11:42 INSID Weekly Insider Trading Summary: Dai Ichi continues to add to stake in JNS per strategic alliance; TPX holder increases position; execs at MCF buying stock; notable selling at BCR This week we've seen notable insider buying in the following stocks: · Janus Capital Group (JNS) 10% owner Dai-ichi Life Insurance bought 2,033,307 shares at $9.30-9.48 on 10/1-10/4, worth ~$19.1 mln · Tempur Pedic (TPX) 10% owner Chieftain Capital Management bought 528,410 shares at $29.91-31.76 on 10/1-10/3, worth ~$16.3 mln · Contango Oil & Gas (MCF) Acting CEO, CFO and VP bought a total of 46,764 shares at $49.08-50.77 on 9/27-10/4, worth ~$2.3 mln · Limited Brands (LTD) Director bought 10,110 shares at $49.43-49.62 on 10/2, worth ~$500K We've seen notable insider selling in the following stocks: · CR Bard (BCR) Director sold 291,704 shares at $105.00-105.25 on 9/27-10/3, worth ~$30.7 mln · SeaBright Holdings (SBX) COO, CMO, SVP, & Director sold a total of 420,061 shares at $11.02-11.12 on 9/27-9/28, worth ~$4.6 mln · Discover Financial Services (DFS) COO sold 100K shares at $39.49-40.00 on 10/1, worth $3.98 mln · Cheniere Energy (LNG) Director sold 189,680 shares at $15.56-15.84 on 10/2-10/3, worth ~$3.0 mln For regular updates on our insider summaries and commentary, please add Briefing ticker INSID to ticker alerts. Transactions exclude pre-arranged trading plans. Sales exclude option-related sell-offs.
ER121017: IBM INTC EBAY FFIV CREE ASML CYMI APOL FTNT CHKP NTRS PEP HAL Stocks began today's session on a negative note after two technology bellwethers reported disappointing earnings. However, the cautious sentiment was short-circuited when today's housing starts report revealed its highest reading since July 2008. The major averages reacted by staging a steady climb to their respective session highs. A brief afternoon stumble followed, but the move was promptly retraced as the S&P 500 returned to its prior level, and closed higher by 0.4%.
The technology sector was the worst performing group in the S&P 500. Intel (INTC 21.79, -0.56) slipped 2.5% despite beating its earnings and revenue expectations. It should be noted this quarter marked the first time Intel reported a decline in year-to-year revenue since the third quarter of 2009. In addition, Sterne Agee lowered its price target for Intel to $20 from $22.
IBM (IBM 200.63, -10.37) slid 4.9% after reporting a slight earnings beat and a revenue miss. Following the earnings release, the stock was downgraded by Janney Montgomery Scott and Societe Generale. Janney Montgomery Scott lowered IBM's rating to ‘buy' from ‘neutral' while Societe Generale downgraded the company to ‘sell' from ‘hold.'
Networking stocks also saw weakness. Cisco Systems (CSCO 18.70, -0.15), F5 Networks (FFIV 97.33, -3.86), and Juniper Networks (JNPR 17.31, -0.17) all lost between 0.8% and 3.8%. Earlier, Cantor Fitzgerald downgraded Cisco to ‘hold' from ‘buy' with a $19.50 price target.
On the upside, Cree (CREE 28.92, +2.73) settled higher by 10.4% after beating on earnings and reporting in-line revenues. In addition, the company issued in-line earnings and revenue guidance for the second quarter.
