AI
Wednesday, Nov. 5
Icahn Enterprises quarterly profit falls to 32 cents a unit (5:52 pm ET)
SAN FRANCISCO (MarketWatch) -- Icahn Enterprises LP (IEP: news, chart, profile) late Wednesday reported its third-quarter net income fell to $23.3 million, 32 cents a unit, from $23.9 million, or 52 cents a unit, in the same quarter last year. Income from continuing operations totaled $24.7 in the third quarter, up from $6.8 million a year earlier while loss from discontinued operations was $1.4 million, compared to income of $17.2 million a year ago. Revenue increased to $1.8 billion from $414.5 million in the same period in 2007, the New York limited partnership said.
McDermott profit falls on weaker offshore sector results (5:21 pm ET)
SAN FRANCISCO (MarketWatch) -- Engineering and construction company McDermott International (MDR: news, chart, profile) reported late Wednesday third-quarter net income fell to $85.6 million, or 37 cents a share, from $140.4 million, or 61 cents, a year ago. The company blamed the decline on weaker results for its offshore oil and gas construction business, especially in the Middle East. Revenue for the quarter rose 26% to $1.32 billion. Analysts polled by FactSet Research had predicted the Houston-based company would post earnings of 71 cents a share on $1.88 billion in revenue. McDermott shares closed ahead of the report with a 10% loss at $15.56.
Sunoco profit soars on improved refining margins (5:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Independent oil refiner Sunoco Inc. (SUN: news, chart, profile) , citing strengthening refining margins amid falling crude prices, reported late Wednesday third-quarter net income rose to $549 million, or $4.70 a share, from $216 million, or $1.81 a share, in the year-ago period. Revenue for the three months ended Sept. 30 rose to $16.1 billion from $11.5 billion. Analysts surveyed by FactSet Research predicted the Philadelphia-based company would hand in earnings of $2.10 a share. Sunoco shares fell 1% ahead of the report to close at $30.59.
Whole Foods profit tumbles, sales pressured(4:47 pm ET)
SAN FRANCISCO (MarketWatch) -- Whole Foods Market Inc. (WFMI: news, chart, profile) late Wednesday reported its quarterly profit tumbled from a year ago, hurt by acquisition charges and store lease terminations. Separately, the organic grocery chain said it raised $425 million through a sale of preferred stock to an affiliate of Leonard Green & Partners, L.P. Whole Foods said it earned $1.5 million, or 1 cent a share, for the quarter ended Sept. 28. A year-earlier, it made $34 million, or 24 cents a share. Sales rose 13% to $1.8 billion. Whole Foods said its identical-store sales -- a key barometer of its health -- worsened throughout October as consumer spending has faltered. Sales decreased 3.3% versus a 6.7% increase in the prior year.
Conseco third-quarter loss widens to 98 cents a share(4:41 pm ET)
SAN FRANCISCO (MarketWatch) -- Conseco Inc. (CNO: news, chart, profile) said late Wednesday third-quarter net loss applicable to common stock widened to $182 million, or 98 cents a share, compared to a loss of $52.7 million, or 28 cents a share, in the same quarter a year ago. Net operating income totaled $58.9 million, or 32 cents a share, recovering from a loss of $21.7 million, or 12 cents a share, in the third quarter 2007.
Synchronoss third-quarter profit falls to 7 cents a share(4:31 pm ET)
SAN FRANCISCO (MarketWatch) -- Synchronoss Technologies Inc. (SNCR: news, chart, profile) late Wednesday reported its third-quarter net income fell to $2.3 million, or 7 cents a share, from $8 million, or 24 cents a share, in the same period a year ago. Excluding one-time items, Synchronoss would have earned 11 cents a share. Revenue decreased to $26.3 million from $34.5 million in the third quarter of 2007, said the communications software maker. Analysts surveyed by FactSet Research had forecast earnings of 11 cents a share on revenue of $26.8 million. The company is best-known for providing technology that allows Apple's (AAPL: news, chart, profile) iPhone to connect to AT&T's (T: news, chart, profile) wireless network.
THQ posts widened second-quarter loss(4:27 pm ET)
SAN FRANCISCO (MarketWatch) -- Interactive entertainment software maker THQ Inc. (THQI: news, chart, profile) said Wednesday its fiscal second-quarter net loss widened to $115.3 million, or $1.73 a share, from $7 million, or 11 cents a share in the same period a year earlier. Net sales for the quarter ended in September fell to $164.8 million from $229.3 million, THQ said. Agoura Hills, Calif.-based THQ said the results included a non-cash charge of $1.21 a share related to "a valuation allowance and the related tax effects for its deferred tax assets."
