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Earnings Analysis: 
Bank of America Profit Meets Estimate
Author: Ivaylo Dagnev
123jump.com
Last Update: 10:16 AM EDT October 19 2005



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Bank of America Corp., financial services provider, reported that Q3 net income advanced 10%, compared with the same time last year, to $1.02 a share on revenue growth, matching analyst expectations.Yahoo delivered 17 cents profit vs. estimate of 14 cents on revenue growth of 47% and flat earnings compared to a year ago.

 
Bank of America Corp., (BAC: chart), announced that excluding pretax merger and restructuring charges of 2 cents per share, earnings would have been $1.04 per share. Bank of America announced that provisions for credit losses increased to $1.16 billion, up from $650 million a year ago, and that it also took $209 million in previously-reserved-for charge-offs connected with the domestic airline industry.

Yahoo Inc., (YHOO: chart), Internet company, reported Q3 net earnings of 17 cents per share, unchanged from last year’s net earnings in the comparable period on 47% revenue growth, beating analyst estimate of 14 cents a share. Yahoo would have earned 15 cents per share, but the company gained $16 million from the sale of another investment and an unusually low tax rate during the three-month period.

JPMorgan Chase & Co., (JPM: chart), financial services company, posted Q3 net income of 71 cents a share, 78% up from 39 cents a share in the same time a year ago on strong trading and investment banking fees, missing analyst estimate by a penny. Apart from $221 million of charges related to its merger last year with Bank One Corp., operating earnings amounted to 75 cents a share, the company announced.

Eastman Kodak, (EK: chart), imaging products manufacturer, posted a Q3 loss of $3.58 a share, down vs. earnings of $1.60 a share in the same period last year despite 5% revenue growth, as a 47% rise in digital revenue helped offset a 20% drop in traditional revenue The results incorporated a 1-cent a share gain from discontinued operations and a $3.13 a share charge related to deferred tax assets.

Knight Capital Group Inc., (NITE: chart), securities market-making and asset management company posted Q3 earnings of 23 cents a share, up from the previous year's loss of 1 cent a share on revenue growth, beating analysts’ forecasts of 13 cents a share. Apart from charges taken for costs related to excess real-estate capacity in Jersey City, the company announced it would have posted operating earnings from continuing operations of 26 cents a share.

Honeywell International, (HON: chart), industrial and aerospace conglomerate, reported that Q3 net income advanced to 55 cents a share, 26 % up from 43 cents a share in the year-earlier period on strong demand for aircraft parts and services, beating analysts’ expectations of 54 cents a share.

Office Depot, Inc., (ODP: chart), provider of office products and services, reported Q3 net loss of 15 cents per share, down from earnings of 28 cents per share in the same period a year ago despite 5 % sales growth. Q3 of 2005 results incorporate the effects of charges related to asset impairments, exit costs and other operating items previously announced. Apart from those charges, it would have earned 36 cents a share, beating analysts’ forecasts by a penny.

General Dynamics, (GD: chart), defense contractor, reported Q3 net income of $1.84 a share, up from $1.60 a share in the same period last year on sales growth, beating analysts’ forecasts of earnings of $1.76 a share.

Piper Jaffray, (PJC: chart), security brokerage firm, posted Q3 net income of 79 cents a share, up vs. 61 cents a share in the year-earlier period on 12% revenue growth, beating analysts’ forecasts of 43 cents a share.

Linens N' Things, (LIN: chart), home textiles retailer, posted Q3 earnings of 2 cents a share, down from a profit of38 cents a share in the same period last year on 3.8% sales decline, beating analyst estimate of a profit of a penny. Same-store sales fell 10.2% in the period.

Nuveen Investments Inc, (JNC: chart), asset manager, reported Q3 net income advanced 11.4% from the same period last year to 54 cents a share, topping analyst forecasts by a penny. The company announced total revenues of $158.3 million compared with $131.6 million last year.
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