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Wednesday, Aug. 27
Men's Wearhouse second-quarter net income slides (4:32 pm ET)
SAN FRANCISCO (MarketWatch) -- Men's Wearhouse Inc. (MW: news, chart, profile) late Wednesday reported its fiscal second-quarter net income fell to $32.8 million, or 63 cents a share, from a net income of $54.2 million, or $1 a share in the same quarter last year. Excluding costs related to the closure of its Canadian manufacturing facility, the company would have earned 72 cents a share. Revenue slid to $545.3 million from $569.3 million a year earlier. Same-store sales fell 7.8% in the quarter, compared with a gain of 3.7% in the year earlier period, said the retailer. Analysts surveyed by FactSet Research had forecast the company to earn 71 cents a share on revenue of $553.2 million. The company expects earnings of 34 cents to 38 cents a share and adjusted earnings of 36 cents to 40 cents a share in the third quarter, based on expectations that same-store sales will decrease by high single digit range. Analysts are forecasting the company will earn 53 cents a share in the third quarter. In fiscal 2008, the company is projecting earnings of $1.38 to $1.48 a share and adjusted earnings of $1.50 to $1.60 a share.
TiVo swings to profit as costs decrease sharply(4:22 pm ET)
CHICAGO (MarketWatch) -- TiVo Inc. (TIVO: news, chart, profile) said that it swung to a second-quarter profit as subscriber acquisition costs declined sharply. The pioneer of digital video recorder technology reported that it earned $2.94 million, or 3 cents a share, in the latest three months. It posted a loss of $17.7 million, or 18 cents a share, in the prior year's second quarter. Analysts polled by FactSet Research were expecting a loss of 2 cents a share. Subscriber acquisition costs dropped to $135 per subscriber from $758. Service and technology revenue fell to $53.5 million from $56.5 million. In the third quarter, TiVo expects to post a loss in the range of $7 million to $9 million on service and technology revenue of $49 million to $51 million.
Morgan Stanley forecasts $3.5B Lehman write-down (2:29 pm ET)
NEW YORK (MarketWatch) - A research note by Morgan Stanley released Wednesday predicts a third quarter loss for Lehman Bros. (LEH: news, chart, profile) of $2.80 a share, on the back of a $3.5 billion write-down. "For the franchise to turn the corner, we think management needs to announce a significant bulk asset sale or framework for investors to evaluate the structure/pricing of likely asset disposals (and incremental capital, should it be needed)," wrote analyst Patrick Pinschmidt. He also revised his estimates for the fourth quarter, down to a loss of 41 cents a share from a profit of 30 cents a share. Pinschmidt cut 2009 earnings estimates to $3.25 a share, from $3.43, and 2010 estimates to $3.85 a share from $4.15. He said, however, that Morgan Stanley remains overweight on Lehman.
Morgan Stanley cuts Goldman profit forecast (11:55 am ET)
NEW YORK (MarketWatch) -- Morgan Stanley has cut its third quarter earnings estimate for Goldman Sachs Group Inc (GS: news, chart, profile) by almost one-half, blaming a banking industry decline and Goldman's vulnerability to equity markets. Analyst Patrick Pinschmidt cut his estimate for third-quarter earnings to $1.65 a share from $3. Pinschmidt also lowered Goldman's 2009-10 estimates by about 6%, to $17.65 a share in 2009 and $20.45 a share in 2010. Despite the reduced estimates, Pinschmidt reiterated Morgan Stanley's overweight rating for Goldman's stock.
PetroChina says first-half net proft fell 34.4% to $7.8B(6:10 am ET)
HONG KONG (MarketWatch) -- PetroChina Co. (HK:857: news, chart, profile) (PTR: news, chart, profile) , China's biggest listed oil firm by capacity, missed expectations with a 34.4% decline in first-half net income from a year earlier, owing to losses at its refineries and as a windfall tax on oil revenue diminished gains from record crude-oil prices. Net income totaled 53.62 billion yuan ($7.8 billion) from 81.83 billion yuan a year earlier. The result fell short of median forecasts for 57.87 billion yuan, according to a poll by Dow Jones Newswires. Revenue rose 40% to 549.52 billion yuan from 392.73 billion yuan in the first half a year ago. PetroChina said it paid 47.82 billion yuan in windfall taxes on oil sales, up from 14.94 billion yuan a year earlier. PetroChina said its refineries reported an operating loss of 59.02 billion yuan, owing to a squeeze on margins arising from high crude oil costs and government caps on what it can charge for its refined products. In the same period last year PetroChina's refineries made an operating profit of 3.9 billion yuan.
