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Tuesday, July 19

Chipotle reports 9% profit gain(5:08 pm ET)
SAN FRANCISCO (MarketWatch) -- Chipotle Mexican Grill Inc. (CMG: news, chart, profile) reported late Tuesday second-quarter profit rose to $50.7 million, or $1.59 a share, from a year-ago profit of $46.5 million, or $1.46 a share. Revenue for the three months ended June 30 increased to $571.6 million from $466.8 million a year ago. The earnings per share, excluding one-time items, were $1.63. Analysts polled by FactSet Research, who generally exclude one-time items, had predicted Chipotle would earn $1.68 a share on $556.9 million in revenue. Shares of the Colorado-based fast-food restaurant were down 5.8 at $313.90 in after-hours trade. The stock is up 141% over the past year.

Stryker net profit slips 3%(4:51 pm ET)
SAN FRANCISCO (MarketWatch) -- Stryker Corp. (SYK: news, chart, profile) , citing costs from two recent acquistions, reported late Tuesday its second-quarter net profit slipped to $309 million, or 79 cents a share, from $319 million, or 80 cents, a year ago. Adjusted to exclude one-time items, the medical equipment maker's profit rose 10% to $352 million, or 90 cents a share. Revenue for the three months ended June 30 rose 16% to $2.05 billion from $1.76 billion. Analysts polled by FactSet Research, who typically cite adjusted earnings, expected the Kalamazoo, Mich.-based company to post earnings of 90 cents a share on $2.01 billion in revenue. Stryker shares fell 66 cents, or 1.1%, to $58.50 in after-hours trade.

Cintas posts 28% profit gain; shares rise(4:45 pm ET)
SAN FRANCISCO (MarketWatch) -- Cintas Corp. (CTAS: news, chart, profile) reported late Tuesday second-quarter profit rose to $70.8 million, or 49 cents a share, from a year-ago profit of $55.5 million, or 36 cents a share. Revenue for the three months ended June 30 increased to $1 billion from $909.4 million a year ago. Analysts polled by FactSet Research had predicted Cintas would earn 43 cents a share on $967.2 million in revenue. Shares of the Ohio-based corporate apparel company were up 7% at $33.01 in after-hours trade. The stock is up 28.5% over the past year.

Apple reports surge in third quarter earnings(4:33 pm ET)
SAN FRANCISCO (MarketWatch) - Apple Inc. reported a surge in third-fiscal quarter earnings on Tuesday afternoon, solidly beating Wall Street's estimates. For the quarter ended June 25, Apple (AAPL: news, chart, profile) reported net income of $7.31 billion, or $7.79 per share, compared to net income of $3.25 billion, or $3.51 per share, for the same period the previous year. Revenue surged 82% to $28.6 billion for the quarter. Analysts had been expecting earnings of $5.80 per share on revenue of $24.9 billion, according to consensus forecasts from Thomson Reuters. For the quarter ending Sept. 30, Apple said it expects revenue of $25 billion and earnings per share of $5.50. Analysts were expecting revenue of $27.7 billion with earnings of $6.42 per share for the period.

CSX posts higher profit as freight demand rises(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- CSX Corp. (CSX: news, chart, profile) on Tuesday reported second-quarter earnings of $506 million, or 46 cents a share, up from $414 million, or 36 cents a share, a year ago. Revenue for the railroad operator rose 13% to $3.0 billion. Analysts polled by FactSet Research were looking for earnings, on average, of 44 cents a share with sales of $2.98 billion. CSX shares closed up 1.2% at $25.48 and have now rallied 54% in the past year amid a broader economic recovery in the United States.

Yahoo meets expectations with mixed results(4:10 pm ET)
SAN FRANCISCO (MarketWatch) - Yahoo Inc. (YHOO: news, chart, profile) said Tuesday its second-quarter net income rose to $237 million, or 18 cents a share, from $213 million, or 15 cents a share in the same period last year. The Sunnyvale, Calif.-based Internet media firm said net revenue for the period ended June 30 fell 5% to $1.1 billion. Analysts polled by FactSet Research had expected Yahoo to report second-quarter earnings of 18 cents a share, and $1.1 billion in net revenue.

