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Friday, July 22

Analyst calls Human Genome sell-off "overdone"(2:45 pm ET)
BOSTON (MarkeWatch) -- In a note to investors Friday, Leerink Swann analyst Joseph Schwartz said that the current sell-off of shares of Human Genome Sciences (HGSI: news, chart, profile) was "overdone." Investors pushed down shares of the biotech group by almost 8% to $21.28 Friday on concerns that quarterly sales of the company's new lupus drug Benlysta were weaker than expected. "We believe today's Human Genome stock weakness is overdone, misplaced and likely a knee-jerk reaction to the headline 'miss' last night after the close," wrote Schwartz. "In fact including $1.2 million stocking, as some companies would report the numbers, Benlysta sales (plus deferred sales) actually beat expectations. We think the numbers going forward are very achievable and would use weakness as buying opportunity," Schwartz added.

Molina Healthcare down 9% on earnings report(1:16 pm ET)
LOS ANGELES (MarketWatch) -- Shares of Molina Healthcare (MOH: news, chart, profile) tumbled by more than 9% Friday, a day after the managed-care provider reported second-quarter earnings that, upon closer examination, were more of a miss than first thought, according to analysts. Molina said net income was $17.4 million, or 38 cents a share, compared with $10.6 million, or 27 cents a share, for the same period a year ago. Revenue was $1.17 billion against last year's $999.3 million. Some analysts said a few items noted deep within the company's earnings release that boosted earnings amounted to one-time gains. The analysts said the figures indicate that Molina's profits amounted to 27 cents a share, falling short of the 36 cents predicted by analysts polled by FactSet Research.

Skyworks shares jump on results, forecast(9:52 am ET)
SAN FRANCISCO (MarketWatch) -- Shares of Skyworks Solutions Inc. (SWKS: news, chart, profile) jumped more than 13% to $25.75 on Friday morning after the chip maker reported a strong gain in earnings for its third fiscal quarter and issued better-than-expected guidance for the current period. The company's products are used in smartphones, tablets and other wireless devices. Skyworks projected earnings of 53 cents a share on revenue of $400 million for the current quarter, which came in ahead of Wall Street's estimates of earnings at 50 cents a share on revenue of $370 million.

Coinstar shares drop on Redbox news(9:47 am ET)
SAN FRANCISCO (MarketWatch) -- Shares of Coinstar (CSTR: news, chart, profile) fell more than 8% to $53.64 Friday morning. Late Thursday, the company announced that the president of its Redbox unit was resigning to pursue another opportunity. The company also pre-announced revenue for the June quarter that was below Wall Street's estimates. The stock had run up by nearly 25% in the previous month.

GE sees return to industrial profit growth in 2H(8:57 am ET)
WASHINGTON (MarketWatch) -- General Electric Co. (GE: news, chart, profile) is saw "very strong" industrial-order growth in the second quarter, particularly for its energy-production equipment and services, Chairman and Chief Executive Jeff Immelt said Friday. That bodes well for the conglomerate's outlook, Immelt said on a call with analysts, adding he expects energy infrastructure profit growth to return in the second half of the year. However, the company's industrial profit growth outlook is unchanged, he said. Every business in GE's industrial segment saw double-digit percentage order growth in the recent quarter, with orders from China up 32% and Latin America up 45%, Immelt said. Shares of GE rose nearly 2% premarket to $19.49.

Schlumberger turns in 'nice' quarter: analyst(8:38 am ET)
NEW YORK (MarketWatch) -- Schlumberger Ltd.'s (SLB: news, chart, profile) second-quarter revenue and earnings before interest and taxes beat estimates, Houston-based equity research firm Tudor Pickering Holt said in a note to clients on Friday. Summing up the performance from the oilfield services firm, analysts said Schlumberger turned in a "nice" quarter, with better-than-expected results in Latin America and the Middle East, but the results were offset by weaker-than-expected performance in Europe and Africa. Shares of Schlumberger rose 3% to $93.68 in pre-market trades.

Honeywell raises guidance; shares fall 1.7% (8:34 am ET)
NEW YORK (MarketWatch) - Honeywell International Inc. (HON: news, chart, profile) on Friday reported second quarter earnings of $810 million, or $1.02 a share, compared to $566 million, or 73 cents a share in the year-ago period. Total revenue was $9.1 billion, 15% higher than the same period last year. Those figures exclude 2011 sales of $234 million as well as $235 million in 2010 from Consumer Products Group operations, now discontinued, Analysts surveyed by FactSet Research expected earnings of 98 cents a share, on revenue of $9.2 billion. Street estimates had included figures from the discontinued operations. The technology and manufacturing company raised its earnings guidance for 2011 to a range of $3.85 to $4.00 a share, compared to its earlier estimate of $3.80-$3.95 per share. Honeywell shares fell 2.1% in pre-market trading.

