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Wednesday, Feb. 4
Sunoco swings to profit on big gains in fuel margins (5:19 pm ET)
SAN FRANCISCO (MarketWatch) -- Independent oil refiner Sunoco (SUN: news, chart, profile) reported late Wednesday a big jump in profit from its gasoline, diesel and heating oil retail business led to fourth-quarter net income of $204 million, or $1.74 a share, reversing a loss in the year-ago period of $9 million, or 8 cents a share. Revenue for the three months ended Dec. 31 fell to $9.14 billion from $13.16 billion. Analysts surveyed by FactSet Research ad predicted the Philadelphia-based company would earn $1.93 a share. Sunoco shares rose 22 cents ahead of the report to close at $44.91.
EOG Resources quarterly profit rises to $1.84 a share(5:12 pm ET)
SAN FRANCISCO (MarketWatch) -- EOG Resources Inc. (EOG: news, chart, profile) late Wednesday reported its fourth-quarter net income rose to $461.5 million, or $1.84 a share, from $358 million, or $1.44 a share, in the same quarter last year. The latest quarter results include a previously disclosed $1.36 a share net gain on the mark-to-market of financial commodity transactions. Operating revenue increased to $1.63 billion from $1.29 billion a year earlier, the oil and natural gas company said. Analysts had forecast earnings of $1.25 a share on revenue of $1.34 billion.
Visa quarterly net income rises 35%(4:53 pm ET)
SAN FRANCISCO (MarketWatch) -- Visa Inc. (V: news, chart, profile) said late Wednesday that fiscal first-quarter net income came in at $574 million, or 74 cents per class A share, up 35% from a year earlier when the payment card giant made $424 million, or 55 cents a share. Visa's share structure was different this time last year because the company wasn't public yet. Adjusted for the effect of taxes, restructuring and purchase amortization, Visa said net income for the lastest quarter was $599 million, or 78 cents per class A common share. Visa was expected to make 67 cents a share, according to the average estimate of 19 analysts in a FactSet Research survey. Net operating revenue in the fiscal first quarter was $1.7 billion, up 17% from the same period a year ago, Visa also reported. Chief Executive Joseph Saunders said the company will be able to meet its target for earnings per share in 2009.
THQ swings to loss in third fiscal quarter(4:39 pm ET)
SAN FRANCISCO (MarketWatch) -- THQ Inc. swung to a loss for the third fiscal quarter as video game sales dropped and the company took big charges for write-downs. For the period ended Dec. 31, the video game publisher (THQI: news, chart, profile) reported a net loss of $191.8 million, or $2.86 a share, compared to earnings of $15.5 million, or 23 cents a share, for the same period last year. Excluding certain charges, the company said it would have lost $9.6 million, or 14 cents a share, for the recent period. Revenue fell 30% to $357.3 million. The company reported non-GAAP revenue of $385.6 million. Analysts were expecting earnings of 7 cents a share on revenue of $403.4 million, according to consensus estimates from Thomson Reuters.
Prudential reports quarterly net loss of $1.64 billion(4:37 pm ET)
SAN FRANCISCO (MarketWatch) -- Prudential Financial (PRU: news, chart, profile) said late Wednesday that it lost $1.64 billion, or $3.85 per common share, in the fourth-quarter of 2008. That compares to net income of $792 million, or $1.75 per common share, a year earlier. The insurer reported an operating loss of $878 million, or $2.04 per common share, in the latest quarter. Prudential was expected to lose $1.20 a share, according to the average estimate of 16 analysts in a FactSet Research survey.
Novellus Systems swings to $130.3 million loss(4:20 pm ET)
SAN FRANCISCO (MarketWatch) -- Novellus Systems Inc. (NVLS: news, chart, profile) on Wednesday reported a fourth-quarter loss of $130.3 million, or $1.36 a share, compared to a profit of $52.9 million, or 47 cents a share, during the same period a year ago. The chip-equipment maker said its sales slumped to $188.5 million, down more than 48% from the prior-year's revenue of $363.5 million. Excluding one-time items, Novellus said it would have lost $20 million, or 21 cents a share. Analysts surveyed by FactSet Research had forecast Novellus to lost 17 cents a share on $189 million in sales.
