Earnings Watch

Updates, advisories and surprises

Referenced Symbols

Western Digital says flood recovery will take time

(6:03 PM ET) SAN FRANCISCO (MarketWatch) -- Western Digital Corp. said in a conference call on Wednesday that recovery from the damage to the company's factories in Thailand due to flooding will be a "multi-quarter challenge." John Coyne, CEO of the hard-drive maker, said that since Western Digital WDC, +0.89% has "greater direct manufacturing exposure to the flooded areas, we believe the impact on our business in the short term will be greater than to other HDD manufacturers." The company said water levels still need to stabilize before it can begin evaluating the time needed to repair the damage, but it expects its regular capacity to be "significantly constrained for several quarters." The comments were made on the company's earnings call for the first fiscal quarter.

Noble Corp. posts 57% higher profit

(5:27 PM ET) SAN FRANCISCO (MarketWatch) -- Offshore oil driller Noble Corp. NE, +0.77% reported late Wednesday its third-quarter profit rose to $135 million, or 53 cents a share, from $86 million, or 34 cents a share, a year ago. The company cited higher fleet utilization rates, better contract drilling margins and a 4-cent per-share tax benefit for the improvement. Revenue for the three months ended Sept. 30 rose 20% to $737.9 million from $612.6 million. Analysts surveyed by FactSet Research had predicted the company would earn 51 cents a share on $740 million in sales. The company's share price is down 8.5% over the past 12 months, compared with a 5% advance by its peers in the Philadelphia Oil Sector Service Index OSX, +0.45%. Noble is incorporated in Zug, Switzerland.

Sallie Mae loss narrows, forecast comes up short

(4:51 PM ET) SAN FRANCISCO (MarketWatch) -- Sallie Mae (s: slm) on Wednesday reported a third-quarter loss of $47 million, or 10 cents a share, compared with a loss of $495 million, or $1.06 a share, a year ago. The company placed blame on a $371 million "mark to market" unrealized loss on some derivative contracts. Excluding that loss and other one-time items, the student loan provider earned $118 million, or 36 cents a share. Analysts polled by FactSet Research were looking for a profit, on average, of 35 cents a share. For 2011, Sallie Mae said it expects to post a profit, excluding items, of $1.80 a share. Wall Street previously forecast earnings of $1.81 a share. "Loan portfolio quality continues to improve, though the economic slump and long-term unemployment have reduced default recoveries, keeping us at conservative reserve levels," said Vice Chairman and CEO Albert Lord.

E-Trade profit aided by tax benefit

(4:35 PM ET) SAN FRANCISCO (MarketWatch) -- E-Trade Financial ETFC late Wednesday reported a third-quarter profit of $71 million, or 24 cents a share, boosted by a $62 million tax benefit. E-Trade earned $8 million, or 3 cents a share, in the same 2010 period. Revenue rose 4% to $507 million. Average trade commissions fell to $10.76 from $11.03 in the year-ago period. Daily average revenue trades jumped 30% to 165,000. The online trading brokerage said it had 4.3 million customer accounts at end of quarter. E-Trade shares closed at $9.40 and were unchanged in after-hours trade.

Western Digital earnings rise more than 21%

(4:24 PM ET) SAN FRANCISCO (MarketWatch) -- Western Digital Corp. WDC, +0.89% on Wednesday reported a fiscal first-quarter profit of $239 million, or $1.01 a share, on revenue of $2.7 billion. During the same period a year ago, the hard-disk drive maker earned $197 million, or 84 cents a share, on $2.4 billion in sales. Excluding one-time items, Western Digital would have earned $260 million, or $1.10 a share. Analysts surveyed by FactSet Research had forecast Western Digital to earn 96 cents a share on $2.49 billion in revenue. Western Digital's shares fell $2.50, or more than 9%, to $24.44 Wednesday on concerns that flooding in Thailand could negatively impact the company's operations there.

