Earning Plays

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Thursday, July 24
Eastman reports 9.5% gain in earnings(5:28 pm ET)
SAN FRANCISCO (MarketWatch) -- Eastman Chemical Co. (EMN: news, chart, profile) reported late Thursday second-quarter net income of $115 million, or $1.48 cents a share, up from $105 million, or $1.19 a share, in the year-ago quarter. Excluding one-time items, Eastman earned $1.53 cents a share. Revenue for the three months ended June 30 rose 3.4% to $1.83 billion from $1.77 billion a year ago. Analysts polled by FactSet Research had predicted the Kingsport, Tenn.-based chemical producer would earn $1.53 a share on $1.8 billion in sales. Eastman shares closed ahead of the report with a 1.4% loss at $66.38.
Republic Services second-quarter net income slides(5:26 pm ET)
SAN FRANCISCO (MarketWatch) -- Republic Services Inc. (RSG: news, chart, profile) late Thursday reported its second-quarter net income fell to $62.3 million, or 34 cents a share, from $87.2 million, or 45 cents a share, a year earlier. Revenue rose to $827.5 million from $808.4 million a year ago, the waste collection services company said. At the same time, the company affirmed its 2008 earnings outlook of $1.78 to $1.82 a share and noted that margins are remaining steady despite pressure from diesel fuel costs. The board also approved a 12% increase in the quarterly dividend to 19 cents a share. The dividend will be paid on Oct. 15 to shareholders of record on Oct. 1.
Federated quarterly net income rises 5%(4:57 pm ET)
SAN FRANCISCO (MarketWatch) -- Federated Investors (FII: news, chart, profile) said late Thursday that second-quarter net income came in at $58 million, or 58 cents a share, up 5% from a year earlier when the asset-management company made $55.3 million, or 54 cents a share. Federated was expected to make 60 cents a share, according to the average estimate of 11 analysts in a Thomson Reuters survey. Assets under management were $333.5 billion at the end of June, up 28% from a year ago and down 1% from the end of the first quarter.
Synovus quarterly net income drops 93%(4:45 pm ET)
SAN FRANCISCO (MarketWatch) -- Synovus Financial (SNV: news, chart, profile) said late Thursday that second-quarter net income came in at $12.1 million, or four cents a share, down 93% from a year earlier when the lender made $162.8 million, or 49 cents a share. The company was expected to make 13 cents a share, according to the average estimate of 22 analysts polled by Thomson Reuters. Nonperforming loans were $627 million in the second quarter, an increase of $111 million from the first quarter of 2008, the company said. The rate of increase in nonperforming loans slowed in the second quarter, the company noted.
Crocs slashes profit targets; shares plunge (4:41 pm ET)
SAN FRANCISCO (MarketWatch) -- Crocs Inc. (CROX: news, chart, profile) late Thursday slashed its financial targets due to soft demand for its colorful rubbery sandals and other footwear. Its shares plunged 44% after its stock had been halted for trading in after-hours action. For the quarter ended June 30, Crocs said earnings would be between 3 cents and 7 cents a share and revenue would be in the range of $218 million and $223 million. The company had previously estimated its earnings would be in the range of 42 cents to 47 cents a share and revenue would be $247 million to $258 million. "While we did experience solid sell-through with many of our major accounts, retailers across the board were extremely cautious with their level of reorders, choosing to operate with leaner inventories versus a year ago," CEO Ron Snyder said in a statement. Crocs shares traded at $4.75 in recent trades, well off its 52-week high of $75.21 last October.
Chubb quarterly net income falls 34%(4:30 pm ET)
SAN FRANCISCO (MarketWatch) -- Chubb Corp. (CB: news, chart, profile) said late Thursday that second-quarter net income came in at $469 million, or $1.27 a share, down 34% from a year earlier when the insurer made $709 million, or $1.75 a share. Operating profit, which excludes net realized investment gains and losses, was $518 million, or $1.40 a share, in the latest quarter. Chubb was expected to make $1.47 a share, according to the average estimate of 19 analysts in a Thomson Reuters survey. Results were dented by unusually high catastrophe losses and one big surety loss, Chief Executive John Finnegan said in a statement. Chubb shares slipped 6.5% to $44.51 in light after-hours trading.