Alibaba.com net more more than doubles(5:40 am ET)
HONG KONG (MarketWatch) -- Chinese e-commerce company Alibaba.com (HK:1688: news, chart, profile) Wednesday said its half-yearly profits more than doubled as more customers chose to trade their goods and services online. Net income for the January-June period jumped to 697.2 million yuan ($102 million), or 15.24 Hong Kong cents (1.95 cents) a share. Alibaba shares ended 0.5% higher in Hong Kong before the results were announced.
Cnooc posts 89% rise in first-half net income(5:19 am ET)
HONG KONG (MarketWatch) -- Cnooc (HK:883: news, chart, profile) [s; ceo], China's largest offshore oil producer, reported an expectations-beating 89% rise in first-half net income Wednesday, bolstered by higher energy prices, efforts to rein in costs and higher output. Net income totaled 27.54 billion yuan ($4.03 billion), up from 14.55 billion yuan a year earlier. Revenue from oil and gas sales climbed 64% to 54.5 billion yuan. Cnooc said it realized an average crude oil price of $102.49 per barrel throughout the first half, up 74.3% from the year-earlier period. Output reached 92.4 billion barrels of oil equivalent, a rise of 8.3% over the same period a year earlier. The company declared a interim dividend of 20 Hong Kong cents, an increase of 54% from last year's dividend.
Taylor Nelson 1st-half net off 9.4%; adjusted net up 20%(3:17 am ET)
TEL AVIV (MarketWatch) -- Taylor Nelson Sofres, (TYNLY: news, chart, profile) (UK:TNS: news, chart, profile) the London market-research provider, reported first-half net income fell 9.4% while adjusted operating earnings rose 20% on 17% higher revenue. Earnings fell to 21.1 million pounds from 23.3 million in the year-earlier period. Adjusted operating profit rose to 54.3 million pounds from 45.4 million. Net income available to equity holders of the parent totaled 19.6 million pounds, or 4.7 pence a share, against 22.2 million, or 5.1. Revenue reached 580.4 million pounds from 497.4 million. The company declared an interim dividend of 2 pence a share, up 25% from 1.6 pence a year earlier. Underlying first-half revenue growth exceeded 5%; "our order book is in excellent shape to reach full-year underlying revenue growth of around 6%," Chief Executive David Lowden said.
Heineken profit climbs 35%(2:55 am ET)
LONDON (MarketWatch) -- Brewer Heineken (NL:00916: news, chart, profile) said Wednesday that its first-half net profit rose 35% to 407 million euros ($596 million) as revenue for the period grew 17.1% to 6.41 billion euros. The growth was driven by the inclusion of the Scottish & Newcastle business from the start of May. Organic net profit growth was 5.3%, while consolidated beer volumes rose 15% to 58.6 million hectoliters. Heineken said it expects at least mid-single digit organic net profit growth for the full year and for volume trends in the first half to continue for the rest of the year. It added it will continue to pass on higher input costs to the consumer.
Wheelock & Co. says 1H net totaled $581.5 million(2:42 am ET)
HONG KONG (MarketWatch) -- Wheelock & Co. (HK:20: news, chart, profile) , an investment and property holding firm, said Wednesday first-half net income climbed 13% from its fiscal first-half in the preceding business year, owing to higher property revaluation gains. Net profit totaled HK$4.54 billion ($581.5 million), up from HK$4.03 billion in the six-month period ended Sept. 30. Revenue fell 11% to HK$12.27 billion from HK$13.86 billion in the half-year ended Sep. 30. Wheelock has changed its accounting structure to match that of its Wharf Holdings unit and has compared its latest half-year result with that for the six-month period ended Sept. 30. Gains from property revaluation totaled HK$7.28 billion, up from HK$4.99 billion. Wheelock declared a first-half dividend of 2.5 Hong Kong cents, unchanged from its first-half dividend last year.
Taylor Wimpey swings to loss as talks with lenders continue(2:43 am ET)
LONDON (MarketWatch) -- U.K. home builder Taylor Wimpey (UK:TW: news, chart, profile) said Wednesday that it swung to a first-half net loss of 1.42 billion pounds ($2.61 billion), from a profit of 22.7 million pounds a year earlier, after taking a 690 million pounds write-down on the value of its land bank and an 816 million pound goodwill charge. Revenue for the period rose 35% to 1.89 billion pounds following the merger of Taylor Woodrow and George Wimpey. Completions were 8,494 compared to 12,228 a year earlier on a pro-forma basis. The group has previously said it's likely to breach covenants on its loan arrangements when they are tested for the full year. It said Wednesday that talks with lenders are continuing and the board "is of the view that a satisfactory conclusion will be reached."
Antofagasta profit rises 8.8%(2:35 am ET)
LONDON (MarketWatch) -- U.K.-listed miner Antofagasta (UK:ANTO: news, chart, profile) said Wednesday that its first-half net profit rose 8.8% to $792.8 million as revenue for the period rose 24% to $2.41 billion. The group said it benefited from higher copper production and strong commodity prices, which were partially offset by higher operating costs and lower molybdenum production. The group lifted its interim dividend to 6.4 cents a share from 6.2 cents a share and said it's continuing to make good progress with its brownfield and greenfield projects as well as exploration in Chile, which should result in further profitable growth from 2010.
