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Thursday, Nov. 13
Kohl's posts lower profit, cuts outlook(4:09 pm ET)
SAN FRANCISCO (MarketWatch) -- Kohl's Corp. (KSS: news, chart, profile) on Thursday reported a third-quarter profit of $160.2 million, or 52 cents a share, down from $194 million, or 61 cents a share, a year ago. Sales fell less than 1% to $3.8 billion. Analysts polled by FactSet Research were looking for a profit of 52 cents a share on sales of $3.88 billion. Kohl's warned that it expects to post a profit of 90 cents to $1.05 a share in the fourth quarter, down from a prior range of $1.26 to $1.34 a share due to what the company described as "the most challenging" holiday season in years. Wall Street previously targeted earnings of $1.27 a share. Kohl's shares fell almost 3% in after-hours trading.
Platts analyst echoes prediction for OPEC production cut(2:22 pm ET)
NEW YORK (MarketWatch) -- Johh Kingston, director of oil for Platts, joined other industry observers Thursday in estimating that OPEC will cut production by an additional one million barrels a day at an emergency meeting later this month. The cut would come on top of a 1.5 million barrel trim just a few weeks ago. "It seems fairly certain they'll hold a meeting to discuss further cuts," he said on a conference call.
CORRECT: Maximus swings to 4th-quarter loss; adjusted net up(2:04 pm ET)
TEL AVIV (MarketWatch) -- Maximus (MMS: news, chart, profile) , the Reston, Va., provider of government services, swung to a fiscal fourth-quarter net loss from a year-earlier profit on 8.8% higher revenue. For the quarter ended Sept. 30, the loss was $1.8 million, or 9 cents a share, compared with net income of $14.2 million, or 63 cents, in the year-earlier period. Adjusted earnings from continuing operations were 71 cents in the latest period. Shares outstanding fell 17% to 18.7 million. Revenue reached $189.1 million from $173.7 million. For fiscal 2009, Maximus affirmed that it expects to earn $3 to $3.15 a share. It sees revenue of $750 million to $775 million. On average, analysts surveyed by FactSet Research expect the company to report fiscal 2009 earnings of $3.02 a share. (Corrects analysts' estimate for 2009 profit.)
Mizuho takes 71% hit to profit, will seek to raise new funds(7:59 am ET)
NEW YORK (MarketWatch) -- Mizuho Financial Group (MFG: news, chart, profile) said Thursday its first-half profit fell by 94.58 billion yen ($985 million), from 327.06 billion yen a year earlier. For the six months ended in September, the banking giant said it had suffered about 30 billion yen in losses related to the failure of Lehman Brothers. Following the earnings results, reports said the company planned to raise about 300 billion yen in fresh capital. The move, originally reported by the Nikkei business daily, would shore up Mizuho's balance sheet, hit by rising amounts of bad loans. Several reports said the funds would come from the sale of preferred securities to institutional investors in Japan. Bloomberg reported that the fundraising -- to take place as early as the end of this year -- wouldn't dilute common stock, while Agence France-Presse said the sale would be conducted through a Mizuho subsidiary in the Cayman Islands.
Dr Pepper Snapple earnings per share down 32%(7:22 am ET)
NEW YORK (MarketWatch) -- Dr Pepper Snapple Group Inc. (DPS: news, chart, profile) said Thursday that third-quarter earnings were $106 million, or 41 cents a share, compared to $154 million, or 61 cents a share, in the same period a year ago. Sales were $1.51 billion compared to $1.54 billion in last year's third quarter. Adjusted earnings per share were 45 cents compared to 63 cents. Analysts polled by FactSet Research estimated, on average, earnings per share of 51 cents and sales of $1.53 billion. For the full year of 2008 the company forecast earnings per share of $1.54 to $1.57. Shares fell 2% Wednesday to $20.91.
Average gasoline prices fall below $2.20 a gallon(7:08 am ET)
NEW YORK (MarketWatch) -- The average retail cost in the U.S. for a gallon of unleaded gasoline fell 2 cents to $2.18, according to the AAA Daily Fuel Gauge Report. A month ago, gasoline sold for $3.16 a gallon. A year ago, it sold for $3.11 a gallon. The highest recorded average price of $4.11 a gallon took place on July 17.
