Applied Materials forecasts stronger-than-expected growth (5:16 PM ET) SAN FRANCISCO (AFX) -- Applied Materials Inc. , the world's largest chip-equipment maker, late Tuesday forecast quarterly financial targets that exceed current Wall Street expectations. It also said electronics makers will invest more on machines in 2007 as new factories that make consumer electronic goods start up production. In a conference call, Applied Materials Chief Financial Officer Nancy Handel pegged sales in the range of $2.36 billion to $2.475 billion and earnings per share between 28 cents and 30 cents. That compares with the consensus estimate of analysts polled by Thomson First Call, who estimate Applied Materials will chalk up sales of $2.33 billion and earnings of 27 cents a share.
LTX swings to a quarterly profit as rev more than doubles (4:44 PM ET) SAN FRANCISCO (AFX) -- Shares of LTX Corp. were up 19% at $6.92 in after-hours trade Tuesday. After the closing bell, the Westwood, Mass.-based semiconductor component maker reported fiscal third-quarter net earnings of $8.14 million, or 13 cents a share. In the same period last year, the company reported a net loss of $45.7 million, or 75 cents a share, including restructuring and asset impairment charges of $28.6 million, or 47 cents a share. Revenue in the quarter more than doubled, rising to $56.3 million from $25.5 million. Analysts polled by Thomson First Call had forecast a per-share profit of 9 cents on revenue of $52.7 million. The company expects a fiscal fourth-quarter profit of 22 cents to 24 cents a share on revenue of $68 million to $70 million. Analysts are looking for a per-share profit of 11 cents on revenue of $57.1 million.
NetEase.com reports higher first-quarter profit (4:37 PM ET) SAN FRANCISCO (AFX) -- Beijing-based NetEase.com Inc. late Tuesday reported a first-quarter profit that nearly doubled from last year. Net income at the online video game provider came in at $36.6 million, or 26 cents a share, compared to 13 cents a share, for last year. Excluding certain items, NetEase earnings more than doubled to $39.9 million, or 28 cents a share. Analysts were expecting a profit of 24 cents a share, according to an everage of estimates from Thomson First Call. Revenue for the quarter rose more than 60% to $66.1 million, the company said. Analysts were expecting sales of $61.7 million. NetEase shares finished the day up 4.4% to $23.
Photronics quarterly income falls (4:36 PM ET) SAN FRANCISCO (AFX) -- Photronics Inc. after Tuesday's closing bell said second-quarter net income was $5.27 million, or 12 cents a share, down from $10.6 million, or 28 cents a share, during the same period in the prior year. Analysts polled by Thomson First Call had expected a per-share result of 21 cents. The imaging technology company said quarterly revenue was $119.5 million, up from $112.9 million. Analysts were looking for revenue of $116 million.
Compuware profit more than doubles on gains, revenue eases (4:25 PM ET) LOS ANGELES (AFX) -- Compuware Corp. late Tuesday said its fiscal fourth-quarter profit more than doubled as a legal settlement and higher interest income more than offset a 2.9% decline in revenue. The company also booked fewer operating expenses. Compuware said its profit rose to $56.4 million, or 15 cents a share, from $26.7 million, or 7 cents a share, a year earlier. Revenue eased to $309.5 million from $318.8 million. On average, Wall Street analysts expected the make of testing, development and management software for computer networks would report a profit of 13 cents a share on revenue of $313.1 million, according to Thomson First Call.
Applied Materials net income up 35% as sales, orders rise (4:22 PM ET) SAN FRANCISCO (AFX) -- Applied Materials Inc. , the world's largest maker of chip equipment, late Tuesday reported its fiscal second-quarter profit rose to $413 million, or 26 cents a share, up from net income of $305 million, or 18 cents a share, in the year ago period. Sales rose 21% to $2.25 billion. New orders surged 60% to $2.49 billion in the quarter ended April 30. Applied Materials, based in Santa Clara, Calif., makes equipment used to manufacture chips that power personal computers and portable consumer electronic gadgets.
