Earning Plays

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Thursday, Oct. 23
Eastman Chemical profit jumps five-fold(5:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Eastman Chemical Co. (EMN: news, chart, profile) on Thursday posted a third-quarter profit of $100 million, or $1.33 a share, up from $20 million, or 24 cents a share, a year ago. Sales rose 8% to $1.8 billion. Analysts polled by FactSet Research were looking for a profit of $1.34 a share on revenue of $1.8 billion. "We delivered solid third-quarter earnings despite significant raw material and energy cost volatility, uncertain prospects for the global economy, and difficulty in the financial markets," Chairman and CEO Brian Ferguson said. He said he expects Eastman to post a profit at the low end of the current analyst range, which is 90 cents a share for the fourth quarter. Eastman's stock fell 3.7% to close at $36.83.
Interactive Brokers quarterly net climbs 23%(4:51 pm ET)
SAN FRANCISCO (MarketWatch) -- Interactive Brokers Group (IBKR: news, chart, profile) said late Thursday that third-quarter net income came in at $27.2 million, or 65 cents a share, up 23% from a year earlier when the broker made $22.2 million, or 53 cents a share. Net revenues climbed to $497 million from $445.1 million, the company added. Interactive Brokers was expected to make 58 cents a share, according to the average estimate of three analysts polled by FactSet.
Microchip Technology sees earnings jump following charge(4:40 pm ET)
SAN FRANCISCO (MarketWatch) -- Microchip Technology Inc. (MCHP: news, chart, profile) said Thursday that earnings rose 26% for its second fiscal quarter, thanks in part to a charge taken for the same period last year. The company reported earnings of $76.5 million, or 41 cents a share, compared to earnings of $60.7 million, or 27 cents a share, for the same period last year. Excluding the effects of stock options, the company said it would have earned 45 cents a share for the recent quarter. Revenue rose 4% to $269.7 million. Analysts were expecting earnings of 41 cents a share on revenue of $273.5 million, according to consensus estimates from FactSet Research.
Aflac's third-quarter profit slides to 21 cents a share(4:37 pm ET)
SAN FRANCISCO (MarketWatch) -- Aflac Inc. (AFL: news, chart, profile) late Thursday reported its third-quarter net income fell to $100 million, or 21 cents a share, from $420 million, or 85 cents a share, in the third quarter of 2007. About $198 million of the after-tax investment losses in the quarter partly stems from the company's decision to sell its holdings in Lehman Brothers and Washington Mutual and impair its investment in Ford Motor. Operating earnings, which exclude net realized investment gains and losses, were $493 million, or $1.02 a share, said the health insurer. Aflac also said it expects 2008 operating earnings per share to rise 15%, excluding the impact of the Japanese yen.
Chubb quarterly net income falls 64%(4:30 pm ET)
SAN FRANCISCO (MarketWatch) -- Chubb Corp. (CB: news, chart, profile) said late Thursday that third-quarter net income came in at $264 million, or 73 cents a share, down 64% from a year earlier when the property and casualty insurer made $738 million, or $1.87 a share. Operating income, which excludes after-tax realized investment gains and losses, declined to $338 million, or 93 cents a share. Chubb was expected to make $1.03 a share, according to the average estimate of 17 analysts in a FactSet survey. The results were dented by hurricane-related claims, plus losses and impairments on Chubb's investments.
Federated quarterly net income slips 3%(4:23 pm ET)
SAN FRANCISCO (MarketWatch) -- Federated Investors Inc. (FII: news, chart, profile) said late Thursday that third-quarter net income came in at $56.2 million, or 56 cents a share, down 3% from a year earlier when the mutual fund company made $57.7 million, or 57 cents a share. Earnings from continuing operations were 56 cents a share in the latest quarter, the company added. Federated was expected to make 54 cents a share, according to the average estimate of nine analysts in a FactSet survey. Total managed assets were $344 billion at the end of September, up 25% from a year ago and up 3% from the end of June, Federated reported.
