Updates, advisories and surprises
8/2/12 5:01 PM ET (MarketWatch)
Sunoco swings to profit
(4:41 PM ET) SAN FRANCISCO (MarketWatch) -- Sunoco Inc.(SUN) , citing a one-time gain and improved results from its fuel distribution, retail and refining businesses, reported late Thursday a second-quarter profit of $248 million, or $2.35 a share, reversing a year-ago loss of $125 million, or $1.03 a share. Revenue for the quarter rose to $12,23 billion from $11.32 billion. Adjusted to exclude one-time items, the company posted a profit of $129 million, or $1.22 cents a share, for the three months ended June 30.
Analysts polled by FactSet Research, who cite adjusted earnings, had expected the Philadelphia-based company to report earnings of 51 cents a share. Sunoco shares are up 46% from where they were trading 12 months ago.
Zipcar's second-quarter loss narrows, shares slide
(4:28 PM ET) SAN FRANCISCO (MarketWatch) -- Zipcar Inc.(ZIP) late Thursday reported its second-quarter loss narrowed to $422,000, or a penny a share, from a loss of $5.6 million, or 17 cents a share, in the year-earlier quarter. Revenue rose to $70.8 million from $61.6 million. Analysts surveyed by FactSet had projected the company to break even on revenue of $73.1 million. The car-sharing service company said it expects to post anywhere from a loss of $500,000 to earnings of $2 million in 2012 while revenue is likely to range between $272 million to $278 million. Shares of Zipcar slumped 6% in after hours in light volume.
Activision Blizzard earnings drop almost 45%
(4:23 PM ET) SAN FRANCISCO (MarketWatch) -- Activision Blizzard Inc.(ATVI) on Thursday reported earnings of $185 million, or 16 cents a share, on $1.08 billion in revenue, compared with earnings of $335 million, or 29 cents a share, on sales of $1.15 billion in the same period a year ago. Excluding one-time items, the videogame publisher would have earned 20 cents a share on $1.05 billion in revenue. By that measure, analysts surveyed by FactSet Research had forecast Activision to earn 12 cents a share on $836.3 million in revenue. For its fiscal third-quarter, Activision forecast earnings, excluding one-time items, of 7 cents a share on $690 million in revenue, while analysts had earliest forecast a profit of 12 cents a share on sales of $730 million for the quarter.
Kraft profit up 5%, sets Oct. 1 split
(4:23 PM ET) SAN FRANCISCO (MarketWatch) -- Kraft Foods(KFT) , which Thursday set Oct. 1 as the date it will split its snacks and grocery units, reported second-quarter profit rose 5% from the same 2011 period. However, revenue fell short of Wall Street's expectations. The world's No. 2 food company earned $1 billion, or 55 cents a share, compared with $976 million, or 55 cents a share, in the year-ago period. Revenue fell 4% to $13.3 billion due to currency headwinds. Analysts had estimated $13.96 billion, according to FactSet. On an adjusted basis, Kraft said it earned 68 cents, topping expectations of 66 cents a share. Gross margin rose to 36.7% from 35.1%. Kraft backed its 2012 financial outlook. Kraft shares, trading near a decade-high, are up 14% over the last 12 months. The stock closed Thursday at $38.94.
CBS second-quarter profit climbs 8%
(4:17 PM ET) SAN FRANCISCO (MarketWatch) - CBS Corp.(CBS) reported late Thursday a second-quarter profit of $427 million, or 65 cents a share, up from $395 million, or 58 cents a share, in the year-ago period. The company said that strong financial results were supported by its digital streaming agreement, growth in subcription fees, and fewer outstanding shares due to its share repurchase program. Revenue for the quarter slipped 3% to $3.48 billion. Analysts polled by FactSet had predicted the media conglomerate would earn 59 cents a share. Class B shares of New York-based CBS are down 22% this year so far.