Wilsons the Leather Experts quarterly loss widens (4:22 PM ET) SAN FRANCISCO (AFX) -- Wilsons the Leather Experts Inc. after Tuesday's closing bell reported a first-quarter net loss of $6.5 million, or 17 cents a share, vs. a net loss of $3.79 million, or 10 cents a share, in the year-ago period. Revenue at the Minneapolis-based company fell 11% to $74.7 million from $84.3 million, and same-store sales fell 10.8% from last year.
Abercrombie & Fitch income jumps; sales rise (4:16 PM ET) LOS ANGELES (AFX) -- Abercrombie & Fitch Co. said Tuesday that first-quarter net income jumped to $56.2 million, or 62 cents a share, compared with $40.4 million, or 45 cents a share, for the same period a year ago. Sales for the New Albany, Ohio-based clothier were $657.3 million vs. last year's $546.8 million. The company said new accounting rules negatively impacted earnings by 4 cents a share. Analysts polled by Thomson First Call expected the company to earn 54 cents a share. Abercrombie & Fitch officials said they now expect earnings of $1.28 to $1.33 a share for the first half of fiscal 2006, including an 8-cent charge for new accounting rules, up from previous forecasts of $1.23 to $1.28 a share. Shares were down $1.13, or 1.8%, to $60.25 at the end of trading Tuesday.
Hewlett-Packard reports $1.46 billion profit (4:06 PM ET) SAN FRANCISCO (AFX) -- Hewlett-Packard Co. on Tuesday reported a second-quarter profit of $1.46 billion, or 51 cents a share, on revenue of $22.6 billion. During the year-ago period, H-P earned $966 million, or 33 cents a share, on $21.6 billion in revenue. Excluding charges and one-time items, the computing and printing giant earned $1.6 billion, or 54 cents a share, to beat the estimates of analysts surveyed by Thomson First Call, who forecast a profit of 49 cents a share on $22.6 billion in revenue.
OSI Systems surges after topping Wall St. 1Q profit view (12:24 PM ET) NEW YORK (AFX) -- Shares of OSI Systems Inc. leapt almost 12% to $20.20 on Tuesday after the Hawthorne, Calif., maker of security and inspection systems reported third-quarter earnings of $1 million, or 6 cents a share, up from a year-ago loss of $2.9 million, or 18 cents a share. The latest results included $1.5 million, or 9 cents a share, in stock option expensing. Revenue rose 15% in the latest three months to $108.1 million from $94.2 million in the same period a year earlier. The performance bested the average estimate of analysts polled by Thomson First Call for a profit of 3 cents a share in the March period. The company, which also makes medical monitoring and anesthesia delivery products, also reiterated its outlook for revenue of $231 million to $236 million in the second half of fiscal 2006.
Medifast shares rise; co. lifts FY06 earnings view (12:18 PM ET) NEW YORK (AFX) -- Shares of Medifast Inc. gained 14% to $15.10 on Tuesday. After Monday's closing bell, the Owings Mills, Md., weight loss products company reported first-quarter earnings of $1.7 million, or 13 cents a share, up from a year-ago profit of $507,000, or 4 cents a share. Revenue jumped 130% in the three months ended March 31 to $19.2 million from $8.3 million in the same period a year earlier. Medifast also lifted its outlook for the year to earnings of 38 to 40 cents a share on revenue of between $66 million to $68 million. Its previous view was for a profit of 29 to 32 cents a share in 2006 on revenue ranging from $58 million to $60 million.
Camtek shares get lift; co. swings to 1Q profit as revs soar (12:08 PM ET) NEW YORK (AFX) -- Camtek Ltd. shares jumped almost 12% to $7.26 on Tuesday after the Israeli maker of automatic optical inspection systems swung to a profit in the first quarter as revenue soared 172%. The company posted earnings of $4.4 million, or 16 cents a share, on revenue of $24.9 million for the three months ended March 31. In the same period a year earlier, Camtek lost $2.4 million, or 9 cents a share, on revenue of $9.1 million. The company also reiterated its outlook for revenue of $26 million to $29 million for the second quarter, and said it now expects revenue for the year to exceed its earlier estimate and rise to between $100 million and $110 million.