News Corp. profit declines 30% on investment loss(4:27 pm ET)
CHICAGO (MarketWatch) - News Corp. (NWS.A: news, chart, profile) (NWS: news, chart, profile) said Wednesday that its fiscal first-quarter profit fell 30% on losses related to its investment in a German pay-TV operator and comparisons with year-earlier results that included contributions from DirecTV and Gemstar-TV Guide. The media conglomerate said it earned $515 million, or 20 cents a share, compared with a profit of $732 million, or 23 cents a share, in the first fiscal quarter of 2008. Revenue rose 6.3% to $7.51 billion. On average, analysts polled by FactSet Research expected News Corp. to report a profit of 23 cents a share on sales of $7.66 billion. News Corp. is the parent company of Dow Jones & Co., which includes The Wall Street Journal, Dow Jones Newswires, Barron's, Factiva and MarketWatch, the publisher of this report.
Activision swings to net loss for third quarter on charges(4:15 pm ET)
SAN FRANCISCO (MarketWatch) -- Activision Blizzard Inc. swung to a net loss for the third quarter on large charges related to its merger with Vivendi's video-game unit. For the quarter ended Sept. 30, Activision (ATVI: news, chart, profile) reported a net loss of $108 million, or 8 cents a share. Excluding charges related to its merger with Vivendi's Blizzard unit, as well as items related to stock-options expenses, the company said it would have earned 7 cents a share for the period. Revenue came in at $711 million. Analysts were expecting earnings of 4 cents a share on revenue of $632.1, according to consensus estimates from Thomson Reuters. Activision compared the recent period's results with the stand-alone results for Blizzard at the same time last year. In that period, Blizzard earned $48 million, or 8 cents a share, on revenue of $326 million. Activision's stand-alone business earned $698,000, or break-even on a per-share basis, on revenue of $317.7 million in the same period last year.
Energy stocks move more deeply into the red(3:59 pm ET)
NEW YORK (MarketWatch) -- The Amex Oil Index (XOI: news, chart, profile) fell 4.5% to 955, keeping pace with a 400-point drop in the Dow Jones Industrial Average ($DJ: news, chart, profile) . The index of major oil producers gave back about half of its 10% gain in the previous session. The gauge traded close to the flat line earlier in the day, but moved more deeply into the red later in the session. The Philadelphia Oil Service Index ($OSX: news, chart, profile) retreated nearly 6% to 153. The Amex Natural Gas Index (XNG: news, chart, profile) skidded 2.6% to 438.
Chesapeake rises on speculation about buyout(1:55 pm ET)
NEW YORK (MarketWatch) -- Chesapeake Energy Corp. (CHK: news, chart, profile) rose 12.5% to $25.79 despite weakness in the energy sector on Wednesday, amid reports that it could be a takeover target. There's talk about the possibility of a buyout by London-based BP (BP: news, chart, profile) , according to published reports. The Wall Street Journal reported Oct. 16 that BP was exploring an acquisition of natural gas properties owned by Chesapeake, which has formally announced plans to raise cash by selling assets.
Time Warner: Unclear what impact economy will have on DVDs(11:47 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Executive Jeff Bewkes told analysts Wednesday that "nobody really knows" what impact the economic meltdown will have on DVD sales in the coming months. "Christmas is going to be very important to the extent people buy fewer players, and if they don't buy quite as many catalog titles ... that could cause some reduction." Catalog titles are older movies and TV shows. Bewkes added that Blu-ray players under $200 could be coming into the market, which could have a salutary effect on disc sales. Whatever adverse effect the economy has, Time Warner's home entertainment division should be poised to outperform others in the industry, Bewkes said.
Time Warner CEO: Still looking at potential AOL deals(11:28 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Executive Jeff Bewkes declined comment on any specific talks regarding the company's AOL business, but reiterated that "if there was a strategic opportunity to put AOL in a stronger position, we would look at it closely." Speaking to analysts on a conference call, Bewkes said AOL and other major companies with significant Web presences are looking for ways to increase their share of online advertising dollars, including Microsoft (MSFT: news, chart, profile) , Yahoo (YHOO: news, chart, profile) and Google (GOOG: news, chart, profile) .
Time Warner CFO: Time Inc. ad sales down from third quarter(11:19 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Financial Officer John Martin said advertising sales at the magazines of Time Inc. so far in the fourth quarter are on a pace to be exceed the 8% revenue decline seen in the third quarter, due to the financial meltdown. Particularly weak are the categories of media, movies, full retail, toiletries and cosmetics. "Readership remains strong, however, and Time Inc. continues to outpace the industry," Martin added. The company has announced job cuts representing 6% of Time Inc.'s workforce, which it expects to contribute at least $150 million to its profit beginning in 2009.
Time Warner CFO: 'Cautiously optimistic' on Turner ad growth(11:07 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Financial Officer John Martin told analysts Wednesday that the company is "cautiously optimistic" that advertising sales at its Turner cable networks, including CNN, CNN Headline News, TNT, TBS Superstation and Cartoon Network, can remain strong despite the current economic environment. In the third quarter, ad revenue at the networks rose 9%. "We can't fully gauge the impact of recent events in the financial markets on the broader economy, and Turner would not likely be immune to any widespread, protracted ad slowdown," Martin said during a conference call. Some ad categories such as automotive and financial services will be "challenged," Martin added, but ad rates are "modestly" ahead of prices charged during this summer's "upfront" sales of commercial time for the fall season. The number of advertisers who have canceled ad buy commitments made during the upfront remain at "normal levels," he said.
