Earning Plays

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Monday, Sept. 22
3Com swings to first-quarter profit of 20 cents a share(4:27 pm ET)
SAN FRANCISCO (MarketWatch) -- 3Com Corp. (COMS: news, chart, profile) late Monday said it swung to a first-quarter net income of $79.8 million, or 20 cents a share, from a net loss of $18.7 million, or 5 cents a share, in the year-earlier period. The company recorded a 17-cent a share benefit from the resolution of a patent dispute in the first quarter. On an adjusted basis, the company would have earned 11 cents a share. Revenue increased to $189.6 million from $148.9 million a year ago, said the Marlborough, Mass.-based network equipment maker. Analysts surveyed by FactSet Research had, on average, forecast 3Com would report earnings of 6 cents a share.
Constellation Energy Group gets $1 bln in cash(11:21 am ET)
NEW YORK (MarketWatch) -- Constellation Energy Group (CEG: news, chart, profile) CEO Mayo A. Shattuck said the company is receiving $1 billion in cash on Monday as part of its upcoming sale to Berkshire Hathaway's MidAmerican Energy Holdings. In a conference call, Shattuck said the demise of Lehman Brothers led to speculation about his company's financial health, despite a filing from the firm last week that it had secured a $2 billion credit facility. Once its stock price fell, a ratings downgrade was imminent, and the company needed to raise cash or its operating business would have suffered, he said. The transaction is expected to close within a year. MidAmerican CEO Gregory E. Abel said the overall business of Constellation remains sound.
Microsoft raises dividend, unveils $40 billion buyback plan(8:50 am ET)
WASHINGTON (MarketWatch) - Software giant Microsoft Corp. (MSFT: news, chart, profile) on Monday raised its quarterly dividend by 18% and said its board has approved a plan to buy back up to $40 billion in stock by 2013. The company lifted its dividend payment by 2 cents a share to 18 cents, payable Dec. 11 to shareholders of record on Nov. 20. Also, Microsoft's board authorized the company to set up a commercial paper program totaling $2 billion, while also allowing Microsoft to seek "debt financings from time to time of up to $6 billion."
Mirant ends buyback program after $3.9 billion in purchases(8:14 am ET)
NEW YORK (MarketWatch) -- Mirant (MIR: news, chart, profile) said Monday it's ending its stock purchase program after buying about 110 million of its shares since November 2007 for $3.9 billion, about $700 million short of its $4.6 billion buyback target. The company now has 156 million basic shares outstanding, having repurchased approximately 43% of its basic outstanding shares over the past 11 months. The power plant company said it expects to channel cash into capital improvement programs. Atlanta-based Mirant said it's "optimistic about the value of the company and the company has no liquidity issues."
CarMax profit slips in second quarter, sales down 13%(7:54 am ET)
NEW YORK (MarketWatch) -- CarMax Inc. (KMX: news, chart, profile) said Monday its second-quarter profit totaled $14.0 million, or 6 cents a share, from $65.0 million, or 29 cents a share, in the same quarter a year before. Analysts had expected earnings on average of 11 cents a share, according to a FactSet Research survey. Revenue for the quarter was $1.84 billion compared to $2.12 billion in the year-ago period. CarMax President and Chief Executive Tom Folliard said: "As a result of the unprecedented near-term declines in traffic and sales and the current volatility in the asset-backed credit markets, we are not yet able to make a meaningful projection of fiscal 2009 earnings."
CORRECT: General Growth assesses strategic alternatives(2:50 am ET)
TEL AVIV (MarketWatch) -- General Growth Properties Inc., (GGP: news, chart, profile) the Chicago real-estate-investment trust, said on Monday that it's assessing alternatives to boost the stock price, given the 93.2% second-quarter occupancy rate in its properties plus higher comparable operating profit. In mid- to late November, GGP said, it'll be able to offer lenders a long-term fixed-rate portfolio mortgage financing; meantime, it is pursuing sources of financing for its near-term maturing obligations. And the company is developing a plan to generate capital by, among other possibilities, selling assets, creating a joint venture around or selling preferred stock in pools of assets, and creating a strategic business combination. (Corrects description of financing.)
Peter Hambro Mining profit drops 33% in first half(2:46 am ET)
LONDON (MarketWatch) -- London-listed gold miner Peter Hambro Mining PLC (UK:POG: news, chart, profile) Monday said its first-half net profit was 33% lower compared with the previous year, due to rising costs and a strong Russian ruble. Peter Hambro, whose operations are based in Russia's Far East, posted net profit attributable to equity shareholders of $14.37 million for the six months ended June 30, down from $21.44 million for the same period in 2007. However, the company said it had benefited from higher production volumes, stronger prices and low electricity costs. Revenue for the period reached $146.4 million, up from $93.13 million for the same period a year earlier. Analysts had predicted $39.4 million net profit and revenue of $149 million.
CryptoLogic sees 3rd-period loss on operations and forex(2:31 am ET)
TEL AVIV (MarketWatch) -- CryptoLogic Ltd., (CRYP: news, chart, profile) (UK:CRP: news, chart, profile) the Dublin developer of software for Internet gambling, expects to report a third-quarter operating loss of $1 million to $1.5 million on revenue "in line with seasonal trends and current market expectations." But "due to the rapid and unexpected appreciation of the U.S. dollar against the U.K. sterling and the euro in recent weeks and a delay in converting the funds into U.S. dollars, the company will, additionally, book a foreign-exchange loss" of about $3.6 million, CryptoLogic said in a statement on Monday. CryptoLogic has since moved substantially all its cash and marketable securities into U.S. dollars, the company's reporting currency, "to minimize the impact of further currency-market volatility. Other actions have been taken to ensure that this type of loss will not occur again." (Updates to fix ticker symbol.)