2:30PM New York – Verizon, Kellogg, and Office Depot report earnings.
Office Depot dropped more than 16% to $17.03 after it delayed its earnings release scheduled for tomorrow. The company cited a pending review by audit committee related to the timing of the recognition of “certain vendor program funds.”
The office supply store chain owns and operates 1,186 stores in North America and has 369 locations in the international markets or managed by franchisees.
In the last 52 weeks Office Depot stock has fallen from $42.61 on the decline in same store sales, lackluster operating margins, and a slow-down in general retail environment.
Verizon, (
VZ: chart) reported third quarter revenue increase of 5.8% to $23.8 billion and operating income increase of 19% to $4.2 billion, and net income per share of 44 cents compared to 53 cents a year ago.
Verizon wireless added 1.8 million retail customers and churn rate in the quarter was 1.21% with the average month revenue was up 1.9% to $52.17 and monthly data revenue was $10.59, up 43% from a year ago.
Verizon added 285,000 new broadband connections, 21% increase compared to a year ago to 8 million customers. Verizon added a net of 202,000 new fiber optic TV customers totaling at the end of the quarter to 717,000. The broadband internet and TV fiber network now reaches 8.5 million homes. Penetration for the service averaged 15.2% across all markets and was 20% for the Internet service based on Fiber optic line based Internet.
Kellogg Company (
K: chart) reported third quarter total revenue increased 6% from a year ago to $3.0 billion. Revenue in North America increased 4% and international sales increased 12%. Net earnings for the quarter were $305 million, 9% increase from a year ago and earnings per share increased 9% to 76 cents from 70 cents a year ago.
The company guided fiscal 2008 earnings between $2.92 and $2.97 per share. Kellogg stock fell 4% or $1.93 to $52.51 in the afternoon trading.
1:00PM New York, 10:30PM Mumbai – Sensex in India added 3.8% and soared 42% in five weeks.
Sensex in Mumbai soared 3.82% or 734.50 to close at 19,977.67 after reaching an intra-day record high of 20,024.87. In the last five weeks the index has jumped 42% on strong fund flows from international investors. CNX Nifty index jumped 3.57% or 203.56 to close at 5,905.90.
Annualized wholesale price index for the week ended October 13th was unchanged at 3.07% from a year ago.
Daily trading on the Bombay Stocks Exchange was recorded at 8,884 crore rupees and on the National Stock Exchange was recorded at 21,809 crore rupees. Infrastructure, banks, and auto sector stocks rose sharply in the trading session.
Of the stocks traded on the BSE, 1,540 closed higher, 1,201 traded lower, and 320 were unchanged.
Oil in Asian trading closed above $93 per barrel lifting ONGC and Reliance Industries to record highs. ONGC surged 7.2% to 1,238 rupees and Reliance jumped 5% to close at 2,827.65.
HDFC, housing lender, soared 9.6% to close at 2,813 rupees.
Maruti Suzuki India reported second quarter fiscal 2008 profit increase of 27% to 466.50 crore rupees on revenue increase of 33% to 4,735.83 crore rupees. Maruti added 0.6% to close at 1,188 rupees.
Mahindra & Mahindra reported second quarter net revenue increased 12% to 2,871 crore rupees but net earnings fell 26% to 285 crore rupees. Mahindra stock dropped 0.7% to 796 rupees.
Infrastructure and power companies traded higher ahead of earnings from Bhel. Larsen & Toubro surged 11% to 4,277.45 rupees, Bhel increased 7.4% to 2,612 rupees, and NTPC closed record high of 233.25 rupees on 2% rise.