Clean Energy Fuels falls after Prop 10 failure in California(10:34 am ET)
NEW YORK (MarketWatch) -- Clean Energy Fuels Inc. (CLNE: news, chart, profile) fell 13% to $7.87 on Wednesday, the first trading day after California voters struck down Proposition 10, which would have paid rebates for fuel-efficient cars and cars that run on natural gas. The natural gas filling station firm, which was founded by billionaire T. Boone Pickens, paid for nearly all of Prop. 10's $22.5 million campaign fund. Environmental groups, the California Chamber of Commerce, and the head of the California Air Resources Board opposed Proposition 10 and called for more effective and cheaper ways to cut greenhouse-gas emissions. Chesapeake Energy (CHK: news, chart, profile) also and its founder Aubrey McClendon donated $3.5 million to campaign for Proposition 10.
Energy stocks give back gains(9:47 am ET)
NEW YORK (MarketWatch) -- The Amex Oil Index (XOI: news, chart, profile) fell 3.4% to 965. The Amex Natural Gas Index (XNG: news, chart, profile) fell 3.8% to 432. Energy stocks gave back gains from the previous session, but held onto most of the rise from Tuesday. The latest weekly inventory data looms on the radar screen later in the session.
Time Warner Cable CEO: Economy impacting subscriptions(9:14 am ET)
CHICAGO (MarketWatch) -- Time Warner Cable Inc. (TWC: news, chart, profile) Chief Executive Glenn Britt told analysts Wednesday that the economic meltdown has had some impact on the second-largest U.S. cable provider in the latter half of this year. Speaking on a conference call, Britt noted that as the company moved into the fourth quarter, it "saw a significant slowdown in subscriber growth compared to last year, particularly for our video and voice services." Time Warner Cable has also seen diminished demand for certain premium video services, including pay-per-view and digital video recorders. The company reaffirmed its earnings per share target for 2008, but cut its revenue and operating income before depreciation and amortization forecasts.
Molson Coors posts rise in third-quarter profit(8:58 am ET)
NEW YORK (MarketWatch) -- Molson Coors Brewing Co. (TAP: news, chart, profile) said Wednesday that its third-quarter profit rose to $170 million, or 92 cents a share, from $135 million, or 74 cents a share, in the same quarter a year earlier. On an adjusted basis, earnings were flat at 95 cents a share. Analysts had expected earnings, on average, of 96 cents a share, according to a FactSet Research survey.
XTO Energy earnings per share up 12% in quarter(8:56 am ET)
NEW YORK (MarketWatch) -- XTO Energy Inc. (XTO: news, chart, profile) said Wednesday that third-quarter earnings rose to $521 million, or 94 cents a share, compared to $412 million, or 84 cents a share, in the same period a year ago. Adjusted earnings were 99 cents a share. Revenue was $2.13 billion compared $1.42 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of $1.03 and sales of $2.08 billion. Cash flow for 2009 is targeted to grow by more than 25%.
UPDATE: Cognizant posts increase in third-quarter profit(8:50 am ET)
NEW YORK (MarketWatch) -- Cognizant Technology Solutions Corp. (CTSH: news, chart, profile) said Wednesday that its third-quarter profit rose to $112.8 million, or 38 cents a share, from $96.2 million, or 32 cents a share, in the year-earlier period. Adjusted to exclude items, earnings were 40 cents a share. On average, analysts polled by FactSet Research were expecting a profit of 37 cents a share. Revenue for the quarter totaled $735 million compared to $559 million. The Teaneck, N.J., provider of information technology, consulting and business process outsourcing services said that it expects 2008 profit of at least $1.45 a share, and $1.61 a share on an adjusted basis, on revenue of at least $2.81 billion. (Updates to include more information about the company's business.)
GMAC Financial Services posts $2.5 billion loss(8:19 am ET)
NEW YORK (MarketWatch) -- GMAC Financial Services said Wednesday its third-quarter net loss widened to $2.5 billion from $1.6 billion, as the lending arm of General Motors (GM: news, chart, profile) now 51% owned by a Ceberus Capital Management consortium felt the impact of the credit crises on both its residential and automotive businesses. "Adverse market conditions domestically and internationally continued to affect the mortgage business," GMAC said. "GMAC's automotive finance operation also experienced pressure from lower used vehicle prices and weaker consumer and dealer credit performance." GMAC said it plans to tap into the Federal Reserve's commercial paper purchase program and engaging in talks with regulators about bank holding company status.
CenterPoint Energy posts higher profit, hikes full-year view(8:17 am ET)
NEW YORK (MarketWatch) -- CenterPoint Energy Inc. (CNP: news, chart, profile) said Wednesday that its third-quarter profit rose to $136 million, or 39 cents a share, from $91 million, or 27 cents a share, in the year-earlier period. Total revenue rose to $2.52 billion from $1.88 billion. CenterPoint Energy said it expects full-year earnings in the range of $1.25 to $1.35 a share, up from its prior view of reaching the upper half of a $1.15-to-$1.25 range.