BMC Software sees sales increase, raises guidance(4:16 pm ET)
SAN FRANCISCO (MarketWatch) - BMC Software Inc. on Wednesday said its fiscal third-quarter net income remained flat at $83.8 million, or 45 cents a share, compared to $84 million, or 42 cents a share in the same period a year earlier. Revenue for the period ended in December rose more than 6% to $488.4 million. Excluding special items, BMC (BMC: news, chart, profile) said earnings for the quarter were 64 cents a share. Analysts polled by Thomson Reuters had estimated the business software maker would post earnings excluding special items of 59 cents a share, on $487.6 million in revenue. Houston-based BMC said it's raising guidance for earnings excluding items for the full fiscal year, to between $2.20 and $2.30 a share.
CORRECT: Snap-on 4Q net earnings up 2.2%, but sees tough 1Q(1:14 pm ET)
MADRID (MarketWatch) -- Tool maker Snap-on Inc. (SNA: news, chart, profile) reported on Wednesday that fourth-quarter net earnings rose 2.2% even as customer demand weakened in the period. For the quarter, earnings rose to $58.6 million, or $1.01 per diluted share, from $57.3 million, or 98 cents a share, in the year-earlier period. A survey of analysts by FactSet Research produced a consensus estimate of 98 cents a share of profit. Net sales for the group fell 10% to $667.8 million against $742.9 million a year ago, due to unfavorable currency translation, the company said. Nick Pinchuk, Snap-on's president and chief executive officer, said weaker demand in the quarter particularly affected sales of big ticket items. The company said it expects no change in the tough economic environment and as a result, expects sales and credit originations in the first quarter of 2009 to be down on an annual basis. It anticipates $3 million per quarter of higher year-over-year pension expenses and $8 million of unfavorable foreign exchange impact on first quarter operating earnings. (Corrects to show earnings rose 2.2% from a year ago.)
Time Warner CFO: Time Inc. print ad sales down worse than 4Q(11:23 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc.'s (TWX: news, chart, profile) publishing unit Time Inc. is seeing advertising sales that are down more than the 22% year-over-year decline that occurred in the fourth quarter, Chief Financial Officer John Martin said Wednesday. "While the year-over-year comparisons will clearly improve as we move ahead ... we really can't predict at this time when the environment is going to begin to look better." The unit is still expected to benefit from $175 million in cost savings associated with a restructuring, Martin said during a conference call.
Time Warner CFO: Soft DVD trend expected to continue(11:07 am ET)
CHICAGO (MarketWatch) -- Echoing concerns expressed by Walt Disney Co. (DIS: news, chart, profile) on Tuesday, Time Warner Inc. (TWX: news, chart, profile) Chief Financial Officer John Martin told analysts Wednesday that the company's film and television studios "remain cautious" about the current trend toward weakness in DVD sales, particularly sales of catalog titles. "We expect the [DVD] industry to stay challenged as long as there is broader softness in consumer spending and retail," he said during a conference call. In the first quarter, the studios face difficult comparisons with a prior-year period that included 13 major home entertainment releases. There will only be five important home video releases in this year's March quarter, Martin said.
Time Warner CFO: Turner ad sales seen flat with 1Q '07(10:59 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Financial Officer John Martin said Wednesday that the company expects first-quarter advertising sales at the Turner cable networks to be about flat with sales in the same quarter a year ago. Currently, ad sales at such networks as TNT, TBS Superstation, CNN and Cartoon Network are reflecting "limited volume," Martin said during a conference call, "with rates flat to slightly ahead of prices charged in advance last spring. The channels also face difficult comparisons with a prior-year quarter that was particularly strong, with ad revenue up 13%.
Energy stocks gain ahead of weekly petroleum inventory data(9:38 am ET)
NEW YORK (MarketWatch) -- Energy stocks rose along with crude prices, ahead of key weekly petroleum inventory data due out during the session on Wednesday. The Amex Oil Index (XOI: news, chart, profile) rose 0.6% to 948. The Amex Natural Gas Index (XNG: news, chart, profile) rose 1.1% to 384. Crude prices rose 95 cents to $41.73.
Tudor Pickering Holt cuts Devon Energy rating to hold(9:14 am ET)
NEW YORK (MarketWatch) -- Analysts at Houston energy research firm Tudor Pickering Holt on Wednesday downgraded shares of Devon Energy (DVN: news, chart, profile) to hold from accumulate after the natural gas and oil producer's fourth-quarter results. "Swap your large cap exploration and production dollars to Anadarko (APC: news, chart, profile) , Noble Energy (NBL: news, chart, profile) ," analysts said in a note to clients. "Devon has underperformed, will continue to do so on painfully bad reserve revisions." Analysts said they hope to get more forecasts from Devon on its capital spending and production on a conference call later on Wednesday.
