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Tuesday, July 26

Linear Tech fourth-quarter profit rises 27%(5:16 pm ET)
SAN FRANCISCO (MarketWatch) -- Linear Technology (LLTC: news, chart, profile) late Tuesday reported its fourth-quarter net income rose to $158.2 million, or 68 cents a share, from $124.5 million, or 54 cents a share, in the same quarter last year. Net income in the fourth quarter benefited from a lower tax rate of 9.5% compared to 26% a year earlier. Revenue fell 2% to $358.6 million. Analysts surveyed by FactSet Research had forecast the company to report quarterly earnings of 55 cents a share on revenue of $358.8 million.

DreamWorks Animation profit climbs 42% (4:56 pm ET)
CHICAGO (MarketWatch) -- DreamWorks Animation SKG Inc. (DWA: news, chart, profile) shares were up 4% in after-hours trading Tuesday after it reported a 42% increase in second-quarter profit on better-than-expected revenue, propelled by the worldwide box office performance of "Kung Fu Panda 2." The company said it earned $34.1 million, or 40 cents a share, compared with a profit of $24 million, or 27 cents a share, in the same quarter a year ago. Revenue rose to $218.3 million from $158.1 million. Analysts polled by FactSet Research were expecting a profit of 41 cents a share on sales of $191.3 million. DreamWorks Animation said third quarter results are expected to be driven by the continued international box office performance of the "Kung Fu Panda" sequel, along with domestic pay television revenue from "Megamind."

Nabors posts higher profit, revenue jumps 40%(4:36 pm ET)
SAN FRANCISCO (MarketWatch) -- Nabors Industries Ltd. (NBR: news, chart, profile) reported late Tuesday its second-quarter profit rose to $192 million, or 65 cents a share, from a year-ago profit of $43.6 million, or 15 cents. Revenue for the three months ended June 30 increased to $1.36 billion from $907 million a year ago. Profit from continuing operations was 23 cents a share. Analysts polled by FactSet Research had predicted Nabors would earn 25 cents a share on $1.33 billion in revenue. Shares of the Bermuda-based onshore and offshore drilling contractor were up 18 cents at $27.31 in after-hours trade. The stock is up 45% over the past year.

Norfolk Southern profit aided by 18% revenue jump(4:27 pm ET)
SAN FRANCISCO (MarketWatch) -- Norfolk Southern Corp. (NSC: news, chart, profile) late Tuesday reported a much higher second-quarter profit as the railroad operator shipped more goods, offsetting higher fuel costs. Profit was $557 million, or $1.56 a share, up from $392 million, or $1.04 a share. The recent quarter was aided by one-time tax benefits that boosted profit by 18 cents a share. Norfolk Southern, whose trains run through 22 states, said railway operating revenues rose 18% to $2.9 billion. General merchandise and coal revenue both rose. So did expenses, up 17% to $2 billion. Increased costs to pay for fuel and compensation benefits were mostly to blame. Norfolk Southern shares closed at $75.55. The stock is up 20% year-to-date.

C.H. Robinson posts higher profit, misses target(4:24 pm ET)
SAN FRANCISCO (MarketWatch) -- C.H. Robinson Worldwide Inc. (CHRW: news, chart, profile) on Tuesday reported a second-quarter profit of $111.0 million, or 67 cents a share, up from $97.2 million, or 59 cents a share, a year ago. Revenue came in at $2.71 billion, up from $2.45 billion a year earlier. Analysts polled by FactSet Research were looking for a profit, on average, of 69 cents a share on sales of $2.70 billion. Shares of the shipping company fell more than 3% after the closing bell.

Macau, Singapore boost Las Vegas Sands (4:18 pm ET)
CHICAGO (MarketWatch) -- Las Vegas Sands said Tuesday that it swung back to profit in the second quarter, boosted by torrid growth in Macau and Singapore, along with a rebound in Las Vegas. Sands earned $368 million, or 45 cents a share, on the period, vs. a loss of $5 million, or a penny a share in the same quarter of 2010. On an adjusted basis, the company would have earned 54 cents a share, up from 17 cents. Revenue soared 47% to a record $2.35 billion. The average estimate of analysts polled by FactSet Research had been for the company to earn 44 cents a share on revenue of $2.21 billion. Shares of Sands (LVS: news, chart, profile) were up about 3% in after-hours trading.

