Earning Plays

[3xBuBu]

Wednesday, July 29

Equity Residential profit down; dividend cut (5:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Equity Residential Properties Trust (EQR: news, chart, profile) reported Wednesday afternoon net income dropped to $105.9 million, or 35 cents share, compared to net income of $139.9 million, or 46 cents a share, in last year's quarter. The apartment owner said its profit was hit by lower gains from property sales. Funds from operations were 58 cents a share, down from 64 cents. As expected, Equity Residential cut its annual dividend to $1.35 a share from $1.93 a share. The real estate operator kept its sales view for the year. The company said it has been able to retain existing residents at renewal rents higher than it expected in this tough economic climate. Equity Residential shares closed at $21.87.

Aflac net profit falls 35% on investment losses(4:31 pm ET)
SAN FRANCISCO (MarketWatch) -- Insurance company Aflac (AFL: news, chart, profile) reported Wednesday afternoon second-quarter net income fell 35% to $314 million, or 67 cents a share, from a year ago. Aflac said its profit was hurt by investment losses mostly related to CIT Group, the troubled lender. The insurer said its operating earnings rose 15.3% to $562 million, or $1.20 a share. Analysts had forecast $1.14 a share. Aflac backed its 2009 earnings forecast, excluding foreign currency changes. The company said it was cautious about sales growth. Separately, Aflac said it will buy Continental American Insurance Company for $100 million. Aflac shares closed at $35.45 ahead of the earnings report. The stock is down 23% this year.

Hartford reports $15 million quarterly net loss(4:30 pm ET)
SAN FRANCISCO (MarketWatch) -- Hartford Financial Services (HIG: news, chart, profile) reported a second-quarter net loss of $15 million late Wednesday, versus net income of $543 million a year earlier. The loss was 6 cents per common share, versus a profit of $1.73 per common share in the same period last year. Core earnings, which exclude things like net realized investment gains and losses, were $622 million in the latest period, down 11% from a year earlier. Core earnings available to common shareholders were $1.90 a share, versus $2.22 a share last year. Hartford was expected to make a profit of $1.16 a share, according to the average estimate of 18 analysts in a Thomson Reuters survey.

Tesoro swings to loss on weak refining margins(4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- Oil refiner Tesoro Corp. (TSO: news, chart, profile) , facing poor margins and weak industrial fuel demand, reported late Wednesday a second-quarter loss of $45 million, or 33 cents a share. The company posted net income of $4 million, or 3 cents a share, a year ago. Revenue for the three months ended June 30 fell 53% to $4.18 billion from $8.89 billion. Analysts polled by FactSet had predicted the San Antonio, Texas, company would report a loss of 28 cents a share on $4.16 billion in revenue. Tesoro shares fell 2 cents ahead of the report to close at $13.07. The share price is down 17% over the past 12 months.

Lincoln National swings to a second-quarter loss(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Lincoln National Corp. (LNC: news, chart, profile) said late Wednesday that it swung to a second-quarter loss of $161.4 million, or 62 cents a share, from a profit of $124.7 million, or 48 cents a share, in the year-ago period. Lincoln reported income from operations of 81 cents a share. Revenue fell to $1.95 billion from $2.49 billion last year. Analysts surveyed by FactSet Research estimated results of 83 cents a share on revenue of $2.52 billion.

Visa reports quarterly net income of $729 million(4:19 pm ET)
SAN FRANCISCO (MarketWatch) -- Visa Inc. (V: news, chart, profile) said late Wednesday that fiscal third-quarter net income came in at $729 million, or 97 cents per class A common share. That compares to net income of $422 million, or 51 cents per class A common share, a year earlier. Net operating revenue in the latest period was $1.6 billion, up 2% over the prior year. Payments volume fell slightly in the U.S., but continued to grow elsewhere, Visa said. On an adjusted basis, which includes restructuring and purchase amortization, net income for the latest quarter was $744 million, or 98 cents per class A common share. Excluding the impact from the sale of the company's equity interest in VisaNet do Brasil, adjusted quarterly net income was $507 million, or 67 cents per class A common share, Visa said. The company was expected to make 64 cents a share on net revenue of $1.64 billion, according to the average estimate of 25 analysts polled by Thomson Reuters.

