Earning Plays

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Tuesday, Jan. 27
E-Trade sees 2009 customer trading activity down 15-20%(5:07 pm ET)
SAN FRANCISCO (MarketWatch) -- E-Trade Financial (ETFC: news, chart, profile) expects customer trading activity to fall as much as 20% in 2009 as the stock market becomes less volatile and remains at relatively low levels, Chief Financial Officer Bruce Nolop said Tuesday. Daily Average Revenue Trades, or DARTs, may be 15% to 20% lower this year, he said in an interview. Margin, or loans extended to E-Trade brokerage clients, probably won't rebound strongly after a big decline in the fourth quarter, Nolop added. The company is planning to reduce costs in this environment, mostly through using contractors less and eliminating unfilled jobs. It will also shift spending to product development and away from advertising, the CFO explained.
Norfolk Southern profit jumps 13% (4:44 pm ET)
SAN FRANCISCO (MarketWatch) -- Norfolk Southern Corp. (NSC: news, chart, profile) reported late Tuesday fourth-quarter net income rose to $452 million, or $1.21 a share, from $399 million, or $1.02, a year ago. Revenue for the railroad rose to $2.5 billion from $2.45 billion, with gains from hauling coal offsetting declines for general merchandise and container freight. Analysts polled by FactSet Research had, on average, expected the Norfolk, Va.-based company to earn $1.19 a share on $2.61 billion in revenue. Norfolk Southern shares rose 6.7% ahead of the report to close at $37.65.
Yahoo swings to a loss as Bartz era begins(4:27 pm ET)
SAN FRANCISCO (MarketWatch) - Yahoo Inc. on Tuesday posted a fourth-quarter net loss of $303 million, or 22 cents a share, compared to a profit of $206 million, or 15 cents a share in the same period a year earlier. The Sunnyvale, Calif.-based Internet giant (YHOO: news, chart, profile) said net revenue in the period ended in December fell 2% to $1.38 billion. Analysts on average have been estimating that Yahoo would post earnings of 13 cents a share, and $1.37 billion in net revenue, according to FactSet Research. Yahoo appointed Carol Bartz as its new chief executive earlier this month, as the company attempts a turnaround amid the flagging economy.
C.H. Robinson profit rises 4.3%(4:24 pm ET)
SAN FRANCISCO (MarketWatch) -- C.H. Robinson Worldwide (CHRW: news, chart, profile) on Tuesday reported a fourth-quarter profit of $88.9 million, or 52 cents a share, up from $85.3 million, or 49 cents a share, a year earlier. Revenue for the transportation company came in at $1.955 billion, compared with $1.952 billion a year ago. Analysts polled by FactSet Research were looking for a profit, on average, of 52 cents a share with $2.24 billion in sales.
Stryker profit rises, led by orthopedic implant sales(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Medical products maker Stryker Corp. (SYK: news, chart, profile) reported late Tuesday fourth-quarter net income rose to $277.7 million, or 69 cents a share, up from $276.1 million, or 66 cents, a year ago. Revenue for the three months ended Dec. 31 rose 3.6% to $1.72 billion, led by a 4.2% gain in orthopedic implant sales. Analysts surveyed by FactSet Research had, on average, expected the Kalamazoo, Mich.-based company to report earnings of 74 cents a share on $1.72 billion in revenue. The company stuck by its previous full-year earnings outlook of $3.12 to $3.22 a share for 2009. Stryker shares rose 3.8% to close at $41.05 ahead of the report. The stock is down 38% over the past 12 months.
Molex swings to a loss for the second fiscal quarter(4:21 pm ET)
SAN FRANCISCO (MarketWatch) -- Molex Inc. swung to a net loss on heavy restructuring charges for its second fiscal quarter. For the period ended Dec. 31, Molex (MOLX: news, chart, profile) reported a net loss of $87.2 million, or 50 cents a share, compared to earnings of $59.2 million, or 33 cents a share, for the same period last year. The results include charges totaling 70 cents a share related to restructuring and goodwill impairment. Revenue fell 21% to $666.7 million. Analysts were expecting earnings of 14 cents a share on revenue of $656.6 million, according to Thomson Reuters. The company said it expects revenue between $500 million and $570 million for the current quarter, below the $628.5 million predicted by analysts.