Transocean net income rises by 13%, beating target(7:52 am ET)
NEW YORK (MarketWatch) -- Transocean Inc. (RIG: news, chart, profile) said Wednesday third-quarter net income rose to $1.1 billion, or $3.44 a share, from $973 million, or $4.63 a share in the year-ago period. The Houston-based offshore drilling giant said revenue increased to $3.19 billion from $1.54 billion as it absorbed its acquisition of GlobalSantaFe. Wall Street analysts forecast earnings of $3.27 a share on revenue of $3.05 billion, according to a survey by FactSet Research.
IAC swings to third-quarter loss of 11 cents a share(7:53 am ET)
NEW YORK (MarketWatch) -- IAC (IACI: news, chart, profile) said Tuesday that it lost $15 million, or 11 cents a share in the third quarter. In the same period a year ago IAC earned $71 million, or 47 cents a share. Revenue rose to $369 million from $335 million. "This is the last quarter when the costs of our spinoffs will distort the operating performance of the company," said IAC's Chairman and Chief Executive Barry Diller. The operating loss was driven by spinoff expensed and a $16 million charge related to spinoffs.
CMS Energy's adjusted third-quarter profit rises(7:50 am ET)
NEW YORK (MarketWatch) -- CMS Energy (CMS: news, chart, profile) on Wednesday said third-quarter net income available to common stockholders fell to $79 million from $82 million in the year-ago period. On a per-share basis, earnings were flat at 34 cents. Adjusted net income at the Jackson, Mich., electric and natural-gas utility increased to 33 cents a share from 13 cents a share. Operating revenue rose to $1.43 billion from $1.28 billion. Wall Street analysts expected CMS Energy to earn 26 cents a share, according to a survey by FactSet Research.
Hospira's profit and sales rise, backs profit view for year(7:49 am ET)
NEW YORK (MarketWatch) -- Hospira Inc. (HSP: news, chart, profile) on Wednesday said its third-quarter net income rose to $81.8 million, or 51 cents a share, from $59.4 million, or 37 cents a share, in the year-ago period. On an adjusted basis, which excludes some items, the company earned 63 cents a share. Net sales rose to $925.5 million from $838 million. Analysts, on average, had expected it to earn 63 cents a share on sales of $900.3 million, according to FactSet Research. The specialty pharmaceutical and medication delivery company expects net sales for the year to rise in a range of 6% to 7%, excluding the impact of constant currency. Adjusted earnings per share are still pegged for between $2.50 and $2.55 a share, Hospira said.
Kimco Realty profit rises 29%, cuts earnings guidance(7:30 am ET)
LONDON (MarketWatch) -- Real estate investment trust Kimco Realty (KIM: news, chart, profile) said Wednesday that its third-quarter net profit rose 29% to $96.8 million, or 37 cents a share, from $75.1 million, or 29 cents a share a year earlier as it also cut guidance for 2008. The increased profit was due to a $9 million increase in operating income as well as $22 million from its investment in Alberstons and a gain on sales of $8 million, among other factors. Analysts polled by FactSet were expecting earnings of 40 cents a share. Funds from operations, a commonly used measure of performance for REITs, rose to $176.9 million, or 68 cents a share, from $146.6 million, or 57 cents a share, a year earlier. Kimco said it now expects funds from operations for the year to be in the range of $2.20 to $2.45 a share due to the dislocation in credit markets and added there is a potential for reserves against certain security investments if markets do not recover in a reasonable period of time.
Sara Lee earnings per share inch higher(7:25 am ET)
NEW YORK (MarketWatch) -- Sara Lee Corp. (SLE: news, chart, profile) said Wednesday that first-quarter earnings were $353 million, or 32 cents a share, compared to $293 million, or 28 cents a share, in the same period a year ago. Sales for the period ending Sept. 27, were $3.3 billion, a 9.6% increase. Analysts polled by FactSet Research estimated, on average, earnings per share of 23 cents and sales of $3.33 billion. Sara Lee sees 2009 earnings per share of 99 cents to $1.06 per share, which includes 21 cents from sales of a previously sold tobacco business.
Duke Energy net income falls 65%(7:18 am ET)
NEW YORK (MarketWatch) -- Duke Energy Corp. (DUK: news, chart, profile) on Wednesday said mild summer weather and storm-related outages in the Midwest took a bite out of its third-quarter earnings. The Charlotte, N.C. electric power giant said net income for the three months ended Sept. 30 fell 65% to $215 million, or 17 cents a share, from $607 million, or 48 cents a share in the year-ago period. Adjusted earnings fell to 33 cents a share from 45 cents a share. Revenue dipped to $3.51 billion from $3.69 billion. Analysts expected earnings of 45 cents a share on revenue of $3.94 billion, on average. "Despite a recessionary economy and tight credit markets, our energy businesses remain solid and our liquidity position is excellent," the company said.
