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Earnings Analysis: 
Overland Net Slides
Author: George Shopov
123jump.com



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Overland Storage Inc., the provider of tape data automation solutions, posted a drop in its fourth-quarter profits, due to decreased sales to its largest OEM customer. Annual results, however, hit record levels.

 
Overland Storage, Inc. (OVRL: chart) announced before market open Friday quarterly earnings that dropped from a year ago, hurt by weaker-than-expected sales to the company’s largest OEM customer. The San Diego, California-based provider of tape data automation solutions reported net income of $2.1 million, or 14 cents per share, for its fiscal 2004 fourth quarter, down from net income of $3.3 million, or 25 cents per share, for the year-earlier equivalent. Excluding items, earnings for the quarter ended June 30 were $2.4 million, or 16 cents per share, a penny above the consensus estimate of analysts. Quarterly revenue came to $55.0 million compared with $56.5 million, last year. For the full fiscal year, Overland delivered record net income and revenue, driven by strong demand for its back-up technology. Net income for fiscal year 2004 totaled $10.6 million, or 74 cents per share, a 59% rise from $6.7 million, or 54 cents per share, in 2003. Annual revenue jumped 22% to $238.1 million from $195.9 million.

Overland shares closed Friday up 33 cents, or 3.33%, at $10.23.

PLM Group Ltd. ((PGL.TO)) posted Friday lower quarterly profits, citing challenging markets and higher costs as main factors for the drop. The Markham, Canada-based print services company announced second-quarter earnings of C$339,000, or 1 Canadian cent a share, compared with earnings of C$514,000, or 2 Canadian cents a share, for the same quarter a year ago. Sales in the quarter climbed 5% to C$26.2 million.

Albany Molecular Research, Inc. (AMRI: chart) said Friday that it swung to a net loss of $20.8 million, or 65 cents per share, in its fiscal second quarter, from a net profit of $8.3 million, or 26 cents per share, in the 2003 comparable period, dragged by charges. The Albany, New York-based drug discovery and development company had earnings of 19 cents per share, excluding items, falling a penny shy of the average analysts’ forecast. Quarterly revenue declined 22.2% to $42.0 million from $54.0 million, a year ago.

Company shares dipped 3.64% on Friday to $10.60. The stock edged up 14 cents to $10.74 in after-hours trading.

Vaquero Energy Ltd. ((VAQ.TO)) reported Friday that its quarterly profits more than tripled from last year, boosted by a 146% surge in production. The Calgary, Canada-based oil and gas company rolled out earnings of C$2.5 million, or 6 Canadian cents a share, for its second quarter. For the 2003 corresponding period, the company earned C$696,517, or 2 cents a share.

The stock rose 3.59% to close Friday at C$3.75 on the Toronto Stock Exchange.

Canaccord Capital Corp. ((CCI.TO)) on Friday turned in first-quarter net income of C$8.4 million ($6.4 million), or 23 Canadian cents a share, reversing a prior-year net loss of C$431,000, or 2 Canadian cents a share. The Vancouver, Canada-based investment dealer completed its initial public stock offering in June. The company attributed the turnaround to higher revenues, which surged 57% in the quarter to C$80.6 million from C$51.4 million, last year.

Company shares gained 57 Canadian cents on Friday to C$8.65 on the Toronto Stock Exchange.

Swisscom AG (SCM: chart) announced Friday a sharp decrease in its quarterly earnings, weighed down by losses related to the recent sale of a German subsidiary. The Switzerland-based telecommunications company posted a second-quarter net profit of 269 million Swiss francs ($212.5 million), which compares to a net profit of 543 million francs (then $402.6 million), generated in the 2003 equivalent. For the first half of 2004, earnings totaled 757 million francs ($598 million), below analysts’ expectations of 793 million francs ($626.5 million). Swisscom said price pressure also hurt the results.

The stock shed 25 cents to $32.99 at market close Friday.

Target Corporation (TGT: chart) reported Thursday that its second-quarter net income swelled to $1.42 billion, or $1.54 per share, from year-ago net income of $358 million, or 39 cents per share, due to a one-time gain from the sale of its Marshall Field's department stores. The Minneapolis, Minnesota-based U.S. No.2 discount chain recorded revenues of $10.56 billion in the quarter, a 10% increase year-over-year. Comparable-store sales were up 3.9% from a year ago.

The stock closed Thursday at $41.90, up $1.48, or 3.66%.

Kohl's Corporation (KSS: chart) of Menomonee Falls, Wisconsin, on Thursday rolled out net income of $155.8 million, or 45 cents per share, for its fiscal second quarter, up from net income of $112.1 million, or 33 cents per share, a year earlier. The department store operator topped by a penny a share the average analysts’ forecast. The company said results were due to higher sales, which rose 13% in the quarter to $2.5 billion. Same-store sales eased 1.1%.

Kohl's shares dipped 3.06% on Thursday to $43.70. The stock recovered $1.29 to $44.99 in after-hours trading.

Tiffany & Co. (TIF: chart) said Thursday that its quarterly profits slid 11%, citing weaker sales in Japan and a lower profit margin as main factors for the drop. The New York-based jewelry retailer announced income of $36.6 million, or 25 cents a share, for the second quarter, compared with income of $41.1 million, or 28 cents a share, for the second quarter last year. Analysts had expected a profit of 29 cents a share, on average.

The stock plunged 14.78% to close Thursday at $27.10. Tiffany shares edged up 30 cents to $27.40 in extended trade.

American Eagle Outfitters, Inc. (AEOS: chart) of Warrendale, Pennsylvania, posted Thursday a huge rise in its second-quarter earnings, helped by solid performance at its stores open at least a year. The clothing retailer said that it earned $29.6 million, or 40 cents a share, in its fiscal second quarter, up from $8.1 million, or 11 cents a share, for the prior-year period. The earnings were 2 cents a share ahead of the consensus analysts’ estimate. The company delivered sales of $413.8 million for the quarter, a 22.8% increase from last year, driven by a 12.7% jump in same-store sales.

Company shares shed 51 cents to $31.49 at market close Thursday.
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