Earning Plays

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Thursday, July 17
MBIA will probably go into 'run-off,' Merrill's Thain says(5:48 pm ET)
SAN FRANCISCO (MarketWatch) -- MBIA Inc. (MBI: news, chart, profile) will probably go into "run-off," John Thain, chief executive of Merrill Lynch (MER: news, chart, profile) said during a conference call with analysts late Thursday. It's "very unlikely that they will actually default, because it's not in their interest to do that," Thain explained. "I think they will simply go into a run-off mode and keep making their payments and live for years and years and years." Merrill bought guarantees from MBIA and other bond insurers to hedge some of the firm's exposure to mortgage-related securities. Run-off is when an insurer stops selling new policies and slowly pays off all existing claims.
IBM earnings rise more than 22% (4:41 pm ET)
SAN FRANCISCO (MarketWatch) -- IBM Corp. (IBM: news, chart, profile) on Thursday reported a second-quarter profit of $2.77 billion, or $1.98 a share, up from $2.26 billion, or $1.55 a share in the same period a year ago. Revenue rose almost 13% to $26.82 billion from last year's sales of $23.8 billion. Analysts surveyed by FactSet Research had forecast IBM to earn $1.81 a share on $25.9 billion in sales. Among its business areas, IBM said software sales rose 17% from a year ago, while global services remained IBM's biggest revenue generator with sales of $15.2 billion, and the company signed new services deals worth $14.7 billion. IBM Chief Executive Sam Palmisano said in a statement that the company was raising its 2008 earnings estimate of $8.75 a share, from $8.50 a share, and stuck by IBM's long-term forecast of a profit of $10 to $11 a share for its 2010 fiscal year.
Zions Bancorp profit falls 55% on bad loans, securities(4:37 pm ET)
SAN FRANCISCO (MarketWatch) -- Zions Bancorp (ZION: news, chart, profile) said late Thursday its net income for the second quarter fell to $72.2 million, or 65 cents a share, from $159.2 million, or $1.43 a share, a year-ago. Analysts polled by FactSet had been expecting the Salt Lake City-based banking company to earn 78 cents a share. Net interest income climbed 3% to $484.7 million, while fee income sank 49% to $72.3 million on writedowns of securities and derivatives. An increase in nonperforming assets, up 61% to $697.4 million, squeezed lending margins by 5 basis points to 4.1%. A basis point is 1/100th of a percentage point. Ahead of the report, shares jumped 17% to $27.51.
Microsoft earnings climb as revenue jumps 18%(4:30 pm ET)
LOS ANGELES (MarketWatch) -- Microsoft Corp. said Thursday afternoon that revenue grew 18% for its fourth fiscal quarter ended June 30. For the period, the software giant (MSFT: news, chart, profile) reported earnings of $4.3 billion, or 46 cents a share, compared to earnings of $3 billion, or 31 cents a share, for the same period last year. Revenue grew to $15.8 billion from $13.4 billion. Analysts were expecting earnings of 47 cents a share on revenue of $15.64 billion, according to Factset Research.
Capital One income falls 40% on drop in U.S. card income(4:24 pm ET)
SAN FRANCISCO (MarketWatch) -- Capital One Financial Corp. (COF: news, chart, profile) said late Thursday it earned $452.9 million, or $1.21 a share, in the second quarter, down from $750.4 million, or $1.89 a share, in the same period last year. The McLean, Va. credit-card company said earnings excluding a loss from the August closure of GreenPoint mortgage would have been $1.24 a share. Analysts polled by FactSet had expected $1.32 a share. Capital One said deposits rose 5.4% to $92.4 billion by the end of June from the first quarter. It added $37.6 million to its second-quarter provision expenses. The managed charge-off rate for its national lending division increased 0.33 of a point to 5.67% from the first quarter. Shares rose 14.8% to $42.80 ahead of the report.
Merrill sells Bloomberg stake for $4.425 billion(4:23 pm ET)
SAN FRANCISCO (MarketWatch) -- Merrill Lynch & Co. (MER: news, chart, profile) said late Thursday that it agreed to sell its 20% stake in Bloomberg LP for $4.425 billion. The firm also plans to sell a controling interest in its Financial Data Services unit, which has an enterprise value of more than $3.5 billion. The firm is lending money to Bloomberg to help the media company buy its 20% stake. Merrill also plans to lend money to the buyer of Financial Data Services.