In M&A news, ASML Holdings (ASML 50.08, -3.50) will acquire Cymer (CYMI 71.45, +23.62) in a cash-and-stock transaction valued at EUR1.95 billion. The total price reflects a 61.0% premium to Cymer's 30-day volume-weighted average price. Following the report, ASML shed 6.6% while Cymer surged 49.4%. http://finance.yahoo.com/marketupdate?u
Apollo tumbles 17% on weak results, downgrades (10:33 am ET) SAN FRANCISCO (MarketWatch) -- Apollo Group Inc. (APOL: news, chart, profile) shares plunged as much as 17% in early trades Wednesday after the for-profit education provider was hit by downgrades from several equities analysts following a weak earnings report. Apollo, citing declining enrollment numbers, announced late Tuesday its fiscal fourth-quarter profit fell 60% from a year ago. It also trimmed its full-year revenue outlook to $3.65 billion to $3.8 billion, less than the $4.07 billion analysts were looking for. The weak results and outlook overshadowed steep cost cuts Apollo is putting in place. Analysts at Credit Suisse, Deutsche Bank Markets Research and BMO Capital Markets were among those who cut their targets on the company. Apollo shares were last trading 17% lower at $22.81, a 52-week low. The stock is down 46% from where it traded a year ago.
Cree shares rise 11% as earnings top forecasts(10:30 am ET) SAN FRANCISCO (MarketWatch) -- Cree Inc. (CREE: news, chart, profile) shares climbed 11%, to $29.13 Wednesday following the LED lighting company's fiscal first-quarter results. Late Tuesday, Cree reported earnings excluding one-time items of 27 cents a share, on revenue of $315.8 million, up from earnings of 25 cents a share on, $269 million in sales, in the same period a year ago. Wall Street analysts had forecast Cree to earn 26 cents a share on revenue of almost $318 million.
Northern Trust profit climbs by nearly 5%(7:52 am ET) NEW YORK (MarketWatch) -- Northern Trust Corp. (NTRS: news, chart, profile) said Wednesday its third-quarter profit increased to $178.8 million, or 73 cents a share, from $170.4 million, or 70 cents a share, in the year-ago period. The Chicago-based financial firm's revenue rose to $972.5 million from $971.5 million. Wall Street analysts expected Northern Trust to earn 74 cents a share on revenue of $987.5 million, according to a survey by FactSet. Northern Trust reported 16% growth in client assets under management, but said it faced headwinds from lower interest rates, market activity and volatility. "We continued to adapt to these macroeconomic challenges with effective expense management," the company said.
Halliburton profit falls, sees higher U.S. costs(7:39 am ET) NEW YORK (MarketWatch) -- Halliburton Co. (HAL: news, chart, profile) said Wednesday its third-quarter profit dropped to $602 million, or 65 cents a share, from $683 million, or 74 cents a share, in the year-ago period. Adjusted profit in the latest quarter totaled 67 cents a share. The oil service firm's revenue rose to $7.11 billion from $6.55 billion. Wall Street analysts expected Halliburton to earn 67 cents a share on revenue of $7.14 billion, according to a survey by FactSet. Halliburton said lower activity and higher costs in the U.S. land market bit into revenue from the second quarter's level of $7.23 billion.
PepsiCo profit falls 5%, but beats estimate(7:24 am ET) NEW YORK (MarketWatch) -- PepsiCo (PEP: news, chart, profile) said Wednesday its third-quarter profit dipped 5% to $1.9 billion, or $1.21 a share, from $2 billion, or $1.25 a share, in the year-ago period. Adjusted earnings for the soft drink and snacks company totaled $1.20 a share. Revenue moved down by 5% to $16.65 billion. Wall Street analysts expected Pepsi to earn $1.16 a share on revenue of just under $17 billion, according to a survey by FactSet. Pepsi said it's on track to return more than $6 billion to shareholders through dividend payments and share purchases in 2012. It expects $1 billion in productivity savings in 2012.
AMD swings to loss, laying off 15% of workforce(4:36 pm ET) SAN FRANCISCO (MarketWatch) -- Advanced Micro Devices (AMD: news, chart, profile) reported a deep net loss for the third quarter on Thursday afternoon, and announced a restructuring program that will result in the layoffs of 15% of its total workforce, or about 1,770 people. "It is clear that the trends we knew would re-shape the industry are happening at a much faster pace than we anticipated," CEO Rory Read said in a statement. The PC chipmaker reported a loss of $157 million, or 21 cents a share, for the third quarter compared to earnings of $97 million, or 13 cents a share, for the same period last year. Adjusted net loss was 20 cents a share. Analysts were expecting a loss of 13 cents a share for the period. Revenue of $1.27 billion was in line with a pre-announcement by the company last week. AMD shares were up 1% in after-hours trading on Thursday.
