Replies to post #496 on Earning Plays

[3xBuBu]

Borders Group loss narrows in 1st quarter
May 27, 2008 7:49 PM ET
Borders said its same-store sales fell and its losses narrowed in the first quarter, and Wall Street greeted Tuesday's relaunch of the bookseller's retail Web site with a selloff of its shares.

Ann Arbor-based Borders Group Inc. said it lost $31.7 million, or 53 cents per share, in the three months ending May 3, compared with a loss of $35.9 million, or 61 cents per share, for the comparable period of 2007.

Thomson Financial said analysts had expected a loss of 47 cents per share.

The nation's No. 2 retail bookseller behind Barnes & Noble Inc. released its earnings after the close of trading Tuesday. Its shares fell 47 cents, or 7 percent, to $6.25 in regular-session trading Tuesday and dropped another 4 percent to $6.00 in after-hours dealings.

The company says its results were hurt by store closure costs, severance costs and fees related to strategic alternatives.

"It was a tough sales environment we did it in," George Jones, Borders chief executive, told The Associated Press.

Jones said a restructuring announced last year is expected to save $120 million a year and already has significantly improved Borders' cash flow. He said the cuts and the launch of the Web sales site will pay off in months to come.

"You're going to see an interplay of the online world with the brick-and-mortar world," he said. "If we do the right things, it will create value for our shareholders."

The bookseller says its revenue fell 0.8 percent to $792.5 million from $798.7 million. Analysts anticipated $801.1 million.

Same-store sales at domestic superstores fell 4.1 percent.

"It's fairly obvious the book business is under pressure from surging gas prices, consumer balance sheet repair and reduced traffic to casual dining establishments," analyst David Schick of Stifel Nicolaus & Co. said last week in note to investors.

Deutsche Bank North America's Dave Weiner also said in a note last week: "We continue to believe that brick (and) mortar book retailing is fundamentally challenged, as price-leading competitors (including the Internet) take share."

Barnes & Noble last week reported a loss of $2.22 million on sales of $1.16 billion in the quarter ended May 3.

Borders announced in March that it was putting itself up for sale, and Barnes & Noble said Thursday that it had assembled a management team to study the feasibility of a combination with Borders.

The Borders earnings report came hours after the company relaunched a Web sales site that it turned over to Amazon in 2001 because of losses. Under that arrangement, Borders.com took shoppers to a site partnered with Amazon, while a Web site for its stores allowed shoppers to check inventories and reserve items.

Borders has said it expects the new Borders.com to be independently profitable in 2009.

One analyst was skeptical.

"Borders hopes that taking its site in house will compensate for its sputtering bricks-and-mortar store business. Unfortunately, and more likely, Borders will now be able to fail at two businesses instead of one," wrote Corey Lorinsky of Clusterstock.

Borders Group operates about 540 Borders superstores in the U.S., Australia, New Zealand, Singapore and Puerto Rico. It also has about 485 Waldenbooks outlets. The company employs about 30,000 people worldwide.
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20080527&id=8694066

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Bank of Montreal Profit Declines on Loan Losses

By Doug Alexander

May 27 (Bloomberg) -- Bank of Montreal, the first Canadian bank to report earnings, said profit fell for a fourth straight quarter on rising loan losses and indicated it will set aside more money this year as bad loans increase.

Net income for the period ended April 30 fell 4.3 percent to C$642 million ($649 million), or C$1.25 a share, from C$671 million, or C$1.29, a year earlier, the Toronto-based bank said today in a statement. It's the first time since 2002 that profit has dropped four consecutive quarters.

Canada's fourth-biggest bank joins other Canadian lenders that are expected to post a decline in profit on a slowdown in investment banking, rising loan losses and debt writedowns. Average profit before one-time items at the six biggest banks will probably drop 5 percent, according to Robert Sedran, an analyst at National Bank Financial in Toronto.