Electronic Arts' earnings rise to $221 million(4:14 pm ET)
SAN FRANCISCO (MarketWatch) -- Electronic Arts Inc. (ERTS: news, chart, profile) on Tuesday reported a fiscal first-quarter profit of $221 million, or 66 cents a share, on total revenue of $999 million. During the same period a year ago, EA earned $96 million, or 29 cents a share, on revenue of $815 million. Excluding one-time items and deferred revenue from certain video game titles, EA would have lost $123 million, or 37 cents a share on sales of $524 million. By that measure, analysts surveyed by FactSet Research had forecast EA to lose 40 cents a share on revenue of $508.6 million. For its fiscal second-quarter, EA said it expects to lose between 3 cents and 13 cents a share, excluding one-time items, on revenue in a range of $925 million to $975 million. Analysts had earlier forecast EA to lose 4 cents a share on $902 million in sales.

Amazon earnings fall as spending jumps(4:08 pm ET)
SAN FRANCISCO (MarketWatch) - Amazon.com reported a decline in earnings for the second quarter despite strong revenue growth, as operating expenses jumped from the company's continued investments in its infrastructure and development of new products. For the quarter ended June 30, Amazon (AMZN: news, chart, profile) reported net income of $191 million, or 41 cents a share, compared with net income of $207 million, or 45 cents a share, for the same period last year. Revenue jumped 51% to $9.91 billion. Analysts were expecting earnings of 35 cents a share on revenue of $9.37 billion for the period, according to consensus estimates from Thomson Reuters. Amazon said it expects revenue to come in the range of $10.3 billion to $11.1 billion for the third quarter. Analysts had been expecting revenue of $10.35 billion for the period. Amazon.com shares climbed 6.2% in after-hours dealings.

LVMH profit soars on revenue, share gains(1:23 pm ET)
CHICAGO (MarketWatch) -- LVMH Moet Hennessy Louis Vuitton said Tuesday that its revenue hit a record 10.3 billion euros ($14.9 billion) in the first half of the year, an increase of 13%, while profit from continuing operations spiked 22% to 2.2 billion euros ($3.19 billion). All of the company's business units were up, LVMH (LVMHF: news, chart, profile) said, and all of its brands made market- share gains. "We approach the second half of the year with confidence and are relying upon the creativity and quality of our products as well as the effectiveness of our teams to pursue further market share gains in our historical markets as well as in high potential emerging markets," said Bernard Arnault, chief executive, in the earnings report.

Centene shares jump 8% on earnings report(11:13 am ET)
LOS ANGELES (MarketWatch) -- Shares of Centene Corp. (CNC: news, chart, profile) jumped more than 8% in morning trades Tuesday after the managed-care provider reported second-quarter earnings that exceeded expectations. Centene said net income was $28.4 million, or 54 cents a share, compared with $22.8 million, or 45 cents a shares, from a year ago. Revenue was $1.32 billion compared with last year's $1.08 billion. Thomson One said adjusted income was 71 cents a share, as analysts polled by the service had expected the company to earn 54 cents a share. The company's shares were up $2.89 to $37.14 in recent action.

Waters Corp. down 8% after earnings report(11:04 am ET)
SAN FRANCISCO (MarketWatch) -- Shares of Waters Corp. (WAT: news, chart, profile) were down 8.3% at $89.04 on Tuesday, after the company reported second-quarter earnings that missed analyst expectations. Profit rose to $100.1 million, or $1.07 a share, from $84.9 million, or 93 cents a year ago. Revenue increased over 14% to $447.6 million. Earnings per share, excluding one-time items, were $1.08. However, analysts polled by FactSet Research, who generally exclude one-time items, had predicted Waters to earn $1.15 a share on $451.1 million in revenue. Despite the decline, shares of the Massachusetts-based analytical instrument manufacturer are up nearly 38% over the past year.

E-Trade, Plum Creek head south; financials mixed(10:56 am ET)
SAN FRANCISCO (MarketWatch) -- Shares of E-Trade Financial (ETFC: news, chart, profile) fell 1.2% on Tuesday following a media report Monday that TD Ameritrade Holding's (AMTD: news, chart, profile) board will discuss a potential bid for the online brokerage. Plum Creek Timber Co. (PCL: news, chart, profile) shares also slid 3.4% after reporting quarterly earnings of 27 cents a share, slightly below 28 cents a share projected by analysts in a FactSet Research survey. But the Financial Select Sector SPDR ETF (XLF: news, chart, profile) , which tracks the financial stocks in the S&P 500 (SPX: news, chart, profile) , edged up 0.1% as Regions Financial (RF: news, chart, profile) rose 2.4% and Morgan Stanley (MS: news, chart, profile) climbed 1.7%. American International Group (AIG: news, chart, profile) also was a notable gainer, adding 1.1%.

