Earning Plays

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Thursday, Jan. 29
Eastman Chemical slips to loss (6:21 pm ET)
SAN FRANCISCO (MarketWatch) -- Eastman Chemical Co. (EMN: news, chart, profile) reported late Thursday a fourth-quarter loss of $2 million, or 3 cents a share. It had net income of $98 million, or $1.25 s share, a year earlier. Excluding one-time items, the company posted earnings of $5 million, or 5 cents a share, from ongoing operations compared with $144 million, or $1.27, a year ago. Revenue for the three months ended Dec. 31 fell 23% to $1.35 billion from $1.74 billion. Analysts surveyed by FactSet Research, who typically track earnings from ongoing operations, had predicted the Kingsport, Tenn., specialty chemicals company would earn 36 cents a share on $1.38 billion in revenue. Eastman Chemical shares closed ahead of the report with a 4.9% loss at $27.34.
Chubb saw fewer D&O claims in fourth quarter vs. third (6:13 pm ET)
SAN FRANCISCO (MarketWatch) -- Chubb Corp. (CB: news, chart, profile) Chief Operating Officer John Degnan said late Thursday that the insurer saw fewer new directors and officers claims in the fourth quarter than it received in the third quarter. He also said Chubb probably won't see big claims from the alleged Bernard Madoff Ponzi scheme. Chubb is a leading provider of D&O insurance. This type of coverage protects executives and members of a company's board from liability in the event of a lawsuit against them claiming wrongdoing in connection with their firm's business. The financial crisis has increased concern about a spike in securities class-action lawsuits, which could trigger more D&O claims. However, Degnan said on Thursday that such suits "trailed off dramatically" during the second half of 2008, despite a dramatic slump in equity markets. Chubb shares climbed 2.8% to $44 during after-hours trading on Thursday.
KLA-Tencor swings to quarterly loss(4:46 pm ET)
SAN FRANCISCO (MarketWatch) -- KLA Tencor (KLAC: news, chart, profile) late Thursday reported it swung to a net loss of $434.3 million, or $2.57 a share, in the second quarter from a net income of $83.9 million, or 45 cents a share, in the same quarter last year. Second-quarter results include a $435 million charge related to the aggregate impairment of goodwill and purchased intangible assets. On an adjusted basis, the company would have recorded a loss of 12 cents a share. Revenue decreased to $396.6 million from $635.8 million a year earlier, the chip equipment maker said. Analysts surveyed by FactSet Research had forecast a loss of 7 cents a share on revenue of $393.6 million.
CA fourth-quarter net income rises 29%(4:32 pm ET)
SAN FRANCISCO (MarketWatch) -- CA Inc. (CA: news, chart, profile) late Thursday reported its third-quarter net income rose to $213 million from $163 million in the same quarter last year. On a per-share basis, the company's earnings rose 29% to 40 cents from 31 cents. Excluding certain items, CA would have earned 43 cents a share. Revenue decreased to $1.04 billion from $1.1 billion a year earlier, said the business management software provider. Analysts surveyed by FactSet had forecast earnings of 37 cents a share on revenue of $1.07 billion.
PMC-Sierra reports fourth-quarter profit of 6 cents a share(4:24 pm ET)
SAN FRANCISCO (MarketWatch) -- PMC-Sierra Inc. (PMCS: news, chart, profile) late Thursday reported a fourth-quarter net income of $13.7 million, or 6 cents a share, recovering from a loss of $5.1 million, or 2 cents a share, in the same quarter last year. Excluding certain items, the company would have earned 7 cents a share. Revenue decreased to $120.8 million from $139.4 million a year earlier, the circuit and software designer said. Analysts polled by FactSet Research had forecast earnings of 5 cents a share on revenue of $122.3 million.
Chubb quarterly net income falls 37%(4:20 pm ET)
SAN FRANCISCO (MarketWatch) -- Chubb Corp. (CB: news, chart, profile) said late Thursday that fourth-quarter net income came in at $407 million, or $1.13 a share, down 37% from a year earlier when the property and casualty insurer made $650 million, or $1.68 a share. Operating income, which the company defines as net income excluding after-tax realized investment gains and losses, declined to $569 million, or $1.58 a share, from $620 million, or $1.60 a share, a year ago, Chubb reported. The insurer was expected to make $1.52 a share, according to 17 analysts surveyed by Thomson Reuters. Net written premiums for the fourth quarter were $2.9 billion, down 4%.