VMware earnings nearly triple to $220 million(4:09 pm ET)
SAN FRANCISCO (MarketWatch) -- VMware Inc. (VMW: news, chart, profile) on Tuesday reported a fiscal second-quarter profit of $220 million, or 51 a share, on revenue of $921 million, compared with earnings of $75 million, or 18 a share on $674 million in sales in the same period a year ago. Excluding one-time items, VMware would have earned $235 million, or 55 cents a share Analysts surveyed by FactSet Research had forecast VMware to earn 47 cents a share on revenue of $872 million. The company also said that for its third quarter, it expects sales in a range of $915 million to $940 million.

(12:27 pm ET)
NEW YORK (MarketWatch) -- Shares of F5 Networks Inc. (FFIV: news, chart, profile) rose 5% on Tuesday afternoon to $117.45 ahead of the release of its fiscal third-quarter results Wednesday. The security software maker is expected to beat consensus estimates by a small margin, said Michael Genovese, an analyst at MKM Partners. Analysts surveyed by FactSet Research predict earnings of 91 cents a share, up from 88 cents a share in the previous quarter.

Avery Dennison skids 12% on downbeat outlook(11:43 am ET)
CHICAGO (MarketWatch) -- Shares of Avery Dennison Corp. were on the skids Tuesday, losing as much as 12% after the company said it expects lower second quarter sales and trimmed its full-year profit outlook. "In the second quarter, volume in our two largest segments was negatively impacted as consumer packaged goods companies and apparel retailers and brands became more cautious about consumer sentiment and the impact of rising retail prices to offset inflation," said Dean Scarborough, chief executive, in the announcement. Avery Dennison (AVY: news, chart, profile) fell $4.55 to $33.26 to become the worst percentage decliner in the S&P 500.

WebMD rebounds 9% in midday trading(11:27 am ET)
BOSTON (MarketWatch) -- Shares of WebMD Health Corp. (WBMD: news, chart, profile) rebounded 9% to $35.25 on Tuesday, the day after the stock plunged over 30% on a weakened 2011 outlook. On Monday, WebMD said it saw 2011 revenue coming in between $580 million and $600 million, and income from continuing operations of $71 million to $80 million. The company had previously forecasted revenue of $610 million to $640 million, and income from continuing operations of $80 million to $92 million. WebMD's earnings report will be released on Aug. 2.

Exchange rate, fewer recalls boost J&J sales(9:05 am ET)
BOSTON (MarketWatch) -- Johnson & Johnson (JNJ: news, chart, profile) reported better-than-expected second-quarter sales early Tuesday, thanks to a favorable exchange rate for the U.S. dollar. The health-care products heavyweight said that sales jumped 8.3% to $16.6 billion, with the currency rate contributing 5.7%. While domestic sales were virtually flat, international sales soared 15.9%, with the foreign exchange rate contributing 11%. Analysts had been expecting revenue of $16.24 billion, according to FactSet. Sales of consumer products rebounded nicely from last year's quarter, up 4%, as domestic sales jumped 8.5%. Last year's sales were negatively impacted by a series of recalls for many of its most popular over-the-counter medicines, including Motrin, Tylenol, and Benadryl. J&J shares were up marginally in premarket trading.

Apple Inc. shares near $380 a share for first time(8:35 am ET)
NEW YORK (MarketWatch) -- Shares of Apple Inc. (AAPL: news, chart, profile) rose 1.3% to $378.67 in pre-market trades on Tuesday. The stock is changing hands at an all-time high, ahead of the computer maker's third-quarter earnings due out later in the day. Less than nine years ago, Apple stock closed at $6.84 a share on Oct. 8, 2002.

Johnson & Johnson Q2 sales rise; price target kept(8:31 am ET)
NEW YORK (MarketWatch) -- Johnson & Johnson (JNJ: news, chart, profile) on Tuesday reported second quarter earnings of $2.78 billion or $1 a share, compared to $3.45 billion, or $1.23 a share in the year ago period. Excluding one-time items, second quarter earnings were $3.55 billion, or $1.28 a share, compared to $3.38 billion or $1.21 a share. Total revenue was $16.6 billion, 8.3% higher than the same period last year. Analysts surveyed by FactSet Research expected earnings of $1.24 a share, on revenue of $16.24 billion. The healthcare products and pharmaceuticals company maintained its earnings guidance for 2011 of $4.90 to $5 a share. Johnson & Johnson shares rose a fraction in pre-market trading.

