Earning Plays

[3xBuBu]

Thursday, July 3
Financial stocks climb in early trade(9:39 am ET)
NEW YORK (MarketWatch) -- U.S. financial stocks rose in early trade Thursday, as investors appeared immune to higher-than-expected job losses and a rate hike by the European Central Bank. The Financial Select Sector SPDR (XLF: news, chart, profile) , an ETF that tracks the financial stocks in the S&P 500, rose 1.5%, while the Amex Securities Broker/Dealer Index (XBD: news, chart, profile) was up 0.8%. Early gainers included shares of European banks UBS (UBS: news, chart, profile) and Barclays PLC (BCS: news, chart, profile) , which each climbed more than 3%.
British Airways June passengers down 2.9%(9:32 am ET)
LONDON (MarketWatch) -- British Airways (UK:BAY: news, chart, profile) said Thursday that the total number of passengers carried in June fell 2.9% from a year earlier to 2.92 million. Traffic, measured in revenue passenger kilometers, fell 3.7% and passenger load factor, a measure of passengers against available seats, fell 3.8 percentage points to 76.7%. The airline said the U.K. consumer environment is difficult, leading to the reduced traffic volumes, and added longhaul premium and shorthaul non-premium continue to be the better performing segments. The company also noted that significant increases have been made to prices including surcharges reflecting a rise in fuel costs.
Rite-Aid's same-store sales fell 0.4% from year earlier(8:27 am ET)
NEW YORK (MarketWatch) -- Rite Aid Corp. (RAD: news, chart, profile) said Thursday that its June same-store sales, or sales at stores open at least a year, decreased 0.4% from a year ago. The Camp Hill, Pa., drugstore chain's pharmacy same-store sales decreased 0.5%, while front-end same-store sales fell 0.2%. Rite Aid's June total drugstore sales fell 2.5% to $2.02 billion from $2.07 billion, with prescription revenue accounting for 66.5% of drugstore sales. Rite-Aid attributed some of the lower numbers to a negative impact from recently acquired Brooks Eckerd stores and the switch of allergy medicine Zyrtec to over-the-counter status.
Long-term supply jitters drive record oil prices, exec says(8:23 am ET)
NEW YORK (MarketWatch) -- Chevron (CVX: news, chart, profile) executive John Watson on Thursday blamed record oil prices on "fundamental concerns about the outlook for physical supplies in the long term." Watson, vice president for strategy and development, told the World Petroleum Congress that government policies will affect the ability of oil companies to supply markets. "The U.S. shouldn't just sit back, consume resources and let someone else resolve the problem of supply," he said, according to published reports.
Vtech profit climbs 18%, doesn't expect growth this year(6:58 am ET)
LONDON (MarketWatch) -- Vtech Holdings (VTKHY: news, chart, profile) said year to March 31 profit rose 18% to $216 million after revenue grew 6% to $1.55 billion. Excluding a special dividend paid last year, its payout is up 26% to 63 cents for the year. The telephone maker said it was "prudent" not to expect growth in the curren year as the economic conditions in the U.S. and elsewhere are worsening and cost pressures will continue.
Oce shares slump after weak profit, job cuts(3:17 am ET)
LONDON (MarketWatch) -- Shares in printer maker Oce (NL:35493: news, chart, profile) dropped 18.5% in early trading Thursday after the company reported a 70% drop in second-quarter profit to 5.5 million euros ($8.7 million) and said it would cut around 600 jobs. The company said the weak economy in the U.S. had hit sales, with the financial sector's troubles hurting sales of its continuous feed print systems and the slowdown in the construction sector impacting sales of wide-format printers. The group said total sales fell 9.3% to 704.7 million euros and added it's hoping to save an additional 50 million euros a year of costs from the job reductions and other measures.
Game sees performance ahead of expectations(2:25 am ET)
LONDON (MarketWatch) -- U.K. computer and video games retailer Game Group (UK:GMG: news, chart, profile) said Thursday that it's performed slightly ahead of expectations in the first half of the year thanks to a strong release schedule of new games. The group said it expects pretax profit before one-time items to be at least 33 million pounds for the first half of the year, compared to 2.7 million pounds a year ago. Game said it "recognizes the challenges of the wider economic environment." and will concentrate on delivering competitive deals and promoting the value of its pre-owned sales.