Merrill reports quarterly net loss of $4.65 billion(4:21 pm ET)
SAN FRANCISCO (MarketWatch) - Merrill Lynch & Co. (MER: news, chart, profile) reported a $4.65 billion second-quarter net loss late Thursday as the brokerage firm continued to be hit by write-downs on large mortgage-related exposures. Merrill said it lost $4.65 billion, or $4.97 a share, during the second quarter, compared to net income of $2.14 billion, or $2.24 a share, in the same period a year earlier. Excluding discontinued operations, the net loss was $4.6 billion, or $4.95 a share, Merrill said. The firm was expected to lose $1.91 a share, according to the average estimate of 17 analysts surveyed by Thomson Reuters. Forecasts ranged from a loss of 70 cents a share to a loss of $4.21 a share.
Leggett & Platt profit falls 23%(4:21 pm ET)
SAN FRANCISCO (MarketWatch) -- Leggett & Platt Inc. (LEG: news, chart, profile) reported late Thursday second-quarter net income of $46.3 million, or 27 cents a share, down from $60 million, or 33 cents, a year ago. The results included earnings from discontinued operations that added 2 cents a share to the bottom line. Revenue for the quarter ended June 30 slipped to $1.06 billion from $1.07 billion. Analysts polled by FactSet Research predicted the engineed parts maker would post per-share earnings of 25 cents on $1.06 billion in revenue. The company left its 2008 per-share earnings forecast unchanged at $1.00 to $1.30, higher than analysts' 99-cent estimate. Leggett & Platt shares closed at $17.06 ahead of the report, a 6.3% gain for the day.
Google posts profit gain, but falls short of estimates(4:09 pm ET)
SAN FRANCISCO (MarketWatch) - Google Inc. said Thursday its fiscal second-quarter profit rose, though it fell short of analysts' estimates. Mountain View, Calif.-based Google (GOOG: news, chart, profile) said net income for the period ended in June rose to $1.25 billion, or $3.92 a share, from $925.1 million, or $2.93 a share in the same period a year earlier. Meanwhile net revenue rose to $3.9 billion. Excluding special items, Google said earnings for the period were $4.63 a share. Analysts on average had estimated Google would post earnings excluding special items of $4.74 a share, and $3.87 billion in net revenue, according to Thomson Reuters.
Stryker profits up; beat estimates by a penny(4:08 pm ET)
LOS ANGELES (MarketWatch) - Stryker Corp. (SYK: news, chart, profile) said Thursday that second-quarter net earnings were $305.8 million, or 73 cents a share, vs. $240.1 million, or 65 cents a share reported a year ago. Sales for the Kalamazoo, Mich.-based medical products maker were $1.71 billion vs. last year's $1.46 billion. Analysts polled by FactSet Research had expected the company to post earnings of 72 cents a share on sales of $1.68 million. Stryker shares ended the day down marginally to $68.41.
Energy stocks mixed as oil trades below $135 a barrel(9:39 am ET)
NEW YORK (MarketWatch) -- Energy stocks traded mixed in early action as oil traded below $135 a barrel. The Amex Oil Index (XOI: news, chart, profile) rose fractionally at 1,324. The Amex Natural Gas Index (XNG: news, chart, profile) fell 1% to 642. Oil futures fell 30 cents to $134.30 on the NYMEX.
Genuine Parts' second-quarter profit rises 2%(9:23 am ET)
NEW YORK (MarketWatch) -- Genuine Parts Co. (GPC: news, chart, profile) said Thursday that its second-quarter net income rose to $133.1 million, or 81 cents a share, from $130.1 million, or 76 cents a share, in the year-earlier period. On average, analysts polled by FactSet Research expected earnings of 79 cents a share. The Atlanta distributor of automobile replacement parts said sales rose to $2.87 billion from $2.77 billion a year ago.