Goldman Sachs shares drop 3.5% to 52-week low(8:18 am ET)
NEW YORK (MarketWatch) -- Shares of Goldman Sachs Group Inc. (GS: news, chart, profile) fell as much as 3.5% to a 52-week low in premarket trade Tuesday, after missing earnings targets. The company said that its second-quarter profit rose to $1.09 billion, or $1.87 a share, from $613 million, or 78 cents a share a year ago. Analysts polled by FactSet Research had expected the company to earn $2.35 a share, or revenue of $8.19 billion. The stock traded at $125.39 a share at the latest.

Goldman Sachs profit rises but misses target(8:09 am ET)
NEW YORK (MarketWatch) -- Goldman Sachs Group Inc. (GS: news, chart, profile) said on Tuesday that its second-quarter profit rose to $1.09 billion, or $1.87 a share, from $613 million, or 78 cents a share a year ago. The company reported net revenues of $7.28 billion, including interest income, versus $8.84 billion a year ago. Analysts polled by FactSet Research had expected the company to earn $2.35 a share, or revenue of $8.19 billion.

State Street profit rises (7:51 am ET)
NEW YORK (MarketWatch) -- State Street Corp. (STT: news, chart, profile) said on Tuesday that its second-quarter profit rose to $513 million, or $1 a share, compared to $432 million, or 87 cents a share a year ago. Total revenue during the period rose to $2.49 billion, from $2.30 billion.

Harley-Davidson net up; shipment estimate rises(7:35 am ET)
NEW YORK (MarketWatch) -- Harley-Davidson Inc., (HOG: news, chart, profile) the Milwaukee motorcycle producer, reported second-quarter net income more than doubled on 18% higher revenue, and it increased its estimate of shipments for the full year. For the quarter Harley-Davidson earned $190.6 million, or 81 cents a share, compared with $71.2 million, or 30 cents, in the year-earlier quarter. Continuing operations generated profit of 81 cents a share against 59 cents. Revenue reached $1.34 billion from $1.14 billion. A survey of analysts by FactSet Research produced consensus estimates of 72 cents a share on revenue of $1.26 billion. The company now expects shipments to rise 8% to 12% this year, to a range of 228,000 to 235,000 motorcycles.

Omnicom Group profit up 13%(7:35 am ET)
NEW YORK (MarketWatch) -- Omnicom Group Inc. (OMC: news, chart, profile) said Tuesday its second-quarter profit rose to $275.1 million, or 96 cents a share, from $243.3 million, or 79 cents a share, in the year-ago period. The advertising and marketing conglomerate's revenue increased by 14.7% to $3.49 billion. Wall Street analysts expected Omnicom to earn 92 cents a share on revenue of $3.67 billion, according to a survey by FactSet Research.

Bank of America posts loss; adjusted net up(7:23 am ET)
NEW YORK (MarketWatch) -- Bank of America Corp., (BAC: news, chart, profile) the Charlotte, N.C., banking firm, reported a second-quarter net loss of $8.8 billion, or 90 cents a share, against net income of $3.1 billion, or 27 cents, in the year-earlier period. Adjusted net income was 33 cents a share against 27 cents. A survey of analysts by FactSet Research produced a consensus estimate for the quarter of a loss of 85 cents. Bank of America said the results reflected its effort to resolve nearly all the legacy repurchase exposure of Countrywide as well as other mortgage-related costs. Credit costs dropped, sales-and-trading revenue improved and fees from asset management and investment banking climbed, the firm said.

Comerica profit rises 38%(7:13 am ET)
LONDON (MarketWatch) -- Comerica Inc. (CMA: news, chart, profile) said Tuesday that its second-quarter profit rose 38% to $95 million, or 53 cents a share, from $69 million, 39 cents a share, a year earlier. The group said net interest income dropped 7.3% to $391 million, but was more than offset by a sharp fall in provisions for loan losses to $47 million from $126 million. Analysts polled by FactSet Research had been expecting the group to report earnings of 53 cents a share.