Synovus swings to third-quarter net loss (4:23 pm ET)
SAN FRANCISCO (MarketWatch) -- Synovus Financial (SNV: news, chart, profile) late Thursday reported it swung to a third-quarter net loss of $26.9 million, or 8 cents a share, from a net income of $134.9 million, or 41 cents a share, in the third quarter of 2007. Analysts surveyed by FactSet Research had forecast the company to earn 8 cents a share. Nonperforming loans totaled $770 million as of Sept. 30, an increase of $143 million from the second quarter, the company said. The ratio of nonperforming assets to loans, impaired loans held for sale, and other real estate was 3.58% at the end of the quarter, compared to 3% in the previous quarter and 1.16% in the third quarter of 2007.
Burlington Northern boosts profit jumps 31% (4:24 pm ET)
SAN FRANCISCO (MarketWatch) -- Burlington Northern Santa Fe Corp. (BNI: news, chart, profile) reported late Thursday third-quarter net income rose to $695 million, or $2.00 a share, from $530 million, or $1.48 a share, a year ago. Revenue for the three months ended Sept. 30 rose 20% to $4.91 billion. Analysts polled by FactSet had predicted the company would earn $1.69 a share on $4.79 billion in revenue. Shares of Forth Worth, Texas-based railroad rose 72 cents to close at $81.58 ahead of the report.
Microsoft posts quarterly profit, sales gains(4:15 pm ET)
SAN FRANCISCO (MarketWatch) - Microsoft Corp. on Thursday posted a slight fiscal first-quarter profit gain and sales growth that topped Wall Street analysts' estimates. The Redmond, Wash.-based software giant (MSFT: news, chart, profile) said net income for the quarter ended in September rose to $4.37 billion, or 48 cents a share, from $4.29 billion, or 46 cents a share in the same period a year earlier. Revenue rose 9% to $15.06 billion. Analysts on average had estimated Microsoft would post earnings of 47 cents a share for the quarter, and $14.8 billion in revenue, according to FactSet Research.
MEMC earnings rise almost 21%(4:07 pm ET)
SAN FRANCISCO (MarketWatch) -- MEMC Electronic Materials Inc. (WFR: news, chart, profile) on Thursday reported a fiscal third-quarter profit of $182.8 million, or 80 cents a share, on revenue of $546 million. During the same period a year ago, the maker of silicon wafers for the semiconductor industry earned $151.5 million, or 65 cents a share, on $531.4 million in sales. Excluding one-time items, MEMC would have earned $195.8 million, or 86 cents a share. Analysts surveyed by FactSet Research had forecast MEMC to earn 89 cents a share on $537 million in revenue.
Home-builder stocks crushed after earnings reports(3:06 pm ET)
BOSTON (MarketWatch) -- Home-builder stocks were down sharply Thursday after two of the industry's largest names reported significant quarterly losses that contributed to fears that a housing recovery could be some time in the future. Pulte Homes Inc. (PHM: news, chart, profile) and Ryland Group Inc. (RYL: news, chart, profile) after Wednesday's closing bell reported quarterly losses of $280.4 million and $65.7 million, respectively. "The home-building operating environment significantly worsened during the third quarter of 2008," said Pulte Chief Executive Richard Dugas. Pulte shares were off 25% in afternoon trade Thursday. An exchange-traded fund tracking home-builder stocks, iShares DJ U.S. Home Construction (ITB: news, chart, profile) , was down 14% at last check.
Renault cuts operating margin view for 2008(12:06 pm ET)
LONDON (MarketWatch) -- Renault (FR:013190: news, chart, profile) , in a statement after the close of trading in Paris, became the latest automaker to warn of deteriorating sales, noting that the European car market could fall 8% in 2008 and that some emerging markets are showing signs of slowing growth. It expects its own volumes to slightly exceed 2007 levels and for operating margins to range between 2.5% and 3%. Renault previously forecast margins of 4.% this year. It said it's going to assess the consequences of the deterioration in market conditions as it issues its 2009 outlook. Third-quarter revenue fell 2.2% to 9.15 billion euros.