Allergan posts lower earnings, plans to lay off 5% of staff(9:15 am ET)
NEW YORK (MarketWatch) -- Allergan Inc. (AGN: news, chart, profile) said Wednesday its fourth-quarter profit totaled $151 million, or 50 cents a share, from $160 million, or 52 cents a share, in the same quarter a year before. Adjusted earnings for the recent quarter were 76 cents a share. Analysts had expected earnings on average of 72 cents a share, according to a FactSet Research survey. Revenue for the quarter was $1.06 billion compared to $1.09 billion in the year-ago period. The Irvine, Calif. company also said it will lay off approximately 460 employees, or about 5% of its global workforce, primarily in the U.S. and Europe. The biotech firm said the restructuring will result in pre-tax charges of between $110 million and $117 million. For the first quarter of 2009, Allergan estimates adjusted diluted earnings at 50 cents to 52 cents a share, with $2.69 to $2.75 a share expected for all of 2009. Allergan shares were 5% lower in pre-market trade following the announcements.
Clorox earnings per share fall 4.6% in quarter(8:44 am ET)
NEW YORK (MarketWatch) -- The Clorox Co. (CLX: news, chart, profile) said Wednesday that second-quarter earnings were $86 million, or 62 cents a share, compared to $92 million, or 65 cents a share, in the same period a year ago. Sales were $1.22 billion, compared to $1.19 billion. Analysts polled by Fact Set Research estimated, on average, earnings per share of 59 cents and sales of $1.24 billion. For 2009, Clorox affirmed earnings-per-share guidance of $3.60 to $3.75 and sales growth of 3% to 5%.
Kodak forecasts modest improvement in late 2009(8:40 am ET)
NEW YORK (MarketWatch) -- Eastman Kodak (EK: news, chart, profile) on Wednesday said it expects 2009 revenue to fall 12% to 18%, while the hard-hit imaging company held out hope for a modest improvement in the second half of the year. Kodak said it's planning to be a smaller more profitable company in 2009. "The performance of our digital portfolio is strong and Kodak's balance sheet is solid," said Antonio M. Perez, Chairman and Chief Executive Officer. "But we see no immediate signs of economic recovery, so we are taking steps to address this by focusing investment in our core digital technologies, optimizing our portfolio of cash-generating businesses, and restructuring the company to further reduce our cost structure."
Diebold swings to fourth-quarter profit(8:38 am ET)
NEW YORK (MarketWatch) -- Diebold Inc. (DBD: news, chart, profile) said Wednesday that it swung to a fourth-quarter profit of $5.94 million, or 9 cents a share, from a loss of $10.1 million, or 15 cents a share, in the same period a year ago. Adjusted earnings from continuing operations were 40 cents, down 40% from the year-earlier period. Revenue at the North Canton, Ohio-based maker of ATMs and security equipment fell to $823 million from $880 million. Diebold said it expects full-year 2009 earnings of $2.07 to $2.36 a share. On an adjusted basis, it sees earnings of $2.10 to $2.40 a share.
Polo Ralph Lauren profit off; fiscal 2009 outlook cut(8:26 am ET)
TEL AVIV (MarketWatch) -- Polo Ralph Lauren Corp., (RL: news, chart, profile) the New York designer of clothing and accessories as well as household products, reported that fiscal third-quarter net income fell 7.1% on 1% lower revenue, and it cut its estimates for the full fiscal year. For the quarter ended Dec. 27, the company earned $105 million, or $1.05 a share, compared with $113 million, or $1.08, in the year-earlier quarter. Revenue edged down to $1.25 billion from $1.27 billion. A survey of analysts by FactSet Research produced consensus estimates of 87 cents a share of profit on $1.26 billion of revenue. "We expect weak consumer spending to be a meaningful headwind for the foreseeable future," said President and Chief Operating Officer Roger Farah in a statement on Wednesday. Retail sales fell 7% to $547 million, reflecting 13.5% lower comparable-store sales. Sales at wholesale rose 5% to $655 million. For fiscal 2009, the company cut its estimate of earnings to a range of $3.85 to $4 a share from the previous outlook of $4 to $4.10. Revenue should range from level with to down low-single-digits percent from fiscal 2008, Polo Ralph Lauren estimated. It previously had expected an increase of low single digits percent.
