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Earnings Analysis: 
Circuit Posts a Loss versus Last-Year Profit
Author: 123jump.com Staff
123jump.com
Last Update: 12:54 PM EDT April 04 2007



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Circuit lost $12.2 million in the fourth quarter, hurt by charges related to store closings and slower sales growth related to falling flat-panel television prices and uneven demand for computer hardware. Monster still expects 2007 results to meet its earlier forecast. Best Buy reported a 18.5% jump in its quarterly profit on better-than-expected sales of flat-panel television sets, gaming and notebook computers. The Greenbrier swung to a loss on weak demand for some of its products.

 
Circuit City Stores Inc. (CC: chart), electronics retailer, said that its fourth-quarter loss declined to $12.2 million, or 7 cents per share, compared with a profit of $141.4 million, or 81 cents per share, in the year-ago period. On a continuing operations basis, the company lost $15.2 million, or 9 cents per share, in the second quarter. The latest results include pre-tax charges totaling $144.6 million related to the impairment of goodwill, store and facility closures, and other restructuring activities. Sales rose to $3.93 billion versus $3.89 billion a year earlier. Same-store sales slipped 0.5% in the period.

Monster Worldwide Inc. (MNST: chart), online jobs company, said first-quarter sales should be $328 million to $329 million, below its prior outlook of $330 million to $338 million. The sales range for the period ended March 31 is also below the $333.1 million revenue estimate analysts polled by Thomson Financial forecast. The company said its first-quarter revenue outlook reflects about a 28 percent sales increase, as its international careers segment expands and its North America careers and Internet advertising and fees businesses declines.

Best Buy Co. (BBY: chart), retailer of consumer electronics, home-office products, entertainment software, appliances, and related services, said that its fourth-quarter net income increased to $763 million, or $1.55 per share, compared with $644 million, or $1.29 per share a year earlier. Revenue climbed to about $12.9 billion versus $10.69 billion in the same period a year ago. Same-store sales rose 5.9%. For the year, Best Buy expects to earn $3.10 to $3.25 a share, on revenue of about $39 billion. It anticipates opening about 130 new stores (95 domestic and 35 international) and a same-store sales gain of 3% to 5%. Best Buy said it expects its gross profit rate will decrease by 30 to 40 basis points, citing faster growth of lower-margin products in its revenue mix in a more stable promotional environment.

Greenbrier Companies Inc. (GBX: chart), which makes and markets freight cars and related services to railroads, recorded a second-quarter loss of $6.1 million, or 38 cents per share, compared to a gain of $8.6 million, or 54 cents per share in the year-ago period. Revenue climbed to $240 million versus $236 million in the same period a year earlier. Adjusted earnings for the latest period were 25 cents per share.

MSC Industrial Direct Co. (MSM: chart), which distributes maintenance and industrial supplies to manufacturers, said that its second-quarter earnings increased to $40.5 million, or 61 cents per share, compared with $33.3 million, or 49 cents per share, a year earlier. Revenue climbed 32% to $404.6 million from last year\''s $305.9 million, with J&L accounting for 70% of the growth.

Panera Bread Co. (PNRA: chart), engages in the ownership and franchising of bakery-cafes, said that its first-quarter revenue increased by 24% to $240 million. Bakery-cafe sales accounted for $197 million of consolidated revenue while franchise royalties and fees and fresh dough sales to franchisees accounted for $43 million of consolidated revenue in the latest quarter. System-wide same-bakery-cafe sales decreased 0.2%. St. Louis-based Panera said it expects first-quarter profit to be at or below the previous target of 47 cents to 50 cents per share, citing same-bakery-cafe sales at the low-end of its original range and the impact on margins by extreme weather. Panera estimates that its comparable bakery-cafe sales in the first quarter were lower than expected by about 1% due to extreme weather experienced in its core markets. Same-bakery-cafe sales, which are lower as a result of weather, have a significantly higher impact on earnings given the inability to rapidly reduce food and labor in the face of inclement weather.
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