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Tuesday, Oct. 21
Norfolk Southern profit jumps 35% (6:20 pm ET)
SAN FRANCISCO (MarketWatch) -- Norfolk Southern Corp. (NSC: news, chart, profile) reported late Tuesday third-quarter net income of $520 million, or $1.37 a share, up from $386 million, or 97 cents a share, a year earlier. Revenue for the quarter rose 23% to $2.89 billion from $2.35 billion. Analysts polled by FactSet Research were looking for a profit, on average, of $1.21 a share on $2.76 billion in revenue. The Norfolk, Va.-based railroad cited continued revenue growth from coal, up 52% from a year ago, for the bulk of its gains. General merchandise and intermodal freight hauling also improved. Norfolk Southern shares fell 3.7% to close at $53.87 ahead of the report but jumped as much as 5.8% to $57 in after-hours trade.
Apple earnings climb 26%, iPod, Mac sales rise(4:51 pm ET)
SAN FRANCISCO (MarketWatch) -- Apple Inc. (AAPL: news, chart, profile) on Tuesday reported a fiscal fourth-quarter profit of $1.14 billion, or $1.26 a share, on revenue of $7.9 billion, up from of $904 million, or $1.01 a share, on $6.22 billion in sales in the same period a year ago. Analysts surveyed by FactSet Research had forecast Apple to earn $1.10 a share on revenue of $8.02 billion. Apple said that when adjusting to eliminate the impact of subscription-based accounting related to certain products, it would have earned $2.44 billion on $11.68 billion in sales. For its first quarter, Apple estimates it will earn between $1.06 to $1.35 share on revenue in a range of $9 billion to $10 billion.
QLogic reports quarterly net income of 20 cents a share (4:48 pm ET)
SAN FRANCISCO (MarketWatch) -- QLogic Corp. (QLGC: news, chart, profile) late Tuesday reported its second-quarter net income rose to $27.2 million, or 20 cents a share, from $22.6 million, or 16 cents a share, in the second quarter of 2007. On an adjusted basis, the company would have earned 34 cents a share. Revenue increased to $171.2 million from $140.3 million in the same period a year earlier, said the networking and storage company. Analysts surveyed by FactSet Research had forecast QLogic to post earnings of 28 cents a share on $170 million in revenue.
Yahoo posts profit decline, to reduce headcount by 10%(4:40 pm ET)
SAN FRANCISCO (MarketWatch) -- Sunnyvale, Calif.-based Internet giant Yahoo Inc. said Tuesday its fiscal third-quarter profit fell lower, and that it will seek to control costs by cutting roughly 10% of its workforce. Yahoo said net income in the quarter fell to $54.3 million, or 4 cents a share, from $151.3 million, or 11 cents a share in the same period a year earlier. Excluding special items, Yahoo said earnings for the period ended in September fell to 9 cents a share. Meanwhile net revenue rose to $1.33 billion. Analysts on average had estimated Yahoo (YHOO: news, chart, profile) would report earnings of 8 cents a share for quarter, and $1.37 billion in net revenue, according to FactSet Research.
Sigma-Aldrich third-quarter profit rises to 64 cents a share(4:19 pm ET)
SAN FRANCISCO (MarketWatch) -- Sigma-Aldrich Corp. (SIAL: news, chart, profile) late Tuesday reported its third-quarter net income rose to $81.9 million, or 64 cents a share, from $71.6 million, or 54 cents a share, in the third quarter of 2007. Revenue increased to $540.6 million from $503.2 million in the same period a year earlier, said the St. Louis-based biochemical and organic chemicals maker. Analysts surveyed by FactSet Research had forecast the company to report earnings of 66 cents a share on revenue of $563.4 million. The company also reaffirmed its 2008 earnings outlook of $2.62 to $2.72 a share. Wall Street is projecting the company will earn $2.68 a share in 2008.
VMware earnings jump 28% on strong sales growth(4:08 pm ET)
SAN FRANCISCO (MarketWatch) -- VMware Inc. (VMW: news, chart, profile) reported a sharp jump in third-quarter earnings thanks mostly to strong growth in services revenue. For the quarter ended Sept. 30, the company reported earnings of $83.3 million, or 21 cents a share, compared to earnings of $64.7 million, or 18 cents a share, for the same period the previous year. Excluding the cost of stock options and other items, the company said it would have earned $93 million, or 24 cents a share, for the recent period. Revenue rose to $472.1 million from $357.8 million last year. Analysts were expecting earnings of 20 cents a share on revenue of $464.6 million, according to consensus estimates from FactSet Research.