Diamond Offshore dividend boost draws praise(10:04 am ET)
NEW YORK (MarketWatch) -- Diamond Offshore (DO: news, chart, profile) on Thursday increased its special dividend to $1.88 a share for the third quarter from $1.25 a share for the past four quarters. Analysts at Macquarie Research Equities (USA) said combined with the regular quarterly dividend of 12.5 cents a share, the payments equate and annualized yield of 12.42%. Both dividends are payable to shareholders of record on Nov. 3. "We believe this will be viewed as a substantial positive given the uncertainty in the overall market and the massive sell-off in the stock this year (down 54%), which is in line with the sector average of down 55% for the (sector)," analysts said in a note to clients. Diamond Offshore shares jumped 6.6% to $68.91 in recent action.
ProLogis posts profit decline, cuts full-year view(9:57 am ET)
NEW YORK (MarketWatch) -- ProLogis (PLD: news, chart, profile) on Thursday said funds from operations, a key profitability measure for real estate investment trusts, in the third quarter fell to 63 cents a share from $1.41 in the year-ago period. The company lowered its full-year FFO outlook to a range of $3.60 to $3.70 a share, citing credit-market and general economic turmoil.
Amazon losses highlight tech trading action(9:38 am ET)
SAN FRANCISCO (MarketWatch) -- Technology stocks put in a mixed performance in early trading Thursday, with online retalier Amazon.com Inc. (AMZN: news, chart, profile) in the spotlight. Amazon's shares fell $4.28, or 8.5%, to $45.71 after the company gave a disappointing outlook for its fiscal fourth quarter late Wednesday. Gains came from Apple Inc. (AAPL: news, chart, profile) , IBM Corp. (IBM: news, chart, profile) and Microsoft Corp. (MSFT: news, chart, profile) and the tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) rose 12 points to 1,628.
Energy stocks regain their footing(9:37 am ET)
NEW YORK (MarketWatch) -- Energy stocks rose in early action on Thursday as oil and gas shares regained their footing from big losses in the previous session. The Amex Natural Gas Index (XNG: news, chart, profile) rose 3.3% to 388. The Amex Oil Index (XOI: news, chart, profile) rose 2.4% to 833. National Oilwell Varco (NOV: news, chart, profile) jumped nearly 8% to $26.38 a day after giving up about 20% of their value. Diamond Offshore (DO: news, chart, profile) rose 7% to $69. Exxon Mobil (XOM: news, chart, profile) rose 2.6% to $66.23.
Franklin Resources' net falls 30%(9:10 am ET)
BOSTON (MarketWatch) -- Investment manager Franklin Resources Inc. (BEN: news, chart, profile) on Thursday said its fiscal fourth-quarter net income dropped 30% from the year-ago period to $305.1 million, or $1.30 a share. The San Mateo, Calif.-based company said quarterly revenue fell 19% to $1.32 billion. Wall Street analysts had forecast, on average, net income of $1.46 a share on revenue of $1.38 billion.
India's Reliance posts 7.4% profit jump(8:56 am ET)
NEW YORK (MarketWatch) -- India's largest private company, Reliance Industries Ltd. (RELLF: news, chart, profile) , said Thursday its second-quarter profit rose 7.4% to 41.22 billion rupees ($822 million) from 38.37 billion in the year ago quarter. The results beat analysts' forecast for a 39 billion rupee profit, according to reports from Reuters and Agence France-Presse. Reuters attributed the energy giant's gains to stronger-than-expected refining margins: $13.40 a barrel compared to the benchmark Asian Dubai crack margin of about $5.80 a barrel during the period. Revenue at company was 447.9 billion rupees, up from 320.4 billion rupees a year earlier.
Ensco earnings higher in quarter(8:48 am ET)
NEW YORK (MarketWatch) -- Ensco International Inc. (ESV: news, chart, profile) said Thursday that third-quarter earnings rose to $282 million, or $1.99 a share, compared to $267 million, or $1.82 a share, in the year-ago period. Revenue was steady at $636 million. Results include the loss of a jack-up rig in the Gulf of Mexico in the aftermath of Hurricane Ike and resulted in a loss from discontinued operations of 13 cents a share. Analysts polled by FactSet Research estimated, on average, earnings per share of $2.11 on sales of $648 million.