Flextronics International swings to a loss(4:13 pm ET)
SAN FRANCISCO (MarketWatch) -- Flextronics International Inc. (FLEX: news, chart, profile) on Wednesday reported a fiscal first-quarter loss of $154 million, or 19 cents a share, on revenue of $5.78 billion. During the same period a year ago, the electronics contract manufacturer earned $130 million, or 16 cents a share, on $8.35 billion in sales. Excluding one-time items, Flextronics would have earned $63 million, or 8 cents a share. Analysts surveyed by Thomson Reuters had forecast the company to earn 6 cents a share on $5.55 billion in sales. For its second quarter, Flextronics expects to break even or earn up to 4 cents a share, on sales, in a range of $5.2 billion to $6 billion. Excluding one-time items, Flextronics estimates it will earn 7 cents to 11 cents a share.

Symantec quarterly profit tumbles 58%(4:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Symantec Corp. (SYMC: news, chart, profile) said Wednesday its fiscal first-quarter net income fell sharply to $73 million, or 9 cents a share, from $172 million, or 20 cents a share in the same period a year earlier. Revenue for the period ended in early July fell to $1.43 billion from $1.65 billion, the security software maker said. Excluding special items, Symantec said earnings were 34 cents a share. Analysts on average had expected Symantec to post earnings excluding special items of 35 cents a share for the quarter, and $1.49 billion in revenue, according to data compiled by Thomson Reuters.

Aspen quarterly operating profit tops forecasts(4:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Aspen Insurance Holdings (AHL: news, chart, profile) reported quarterly operating profit late Wednesday that exceeded analyst forecasts. The reinsurer said it generated net income of $110.4 million in the second quarter, while operating earnings, which exclude net realized investment gains and losses, came in at $1.14 per ordinary share. This compares to net profit of $126.9 million and operating earnings of $1.44 per share a year earlier. Aspen was expected to make $1.04 a share, according to the average estimate of five analysts in a Thomson Reuters survey.

Varian Medical fiscal third-quarter profit rises(4:08 pm ET)
SAN FRANCISCO (MarketWatch) -- Varian Medical Systems Inc. (VAR: news, chart, profile) said late Wednesday that its fiscal third-quarter profit rose to $85.4 million, or 68 cents a share, from $74.2 million, or 58 cents a share, in the year-ago period. Revenue rose to $509.8 million from $507.4 million last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 63 cents a share on revenue of $535 million.

LSI sees losses grow as revenue declines(4:07 pm ET)
SAN FRANCISCO (MarketWatch) -- LSI Corp. said its net loss deepened for the second quarter on a sharp drop in revenue. For the quarter ended July 5, the company (LSI: news, chart, profile) said net losses were $61.5 million, or 9 cents a share, compared to a loss of of $13.6 million, or 2 cents a share, for the same period last year. On a non-GAAP basis, the company said it would have earned 1 cent per share for the recent period. Revenue fell 25% to $520.7 million. Analysts were expecting a loss of 2 cents a share on revenue of $506.3 million, according to consensus estimates from Thomson Reuters.

Hospira net income fell 63%, lifts guidance(1:53 pm ET)
MADRID (MarketWatch) -- Pharmaceutical and medication delivery group Hospira (HSP: news, chart, profile) on Wednesday said second-quarter net income fell to $25.5 million, or 16 cents a share, against $69.1 million, or 43 cents a share in the same period a year ago. Adjusted earnings per share were 73 cents, against 57 cents. Analysts polled by FactSet research were forecasting earnings of 60 cents a share, on average. Net sales rose 6.1% to $956.9 million against $901.6 million. Christopher B. Begley, chairman and chief executive officer, said the company delivered a "very good second quarter," with strong sales and earnings. The company lifted its full-year adjusted earnings guidance, and now expects it to range between $2.70 and $2.75 per share, with expectations for net sales for the year to rise approximately 4% to 6% on a constant-currency basis. Including the impact of foreign exchange, the company expects net sales to be flat to slightly up. (Corrects headline and lead to reflect a decline in the second quarter from a year ago. Corrects company description and the FactSet earnings estimate.)

