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Earnings Analysis: 
Toys ''R'' Us Posts Wider Loss
Author: George Shopov
123jump.com


Toys ''R'' Us, the U.S. No.2 toy retailer, announced that its quarterly loss widened, hurt by weak sales at its U.S. toy stores and freestanding Kids ''R'' Us stores.

 
Toys ''R'' Us, Inc. (TOY: chart) posted before the bell Monday a wider quarterly loss, citing weak performances at its U.S. toy stores and freestanding Kids “R” Us stores. The second largest toy retailer in the U.S. reported a net loss of $38 million, or 18 cents per share, for its fiscal 2004 third quarter, compared with a loss of $27 million, or 13 cents per share, a year ago. Excluding a charge for an accounting change, the Wayne, New Jersey-based company posted a loss of $27 million, or 13 cents per share. Analysts had forecast a loss before items of 9 cents a share. For the quarter ended November 1, revenue rose 2.2% to $2.32 billion from $2.27 billion, in the same period a year ago. The company said sales were flat excluding a boost from currency exchange rates.

Toys ''R'' Us cut its full-year earnings outlook and now expects to earn between $1.05 per share to $1.15 per share, down from its previous guidance of $1.15 per share.

Company shares plummeted 12.24% on Monday to $11.18. The stock inched up 4 cents to $11.22 in after-market trade.

Agilent Technologies, Inc. (A: chart) said after market close Monday it swung to a profit in its fourth quarter, helped by lower costs and expenses. The Palo Alto, California-based top supplier of electronic test and measurement products reported earnings of $13 million, or 3 cents a share, for the quarter ended October 31, reversing a prior-year loss of $236 million, or 51 cents a share. Revenue slipped to $1.67 billion from $1.74 billion, in the year-earlier quarter. For the fiscal year ended October 31, Agilent posted a loss of $2.1 billion, or $4.35 a share, in contrast to a loss of $1 billion, or $2.22 a share, last year.

Agilent shares gained 14 cents to $26.75 at market close Monday. The stock soared 6.73% to $28.55 in after-hours trading.

Bolstered by strong sales, Lowe's Companies, Inc. (LOW: chart) of Wilkesboro, North Carolina, posted Monday a third-quarter profit of $452 million, or 56 cents per share, a 33% increase from $339 million, or 43 cents per share, generated a year ago, and 3 cents ahead of the average analysts’ estimate. The world's No.2 home improvement retailer said sales surged 24% in the third quarter to $7.92 billion from $6.42 billion, in the 2003 equivalent.

The stock dipped 1.23% on Monday to $57.91. Company shares added 9 cents to $58.00 in after-hours trading.

Jo-Ann Stores, Inc. (JAS: chart), the U.S. largest fabric retailer, said Monday its fiscal 2004 third-quarter net earnings rose to $12.0 million, or 54 cents a share, from $8.9 million, or 40 cents a share, last year, on stronger sales. The Hudson, Ohio-based company said net sales were up 4% to $447.5 million from $430.1 million, in the 2003 third quarter.

Company shares shed 83 cents to close Monday at $24.62. The stock plummeted 11.86% to $21.70 in after-market trade.

Kulicke and Soffa Industries, Inc. (KLIC: chart) of Willow Grove, Pennsylvania, said Monday it narrowed its fourth-quarter loss, including charges, to $28.4 million, or 57 cents a share, from $195 million, or $3.95 a share, in the 2002 comparable period. The company, which is the world’s top provider of assembly equipment for the semiconductor industry, attributed the results to an improved semiconductor market. Revenue rose 5.8% to $129.3 million from $122.2 million, a year ago.

The stock surged 6.02% on Monday to $16.90. Company shares dropped 10 cents to $16.80 in after-hours trading.

World Wrestling Entertainment, Inc. (WWE: chart) posted Monday a third-quarter net profit of $17.1 million, or 25 cents a share, swinging from a net loss of $1.6 million, or 2 cents a share, in the prior year. The Stamford, Connecticut-based media and entertainment company said it benefited from higher pay-per-view income and television rights fees. Revenue was up to $94.4 million, from $90.3 million, a year earlier.

Company shares closed Monday up 24 cents, or 2.22%, at $11.05.

Innovative Companies, Inc. (GORX: chart) of Largo, Florida, announced Monday a second-quarter profit of $656,000, or 8 cents per share, up from a profit of $275,000, or 4 cents per share, in the same quarter last year. The health products company said increased manufacturing sales volumes boosted the results. Sales leapt to $6.1 million from $3.3 million, a year earlier.

The stock was catapulted up 13.46% on Monday to $4.89. Company shares added 8 cents to $4.97 in after-market trade.

ATI Technologies Inc. (ATYT: chart) raised Monday its first-quarter earnings guidance, boosted by increased demand for its personal-computer products. The Ontario, Canada-based maker of computer graphics chips and boards now views adjusted first-quarter net earnings at 16 cents to 20 cents a share, on revenue of between $440 million and $470 million. The company’s previous forecast was for profit of 12 cents a share, on revenue of $400 million to $430 million.

Company shares dropped 11 cents to close Monday at $13.85. The stock rocketed up 10.90% to $15.36 in after-hours trading.

MedImmune, Inc. (MEDI: chart), the Gaithersburg, Maryland-based drug maker, cut Monday its fourth-quarter earnings outlook, citing lower-than-expected sales of the vaccine FluMist. The company now expects to report net profit of 26 cents to 34 cents a share, down from its earlier forecast of 42 cents to 47 cents a share. Fourth-quarter revenue is expected to range from $385 million to $445 million, in contrast to the previously projected $450 million to $500 million.

The stock closed Monday unchanged at $25.58. Company shares fell 13 cents to $25.45 in after-market trade.

Imation Corp. (IMN: chart) of Oakdale, Minnesota, reiterated Monday that it expects to post a fourth-quarter profit from continuing operations of 45 cents to 52 cents per share. The forecast of the company, which is a maker of data-storage products, matches its previous guidance.
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