Earning Plays

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Friday, Dec. 19
Energy stocks move up with broad market(9:33 am ET)
NEW YORK (MarketWatch) -- Energy stocks moved up with the broad market in early action on Friday. The Amex Oil Index (XOI: news, chart, profile) rose 0.3% to 948. The Amex Natural Gas Index (XNG: news, chart, profile) advanced 1.7% to 367.
Electronic Arts to lay off additional 400 workers(9:32 am ET)
NEW YORK (MarketWatch) -- Electronic Arts (ERTS: news, chart, profile) on Friday said it'll lay off 400 people more people than it initially announced on October 30. In all, the Redwood City, Calif. video game company will trim 1,000 jobs, or about 10% of its work force, with most cuts coming by the end of March. EA expects the restructuring plan will result in annual cost savings of approximately $120 million and restructuring charges of approximately $55-65 million over the next several quarters. The restructuring also calls for consolidation or closure of at least nine studio and publishing locations.
Southwestern Energy boosts capital spending by $500 million(9:19 am ET)
NEW YORK (MarketWatch) -- Southwestern Energy Corp. (SWN: news, chart, profile) late Thursday said it plans to spend $2 billion on capital projects in 2009, up from about $1.5 billion in 2008. All but $500 million of the budget will go toward boosting production at the company's Fayetteville Shale play in Arkansas. The S&P 500 ($SPX: news, chart, profile) component targeted 2009 total oil and gas production of 280 to 284 billion cubic feet equivalent, an increase of approximately 48% over the company's current forecasted 2008 production of 190 to 192 billion cubic feet equivalent.
Lam Research sees ongoing loss of 4 cents-5 cents a share(8:34 am ET)
NEW YORK (MarketWatch) -- Lam Research Corp. (LRCX: news, chart, profile) said Friday it had lowered its outlook for the December quarter to expect revenue of $270 million to $285 million and said it sees an ongoing loss of 4 cents to 5 cents a share. "Business conditions in the semiconductor equipment sector have deteriorated further in recent weeks," Chief Executive Steve Newberry said in a statement. "As a result of these conditions we are adjusting our December quarter outlook and we expect this challenging environment will persist going into 2009."
Bristol-Myers' Mead Johnson Nutrition files $1 billion IPO(8:12 am ET)
NEW YORK (MarketWatch) -- Bristol-Myers Squibb Co. (BMY: news, chart, profile) on Friday filed a $1 billion initial public offering for its Mead Johnson Nutrition unit, with plans to list the Evansville, Ind. pediatric nutrition company on the New York Stock Exchange under the symbol MJN. Citi (C: news, chart, profile) , Morgan Stanley (MS: news, chart, profile) , Credit Suisse (CS: news, chart, profile) and J.P. Morgan (JPM: news, chart, profile) are underwriting the IPO. Founded in 1911, Mead Johnson became a wholly owned subsidiary of Bristol-Myers in 1967.
CarMax Inc. swings to a loss, suspends 2009 outlook(7:58 am ET)
NEW YORK (MarketWatch) -- CarMax Inc. (KMX: news, chart, profile) on Friday said it swung to a third-quarter loss of $21.9 million, or 10 cents a share, from a profit of $29.8 million, or 14 cents a share in the year-ago period. Excluding a reduction of 12 cents a share tied to write-downs at CarMax Auto Finance and other items, the company earned 2 cents a share. The Richmond, Va. car retailer said revenue fell 23% to $1.46 billion. Analysts expected earnings of 2 cents a share on revenue of $1.6 billion, according to a FactSet Research survey. "As a result of the unprecedented declines in traffic and sales and the continuing volatility in the asset-backed credit markets, we do not believe we can make a meaningful projection of fiscal 2009 earnings," CarMax said.
Jabil earnings per share fall 27% in first quarter(7:46 am ET)
NEW YORK (MarketWatch) -- Jabil Circuit Inc. (JBL: news, chart, profile) said Friday that it earned $46 million, or 22 cents a share, in the first quarter compared to $62 million, or 30 cents, in the same period a year ago. Revenue was steady at $3.38 billion compared to $3.37 billion a year ago. Analysts polled by FactSet Research estimated, on average, earnings per share of 28 cents and sales of $3.43 billion. In the second quarter, Jabil sees a profit of 4 cents to 8 cents a share and revenue of $2.8 billion to $3.0 billion.