EBay earnings rise 14% in third quarter

(4:22 PM ET) SAN FRANCISCO (MarketWatch) -- EBay Inc. said Wednesday afternoon that earnings grew 14% in the third quarter, coming in line with Wall Street's expectations. For the quarter ended Sept. 30, eBay EBAY, +1.66% reported net income of $491 million, or 37 cents a share, compared to net income of $432 million, or 33 cents a share, for the same period the previous year. Earnings on a non-GAAP basis were $628 million, or 48 cents a share, for the recent quarter. Revenue rose 32% to $2.97 billion. Analysts were expecting earnings of 48 cents a share on revenue of $2.9 billion, according to consensus estimates from FactSet Research.

Wynn turns back to profit but shares slide

(4:22 PM ET) CHICAGO (MarketWatch) -- Shares of Wynn Resorts slid about 6% in after-hours action Wednesday after the casino operator posted third-quarter financial results that came up short of Wall Street expectations. Wynn earned $127.1 million, or $1.01 a share, a turn from a loss of $33.5 million, or 27 cents a share in the same quarter a year ago. On an adjusted basis, Wynn WYNN, +0.43% would have earned $1.05 a share, up from 39 cents a share. Revenue came in at $1.3 billion, up from $1 billion largely on the back of brisk growth in Macau. The average estimate of analyst polled by FactSet Research had been for the company to earn $1.17 a share on revenue of $1.29 billion.

AmEx profit gains on record cardmember spending

(4:18 PM ET) SAN FRANCISCO (MarketWatch) -- American Express Co. AXP, -0.03% on Wednesday reported a third-quarter profit of $1.2 billion, or $1.03 a share, up from $1.1 billion, or 90 cents a share, a year ago. Total revenue rose 9% to $7.57 billion. Analysts polled by FactSet Research were looking for earnings of 95 cents a share, on average, with sales of $7.58 billion. The company said it saw bottom-line improvements across all of its business segments, with cardmember spending jumping 16% to record levels. "The overall results are showing the benefit of moves we've made to improve our risk profile, capture a greater share of cardmember spending, grow fee-based revenues and build additional flexibility into the way we manage expenses," Chairman and CEO Kenneth Chenault said.

Edwards Lifesciences profits rise 7.5%

(4:17 PM ET) SAN FRANCISCO (MarketWatch) -- Edwards Lifesciences Corp. EW, +0.43% on Wednesday reported a third-quarter profit of $51.6 million, or 43 cents a share, up from $48 million, or 40 cents a share, a year ago. Sales rose 18.3% year-over-year to $412.7 million. The Irvine, Calif.-based company, which manufactures devices to treat cardiovascular diseases, said the 7.5% profit jump was partly due to higher demand for its transcatheter heart valves. The earnings topped Wall Street targets, as analysts polled by FactSet Research were looking for a profit of 39 cents a share on revenues of $404 million. At last check, the stock fell 2% in after-hours trading but is still up 3.6% over the past year.

St. Jude jumps on higher third-quarter results

(12:46 PM ET) LOS ANGELES (MarketWatch) -- Shares of St. Jude Medical Inc. STJ, +2.70% jumped 6% at one point Wednesday after the medical device maker reported third-quarter net income that beat analyst estimates and increased its full-year forecast. St. Jude said net income was $226.5 million, or 78 cents a share, compared with the $208.4 million, or 72 cents a share, the company reported a year ago. Sales were $1.38 billion against last year's $1.24 billion. Analysts polled by FactSet had expected earnings of 76 cents a share for the quarter. Further, the company raised its full-year earnings to a range of $3.26 to $3.28 a share. Shares were up $1.96 to $39.30 in recent action.

Comerica drops 10% on earnings miss

(10:30 AM ET) SAN FRANCISCO (MarketWatch) -- Shares of Comerica Inc. CMA, +1.40% fell as much as 10% in early trading after the Dallas-based bank missed quarterly earnings estimates on Wednesday. The company's third-quarter profits jumped 66%, boosted by its acquisition of Sterling Bancshares Inc. in July. Comerica reported a profit of $98 million, or 51 cents a share, up from $59 million, or 33 cents, a year earlier. Analysts polled by FactSet had been expecting earnings of 53 cents a share. At last check, Comerica shares were down $2.08, or 8.1%, at $23.77 a share. The stock is leading decliners on the S&P; 500 SPX, +0.11% and has fallen nearly 38% over the past year.