McDonald's 2nd-quarter net up 15%, revenue up 16%(8:21 am ET)
NEW YORK (MarketWatch) -- McDonald's Corp., (MCD: news, chart, profile) the Oak Brook, Ill., restaurant chain, reported second-quarter net income rose 15% on 16% higher revenue and 5.6% higher global comparable sales. Earnings reached $1.41 billion, or $1.35 a share, from $1.23 billion, or $1.13, in the year-earlier quarter. Revenue climbed to $6.91 billion from $5.95 billion. A survey of analysts by FactSet Research produced a consensus estimate of $1.28 a share of profit on $6.63 billion of revenue. Operating earnings rose 6% in the U.S., 24% in Europe and 34% in the Asia-Mideast-Africa region, the company said in a Friday statement. Europe's earnings were up 10% in constant currencies, led by strength in France, the U.K. and Russia. July comparable sales should rise 4% to 5%, MCD said.

Caterpillar profit up 44%, raises 2011 guidance(8:07 am ET)
NEW YORK (MarketWatch) -- Caterpillar Inc. (CAT: news, chart, profile) on Friday reported fiscal second quarter earnings of $1.02 billion, $1.52 a share, compared $707 million, or $1.09 a share in the year ago period. Total revenue was $14.23 billion, 37% higher than the same period last year. On continuing basis, revenue excluding a $204 million expense related to the acquisition of Bucyrus, net income rose to $1.72 a share, up from $1.09 a share in second quarter last year. Analysts surveyed by FactSet research expected earnings of $1.74 a share, on revenue of $13.30 billion. Caterpillar raised its guidance for 2011 to revenues in the range of $54 to $56 billion and earnings per share of $6.75 to $7.25, excluding the impact of the Bucyrus acquisition. The Peoria, Ill.-based company previously expected revenues between $52 and $54 billion and earnings per share of $6.25 to $6.75. Shares of Caterpillar dropped 5.5% in pre-market trading.

Rockwell Collins quarterly profit climbs 11%(8:07 am ET)
NEW YORK (MarketWatch) -- Rockwell Collins Corp. (COL: news, chart, profile) said Friday its fiscal third-quarter profit rose to $158 million, or $1.01 share, from $142 million, or 89 cents a share, in the year-ago period on strong demand for its commercial aircraft products. Sales dipped 1% to $1.19 billion, however, as sales to the U.S. declined. Analysts surveyed by FactSet Research were looking for earnings of $1.03 a share, on average, with sales of $1.26 billion. The Cedar Rapids, Iowa-based aerospace company raised the lower end of its full-year guidance by 10 cents to a range of $4 to $4.10 a share.

Verizon swings to profit, names new CEO(7:39 am ET)
NEW YORK (MarketWatch) -- Verizon Communications Inc., (VZ: news, chart, profile) the New York telecom-services firm, swung to a second-quarter profit from a year-earlier loss on 2.8% higher revenue, and it named a new chief executive. Earnings were $1.61 billion, or 57 cents a share, compared with a loss of $1.19 billion, or 42 cents, in the year-earlier quarter. The year-ago period reflects the impact of a voluntary severance program that pared 11,900 staffers. Revenue reached $27.54 billion from $26.77 billion. A survey of analysts by FactSet Research produced a consensus estimate of 55 cents of profit on $27.47 billion of revenue. Profit margins widened from the first quarter in both the wireline and wireless businesses, the company said in a Friday statement. Verizon named Lowell C. McAdam, currently chief operating officer, as its new CEO. McAdam, 57, retains the title of president. As CEO, effective Aug. 1, he'll succeed Ivan G. Seidenberg, who remains chairman.

Xerox 2nd-quarter net up 41%; year outlook raised(7:24 am ET)
NEW YORK (MarketWatch) -- Xerox Corp., (XRX: news, chart, profile) the Norwalk, Conn., document-management-technology company, reported second-quarter net income rose 41% on 1.9% higher revenue, and it lifted its earnings outlook for the year. Earnings reached $319 million, or 22 cents a share, from $227 million, or 16 cents, in the year-earlier period. The latest adjusted net income was 27 cents a share. Revenue climbed to $5.61 billion from $5.51 billion. A survey of analysts by FactSet Research produced consensus estimates of 24 cents a share of profit on $5.62 billion of revenue. For the year, Xerox now expects to earn 91 cents to 96 cents a share, or an adjusted $1.07 to $1.12. Previously, Xerox had estimated 89 cents to 94 cents reported and $1.05 to $1.10 adjusted. FactSet's survey is looking for profit of $1.07.