Icahn Enterprises quarterly profit falls to 32 cents a unit (5:52 pm ET)
SAN FRANCISCO (MarketWatch) -- Icahn Enterprises LP (IEP: news, chart, profile) late Wednesday reported its third-quarter net income fell to $23.3 million, 32 cents a unit, from $23.9 million, or 52 cents a unit, in the same quarter last year. Income from continuing operations totaled $24.7 in the third quarter, up from $6.8 million a year earlier while loss from discontinued operations was $1.4 million, compared to income of $17.2 million a year ago. Revenue increased to $1.8 billion from $414.5 million in the same period in 2007, the New York limited partnership said.
McDermott profit falls on weaker offshore sector results (5:21 pm ET)
SAN FRANCISCO (MarketWatch) -- Engineering and construction company McDermott International (MDR: news, chart, profile) reported late Wednesday third-quarter net income fell to $85.6 million, or 37 cents a share, from $140.4 million, or 61 cents, a year ago. The company blamed the decline on weaker results for its offshore oil and gas construction business, especially in the Middle East. Revenue for the quarter rose 26% to $1.32 billion. Analysts polled by FactSet Research had predicted the Houston-based company would post earnings of 71 cents a share on $1.88 billion in revenue. McDermott shares closed ahead of the report with a 10% loss at $15.56.
Sunoco profit soars on improved refining margins (5:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Independent oil refiner Sunoco Inc. (SUN: news, chart, profile) , citing strengthening refining margins amid falling crude prices, reported late Wednesday third-quarter net income rose to $549 million, or $4.70 a share, from $216 million, or $1.81 a share, in the year-ago period. Revenue for the three months ended Sept. 30 rose to $16.1 billion from $11.5 billion. Analysts surveyed by FactSet Research predicted the Philadelphia-based company would hand in earnings of $2.10 a share. Sunoco shares fell 1% ahead of the report to close at $30.59.
Whole Foods profit tumbles, sales pressured(4:47 pm ET)
SAN FRANCISCO (MarketWatch) -- Whole Foods Market Inc. (WFMI: news, chart, profile) late Wednesday reported its quarterly profit tumbled from a year ago, hurt by acquisition charges and store lease terminations. Separately, the organic grocery chain said it raised $425 million through a sale of preferred stock to an affiliate of Leonard Green & Partners, L.P. Whole Foods said it earned $1.5 million, or 1 cent a share, for the quarter ended Sept. 28. A year-earlier, it made $34 million, or 24 cents a share. Sales rose 13% to $1.8 billion. Whole Foods said its identical-store sales -- a key barometer of its health -- worsened throughout October as consumer spending has faltered. Sales decreased 3.3% versus a 6.7% increase in the prior year.
Conseco third-quarter loss widens to 98 cents a share(4:41 pm ET)
SAN FRANCISCO (MarketWatch) -- Conseco Inc. (CNO: news, chart, profile) said late Wednesday third-quarter net loss applicable to common stock widened to $182 million, or 98 cents a share, compared to a loss of $52.7 million, or 28 cents a share, in the same quarter a year ago. Net operating income totaled $58.9 million, or 32 cents a share, recovering from a loss of $21.7 million, or 12 cents a share, in the third quarter 2007.
Synchronoss third-quarter profit falls to 7 cents a share(4:31 pm ET)
SAN FRANCISCO (MarketWatch) -- Synchronoss Technologies Inc. (SNCR: news, chart, profile) late Wednesday reported its third-quarter net income fell to $2.3 million, or 7 cents a share, from $8 million, or 24 cents a share, in the same period a year ago. Excluding one-time items, Synchronoss would have earned 11 cents a share. Revenue decreased to $26.3 million from $34.5 million in the third quarter of 2007, said the communications software maker. Analysts surveyed by FactSet Research had forecast earnings of 11 cents a share on revenue of $26.8 million. The company is best-known for providing technology that allows Apple's (AAPL: news, chart, profile) iPhone to connect to AT&T's (T: news, chart, profile) wireless network.
THQ posts widened second-quarter loss(4:27 pm ET)
SAN FRANCISCO (MarketWatch) -- Interactive entertainment software maker THQ Inc. (THQI: news, chart, profile) said Wednesday its fiscal second-quarter net loss widened to $115.3 million, or $1.73 a share, from $7 million, or 11 cents a share in the same period a year earlier. Net sales for the quarter ended in September fell to $164.8 million from $229.3 million, THQ said. Agoura Hills, Calif.-based THQ said the results included a non-cash charge of $1.21 a share related to "a valuation allowance and the related tax effects for its deferred tax assets."