KeyCorp net income more than triples(6:54 am ET)
MADRID (MarketWatch) -- KeyCorp on Tuesday reported second-quarter net income of $240 million, or 25 cents a share, against $70 million, or 3 cents a share, in the year-ago period. Revenue for the period fell 8.2% to $1.02 billion, against $1.12 billion in the year-ago period. Net interest income fell to $570 million against $623 million in the year-ago period. Nonnperforming assets declined $1.1 billion, and nonperforming loans decreased by $861 million from the year-ago quarter to $950 million and $842 million, respectively. Net charge-offs declined $301 million from the second quarter of 2010 to $134 million, or 1.11%, of average loan balances for the second quarter of 2011.

UnitedHealth profit up 13%, raises outlook(6:26 am ET)
FRANKFURT (MarketWatch) -- UnitedHealth Group Inc. (UNH: news, chart, profile) on Tuesday said second-quarter earnings jumped 12.8% to $1.27 billion, or $1.16 a share, from $1.12 billion, or 99 cents a share, in the same period a year ago. Revenues rose to $25.2 billion from $23.3 billion. A survey of analysts by FactSet Research produced a consensus forecast of 91 cents a share. The Minnetonka, Minn.-based health-care company said the results were highlighted by strong revenue growth from both its UnitedHealthcare and Optum businesses. The company raised its full-year 2011 projections for revenue to $101 billion, with net earnings now seen in the range of $4.15 to $4.25 a share. The company previously forecast full-year earnings of $3.95 to $4.05 a share. Analysts expect full-year profit of $4.20 a share, according to FactSet.

Hermes lifts outlook as sales rise 21%(2:42 am ET)
LONDON (MarketWatch) -- French luxury goods group Hermes International (FR:RMS: news, chart, profile) on Tuesday lifted its outlook for the year as it reported a 21% rise in first-half sales. The group said total sales in the period rose to 1.31 billion euros ($1.84 billion) from 1.07 billion euros, driven by growth in the U.S. and China. Hermes said operating profit for the period "should register a significantly higher growth than sales," and that its pretax profit margin should rise by four to five percentage points. For the year, the group lifted its target for consolidated revenue growth at constant exchange rates to a range of 12% to 14%, from its previous target of 8% to 10%.

Johnson Matthey underlying pretax profit rises 19%(2:25 am ET)
LONDON (MarketWatch) -- Specialty chemicals group Johnson Matthey PLC (UK:JMAT: news, chart, profile) said Tuesday that underlying pretax profit in its fiscal first quarter rose 19% to 98.2 million pounds ($157.6 million) as sales excluding precious metals grew 12% to 617 million pounds. The group said sales at its emission-control unit, which makes vehicle catalysts, rose 17% to 333 million pounds as disruption in parts of the business from the Japanese earthquake was more than offset by demand for heavy-duty diesel catalysts. The group said the outlook for the second quarter remains good and that its first-half results are therefore expected to be "significantly ahead" of the year-earlier period.

Novartis net profit rises 12% on sales gain of 27%(2:12 am ET)
MADRID (MarketWatch) -- Swiss pharmaceutical group Novartis AG (NVS: news, chart, profile) (CH:NOVN: news, chart, profile) on Tuesday announced second-quarter net attributable profit of $2.7 billion, against profit of $2.42 billion in the same period a year ago. Net sales rose 27% to $14.92 billion against $11.72 billion. A survey of analysts polled by Dow Jones Newswires was forecasting second-quarter net profit of $3.04 billion on sales of $14.49 billion. Novartis said sales were boosted 8% by a weaker dollar, while recently launched products grew 46% over the prior year-year, boosting sales by $3.8 billion. Group constant currency sales growth is expected to be around the double-digit mark, based on consolidation of Alcon for four months in 2010. Pharmaceuticals sales are expected to grow in the low-to mid-single digits, with volume growth more than offsetting the impact of generic competition. Alcon sales are expected to increase at a mid-to high-single digit rate, pro forma. Novartis said if June average exchange rates prevail for the rest of the year, the impact will likely have a 5% positive effect on sales and 3% negative effect on operating income for the full year.
Monday, July 18