GE 2nd-quarter net up 21%, revenue off 3.5%(6:57 am ET)
NEW YORK (MarketWatch) -- General Electric Co., (GE: news, chart, profile) the Fairfield, Conn., industrial and financial-services firm, reported second-quarter net income rose 21% on 3.5% lower revenue. Earnings reached $3.77 billion, or 35 cents a share, from $3.11 billion, or 28 cents, in the year-earlier period. Operating earnings were 34 cents versus 29 cents. Earnings from continuing operations were 33 cents versus 29 cents. Revenue fell to $35.63 billion from $36.93 billion. A survey of analysts by FactSet Research produced a consensus estimate of 32 cents a share of profit on $34.72 billion of revenue. GE Capital performed strongly in the quarter; its "portfolio transformation is ahead of schedule," Chairman and Chief Executive Jeff Immelt said in a Friday statement. The group backlog sits at a record $189 billion, GE said.

Air Products earns $1.50 a share as sales rise 11%(6:27 am ET)
MADRID (MarketWatch) -- Global supplier of industrial gases and equipment Air Products & Chemicals Inc. (APD: news, chart, profile) on Friday reported fiscal third-quarter net profit of $326.5 million, or $1.50 a share, against a profit of $253.2 million, or $1.17 a share, in the year-ago period. The latest profit includes a 4-cent gain related to a tax benefit of the group's healthcare operations in 2009. Sales for the group rose 11% to $2.58 billion against $2.25 billion in the year-ago period. A survey of analyst polled by FactSet Research called for the company to earn $1.46 a share on sales of $2.52 billion. The group sees fourth-quarter EPS in a range of $1.48 to $1.53. Analysts polled by FactSet are calling for fourth-quarter EPS of $1.53.

Schlumberger 2nd-period net up 64%, revenue up 62%(6:25 am ET)
NEW YORK (MarketWatch) -- Schlumberger Ltd., (SLB: news, chart, profile) the Paris oil-services firm, reported second-quarter net income rose 64% on 62% higher revenue. Profit reached $1.34 billion, or 98 cents a share, from $818 million, or 68 cents, in the year-earlier period. The latest earnings from continuing operations were 87 cents. Revenue rose to $9.62 billion from $5.94 billion. A survey of analysts by FactSet Research produced consensus estimates of 85 cents of profit on $9.19 billion of revenue. Growth was strong worldwide, and all product groups posted double-digit revenue rises, Chairman and Chief Executive Andrew Gould said in a Friday statement.

SunTrust swings to profit as provisions fall(6:18 am ET)
LONDON (MarketWatch) -- SunTrust Banks Inc. (STI: news, chart, profile) on Friday reported a second-quarter profit available to common shareholders of $174 million, or 33 cents a share, compared to a loss of $56 million, or 11 cents a share, a year earlier. Total revenue for the quarter rose 3% to $2.17 billion, while provisions for credit losses dropped 41% to $392 million. "While the economic recovery remains uneven, we continued to demonstrate meaningful improvements in asset quality," said President and CEO William Rogers. Analysts polled by FactSet Research had been expecting earnings of 31 cents a share on revenue of $2.15 billion.

Julius Baer results hit by strong franc(2:47 am ET)
LONDON (MarketWatch) -- Swiss private bank Julius Baer Group AG (CH:BAER: news, chart, profile) said Friday that its first-half net profit dropped 25% to 196.3 million Swiss francs ($240.5 million) due to a previously-announced payment to settle a German investigation into the bank and its employees over offshore accounts. Excluding this settlement, profit was down 5.2% at 247.5 million francs as the strength of the Swiss currency hurt the group's results. Julius Baer said its cost-to-income ratio jumped to 67.6% from 63.4% because most of its expenses are in francs, while much of its income is in euros and dollars.