Paccar shares drop 10% on earnings report(10:38 am ET)
SAN FRANCISCO (MarketWatch) -- Shares of Paccar Inc. (PCAR: news, chart, profile) were down nearly 10% at $45.39 in Tuesday morning trade, making it one of the biggest percentage losers on the S&P 500 Index (SPX: news, chart, profile) . Before the market opened Paccar reported a second-quarter profit that missed expectations. Profits more than doubled to $239.7 million, or 65 cents a share, from $99.6 million, or 26 cents a year ago. Revenue was up 61% from a year ago to $3.96 billion. However, analysts polled by FactSet Research had expected Paccar to earn 68 cents a share on $3.56 billion in revenue. The Washington-based heavy truck maker also lowered its sales guidance for its heaviest vehicles from between 200,000 and 220,000 to 180,000-200,000.

Cummins Inc. up nearly 5% after profits double(10:20 am ET)
SAN FRANCISCO (MarketWatch) -- Shares of Cummins Inc. (CMI: news, chart, profile) were up 4.5% at $111.49 in Tuesday morning trade to be one of the top percentage gainers on the S&P 500 Index (SPX: news, chart, profile) . Before the market opened, Cummins reported its second-quarter earnings, easily beating analyst expectations. Profits more than doubled at $505 million, or $2.60 a share, from $246 million, or $1.25 a share a year ago. Revenue for the three months was $4.64 billion. Excluding one-time items, earnings per share were $2.41. Analysts polled by FactSet Research, who generally exclude one-time items, had predicted Cummins to earn $2.01 a share on $4.25 billion in revenue. The Indiana-based manufacturer of engines and power generation systems also raised its yearly revenue guidance $1 billion to $18 billion.

New single-family home sales fall to 312,000 rate(10:15 am ET)
WASHINGTON (MarketWatch) - Sales of new single-family homes fell 1.0% in June to an annual rate of 312,000, as purchases in the Northeast dropped to the lowest level on record, the Commerce Department reported Tuesday. Economists surveyed by MarketWatch had expected single-family home sales to increase to an annual rate of 325,000 on a seasonally adjusted basis. Sales for May were revised slightly lower to an annual rate of 315,000. The median sales price jumped 5.8% to $235,000 last month from $222,400 in May. At the current sales pace, there was a 6.3 months supply of new homes. The number of newly completed homes on the market at the end of June, meanwhile, fell to a record low of 164,000.

Netflix shares drop on revenue shortfall, outlook(10:10 am ET)
CHICAGO (MarketWatch) -- Shares of video rental provider Netflix Inc. (NFLX: news, chart, profile) were down 9% Tuesday morning, the biggest drop among S&P 500 companies, after it reported weaker-than-expected second-quarter revenue and issued third-quarter revenue estimates that fell far short of most analyst forecasts. Netflix earlier this month raised the price for its DVD-and-streaming-video combination plan to $15.98 from $9.99, prompting an angry response from many subscribers. Netflix now expects third-quarter revenue of $780 million to $805 million, vs. the $845.3 million average projection of analysts polled by Thomson Reuters.

Petroleum shares lose ground; Weatherford rallies(9:52 am ET)
NEW YORK (MarketWatch) -- Energy stocks traded across the board on Tuesday, with shares of petroleum producers down while natural gas producers and oil service firms rose, as Weatherford International (WFT: news, chart, profile) rallied 8.2%. Checking the major energy sector gauges, the NYSE Arca Oil Index (XX:XOI: news, chart, profile) fell 0.4% to 1,336. The NYSE Arca Natural Gas Index (XX:XNG: news, chart, profile) rose 0.1% to 710. The Philadelphia Oil Service Index ($OSX: news, chart, profile) rose 0.7%. National Oilwell Varco (NOV: news, chart, profile) rose 4%. Occidental Petroleum (OXY: news, chart, profile) dipped 1.2%. Valero Energy Corp. (VLO: news, chart, profile) dropped 2.9%.

Sanmina shares jump on results, outlook(9:47 am ET)
SAN FRANCISCO (MarketWatch) -- Shares of Sanmina-SCI Corp. jumped more than 15% to $10.65 on Tuesday morning after the contract electronics manufacturer reported better-than-expected earnings for the third fiscal quarter. Late Monday, Sanmina (SANM: news, chart, profile) reported that earnings came in at 42 cents a share, excluding certain items, which beat the 35 cents a share expected by analysts. The company also projected earnings in the range of 40-44 cents a share for the current quarter on a non-GAAP basis - in line with analysts' estimates.

