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Friday, July 25
Energy stocks up in early action, Cabot slips on earnings(9:42 am ET)
NEW YORK (MarketWatch) -- Energy stocks posted gains in early action on Friday, bouncing back from losses in the previous session. The Amex Oil Index (XOI: news, chart, profile) rose 0.2% to 1,285. The Amex Natural Gas Index (XNG: news, chart, profile) rose 0.8% to 599. Cabot Oil (COG: news, chart, profile) fell 3.2% to $44.97 after its earnings update. Crude futures fell $1.07 to $124.42
American Axle loses $12.49 a share in second quarter(8:24 am ET)
NEW YORK (MarketWatch) -- American Axle & Manufacturing Holdings Inc. (AXL: news, chart, profile) said Friday that it lost $644.3 million, or $12.49 a share, in the second quarter. In the same period a year ago American Axle earned $34.6 million, or 66 cents a share. Sales in the period were $490.5 million compared to $916.5 million a year ago. Analysts polled by FactSet expected a loss of 87 cents a share on sales of $567.7 million. Results were severely impacted by an 87-day strike and the adverse impact of special charges, asset impairments and other non-recurring operating costs of $575.6 million, or $11.16 per share.
Legg Mason swings to quarterly loss(8:20 am ET)
BOSTON (MarketWatch) -- Legg Mason Inc. (LM: news, chart, profile) on Friday reported a fiscal first-quarter net loss of $31.3 million, or 22 cents a share, compared with net income of $191 million, or $1.32 a share, in the year-ago period. Revenue slipped 13% to $1.05 billion, the Baltimore-based asset manager said. The quarterly loss included charges of $155.4 million, or $1.09 a share, as a result of support Legg Mason provided to money market funds hit by the credit crunch. Assets under management fell 3% quarter-over-quarter to $922.8 billion. Chief Executive Mark Fetting in a statement said the company has acted in the best interests of clients and shareholders by "raising capital early and by taking proactive steps" to cut the overall exposure of its money market funds to troubled structured investment vehicles.
Arch Coal's profit jumps in the second quarter(8:18 am ET)
NEW YORK (MarketWatch) -- Arch Coal Inc. (ACI: news, chart, profile) said Friday that second-quarter profit climbed to $113.0 million, or 78 cents a share, from $37.6 million, or 26 cents, in the year-earlier period. The St. Louis coal producer said revenue increased to $785.1 million from $598.7 million in the three months ended June 30. Analysts surveyed by FactSet Research were expecting a profit of 63 cents a share on $737.6 million in revenue. For the year, Arch Coal upped its profit estimate to a range of $2.50 to $2.85 a share, from its outlook of $2.40 to $2.80 a share given in April. Analysts are looking for a profit of $2.69 a share, according to FactSet.
Update: Black & Decker 2nd-quarter net off 22%(7:55 am ET)
NEW YORK (MarketWatch) -- Black & Decker Corp., (BDK: news, chart, profile) the Towson, Md., toolmaker, reported second-quarter net income fell 22% on 3.4% lower revenue. Earnings fell to $96.7 million, or $1.61 a share, from $118 million, or $1.80, in the year-earlier period. Revenue fell to $1.64 billion from $1.7 billion. A survey of analysts by FactSet Research produced a consensus estimate of $1.43 of profit. A favorable tax rate contributed 12 cents a share to the latest earnings, enabling BDK to exceed estimates, Chairman and Chief Executive Officer Nolan D. Archibald said in a statement. "Weak demand in the U.S. and slowing conditions in parts of Western Europe, however, resulted in lower sales and earnings than in 2007," he said. Black & Decker now expects earnings of $1.30 to $1.40 a share for the third quarter and adjusted earnings of $5.25 to $5.45 for the year. In April, Black & Decker had reduced its full-year adjusted forecast to a range of $5.25 to $5.65 a share. (Adds forecast.)
T. Rowe Price's net income holds steady(7:43 am ET)
BOSTON (MarketWatch) -- Investment manager T. Rowe Price Group Inc. (TROW: news, chart, profile) before Friday's opening bell said its second-quarter net income was unchanged from a year earlier at $162.2 million. On a per-share basis, profit rose to 60 cents from 58 cents. Net revenue rose to $586.5 million from $551.1 million. Wall Street analysts polled by Thomson Reuters had forecast earnings of 60 cents a share on revenue of $566.8 million.
Netflix posts higher quarterly profit, hikes full-year view(7:18 am ET)
NEW YORK (MarketWatch) -- Netflix Inc. (NFLX: news, chart, profile) said Friday that its second-quarter profit rose to $26.6 million, or 42 cents a share, from $25.6 million, or 37 cents a share, in the year-earlier quarter. Excluding stock-based compensation, the Los Gatos, Calif.-based online movie-rental service would have earned 45 cents a share for the three months ended June 30. Revenue rose to $337.6 million from $303.7 million. Analysts polled by FactSet Research were expecting a profit of 41 cents a share on sales of $337.7 million. Subscribership increased to 8.41 million from 6.74 million a year earlier. Churn, or the rate of subscriber cancellations, was 4.2%, compared with 4.6% in the year-earlier quarter and 3.9% in the first quarter of 2008. The company also increased its full-year profit forecast to a range of $1.19 to $1.31 a share from its prior view of $1.16 to $1.29 a share.