TomTom swings to loss after impairment(2:45 am ET)
MADRID (MarketWatch) -- Dutch navigation products and services provider TomTom NV (NL:TOM2: news, chart, profile) on Friday said it swung to a second-quarter loss of 489 million euros ($704 million), against a profit of €34 million in the year-ago period as it took a non-cash impairment charge of €512 million and restructuring charges of €200 million. Sales for the group fell 13% to €314 million, against €362 million in the year-ago period. For 2011, the group expects revenue between €1.23 billion and €1.28 billion and earnings per share between €0.25 and €0.30, excluding impairment. "We have seen a decline of the PND (personal navigation device market) against a background of a weak consumer electronics market which impacted our consumer business," said Harold Goddijn, chief executive officer. He said based on the outlook for the PND market, TomTom will reduce its cost base in coming quarters to keep cashflow healthy. The company said it expects PND markets to continue declining into the second half of the year, with core markets falling at the high end of a previously committed range of between 15% and 20%, with a steep decline in the North American market a primary cause.

EasyJet revenue up 23%(2:30 am ET)
LONDON (MarketWatch) -- U.K. low-cost airline easyJet PLC (UK:EZJ: news, chart, profile) said Friday that revenue for the quarter ended June 30 rose 23% to 935 million pounds ($1.52 billion). The total number of passengers carried by the airline grew 17% to 14.4 million and was up 8.8% excluding the year-earlier impact of cancellations from the volcanic eruption in Iceland. Total revenue per seat grew 5.2% to 56.02 pounds. The company said it expects to deliver a pretax profit for the year ended Sept. 30 of between 200 million pounds and 230 million pounds.

Vodafone group revenue up 3.5%; confirms outlook (2:27 am ET)
MADRID (MarketWatch) -- Mobile phone company Vodafone Group PLC (VOD: news, chart, profile) (UK:VOD: news, chart, profile) on Friday said group revenue for the first quarter rose 3.5% to 11.67 billion pounds ($19 billion), and rose 2.3% on an organic basis. Group service revenue for the period rose 2.6% to GBP10.86 billion, up 1.5% on an organic basis. Sales rose 5.8% in Africa, Middle East and Asia Pacific and 8.7% organically and 1.2% in Europe -- a 1.3% loss on an organic basis. Service revenue was particularly weak in Spain, where it fell 9.9% on an organic basis. The company confirmed its full-year guidance. "We have made a good start to the year, reporting robust results despite challenging macroeconomic conditions across southern European economies and the impact of cuts to mobile termination rates," said Vittorio Colao, chief executive officer.

Volvo net profit up 63% as sales rise 16%(2:07 am ET)
MADRID (MarketWatch) -- Swedish truckmaker Volvo AB (SE:VOLVB: news, chart, profile) on Friday reported second-quarter attributable net profit of 5.12 billion Swedish kronor ($814 million), against SEK3.15 billion, a gain of 63% as emerging market demand boosted sales, which are now at the same level as before the financial crisis of a few years ago. Volvo reported a 16% rise in sales for the quarter to SEK77.29 billion, against the year-ago SEK66.72 billion. Adjusted for current movements and acquired and divested units, sales rose 29%. A survey of analysts polled by Dow Jones Newswires were forecasting profit of SEK4.93 billion on sales of SEK79.87 billion. Leif Johansson, president and chief executive officer of Volvo, said the company is maintaining a "high degree of cost flexibility in order to quickly adapt to any potential changes in market conditions."
Thursday, July 21

Chubb profit down 19%; outlook raised(4:28 pm ET)
SAN FRANCISCO (MarketWatch) -- Insurer Chubb Corp. (CB: news, chart, profile) late Thursday reported second-quarter profit fell 19% from a year ago as it dealt with claims from tornadoes and other storms in the U.S. Net income was $419, or $1.42 a share, down from $518 million, or $1.59 a share, in the same 2010 quarter. The severe weather cut Chubb's profit by 72 cents a share during the quarter. Operating income, which excludes after-tax realized investment gains and losses, dropped to $374 million from $416 million. Chubb said net premiums written increased 6% to $3.1 billion. The insurer raised its 2011 operating profit outlook to between $5.55 and $5.85 a share, up from $5.35 to $5.75 a share. Ahead of the report, Chubb shares closed up 1% at $62.56.

Western Digital earnings fall by more than 40%(4:24 pm ET)
SAN FRANCISCO (MarketWatch) -- Western Digital Corp. (WDC: news, chart, profile) on Thursday reported a fiscal fourth-quarter profit of $158 million, or 67 cents a share, on revenue of $2.4 billion, compared with earnings of $265 million, or $1.13 a share, on $2.38 billion in sales in the year-ago quarter. Excluding $35 million in expenses related to Western Digital's acquisition of Hitachi Global Storage Technologies, Western Digital would have earned $193 million, or 81 cents a share. Analysts surveyed by FactSet Research had forecast Western Digital to earn 68 cents a share on $2.3 billion in revenue.

