Earning Plays

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Tuesday, July 22
CORRECT: C.H. Robinson profit increases(5:40 pm ET)
C.H. Robinson Worldwide Inc. (CHRW: news, chart, profile) reported after the closing bell Tuesday second-quarter net income rose to $90.4 million, or 52 cents a share, from $82.3 million, or 47 cents, a year ago. Revenue for the three months ended June 30 rose 23% to $2.32 billion from $1.89 billion. Analysts surveyed by FactSet Research expected the Minneapolis-based trucking and transport company to earn 55 cents a share on $2.21 billion in sales. Shares of C.H. Robinson rose 3.2% to close at $58.75 ahead of the report. (Corrects reporting period.)
Linear Technology earnings rise 8% on sales gain(5:12 pm ET)
SAN FRANCISCO (MarketWatch) -- Linear Technology Corp. said late Tuesday that earnings rose nearly 8% for its fourth fiscal quarter, ended June 29. For the period, the semiconductor maker (LLTC: news, chart, profile) reported earnings of $103.1 million, or 46 cents a share, compared to earnings of $95.7 million, or 36 cents a share, for the same period last year. Revenue rose more than 14% to $307.1 million. Analysts were expecting earnings of 44 cents a share on revenue of $306.7 million.
Pactiv profit slips, lowers outlook(4:56 pm ET)
SAN FRANCISCO (MarketWatch) -- Pactiv Corp. (PVT: news, chart, profile) , maker of Hefty trash and plastic storage bags, late Tuesday reported net income fell from a year ago. It also cut its full year profit targets due to higher resin costs. Pactiv posted second-quarter net income of $61 million, or 46 cents a share, compared with net income of $70 million, or 53 cents a share, a year ago. Excluding items, Pactiv said it earned 49 cents a share. The Chicago-area package maker for the food and consumer products industries said sales rose 15% to $951 million, primarily reflecting the acquisition of Prairie Packaging. Looking ahead, the company lowered its full year profit outlook to a range of $1.58 to $1.74 a share, down from $1.85 to $2.05. Pactiv has been raising prices to offset surging raw material costs. Its stock is down 17% this year, compared with a 13% decline for the S&P 500.
Nabors Industries profit falls 15% (4:42 pm ET)
SAN FRANCISCO (MarketWatch) -- Onshore oil drilling contractor Nabors Industies (NBR: news, chart, profile) reported late Tuesday second quarter earnings fell to $194.4 million, or 67 cents a share, from $228.3 million, or 79 cents, a year ago. Excluding one-time items, the company earned 70 cents a share in the quarter. Revenue for the three months ended June 30 rose to $1.3 billion from $1.13 billion a year ago. Analysts surveyed by FactSet Research had predicted the Hamilton, Bermuda-based company would earn 70 cents a share on $1.25 billion in sales. Nabors shares closed ahead of the report at $41.91, down 4.1% for the session. The stock is up 29% over the past 12 months.
Norfolk Southern profit lifted by coal and ag demand(4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- Norfolk Southern Corp. (NSC: news, chart, profile) on Tuesday reported a second-quarter profit of $453 million, or $1.18 a share, up from $394 million, or 98 cents a share, a year earlier. Sales rose 16% to $2.8 billion. Analysts polled by FactSet Research were looking for a profit, on average, of $1.06 cents a share with total revenue of $2.64 billion. The railroad said continued strength in the coal, agriculture and metals markets led the improvement while the automotive and housing industries remained weak.
Yahoo's profit, sales fall short of estimates(4:25 pm ET)
SAN FRANCISCO (MarketWatch) - Yahoo Inc. said Tuesday its second-quarter profit and sales fell short of analysts' estimates, reflecting a weak Internet advertising market and the company's sensitive position as a takeover target. Sunnyvale, Calif.-based Yahoo (YHOO: news, chart, profile) said net income for the period ended in June fell to $131 million, or 9 cents a share, from $161 million, or 11 cents a share in the same period a year earlier. Meanwhile net revenue, or revenue excluding payments made to other Web sites to acquire traffic, rose 8% to $1.35 billion. Analysts on average had estimated Yahoo would report earnings of 10 cents a share, and $1.38 billion in net revenue, according to FactSet Research.
VMware reports 53% earnings rise(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- VMware Inc. (VMW: news, chart, profile) on Tuesday reported a second-quarter profit of $52 million, or 13 cents a share, compared to earnings of $34 million, or 10 cents a share, in the same period a year ago. Excluding one-time items, VMware would have earned $92 million, or 23 cents a share, on revenue of $456 million. By that measure, Analysts surveyed by FactSet Research had forecast the virtualization software maker to earn 22 cents a share on $459 million in revenue. For its third-quarter, VMware estimates its sales will be between $462 million and $468 million, while analysts had forecast revenue of almost $497 million.