Lexmark shares climb 15% after earnings report(9:48 am ET)
SAN FRANCISCO (MarketWatch) -- Lexmark International Inc. (LXK: news, chart, profile) shares rose $4.19, or more than 15%, to $33.12 Tuesday after the printer company reported upbeat second-quarter results before the market opened. For its fiscal third quarter, Lexmark said it expects to earn between 86 cents and 96 cents a share, or between 94 cents and $1.04 a share excluding one-time items. Lexmark also said its third-quarter revenue should be flat to down slightly from the same period a year ago.

Baidu shares jump 5%; earnings rise 95% (9:45 am ET)
NEW YORK (MarketWatch) -- Baidu Inc. (BIDU: news, chart, profile) shares rose 5% Tuesday at the market's open, after posting a 95% jump in second-quarter earnings the previous day. On Monday evening, the Chinese search engine reported earnings of RMB 1.6 billion ($252.6 million), or RMB 4.67 (72 cents) a share. Second-quarter revenue was RMB 3.4 billion ($528.4 million), up 78% from the year-ago period. Chinese Internet stocks have invited a flurry of investor interest recently. U.S. listed shares of Baidu have been up 70% this year.

Lexmark reports 19% profit rise(9:13 am ET)
SAN FRANCISCO (MarketWatch) -- Lexmark International Inc. (LXK: news, chart, profile) on Tuesday reported a fiscal second-quarter profit of $101.3 million, or $1.27 a share, on revenue of $1.04 billion. During the same period a year ago, the printer maker earned $85.1 million, or $1.07 a share, on $1.03 billion in sales. Excluding one-time items, Lexmark would have earned $1.36 a share, while analysts surveyed by Thomson Reuters had forecast the company to earn $1.03 a share on revenue of $1.01 billion.

Chrysler widens loss on debt payment; sales up 30%(9:10 am ET)
NEW YORK (MarketWatch) -- Chrysler Group LLC said Tuesday its second-quarter loss widened to $370 million, from a loss of $172 million, while revenue increased 30% to $10.5 billion. The privately-held Auburn Hills, Mich., car and truck maker said its adjusted net income for the latest quarter totaled $181 million, after breaking out $551 million for the extinguishment of debt. U.S. market share rose to 10.6% from 9.4%. For 2011, Chrsyler said it expects net revenue of $55 billion, and adjusted net income of $200 million to $500 million, with free cash flow of $1 billion.

AK Steel misses estimates, stock down 6%(9:06 am ET)
NEW YORK (MarketWatch) -- AK Steel Holding Corp. (AKS: news, chart, profile) on Tuesday reported second-quarter earnings of $33.1 million, or 30 cents a share, compared $26.7 million, or 24 cents a share in the year-ago period. Revenue was $1.80 billion, 12% higher than the same period last year. On a continuing basis, excluding a $2 million charge related to state law tax changes, net income was 32 cents a share. Analysts surveyed by FactSet Research expected earnings of 49 cents a share, on revenue of $1.81 billion. The West Chester, Ohio-based steel company said it expects the average per-ton selling price of steel to decline about 1% in third quarter along with higher costs for raw materials. Steelmaker AK Steel (AKS 12.81, -2.71) ended down 17.5% after posting disappointing third quarter results.

Illinois Tool Works Q2 earnings miss targets(8:51 am ET)
NEW YORK (MarketWatch) -- Illinois Tool Works Inc. (ITW: news, chart, profile) on Tuesday reported second-quarter earnings of $498 million, or 99 cents a share, compared to $411 million, or 81 cents a share in the year-ago period. On a continuing basis, profit was 96 cents a share. Operating revenue was $4.6 billion, 17.5% higher than the same period last year. Analysts surveyed by FactSet Research expected earnings of $1.02 a share, on revenue of $4.7 billion. Revenue growth was "slightly below our original expectations," said David Speer, chairman and chief executive officer. Illinois Tool Works is adjusting its 2011 full year earnings guidance to a range of $4.05 to $4.21 per share. Illinois Tool Works shares fell 3.5% in pre-market trading.