``With BMO, traditionally the low provision bank, increasing its provision guidance, we believe that the other banks will face earnings headwinds in the coming quarters,'' Dundee Capital Markets analyst John Aiken said in a note to clients.

Excluding one-time items, profit was C$1.26 a share, Bank of Montreal said. That beat the median estimate of C$1.21 a share from 14 analysts in a Bloomberg survey. Sedran said the bank earned C$1.20 a share before one-time items, missing his C$1.22 a share estimate.

Stock Declines

Bank of Montreal fell 10 cents to C$48.90 at 10:22 a.m. on the Toronto Stock Exchange, leading other bank stocks lower. The stock has fallen 13 percent this year, the worst performer among Canada's six biggest banks.

The lender set aside C$151 million for bad loans in the second quarter, up from C$59 million a year ago. Revenue rose 3.6 percent to C$2.62 billion. The bank expects loan loss provisions to rise from the rate of C$170 million reported in the first quarter as loan defaults tied to U.S. real estate rise and the Canadian economy expands at its slowest pace in 16 years in 2008.

Profit was lifted by C$42 million in net recoveries from past debt writedowns. This is the first quarter since Chief Executive Officer Bill Downe took over in March 2007 that the bank hasn't reported writedowns or charges on debt investment or natural gas bets. The bank recovered C$85 million pretax from its Apex and Sitka asset-backed trusts due to ``increased likelihood of successful restructuring'' and C$35 million for derivatives and debt investments.

Additional Writedowns

The bank was expected to report writedowns of C$200 million this quarter, according to TD Newcrest analyst Jason Bilodeau, adding to the C$1.66 billion already reported in the past five quarters.

``Our outlook is improving as there are indications that concerns are easing in credit markets as credit spreads are trending towards more normal levels,'' Downe said in the statement.

Canadian consumer banking profit rose 1.2 percent to C$331 million from a year ago, while profit from its Chicago-based Harris consumer bank climbed 3.4 percent to C$30 million.

Earnings from the private-client group, which includes brokerage, investing services and mutual funds, rose 10 percent to C$109 million.

Investment banking profit fell 7.6 percent to C$182 million from a year ago on a slump in mergers and net stock sales. BMO Capital Markets arranged $695.8 million in stock sales, down from $1.43 billion a year earlier, according to Bloomberg data.

Bank of Nova Scotia, Canada's second-biggest lender, reports results later today. Toronto-Dominion Bank reports tomorrow, followed by Royal Bank of Canada, Canadian Imperial Bank of Commerce and National Bank of Canada on May 29.
http://www.bloomberg.com/apps/news?pid=20601082&sid=ay5z342zlY_E&refer=canada

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SourceForge Inc. reported late Tuesday third-quarter adjusted income from continuing operations of $107,000, or breakeven on a per-share basis, meeting the mean estimate of analysts polled by Thomson Reuters.

In the same period a year earlier, the company posted adjusted income from continuing operations of $2.1 million, or 3 cents a share.

SourceForge reported it swung to a net loss of $439,000, or a penny a share, from a net profit of $6.49 million, or 9 cents a share, last year.

Revenue for the period ended April 30 rose 15% to $11.8 million from last year's $10.3 million. Analysts had expected sales of $11.6 million for the quarter.

The stock of the Mountain View, Calif.-based operator of media and e-commerce Web sites closed the regular session at $1.68. Wanfeng Zhou wz/kh
http://www.iii.co.uk/news/?type=afxnews&articleid=6731350&subject=companies&action=article

[3xBuBu]

U.K. Stocks Decline; Vodafone, Taylor Wimpey Lead the Retreat

By Adam Haigh

May 27 (Bloomberg) -- U.K. stocks dropped for a third day, led by Vodafone Group Plc after Morgan Stanley said it expects earnings per share growth at the world's largest mobile-phone company to be ``very limited.''