Sigma-Aldrich boosts profit, raises outlook (4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Sigma-Aldrich Corp. (SIAL: news, chart, profile) reported late Tuesday second-quarter net income rose to $90.8 million, or 70 cents a share, from $79.7 million, or 61 cents, a year ago. Revenue for the quarter rose 14% to $580.7 million from $507.5 million. Analysts polled by FactSet Research predicted the St. Louis-based biochemical and organic chemicals maker would post earnings of 67 cents a share on $579 million in sales. Sigma-Aldrich lifted its 2008 targeted earnings range to $2.62 to $2.72 a share. Wall Street analysts had been looking for full-year earnings of $2.64 a share. Sigma-Aldrich's shares rose 1.8% ahead of the report to close at $58.97. The stock is up nearly 32% over the past 12 months.
WaMu reports quarterly net loss of $3.33 billion(4:19 pm ET)
SAN FRANCISCO (MarketWatch) -- Washington Mutual (WM: news, chart, profile) reported a net loss of $3.33 billion, or $6.58 a share, late Tuesday. That compares to net income of $830 million, or 92 cents a share, a year earlier. The nation's largest thrift said it boosted loan loss reserves by $3.74 billion to $8.46 billion during the latest quarter. The company also said that the remaining cumulative losses in its residential mortgage portfolios will be towards the upper end of the range it disclosed in April. Excluding one-time items, the lender said earnings per share would have been $3.34 in the second quarter. WaMu was expected to lose $1.05 a share, according to the average estimate of 12 analysts in a Thomson Reuters survey.
Intuitive Surgical net income rises 67% (4:16 pm ET)
SAN FRANCISCO (MarketWatch) -- Intuitive Surgical Inc. (ISRG: news, chart, profile) late Tuesday reported its second-quarter net income rose 67% to $51.2 million, or a $1.28 share, compared with $30.7 million, or 79 cents a share, in the year-earlier period. Revenue totaled $219.2 million compared with $140.2 million a year ago, the Sunnyvale, Calif.-based maker of surgical robotics said. Analysts polled by FactSet Research had forecast a profit of $1.18 cents a share on revenue of $208.4 million.
E-Trade reports quarterly net loss of $94.6 million(4:07 pm ET)
SAN FRANCISCO (MarketWatch) -- E-Trade Financial (ETFC: news, chart, profile) reported a second-quarter net loss of $94.6 million, or 19 cents a share, late Tuesday. That compares to net loss of $91.2 million, or 20 cents a share, in the previous quarter and net income of $159.1 million, or 37 cents a share, a year ago, the discount brokerage firm said. Losses in E-Trade's mortgage portfolio were a bit higher than the company expected. However, loan delinquency growth continued to moderate, E-Trade noted. Total delinquencies increased by 9% during the quarter, representing the slowest increase in four quarters. Home equity loan delinquencies increased by 4% during the quarter, down from an increase of 8% in the prior quarter. Provisions for loan losses increased by $85 million quarter over quarter, driven primarily by an increase in home equity-related charge-offs.
JetBlue loses 3 cents a share in second quarter(12:55 pm ET)
NEW YORK (MarketWatch) -- JetBlue Airways Corp. (JBLU: news, chart, profile) said Tuesday that it lost $7 million, or 3 cents a share in the second quarter. The average of analysts polled by FactSet was for a loss of 6 cents a share. In the year-ago period the airline earned $21 million, or 11 cents a share. Revenue rose 17.7% to $859 million from $730 million last year. Operating income for the quarter was $21 million, resulting in a 2.4% operating margin, compared to operating income of $73 million and a 10.0% operating margin in the second quarter of 2007. Additionally, JetBlue said it was discontinuing operations in Ontario, Cal. (Corrects revenue number).
Preliminary bid made for certain Sara Lee assets (11:35 am ET)
SAN FRANCISCO (MarketWatch) -- Food maker Sara Lee Corp. (SLE: news, chart, profile) has received a "non-binding offer" for parts of its North American food service business that caters to restaurants and schools. In a filing with the Securities and Exchange Commission, Sara Lee disclosed it will take a non-cash pre-tax charge between $45 million and $50 million for the fixed assets and trademarks of the business assets that might be sold. Spokesman Mike Cummins declined to comment on who is looking at the assets and whether a deal will be struck or if talks are still ongoing. The writedown shows the assets aren't worth as much as Sara Lee had thought. Known for its namesake cheesecake, Sara Lee also sells brands such as Jimmy Dean sausages, Ball Park hot dogs, and Hillshire Farm deli meats. Sara Lee shares rose 0.8% to $12.97 in recent trades.