Cintas Corp. net income falls 13%(7:21 am ET)
NEW YORK (MarketWatch) -- Cintas Corp. (CTAS: news, chart, profile) on Friday said second-quarter net income for the three months ended Nov. 30 fell 13% to $71.8 million, or 47 cents a share, from $82.9 million, or 53 cents a share in the year-ago period. Revenue rose slightly to $985.2 million from $983.9 million. The Cincinnati-based uniform and supply service provider was expected to earn 55 cents a share on revenue of $1 billion, according to an analyst survey by FactSet Research. Cintas said it's striking its profit and revenue targets for the year given uncertainties throughout the marketplace. "Our strong cash flow and healthy balance sheet will be a great advantage to us under these circumstances," the company said.
Weyerhaeuser cuts dividend, warns of lower earnings(7:14 am ET)
NEW YORK (MarketWatch) -- Weyerhaeuser Co. (WY: news, chart, profile) said Friday that it is reducing its quarterly dividend to 25 cents a share from 60 cents a share. The forest-products company also warned that fourth-quarter earnings will come in significantly below expectations, blaming the ongoing housing slump and weak pulp market, and that it sees challenging market conditions continuing through 2009. Weyerhaeuser also said its board approved the repurchase of up to $250 million of the company's shares and set a wage freeze for executives and salaried workers.
ABB to take $850 million charge, slash costs(2:30 am ET)
LONDON (MarketWatch) -- Switzerland's ABB (ABB: news, chart, profile) (CH:001222171: news, chart, profile) said Friday that it will book pretax provisions of $850 million in the fourth quarter to cover potential costs related to regulatory investigations in the U.S. and Europe. The previously-disclosed investigations are probing suspect payments and alleged anti-competitive practices, the power and automation technology group said. The provisions will also cover the impact of a tax dispute and write-downs related to a weaker business environment. ABB said its order intake for October and November reflected weakening market conditions and added earnings will be hit by volatility in exchange rates and commodity prices. The company will launch a $1 billion cost reduction program, with more details to be announced in February, but added it remains confident of hitting its 2008 growth targets.
Thursday, Dec. 18
Accenture says quarterly net income rises 26%(4:46 pm ET)
SAN FRANCISCO (MarketWatch) -- Accenture Ltd. (ACN: news, chart, profile) said late Thursday that fiscal first-quarter net income came in at $479.9 million, up 26% from a year earlier when the consulting and out-sourcing firm made $381.3 million. Net income per share, which includes minority interests in some Accenture businesses, came in at 74 cents versus 60 cents a year earlier. Net revenues were $6.02 billion, up 6% in U.S. dollars. Operating income grew 12% to $815 million and the operating margin increased by 70 basis points to 13.5%, Accenture reported.
Research In Motion earnings rise as forecast beats targets(4:16 pm ET)
SAN FRANCISCO (MarketWatch) -- Research In Motion Ltd. saw its earnings rise in its fiscal third quarter as the smartphone maker issued a forecast for the current period that was above Wall Street's estimates. For the quarter ended Nov. 31, RIM (RIMM: news, chart, profile) posted earnings of $396.3 million, or 69 cents a share, compared to earnings of $370.5 million, or 65 cents a share, for the same period last year. Excluding certain charges, the company said it would have earned $477.3 million, or 83 cents a share, for the period. Revenue grew 66% to $2.78 billion. The results were in line with the company's pre-announcement two weeks ago. For the current period, RIM said it expects to earn between 83-91 cents a share on revenue of $3.3 billion and $3.5 billion. Analysts were expecting earnings of 86 cents a share on revenue of $3 billion, according to consensus estimates from FactSet Research.
Oracle profit slips amid souring economy(4:08 pm ET)
SAN FRANCISCO (MarketWatch) - Oracle Corp. said Thursday its fiscal second-quarter profit fell slightly lower amid the souring economy. The Redwood Shores, Calif.-based business software maker (ORCL: news, chart, profile) said net income for the period ended in November fell to $1.27 billion, or 25 cents a share, from $1.3 billion, or 25 cents a share in the same period a year earlier. Revenue rose 6% to $5.6 billion. Excluding special items, Oracle said earnings for the quarter were 34 cents a share. Analysts polled by FactSet Research estimated Oracle would post earnings excluding special items of 35 cents a share, and $5.8 billion in revenue.
Energy stocks fall with lower oil prices(9:48 am ET)
NEW YORK (MarketWatch) -- Energy stocks surrendered Thursday to oil trading below $40 a barrel for the first time in four years. The Amex Oil Index (XOI: news, chart, profile) fell 1.9% to 977. The Amex Natural Gas Index (XNG: news, chart, profile) dropped 2.2% to 369. The Philadelphia Oil Service Index ($OSX: news, chart, profile) subtracted 1.6% to 125.