E-Trade reports quarterly net loss of $50.5 million(4:06 pm ET)
SAN FRANCISCO (MarketWatch) -- E-Trade Financial Corp. (ETFC: news, chart, profile) late Tuesday reported a third-quarter net loss of $50.5 million, or nine cents a share. That compares to a net loss of $58.4 million, or 14 cents a share, a year earlier. The discount brokerage firm realized roughly $660 million in gains from sales of non-core assets, such as its Canadian business, during the latest quarter. Losses from continuing operations in the third quarter reached 60 cents a share, the company added. E-Trade was expected to lose 24 cents a share in the period, according to the average estimate of 13 analysts in a FactSet survey. E-Trade set aside $518 million in provisions to cover loan losses in the latest quarter. That was up by $199 million from the previous quarter. The company increased its forecast for losses from its home equity portfolio by 20% for 2008 through 2010. E-Trade said provisions probably peaked in the third quarter and charge-offs will begin to improve in 2009. However, it said it doesn't expect to make a profit in the fourth quarter of 2008.
TI, Sun Micro, Lexmark lead tech losses(9:43 am ET)
SAN FRANCISCO (MarketWatch) -- Technology stocks fell along with the broader market in early trading Tuesday, with the tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) falling 31 points to 1,739. The losses were led by disappointing earnings reports and outlooks from Texas Instruments Inc. (TXN: news, chart, profile) , Sun Microsystems Inc. (JAVA: news, chart, profile) and Lexmark International Inc. (LXK: news, chart, profile) . The tech sector also awaited earnings reports due after the market close from Apple Inc. (AAPL: news, chart, profile) , Yahoo Inc. (YHOO: news, chart, profile) and VMware Inc. (VMW: news, chart, profile) .
McClatchy swings to profit; no relief in sight for ad sales(9:29 am ET)
CHICAGO (MarketWatch) -- Newspaper publisher McClatchy Co. (MNI: news, chart, profile) said Tuesday that it swung to a third-quarter profit from a year-earlier quarter that included a massive non-cash charge on a decrease in the value of its assets. As the industry remains mired in a protracted decline in print advertising that has persisted for more than two years, Chief Executive Gary Pruitt said ad sales continue to look bleak in October. McClatchy said it earned $4.2 million, or 5 cents a share, in the latest three months. In the third quarter of 2007, the company posted a loss of $1.35 billion, or $16.40 a share. Excluding an adjustment to a gain, the write-down of certain Internet investments, and other items, McClatchy would have earned $10.4 million, or 13 cents a share, in the quarter ended Sept. 30, 2008. Revenue plunged 16.4% to $451.6 million, reflecting a more than 31% drop in classified advertising, the traditional main source of income for newspapers. Analysts polled by FactSet Research were expecting, on average, a profit of 13 cents a share, excluding stock-based compensation, on revenue of $454.1 million.
Constellation Energy Group names new CFO(9:24 am ET)
NEW YORK (MarketWatch) -- Constellation Energy Group (CEG: news, chart, profile) on Tuesday named Jonathan W. Thayer as chief financial officer. The Baltimore-based electric power firm is moving toward closing its merger with MidAmerican Energy Holdings Company, which is owned by Berkshire Hathaway (BRKA: news, chart, profile) . Thayer succeeds John R. Collins, who has stepped down from his role as chief financial officer and will move into an advisory capacity to assist with the MidAmerican merger and other strategic initiatives. Collins will continue to serve as chairman of Constellation Energy Partners, LLC (CEP: news, chart, profile) , which is 28% owned by Constellation Energy.
Ashland expects to break even in fourth quarter(9:17 am ET)
NEW YORK (MarketWatch) -- Ashland Inc. (ASH: news, chart, profile) said Tuesday that it expects fourth-quarter earnings from continuing operations to be near break-even. The Covington, Ky.-based producer of chemicals and motor oil blamed several factors, including a loss at Ashland Water Technologies, lower-than-expected volumes at Ashland Distribution, a higher effective tax rate and about $7 million of restructuring costs. The quarter, which ended Sept. 30, is also expected to include a loss from discontinued operations of nearly $10 million. The company is slated to release results on Oct. 28.