Juniper posts gains, but falls shy of estimates(4:14 pm ET)
SAN FRANCISCO (MarketWatch) - Network equipment maker Juniper Networks Inc. said Thursday its fourth-quarter net income rose to $132.5 million, or 25 cents a share, from $122.9 million, or 22 cents a share in the same period a year earlier. Sunnyvale, Calif.-based Juniper (JNPR: news, chart, profile) said revenue for the period ended in December rose 14% to $923.5 million. Excluding special items, Juniper said earnings for the quarter were 32 cents a share. Analysts on average have been estimating Juniper would post earnings excluding special items of 33 cents a share, and $938.3 million in revenue, according to FactSet Research.
Amazon.com reports gain in fourth-quarter earnings(4:13 pm ET)
SAN FRANCISCO (MarketWatch) -- Amazon.com reported a surprise gain in earnings for the fourth quarter amid strong sales during the crucial holiday shopping period. For the period ended Dec. 31, the online retailer (AMZN: news, chart, profile) reported earnings of $225 million, or 52 cents a share, compared to earnings of $207 million, or 48 cents a share, for the same period the previous year. Revenue grew 18% to $6.7 billion. Analysts had been looking for earnings of 40 cents a share on revenue of $6.48 billion, according to consensus estimates from FactSet Research.
Energy stocks fall into the red with oil prices(9:37 am ET)
NEW YORK (MarketWatch) -- Energy stocks fell with the broad market on Thursday as earnings updates from Occidental Petroleum (OXY: news, chart, profile) and Smith International (SII: news, chart, profile) provided no lift to the sector. Crude prices fell $1.66 to $40.50 on continued bearishness about the economy. The Amex Oil Index (XOI: news, chart, profile) fell 1.5% to 971. The Amex Natural Gas Index (XNG: news, chart, profile) dropped 1.7% to 386. Exxon Mobil (XOM: news, chart, profile) dropped 1.9% to $77.68 ahead of its earnings update on Friday. Smith International retreated 9% to $23.67. Occidental Petroleum dipped 1% to $58.76.
Chevron keeps capital spending at $22.8 billion(9:05 am ET)
NEW YORK (MarketWatch) -- Chevron Corp. (CVX: news, chart, profile) on Thursday said it plans to spend $22.8 billion on capital projects in 2009, unchanged from 2008. About three quarters of the money will go toward upstream oil and gas exploration and production projects. Another 20% will go toward downstream businesses that manufacture, transport and sell gasoline, diesel fuel and other refined products. About 10% of the budget has been set aside for large, one-time payments related to upstream production concessions outside the U.S. "Our company's financial strength enables the funding of attractive investments consistent with our long-term strategies," said Chairman and CEO Dave O'Reilly.
Ball earnings per share up 9% in quarter(8:44 am ET)
NEW YORK (MarketWatch) -- Ball Corp. (BLL: news, chart, profile) said Thursday that fourth quarter earnings were $34 million, or 36 cents a share, compared to $33 million, or 33 cents a share, in the same period a year ago. Sales were $1.73 billion compared to $1.76 billion a year ago. Analysts polled by FactSet Research estimated, on average, earnings per share of 61 cents and sales of $1.75 billion. "Because of the disciplined actions we took in 2008 and the defensive nature of our businesses in this economy, Ball is well positioned to improve diluted earnings per share performance in 2009," said Chief Executive David Hoover.
Royal Caribbean profit plunges 97%, sees weak 2009(8:23 am ET)
CHICAGO (MarketWatch) -- Royal Caribbean Cruises Ltd. (RCL: news, chart, profile) said Thursday that its fourth-quarter profit plummeted 97% in the wake of the global financial collapse, and said it anticipates "even more challenges" in 2009. The provider of luxury cruises said it earned $1.5 million, or 1 cent a share in the quarter ended Dec. 31, compared to a profit of $70.8 million, or 33 cents a share, in the same quarter a year earlier. Revenue was $1.5 billion, flat with the fourth quarter of 2007. Analysts surveyed by FactSet Research expected a profit of 7 cents a share on revenue of $1.44 billion. Royal Caribbean said it expects 2009 earnings per share of about $1.40, well short of the $1.64 average projection of respondents to FactSet's survey.
