David Weidner's Writing on the Wall
13 Wall Street voices to ignore (or not) in 2013
1.
| EARNINGSWATCH | |
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| Updates, advisories and surprises | |
| By MarketWatch.com | |
| Thursday, Dec. 20 | |
Nike shares gain on 9% higher adjusted profit  (4:38 pm ET)SAN FRANCISCO (MarketWatch) -- Nike Inc. (NKE: news, chart, profile) reported late Thursday its fiscal second-quarter 2013 net profit fell 18% to $384 million from $469 million a year ago. Net income from continuing operations rose 9% to $521 million, or $1.14 a share, from $480 million, or $1.03 a share, a year ago. Revenue for the quarter ended Nov. 30 rose 7% to $5.96 billion from $5.55 billion. Analysts surveyed by FactSet, who typically cite net income from continued operations, expected the athletic shoes and apparel maker to earn $1 a share on $6.01 billion in revenue. The company said worldwide futures orders were up 6% for the quarter. Nike shares rose as much as 3.2% to $102.21 on the report in after-hours trade. | |
RIM: "Continued pressure" with BlackBerry10 launch (4:37 pm ET)SAN FRANCISCO (MarketWatch) - Research In Motion (RIM: news, chart, profile) on Thursday said it expects "continued pressure on operating results" as the company prepares to unveil its BlackBerry 10 platform next month. RIM said the release of the new platform could also have an impact on sales of the current BlackBerry 7 products as some customers may opt to wait for the new devices based on Blackberry 10. As a result, RIM said it expects to post an operating loss in the current quarter. RIM said BlackBerry now has 79 million users. The company reported an adjusted loss of 22 cents a share, on revenue of $2.73 billion, beating consensus estimates. | |
Research In Motion profit, sales fall (4:26 pm ET)SAN FRANCISCO (MarketWatch) - Research In Motion (RIM: news, chart, profile) on Thursday reported a fiscal third-quarter profit of $9 million, or 3 cents a share, compared with a profit of $265 million, or 51 cents a share, for the year-earlier period. Revenue was $2.73 billion, down from $5.17 billion. On an adjusted basis, the company reported a loss of 22 cents a share. Analysts polled by FactSet on average were expecting the BlackBerry maker to post a loss of 35 cents a share, on revenue of $2.65 billion. Trading in RIM shares was halted. The stock was last trading up 3% to $14.12. | |
Darden Restaurants profit falls (8:41 am ET)NEW YORK (MarketWatch) -- Darden Restaurants Inc. (DRI: news, chart, profile) said Thursday its second-quarter profit fell to $33.6 million, or 26 cents a share, from $53.7 million, or 40 cents a share, in the year-ago period. The operator of Olive Garden and Red Lobster restaurants said its sales grew to $1.96 billion from $1.83 billion. Wall Street analysts expected Darden to earn 27 cents a share on sales of $1.96 billion, according to a survey by FactSet. Looking ahead, Darden expects fiscal 2013 earnings from continuing operations of $3.29 to $3.49. The figure includes about 8 to 10 cents of transaction and closing costs for the purchase of Yard House USA Inc. Analysts are looking for 2013 earnings of $3.42 a share. | |
CarMax Inc. lifts profit by 15% (7:49 am ET)NEW YORK (MarketWatch) -- CarMax Inc. (KMX: news, chart, profile) said Thursday its third-quarter profit rose 15% to $94.7 million, or 41 cents a share, from $82.1 million, or 36 cents a share, in the year-ago period. The Richmond, Va., car retailer's revenue rose to $2.6 billion from $2.26 billion. Wall Street analysts expected CarMax to earn 39 cents a share on sales of $2.47 billion, according to a survey by FactSet. | |
ConAgra profit climbs 17%, lifts view (7:42 am ET)NEW YORK (MarketWatch) -- ConAgra Foods Inc. (CAG: news, chart, profile) said Thursday its second-quarter profit increased to $211.6 million, or 51 cents a share, from $180.2 million, or 43 cents a share, in the year-ago period. Net sales rose by 8.9% to $3.74 billion. Wall Street analysts expected the company to earn 55 cents a share on sales of $3.68 billion, according to a survey by FactSet. Looking ahead, ConAgra lifted its fiscal 2013 forecast to at least $2.06 a share, up from its earlier estimate of $2.03 to $2.06 a share. Analysts expect the Omaha, Neb., company to earn $2.07 for the year. ConAgra's view doesn't include any boost from its acquisition of Ralcorp Holdings (RAH: news, chart, profile) , which is on track to close by the end of March. | |