Burlington Northern Santa Fe profit drops 19% (4:25 pm ET)
SAN FRANCSICO (MarketWatch) -- Burlington Northern Santa Fe Corp. (BNI: news, chart, profile) reported late Thursday second-quarter net income fell to $350 million, or $1 a share, from $433 million, or $1.20 a share, a year ago. The latest results include one-time charges that reduced earnings by 34 cents a share. Revenue for the railroad rose nearly 17% to $4.48 billion from $3.84 billion. Analysts polled by FactSet had forecast the Fort Worth, Texas-based company would report earnings of $1.32 a share on $4.42 billion in revenue. Burlington Northern shares closed ahead of the report with a 1.2% drop to $98.77.
Macau, tax benefit boost Wynn Resorts(4:22 pm ET)
CHICAGO (MarketWatch) -- Brisk business in Macau and a tax benefit helped lift Wynn Resorts Ltd. to sharply higher profit in the second quarter even as the economic downturn dragged down revenue at its Las Vegas property, the company said Thursday. Wynn (WYNN: news, chart, profile) earned $272 million, or $2.42 a share, on the period, up from $89.6 million or 82 cents in the year-ago period. Adjusted to exclude a $140.7 million tax benefit, the company would have earned $1.11 a share. Revenue came in at $825.2 million, up from $687.5 million. The average estimate of analysts polled by Thomson Reuters had been for the gambling giant to earn 93 cents a share on revenue of $828 million. After losing 8% in the regular session, shares of Wynn spiked about 5% to $96 in after-hours action.
BMC Software earnings fall on acquisition charges(4:15 pm ET)
SAN FRANCISCO (MarketWatch) -- BMC Software reported Thursday that earnings for its first fiscal quarter fell due to acquisition charges while revenue climbed 14%. For the period ended June 30, the software maker (BMC: news, chart, profile) reported earnings of $1.2 million, or 1 cent a share, compared to earnings of $55.2 million, or 27 cents a share, for the same period last year. Excluding charges related to its acquisition of BladeLogic, the company said earnings would have been $82 million, or 43 cents a share, for the recent period. Revenue grew to $437.5 million from $385 million last year. Analysts were expecting earnings of 43 cents a share on revenue of $432.6 million, according to estimates from Thomson Reuters.
Flextronics reports 21% earnings increase(4:12 pm ET)
SAN FRANCISCO (MarketWatch) -- Flextronics International (FLEX: news, chart, profile) on Thursday reported a fiscal first-quarter profit of $130 million, or 16 cents a share, compared to earnings of $107 million, or 17 cents a share, in the same period a year ago. The electronics contract manufacturer said revenue for the quarter ended June 27 rose to $8.35 billion from $5.16 billion a year ago. Excluding one-time items, Flextronics would have earned $227 million, or 27 cents a share. By that measure, Flextronics met the estimates of analysts surveyed by FactSet Research who also forecast the company to report $8.31 billion in revenue. For its second quarter, Flextronics expects to earn between 23 cents and 26 cents a share on sales in a range of $8.5 billion to $9 billion.
Crude closes higher after losing $20 in seven days (2:56 pm ET)
SAN FRANCISCO (MarketWatch) -- Crude-oil futures rose for first time in three sessions, up 0.8% following their $20 decline over the past seven sessions that had sent the benchmark contract to its lowest level in seven weeks. Meanwhile, natural gas prices slumped after government data showed U.S. inventories rose more than expected last week. Crude oil for September delivery gained $1.05, or 0.8%, to end at $125.49 a barrel on the New York Mercantile Exchange. September natural gas fell 55.8 cents, or 5.7%, to $9.23 per million British thermal units.
Vivendi first-half revenue rises 10.2%(12:39 pm ET)
NEW YORK (MarketWatch) -- Vivendi Sa (FR:012777: news, chart, profile) said Thursday its revenues for the first half of 2008 totaled 11.27 billion euros ($17.7 billion), compared to 10.22 billion euros for the first half 2007, an increase of 10.2% or a 12.3% rise in constant currency terms. The media giant said that for 2008, it expects "to deliver a profit growth similar to 2007, at constant perimeter." For the second quarter, Vivendi's revenues totaled 5.99 billion compared to 5.20 billion euros a year earlier, marking an increase of 15.1%, or 17.4% in constant currencies. Among its units, Universal Music Group saw a 2.4% decline in revenue, while the Canal+ Group grew 4.6%. Vivendi Games saw the largest revenue drop, at 11.2%, though that decline was only 3.1% after factoring out foreign-exchange effects.