Russia's Mechel doubles profit for January-September(9:45 am ET)
NEW YORK (MarketWatch) -- Mechel OAO (MTL: news, chart, profile) said Thursday its profit for the January-September period more than doubled to $1.64 billion, or $3.93 a share, from $706 million, or $1.70 a share, in the same timeframe last year. The New York-listed Russian mining giant said its revenue for the nine months ended Sept. 30 jumped $8.58 billion, from $4.65 billion in the year-ago quarters. Mechel Chief Executive Officer Igor Zyuzin cited favorable market conditions for mining and steel products, acquisitions and strong organic growth. Over the summer, public criticism of Mechel by Russian Prime Minister Vladimir Putin wiped out billions of dollars from Mechel's market capitalization, as investors fled the stock on concerns that the company could follow the fate of oil company Yukos, which was forced to be nationalized and its cheif executive jailed. Mechel's share price leapt 9% in early Thursday trade to $5.39.
Carnival posts higher fourth-quarter profit, cuts 2009 view(9:28 am ET)
NEW YORK (MarketWatch) -- Carnival Corp. (CCL: news, chart, profile) (CUK: news, chart, profile) said Thursday that its fourth-quarter net income rose to $371 million, or 47 cents a share, from $358 billion, or 44 cents a share, in the year-earlier period. The cruise operator said revenue for the three months ended Nov. 30 increased to $3.3 billion from $3.12 billion. The company now sees 2009 earnings of $2.25 to $2.75 a share, compared to its prior view of $2.50 to $3.00 a share. For the first quarter, Carnival expects earnings of 20 cents to 22 cents a share.
Sony may cut more jobs to survive downturn, president says(8:25 am ET)
NEW YORK (MarketWatch) -- Sony Corp. (SNE: news, chart, profile) may make further restructuring moves, including adding more job cuts to its recent round of layoffs, according to a Kyodo news service interview with the company's President Ryoji Chubachi published Thursday. The Japanese firm said last week it would cut 16,000 jobs, but Chubachi said more steps -- including further lay-offs -- may be needed. "With only these measures, we cannot fully survive the current economic situation," he told Kyodo. Chubachi said business conditions are getting worse, with demand for its consumer appliances falling, especially since late November, a trend which he said "would not be a temporary but a long-lasting one." He also said Sony would have to reassess its goal of expanding its personal computer, Blu-ray Disc and semiconductor operations into "trillion yen businesses" by March 2011.
FedEx cutting CEO pay by 20% to help save costs(8:09 am ET)
NEW YORK (MarketWatch) -- FedEx Corp. (FDX: news, chart, profile) said Thursday it would institute a hiring freeze and cut salaries as part of a plan to reduce costs. Effective Jan. 1, Chief Executive Officer Frederick Smith will recieve a 20% cut; other senior FedEx executives will get a 7.5%-10% reduction. FedEx's remaining U.S. salaried exempt personnel will draw a reduction of 5%. Separately, FedEx said second-quarter earnings for the three months ended Nov. 30 rose 3% to $493 million, or $1.58 a share, from $479 million ,or $1.54 a share in the year-ago period. Revenue rose 1% to $9.54 billion. The Memphis-based package delivery giant was expected to earn $1.58 a share, according to a FactSet Research survey. FedEx expects "very difficult" economic conditions through calendar 2009. "We are taking additional actions necessary to help offset weak demand, protect our business and minimize the loss of jobs," the company said.
Worthington swings to a loss of $2.02 a share(8:08 am ET)
NEW YORK (MarketWatch) -- Worthington Industries Inc. (WOR: news, chart, profile) said Thursday that it lost $160 million in the second quarter, or $2.02 a share, compared to year-ago earnings of $15 million, or 18 cents a share. An inventory writedown had a negative impact of 86 cents a share in the period and a good will impairment had a negative impact of $1.07 a share. Sales were $745 million, an increase of 4%. Analysts polled by FactSet Research estimated, on average, earnings per share of 6 cents and sales of $776 million. "We believe the steps we have announced to close or idle facilities, sell non-core assets, reduce the work force and work schedules and, in general, to cut costs throughout the company are required in this extraordinary period." Chief Executive John McConnell said.
CORRECT: AWK registers $690 million in stock(8:07 am ET)
NEW YORK (MarketWatch) -- American Water Works Company Inc. (AWK: news, chart, profile) on Thursday registered $690 million in stock. (Corrects error on nature of stock offering.)
