Earning Plays

[3xBuBu]

Monday, March 2
Virgin Megastores likely to shut N. America business: WSJ(7:25 pm ET)
NEW YORK (MarketWatch) -- Entertainment retail chain Virgin Megastores is "very likely" to close all of its North American stores by the summer, according to a Wall Street Journal interview with Chief Executive Simon Wright. Wright said the chain, owned by Vornado Realty Trust (VNO: news, chart, profile) since 2007, will certainly close its iconic Times Square flagship store and two other locations this spring. Virgin Megastores, which are not related to the Virgin Records label, currently has around 1,000 employees, all of whom are likely to be let go, the report quoted Wright as saying. He said the ongoing decline in recorded-music sales was a factor, but not a central one, in the decision to close down, according to the report.
MBIA fourth-quarter loss narrows to $5.30 a share (5:54 pm ET)
SAN FRANCISCO (MarketWatch) -- MBIA (MBI: news, chart, profile) late Monday reported its fourth-quarter net loss narrowed to $1.2 billion, or $5.30 a share, from a loss of $2.3 billion, or $18.55 a share, in the same quarter a year earlier. The quarterly loss was primarily driven by a $1.7 billion pre-tax unrealized net loss on insured derivatives and a $534 million pre-tax net realized loss on insured derivatives, the bond insurer said.
Utilities index flat as power firms resist sell-off(11:08 am ET)
NEW YORK (MarketWatch) -- The Dow Jones Utilities Average (DJU: news, chart, profile) rose fractionally to 324 as it resisted the big sell-off in the broad stock market on Monday. Among utility names, Exelon (EXC: news, chart, profile) rose 0.4% to $47.40. Pepco Holdings (POM: news, chart, profile) rose 0.6% to $15.09. Edison International (EIX: news, chart, profile) added a penny to $27.23. NRG Energy (NRG: news, chart, profile) dropped 1.6% to $18.60. Reliant Energy (RRI: news, chart, profile) fell 6.5% to $3.23.
Volkswagen 2008 profit rose 15%, earnings to fall in 2009(10:09 am ET)
LONDON (MarketWatch) -- German carmaker Volkswagen AG (DE:VOW: news, chart, profile) on Monday posted a 15% increase in 2008 profit to 4.75 billion euros. Sales climbed 4.5% to 113.8 billion euros. Deliveries rose 1.1% to 6.3 million vehicles. The group said sales in 2009 would be lower than in 2008 because of a decline in volumes. It cautioned that rising refinancing costs and a worsening in the country mix will serve as an additional drag on earnings. The group it can't make a reliable forecast for the year because of the high volatility but predicted earnings would be lower than in previous years.
Energy stocks retreat with broad market(9:38 am ET)
NEW YORK (MarketWatch) -- Energy stocks fell across the board on fresh prospects for a weak economy on the heels of the latest bailout effort for American International Group (AIG: news, chart, profile) on Monday. The Amex Oil Index (XOI: news, chart, profile) dropped 2.9% to 802. The Amex Natural Gas Index (XNG: news, chart, profile) fell 2.8% to 320. Sector leader Exxon Mobil (XOM: news, chart, profile) dropped 2.2% to $66.39. Crude prices retreated $2.76 to $42 a barrel, but natural gas prices ticked up 8 cents to $4.27. The Dow Jones Industrial Average ($DJ: news, chart, profile) fell 1.9% to 6,931, its lowest level since late 1997.
Nortel sees net losses grow on charges, drop in sales(9:35 am ET)
SAN FRANCISCO (MarketWatch) -- Nortel Networks Corp. (NT: news, chart, profile) said Monday morning that net losses grew during the fourth fiscal quarter on a big non-cash write-down charge as well as a decline in sales. For the period ended Dec. 31, Nortel said it lost $2.1 billion, or $4.28 per share, compared to a loss of $844 million, or $1.70 per share, for the same period last year. The company said the net loss included a non-cash write-down of goodwill of $1.2 billion and a non-cash charge of $951 million to increase the valuation allowance against deferred tax assets. Revenue fell 16% to $2.7 billion.
Marshall & Ilsley's fourth-quarter loss grows on charge(8:56 am ET)
BOSTON (MarketWatch) -- Marshall & Ilsley Corp. (MI: news, chart, profile) on Monday revised its fourth-quarter financial results to reflect a noncash goodwill impairment charge that resulted from the decline in its stock price. The Milwaukee-based bank reported a revised 2008 fourth quarter net loss of $1.9 billion, or $7.25 per share, and had initially announced a net loss of $404 million, or $1.55 a share. "The goodwill impairment charge was driven by the decline in M&I's stock price and the deteriorating economy," said Chief Financial Officer Greg Smith. "This noncash charge had no impact on the company's cash flow or liquidity and has a negligible impact on regulatory and tangible capital ratios." Shares of the company were off 66% year to date through Friday's close.