Homebuilders including Taylor Wimpey Plc and Barratt Developments Plc dropped after research company Hometrack Ltd. said home values fell for an eighth month in May and will probably decline further. GlaxoSmithKline Plc retreated as Morgan Stanley advised investors to sell shares of Europe's largest drugmaker.

The benchmark FTSE 100 Index lost 29.10, or 0.5 percent, to 6,058.2 at 1:00 p.m. in London. The FTSE All-Share Index declined 0.5 percent and Ireland's ISEQ Index also slid 0.5 percent.

Vodafone retreated 1.2 percent to 161.4 pence. Earnings per share growth would be ``very limited,'' Morgan Stanley analysts including Nick Delfas wrote in a note to clients, without stating a time-period.

The comments came after Vodafone said Chief Executive Officer Arun Sarin will step down and be replaced by his deputy Vittorio Colao as it reported a record profit of 6.66 billion pounds ($13.2 billion).

Taylor Wimpey, the U.K.'s largest homebuilder, fell 4.7 percent to 92 pence. The average cost of a residential property in England and Wales slipped 0.5 percent in May while prices retreated 1.9 percent from a year earlier, the biggest decline since November 2005.

Barratt Developments, the U.K.'s second-biggest house builder by volume, tumbled 6.9 percent to 204.75. Citigroup Inc. is selling shares valued at 14.6 million pounds ($28.8 million) in Barratt.

GlaxoSmithKline lost 1.9 percent to 1,099.5 pence. Morgan Stanley downgraded the shares to ``underweight'' from ``equal- weight,'' citing possible delays to U.S. approval of its Cervarix cervical cancer vaccine.

The following stocks also rose or fell in the U.K. and Irish markets. Stock symbols are in parentheses.

U.K. Companies:

Johnson Matthey Plc (JMAT LN) added 43 pence, or 2.4 percent, to 1,916 after it was upgraded to ``buy'' from ``neutral'' by Merrill Lynch analysts which cited higher prices for platinum-group metals and oil.

Moss Bros Group Plc (MOSB LN) slumped 5.5 pence, or 12 percent, to 40 pence. Baugur Group Hf, the Icelandic owner of U.K. fashion brands Karen Millen and Oasis, said it scrapped its 40 million-pound offer for the suit retailer.

Northern Foods Plc (NFDS LN) rose 2 pence, or 2.3 percent, to 88. The largest U.K. maker of prepared meals posted an annual profit of 34.5 million pounds after raising prices and selling units last year.

SABMiller Plc (SAB LN) added 91 pence, or 7.4 percent, to 1,315 pence, the biggest increase since July 2005. The world's third-largest brewer rose after the Financial Times reported InBev NV is weighing a merger between the companies. Nigel Fairbrass, a spokesman for SABMiller, and InBev spokeswoman Marianne Amssoms both declined to comment today on the article.
http://www.bloomberg.com/apps/news?pid=20601102&sid=a7sHOuj5pi9Y&refer=uk

[3xBuBu]