US Airways' fourth-quarter loss widens(8:18 am ET)
NEW YORK (MarketWatch) -- US Airways (LCC: news, chart, profile) said Thursday that its fourth-quarter loss widened to $541 million, or $4.74 a share, from a loss of $79 million, or 87 cents a share, in the year-ago period. Total operating revenue for the three months ended Dec. 31 slipped to $2.76 billion from $2.78 billion. Excluding items, the Tempe, Ariz., airline said it would have lost $1.93 a share. Analysts polled by FactSet Research expected, on average, a loss of $2.15 a share.
Illinois Tool Works profit falls 50%; issues Q1 warning(8:15 am ET)
NEW YORK (MarketWatch) -- Illinois Tool Works Inc. (ITW: news, chart, profile) said Thursday fourth-quarter net income fell by about half to $233.8 million, or 54 cents a share, from $470.7 million, or 82 cents a share in the year-ago period. The Glenview, Ill. industrial firm said sales dropped to $3.68 billion from $3.91 billion in the year-ago period. Wall Street analysts expected earnings of 48 cents a share on revenue of $3.67 billion, according to a survey by FactSet Research. For the first quarter, Illinois Tool Works expects earnings of 26 cents to 42 cents a share, below the analyst target of 48 cents a share.
Investment Technology Group's net falls 4%(8:14 am ET)
BOSTON (MarketWatch) -- Investment Technology Group Inc. (ITG: news, chart, profile) on Thursday said its fourth-quarter net income fell 4% from the year-earlier period to $28.7 million, or 66 cents a share. Total revenue slipped 3% to $190.1 million, the company said. Analysts had been looking for profit of 61 cents a share on revenue of $183.4 million, according to a Thomson Reuters survey.
T. Rowe profit down 87%(8:08 am ET)
NEW YORK (MarketWatch) -- T. Rowe Price Group (TROW: news, chart, profile) reported an 87% fall in fourth-quarter profits Thursday, to $24 million, or 9 cents a share, from $191 million, or 68 cents a share, in the year-ago period. The results include non-cash charges of $88.4 million related to investments in its mutual funds. Analysts surveyed by FactSet Research had estimated, on average, 27 cents a share. Assets under management dropped 20% since Sept. 30, to $276.3 billion. T. Rowe said net outflows in the fourth quarter were less than 1% of assets.
Celgene swings to 4th-qtr $149 million loss(8:00 am ET)
MADRID (MarketWatch) -- Global biopharmaceutical group Celgene Corp. (CELG: news, chart, profile) reported on Thursday that it swung to a loss of $149 million in the fourth quarter. The company lost 33 cents a share, against net income of $75 million a share, or 18 cents, in the year-earlier period. On an adjusted basis, the company earned $200 million, or 43 cents a share, against $94 million or 22 cents. Analysts polled by Thomson Reuters were expecting earnings of 42 cents a share. "We delivered impressive financial results," said Celgene Chairman and Chief Executive Officer Sol J. Barer. "We have never been more optimistic about our prospects, and we look forward to exceptional growth over the next five years, and beyond."
Consol Energy earnings zoom higher(7:56 am ET)
NEW YORK (MarketWatch) -- Consol Energy Inc. (CNX: news, chart, profile) said Thursday that fourth-quarter earnings were $176 million, or 97 cents a share, compared to $7 million, or 4 cents a share, in the same period a year ago. Sales were $1.24 billion compared to $919 million. Analysts polled by FactSet Research estimated, on average, earnings per share of 62 cents and sales of $1.24 billion for the coal and gas company.