Conseco delays 10-K, announces preliminary quarterly loss(8:53 am ET)
NEW YORK (MarketWatch) -- Conseco Inc. (CNO: news, chart, profile) said Monday that it will delay filing its annual report on Form 10-K until on or before March 17, saying it needs more time to finalize the analysis and disclosure related to its investment portfolio. The insurer said its independent accounting firm needs more information to satisfy concerns about liquidity and debt covenant margins. The company released preliminary fourth-quarter results, which included a net loss applicable to common stock of $406.8 million, compared to the year-earlier $71.5 million. On a per-share basis, the preliminary net loss was $2.20 in the period, including $2.46 of net realized investment losses, valuation allowance for deferred tax assets and losses related to discontinued operations.
Pepco Holdings net income climbs 18%(8:54 am ET)
NEW YORK (MarketWatch) -- Pepco Holdings Inc. (POM: news, chart, profile) said fourth-quarter net income rose to $67 million, or 32 cents a share, from $57 million, or 29 cents a share in the year-ago period. Analysts expected earnings of 30 cents a share, according to a survey by FactSet Research. Operating revenue at the utility operator rose to $1.23 billion from $1.21 billion. The company attributed its higher earnings to the impact of the District of Columbia distribution base rate, lower operation and maintenance expenses, and higher transmission rates. Earnings at its Conectiv Energy unit decreased primarily due to lower generation output, lower spark spreads, and a lower of cost or market adjustment to oil inventory. At Pepco Energy Services, higher capacity-related charges led to lower earnings. Favorable income tax adjustments impacted each of the operating businesses.
Edison International net income up 3%(8:38 am ET)
NEW YORK (MarketWatch) - Edison International (EIX: news, chart, profile) said Monday fourth-quarter net income rose about 3% to $217 million, or 66 cents a share, from $211 million, or 64 cents a share in the year-ago period. Core earnings rose to 66 cents a share from 65 cents a share. The Rosemead, Calif. company's Southern California Edison unit reported a rise in net income to 43 cents a share from 37 cents a share while its Edison Mission Group unit reported a dip in net income to 25 cents a share from 30 cents a share. Operating revenue rose to $3.2 billion from $3.1 billion. Analysts expected earnings of 67 cents a share, according to a survey by FactSet Research.
Wendy's/Arby's loses 84 cents a share in quarter(8:20 am ET)
NEW YORK (MarketWatch) -- Wendy's/Arby's Group Inc. (WEN: news, chart, profile) said Monday that it lost $393 million, or 84 cents a share, in the fourth quarter. Losses were the result of after-tax special items totaling $417.9 million and the effect of the merger between Triarc Cos. Inc. and Wendy's, which was completed on Sept. 29, 2008. In the same period a year ago the fast-food company earned $33 million, or 33 cents a share. Systemwide, same-store sales rose 3.7% in the period. Revenue rose to $897 million compared to $321 million. Analysts polled by FactSet Research estimated, on average, sales of $914 million.
Sirius XM Radio to file annual report by March 17(8:12 am ET)
NEW YORK (MarketWatch) -- Sirius XM Radio (SIRI: news, chart, profile) said Monday it's postponing the filing of its 10-K for 2008, but will complete the annual report by March 17. The New York-based satellite radio company said senior management has been focused on recent refinancing transactions and needs additional time to complete the 10-K.
Chesapeake cuts back production, forecasts market 'balance'(7:09 am ET)
NEW YORK (MarketWatch) -- Chesapeake Energy Corp. (CHK: news, chart, profile) said Monday it'll curtail about 240 million cubic feet of natural gas equivalent per day, or about 7% of its gross natural gas and oil production due to low wellhead prices. Chesapeake granted Plains Exploration (PXP: news, chart, profile) a one-time option to avoid paying the last $800 million of PXP's $1.65 billion drilling carry obligation to Chesapeake, which represents approximately 25% of the original joint venture transaction consideration. Looking ahead, Chesapeake forecasts that production cuts in the natural gas business will allow natural gas markets to "regain better supply/demand balance by the end of 2009, if not sooner."
AIG reports fourth-quarter loss of over $61 billion(6:25 am ET)
LONDON (MarketWatch) -- American International Group (AIG: news, chart, profile) , the New York insurer which separately received a new rescue package from the U.S. government on Monday, said its fourth-quarter loss widened to $61.66 billion, or $22.95 a share, from the $5.29 billion loss in the year-earlier period. Continued severe credit market deterioration, particularly in commercial mortgage-backed securities, and charges related to ongoing restructuring-related activities weighed down results. Stripping out capital losses and other accounting items, AIG said it would have lost $37.9 billion, or $14.17 a share. Insurance premiums and other considerations declined by 1.9% for the fourth quarter, it added.
Dish Network fourth-quarter earnings up; modest revenue gain(6:23 am ET)
LONDON (MarketWatch) Dish Network (DISH: news, chart, profile) Monday posted fourth-quarter net income of $217 million vs. $175 million a year earlier as revenue edged up 1% to $2.92 billion. The satellite TV operator said net subscribers fell 102,000 in the quarter. Diluted earnings were 48 cents a share compared with 39 cents a year earlier.
