AI
Wednesday, October 24, 2012 1:08:10 PM
ER121023: GLW YELP FB LCC GD LLY
Corning shares fall on downbeat outlook(11:19 am ET)
SAN FRANCISCO (MarketWatch) -- Shares of Corning Inc. (GLW: news, chart, profile) fell more than 8% to $12.25 on Wednesday morning after the company slightly exceeded analysts' expectations for its third-quarter results but gave a downbeat outlook for the coming year. "The weakening economy is affecting sales in many of our businesses, with several not achieving the growth expectations we set for the year," CFO James Flaw said in the company's earnings announcement. "We believe these economic headwinds will persist next year." The company did not give a specific revenue or earnings forecast. It's display technology segment saw revenue jump 19% in the third quarter. Corning makes specialized glass used in smartphone and tablet displays, among other product lines.
Yelp jumps on pre-announcement, acquisition(10:19 am ET)
SAN FRANCISCO (MarketWatch) -- Shares of Yelp Inc. jumped nearly 12% to $26.85 on Wednesday morning after the company pre-announced revenue for the third quarter that was better than analysts had expected. In a statement, Yelp (YELP: news, chart, profile) said it expects to report revenue of $36.4 million in its Nov. 1 earnings announcement. Analysts had been expecting revenue of $35.8 million for the period. Yelp also announced its acquisition of Qype, Europe's largest local reviews site, in a cash-and-stock deal worth about $50 million. Tom White of Macquarie said the deal "should help Yelp accelerate its expansion into Europe" in a note to clients.
Facebook's 21% share rise leads tech advance(9:51 am ET)
SAN FRANCISCO (MarketWatch) -- Big gains from Facebook Inc. (FB: news, chart, profile) highlighted activity in the tech sector Wednesday. Facebook's shares climbed 21%, to $23.55 a share, after the company reported quarterly results Tuesday that included signs of improvement in its mobile-advertising business. Apple Inc. (AAPL: news, chart, profile) also advanced, rising almost 2%, to $623.24 a day after unveiling the iPad mini. Netflix Inc. (NFLX: news, chart, profile) was a big decliner, with its shares down more than 13%, to $59, after the company cut its streaming-subscriber forecast for the year. The Nasdaq Composite Index ($COMPQ: news, chart, profile) rose more than 12 points to 3,002.
US Airways posts above-consensus adjusted profit(8:30 am ET)
WASHINGTON (MarketWatch) -- US Airways Group (LCC: news, chart, profile) reported a third-quarter net profit of $245 million, or $1.24 a share, up from $76 million, or 41 cents, earned in the same period during 2011. Quarterly revenue generated by the Tempe, Ariz.-based carrier reached $3.53 bilion from the prior year's $3.44 billion, as mainline revenue rose 2.8%. On an adjusted basis, the results showed, US Airways would have turned in a profit of 98 cents a share. The consensus of analysts surveyed by FactSet Research had been for the company to show a profit of 92 cents a share and revenue of $3.55 billion. "Looking forward, the revenue environment remains strong," said Doug Parker, chairman and chief executive of US Airways, in the earnings release. Shares gained more than 3% in the premarket.
Dr Pepper Snapple profit up 16%(8:28 am ET)
NEW YORK (MarketWatch) -- Dr Pepper Snapple Group Inc. (DPS: news, chart, profile) said Wednesday its third-quarter profit rose to $179 million, or 84 cents a share, from $154 million, or 71 cents a share, in the year-ago period. Adjusted earnings rose to 79 cents a share from 74 cents a share. Sales remained about flat at $1.53 billion. Wall Street analysts expected the company to earn 77 cents a share on sales of $1.56 billion, according to a survey by FactSet. Dr Pepper Snapple Group expects adjusted 2012 earnings of $2.90 to $2.98 a share. Analysts estimated 2012 earnings of $2.96 a share.
Kimberly-Clark profit rises 20%, lifts view(8:11 am ET)
NEW YORK (MarketWatch) -- Kimberly-Clark (KMB: news, chart, profile) said Wednesday its third-quarter profit increased 20% to $517 million, or $1.30 a share, from $432 million, or $1.09 a share, in the year-ago period. Adjusted profit rose to $1.34 a share from $1.26 a share. Sales fell 2.5% to $5.25 billion. Wall Street analysts expected the household products company to earn $1.32 a share on revenue of $5.34 billion, according to a survey by FactSet. Kimberly-Clark sees adjusted 2012 profit of $5.15 to $5.25 a share, up from its earlier estimate of $5.05 to $5.25 a share. Analyst had estimated 2012 earnings of $5.19 a share.
AT&T Q3 net and revenue about flat with year ago(8:09 am ET)
TEL AVIV (MarketWatch) -- AT&T Inc., (T: news, chart, profile) the Dallas telecom major, reported that third- quarter net income and revenue were about flat with the year-earlier period. Profit edged up to $3.64 billion, or 63 cents a share, from $3.62 billion, or 61 cents, in the year-earlier quarter. Adjusted profit was 62 cents a share against 59 cents. Revenue slipped to $31.46 billion from $31.48 billion. A survey of analysts by FactSet Research produced consensus estimates of 60 cents a share of profit on $31.57 billion of revenue. In a Wednesday statement, AT&T said that its wireless business was strong, with 4.7 million Apple (AAPL: news, chart, profile) iPhones activated and sales of Android (GOOG: news, chart, profile) and Windows (MSFT: news, chart, profile) smartphones posting a record quarter. Average revenue per user for postpaid wireless subscribers rose 2.4% to $65.20.