Amec ups margin forecast to 6.5% as trading remains strong(2:20 am ET)
LONDON (MarketWatch) -- U.K. engineering firm Amec (UK:AMEC: news, chart, profile) said Thursday that its markets and trading performance have remained strong as it raised its margin forecast for the year to 6.5% from 6%. The group said natural resources end markets have remained buoyant, while its power and processes division has shown an improved performance.
Wednesday, July 2
UniFirst net income rises 23%(9:20 am ET)
NEW YORK (MarketWatch) -- UniFirst Corp. (UNF: news, chart, profile) on Wednesday said third-quarter net income rose 23% to $16.9 million, or 87 cents a share, from $13.7 million, or 71 cents a share in the year-ago period. Revenue at the Wilmington, Mass. workplace uniform company rose to $254.6 million from $229.8 million.
OPEC repeats claim of speculators causing record oil prices(8:55 am ET)
NEW YORK (MarketWatch) -- Abdalla Salem el-Badri, secretary general of the Organization of the Petroleum Exporting Countries, on Wednesday reiterated the cartel's position that record oil prices are mostly the fault of speculators. "70% of crude contracts on the Nymex are held by speculators...Some form of regulation is needed," el-Bradri said at the World Petroleum Congress in Madrid, according to press reports. Tighter regulation should apply not only for oil but other commodities, he said. "The market has no shortage of physical crude," said el-Badri, who added that supply is currently higher than demand.
Acuity Brands profit rises, cautious on year(8:33 am ET)
NEW YORK (MarketWatch) - Acuity Brands Inc. (AYI: news, chart, profile) on Wednesday its fiscal third-quarter net income rose to $41.1 million, or $1 a share, from $38.7 million, or 88 cents a share, in the year-ago period. On a continuing operations basis, it earned $1.01 a share compared with 78 cents a share. Net sales rose to $512.4 million from $502.4 million. "Looking ahead, various leading indicators such as employment, housing demand, consumer sentiment, bank lending standards, and commodity prices are signaling a slowdown in future non-residential construction activity, our primary market," said Vernon Nagel, chairman, president, and chief executive. The lighting company expects unit sales growth to be "challenging" for the remainder of fiscal year 2008 and into 2009.
Morgan Stanley to sell roughly half its stake in MSCI(7:51 am ET)
BOSTON (MarketWatch) -- Index provider and research firm MSCI Inc. (MXB: news, chart, profile) Wednesday said it intends to file "shortly" a registration statement for the sale by Morgan Stanley (MS: news, chart, profile) of about half its stake in MSCI through the sale of common stock. The company said the move is consistent with Morgan Stanley's earlier view that it could sell a portion of its ownership in MSCI, and that it may ultimately sell the entire stake. Separately, MSCI before the opening bell said its second-quarter net income dropped 6% from a year earlier to $18.6 million, or 18 cents a share.
Family Dollar Stores net income up 7%(7:18 am ET)
NEW YORK (MarketWatch) -- Family Dollar Stores Inc. (FDO: news, chart, profile) on Wednesday said third-quarter net income for the three months ended May 31 rose 7% to $64.7 million, or 46 cents a share, from $60.4 million, or 40 cents a share in the year-ago period. Revenue stayed about flat at $1.7 billion. Analysts surveyed by FactSet Research forecast earnings of 40 cents a share and revenue of $1.7 billion, on average. The Matthews, S.C. retailer said it expects fourth-quarter earnings of $1.58 to $1.63 a share, with same-store sales growth of 6% in June.
