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Wednesday, June 25
CKE Restaurants' first-quarter EPS boosted by stock buyback(4:46 pm ET)
SAN FRANCISCO (MarketWatch) -- CKE Restaurants Inc. (CKR: news, chart, profile) late Wednesday reported its first-quarter net income rose to $16.6 million, or 31 cents a share, from $15.4 million, or 23 cents a share, a year earlier. The company attributed the increase in earnings primarily to its share repurchase program which reduced the number of outstanding shares. Revenue declined to $466.2 million from $481.8 million a year ago, said the restaurant holding company. On average, analysts surveyed by FactSet Research had expected earnings of 27 cents a share on revenue of $464.5 million. Same-store sales grew 3.9% at the Carl's Jr. chain and slid 0.6% at Hardee's restaurants during the quarter. In a separate release, CKE said blended same-store sales in May were up 2.6%.
Profit, sales up at Nike(4:28 pm ET)
SAN FRANCISCO (MarketWatch) -- Nike Inc. (NKE: news, chart, profile) late Wednesday reported fiscal fourth-quarter net income rose 12% from a year ago, helped by gains in Europe and Asia as it geared up for the European soccer championship and Beijing Olympic Games. Nike posted net income of $490.5 million, or 98 cents a share. It earned $437.9 million, or 86 cents a share, in the year-earlier period. Sales jumped 16% to $5.1 billion. The earnings beat Wall Street's forecast. Analysts, on average, had estimated Nike to earn 96 cents a share on sales of $4.95 billion, according to FactSet Research. Nike shares fell 2% in late trading after the report.
Caci sees fiscal 2009 earnings of $2.90-$3.10 a share(4:27 pm ET)
SAN FRANCISCO (MarketWatch) -- Caci International Inc. (CAI: news, chart, profile) late Wednesday forecasted earnings of $2.90 to $3.10 a share with revenue ranging from $2.55 billion to $2.65 billion in fiscal 2009. Analysts surveyed by FactSet Research are expecting the company to post earnings of $3.14 a share on revenue of $2.63 billion in 2009. The information technology provider also reiterated 2008 earnings at $2.65 to $2.75 a share range on revenue of $2.38 billion to $2.43 billion. Wall Street is projecting earnings of $2.73 a share and revenue of $2.41 billion.
Red Hat profit rises almost 7%(4:17 pm ET)
SAN FRANCISCO (MarketWatch) -- Red Hat Inc. (RHT: news, chart, profile) on Wednesday reported a fiscal first-quarter profit of $17.3 million, or 8 cents a share, on revenue of $156.6 million, compared to earnings of $16.2 million, or 8 cents a share, on $118.9 million in sales during the same period a year ago. Excluding one-time items, Red Hat would have earned $37 million, or 18 cents a share. By that measure, Red Hat met the earnings estimate of analysts surveyed by FactSet Research, who also forecast the company to report $153.1 million in sales.
Research In Motion earnings double, in line with estimates(4:11 pm ET)
SAN FRANCISCO (MarketWatch) - Research In Motion saw both revenue and earnings more than double in its first fiscal quarter. For the quarter ended May 31, Research In Motion (RIMM: news, chart, profile) reported earnings of $482.5 million, or 84 cents a share, compared to earnings of $223.2 million, or 39 cents a share, for the same period last year. Revenue grew more than 100% to $2.24 billion. Analysts were expecting earnings of 85 cents a share on revenue of $2.27 billion, according to consensus estimates from FactSet Research. The company said it expects revenue of $2.55 billion to $2.65 billion with earnings-per-share between 84-89 cents for the second fiscal quarter. Analysts were expecting revenue of $2.44 billion and earnings of 90 cents a share for the period.
Oracle profit rises 27% amid strong software sales(4:10 pm ET)
SAN FRANCISCO (MarketWatch) - Oracle Corp. said Wednesday its fiscal fourth-quarter profit rose 27%, despite lingering economic uncertainty in the U.S. Business software maker Oracle (ORCL: news, chart, profile) said net income for the period ended in May rose to $2.04 billion, or 39 cents a share, from $1.6 billion, or 31 cents a share in the same period a year earlier. Meanwhile revenue rose to $7.24 billion from $5.83 billion. Excluding special items, Oracle said net income for the quarter was 47 cents a share. Wall Street analysts on average estimated Oracle would post earnings excluding special items of 45 cents a share, and $6.85 billion in revenue, according to FactSet Research.