Urban Outfitters 3rd-quarter net rose 31%, sales rose 26%(6:18 am ET)
TEL AVIV (MarketWatch) -- Urban Outfitters Inc., (URBN: news, chart, profile) the Philadelphia apparel retailer, reported fiscal third-quarter earnings rose 31% on 26% higher total sales and 10% higher same-store sales. For the quarter ended Oct. 31, earnings reached $59.3 million, or 35 cents a share, from $45.4 million, or 27 cents, in the year-earlier period. Sales rose to $478 million from $379.3 million. The latest earnings met the average estimate of analysts surveyed by FactSet. In the quarter, gross-profit margin widened by 1.35 percentage points while selling, general and administrative expense fell 1.39 points, URBN said in a statement.
Wal-Mart net up better-than-forecast 10% but trims 2008 view(6:18 am ET)
LONDON (MarketWatch) -- Wal-Mart Stores (WMT: news, chart, profile) said its third-quarter to Oct. 31 net income rose 10% to $3.14 billion, or 80 cents a share, with revenue up 7% to $98.64 billion. From continuing operations, the Bentonville, Ark.-based retailing giant would have earned 77 cents a share, a penny above analyst estimates. "We are very pleased with our results this quarter," said Lee Scott, Wal-Mart Stores, Inc. president and chief executive officer. "Despite economic difficulties around the world, we achieved solid sales and earnings growth and we are optimistic about the upcoming holidays." It now sees earnings between $3.42 and $3.46 a share for the year, against a prior view of $3.43 to $3.50 and analyst expectations of $3.50.
Fortress Investment Group loss widens to $57 million(6:11 am ET)
LONDON (MarketWatch) -- Fortress Investment Group (FIG: news, chart, profile) , the private-equity and hedge fund manager, said its third-quarter loss widened to $57.4 million, or 66 cents a share, from $37.6 million, or 52 cents a share. After $185 million in redemptions and declining net asset value, its assets under management dropped to $34.3 billion from $35.1 billion in July. Fortress also was hurt by an $83 million loss from principal investments. Revenue dropped to $185 million from $247 million.
Charlotte Russe gets $198.3 mln bid from 2 firms(5:30 am ET)
TEL AVIV (MarketWatch) -- Two investment firms proposed to pay $9 to $9.50 a share cash for Charlotte Russe Holding Inc., (CHIC: news, chart, profile) the San Diego retailer of apparel and accessories for women in their teens and twenties. Charlotte Russe said in a statement late on Wednesday that the board would assess the proposal. The suitors, KarpReilly Capital Partners LP of Greenwich, Conn., and H.I.G. Capital LLC of Miami, said in a statement that KarpReilly holds 5.4%, or 1.12 million, of the retailer's shares. The deal price is as much as 17% above Charlotte Russe's closing price on Wednesday of $8.15, up 18%. And it's as much as 38% above Tuesday's close of $6.89. The $9.50 proposal would value Charlotte Russe at $198.3 million, based on about 20.9 million shares outstanding. The suitors said KarpReilly first approached Charlotte Russe about a deal "almost a year ago but was rebuffed by the board" then. Charlotte Russe on Wednesday said it named a new management team and reported a fiscal fourth-quarter loss of 32 cents a share -- and adjusted net income of 1 cent a share -- compared with profit of 33 cents in the year-earlier period. Comparable-store sales fell 3.8%. The company said the board "is confident" that with a new strategic plan it has been developing, the new executives will be "well positioned to reinvigorate growth and profitability."
Natixis shares rebound after revealing details of loss(3:20 am ET)
LONDON (MarketWatch) -- Shares in Natixis (FR:012068: news, chart, profile) rebounded around 5% in early trading Thursday after it announce late Wednesday that it swung to a net loss of 234 million euros in the third quarter, from a profit of 437 million euros a year earlier. The bank had already announced a revenue loss of 250 million euros at its investment banking division earlier in the day Wednesday, which prompted a roughly 16% drop in the shares in that trading session. The bank said late Wednesday that net write-downs in the quarter totalled 342 million euros.
