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Earnings Analysis: 
Ford Reverses to Loss
Author: Ivaylo Dagnev
123jump.com
Last Update: 9:11 AM EDT April 21 2006



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Ford Motor, automaker, reported a Q1 loss of 64 cents a share, vs. earnings of 60 cents a share in the year-ago period on 9% revenue decline due to a 6% decline automotive sales. If not for non-recurring items, earnings would have been 24 cents a share. The company beat analysts’ views for earnings of 25 cents a share.

 
Ford Motor, (F: chart), said that revenue from auto sales dropped 6 %, connected with the incentives and discounts to lure customers to show rooms and lower-margin sales to commercial fleets and car rental companies. The loss had been Ford''s largest since the fourth quarter of 2001, when it reported a $5 billion loss on charges for an earlier restructuring. Earnings from continuing operations came to 24 cents per share, short of analysts'' expectations of 26 cents a share.

Royal Caribbean Cruises, (RCL: chart), travel firm, reported Q1 net income of 55 cents a share, down from 64 cents a share in the year-earlier period on decline revenue to $1.1 billion from $1.2 billion. Q1 included a net gain of 16 cents a share for a previously disclosed partial settlement of a lawsuit. The company topped analysts’ forecasts for earnings of 48 cents a share. The company expects Q2 earnings of 50-55 cents a share on higher fuel costs, down from analyst target of 73 cents a share.

RadioShack Corp, (RSH: chart), consumer electronics retailer, posted Q1 net income of 6 cents a share, down from 34 cents a share a year earlier. The company added that write-downs in connection with its turnaround plan cut its pre-tax income by around $10 million. Sales advanced 3% to $1.16 billion. The company also added that weaker-than-expected wireless sales hurt its Q1 results. RadioShack missed analyst estimate for earnings of 17 cents a share. Same-store sales for Q1 shed 1% from year-earlier levels. Gross profit margins for Q1 dropped to 48.3% from 50.4% a year ago, on account of an unfavorable merchandise mix, more promotional activity and higher-than-average sales growth of its lower margin kiosk channel.

3M Co, (MMM: chart), diversified industrial and consumer products maker, reported Q1 net income of $1.17 a share, up vs. 97 cents a share in the year-ago period, topping analysts’ forecasts for earnings of $1.14 a share. 3M added that sales grew 8.3% in Q1. The company raised its sales outlook and its earnings forecast to $4.55 to $4.65 a share from $4.45 to $4.60 a share in 2006.

Ingersoll-Rand Ltd., (IR: chart), diversified industrial manufacturer, reported that Q1 profit advanced to 76 cents a share, from 64 cents a year earlier on revenue growth to $2.71 billion from $2.46 billion in Q1 last year. The company topped analysts’ forecast earnings of 72 cents a share. The company expects Q2 earnings at 90 cents to 95 cents a share, bracketing analysts'' view for 93 cents.

Prosperity Bancshares Inc, (PRSP: chart), loans and deposit products services company, reported Q1 net income of 46 cents a share, up from 43 cents compared with the same period the previous year. Net interest income totaled $29.2 million from $24.5 million, as average earning assets advanced 19%. Q1 loans topped $1.56 billion, up 4.1% from the prior date period. The company was in line with analysts’ estimates.

Schlumberger Ltd, (SLB: chart), oilfield-services company, reported that Q1 net income advanced 38% to 59 cents a share, from 43 cents in the year-ago period on 34% higher revenue. Earnings before charges and credits were 59 cents against 32 cents. The company beat analyst estimate of 55 cents. Both more drilling services and higher pricing drove Q1 results, the company added.

OptionsXpress, (OXPS: chart), options broker, reported Q1 net income of 29 cents a share, nearly double the 16 cents a share profit a year-ago on 64% revenue growth, matching analysts’ forecasts for earnings of 29 cents a share.

Arch Coal Inc, (ACI: chart), coal company, reported Q1 net income of 84 cents a share, up from 7 cents a share in the year-ago period on 6% revenue growth, topping analysts’ forecasts for earnings 58 cents a share. Arch lifted the bottom end of its prior earnings outlook to between $3.75 and $4.25 a share.

Sensient Technologies Corp., (SXT: chart), maker of colors and flavors for food, reported Q1 net income of 34 cents a share, up 22% from 27 cents a share in the year-earlier period, topping analyst estimate of 32 cents a share. Revenue grew 5% to $263 million. Sensient added it expects 2006 earnings per share to be between $1.35 and $1.40 a share, topping analyst view of $1.28 a share.

McDonald''s Corp, (MCD: chart), fast-food restaurant operator, reported that Q1 profit dropped to 49 cents a share, from 56 cents a year earlier, matching analysts'' estimate. Revenue in Q1 advanced to $5.1 billion from $4.8 billion in Q1 last year. Global same-store sales advanced 5.2%.
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