Taylor Wimpey unable to raise further equity capital(2:29 am ET)
LONDON (MarketWatch) -- U.K. home builder Taylor Wimpey (UK:TW: news, chart, profile) said Wednesday that "in light of current market conditions" it hasn't been able to reach a satisfactory deal to raise further equity capital, as it also announced the departure of its finance director. The company, which had announced at the end of June that it was talking to a number of existing and potential investors, said it will continue to evaluate options to secure value for its shareholders. On its trading, the company said U.K. housing reservations are down 45% and total completions in the first half of the year were down by a third. It added it expects the U.K. housing market to remain weak at least through 2008 and doesn't anticipate any recovery in the short term. In the U.S. Taylor Wimpey said housing markets may have stabilized, but no material recovery can be expected until 2009 at the earliest. Peter Johnson, group finance director, will stand down at the end of 2008 and an external recruitment process has already begun, it added.
Marks & Spencer U.K. sales decline(2:21 am ET)
LONDON (MarketWatch) -- U.K. clothing and food retailer Marks & Spencer (UK:MKS: news, chart, profile) said Wednesday that total group sales in the 13 weeks to June 28 rose 1.3%, due to strong international sales, while the U.K. market has continued to weaken. Total U.K. sales fell 0.5%, with slightly higher food sales helping offset a decline in clothing sales. U.K. same-store sales for the period were down 5.3%. The group said it needs to increase the pace of change on a number of operating and trading initiatives, and as a result, Steven Esom, director of food, is leaving with immediate effect. He will be replaced by John Dixon, currently director of the group's Home unit.
Sodexo 9-month revenue rose 2.5%; affirms targets for year(1:56 am ET)
TEL AVIV (MarketWatch) -- Sodexo, (SDXAY: news, chart, profile) (FR:012122: news, chart, profile) the Paris provider of food and facilities-management services, reported that revenue for the nine months ended May 31 rose 2.5%. The figure reached 10.48 billion euros from 10.22 billion in the year-earlier period. Internal, or organic, growth was 8.5% while acquisitions benefited the company by 0.6%. Currency translations knocked 6.5% off the revenue number. All businesses are progressing, with service vouchers and cards an exceptional performer, Sodexo said in a statement. The company affirmed its earnings targets for the year.
Tuesday, July 1
Weekly chain-store sales rise slightly: survey(7:59 am ET)
NEW YORK (MarketWatch) -- Chain-store sales for the week ended June 28 rose 2.2% 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 rose 0.1%. "There is little driving consumer spending other than staples and basic," said Michael Niemira, ICSC's chief economist. "A shift to staying close to home during the summer, however, may lift spending a tad as consumers redirect some of that summer travel spending to home activities." For June, ICSC expects same-store sales, or sales at stores open at least one year, to rose 2% to 2.5%.
Constellation profit and sales rise(7:58 am ET)
NEW YORK (MarketWatch) -- Constellation Brands Inc. (STZ: news, chart, profile) on Tuesday said fiscal first-quarter net income rose to $44.6 million, or 20 cents a share on class A shares and 19 cents a share on class B shares. In the year-ago period it earned $29.8 million, or 13 cents per class A share and 12 cents per class B share. On a "comparable" basis, which excludes acquisition-related integration costs, restructuring charges and unusual items, the wine, spirits and beer company earned 34 cents a share vs. 21 cents a share in the prior year. Sales rose to $1.21 billion from $1.18 billion. Analysts, on average, expected it to earn 32 cents a share on sales of $895.9 million, according to FactSet Research. For fiscal 2009, Constellation expects to earn $1.38 to $1.46 on a reported basis, and $1.68 to $1.76 on a comparable basis.
MSC Industrial Direct posts rise in third-quarter profit(7:56 am ET)
NEW YORK (MarketWatch) -- MSC Industrial Direct Co. (MSM: news, chart, profile) said Tuesday that its fiscal third-quarter net income rose to $51.4 million, or 81 cents a share, from $45.8 million, or 69 cents a share, in the year-earlier period. The year-ago quarterly profit included pretax charges totaling $1.5 million. The Melville, N.Y., maintenance-supplies company said revenue for the period ended May 31 rose to $457.2 million from $431.1 million. On average, analysts polled by FactSet Research expected earnings of 78 cents a share. For the fourth quarter, MSC expects earnings of 74 cents to 76 cents a share on revenue of $443 million to $449 million.