Van der Moolen posts 3rd-quarter loss; revenue up 27%(3:04 am ET)
TEL AVIV (MarketWatch) -- Van der Moolen, (VDMEF: news, chart, profile) (NL:37017: news, chart, profile) the Amsterdam securities firm, reported a third-quarter loss of 7.5 million euros ($9.3 million), mainly as a result of discontinued operations and special items. After-tax adjusted profit from continuing operations was 500,000 euros, half the year-earlier figure. Pretax profit from continuing operations rose 71% to 2.4 million euros from 1.4 million a year earlier. On an adjusted basis, this figure rose 23% to 3.7 million euros. Third-quarter revenue from continuing operations rose 27% to 33.6 million euros from 26.5 million. For the fourth quarter, Van der Moolen said the proprietary-trading environment "remains challenging" and it sees "steady growth in brokerage activities in Europe and the U.S." The closing of the Online Trader business is on schedule, VDM said.
Bank of Ireland profit down 32%, scraps dividend(2:44 am ET)
LONDON (MarketWatch) -- Bank of Ireland (UK:BKIR: news, chart, profile) said Thursday that its fiscal first-half net profit fell 32% to 626 million euros ($779 million) as it also said it won't pay a dividend for the year. For the six months ended Sept. 30, a sharp rise in impairment losses helped offset stronger net interest income. The group said impairment losses on loans to customers more than tripled to 267 million euros from 79 million euros. The bank said investments at its life insurance arm were also hit by the sharp downturn in equity markets late in the period and it took an impairment of 40 million euros on the collapse of Washington Mutual. The bank scrapped its dividend to help strengthen its capital position and said it doesn't expect to resume payouts until more favorable economic conditions return. For the second half of the year Bank of Ireland said it expects underlying earnings per share to be marginally better than break-even.
Reed Elsevier sees good sales growth with unit sale in doubt(2:32 am ET)
LONDON (MarketWatch) -- Reed Elsevier (RUK: news, chart, profile) (ENL: news, chart, profile) , the Anglo-Dutch publishing group, said it's on track to record "good" revenue growth, "meaningful" margin improvement and "strong" adjusted earnings per share growth for the year. ChoicePoint, which was purchased for 2.1 billion pounds, is performing in line with expectations and the integration plans are on track. However, it said a "satisfactory outcome" for the planned sale of Reed Business Information cannot be certain with talks at an advanced stage. Reed said it's willing to providing financing support for any successful bid.
LSE profit up 19% as value traded on exchange declines(2:27 am ET)
LONDON (MarketWatch) -- The London Stock Exchange (UK:LSE: news, chart, profile) said Thursday that its net profit for the six months ended Sept. 30 rose 19% to 81.7 million pounds ($121.6 million) as revenue grew 70% to 345.5 million pounds due to the acquisition of Borsa Italiana. On a pro forma basis, revenue was up 5% or flat when compared at constant exchange rates. Operating profit was also up 5% on a pro forma basis or flat at constant exchange rates. The group said average daily trading volumes on its electronic trading system rose by a third, while the value traded fell 2%, dragged down by the falling value of the main indexes. The exchange lifted its interim dividend by 5% to 8.4 pence a share, but also said it would bring to an end the 500 million pound share buyback currently in place, saying it wants to maintain a more robust balance sheet and provide flexibility to pursue investment opportunities.
Technip 3rd-quarter net up 59% on 11% lower revenue(1:27 am ET)
TEL AVIV (MarketWatch) -- Technip, (TKPPY: news, chart, profile) (FR:013170: news, chart, profile) the Paris provideer of engineering and construction services for the oil-and-gas industry, reported third-quarter net income rose 59% on 11% lower revenue. Earnings reached 121.1 million euros ($150.7 million), or 1.15 euros a share, from 76.1 million euros, or 0.72, in the year-earlier period. Revenue fell to 1.93 billion euros from 2.17 billion. "Our full-year forecast is for around 7.3 billion euros of revenues, with a group operating margin above 8% reflecting a subsea margin well above our previous 18% target and an onshore/offshore combined operating margin on target at 3.8%," Technip said in a Thursday statement. Looking ahead in the current turbulent markets, customers' "projects which are well advanced in terms of procurement and construction are likely to proceed normally whereas future investments in new projects are more likely to be reassessed," Technip said.