Lear swings to fourth-quarter loss of $688 million (7:53 am ET)
LONDON (MarketWatch) -- Lear Corp. (LEA: news, chart, profile) the supplier of automotive seating systems and electronic products, said it swung to a fourth-quarter loss of $688 million, or $8.91 a share, compared to a profit of $27 million, or 34 cents a share, earned in the year-earlier quarter. Results in the latest quarter include one-time charges of nearly $600 million. Sales fell 32% to $2.6 billion, reflecting sharp drops in production in North America and Europe. The company said it had roughly $1.6 billion of liquidity at the end of the year. In the fourth quarter Lear said it chose to borrow $1.2 billion under its primary credit facility in order to protect against disruptions in the capital markets and to further bolster its liquidity position. It has yet to repay the money, which means it is no longer in compliance with the leverage ratio contained in its primary credit facility.
Occidental Petroleum net income falls by $1 billion (7:47 am ET)
NEW YORK (MarketWatch) -- Occidental Petroleum (OXY: news, chart, profile) on Thursday said fourth-quarter net income fell 70% to $443 million, or 55 cents a share, from $1.45 billion ,or $1.74 a share in the year-ago period. Core profit fell to $1.18 a share from $1.76 a share. Sales dropped to $4.02 billion from $5.5 billion. Analysts expected earnings of $1.06 a share on revenue of $4.2 billion, according to a survey by FactSet Research. The Los Angeles-based oil and gas exploration and production company plans to spend $3.5 billion on capital projects in 2009. "We believe that with this level of capital, we will achieve our targeted returns in the current price environment as well as grow our production volumes in 2009, 2010 and beyond," the company said.
L-3 Communications' net rises, but cuts outlook(7:45 am ET)
BOSTON (MarketWatch) -- L-3 Communications (LLL: news, chart, profile) on Thursday said its fourth-quarter net income rose to $2.21 a share, including a gain of 17 cents from a business divestiture, from $1.63 a share in the year-ago quarter. Wall Street analysts polled by Thomson Reuters had forecast profit of $1.94 a share. The provider of communication systems, aviation products and support services lowered its 2009 outlook. It now sees full-year profit in the range of $7.12 to $7.32 a share, down from its previous estimate of $7.30 to $7.50 a share.
3M Profit falls 37%(7:43 am ET)
NEW YORK (MarketWatch) -- 3M (MMM: news, chart, profile) said Thursday that its fourth-quarter profit fell 37% to $536 million, or 77 cents a share, from $851 million, or $1.17 a share in the fourth quarter of 2007. Excluding special items, fourth-quarter profit was down 21.7% from the year-ago, to $676 million, or 97 cents a share, compare to $863 million, or $1.19 a share, in 2007. Analysts surveyed by FactSet Research expected, on average, profit of 94 cents a share. Analyst predictions typically exclude special items. Fourth-quarter sales were $5.5 billion, a decrease of 11.2%.
Black & Decker earnings per share down 75%(7:42 am ET)
NEW YORK (MarketWatch) -- The Black & Decker Corp. (BDK: news, chart, profile) said Thursday that it earned $44 million in the fourth quarter, or 73 cents a share, compared to $184 million, or $2.94, in the same period a year ago. Sales were $1.38 billion compared to $1.65 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 68 cents and sales of $1.40 billion. Black & Decker sees first-quarter earnings per share of 5 cents to 15 cents and full-year 2009 earnings of $1.75 to $2.25 a share.
AEP posts lower fourth-quarter profit, reaffirms 2009 view(7:39 am ET)
NEW YORK (MarketWatch) -- American Electric Power Co. (AEP: news, chart, profile) said Thursday that fourth-quarter net income for the three months ended Dec. 31 fell to $152 million, or 38 cents a share, from $231 million, or 58 cents a share, in the year-ago period. Ongoing earnings for the Columbus, Ohio, power plant operator rose to 59 cents a share from 52 cents a share in the year-ago period. On average, analysts polled by FactSet Research expected earnings of 52 cents a share. Revenue increased to $3.5 billion from $3.3 billion. AEP reaffirmed its 2009 ongoing earnings forecast of $3.00 to $3.40 a share. Analysts are looking for $3.21 a share.