Amtech Systems down; earnings hurt by weak gross margins (11:46 AM ET) NEW YORK (AFX) -- Shares of Amtech Systems slumped almost 20% to $6.70 on Tuesday after the Tempe, Ariz., maker of chip capital equipment posted lower earnings due to weakness in gross margins resulting from an unfavorable product mix. For the three months ended March 31, Amtech reported earnings of $182,000, or 5 cents a share, down from a year-ago profit of $503 million, or 18 cents a share. Amtech also saw an increase in deferred profit of $300,000 related to a major multifurnace system order to Asia, and said stock option expensing was $100,000 in the quarter.
Sirva tops NYSE percentage decliners list (11:46 AM ET) NEW YORK (AFX) -- Shares of Sirva Inc. dropped almost 24% to $6.56 on Tuesday. After Monday's closing bell, the Chicago provider of global relocation services posted a preliminary loss of $111.5 million, or $1.51 a share, for the nine months ended Sept. 30, down from a year-ago profit of $21.1 million, or 28 cents a share. Sirva also said it believes it's in compliance with the financial covenants of its credit agreements, but that it plans to seek amendments to the agreements to provide additional flexibility due to the potential variability of its forecasted performance. The company also said its review of its results revealed an understatement of $41.4 million of goodwill and intangible assets as of Dec. 31, 2004. It plans to restate results to rectify the discrepancy. In addition, Sirva discovered an error in its accounting for amortization expenses for the years from 2000 to 2004 and it plans to restate results to correct the error as soon as possible. The company also forecast pro forma EBITDA (earnings before interest, taxes, depreciation and amortization) of $42 million to $47 million for 2005, and EBITDA of $75 million to $95 million for 2006. The stock was the top percentage decliner on the New York Stock Exchange in midday action.
Compuware shares ease ahead of financial results (11:37 AM ET) LOS ANGELES (AFX) -- Compuware Corp.'s shares eased Tuesday ahead of the corporate software maker's quarterly financial results, expected after the close of trading. In late morning trade, shares gave up 6 cents, or 0.8%, to $7.28. On average, analysts expect the company's fiscal fourth-quarter profit to climb to 13 cents a share from 7 cents a year ago, according to a Thomson First Call survey that included estimates from three analysts. Revenue is expected to ease 1.8% to $313.1 million from $318.8 million, based on the average estimate of five brokerages.
Viisage shares surge; co. beat own loss view (11:36 AM ET) NEW YORK (AFX) -- Shares of Viisage Technology Inc. rallied almost 9% to $16.15 on Tuesday. After Monday's closing bell, the Billerica, Mass., developer of identity technology products posted a loss of $2.2 million, or 7 cents a share, on revenue of $23.4 million for the first quarter. The performance bested the company's own outlook for a loss of 10 to 14 cents a share on revenue of between $20 million to $22 million for the three months ended March 31. Viisage also said its planned merger with Identix is moving forward and that it anticipates closing in either late June or early in the third quarter. Identix shares were up nearly 15% to $7.32.
Lazard Capital: BEA Systems a 'buy' ahead of results (11:06 AM ET) LOS ANGELES (AFX) -- Corporate software maker BEA Systems Inc. is likely to hand investors a 'solid' set of quarterly results and is a buy ahead of the financial report, said analyst John Rizzuto of Lazard Capital Markets on Tuesday. BEA reports results on Wednesday and Rizzuto expects the firm to post 'modest upside' to his estimates. Following a recent sell off, 'the current price seems an attractive entry point,' he said. His price target for the stock is $16. A 'better business environment combined with BEA's solid execution will likely lead to increasing EPS and revenue forecasts,' he told clients.
Home Depot sales hurt by weather, flooring (10:24 AM ET) NEW YORK (AFX) -- Home Depot Inc.'s Chief Executive Bob Nardelli said Tuesday he was disappointed with first-quarter retail sales, and cited unfavorable weather and weak flooring sales for the miss. On a conference call with analysts, the company said it has been offering higher-priced merchandise, particularly appliances. Home Depot said was not pricing itself out of the market and had an 'infinite capacity' to drive average receipts higher. The company reaffirmed its sales and earnings growth targets for the year and through 2010.