Sealed Air posts lower quarterly profit(1:49 pm ET)
NEW YORK (MarketWatch) -- Sealed Air Corp. (SEE: news, chart, profile) said Wednesday that its second-quarter net profit fell to $60.5 million, or 33 cents a share, from $62.6 million, or 34 cents a share, in the year-earlier. Revenue for the quarter dropped 20% to $1.03 billion from $1.28 billion. The packaging materials and equipment manufacturer said adjusted earnings for the quarter were 34 cents a share, in line with the FactSet consensus forecast. The company said it still expects 2009 earnings to be in the range of $1.17 to $1.37 a share, including items. (Corrects the fiscal quarter.)

Bewkes: 'TV Everywhere' discussions going well(12:01 pm ET)
CHICAGO (MarketWatch) -- Time Warner Inc.'s (TWX: news, chart, profile) discussions with cable, satellite and telephone companies about joining its "TV Everywhere" online video initiative have been constructive, said Chairman Jeff Bewkes during a conference call on Wednesday. Bewkes also said "most programmers" will share Time Warner's view that the online streaming of TV shows should only be available to those who are paying for a video subscription. "We think it's a very powerful and pretty obvious natural evolution of...what consumers will easily embrace," he said.

Time Warner: Shift from DVD to digital 'positive'(11:39 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc. (TWX: news, chart, profile) Chairman Jeff Bewkes said Wednesday that the gradual transition away from DVDs to digital forms of home entertainment distribution combines "a set of positive developments" that should "make the business healthier." Speaking to analysts on a conference call, Bewkes pointed out that amid widespread concern about DVD sales, the biggest "tentpole" titles still sell well, and digital forms such as online downloading offer greater margins. The executive said the trend toward more rentals of movies and TV shows than purchases is unlikely to adversely affect overall profits for those properties. "We've been there before," he commented. "We saw rental as the chief means of everybody watching films back in the days of Blockbuster VHS rentals. And yet, it moved to sell-through because it was more convenient for people to keep it.."

Time Warner CEO: Turner to up ad dollar share(11:16 am ET)
CHICAGO (MarketWatch) -- Time Warner Inc.'s (TWX: news, chart, profile) Turner Broadcasting cable channels, led by TNT and TBS Superstation, are poised to take dollars away from the Big Four broadcast networks as the "upfront" ad selling season winds down, Time Warner Chief Executive Jeff Bewkes told analysts Wednesday. The upfront is the period during June and July when networks sell commercial time in advance for the fall season. Speaking during a conference call, Bewkes added that overall upfront spending will probably be down in 2009 compared with last year, as more advertisers plan to buy airtime during the upcoming season. "We do think that it could make the upfront a little less of an indicator for the health of the ad market than it usually is," Bewkes said.

Pritchard Capital cuts National Oilwell Varco(9:14 am ET)
NEW YORK (MarketWatch) -- National Oilwell Varco Inc. (NOV: news, chart, profile) drew a downgrade to neutral from buy at Pritchard Capital Partners on Wednesday. Analsyts cut their price target to $35 a share from $40 a share. "Although National Oilwell Varco reiterated its anticipated orders from Brazil would come by year end, we believe sentiment may work against the stock near-term given potential further delays in the Petroleo Brasileiro S.A. process," analysts said. "We believe there is a greater risk to earnings in 2010 and 2011 due to the reduced order flow as well as other industry pressures that have materialized with greater severity than the company had anticipated earlier in the year."