Bristol-Myers has quarterly loss, revises outlook(7:52 am ET)
WASHINGTON (MarketWatch) -- Bristol-Myers Squibb Co. (BMY: news, chart, profile) updated its 2012 profit forecast as the drug manufacturer reported a third-quarter net loss of $711 million, or 43 cents a share, a reversal from its profit of $969 million, or 56 cents, in the year-earlier period. Quarterly sales fell to $3.74 billion from the prior year's $5.35 billion. On an adjusted basis, the company would have turned in a profit of 41 cents a share for the latest quarter, down from 61 cents earned in the 2011 third quarter. The consensus of analysts polled by FactSet Research had been for earnings of 42 cents a share on revenue of $4 billion. The company cited U.S. patent expirations as a key factor behind the lower sales. As for 2012, Bristol-Myers Squibb now sees adjusted earnings toward the upper end of its previously established range of $1.90 to $2 a share.
Boeing profit down; 2012 view beats estimate(7:50 am ET)
NEW YORK (MarketWatch) -- Boeing Co. (BA: news, chart, profile) said Wednesday its third-quarter profit fell 6% to $1.03 billion, or $1.35 a share, from $1.1 billion, or $1.46 a share, in the year-ago period. Higher pension expenses impacted the latest quarter by 18 cents a share. Revenue at the aerospace firm rose 13% to $20 billion from $17.73 billion. Wall Street analysts expected Boeing to earn $1.12 a share on revenue of $20.07 billion, according to a survey by FactSet. Looking ahead, Boeing expects 2012 earnings of $4.80 and $4.95 a share. Wall Street analysts have estimated 2012 earnings of $4.72 a share for Boeing.
Corning profit rises(7:28 am ET)
NEW YORK (MarketWatch) -- Corning Inc. (GLW: news, chart, profile) said on Wednesday that it earned $521 million, or 35 cents a share in the third quarter, compared to $462 million, or 30 cents a share a year ago. Sales in the quarter rose to $2.04 billion, from $1.91 billion a year ago. Analysts polled by FactSet Research had expected the glass company to earn 32 cents a share on revenue of $2.02 billion.
EMC earns 40 cents a share in Q3, misses estimates(7:26 am ET)
LONDON (MarketWatch) -- EMC Corp. (EMC: news, chart, profile) on Wednesday reported a 3% rise in net profit in third quarter to $626 million, or 28 cents per share, from $606 million, or 27 cents a share in the year-ago-period. Adjusted earnings rose 7% to $881 million, or 40 cents a share, up from $823 million, or 37 cents a share. Revenue came in at $5.28 billion, a 6% increase compared to the same quarter last year. Analysts surveyed by FactSet expected earnings of 42 cents a share on revenue of $5.46 billion. The Hopkinton, Mass.-based tech company said it expects revenues for the full year to be between $21.60 billion and $21.75 billion, while net income is expected to come in between $2.72 billion and $2.77 billion.
General Dynamics profit falls by $52 million(7:24 am ET)
NEW YORK (MarketWatch) -- General Dynamics Inc. (GD: news, chart, profile) said Wednesday its third-quarter net earnings fell to $600 million, or $1.70 a share, from $652 million, or $1.80 a share, in the year-ago period. Revenue dipped to $7.85 billion from $7.93 billion. "Demand in the quarter was particularly strong for aerospace products, including orders for every type of Gulfstream aircraft," the company said. Wall Street analysts expected General Dynamics to earn $1.78 a share on sales of $8.03 billion, according to a survey by FactSet.
Lorillard profit rises (7:19 am ET)
NEW YORK (MarketWatch) -- Lorillard Inc. (LO: news, chart, profile) said on Wednesday that its third-quarter profit rose to $283 million, or $2.16 a share, from $267 million, or $1.94 a share a year ago. Revenue rose to $1.66 billion, from $1.62 billion a year ago. Analysts polled by FactSet Research had expected the company to earn $2.23 a share on revenue of $2 billion.
Eli Lilly Q3 net up 7.3%, revenue off 11%(7:13 am ET)
TEL AVIV (MarketWatch) - Eli Lilly & Co., (LLY: news, chart, profile) the Indianapolis health-care major, reported third-quarter net income rose 7.3% on 11% lower revenue. Earnings reached $1.33 billion, or $1.18 a share, from $1.24 billion, or $1.11, in the year-earlier quarter. Adjusted earnings were 79 cents versus $1.13. Revenue fell to $5.44 billion from $6.15 billion. A survey of analysts by FactSet Research produced consensus estimates of profit of 84 cents a share on revenue of $5.63 billion. For full-year 2012, Lilly now expects to earn $3.68 to $3.78 a share compared with $3.90 in 2011. On an adjusted basis, Lilly expects to earn $3.30 to $3.40. Lilly affirmed its revenue estimate of $21.8 billion to $22.8 billion. FactSet's survey is looking for profit of $3.39 a share on revenue of $22.71 billion for the year.
Thermo Fisher Q3 net up 9.4%; year outlook lifted(6:48 am ET)
TEL AVIV (MarketWatch) -- Thermo Fisher Scientific Inc., (TMO: news, chart, profile) the Waltham, Mass., provider of science services to pharma and biotech, hospitals and diagnostic labs, reported that third-quarter net income rose 9.4% as revenue increased 5.2%. Earnings reached $290.4 million,or 79 cents a share, from $265.4 million, or 69 cents, in the year- earlier quarter. The latest adjusted profit for the quarter was $1.19. Revenue climbed to $3.09 billion from $2.93 billion. A survey of analysts by FactSet Research produced consensus estimates of profit of $1.16 a share on revenue of $2.99 billion. Thermo Fisher increased its estimates of full-year earnings. The company now expects to earn an adjusted $4.81 to $4.88, an increase of 16% to 17% from 2011. Revenue should rise to a range of $12.32 billion to $12.4 billion, 7% growth year over year. The FactSet survey for 2012 is estimating $4.82 of profit and $12.27 billion of revenue.