NYMex net income jumps 171% (9:50 AM ET) NEW YORK (AFX) -- The New York Mercantile Exchange late Monday said net income rose 171% to %33.6 million from $12.4 million in the year-ago period. The NYMex said revenue jumped 57% to $114.2 million. Daily average contracts traded rose to 1.08 million in the first quarter, up 39.1%. The NYMex is not yet publicly traded, but it's moving toward an initial public offering in the future.
Carnival Corp. falls 7% on earnings view (9:46 AM ET) NEW YORK (AFX) -- Carnival Corp. shares fell nearly 7% to $43.50 Tuesday after the company reduced its earnings target on weakness in bookings, higher fuel costs, currency exchange rates, and a change in accounting. Earnings for fiscal 2006 are now expected to be in the range of $2.65 to $2.75 per share, roughly in line with 2005 earnings of $2.70 per share. Wall Street had expected earnings of $2.93 a share, according to the average forecast in a survey of analysts by Thomson First Call.
Wachovia's Thompson sees Golden West benefit (9:23 AM ET) NEW YORK (AFX) -- Wachovia Corp. expects to slash its overhead efficiency and create revenue gains following its purchase of Golden West Financial Corp. , Chief Executive Ken Thompson told investors Tuesday. The Charlotte, N.C.-based bank is expecting at least $230 million in revenue gains from branch operations in 2009, Thompson told investors and analysts gathered at the UBS Global Financial Services Conference. The bank also hopes to trim overhead efficiency to between 52% and 55% by 2007, Thompson said. Shares of Wachovia closed up 4 cents to $54.71 on Monday.
BJ's sets second quarter, full-year earnings targets (9:04 AM ET) NEW YORK (AFX) -- BJ's Wholesale Club Inc. said Tuesday that second-quarter earnings are seen at 43 cents to 47 cents a share. Fiscal 2006 earnings are targeted at $1.88 to $1.95 a share. Analysts' average estimates stand at 45 cents and $1.87 a share, respectively. Second-quarter sales are forecast to grow 8% to 9%, while same-store sales are expected to gain 3% to 5%, the Natick, Mass., warehouse club retailer said.
Cato sees 2Q earns 34-37c a share (8:49 AM ET) NEW YORK (AFX) -- Cato Corp. Tuesday reported first-quarter earnings of $20.8 million, or 65 cents a share, up from a year-ago profit of $18.4 million, or 58 cents a share. Sales rose 7% in the latest three months to $229.7 million from $215.1 million in the same period a year earlier. Same-store sales increased 2% in the quarter. The average estimate of analysts polled by Thomson First Call was for a profit of 64 cents a share in the April period. Looking ahead, the Charlotte, N.C., women's fashion apparel retailer forecast earnings of 34 to 37 cents a share for the second quarter and $1.57 to $1.63 a share for the year. Wall Street's current consensus estimates are for profits of 38 cents a share and $1.57 a share, respectively. The stock closed Monday at $22.47.
TJX Cos. 1Q earns $163.8M vs $135.6M (8:44 AM ET) NEW YORK (AFX) -- TJX Cos. Tuesday reported first-quarter earnings of $163.8 million, or 34 cents a share, up from a year-ago profit of $135.6 million, or 28 cents a share. The latest results included a pre-tax charge of $7 million, or a penny per share, from a workforce reduction. Sales rose 7% in the latest three months to $3.9 billion from $3.65 billion in the same period a year earlier. Same-store sales edged 1% higher for the quarter. The average estimate of analysts polled by Thomson First Call was for a profit of 33 cents a share in the April period. The Framingham, Mass., off-price retailer said merchandise margins were stronger than expected for the quarter while expenses were below plan. Looking ahead, TJX sees earnings of 24 to 26 cents a share for the second quarter with same-store sales growth projected at around 3%. For the full year, the company sees earnings of $1.42 to $1.46 a share with same-store sales growth projected between 2% and 3%. Wall Street's current consensus estimates are for earnings of 27 cents a share in the July quarter and $1.48 a share for the full year. The stock closed Monday at $23.88, up 1.9%.
