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Tuesday, May 5
Freddie avoids $30 billion charge, WSJ says(7:51 pm ET)
SAN FRANCISCO (MarketWatch) -- Freddie Mac (FRE: news, chart, profile) has received a favorable ruling from the Securities and Exchange Commission that will allow it to avoid what the company had feared might be a $30 billion charge against earnings, The Wall Street Journal reported late Tuesday, citing an interview with acting Chief Executive John Koskinen. Freddie hopes to hire a new chief financial officer this month and a new CEO by the middle of July, Koskinen also told the newspaper. The company's acting Chief Financial Officer David Kellermann died last month in what police believe was a suicide.
Westpac says net income slips, cuts dividend(6:54 pm ET)
SAN FRANCISCO (MarketWatch) -- Westpac Banking Corp. (WBK: news, chart, profile) (AU:WBC: news, chart, profile) said net income for the six months ended March 31 came in at A$2.175 billion, down slightly from a year earlier, when the Australian bank made A$2.202 billion. Revenue climbed to A$8.09 billion, versus A$5.9 billion a year ago. Charges for bad debts rose to A$1.56 billion from A$433 million a year earlier, the lender noted. The results include St. George, which Westpac acquired last year. Westpac said it will cut its dividend by 20% as the bank tries to "conservatively" manage its capital. Westpac will be affected by recessions in Australia and New Zealand, which will crimp loan demand and put more customers "under pressure," the bank said.
Disney CEO: Hulu won't cannibalize TV(5:04 pm ET)
CHICAGO (MarketWatch) -- Walt Disney Co. (DIS: news, chart, profile) Chief Executive Bob Iger said Tuesday that the company is convinced that putting some of its most popular television programming on the online video site Hulu will not cut into ABC's TV audience. As is the case with ABC.com and iTunes, Disney has found that Hulu's audience is younger than the average TV viewer, Iger explained, meaning that the company has a chance to attract different viewers to its new media platforms. "We realize that monetizing [online video] at a rate that's as robust as the traditional platforms doesn't exist yet, but we believe ... eventually it will," Iger said, commenting during a conference call with analysts.
Pulte Homes' first-quarter loss narrows (5:03 pm ET)
SAN FRANCISCO (MarketWatch) - Pulte Homes Inc. (PHM: news, chart, profile) late Tuesday reported its first-quarter loss narrowed to $514.8 million, or $2.02 a share, from a loss of $696.1 million, or $2.75 a share, in the first quarter last year. The quarterly loss includes $410.2 million of pre-tax charges related to inventory impairments and other land-related charges. Revenue slumped to $587.4 million from $1.45 billion, said the Bloomfield Hills, Mich.-based homebuilder. Net new home orders for the quarter totaled 3,022 homes, down 44% from the first quarter of 2008 but up 71% from the fourth quarter.
Disney CFO: Ad market stabilizing; caution remains(4:54 pm ET)
CHICAGO (MarketWatch) -- Walt Disney Co. (DIS: news, chart, profile) Chief Financial Officer Tom Staggs told analysts Tuesday that the rate of decline in the advertising market is "stabilizing," but added that "ad buyers and consumers remain cautious." Advertisers are making buys closer to the air date of a particular program, while consumers are booking trips to the Disney theme parks and resorts nearer to their date of attendance, Staggs commented during a conference call.
Lincoln reports quarterly net loss of $579 mln(4:40 pm ET)
SAN FRANCISCO (MarketWatch) -- Lincoln National Corp. (LNC: news, chart, profile) said late Tuesday that it lost a net $579 million, or $2.27 a share, in the first quarter, versus net income of $289 million, or $1.10 a share, in the same period a year earlier. The quarterly net loss included a non-cash charge of $600 million, after tax, or $2.35 a share, for the impairment of goodwill in the annuity business, Lincoln explained. Income from operations for the first quarter of 2009 was $171 million, or 66 cents a share. Lincoln was expected to make 71 cents a share, according to the average estimate of 13 analysts in a Thomson Reuters survey. The latest quarter also included a charge of $64 million, after tax, or 25 cents a share, related to an arbitration decision from a 2001 deal Lincoln struck. Lincoln shares rose 5% to $12.30 during after-hours trading on Tuesday.
Pitney Bowes posts lower profit(4:33 pm ET)
SAN FRANCISCO (MarketWatch) -- Postage meter machine maker Pitney Bowes Inc. (PBI: news, chart, profile) on Tuesday reported a first-quarter profit of $104.4 million, or 50 cents a share, down from $119.1 million, or 56 cents a share, a year ago. Adjusted earnings from continuing operations came in at 55 cents a share. Revenue fell to $1.38 billion from $1.57 billion. Analysts polled by FactSet Research were looking for a profit, on average, of 63 cents a share, on sales of $1.47 billion.