AIG shares up on 28% higher profit
(4:16 PM ET) SAN FRANCISCO (MarketWatch) -- American International Group, Inc.(AIG) reported after the close Thursday a second-quarter profit of $2.3 billion, or $1.33 a share, up from $1.8 billion, or $1.00 a share, a year ago. Analysts polled by FactSet had expected the New York-based insurance group to earn 58 cents per share. In after-hours trade, the stock climbed 1.2% to $31.20 a share. Ahead of the report, share price was up almost 33% since January and up 11% over the past 12 months.
SEC charges Bristol executive with insider trading
(12:43 PM ET) WASHINGTON (MarketWatch) - The Securities and Exchange Commission on Thursday charged an executive at pharmaceutical giant Bristol-Myers Squibb(BMY) with insider trading on confidential information about companies being targeted for acquisition. The SEC alleges that Robert Ramnarine, an executive in the treasury department at Bristol-Myers Squibb, made more than $300,000 in illegal profits by "misusing nonpublic information" he obtained while helping Bristol-Myers Squibb evaluate whether to acquire three other pharmaceutical companies. The SEC is seeking a court order to freeze Ramnarine's brokerage account assets. In a parallel criminal action, the U.S. Attorney's Office for the District of New Jersey announced the arrest of Ramnarine today, the SEC said.
Aveo sinks 27% after FDA update, earnings
(11:56 AM ET) BOSTON (MarketWatch) -- Shares of Aveo Pharmaceuticals(AVEO) sank 27% to $9.76 midday Thursday following news that the submission of its application for U.S. regulatory approval of its drug tivozanib may be delayed. According to Aveo, the U.S. Food and Drug Administration has expressed concerns over certain data in a clinical trial for the product. In order to address these concerns, Aveo plans to submit additional analyses of the data, which may delay submission of the application into the fourth quarter of 2012. In related news, Aveo also reported its second-quarter earnings. The biotech group said it lost 68 cents a share versus 16 cents a share for the same period in 2011. The company reaffirmed that it has enough cash and marketable securities to fund operations into the second half of 2013.
SurModics shares soar on earnings, higher outlook
(11:08 AM ET) LOS ANGELES (MarketWatch) -- Shares of SurModics Inc.(SRDX) soared by more than 12% Thursday after the medical products company beat analyst estimates on its third-quarter earnings, and raised both its revenue and income outlook for the year. SurModics said net income was $3.06 million, or 17 cents a share, down from the $3.84 million, or 22 cents a share, reported a year ago. Sales were $14 million against last year's $13 million. Adjusted earnings of 18 cents a share were ahead of the 14-cent forecast from analysts polled by FactSet. The company also raised its full-year revenue estimate to a range of $51 million to $52 million from $47 million to $51 million. The earnings outlook was raised to a range of 56 cents to 59 cents a share, up from 45 to 53 cents a share.
Canada stocks sink, Enbridge profit tumbles 96%
(10:31 AM ET) SAN FRANCISCO (MarketWatch) -- Canadian stocks tumbled after the European Central Bank president fell short of investor expectations, with the S&P/TSX composite index(CA:$ISPTX) falling 45 points, or 0.4%, 11,573. A 0.6% decline in utilities stocks(XX:TTUT) led percentage losers, while on the upside, metals and mining equites(XX:TTMN) added 2%. On the earnings front, energy producer Enbridge Inc.(CA:ENB) reported a 96% lower second-quarter profit, from a year ago. Gildan Activewear Inc. posted an 11% decline in its third-quarter profit, from a year ago, but a 14% climb in its adjusted net earnings. In currency trading, the greenback traded a little lower against its Canadian counterpart(USDCAD) , with one U.S. dollar purchasing C$1.0037 vs. C$1.0043 Wednesday.
Sealed Air shares tumble 14%
(10:26 AM ET) SAN FRANCISCO (MarketWatch) -- Sealed Air Corp.(SEE) saw its share price tumble Thursday, down over 15% to $13.23 a share, a 52-week low. The move made it the biggest decliner on the S&P 500
. The Elmwood Park, N.J.-based packaging company released earnings before the open reporting 20 cents earnings per share for the second-quarter, down from 40 cents a share compared with a year ago, and also cut their earnings forecast. Share prices have declined in 2012, down almost 22% since January and down over 34% in the last 12 months. The stock is currently trading at $13.61 a share.