Occidental sees bidding for Iraqi oil fields later this year(12:19 pm ET)
NEW YORK (MarketWatch) -- Occidental Petroleum (OXY: news, chart, profile) CEO Ray Irani said Iraq's larger oil fields will likely draw formal participation from a consortium of large Western oil producers later this year, as the war-torn country moves to ramp up its economy. "There are some very large fields in Iraq which are going to become available," Irani told Wall Street analysts on a conference call. "The huge ones will be run by...the oil majors and companies our size. No one company is going to get a field of 20 billion barrels or more, period." Occidental also sees an opportunity to run smaller fields in Iraq on its own. Iraq has identified eight of the giant fields, with a formal bidding process starting later this year and going through a good part of 2009, Occidental said.
National City swings to loss, but shares rise(11:01 am ET)
BOSTON (MarketWatch) -- Shares of troubled bank National City Corp. (NCC: news, chart, profile) were up Thursday after the company reported a second-quarter loss of $1.76 billion, or $2.45 a share. "Credit quality deteriorated, but there are some signs of stabilization in the nonprime mortgage book," wrote BMO Capital Markets analyst Lana Chan in a research note Thursday morning. "With the capital raise, National City's capital ratios are among the strongest of its peers," the analyst said. "We continue to believe that the improved capital base and higher reserves ... will allow National City to proactively work through losses in its higher-risk loan portfolio." (Pulse corrected to reflect National City swung to a quarterly loss.)
Occidental Petroleum gains as energy sector advances(9:38 am ET)
NEW YORK (MarketWatch) -- Occidental Petroleum Corp. (OXY: news, chart, profile) moved higher on its better-than-expected earnings on Thursday as the energy sector gained along with the price of crude. The Amex Oil Index (XOI: news, chart, profile) rose 0.5% to 1,300. The Amex Natural Gas Index (XNG: news, chart, profile) rose 0.9% to 600. Smith International (SII: news, chart, profile) fell 1.8% to $78.21. Crude futures rose $1.34 to $125.78. Occidental Petroleum rose 2.5% to $74.05.
Qualcomm, Nokia, Amazon lead early tech action(9:39 am ET)
SAN FRANCISCO (MarketWatch) -- Technology stocks put in a mixed performance in Thursday's trading session, with Qualcomm Inc. (QCOMM: news, chart, profile) , Nokia Corp. (NOK: news, chart, profile) and Amazon.com Inc. (AMZN: news, chart, profile) highlighting the early action. Qualcomm shares surged $8.81, or almost 20%, to $53.60 and Nokia rose $1.08 a share, or more than 4%, to $27.82 after the telecom giants ended a long-running patent distpute. Amazon shares rose $7.08, or 10%, to $77.49 after the online retailer reported a second-quater profit that more-than-doubled from a year ago. However, the broader tech sector was in the red, as the tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) fell 7.5 points to 2,318.
Franklin Resources profit falls 14%(9:06 am ET)
NEW YORK (MarketWatch) -- Asset manager Franklin Resources (BEN: news, chart, profile) said Thursday its fiscal third quarter profit fell 14%, to $403.3 million, or $1.71 a share, compared to $468.4 million, or $1.86 a year ago. revenue fell to $1.52 billion, from $1.64 billion.
Cooper Industries' second-quarter profit falls on charges(8:52 am ET)
NEW YORK (MarketWatch) -- Cooper Industries Ltd. (CBE: news, chart, profile) said Thursday that its second-quarter net income fell to $161.9 million, or 92 cents a share, from $209.2 million, or $1.12 a share, in the year-earlier period. Excluding items, Cooper's earnings rose to 97 cents a share from 78 cents. The Houston electrical products and tool manufacturer said revenue increased 18% to $1.72 billion from $1.46 billion. On average, analysts polled by FactSet Research expected earnings of 91 cents a share. Cooper forecasts 2008 earnings of $3.61 to $3.71 a share, with revenue growth of 12% to 14%. It projects a third-quarter profit of 92 cents to 97 cents a share.