ETrade moves to loss(4:25 pm ET) CHICAGO (MarketWatch) -- Online brokerage firm ETrade (ETFC: news, chart, profile) said Thursday that it moved to a third-quarter loss on special items. The company said it lost $28.63 million, or 10 cents a share. In the same period last year, it turned a profit of $70.7 million, or 24 cents a share. Revenue fell to $490 million from $507.3 million. Provision for loan losses rose to $141 million from $98.4 million.
Chipotle forecasts slower growth; shares slide 10%(4:20 pm ET) SAN FRANCISCO (MarketWatch) -- Growth at Chipotle Mexican Grill (CMG: news, chart, profile) is slowing. Chipotle missed Wall Street targets for the third-quarter and further forecast there could be no growth in comparable restaurant sales for 2013. Shares fell 10% to $256.64 after the report. For the period ended Sept. 30, profit rose 20% to $72 million, or $2.27 a share, from the year-ago quarter. However, that came in 2 cents below what analysts had forecast, according to FactSet. Sales rose 18% to $700.5 million for the recent quarter. Comparable restaurant sales increased 4.8%, just shy of the 4.9% estimate of analysts. Restaurant level operating margin rose to 27.4% from 26.7%. Chipotle shares have sunk 29% since July due to concerns about the company's future growth.
Cubist Pharmaceuticals third-quarter net climbs(4:20 pm ET) LOS ANGELES (MarketWatch) -- Cubist Pharmaceuticals (CBST: news, chart, profile) said Thursday that third-quarter net income was $40.3 million, or 55 cents a share, compared with $24.2 million, or 33 cents a share, for the same period a year ago. Reporting after the close, the Lexington, Mass.-based drugmaker said sales were $238.2 million against last year's $201.7 million. Analysts polled by FactSet had expected the company to earn 47 cents a share for the quarter. Shares ended trading on Thursday down 1.4% to $47.25.
Capital One posts hefty increase in profit(4:16 pm ET) CHICAGO (MarketWatch) -- Buoyed by strength in its ING Direct and HSBC U.S. credit card units, Capital One Financial on Thursday reported a hefty increase in third quarter profit. The company earned $1.2 billion, or $2.01 a share, on the period, up from $813 million, or $1.77 a share, in the same quarter of 2011. Revenue came in at $5.78 billion, vs. $4.15 billion. The average estimate of analysts polled by FactSet had been for Capital One (COF: news, chart, profile) to earn $1.68 a share on revenue of $5.56 billion. The company "posted solid results across all of our businesses," said Richard Fairbank, chief executive, in the earnings report. "We are well positioned to sustain strong returns and capital generation, even in an environment with low industry growth and prolonged low interest rates."
Microsoft earnings fall 22%; sales also down(4:09 pm ET) SAN FRANCISCO (MarketWatch) -- Microsoft Corp. (MSFT: news, chart, profile) on Thursday reported a fiscal first-quarter profit of $4.47 billion, or 53 cents a share, on revenue of $16 billion. During the same period a year ago, the software giant earned $5.74 billion, or 68 cents a share, on $17.37 billion in revenue. Analysts surveyed by FactSet had forecast Microsoft to earn 56 cents a share on $16.5 billion in sales for the quarter ended Sept. 30. The results came out ahead of Microsoft's upcoming release of the Windows 8 operating system, set for Oct. 26.
