Starbucks Plunges 10%, Stocks Decline

123jump.com Staff
24 Apr, 2008
New York City

U.S. stocks edged lower after durable goods order fell 0.3% in March. Mixed earnings from several companies also weighed on the market. Amazon.com fell after earnings rose 30% to 34 cents per share. Apple edged lower after earnings missed the analysts target and Starbucks plunged 11% on weak same store sales and weaker earnings outlook for the year. FMC declined after it reported earnings surged to $1.23. Fidelity National Title fell on weak housing market and earnings slide.

[R]9:45AM New York – Mixed earnings from Amazon.com, Apple and Starbucks drag stock averages lower at the opening.[/R]

Amazon.com fell after it reported first quarter net income increased 30% to $143 million or $0.34 per diluted share compared with net income of $111 million or $0.26 per share in the previous year. Net sales increased 37% to $4.13 billion in the first quarter 2008, compared with $3.02 million in the first quarter 2007.

Chipotle Mexican Grill, Inc. Mexican food restaurants chain said revenue increased 29.3% for the first quarter 2008 to $305.3 million compared with $236 million in the first quarter 2007.

Net income in the quarter was $17.3 million or $0.52 per diluted share compared with $12.4 million or $0.38 per share a year ago.

The company opened 28 new restaurants in the Quarter and comparable restaurant sales increased 10.2% in the Quarter.

Citrix Systems, Inc., middleware software developer reported revenue rise of 22% for the first quarter 2008 of $377 million, compared to $308 million in the first quarter of fiscal 2007.

Net income for the first quarter of fiscal 2008 was $34 million, or $0.18 per diluted share, compared to $38 million, or $0.20 per share in the previous year.

For second quarter 2008 net revenue is expected to be in the range of $380 million to $390 million, compared to $334 million in the second quarter of 2007. GAAP diluted earnings per share is expected to be in the range of $0.16 to $0.20.

Fidelity National Financial, Inc a title insurer said total revenue for the first quarter 2008 was $1.14 billion, down from $1.37 billion a year earlier.

Net income for the first quarter 2008 was $27.2 million or 13 cents a share, down 67% from a year earlier when the title insurer made $83.4 million, or 37 cents a share for the quarter of 2007.

FMC Corporation. a diversified agro and industrial chemical company said total revenue increased 11% for the first quarter 2008 to $750.2 million versus $674.1 million in the quarter of prior year.

Net income was $93.9 million or $1.23 per diluted share versus net income of $45.8 million or $0.59 per share a year ago.

Revenue in agricultural products of $277.5 million was 12% higher than the prior-year quarter. Sales gains driven by buoyant agrochemical market conditions were achieved in Asia, Europe and Latin America, particularly in Brazil.

Anheuser-Busch Companies, Inc. beer brewer said that consolidated net sales increased 6.2% or up $241 million for first quarter 2008 to $4.1 billion compared to $3.86 billion in the quarter of 2007.

First quarter net income decreased 1.3% to $511 million from $518 million but increased 6% to $0.71 cent diluted earnings per share compared to or $0.67 cent earnings per share in the previous year.

U.S. beer sales were up due to increased volume and pricing, international beer net sales increased 20%. U.S. beer segment sales increased 4% on improved revenue per barrel and increased sales volume. Revenue per barrel was up 2.3%.

QUALCOMM Incorporated digital wireless telecom technology company said revenue for the second quarter of 2008 increased 17.3 % to $2.61 billion from $2.22 billion in the same quarter of 2007.

Second quarter net income increased to $766 million or 47 cents a share versus $726 million or 43 cents a share a year ago.

Durable goods orders and weekly jobless claims fall

Weekly unemployment claims at the end of last week declined 33,000 to 342,000 after season adjustments and four week average of initial claims fell 7,250 to 369,500.

Seasonally adjusted durable goods orders fell 0.3% in March to $212.2 billion according to the Commerce Department. February data was revised to a decline of 0.9% from an initial estimate of 1.1% drop. This was the third consecutive monthly decrease and followed a 0.9% February decrease. Excluding transportation, new orders increased 1.5%. Excluding defense, new orders increased 0.3%.

Unfilled orders for manufactured durable goods in March, up thirty-four of the last thirty-five months, increased $7.3 billion or 0.9% to record high of $830.1 billion since 1992.

Asian markets review

In Tokyo Nikkei 225 Index closed lower 38.29 or 0.28% to 13,540.87, in Hong Kong Hang Seng index increased 391.54 or 1.55% closed to 25,680.78. In Australia ASX 200 index lower 65.60 or 1.16% to close 5,587.30. In Malaysia KL Composite index increased 4.92 or 0.38% closed to 1,293.08.

In South Korea Kospi Index decreased 1.45 or 0.08% to close at 1,799.34, in Thailand SET index closed lower 3.35 or 0.40% to 834.31 and Indonesia JSE Index edged decreased 44.32 or 1.92% to 2,269.98. Sensex index in India increased 23.04 or 0.14% to 16,721.08.