National Oilwell Varco net income rises 55%(8:13 am ET)
NEW YORK (MarketWatch) -- National Oilwell Varco (NOV: news, chart, profile) said Wednesday fourth-quarter net income rose 55% to $585 million, or $1.40 per share, from $376.7 million, or $1.05 a share in the year-ago period. Results for the latest quarter include pre-tax charges of 4 cents a share for its April 2008 merger with Grant Prideco, Inc. Excluding the transaction charges, earnings were $1.44 per fully diluted share. Revenue rose to $3.8 billion from $2.66 billion. Wall Street analysts expected the company to earn $1.33 a share on revenue of $3.77 billion, according to a survey by FactSet Research. "While near term economic conditions are challenging, we enter 2009 with a healthy backlog of equipment and technology to deliver to our customers, and a balance sheet with considerably more cash than debt," the Houston based oil services firm said. "We believe that the oil and gas industry's challenge to replace depleting reserves will require upgrading the world's rig fleet, and we look forward to continuing to help our customers retool their rigs after years of underinvestment."
Ryder income sinks amid restructuring charges(8:10 am ET)
NEW YORK (MarketWatch) -- Ryder System Inc. (R: news, chart, profile) said Wednesday its fourth-quarter profit totaled $10.6 million, or 19 cents a share, from $71.9 million, or $1.24 a share, in the same quarter a year before. The result included restructuring and other one-time charges of 90 cents a share, making adjusted earnings $1.09 a share. Analysts had expected adjusted earnings on average of $1.03 a share, according to a FactSet Research survey. Revenue for the quarter was $1.37 billion compared to $1.67 billion in the year-ago period. Ryder said it forecasts full-year 2009 earnings to be in the range of $2.60 to $3.30 per share.
Devon Energy swings to $6.8 billion loss on non-cash charge(8:06 am ET)
NEW YORK (MarketWatch) -- Devon Energy Corp. (DVN: news, chart, profile) on Wednesday said it lost $6.8 billion, or $15.42 a share in its fourth quarter, compared to earnings of $1.3 billion or, $2.92 a share in the year-ago period. The latest period includes a $7.1 billion non-cash, after-tax reduction in the carrying value of the Oklahoma City company's oil and gas properties. Adjusted earnings for the fourth quarter totaled $297 million, or 67 cents a share. Revenue fell to $2.7 billion from $3.2 billion in the year-ago period. Wall Street analysts expected earnings of $1.19 a share on revenue of $3.04 billion, according to a survey by FactSet Research.
Goodrich net and sales up; 2009 estimates reduced(7:55 am ET)
TEL AVIV (MarketWatch) -- Goodrich Corp., (GR: news, chart, profile) the Charlotte, N.C., supplier of systems and services for aerospace and defense, reported fourth-quarter earnings rose 29% on 1.6% higher sales, and it cut its expectations for 2009 sales and earnings. Earnings reached $168.7 million, or $1.35 a share, from $131.2 million, or $1.03, in the year-earlier quarter. Shares outstanding fell 24% to 124.6 million. Sales reached $1.7 billion from $1.67 billion. A survey of analysts by FactSet Research produced consensus estimates of $1.01 of profit on sales of $1.72 billion. The operating-profit margin widened to 16.3% from 15.8%. For 2009, Goodrich expects to earn $4.50 to $4.90 a share, compared with its previous estimate of $5.05 to $5.25. The new view reflects updated estimates of pension expense plus "the uncertainty of the global economic environment," the company said. Sales for 2009 should come in at $7.1 billion to $7.2 billion. Sales for 2008 totaled $7.06 billion. FactSet's survey for 2009 had been looking for $4.85 a share.
Sara Lee swings to 2 cents-a-share loss in quarter(7:45 am ET)
NEW YORK (MarketWatch) -- Sara Lee Corp. (SLE: news, chart, profile) said Wednesday that it lost $17 million, or 2 cents a share, in the second quarter. In the same period last year, Sara Lee earned $182 million, or 25 cents a share. Net sales were $3.34 billion, compared to $3.41 billion. Excluding items, earnings per share were 21 cents compared to 22 cents last year. Analysts polled by FactSet Research estimated, on average, earnings per share of 22 cents and sales of $3.44 billion. Sara Lee expects full-year fiscal 2009 earnings per share in the range of 72 cents to 79 cents.
Lazard fourth-quarter profit plummets(7:39 am ET)
NEW YORK (MarketWatch) -- Lazard Ltd. (LAZ: news, chart, profile) reported Wednesday a steep fall in its fourth-quarter net income to $38 million, or 50 cents a share, from $59.1 million, or $1.04 a share, for the fourth quarter of 2007. Net revenue fell to $375.9 million, from $585.1 million in the year-ago period. "Our financial position remains strong," said Michael Castellano, chief financial officer. He said the firm had $1 billion in cash and marketable stocks on Dec. 31, and will invest in growth areas of the businesses. Castellano said that job cuts will create a pre-tax charge of $60 million in the first quarter.