Thursday, May 29
J. Crew posts 24% higher profit; trims outlook (4:33 pm ET)
SAN FRANCISCO (MarketWatch) -- J. Crew Group Inc. (JCG: news, chart, profile) reported after the bell Thursday fiscal first-quarter net income of $30.5 million, or 48 cents a share, up from $24.6 million, or 39 cents a share, a year ago. For the three months ended April 30, revenue rose 15% to $340.6 million from 297.3 million. Analysts surveyed by FactSet had expected a profit of 47 cents a share on $334 million in sales. The New York-based clothing company trimmed its full-year 2008 earnings outlook to $1.70 to $1.75 a share from $1.85 to $1.87 earlier. The revised outlook sees same-store sales growth at flat or low single-digits while direct sales are seen in the high single-digits. J. Crew shares closed ahead of the report with a 71-cent loss at $46.91.
Novell swings to profit in second quarter(4:15 pm ET)
SAN FRANCISCO (MarketWatch) - Novell Inc. said Thursday it swung to a profit in its fiscal second quarter compared to the period a year earlier. Waltham, Mass.-based Novell (NOVL: news, chart, profile) , which provides open source software and services to businesses, reported net income for the period ended in April of $5.87 million, or 2 cents a share, compared to a loss of $2.89 million, or a penny a share in the same period a year earlier. Meanwhile revenue rose to $235.67 million from $232.39 million. Excluding special items, Novell said earnings from continuing operations for the quarter were 6 cents a share. Analysts on average estimated that Novell would report earnings of 6 cents a share, and $234.3 million in revenue, according to FactSet Research.
Dell earnings rise 4% as sales top $16 billion(4:14 pm ET)
SAN FRANCISCO (MarketWatch) -- Dell Inc. (DELL: news, chart, profile) on Thursday reported a fiscal first-quarter profit of $784 million, or 38 cents a share, on $16.08 billion in revenue. During the same period a year ago, the computer giant earned $756 million, or 34 cents a share, on sales of $14.72 billion. Analysts surveyed by FactSet Research had forecast Dell to earn 34 cents a share on $15.66 billion in sales. The company didn't give a second-quarter forecast. However, Dell said in a statement that it "is seeing conservatism in IT spending in the U.S." across its base of business customers.
Soleil analyst eyes weak demand for gasoline(11:34 am ET)
NEW YORK (MarketWatch) -- Soleil Securities analyst Jacques H. Rousseau said stockpiles of gasoline, jet fuel and other distillates have fallen in-line with the five-year average for this calendar week. "We remain concerned that this positive development has only occurred because of reduced supply, and that refiners are likely to ramp up production in the coming weeks due to the recent gains in refining margins," Rosseau said. "A sustained improvement in the sector is unlikely to occur absent an increase in demand, which is unlikely with crude oil prices at these levels, in our view." In recent action the Amex Oil Index (XOI: news, chart, profile) fell 0.6% to 1,574, pulled down by shares of refiner Sunoco (SUN: news, chart, profile) , off 3.4% to $44.01.
MasterCard shares rally before analyst meeting(10:29 am ET)
BOSTON (MarketWatch) -- Shares of MasterCard Inc. (MA: news, chart, profile) were up nearly 10% at last check in early trade Thursday after the credit-card giant released documents in a filing ahead of an analyst meeting. The company said its long-term performance objectives include average annual net revenue growth between 12% and 15%, and average annual net income growth in the range of 20% to 30%. Visa Inc. (V: news, chart, profile) gained more than 5% in morning dealings.
Corning sees strong growth continuing in second quarter(8:43 am ET)
WASHINGTON (MarketWatch) - Corning Inc. (GLW: news, chart, profile) on Thursday reiterated its prior second-quarter outlook, saying it expects year-over-year sales to increase more than 20% to $1.71 billion to $1.75 billion, with earnings minus onetime items ranging from 47 cents to 50 cents a share. Wall Street has been projecting that Corning would earn 47 cents a share on revenue of $1.72 billion, according to FactSet Research. The company said continued growth of flat-panel television sales has been the catalyst and that Corning sees "no evidence of an economic downturn impacting LCD TV sales in the U.S." Unit sales of LCD TVs in the U.S. have risen at least 30% in each of the first four months compared to a year earlier, Corning said.
Joy Global's second-quarter profit falls on charges(7:21 am ET)
NEW YORK (MarketWatch) -- Joy Global Inc. (JOYG: news, chart, profile) said Thursday that its second-quarter net income fell to $72.1 million, or 66 cents a share, from $77.6 million, or 70 cents a share, a year earlier. The latest results include 20 cents a share in charges. On average, analysts polled by FactSet Research expected earnings of 75 cents a share. The Milwaukee mining equipment company's sales rose 34% in the quarter ended May 2 to $843.1 million from $629.2 million a year ago. Joy Global's orders during the second quarter rose 69% to $1.2 billion. For the full year, the company raised its sales guidance to a range of $3.3 billion to $3.4 billion, compared to its prior view of $3.1 billion to $3.3 billion. It also said it expects a full-year profit of $3.15 to $3.30 a share.
Sears swings to 1st-quarter loss on 5.7% lower revenue(6:19 am ET)
TEL AVIV (MarketWatch) -- Sears Holdings Corp., (SHLD: news, chart, profile) Hoffmann Estates, Ill., the No. 4 U.S. retailer, swung to a first-quarter net loss from a year-earlier profit and lifted its share-buyback plan by $500 million to a total of $643 million. The loss reflects "the difficult economic environment and intense competition," said W. Bruce Johnson, interim president and chief executive officer, in a statement. For the quarter ended May 3, Sears posted a loss of $56 million, or 43 cents a share, compared with net income of $223 million, or $1.45, in the year-earlier period. Shares outstanding fell 14% to 131.7 million. Excluding special items, the loss was 53 cents a share against profit of $1.15. Revenue fell 5.7% to $11.07 billion from $11.75 billion. A survey of analysts by FactSet Research produced a consensus estimate of profit of 21 cents for the quarter. Total comparable-store sales fell 8.6%.
