Paychex quarterly profit rises 23%, revenue up 15% (4:16 PM ET) SAN FRANCISCO (AFX) -- Paychex Inc. after the closing bell on Tuesday reported fiscal third-quarter net earnings of $114.5 million, or 30 cents a share, up 23% from $92.8 million, or 24 cents a share, during the year-ago period. Revenue at the Rochester, N.Y.-based provider of payroll and human resources services rose 15% to $430.6 million from $373.9 million. Analysts polled by Thomson First Call had forecast third-quarter earnings of 31 cents a share on revenue of $426 million. Additionally, Paychex said it now expects fiscal 2006 revenue growth in the range of 14% to 16%, and net income growth of 24% to 26%. Analysts are currently looking for 2006 earnings of $1.21 a share on revenue of $1.66 billion.
Red Hat profit more than doubles, revenue jumps 37% (4:11 PM ET) LOS ANGELES (AFX) -- Red Hat Inc. late Tuesday said its fiscal fourth-quarter profit more than doubled as revenue shot up 37%. The results outpaced the average of estimates and topped Red Hat's own forecast. The company said it earned $27.3 million, or 13 cents a share, for the period, up from $11.8 million, or 6 cents a share, a year ago. Revenue for the period ended Feb. 28 rose to $78.7 million from $57.5 million. Wall Street analysts, on average, expected a profit of 12 cents a share on revenue of $78.3 million, according to a Thomson First Call survey. The company is the leading player on the market for the Linux open-source operating system, an alternative to proprietary operating systems from the likes of Microsoft Corp.
Tibco posts $5.6 million first-quarter profit (4:09 PM ET) SAN FRANCISCO (AFX) -- Tibco Software Inc. on Tuesday reported a first-quarter profit of $5.6 million, or 3 cents a share, on $114.6 million in revenue for the period ended March 5. During the year-ago period, the business-software developer earned $10.4 million, or 5 cents a share, on $104 million in revenue. Excluding stock-based compensation and other one-time items, Tibco earned $12.6 million, or 6 cents a share. By that standard, Tibco topped the estimates of analysts surveyed by Thomson First Call, who forecast a profit of 5 cents a share on $111 million in revenue.
Morgans Hotel says suit has 'little merit' (1:57 PM ET) NEW YORK (AFX) -- Morgans Hotel said a suit filed by Century Operating Associates is without merit. The complaint alleges breach of contract, breach of fiduciary duty and fraudulent conveyance of assets by Morgans, which 'sought to deprive Century of millions of dollars to which it was lawfully entitled.' Morgan said the real plaintiff interest in the case is Philip Pilevsky, who is already suing Morgans at The Shore Club in Miami and a predecessor company about another hotel. 'We expect that the new lawsuit has as little merit as the others,' Morgans said. A spokesperson from Century Operating Associates did not immediately return a phone call. Morgans shares fell 4.6% to $17.95 in recent action, the day after the suit was filed.
Retail shares open lower (10:09 AM ET) NEW YORK (AFX) -- Retail shares opened lower on Tuesday led by high-end department store operator Nordstrom Inc. , which was down almost 2% in morning trading. Tiffany & Co. shares also slipped after the jeweler posted lower fourth-quarter profits and forcast first quarter results below expectations. Earlier on Tuesday, a survey by the International Council of Shopping Centers and UBS Securities said that on a week-over-week basis, retail sales slipped 1.6%. The retail industry's main measure, the S&P retail index , down fractionally at 475.84.
Tiffany sees meaningful Asia-Pacific growth potential (9:15 AM ET) NEW YORK (AFX) -- Jeweler Tiffany & Co. on Tuesday said the Asia-Pacific region offers 'meaningful long-term growth potential,' including further development of its China business. The New York-based retailer said on its earnings webcast that it expects 2006 gross margin to be unchanged from 2005. In the fourth quarter and the year, U.S. retail sales growth was generated by increases in the average amount spent per transaction, Tiffany said. The numbers of transactions were about equal to the prior year and the traffic conversion rates were also equal to the prior year. There was growth in most price ranges, although the greatest percentage increases continued to be in sales and transactions above $50,000, the company said.
