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Wednesday, April 29
Unum reports quarterly net income of $164.9 mln(4:32 pm ET)
SAN FRANCISCO (MarketWatch) -- Unum Group (UNM: news, chart, profile) said late Wednesday that first-quarter net income came in at $164.9 million, or 50 cents per common share, up slightly from a year earlier when the disability benefits company made $163.1 million, or 46 cents per common share. Operating income, which excludes net realized investment gains and losses, was $206.7 million, or 62 cents per common share. Unum was expected to make 62 cents a share, according to the average estimate of 15 analysts in a Thomson Reuters survey. The company stuck to its previous forecast of full-year 2009 operating earnings of $2.45 to $2.55 per common share.
LSI loss widens, though sales top estimates(4:30 pm ET)
SAN FRANCISCO (MarketWatch) -- LSI Corp. (LSI: news, chart, profile) said Wednesday its first-quarter net loss widened compared to the period a year earlier, as sales fell 27%. The semiconductor and software company said its net loss for the period ended in April was $104 million, or 16 cents a share, compared to a net loss of $14 million, or 2 cents a share in the period last year. Revenue fell to $482 million. Excluding special items, LSI said its net loss was 3 cents a share. Analysts on average had estimated LSI would post a net loss excluding special items of 4 cents a share, and $469 million in revenue, according to data from Thomson Reuters.
Aflac profit jumps 20%, boosted by stronger yen(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Aflac Inc. (AFL: news, chart, profile) on Wednesday reported a first-quarter profit of $569 million, or $1.22 a share, up from $474 million, or 98 cents a share, a year ago. Total revenue rose to $4.8 billion from $4.3 billion thanks in part to beneficial dollar/yen exchange rate. Analysts polled by FactSet Research were looking for the insurance giant to post a profit, on average, of $1.16 a share with sales of $4.74 billion.
Visa quarterly net income jumps 71%(4:15 pm ET)
SAN FRANCISCO (MarketWatch) -- Visa Inc. (V: news, chart, profile) said late Wednesday that fiscal second-quarter net income came in at $536 million, or 71 cents per class A common share, up 71% from a year earlier when the card payment processing giant made $314 million, or 39 cents per class A common share. Adjusted for a normalized tax rate, restructuring and purchase amortization, net income was $553 million, or 73 cents per class A common share, the company added. Visa was expected to make 64 cents a share, according to the average estimate of 24 analysts in a Thomson Reuters survey. Net operating revenue in the fiscal second quarter of 2009 was $1.6 billion, up 13% versus the prior year. "Though slightly negative in the U.S., payments volume continued to grow on a constant dollar basis in all other regions globally," Visa said.
Starbucks profit falls 77%, hurt by charges (4:12 pm ET)
SAN FRANCISCO (MarketWatch) -- Starbucks (SBUX: news, chart, profile) late Wednesday reported fiscal second-quarter net income fell 77% to $25 million, or 3 cents a share, due to charges to close stores. A year ago, Starbucks earned $108.7 million, or 15 cents a share. Sales fell to $2.3 billion from $2.5 billion. Excluding charges, Starbucks said it made 16 cents a share. Analysts had expected Starbucks to earn 16 cents a share on sales of $2.38 billion, according to FactSet Research. Starbucks said sales at stores open one year -- a gauge of retailer health -- fell 8% in the U.S. Starbucks shares are up 45% so far this year, making the stock one of the best performers in the food and beverage sector. The S&P 500 Index is down 3%. Starbucks closed at $13.69 ahead of the report.
Citrix Systems profit slips, but beats estimates(4:11 pm ET)
SAN FRANCISCO (MarketWatch) - Citrix Systems Inc. (CTXS: news, chart, profile) said Wednesday its first-quarter net income slipped to $7 million, or 4 cents a share, from $34 million, or 18 cents a share, in the same period a year earlier. The virtualization and infrastructure software company said revenue for the period ended in March fell to $369 million from $377 million. Excluding special items, Citrix said earnings for the quarter were 32 cents a share. Analysts on average had expected Citrix to post earnings excluding special items of 31 cents a share on $359 million in revenue, according to data from Thomson Reuters.