Wharf Holdings first-half net up 89% on property valuations(2:03 am ET)
HONG KONG (MarketWatch) -- Wharf Holdings (HK:4: news, chart, profile) (WHLOF: news, chart, profile) , a conglomerate whose holdings include media assets, a property business and port operations, said Wednesday first-half net income climbed 89% from a year earlier, helped by an upward revaluation on investment properties. Wharf, a subsidiary of Wheelock & Co. (HK:20: news, chart, profile) , said net income totaled HK$8.39 billion ($1.1 billion), up from HK$4.43 billion a year earlier. The result was driven by a HK$6.57 billion revaluation gain on the group's investment properties. When the revaluation gain is stripped out, net income fell 13% to HK$2.23 billion. Last year saw revaluation gains for the half-year period of HK$2.54 billion. Wharf also said half-year revenue declined 7% to HK$8 billion from HK$8.61 billion a year earlier.
China Mobile first-half net jumps 44.7% on-year (1:27 am ET)
HONG KONG (MarketWatch) -- China Mobile (HK:941: news, chart, profile) (CHL: news, chart, profile) Wednesday reported a 44.7% jump in first-half profits, boosted by a strong growth in its subscriber base. Net income soared to 54.85 billion yuan ($8 billion), or 2.74 yuan a share, from 37.91 billion yuan in the same period last year. Operating revenue for the January-June period climbed 17.9% to 196.46 billion yuan. The company added an average 7.5 million customers each month during the six-month period, taking its total subscriber base to 415 million. It earned an average monthly revenue per user of 84 yuan. China Mobile shares recently rose 0.9% in Hong Kong.
Tuesday, Aug. 26
J. Crew second-quarter net income dips to 28 cents a share(4:20 pm ET)
SAN FRANCISCO (MarketWatch) -- J. Crew Group Inc. (JCG: news, chart, profile) late Tuesday reported its second-quarter net income fell to $18.1 million, or 28 cents a share, from $20.6 million, or 32 cents a share, a year earlier. Revenue increased to $336.3 million from $304.7 million in the same quarter last year, said the clothing apparel maker. Analysts surveyed by FactSet Research had forecast earnings of 33 cents a share, on average, and revenue of $337.7 million. The company forecasted earnings of 28 cents to 33 cents a share in the third quarter. Analysts are projecting the company to report third-quarter earings of 47 cents a share. Meanwhile, J. Crew lowered its earnings outlook for fiscal 2008 to a range of $1.44 to $1.54 a share from the previous view of $1.70 to $1.75 a share, citing a disruption in its direct business and softer store sales.
Credit Suisse ponders Janus upgrade(11:31 am ET)
NEW YORK (MarketWatch) -- Credit Suisse is considering upgrading Janus Capital Group's (JNS: news, chart, profile) stock from neutral. Analyst Craig Siegenthaler said that investor concerns regarding overweight positions in commodities in Janus funds are overblown, and pointed out that 87% of Janus' fund assets are in funds rated four and five stars by Morningstar. Credit Suisse is lowering earnings per share estimates for Janus in 2008 to $1.34 from $1.36 and in 2009 to $1.70 from $1.85, and forecast third quarter earnings per share of 33 cents, one cent above consensus. Earlier this month, analysts at J.P. Morgan downgraded Janus to underweight from neutral, citing concerns about Janus' funds being overweight in growth, international and commodities. In July, Janus report a 36% rise in second quarter profits to $66.3 million, or 41 cents a share, up from $48.8 million, or 27 cents a share, in 2007.
American Eagle Outfitters earnings per share fall 22%(8:09 am ET)
NEW YORK (MarketWatch) -- American Eagle Outfitters Inc. (AEO: news, chart, profile) said Tuesday that second-quarter earnings fell to $59.8 million, or 29 cents a share, from $81.3 million, or 37 cents a share, in the same period a year ago. Sales fell to $688.8 million compared to $703.2 million. Analysts polled by FactSet estimated, on average, earnings per share of 28 cents on sales of $711.9 million. Same-store sales were down 6% in August and down 9% for the quarter. The company sees third-quarter earnings per share in a range of 31 cents to 36 cents.