Cephalon's quarterly profit jumps (4:27 pm ET)
SAN FRANCISCO (MarketWatch) -- Cephalon (CEPH: news, chart, profile) late Tuesday reported its first-quarter net income rose to $58.6 million, or 75 cents a share, from $30.4 million, or 41 cents a share, in the same period last year. Excluding items, Cephalon would have earned $1.47 a share. Revenue increased to $520 million from $443.2 million, the drug developer said. Analysts surveyed by FactSet Research had forecast earnings of $1.27 a share on revenue of $535.4 million. In the second quarter, Cephalon expects sales of $515 million to $535 million and adjusted income of $1.40 to $1.50 a share. Analysts are projecting Cephalon to report a net income of $1.40 a share and revenue of $558.4 million.
Disney profit declines 46% (4:19 pm ET)
CHICAGO (MarketWatch) -- Walt Disney Co. (DIS: news, chart, profile) said Tuesday that its fiscal second-quarter profit fell 46% on restructuring charges, decreased advertising sales at its owned-and-operated television stations and a decline in DVD sales, the latest indications that the economy is taking a toll on the major media conglomerates. Disney said it earned $613 million, or 33 cents a share, in the quarter ended March 28, compared with a profit of $1.13 billion, or 58 cents a share, in the same quarter a year earlier. Disney said that excluding items, it would have earned 43 cents a share in the latest three months. Revenue fell 7% to $8.1 billion. Analysts had expected the company to post a profit of 40 cents a share, on sales of $8.15 billion, according to a survey by Thomson Reuters.
Las Vegas Sands posts wider loss(4:14 pm ET)
SAN FRANCISCO (MarketWatch) -- Las Vegas Sands (LVS: news, chart, profile) on Tuesday posted a loss of $34.6 million, or 14 cents a share, vs. a loss of $11.2 million, or 3 cents a share, a year ago. Excluding one-time items, the casino operator would have earned a penny a share. Revenue was mostly flat from the prior year at $1.08 billion. Analysts polled by FactSet Research were looking for a loss, on average, of 3 cents a share, with revenue of $1.07 billion.
Electronic Arts reduces net loss in fourth quarter(4:14 pm ET)
SAN FRANCISCO (MarketWatch) -- Electronic Arts Inc. reduced its net losses for the fourth fiscal quarter despite a decline in game sales. For the period ended March 31, the video game publisher (ERTS: news, chart, profile) reported a net loss of $42 million, or 13 cents a share, compared to a loss of $94 million, or 30 cents a share, for the same period the previous year. Revenue declined 24% to $860 million. On a non-GAAP basis, the company said it lost $120 million, or 37 cents a share, on revenue of $609 million for the recent period. Analysts were expecting a loss of 43 cents a share on revenue of $631.9 million, according to consensus estimates from Thomson Reuters.
Vornado's net income, FFO fall(10:09 am ET)
BOSTON (MarketWatch) -- Vornado Realty Trust (VNO: news, chart, profile) on Tuesday reported first-quarter net income attributable to common shareholders of 79 cents a share, compared with $2.38 a share, in the same period the prior year. Funds from operations, which Wall Street analysts use to measure the profitability of real estate investment trusts, fell to $1.63 a share from $3.17 a share. "We are currently in an economic recession which has negatively affected substantially all businesses, including ours," Vornado said in a regulatory filing. "During the past year, real estate transactions have diminished significantly and capitalization rates have risen."
Energy stocks move into the red(9:38 am ET)
NEW YORK (MarketWatch) -- Energy stocks fell in early action on Tuesday, retreating after big gains in the previous session on the heels of an earnings miss by Cheseapeake Energy (CHK: news, chart, profile) . The Amex Oil Index (XOI: news, chart, profile) dipped 0.3% to 930. The Amex Natural Gas Index (XNG: news, chart, profile) dropped 1.2% to 421. Chesapeake Energy (CHK: news, chart, profile) fell 5% to $21.66.
Wynn Resorts swings to first-quarter loss(9:34 am ET)
NEW YORK (MarketWatch) -- Wynn Resorts Ltd. (WYNN: news, chart, profile) said Tuesday that it swung to a first-quarter loss of $33.8 million, or 30 cents a share, from a profit of $46.7 million, or 41 cents a share, in the year-ago quarter. On an adjusted basis, the casino operator would have lost $30.1 million, or 27 cents a share. Net revenue totaled $740 million for the quarter, down from $778.7 million. On average, analysts polled by FactSet Research were expecting Wynn to earn 1 cent a share.
