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ADM, Black & Decker, Flagstar, Stanley Works, Teva, UBS
By MarketWatch
Last Update: 7:45 AM ET Nov 3, 2009
TEL AVIV (MarketWatch) -- Stocks expected to move significantly in trading on Tuesday include AmerisourceBergen, Anadarko, ADM, Avis Budget, Black & Decker, Continental Airlines, Flagstar Bancorp, Ford, Hecla Mining, Marvel, Medco, Stanley Works, Teva, UBS and Viacom.
American Tower Corp. AMT its third-quarter profit rose to $67.6 million, or 17 cents a share, from $60.6 million, or 15 cents a share a year ago. Revenues climbed to $444.1 million, from $409.3 million. Analysts polled by FactSet Research had expected the company to earn 17 cents a share.
AmerisourceBergen Corp. ABCfourth-quarter net income rose 13% to $130 million, or 44 cents a share, from $115 million, or 37 cents a share in the year-ago period. Wall Street analysts expected earnings of 40 cents a share and revenue of $18.1 billion, according to a survey of analysts by FactSet Research. Revenue increased 9% to $18.7 billion. Operating income rose 11% to $224.6 million. AmerisourceBergen Corp. said it expects 2010 operating income of $1.82 to $1.92 a share, compared to the Wall Street expectation of $1.83 a share.
Anadarko Petroleum Corp. APC reported its third-quarter net income fell to $200 million, or 40 cents a share, from $2.16 billion, or $4.58 a share, in the year-earlier period. Excluding one-time items, the company posted a loss of $51 million, or 11 cents a share. Revenue fell to $2.74 billion from $6.15 billion.
Archer Daniels Midland Co. ADM fiscal first-quarter earnings fell to $496 million, or 77 cents a share, from $1 billion, or $1.62 a share, in the year-ago period. Revenue fell 29% to $14.9 billion.
ASML Holding ASML was upgraded to buy from hold on Tuesday at Nomura, which cited evidence of a firm capital expenditure outlook and noted a recent stock-price correction. The investment bank predicted possible strong flash orders at the start of next year, which it said could trigger a string of consensus upgrades. The Dutch semiconductor-equipment group trades at a discount to the overall market, on a price-to-earnings basis excluding cash, said Nomura.
Avis Budget Group Inc. CAR swung to third-quarter profit of $57 million, or 54 cents a share, from a loss of $1.01 billion, or $9.91 a share, in the year-ago period. Excluding one-time items, the company earned 65 cents a share.
Axis Capital Holdings AXS reported a third-quarter net loss available to common-share holders of $96 million, or 70 cents a share, versus a net loss of $249 million, or $1.79, in the year-earlier period. Operating profit, which excludes net realized investment gains and losses, was $152 million, or $1 a share, in the latest period, Axis said.
Black & Decker Corp.: BDK Stanley Works SWK on Monday announced a $4.5 billion deal to acquire Black & Decker in a bid to create a more powerful tool giant that would be poised to capitalize on a housing rebound. Stanley will swap 1.275 shares for each BDK share. Read the MarketWatch account.
Cameron International CAM third-quarter net income fell 23% to $124.9 million, or 56 cents a share, from $163 million, or 71 cents a share in the year-ago period. The latest period included a pretax charge of 2 cents a share. Excluding the charge, earnings were 58 cents a share. Revenue dropped 18% to $1.23 billion. Wall Street analysts expected earnings of 51 cents a share and revenue of $1.28 billion, according to a survey by FactSet Research. Cameron said it expects 2009 earnings of $2.26 to $2.30 a share. Wall Street analysts expect year-end earnings of $2.22 a share.
Chesapeake Energy Corp. CHK reported its third-quarter net income fell to $186 million, or 30 cents a share, from $3.29 billion, or $5.62 a share, a year earlier. Excluding one-time items, the company earned $440 million, or 70 cents a share, in the latest quarter, down from $495 million, or 87 cents a share, a year ago. Revenue fell to $1.81 billion from $7.49 billion.