KB Home Q4 net down, exceeds estimate; revenue up (6:13 am ET)TEL AVIV (MarketWatch) -- KB Home, (KBH: news, chart, profile) the Los Angeles home builder, reported on Thursday that fiscal-fourth-quarter net income fell 44% on 20% higher revenue. For the quarter ended Nov. 30, KB Home earned $7.7 million, or 10 cents a share, compared with $13.9 million, or 18 cents, in the year-earlier quarter. The current quarter reflected $8.2 million of charges; the year-earlier quarter reflected two special gains totaling $26.4 million. Revenue moved up to $578.2 million from $479.9 million. A survey of analysts by FactSet Research produced consensus estimates of profit of 6 cents a share on revenue of $562.9 million. In the quarter, average selling prices rose across all regions, KB said. And at the fiscal year end, the backlog was up 35% to $618.6 million. | |
| Wednesday, Dec. 19 | |
Jabil results beat estimates, shares jump (4:22 pm ET)SAN FRANCISCO (MarketWatch) - Jabil Circuit (JBL: news, chart, profile) on Wednesday reported a fiscal first-quarter profit of $105.8 million, or 51 cents a share, compared with a profit of $112.9 million, or 54 cents a share for the year-earlier period. Revenue was $4.64 billion, up from $4.33 billion. Adjusted profit was 61 cents a share. Analysts polled by FactSet on average were expecting a profit of 56 cents a share, on revenue of $4.41 billion. Shares of Jabil were up more than 6% in after-hours trading. | |
FedEx profit falls after superstorm Sandy (7:43 am ET)NEW YORK (MarketWatch) -- FedEx Corp. (FDX: news, chart, profile) said Wednesday its second-quarter profit fell 12% to $438 million, or $1.39 a share, from $497 million, or $1.57 a share, in the year-ago period. Superstorm Sandy knocked out 11 cents a share in profit due to reduced shipment volume and incremental operating costs. The Memphis package delivery firm's sales rose 5% to $11.1 billion. Wall Street analysts expected the company to earn $1.41 a share on sales of $10.84 billion, according to a survey by FactSet. FedEx expects third-quarter profit of $1.25 to $1.45 a share, compared to the analyst target of $1.45 a share. | |
| Tuesday, Dec. 18 | |
Oracle profit rises, results beat Street (4:13 pm ET)SAN FRANCISCO (MarketWatch) - Oracle Corp. (ORCL: news, chart, profile) on Tuesday reported a fiscal second-quarter profit of $2.58 billion, or 53 cents a share, compared with a profit of $2.19 billion, or 43 cents a share, for the year-earlier period. Revenue was $9.1 billion, up from $8.8 billion. Adjusted profit was 64 cents a share. Analysts polled by FactSet on average expect a profit of 61 cents a share on revenue of $9.01 billion. Oracle shares were up 2.7% in after-hours trading. | |
Oracle among tech gainers ahead of earnings (9:39 am ET)SAN FRANCISCO (MarketWatch) -- Tech stocks showed signs of life in early trading Tuesday, with gains from sector leaders such as Apple Inc. (AAPL: news, chart, profile) , Intel Corp. (INTC: news, chart, profile) , Microsoft Corp. (MSFT: news, chart, profile) and Amazon.com Inc. (AMZN: news, chart, profile) . Oracle Corp. (ORCL: news, chart, profile) shares were up 5 cents at $32.41 ahead of the business-software company's quarterly results, due after the market close. The Nasdaq Composite Index ($COMPQ: news, chart, profile) rose 6 points to 3,018. | |
| Friday, Dec. 14 | |
Adobe shares rise 5%; JMP raises rating on stock (10:55 am ET)SAN FRANCISCO (MarketWatch) -- Adobe Systems Inc. (ADBE: news, chart, profile) shares rose as much as 5%, to $38.10 Friday as JMP Securities analyst Patrick Walravens raised his rating on the software company to market outperform from market underperform, and set price target of $42 a share on the stock. Walravens said "the most painful part of the transition [to a cloud-based business] may be behind Adobe," and the company's stock could rise as a result. Late Thursday, Adobe reported quarterly results that exceeded Wall Street analysts forecasts. | |
| Thursday, Dec. 13 | |