Travelers tops Dow gainers

(10:18 AM ET) SAN FRANCISCO (MarketWatch) -- Shares of Travelers Cos. TRV, +0.57% led gainers on the Dow Jones Industrial Average DJIA, +0.12% early Wednesday, rising 5% to $54.21. The insurer said it planned to push through price increases on many of its products after commercial prices have declined since the 2008 financial crisis. On Wednesday, Travelers reported profit for the third quarter dropped 67% to $333 million, hit by $606 million in pre-tax catastrophe losses. During the quarter, insurers faced claims from damages inflicted by Hurricane Irene and Tropical Storm Lee.

U.S. stocks fall slightly as Wall Street opens

(9:35 AM ET) NEW YORK (MarketWatch) -- The U.S. stocks fell slightly at Wednesday's opening as traders balanced better-than-expected U.S. economic data, earnings reports from key technology and banking companies and overseas equities boosted by hopes about new plans to tackle Europe's sovereign debt crisis. The Dow Jones Industrial Average DJIA, +0.12% fell 6 points to 11,571. The Standard & Poor's 500 Index SPX, +0.11% lost 2 points to 1,223. The Nasdaq composite COMP, -0.12% was off 11 points to 2,646.

AMR swings to a quarterly loss

(9:01 AM ET) WASHINGTON (MarketWatch) -- American Airlines parent AMR Corp. AMR, +2.52% said Wednesday it swung to a third-quarter loss of $162 million, or 48 cents a share, from a year-ago profit of $143 million, or 39 cents a share. The Ft. Worth, Texas-based carrier blamed the loss on a 40% jump in fuel costs and a volatile foreign exchange rate. Revenue rose 9% to $6.38 billion from $5.84 billion. Analysts surveyed by FactSet Research were looking for a loss of 43 cents a share, on average, with sales of $6.35 billion. As of Sept. 30, the company had $4.8 billion in cash, versus $5 billion a year ago. Shares of AMR declined about 1% premarket to $2.79 each.

Supervalu reports quarterly profit

(8:47 AM ET) NEW YORK (MarketWatch) -- Supervalu Inc. SVU said Wednesday its fiscal second-quarter profit was $60 million, or 28 cents a share, compared to a net loss of $1.47 billion, or $6.94 a share, in the year-ago period. Excluding charges, the prior-year quarter saw a profit of 28 cents a share. In the latest quarter, net sales for the Minneapolis-based grocery chain were $8.7 billion. Analysts surveyed by FactSet Research expected a profit of 20 cents a share on sales of $8.36 billion. Also Wednesday, Supervalu updated its full-year earnings guidance to a range of $1.20 to $1.30 a share.

Freeport-McMoRan profit off in face of strike

(8:32 AM ET) NEW YORK (MarketWatch) -- Freeport-McMoRan Copper & Gold Inc. FCX, +2.48% said a strike at its operations in Indonesia is expected to continue after the work stoppage impacted its third-quarter production. The Phoenix-based mining company said its earnings fell to $1.1 billion, or $1.10 a share, from $1.2 billion, or $1.24 a share, in the year-ago period. Revenue increased slightly to $5.2 billion, from $5.15 billion. Wall Street analysts expected the company to earn $1.05 a share on revenue of $4.78 billion, according to a survey by FactSet Research. The company said the strike impacted production by 70 million pounds of copper and 100,000 ounces of gold. The union in Indonesia informed the company it plans to continue the stike until Nov. 15, while work at the site continues at "modified levels," the company said.

Visa increases dividend by 47% to 'deliver value'

(8:20 AM ET) NEW YORK (MarketWatch) -- Visa Inc. V, +0.02% said Wednesday shareholders of record as of Nov. 18 will receive a quarterly dividend of 22 cents a share on Dec. 6. The latest dividend is 47% higher than the most recent payout of 15 cents a share. The company said the increased dividend fits its objective of delivering value to shareholders and reflects its financial strength.