Google blames financial printer for report release(1:31 pm ET) SAN FRANCISCO (MarketWatch) - Google Inc. (GOOG: news, chart, profile) on Thursday said its third-quarter report was released ahead of schedule after R.R. Donnelley (RRD: news, chart, profile) , the company's financial printer "filed our draft 8K earnings statement without authorization." "We have ceased trading on NASDAQ while we work to finalize the document," the company said in a statement. "Once it's finalized we will release our earnings, resume trading on NASDAQ. Trading in Google shares were halted. The stock fell 9% after the report became available on the SEC site.
Google offsets new hires with Motorola layoffs(1:06 pm ET) SAN FRANCISCO (MarketWatch) -- Google Inc. managed to offset a strong pace of new hires for its core business with large-scale layoffs at its newly acquired Motorola unit. In its third-quarter report that moved several hours earlier than expected on Thursday, Google (GOOG: news, chart, profile) said it hired 1,807 workers for its core business, but eliminated about 2,865 jobs at Motorola during the period. That brought the company's total headcount to 53,546 workers at the end of the third quarter compared to 54,604 workers for the June period, according to the earnings report filed with the Securities and Exchange Commission. Google shares were down 9% following the report, as the company's earnings missed Wall Street's expectations.
Google profit falls, misses estimates(12:49 pm ET) SAN FRANCISCO (MarketWatch) - Google Inc. (GOOG: news, chart, profile) on Thursday reported a third-quarter profit of $2.18 billion, or $6.53 a share, compared with a profit of $2.73 billion, or $8.33 a share, for the year-earlier period. Revenue, minus traffic acquisition costs, was $11.33 billion, up from $7.51 billion in the year-earlier period. Adjusted profit was $9.03 a share. Analysts were expecting an adjusted profit of $10.63 a share, on revenue of $11.39 billion. Shares of Google were down 8%. The report was originally expected to be released after Thursday's closing bell, but the results were filed early with the Securities and Exchange Commission.
EBay shares rise 4% in wake of earnings report(9:53 am ET) SAN FRANCISCO (MarketWatch) -- EBay Inc. [s ebay] shares rose 4%, to $50.13 Thursday following what was seen as a positive, and in-line third-quarter earnings report. Late Wednesday, eBay said that it earned $597 million, or 45 cents a share, on revenue of $3.4 billion, up from a profit of $491 million, or 37 cents a share, on $2.97 billion in sales in the same period a year ago. Excluding one-time items, eBay would have earned 55 cents a share. Analysts surveyed by FactSet had forecast eBay to earn 54 cents a share on $3.4 billion in sales. The company said strong growth in its marketplace and PayPal businesses spurred its performance during the quarter.
Accounting charges weigh on Nucor earnings(9:41 am ET) BOSTON (MarketWatch) -- Nucor Corp. (NUE: news, chart, profile) reported markedly lower third-quarter earnings early Thursday, due in part to acquisition and asset-sale related charges. The steelmaker posted net income of $110 million, or 35 cents a share, compared with $182 million, or 57 cents a share, for the same period in 2011. Third-quarter 2012 results included various charges amounting to 10 cents a share. Revenue slid to $4.8 billion from $5.3 billion. A poll of analysts by Thomson Reuters had pegged Nucor at posting revenue of $4.87 billion. Last month, Nucor said it saw third-quarter earnings coming in between 30 and 35 cents a share.
Apple shares slip on Verizon's iPhone 5 comments(9:36 am ET) SAN FRANCISCO (MarketWatch) -- Apple Inc. (AAPL: news, chart, profile) saw its shares fall 1.1% to $637.51 in early trades on Thursday after wireless carrier Verizon (VZ: news, chart, profile) disclosed "supply constraints" for the iPhone 5 in the September quarter. Verizon reported its own third-quarter results on Thursday morning, noting that it activated a total of 3.1 million iPhones -- including about 651,000 units of the iPhone 5. "We had a supply constraints," Verizon CFO Fran Shammo said on a conference call about the new smartphone, which went on sale on Sept. 21. He added that "we're not sure where we are going to stand in the fourth quarter with those constraints," but also said a large portion of customers are also coming to the carrier for the iPhone 4S, the price of which was cut to $99 with a two-year contract upon the launch of the newer iPhone.
