Earnings support few stocks

123jump.com Staff
30 Nov, -0001
New York City

After three days of advance,the market is in a quite moods. On a day when only few earnings are reported fewer stocks are trading up. Tech stocks are trading higher on Motorola announcing to buy-back up to $4B of stocks. Wal-Mart is conceding that it is better to have Netflix run its online DVD rental business.

In the morning hours, stocks are trading in the mixed fashion. With more than 3% gain in major averages in three days, markets are expected to trade sideways for the rest of the week. The techs are trading higher on the announcement by Motorola, the company plans to buy back stocks worth up to $4 billion.

Netflix stock is up 12%. Wal-Mart Internet site is in agreement with the company to hand over its DVD rental subscriber base to Netflix. This is a significant victory as one of the best finance companies concedes the market place to Netflix. Blockbuster Entertainment is the only competitor in the market than has resources to change the competitive landscape. Blockbuster is in its fight with its current shareholders who prefer the company to not invest the current allocated $170 million for the online venture.

Florida jury found Morgan Stanley to be negligent in case related to Coleman sale conducted for financier Perelman. Jury awarded including punitive damages of $1.4 billion. Morgan said the company will appeal the verdict. In the morning hours the stock was unchanged.

London based, third largest brewer, SABMiller reported 1Q profit of $1.032 per share on revenue growth of 0.7% and volume growth of 4%. The former parent, Altria can exercise its sale of 33 percent holding after the June 30 lock-up period expiration.

Foot Locker 1Q profit of 37 cents vs. 31 cents a year ago on 16% sales rise on 2.6% same-store sales rise for the quarter.

Petsmart, largest pet supply chain, reported 1Q profit of 30 cents vs. 21 cents a year ago on 13.4% rise in sales. The earnings included 3.5 cents one-time gain on legal settlement.

Advance Auto Parts, retail chain, reported 1Q earning of 87 cents vs. 83 cents on same-store sales on total sales rise of 12% on same-store sales growth of 9.2%. The company raised its 2005 earnings estimate to $3.04-$3.14.The current COO of the company to become CEO.

Mentor Corp, maker of breast implants, reported 4Q profit of 19 cents vs. 31 cents a year ago due to several one-time charges on 12% revenue growth. Excluding one-time charges the earnings would have been $1.40 per share.

Longs Drugs Store, California based drug store chain, reported 1Q profit of 34 cents vs. 25 cents a year ago on flat sales of $1.15 billion with same-store sales declined by 1.2%. Last year sales were impacted favorably by the California grocery strike. The company gave 2Q forecast of 30 to 39 cents.

Intuit, personal finance software maker, reported 3Q earnings of $1.61 vs. $1.33 a year ago on 20% revenue growth to $$849.5 million and net income of $300 million. The company forecasted full year profit between $1.96 and $1.99 on revenue between $2.01 and $2.02 billion.

Men’s Wearhouse reported 1Q profit of 69 cents excluding one time charges and 41 cents including charges vs. 42 cents a year ago on 14% rise in revenue. The company declared 3for 2 stock split and board authorized to buy shares up to $50 million.

Salesforce.com reported 1Q profit of 4 cents vs. breakeven a year ago on 84% jump in revenue to $64 million. For the full-year the company raised range from 11-13 cents to 11-14 cents on revenue range of $297 million -$302 million.



In overnight trading, Asian markets closed higher on the rally in the U.S. Japan, South Korea and Australia jump more than 2%. Taiwan up 1.6%, Singapore and Thailand up 0.63%, India and HK closed up 0.5%.

Tech stocks rallied in Japan with Sony leading the sector and up by 4.6% followed by Tokyo Electron, Cannon, Matsushita Electric.

Altria, parent of Philip Morris, reported acquisition of third largest cigarette Indonesian company with the total cost as high as $5.2 billion.