Schnitzer Steel quarterly profit up 46% to $2.14 per share(7:44 am ET)
NEW YORK (MarketWatch) -- Schnitzer Steel Industries, Inc. (SCHN: news, chart, profile) said Tuesday its third-quarter profit totaled $62 million, or $2.14 per share, from $44 million, or $1.47 per share, in the same quarter a year before. On average, analysts had expected profit of $1.86 per share, according to a FactSet Research survey. The Portland, Ore., steel recycler said revenue for the recent quarter was $972 million, up from $709 million in the year-ago period. "Global demand for recycled metals remained robust, driven by economic growth in developing countries," said CEO John Carter.
Dollar Thrifty Automotive warns on profit(6:14 am ET)
LONDON (MarketWatch) -- Car rental company Dollar Thrifty Automotive Group (DTG: news, chart, profile) warned Tuesday that it expects to miss its previous profit forecast for the year due to lower revenue per day and vehicle depreciation costs in the second quarter and a "less robust" outlook for the rest of the year. The group said it now expects adjusted earnings before interest, taxes, depreciation and amortization of a minimum of $50 million. It's previous forecast had been a range of $97 million to $115 million.
HMV profit jumps after Japanese disposal(2:30 am ET)
LONDON (MarketWatch) -- U.K. CD and DVD retailer HMV Group (UK:HMV: news, chart, profile) said Tuesday that its net profit for the year ended April 26 jumped to 89 million pounds ($177 million) from 16.1 million pounds as total sales for the year rose 2.2% to 1.94 billion pounds. Excluding gains from the sale of its Japanese business and one-time costs a year ago, profit rose 16% to 40.7 million pounds. The group said it's ahead of where it expected to be in its restructuring plans, which began in March 2007. Growth was driven by its HMV-branded stores in the U.K. and Ireland. The group said the new financial year has started in line with its expectations and it's confident of achieving its medium-term target for a return on sales of 4.5% to 5%.
Chocolate major Callebaut's sales up; local U.S. line is set(1:47 am ET)
TEL AVIV (MarketWatch) -- Barry Callebaut AG, (CH:000900296: news, chart, profile) the Zurich cocoa- and chocolate-producing major, reported fiscal nine-month revenue rose 19% and said that because the dollar and British pound had weakened against the euro and Swiss franc, it would introduce locally produced gourmet chocolate in the U.S. and Asia. For the nine months ended May 31, revenue reached 3.61 billion Swiss francs ($3.55 billion) from 3.04 billion in the year-earlier period. Sales volume rose 10% to almost 873,000 metric tons from 794,000. With the help of cost cuts companywide, Chief Executive Patrick De Maeseneire said in a statement, Barry Callebaut is "confident we will reach our ... financial targets" for fiscal 2008 through fiscal 2011. The targets average to annual growth of 13% to 16% in net income and 9% to 11% in revenue. The new locally produced chocolate lines stem from the fact that "unfavorable exchange-rate developments have started to weigh on exports of gourmet chocolate from Continental Europe to the U.S., the U.K. and Asia," the company said.
Monday, June 30
Fortune sees second-quarter EPS down as much as mid-20%(4:52 pm ET)
SAN FRANCISCO (MarketWatch) -- Fortune Brands Inc. (FO: news, chart, profile) late Monday lowered its second-quarter earnings outlook due to weaker consumer sentiment in the U.S. The spirits company now expects earnings per share before charges and gains to fall by high 10% to mid-20% range from $1.51 a share in the year-earlier period. Fortune had earlier projected earnings per share to fall at a high single digit to mid-10% rate. For 2008, the company is forecasting earnings before charges and gains will be down by a high single-digit to high-10% range from $5.06 a share in 2007. Its previous target was flat to single-digit percentage drop. Wall Street is projecting the company will report earnings of $1.37 a share in the second quarter and $4.84 a share in 2008.