Wednesday, Nov. 12
Intel says fourth-quarter results to be 'below expectations'(5:05 pm ET)
SAN FRANCISCO (MarketWatch) -- Intel Corp. said late Wednesday that it expects financial results for its current, fourth fiscal quarter to be "below expectations." The chip maker and technology bellwether (INTC: news, chart, profile) said it now expects fourth-quarter revenue to be $9 billion, "plus or minus $300 million," which is lower than the company's previous expectation of between $10.1 billion and $10.9 billion. "Revenue is being affected by significantly weaker than expected demand in all geographies and market segments," Intel said in a statement. "In addition, the PC supply chain is aggressively reducing component inventories."
Crocs reports $148M loss(4:34 pm ET)
SAN FRANCISCO (MarketWatch) -- Crocs Inc. (CROX: news, chart, profile) late Wednesday reported a third-quarter loss of $148 million, or $1.79 a share, battered by inventory write downs on its colorful sandals and restructuring charges to rejuvenate its once high-flying business. Sales fell 32% to $174 million. In the year-earlier period, Crocs earned $57 million, or 66 cents a share. Crocs warned more losses are coming as it downsizes. It expects to lose between 50 cents and 65 cents in the fourth quarter on sale of up to $120 million. Shares of Crocs closed ahead of the report at $1.90.
NetApp quarterly profit falls, as revenue grows 15%(4:11 pm ET)
SAN FRANCISCO (MarketWatch) - NetApp Inc. said late Wednesday its fiscal second-quarter net income slid to $49.2 million, or 15 cents a share, from $83.8 million, or 23 cents a share in the same period a year earlier. The Sunnyvale, Calif.-based storage technology company (NTAP: news, chart, profile) said revenue rose 15% to $911.6 million in the period ended in October. Excluding special items, NetApp said earnings for the quarter were 28 cents a share. Analysts surveyed by FactSet Research estimated NetApp would post earnings excluding special items of 28 cents a share, and $904.2 million in revenue.
Applied Materials profit falls 45%(4:07 pm ET)
SAN FRANCISCO (MarketWatch) -- Applied Materials Inc. (AMAT: news, chart, profile) on Wednesday reported a fiscal fourth-quarter profit of $231 million, or 17 cents a share, on sales of $2.04 billion. During the same period a year ago, the semiconductor-equipment and solar panel maker earned $422 million, or 30 cents a share, on sales of $2.37 billion. Excluding one-time items, Applied Materials would have earned $264 million, or 20 cents a share. Analysts surveyed by FactSet Research had forecast Applied Materials to earn 17 cents a share on $1.97 billion in revenue.
Google shares dip below $300 for first time since 2005(2:19 pm ET)
SAN FRANCISCO (MarketWatch) -- Shares of Google Inc. fell below $300 on Wednesday for the first time since late 2005. Google (GOOG: news, chart, profile) , like other Internet companies, is expected to suffer from a slowdown in online advertising amid the ongoing financial crisis. Google shares fell $16.17 to $295.23 in afternoon trading. Google shares had not dipped below the $300 mark since Oct. 2005.
Best Buy warning lead to weakness for tech stocks(9:39 am ET)
SAN FRANCISCO (MarketWatch) -- Technology stocks fell in early trading Wednesday after Best Buy Co. (BBY: news, chart, profile) , the top electronics retailer in the U.S., cut its earnings outlook for 2009 due to weakness in consumer spending. The move is seen as negative for many PC and electronics companies that sell their products at Best Buy store. Among notable tech stocks, Hewlett-Packard Co. (HPQ: news, chart, profile) shares fell 2.7% to $32.14, Dell Inc. (DELL: news, chart, profile) was dow 4% at $10.92 and Apple Inc. (AAPL: news, chart, profile) fell 2.5% to $92.30. The Nasdaq Composite Index ($COMPQ: news, chart, profile) fell 22 points to 1,558.
Energy stocks retreat with oil prices, broad market(9:33 am ET)
NEW YORK (MarketWatch) -- Energy stocks moved lower both with the broad market and with falling oil prices on Wednesday morning. The Amex Oil Index (XOI: news, chart, profile) fell 2% to 894. The Amex Natural Gas Index (XNG: news, chart, profile) dropped 1.8% to 405. Oil futures slipped $1.55 to trade at $57.78 a barrel.