Facebook upgraded to buy by Citi, shares surge (6:45 am ET)
LONDON (MarketWatch) -- Facebook Inc. (FB: news, chart, profile) shares jumped almost 13% to $22.01 in premarket trades Wednesday after Citi Research upgraded the stock to buy, praising the social network's quarterly report from a day earlier. "What investors have for the first time since the FB IPO is fundamentals acceleration with a reasonable valuation," analyst Mark Mahaney wrote in a note to clients. Facebook on Tuesday reported a surge in advertising revenue as well as an increase in mobile monthly active users.
Praxair posts profit gain, sees near-term weakness(6:24 am ET)
LONDON (MarketWatch) -- Praxair (PX: news, chart, profile) on Wednesday reported a third-quarter profit of $430 million, or $1.43 a share, up from $429 million, or $1.40 a share, a year earlier. Adjusting for one-time items, earnings came in at $1.39 a share. Sales dipped to $2.77 billion, from $2.90 billion. Analysts polled by FactSet Research were looking for earnings, on average, of $1.39 a share on sales of $2.83 billion. "While we are expecting that macro-economic conditions overall may continue to weaken in the near-term," said Chairman and CEO Steve Angel, "we will continue to drive long-term growth through our strategy of focusing on energy, environmental and emerging markets opportunities."
Yelp to post Q3 loss, acquires Qype review site(4:06 am ET)
TEL AVIV (MarketWatch) -- Yelp Inc., (YELP: news, chart, profile) the San Francisco provider of online local reviews, on Wednesday said that it would post about a $2 million third-quarter loss and that it paid about $50 million for Qype, a European local-reviews website. Yelp also estimated the quarter's revenue at $36.4 million. A survey of analysts by FactSet Research produced consensus estimates for the quarter of a loss of $2.2 million on revenue of $35.7 million. In a statement, Yelp said that it paid €18.6 million cash plus 970,000 of its shares for Qype, which is headquartered in Germany. The deal will "accelerate Yelp's international expansion, bringing more than two million reviews and 50 million unique visitors per month across 13 countries," Yelp said in its statement.
Europe stocks inch higher, led by SAP; Volvo sinks(3:18 am ET)
MADRID (MarketWatch) -- European stocks moved cautiously higher on Wednesday, as investors sought to recover from a bruising prior-day session. The Dow industrials (DJIA: news, chart, profile) suffered the worst single-day loss in four months on Tuesday. Helping drive positive momentum on Wednesday were well-received earnings from SAP AG (DE:SAP: news, chart, profile) (SAP: news, chart, profile) , as those shares rose 3.2%. On the downside, shares of Heineken NV (NL:HEIA: news, chart, profile) fell 2.7% on the brewer's results, while Volvo AB (SE:VOLVB: news, chart, profile) dropped over 7% on its results. The Stoxx Europe 600 index (XX:SXXP: news, chart, profile) rose 0.3% to 269.21, while the German DAX 30 index (DX:DAX: news, chart, profile) rose 0.4% to 7,204.37. The French CAC 40 index (FR:PX1: news, chart, profile) rose 0.7% to 3,428.54 and the FTSE 100 index (UK:UKX: news, chart, profile) rose 0.2% to 5,809.43.
Tuesday, Oct. 23
Weak TV ratings helping Netflix to some degree(7:04 pm ET)
CHICAGO (MarketWatch) -- Weak ratings at some broadcast-TV networks have helped Netflix Inc. (NFLX: news, chart, profile) in its efforts to license TV-show content, Chief Executive Reed Hastings said Tuesday during the company's earnings call. Hastings said that a variety of factors have helped it to acquire content. One is that, in some cases, programmers want to pick up more revenue from online video licensing to offset the dollars that will be lost when networks have to compensate advertisers for shows that didn't deliver on the ratings that were promised. With the exception of NBC (CMCSA: news, chart, profile) , each of the Big Four broadcast networks have seen double-digit ratings declines during the first few weeks of the 2012-13 TV season.
Netflix CEO: No plans to raise streaming prices(6:36 pm ET)
CHICAGO (MarketWatch) -- Netflix Inc. (NFLX: news, chart, profile) Chief Executive Reed Hastings said Tuesday that the company has no plans to raise the $7.99 basic subscription cost for its online streaming service. On the Netflix earnings call, Hastings said the company remains satisfied with the current price structure. Netflix's public reputation is still recovering from the negative impact of a 60% price hike in July 2011; Hastings reiterated that the company does not expect to get back to the highly positive perception it once enjoyed until 2014, though the situation is improving.
Netflix CEO: Amazon having no material impact(6:29 pm ET)
CHICAGO (MarketWatch) -- Netflix Inc. (NFLX: news, chart, profile) Chief Executive Reed Hastings said Tuesday that despite the company's reduced U.S. streaming-subscriber forecast, there is no evidence that online retail giant Amazon (AMZN: news, chart, profile) is having a material impact on its streaming growth. Hastings, speaking during a conference call following the company's release of third-quarter results, said that it is probable that eventually, U.S. customers will stream TV shows and movies from both Netflix and Amazon. So far, he added, Netflix's customers "haven't shown a lot of interest in competitors who have a significant subset of our content."
Facebook says revenue from Zynga declining(5:45 pm ET)
SAN FRANCISCO (MarketWatch) - Facebook Inc. (FB: news, chart, profile) said its revenue from its relationship with online gaming company Zynga Inc. (ZNGA: news, chart, profile) slipped to 7% of its total revenue in the third quarter, compared with 10% in the second quarter, and 12% in the third quarter of last year. Shares of Zynga were up 3% in after-hours trading. The stock shed more than 5% in regular trading, and has dropped more than 75% year-to-date. Shares of Facebook were up 10% after-hours. Zynga reports its own third-quarter results on Wednesday afternoon. The company is expected to detail cost-reduction plans, though some media outlets were reporting layoffs at the company on Tuesday afternoon.