Energy stocks give back gains from previous session(9:37 am ET)
NEW YORK (MarketWatch) -- Energy shares cooled off along with oil prices in early action on Tuesday, despite strong earnings gains from oil services firms Halliburton and BJ Services. The Amex Oil Index (XOI: news, chart, profile) fell 0.6% to 1,353, giving back gains from the previous session. The Amex Natural Gas Index (XNG: news, chart, profile) dropped 1% to 642. Crude futures fell 83 cents to $130.21. The National Weather Services expects tropical storm Dolly to become a hurricane and hit landfall near the Texas/Mexico border. The storm is now located in the southwest Gulf of Mexico, 295 miles southeast of Brownsville Texas. Halliburton (HAL: news, chart, profile) fell 48 cents to $48.42. BJ Services (BJS: news, chart, profile) fell rose after its earnings. BJ Services (BJS: news, chart, profile) rallied 16% to $34.78. XTO Energy (XTO: news, chart, profile) dipped 2.7% to $56.41.
AK Steel profit rises to $1.29 per share amid record sales(8:53 am ET)
NEW YORK (MarketWatch) -- AK Steel (AKS: news, chart, profile) said Tuesday its second-quarter profit totaled $145 million, or $1.29 per share, from $110 million, or 98 cents per share, in the same quarter a year before. The results compared with $1.13 a share expected by analysts polled by FactSet Research. The West Chester, Ohio, company said net sales for the quarter were a record $2.24 billion, compared with $1.87 billion in the year-ago period. For the third quarter, AK Steel said it expects to generate operating profit of between $170 and $175 per ton, which it said would represent a record performance.
XTO Energy net income up 33%, sets $1.3 bln in acquisitions(8:52 am ET)
NEW YORK (MarketWatch) -- XTO Energy Inc. (XTO: news, chart, profile) on Tuesday said second-quarter net income rose 33% to $575 million, or $1.11 a share, from $432 million, or 91 cents a share in the year-ago period. Adjusted earnings rose to $1.07 a share, up from 93 cents a share. Revenue increased to $1.94 billion from $1.33 billion. Analysts surveyed by FactSet forecast earnings of $1.03 a share on revenue of $1.84 billion, on average, for the Fort Worth, Texas domestic natural gas producer. Separately, XTO said it'll spend about $1.3 billion to buy more properties in its core production areas. It also announced $800 million to buy 12,900 acres in the Barnett Shale. XTO said it'll spend about $4.6 billion for its 2009 development budget. Another $700 million will be allocated for pipeline infrastructure.
UAL swings to second-quarter loss(8:52 am ET)
NEW YORK (MarketWatch) -- UAL Corp. (UAUA: news, chart, profile) said Tuesday that it swung to a second-quarter loss of $2.73 billion, or $21.47 a share, from a profit of $274 million, or $1.83 a share, in the year-earlier period. The Chicago carrier recorded $2.6 billion of previously announced accounting charges in the latest period. Excluding certain charges, the airline lost $1.19 a share. A FactSet Research survey of analysts, on average, projected a loss of $1.85 a share for the quarter. Operating revenue rose to $5.37 billion from $5.21 billion. Total passenger revenue from United Airlines rose to $4.10 billion from $3.97 billion.
Avery Dennison earns 93 cents a share in second quarter(8:48 am ET)
NEW YORK (MarketWatch) -- Avery Dennison (AVY: news, chart, profile) said Tuesday that second-quarter earnings were $92.4 million, or 93 cents a share, compared to $86.2 million, or 87 cents, in the year-ago period. Sales were $1.8 billion, compared to $1.5 billion a year ago. The company is reducing its 2008 guidance primarily due to a significant increase in inflation expectations coupled with greater economic weakness. The company now expects reported (GAAP) earnings for 2008 in a range of $3.35 to $3.55 per share, including an estimated 40 cents a share in restructuring and asset impairment charges and acquisition integration costs.