NVR's net income falls 60% on housing woes(9:07 am ET)
BOSTON (MarketWatch) -- NVR Inc. (NVR: news, chart, profile) on Tuesday morning said its third-quarter net income fell 60% from the year-earlier period to $36.6 million, or $6.12 a share. Four analysts surveyed by Thomson Reuters had forecast profit of $7.86 a share, on average. The home builder said new orders in the third quarter fell 25%, reflecting continuing weak demand for housing.
M&T Bank profit falls 54%(8:55 am ET)
NEW YORK (MarketWatch) -- M&T Bank Corp (MTB: news, chart, profile) said Tuesday that its third quarter profit slipped 54% in the third quarter, to $91.2 million, or 82 cents a share, compared to $199.2 million, or $1.83 a share a year ago. "Nonperforming loans trended higher during the recent quarter, even though net charge-offs of loans were down slightly. Both remain at manageable levels," M&T Chief Financial Oficer Rene Jones said in a press release.
Precision Castparts posts profit, but eyes Boeing strike(8:49 am ET)
NEW YORK (MarketWatch) -- Precision Castparts Corp. (PCP: news, chart, profile) on Tuesday said second-quarter net income rose to $269.3 million, or $1.91 a share, from $235.4 million, or $1.68 a share, in the year-ago period. The Portland, Ore., metal components maker said sales for the three months ended Sept. 28 rose to $1.82 billion from $1.72 billion. Analysts surveyed by FactSet forecast earnings of $1.90 a share on revenue of $1.84 billion, on average. "Like other aerospace suppliers, we are feeling the impact of the Boeing (BA: news, chart, profile) strike, and the longer it lasts, the more orders will get pushed out," said Mark Donegan, chairman and chief executive officer. "Demand on our Special Metals aerospace operations had already begun to fall late in the second quarter, and we are now seeing the impact on our third-quarter sales expectations across the balance of our aerospace businesses."
Tracinda sells $18 mln in Ford stock as it changes focus(8:25 am ET)
NEW YORK (MarketWatch) -- Tracinda Corp., the holding company for billionaire investor Kirk Kerkorian, on Tuesday disclosed that it sold 7.3 million shares of Ford (F: news, chart, profile) on Oct. 20 at an average price of $2.43 a share for proceeds of about $17.7 million. The Los Angeles company said it'll focus on the gaming and hospitality, as well as the oil and gas industries, "in light of current economic and market conditions." Tracinda said it plans to further reduce its holdings of Ford common stock, including the possible sale of all of its remaining 133.5 million shares, or 6% of the auto maker's outstanding shares, depending upon market conditions and available sales prices.
CORRECT: BlackRock profit down 15%(8:26 am ET)
LONDON (MarketWatch) -- BlackRock Inc. (BLK: news, chart, profile) said Tuesday that its third-quarter net profit fell 15% to $217.7 million, or $1.62 a share, from $255.2 million, or $1.94 a share, a year earlier. Total revenue for the quarter rose 1% to $1.31 billion. The company said adjusted earnings for the quarter were $1.71 a share. Analysts polled by FactSet had been expecting adjusted earnings of $1.96 a share. The group said the weak environment negatively impacted flows and market values in all asset classes during the quarter. Assets under management fell 12% since the end of June to $1.26 trillion, driven by lower asset valuations, outflows from money market funds and the strengthening of the dollar. (Corrects to show the consensus forecast was for adjusted earnings.)
Lilly to take $1.4 billion charge related to Zyprexa probe(8:21 am ET)
NEW YORK (MarketWatch) -- Eli Lilly and Co. (LLY: news, chart, profile) said Tuesday that it is in advanced talks to resolve ongoing probes by the U.S. Attorney's Office for the Eastern District of Pennsylvania related to past U.S. marketing and promotional practices for its antipsychotic drug Zyprexa. As a result, the pharmaceutical giant expects to record a third-quarter charge of $1.42 billion, or $1.29 a share.