Deere net income, sales rise (8:40 AM ET) NEW YORK (AFX) - Deere & Co. said Tuesday its second-quarter net income rose to $744.6 million, or $3.13 a share, from $604 million, or $2.43 a share in the same period a year earlier. The Moline, Ill., farm, construction and forestry equipment maker said revenue in the three months ended April 30 rose 2% to $6.56 billion from $6.44 billion. Analysts polled by Thomson First Call forecast earnings, on average, of $2.30 a share and sales of $6.36 billion. Deere forecast third-quarter net income at $400 million to $425 million and 2006 net income at $1.7 billion.
Federated lifts earnings view on favorable tax settlement (8:22 AM ET) NEW YORK (AFX) -- Federated Department Stores Tuesday lifted its outlook for the second quarter and full year to reflect a favorable tax settlement. The Cincinnati department store operator said the settlement with the Internal Revenue Service will result in a cash refund of $158 million of prior years taxes with interest, adding 33 cents per share to its earnings outlook. The settlement involves losses related to the disposition of Fingerhut on Federated's tax returns for the years 2000, 2001 and 2002. Federated now sees earnings of 78 to 88 cents a share for the second quarter, and $3.83 and $4.08 a share for the year, adjusting for the tax settlement but still excluding merger integration and inventory valuation costs and a gain on the sale of credit receivables. The stock closed Monday at $74.79, down 6 cents.
Lee Enterprises ad revenue up 4.9% in April (8:16 AM ET) NEW YORK (AFX) -- Lee Enterprises Inc. said same-property advertising revenue in April increased 4.9% over a year ago. The rise reflects improved sales and an additional Sunday this year, the Davenport, Iowa company said.
Saks 1Q earns $81.5M vs $16.2M (8:13 AM ET) NEW YORK (AFX) -- Saks Inc. Tuesday reported first-quarter earnings of $81.5 million, or 60 cents a share, up from a year-ago profit of $16.2 million, or 11 cents a share. The latest results include a net after-tax gain of $70.3 million, or 52 cents a share, primarily related to the sale of its SDSG Northern Department Store Group assets, among other items. The year-ago performance includes a net after-tax gain of $1.4 million, or a penny a share, mainly from the sale of assets related to certain Saks Fifth Avenue Enterprises stores. Sales fell in the latest three months to $1.04 billion from $1.55 billion in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 9 cents a share in the April period. Looking ahead, the Birmingham, Ala., department store operator reiterated an expectation for net capital spending of between $175 million and $200 million in 2006. The stock closed Monday at $16.47, down 2%.
EV Energy Partners files $94 million (8:01 AM ET) NEW YORK (AFX) -- EV Energy Partners L.P. filed late Monday to sell 3.9 million units in an initial public offering with maximum proceeds of $94 million. EV Energy Partners is a limited partnership recently formed by EnerVest Management Partners, Ltd. A.G. Edwards and Raymond James are underwriters of the IPO. The partnership plans to trade on the Nasdaq under the symbol 'EVEP'. EnerVest Management Partners, Ltd. bills itself as one of the largest managers of oil and gas assets for institutional investors.
American Eagle sees 2Q earns 39-41c a share (7:49 AM ET) NEW YORK (AFX) -- American Eagle Outfitters Inc. Tuesday reported first-quarter earnings of $64.2 million, or 42 cents a share, up from a year-ago profit of $55.3 million, or 35 cents a share. The latest results included 2 cents a share in stock option expensing. Total sales rose 14% in the latest three months to $522.4 million from $456.5 million in the same period a year earlier. Same-store sales increased 9% in the quarter. The average estimate of analysts polled by Thomson First Call was for a profit of 41 cents a share in the April period. Looking ahead, the Warrendale, Pa., casual apparel retailer forecast earnings of 39 to 41 cents a share for the second quarter, including stock option expensing of a penny per share. Wall Street's current consensus estimate is for a profit of 38 cents a share in the July quarter. The stock closed Monday at $33.35, up 2.1%.