Waddell & Reed reveals fourth-quarter loss(4:12 pm ET)
NEW YORK (MarketWatch) -- Waddell & Reed Financial Inc. (WDR: news, chart, profile) said Tuesday that for the fourth quarter it suffered a net loss of $700,000, or 1 cent a share. The firm reported net income of $35.1 million, or 42 cents a share, in the fourth quarter of 2007. Waddell & Reed said that excluding unusual and non-recurring charges, fourth quarter net income would have been $17.4 million, or 21 cents a share. Analysts surveyed by FactSet Research had expected, on average, a fourth-quarter profit of 25 cents a share, excluding the non-recurring charges. The biggest charge was a $16.5 million restructuring charge, made up mainly of severance costs associated with a voluntary separation program.
E-Trade reports $276 million quarterly net loss(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- E-Trade Financial (ETFC: news, chart, profile) reported a quarterly net loss late Tuesday as the discount brokerage and banking company set aside more money to cover losses in its loan portfolios. The fourth-quarter net loss came in at $276 million, or 50 cents a share, versus a loss of $1.7 billion, or $3.98 a share, a year earlier. E-Trade was expected to lose 23 cents a share, according to the average estimate of 12 analysts in a Thomson Reuters survey. The results included $513 million of extra provisions to cover losses mainly in E-Trade's portfolios of mortgages and home-equity loans. The company now has a total of $1.1 billion set aside to cover loan losses, up 24% from the third quarter. E-Trade also said that its application for an investment from the Treasury Department's Troubled Asset Relief Program is still being reviewed. Chief Financial Officer Bruce Nolop said the company has been surprised by how long the review is taking, but stressed that it doesn't need the extra capital.
Energy stocks fall into the red as crude retreats(9:35 am ET)
NEW YORK (MarketaWatch) -- Energy stocks moved into the red Tuesday after two straight days of gains. The Amex Oil Index (XOI: news, chart, profile) fell 0.9% to 952. The Amex Natural Gas Index (XNG: news, chart, profile) dipped 0.5% to 379. Crude oil prices retreated 67 cents to $45.06. Valero (VLO: news, chart, profile) fell 3.7% to $24.90. BJ Services (BJS: news, chart, profile) rose 2.8% to $12.25.
Nucor earnings slump in quarter(9:15 am ET)
NEW YORK (MarketWatch) -- Nucor Corp. (NUE: news, chart, profile) said Tuesday that fourth-quarter earnings were $106 million, or 34 cents a share, compared to $365 million, or $1.26 a share, in the same period last year. Sales fell 6% in the quarter to $4.15 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 42 cents and sales of $3.7 billion. The steel maker declined to give guidance for the first quarter, saying it had little visibility in light of the dramatic global slowdown.
Avery Dennison earnings per share down 47%(8:58 am ET)
NEW YORK (MarketWatch) -- Avery Dennison said Tuesday that fourth-quarter earnings were $43 million, or 43 cents a share, compared to $79 million, or 81 cents, in the same period a year ago. On an adjusted basis, the label-making company earned 65 cents a share compared to $1.08. Sales fell to $1.51 billion from $1.71 billion in last year's period. Analysts polled by FactSet Research estimated, on average, earnings per share of 45 cents and sales of $1.56 billion.
AK Steel warns of operating loss on planned maintenance(8:52 am ET)
NEW YORK (MarketWatch) -- AK Steel Holding Corp. (AKS: news, chart, profile) said Tuesday it lost $430.6 million, or $3.88 a share in its fiscal fourth quarter, compared to net income of $106.7 million, or 95 cents a share, in the year-ago period. Excluding items, net income fell to $600,000 from $164 million. Adjusted operating profit dropped to $10.3 million from $153.5 million. The West Chester, Ohio steel maker said the latest period included a non-cash charge of $700 million related to its pension plans. Net sales fell 14% to $1.46 billion. Analysts expected earnings of 6 cents a share on revenue of $1.25 billion, according to a survey by FactSet Research. AK Steel expects to post a "significant" operating loss for the first quarter as it shuts down a blast furnace for maintenance. It expects shipments in the second quarter of 2009 to improve, and, coupled with lower raw material costs compared to the first quarter, AK Steel expects to generate a "modest operating profit" for the second quarter.