Competition could be hurting Netflix: analyst(5:23 pm ET)
CHICAGO (MarketWatch) -- Netflix Inc.'s (NFLX: news, chart, profile) latest domestic streaming subscriber forecast, which fell short of many analysts' expectations, probably reflects increased competition in the online video space, an analyst said Tuesday following the company's release of third-quarter results. "I continue to believe that increasing competition and ubiquitous content will drive consumers to look at other options," said Eric Wold, an analyst at B. Riley & Co., in an e-mail. He added that the company has at least $5 billion committed to content acquisition, and is likely to spend an increasing amount of money on original programming. Such costs pose "a risk to the entire business model," he remarked. After the market closed Tuesday, Netflix said it now expects to end 2012 with 26.4 million to 27.1 million streaming subscribers, representing a gain of between 4.7 million and 5.4 million customers for the year. Previously, Netflix had said it could achieve a full-year gain of 7 million, but only if it could hit the high end of expectations.
Panera Bread shares rise on tasty 2013 outlook(5:02 pm ET)
SAN FRANCISCO (MarketWatch) -- Panera Bread (PNRA: news, chart, profile) late Tuesday exceeded Wall Street's financial targets for the third quarter and issued upbeat financial projections for next year, sending its shares up 5% to $169.49 in late trades. Panera's third-quarter report contrasts with other high-growth restaurant chains like Chipotle Mexican Grill (CMG: news, chart, profile) and Buffalo Wild Wings (BWLD: news, chart, profile) , who disappointed investors with their recent results. Panera posted a profit of $37 million, or $1.24 a share, up from $29 million, or 97 cents a share, in the same 2011 period. Revenue climbed 17% to $529 million, while same-store sales increased 6.2%. Analysts had expected Panera to earn $1.19 a share on same-store sales growth of 5.5%, FactSet data shows. For 2013, Panera said it would earn as much as $7 a share. Analysts are looking for $6.90. Panera shares are up 13% so far this year.
Netflix shares drop after streaming forecast(4:48 pm ET)
CHICAGO (MarketWatch) -- Shares of online video provider Netflix Inc. (NFLX: news, chart, profile) declined 15% in after-hours trading Tuesday after the company issued a U.S. streaming-subscriber forecast that disappointed some investors. Netflix, which ended the third quarter with 25.1 million domestic streaming customers, said it now expects to end 2012 with 26.4 million to 27.1 million streaming subscribers, representing a gain of between 4.7 million and 5.4 million customers for the year. Previously, Netflix had said it could achieve a full-year gain of 7 million, but only if it could hit the high end of expectations. Netflix also said it anticipates anywhere from a loss of $13 million to a profit of $2 million in the fourth quarter, reflecting its expansion into Finland, Denmark and Sweden. For the third quarter, Netflix said it earned $8 million, or 13 cents a share, compared with a profit of $62 million, or $1.16 a share, in the same period a year ago. The 88% decline reflects greater subscriber-acquisition costs, as well as expenses related to the company's international expansion. Revenue rose to $905 million from $822 million. Analysts polled by FactSet were expecting a profit of 5 cents a share on revenue of $904.4 million.
Facebook up 8% after hours as ad revenues surge(4:45 pm ET)
SAN FRANCISCO (MarketWatch) - Shares of Facebook Inc. (FB: news, chart, profile) jumped 8% late Tuesday after the social networking giant posted results that modestly beat Street expectations. Facebook reported an adjusted profit of 12 cents a share, on revenue of $1.26 billion, compared with Wall Street's consensus expectation for an adjusted profit of 12 cents a share, on revenue of $1.23 billon. Susquehanna analyst Herman Leung noted that Facebook also reported a 36% gain in advertising revenue which he said was "much better than what the Street had expected."
Tempur-Pedic shares crushed on forecast(4:37 pm ET)
SAN FRANCISCO (MarketWatch) --- Price competition continues to hammer bed-mattress maker Tepur-Pedic (TPX: news, chart, profile) , which is in the process of buying its smaller rival Sealy (ZZ: news, chart, profile) . Tempur-Pedic late Tuesday cuts its 2012 profit forecast, driving its shares down 15% to $26.90 in after-hours trade. The company said it would earn $2.55 a share, below the $2.80 a share analysts were looking for. During the third quarter, Tepur-Pedic said global mattress sales fell 11% and 15% in North America. Gross margin fell to 49.2% from 52.4% in the same 2011 quarter. Tepur-Pedic swung to a loss of $2 million, or 3 cents a share, from a profit of $62 million, or 90 cents a share, in the year-ago period. Excluding charges, the company said it earned 70 cents a share.
Amgen net doubles on across-the-board growth (4:29 pm ET)
LOS ANGELES (MarketWatch) Amgen Inc. (AMGN: news, chart, profile) said Tuesday that third-quarter net income was $1.11 billion, or $1.41 a share, compared with $454 million, or 50 cents a share, for the same period a year ago. Reporting after the close, the Thousand Oaks, Calif.-based biotechnology giant said sales for the quarter were $4.32 billion against last year's $3.94 billion. The company said adjusted earnings were $1.67 a share. Analysts polled by FactSet had expected the company to earn $1.47 a share on sales of $4.24 billion. The company said it now expects full-year earnings to end up between $6.50 and $6.60 a share, up from the FactSet estimate of $6.33 a share. Amgen was down marginally amid a broad market sell-off and shares ended the day at $87.32.
Broadcom earnings fall almost 19%(4:29 pm ET)
SAN FRANCISCO (MarketWatch) -- Broadcom Corp. (BRCM: news, chart, profile) on Tuesday reported a third-quarter profit of $220 million, or 38 cents a share, on revenue of $2.13 billion, compared with earnings of $270 million, or 48 cents a share, on sales of $1.96 billion, in the same period a year ago. Excluding one-time items, Broadcom would have earned $476 million, or 79 cents a share. Analysts surveyed by FactSet had forecast the communications chip maker to earn 77 cents a share on $2.09 billion in sales.