Weekly retail sales rise 4.2% from year-ago (7:45 AM ET) NEW YORK (AFX) -- Weekly retail chain store sales rose 4.2% compared to the year-ago period, as Mother's Day spending offset bad weather and higher fuel prices, according to a survey by the International Council of Shopping Centers and UBS Securities LLC. On a week-over-week basis, sales were flat, the survey showed. For May, the ICSC expects monthly chain store sales to rise 3.5%.
Dick's Sporting Goods 1Q earns $11.4M as sales rise 13% (7:43 AM ET) NEW YORK (AFX) -- Dick's Sporting Goods Inc. reported first-quarter earnings of $11.4 million, or 21 cents a share, up from a year-ago pro forma profit of $8.8 million, or 16 cents a share. The year-ago pro forma results reflect 6 cents a share for stock option expensing as if the company expensed stock options then and excludes merger integration and store closing costs. Sales rose 13% in the latest three months to $645.5 million from $570.8 million in the same period a year earlier. Same-store sales increased 6.5% in the quarter. The Pittsburgh-based specialty retailer forecast earnings of 15 to 17 cents a share in the quarter in early March. The average estimate of analysts polled by Thomson First Call was for a profit of 17 cents a share in the April period. Looking ahead, Dick's lifted its outlook for 2006 to earnings of $1.81 to $1.85 a share from $1.77 to $1.81 a share. This view includes stock option expensing of 27 cents a share. Wall Street's current consensus estimate is for a profit of $1.81 a share for the year. The company expects earnings of 43 to 44 cents a share for the second quarter, including 7 cents a share in stock option expensing. It anticipates an increase in same-store sales of 3% for the year and 3% to 4% for the second quarter. The stock closed Monday at $42.20, down 39 cents.
Nortel Networks sees high single digit rev growth for FY06 (7:26 AM ET) NEW YORK (AFX) -- Nortel Networks said Tuesday it sees high single digit revenue growth for 2006 with gross margins of around 40%. The Canadian communications equipment giant anticipates operating expenses to be flat to up slightly for the year with foreign exchange and growth-related costs offsetting productivity and efficiencies. Nortel expects revenue for the first quarter to be flat to down slightly with its loss for the period coming in slightly higher than its year-ago performance. The stock closed Monday at $2.58, down 2.3%.
Fossil profit falls (7:23 AM ET) NEW YORK (AFX) -- Watch maker Fossil Inc. on Tuesday said first-quarter net income fell to $9.7 million, or 14 cents a share, from $23.9 million, or 32 cents a share. Net income in the year-ago period included a $10 million tax benefit. Net sales rose to $264.2 million from $232.5 million. Analysts, on average, were expecting the company to post a profit of 12 cents a share on revenue of $244.9 million, according to Thomson First Call. The company said sales in its domestic business remain challenging, but its international business showed improvement. Fossil forecast second-quarter profit of 12 cents a share, including 1 cent related to expensing stock options. For the year it expects to earn about $1.07 a share, inclusive of about 4 cents a share negative impact from the implementation of accounting for stock options, as well as a 6 cents a share benefit from a lower share count as a result of stock repurchases. The target reflects a slightly stronger U.S. dollar in comparison to the current spot rate of other foreign currencies, primarily the Euro and Pound.
CORRECT: BJ's Wholesale net falls, sales rise (7:21 AM ET) BJ's Wholesale net falls, sales rise
NEW YORK (AFX) -- BJ's Wholesale Club Inc. said Tuesday that first-quarter income fell to $15.4 million, or 23 cents a share, from $18.6 million, or 27 cents, a year ago. Excluding items, the Natick, Mass., warehouse club retailer would have reported earnings of 24 cents a share. Revenue for the three months ended April 29 increased to $1.92 billion from $1.81 billion, while same-store sales, or sales from clubs open at least a year, gained 2%. Analysts polled by Thomson First Call, on average, expected BJ's to post earnings of 19 cents a share on sales of $1.92 billion. (Updates to report revenue figures; corrects same-store sales gain.)