Freeport-McMoRan Copper & Gold net falls by a third(8:15 am ET)
NEW YORK (MarketWatch) -- Freeport-McMoRan Copper & Gold Inc. (FCX: news, chart, profile) on Tuesday said third-quarter net income fell to $523 million, or $1.31 a share, from $775 million, or $1.87 a share in the year-ago period. Revenue fell to $4.6 billion from $5.1 billion. Operating income fell to $1.1 billion from $1.88 billion. Wall Street analysts expected earnings of $1.45 a share on revenue of $4.9 billion, according to a survey by FactSet Research. Average realized price per pound for copper fell 11% to $3.14 per pound from $3.53 per pound. "Our third-quarter results reflect strong operating performance during a period of weakening commodity prices and economic uncertainty," the company said. "We are financially strong and well positioned to continue our long range strategy of adding to our mineral reserves and increasing our production capacity." The Phoenix-based mining giant said it'll be responsive to current market conditions by reducing costs and capital spending and curtailing high-cost operations if required.
Mueller Industries posts decline in third-quarter profit(7:48 am ET)
NEW YORK (MarketWatch) -- Mueller Industries Inc. (MLI: news, chart, profile) said Tuesday that its third-quarter net income fell to $18.7 million, or 50 cents a share, from $31.3 million, or 84 cents a share, in the year-earlier period. The Memphis, Tenn., maker of copper tubes and fittings said sales for the quarter declined to $665.5 million from $693.7 million.
Caterpillar profit falls but company reaffirms 2008 outlook (7:48 am ET)
NEW YORK (MarketWatch) -- Heavy equipment maker Caterpillar (CAT: news, chart, profile) said Tuesday its net income slipped 6% to $868 million, or $1.39 a share in the third quarter, from $927 million, or $1.40 a year ago. The company said that revenue in the quarter rose however, climbing 13% to $12.98 billion from $11.44 billion a year ago. Caterpillar reaffirmed its full year 2008 earnings outlook of $6 a share and said its financial services unit continues to have good access to capital. Analysts polled by Thomson Reuters had expected the company to earn $1.41 a share.
Lockheed Martin profit rises, boosts 2008 profit view(7:46 am ET)
NEW YORK (MarketWatch) -- Lockheed Martin Corp. (LMT: news, chart, profile) on Tuesday said its third-quarter net income rose to $782 million, or $1.92 a share, from $766 million, or $1.80 a share, from the year-ago period. Net sales slipped to $10.58 billion from $11.1 billion. Analysts, on average, expected it to earn $1.89 a share on sales of $10.74 billion, according to FactSet. For the year, the global security company raised its earnings target range to $7.55 to $7.70 a share, from $7.45 to $7.60 a share. It expects sales of $41.9 billion to $42.9 billion for the year. Analysts polled by FactSet Research expect it to earn $7.74 a share on sales of $42.96 billion, on average.
Celanese profit climbs 23%, outlook cut on economic slowdown(7:39 am ET)
LONDON (MarketWatch) -- Chemicals manufacturer Celanese Corp. (CE: news, chart, profile) said Tuesday that its third-quarter net profit rose 23% to $158 million, or 97 cents a share, from $128 million, or 76 cents a share, a year earlier. Net sales for the quarter rose 16% to $1.82 billion, driven by higher pricing, increased volumes in some products and favorable currency moves. Adjusted earnings edged up to 78 cents a share from 73 cents, matching analyst forecasts. The group also cut its outlook for 2008 adjusted earnings to a range of $3.40 to $.355 a share from a range of $3.60 to $3.85 a share, saying it expects the slowdown in Europe and the U.S. to continue and that it has also seen signs of slowing growth in Asia.
Biogen Idec net climbs 73%(7:29 am ET)
NEW YORK (MarketWatch) -- Biogen Idec Inc. (BIIB: news, chart, profile) on Tuesday said third-quarter net income climbed to $206.8 million, or 70 cents a share, from $119.4 million, or 41 cents a share in the year-ago period. Adjusted net income rose to 98 cents a share from 58 cents a share. Revenue climbed 38% to $1.09 billion. Analysts expected earnings of 87 cents a share and revenue of $1 billion, on average. Fro 2008, Biogen expects adjusted earnings above $3.50 a share, representing growth consistent with its goal of 20% compounded annual growth through 2010.
Quest Diagnostics posts higher third-quarter profit(7:25 am ET)
NEW YORK (MarketWatch) -- Quest Diagnostics Inc. (DGX: news, chart, profile) said Tuesday that its third-quarter net income rose to $110.8 million, or 57 cents a share, from $98.0 million, or 51 cents a share, in the year-earlier period. Adjusted earnings were 86 cents a share in the period. Revenue increased to $1.83 billion from $1.77 billion. Analysts polled by FactSet had been expecting earnings of 82 cents a share on revenue of $1.84 billion. For the full year, the company, which provides diagnostic testing, information and services, said it expects adjusted earnings of $3.17 to $3.22 a share from continuing operations, compared to the previous range of $3.10 to $3.20.