VeriFone reports drop in fourth-quarter earnings (4:40 pm ET)SAN FRANCISCO (MarketWatch) -- VeriFone Systems Inc. (PAY: news, chart, profile) reported on Thursday a fiscal fourth-quarter profit of $27 million, or 24 cents a share, on $485.4 million in revenue, compared with earnings of $199 million, or $1.84 a share, on sales of $410.7 million, in the same period a year ago. Excluding one-time items, the provider of electronic-payment systems would have earned 76 cents a share and revenue of $489 million. Analysts surveyed by FactSet had forecast VeriFone to earn 76 cents a share on $496.7 million in sales. For its first quarter, VeriFone estimates it will earn 70 cents to 73 cents share, on sales in a range of $490 million to $500 million, excluding one-time items, while analysts had forecast a profit of 75 cents a share on $96.6 million in revenue. VeriFone's shares fell almost 7% in after-hours trading. | |
Adobe profit rises, results beat Street (4:11 pm ET)SAN FRANCISCO (MarketWatch) - Adobe Systems (ADBE: news, chart, profile) on Thursday reported a fiscal fourth-quarter profit of $222.33 million, or 44 cents a share, compared with a profit of $173.72 million, or 35 cents a share, for the year-earlier period. Revenue was $1.153 billion, up slightly from $1.152 billion. Adjusted profit was 61 cents a share. Analysts polled by FactSet on average were expecting a profit of 56 cents a share, on revenue of $1.1 billion. Shares of Adobe were up 1.8% in after-hours trading. | |
Ciena shares rise 5%, but results miss estimates (9:55 am ET)SAN FRANCISCO (MarketWatch) -- Ciena Corp. (CIEN: news, chart, profile) shares rose 5% Thursday, to $16.28, following the optical-networking company's fiscal fourth-quarter results. Before the market opened, Ciena reported a loss of $38.8 million, or 39 cents a share, on $465.5 million in revenue, compared with a loss of $22.3 million, or 23 cents a share, on sales of $455.5 million in the same period a year ago. Excluding one-time items, Ciena would have lost 7 cents a share. Wall Street analysts had forecast Ciena to lose 6 cents a share on $468.3 million in revenue. For its fiscal first quarter, Ciena estimates sales will be between $435 million and $460 million, while analysts had forecast revenue of almost $459 million. | |
| Tuesday, Dec. 11 | |
White House offer corporate tax overhaul: report (10:39 pm ET)SYDNEY (MarketWatch) -- The White House has told Republicans that it would include an overhaul of the corporate tax code as part of any budget deal, The Wall Street Journal reported late Tuesday, citing people familiar with the talks. The parties are in talks over billions of dollars of automatic tax hikes and spending cuts due to kick in early next year. According to the report, big gaps remain between Democrats and Republicans negotiating over the budget. | |
| Friday, Dec. 7 | |
AIG pegs its Hurricane Sandy loss at $1.3B (4:36 pm ET)SAN FRANCISCO (MarketWatch) -- Insurer AIG (AIG: news, chart, profile) is forecasting a preliminary after-tax loss of $1.3 billion in the fourth quarter related to superstorm Sandy. AIG said the estimate reflects a pre-tax loss estimate, net of reinsurance, totaling approximately $2 billion. AIG shares closed Friday at $34.13. The stock is up 47% year-to-date. | |
Smith & Wesson down on demand worries (11:15 am ET)CHICAGO (MarketWatch) -- Shares of Smith & Wesson Holdings fell Friday, declining about 6% on worries over slowing demand. While the firearms maker posted robust increases in second-quarter profit, a decline in its backlog raised a red flag with at least one analyst. "We note that the company's order backlog is now $333 million, down sequentially from $392 million last quarter and $439 million two quarters ago," wrote Rommel Dionisio of Wedbush. "While still high on a historical basis, this appears to indicate dealers who place such orders do not expect the now year-long industry demand surge to last that much longer." Smith & Wesson (SWHC: news, chart, profile) was down 57 cents at $10.28. | |
Palo Alto Network's shares down following results (10:00 am ET)SAN FRANCISCO (MarketWatch) -- Shares of Palo Alto Networks (PANW: news, chart, profile) fell more than 3% to $49.56 on Friday morning. Late Thursday, the maker of enterprise network software reported a 50% jump in revenue for its first fiscal quarter, with the results slightly beating Wall Street's expectations. It's forecast was in line with Street estimates. In a note to clients on Friday, Daniel Ives of FBR Capital maintained a market perform rating and $58 price target on the stock, praising the "impressive top-line growth" but adding that the in-line forecast creates "a dynamic we believe will disappoint investors who were hoping for a stronger 'beat and raise' quarter given the company's premium valuation and stellar track record." | |