ITT beats quarterly-profit expectations, raises forecast(7:13 am ET)
NEW YORK (MarketWatch) -- ITT Corp. (ITT: news, chart, profile) said Friday its second-quarter profit totaled $221 million, or $1.20 a share, from $214 million, or $1.16 a share, in the same quarter a year before. Analysts had expected earnings on average of $1.11 a share, according to a FactSet Research survey. Revenue for the quarter was $3.06 billion compared to $2.22 billion in the year-ago period. The White Plains, N.Y., company also raised its 2008 earnings forecast excluding special items to $4.11 to $4.17 a share, from its previous outlook of $4.00 to $4.10.
Barnes Group net climbs 22% on 6.5% sales growth(6:37 am ET)
LONDON (MarketWatch) -- Barnes Group (B: news, chart, profile) said second-quarter net income rose 22% to $34.6 million, or 60 cents a share, while sales rose 6.5% to $382.9 million. The aerospace and industrial components said continued productivity advancements in its industrial unit and improved contributions from its distribution unit helped profit grow more quickly than sales. For the year, it sees earnings between $2.30 and $2.36 a share. Analysts polled by FactSet expected second-quarter earnings per share of 60 cents and 2008 earnings of $2.36.
Viad second-quarter net income falls 30%(6:27 am ET)
LONDON (MarketWatch) -- Convention- and event-marketing services provider Viad Corp. (VVI: news, chart, profile) on Friday said second-quarter net income fell 30% to $12.9 million, or 62 cents a share, compared to $18.5 million, or 88 cents a share, a year ago. Excluding special items, including a favorable tax resolution, net income was $52.2 million, or 59 cents a share, the Phoenix-based firm said. A FactSet Research survey of analysts produced a consensus of 43 cents a share. Viad said its guidance for full-year 2008 income remained unchanged at $2.17 to $2.32 a share, compared to $1.88 a share in 2007. For the third quarter, Viad expects income of 64 cents to 74 cents a share.
Johnson Outdoors profit down 5.9%(6:15 am ET)
LONDON (MarketWatch) -- Johnson Outdoors Inc. (JOUT: news, chart, profile) said Friday that its fiscal third-quarter net profit fell 5.9% to $7.8 million, or 84 cents a share, from $8.3 million, or 89 cents a share, a year earlier. Revenue for the quarter ended June 27 fell 5.8% to $141.2 million. Earnings from continuing operations were 85 cents a share. The company said third-quarter revenues, which are traditionally the highest in the year, suffered from the weak economy and the effects of a soft domestic boat market on its marine electronics business.
Beckman Coulter net drops after year-ago fees; sales rise(6:10 am ET)
LONDON (MarketWatch) -- Beckman Coulter (BEC: news, chart, profile) said second-quarter net income fell to $47.8 million, or 74 cents a share, while revenue rose 16% to $798.3 million on the back of gains in clinical diagnostics. On an adjusted basis that strips out last year's $40.6 million gain from a break-up fee, earnings rose to 89 cents a share from 75 cents a share. For the year, it sees adjusted earnings between $3.55 and $3.65 a share on revenue growth between 12% and 14%, with the revenue range guidance up by one percentage points at both ends. Analysts polled by FactSet Research expected earnings of 86 cents a share for the quarter and $3.60 for the year.
Munich Re warns on profit after write-downs on equity assets(4:53 am ET)
LONDON (MarketWatch) -- German reinsurance group Munich Re (DE:843002: news, chart, profile) warned Friday that its profit in 2008 will be below its forecast range of 3 billion euros to 3.4 billion euros ($4.7 billion to $5.3 billion) due to the turmoil in capital markets, which has hurt the firm's investment result in the first half of the year. Profit for the second quarter is expected to be around 600 million euros, compared to 1.16 billion euros a year earlier. Profit for the year should still be "well above" 2 billion euros, the group added. Munich Re said equities account for under 7% of its assets, nevertheless, substantial write-downs have been taken on its equity portfolio and if price levels stay the same, further write-downs of equities will be needed over the rest of the year.
Honda Motor Q1 profit up 8.1%, tops estimates(2:48 am ET)
HONG KONG (MarketWatch) -- Honda Motor Co. (JP:7267: news, chart, profile) (HMC: news, chart, profile) Friday said its fiscal first-quarter profit grew at a surprisingly strong 8.1% from the year-ago period as it was able to reduce sales incentives in North America and cut costs. Net income jumped to 179.6 billion yen ($1.69 billion), way ahead of estimates, even as quarterly revenue fell 2.2% to 2.87 trillion yen ($26.94 billion) on a stronger yen. Analysts expected a net income of 115.47 billion yen, according to FactSet Research. For the year ending March 31, 2009, Honda expects net income to drop 18.3% to 490 billion yen on a modest 1.1% increase in sales to 12.13 trillion yen. Honda shares fell 2.1% in Tokyo, before the results were announced.