Temple-Inland swings to fourth-quarter loss(8:45 am ET)
NEW YORK (MarketWatch) -- Temple-Inland Inc. (TIN: news, chart, profile) said Tuesday that it swung to a fourth-quarter loss of $6 million, or 6 cents a share, from a profit of $1.17 billion, or $10.76 a share, in the same quarter a year before. Excluding special items, earnings were 11 cents a share in the latest period, compared to the year-earlier 23 cents. Analysts had expected, on average, a loss of 2 cents a share, according to a FactSet Research survey. The Austin, Tex.-based company, which makes corrugated packaging and building products, said revenue for the quarter rose to $973 million compared to $937 million in the year-ago period.
U.S. Steel sees first-quarter operating loss(8:43 am ET)
NEW YORK (MarketWatch) -- United States Steel Corp. (X: news, chart, profile) said Tuesday that it earned $308 million, or $2.65 a share, in the fourth quarter. In the same period a year ago the company earned $35 million, or 29 cents a share. Fourth-quarter income was increased by 65 cents a share by certain items. Sales were $4.6 billion compared to $4.5 billion a year earlier. Analysts polled by FactSet Research estimated, on average, earnings per share of 87 cents and sales of $4.2 billion. Chief Executive John Surma said, "We expect an operating loss in the first quarter as results continue to reflect the extremely difficult global economic environment. We do not know when conditions may improve, but we are well positioned to fully participate in a market recovery when it occurs."
Peabody Energy net income rises eightfold(8:36 am ET)
NEW YORK (MarketWatch) -- Peabody Energy (BTU: news, chart, profile) said fourth-quarter net income rose eightfold to $293.3 million, or $1.10 a share, from $35.8 million, or 13 cents a share in the year-ago period. The year-ago period included a loss of $108 million related to income tax. Operating profit more than doubled to $386 million from $151 million. Revenue increased to $1.88 billion from $1.17 billion. Analysts expected earnings of 73 cents a share on revenue of $1.67 bililon, according to a survey by FactSet Research. Looking ahead, the company expects to sell 230 to 250 million tons of coal in 2009.
Charges push Convergys into fourth-quarter loss(8:23 am ET)
NEW YORK (MarketWatch) -- Relationship management firm Convergys Corp. (CVG: news, chart, profile) said Tuesday it had a net loss of $29.3 million, or 24 cents a share, in the fourth quarter, compared with a profit of $45.3 million, or 34 cents a share in the year-ago period. The loss was caused by charges that represented a hit to fourth-quarter earnings of 54 cents a share. Convergys said the negative impact was from non-cash goodwill impairment in the HR Management segment of $61.1 million and restructuring expenses of $20.3 million.
Valero loses $3 billion on non-cash impairment costs(8:21 am ET)
NEW YORK (MarketWatch) -- Valero Energy Corp. (VLO: news, chart, profile) on Tuesday said it lost $3.28 billion, or $6.36 a share, compared to a profit of $567 million, or $1.04 a share in the year-ago period. The San Antonio-based oil refining giant earned $1.41 a share, excluding a noncash loss from the impairment of goodwill of $4.1 billion. Operating revenue fell to $18.6 billion from $28.7 billion. Analysts expected earnings of 91 cents a share, according to a survey by FactSet Research. Valero's goodwill impairment loss represents a write-off of the entire balance of its goodwill from the application of impairment testing criteria under existing accounting rules. Valero cut its 2009 capital spending target to $2.7 billion from its previous estimate of $3.5 billion.
Cooper Industries net income falls 38%(8:15 am ET)
NEW YORK (MarketWatch) -- Cooper Industries (CBE: news, chart, profile) said Tuesday fourth-quarter net income fell to $111.1 million, or 65 cents a share, from $179.3 million, or 98 cents a share in the year-ago period. The Houston-based electrical products manufacturer said it earned 84 cents a share, excluding charges, in the latest period. Revenue fell to $1.52 billion from $1.54 billion. Analysts expected earnings of 72 cents a share on revenue of $1.54 billion, according to a survey by FactSet Research. For the first quarter, Cooper Industries expected earnings from continuing operations of 45 to 65 cents, compared to the target of 66 cents a share.