GLW YELP FB LCC GD LLY BRCM
Corning shares fall on downbeat outlook(11:19 am ET)
SAN FRANCISCO (MarketWatch) -- Shares of Corning Inc. (GLW: news, chart, profile) fell more than 8% to $12.25 on Wednesday morning after the company slightly exceeded analysts' expectations for its third-quarter results but gave a downbeat outlook for the coming year. "The weakening economy is affecting sales in many of our businesses, with several not achieving the growth expectations we set for the year," CFO James Flaw said in the company's earnings announcement. "We believe these economic headwinds will persist next year." The company did not give a specific revenue or earnings forecast. It's display technology segment saw revenue jump 19% in the third quarter. Corning makes specialized glass used in smartphone and tablet displays, among other product lines.
Yelp jumps on pre-announcement, acquisition(10:19 am ET)
SAN FRANCISCO (MarketWatch) -- Shares of Yelp Inc. jumped nearly 12% to $26.85 on Wednesday morning after the company pre-announced revenue for the third quarter that was better than analysts had expected. In a statement, Yelp (YELP: news, chart, profile) said it expects to report revenue of $36.4 million in its Nov. 1 earnings announcement. Analysts had been expecting revenue of $35.8 million for the period. Yelp also announced its acquisition of Qype, Europe's largest local reviews site, in a cash-and-stock deal worth about $50 million. Tom White of Macquarie said the deal "should help Yelp accelerate its expansion into Europe" in a note to clients.
Facebook's 21% share rise leads tech advance(9:51 am ET)
SAN FRANCISCO (MarketWatch) -- Big gains from Facebook Inc. (FB: news, chart, profile) highlighted activity in the tech sector Wednesday. Facebook's shares climbed 21%, to $23.55 a share, after the company reported quarterly results Tuesday that included signs of improvement in its mobile-advertising business. Apple Inc. (AAPL: news, chart, profile) also advanced, rising almost 2%, to $623.24 a day after unveiling the iPad mini. Netflix Inc. (NFLX: news, chart, profile) was a big decliner, with its shares down more than 13%, to $59, after the company cut its streaming-subscriber forecast for the year. The Nasdaq Composite Index ($COMPQ: news, chart, profile) rose more than 12 points to 3,002.
US Airways posts above-consensus adjusted profit(8:30 am ET)
WASHINGTON (MarketWatch) -- US Airways Group (LCC: news, chart, profile) reported a third-quarter net profit of $245 million, or $1.24 a share, up from $76 million, or 41 cents, earned in the same period during 2011. Quarterly revenue generated by the Tempe, Ariz.-based carrier reached $3.53 bilion from the prior year's $3.44 billion, as mainline revenue rose 2.8%. On an adjusted basis, the results showed, US Airways would have turned in a profit of 98 cents a share. The consensus of analysts surveyed by FactSet Research had been for the company to show a profit of 92 cents a share and revenue of $3.55 billion. "Looking forward, the revenue environment remains strong," said Doug Parker, chairman and chief executive of US Airways, in the earnings release. Shares gained more than 3% in the premarket.
Dr Pepper Snapple profit up 16%(8:28 am ET)
NEW YORK (MarketWatch) -- Dr Pepper Snapple Group Inc. (DPS: news, chart, profile) said Wednesday its third-quarter profit rose to $179 million, or 84 cents a share, from $154 million, or 71 cents a share, in the year-ago period. Adjusted earnings rose to 79 cents a share from 74 cents a share. Sales remained about flat at $1.53 billion. Wall Street analysts expected the company to earn 77 cents a share on sales of $1.56 billion, according to a survey by FactSet. Dr Pepper Snapple Group expects adjusted 2012 earnings of $2.90 to $2.98 a share. Analysts estimated 2012 earnings of $2.96 a share.
Kimberly-Clark profit rises 20%, lifts view(8:11 am ET)
NEW YORK (MarketWatch) -- Kimberly-Clark (KMB: news, chart, profile) said Wednesday its third-quarter profit increased 20% to $517 million, or $1.30 a share, from $432 million, or $1.09 a share, in the year-ago period. Adjusted profit rose to $1.34 a share from $1.26 a share. Sales fell 2.5% to $5.25 billion. Wall Street analysts expected the household products company to earn $1.32 a share on revenue of $5.34 billion, according to a survey by FactSet. Kimberly-Clark sees adjusted 2012 profit of $5.15 to $5.25 a share, up from its earlier estimate of $5.05 to $5.25 a share. Analyst had estimated 2012 earnings of $5.19 a share.
AT&T Q3 net and revenue about flat with year ago(8:09 am ET)
TEL AVIV (MarketWatch) -- AT&T Inc., (T: news, chart, profile) the Dallas telecom major, reported that third- quarter net income and revenue were about flat with the year-earlier period. Profit edged up to $3.64 billion, or 63 cents a share, from $3.62 billion, or 61 cents, in the year-earlier quarter. Adjusted profit was 62 cents a share against 59 cents. Revenue slipped to $31.46 billion from $31.48 billion. A survey of analysts by FactSet Research produced consensus estimates of 60 cents a share of profit on $31.57 billion of revenue. In a Wednesday statement, AT&T said that its wireless business was strong, with 4.7 million Apple (AAPL: news, chart, profile) iPhones activated and sales of Android (GOOG: news, chart, profile) and Windows (MSFT: news, chart, profile) smartphones posting a record quarter. Average revenue per user for postpaid wireless subscribers rose 2.4% to $65.20.