Big Lots net up 20%, ups annual earnings guidance(6:10 am ET)
LONDON (MarketWatch) -- Big Lots (BIG: news, chart, profile) said first-quarter net income rose 20% to $34.5 million, or 42 cents a share, with sales up 2% to $1.15 billion. Analysts polled by FactSet expected the Columbus, Ohio retailer to earn 36 cents a share. For the second quarter, it sees earnings from continuing operations between 21 cents and 25 cents a share and upped its fiscal-year view to $1.80 to $1.90 a share, an increase of 10 cents a share on both lower- and top-ends. Analysts were expecting annual earnings of $1.79.
Heinz to lift forecasts, unveil two-year plan: Journal(4:54 am ET)
TEL AVIV (MarketWatch) -- H.J. Heinz Co., (HNZ: news, chart, profile) the Pittsburgh foods giant, is expected on Thursday to lift its forecasts for growth in earnings and sales in the next two years, The Wall Street Journal reported. The company is due to report results for fiscal 2008 on Thursday; a survey of analysts by FactSet Research is looking for fiscal fourth-quarter earnings of 62 cents a share. The company will unveil its first two-year plan since a proxy fight waged by the investor Nelson Peltz in 2006, the Journal reported. The growth will stem from new products, higher pricing, and a push into emerging markets, people close to Heinz told the paper.
Costco 3rd-period net up 32%, sales up 13%, same-store up 8%(3:32 am ET)
TEL AVIV (MarketWatch) -- Costco Wholesale Corp., (COST: news, chart, profile) Issaquah, Wash., the largest U.S. warehouse retailer, reported fiscal third-quarter net income rose a stronger-than-expected 32% on 13% higher total sales and 8% higher same-store sales. For the quarter ended May 11, earnings reached $295.1 million, or 67 cents a share, from $224 million, or 49 cents, in the year-earlier period. Sales increased to $16.26 billion from from $14.34 billion. A survey of analysts by FactSet Research produced consensus estimates of 65 cents of profit on $16.32 billion of sales. Same-store sales, those from outlets open at least a year to eliminate the effects of new and divested stores, rose 6% in the U.S. and 16% internationally, Costco reported on Thursday. Revenue, which includes membership fees, rose 13% to $16.61 billion. Costco had said that a higher reserve for returns would hurt sales; excluding that higher reserve, total sales rose 12%. Excluding gasoline-price inflation, U.S. same-store sales rose 4%. Neutralizing the effects of stronger currencies, especially the Canadian dollar, international same-store sales rose 6%. Costco operates 538 warehouses, including 394 in the U.S. and Puerto Rico, 75 in Canada, 19 in the U.K., six in Korea, five in Taiwan, eight in Japan and 31 in Mexico.
Air Berlin narrows loss, says is 88% hedged on fuel(2:46 am ET)
LONDON (MarketWatch) -- Air Berlin (DE:AB1000: news, chart, profile) said its first-quarter loss narrowed to 59 million euros ($92 million) from 66.4 million euros, as revenue rose 4% to 631.4 million euros as growing demand for individual seats for domestic and inter-European flights offset a decline from the charter business. Analysts polled by FactSet expected a loss of 64.8 million euros on revenue of 666 million euros. Air Berlin said 88% of its fuel requirements are hedged for the year, requiring it to spend 80 million euros more than it planned in March on fuel, but it's expecting a profit before interest and tax after eliminating unprofitable flight routes and cutting capacity. Air Berlin also noted a cooling off of the economy and the slow start-up of new long-distance flights. Analysts expect earnings before interest and tax of 73.8 million euros for the year.
Infineon Technologies warns on communications segment(2:31 am ET)
LONDON (MarketWatch) -- Infineon Technologies (IFX: news, chart, profile) (DE:623100: news, chart, profile) , the German microchip maker which earlier this week announced the departure of CEO Wolfgang Ziebart, said it's cutting its communications solutions revenue guidance, now seeing flat fiscal third-quarter revenue compared to the previous quarter because of lower volumes in "certain wireless platform projects." Infineon sees earnings before interest and tax, excluding gains and charges, to fall on a sequential basis. Previously, Infineon said communications segment revenue would rise by a mid- to high-single-digit percentage and a 25 million euro loss before interest, tax and charges. In the fourth quarter, revenue and EBIT will improve, it added.
Hedge fund manager Man reports 55% profit rise(2:25 am ET)
LONDON (MarketWatch) -- Hedge fund manager Man Group (UK:EMG: news, chart, profile) said its year to March 31 profit from continuing operations rose 55% to $1.72 billion, as funds under management rose 21% to $74.6 billion, management fee income rose 21% to $1.14 billion and performance fee income more than doubled to $936 million. For the year, it's paying a dividend of 44 cents a share, up from 20 cents, and will restart its share buyback plan. In the first two months of the current year, funds under management have climbed another $4 billion to $78.5 billion both due to performance and sales growth.
Antisoma gets $25 mln milestone payment from Novartis(2:15 am ET)
TEL AVIV (MarketWatch) -- Antisoma, (ATSMY: news, chart, profile) (UK:ASM: news, chart, profile) the London biotech firm specializing in cancer treatments, said on Thursday that it received a $25 million payment from Novartis, (NVS: news, chart, profile) the Basel drugmaker. The milestone payment was prompted when a Phase III trial of ASA404 to treat non-small-cell lung cancer began.

