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Earnings Analysis: 
FairPoint Fourth-Quarter Profit Falls by Half
Author: 123jump.com Staff
123jump.com
Last Update: 4:30 PM EST February 21 2007



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Group 1 Automotive fourth-quarter net income declined 9%, with lower sales of Ford vehicles and a significant charge. Jack in the Box first-quarter profit grew 48% as sales at established stores rose. Nice Systems fourth-quarter earnings fell sharply as the company booked a series of one-time charges. FairPoint Communications fourth-quarter earnings fell by half, primarily from higher expenses and costs of an acquisition.

 
Group 1 Automotive Inc. (GPI: chart), automotive retailer, said that its fourth-quarter earnings declined 8.5% to $14.8 million, or 61 cents per share, compared with $16.2 million, or 66 cents per share, a year earlier, hurt by a charge of 6 cents per share related to fixed-asset write-offs and franchise-rights impairment charges. Excluding the items, the company posted earnings of 67 cents per share. Revenue jumped 5.7% to $1.51 billion versus $1.43 billion in the year-ago period.

Jack In The Box (JBX: chart), restaurant chain operator, said that its first-quarter net income increased to a company-record $37.4 million, or $1.03 per share, compared with $25.2 million, or 70 cents per share. Revenue rose to $857 million versus $813 million in the same period a year earlier. Same-store sales at Jack in the Box company restaurants increased 5.6%, with Qdoba Mexican Grill same-store sales up 4.1%. Restaurant operating margins rose to 18.4% from 16.4% due to higher sales and lower food costs.

Nice Systems Ltd. (NICE: chart), makes systems to monitor interactions with customers, reported fourth-quarter net income fell 38% on 29% higher revenue and raised its earnings estimates for the year. Earnings were $9.9 million, or 19 cents a share, down from $16.1 million, or 37 cents, in the year-earlier period. On an adjusted basis, Nice earned 37 cents against 28 cents. Revenue rose to $116.5 million from $90 million. Adjusted revenue rose 34% to $120.4 million.

FairPoint Communications Inc. (FRP: chart), provider of rural telecommunication exchanges, said that its fourth-quarter net income fell to $4.3 million, or 12 cents per share, compared with $8.1 million, or 23 cents per share, earned in the final three months of 2005. Quarterly revenue rose to $70.4 million, up from the prior year''s $69.9 million. Earnings from continuing operations were 11 cents in the latest quarter, during which FairPoint took $2.4 million in merger transaction expenses against results.

Epiq Systems Inc. (EPIQ: chart), software company, reported a fourth-quarter net loss of $2.09 million, or 11 cents per share, compared with a net loss of $4.05 million or 22 cents per share, last year. Excluding certain items, the company posted a per-share profit of 15 cents versus 25 cents in the year-ago quarter. Total revenue climbed to $46.4 million against $30 million in the same period a year earlier.

Possis Medical Inc. (POSS: chart), medical device maker, reported second-quarter net income of $174,000, or a penny per share, compared with $342,000, or 2 cents per share, in the year-ago period. Excluding stock-based compensation expense, earnings came in at 5 cents per share compared with 6 cents per share last year. Revenue climbed 4.5% to $15.8 million against $15.1 million in the same period a year earlier.

BTU International Inc. (BTUI: chart), supplier of advanced thermal processing equipment for the electronics manufacturing and alternative energy generation markets, said that its fourth-quarter net earnings declined to $1.02 million, or 11 cents per share, compared with $2.09 million, or 25 cents per share, in the year-ago period. Revenue fell to $16.6 million versus $19.3 million in the year ago period.

Tween Brands (TWB: chart), apparel and accessories retailer for girls aged seven to 14, said that its fourth-quarter net income rose to $28.2 million, or 86 cents per share, compared with $27.1 million, or 80 cents per share, a year earlier. Excluding items, earnings were 89 cents per share for the quarter. Revenue climbed 16% to $272.3 million versus $235.1 million in the same period a year earlier. Tween Brand''s same-store sales rose 2%.

Henry Schein Inc. (HSIC: chart), health care products distributor, said that its fourth-quarter net income rose 30% to $63 million, or 70 cents per share, compared with $48.6 million, or 55 cents per share, a year earlier. Fourth-quarter sales increased 12% to $1.5 billion versus $1.34 billion a year earlier.
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