Bemis earnings per share fall 21% in quarter(8:14 am ET)
NEW YORK (MarketWatch) -- Bemis Co. (BMS: news, chart, profile) said Tuesday that its fourth-quarter earnings were $33 million, or 33 cents a share, compared to $43 million, or 43 cents a share, in the same period a year ago. Sales in the period were $868 million compared to $913 million a year ago. Analysts polled by FactSet Research estimated, on average, earnings per share of 32 cents and sales of $889 million. In the first quarter Bemis sees earnings per share in the range of 30 cents to 38 cents. For the full year of 2009, Bemis expects earnings per share to be in the range of $1.50 to $1.70.
St. Jude Medical swings to a 4th qtr loss of $194 million(8:10 am ET)
MADRID (MarketWatch) -- Medical device-maker St. Jude Medical, Inc. (STJ: news, chart, profile) swung to a loss of $194 million in fourth quarter of 2008, or 56 cents a share, from net income of $118 million, or 34 cents a share, in the year-earlier period. Sales rose 11% to $1.1 billion from $1 billion in the year earlier period. The company said foreign currency translation comparisons decreased fourth quarter sales by around $29 million. Adjusted, net income per share in the fourth quarter was 60 cents against 54 cents a share a year earlier. The company was projected to post a fourth-quarter profit of 58 cents a share, according to analysts surveyed by FactSet Research. The company expects its consolidated earnings for the first quarter of 2009 to be in the range of 57 cents to 59 cents per diluted share and for full-year 2009 in the range of $2.48 to $2.54.
EMC's profit falls in fourth quarter(7:51 am ET)
NEW YORK (MarketWatch) -- EMC Corp. (EMC: news, chart, profile) said Tuesday that its fourth-quarter net income fell to $288 million, or 14 cents a share, from $525.7 million, or 24 cents a share, in the year-earlier period. Adjusted earnings were 32 cents a share, up 7% from the year-earlier period. On average, analyst polled by FactSet Research expected earnings of 23 cents a share. The Hopkinton, Mass., data systems company said quarterly revenue grew to $4.02 billion from $3.83 billion. EMC said it is not giving a forecast for revenue or earnings at this time, citing "current macro-economic conditions and limited visibility."
Bristol-Myers Squibb swings to profit (7:49 am ET)
NEW YORK (MarketWatch) -- Bristol-Myers Squibb (BMY: news, chart, profile) said on Tuesday that it earned a $1.20 billion, or 62 cents a share in the fourth quarter, compared to an $89 million, or 5 cents a share loss a year ago. Net sales in the fourth quarter were $5.25 billion, compared to $5.06 billion a year ago. The fourth quarter 2008 net earnings included a $582 million after tax gain, or 29 cents a share from its sale of its stake in ImClone Systems.
FPL Group Inc. net doubles, revenue beats target(7:47 am ET)
NEW YORK (MarketWatch) -- FPL Group Inc. (FPL: news, chart, profile) on Tuesday said fourth-quarter net income nearly doubled to $408 million, or $1.01 per share, from $224 million, or 56 cents a share in the year-ago period. Adjusted earnings for the Juno Beach, Fla. power firm rose to 90 cents a share from 72 cents a share. Revenue rose to $4 billion from $3.68 billion. Analysts expected earnings of 89 cents a share on revenue of $3.85 billion, on average. The company expects full-year adjusted earnings of $4.05 to $4.25 for 2009 and $4.50 to $4.90 for 2010.
Verizon earnings per share up 16%(7:44 am ET)
NEW YORK (MarketWatch) -- Verizon (VZ: news, chart, profile) said Tuesday that it earned $1.24 billion, or 43 cents a share, in the fourth quarter compared to $1.07 billion, or 37 cents a share, in the same period a year ago. On an adjusted basis, Verizon earned 61 cents a share compared to 62 cents a share a year ago. Sales were $24.6 billion compared to $23.8 billion a year ago. Analysts polled by FactSet Research estimated, on average, earnings per share of 62 cents and sales of $24.7 billion.