Allegheny Energy earnings per share inch lower(9:17 am ET)
NEW YORK (MarketWatch) -- Allegheny Energy Inc. (AYE: news, chart, profile) said Tuesday that first-quarter earnings were $134 million, or 79 cents a share, compared to $136 million, or 80 cents a share, in the year-ago period. Adjusted earnings per share were 67 cents. Revenue was $957 million compared to $875 million. Analysts polled by FactSet Research estimated, on average, earnings per share of 73 cents and sales of $1 billion.
Ventas reports higher quarterly net income(9:04 am ET)
BOSTON (MarketWatch) -- Ventas Inc. (VTR: news, chart, profile) before Tuesday's opening bell said its first-quarter net income attributable to common shareholders rose to 52 cents a share from 23 cents in the year-earlier period. The company said funds from operations -- a key profitability gauge for real estate investment trusts -- fell to 66 cents a share from 74 cents. "We had an excellent first quarter, with 7% growth in our cash flow from operations, and our capital raising activities are building strength on strength," said Chief Executive Debra Cafaro in the earnings release.
FirstEnergy earnings fall in quarter(8:48 am ET)
NEW YORK (MarketWatch) -- FirstEnergy Corp. (FE: news, chart, profile) said Tuesday that first-quarter earnings were $115 million, or 39 cents a share, compared to $277 million, or 90 cents a share, in the same period a year ago. On an adjusted basis FirstEnergy earned $1.01 a share. Revenue was $3.33 billion compared to $3.28 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 91 cents.
Denbury Resources loses $18 million in quarter(8:45 am ET)
NEW YORK (MarketWatch) -- Denbury Resources (DNR: news, chart, profile) said Tuesday it lost $18.3 million, or 7 cents a share in its fiscal first quarter, compared to net income of $73 million, or 30 cents a share in the year-ago period. The loss came from lower oil and natural gas prices, coupled with a $106 million non-cash fair value charge on the company's derivative contracts. The Dallas-based oil and natural gas producer said revenue fell 45% to $173.8 million. "We are pleased with our first quarter results as they were on target with our expectations," the company said.
Weyerhaeuser loss grows (8:42 am ET)
NEW YORK (MarketWatch) -- Paper and timber firm Weyerhaeuser (WY: news, chart, profile) said on Tuesday that its first quarter loss grew to $264 million, or $1.25 a share, compared to a loss of $148 million, or 70 cents a share a year ago. Revenue fell to $1.28 billion, from $2.04 billion last year. Analysts polled by Thomson Reuters had expected the company to earn
AK Steel cuts outlook on auto sector disruption(8:39 am ET)
LONDON (MarketWatch) -- AK Steel Holding Corp. (AKS: news, chart, profile) said Tuesday that its second-quarter operating loss will be wider than previously forecast due to disruption in the automotive sector. The firm said it expects to report a second-quarter operating loss of $75 million to $80 million, compared to its previous forecast for an operating loss of $50 million. It said the decision by General Motors (GM: news, chart, profile) and Chrysler to idle plants will reduce direct shipments to both firms and to other AK Steel customers who also supply the automakers. The group said second-quarter shipments will likely be closer to 725,000 tons than the 800,000 tons originally forecast.
Diebold earnings slump in quarter(8:30 am ET)
NEW YORK (MarketWatch) -- Diebold Inc. (DBD: news, chart, profile) said Tuesday that first-quarter earnings were $1.6 million, or 2 cents a share, compared to $13.8 million, or 21 cents a share, in the same period a year ago. Sales were $663 million, compared to $692 million. Analysts polled by FactSet Research estimated, on average, sales of $643 million. For 2009 Diebold lowered its range for earnings per share to $1.70 to $2.00.
Pinnacle West loss grows (8:23 am ET)
NEW YORK (MarketWatch) -- Pinnacle West (PNW: news, chart, profile) said on Tuesday that its first quarter loss grew to $156.5 million, or $1.55 a share, from a loss of $4.5 million, or 4 cents a share a year ago. Total revenue dipped to $629.4 million, from $682.3 million.