Gun maker Smith & Wesson draws higher profit view (7:24 am ET)NEW YORK (MarketWatch) -- Analyst Reed Anderson of Northland Capital Markets on Friday increased his profit target for Smith & Wesson Holding Corp. (SWHC: news, chart, profile) after the gun maker's second-quarter earnings came in at the upper end of the company's forecast. Sales rose 48% to $136.6 million. The company's M&P line of polymer pistols and modern sporting rifles continue to drive sales, he said. Backlong remains strong at $332.7 million at the end of the quarter, up 122% from last year. Anderson reiterated his outperform rating and raised his fiscal 2013 earnings estimate to $1.04 a share from 94 cents a share, and increased his price target on the stock to $18 a share from $17. The company, "continues to benefit from positive trends in firearm demand and should continue to take share as a result," Anderson said. Smith & Wesson shares rose 2.6% to close at $10.85 a share on Thursday. | |
| Thursday, Dec. 6 | |
Palo Alto Networks swings to quarterly loss (4:27 pm ET)SAN FRANCISCO (MarketWatch) -- Palo Alto Networks Inc. (PANW: news, chart, profile) , on Thursday, reported a fiscal first-quarter loss of $3.5 million, or 5 cents a share, on revenue of $85.9 million, compared with a profit of $4.1 million, or breakeven on a per-share basis, on $57.1 million in sales in the same period a year ago. Excluding one-time items, the network-security technology company would have earned $2.9 million, or 4 cents a share. Analysts surveyed by FactSet had forecast Palo Alto Networks to earn 3 cents a share, on $83.7 million in revenue. The company didn't immediately give a second-quarter forecast, while analysts have estimated Palo Alto Networks will earn 4 cents a share, on $90.8 million in revenue. Palo Alto Networks' shares fell 5.5% in after-hours trading. | |
Lululemon Athletica profit rises 48% (7:35 am ET)NEW YORK (MarketWatch) -- Lululemon Athletica Inc. (LULU: news, chart, profile) (CA:LLL: news, chart, profile) said Thursday its third-quarter profit rose to $57.3 million, or 39 cents a share, from $38.8 million, or 27 cents a share, in the year-ago period. Revenue at the apparel company increased 37% to $316.5 million from $230.2 million. Wall Street analysts expected the company to earn 37 cents a share on sales of $305.6 million, according to a survey by FactSet. Looking ahead, Lululemon expects fourth-quarter profit of 71 cents to 73 cents a share, compared to the analyst estimate of 75 cents a share. For 2013, Lululemon forecast earnings of $1.81 to $1.83 a share, compared to the estimate of $1.81 a share. | |
| Wednesday, Dec. 5 | |
Pandora, Netflix shares fall; tech stocks mixed (9:45 am ET)SAN FRANCISCO (MarketWatch) -- Big drops on shares of Pandora Media, Tibco Software and Netflix led a mixed morning for tech stocks early Wednesday, with the Nasdaq Composite (COMP: news, chart, profile) trading down slightly and the Philadelphia Semiconductor Index (SOX: news, chart, profile) up 0.2% following the opening bell. Pandora (P: news, chart, profile) shares tumbled more than 18% after the online radio provider provided a disappointing outlook for the current quarter. Netflix (NFLX: news, chart, profile) trimmed off more than 2% in early trades following a jump of 14% in the previous session after the company announced a content deal with the Walt Disney Co. (DIS: news, chart, profile) . Tibco Software (TIBX: news, chart, profile) slid more than 19% following its own earnings warning, along with a downgrade from Bank of America/Merrill Lynch. | |
| Tuesday, Dec. 4 | |
Pandora forecast misses targets; shares tumble (4:37 pm ET)SAN FRANCISO (MarketWatch) - Pandora Media Inc. (P: news, chart, profile) on Tuesday reported a fiscal third-quarter profit of $2.05 million, or a penny a share, on revenue of $120 million, compared with earnings of $638,000, or break-even on a per-share basis, on sales of $75 million in the same period a year ago. Excluding one-time items, Pandora would have earned 5 cents a share. Analysts surveyed by FactSet had forecast the Internet radio company to earn a penny a share on $117.1 million in revenue. Pandora's shares fell as much as 22% in after-hours trading as the company forecast a fourth-quarter loss, excluding one-time items, of between 6 cents and 9 cents a share, on revenue between $120 million and $123 million. Analysts had forecast Pandora to earn a penny a share on sales of $130.2 million for the fourth quarter. | |