New York Times posts decline in third-quarter profit(8:39 am ET)
CHICAGO (MarketWatch) -- New York Times Co. (NYT: news, chart, profile) said Thursday that third-quarter net income fell to $6.53 million, or 5 cents a share, compared with a profit of $13.4 million, or 9 cents a share, in the same quarter a year ago. Including $10.3 million, or 7 cents a share, in severance costs related to the shutdown of a New York area newsstand distribution subsidiary, New York Times announced a preliminary third-quarter loss from continuing operations of 1 cent per share for the quarter ended Sept. 30. Excluding the severance costs, the company would have earned 6 cents a share. Revenue fell 9% to $687 million. On average, analysts surveyed by Thomson Reuters had been looking for New York Times Co. to report a profit of 4 cents a share on revenue of $691.7 million.
Cooper Industries net rises 20%, cutting 1,000 jobs(8:28 am ET)
NEW YORK (MarketWatch) -- Cooper Industries (CBE: news, chart, profile) on Thursday said third-quarter net income rose 20% to $205.8 million, or $1.17 a share, from $171.9 million, or 93 cents a share in the year-ago period. Earnings from continuing operations increased to $1.08 a share from 93 cents a share. Adjusted earnings were 97 cents a share. Revenue rose 15% to $1.73 billion. Cooper Industries was expected to earn 95 cents a share on revenue of $1.7 billion, according to a survey by FactSet Research. Looking ahead, the Houston-based electrical products manufacturer said it'll cut 1,000 jobs and take a charge of $22 million in severance expenses in the fourth quarter. Excluding the charge, it expects fourth-quarter earnings of 83-92 cents a share, compared to the target of 93 cents a share.
Union Pacific earnings per share up 38% in quarter(8:21 am ET)
NEW YORK (MarketWatch) -- Union Pacific Corp. (UNP: news, chart, profile) said Thursday that third-quarter earnings rose to $703 million, or $1.38 a share, compared to $532 million, or $1.00 a share, in the year-ago period. Revenue rose to $4.84 billion compared to $4.19 billion. Operating income climbed 21% to $1.2 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of $1.30 and sales of $4.84 billion. "UP expects to produce strong year-over-year earnings growth in the fourth quarter despite the continuing effect of the economic slowdown on our business," Chief Executive Jim Young said.
Level 3 narrows loss in third quarter(8:16 am ET)
NEW YORK (MarketWatch) -- Level 3 Communications Inc. (LVLT: news, chart, profile) said Thursday its third-quarter loss totaled $120 million, or 8 cents a share, from a loss of $174 million, or 11 cents a share, in the same quarter a year before. Analysts had expected a loss on average of 8 cents a share, according to a FactSet Research survey. Revenue for the quarter shrank to $1.07 billion compared to $1.09 billion in the year-ago period. It said it expects 2008 pre-tax earnings, excluding one-time items, to fall between $980 million and $1.0 billion, narrowed from the previous forecast of $950 million to $1.1 billion.
National Oilwell Varco net up 50%, beats target(8:14 am ET)
NEW YORK (MarketWatch) -- National Oilwell Varco (NOV: news, chart, profile) said Thursday third-quarter net income rose by about 50% to $547.7 million, or $1.31 a share, from $366 million, or $1.02 a share as the oil services giant's business grew from the acquisition of Grant Prideco, which closed in April. Excluding 9 cents a share from the impact of Hurricane Ike and other items, adjusted earnings in the latest period were $1.44 a share. Sales rose to $3.6 billion from $2.58 billion. Analysts expected earnings of $1.31 a share and revenue of $3.6 billion, on average. "While the worldwide financial problems and credit disruptions indicate some near term uncertainty in our industry, our significant capital backlog, our market leading products and services and our exceptionally strong balance sheet position our company well to withstand near term weakness and prepare for the inevitable improvement in demand," the company said.