Precision Castparts fourth-quarter earnings off 7%(8:17 am ET)
NEW YORK (MarketWatch) -- Precision Castparts (PCP: news, chart, profile) said Tuesday fourth-quarter net income fell to $260.3 million, or $1.85 a share from $279 million, or $1.99 per share in the year-ago period. The company said continuing operations net income dropped to $1.87 a share from $1.88 a share. Analysts expected the Portland, Ore. industrial components maker to earn $1.89 a share, according to a survey by FactSet Research. Revenue at Precision Castparts fell to $1.6 billion from $1.8 billion. "During our fourth quarter, we faced some strong headwinds - slower-than-expected recovery from the Boeing strike, lower metal selling prices, and weakening foreign currencies, and our operations were equal to the challenge," the company said.
Kraft earnings per share up 15% in quarter(7:57 am ET)
NEW YORK (MarketWatch) -- Kraft Foods Inc. (KFT: news, chart, profile) said Tuesday that first-quarter earnings were $660 million, or 45 cents a share, compared to $599 million, or 39 cents a share, in the year-ago period. Revenue fell 6.5% to $9.4 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 40 cents and sales of $9.8 billion. For 2009 Kraft sees revenue growth of approximately 3% and earnings per share of $1.88.
Automatic Data posts lower third-quarter profit(7:48 am ET)
NEW YORK (MarketWatch) -- Automatic Data Processing Corp. (ADP: news, chart, profile) said Tuesday that third-quarter net income slipped to $402.5 million, or 80 cents a share, from $413.6 million, or 79 cents a share, in the year-ago period. Revenue at the business-outsourcing services company declined to $2.37 billion from $2.43 billion. Analysts expected earnings of 80 cents a share and revenue of $2.39 billion, according to a survey by FactSet Research. Looking ahead to all of fiscal 2009, ADP said it expects 1% to 2% revenue growth, and the low end of 10% to 14% growth in diluted earnings per share from continuing operations.
Progress Energy earnings down 18%(7:47 am ET)
NEW YORK (MarketWatch) -- Progress Energy (PGN: news, chart, profile) said first-quarter earnings were $182 million, or 66 cents a share, compared to $209 million, or 80 cents a share, in the same period a year ago. Earnings per share from continuing operations were 66 cents versus 56 cents. Analysts polled by FactSet Research estimated, on average, earnings per share of 61 cents. Revenue rose to $2.4 billion from $2.1 billion. The utility sees 2009 earnings per share of $2.95 to $3.15
InterContinental Exchange profit falls (7:41 am ET)
NEW YORK (MarketWatch) -- Electronic futures exchange InterContinental Exchange (ICE: news, chart, profile) said on Tuesday that its first quarter profit fell to $72.2 million, or 98 cents a share, from $92.3 million, or $1.29 a share a year ago. Total revenue rose to $231.6 million from $207.2 million last year. Analysts polled by Thomson Reuters had expected the company to earn 95 cents a share.
Marvel earnings down 1.7% in quarter(7:26 am ET)
NEW YORK (MarketWatch) -- Marvel Entertainment Inc. (MVL: news, chart, profile) said Tuesday that first-quarter earnings were $45 million, or 57 cents a share, compared to $45 million, or 58 cents a share, in the same period a year ago. Sales rose to $197 million compared to $113 million. Marvel sees 2009 earnings per share in the range of $1.10 to $1.35.
Legg Mason reports quarterly loss(7:27 am ET)
NEW YORK (MarketWatch) -- Asset manager Legg Mason Inc. (LM: news, chart, profile) said Tuesday that it lost $325 million, or $2.29 a share, in its fiscal fourth quarter, wider than the loss of $255.4 million, or $1.81 a share, it suffered in the year-ago period. Revenue fell to $617.2 million, down from $1.07 billion in the same period of 2008. Assets under management at the end of the quarter were down to $632.4 billion, a drop of 9% from the $698.2 billion under management on Dec. 31, 2008, and 33% lower than on March 31, 2008.
MillerCoors profit climbs 51%(7:24 am ET)
LONDON (MarketWatch) -- Molson Coors Brewing Co. (TAP: news, chart, profile) and SABMiller (UK:SAB: news, chart, profile) said Tuesday that net income at their U.S. joint venture MillerCoors rose 51% to $206 million, compared to a pro forma profit of $136.6 million a year earlier. Underlying net income excluding special items rose 46% to $216.4 million. The brewers said five of their six focus brands increased sales to retailers, with the exception of Miller Lite, where sales to retailers fell in the mid-single digits. Total sales rose 3% as pricing strength helped offset a 2% dip in volumes to 15,699 barrels. By the end of 2009, MillerCoors said it expects to achieve a total of $238 million in synergies, surpassing its original forecast of $225 million.