Hudson City CEO sees 'significant' rise in full-year profit(9:24 am ET)
BOSTON (MarketWatch) -- Hudson City Bancorp (HCBK: news, chart, profile) Chief Executive Ronald Hermance on Wednesday said he sees "positive trends in several of the bank's key performance metrics." The CEO projected a "significant increase" in earnings for the current year, citing strength in areas such as loan production and market share, capital, asset quality and net interest margin. In the previous year, Hudson City delivered profit of 58 cents a share while the consensus analyst estimate for the current year is 85 cents a share, or a 46% rise. "Given current market conditions, we see the estimate as reasonable," Hermance said.
MasterCard settles AmEx case, sees $1 bln charge(8:49 am ET)
BOSTON (MarketWatch) -- MasterCard Inc. (MA: news, chart, profile) on Wednesday said it has reached an agreement to settle outstanding litigation with American Express Co. (AXP: news, chart, profile) . In a separate statement, AmEx said it was dropping the lawsuit alleging MasterCard had blocked it from the bank-issued card business in the U.S. MasterCard said the agreement calls for 12 quarterly payments, starting in the third quarter of 2008, of $150 million. The settlement payments are estimated to be about $1 billion in total, MasterCard said, adding it will take a charge for the settlement in the current quarter. The maximum amount of the settlement is $1.8 billion, MasterCard said. (Updated to correct company name.)
Dean Foods raises second-quarter guidance(8:31 am ET)
NEW YORK (MarketWatch) -- Dean Foods Co. (DF: news, chart, profile) said Wednesday that it expects second-quarter earnings of at least 32 cents a share, ahead of its previous guidance of 26 to 31 cents a share. The Dallas-based milk producer also reaffirmed its full-year earnings guidance of at least $1.20 a share. Shares of Dean Foods closed Tuesday at $18.39.
American Greetings' first-quarter earnings fall 56% (8:04 am ET)
NEW YORK (MarketWatch) -- American Greetings (AM: news, chart, profile) said on Wednesday that its first-quarter earnings fell 56% to $13.3 million, or 27 cents a share, from $30.1 million, or 54 cents a share, in the year-earlier period. Revenue for the company rose 2% to $428.3 million from $420 million. The Cleveland, Ohio-based greeting-card company reaffirmed its fiscal 2009 estimate of earnings from continuing operations to be between $1.60 to $1.85 a share.
Emcor sees 2008 profit of $2.22 to $2.42 a share(7:51 am ET)
NEW YORK (MarketWatch) -- Emcor Group (EME: news, chart, profile) on Wednesday said it expects 2008 earnings of $2.22 to $2.42 a share, up from its earlier forecast of $2.08 to $2.28 a share. Analysts surveyed by FactSet forecast earnings of $2.31 a share, on average.
Williams lifts earnings outlook on higher natural gas prices(7:42 am ET)
NEW YORK (MarketWatch) -- Williams Companies Inc. (WMB: news, chart, profile) on Wednesday upped its 2008 profit estimate to a range of $2.30 to $2.80 a share, from its earlier view of $1.70 to $2.10 a share. For 2009, Williams increased its profit view to $2.05 to $2.90 a share, from $1.80 to $2.30 a share earlier. The Tulsa, Okla. natural gas and crude oil producer cited more favorable commodity prices. "The more favorable prices are expected to benefit the company's exploration & production and midstream businesses," Williams said. Analysts had been expecting earnings of $2.22 a share and 2009 earnings of $2.37 a share, according to a survey by FactSet.
FBR Capital slashes profit targets for five oil refiners(7:24 am ET)
NEW YORK (MarketWatch) -- FBR Capital Markets analyst Eitan Bernstein on Wednesday cut his second-quarter estimates for oil refiners on the heels of record-setting costs for crude oil, used as a raw material for gasoline, diesel and jet fuel. Frontier Oil (FTO: news, chart, profile) is expected to earn 45 cents a share, down from 90 cents a share. Holly Corp. (HOC: news, chart, profile) is now at 70 cents a share, down from $1 a share; Sunoco (SUN: news, chart, profile) now 50 cents a share from $1.10 a share, Tesoro (TSO: news, chart, profile) now 5 cents a share from 70 cents a share and Valero (VLO: news, chart, profile) to $1.55 a share from $2.25 a hare. Citing weak refining margins, Bernstein said he expects margins to stay soft at least through the fall.