Time Warner CEO: Magazines remain 'attractive'(11:53 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Executive Jeff Bewkes said Wednesday that the company's Time Inc. publishing business remains an "attractive" asset despite a severe decline in advertising sales. He pointed out that magazines are "a very different business" from newspapers. "Magazine readership is growing, whereas newspaper readership is declining," Bewkes said on a conference call with analysts. He added: "Magazines are national, not local. And they're not relying on classified ads." Classified revenues had sustained newspapers for decades, but are now diminishing rapidly, putting the future of daily newspapers in jeopardy. Bewkes acknowledged, however, that "there are a lot of questions" about how the magazine business will work out, and that "there will be a shakeout" among the titles.
Time Warner CEO: Ad rates for cable improving(11:26 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Executive Jeff Bewkes said Wednesday that the company's Turner cable networks are closing the gap between the ad rates they are able to command and the rates charged by broadcast networks, due to growing viewership for cable and declining ratings for broadcast. The Turner channels, including TNT, TBS Superstation and CNN, are "well-positioned" for the upfront selling season, in which ads are sold in advance for the fall season.
Time Warner CEO: AOL plans coming 'very soon'(10:51 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chief Executive Jeff Bewkes said on a conference call Wednesday that the company plans to announce its plans for AOL "very soon." The company said in a regulatory filing Wednesday that it expects to spin off one or more parts of AOL to stockholders.
Coal producer Massey Energy rallies on earnings (10:28 am ET)
NEW YORK (MarketWatch) -- Massey Energy (MEE: news, chart, profile) shares rose 14.3% to $14.31 on Wednesday after the coal producer said first-quarter earnings climbed on higher revenue and production, despite lower prices. Massey Energy said net income for the three months ended March 31 climbed 3.6% to $43.4 million, or 51 cents a share from $41.9 million, or 52 cents a share in the year-ago period. Revenue rose to $768 million from $645 million on a 12% increase in coal tons sold. "The strong quarter was on track to meet our full year production targets," Massey Energy said. Peabody Energy (BTU: news, chart, profile) rose 4.7% to $25.39. Arch Coal (ACI: news, chart, profile) rose 7% to $13.53. Consol Energy (CNX: news, chart, profile) rose 8% to $31.74.
Royal Dutch Shell moves up, energy stocks gain(9:39 am ET)
NEW YORK (MarketWatch) -- Shares of Royal Dutch Shell (RDSA: news, chart, profile) rose 0.7% to $45.58 after the oil major posted a drop of 62% in first quarter earnings, as energy stocks rose with the broad market on Wednesday. The Amex Oil Index (XOI: news, chart, profile) rose 1.4% to 886. The Amex Natural Gas Index (XNG: news, chart, profile) rose 1.3% to 388.
Earth image firm DigitalGlobe sets terms in IPO(9:03 am ET)
NEW YORK (MarketWatch) -- DigitalGlobe Inc. (DGI: news, chart, profile) on Wednesday said it plans to offer 14.7 million shares at an estimated price range of $16-$18 a share in a bid to raise about $250 million in its upcoming initial public offering. The Longmont, Colo. provider of earth imagery products plans to trade on the New York Stock Exchange under the symbol DGI. Morgan Stanley (MS: news, chart, profile) and J.P. Morgan (JPM: news, chart, profile) are underwriting the IPO. Morgan Stanley owns about 16 million shares of DigitalGlobe prior to its IPO. Other shareholders include Beach Point Capital funds, Hitachi Software Engineering and Ball Technologies Holding Group.