[3xBuBu]

Friday, May 30
Energy stocks rise with broad market (9:36 am ET)
NEW YORK (MarketWatch) -- Energy stocks rose out of the gate along with the broad market on Friday. The Amex Oil Index (XOI: news, chart, profile) rose 0.2% to 1,559. The Amex Natural Gas Index (XNG: news, chart, profile) added 0.5% to 704. Chevron (CVX: news, chart, profile) rose 45 cents to $99.34. Exxon Mobil (XOM: news, chart, profile) advanced 37 cents to $89.72. Both of the oil giants are components of the 30-stock Dow Jones Industrial Average $dj]. Oil futures rose 81 cents to $127.43.
Pharmacopeia to cut workforce by 15%(7:13 am ET)
NEW YORK (MarketWatch) -- Pharmacopeia (PCOP: news, chart, profile) said Friday that it will cut its workforce by about 15% and expects to reduce its annual operating expenditures by at least $10 million in 2009. The Princeton, N.J., drug developer said the step is part of its effort to focus resources on its clinical and later-stage discovery programs. It plans to record a charge of about $800,000 in the second quarter, related to the staff cuts. Shares of Pharmacopeia closed Thursday at $4.24.

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ER Week 08-06-02
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My posting is for my own entertainment, do your own DD before pushing your buy/call button