-quarter net income slides(5:19 pm ET)
SAN FRANCISCO (MarketWatch) -- Drive-in restaurant chain Sonic Corp. (SONC: news, chart, profile) late Tuesday reported fiscal third-quarter earnings of $17.2 million, or 28 cents a share, down from $20.6 million, or 31 cents, a year ago. Same-store sales declined 0.4% in the quarter, primarily due to colder and wetter weather from the same period the previous year, the company said. Revenue rose to $213 million from $209.9 million a year earlier. Analysts surveyed by Factset had forecast the Oklahoma City, Okla.-based company would earn 31 cents a share on revenue of $220.4 million. Sonic, which operates over 3,400 drive-ins, expects its fourth-quarter earnings per share to rise 4% to 6% in fiscal 2008 from 96 cents a share in 2007. Analysts are projecting Sonic to report earnings of $1.05 a share in 2008.
Jabil Circuit earnings rise to $38.4 million(4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- Jabil Circuit Inc. (JBL: news, chart, profile) on Tuesday reported a fiscal third-quarter profit of $38.4 million, or 19 cents a share, on revenue of $3.1 billion. During the same period a year ago, the electronics contract manufacturer earned $6.2 million, or 3 cents a share, on sales of $3 billion. Excluding one-time items, Jabil would have reported core earnings of $52.8 million, or 26 cents a share. By that measure, analysts surveyed by FactSet Research had forecast Jabil to earn 20 cents a share on $3.08 billion in sales. For its fourth quarter, Jabil expects to earn between 21 cents and 25 cents a share on revenue in a range of $3.2 billion to $3.5 billion.
Kroger posts higher quarterly profit, updates full-year view(8:43 am ET)
NEW YORK (MarketWatch) -- Kroger Co. (KR: news, chart, profile) said Tuesday that its first-quarter earnings rose to $386.0 million, or 58 cents a share, from the year-earlier $336.6 million, or 47 cents a share, which included 2 cents of labor-related charges. On average, analysts polled by FactSet expected earnings of 54 cents a share. The Cincinnati supermarket chain said sales for the quarter ended May 24 rose to $23.1 billion from $20.7 billion a year earlier. Sales in supermarkets open at least a year increased 9.2% with fuel and 5.8% without fuel. For 2008, Kroger raised the lower end of its earnings forecast, now projecting a range of $1.85 to $1.90 a share, compared to a previous range of $1.83 to $1.90 a share. It now sees same-store-sales growth of 4% to 5.5%, excluding fuel, compared to its earlier projection of 3% to 5% growth. Shares of Kroger closed Monday at $26.00.
ConAgra says fourth-quarter earnings to be above forecast(8:42 am ET)
NEW YORK (MarketWatch) -- ConAgra Foods, Inc. (CAG: news, chart, profile) said Tuesday it expects its earnings per share for the fourth quarter to come in above the 30 cent-35 cent range forecasted earlier. It said the new expectations are due to "very strong trading and merchandising profits," adding that it "is also pleased with the overall performance of the food and ingredients segment, as well as improved execution with regard to pricing in the consumer foods segment." Before the statement, analysts were expecting, on average, ConAgra earnings of 34 cents per share for the quarter, according to a FactSet Research survey.
Kesa proforma profit climbs 7.3%, sees tough market ahead(2:42 am ET)
LONDON (MarketWatch) -- U.K. home electronics retailer Kesa Electricals (UK:KESA: news, chart, profile) said Tuesday that, after moving its financial year end by three months, net profit in the 15 months to the end of April was 119.6 million pounds ($234.8 million) compared to 109.4 million pounds for the 12 months to the end of Jan 2007. On a proforma basis, profit rose 7.3% to 114.6 million pounds compared to the same period a year earlier and revenue rose 14% to 4.51 billion pounds, driven by growth at its French Darty stores. "We are seeing a continuing decline in consumer confidence and we anticipate further difficult trading conditions ahead. Consequently, more than ever, our priorities are to focus on maintaining product margin and improving productivity," said CEO Jean-Noel Labroue.
Debenhams same-store sales up 1%(2:32 am ET)
LONDON (MarketWatch) -- U.K. department store operator Debenhams (UK:DEB: news, chart, profile) said Tuesday that its comparable sales for the 10 weeks to June 21 rose 1%. Comparable sales for the last 42 weeks are down 0.6%. Debenhams said it's continued to gain market share across key product categories and gross margin guidance for the year remains unchanged at between flat and up 0.2 percentage points. "In light of the tough trading environment across the whole U.K. retail sector, we are pleased with customer response to our new ranges and, as a result, our improving sales performance for the period," said CEO Rob Templeman.
Monday, June 23
Analyst: Rocky Mountain banks may cut dividends(12:22 pm ET)
NEW YORK (MarketWatch) -- Sandler O'Neill Research on Monday released detailed predictions for several publicly traded banks in Colorado, Idaho, Utah and Washington. A group of Sandler analysts met with executives at eight banks including AmericanWest Bancorp. (AWBC: news, chart, profile) , Sterling Financial Corp. (STSA: news, chart, profile) and Zions Bancorp. (ZION: news, chart, profile) , and most execs expected further write-downs and pressure on banking stocks. "Problem credits, and potentially charge-offs, would continue to grow over at least the near term," said Sandler O'Neill managing director Tim O'Brien. "Views on capital needs varied, with some admitting that dividend payments could be cut and others suggesting that payout levels are sustainable."
Magellan Midstream Partners increases profit per unit target(8:35 am ET)
NEW YORK (MarketWatch) -- Magellan Midstream Partners LP (MMP: news, chart, profile) on Monday increased its second-quarter earnings target to 76 cents a unit from 66 cents a unit, after the Tula, Okla. pipeline partnerhip said it escaped harm from Midwest floods. Analysts surveyed by FactSet forecast earnings of 69 cents a unit. "While recent high petroleum prices are currently having a negative impact on our pipeline volumes, the favorable impact of high prices on our commodity-driven activities is more than offsetting the impact on volumes, allowing us to increase our earnings guidance," the firm said. For 2008, Magellan Midstream lifted its earnings target to $3.13 a unit, up from $3.03 a unit.
Walgreen third-quarter profit 58 cents per share vs 56 cents(8:11 am ET)
NEW YORK (MarketWatch) -- Walgreens (WAG: news, chart, profile) said Monday its third-quarter profit totaled $572 million, or 58 cents per share, from $561 million, or 56 cents per share, in the same quarter a year before. Analysts had expected earnings of 59 cents a share, according to a survey by FactSet Research. The Deerfield, Ill., retailer said net sales for the quarter grew to $15.0 billion, up from $13.7 billion in last year's third quarter. It said its front-end sales at stores open at least one year rose by 4.6% on year.
Bunge raises earnings guidance(5:51 am ET)
LONDON (MarketWatch) -- Bunge Ltd (BG: news, chart, profile) on Monday raised its 2008 earnings guidance to a range of $9.35 to $9.65 a share, from a range of $7.10 to $7.40 a share. The group said the guidance, which includes assumed dilution relating to its convertible preference shares, was increased due to better than expected performance from its agribusiness and fertilizer segments. Separately the group announced it's agreed to buy Corn Products (CPO: news, chart, profile) for $4.8 billion in an all-stock deal.