First Solar shares pop 20% on strong results
(9:50 AM ET) SAN FRANCISCO (MarketWatch) -- First Solar Inc.(FSLR) shares surged as much as 20% to $17.83 at the open Thursday as investors reacted to the solar power company's surprisingly strong second-quarter earnings. After the close Wednesday, First Solar reported it earned $1.27 a share for the quarter, up from 70 cents a year ago, and raised its full-year earnings and revenue outlook. Analysts had expected the company to post earnings of 97 cents a share. The pop in First Solar's share price made it the top percentage gainer Thursday among stocks in the S&P 500 Index
GM 2nd-quarter net off 40%, revenue down 4.6%
(9:31 AM ET) NEW YORK (MarketWatch) - General Motors Co.,(GM) the Detroit auto maker, reported the second-quarter net income fell 40% on 4.6% lower revenue, with the revenue declined tied almost entirely to the U.S. dollar's strength against other currencies. In a Thursday statement, GM reported that it earned $1.5 billion, or 90 cents a share, compared with $2.5 billion, or $1.54, in the year-earlier period. Revenue slipped to $37.6 billion from $39.4 billion. A survey of analysts by FactSet Research produced consensus estimates for GM of 74 cents a share of profit on $38.42 billion of revenue. Results in North America, international and the GM Financial unit were "solid, but we clearly have more work to do to offset [headwinds,] especially in regions like Europe and South America," Chairman and Chief Executive Dan Akerson said in a statement.
Nordstrom same-store sales up 0.9% in July
(9:09 AM ET) BOSTON (MarketWatch) -- Nordstrom Inc.(JWN) said early Thursday that its July same-store sales rose 0.9% over those during the same period in 2011. Preliminary total sales for the clothing retailer increased 1.1% to $1 billion. Analysts polled by Thomson Reuters had expected July same-store sales to fall 2.7%.
Ross Stores same-store sales jumped 7% in July
(8:38 AM ET) BOSTON (MarketWatch) -- Ross Stores Inc.(ROSS) said early Thursday that its same-store sales jumped 7% in July over those of the same period in 2011. Total sales rose 12% to $709 million. A poll of analysts by Thomson Reuters estimated Ross same-store sales would rise 4.5%.
Macy's same-store sales rise 4.1% in July
(8:16 AM ET) BOSTON (MarketWatch) -- Macy's(M) said early Thursday that same-store sales rose 4.1% in July compared with those of the same period in 2011. Analysts polled by Thomson Reuters were expecting 3.2%. Total July sales for Macy's Increased 5.1% to $1.69 billion.
Abercrombie & Fitch shares decline premarket
(7:39 AM ET) NEW YORK (MarketWatch) -- Abercrombie & Fitch Co.(ANF) shares slumped 16% before the bell Thursday. After Wednesday trading closed, the New Albany, Ohio, retailer of clothing for teenagers estimated fiscal second-quarter earnings at 15 cents to 18 cents a share, compared with the 25-cent-a share consensus estimate of analysts surveyed by FactSet. Comparable-store sales in the quarter ended July 28 fell 10%, while gross-profit margin narrowed about 1 percentage point, the company reported. The same-store-sales estimate reflects declines of 5% in the U.S. and 26% internationally, A&F reported. For the year, A&F now expects to earn $2.50 to $2.75 a share. FactSet's survey is looking for $2.93.
Stage Stores July comparable sales up 5.3%
(6:56 AM ET) NEW YORK (MarketWatch) -- Stage Stores Inc.,(SSI) the Houston retailer, reported that for July, comparable-store sales rose 5.3% while total sales climbed 7.9% to $110 million from $102 million in July 2011. A survey of analysts by Thomson Reuters produced a consensus estimate of same-store sales up 2.2%.