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Earnings Analysis: 
El Paso Doubles Loss in Q3
Author: George Shopov
123jump.com



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El Paso, the U.S. largest natural gas pipeline company, reported that its third-quarter loss more than doubled, hurt by charges.

 
Before market open Monday, El Paso Corporation (EP: chart) announced that its quarterly loss more than doubled on charges. The operator of the largest gas pipeline system in the U.S. posted a net loss of $146 million, or 24 cents a share, for its fiscal 2003 third quarter, compared with a net loss of $69 million, or 12 cents a share, in the same period a year ago. Results include restructuring costs, the impairment of assets and equity investments and discontinued operations. Excluding one-time items, the loss was $6 million, or a penny a share. For the 2002 comparable quarter, Houston, Texas-based El Paso reported net income of $54 million, or 9 cents per share. Analysts had forecast profit of 2 cents a share. For the quarter ended September 30, revenue eased to $1.54 billion, down 9% from the year-ago revenue of $1.69 billion.

El Paso shares plunged 2.64% on Monday to $7.01. The stock inched down 0.14% to $7.00 in after-hours trading.

Reliant Resources, Inc. (RRI: chart) of Houston, Texas, posted Monday a third-quarter loss of $916 million, or $3.11 per share, compared to a profit of $50.4 million, or 17 cents per share, a year ago, due primarily to writedowns in its wholesale energy segment and settlement with the Federal Energy Regulatory Commission. Excluding the writedowns and charges, the energy company said it earned 74 cents per share from continuing operations, above the analysts’ projections of 43 cents a share.

Company shares closed Monday at $5.86, up 63 cents, or 12.05%. The stock added 4 cents to $5.90 in after-market trade.

EchoStar Communications Corp. (DISH: chart) said Monday it swung to a profit of $35.1 million, or 7 cents per share, in its third quarter, reversing a loss of $167.9 million, or 35 cents per share, in the year-ago quarter. The Littleton, Colorado-based satellite television provider attributed the results to the subscriber growth. Revenue for the third quarter rose 19% to $1.45 billion from $1.22 billion, a year earlier.

The stock gained 15 cents to close Monday at $36.80. Company shares slipped 3.70% to $35.44 in after-hours trading.

Apogent Technologies Inc. (AOT: chart) of Portsmouth, New Hampshire, reported Monday a fourth-quarter net loss of $13.0 million, or 14 cents a share, in contrast to net income of $35.7 million, or 33 cents a share, in the prior year. The maker of clinical diagnostic and life science research products cited restructuring and debt charges as main factor for the loss. Net sales were up to $284.6 million from $271.7 million.

Apogent shares dropped 2.25% on Monday to $22.15.

Dobson Communications Corporation (DCEL: chart), the Oklahoma City, Oklahoma-based provider of cellular phone service, posted Monday a net loss applicable to common shareholders of $21.2 million, or 19 cents per share on a fully diluted basis, against a profit of 21 cents a share a year ago. Revenue surged 48% to $223.4 million. The company said results were weighed down by a charge for the early retirement of debt.

Dobson shares plummeted 16.46% to $6.70 on Monday. The stock recovered 0.77% to $6.75 in after-hours trading.

Tenet Healthcare Corporation (THC: chart) posted Monday a third-quarter net loss of $308 million, or 66 cents per share. This compares to a net profit of $328 million, or 66 cents per share, generated in the same period last year. The Santa Barbara, California-based hospital chain said results were due to its increased reserve for bad debt. Analysts were looking for profit of 5 cents a share.

The stock shed 16 cents to close Monday at $13.25. Company shares inched down a penny in after-hours trading.

Tyson Foods, Inc. (TSN: chart) said Monday its fourth-quarter earnings rose 75% on high prices for beef and strong consumer demand. The U.S. largest meat company posted profit of $147 million, or 42 cents per share, for the quarter ended Sept. 27, up from $84 million, or 24 cents per share, a year ago. Springdale, Arkansas-based Tyson outpaced the average analysts’ estimate for profit of 37 cents a share.

Tyson shares rose 1.69% to $14.47 at market close Monday.

British Airways Plc (BAB: chart) reported Monday a second-quarter profit of £101 million ($168.7 million), down from £155 million, in the 2002 equivalent. Revenue was down 6% to £1.98billion. The London, UK-based airline cited weakness in world economies, strong competition on air fares and the strike by ground staff in July as main factors for the decline in profit.

The stock dipped 20 cents to close Monday at $37.61.

Johnson Outdoors Inc. (JOUT: chart) of Racine, Wisconsin, said Monday it expects to swing to a fourth-quarter loss in the range of 43 cents a share to 46 cents a share, hurt by charges. The maker of recreation equipment reported a profit of $2.38 a share last year.

Company shares dived 8.48% on Monday to $14.25.

Credence Systems Corporation (CMOS: chart), the Fremont, California-based maker of semiconductor testing equipment, said Monday it expects to report a 30% increase in its fourth-quarter revenue, boosted by higher incoming orders. Earnings, however, are expected to remain within the previous guidance, due to restructuring costs.

The stock plunged 5.44% to close Monday at $15.82. Company shares dropped a penny in after-market trade.
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