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Earnings Analysis: 
Whitehall Loss Grows
Author: George Shopov
123jump.com



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Retailer Whitehall Jewellers Inc. reported before the bell Thursday a bigger quarterly loss, as costs related to federal fraud investigations weighed on results.

 
Whitehall Jewellers, Inc. (JWL: chart) announced before market open Thursday that its quarterly loss widened from last year, dragged by costs related to federal fraud investigations. The specialty retailer of fine jewelry posted a net loss of $3.2 million, or 23 cents per share, for the second quarter of fiscal 2004, in contrast to a net loss of $2.8 million, or 20 cents per share, in the 2003 corresponding quarter. Analysts were looking for a loss of 21 cents per share, on average. For the quarter ended July 31, sales eased to $72.3 million compared with $72.7 million, a year earlier. Comparable-store sales edged down 0.6% from last year. For the first half of the year, the Chicago, Illinois-based company reported a net loss of $6.9 million, or 49 cents per share, on sales of $145.3 million. That compares to a net loss of $5.6 million, or 39 cents per share, on sales of $141.9 million, for the same period in 2003.

ADC Telecommunications, Inc. (ADCT: chart) posted after the bell Wednesday a smaller quarterly loss, aided by strong results in Krone Group, which it acquired in May. The Minneapolis, Minnesota-based communications equipment company reported a net loss of $14.3 million, or 2 cents per share, for its fiscal 2004 third quarter, compared with a loss of $15.1 million, or 2 cents per share, for the 2003 comparable period. Excluding items, the company said it had a profit of $3.2 million, or nil per share, in the quarter ended July 31, in line with analysts projections. Quarterly sales surged 55% to $235.2 million from $152.2 million, last year. The broadband infrastructure and access unit delivered sales of $182.9 million, a 71% rise from the same quarter a year ago. Sales in the integrated solutions division rose 13% to $58.2 million. Looking ahead, ADC forecast fourth-quarter earnings of 1 cent to 2 cents per share, on sales of $250 million to $260 million.

ADC shares closed Wednesday at $2.25, up 3 cents, or 1.35%. The stock dipped 2.67% to $2.19 in after-hours trading.

Dollar Tree Stores, Inc. (DLTR: chart) of Chesapeake, Virginia, said after market close Wednesday that it had net income of $29.59 million, or 26 cents, a share, in its fiscal second quarter, against net income of $28.79 million, or 25 cents a share, last year. The discount retailer matched the average analysts forecast. The company attributed the results to higher sales, which climbed 12.5% in the quarter to $704.2 million. Same-store sales slipped 0.2% from a year earlier.

The stock gained 33 cents on Wednesday to $24.95. Company shares dived 4.21% to $23.90 in after-market trade.

Michaels Stores, Inc. (MIK: chart) reported Wednesday a 10% increase in its quarterly profits, boosted by higher sales. The Irving, Texas-based largest arts and crafts retailer in the world announced second-quarter earnings of $26.7 million, or 38 cents per share, in contrast to $24.3 million, or 35 cents per share, generated a year ago. Excluding items, earnings totalled 43 cents a share, beating the mean estimate of analysts by 3 cents a share. Quarterly sales advanced 10.8% to $682.9 million from $616.5 million. Comparable-store sales were up 5% from a year ago.

Company shares inched up 7 cents to close Wednesday at $55.72. The stock slid 3.27% to $53.90 in the extended session.

Opsware Inc. (OPSW: chart) of Sunnyvale, California, announced Wednesday that it narrowed its second-quarter net loss to $813,000, or a penny per share, from a net loss of $3.1 million, or 4 cents per share, for the prior-year period. The developer of data center automation software used by enterprises and government agencies said the improvement was due to higher demand. Revenue in the quarter more than doubled to $8.6 million from $4.2 million, a year earlier. Analysts had predicted a second-quarter loss of 2 cents a share, on revenue of $8.3 million.

The stock soared 6.40% to $6.15 at market close Wednesday. Opsware shares shed 35 cents to $5.80 in after-hours trade.

Williams-Sonoma, Inc. (WSM: chart) reported before the bell on August 25 a 55% jump in its quarterly profits, driven by robust sales. The home products retailer said that it earned $27.6 million, or 23 cents per share, in its fiscal 2004 second quarter, compared with net earnings of $17.8 million, or 15 cents per share, for the same period in fiscal 2003. The results outpaced the consensus analysts forecast of 19 cents per share. For the quarter ended August 1, net revenues, including shipping fees, advanced 18.8% to $689.6 million from $580.4 million, a year ago. Retail sales were up 13.5% in the quarter to $380.7 million from $335.3 million. Same-store sales edged up 5%. The San Francisco, California-based company said strong sales at its Pottery Barn and Pottery Barn Kids chains were a principal contributor for the improved results.

The Toro Company (TTC: chart) of Bloomington, Minnesota, said Tuesday that its third-quarter profits jumped 27% to $34.2 million, or $1.33 a share, from $27 million, or $1.03 a share, generated in the same quarter of 2003. The manufacturer of lawn-care equipment attributed the results to higher sales, which improved to $454 million from $394.5 million, last year. Analysts had predicted a profit of $1.25 a share for the quarter.

Semtech Corporation (SMTC: chart) on Tuesday rolled out earnings of $17.4 million, or 22 cents per share, for its fiscal second quarter, up from earnings of $2.4 million, or 3 cents per share, a year ago, when results were hurt by charges. Analysts had expected the maker of analog and mixed-signal semiconductors to earn 21 cents per share in the quarter. Camarillo, California-based Semtech recorded sales of $68.3 million in the quarter, compared with $44.6 million a year ago, aided by strong demand for its timing and synchronization products.

OmniVision Technologies, Inc. (OVTI: chart) of Sunnyvale, California, posted Tuesday quarterly earnings that tripled from last year, boosted by higher demand for mobile phones with cameras. The developer of image sensors used in digital cameras reported first-quarter net income of $19.9 million, or 32 cents per share, against net income of $6.2 million, or 12 cents per share, in fiscal 2004. The results were 2 cents a share ahead of the mean analysts estimate. Quarterly revenue surged to $98.8 million from $46.8 million.
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