Alaska Air reports $1.74 in second-quarter earnings a share(8:51 am ET)
NEW YORK (MarketWatch) -- Alaska Air Group Inc. (ALK: news, chart, profile) said Thursday that second-quarter earnings rose to $63.1 million, or $1.74 a share, compared to $46.1 million, or $1.13 a share, in the year-ago period. Excluding special items, the company reported a loss of $14.1 million, or 39 cents a share, compared to a net income of $47.2 million, or $1.16 a share, in the period a year ago. Because of surging crude-oil prices the company's fuel-hedge portfolio increased dramatically, resulting in a $155.3 million mark-to-market gain in the period. Total operating revenue rose to $930.8 million, compared to $904.4 million a year ago. On average, analysts polled by FactSet Research estimated a loss of 14 cents a share on sales of $940.4 million.
Laboratory Corp. reports lower earnings on charges(8:46 am ET)
BOSTON (MarketWatch) -- Laboratory Corp. of America Holdings (LH: news, chart, profile) early Thursday reported second-quarter net income of $104.2 million, or 92 cents a share, compared with $128.7 million, or $1.05 a share, for the same quarter in 2007. Excluding various charges, the company would have reported adjusted earnings of $1.24 a share versus $1.09. Revenue for the quarter climbed 10% to $1.15 billion. Shares for the quarter were reduced from 114 million, from 122 million in the 2007 period. The company said it now sees 2008 adjusted earnings per share of between $4.54 and $4.66.
Ensco second-quarter profit climbs to $297 million(8:41 am ET)
NEW YORK (MarketWatch) -- Ensco International Inc. (ESV: news, chart, profile) said Thursday its second-quarter profit totaled $297 million, or $2.07 a share, from $254 million, or $1.72 a share, in the same quarter a year before. Analysts had expected earnings on average of $1.98 a share, according to a FactSet Research survey. Operating revenue for the quarter was $637 million compared to $549 million in the year-ago period.
Level 3 narrows second-quarter loss(8:35 am ET)
NEW YORK (MarketWatch) -- Level 3 Communications Inc. (LVLT: news, chart, profile) said Thursday that it lost $33 million, or 2 cents a share, in its second quarter, compared to the year-earlier loss of $202 million, or 13 cents a share. Total revenue for the three months ended June 30 rose to $1.09 billion from the year-ago $1.05 billion. The company also raised its 2008 free cash flow guidance from breakeven to positive for the remainder of the year.
Ashland net income slips(8:29 am ET)
NEW YORK (MarketWatch) -- Chemical company Ashland Inc. (ASH: news, chart, profile) on Thursday said its fiscal third-quarter net income fell to $72 million, or $1.13 a share, from $100 million, or $1.58 a share, in the year-ago period. On a continuing operations basis, it earned $1.03 a share. Sales rose to $2.2 billion from $1.98 billion. Analysts, on average, expected it to earn 87 cents a share on sales of $2.11 billion, according to FactSet Research. For the rest of 2008, the company expects its operating income in its performance materials business be down significantly versus the June 2008 quarter. In its water technologies business it expects price increases announced in June should fully offset previously announced raw material increases. Ashland expects its distribution unit's performance to be hurt by weakness in North American industrial output, but expects to "significantly" improve results from the fourth quarter last year. However it is "unlikely" the unit will achieve another sequential quarterly increase, Ashland said.
Rohm & Haas second-quarter profit 75 cents a share(8:28 am ET)
NEW YORK (MarketWatch) -- Rohm & Haas Co. (ROH: news, chart, profile) said Thursday its second-quarter profit totaled $147 million, or 75 cents a share, from $160 million, or 74 cents a share, in the same quarter a year before. Analysts had expected adjusted earnings on average of 86 cents a share, according to a FactSet Research survey, compared to actual adjusted earnings of 82 cents a share. Sales for the quarter were $2.57 billion compared to $2.19 billion in the year-ago period. "The external environment remains very uncertain and challenging. We are successfully navigating these challenges ... and are making necessary investments to stay on track with our Vision 2010 strategic plan," said CEO Raj Gupta.
