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Earnings Analysis: 
Boston Scientific Net Up
Author: George Shopov
123jump.com



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Medical device maker Boston Scientific reported that its fourth-quarter profit surged 30%, bolstered by strong sales in Europe and other overseas markets, which offset the drop in the US sales.

 
Boston Scientific Corporation (BSX: chart) said before market open Monday that its quarterly earnings jumped 30% on higher sales of stents in Europe and other overseas markets. The medical device maker announced net income of $137 million, or 16 cents a share, for its fiscal 2003 fourth quarter, in contrast to $105 million, or 12 cents a share, generated in the year-ago period. Excluding items, earnings were $141 million, or 17 cents a share, up from $130 million, or 15 cents a share, a year ago, and a penny above the mean estimate of analysts. For the quarter ended December 31, the company said sales increased 15% to $939 million from $814 million, last year. US sales were down 3.6% to $482 million, while international sales surged 46% to $457 million. For the full year, Natick, Massachusetts-based Boston Scientific reported net income of $472 million, or 56 cents a share, a 27% rise from $373 million, or 45 cents a share, in fiscal 2002.

The stock gained 21 cents to $41.00 at market close Monday.

Gannett Co., Inc. (GCI: chart), the U.S. largest newspaper publisher, reported before the bell Monday fourth-quarter net profit of $358 million, or $1.31 a share, up 3% from $347 million, or $1.29 a share, in the same period a year earlier. The McLean, Virginia-based company said quarterly revenue climbed 6% to $1.82 billion from $1.73 billion, last year. Gannett attributed the results to stronger newspaper advertising.

Gannett shares closed Monday at $85.95, up 24 cents, or 0.28%.

AFLAC Incorporated (AFL: chart) announced Monday that its quarterly earnings tumbled 61%, citing investment losses in fallen Italian food group Parmalat. The Columbus, Georgia-based supplementary health insurer posted fourth-quarter net profit of $73 million, or 14 cents per share, compared with a net profit of $186 million, or 35 cents per share, in the 2002 comparable period. AFLAC’s investment losses reached $175 million, or 34 cents a share, against $4 million, or 1 cent a share, a year ago.

The stock rose 2.52% on Monday to $37.81. AFLAC shares added $1.19 to $39.00 in after-market trade.

First Albany Companies Inc. (FACT: chart) of Albany, New York, posted Monday fourth-quarter net income from continuing operations of $3.0 million, or 23 cents per share, compared with net income of $4.5 million, or 47 cents per share, for the corresponding period of 2002. The financial services company said lower incentive fees in the asset management group affected the results. Net revenues from continuing operations were up to $55.2 million from $45.6 million, a year earlier.

Company shares shed 21 cents to close Monday at $15.25.

Humana Inc. (HUM: chart) said Monday it swung to a quarterly profit from a prior-year loss as the company raised premiums to cover increasing costs. The Louisville, Kentucky-based health insurer reported a fourth-quarter profit of $66.3 million, or 41 cents per share, reversing from a loss of $1.7 million, or 1 cent per share, in the 2002 equivalent. Results topped by a penny analysts’ projections.

The stock slipped 1.59% on Monday to $22.96.

Pitney Bowes Inc. (PBI: chart) of Stamford, Connecticut, reported Monday fourth-quarter net earnings of $146.8 million, or 62 cents per share, in contrast to a profit of $56.2 million, or 24 cents per share, for the fourth quarter of 2002. The postage equipment manufacturer said revenue climbed to $1.21 billion from $1.16 billion, last year. The company said strength in its business mailing products boosted the results.

Company shares closed Monday up 26 cents, or 0.64%, at $40.84.

International Paper Company (IP: chart) announced Monday that it returned to profit in its fourth quarter, helped by cost cutting efforts and higher prices of its products. The Stamford, Connecticut-based world’s No.1 forest products company said it earned $48 million, or 10 cents per share, in the fourth quarter, rebounding from a net loss of $130 million, or 27 cents per share, in the year-earlier period. Excluding items, profit came in at 23 cents per share, 5 cents ahead of the average analysts estimate.

The stock edged up 24 cents to $42.51 at market close Monday.

Atari, Inc. (ATAR: chart), the New York-based video game maker, posted Monday lower third-quarter net earnings of $23 million, or 19 cents per share, compared with net earnings of $30.1 million, or 43 cents per share, last year. Atari cited weak sales of its key games as main factor for the profit drop. On average, analysts had forecast a profit of 18 cents a share.

Atari shares dived 3.55% on Monday to $3.26. The stock gained 5 cents to $3.31 in after-hours trading.

Agilysys, Inc. (AGYS: chart) said Monday its quarterly earnings increased, boosted by strong demand. The Mayfield Heights, Ohio-based distributor of computer systems to businesses reported a net profit of $8.7 million, or 28 cents a share, for its fiscal 2004 third quarter, up from $1.9 million, or 7 cents a share, in the same quarter last year. Sales jumped 22% to $459.4 million, aided by the company’s acquisition of the Kyrus Corp.

The stock inched up 13 cents to close Monday at $13.23. Company shares added a penny in after-market trade.

ON Semiconductor Corporation (ONNN: chart) of Phoenix, Arizona, reported Monday a wider fourth-quarter net loss of $45.3 million, or 21 cents a share, compared with a year-ago net loss of $41.8 million, or 24 cents a share, hurt by charges. The chipmaker recorded revenue of $278.6 million, in the quarter, up from $268.5 million last year.

Company shares soared 6.43% on Monday to $7.45. The stock dropped 14 cents to $7.31in after-hours trading.
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