Cummins doubles profit to $505 mln, stock up 5%(8:38 am ET)
NEW YORK (MarketWatch) -- Cummins Inc. (CMI: news, chart, profile) on Tuesday reported fiscal second-quarter earnings of $505 million, or $2.60 a share, compared $246 million, or $1.25 a share in the year-ago period. Total revenue was $4.64 billion, 45% higher than the same period last year. On a continuing basis, revenue excluding a $68 million gain on the sale of the exhaust business, net income was $2.41 a share. Analysts surveyed by FactSet research expected earnings of $2.01 a share, on revenue of $4.26 billion. Cummins raised its guidance for 2011 to revenues of $18 billion and the Columbus, Ind.-based company had previously expected revenues of $17 billion. Shares of Cummins were up 4.8% in pre-market trading.

Valero net income rises; shares down in pre-market(8:35 am ET)
NEW YORK (MarketWatch) -- Valero Energy Corp. (VLO: news, chart, profile) said Tuesday its second-quarter net income climbed to $744 million, or $1.30 a share, from $583 million, or $1.03 a share, in the year-ago period. Income from continuing operations rose to $1.30 a share from 92 cents a share. Operating income rose to $1.3 billion, from $904 million. Revenue rose to $31.3 billion, from $20.6 billion. During the quarter, Valero said it booked an increase of $1.84 a barrel in refining throughput margins, plus it boosted refining volume by 136,000 barrels a day. Wall Street analysts expected the San Antonio, Texas-based refiner to earn $1.45 a share on revenue of $29.1 billion, according to a survey by FactSet Research. Shares of Valero fell 1.5% in pre-market trades.

Occidental Petroleum profit up 71% to $1.82 bln(8:18 am ET)
NEW YORK (MarketWatch) -- Occidental Petroleum Corp. (OXY: news, chart, profile) on Tuesday reported fiscal second quarter earnings of $1.82 billion, or $2.23 a share, compared $1.06 billion, or $1.32 a share in the year ago period. Total revenue was $6.17 billion, 34% higher than the same period last year. Analysts surveyed by FactSet research expected earnings of $2.18 a share, on revenue of $5.88 billion. The Los Angeles-based oil and gas company said that realized prices on all products improved on a year-over-year basis and the price for worldwide crude oil increased to $103.2 per barrel compared to $74.39 a barrel in the second quarter last year.

3M meets earnings targets; shares fall 2.7% (8:11 am ET)
NEW YORK (MarketWatch) -- 3M Co. (MMM: news, chart, profile) on Tuesday reported second-quarter earnings of $1.2 billion, or $1.60 a share, compared $1.1 billion, or $1.54 a share in the year-ago period. Total revenue was $7.7 billion, 14% higher than the same period last year. Analysts surveyed by FactSet Research expected earnings of $1.59 a share, on revenue of $7.6 billion. The Minnesota-based technology company raised the low-end of its guidance for 2011 full-year earnings to a range of $6.10 to $6.25 a share, compared to its earlier expectation of $6.05 to $6.25 a share. 3M shares fell 2.7% in pre-market trading.

GlaxoSmithKline climbs after results(8:11 am ET)
LONDON (MarketWatch) -- Shares in pharmaceutical giant GlaxoSmithKline PLC (UK:GSK: news, chart, profile) (GSK: news, chart, profile) rose 1.8% Tuesday after the group said it swung to a second-quarter profit of 1.11 billion pounds ($1.82 billion) from a year-earlier loss of 304 million pounds, when it took a big legal charge. Before restructuring charges, the group reported a net profit of 1.27 billion pounds. Sales fell 4.3% to 6.72 billion pounds. Analysts had been expecting a profit of 1.29 billion pounds on sales of 6.65 billion pounds. The group said it expects to deliver more cost savings than originally expected. Additional annual savings of around 300 million pounds will bring the total annual savings to 2.5 billion pounds by 2012, it added.

National Oilwell Varco Q2 profit up to $481(7:57 am ET)
NEW YORK (MarketWatch) -- National Oilwell Varco Inc. (NOV: news, chart, profile) on Tuesday reported fiscal second quarter earnings of $481 million, $1.13 a share, compared $401 million, or 96 cents a share in the year ago period. Total revenue was $3.51 billion, 19% higher than the same period last year. On continuing basis, net income was $484 million, or $1.14 a share. Analysts surveyed by FactSet research expected earnings of $1.01 a share, on revenue of $3.25 billion. All three segments, Rig Technology, Petroleum Services & Supplies and Distribution Services were up in second quarter compared with same period last year.
http://www.marketwatch.com/news/markets/earningswatch.asp