Staples 1Q earns $186.1M vs $147.7M (7:13 AM ET) NEW YORK (AFX) -- Staples Inc. Tuesday reported first-quarter earnings of $186.1 million, or 25 cents a share, up from a year-ago profit of $147.7 million, or 20 cents a share. Total company sales rose 9% in the three months ended April 29 to $4.24 billion from $3.9 billion in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 23 cents a share in the April period. The Framingham, Mass., office products retailer said North American Retail same-store sales edged 1% higher as a weaker performance in furniture and technology offset positive customer traffic and strong comps in core supplies categories and copy and print services. Looking ahead, Staples expects earnings per share growth of between 15% and 20% for the second quarter with total company sales growth projected in the low double-digits. For the full year, the company anticipates earnings per share at the high end of its range for growth of 15% to 20%. The stock closed Monday at $26.42, down 19 cents.
Liberty Global to buy back $500M in stock (7:13 AM ET) NEW YORK (AFX) -- Liberty Global Inc. said it'll buy back 10 million class A shares at $25 a share and 10.3 million Series C shares for $24.30 a share in a program valued at about $500 million. The tender offer prices represent a premium of approximately 10.8% over the closing prices of the Series A and Series C common stock on the Nasdaq on Monday.
Jack in the Box profit climbs 5%, ups guidance (7:02 AM ET) LONDON (AFX) -- San Diego, Calif.-based fast-food restaurant chain Jack in the Box Inc. lifted its fiscal year earnings guidance alongside a 5% increase in April 16-ending second quarter earnings. Its profit rose to $21.8 million, or 61 cents a share, with revenue up 9% to $626 million. The company said it beat Thomson First Call-compiled analyst forecasts for earnings of 58 cents a share due to a higher restaurant operating margin, a 4% Jack in the Box same-store sales increase at the high end of forecast and slightly lower stock option expenses. For the year, it now sees earnings between $2.60 and $2.63 a share, vs. an earlier view of $2.57 to $2.60, and said third-quarter earnings should range between 65 and 67 cents.
Wal-Mart Stores profit climbs 6%, tops forecast (6:27 AM ET) LONDON (AFX) -- Wal-Mart Stores said first-quarter net income rose 6.3% to $2.615 billion, or 63 cents a share, with revenue up 12.2% to $80.47 billion. Analysts polled by Thomson First Call were expecting earnings of 61 cents a share on revenue of $80.43 billion. The Bentonville, Ark.-based retailer said its inventory performance was the best it's seen in many quarters. The world's largest retailer expects a 2% to 4% U.S. same-store sales rise in the second quarter, and earnings between 70 cents and 74 cents a share. It continues to see fiscal year earnings between $2.88 and $2.95 a share.
United Retail Group profit jumps 93% (4:44 AM ET) LONDON (AFX) -- United Retail Group said first-quarter net income rose 93% to 1.9 million, or 14 cents a share, with sales up 2.7% to $109 million. Comparable store sales rose 3% during the quarter, the Rochelle Park, N.J.-based large-sized women's apparel retailer said.
Macquarie Bank profit up 13% in 2005 (4:07 AM ET) HONG KONG (AFX) -- Australia's Macquarie Bank reported Tuesday that net profit increased 13% in 2005 to $698 million, marking a 14th consecutive year of record profit. It also declared a second-half dividend of 95 cents per share. The bank's largest gains were in Asia, where its income rose 94%. Assets under management increased by 45% to $107 billion.
Compass net profit slips 9.7% as costs rise (2:54 AM ET) LONDON (AFX) -- U.K. catering company Compass Group said Tuesday that net profit attributable to shareholders for the six months to March 31 fell 9.7% to 140 million pounds ($264 million), or 6.5 pence a share. Revenue for the period rose 10.8% to 5.7 billion pounds. The caterer is recovering from a string of profit warnings in 2005 and the suspension of one division as a United Nations supplier after indirect links to bribery. Compass said revenue growth was driven by new contract wins, particularly in the sport and leisure field, but the company was hit by higher operating costs, which rose 11.7% to 5.44 billion pounds. Compass also said it will buy back 500 million pounds of shares in the next 12 to 18 months and raised its interim dividend by 3% to 3.4 pence a share.