Bristol-Myers has quarterly loss, revises outlook(7:52 am ET)
WASHINGTON (MarketWatch) -- Bristol-Myers Squibb Co. (BMY: news, chart, profile) updated its 2012 profit forecast as the drug manufacturer reported a third-quarter net loss of $711 million, or 43 cents a share, a reversal from its profit of $969 million, or 56 cents, in the year-earlier period. Quarterly sales fell to $3.74 billion from the prior year's $5.35 billion. On an adjusted basis, the company would have turned in a profit of 41 cents a share for the latest quarter, down from 61 cents earned in the 2011 third quarter. The consensus of analysts polled by FactSet Research had been for earnings of 42 cents a share on revenue of $4 billion. The company cited U.S. patent expirations as a key factor behind the lower sales. As for 2012, Bristol-Myers Squibb now sees adjusted earnings toward the upper end of its previously established range of $1.90 to $2 a share.
Boeing profit down; 2012 view beats estimate(7:50 am ET)
NEW YORK (MarketWatch) -- Boeing Co. (BA: news, chart, profile) said Wednesday its third-quarter profit fell 6% to $1.03 billion, or $1.35 a share, from $1.1 billion, or $1.46 a share, in the year-ago period. Higher pension expenses impacted the latest quarter by 18 cents a share. Revenue at the aerospace firm rose 13% to $20 billion from $17.73 billion. Wall Street analysts expected Boeing to earn $1.12 a share on revenue of $20.07 billion, according to a survey by FactSet. Looking ahead, Boeing expects 2012 earnings of $4.80 and $4.95 a share. Wall Street analysts have estimated 2012 earnings of $4.72 a share for Boeing.
Corning profit rises(7:28 am ET)
NEW YORK (MarketWatch) -- Corning Inc. (GLW: news, chart, profile) said on Wednesday that it earned $521 million, or 35 cents a share in the third quarter, compared to $462 million, or 30 cents a share a year ago. Sales in the quarter rose to $2.04 billion, from $1.91 billion a year ago. Analysts polled by FactSet Research had expected the glass company to earn 32 cents a share on revenue of $2.02 billion.
EMC earns 40 cents a share in Q3, misses estimates(7:26 am ET)
LONDON (MarketWatch) -- EMC Corp. (EMC: news, chart, profile) on Wednesday reported a 3% rise in net profit in third quarter to $626 million, or 28 cents per share, from $606 million, or 27 cents a share in the year-ago-period. Adjusted earnings rose 7% to $881 million, or 40 cents a share, up from $823 million, or 37 cents a share. Revenue came in at $5.28 billion, a 6% increase compared to the same quarter last year. Analysts surveyed by FactSet expected earnings of 42 cents a share on revenue of $5.46 billion. The Hopkinton, Mass.-based tech company said it expects revenues for the full year to be between $21.60 billion and $21.75 billion, while net income is expected to come in between $2.72 billion and $2.77 billion.
General Dynamics profit falls by $52 million(7:24 am ET)
NEW YORK (MarketWatch) -- General Dynamics Inc. (GD: news, chart, profile) said Wednesday its third-quarter net earnings fell to $600 million, or $1.70 a share, from $652 million, or $1.80 a share, in the year-ago period. Revenue dipped to $7.85 billion from $7.93 billion. "Demand in the quarter was particularly strong for aerospace products, including orders for every type of Gulfstream aircraft," the company said. Wall Street analysts expected General Dynamics to earn $1.78 a share on sales of $8.03 billion, according to a survey by FactSet.
Lorillard profit rises (7:19 am ET)
NEW YORK (MarketWatch) -- Lorillard Inc. (LO: news, chart, profile) said on Wednesday that its third-quarter profit rose to $283 million, or $2.16 a share, from $267 million, or $1.94 a share a year ago. Revenue rose to $1.66 billion, from $1.62 billion a year ago. Analysts polled by FactSet Research had expected the company to earn $2.23 a share on revenue of $2 billion.
Eli Lilly Q3 net up 7.3%, revenue off 11%(7:13 am ET)
TEL AVIV (MarketWatch) - Eli Lilly & Co., (LLY: news, chart, profile) the Indianapolis health-care major, reported third-quarter net income rose 7.3% on 11% lower revenue. Earnings reached $1.33 billion, or $1.18 a share, from $1.24 billion, or $1.11, in the year-earlier quarter. Adjusted earnings were 79 cents versus $1.13. Revenue fell to $5.44 billion from $6.15 billion. A survey of analysts by FactSet Research produced consensus estimates of profit of 84 cents a share on revenue of $5.63 billion. For full-year 2012, Lilly now expects to earn $3.68 to $3.78 a share compared with $3.90 in 2011. On an adjusted basis, Lilly expects to earn $3.30 to $3.40. Lilly affirmed its revenue estimate of $21.8 billion to $22.8 billion. FactSet's survey is looking for profit of $3.39 a share on revenue of $22.71 billion for the year.
Thermo Fisher Q3 net up 9.4%; year outlook lifted(6:48 am ET)
TEL AVIV (MarketWatch) -- Thermo Fisher Scientific Inc., (TMO: news, chart, profile) the Waltham, Mass., provider of science services to pharma and biotech, hospitals and diagnostic labs, reported that third-quarter net income rose 9.4% as revenue increased 5.2%. Earnings reached $290.4 million,or 79 cents a share, from $265.4 million, or 69 cents, in the year- earlier quarter. The latest adjusted profit for the quarter was $1.19. Revenue climbed to $3.09 billion from $2.93 billion. A survey of analysts by FactSet Research produced consensus estimates of profit of $1.16 a share on revenue of $2.99 billion. Thermo Fisher increased its estimates of full-year earnings. The company now expects to earn an adjusted $4.81 to $4.88, an increase of 16% to 17% from 2011. Revenue should rise to a range of $12.32 billion to $12.4 billion, 7% growth year over year. The FactSet survey for 2012 is estimating $4.82 of profit and $12.27 billion of revenue.