Cisco Systems, CSCO the San Jose, Calif., telecom-equipment giant, definitively agreed to pay as much as $44.5 million for the set-top business of DVN Holdings Ltd. of Shanghai. DVN is a provider of digital cable solutions in China.
Continental Airlines Inc., CAL the Houston carrier, reported that for October, its consolidated load factor -- the percentage of seats filled with paying passengers -- widened to 82.5% from 79% in October 2008. Traffic rose 1.7% to 7.3 billion revenue passenger miles. Revenue per available seat mile in the month declined 14% to 15% from a year earlier, Continental estimated.
Dana Holding Corp. DAN reported a third-quarter net loss of $46 million, or 45 cents a share, narrower than the $264 million, or $2.66 a share, in the year-earlier period. The Maumee, Ohio, auto-parts supplier's sales were $1.33 billion, down 31% from $1.93 billion. Analysts had been estimating a loss of 5 cents a share, according to FactSet. Third-quarter gross margin widened to 6.2% from 2.5% a year earlier, reflecting cost-cutting efforts and higher pricing. "We remain on target to achieve our 2009 objectives for cost reductions, pricing improvements, and cash generation," said Jim Sweetnam, president and chief executive.
Emerson EMR fiscal fourth-quarter net income dropped 26% to $506 million, or 67 cents a share, as sales fell 21% to $5.32 billion. Analysts polled by FactSet had expected a profit of 60 cents a share on sales of $5.38 billion. It announced a 1.5% increase in the dividend to 33.5 cents a share, payable on Dec. 10 to holders of record on Nov. 13. Underlying sales, which strips out currency swings and asset sales, are expected to drop 5% to 7% in fiscal 2010 with a flat to slightly down operating-profit margin.
Equifax Inc., EFX the Atlanta provider of credit information and related services, acquired closely held Rapid Reporting Verification Co., the Fort Worth, Texas, provider of Internal Revenue Service tax transcript information and Social-Security-number-authentication services, for $72.5 million cash.
Flagstar Bancorp Inc., FBC the $14.8-billion-asset Troy, Mich., bank-holding company, reported a third-quarter net loss of 64 cents a share, said its chairman retired, and said it would "better align expenses with revenues."
Ford Motor Co. F will be raising about $3 billion in fresh funds as part of its effort to improve its balance sheet. The steps include securing $2 billion through issuance of senior convertible notes and $1 billion through sales of common shares to "certain broker/dealers" in private placements. The automaker is also seeking to extend the maturity of its revolving credit facility to 2013 from 2011. Separately, Ford said that two senior executives focused on Asia-Pacific and Africa would retire.
Forest Laboratories Inc., FRX the New York drugmaker, and Ironwood Pharmaceuticals Inc., the closely held Cambridge, Mass., drugmaker, reported progress with linaclotide, which they are assessing as a treatment for chronic constipation. Two Phase III clinical trials found that the drug achieved statistical significance for the primary endpoint of 12-week complete spontaneous bowel movement.
Frontier Communications FTR third-quarter earnings were $52 million, or 17 cents a share, compared to $47 million, or 15 cents a share, in the same period a year ago. Revenue fell to $527 million compared to $558 million, down 6%. Analysts polled by FactSet Research estimated, on average, earnings per share of 15 cents and sales of $531 million.
Hanover Insurance Group THG swung to a third-quarter profit of $49.7 million, or 97 cents a share. In the year-earlier period, Hanover had a $61.8 million loss due to investment losses and two hurricanes. The company said its net premiums written rose 5.7% to $688.8 million for the quarter.
Hecla Mining Co., HL the Coeur d'Alene, Idaho, silver-and-gold miner, swung to a third-quarter profit of 9 cents a share from a year-earlier loss of 5 cents. Shares outstanding rose 79% to 244.3 million. Sales rose 39% to $95.2 million. The company expects to meet its estimate of full-year production of 10.5 million to 11 million ounces of silver. The company revised down its estimate of cash cost per ounce of silver to $2.25.