Continental Airlines 4th-qtr net loss widens to $233 million(7:38 am ET)
MADRID (MarketWatch) -- Continental Airlines Inc. (CAL: news, chart, profile) on Thursday said its fourth-quarter net loss widened to $266 million, or $2.33 a share against $32 million or 33 cents a share, hurt by weakening economic conditions and "highly volatile" fuel prices. Revenue was $3.47 billion, against $3.5 billion. Excluding net charges of $170 million, Continental recorded a fourth-quarter net loss of $96 million, or 84 cents per share. A survey of analysts by Thomson Reuters was expecting the company to report fourth-quarter earnings of 89 cents a share. "While there are continuing hard times ahead, thanks to our team, we are well-positioned to maintain our place as an industry leader," said Larry Kellner, Continental's chairman and chief executive officer.
Dominion Resources profit rises 16%(7:34 am ET)
NEW YORK (MarketWatch) -- Dominion Resources Inc. (D: news, chart, profile) said fourth-quarter net income rose to $348 million, or 60 cents a share, from $299 million, or 52 cents a share in the year-ago period. Operating earnings rose to 72 cents a share from 52 cents a share. Revenue increased to $4.17 billion from $3.65 billion. Wall Street analysts expected earnings of 68 cents a share and revenue of $4.03 billion, according to a survey of by FactSet Research. The Richmond, Va. power company expects 2009 operating earnings earnings of $3.20 to $3.30 a share, compared to the Wall Street target of $3.27 a share.
Colgate profit rises 20%(7:31 am ET)
NEW YORK (MarketWatch) -- Colgate-Palmolive Co. (CL: news, chart, profile) said Thursday that its fourth-quarter profit rose 20% over the year-ago period, to $497 million, or 94 cents a share, from $414.9 million, or 77 cents a share in 2007. Colgate said that excluding restructuring charges, profit rose 7% to $527.5 million, or $1 a share -- a record. Analysts surveyed by FactSet Research had estimated, on average, profit excluding charges of 97 cents a share. In fourth quarter of 2007, profit excluding charges was $490.7 million, or 91 cents a share. Colgate attributed the rising profit to organic sales growth of 9%, new product launches and "aggressive" cost-cutting.
Xcel Energy's fourth-quarter profit rose 22%(7:29 am ET)
LONDON (MarketWatch) -- Power firm Xcel Energy, Inc. (XEL: news, chart, profile) said fourth-quarter net income rose 22% to $164.1 million, or 36 cents a share, from $134 million, or 31 cents a share, earned in the year-earlier quarter. Earnings from continuing operations came in at 35 cents a share compared to 30 cents a share a year earlier. The consensus forecast was for earnings of 37 cents a share. Sales rose 3% to $1.98 billion. The company reaffirmed its guidance for 2009 earnings in the range of $1.45 to $1.55 a share.
Zimmer earnings per share fall 33%(7:26 am ET)
NEW YORK (MarketWatch) -- Zimmer Holdings Inc. (ZMH: news, chart, profile) said Thursday that it earned $168 million, or 75 cents a share, in the fourth quarter compared to $264 million, or $1.12, in the same period a year ago. Adjusted earnings per share were $1.00. Sales in the period were $1.03 billion, compared to $1.07 billion a year ago. Analysts polled by FactSet Research estimated, on average, earnings per share of 99 cents and sales of $1.09 billion. For 2009 the orthopedic-device maker expects revenue to increase by 1% to 3%.
AutoNation 4th-quarter net up 30%, sales down 34%(7:22 am ET)
TEL AVIV (MarketWatch) -- AutoNation Inc., (AN: news, chart, profile) the Fort Lauderdale, Fla., car retailer, reported fourth-quarter net income rose 30% on 34% lower revenue. Net income was $67.1 million, or 38 cents a share, compared with $51.7 million, or 28 cents, in the year-earlier. Shares outstanding fell 37% to 176.8 million. Earnings from continuing operations were 40 cents a share against 28 cents. Adjusted net from continuing operations in the latest quarter was 12 cents a share. Revenue fell to $2.74 billion from $4.14 billion. A survey of analysts by FactSet Research produced a consensus estimate of 12 cents a share of profit on $3.09 billion of revenue. The quarter was hurt "by the credit panic triggered on Sept. 15 by the bankruptcy of Lehman Brothers," Chairman and Chief Executive Mike Jackson said in a statement on Thursday. "Automotive retail sales collapsed from one day to the next as credit for our customers was withdrawn from the market. This panic continued to erode consumer confidence and accelerated the decline in the U.S. economy and the auto retail market."