Coca-Cola Enterprises raises 2008 forecast(7:54 am ET)
NEW YORK (MarketWatch) -- Coca-Cola Enterprises Inc. (CCE: news, chart, profile) said Thursday that it expects to report comparable earnings of $1.28 to $1.31 a share in 2008, up from its forecast of $1.25 to $1.29 a share, given on Oct. 23. On average, analysts polled by FactSet Research were looking for a profit of $1.26 a share. The company cited stronger-than-expected volume performance in North America, solid European performance and ongoing efforts to control operating expenses as reasons for the revision. It expects mid-single-digit growth in earnings per share in 2009.
Actuant earnings slashed in first quarter(7:49 am ET)
NEW YORK (MarketWatch) -- Actuant Corp. (ATU: news, chart, profile) said Thursday that first-quarter earnings fell to $11.6 million, or 19 cents a share, compared to $27.4 million, or 43 cents in the same period a year ago. Sales fell to $380 million from $415 million. Excluding a charge of 26 cents a share related to the company's recreational vehicle line and other itmes, earnings per share were 45 cents vs. 52 cents a year ago. Analysts polled by FactSet Research estimated, on average, earnings per share of 47 cents and sales of $400 million.
Pentair cuts forecast, plans to cut workforce(7:22 am ET)
NEW YORK (MarketWatch) -- Pentair Inc. (PNR: news, chart, profile) on Thursday lowered its forecast for adjusted fourth-quarter earnings from continuing operations to a range of 40 cents to 42 cents a share, compared to its previous view of 52 cents to 55 cents a share. On average, analysts polled by FactSet Research expected earnings of 48 cents a share. For the full year 2008, the company expects adjusted earnings of $2.19 to $2.21 a share, compared to its earlier forecast of $2.28 to $2.31. Analysts were looking for $2.29 a share. In 2009, the company sees earnings of $1.70 to $2.00 a share on an 8% to 10% decline in sales. The Golden Valley, Minn., water treatment and storage products manufacturer said it is responding to deteriorating economic conditions by accelerating restructuring actions, among other actions, and it expects to cut about 1,600 jobs, or more than 10% of its workforce, this year.
Covance cuts 2008 outlook but forecasts growth in 2009(7:21 am ET)
NEW YORK (MarketWatch) -- Covance Inc. (CVD: news, chart, profile) lowered its 2008 profit outlook Thursday, saying it now expects earnings of $3.02 a share with "low double-digit" revenue growth. It previous forecast the year would bring $3.18 a share profit with revenue growing in the "low-teens" on a percentage basis. However, the drug company also said it expects full-year 2009 revenue growth of approximately 5% to 10% and earnings per share of $3.00 to $3.20, based on its budgeted level for the U.S. dollar. Excluding the impact of foreign exchange, it sees revenue growth in the range of approximately 10% to 15% and earnings growth in the range of approximately 8% to 15%. For the first quarter of 2009, the company expects a modest sequential decline in earnings per share from the fourth quarter of 2008, relating largely to new operations coming online. Covance shares ended Wednesday up over 4% at $42.78.
Alliant Energy sees 2008 earnings near $2.65 a share(7:21 am ET)
NEW YORK (MarketWatch) -- Alliant Energy Corp. (LNT: news, chart, profile) on Thursday said it expects 2008 earnings at or slightly below $2.65 a share. Analysts expect earnings of $2.66 a share for Alliant, according to a survey by FactSet Research.
Pier 1 Imports' third-quarter loss widens(6:18 am ET)
LONDON (MarketWatch) -- Pier 1 Imports, Inc. (PIR: news, chart, profile) said its third-quarter net loss widened to $36.9 million, or 41 cents a share, from $10 million, or 11 cents a share, in the year-earlier quarter. Consensus forecast were for a loss of 25 cents a share, according to a survey of 13 analysts conducted by FactSet Research. Same-store sales for the quarter fell 17.8%, in line with previous guidance. Total sales dropped 20% to $301 million. The company said it expects the current challenging environment to continue "well into fiscal 2010" and possibly longer.
Petrofac expects to meeting market expectations for earnings(2:35 am ET)
LONDON (MarketWatch) -- Oil and gas services group Petrofac (UK:PFC: news, chart, profile) said Thursday that it expects net profit for 2008 to be in line with the market consensus of $259.6 million. The group said total backlog at the end of the year is expected to be around $4 billion, compared to $4.4 billion a year earlier. "The group has a strong balance sheet and we are well positioned to take advantage of any opportunities that may arise from current market conditions," said CEO Ayman Asfari.