Marvel Entertainment Inc. MVL third-quarter earnings fell to $20.4 million, or 26 cents a share, from $50.6 million, or 64 cents a share, in the same period a year ago. The company, which owns popular comic-book icons such as Spider-Man, Iron Man and X-Men, reported that sales declined to $106 million from $182 million. Marvel also said that it still expects its deal to be acquired by Walt Disney Co. DIS to close this year.
Medco Health Solutions MHS third-quarter net income rose to $335.6 million, or 69 cents a share, from $296.7 million, or 58 cents a share, a year ago. On an adjusted basis, earnings per share totaled 75 cents. Analysts had been expecting earnings of 71 cents a share, according to FactSet. Revenue increased to $14.8 billion from $12.6 billion a year ago, reflecting contributions from significant new client wins, as well as price inflation on brand-name drugs. Medco raised and narrowed its full-year 2009 earnings per share guidance to a range of $2.58 to $2.60, from a previous range of $2.54 to $2.59. For 2010, Medco expects EPS in a range of $3.05 to $3.15.
Nokia-Siemens: NOKSI The telecom-equipment producer plans to cut 7% to 9% of its 64,000-member workforce to reduce annual operating expenses by around 500 million euros a year by the end of 2011.
Novartis NVS is investing $1 billion over five years for research and development in China, and it has invested $250 million in a new global technical center that's opening in Changshu, focused on technical research, development and manufacturing activities of active pharmaceutical ingredients.
Principal Financial PFG reported its third-quarter net income available to common-share holders rose to $184.7 million, or 57 cents a share, from $90.1 million, or 35 cents a share. Operating earnings, which exclude net realized investment gains and losses, were $238.7 million, or 74 cents a share.
Republic Services RSG reported a third-quarter profit of $120.5 million, or 32 cents a share, compared with $88.7 million, or 48 cents a share, in the year-earlier period. Excluding one-time items, earnings would have come in at $149.3 million, or 39 cents a share. Revenue rose to $2.07 billion from $834 million.
Synchronoss Technologies Inc. SNCR said earnings for the third quarter jumped 34% thanks to an increase in business from wireless carriers and cable providers.
Teva Pharmaceutical Industries Ltd., TEVA the Jerusalem drugmaker, reported that third-quarter net income rose 2.9%, with 25% higher sales driven by its flagship drug, Copaxone, and by its ProAir albuterol inhaler. Read the MarketWatch article.
UBS UBS swung to a 564 million Swiss franc ($552 million) third-quarter loss. The bank took 2.15 billion francs in charges as the value of UBS's own debt improved; and it posted losses on the sale of UBS Pactual and on the Swiss government's conversion of mandatory convertible notes. A better performance in the investment bank's fixed-income, currencies and commodities business helped it to an underlying pretax profit of 1.56 billion francs. Read the MarketWatch report.
Viacom Inc. VIAVIA.B third-quarter profit rose to $463 million, or 76 cents a share, from $401 million, or 65 cents, a year earlier. Revenue declined to $3.32 billion from $3.41 billion. Excluding items, the company said it would have earned 69 cents a share. Analysts, on average, estimated the media company to earn 56 cents a share on revenue of $3.28 billion, according to FactSet.
Vulcan Materials Co., VMC the Birmingham, Ala., producer of construction aggregates, reported third-quarter net income fell to 43 cents a share from 53 cents in the year-earlier quarter. Earnings from continuing operations were 38 cents in the latest quarter. Revenue fell 23% to $778.2 million. A survey of analysts by FactSet Research produced consensus estimates of 37 cents of profit on sales of $801.9 million.
Westlake Chemical Corp. WLK third-quarter net income rose 8.8% to $29.8 million, or 45 cents a share, from $27.4 million, or 42 cents a share, a year earlier. Revenue fell 41% to $632.6 million, but its cost of sales declined faster, shrinking 44% to $560 million. The group said its earnings also benefited by around 4 cents a share from a lower effective tax rate. Analysts polled by FactSet had expected earnings of 20 cents a share.
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