BAA fiscal 2006 net profit drops after charges (2:44 AM ET) LONDON (AFX) -- British airport operator BAA , which is currently fighting off an 8.75 billion pound bid from Spain's Ferrovial, said that its fiscal 2006 net profit dropped 21% to 531 million pounds, or 46.9 pence a share, after taking a 39 million net exceptional charge. Revenue rose 9% to 2.3 billion pounds. Underlying operating profit rose to 710 million pounds, from 657 million pounds a year ago. Passenger growth translated into stronger underlying operating profit, after the company drove retail income forward, controlled costs and increased tariffs at its three London airports, it said. BAA also forecasted a 3.5% rise in passenger numbers for 2006 and is confident that it can convert this growth into a year of good financial performance.
Endesa profit climbs 88% on Chilean tax cut, stake sale (2:41 AM ET) LONDON (AFX) -- Endesa , the Spanish electricity provider that's the subject of bids from Gas Natural and E.On, said first-quarter net profit jumped 88% to 1.05 billion euros. Its profit was driven by Latin America operations, which benefited from a reduction of taxes in Chile, and by the sale of its stake in Grupo Auna.
Xstrata to buy copper mine from BHP Billiton for $750M (2:33 AM ET) LONDON (AFX) -- Mining company Xstrata Plc has agreed to buy peer BHP Billiton Plc's Tintaya copper mine in Peru for $750 million. The acquisition price comprises $634 million in cash and $116 million of debt. Xstrata will also make a deferred payment based on copper prices, likely to be around $60 million, and possibly other payments if copper prices reach certain levels. The deal is expected to complete within two months. The deal, which also includes two undeveloped copper deposits, will increase Xstrata's annual copper production by 120,000 tonnes.
Enterprise Inns edges pasts forecasts with 12.5% profit rise (2:30 AM ET) LONDON (AFX) -- U.K. pubs operator Enterprise Inns said first half ending March 31 pre-tax profit before items rose 12.5% to 153 million pounds ($289 million), edging ahead of consensus forecasts, with average operating profit per pub up 5.4%. Revenue inched up 0.6% to 473 million pounds, while its interim dividend was hiked 61% to 9p a share. The company said it's too early to draw conclusions from a smoking ban that went into effect at the end of March in Scotland, though overall beer volumes and gaming machine income are marginally down compared to English and Welsch pubs.
InterContinental profit up 4% on Americas room rate rises (2:24 AM ET) LONDON (AFX) -- InterContinental Hotels said first-quarter profit rose 4% to 51 million pounds ($96 million), with revenue down 55% to 239 million pounds on the impact of the sale of hotels in Europe. Continuing operating profit rose 40% to 42 million pounds, with group revenue per available room at constant exchange rates up 11.6%, driven by growth in the Americas on rate increases. Analysts polled by AFX News were looking The company said the outlook for the rest of the year is positive. In the Americas, InterContinental, Holiday Inn and Candlewood brands each outperformed their market segments, the company said.
EADS net income rises 26% as Airbus sales climb (2:23 AM ET) LONDON (AFX) -- European defense company and Airbus parent EADS said Tuesday that first-quarter net income rose 26% to 516 million euros ($664 million), or 0.65 euros a share as revenue climbed 30% to 9.1 billion euros. Pretax profit rose 19% to 780 million euros, at the top end of the range of 629 million euros to 800 million euros forecast by analysts polled by AFX News. Revenue at Airbus grew 28% to 6.36 billion euros, thanks to a rise in aircraft deliveries to 101 from 87. EADS reconfirmed its 2006 forecast for revenue to exceed 37 billion euros and pretax profit to be in the range of 3.2 billion euros to 3.4 billion euros. This story was supplied by MarketWatch. For further information see www.marketwatch.com.