Sara Lee plans charges for bakery units, other assets(8:45 am ET)
NEW YORK (MarketWatch) -- Sara Lee Corp., (SLE: news, chart, profile) the Downers Grove, Ill., food and household-products company, will take a fiscal fourth-quarter non-cash charge of $1.17 to $1.32 a share tied to its North American food-service bakery and Spanish bakery business units. Sara Lee had said earlier in the year that it might take the charges. The impairment charge, totaling $865 million to $975 million, reflects weaker-than-expected second-half improvement at the units plus "adverse economic conditions and escalating wheat costs," Sara Lee said in a statement on Tuesday. "While this goodwill-impairment charge is required, we retain our longer-term positive view of these businesses," Chairman and Chief Executive Brenda C. Barnes said. Sara Lee also said it plans a non-cash pretax charge of $65 million to $75 million to write down the value of certain other North American assets.
Forest Labs' first-quarter profit falls on charge(8:25 am ET)
NEW YORK (MarketWatch) -- Forest Laboratories Inc. (FRX: news, chart, profile) said Tuesday that it earned $242.9 million, or 79 cents a share, in its first quarter, down from $268.2 million, or 83 cents a share, in the year-earlier period. The latest results included a charge of 8 cents a share, related to a terminated co-promotion agreement with Daiichi Sankyo. The New York pharmaceutical company said revenue for the quarter ended June 30 rose 4% to $966.8 million from $928.3 million. A FactSet Research survey of analysts, on average, predicted earnings of 81 cents a share. Analysts' estimates typically exclude items. For fiscal 2009, the company expects earnings of $3.10 to $3.20 a share; excluding a charge, its forecast is $3.20 to $3.30 a share.
Freeport-McMoRan ups dividend despite quarterly profit dip(8:22 am ET)
NEW YORK (MarketWatch) -- Freeport-McMoRan Copper & Gold Inc. (FCX: news, chart, profile) said Tuesday its second-quarter profit slipped to $947 million, or $2.25 per share, from $1.1 billion, or $2.62 per share, in the same quarter a year before. The result compared with analyst expectations of $2.41 a share, according to a FactSet Research survey. Revenue for the period totaled $5.441 billion, down marginally from $5.443 billion in the year-ago quarter. The Phoenix-based miner also said it was increasing its quarterly dividend to $2.00 per share, from $1.75 per share, and planned to boost its stock repurchase program to 30 million shares from 20 million shares. The company has approximately 384 million shares of common stock outstanding or 446 million including convertible securities.
Precision Castparts Corp. net rises 22%(8:16 am ET)
NEW YORK (MarketWatch) -- Precision Castparts Corp. (PCP: news, chart, profile) on Tuesday said first-quarter net income climbed to $275.8 million, or $1.95 a share, from $226.4 million, or $1.61 a share in the year-ago period. The Portland, Ore. metal components maker said sales for the three months ended June 29 rose to 11% to $1.8 billion. Analysts surveyed by FactSet forecast earnings of $1.94 a share on revenue of $1.8 billion, on average. "Our aerospace business continues to see strong and steady demand," the company said. The company is making components both for the Boeing (BA: news, chart, profile) 787 and the Airbus A380. "We would also expect growth to accelerate as these schedules ramp up to full production. In addition, we have further opportunities to grow our market position, especially in our fastener business."
Paccar earns 86 cents a share in second quarter(8:16 am ET)
NEW YORK (MarketWatch) -- Paccar (PCAR: news, chart, profile) said Tuesday that second-quarter earnings were $313.5 million, or 86 cents a share, compared to $298.3 million, or 79 cents a share, in the year-ago period. The average of analysts polled by FactSet was for earnings per share of 83 cents. Total revenue was $4.11 billion. up from $3.72 billion in 2007. "Robust demand for Paccar products in Europe and international markets continues to generate excellent earnings and provide opportunities for growth, tempered by the continued softness in the U.S. and Canadian truck markets," said CEO Mark Pigott.
UPS earns 85 cents a share in second quarter(7:59 am ET)
NEW YORK (MarketWatch) -- UPS (UPS: news, chart, profile) said Tuesday that second-quarter earnings were $873 million, or 85 cents a share, compared to $1.1 billion, or $1.04 in the year-ago period. The average of analysts polled by FactSet was for earnings per share of 98 cents a share. Revenue was $13 billion, compared to $12.2 billion a year ago. The company cited increasing fuel costs and a stagnant U.S. economy caused the earnings decline in both the U.S. Domestic and International Package segments. For the full year 2008 UPS sees earnings-per-share within a range of $3.50 to $3.70.