Janus third quarter earnings nearly halved(8:15 am ET)
NEW YORK (MarketWatch) -- Janus Capital (JNS: news, chart, profile) said Thursday that its third quarter net income fell by almost half, to $26 million, or 16 cents a share, from $50.8 million, or 29 cents a share a year ago. Revenues fell to $275.4 million, from $284.6 million. Analysts polled by Thomson Reuters had expected the company to earn 24 cents a share in the period. Assets under management fell to $150.50 billion, from $208 billion. The company also said it will cut about 9% of its staff and it expects to take a $7 million severance charge in the fourth quarter.
UPS profit slips, cautious on year(8:00 am ET)
NEW YORK (MarketWatch) -- UPS (UPS: news, chart, profile) on Thursday said its third-quarter net income fell to $970 million, or 96 cents a share, from $1.08 billion, or $1.02 a share, from the year-ago period. On an adjusted basis, which excludes the impact of the supply chain & freight segment restructuring charge, it earned $1.05 a share. Revenue rose to $13.11 billion from $12.21 billion. Analysts, on average, expected it to earn 89 cents a share on revenue of $13 billion, according to FactSet Research. "Based on economic forecasts, we anticipate a challenging environment for a number of quarters going forward," Chief Financial Officer Kurt Kuehn said in a statement. "We believe the U.S. consumer will be very conservative with spending this year." The company said it still expects 2008 earnings per share should be toward the lower end of the $3.50 to $3.70 a share range that it provided mid-year. Analysts polled by FactSet were expecting a profit for the year of $3.57 a share.
Black & Decker's third-quarter profit declines(7:58 am ET)
NEW YORK (MarketWatch) -- Black & Decker Corp. (BDK: news, chart, profile) said Thursday that its third-quarter earnings fell to $85.8 million, or $1.42 a share, from $104.6 million, or $1.59 a share, in the year-earlier period. The Towson, Md., toolmaker said revenue fell to $1.57 billion from $1.63 billion. Black & Decker said it expects to earn 70 cents to 90 cents a share in the fourth quarter and $5.20 to $5.40 a share for the full year, excluding restructuring charges.
Update: L-3 3rd-quarter net up 6.5%; '08 outlook lifted(7:55 am ET)
TEL AVIV (MarketWatch) -- L-3 Communications, (LLL: news, chart, profile) the New York aerospace and defense company, reported third-quarter net income rose 6.5% on 6.2% higher revenue and increased its earnings estimate for the year. Earnings reached $212 million, or $1.73 a share, from $199 million, or $1.56, in the year-earlier period. Shares outstanding fell 3.4% to 122.6 million. Revenue rose to $3.66 billion from $3.45 billion. A survey of analysts by FactSet Research produced consensus estimates of $1.71 of profit on $3.7 billion of revenue. For the year, L-3 now expects to earn at least $7.47 a share, or at least an adjusted $6.75. It had projected an adjusted $6.71 to $6.75. It maintained its sales estimate at $14.7 billion. (Adds outlook.)
R.H. Donnelley quarterly profit rises, sales drop(7:54 am ET)
NEW YORK (MarketWatch) -- R.H. Donnelley Corp. (RHD: news, chart, profile) said Thursday its third-quarter profit totaled $26.1 million, or 38 cents a share, from $18.1 million, or 25 cents a share, in the same quarter a year before. The results were well above analysts' expectations of a loss on average of 12 cents a share, according to a FactSet Research survey. Revenue for the quarter was $648 million compared to $671 million in the year-ago period. For the full year, the advertising company said its expects revenue of $2.6 billion.
Southern earnings per share inch higher in quarter(7:50 am ET)
NEW YORK (MarketWatch) -- Southern Co. (SO: news, chart, profile) said Thursday that third-quarter earnings rose to $780 million, or $1.01 a share, compared to $762 million, or $1.00 a share, a year ago. Revenue for the third quarter was $5.43 billion compared with $4.83 billion in the third quarter of 2007, a 12.3% increase. Analysts polled by FactSet Research estimated, on average, earnings per share of $1.02 and sales of $5.43 billion.