Northern Trust profit rises

(8:05 AM ET) NEW YORK (MarketWatch) -- Northern Trust Corp NTRS, +1.33% said on Wednesday that its third-quarter profit rose to $170.4 million, or 70 cents a share, from $156.5 million, or 64 cents a share a year ago. Revenue at Northern Trust rose to $971.5 million, from $889.5 million a year ago. Analysts polled by FactSet Research had expected the company to earn 69 cents a share on revenue of $962.8 million.

Abbott post 66% drop in profit; plans spin off

(7:59 AM ET) WASHINGTON (MarketWatch) -- Abbott Laboratories ABT, +0.16% unveiled plans Wednesday to separate into two publicly traded companies after announcing a 66% drop in its third-quarter earnings due to litigation. The health care company said earnings for the period fell to $303 million, or 19 cents a share, from $891 million, or 57 cents a share, in the year-ago period. Earnings before specified items, including a $1.5 billion pre-tax reserve related to previously disclosed litigation, were $1.18 a share. The Wall Street consensus was for a profit of $1.17 a share, as provided by FactSet Research. Sales rose 12% to $9.82 billion from $8.68 billion. Abbott said it would split into separate medical products and research-based pharmaceuticals firms. Shares of Abbot jumped 10% premarket.

Morgan Stanley swings to profit

(7:33 AM ET) NEW YORK (MarketWatch) -- Morgan Stanley MS, +0.71% said on Wednesday that its third-quarter profit was $2.15 billion, or $1.15 a share, compared to a loss of $91 million, or 7 cents a share a year ago. Consolidated net revenues rose 7% to $9.89 billion compared to $6.78 billion a year ago. Results for the current quarter included positive revenue of $3.4 billion, or $1.12 a share, compared with negative revenue of $731 million a year ago related to changes in Morgan Stanley's debt-related credit spreads and other credit factors, the company said. Analysts polled by FactSet Research had expected the company to earn 30 cents a share on revenue of $7.46 billion.

United Tech profit jumps 13% in third quarter

(7:24 AM ET) WASHINGTON (MarketWatch) -- United Technologies Corp. UTX said Wednesday its third-quarter income rose to $1.32 billion, or $1.47 a share, from $1.2 billion, or $1.30 a share, in the year-ago period. Sales climbed to $14.8 billion from $13.6 billion. Analysts surveyed by FactSet Research were looking for earnings of $1.44 a share, on average, with sales of $14.52 billion. For the full year, the Hartford, Conn.-based conglomerate and Dow 30 component raised its profit outlook to $5.47 a share, from a prior view of $5.35 to $5.45 a share. The company's sales forecast remained at $58 billion, up 7% from a year ago. Shares of UTC had yet to trade premarket.

US Bancorp profit rises 6.7%

(7:19 AM ET) NEW YORK (MarketWatch) -- US Bancorp USB, +1.59% said on Wednesday that its third-quarter profit rose 6.7% to $1.23 billion, or 64 cents a share, from $871 million, or 45 cents a share a year ago. Aanlysts polled by FactSet Research had expected the firm to earn 62 cents a share.

PNC Financials profit off 24%, revenue slips 1.5%

(7:14 AM ET) MADRID (MarketWatch) -- PNC Financial Services Group Inc. PNC, +1.02% on Wednesday reported third-quarter net profit fell 24% to $826 million, or $1.55 a share, against $1.09 billion, or $2.07 a share in the year-ago period. The year-ago period included an after-tax gain of $328 million, or 62 cents per diluted common share, for the sale of PNC Global Investment Servicing. Revenue slipped 1.5% to $3.54 billion against $3.6 billion in the year-ago period. Analysts surveyed by FactSet Research were forecasting PNC to earn $1.50 a share on revenue of $3.56 billion. Net interest income fell to $2.18 billion against $2.22 billion in the year-ago period. PNC said its provision for credit losses fell to $261 million in the third-quarter from $486 million in the year-ago period as it said credit quality continued to improve.