AMG first-quarter profit falls(8:44 am ET)
NEW YORK (MarketWatch) -- Affiliated Managers Group (AMG: news, chart, profile) said Wednesday that its first quarter net income fell to $6.1 million, or 15 cents a share, from $31.2 million, or 81 cents a share, in the year-ago period. Revenue was down to $178.5 million from $335 million in the first quarter of 2008. The asset manager said adjusted earnings were 94 cents a share. Analysts surveyed by FactSet Research had expected, on average, adjusted earnings of 89 cents a share and revenue of $198.9 million. Total assets under management fell 10% during the first quarter, to $152.9 billion from $170.1 billion on Dec. 31, 2008. Net outflows were $4.4 billion.
CenterPoint Energy net falls 45%(8:20 am ET)
NEW YORK (MarketWatch) -- CenterPoint Energy Inc. (CNP: news, chart, profile) said Tuesday first-quarter net income fell to $67 million, or 19 cents a share, from $122 million, or 36 cents a share in the year-ago period. Operating income fell to $285 million from $336 million. Revenue fell to $2.77 billion from $3.36 billion. Analysts expected earnings of 22 cents a share on revenue of $3.19 billion, according to a survey by FactSet Research. "While reduced deliveries at our electric utility also had a negative impact on our first quarter earnings, our gas utilities, interstate pipelines, field services and competitive gas sales and services units turned in solid performances," the Houston power company said. "We continue to believe that the overall fundamentals of our balanced portfolio of electric and natural gas businesses remain strong and position us well for the future." CenterPoint Energy reaffirmed its 2009 earnings guidance of $1.05 to $1.15 per share.
Goodyear swings to loss(8:16 am ET)
NEW YORK (MarketWatch) -- The Goodyear Tire & Rubber Company (GT: news, chart, profile) said Wednesday that it lost $333 million in the first quarter, or $1.38 a share. In last year's period the tire maker earned $147 million, or 60 cents a share. Sales were $3.5 billion, down from $4.9 billion. Analysts polled by FactSet Research estimated, on average,a loss per share of $1.39 and sales of $4.1 billion.
Meredith earnnings per share down 42%(8:00 am ET)
NEW YORK (MarketWatch) -- Meredith Corp. (MDP: news, chart, profile) said Wednedsay that third-quarter earnings were $25 million, or 56 cents a share, compared to $46 million, or 97 cents a share, in the same period a year earlier. Revenue fell to $338 million from $392 million a year ago for the media-and- marketing company. Analysts polled by FactSet Research estimated, on average, earnings per share of 54 cents and sales of $349 million. Meredith expects fourth-quarter earnings per share to range from 52 cents to 57 cents. Full year 2009 earnings per share from continuing operations are expected to range from $2.00 to $2.05, excluding a 21-cent special charge taken in the second quarter for job cuts and closing Country Home magazine.
IAC swings to first-quarter loss(7:55 am ET)
NEW YORK (MarketWatch) -- IAC (IACI: news, chart, profile) said Wednesday that it saw a net loss in the first quarter of $28.4 million, or 19 cents a share, compared to a profit of $52.8 million, or 38 cents a share, in the year-ago period. On an adjusted basis, loss per share was 2 cents. Consensus estimates were break even, according to FactSet Research. The Internet company said revenue was down 10% to $332 million, which matched analysts' estimates. Last year's figures included income from operations such as Ticketmaster, which have been spun off. IAC said it ended the first quarter with $2 billion in cash and marketable securities.
Sealed Air profit dips 4.4%(7:50 am ET)
LONDON (MarketWatch) -- Sealed Air Corp. (SEE: news, chart, profile) said Wednesday that its first-quarter net profit fell 4.4% to $58.1 million, or 32 cents a share, from $60.8 million, or 33 cents a share, a year earlier. Revenue for the quarter dropped 16% to $988.5 million from $1.18 billion. The packaging materials and equipment manufacturer said adjusted earnings for the quarter were 33 cents a share, beating the FactSet consensus forecast of 28 cents a share. The group said cost-cutting had helped improve its gross profit margin by three percentage points and helped offset lower volumes in protective packaging and an unfavorable impact from exchange rate moves. The group said it still expects 2009 earnings to be in the range of $1.17 to $1.37 a share.