Verizon sees iPhone 5 supply constraints(9:20 am ET) NEW YORK (MarketWatch) -- Verizon Communications Inc. (VZ: news, chart, profile) said Thursday it sold 651,000 Apple Inc. (AAPL: news, chart, profile) iPhone 5 smart phones in the third quarter, which went on sale near the end of the period. CFO Fran Shammo said the company faced supply constraints of the iPhone 5. All told, Verizon activated 3.1 million iPhones in the quarter. Verizon activated 3.4 million Android phones during the quarter.
Travelers, Morgan Stanley post solid preopen gains(8:34 am ET) NEW YORK (MarketWatch) -- Travelers Cos. (TRV: news, chart, profile) , one of the financial stocks in the Dow Jones Industrial Average (DJIA: news, chart, profile) , gained 2% in preopen trading on Thursday, putting it near the top of the gainers list before the open. Fellow financials KeyCorp (KEY: news, chart, profile) , Morgan Stanley (MS: news, chart, profile) and U.S. Bancorp (USB: news, chart, profile) joined Travelers on the gainers' list as after all three posted winning earnings reports. KeyCorp's third-quarter profit rose 0.9% as the regional bank saw higher revenue mask a sharp increase in loan-loss provisions. Morgan Stanley swung to a third-quarter loss as the investment bank was hit by a huge mark-to-market loss related to the value of its debt, but results beat Wall Street expectations. U.S. Bancorp's third-quarter earnings rose 16% as the lender saw overall revenue pop, helped by mortgage-banking revenue more than doubling.
Blackstone Group profit rises(8:24 am ET) NEW YORK (MarketWatch) -- Blackstone Group L.P. (BX: news, chart, profile) said on Thursday that its economic net income rose to $621.7 million, or 55 cents a share, from a loss of $380 million, or 34 cents a share a year ago. It said distributable earnings in the quarter rose to $189.6 million or 15 cents a share compared to $125.7 million or 10 cents a share a year ago. Total revenue was $1.22 billion in the quarter, compared to a negative $140.3 million a year ago. Analysts polled by FactSet Research had expected the company to earn 41 cents a share on revenue of $987 million.
Union Pacific profit rises 15%(8:17 am ET) NEW YORK (MarketWatch) -- Union Pacific Corp. (UNP: news, chart, profile) said Thursday its third-quarter profit rose 15% to $1.04 billion, or $2.19 a share, from $904 million, or $1.85 a share, in the year-ago period. Revenue rose 5% to $5.34 billion from $5.1 billion. Wall Street analysts expected the railroad company to earn $2.18 a share on sales of $5.38 billion, according to a survey by FactSet. "As we look out over the next several months, the political and financial challenges in the U.S. and abroad have increased economic uncertainty," said CEO Jack Koraleski said. "In this environment, we'll continue to be agile."
Fairchild Semi profit drops, revenue to fall short(7:47 am ET) NEW YORK (MarketWatch) -- Fairchild Semiconductor (FCS: news, chart, profile) said Thursday its third-quarter profit fell to $24.7 million, or 19 cents a share, from $35.8 million, or 28 cents a share, in the year-ago period. Adjusted profit at the technology company fell to 25 cents a share from 34 cents a share. Sales dipped to $358.8 million from $403 million. Wall Street analysts expected earnings of 17 cents a share on sales of $368.6 million, according to a survey by FactSet. Looking ahead, Fairchild expects fourth-quarter sales of $330 million to $350 million, below the analyst estimate of $379.8 million.
Philip Morris profit falls (7:44 am ET) NEW YORK (MarketWatch) -- Philip Morris International Inc. (PM: news, chart, profile) said on Thursday that it earned $2.23 billion, or $1.32 a share in the third quarter, compared to $2.38 billion, or $1.35 a share a year ago. On an adjusted basis, the tobacco company reported a $1.38 a share profit in the quarter. Net revenue, excluding excise tax, fell 5.3% to $7.92 billion, however increased 3.5% on a constant currency basis. Analysts polled by FactSet Research had expected the company to earn $1.39 a share, on revenue of $8.21 billion. The company also trimmed it full-year earnings outlook to $5.12 - $5.18 a share.