Facebook upgraded to buy by Citi, shares surge (6:45 am ET)
LONDON (MarketWatch) -- Facebook Inc. (FB: news, chart, profile) shares jumped almost 13% to $22.01 in premarket trades Wednesday after Citi Research upgraded the stock to buy, praising the social network's quarterly report from a day earlier. "What investors have for the first time since the FB IPO is fundamentals acceleration with a reasonable valuation," analyst Mark Mahaney wrote in a note to clients. Facebook on Tuesday reported a surge in advertising revenue as well as an increase in mobile monthly active users.
Praxair posts profit gain, sees near-term weakness(6:24 am ET)
LONDON (MarketWatch) -- Praxair (PX: news, chart, profile) on Wednesday reported a third-quarter profit of $430 million, or $1.43 a share, up from $429 million, or $1.40 a share, a year earlier. Adjusting for one-time items, earnings came in at $1.39 a share. Sales dipped to $2.77 billion, from $2.90 billion. Analysts polled by FactSet Research were looking for earnings, on average, of $1.39 a share on sales of $2.83 billion. "While we are expecting that macro-economic conditions overall may continue to weaken in the near-term," said Chairman and CEO Steve Angel, "we will continue to drive long-term growth through our strategy of focusing on energy, environmental and emerging markets opportunities."
Yelp to post Q3 loss, acquires Qype review site(4:06 am ET)
TEL AVIV (MarketWatch) -- Yelp Inc., (YELP: news, chart, profile) the San Francisco provider of online local reviews, on Wednesday said that it would post about a $2 million third-quarter loss and that it paid about $50 million for Qype, a European local-reviews website. Yelp also estimated the quarter's revenue at $36.4 million. A survey of analysts by FactSet Research produced consensus estimates for the quarter of a loss of $2.2 million on revenue of $35.7 million. In a statement, Yelp said that it paid €18.6 million cash plus 970,000 of its shares for Qype, which is headquartered in Germany. The deal will "accelerate Yelp's international expansion, bringing more than two million reviews and 50 million unique visitors per month across 13 countries," Yelp said in its statement.
Europe stocks inch higher, led by SAP; Volvo sinks(3:18 am ET)
MADRID (MarketWatch) -- European stocks moved cautiously higher on Wednesday, as investors sought to recover from a bruising prior-day session. The Dow industrials (DJIA: news, chart, profile) suffered the worst single-day loss in four months on Tuesday. Helping drive positive momentum on Wednesday were well-received earnings from SAP AG (DE:SAP: news, chart, profile) (SAP: news, chart, profile) , as those shares rose 3.2%. On the downside, shares of Heineken NV (NL:HEIA: news, chart, profile) fell 2.7% on the brewer's results, while Volvo AB (SE:VOLVB: news, chart, profile) dropped over 7% on its results. The Stoxx Europe 600 index (XX:SXXP: news, chart, profile) rose 0.3% to 269.21, while the German DAX 30 index (DX:DAX: news, chart, profile) rose 0.4% to 7,204.37. The French CAC 40 index (FR:PX1: news, chart, profile) rose 0.7% to 3,428.54 and the FTSE 100 index (UK:UKX: news, chart, profile) rose 0.2% to 5,809.43.
Tuesday, Oct. 23
Weak TV ratings helping Netflix to some degree(7:04 pm ET)
CHICAGO (MarketWatch) -- Weak ratings at some broadcast-TV networks have helped Netflix Inc. (NFLX: news, chart, profile) in its efforts to license TV-show content, Chief Executive Reed Hastings said Tuesday during the company's earnings call. Hastings said that a variety of factors have helped it to acquire content. One is that, in some cases, programmers want to pick up more revenue from online video licensing to offset the dollars that will be lost when networks have to compensate advertisers for shows that didn't deliver on the ratings that were promised. With the exception of NBC (CMCSA: news, chart, profile) , each of the Big Four broadcast networks have seen double-digit ratings declines during the first few weeks of the 2012-13 TV season.
Netflix CEO: No plans to raise streaming prices(6:36 pm ET)
CHICAGO (MarketWatch) -- Netflix Inc. (NFLX: news, chart, profile) Chief Executive Reed Hastings said Tuesday that the company has no plans to raise the $7.99 basic subscription cost for its online streaming service. On the Netflix earnings call, Hastings said the company remains satisfied with the current price structure. Netflix's public reputation is still recovering from the negative impact of a 60% price hike in July 2011; Hastings reiterated that the company does not expect to get back to the highly positive perception it once enjoyed until 2014, though the situation is improving.
Netflix CEO: Amazon having no material impact(6:29 pm ET)
CHICAGO (MarketWatch) -- Netflix Inc. (NFLX: news, chart, profile) Chief Executive Reed Hastings said Tuesday that despite the company's reduced U.S. streaming-subscriber forecast, there is no evidence that online retail giant Amazon (AMZN: news, chart, profile) is having a material impact on its streaming growth. Hastings, speaking during a conference call following the company's release of third-quarter results, said that it is probable that eventually, U.S. customers will stream TV shows and movies from both Netflix and Amazon. So far, he added, Netflix's customers "haven't shown a lot of interest in competitors who have a significant subset of our content."
Facebook says revenue from Zynga declining(5:45 pm ET)
SAN FRANCISCO (MarketWatch) - Facebook Inc. (FB: news, chart, profile) said its revenue from its relationship with online gaming company Zynga Inc. (ZNGA: news, chart, profile) slipped to 7% of its total revenue in the third quarter, compared with 10% in the second quarter, and 12% in the third quarter of last year. Shares of Zynga were up 3% in after-hours trading. The stock shed more than 5% in regular trading, and has dropped more than 75% year-to-date. Shares of Facebook were up 10% after-hours. Zynga reports its own third-quarter results on Wednesday afternoon. The company is expected to detail cost-reduction plans, though some media outlets were reporting layoffs at the company on Tuesday afternoon.
