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Earnings Analysis: 
PotashCorp’s Gross Margin Second Highest Ever
Author: Ivaylo Dagnev
123jump.com
Last Update: 9:35 AM EDT October 27 2005



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PotashCorp, industrial and feed products producer, reported Q3 net income of $1.17 per share, 72% up from 68 cents per share in the year-ago period on the continuing growth in prices for potash, phosphate and nitrogen.

 
PotashCorp’s, (POT: chart), total income for Q3 was $130.3 million, a 73 % increase from the $75.2 million in the comparable period last year. Gross margin of $279.5 million was advanced 48 % from last year's third quarter and raised year-to-date gross margin to $882.8 million, surpassing gross margin of $681.4 million for all of 2004. Cash flow from operations rose by 87 % quarter over quarter. A portion of the funds was used to complete the repurchase of 5.5 million outstanding common shares by September 1, 2005, and to begin the purchase of up to 4 million additional shares.

Baidu.com Inc., (BIDU: chart), Internet portal, reported Q1 earnings of 8.5 million yuan ($1.06 million), nearly triple the net income of 2.9 million yuan in the year-ago period, but the results fell short of investors’ expectations of faster growth for company in the booming Chinese market. Excluding compensation expenses, Baidu.com would have earned 0.59 yuan (7 cents) per share, a penny above the analyst estimate.

GlaxoSmithKline, (GSK: chart), pharmaceutical manufacturer, advanced 1.9% after raising 2005 earnings guidance, reporting Q3 pre-tax profit growth of 21% to 21.3 pence a share, compared the prior year result on a 11% rise in revenue. Glaxo announced Advair asthma sales advanced 20% in the latest quarter, Avandia/Avandamet diabetes sales increased 22% and vaccine sales increased 20%. The company said that it's working out a plan to convert more of its manufacturing capabilities to make a pandemic flu vaccine if required and is looking to find partners to produce more of the Relenza anti-viral.

Alcatel SA, (ALA: chart), French telecommunication equipment maker, announced Q3 net profit advanced 36% to19 euro cents a share on 8.8% revenue growth. The latest quarter's results included 7 euro cents a share in one-time capital gains. If not for one-time items, the company would have gained 12 cents a share, missing analysts’ forecasts of14 euro cents a share.

AirTran Holdings Inc, (AAI: chart), transportation services company, posted Q3 net loss that amounted nil on a per-share basis, narrower than the previous year's loss of 11 cents per share despite 52.5% revenue growth. Load factor for Q3 improved by more than 6 %, to 76.3%, as capacity grew by 31.1%. AirTran managed to narrow its quarterly loss even as operating costs including fuel rose by 10.5%, to 9.56 cents.

Canon Inc., (CAJ: chart), maker of printers and cameras, announced that its net profit dropped 1.1 % in July-September quarter from the year-ago period. The company reported a profit of 100.62 billion yen ($869 million) for latest quarter, down vs. 101.78 billion yen the same quarter last year, when its earnings gained from the return of pension funds. Sales for the quarter rose 4.8 % to 878.50 billion yen ($7.6 billion) from 838.30 billion yen.

IHOP Corp., (IHP: chart), restaurant chain, announced that Q3 net profit advanced 56% to 62 cents a share from the year-ago quarter on reduced expenses. The company announced as well that system-wide same-store sales increased 4.5%. IHOP raised its earnings outlook for the year to the range of $2.15 to $2.20 from an earlier estimate of between $2.02 and $2.15 a share.

ImClone Systems, (IMCL: chart), therapeutic products manufacturer, posted Q3 earnings of 35 cents a share, down from 44 cents a share in the year-ago period despite 9% revenue growth, beating analyst estimate of 29 cents a share.

ITT Industries, (ITT: chart), diversified industrial and technology company, posted Q3 earnings of $2 a share, up vs. $1.16 a share in the same period last year on revenue growth. If not for non-recurring items, the company would have earned $1.37 a share, beating analyst estimate of $1.35 a share.

Raytheon Co., (RTN: chart), defense systems producer, reported Q3 net income of 50 cents a share, up from 34 cents a share a year ago in line with analyst expectations. Q3 included a 1 cent a share after-tax loss in discontinued operations vs. a 7 cents a share after-tax loss in the year-ago period.

Trammell Crow, (TCC: chart), diversified commercial real estate services provider, reported Q3 earnings of 40 cents a share, up from 15 cents a share on 20% revenue growth, beating analyst estimate of 34 cents a share.
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