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Wednesday, Sept. 24
Nike profit falls 10% but tops estimates (4:31 pm ET)
SAN FRANCISCO (MarketWatch) -- Nike Inc. (NKE: news, chart, profile) reported late Wednesday net income for its fiscal first-quarter 2009 fell to $510.5 million, or $1.03 a share, from $569.7 million, or $1.12, a year ago. The year-ago results included a one-time tax gain that added 20 cents a share to the bottom line. For the three months ended Aug. 31, Nike's revenue rose 17% to $5.4 billion, boosted by favorable currency exchange rates. Analysts surveyed by Thomson Reuters had predicted the company would earn 92 cents a share on $5.19 in sales. Nike shares fell 2.6% ahead of the report to close at $59.27.
Paychex first-quarter net income up slightly(4:18 pm ET)
SAN FRANCISCO (MarketWatch) -- Paychex Inc. (PAYX: news, chart, profile) late Wednesday reported its fiscal first-quarter net income rose slightly to $148.7 million, or 41 cents a share, from $151.1 million, or 40 cents a share, in the same period a year earlier. Revenue increased to $534.1 million from $507.1 million in the first quarter of last year, said the payroll and human resources services company. Analysts surveyed by FactSet Research had forecast earnings of 41 cents a share on $541.4 million in sales. Paychex projected its net income to grow 2% to 4% while revenue is expected to rise 6% to 8% in fiscal 2009.
PPG Industries warns of Q3 profit shortfall(9:13 am ET)
NEW YORK (MarketWatch) -- PPG Industries (PPG: news, chart, profile) on Wednesday warned its third-quarter results will be hurt by 20 to 25 cents a share from hurricanes Ike and Gustav and deterioration in the automotive manufacturing market. Analysts expected the Pittburgh maker of paints and coatings to earn $1.47 a share, on average, according to a survey by FactSet Research. PPG also said it would take a third-quarter charge of $160 million for restructuring costs tied to boosting its bottom line by $100 million a year. Several PPG manufacturing units and facilities in the United States, Canada and Europe will be impacted.
Dominon cuts drilling lease by $205 million on credit crunch(7:38 am ET)
NEW YORK (MarketWatch) -- Dominion (D: news, chart, profile) said it lowered the total amount of a drilling lease to Antero Resources to $347 million from $552 million, but the cost per acre of the pact will increase. The new drilling rights pact will cost Antero Resources about $3,037 per acre for 114,259 acres in the Marcellus Shale. The earlier deal covered 205,000 acres for about $2,700 an acre. Domininon said it cut the dollar amount of the lease because Antero, "had difficulty in obtaining follow-on financing in the current market turmoil." Dominion will still receive a 7.5% royalty interest on future natural gas production from the assigned acreage. Dominion will retain the drilling rights in traditional formations both above and below the Marcellus Shale interval and will continue its conventional drilling program on the acreage.
Lowe's reiterates 2008 profit view, gives long-term forecast(7:15 am ET)
NEW YORK (MarketWatch) -- Lowe's Companies Inc. (LOW: news, chart, profile) said Wednesday that it still expects to earn $1.48 to $1.56 a share in fiscal 2008, and sees sales growth of 1% for the period. On average, analysts polled by FactSet Research expect a profit of $1.53 a share for the year. For fiscal 2009, the home-improvement retailer forecasts a profit of $1.40 to $1.65 on a 2.5% to 6.5% increase in total sales. That compares to analysts' consensus forecast of $1.57 a share. Chairman and Chief Executive Officer Robert Niblock said he expects the company to more than double its expected 2008 earnings per share over the next five years. The company is hosting its annual conference for analysts and investors Wednesday.
Advance America closes all 30 outlets in Arkansas(4:35 am ET)
TEL AVIV (MarketWatch) -- Advance America, (AEA: news, chart, profile) the Spartanburg, S.C., provider of payday cash-advance services, said it would close its 30 Arkansas offices because a regulatory decision prevents it from operating profitably in the state. The closings will cost about $900,000, AEA said in a statement on Tuesday. The company and the Arkansas attorney general could not come to terms on their differing interpretations of the law, AEA said. The company also said that in August it finished closing its nine stores in New Mexico at a cost of $100,000. Restrictions on fees and interest meant it couldn't operate profitably there as well, the company said.