Cellcom 4th-quarter net up 32%; ARPU slips 1.3%(4:29 am ET)
TEL AVIV (MarketWatch) -- Cellcom Israel Ltd., (CEL: news, chart, profile) Israel's No. 1 provider of cellular service, reported fourth-quarter net income rose 32% on 0.8% lower revenue. The quarter's earnings were 243 million shekels ($64 million), or 2.48 shekels ($0.65) a share, compared with 184 million shekels, or 1.89 shekels a share, in the year-earlier period. Revenue eased to 1.57 billion shekels from 1.58 billion. Total revenue declined due to seasonal factors -- the Jewish holiday season, which is marked by lower usage, fell entirely in the fourth quarter -- and to lower revenue from sales of end-user equipment, Cellcom said in a statement on Monday. Gross-profit margin for the quarter widened to 46.1% from 39.4%. Average revenue per user fell 1.3% to $38.60 from $39.20 a year earlier. At year's end Cellcom had nearly 3.19 million subscribers.
Japan February new car sales fall most since 1973(3:42 am ET)
HONG KONG (MarketWatch)-- Japan's domestic new care sales fell in February by the biggest margin in 34 years, marking the seventh straight month of declines. New vehicle sales totaled 218,212 units, down 32.4% on year, the sharpest deceleration since May 1973, according to the Nikkei newspaper, which cited data released by the Japan Automobile Dealers Association. Toyota's sales were down 32%, Nissan Motor's fell 35.2%, and Honda's were down 21.1%.
HSBC profit down 70%, will close some U.S. operations(2:26 am ET)
LONDON (MarketWatch) -- HSBC (UK:HSBA: news, chart, profile) (HBC: news, chart, profile) said Monday that its 2008 net profit fell 70% to $5.73 billion as it also announced plans to largely shut down its HFC and Beneficial consumer finance operations in the U.S. The group said it took a $10.6 billion goodwill impairment on its North American personal financial services operations and has come to the conclusion that models of direct personal lending that depend on wholesale markets for funding are no longer viable. Excluding the write-down, HSBC said pretax profit fell 18% to $19.9 billion and its total dividend for the year will fall 29% to 64 cents. Analysts had, on average, been expecting a pretax profit of $20.5 billion. The group is planning a 12.5 billion pound ($17.7 billion) rights issue and said the outlook for 2009 remains difficult, although its performance in January was ahead of expectations, especially in its global banking and markets division.
Ahold 4th-quarter profit, sales up; dividend increased(1:42 am ET)
TEL AVIV (MarketWatch) -- Ahold, (AHONY: news, chart, profile) (NL:AH: news, chart, profile) the Amsterdam supermarket operator, reported that fourth-quarter net income rose 8.8% on 13% higher sales. Net income totaled 285 million euros compared with 262 million in the year-earlier quarter. Earnings from continuing operations rose 38% to 283 million euros from 205 million. Sales reached 6.6 billion euros from 5.84 billion. At constant exchange rates, the quarter's sales rose 5.9%. The company proposed to increase the annual dividend for 2008 by 12% to 0.18 euro a share. "Despite the continued deterioration of the economic environment, in the first weeks of 2009 we have seen no significant changes in consumer behavior," Chief Executive John Rishton said in a statement on Monday. The company is confident of its strategy and "the business is well-prepared to respond to the effects of recession," he said.
Saturday, Feb. 28
Buffett: Sees economy in 'shambles' in '09(8:22 am ET)
CHICAGO (MarketWatch) -- Berkshire Hathaway (BRKA: news, chart, profile) (BRKB: news, chart, profile) Chairman Warren Buffett told shareholders Saturday that 2008 was the company's worst year on record, as the per share book value of both the Class A and Class B stock fell 9.6%. In his annual letter, Buffett said neither he nor Charlie Munger, his partner in running Berkshire, can predict winning and losing years in advance, and that no one else can. "We're certain, for example, that the economy will be in shambles throughout 2009 - and, for that matter, probably well beyond - but that conclusion does not tell us whether the stock market will rise or fall." Commenting on the federal government's actions to resolve the economic crisis, Buffett said: "Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel. These once-unthinkable dosages will almost certainly bring on unwelcome aftereffects."
Friday, Feb. 27
Southwestern Energy Co. draws Street praise, rallies(12:53 pm ET)
NEW YORK (MarketWatch) -- Southwestern Energy Co. (SWN: news, chart, profile) jumped 8% to $29.71 on Friday after the company's earnings update drew praise from Wall Street analysts. Michael Scialla of Thomas Weisel Partners said the natural gas specialist's production growth of 65% beat the top end of the company's forecast by five percentage points. Proved reserves jumped 51% to 2.18 trillion cubic feet equivalent, about 17% above Scialla's estimate. He maintained his market weight rating at 12-month price target of $35 a share "due to our cautious outlook on natural gas markets." Separately, Southwestern said COO Steven Mueller would succeed Harold Korell in the first quarter of 2010 as chief executive officer. Korell took the reins as CEO in 1999 and reshaped it as a leading domestic natural gas producer from its former role as a utility company with an exploration and production unit.