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Market Update : 
Pixar and Disney in $7.4B Deal
Author: 123jump.com Staff
123jump.com
Last Update: 4:50 PM EST January 24 2006


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Market traded in the positive zone for the most of the session as fresh batch of earnings from railroad, industrial and select tech companies met or exceeded earnings guidance.Late in the day Disney and Pixar released the details of the most awaited deal. Steve Jobs to become largest shareholder of Disney. Disney will issue 2.3 share for every Pixar stock and Disney will boost its stock buyback from 225 million to 400 million.

 
Brinker International Inc., (EAT: chart), restaurant operator, reported Q2 net income of 49 cents a share, up from 44 cents a share in the year-earlier quarter on 10.9% revenue growth, topping analyst estimate of 46 cents a share. Same-restaurant sales advanced 2.2%.

McDonald''s Corp, (MCD: chart), reported Q4 net income of 48 cents a share, up vs. 31 cents a share in the year-ago quarter, matching analysts’ expectations. Revenues increased 4% - 6% in constant currencies - to $5.23 billion, on a 4.2% global comparable sales increase.

Arbitron Inc, (ARB: chart), media marketing research company, reported that its Q4 net income advanced to 36 cents a share, up from 31 cents in the year-earlier period, topping analyst estimate for earnings of 31 cents a share. The company announced that revenue for the latest period grew 3.3% to $75.3 million from $72.8 million. Arbitron expects 2006 revenue to increase between 6% and 8% and earnings to come in at $1.65-$1.75, compared with $2.14 in 2005.

Lucent Technologies, (LU: chart), telecommunications equipment maker, reported a Q1 loss of 2 cents a share, down vs. earnings of 4 cents a share in the year-ago period. If not for non-recurring items, the company would have earned 4 cents a share, matching analyst estimate. Revenue dropped 12% to $2.05 billion from last year''s $2.34 billion.

Agere Systems, (AGR: chart), technology company, reported a Q1 loss of 11 cents a share, up from the year-ago loss of 39 cents a share. The company reported pro forma net income of or 9 cents a share, compared to a net loss of 5 cents a share in the year-earlier period, topping on that basis analysts’ forecasts of earnings of 8 cents a share. Revenue dropped to $403 million from $410 million. The company expects Q2 earnings of 5-11 cents a share on a pro forma basis compared to analysts’ expectations of 10 cents a share.

3M Co, (MMM: chart), diversified manufacturer, reported net income of 99 cents a share, up from 91 cents a share in the same period a year ago, missing analyst estimate of $1.03 a share. Sales rose 4.5% in the latest quarter. If not for accounting charges, 3M would have made $1.04 a share in the quarter. The company announced its 2006 earnings would be $1.10 to $1.14 in Q1 of 2006, including a 2-cent a share charge accounting changes. Earnings in 2006 would be $4.45 to $4.60 a share, including 16 cents a share for stock options expensing.

DuPont, (DD: chart), chemical and biotechnology products company, reported Q4 earnings of 16 cents a share, down from a year-earlier profit of 28 cents a share, beating, though, analyst estimate of 10 cents a share. Q4 results incorporate a gain of 3 cents a share related to lower than expected tax costs from its repatriation of foreign earnings. Sales fell 3% in Q4 to $5.83 billion from $6 billion in the same period the previous year. DuPont forecast earnings of 70 cents a share for the first quarter, falling short of analyst estimate for a profit of 99 cents a share. The company expects Q1 results to be hurt by a year-over-year decline in its agriculture and nutrition business due to lower volumes from crop protection chemicals, competitive pressures, and a shift in seasonal revenue. The company also anticipates its performance materials and coatings and color technologies businesses to continue to be adversely affected by Hurricanes Katrina and Rita. For 2006, the company expects earnings to be about $2.60 a share.

Northrop Grumman Corp, (NOC: chart), defense contracting company, reported Q4 net income of 92 cents a share, up from 74 cents a share in the same period a year earlier, beating the analysts’ estimate of 83 cents a share. Revenue was estimated to be about flat at $7.85 billion. The company lifted its 2006 earnings estimate to $4.25-$4.40 a share, but lowered its sales estimate to about $31 billion.

Johnson & Johnson, (JNJ: chart), consumer and healthcare company, reported Q4 earnings of 73 cents a share, up from 41 cents a share in the year-ago period, in line with analyst estimate. The year-earlier quarter included a $789 million tax charge connected with the repatriation of funds. Sales fell 1.1%, as domestic sales dropped 4.2%, while international sales increased 3.1%.

Texas Instruments, (TXN: chart), maker of chips for mobile phones, reported earnings of 40 cents per share, up from 28 cents per share in the year-ago period. The results included 3 cents per share for stock-based compensation, typically excluded by analysts from their estimates. Analysts were expecting the company to earn 42 cents per share in the latest quarter. Revenue rose to $3.59 billion from $3.15 billion a year ago. Texas Instruments announced a 34 % increase in quarterly income on strong sales of chips for mobile phones and electronic devices

American Express Co., (AXP: chart), credit-card issuer, reported Q4 net profit of 59 cents a share, down 17 % from 71 cents a share in the year-ago period on consumer and corporate cardholder spending as well as double-digit growth in the transaction fees its charges merchants. The drop in net income was a function of the spin-off of American Express'' investment advisory unit late last year and masked what was actually a solid performance. Revenue grew 9 % to $6.4 billion, with the increase driven by a 13 % rise in merchant fees, known as discount revenue, and a 15 % increase in cardholder spending. Billed business growth was especially strong in Canada and Latin America.

AirTran Holdings Inc, (AAI: chart), discount airline operator, reported a Q4 net loss of $0.4 million, down from a net profit of $1.1 million in the year-ago period, despite 46.1% revenue growth. The company said capacity in the quarter grew 25% and traffic rose 28.9%, but costs also rose substantially, including an almost doubling of fuel costs compared to last year.

ExpressJet Holdings Inc., (XJT: chart), carrier, reported Q4 net income of 42 cents a share, down from 56 cents, in the comparable period the previous year. The company’s quarterly revenue increased 4.6%. ExpressJet''s operating margin narrowed to 9.8% from the prior year''s 14.2%. Revenue passenger miles advanced 20% as Q4 load factor reached 76.1% from 72.6%. Analysts had been looking for the company to earn 44 cents a share.

Coach Inc., (COH: chart), handbag and leather goods maker, posted Q2 income of 45 cents a share, up from 32 cents a share in the year-earlier period. Excluding an option expense, the company earned 47 cents a share in Q2, compared to 34 cents a share in the year ago quarter. Analysts were waiting for it to earn 44 cents a share. Net sales advanced to $650.3 million, from $531.8 million last year.

CORPORATE NEWS

Automaker DaimlerChrysler announced that it would reduce administrative staff by 20% over three years, cutting 6,000 jobs and saving $1.2 billion a year in a bid to make the company more competitive and profitable. The cuts would affect areas as accounting, auditing, personnel and strategic planning.
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