Waste Management profit drops 36%(7:51 am ET)
LONDON (MarketWatch) -- Waste Management Inc. (WMI: news, chart, profile) said its first-quarter net income dropped 36% to $155 million, or 31 cents a share, as revenue fell 14% to $2.81 billion. Excluding restructuring items and a charge on abandoning SAP software, the company would have earned 42 cents a share. Analysts polled by FactSet had expected earnings of 40 cents a share. The Houston company said it's confident it will meet 2009 goals.
MeadWestVaco's loss widens in quarter(7:43 am ET)
NEW YORK (MarketWatch) -- MeadWestVaco Corp. (MWV: news, chart, profile) said Wednesday that it lost $79 million in the first quarter, or 46 cents a share, including $51 million, or 30 cents a share for restructuring and layoff costs. In last year's period the company lost $8 million, or 4 cents a share. Sales were $1.35 billion compared to $1.52 billion for the Richmond, Va. packaging firm which gave no guidance but said, "given continued worldwide economic uncertainty, results for 2009 are difficult to predict." Analysts polled by FactSet Research estimated, on average, a loss per share of 23 cents and sales of $1.4 billion.
Hess Corp. swings to a loss as revenue falls $4B(7:38 am ET)
NEW YORK (MarketWatch) -- Hess Corp. (HES: news, chart, profile) said it lost $59 million, or 18 cents a share in its fiscal first quarter, compared to year-ago net income of $759 million, or $2.34 a share. The New York based oil company said its exploration and production business swung to a loss of $64 million from earnings of $824 million last year. Its refining business saw profits rise to $102 million from $16 million. Revenue fell to $6.87 billion from $10.7 billion a year ago. Wall Street analysts expected a loss of 21 cents a share, according to a survey by FactSet Research.
UPDATE: Medco Health posts 14% revenue growth(7:28 am ET)
WASHINGTON (MarketWatch) -- Medco Health Solutions Inc. (MHS: news, chart, profile) reported first-quarter net income of $291 million, or 58 cents a share, up from $270.2 million, or 50 cents, earned in the same period during 2008. Quarterly revenue generated by the Franklin Lakes, N.J.-based pharmacy-services company reached $14.83 billion from the prior year's $12.96 billion. Adjusted to exclude 5 cents a share in amortization of intangible assets tied to the company's spin-off from Merck & Co. (MRK: news, chart, profile) in 2003, earnings for the latest quarter would have been 63 cents a share, Medco said. The consensus of 22 analysts had been for a first-quarter profit of 62 cents a share, according to a survey of estimates by FactSet Research. (Updates to clarify Medco's adjusted earnings per share for the 2009 first quarter.)
Wyndham posts rise in first-quarter profit(7:24 am ET)
NEW YORK (MarketWatch) -- Hotel and resort operator Wyndham Worldwide Corp. (WYN: news, chart, profile) on Wednesday said first-quarter net income rose to $45 million, or 25 cents a share, from $42 million, or 24 cents a share, in the same period last year. On an adjusted basis, it earned 41 cents a share compared to the year-ago 35 cents. The consensus forecast was for earnings of 32 cents a share, according to FactSet Research. Parsippany, N.J.-based Wyndham said quarterly net revenue fell 11% to $901 million. The company said it expects adjusted earnings of 36 cents to 41 cents a share in the second quarter and $1.61 to $1.85 a share for full-year 2009.
MGIC loss widens as firm holds talks over capital(7:23 am ET)
LONDON (MarketWatch) -- MGIC Investment Corp. (MTG: news, chart, profile) said Wednesday that its first-quarter net loss widened to $184.6 million, or $1.49 a share, from $34.5 million, or 41 cents a share, a year earlier. The private mortgage insurance provider said the results reflects increased delinquencies, rising unemployment and lower home prices. The firm said it believes it has more than adequate resources to pay all its insured claim obligations, but that it is considering options to obtain capital to continue to write new business, including the sale of new equity or debt. MGIC said it has been in discussions with both the U.S. Treasury and the Office of the Commissioner of Insurance of Wisconsin to explore capital options. Revenue in the quarter rose to $435.2 million from $423.9 million. Analysts polled by FactSet had been expecting a loss of $1.30 a share.
