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Thursday, Sept. 25
CORRECT: Accenture quarterly net income rises 37% (4:51 pm ET)
SAN FRANCISCO (MarketWatch) -- Accenture Ltd. (ACN: news, chart, profile) said late Thursday that fiscal fourth-quarter net income came in at $434.8 million, up 37% from a year earlier when the consulting and outsourcing firm made $316.8 million. Net income per diluted share was 67 cents versus 50 cents. Net revenue rose 17% to $6 billion. New bookings for the quarter rose to $7.67 billion, a quarterly record. Operating income jumped 22% to $785 million, and the company's operating margin expanded by 50 basis points compared with the fourth quarter last year. For its next fiscal year, Accenture forecast net revenue growth of 9% to 12% and earnings per diluted share of $2.85 to $2.93. (Corrects percentage net income gain).
Tibco third-quarter net income rises to 6 cents a share(4:24 pm ET)
SAN FRANCISCO (MarketWatch) -- Tibco Software Inc. (TIBX: news, chart, profile) late Thursday reported its third-quarter net income rose to $11.1 million, or 6 cents a share, from $4.6 million, or 2 cents a share, in the same period a year earlier. On an adjusted basis, Tibco would have earned $19.6 million, or 11 cents a share. Revenue increased to $162.3 million from $135.1 million in the third quarter a year ago. Analysts surveyed by FactSet Research had forecast earnings of 7 cents a share on revenue of $155 million.
Research In Motion earnings surge on BlackBerry sales(4:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Research In Motion saw net income soar 72% for its second fiscal quarter on strong sales of its BlackBerry wireless devices. For the quarter ended August 30, the company (RIMM: news, chart, profile) reported earnings of $495.5 million, or 86 cents a share, compared to earnings of $287.7 million, or 50 cents a share, for the same period the previous year. Revenue for the quarter surged 88% to $2.58 billion. Analysts were expecting earnings of 86 cents a share on revenue of $2.55 billion, according to consensus estimates from FactSet Research. For the current quarter ending November 29, the company forecasted earnings per share of 89-97 cents a share on revenue of $2.95 billion to $3.1 billion. Analysts had been expecting earnings of 97 cents a share on revenue of $2.9 billion, according to FactSet estimates.
Discover Financial profit falls (8:40 am ET)
NEW YORK (MarketWatch) -- Credit card firm Discover Financial Services (DFS: news, chart, profile) said Thursday that it earned $180.1 million, or 37 cents a share in its fiscal third quarter, compared to $202.2 million, or 42 cents a share a year ago. Analysts polled by FactSet Research had expected the firm to earn 37 cents a share.
Goodyear cash stuck in Reserve fund(8:25 am ET)
NEW YORK (MarketWatch) -- Goodyear Tire & Rubber Co. (GT: news, chart, profile) said Thursday that it is currently unable to access $360 million of cash that it has invested in The Reserve's Primary Fund, the money market fund that broke the buck last week. To make up the lack of liquidity, Goodyear said it intends to draw $600 million from its existing U.S. revolving credit facility. Goodyear also said the expiration of a period to appeal a court decision meant that it can remove liabilities for United Steelworkers union retiree healthcare from its balance sheet. At year-end 2007, those liabilities were $1.2 billion.
Rite Aid reports widening loss, lowers forecast(7:51 am ET)
NEW YORK (MarketWatch) -- Rite Aid Corp. (RAD: news, chart, profile) said Thursday its fiscal second-quarter loss totaled $222 million, or 27 cents a share, a larger hit than the loss of $69.6 million, or 10 cents a share, reported in the same quarter a year before. Analysts had expected a loss on average of 14 cents a share, according to a FactSet Research survey. Revenue for the fiscal second quarter of 2009 was $6.50 billion compared to $6.57 billion in the year-ago period. Rite Aid also cut its fiscal 2009 sales forecast to between $26.0 billion and $26.5 billion, with a projected loss of 56 cents to 67 cents a share -- wider than previously expected -- due partly to continued economic weakness. The company also said its former chief financial officer, John Standley, was returning to Rite Aid to serve as president and chief operating officer. Frank Vitrano, who worked with Standley at Pathmark Stores Inc., was named to serve as Rite Aid's chief financial officer.
McCormick & Co. net income rises, reiterates profit view(7:11 am ET)
NEW YORK (MarketWatch) -- McCormick & Co. (MKC: news, chart, profile) on Thursday said third-quarter net income rose 21% to $68.6 million, or 52 cents a share, from $56.8 million, or 43 cents a share in the year-ago period. Adjusted net income rose to 50 cents a share from 45 cents a share. Revenue rose to $781.6 million from $716.2 million. Analysts surveyed by FactSet forecast earnings of 49 cents a share on revenue of $780.2 million, on average. The food and spice firm continues to expect to grow fiscal year 2008 sales 9% to 10%. It increased its 2008 profit outlook by a penny a share to a range of $2.04 to $2.08 to reflect a larger-than-expected gain on the sale of its Season-All unit. The figure also includes an estimated 10 cents a share of restructuring charges and 3 cents a share for costs to rebalance debt.