ConocoPhillips profit falls 76%(8:40 am ET)
NEW YORK (MarketWatch) -- ConocoPhillips (COP: news, chart, profile) said Wednesday its second-quarter profit fell by more than $4 billion to $1.3 billion, or 87 cents a share, from $5.4 billion, or $3.50 a share in the year-ago period. The Houston-based oil giant was expected to earn 85 cents a share, according to a survey of Wall Street analysts by FactSet Research. The company's exploration and production unit earned $725 million, down from $4 billion. "The decrease was primarily due to the impact of significantly lower commodity prices, partially offset by higher volumes and lower operating costs," the company said.

Tidewater net income falls on Venezuelan costs (8:32 am ET)
NEW YORK (MarketWatch) -- Tidewater Inc. (TDW: news, chart, profile) said Wednesday first-quarter net income fell by about half to $44.5 million, or 86 cents a share, from $84.8 million, or $1.64 a share in the year-ago period. Revenue fell to $326.6 million from $340 million. The New Orleans shipping company for the energy business booked a non-cash charge of 93 cents per share related to its Venezuelan operations, where 11 of its vessels were seized as part of a program by the government. Wall Street analysts expected earnings of $1.79 a share and revenue of $330.4 million, according to a survey by FactSet Research.

Meredith reports quarterly loss(8:26 am ET)
BOSTON (MarketWatch) -- Marketing group Meredith Corp. (MDP: news, chart, profile) on Wednesday reported a fiscal fourth-quarter loss of $164 million, or $3.64 a share, compared with a profit of $19 million, or 41 cents a share, for the same period in 2008. Revenue for the quarter slipped to $346 million, from $376 million. Excluding various charges, Meredith would have posted adjusted earnings per share from continuing operations of 55 cents versus 75 cents. The company added it made a $100 million debt payment on June 30, which reduced its debt load to $380 million. The company secured a new $75 million private placement of debt on July 13. Meredith added its sees fiscal first quarter earnings coming in between 30 cents to 35 cents a share, and full-year fiscal 2010 earnings of $1.60 to $2.00 a share.

Southern earnings rise to 61 cents a share(8:04 am ET)
NEW YORK (MarketWatch) -- Southern Co. (SO: news, chart, profile) said Wednesday that second-quarter earnings were $479 million, or 61 cents a share, compared to $416 million, or 54 cents a share, in the same period last year. Revenue was $3.89 billion compared with $4.22 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 59 cents and sales of $4.28 billion for the electric utility.

MeadWestvaco profit jumps 123%(8:03 am ET)
NEW YORK (MarketWatch) -- MeadWestvaco Corp. (MWV: news, chart, profile) reported on Wednesday a rise in its second-quarter profit to $125 million, or 72 cents a share, compared to $56 million, or 33 cents a share, in the year-ago period. Profits rose despite a fall in net sales to $1.43 billion from $1.71 billion in the second quarter of 2008. The latest results include after-tax income of $112 million, or 65 cents a share, from excise tax credits for companies that use alternative fuel mixtures to produce energy to operate their businesses. "We are increasing the value we deliver to shareholders by making disciplined choices about our participation in key markets, and by strengthening our business model with permanent cost reductions and ongoing operating productivity," said John Luke, chairman and chief executive officer.

Watson Pharma lifts forecast as profit dips 12%(7:56 am ET)
LONDON (MarketWatch) -- Watson Pharmaceuticals Inc. (WPI: news, chart, profile) said Wednesday that its second-quarter net profit fell 12% to $53 million, or 46 cents a share, from $60.3 million, or 53 cents a share, a year earlier, as the group also raised its 2009 outlook. Watson said net revenue in the quarter rose 8.8% to $677.8 million and adjusted earnings were 61 cents a share. Analysts polled by FactSet had been expecting adjusted earnings of 57 cents a share on sales of $666.9 million. Watson said revenue growth was helped by the launch of new products in both its generic and branded businesses. The group lifted its forecast for 2009 earnings to a range of $2.13 to $2.21 a share.

