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Earnings Analysis: 
US Airways Misses Estimate on Items
Author: Ivaylo Dagnev
123jump.com
Last Update: 9:11 AM EST February 21 2006


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US Airways Group Inc, carrier, reported a Q4 net loss of $3.26 a share, up from $4.66 a share in the year-ago period. Last period loss reflects the prior period inclusion of only America West data. The company included a substantial unrealized loss related to the airline''s fuel hedges.

 
US Airways Group, (LCC: chart), included a $69 million unrealized loss related to the airline''s fuel hedges as well as $36 million of special charges and $18 million in charges partially related to the remarketing and warrant repurchase associated with America West''s prior Airline Transportation Stabilization Board loan. If not for these items, the company would have reported a quarterly loss of $1.72 a share, considerably up from $3.89 a share a year ago. Quarterly revenue reached $2.58 billion as opposed to $697 million. Analysts had been expecting a loss of $1.93 a share.

Federal Signal Corp, (FSS: chart), manufacturer of safety and signalling equipment, reversed to a Q4 net loss of 54 cents a share, down from a year-ago profit of 13 cents a share despite 2.1% revenue growth. Federal Signal added that the loss included a $34 million write-down from the decision to exit the refuse truck body business. Income from continuing operations was 28 cents a share.

Memory Pharmaceuticals Corp, (MEMY: chart),manufacturer of drugs to treat central nervous system conditions, reported that its Q4 net loss was narrower, coming to 10 cents a share, from $6.84 million in the prior quarter on 52.5% revenue growth. The company stated that its net loss included a $2.2 million noncash gain referring to warrants issued in a September private placement.

Home Depot, (HD: chart), home-improvement retailer, reported that Q4 net earnings reached 60 cents a share, up from 47 cents a share in the year-earlier period on 16% higher revenue while same-store sales grew 5.5%, beating analyst estimate of 56 cents a share.

Triad Hospitals Inc, (TRI: chart), owner and manager of hospitals and ambulatory-surgery centers, reported that Q4 earnings advanced 11% to $54.6 million, or 63 cents a share, from $49.2 million, or 64 cents in the same period the prior year on 17% revenue growth, missing analyst estimate of 66 cents.

Wal-Mart Stores, (WMT: chart), retailer, reported Q4 earnings of 86 cents a share, a 13.4% jump from 75 cents a share in the year-earlier period on sales and 3.1% same-store sales growth, beating analyst view of 83 cents a share. The figures include a 2-cent a share tax benefit.

State Auto Financial, (STFC: chart), insurer, reported Q4 net income of 71 cents a share, down from 93 cents in the same period the prior year, missing analyst forecasts of 87 cents a share. The company’s net income from operations reached 73 cents a share, down from 92 cents. Revenue advanced to $280.9 million from $273 million, as net premiums written advanced to $244.8 million from $239.9 million.

TRW Automotive Holdings Corp., (TRW: chart), provider of automotive parts systems, reported Q4 earnings of 57 cents a share, up from a loss of 63 cents a share a year-ago. If not for items, the company earned 40 cents a share, beating analyst estimate for a profit of 33 cents a share.

Live Nation Inc, (LYV: chart), entertainment promoter, reported a wider Q4 net loss of $2.02 a share, despite 38.2% revenue growth. Q4 included a deferred tax expense of $99.7 million. The company pointed out that its primary focus during Q4 was on rightsizing our cost structure and tightening our strategic and operational focuses.

Clear Channel Communications (CCU: chart), broadcasting and entertainment company, reported Q4 earnings of 86 cents a share, down from a loss of $8.15 a share a year-ago despite revenue 1% decline. Earnings before discontinued operations and a change in accounting principles came in at 34 cents a share in Q4, beating analyst estimate of 33 cents a share.
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