Rockwell Automation to fall short of 2008 earnings target(7:06 am ET)
NEW YORK (MarketWatch) -- Rockwell Automation Inc. (ROK: news, chart, profile) said Wednesday it expects third-quarter earnings of 93 cents to $1 a share. The Milwaukee industrial firm said it'll fall short of its 2008 earnings target of $4.25 to $4.45 a share because of less favorable market conditions in the U.S. and Europe. Analysts surveyed by FactSet forecast 2008 earnings of $4.28 a share, on average.
General Mills' fourth-quarter earnings dip on hedging costs(6:51 am ET)
LONDON (MarketWatch) -- Food giant General Mills, Inc. (GIS: news, chart, profile) said fourth-quarter net income fell 17% to $185 million, or 53 cents a share, from $224 million, or 62 cents a share, earned in the year-earlier quarter. Excluding one-time losses on the value of certain commodity positions, adjusted earnings rose 18% to 73 cent a share from the year-earlier period. Sales rose 13% to $3.5 billion. The average forecast of 14 analysts polled by FactSet was for earnings of 71 cents a share. For fiscal 2009, assuming no impact from the mark-to-market valuation of commodity positions, earnings are expected to be in the range of $3.78 to $3.83 a share. The company said, however, that fiscal 2009 earnings would continue to include such valuation even though at the moment it cannot predict its impact on results. Sales for the period are expected to rise by a mid single-digit rate, driven primarily by pricing and mix.
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.
Thursday, June 19
Americans driving fewest miles since 2003, report says(12:42 pm ET)
NEW YORK (MarketWatch) -- Americans drove just below 935 billion vehicle miles in 2008 as of April 30, the lowest total since 2003's figure of 899 billion miles, according to the monthly Travel Trends report from the U.S. Federal Highway Administration. In April, Americans drove 246 billion miles, down 1.8% from 250 billion in the year-ago period. Meanwhile, the U.S. average retail price for a gallon of gasoline edged down a penny to $4.07 a gallon in the last day, but remaining close to the record level of $4.08 a gallon, according to the Daily Fuel Gauge Report from AAA.
Carnival posts second-quarter profit, warns on full year(9:44 am ET)
NEW YORK (MarketWatch) -- Carnival Corp. (CCL: news, chart, profile) (CUK: news, chart, profile) said Thursday that its fiscal second-quarter earnings were $390 million, or 49 cents a share, compared to $390 million, or 48 cents a share, in the year-earlier period. The cruise operator said revenue for the quarter ended May 30 increased to $3.38 billion from $2.90 billion a year ago. Based on current fuel-price forecasts, the company now sees 2008 earnings of $2.70 to $2.80 a share, compared to its prior view of $3 to $3.20 a share. For the third quarter, Carnival expects earnings of $1.56 to $1.58 per share, down from $1.67 per share a year ago.
AIG climbs in pre-trade on Citi upgrade(8:46 am ET)
NEW YORK (MarketWatch) -- Shares of American International Group (AIG: news, chart, profile) climbed almost 3% in premarket trading Thursday after an analyst for Citigroup Inc. (C: news, chart, profile) upgraded the insurance giant to buy. Joshua Shanker also upped his price target to $42 and said AIG is poised for over 35% in upside over the next year. "A quarterly result, even with a 'kitchen sink' of losses, and maybe because of the 'kitchen sink,' could prove a catalyst to trigger renewed interest in the stock," Shanker wrote in a research note. "We believe that the company can be viewed as undervalued, even if it fails to achieve growth."
Aetna expects 2008 operating earnings of $4 a share(8:33 am ET)
NEW YORK (MarketWatch) -- Aetna (AET: news, chart, profile) on Thursday said it expects 2008 operating earnings of $4 a share and second-quarter operating earnings of 93 cents a share. Wall Street analysts are forecasting earnings of $3.96 a share for 2008 and 94 cents a share for the second quarter, on average.