Pandora, Dell among gainers as tech stocks rise (9:46 am ET)SAN FRANCISCO (MarketWatch) -- Tech stocks were on the rise in early trading Tuesday, with gains from the likes of Pandora Media Inc. (P: news, chart, profile) . Pandora shares rose 1.3% to $9.08 in advance of the Internet radio company's quarterly results, due after the market close. Also gaining ground were Dell Inc. (DELL: news, chart, profile) , Hewlett-Packard Co. (HPQ: news, chart, profile) and Yahoo Inc. (YHOO: news, chart, profile) . The Nasdaq Composite Index ($COMPQ: news, chart, profile) was down by almost 3 points, at 2,999, with Apple Inc. (AAPL: news, chart, profile) , the Nasdaq's biggest component, off by 1% at $579.59 a share. | |
Darden falls 9% in premarket after profit view (8:46 am ET)NEW YORK (MarketWatch) -- Darden Restaurants Inc. (DRI: news, chart, profile) shares fell 9% in premarket trades on Tuesday after it said it expects adjusted second-quarter profit of 25 to 26 cents a share. The Orlando, Fla., operator of Olive Garden and Red Lobster eateries was expected to earn 46 cents a share, according to a survey by FactSet. Darden said it'll book about 5 cents a share in second-quarter acquisition costs related to its purchase of Yard House, USA Inc. Superstorm Sandy also impacted its second-quarter results by about a penny a share. For fiscal 2013, Darden expects adjusted earnings of $3.29 to $3.49 a share, which includes 10 cents a share in closing costs. Analysts estimated 2013 earnings of $3.87 a share for Darden. | |
PSEG sees Sandy, Nor'easter cost of up to $300 mln (8:27 am ET)NEW YORK (MarketWatch) -- Public Service Enterprise Group Inc. (PEG: news, chart, profile) said Tuesday costs associated with superstorm Sandy and a subsequent Nor'easter totaled $250 million to $300 million. Sandy left 1.7 million of its electric customers wihtout power, "and caused severe damage to our transmission and distribution system," the company said. The power firm said it expects at least 85% of the costs to be deferred or capitalized for future distribution or transmission recovery. The Newark, N.J.-based electricity producer said it continues to expect operating earnings for 2012 of $2.25 to $2.50 a share. Wall Street analysts expect the company to earn $2.39 a share, according to a survey by FactSet. | |
Vail loss widens, sees challenges in coming season (7:54 am ET)NEW YORK (MarketWatch) -- Vail Resorts (MTN: news, chart, profile) said Tuesday its first-quarter loss widened to $60.6 million, or $1.70 a share, from $55.7 million, or $1.54 a share, in the year-ago period. The resort operator's sales remained about flat at $116.4 million. Wall Street analysts expected Vail to lose $1.58 a share on sales of $116.7 million, according to a survey by FactSet. Looking ahead, Vail said recent booking trends indicate "it will be more difficult...than we anticipated" to achieve its September estimate for 27% to 32% growth in reported earnings before interest, taxes, depreciation and amortization for its Resort unit. "We will know more about the season after the holidays and intend to address our fiscal 2013 guidance when we release our ski season metrics in mid-January," the company said. | |
Toll Brothers profits, revenues rise (7:28 am ET)NEW YORK (MarketWatch) -- Homebuilder Toll Brothers Inc. (TOL: news, chart, profile) on Tuesday reported fiscal fourth-quarter profit of $411 million, or $2.35 a share, compared to $15 million, or 9 cents a share a year ago. The latest quarter's results include a net tax benefit of $350.7 million, the company said. Revenues for the quarter were $632.8 million, compared to $427.8 million a year ago. Analysts polled by FactSet Research had expected the company to earn 25 cents a share on revenue of $565.1 million. | |
| Monday, Dec. 3 | |
Equifax buying CSC credit unit for $1 bln in cash (8:22 am ET)NEW YORK (MarketWatch) -- Equifax Inc. (EFX: news, chart, profile) said Monday it'll buy CSC Credit Services Inc., a subsidiary of Computer Sciences Corp. (CSC: news, chart, profile) , for $1 billion in cash. The closing of the transaction is expected by year-end. The acquisition is expected to add to Equifax's adjusted earnings by about 45 cents to 50 cents a share in 2013. Additional investment in growth initiatives and infrastructure will partially offset adjusted earnings by about 10 cents a share. Computer Sciences said it'll use proceeds from the sale to buy back stock, make pension contributions and for general corporate purposes. |