Moody's profit falls(7:22 am ET)
NEW YORK (MarketWatch) -- Moody's Corp. (MCO: news, chart, profile) said Wednesday that its first-quarter net income fell to $91.1 million, or 38 cents a share, from $121.2 million, or 48 cents a share, in the year-ago period. Analysts surveyed by FactSet Research had expected, on average, earnings per share of 34 cents. The ratings and research company said revenue fell to $408.9 million from $430.7 million in the first quarter of 2008. Analysts had expected sales of $390.1 million. Moody's reaffirmed its full-year guidance of $1.40 to $1.50 a share.
Wyeth income falls; overseas sales of Enbrel rise(7:22 am ET)
NEW YORK (MarketWatch) -- Wyeth (WYE: news, chart, profile) said first-quarter net income fell slightly to $1.2 billion, or 89 cents a share, from $1.3 billion, or 89 cents a share in the year-ago period. Income excluding charges rose to 95 cents a share from 94 cents a share. Revenue fell 6% to $5.38 billion from $5.71 billion. Excluding the impact of foreign exchange, revenue rose 2% on a 23% sales increase for Enbrel outside the U.S. and Canada, a 19% boost for Prevnar and 12% rise for Nutritionals. Wall Street analysts expected earnings of 88 cents a share on revenue of $5.5 billion from Wyeth, according to a survey by FactSet Research. The company reaffirmed its 2009 full-year earnings forecast of $3.33 to $3.53 a share, excluding items.
Burger King earnings per share up 13%(7:21 am ET)
NEW YORK (MarketWatch) -- Burger King Holdings Inc. (BKC: news, chart, profile) said Wednesday that first-quarter earnings were $47 million, or 34 cents a share, compared to $41 million, or 30 cents a share, in the same period a year ago. Revenue rose 1% to $600 million. Analysts polled by FactSet Research estimated, on average, earnings per share of 33 cents and sales of $608 million. The company now expects its 2009 adjusted earnings per share to be in the range of $1.39 to $1.42.
Qwest first-quarter profit up 37%; sales decline(7:09 am ET)
WASHINGTON (MarketWatch) - Qwest Communications International Inc. on Wednesday reported a 37% increase in first-quarter profit, but sales fell as consumers pared spending or switched to alternative phone suppliers. The Denver-based company posted net income of $206 million, or 12 cents a share, up from $150 million, or 8 cents a share, a year earlier. Revenue dropped 4% to $3.17 billion. Qwest (Q: news, chart, profile) warned earlier this month that sales would be weaker than expected. The company was expected to earn 8 cents a share on revenue of $3.24 billion, according to the consensus estimate of analysts polled by FactSet Research. Qwest added 42,000 high-speed Internet customers.
Medco Health affirms 2009 profit objectives(6:48 am ET)
WASHINGTON (MarketWatch) -- Medco Health Solutions Inc. (MHS: news, chart, profile) affirmed its profit targets for 2009. On a net basis, the company said it expects to generate earnings in a range of 2.45 to $2.55 a share, representing growth of 15% to 20% over what Medco earned in 2008. Excluding the amortization of intangible assets, Medco pegged profit for 2009 in a range of $2.67 to $2.77 a share, which would translate into growth of 15% to 19%. The consensus full-year profit estimate for Medco as compiled by FactSet Research stands at $2.71 a share.
SPX Corp. profit drops 60%(6:41 am ET)
LONDON (MarketWatch) -- SPX Corp. (SPW: news, chart, profile) said its first-quarter profit slumped 60% to $24.4 million, or 48 cents a share, as sales fell 14% to $1.16 billion. The Charlotte, N.C. engineering equipment maker said it earned 76 cents a share from continuing operations, in line with FactSet-compiled analyst estimates.