News Corp. profit declines 30% on investment loss(4:27 pm ET)
CHICAGO (MarketWatch) - News Corp. (NWS.A: news, chart, profile) (NWS: news, chart, profile) said Wednesday that its fiscal first-quarter profit fell 30% on losses related to its investment in a German pay-TV operator and comparisons with year-earlier results that included contributions from DirecTV and Gemstar-TV Guide. The media conglomerate said it earned $515 million, or 20 cents a share, compared with a profit of $732 million, or 23 cents a share, in the first fiscal quarter of 2008. Revenue rose 6.3% to $7.51 billion. On average, analysts polled by FactSet Research expected News Corp. to report a profit of 23 cents a share on sales of $7.66 billion. News Corp. is the parent company of Dow Jones & Co., which includes The Wall Street Journal, Dow Jones Newswires, Barron's, Factiva and MarketWatch, the publisher of this report.
Activision swings to net loss for third quarter on charges(4:15 pm ET)
SAN FRANCISCO (MarketWatch) -- Activision Blizzard Inc. swung to a net loss for the third quarter on large charges related to its merger with Vivendi's video-game unit. For the quarter ended Sept. 30, Activision (ATVI: news, chart, profile) reported a net loss of $108 million, or 8 cents a share. Excluding charges related to its merger with Vivendi's Blizzard unit, as well as items related to stock-options expenses, the company said it would have earned 7 cents a share for the period. Revenue came in at $711 million. Analysts were expecting earnings of 4 cents a share on revenue of $632.1, according to consensus estimates from Thomson Reuters. Activision compared the recent period's results with the stand-alone results for Blizzard at the same time last year. In that period, Blizzard earned $48 million, or 8 cents a share, on revenue of $326 million. Activision's stand-alone business earned $698,000, or break-even on a per-share basis, on revenue of $317.7 million in the same period last year.
Energy stocks move more deeply into the red(3:59 pm ET)
NEW YORK (MarketWatch) -- The Amex Oil Index (XOI: news, chart, profile) fell 4.5% to 955, keeping pace with a 400-point drop in the Dow Jones Industrial Average ($DJ: news, chart, profile) . The index of major oil producers gave back about half of its 10% gain in the previous session. The gauge traded close to the flat line earlier in the day, but moved more deeply into the red later in the session. The Philadelphia Oil Service Index ($OSX: news, chart, profile) retreated nearly 6% to 153. The Amex Natural Gas Index (XNG: news, chart, profile) skidded 2.6% to 438.
Chesapeake rises on speculation about buyout(1:55 pm ET)
NEW YORK (MarketWatch) -- Chesapeake Energy Corp. (CHK: news, chart, profile) rose 12.5% to $25.79 despite weakness in the energy sector on Wednesday, amid reports that it could be a takeover target. There's talk about the possibility of a buyout by London-based BP (BP: news, chart, profile) , according to published reports. The Wall Street Journal reported Oct. 16 that BP was exploring an acquisition of natural gas properties owned by Chesapeake, which has formally announced plans to raise cash by selling assets.
Time Warner: Unclear what impact economy will have on DVDs(11:47 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Executive Jeff Bewkes told analysts Wednesday that "nobody really knows" what impact the economic meltdown will have on DVD sales in the coming months. "Christmas is going to be very important to the extent people buy fewer players, and if they don't buy quite as many catalog titles ... that could cause some reduction." Catalog titles are older movies and TV shows. Bewkes added that Blu-ray players under $200 could be coming into the market, which could have a salutary effect on disc sales. Whatever adverse effect the economy has, Time Warner's home entertainment division should be poised to outperform others in the industry, Bewkes said.
Time Warner CEO: Still looking at potential AOL deals(11:28 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Executive Jeff Bewkes declined comment on any specific talks regarding the company's AOL business, but reiterated that "if there was a strategic opportunity to put AOL in a stronger position, we would look at it closely." Speaking to analysts on a conference call, Bewkes said AOL and other major companies with significant Web presences are looking for ways to increase their share of online advertising dollars, including Microsoft (MSFT: news, chart, profile) , Yahoo (YHOO: news, chart, profile) and Google (GOOG: news, chart, profile) .
Time Warner CFO: Time Inc. ad sales down from third quarter(11:19 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Financial Officer John Martin said advertising sales at the magazines of Time Inc. so far in the fourth quarter are on a pace to be exceed the 8% revenue decline seen in the third quarter, due to the financial meltdown. Particularly weak are the categories of media, movies, full retail, toiletries and cosmetics. "Readership remains strong, however, and Time Inc. continues to outpace the industry," Martin added. The company has announced job cuts representing 6% of Time Inc.'s workforce, which it expects to contribute at least $150 million to its profit beginning in 2009.
Time Warner CFO: 'Cautiously optimistic' on Turner ad growth(11:07 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Financial Officer John Martin told analysts Wednesday that the company is "cautiously optimistic" that advertising sales at its Turner cable networks, including CNN, CNN Headline News, TNT, TBS Superstation and Cartoon Network, can remain strong despite the current economic environment. In the third quarter, ad revenue at the networks rose 9%. "We can't fully gauge the impact of recent events in the financial markets on the broader economy, and Turner would not likely be immune to any widespread, protracted ad slowdown," Martin said during a conference call. Some ad categories such as automotive and financial services will be "challenged," Martin added, but ad rates are "modestly" ahead of prices charged during this summer's "upfront" sales of commercial time for the fall season. The number of advertisers who have canceled ad buy commitments made during the upfront remain at "normal levels," he said.
