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Earnings Analysis: 
Campbell Q1 Earnings Surge
Author: George Shopov
123jump.com


Campbell, the world's biggest soup maker, reported a 32% increase in its first-quarter earnings, boosted by higher prices and the weaker dollar.

 
Campbell Soup Company (CPB: chart) posted before the bell Monday a bigger quarterly profit, citing higher prices and the weaker dollar as main factors for the profit increase. The world’s biggest soup maker reported fiscal 2004 first-quarter earnings of $211 million, or 51 cents a share, up 32% from $161 million, or 39 cents a share, in the 2003 equivalent, when the company took a one-time charge of $31 million, or 8 cents a share, for a change in accounting rules. Analysts were looking for a profit of 49 cents a share on average, in the latest quarter. For the quarter ended November 2, Camden, New Jersey-based Campbell reported that net sales jumped 12% to $1.91 billion, which included a 4% boost from the weaker dollar and a gain of 2% from higher pricing. The company had reported sales of $1.7 billion in the same period last year.

Campbell said it expects to earn between 52 cents and 54 cents a share in the second quarter, which would be below analysts’s forecasts of 59 cents a share on average.

Company shares gained 37 cents to $25.57 at market close Monday.

Semtech Corporation (SMTC: chart) of Camarillo, California, said after market close Monday it earned $9.3 million, or 12 cents a share, in its third quarter, down from a net profit of $13.0 million, or 17 cents a share, a year earlier. The maker of analog and mixed-signal semiconductors said also its quarterly net sales climbed to $48.1 million from $47.2 million, a year ago.

Semtech shares closed Monday at $24.46, up 8 cents, or 0.33%. The stock added 72 cents to $25.18 in after-market trade.

Veritas DGC Inc. (VTS: chart) reported Monday it swung to a first-quarter loss of $26.3 million, or 78 cents a share, compared to a year-ago profit of $1.6 million, or 5 cents a share. Excluding a charge for an accounting change, the Houston, Texas-based seismic exploration company lost 12 cents a share. Analysts had called for a profit, before items, of 6 cents a share. Veritas blamed the low customer activity for the results. The company said revenue tumbled 24% to $104.4 million from $137.5 million, in the 2003 comparable period.

The stock edged up 6 cents to close Monday at $8.95. Company shares plummeted 12.85% to $7.80 in after-hours trading.

Credence Systems Corporation (CMOS: chart) said Monday it narrowed its quarterly loss due to strong demand for its new products. The maker of semiconductor testing equipment posted a fourth-quarter net loss of $22.1 million, or 35 cents a share, compared with a net loss of $112 million, or $1.84 a share, in the prior year. Fremont, California-based Credence Systems said its sales surged 34% to $57.8 million, in the quarter ended October 31, from $43.2 million a year ago.

Company shares soared 7.23% on Monday to $15.28. The stock plunged 6.74% to $14.25 in after-market trade.

ASAT Holdings Limited (ASTT: chart), the Hong Kong-based provider of semiconductor package design, assembly and test services, posted Monday a smaller second-quarter net loss of $2.9 million, or 2 cents per American Depositary Share, in contrast to a net loss of $3.9 million, or 3 cents per share, a year earlier. ASAT said it benefited from the expansion of its capacity. The company said net revenue was $48.1 million, in the second quarter, up 18% from $40.7 million, in the year-ago quarter.

The stock dived 9.93% to close Monday at $3.63. Company shares shed 12 cents to $3.51 in after-hours trading.

CoolBrands International, Inc. ((COBA.TO)) of Toronto, Canada, reported Monday a fourth-quarter net profit of C$14.8 million ($11.3 million), or 27 Canadian cents a share, up 63% from C$9.1 million, or 17 Canadian cents a share, in the 2002 corresponding period. The food company said the results were due to stronger sales, which were boosted by the acquisition of some Nestle brands. Revenues rocketed up 78% to C$154 million from C$86.4 million last year.

Company shares closed Monday down 28 Canadian cents at C$16.90 on the Toronto Stock Exchange.

Boosted by a robust revenue growth, Dycom Industries, Inc. (DY: chart) posted Monday a higher first-quarter net profit of $13.9 million, or 29 cents a share, compared with net income of $4.1 million, or 9 cents a share, a year earlier. The Palm Beach Gardens, Florida-based designer and builder of phone company wiring systems said revenue jumped 23.7% to $196.0 million from $158.5 million, a year earlier.

Dycom's stock rose 3.94% on Monday to $25.07. Company shares surged 5.58% to $26.47 in after-hours trading.

Hastings Entertainment, Inc. (HAST: chart) of Amarillo, Texas, said Monday it trimmed its quarterly loss, on the back of cost controls and lower operating expenses at its distribution center. The operator of multimedia stores posted a third-quarter loss of $3.81 million, or 34 cents a share, against a loss of $6.63 million, or 58 cents a share, a year ago. Analysts had forecast a loss of 53 cents a share.

Company shares were catapulted up 16.85% on Monday to $4.30.

Xerox Corporation (XRX: chart), the photocopier and office equipment giant, said Monday it expects to post earnings of 67 cents to 72 cents per share on flat revenue for 2004. This would be below the average analysts’ estimate for profit of 74 cents a share as gains of the Stamford, Connecticut-based company are weighed down by weak sales of its older products. For the full year 2003, Xerox reiterated its previous forecast for earnings of 50 cents to 55 cents a share.

Xerox shares inched up 8 cents to close Monday at $10.62.

Novellus Systems, Inc. (NVLS: chart) of San Jose, California, said its fourth-quarter profit would be at the high end of its previous guidance, citing improving semiconductor industry. The maker of semiconductor production equipment expects to earn 6 cents a share, on revenue of $220 million. Novellus expects orders to increase 25% to $275 million, compared to a prior outlook for a growth of 5% to 10%.
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