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Earnings Analysis: 
GTECH Q3 Earnings Soar
Author: George Shopov
123jump.com


GTECH Holdings Corporation, the world's largest operator of lottery systems, saw its quarterly earnings rise as much as 40%, helped by a gain on consolidation of the corporate headquarters.

 
GTECH Holdings Corporation (GTK: chart) reported before market open Tuesday that its quarterly earnings surged 40%, citing stronger same-store sales and new customers in the core business. The world's largest operator of lottery systems said it earned $45.9 million, or 69 cents a share, in its fiscal 2004 third quarter, up from net income of $32.8 million, or 58 cents a share, a year earlier. This year’s results were boosted by a one-time gain of $3.3 million, or 5 cents a share, on a consolidation of the company's headquarters. Excluding the gain, West Greenwich, Rhode Island-based GTECH posted a profit of 64 cents a share, a penny ahead of the average analysts’ estimate. For the quarter ended November 22, revenue was virtually flat at $254.9 million, compared with $256.5 million a year ago.

For the fourth quarter, the company expects to post earnings of 63 cents to 68 cents a share.

GTECH shares rose 0.98% on Tuesday to $48.27. The stock dropped 26 cents to $48.01 in after-hours trading.

PriceSmart, Inc. (PSMT: chart) of San Diego, California, said Tuesday it swung to a fourth-quarter net loss of $26 million, or $3.78 per share, from a profit of $6.8 million, or 96 cents per share, generated in the same period last year. The retailer, which runs warehouse clubs in Latin America, the Caribbean and Asia, said results were weighed down by weak sales and the costs of closing stores. For the quarter ended August 31, total revenues eased 7% to $146.6 million from $158.1 million, in fiscal 2002.

The stock slipped 2.09% to close Tuesday at $6.14. Company shares shed 13 cents to $6.01 in after-market trade.

Pier 1 Imports, Inc. (PIR: chart) announced Tuesday a profit of $32.2 million, or 35 cents per share, for its fiscal third quarter, compared with $31.1 million, or 33 cents per share, in the corresponding quarter a year earlier. Results were in line with Wall Street’s expectations. The Fort Worth, Texas-based home furnishings retailer said third-quarter sales were up to $482.4 million, a 10% rise from $438.5 million, in the year-ago period.

Company shares plunged 7.95% to $20.72 at market close Tuesday.

FactSet Research Systems Inc. (FDS: chart) of Greenwich, Connecticut, said Tuesday its first-quarter net profit soared 21% to $13.9 million, or 39 cents a share, in contrast to the prior-year profit of $11.5 million, or 33 cents a share. The provider of financial intelligence to the investment market matched analysts’ projections. The company attributed the results to rising demand for its portfolio managers workstation and international revenue growth.

The stock closed Tuesday down $1.10, or 2.70%, at $39.60.

Cole National Corporation (CNJ: chart) of Mayfield Heights, Ohio, posted a smaller quarterly loss on the back of stronger sales. The optical retailer reported a third-quarter loss of $1.1 million, or 7 cents a share, compared with a loss of $1.9 million, or 12 cents a share, a year earlier. For the quarter ended November 1, revenue climbed to $296.5 million from $275.5 million. Same-store sales increased 5.4% in the quarter.

The stock inched down 6 cents to close Tuesday at $20.19.

Imperial Sugar Company (IPSU: chart) reported Tuesday net income of $10.0 million, or 93 cents per diluted share, for its fourth quarter, up from $200,000, or a penny per diluted share, in the 2002 equivalent, helped partly by higher sugar prices. The Sugar Land, Texas-based marketer of refined sugar said net sales from continuing operations dropped to $294.1 million from $307.4 million, hurt by decline in sugar sales volumes.

Company shares surged 15.41% on Tuesday to $14.08. The stock added 27 cents to $14.35 in after-market trade.

California Micro Devices Corp. (CAMD: chart) said Tuesday it expects to report earnings of 6 cents to 9 cents per share, for its fiscal third quarter, on revenue of $16.2 million to $17 million. Analysts had forecast earnings of 4 cents a share. The Milpitas, California-based semiconductor maker had a profit of 4 cents a share and revenue of $14.9 million in the previous quarter.

The stock closed Tuesday at $7.90, down 5 cents, or 0.63%. California Micro Devices shares soared 6.58% to $8.42 in after-hours trading.

Immucor, Inc. (BLUD: chart) of Norcross, Georgia, said Tuesday it sees its quarterly earnings falling short of expectations, hurt by weaker demand for its products and a charge related to a new credit line. The company, which makes reagents and automated systems that are used by blood banks and hospitals, expects to earn 14 cents per share, in its fiscal second quarter, below analysts’ forecast for profit of 20 cents per share, on average.

Immucor shares plummeted 13.56% on Tuesday to $18.68. The stock was up 0.11% to $13.70 in after-market trade.

Extreme Networks, Inc. (EXTR: chart) forecast Tuesday a second-quarter loss of $3.5 million to $6.5 million, or 2 cents to 6 cents a share, before the impact of amortization of warrants granted to Avaya Inc. Analysts expected the Santa Clara, California-based maker of network switching products to report a profit of 2 cents a share, for its second quarter.

The stock tumbled 22.47% to $6.35 at market close Tuesday. Company shares edged up 3 cents to $6.38 in after-hours trading.

Honeywell International Inc. (HON: chart) of Morristown, New Jersey, said Tuesday its 2004 earnings could drop about 9%, citing pension costs. The maker of electronic cockpit systems projected a profit of $1.40 to $1.55 per share, in fiscal 2004. Excluding pension costs, the company said it sees a profit rise in the range of 7% to 9%.
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