Smithfield Foods swings to 9-cents-a-share loss(7:27 am ET)
NEW YORK (MarketWatch) -- Smithfield Foods Inc. (SFD: news, chart, profile) said Tuesday that it lost $12.6 million, or 9 cents a share in the first quarter, compared to earnings of $54.6 million, or 41 cents a share, in the same period a year ago. Sales were $3.1 billion versus $2.6 billion a year ago. Analysts polled by FactSet Research, on average, estimated earnings per share of a penny on sales of $2.91 billion. The current quarter includes a 15-cents-a-share adjustment related to unrealized losses in open commodity derivative contracts and 4 cents a share loss related to asset disposals by Campofrio. Smithfield pointed to corn being diverted to ethanol production and the effect of high prices for feed. "This is a dynamic this industry has never faced. We believe this policy is flawed and needs to be revised if food cost inflation is to be brought under control," said Chief Executive Larry Pope.
Sanderson Farms swings to loss on 18% higher sales(6:49 am ET)
TEL AVIV (MarketWatch) -- Sanderson Farms Inc., (SAFM: news, chart, profile) the Laurel, Miss., chicken and prepared-foods producer, swung to a fiscal third-quarter loss from a year-earlier profit on 18% higher sales. For the quarter ended July 31, the loss was $3.6 million, or 18 cents a share, compared with net income of $30.7 million, or $1.51, in the year-earlier period. Revenue reached $466.9 million from $394.8 million. The latest quarter's share loss reflects a 9-cent payment to settle litigation. A survey of four analysts by FactSet Research produced a consensus estimate of a loss of 5 cents for the quarter. The results reflect relatively strong retail and export demand for chicken, but the company's casual-dining and food-service customers have been hurt as consumers cut back on going to restaurants due to the weak economy and costlier fuel, Chairman and Chief Executive Joe F. Sanderson Jr. said in a statement.
Update: Big Lots 2nd-period net up 11%; lifts outlook(6:24 am ET)
TEL AVIV (MarketWatch) -- Big Lots Inc., (BIG: news, chart, profile) the Columbus, Ohio, closeout retailer, reported fiscal second-quarter net income rose 11% on 1.9% revenue, and it lifted its estimate of earnings from operations for the full year. For the quarter ended Aug. 2, net income reached $26 million, or 32 cents a share, from $23.4 million, or 22 cents, in the year-earlier period. Continuing operations generated 32 cents a share against 21 cents. Revenue rose to $1.11 billion from $1.08 billion. A survey of analysts by FactSet Research produced a consensus estimate of 26 cents of profit for the latest quarter. Same-store sales -- which the company defines as revenue from stores open at least two years at the start of the fiscal year -- rose 2.8% in the period. For fiscal 2009, Big Lots now sees continuing operations generating $1.90 to $2 a share of profit, against an adjusted $1.41 for fiscal 2008. FactSet's survey is looking for $1.84. In late May, when Big Lots reported first-quarter earnings, the company estimated the year's earnings from continuing operations at $1.80 to $1.90. Same-store sales for the year should rise 2%, Big Lots estimated. (Adds specifics of outlook for the year plus FactSet estimate.)
Thornburg Mortgage profit climbs, makes margin calls(5:50 am ET)
LONDON (MarketWatch) -- Thornburg Mortgage (TMA: news, chart, profile) late Monday reported second-quarter earnings rose to $412.3 million, or 84 cents a share, from $83.4 million, or 66 cents a share, as a $537 million gain on a principal participation agreement and additional warrant liability offset a $210 million mortgage-backed securities portfolio impairment. Adjusted income was $22.7 million for the quarter. The company believes that absent further deterioration in the underlying loans, the current carrying value adequately reflects any inherent losses. It paid on Aug. 22 margin calls totaling approximately $219.0 million, "which may be less than the counterparties to the override agreement's interpretation."
CORRECT: Rio Tinto says profit climbed to $6.91B, up 113%(4:49 am ET)
HONG KONG (MarketWatch) -- Miner Rio Tinto (AU:RIO: news, chart, profile) (RTP: news, chart, profile) said Tuesday first-half net income more than doubled, helped by strong commodity prices and the earnings contributions from its 2007 takeover of Alcan. Net income climbed to $6.91 billion, from $3.4 billion a year earlier. Underlying earnings jumped 55% to $5.47 billion, from $3.53 billion. The miner proposed an interim dividend of 68 U.S. cents, up 31% from the 52 cents a year earlier. (Corrects to reflect that Rio Tinto bought Alcan.)
Virgin Atlantic posts first-quarter profit of GBP23.5M(3:30 am ET)
LONDON (MarketWatch) -- Virgin Atlantic, the British carrier controlled by billion Richard Branson, on Tuesday said first-quarter pretax profit came in at 23.5 million pounds ($43.3 million). Sales increased 16% to 645.3 million pounds. Load factor, a measure of how full an airline's planes are, rose to 77% from 74.8% in the year-earlier quarter. Virgin said it had gained passengers from rival British Airways (UK:BA: news, chart, profile) because of problems with the latter's Terminal 5 at London's Heathrow airport.