Kirby: Hurricane damage cut 8c-9c from 3rd-period net(4:05 am ET)
TEL AVIV (MarketWatch) -- Kirby Corp., (KEX: news, chart, profile) the Houston operator of barges and towing vessels for petroleum and chemicals products, said late on Tuesday that damage from Hurricanes Gustav and Ike would cut 8 cents to 9 cents a share from third-quarter earnings. Thus it estimated the period's earnings at 73 cents to 76 cents, compared with 64 cents in the year-earlier period. A survey of analysts by FactSet Research produced a consensus estimate of 78 cents of profit for the quarter. A partial offset to the storm damage was a 3-cent to 4-cent benefit from lower diesel-fuel costs, Kirby said. The company expects "a return to strong pre-hurricane operating fundamentals after customer facilities begin operating at normal levels."
Key Energy: storm damage cut 3rd-period net; year affirmed(3:39 am ET)
TEL AVIV (MarketWatch) -- Key Energy Services Inc., (KEG: news, chart, profile) the Houston rig-based well-service provider, estimated that damage the recent storms in Louisiana, Texas and Oklahoma cut 3 cents to 5 cents a share from third-quarter earnings and $10 million to $14 million from revenue. The company estimated the quarter's earnings at 36 cents to 38 cents a share. A survey of analysts by FactSet Research produced a consensus estimate of 40 cents for the quarter. At the same time, Chairman and Chief Executive Dick Alario said in a statement late on Tuesday that the company is "confident in activity levels" for the rest of the year and sees the year's profit in line with its earlier estimate of $1.35 to $1.45 a share. FactSet's survey is looking for $1.42. At Sept. 23, Key Energy said, its liquidity is "strong," with $65 million of cash on hand plus $168 million available under a senior credit line.
Intuit affirms earnings estimate for 1st period, fiscal year(3:23 am ET)
TEL AVIV (MarketWatch) -- Intuit Inc., (INTU: news, chart, profile) the Mountain View, Calif., provider of financial solutions including the QuickBooks, Quicken and TurboTas software packages, affirmed its earnings estimates for the first quarter and for fiscal 2009. The fiscal year ends July 31. Late on Tuesday, the company said that for the quarter it expects a loss of 23 cents to 26 cents a share, or an adjusted 11 cents to 14 cents. For the year, it expects to earn $1.41 to $1.45, or an adjusted $1.86 to $1.90. Analysts surveyed by FactSet Research are looking for a 15-cent loss in the first quarter and a $1.77 profit for the year. On the revenue side, Intuit is looking for an increase of 8% to 11% for the quarter and 9% to 12% for the year.
Smiths Group pretax rises 25%, holds dividend(2:46 am ET)
LONDON (MarketWatch) -- X-ray scanner to oil seal producer Smiths Group (UK:SMIN: news, chart, profile) said its pretax profit in the year to July 31 rose 25% to 319 million pounds ($593 million), or up 8% on an underlying basis. Sales rose 7% to 2.32 billion pounds on new contracts for airport checkpoint detection systems, strong demand from the petrochemical industry and new contracts for USA 4G wireless broadband and new military programs. Profit growth was led by its John Crane engineered sealing systems unit on strong volume growth and price increases. Smiths said it's well placed to meet the challenges of "upheaval" in the world economy but said its Flex-Tek unit will be hurt by the recession in the U.S. construction market. Its dividend was left unchanged at 34 pence a share. Separately, Smiths won a U.S. military communications contract worth up to 225 million pounds.
Imperial Tobacco performance meeting expectations(2:42 am ET)
LONDON (MarketWatch) -- Imperial Tobacco (UK:IMT: news, chart, profile) said Wednesday that its performance for the financial year to Sept. 30 remains in line with expectations. The group said it is making good progress with the integration with Altadis, particularly in France where it has agreed with the Central Works Council that the consultation process will be completed in November.
Tuesday, Sept. 23
Energy stocks edge up in early action(9:36 am ET)
NEW YORK (MarketWatch) -- Energy stock edged up in early action on Tuesday along with the broad market.