Clean Energy Fuels falls after Prop 10 failure in California(10:34 am ET)
NEW YORK (MarketWatch) -- Clean Energy Fuels Inc. (CLNE: news, chart, profile) fell 13% to $7.87 on Wednesday, the first trading day after California voters struck down Proposition 10, which would have paid rebates for fuel-efficient cars and cars that run on natural gas. The natural gas filling station firm, which was founded by billionaire T. Boone Pickens, paid for nearly all of Prop. 10's $22.5 million campaign fund. Environmental groups, the California Chamber of Commerce, and the head of the California Air Resources Board opposed Proposition 10 and called for more effective and cheaper ways to cut greenhouse-gas emissions. Chesapeake Energy (CHK: news, chart, profile) also and its founder Aubrey McClendon donated $3.5 million to campaign for Proposition 10.
Energy stocks give back gains(9:47 am ET)
NEW YORK (MarketWatch) -- The Amex Oil Index (XOI: news, chart, profile) fell 3.4% to 965. The Amex Natural Gas Index (XNG: news, chart, profile) fell 3.8% to 432. Energy stocks gave back gains from the previous session, but held onto most of the rise from Tuesday. The latest weekly inventory data looms on the radar screen later in the session.
Time Warner Cable CEO: Economy impacting subscriptions(9:14 am ET)
CHICAGO (MarketWatch) -- Time Warner Cable Inc. (TWC: news, chart, profile) Chief Executive Glenn Britt told analysts Wednesday that the economic meltdown has had some impact on the second-largest U.S. cable provider in the latter half of this year. Speaking on a conference call, Britt noted that as the company moved into the fourth quarter, it "saw a significant slowdown in subscriber growth compared to last year, particularly for our video and voice services." Time Warner Cable has also seen diminished demand for certain premium video services, including pay-per-view and digital video recorders. The company reaffirmed its earnings per share target for 2008, but cut its revenue and operating income before depreciation and amortization forecasts.
Molson Coors posts rise in third-quarter profit(8:58 am ET)
NEW YORK (MarketWatch) -- Molson Coors Brewing Co. (TAP: news, chart, profile) said Wednesday that its third-quarter profit rose to $170 million, or 92 cents a share, from $135 million, or 74 cents a share, in the same quarter a year earlier. On an adjusted basis, earnings were flat at 95 cents a share. Analysts had expected earnings, on average, of 96 cents a share, according to a FactSet Research survey.
XTO Energy earnings per share up 12% in quarter(8:56 am ET)
NEW YORK (MarketWatch) -- XTO Energy Inc. (XTO: news, chart, profile) said Wednesday that third-quarter earnings rose to $521 million, or 94 cents a share, compared to $412 million, or 84 cents a share, in the same period a year ago. Adjusted earnings were 99 cents a share. Revenue was $2.13 billion compared $1.42 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of $1.03 and sales of $2.08 billion. Cash flow for 2009 is targeted to grow by more than 25%.
UPDATE: Cognizant posts increase in third-quarter profit(8:50 am ET)
NEW YORK (MarketWatch) -- Cognizant Technology Solutions Corp. (CTSH: news, chart, profile) said Wednesday that its third-quarter profit rose to $112.8 million, or 38 cents a share, from $96.2 million, or 32 cents a share, in the year-earlier period. Adjusted to exclude items, earnings were 40 cents a share. On average, analysts polled by FactSet Research were expecting a profit of 37 cents a share. Revenue for the quarter totaled $735 million compared to $559 million. The Teaneck, N.J., provider of information technology, consulting and business process outsourcing services said that it expects 2008 profit of at least $1.45 a share, and $1.61 a share on an adjusted basis, on revenue of at least $2.81 billion. (Updates to include more information about the company's business.)
GMAC Financial Services posts $2.5 billion loss(8:19 am ET)
NEW YORK (MarketWatch) -- GMAC Financial Services said Wednesday its third-quarter net loss widened to $2.5 billion from $1.6 billion, as the lending arm of General Motors (GM: news, chart, profile) now 51% owned by a Ceberus Capital Management consortium felt the impact of the credit crises on both its residential and automotive businesses. "Adverse market conditions domestically and internationally continued to affect the mortgage business," GMAC said. "GMAC's automotive finance operation also experienced pressure from lower used vehicle prices and weaker consumer and dealer credit performance." GMAC said it plans to tap into the Federal Reserve's commercial paper purchase program and engaging in talks with regulators about bank holding company status.
CenterPoint Energy posts higher profit, hikes full-year view(8:17 am ET)
NEW YORK (MarketWatch) -- CenterPoint Energy Inc. (CNP: news, chart, profile) said Wednesday that its third-quarter profit rose to $136 million, or 39 cents a share, from $91 million, or 27 cents a share, in the year-earlier period. Total revenue rose to $2.52 billion from $1.88 billion. CenterPoint Energy said it expects full-year earnings in the range of $1.25 to $1.35 a share, up from its prior view of reaching the upper half of a $1.15-to-$1.25 range.