Thomson Reuters net income falls(9:20 am ET)
NEW YORK (MarketWatch) -- Thomson Reuters Corp. (TRI: news, chart, profile) on Wednesday said third-quarter net income for the three months ended Sept. 30 fell to $380 million, or 46 cents a share, from $3 billion, or $4.61 a share in the year-ago period, which included a $2.7 billion boost from discontinued operations. The New York-based information provider said adjusted revenue rose 8% to $3.3 billion. Adjusted net income in the latest period totaled 48 cents a share, compared to the forecast of 30 cents a share in a survey of analysts by FactSet Research. Thomson Reuters confirmed its May 1 outlook for revenue and underlying operating profit margin. It increased its outlook for free cash flow margin.
Westfield confirms 2008 profit forecast, may buy assets(9:16 am ET)
NEW YORK (MarketWatch) -- Westfield Group (WEFIF: news, chart, profile) said Wednesday it still anticipates its 2008 earning will post a 5.5% rise despite the global economic slowdown. Australia's top shopping mall operator also said it would consider acquisitions of companies or assets that might be put up for sale, according to a Reuters report.
Tudor Pickering Holt initiates Spectra Energy at accumulate(8:41 am ET)
NEW YORK (MarketWatch) -- Tudor Pickering Holt on Wednesday initiated coverage of natural gas pipeline giant Spectra Energy (SE: news, chart, profile) with an accumulate rating. In a note to clients, the Houston-based energy research firm praised Spectra Energy as a long-term, stable name with a "nice 6% yield." Spectra was spun off from Duke Energy (DUK: news, chart, profile) in 2007.
Ralcorp Holdings net income more than triples(8:33 am ET)
NEW YORK (MarketWatch) -- Ralcorp Holdings Inc. (RAH: news, chart, profile) said Wednesday fourth-quarter net income for the three months ended Sept. 30 more than tripled to $41.1 million, or 90 cents a share, from $12.2 million, or 46 cents a share in the year-ago period. The St. Louis food company said sales rose to $873.5 million from $608.2 million. Looking ahead, Ralcorp said it expects challenges in 2009, but it remains confident in the growth prospects of its base businesses. The company said its acquisition of Post Foods will exceed its initial forecast in earnings before interest, taxes depreciation and amortization.
Tencent profit zooms, but downturn weighs on outlook(8:16 am ET)
NEW YORK (MarketWatch) -- Tencent Holdings Ltd. (TCEHF: news, chart, profile) said Wednesday its third-quarter profit rose to 745 million yuan ($109 million), or 0.4 yuan a share, from 426 million yuan, or 0.23 yuan a share, in the same quarter a year before. The Hong Kong-listed Chinese Web portal's revenue for the quarter was 2.02 billion yuan compared to 1.06 billion in the year-ago period. Despite the jump in profit, Hang Seng Index component Tencent warned that the global financial crisis could hit its bottom line, saying that while it "believes the long-term secular growth trend of online advertising is still intact, the drag of the overall advertising market ... may negatively affect the company's online advertising business." Still, the company said its Internet and wireless business was "more resilient than online advertising during a downturn."
HK Exchange profit down 43% on falling equities trade(7:19 am ET)
NEW YORK (MarketWatch) -- Stock Exchange of Hong Kong Ltd. (HKXCF: news, chart, profile) said Wednesday its third-quarter profit fell to 960 million Hong Kong dollars ($89 million), or 89 Hong Kong cents a share, from HK$1.68 billion, or HK$1.56 a share, in the same quarter a year before. Analysts had expected earnings on average of HK$1.13 billion, according to survey of six analysts cited by Bloomberg News. Total income for the quarter was HK$1.64 billion compared to HK$2.34 billion in the year-ago period. The hit to HK Exchange's profit came as average daily turnover value fell 35% during the quarter from a year earlier. The exchange operator said that in the 12 months to Sept. 30, Hong Kong's stock market capitalization fell 37% and that "what is [now] much needed is to restore calm in the current climate of fear and panic." It said is was studying possibly providing real-time market prices over the Internet. The company also said that it and Hong Kong's Securities and Futures Commission believe "the current environment is not conducive to introducing any changes to the short-selling regime, such as the suspension of the tick rule or other short-selling restrictions."
Avocent reaffirms earnings guidance(6:58 am ET)
LONDON (MarketWatch) -- Avocent Corp. (AVCNT: news, chart, profile) on Wednesday reaffirmed its earnings guidance for the fourth quarter. The IT operations management group said it expects to report operational earnings per share of 55 cents to 63 cents and revenue of between $175 million and $185 million.