Waters Corp.'s third-quarter net profit rises 34%(7:24 am ET)
LONDON (MarketWatch) -- Waters Corporation (WAT: news, chart, profile) said third-quarter net income rose 34% to $71.5 million, or 71 cents a share, from $53.2 million, or 52 cents a share, earned in the year-earlier quarter. Adjusted earnings came in at 79 cents a share vesus 62 cents a share a year earlier. Consensus forecasts were for earnings of 74 cents a share, according to a poll of 10 analysts surveyed by FactSet Research. Sales climbed 10% to $353 million.
Omnicom net rises 5.6%(7:22 am ET)
NEW YORK (MarketWatch) -- Omnicom Group Inc. (OMC: news, chart, profile) on Tuesday said third-quarter net income climbed 5.6% to $213.6 million, or 69 cents a share, from $202.2 million, or 62 cents a share in the year-ago period. The New York-based advertising, media, marketing and communications holding company said worldwide revenue rose 6.9% to $3.32 billion. Analysts expected earnings of 68 cents a share and revenue of $3.35 billion, on average.
Regions Financial net income falls 80%(7:18 am ET)
NEW YORK (MarketWatch) -- Regions Financial Corp. (RF: news, chart, profile) on Tuesday said third-quarter net income fell to $79.5 million, or 11 cents a share from $394.2 million, or 56 cents a share in the year-ago period. Adjusted earnings in the latest period totaled 15 cents a share. Analysts expected earnings of 28 cents a share for the Birmingham, Ala. lender, according to a survey by FactSet Research. "This past quarter will likely be regarded as one of the most turbulent and challenging periods in the history of the financial services industry," said Dowd Ritter, chairman, president and chief executive officer. "Credit quality and capital adequacy issues, along with a slowing economy, have created an unprecedented operating environment for financial companies. Regions is taking aggressive actions to counter its effects and is well-positioned to weather the storm."
U.S. Bancorp profit down 47%(7:09 am ET)
LONDON (MarketWatch) -- U.S. Bancorp. (USB: news, chart, profile) said Tuesday that its third-quarter net profit fell 47% to $576 million, or 32 cents a share, from $1.1 billion, or 62 cents a share, a year earlier. The firm said the latest quarter included losses of $411 million, or 18 cents a share, on lower securities valuations and an incremental provision of 10 cents a share for credit losses. U.S. Bancorp said net interest income rose 16.7 from a year earlier to $1.97 billion. Analysts polled by FactSet were expecting earnings of 49 cents a share in the latest quarter. At the end of the quarter the group said it had a Tier 1 capital ratio of 8.5%. Net charge offs in the third quarter were $498 million and the company said it expects that level to increase in the fourth quarter.
Tellabs loses nearly $1 billion on write-off(7:09 am ET)
LONDON (MarketWatch) -- Tellabs (TLAB: news, chart, profile) said it swung to a third-quarter loss of $999 million, or $2.51 a share, mostly on an impairment charge as it completely wrote off the goodwill associated with its broadband and transport segments. Tellabs earned $4 million, or a penny a share in the year-earlier period, and excluding charges would have earned 5 cents a share in the third quarter of 2008. Revenue fell 7% to $424 million. Analysts polled by FactSet expected a profit of 3 cents a share for the third quarter. It expects fourth-quarter 2008 revenue to be flat to down from the third quarter of 2008, in a range from $424 million to the low $400 millions. Tellabs said it needs to further reduce its workforce.
ENGlobal 'disappointed' as it forecasts earnings drop(6:59 am ET)
LONDON (MarketWatch) -- ENGlobal (EN: news, chart, profile) said it was "disappointed" as it forecast third-quarter earnings per share to fall to 11 cents to 13 cents a share, down from 15 cents a share in the prior year. Revenue is seen rising to $123.2 million from $96.8 million. The company cited lost billing revenue and margin related to hurricanes, improved employee benefits, project overruns and higher overhead costs in its construction unit. Analysts polled by FactSet had expected earnings of 24 cents a share.