Sequenom plans $30M private placement; posts wider loss (8:45 AM ET) NEW YORK (AFX) -- Sequenom Inc. Tuesday said it's agreed to a $30 million private placement of common stock and warrants. The San Diego-based biotechnology company said it plans to issue 54.5 million common shares and 32.7 million common stock purchase warrants exercisable at 70 cents per share. The company received commitments for the placement from ComVest Investment Partners II LLC, Pequot Private Equity Fund IV, L.P., and an affiliate of Lehman Bros. Sequenom plans to use the proceeds of the placement for general working capital needs. In addition, Sequenom reported a fourth-quarter loss of $7 million, or 17 cents a share, wider than a year-ago loss of $6.6 million, or 16 cents a share.
G. Willi-Food pegs 1Q revenue growth at 'more than 25%' (7:16 AM ET) WASHINGTON (AFX) -- G. Willi-Food International Ltd. said it expects to generate first-quarter revenue growth of 'more than 25%' compared to the first three months of 2005. The Israel-based food importer is 'off to a strong start' in 2006, said Zvi Williger, president and chief operating officer. Quarterly results will be released in mid-May. U.S.-listed shares of G. Willi-Food lost 34 cents, or 6.3%, to end Monday's trading at $5.08.
Tiffany 4Q earns $140.3M vs $217M (7:14 AM ET) NEW YORK (AFX) -- Tiffany & Co. Tuesday reported fourth-quarter earnings of $140.3 million, or 97 cents a share, down from a year-ago profit of $217 million, or $1.48 a share. The year-ago results include a pre-tax gain of $194 million related to the sale of a stake in Aber Diamond Corp., a charge of $15 million from asset impairment and a contribution of $25 million to a company foundation. Sales rose 6% in the latest three months to $858.4 million from $810.1 million in the same period a year earlier. Worldwide same-store sales increased 6% in the January period. The average estimate of analysts polled by Thomson First Call was for a profit of 84 cents a share in the latest quarter. Looking ahead, the New York-based jeweler reiterated its outlook for earnings of $1.77 to $1.82 a share in fiscal 2006 with sales growth of about 10%. For the first quarter, Tiffany sees first-quarter earnings coming in equal to slightly higher than its profit of 27 cents a share in the year-ago period. The company said U.S. same-store sales have been modestly below last year in the first quarter. Wall Street's current consensus estimate is for earnings of 30 cents a share in the April period. The stock closed Monday at $38.51, down 1.3%.
Level 3 reiterates financial targets (7:10 AM ET) NWE YORK (AFX) -- Level 3 on Tuesday said it expects to meet or exceed its first-quarter estimates. The Broomfield, Colo. Internet backbone specialist reiterated its Feb. 7 targets ahead of an analyst meeting Tuesday in New York City. The company sees operating income before depreciation and amortization of $140-150 million in the first quarter.
Lexar Media sees 1Q net loss of $22M to $30M (6:38 AM ET) LONDON (AFX) -- Lexar Media Inc. , which makes NAND flash memory products used in digital cameras, said it expects to report a first-quarter loss of $22 million to $30 million on revenue of $100 million to $130 million. Earlier this month Lexar agreed to be acquired by Micron Technology Inc .
Lennar quarterly profit up as home sales, prices rise (6:18 AM ET) LONDON (AFX) -- Homebuilder Lennar Corp. said first-quarter net earnings rose 34% to $258.1 million, or $1.58 a share, as revenue rose 35% to $3.2 billion. Analysts polled by Thomson First Call were expecting earnings of $1.55 and revenue of $3.07 billion. Lennar said its revenue was boosted by an 18% increase in the number of home deliveries to 8,904, as well as a 12% increase in the average selling price to $326,000. The company also reaffirmed its 2006 earnings goal of $9.25 a share on the strength of a $7.1 billion order backlog. 'While there has been a slower sales pace in certain markets in which we operate and price appreciation in these markets has moderated relative to the appreciation experienced in the past few years, we were still able to achieve a 4% increase in new orders during the first quarter,' said CEO Stuart Miller. 'We are focused on maintaining a sales pace that supports our current and planned inventory levels, and we believe that our intense focus on asset management and our home building manufacturing process will set the foundation to achieve a more evenflow production of home deliveries.'