Sherwin-Williams earns $1.45 a share in second quarter(9:18 am ET)
NEW YORK (MarketWatch) -- The Sherwin-Williams Co. (SHW: news, chart, profile) said Thursday that second-quarter earnings were $172 million, or $1.45 a share, compared to $203 million, or $1.52 a share, in the same period a year ago. Sales were $2.23 billion versus $2.20 billion in the year-ago period. CEO Christopher Connor said in a statement that, "For the full year 2008, we are reaffirming our June 3, 2008 guidance that we anticipate consolidated net sales will be slightly lower than 2007. We are also reaffirming our June 3, 2008 guidance that we expect diluted net income per common share for full year 2008 will be in the range of $3.60 to $4.10 per share compared to $4.70 per share earned in 2007."
Safeway's second-quarter profit rises(9:17 am ET)
NEW YORK (MarketWatch) -- Safeway Inc. (SWY: news, chart, profile) said Thursday that its second-quarter net income rose to $234.3 million, or 53 cents a share, from $218.2 million, or 49 cents a share, in the year-earlier period. The Pleasanton, Calif., food and drug retailer said revenue rose 3% to $10.1 billion from $9.82 billion, due in part to higher fuel sales. Analysts polled by FactSet Research, on average, had projected earnings of 52 cents a share. Safeway's quarterly same-store sales rose 1.0% and identical-store sales, or sales excluding remodeled and relocated stores, rose 0.9%. Excluding fuel sales, same-store sales fell 0.2%, and identical-store sales fell 0.3%. Safeway backed its 2008 earnings projection of $2.25 to $2.35 a share, but cut its guidance for identical-store sales growth, excluding fuel, to a range of 1.0% to 2.0% from a range of 2.0% to 2.3%.
Nucor second-quarter profit rises to $1.94 per share(9:11 am ET)
NEW YORK (MarketWatch) -- Nucor Corp. (NUE: news, chart, profile) said Thursday its second-quarter profit totaled $581 million, or $1.94 per share, up from $345 million, or $1.14 per share, in the same quarter a year before. Analysts had expected $1.78 per share, according to the average in a FactSet Research survey. Sales for the recent quarter topped $7.09 billion, compared with the year-earlier's $4.17 billion. Nucor said it expects third-quarter earnings to come in at $1.80 to $1.85 a share.
J.P. Morgan will not boost dividend until things improve (9:06 am ET)
NEW YORK (MarketWatch) -- J.P. Morgan Chase (JPM: news, chart, profile) CEO Jamie Dimon said on a conference call with analysts Thursday that the bank will not raise its dividend until the economy and financial markets improve. Dimon was asked on the call if he had plans to raise the dividend, like West Coast rival Wells Fargo did on Wednesday. "We applaud our friends at Wells Fargo but we don't have quite that much guts going forward. We're not going to increase the dividend until we see clear daylight," Dimon said.
Reliance Steel's second-quarter profit rises(8:58 am ET)
NEW YORK (MarketWatch) -- Reliance Steel & Aluminum Co. (RS: news, chart, profile) said Thursday that its second-quarter net income rose to $156.6 million, or $2.12 a share, from $122.8 million, or $1.59 a share, in the year-earlier period. Analysts polled by FactSet Research, on average, projected earnings of $2.04 a share. The Los Angeles-based metals-services company said quarterly revenue increased to $2.10 billion from $1.90 billion a year earlier. Reliance expects third-quarter earnings of $1.80 to $1.90 a share.
Home equity improving, prime mortgage "terrible": Morgan(8:55 am ET)
NEW YORK (MarketWatch) -- J.P. Morgan Chase (JPM: news, chart, profile) CEO Jamie Dimon said on a Thursday conference call with analysts that the firm is seeing some improvement in the credit quality of its home equity loan portfolio, but cautioned that as defaults grow in Florida and California, its losses on its prime mortgage portfolio "could triple" in the next year. On the same call, Morgan's CFO, Mike Cavanaugh, told listeners that home equity losses were coming in at about $700 million, rather than an expected $900 million. "A lot of people could argue there's some seasonality in that. It's a little Ray of sunshine which it's okay to grab onto for now," Dimon said. However, Dimon quickly dampened the enthusiasm that sparked among listeners, as he said that losses on prime mortgages could triple, as homeowners increasingly default on loans in California and Florida. "Prime looks terrible," Dimon said.