Caterpillar net income jumps 34% on overseas strength(7:42 am ET)
NEW YORK (MarketWatch) -- Caterpillar Inc. (CAT: news, chart, profile) on Tuesday said second-quarter net income rose 34% to $1.1 billion, or $1.74 a share, from $823 million, or $1.24 a share in the year-ago period, on strength in its overseas business. The Peoria, Ill. maker of bulldozers said revenue jumped 20% to $13.6 billion from $11.4 billion. Higher prices boosted revenue by $398 million, the impact of currency added $384 million and Financial Products revenue rose $84 million. Analysts surveyed by FactSet forecast earnings of $1.54 a share and revenue of $12.17 billion. "While North America remains depressed and we've seen softening in Western Europe and Japan, Caterpillar continues to grow in emerging markets and in global industries like energy and mining ... and we continue to see good growth in our integrated service businesses," Chairman and CEO Jim Owens said. Shares of Caterpillar, a component of the Dow Jones Industrial Average ($DJ: news, chart, profile) , rose 2.4% to $75 in pre-market trades.
Jefferies Q2 loss 3 cents per share vs 45 cent profit(7:38 am ET)
NEW YORK (MarketWatch) -- Jefferies Group, Inc. (JEF: news, chart, profile) said Tuesday its second-quarter loss totaled $4.39 million, or 3 cents per share, compared to a profit of $67.8 million, or 45 cents per share, in the same quarter a year before. The results included $15 million in severance costs, the company said. Analysts had on average expected a loss of 8 cents per share, according to a survey by FactSet Research. Total revenue for the quarter was $584 million, down from $766 million in the year-ago period.
Western Union 2nd-quarter net up 13%; outlook higher(7:38 am ET)
NEW YORK (MarketWatch) -- Western Union Corp., (WU: news, chart, profile) the Englewood, Colo., provider of money-transfer services, reported that second-quarter net income rose 13% on 12% higher revenue. Earnings reached $231.5 million, or 31 cents a share, from $204.5 million, or 26 cents, in the year-earlier period. Weighted-average shares outstanding fell 4% to 747.5 million. Revenue climbed to $1.35 billion from $1.2 billion. A survey of analysts by FactSet Research produced a consensus estimate of 31 cents of profit on $1.33 billion of revenue. And the company raised its earnings outlook for the full year.
Biogen Idec earns 70 cents a share in quarter(7:35 am ET)
NEW YORK (MarketWatch) -- Biogen Idec Inc. (BIIB: news, chart, profile) said Tuesday that second-quarter earnings were $207 million, or 70 cents a share, compared to $186 million, or 54 cents, in the year-ago period. Second-quarter revenues were $993 million, an increase of 28% from $773 million in the second quarter of 2007. On an adjusted basis, the company earned 91 cents a share, compared to 70 cents a year ago. For the full year Biogen Idec sees earnings per share of at least $2.51 and on an adjusted basis of at least $3.50. The average estimate for second-quarter adjusted earnings per share by analysts polled by FactSet was 84 cents.
Tellabs' second-quarter earnings rise, helped by tax benefit(7:27 am ET)
NEW YORK (MarketWatch) -- Tellabs Inc. (TLAB: news, chart, profile) said Tuesday that second-quarter earnings rose to $39.0 million, or 10 cents a share, from $29.6 million, or 7 cents a share, in the year-earlier period. On an adjusted basis, earnings for the Naperville, Ill., telecommunications networks company rose to $52 million, or 13 cents a share, from the year-earlier $38 million, or 9 cents a share. Tellabs said results for the recent quarter include a one-time tax-related benefit of 9 cents a share, and the adjusted results exclude an $18.9 million pretax charge. Revenue fell 19% to $432 million from $535 million a year ago. Analysts polled by FactSet Research, on average, expected break-even earnings on revenue of $433 million. Tellabs expects third-quarter revenue to be flat to slightly down.
Quest Diagnostics profit up 14%, ups bottom end of guidance(7:23 am ET)
LONDON (MarketWatch) -- Quest Diagnostics Inc. (DGX: news, chart, profile) said Tuesday that its second quarter net profit rose 14% to $161.3 million, or 82 cents a share, from $141.3 million, or 73 cents a share, a year earlier. Revenue rose 12% to $1.84 billion. Analysts polled by FactSet had been expecting earnings of 78 cents a share on revenue of $1.84 billion. The company, which provides diagnostic testing, information and services, said the inclusion of AmeriPath, which it acquired at the end of May, increased revenue by 8.1%. The group also increased the bottom end of its 2008 earnings guidance, saying it expects earnings of $3.10 to $3.20 a share for the year. It had previously forecast earnings of $3.00 to $3.20 a share.