Coca-Cola Enterprises turns to profit(7:50 am ET)
NEW YORK (MarketWatch) -- Coca-Cola Enterprises Inc. (CCE: news, chart, profile) said Wednesday that it earned $313 million, or 64 cents a share, in the second quarter compared to a loss of $3.17 billion, or $6.48 a share, in the year-ago period. On an adjusted basis, earnings per share were 67 cents versus 56 cents. Revenue fell to $5.91 billion compared to $5.94 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 50 cents and sales of $6 billion. The company lifted comparable full-year 2009 earnings-per-share expectations to a range of $1.44 to $1.49.

IAC/Interactive swings to profit (7:49 am ET)
NEW YORK (MarketWatch) -- IAC/Interactive Corp. (IACI: news, chart, profile) said on Wednesday that its second quarter net income was $40.8 million, or 28 cents a share, compared to last year's $421.6 million loss, or 60 cents a share. Last year's results included a discontinued operations loss of $360 million. Second quarter revenue dipped to $340 million, from $354.2 million.

Hess Corp. net income falls 89%(7:42 am ET)
NEW YORK (MarketWatch) -- Hess Corp. (HES: news, chart, profile) said Wednesday second-quarter net income fell to $100 million, or 31 cents a share, from $900 million, or $2.76 a share in the year-ago period. Exploration and production income fell to $215 million from $1 billion, while its loss from marketing and refining narrowed to $30 million from $52 million. Oil and gas production rose to 407,000 barrels per day, from 393,000 barrels a day. Revenue dropped to $6.8 billion from $11.7 billion. Refining operations generated a loss of $26 million compared with income of $3 million in the second quarter. Wall Street analysts expected Hess Corp. to earn 2 cents a share on revenue of $7.4 billion.

Wyndham's second-quarter profit falls(7:25 am ET)
NEW YORK (MarketWatch) -- Wyndham Worldwide Corp. (WYN: news, chart, profile) said Wednesday that its second-quarter profit was $71 million, or 39 cents a share, compared to $98 million, or 55 cents a share in the year-ago period. Net revenues were $920 million compared to $1.13 billion in the second quarter of 2008. On an adjusted basis, the hospitality company said earnings were 41 cents a share. Analysts surveyed by FactSet Research had expected, on average, earnings of 37 cents a share on revenue of $920 million. The latest quarter is the sixth in a row that Wyndam's earnings have beaten consensus estimates.

Jones Apparel posts higher quarterly profit(7:21 am ET)
NEW YORK (MarketWatch) -- Jones Apparel Group Inc. (JNY: news, chart, profile) said Wednesday that its second-quarter profit rose to $13.1 million, or 15 cents a share, from $10.6 million, or 12 cents a share, in the year-earlier period. Excluding items, the maker of apparel, footwear and accessories said it would have earned 29 cents a share. Analysts, on average, expected the company to earn 9 cents a share, according to FactSet Research. Revenue including licensing income slipped to $803.9 million from $829.4 million.

American Tower profit down 65%, reaffirms guidance(7:19 am ET)
LONDON (MarketWatch) -- American Tower Corp. (AMT: news, chart, profile) on Wednesday reported a 65% drop in second-quarter net profit to $56.3 million, or 14 cents a share, from $158.9 million, or 38 cents a share, a year earlier. Revenue for the quarter rose 7.5% to $423.4 million. The company, which operates broadcast and wireless communications sites, said its earnings were impacted by certain items in its tax provision that resulted in an effective tax rate of around 50%. The effective tax rate for the full year should be between 42% and 44%, it added. Analysts polled by FactSet were expecting earnings of 17 cents a share. The company reaffirmed its 2009 guidance for adjusted EBITDA of $1.16B to $1.19B.

Sprint Nextel loses 13 cents a share(7:12 am ET)
NEW YORK (MarketWatch) -- Sprint Nextel Corp. (S: news, chart, profile) said Wednesday that it lost $384 million, or 13 cents a share in the second-quarter. In the same period a year ago Sprint lost $344 million, or 12 cents a share. Revenue fell to $8.1 billion compared to $9.1 billion. Analysts polled by FactSet Research estimated, on average, a loss of 4 cents a share and sales of $8.2 billion.