Competition could be hurting Netflix: analyst(5:23 pm ET)
CHICAGO (MarketWatch) -- Netflix Inc.'s (NFLX: news, chart, profile) latest domestic streaming subscriber forecast, which fell short of many analysts' expectations, probably reflects increased competition in the online video space, an analyst said Tuesday following the company's release of third-quarter results. "I continue to believe that increasing competition and ubiquitous content will drive consumers to look at other options," said Eric Wold, an analyst at B. Riley & Co., in an e-mail. He added that the company has at least $5 billion committed to content acquisition, and is likely to spend an increasing amount of money on original programming. Such costs pose "a risk to the entire business model," he remarked. After the market closed Tuesday, Netflix said it now expects to end 2012 with 26.4 million to 27.1 million streaming subscribers, representing a gain of between 4.7 million and 5.4 million customers for the year. Previously, Netflix had said it could achieve a full-year gain of 7 million, but only if it could hit the high end of expectations.
Panera Bread shares rise on tasty 2013 outlook(5:02 pm ET)
SAN FRANCISCO (MarketWatch) -- Panera Bread (PNRA: news, chart, profile) late Tuesday exceeded Wall Street's financial targets for the third quarter and issued upbeat financial projections for next year, sending its shares up 5% to $169.49 in late trades. Panera's third-quarter report contrasts with other high-growth restaurant chains like Chipotle Mexican Grill (CMG: news, chart, profile) and Buffalo Wild Wings (BWLD: news, chart, profile) , who disappointed investors with their recent results. Panera posted a profit of $37 million, or $1.24 a share, up from $29 million, or 97 cents a share, in the same 2011 period. Revenue climbed 17% to $529 million, while same-store sales increased 6.2%. Analysts had expected Panera to earn $1.19 a share on same-store sales growth of 5.5%, FactSet data shows. For 2013, Panera said it would earn as much as $7 a share. Analysts are looking for $6.90. Panera shares are up 13% so far this year.
Netflix shares drop after streaming forecast(4:48 pm ET)
CHICAGO (MarketWatch) -- Shares of online video provider Netflix Inc. (NFLX: news, chart, profile) declined 15% in after-hours trading Tuesday after the company issued a U.S. streaming-subscriber forecast that disappointed some investors. Netflix, which ended the third quarter with 25.1 million domestic streaming customers, said it now expects to end 2012 with 26.4 million to 27.1 million streaming subscribers, representing a gain of between 4.7 million and 5.4 million customers for the year. Previously, Netflix had said it could achieve a full-year gain of 7 million, but only if it could hit the high end of expectations. Netflix also said it anticipates anywhere from a loss of $13 million to a profit of $2 million in the fourth quarter, reflecting its expansion into Finland, Denmark and Sweden. For the third quarter, Netflix said it earned $8 million, or 13 cents a share, compared with a profit of $62 million, or $1.16 a share, in the same period a year ago. The 88% decline reflects greater subscriber-acquisition costs, as well as expenses related to the company's international expansion. Revenue rose to $905 million from $822 million. Analysts polled by FactSet were expecting a profit of 5 cents a share on revenue of $904.4 million.
Facebook up 8% after hours as ad revenues surge(4:45 pm ET)
SAN FRANCISCO (MarketWatch) - Shares of Facebook Inc. (FB: news, chart, profile) jumped 8% late Tuesday after the social networking giant posted results that modestly beat Street expectations. Facebook reported an adjusted profit of 12 cents a share, on revenue of $1.26 billion, compared with Wall Street's consensus expectation for an adjusted profit of 12 cents a share, on revenue of $1.23 billon. Susquehanna analyst Herman Leung noted that Facebook also reported a 36% gain in advertising revenue which he said was "much better than what the Street had expected."
Tempur-Pedic shares crushed on forecast(4:37 pm ET)
SAN FRANCISCO (MarketWatch) --- Price competition continues to hammer bed-mattress maker Tepur-Pedic (TPX: news, chart, profile) , which is in the process of buying its smaller rival Sealy (ZZ: news, chart, profile) . Tempur-Pedic late Tuesday cuts its 2012 profit forecast, driving its shares down 15% to $26.90 in after-hours trade. The company said it would earn $2.55 a share, below the $2.80 a share analysts were looking for. During the third quarter, Tepur-Pedic said global mattress sales fell 11% and 15% in North America. Gross margin fell to 49.2% from 52.4% in the same 2011 quarter. Tepur-Pedic swung to a loss of $2 million, or 3 cents a share, from a profit of $62 million, or 90 cents a share, in the year-ago period. Excluding charges, the company said it earned 70 cents a share.
Amgen net doubles on across-the-board growth (4:29 pm ET)
LOS ANGELES (MarketWatch) Amgen Inc. (AMGN: news, chart, profile) said Tuesday that third-quarter net income was $1.11 billion, or $1.41 a share, compared with $454 million, or 50 cents a share, for the same period a year ago. Reporting after the close, the Thousand Oaks, Calif.-based biotechnology giant said sales for the quarter were $4.32 billion against last year's $3.94 billion. The company said adjusted earnings were $1.67 a share. Analysts polled by FactSet had expected the company to earn $1.47 a share on sales of $4.24 billion. The company said it now expects full-year earnings to end up between $6.50 and $6.60 a share, up from the FactSet estimate of $6.33 a share. Amgen was down marginally amid a broad market sell-off and shares ended the day at $87.32.
Broadcom earnings fall almost 19%(4:29 pm ET)
SAN FRANCISCO (MarketWatch) -- Broadcom Corp. (BRCM: news, chart, profile) on Tuesday reported a third-quarter profit of $220 million, or 38 cents a share, on revenue of $2.13 billion, compared with earnings of $270 million, or 48 cents a share, on sales of $1.96 billion, in the same period a year ago. Excluding one-time items, Broadcom would have earned $476 million, or 79 cents a share. Analysts surveyed by FactSet had forecast the communications chip maker to earn 77 cents a share on $2.09 billion in sales.
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