S&P affirms AAA rating on GE and GE Capital unit(7:10 am ET)
TEL AVIV (MarketWatch) -- Standard & Poor's affirmed its AAA long-term and A-1+ short-term corporate-credit ratings on General Electric Co. and its GE Capital Corp. subsidiary and its A-1+ short-term rating on GE Capital Services Inc. The outlook on GE and GE Capital is stable, S&P said. S&P moved after parent GE cut its earnings estimates and said it would boost capital in the GE Capital unit and halt the stock buyback. The earnings-estimate revision stemmed "mainly from weaker-than-anticipated results" at GE Capital, S&P said. S&P noted that GE management now expects third-quarter financial-services earnings, excluding discontinued operations, of $2 billion compared with $3.2 billion in the year-earlier period. But "GE Capital continues to significantly outperform the majority of its peers among large financial institutions, owing to its broad product and geographic diversity, and conservative underwriting standards," S&P said in a statement. "We believe there is sufficient leeway in GECC's rating to sustain a period of cyclically weak profitability."
GE pares estimates, lifts capital in unit, halts buyback(6:44 am ET)
TEL AVIV (MarketWatch) -- General Electric Co., (GE: news, chart, profile) the Fairfield, Conn., industrial and financial-services giant, cut its earnings estimates, halted its stock buyback and will boost capital in the GE Capital financial subsidiary. The company cut its third-quarter earnings estimate to a range of 43 cents to 48 cents a share from 50 cents to 54 cents, "reflecting unprecedented weakness and volatility in the financial-services markets." For the year, GE now expects to earn $1.95 to $2.10 a share, against its previous estimate of $2.20 to $2.30. A survey of analysts by FactSet Research produced consensus estimates of 52 cents for the quarter and $2.21 for the year. The company said it affirmed its commitment to its triple-A credit rating by increasing capital in GE Capital and halting the buyback. The company also said it would maintain the quarterly dividend of 31 cents a share through the end of 2009.
Copart 4th-quarter net up 11% on 34% higher revenue(4:37 am ET)
TEL AVIV (MarketWatch) -- Copart Inc., (CPRT: news, chart, profile) the Fairfield, Calif., provider of vehicle-remarketing services, reported fiscal fourth-quarter net income rose 11% on 34% higher revenue. For the quarter ended July 31, earnings reached $40.8 million, or 47 cents a share, from $36.7 million, or 40 cents, in the year-earlier period. Adjusted profit for the latest quarter was 48 cents. Weighted-average shares outstanding fell 5.9% to 87.4 million. Revenue rose to $206.3 million from $154 million. A survey of analysts by FactSet Research produced a consensus estimate of 46 cents for the period.
3i realized proceeds off 45% in 5 months through August(2:50 am ET)
TEL AVIV (MarketWatch) -- 3i Group Plc, (TGOPF: news, chart, profile) (UK:III: news, chart, profile) the London private-equity firm, reported that for the five months ended Aug. 31, realization proceeds fell 45% to 560 million pounds ($1.04 billion) from 1.01 billion pounds in the year-earlier period. The figure excludes proceeds of 162 million pounds from ABX, 3i expects to receive shortly after Sept. 30. 3i said it invested 622 million pounds in the five-month period, compared with 1.01 billion pounds a year earlier. And 3i invested 268 million pounds on behalf of co-investment funds it manages. The equivalent year-earlier figure was 258 million pounds.
Ameriprise sets aside $33 mln for Primary Fund holders(2:19 am ET)
TEL AVIV (MarketWatch) -- Ameriprise Financial Inc., (AMP: news, chart, profile) the Minneapolis financial-planning-services provider, said late on Wednesday that it would commit as much as $33 million to protect clients who invested in Primary Fund, a money-market mutual fund managed by Reserve Management Co. The fund was the first major money-market fund to see its share value drop below $1. Ameriprise said it's taking the action "to mitigate client losses up to 3 cents per share should clients receive less than $1 per share when the fund is liquidated." Ameriprise said it moved because of the "prospect that this situation will not be covered by the proposed U.S. Treasury money-market-guarantee program." Ameriprise said the move would cut third-quarter earnings by about 1 cent a share. Last Friday, Ameriprise said it sued Reserve Management in federal court in Minneapolis, seeking to liquidate Primary Fund. On Wednesday, TD Ameritrade (AMTD: news, chart, profile) said it would spend as much as $50 million to ensure that Primary Fund holders suffer no losses.
Pilgrim's Pride sees loss; non-compliance with debt covenant(1:41 am ET)
TEL AVIV (MarketWatch) -- Pilgrim's Pride Corp., (PPC: news, chart, profile) Pittsburg, Texas, the No. 1 U.S. chicken producer, said on Thursday that it expects to report a "significant" fiscal fourth-quarter loss because of high feed-ingredient costs, continued weak prices and demand for breast meat, and the "significant negative impact" of hedged grain positions. The loss for the quarter ending Sept. 27 will probably put the company out of compliance with its fixed-charge coverage ratio covenant under its main credit lines at the end of the fiscal year, Pilgrim's Pride said. It expects to comply with all other covenants at the end of fiscal 2008. And the company said it has reached an understanding under which through Oct. 28 its lenders would waive the fixed-charge coverage ratio covenant and continue to provide funds under the credit lines. PPC said it must reach a definitive agreement on the plan and it can't be sure it will be able do so. If the lenders don't waive or amend the covenant, Pilgrim's Pride said it may be precluded from drawing funds under the credit facilities and the lenders may be able to declare a default, "either of which would have a material adverse effect on the company," Pilgrim's Pride said. The company's stock was halted at $6.36, down 38%, on Wednesday.
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.