Sirius says merger with XM would boost financial health(9:27 am ET)
WASHINGTON (MarketWatch) - Sirius Satellite Radio said Monday that the company could achieve positive adjusted earnings and generate free cash flow for the very first time in 2009 if its acquisition of rival XM Satellite Radio Holdings Inc. is approved. Sirius (SIRI: news, chart, profile) predicted that synergies, or savings, of a combined company could total about $400 million in 2009. Adjusted earnings before interest, taxes, depreciation and amortization could reach $300 million, Sirius said. And the merged company would be expected to generate free cash flow, Sirius said. "To date, neither SIRIUS nor XM has reported positive adjusted EBITDA or achieved free cash flow for a full year," the company noted. Sirius and XM (XMSR: news, chart, profile) are waiting for approval from the Federal Communications Commission, which is reviewing the merger. The U.S. Justice Department has already approved the deal. To win FCC permission, the two companies have offered a number of significant concessions, including a freeze on prices. The forecast by Sirius represents the latest push by the company to drum up support for the merger.
Diebold to file 2007, 1st-half 2008 financials in 4-6 weeks(9:13 am ET)
NEW YORK (MarketWatch) -- Diebold, Inc. (DBD: news, chart, profile) said Monday it expects to release preliminary financial results for 2007 and the first and second quarters of 2008 in four to six weeks. Diebold also said it will then file fully restated financial statements "as soon as is practical" after the preliminary results are released. It added that "previously disclosed investigations by the Securities and Exchange Commission and U.S. Department of Justice remain ongoing and there can be no assurance that the results of these investigations will not impact previously reported financial statements."
E-Trade cuts debt, says credit markets still tough(9:00 am ET)
BOSTON (MarketWatch) -- E-Trade Financial Corp. (ETFC: news, chart, profile) on Monday said it reduced debt by about $95.8 million in the second quarter, for a total year-to-date reduction of $155.8 million. The company in statement said it "continued to experience strong performance in its retail franchise during the second quarter, generating positive trends in net new customer accounts and asset flows." Although the overall credit environment is still "highly challenging, the strength and stability of the company's retail business continues to generate earnings in the bank to absorb credit losses in excess of management's current three-year forecast." E-Trade affirmed it continues to expect excess risk-based capital at the bank to approach $1 billion by year-end.
H&R Block swings to fourth-quarter profit, sales up 11%(6:15 am ET)
LONDON (MarketWatch) -- H&R Block, Inc. (HRB: news, chart, profile) on Monday said it swung to fourth-quarter consolidated net earnings of $543.6 million, or $1.66 a share, compared to a net loss of $85.6 million, or 26 cents a share, reported in the year-earlier period. Revenue rose 11% to $2.6 billion. The company said it expects fiscal 2009 earnings from continuing operations in the range of $1.60 to $1.70 a share. It forecast an increase in marketing expenditure and said it is planning other investments to continue driving market share growth in core retail tax services and to enhance it market share online. It sees pre-tax margins rising 12%.
Drax expects to beat earnings forecasts(2:30 am ET)
LONDON (MarketWatch) -- U.K. coal-fired power station operator Drax Group (UK:DRX: news, chart, profile) said Monday that it expects earnings before interest, taxes depreciation and amortization for its fiscal year to be "modestly higher" than the market consensus of around 400 million pounds ($797 million). The group said the current commodity prices make it profitable to generate additional power and it therefore expects generation levels to be modestly higher than in previous years.
Friday, June 27
Builder KB Home's loss widens on housing woes(8:15 am ET)
BOSTON (MarketWatch) -- KB Home (KBH: news, chart, profile) before Friday's opening bell reported a second-quarter loss of $255.9 million, or $3.30 a share, compared with a loss of $148.7 million, or $1.93 a share, in the year-ago period. Total revenue slipped to $639.1 million from $1.41 billion, the Los Angeles-based residential builder said. The latest quarter's results included pretax charges of $176.5 million for inventory and joint venture impairments and the abandonment of land option contracts, and $24.6 million for goodwill impairment. "Despite substantially lower home prices, relatively low interest rates and an abundance of choices, potential new home buyers remain reluctant to purchase a home," said KB Home Chief Executive Jeffrey Mezger in a statement.