Textron swings to $142 mln profit, raises outlook

(7:08 AM ET) FRANKFURT (MarketWatch) -- Textron Inc. TXT, -0.33% on Wednesday reported third-quarter net income of $142 million, or 47 cents a share, compared with a loss of $48 million, or 17 cents a share, in the same period a year ago. An analyst survey by FactSet Research had produced a consensus profit forecast of 31 cents a share. The multi-industry firm known for its Cessna aircraft and Bell helicopters said total revenues rose 13.5% to $2.8 billion. The company said it expects 2011 earnings from continuing operations of $1.05 to $1.15 a share, reflecting its recent tender for its outstanding convertible notes. The company had previously lowered its guidance for 2011 earnings to 90 cents to $1 a share.

BlackRock third-quarter profit rises 8%

(6:54 AM ET) FRANKFURT (MarketWatch) -- Asset manager BlackRock Inc. BLK, -0.17% on Wednesday said third-quarter profit rose to $595 million, or $3.23 a share, from $551 million, or $2.83 a share in the same period last year. Adjusted net income fell 3% to $521 million, or $2.83 a share, from a year ago. Analysts surveyed by FactSet Research had forecast earnings of $2.69 a share. Revenue rose 6% to $2.23 billion, BlackRock said. "Our ability to achieve an as adjusted operating margin of 40%, even in the current challenging environment, reflected both strong expense discipline and the benefits of product breadth across active and passive strategies," said BlackRock Chief Executive Laurence D. Fink. "Our business continues to produce strong free cash flow and we remain committed to returning cash to shareholders." Assets under management decreased 3% year-over-year and 9% since the second quarter to $3.345 trillion, driven largely by $303.9 billion of market-related declines across products, the company said.

BNY Mellon earns 53 cents, sales up 8%

(6:51 AM ET) MADRID (MarketWatch) -- Bank of New York Mellon Corp. BK, +1.21% on Wednesday reported third-quarter net profit of $651 million, or 53 cents a share, compared to profit of $622 million, or 51 cents a share, in the same period a year ago. Revenue rose 8% to $3.69 billion. Analysts expected the company to earn 52 cents a share, on revenue of $3.7 billion. Net interest revenue for the group rose 8% to $775 million from $718 million in the year-ago period. BNY Mellon said the provision for credit losses was a credit of $22 million in the third quarter the same as in the year-ago period. "Year-over-year, we achieved revenue and earnings growth as we benefited from new business wins, net long-term asset flows and increased deposits," said Gerald L. Hassell, chairman, president and chief executive officer of BNY Mellon.

Europe stocks open higher with banks in the lead

(3:14 AM ET) MADRID (MarketWatch) -- European stock markets opened higher on Wednesday, with banks in the lead after reports of progress on the euro zone's rescue fund the prior day. Markets shook off news of a downgrade for Spain by Moody's Investors Service on Tuesday. The Stoxx Europe 600 index(XX:SXXP)rose 0.5% to 236.45, while the Spain IBEX 35 index(XX:IBEX)rose 0.8% to 8,883.80. The French CAC 40 index(FR:PX1)rose 0.8% to 3,166.13. The FTSE 100 index(UK:UKX)rose 0.6% to 5,444.78. Shares of Commerzbank AG(DE:CBK)rose 3.3%, while Lloyds Banking Group PLC(UK:LLOY)added nearly 3%. Shares of BSkyB PLC(UK:BSY)rose 2.7% after quarterly results. Shares of Home Retail Group PLC(UK:HOME)fell over 5% after half-year results.

SABMiller: Weak markets in N. America, Europe

(2:41 AM ET) MADRID (MarketWatch) -- Brewer SABMiller PLC(UK:SAB)on Wednesday reported a 3% rise in lager volumes for the first six months against the same period a year ago in a trading update. The group said beer consumption saw healthy growth in Latin America and Africa, but underlying weakness persisted in North America and Europe. Growth slowed in the second quarter, partly due to stronger prior-year comparisons and particularly poor weather in Europe and China in the current period. Soft drink volumes rose 6% for the half year and volume growth with selective price rises and mix benefits lifted group revenue by 6% and group revenue by 3% in constant currencies. Raw material costs rose moderately. Financial performance for the year was largely in line with expectations, SABMiller said.