ProLogis reports lower funds from operations(8:24 am ET)
BOSTON (MarketWatch) -- ProLogis (PLD: news, chart, profile) on Thursday said funds from operations, a key profitability measure for real estate investment trusts, in the second quarter fell to $1.06 a share from $1.16 in the year-ago period. Analysts polled by Thomson Reuters had been looking for FFO of $1.04 a share, on average. The company reiterated its full-year outlook for FFO ranging between $4.65 and $4.85 a share, while the consensus estimate is $4.78 a share.
AutoNation's second-quarter profit declines(8:20 am ET)
NEW YORK (MarketWatch) -- AutoNation Inc. (AN: news, chart, profile) said Thursday that its second-quarter net income fell to $51.8 million, or 29 cents a share, from $77.3 million, or 37 cents a share, in the year-earlier period. Earnings from continuing operations declined to 29 cents a share from 38 cents a share. A FactSet Research survey of analysts, on average, projected earnings of 31 cents a share for the quarter. The Fort Lauderdale, Fla., automotive retailer said revenue fell to $3.91 billion from $4.48 billion. Shares of AutoNation ended Wednesday at $9.39.
Union Pacific net income up 19%(8:18 am ET)
NEW YORK (MarketWatch) -- Union Pacific Corp. (UNP: news, chart, profile) said second-quarter net income rose 19% to $531 million, or $1.02 a share, from $446 million, or 82 cents a share in the year-ago period. The Omaha, Neb. railroad giant said revenue rose 13% to $4.56 billion. Analysts expected earnings of 92 cents a share on revenue of $4.5 billion, on average. "Although high fuel prices and a soft economy present challenges, we remain committed to ongoing productivity and customer service initiatives as we look forward to achieving a record year," the company said.
CORRECT: Medco Health 2nd-period net up 22%(8:12 am ET)
NEW YORK (MarketWatch) -- Medco Health Solutions Inc., (MHS: news, chart, profile) the Franklin Lakes, N.J., pharmacy-benefits manager, reported second-quarter net income rose 22% on 16% higher revenue. Earnings reached $262.7 million, or 51 cents a share, from $214.9 million, or 38 cents, in the year-earlier period. Adjusted earnings were 56 cents against 43 cents. Revenue rose to $12.77 billion from $11.05 billion. A survey of analysts by FactSet Research produced a consensus estimate of 53 cents of profit for the quarter. For 2008, Medco lifted its earnings estimate and now projects $2.10 to $2.13 a share. That's up 29% to 31% from 2007. And it compares with the company's previous estimate of $2.07 to $2.11 a share. On an adjusted basis, the company expects to earn $2.30 to $2.33 in the year. That's up 26% to 28% from 2007. And it compared with the previous estimate of $2.27 to $2.31 a share. FactSet's survey is looking for $2.28 a share. (Corrects FactSet estimate for the quarter.)
Janus Capital profit rises 36%(8:10 am ET)
NEW YORK (MarketWatch) -- Asset manager Janus Capital (JNS: news, chart, profile) said on Thursday that its second quarter profit rose 36%, to $66.3 million, or 41 cents a share, from $48.8 million, or 27 cents a share a year ago. The latest quarter profit included a tax benefit of 6 cents a share. Janus' revenue rose to $304.2 million, from $273 million a year ago.
UST's quarterly net income slips(8:10 am ET)
NEW YORK (MarketWatch) -- UST Inc. (UST: news, chart, profile) on Thursday said second-quarter net income slipped to $139.7 million, or 94 cents a share, from $140 million, or 87 cents a share, in the year-ago period. On an adjusted basis, the tobacco company earned 95 cents a share. In the most recent second quarter shares outstanding were 148.6 million vs. 161.1 million a year earlier. Net sales rose to $506.2 million from $491.3 million. Analysts, on average, expected the company to earn 94 cents a share on sales of $512.3 million, according to FactSet Research. For the year, the company remains on track to deliver its previously released adjusted non-GAAP diluted earnings per share target of $3.65, with a range of $3.60 to $3.70, including plans to increase smokeless tobacco promotional support to address increased competitive activity and the current economic environment.