Disney Beats Estimates

Elena
09 Aug, 2006
New York City

Stock futures jumped after network equipment maker Cisco Systems rose 9.4% on stronger-than-expected quarterly results and positive outlook. Media conglomerate Disney beat estimates reporting net income growth of 53 cents per share, compared with 39 cents last year due to improved sales and one-time gain related to its acquisition of Pixar Animation Studios.

[R]9:00AM Stock futures pointed to a higher start on Cisco and Disney.[/R]
U.S. stock futures were set to recover from declines in the previous session, contributed by worries about slowing economy. The positive sentiment Wednesday was generated by stronger-than-expected quarterly results from network equipment maker Cisco Systems Inc. and media company Disney.

Cisco ((CSCO)) reported after the bell Tuesday Q4 earnings that remained flat with last year as option and merger costs offset a 21.3% rise in sales. However, the company's fourth quarter earnings, excluding items, as well as quarterly sales came in above analysts' estimate. Media conglomerate Disney ((DIS)) beat estimates reporting net income growth of 53 cents per share, compared with 39 cents last year due to improved sales and one-time gain related to its acquisition of Pixar Animation Studios. Cisco’s shares jumped 12% in pr-market trading, while Disney’s rose 4%.

In other corporate news, Toll Brothers ((TOL)), the largest U.S. luxury home builder, said quarterly new orders and revenue fell, prompting a sign of weakness in housing developments. The home builder's shares fell 2.2% on Inet. Federated Department Stores Inc. ((FD)) posted a higher quarterly profit and raised its earnings forecast for the second half of the year. Shares of the retailer jumped 4.2%. Standard & Poor's 500 futures rose 4.5 points, above fair value. Dow Jones industrial average futures were up 43 points, and Nasdaq 100 futures advanced 9 points.


Bluelinx Holdings Inc., ((BXC)), building products provider, reported Q2 earnings of 31 cents a share, up from a year-ago profit of 25 cents a share in the same period a year earlier. If not for a charge related to its mortgage refinancing, the company posted a profit of 41 cents a share. Revenue fell 7.3% to $1.38 billion from $1.49 billion in the same period a year earlier, due mainly to a decline of almost 17% in sales of structural products as the housing market softened. The company missed analysts’ estimate for a profit of 48 cents a share.

The Perrigo Co, ((PRGO)), maker of healthcare and pharamceutical products, reported Q4 earnings of 13 cents a share, after a loss of 7 cents a share in the same period a year ago. The company. said sales climbed to $355.1 million from $324.5 million. The company met analysts’ estimates for earnings of 13 cents a share. Perrigo said it now expects 2007 earnings of 86 to 91 cents a share, excluding 2 cents of restructuring costs.

Aramark Corp, ((RMK)), food-services and uniform provider, reported that Q3 income fell to 19 cents a share, from 38 cents, a year ago. If not for charges and adjustments, earnings would have been 34 cents a share. Sales rose to $2.93 billion from $2.79 billion. Analysts forecast earnings of 36 cents a share.

Mediacom Communications Corp, ((MCCC)), media company, reported it swung to a Q2 profit, with net income of 5 cents a share, from a loss in the year-ago period of 5 cents a share. The company said revenue rose 9% to $302.4 million from $277.3 million. The company topped analysts forecasts for a loss of 10 cents a share.

Avnet Inc, ((AVT)), producer of electronic parts, reported Q4 net income rose 24% on 28% higher revenue, reaching $58.8 million, or 40 cents a share, from $47.3 million, or 39 cents in the year-earlier period. Shares outstanding rose 21% to 147.4 million. Adjusted earnings were 62 cents in Q4. Revenue reached $3.61 billion from $2.83 billion. On an adjusted basis, the cmpany topped analysts’ estimates of 58 cents. Avnet estimated Q1 earnings at 50 cents to 54 cents a share, including 3 cents related to stock-based compensation expense, on revenue of $3.5 billion to $3.65 billion.


[R]7:30AM Japan rebounds on strong economic data, HK hits six-year high.[/R]
Asian markets were mostly higher on Wednesday. The Nikkei 225 Average closed the day up 1.24% to 15,656.59 as blue-chip exporters such as Toshiba Corp bounced back. Toshiba gained 1.25%. Japanese PC-maker NEC Corp edged up 0.81%. In the auto sector, Honda Motor rose 2.08%, while Toyota Motor was up 1.62%.

Hong Kong''s Hang Seng Index rallied late, advancing 1.75% to close at 17,346.58. China Mobile, the largest listed mainland company by market capitalization on the Hong Kong Stock Exchange, soared 4.51% to lead advancers in the Hang Seng Index. In South Korea, the Kospi index ended up 0.29%. Shanghai''s Composite index finished the day down 0.1%, while Taiwan''s Weighted index gained 1.09%. Miners including BHP Billiton pulled Australia''s S&P/ASX 200 down 1.25%.


[R]6:30AM European markets erase early gains over economic growth worries.[/R]
European markets were lower in Wednesday morning trading. The FTSE 100 in London sank 0.6% to 5,781.5, the Xetra Dax in Frankfurt declined 0.6% to 5,619.70 and the CAC-40 in Paris edged down 0.3% at 4,955.27. Commerzbank of Germany, fell 7.2%, as its second-quarter net profit missed market expectations due to the underperforming of earnings from small business loans.

Hypo Real Estate, the German property lender, fell 4.8%, having slightly missed expectations with a 21.7% gain in second-quarter net profit as lending revenues rose but commission income slipped, while telecoms group SwissCom fell 3.2% after missing forecasts with a 32% fall in first-half net profit, hit by a one-off charge related to a fine for overcharging other telecoms.

Infineon fell 0.9% after its memory chip unit Qimonda raised $546 million in its initial public offering in New York, below expectations. Adidas, the German sports goods maker, added 1.9% after it beat expectations with a 24% rise in second-quarter net profit. The auto sector held up though against the broader market decline with Michelin, up 0.4%, Continental, up 0.1% and Nokian Renkaat, 2.5%. Among the car makers Volkswagen was 0.6% higher.

Light, sweet crude oil for September delivery was up 2 cents at $76.33 a barrel in midmorning electronic trading on the NYME. Gold traded lower in Wednesday at $641.00 an ounce, down $5.00 an ounce from Tuesday''s close of $646.00. The euro was lower against the U.S. dollar Wednesday. The euro bought $1.2822 in early European trading, down from $1.2843 in New York late Tuesday. The British pound slipped to $1.9046 from $1.9079. The dollar advanced against the Japanese currency, rising to 115.35 yen from 115.08 yen.