Home equity improving, prime mortgage "terrible": Morgan(8:55 am ET)
NEW YORK (MarketWatch) -- J.P. Morgan Chase (JPM: news, chart, profile) CEO Jamie Dimon said on a Thursday conference call with analysts that the firm is seeing some improvement in the credit quality of its home equity loan portfolio, but cautioned that as defaults grow in Florida and California, its losses on its prime mortgage portfolio "could triple" in the next year. On the same call, Morgan's CFO, Mike Cavanaugh, told listeners that home equity losses were coming in at about $700 million, rather than an expected $900 million. "A lot of people could argue there's some seasonality in that. It's a little Ray of sunshine which it's okay to grab onto for now," Dimon said. However, Dimon quickly dampened the enthusiasm that sparked among listeners, as he said that losses on prime mortgages could triple, as homeowners increasingly default on loans in California and Florida. "Prime looks terrible," Dimon said.
Sonoco earns 57 cents a share in second quarter(8:26 am ET)
NEW YORK (MarketWatch) -- Sonoco (SON: news, chart, profile) said Thursday that second-quarter earnings were $58 million, or 57 cents a share, compared to $42 million, or 41 cents a share, in the same period a year ago. Sales were $1.01 billion, compared to $994 million a year ago. Base earnings for the second quarter of 2008 were 62 cents a share, up 11%, compared with 56 cents, a year ago. Base earnings excluded a charge of 5 cents a share stemming from previously announced plant closings, while 2007 second-quarter base earnings excluded a charge of 12 a share related an environmental claim and 3 cents for other restructuring charges. The company expects full-year 2008 base earnings a share to be in the range of $2.44 to $2.47, unchanged from previously announced guidance.
PPG profits steady, revenue jumps 42%(8:20 am ET)
LONDON (MarketWatch) -- Paints and chemicals supplier PPG Industries (PPG: news, chart, profile) said Thursday that its second-quarter net profit edged slightly higher to $250 million, or $1.51 a share, from $249 million, or $1.50 a share. Sales for the quarter rose 42% to $4.5 billion driven by acquisitions, emerging markets growth and price increases. Excluding results from a division being sold and one-time items, earnings for the quarter were $1.62 a share. Analysts polled by FactSet had expected earnings of $1.52 a share on sales of $4.19 billion. The group said it's implementing price increases to offset further inflationary pressures and expects its growth to be sustained.
Amphenol posts higher profit, raises full-year forecast(8:19 am ET)
NEW YORK (MarketWatch) -- Amphenol Corp. (APH: news, chart, profile) said Thursday that its second-quarter net income rose to $110 million, or 61 cents a share, from $84 million, or 46 cents a share, in the year-earlier period. A FactSet Research survey of analysts, on average, had predicted earnings of 58 cents a share. The Wallingford, Conn., maker of fiber-optic and electronic connectors, cables and interconnect systems said sales for the three months rose to $846.8 million from $688.8 million. The company said it expects 2008 earnings of $2.34 to $2.38 a share and third-quarter earnings of 59 to 61 cents a share.
SunPower Corp. swings to a gain, raises outlook(8:17 am ET)
NEW YORK (MarketWatch) -- SunPower Corp. (SPWR: news, chart, profile) on Thursday said second-quarter net income for the three months ended June 29 rose to $28.6 million, or 34 cents a share, from a loss of $5.35 million, or 7 cents a share in the year-ago period. Non-GAAP net income for the second-quarter totaled 61 cents a share. Revenue at the San Jose, Calif.-based maker of solar power modules jumped 120% to $382.8 million. Analysts surveyed by FactSet forecast earnings of 42 cents a share and revenue of $345.5 million, on average. "The overall global business environment remains very favorable as we continue to execute on our long-term strategy focused on brand, technology, cost and people," SunPower said. "We are well- positioned for success entering the second half of the year." SunPower expects third-quarter non-GAAP earnings of 53-57 cents a share and fourth-quarter non-GAAP earnings of 73-80 cents, well ahead of the current Wall Street targets of 49 cents and 62 cents respectively.
Cypress posts second-quarter profit of 14 cents per share(8:13 am ET)
NEW YORK (MarketWatch) -- Cypress Semiconductor Corp. (CY: news, chart, profile) said Thursday its second-quarter profit totaled $23 million, or 14 cents per share, down from $363 million or $2.29 a share in the same quarter a year before, but higher than its loss of 11 cents per share in the March-May quarter of this year. Analysts polled by FactSet Research expected earnings of 5 cents a share in the quarter. Revenue for the period totalled $592 million, up from $373 million in the year-earlier period. Cypress's President and Chief Executive T.J. Rodgers said: "While we remain cautious about the macro-economic environment for the second half of 2008, we anticipate strong sequential growth in our semiconductor business."