Corning reports 4th qtr net income falls 65%(7:43 am ET)
MADRID (MarketWatch) -- Specialty glass and ceremics maker Corning, Inc. reported that fourth quarter net income fell 65% on a 31% fall in sales. Profit fell to $249 million, or 16 cents a share, from $717 million, or 46 cents in the year ago period. Sales fell to $1.08 billion from $1.58 billion in the previous year. The company said it expects earnings per share, before special items, to be about break-even in the first quarter. "We anticipate a slow start to 2009 with first-quarter combined display volume down 20% to 25% as the supply chain continues to reduce inventory during the seasonally weaker retail sales quarter," said James B. Flaws, Vice Chairman and Chief Financial Officer. The company plans restructuring actions in the first quarter of this year and said it may make more job cuts. A survey of analysts by FactSet Research produced consensus estimates for Corning of 21 cents of profit on $1.15 billion of revenue.
Lexmark sees 1st-qtr net 52c-62c on lower revenue(7:34 am ET)
TEL AVIV (MarketWatch) -- Lexmark International Inc., (LXK: news, chart, profile) the Lexington, Ky., provider of printing and imaging technology and services, expects to report first-quarter earnings of 52 cents to 62 cents a share, or an adjusted 65 cents to 75 cents including restructuring-related charges.That compares with earnings of $1.07, or an adjusted $1.16, in the year-earlier quarter. Lexmark estimated that first-quarter revenue would decline in the mid- to high teens percent. A survey of analysts by FactSet Research produced a consensus estimate for the first quarter of 62 cents of profit on $989.8 million of revenue.
Hershey earnings per share up 50% in quarter(7:29 am ET)
NEW YORK (MarketWatch) -- The Hershey Co. (HSY: news, chart, profile) said Tuesday that it earned $81 million, or 36 cents a share, compared to $54 million, or 24 cents a share, in the same period a year ago. Earnings per share from operations were 59 cents. Sales rose to $1.38 billion compared to $1.34 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 54 cents and sales of $1.38 billion. Hershey sees 2009 sales growth of 2% to 3% and earnings per share from operations to be less than its long-term objective of 6% to 8%.
Waters Corp. net income edges up(7:23 am ET)
NEW YORK (MarketWatch) -- Waters Corp. (WAT: news, chart, profile) said Tuesday fourth-quarter net income rose slightly to $99.4 million, or $1.01 a share, from $98.9 million, or 96 cents a share in the year-ago period. The Milford, Mass. maker of analytical equipment said adjusted earnings rose to $1.07 a share from 98 cents a share. Revenue fell to $418.3 million from $437 million. Analysts expected earnings of 95 cents a share on revenue of $418 million, according to a survey by FactSet Research.
Tellabs posts higher fourth-quarter profit(7:22 am ET)
NEW YORK (MarketWatch) -- Tellabs Inc. (TLAB: news, chart, profile) said Tuesday that fourth-quarter earnings rose to $12.8 million, or 3 cents a share, from $6.3 million, or 1 cent a share, in the year-earlier period. On an adjusted basis, earnings for the Naperville, Ill., telecommunications networks company rose to $35.1 million, or 9 cents a share, from the year-earlier $17.4 million, or 4 cents a share. Revenue fell 13% to $408 million from $469 million. Analysts polled by FactSet Research, on average, expected earnings of 5 cents a share on revenue of $410.9 million. Tellabs expects first-quarter revenue of $345 million to $375 million, compared to analysts' expectations for $391.8 million.
Lexmark 4th-quarter net off 82%, revenue down 17%(7:19 am ET)
TEL AVIV (MarketWatch) -- Lexmark International Inc., (LXK: news, chart, profile) the Lexington, Ky., provider of printing and imaging technology and services, reported that fourth-quarter net income declined 82% on 17% lower revenue. Earnings were $18.1 million, or 23 cents a share, compared with $99 million, or $1.04, in the year-earlier period. Adjusted earnings, excluding restructuring-related charges and project costs, were 75 cents against $1.29. Revenue fell to $1.08 billion from $1.31 billion. A survey of analysts by FactSet Research produced consensus estimates of 71 cents of profit on sales of $1.13 billion for the quarter. Operating earnings and revenue were hurt "by global economic weakness and significant currency-rate shifts," Lexmark said in a statement on Tuesday. The company is further reducing fixed infrastructure and business-support costs, aiming to save more than $100 million in 2009, Chairman and Chief Executive Paul J. Curlander said. Lexmark's balance sheet reflects $973 million in cash and equivalents. The gross-profit margin in the quarter narrowed to 33.4% from 29% a year earlier, Lexmark reported.