Compuware Corp. reports 35% profit gain(4:23 pm ET)
SAN FRANCISCO (MarketWatch) -- Compuware Corp. (CPWR: news, chart, profile) reported late Thusrday fiscal first-quarter profit rose to $17 million, or 8 cents a share, from a year-ago profit of $12.6 million, or 6 cents a share. Revenue for the three months ended June 30 increased to $230 million from $206.5 million a year ago. Analysts polled by FactSet Research had predicted Compuware would earn 9 cents a share on $225.1 million in revenue. Shares of the Michigan-based software and web solutions provider were up 0.6% at $9.45 in after-hours trade. The stock is up nearly 13% over the past year.

Redbox president quits; revenue pre-announced(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Coinstar Inc. said Thursday afternoon that Mitch Lowe, president of the company's Redbox business, has resigned from the company. In a statement, Coinstar (CSTR: news, chart, profile) said Lowe is leaving "to pursue entrepreneurial and other interests, and will continue to serve as president until a successor is named." The company also announced preliminary results for the quarter ended June 30, with revenue for the period coming in between $434 million and $436 million. Analysts were expecting revenue of $446 million for the period. Shares of Coinstar were down more than 7% in after-hours trading following the announcements.

PMC Sierra profit falls 45%(4:21 pm ET)
SAN FRANCISCO (MarketWatch) -- PMC Sierra Inc. (PMCS: news, chart, profile) reported late Thursday fiscal second-quarter net profit fell to $16.7 million, or 7 cents a share, from $30.1 million, or 13 cents, a year ago. Revenue for the period ended June 26 rose 6.4% to $171.0 million from $160.7. Analysts polled by FactSet Research had forecast the company would earn 6 cents a share on $168 million in revenue. Shares of the Sunnyvale, Calif.-based internet infrastructure company gained 3% in after-hours trade.

SanDisk earnings beat targets on revenue gain(4:12 pm ET)
SAN FRANCISCO (MarketWatch) -- SanDisk Corp. reported better-than-expected sales and earnings for the second quarter on Thursday afternoon, thanks to strong demand for its flash memory products. For the quarter ended June 30, SanDisk (SNDK: news, chart, profile) reported net income of $248 million, or $1.02 a share, compared to net income of $258 million, or $1.08 a share, for the same period the previous year. Earnings on a non-GAAP basis came in at $278 million, or $1.14 a share, for the recent period. Analysts were expecting earnings of 99 cents a share on revenue of $1.34 billion, according to consensus estimates from FactSet Research.

Microsoft profit rises 30% in fourth quarter(4:10 pm ET)
SAN FRANCISCO (MarketWatch) -- Microsoft Corp. (MSFT: news, chart, profile) said Thursday its fiscal fourth-quarter net income rose to $5.87 billion, or 69 cents a share, from $4.52 billion, or 51 cents a share in the same period last year. The Redmond, Wash.-based software firm said revenue for the period ended June 30 rose 8% to $17.4 billion. Analysts polled by FactSet Research had expected Microsoft to report earnings of 59 cents a share, and $17.2 billion in revenue for the quarter.

PepsiCo slumps 5% on trimmed 2011 outlook(11:29 am ET)
CHICAGO (MarketWatch) -- Shares of PepsiCo slumped almost 5% Thursday after the snack and beverage behemoth toned down its growth expectations due to rising commodity costs and lackluster North American results. "The consumer in developed markets continues to be stressed, and the competitive environment in North America beverages has been particularly challenging," said Indra Nooyi, chief executive, in PepsiCo's (PEP: news, chart, profile) second-quarter earnings report released before the start of trading. The company is now targeting "high-single-digit" earnings per share growth for 2011, including a currency benefit of 2 percentage points, vs. a previous goal of 7% to 8% growth excluding currency.

Travelzoo shares slump 27% on quarterly results(10:47 am ET)
SAN FRANCISCO (MarketWatch) -- Shares of Travelzoo Inc. (TZOO: news, chart, profile) tanked 27% on Thursday after the company reported quarterly earnings that were below analysts' estimates. The Internet travel and media company early Thursday reported second-quarter profit of $4.9 million, or 30 cents a share, up from $3.3 million, or 20 cents a share, in the same quarter a year ago. Revenue increased to $37.6 million from $28.1 million a year earlier. Analysts surveyed by FactSet had forecast earnings of 38 cents a share on revenue of $40.1 million.