NiSource quarterly profit rises, beats expectations(7:33 am ET)
NEW YORK (MarketWatch) -- NiSource Inc. (NI: news, chart, profile) said Wednesday its fourth-quarter profit totaled $162 million, or 59 cents a share, from $67 million, or 24 cents a share, in the same quarter a year before. Analysts had expected earnings on average of 44 cents a share, according to a FactSet Research survey, which was below the actual adjusted earnings of 46 cents a share. Revenue for the quarter was $2.39 billion compared to $2.21 billion in the year-ago period. The gas distributor said it plans to take steps to reduce its total projected 2009 financing requirements from nearly $1 billion to approximately $500 million, with steps including debt repurchases and a reduction in capital spending. NiSource expects basic earnings per share from continuing operations for 2009 to be at $1.00 to $1.10.
PPL earnings fall in quarter to 74 cents a share(7:27 am ET)
NEW YORK (MarketWatch) -- PPL Corp. (PPL: news, chart, profile) said Wednesday that fourth-quarter earnings were $277 million, or 74 cents a share, compared to $418 million, or $1.11 a share, in the same period a year ago. Excluding items operating earnings were 46 cents a share. Operating revenue was $1.00 billion compared to $1.04 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 46 cents. PPL reaffirmed its 2009 forecast for earnings per share of $1.60 to $1.90.
Windstream net off after year-earlier gain; meets estimate(7:25 am ET)
TEL AVIV (MarketWatch) -- Windstream Corp., (WIN: news, chart, profile) the Little Rock, Ark., provider of phone, Internet and other services to 16 states, reported that fourth-quarter net income fell 86% on 4.8% lower revenue. Earnings were $81.2 million, or 19 cents a share, compared with $583.6 million, or $1.25, in the year-earlier period. Special items cut 6 cents from the latest per-share profit. The year-ago figure reflected a $451 million gain on the sale of the directory-publishing business. Revenue fell to $777.5 million from $816.7 million. A survey of analysts by FactSet Research produced a consensus estimate of 25 cents of profit.
Fidelity National narrows fourth-quarter loss(7:25 am ET)
NEW YORK (MarketWatch) -- Fidelity National Financial (FNF: news, chart, profile) said Wednesday that its fourth-quarter loss narrowed to $1.7 million, or 1 cent a share, from the year-earlier loss of $44.9 million, or 21 cents a share. Excluding the impact of Commonwealth Land Title, Lawyers Title and United Capital Title from their acquisition date of Dec. 22, net earnings would have been $1.2 million, or 1 cent a share, the company said. On average, analysts surveyed by FactSet Research were looking for a loss of 2 cents a share. Revenue at title insurer declined to $1.02 billion from $1.30 billion.
ITT keeps outlook as profit rises to $1.02 a share(7:20 am ET)
NEW YORK (MarketWatch) -- ITT Corp. (ITT: news, chart, profile) said Wednesday its fourth-quarter profit totaled $186 million, or $1.02 a share, from $158 million, or 86 cents a share, in the same quarter a year before. Excluding one-time charges and discontinued operations, earnings were 82 cents a share. Analysts had expected earnings on average of 76 cents a share, according to a FactSet Research survey. The technology conglomerate's revenue for the quarter was $2.95 billion compared to $2.53 billion in the year-ago period. ITT Chief Executive and Chairman Steve Loranger said that the company is keeping its 2009 earnings outlook of $3.60 to $4.00 a share and that "while the challenges that lie ahead are significant, we believe our leaders are taking the necessary actions to best position the company for these difficult times."
Wolverine World Wide profit down 5.8%(6:39 am ET)
LONDON (MarketWatch) -- Wolverine World Wide Inc. (WWW: news, chart, profile) said Wednesday that its fourth quarter net profit slipped 5.8% to $24.1 million from $25.6 million. Earnings per share for the quarter were flat at 49 cents a share and revenue fell 3.2% to $346.1 million. Analysts polled by FactSet had been expecting the group to report earnings of 44 cents a share on revenue of $343.7 million. The footwear manufacturer, whose brands include Merrell and Hush Puppies, said it expects more challenging trading conditions and comparisons in the first half of 2009 and is forecasting earnings per share of $1.50 to $1.70 for 2009.