Infineon loss widens as it writes off more of Qimonda(2:21 am ET)
FRANKFURT (MarketWatch) -- German semiconductor company Infineon Technologies AG (IFX: news, chart, profile) (DE:623100: news, chart, profile) Friday posted a third-quarter net loss, chiefly due to poor performance and an additional write down on its stake in memory chip unit Qimonda AG (QI: news, chart, profile) . Infineon said its net loss for the period ending June 30 was EUR592 million compared with EUR197 million a year earlier. The net loss includes a further write-down of EUR411 million on its 77.5% stake in Qimonda. Infineon wrote down EUR1 billion on its Qimonda stake in the second quarter. Revenue in the April to June period was EUR1.03 billion, down 2% from the previous quarter. Earnings before interest and taxes, or EBIT, rose 97% on quarter to EUR71 million on a EUR41 million gain from the sale of its hard disk drive, or HDD, business to LSI Corp. (LSI: news, chart, profile) . Infineon's revenue and EBIT came in above analysts' expectations, which called for revenue of EUR1.02 billion and Ebit of EUR47 million according to a poll of Dow Jones Newswires of 15 analysts. Infineon also said it expects revenue in its current final quarter of fiscal 2008 to increase by a mid-single percentage sequentially, while Ebit is expected to be stable or to decline slightly.
Danone says comparable sales growth slowed to 8%(2:18 am ET)
PARIS (MarketWatch) -- French water, dairy and baby food company Groupe Danone SA (FR:012064: news, chart, profile) Friday said organic growth slowed in the second quarter due to a slight drop in sales volumes as the economic slowdown and higher inflation turned consumers away, notably in the water business. In a statement, Danone said its organic growth rate in the second quarter stood at 8%, down from 11.6% in the first quarter and compared to 7.3% in the second quarter last year. The figure was though above analysts' expectations of an organic growth rate of 7.6%, according to a Dow Jones Newswires poll. Danone also reiterated its full year guidance of growth of 8% to 10% in revenue, an increase of at least 15% in earnings per share, at constant foreign exchange rates. Yet it upgraded its full-year guidance for its operating margin and now sees an increase of 40 to 50 basis points. It had previously seen an increase of "at least" 30 basis points.
Mitchells & Butler sees in-line year as sales rise 1.1%(2:17 am ET)
LONDON (MarketWatch) -- U.K. pub chain operator Mitchells & Butler (UK:MAB: news, chart, profile) said earnings for the year before exceptional items will be in line with its own expectations as comparable-chain sales in the 10 weeks to July 19 rose 1.1%. Market conditions continue to be characterized by robust demand for good value pub food and associated sales of drinks while on-trade beer market volumes have continued to fall by around 10% over the past quarter.
Britvic ups cost guidance as 40-week revenue rises 30%(2:13 am ET)
LONDON (MarketWatch) -- Beverage maker Britvic (UK:BVIC: news, chart, profile) said raw material costs are seen rising by 4.5% for the fiscal year, which it said was marginally ahead of earlier forecasts, as it reported 40-week to July 6 revenue of 690 million pounds, up 29.9%. Into next year, Britvic anticipates further raw material and energy cost increases and is working to at least partially mitigate these increases through continued management focus on overall cost management and extensive product initiatives.
Rentokil Initial cuts profit forecast on revamp problems(2:10 am ET)
LONDON (MarketWatch) -- Rentokil Initial (UK:RTO: news, chart, profile) warned that restructuring problems continued into the second quarter, leading the services group to cut its own adjusted profit before tax and amortization forecast for the year by 35 million pounds ($69 million). "While City Link has made good progress in improving service levels, the problems associated with the restructuring of our U.K. washrooms business and the integration of our washrooms and pest control acquisitions in Australia have continued throughout the second quarter. In addition, trading has deteriorated in our Textiles & Washrooms division during the quarter," it said.
Thursday, July 24
Samsung Electronics shares drop as profit growth disappoints(10:01 pm ET)
HONG KONG (MarketWatch) -- Samsung Electronics (SSNLF: news, chart, profile) Friday reported a lower-than-expected 51% jump in second-quarter profit, sending the South Korean electronics giant's shares down 3.4% in Seoul trading. Net income jumped 51% to 2.14 trillion won ($2.12 billion) from 1.42 trillion won in the year-ago quarter, but fell 2% from the January-March period. A Reuters poll expected net income of 2.3 trillion won. Quarterly sales grew 24% on-year to 18.14 trillion won, boosted by strong growth in liquid crystal display televisions and mobile handsets.
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.