China's Bank of Communications says 2005 profit up six fold (6:13 AM ET) HONG KONG (AFX)-- China's Bank of Communications Co. said
Tuesday its 2005 net profit surged by nearly six times to 9.25 billion yuan (1.15 billion) from 1.60 billion yuan the previous year.
The Shanghai-based lender, which was listed in Hong Kong in June, said its net interest income last year rose to 31.59 billion yuan, while
income from fees and commissions increased to 2.11 billion yuan. The bank recommended a final dividend of 0.08 yuan per share.
The result was inline with expectations. Citigroup had forecast net profit of 9.36 billion yuan for 2005.
Swiss Life net profit jumps 44% (1:41 AM ET) LONDON (AFX) -- Pensions and life insurance company Swiss Life said Tuesday that 2005 net profit rose 44% to SFr874 million ($668 million), or SFr24.82 a share. Gross written premiums and policyholder deposits grew 0.2% to SFr20.2 billion. The company received an SFr24 million benefit from taxes and the results of associates in 2005, compared to charges of SFr334 million in 2004. Swiss life also said it plans to raise its dividend by 25% to SFr5 a share. The company also said its new chief investment officer will be Patrick Frost, who is currently head of global fixed income at the Winterthur Group. It also confirmed its objective for 2008 of generating a net profit of SFr1 billion.
Caterer Compass says performing in line with forecast (1:40 AM ET) LONDON (AFX) -- Compass Group said it will perform in line with expectations in the six months to March 31, on good levels of new business and contract retention. The sale of its travel concessions business, Select Service Partner, is in its final stages and remains on schedule for completion by mid-2006. Last week the firm, under investigation over alleged bribery on United Nations contracts and the issuer of three profit warnings last year, named Richard Cousins as its chief executive.
Bank of Ireland says underlying earnings to rise around 15% (1:28 AM ET) LONDON (AFX) -- The Bank of Ireland said underlying earnings per share for the year to March 31 rose by around 15%, helped by a strong performance in its wholesale division and 'excellent' retail and life performances in the Republic of Ireland. Income rose by around 7% and costs increased by around 3%. Fund outflows from BIAM continued, but at a slower pace, with funds under management at the year-end expected to be in the order of 45 billion euros compared to 44 billion euros at the end of September. Cost savings from its restructuring program are coming in ahead of target.
BAA trading in line w/ expectations, Heathrow's T5 on track (1:25 AM ET) LONDON (AFX) -- British Airport operator BAA Plc on Tuesday said trading for the year to March 31 was in line expectations. The group said its nine airports handled 145.1 million passengers, up 3.1%, in the eleven months to the end of February. It predicted annual growth of 2% at its U.K. airports. BAA added it expects operating costs, driven by higher staff costs, energy prices and business rates, to rise 8% for the year. Finally BAA said that the construction of London Heathrow's Terminal 5 is on budget and on schedule to open on March 30, 2008.
Emap group revenue rises 8% (1:20 AM ET) LONDON (AFX) -- Magazine publishing group Emap Ltd. said Tuesday that total group revenue for the year ending March 31 rose 8%, while underlying revenue, which excludes acquisitions and disposals, was unchanged. The company, whose magazines include FHM and Grazia, said retail sales of its U.K. magazines rose 6%, increasing its market share to 18.5% from 17.7%. Total revenue from Emap's radio division rose 43% following recent acquisitions. Emap said it expects earnings, which will be announced on May 23, to be in line with forecasts and said trading conditions over the next year will remain difficult. This story was supplied by MarketWatch. For further information see www.marketwatch.com.