MGIC Investment Corp. swings to a loss(8:04 am ET)
NEW YORK (MarketWatch) -- MGIC Investment Corp. (MTG: news, chart, profile) on Thursday said it swung to a second-quarter loss of $97.9 million, or 79 cents a share, from net income of $76.7 million, or 93 cents a share in the year-ago period. Revenue rose 15% to $424.5 million. The Milwaukee-based mortgage insurance specialist was expected to lose 73 cents a share on revenue of $430 million, according to a survey by FactSet. MGIC said delinquencies and foreclosures remain at elevated levels resulting from lower home values and a softening economy. The factors continue to impact the company's financial results. During the quarter, the company announced additional underwriting changes, increased premiums on all insurance products, amended a revolving credit facility, and entered into a reinsurance agreement for new writings.
Coca-Cola Enterprises reports $6.52-a-share loss(7:53 am ET)
NEW YORK (MarketWatch) -- Coca-Cola Enterprises (CCE: news, chart, profile) on Thursday reported a loss of $3.17 billion, or $6.52 a share, in the second quarter. In the same period a year ago the company earned $270 million, or 56 cents a share. Adjusted earnings were 56 cents a share compared with 58 cents a year ago. The second-quarter loss included a non-cash pre-tax impairment charge of $5.3 billion, or $7.06 a share after tax and restructuring charges of 2 cents a share. The company now expects full-year 2008 earnings in a range of $1.40 to $1.45 a share.
Media General sees second-quarter loss of 1 cent per share(7:48 am ET)
NEW YORK (MarketWatch) -- Media General, Inc. (MEG: news, chart, profile) reported Thursday a preliminary second-quarter loss of about $129,000, or 1 cent a share, compared to a profit of $5.1 million, or 22 cents per share, in the same quarter a year before. Income from continuing operations saw a 6-cent loss per share, while analysts polled by FactSet research expected a 6-cent-a-share profit. Revenue for the recent quarter was $205 million, down from $228 million in the year-ago period.
International Game Technology's quarterly profit falls(7:46 am ET)
NEW YORK (MarketWatch) -- International Game Technology (IGT: news, chart, profile) said Thursday that its third-quarter net income fell to $108.3 million, or 35 cents a share, from $136.4 million, or 41 cents a share, in the year-ago period. The Reno, Nev., slot-machine designer said revenue fell to $677.4 million from $706.5 million. Analysts polled by FactSet Research, on average, expected earnings of 37 cents a share. Shares of International Game closed Wednesday at $24.66.
TD Ameritrade net climbs 29%, powers past estimates(7:43 am ET)
NEW YORK (MarketWatch) -- TD Ameritrade (AMTD: news, chart, profile) on Thursday said second-quarter net income rose to $204.4 million, or 34 cents a share, from $158.7 million, or 26 cents a share in the year-ago period. The Omaha, Neb. financial services and brokerage firm said revenue climbed to $623.6 million from $541.8 million. Analysts surveyed by FactSet forecast earnings of 32 cents a share and revenue of $609 million, on average. Ameritrade said the period ranked as the second-best quarter in its 33-year history. "The company continues to deliver strong earnings growth, despite prolonged challenges in the nation's economy and the financial services industry," Ameritrade said. Ameritrade now expects 2008 earnings of about $1.34 a share, up 2 cents a share from its earlier view.
Fairchild Semi Q2 profit 5 cents per share vs 3 cents(7:41 am ET)
NEW YORK (MarketWatch) -- Fairchild Semiconductor (FCS: news, chart, profile) said Thursday its second-quarter profit totaled $6.9 million, or 5 cents per share, from $3.4 million, or 3 cents per share, in the same quarter a year before. Analysts had expected on average earnings of 17 cents a share, according to a FactSet Research poll, with those expectations matching Fairchild's adjusted net income for the quarter. Revenue for the recent quarter was $419 million, up from $409 million in the year-ago period. The company said it expects third-quarter revenue to grow by 2% to 5%.