Japan stocks fall post-holiday; banks, techs weak(8:13 pm ET)
LOS ANGELES (MarketWatch) -- Japanese stocks fell in early Tuesday trade, returning from a three-day weekend to price in concerns about European and U.S. sovereign debt. The Nikkei Stock Average (JP:NI225: news, chart, profile) lost 0.5% to 9,926.69, and the Topix dropped 0.5% to 855.36, with exporters and banks among the hardest hit. Amid global debt concerns and with the dollar hovering around the relatively weak 79-yen level, Sony Corp. (JP:6758: news, chart, profile) (SNE: news, chart, profile) gave up 1.3%, Nintendo Co. (JP:7974: news, chart, profile) (NTDOF: news, chart, profile) fell 3%, Elpida Memory Inc. (JP:6665: news, chart, profile) (ELPDF: news, chart, profile) was down 2.5%, and Panasonic Corp. (JP:6752: news, chart, profile) (PC: news, chart, profile) lost 1.6%. Among auto makers, Honda Motor Co. (JP:7267: news, chart, profile) (HMC: news, chart, profile) was down 1.4% and Mitsubishi Motors Corp. (JP:7211: news, chart, profile) (MMTOF: news, chart, profile) gave up 1.9%. In the financial sector, debt jitters sent Mitsubishi UFJ Financial Group Inc. (JP:8306: news, chart, profile) (MTU: news, chart, profile) down 2.8%, and Sumitomo Mitsui Financial Group Inc. (JP:8316: news, chart, profile) (SMFG: news, chart, profile) lower by 1.5%. Tracking U.S. losses, Tokyo-listed shares of Citigroup Inc. (JP:8710: news, chart, profile) (C: news, chart, profile) were down 3.1%.

Black & Decker triples profit(5:16 pm ET)
SAN FRANCISCO (MarketWatch) -- Stanley Black & Decker Inc. (SWK: news, chart, profile) reported late Monday its second-quarter profit rose to $197 million, or $1.14 a share, from a year-ago profit of $46 million, or 28 cents a share. Revenue for the three months increased to $2.6 billion from $2.4 billion a year ago. The earnings per share, excluding one-time items, were $1.17. Analyst polled by FactSet Research, who generally exclude one-time items, had predicted Black & Decker would earn $1.26 a share on $2.6 billion in revenue. The Connecticut-based tool maker also raised its yearly-earnings-per-share guidance by 25 cents to $5 to $5.25. Shares of Black & Decker were up 4 cents, to $68.65, in after-hours trade. The stock is up 34.4% over the past year.

Zions Bancorp swings to profit (4:51 pm ET)
SAN FRANCISCO (MarketWatch) -- Zions Bancorporation (ZION: news, chart, profile) reported late Monday a second-quarter profit of $29 million, or 16 cents a share, reversing a year-ago loss of $135 million, or 84 cents a share. Analysts polled by FactSet Research had expected the Salt Lake City, Utah-based regional bank to earn 17 cents a share. Net interest income for the quarter ended June 30 rose to $414.8 million from $184.7 million a year earlier. The bank, citing improved major credit indicators, said it reduced its provision for loan losses to $1.3 million from $60 million in the first quarter. Zions Bancorp shares rose 28 cents, or 1.2%, to $23.07 in after-hours trade.

Mosaic fourth-quarter profit jumps to $649.2 mln(4:32 pm ET)
SAN FRANCISCO (MarketWatch) -- Mosaic Co. (MOS: news, chart, profile) late Monday reported its fourth-quarter net income attributable to Mosaic rose to $649.2 million, or $1.45 a share, from $396.1 million, or 89 cents a share, in the same quarter last year. Revenue increased 54% to $2.86 billion. Analysts surveyed by FactSet Research had forecast earnings of $1.37 a share on revenue of $2.58 billion. "Looking to fiscal 2012, we anticipate another good year given continued healthy global nutrient demand," said Jim Prokopanko, president and chief executive officer of Mosaic, in a statement.

IBM net up as software, hardware sales rise(4:15 pm ET)
SAN FRANCISCO (MarketWatch) -- International Business Machines Corp. (IBM: news, chart, profile) said Monday its second-quarter net income rose to $3.66 billion, or $3 a share, from $3.39 billion, or $2.61 a share in the same period last year. Armonk, N.Y.-based IBM said revenue rose 12% to $26.7 billion. Analysts polled by FactSet Research had expected IBM to report earnings of $3.02 a share, and $25.4 billion in revenue for the quarter. IBM also said it is raising its earnings guidance for the full year, to "at least" $12.87 a share on a GAAP basis, from $12.73 a share. Shares of IBM fell nearly 1% in after-hours trading, following the earnings announcement.