Nokia swings to adjusted operating profit in Q3(7:34 am ET) LONDON (MarketWatch) -- Finnish handset maker Nokia Corp. (FI:NOK1V: news, chart, profile) (NOK: news, chart, profile) on Thursday reported a loss of 943 million euros ($1.24 billion), or 0.26 euro a share, wider than a loss of 151 million euros, or 0.02 euro, in the year-ago period. The adjusted loss was 0.07 euro a share compared with profit of 0.03 euro a year earlier. Sales came in at 7.24 billion euros versus 8.98 billion euros. Analysts surveyed by FactSet expected a third quarter loss of 0.1 euro a share on revenue of 7 billion euros. "As we expected, Q3 was a difficult quarter in our Devices & Services business," said Stephen Elop, chief executive at Nokia. "However, we are pleased that we shifted Nokia Group to operating profitability on a non-IFRS basis." Adjusted operating profit rose to 78 million euros compared with a 327 million euros loss in second quarter of 2012. The Finnish firm expects the fourth quarter to be challenging for its smart-device division, with a lower-than-normal benefit from seasonality in volumes. Shares of Nokia were up 8.1% in European trading.
Morgan Stanley swings to billion-dollar loss(7:29 am ET) NEW YORK (MarketWatch) -- Wall Street bank Morgan Stanley (MS: news, chart, profile) said Thursday that it saw a third-quarter loss of $1 billion, or 55 cents a share, compared to a profit of $1.14 a share in the year-ago period. Net revenue at the firm was $5.3 billion, down from $9.89 billion in the third quarter of 2011. Income from continuing operations applicable to Morgan Stanley was 28 cents a share, while excluding debt valuation adjustment revenue was $7.6 billion. Analysts were expecting profit of 24 cents a share on revenue of $6.36 billion, according to FactSet. Morgan Stanley's stock was trading up close to 1% in premarket following the results; it had risen 3.5% Wednesday.
Boston Scientific swings to loss on cardiac unit (7:15 am ET) NEW YORK (MarketWatch) -- Boston Scientific Corp. (BSX: news, chart, profile) said Thursday it swung to a third-quarter loss of $725 million, or 52 cents a share, from a profit of $142 million, or 9 cents a share, in the year-ago period. Breaking out an $809 million goodwill impairment associated with its U.S. Cardiac Rhythm Management unit, the company's adjusted earnings totaled 16 cents a share. Sales fell to $1.74 billion from $1.87 billion. Wall Street analysts expected the company to earn 11 cents a share on sales of $1.77 billion, according to a survey by FactSet. Boston Scientific expects to report fourth-quarter adjusted earnings of 15 cents to 18 cents a share, compared to the analyst estimate of 12 cents a share.
Disappointing reports from high profile, large cap names like Intel (INTC 21.26, -0.40), IBM (IBM 193.36, -1.60), Google (GOOG 681.79, -13.21), Microsoft (MSFT 28.64, -0.85), General Electric (GE 22.03, -0.78), and McDonald's (MCD 88.72, -4.14) have since stolen the headlines and added to bearish sentiment.
Google released a disappointing earnings report on Thursday that sent its stock price plummeting and reflected the challenges the company faces as it tries to make money in a mobile world.
So far, earnings from the 117 companies in the S&P 500 that have reported third quarter results are down approximately 4.0% year-over-year. Roughly 63.0% have beat earnings expectations while only 38.0% of companies have beat sales estimates. At the same juncture last quarter, about 68.0% of companies had beat earnings expectations while 42.0% beat sales expectations.
