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Earnings Analysis: 
CSK Auto Net Up, Sales Dip
Author: George Shopov
123jump.com



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CSK Auto Corporation said after market close Thursday that its quarterly earnings advanced 28% from last year, despite weaker sales, which were negatively impacted by cool weather and high gasoline prices.

 
CSK Auto Corporation (CAO: chart) announced after market close Thursday that its fiscal 2004 second-quarter income rose 28% from a year earlier, when results were weighed by costs related to debt retirement. The auto parts retailer reported net earnings of $13.9 million, or 30 cents per share, for the quarter ended August 1, up from prior-year net earnings of $10.8 million, or 24 cents per share. The results were a penny a share above the consensus analysts’ estimate. Excluding debt restructuring, CSK had a profit of $13.5 million, or 30 cents per share, in the second quarter a year ago. Phoenix, Arizona-based CSK recorded net sales of $409.1 million in the quarter, a 2.3% decline from $418.5 million, last year. Comparable-store sales in the 2004 second quarter dipped 2.5% from a year ago. The company attributed the drop in sales to higher gasoline prices and milder summer temperatures in many of its key markets.

CSK reduced its full-year profit outlook to a range of $1.13 to $1.22 per share, from a previous guidance of $1.44 to $1.48 per share.

CSK shares closed Thursday up 24 cents, or 2.08%, at $11.79.

Pall Corporation (PLL: chart) posted after the bell Thursday higher quarterly profits, aided by improved sales. The East Hills, New York-based maker of purification and filtration systems announced net income of $55.6 million, or 44 cents per share, for its fiscal fourth quarter, against net income of $54.6 million, or 44 cents per share, for the 2003 equivalent. Excluding items, profit came to 45 cents per share, falling short of the average analysts’ forecast of 48 cents per share. Quarterly sales climbed 7% to $504.5 million from $471.4 million, a year earlier, due to strong performance in its industrials business.

The stock edged up 16 cents on Thursday to $24.96.

Mandalay Resort Group (MBG: chart), the Las Vegas, Nevada-based casino operator, said Thursday that its second-quarter net profit jumped 38% to $58.2 million, or 85 cents per share, from $42.3 million, or 67 cents per share, a year ago. The company cited solid revenue growth, which rose to $713.8 million in the quarter from $644.8 million, as main factor for the improvement. However, the second-quarter earnings were below the mean analysts’ estimate of $1.02 per share, hurt by high health-care costs.

Company shares gained 13 cents to close Thursday at $67.85.

Del Monte Foods Company (DLM: chart) reported before the bell Thursday lower quarterly profits, blaming increased commodity costs. The U.S. biggest manufacturer of canned fruit and vegetables announced net income of $8.5 million, or 4 cents per share, for its fiscal 2005 first quarter ended August 1. For the 2004 comparable period, Del Monte earned $14.3 million, or 7 cents per share. Excluding integration costs, first-quarter earnings came to $17.1 million, or 6 cents per share, compared with $21.3 million, or 9 cents per share, last year. The results were in line with Wall Street’s expectations. San Francisco, California-based Del Monte said quarterly sales climbed to $626 million from $611.3 million, due primarily to higher prices. Analysts were looking for sales of $637 million.

Looking ahead, the company forecast second-quarter earnings of 17 cents to 21 cents a share.

Casey's General Stores, Inc. (CASY: chart) announced after market close Wednesday that its quarterly earnings climbed 14% from a year earlier, on the back of higher sales, which offset an increase in expenses. The Ankeny, Iowa-based operator and franchiser of gas stations and convenience stores reported net income of $15.9 million, or 32 cents a share, for the first quarter of fiscal 2005, in contrast to net income of $14.0 million, or 28 cents a share, for the same quarter in fiscal 2004. The earnings topped the average analysts’ estimate by a penny a share. Sales jumped 20% to $733.9 million in the quarter ended July 31, compared with year-ago sales of $609.4 million. Gasoline revenue was up to $480.5 million in the quarter, a 13% increase from $367 million a year ago. Casey's said its Grocery & Other Merchandise business recorded a 4.4% increase in first-quarter sales of $196.1 million, while Prepared Food & Fountain sales rose 10% to $52.2 million.

Company shares closed Wednesday at $16.75, up 24 cents, or 1.45%.

Greif Inc. (GEF: chart) posted after the bell Wednesday quarterly profits that more than quadrupled from last year, driven by higher prices and lower costs. The Delaware, Ohio-based shipping container company announced income of $14.9 million, or 51 cents per share, for its fiscal third quarter, up from $3.6 million, or 13 cents per share, generated in the prior-year period. Excluding items, third-quarter earnings totaled 80 cents per share, outpacing the mean analysts’ estimate of 74 cents per share. Net sales were up 18% in the quarter to $584.8 million from $496.8 million.

The stock dropped a penny to $38.99 at market close Wednesday.

SkillSoft PLC (SKIL: chart) said Wednesday that it swung to a net profit of $1.4 million, or 1 cent a share, in its fiscal second quarter, from a loss of $53.2 million, or 53 cents a share, a year earlier, when results included a litigation settlement and other one-time items. The Nashua, New Hampshire-based provider of e-learning content and technology products had a profit, excluding items, of 4 cents a share in the quarter, a penny above analysts’ projections. Quarterly sales rose to $50.6 million from $45.1 million, last year.

Company shares plunged 8.99% on Wednesday to $5.57.

Carrefour SA ((CA.PA)) on Wednesday turned in net income of €537 million ($654 million) for the first half of fiscal year 2004, a 5.3% increase from net income of €510 million in the first half a year ago. Excluding items, profit rose 11% from last year to €531 million ($647 million), matching analysts’ views. The France-based world’s second-largest retailer cited solid international sales and lower finance costs as main factors for the improvement. Revenue edged up 2.9% to €34.55 billion ($42.08 billion).

Corinthian Colleges, Inc. (COCO: chart) of Santa Ana, California, reported Wednesday higher quarterly earnings, helped by increased revenues from acquisitions. The post-secondary education company said that it earned $19.1 million in its fourth quarter, compared with a profit of $18 million in the fourth quarter of fiscal 2003. Earnings per share were 20 cents in both periods. The mean estimate of analysts was for a profit of 19 cents a share.

The stock rocketed up 23.22% to close Wednesday at $14.01.
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