Transocean net income rises by 13%, beating target(7:52 am ET)
NEW YORK (MarketWatch) -- Transocean Inc. (RIG: news, chart, profile) said Wednesday third-quarter net income rose to $1.1 billion, or $3.44 a share, from $973 million, or $4.63 a share in the year-ago period. The Houston-based offshore drilling giant said revenue increased to $3.19 billion from $1.54 billion as it absorbed its acquisition of GlobalSantaFe. Wall Street analysts forecast earnings of $3.27 a share on revenue of $3.05 billion, according to a survey by FactSet Research.
IAC swings to third-quarter loss of 11 cents a share(7:53 am ET)
NEW YORK (MarketWatch) -- IAC (IACI: news, chart, profile) said Tuesday that it lost $15 million, or 11 cents a share in the third quarter. In the same period a year ago IAC earned $71 million, or 47 cents a share. Revenue rose to $369 million from $335 million. "This is the last quarter when the costs of our spinoffs will distort the operating performance of the company," said IAC's Chairman and Chief Executive Barry Diller. The operating loss was driven by spinoff expensed and a $16 million charge related to spinoffs.
CMS Energy's adjusted third-quarter profit rises(7:50 am ET)
NEW YORK (MarketWatch) -- CMS Energy (CMS: news, chart, profile) on Wednesday said third-quarter net income available to common stockholders fell to $79 million from $82 million in the year-ago period. On a per-share basis, earnings were flat at 34 cents. Adjusted net income at the Jackson, Mich., electric and natural-gas utility increased to 33 cents a share from 13 cents a share. Operating revenue rose to $1.43 billion from $1.28 billion. Wall Street analysts expected CMS Energy to earn 26 cents a share, according to a survey by FactSet Research.
Hospira's profit and sales rise, backs profit view for year(7:49 am ET)
NEW YORK (MarketWatch) -- Hospira Inc. (HSP: news, chart, profile) on Wednesday said its third-quarter net income rose to $81.8 million, or 51 cents a share, from $59.4 million, or 37 cents a share, in the year-ago period. On an adjusted basis, which excludes some items, the company earned 63 cents a share. Net sales rose to $925.5 million from $838 million. Analysts, on average, had expected it to earn 63 cents a share on sales of $900.3 million, according to FactSet Research. The specialty pharmaceutical and medication delivery company expects net sales for the year to rise in a range of 6% to 7%, excluding the impact of constant currency. Adjusted earnings per share are still pegged for between $2.50 and $2.55 a share, Hospira said.
Kimco Realty profit rises 29%, cuts earnings guidance(7:30 am ET)
LONDON (MarketWatch) -- Real estate investment trust Kimco Realty (KIM: news, chart, profile) said Wednesday that its third-quarter net profit rose 29% to $96.8 million, or 37 cents a share, from $75.1 million, or 29 cents a share a year earlier as it also cut guidance for 2008. The increased profit was due to a $9 million increase in operating income as well as $22 million from its investment in Alberstons and a gain on sales of $8 million, among other factors. Analysts polled by FactSet were expecting earnings of 40 cents a share. Funds from operations, a commonly used measure of performance for REITs, rose to $176.9 million, or 68 cents a share, from $146.6 million, or 57 cents a share, a year earlier. Kimco said it now expects funds from operations for the year to be in the range of $2.20 to $2.45 a share due to the dislocation in credit markets and added there is a potential for reserves against certain security investments if markets do not recover in a reasonable period of time.
Sara Lee earnings per share inch higher(7:25 am ET)
NEW YORK (MarketWatch) -- Sara Lee Corp. (SLE: news, chart, profile) said Wednesday that first-quarter earnings were $353 million, or 32 cents a share, compared to $293 million, or 28 cents a share, in the same period a year ago. Sales for the period ending Sept. 27, were $3.3 billion, a 9.6% increase. Analysts polled by FactSet Research estimated, on average, earnings per share of 23 cents and sales of $3.33 billion. Sara Lee sees 2009 earnings per share of 99 cents to $1.06 per share, which includes 21 cents from sales of a previously sold tobacco business.
Duke Energy net income falls 65%(7:18 am ET)
NEW YORK (MarketWatch) -- Duke Energy Corp. (DUK: news, chart, profile) on Wednesday said mild summer weather and storm-related outages in the Midwest took a bite out of its third-quarter earnings. The Charlotte, N.C. electric power giant said net income for the three months ended Sept. 30 fell 65% to $215 million, or 17 cents a share, from $607 million, or 48 cents a share in the year-ago period. Adjusted earnings fell to 33 cents a share from 45 cents a share. Revenue dipped to $3.51 billion from $3.69 billion. Analysts expected earnings of 45 cents a share on revenue of $3.94 billion, on average. "Despite a recessionary economy and tight credit markets, our energy businesses remain solid and our liquidity position is excellent," the company said.
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