Looking to next week, about 700 companies covered by Briefing.com are expected to report Q3 results, including more than 150 companies in the S&P 500. Apple (AAPL 609.84, -22.80) will report on Thursday afternoon.
General Electric (GE 22.16, -0.64) is off by 2.9% after reporting earnings and revenues below Capital IQ consensus. However, the management noted that the company is performing well, and is on track to deliver double-digit earnings growth in 2012.
Caterpillar (CAT 84.03, -2.58) is down 3.0% after reporting a 6.0% increase in retail sales of machines during September. The rate appears to be slowing as sales growth during the previous two months was reported at 13.0% in August and 14.0% in July.
Looking at the technology sector, Advanced Micro Devices (AMD 2.24, -0.38) reported a loss of $0.20, which was $0.04 worse than the Capital IQ consensus estimate. In addition, the company's revenue of $1.27 billion was in-line with Capital IQ analyst expectations. Also of note, the second largest manufacturer of microprocessors issued downside guidance for the fourth quarter, and announced restructuring plans in order to improve profitability. Currently, the stock trades lower by 14.4%.
Marvell Technology (MRVL 7.58, -1.25) is sliding 14.3% after lowering its third quarter guidance. The company now expects revenue to fall between $765 million and $785 million. This is down from the previous range of $800 million to $850 million, and below the Capital IQ consensus estimate of $815.58 million. The management commented on the lowered expectations by saying that "the continued slowdown in the global economy during the third quarter is resulting in a weaker PC market than previously anticipated." The guidance cut was met with a slew of downgrades as Credit Suisse, Credit Agricole, JP Morgan, Lazard, Jefferies, Deutsche Bank, and FBR Capital all lowered their rating of the semiconductor manufacturer.
Quick service restaurants are seeing weakness following disappointing earnings from McDonald's (MCD 89.22, -3.64) and Chipotle Mexican Grill (CMG 241.23, -44.70).
McDonald's is sliding 3.9% after its earnings of $1.43 fell short of the Capital IQ consensus estimate of $1.47. Meanwhile, the company's revenues were reported at $7.15 billion, which was in-line with the Capital IQ consensus.
Elsewhere, Chipotle is falling 15.8% after missing on both earnings and revenues. The management commented on the upcoming quarter by saying they do not expect food inflation to be an issue. Following the earnings report, Wedbush downgraded the stock to ‘neutral' from ‘outperform' with a $270 price target.
Peers Buffalo Wild Wings (BWLD 83.88, -2.25), Panera Bread (PNRA 160.80, -8.74), and Starbucks (SBUX 45.68, -1.73) are all down between 2.7% and 5.2%.
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.
Alcoa (AA 9.30, +0.20) kicked off the fourth quarter earnings season with an upbeat report. The aluminum producer reported in-line earnings, but its revenue of $5.9 billion was ahead of the Capital IQ consensus estimate. In addition, Alcoa expects global aluminum demand growth of 7.0% after observing a rate of 6.0% in 2012. Seagate (STX 32.45, +1.06) is adding 3.4% after raising its second quarter revenue guidance above analyst estimates. Peer Western Digital (WDC 42.60, +0.62) is adding 1.5%. Apollo Group (APOL 19.38, -1.56) is down 7.5%. The for-profit education provider beat on earnings and revenue, but the company disappointed the market by lowering its full-year 2013 revenue guidance below consensus. Clearwire (CLWR 3.15, +0.23) is higher by 7.9% after DISH Network (DISH 36.08, +0.11) submitted an offer to acquire Clearwire for $3.30 per share. Note that Sprint Nextel (S 5.85, -0.12) has previously offered $2.97 per share to Clearwire stockholders.
Shares of Advanced Micro Devices (AMD) have taken a sharp downward turn, falling more than 18% following the release of the company's second-quarter financial results.
Prior to the announcement, Advanced Micro stock, which has soared 24% in three months, had been a relative outperformed. This compares to 4% and 5% gains for chip stocks like Nvidia (NVDA) and Texas Instruments (TXN), respectively.
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