Goldman, Best Buy Earnings Lift Stocks

123jump.com Staff
17 Jun, 2008
New York City

U.S. stocks edged higher after Goldman Sachs reported 12% rise in earnings to $2.09 billion or $4.58 per share on 11% fall in revenue. May producer price index rose 1.4% and housing starts fell in May. The starts fell 32% from a year ago or declined 3.3% from April. Housing completion rose 11% from April but fell 26% from a year ago.

[R]10:00AM New York – U.S. stocks edged higher. Wholesale inflation index rises in the U.S. and consumer prices increase in UK. Goldman Sachs report 12% rise in earnings.[/R]

U.S. stocks edged higher in the morning trading after earnings rise at Goldman Sachs lifted trading sentiment despite a sharper than expected gain in producer price index and a fall in housing starts in May. UK inflation jumped to 10-year high in May after euro area inflation surged to 16-year record high in the month.

Housing starts fall and producer price index rises

More economic data in the U.S. confirm the rising inflation at wholesale level and persistent weakness in the housing market.

The Labor Department reported May producer price index rose 1.4% on rising food and energy prices after gaining 0.2% in April. The increase in the index was higher than a rise of 1.3% that few economists had estimated. The index is likely to inch as higher as crude oil prices have edged higher since the completion of the report.

The Commerce Department reported May housing starts fell 3.3% to 975,000 and building permits dropped 1.3% to 969,000. The housing starts have been lagging as mortgage availability has declined in the last one year.

UK inflation rises to 10-year high

Inflation in the UK surged to a 10-year high after the consumer price index rose at 3.3% in May from a year ago according the Office of National Statistics. The pound weakened against the euro and is likely to drop further as inflation is expected to rise to 4% by the end of the year. The Bank of England Governor Mervyn King two weeks ago suggested that the inflation in the short term may increase before it stabilizes.

Goldman Sachs earnings rise

The Goldman Sachs Group, Inc, a global investment banking service company reported second quarter revenues decreased 8.06% to $9.42 billion from $10.18 billion a year ago. Net income in the quarter declined 11.78% to $2.09 billion or $4.58 per diluted share compared to net income of $2.33 billion or $4.93 per share, a year ago.

The Goldman Sachs Group, Inc ((GS)) in the last one year traded as high as $250.70 in October 2007 and as low as $140.27 in March 2008. Based on the yesterday’s closing price the company has a market cap of $71.78 billion.

Earnings review

Asure Software Inc, a provider of scheduling and asset management software solutions reported third quarter revenues decreased 87% to $2.7 million from $21.0 million a year ago. Net loss in the quarter was $1.6 million or 5 cents per diluted share compared to net income of $6.0 million or 23 cents per share, a year ago.

Asure Software Inc ((ASUR)) in the last one year traded as low as $1.49 in October 2007 and as high as $20.29 in April 2008. Based on the yesterday’s closing price the company has a market cap of $16.40 million.

Best Buy Co., Inc, the consumer electronics retailer chain reported first quarter revenues increased 13% to $9.0 billion from $7.9 billion a year ago. Net income in the quarter fell 10% to $179 million or 43 cents per diluted share compared to net income of $192 million or 39 cents per share, a year ago.

Best Buy Co., Inc ((BBY)) in the last one year traded as high as $53.90 in December 2007 and as low as $38.75 in March 2008. Based on the yesterday’s closing price the company has a market cap of $18.89 billion.

FactSet Research Systems Inc, a provider of financial data reported third quarter revenues increased 22% to $147.4 million from $121 million a year ago. Net income in the quarter rose 14% to $32.5 million or 65 cents per diluted share compared to net income of $28.6 million or 56 cents per share, a year ago.

FactSet Research Systems Inc ((FDS)) in the last one year traded as high as $73.99 in October 2007 and as low as $43.04 in March 2008. Based on the yesterday’s closing price the company has a market cap of $3.11 billion.

The Goldman Sachs Group, Inc, a global investment banking service company reported second quarter revenues decreased 8.06% to $9.42 billion from $10.18 billion a year ago. Net income in the quarter declined 11.78% to $2.09 billion or $4.58 per diluted share compared to net income of $2.33 billion or $4.93 per share, a year ago.

The Goldman Sachs Group, Inc ((GS)) in the last one year traded as high as $250.70 in October 2007 and as low as $140.27 in March 2008. Based on the yesterday’s closing price the company has a market cap of $71.78 billion.

Adobe Systems Incorporated, a diversified software company said second quarter revenue increased to $886.9 million compared to $745.6 million for the same quarter of year ago. Net income was $214.9 million or 40 cent per diluted share compared with $152.5 million or 26 cent per diluted share for the same period of last year.

Adobe Systems Incorporated ((ADBE)) in the last one year traded as high as $48.47 in October 2007 and as low as $30.07 in March 2008.

Anchor BanCorp Wisconsin Inc., a savings and loan holding company said net interest income for the fourth quarter increased to $35.07 million from $29.83 million in the prior year quarter. Net income was $5.6 million or 27 cent per diluted share compared to $8.23 million or 38 cent per diluted share for the same quarter of last year.

Fiscal net interest income rose to $129.0 million from $128.04 million. Net income was $31.13 million or 1.48 cent per diluted share compared to $38.97 million or 1.80 cent per diluted share for the fiscal 2007.

Anchor BanCorp Wisconsin Inc. ((ABCW)) in the last one year traded as high as $29.10 in September 2007 and as low as $10.83 in June 2008.

La-Z-Boy Incorporated, a residential furniture producer reported fourth quarter sales fell 9.8% to $368 million from $408.08 million a year ago. Net loss was $4.42 million or 09 cent per diluted share compared to a net income of $7.71 million or 15 cent per diluted share for the same quarter of 2007.

For the full year sales declined 10.5% to $1.5 billion from $1.6 billion. Net loss was $13.6 million or 15 cent per diluted share compared to net income of $4.14 million or 38 cent per diluted share for the fiscal year 2007.

La-Z-Boy Incorporated ((LZB)) in the last one year traded as high as $12.30 in June 2007 and as low as $5.31 in May 2008.

Majesco Entertainment Company, an interactive entertainment products provider said second quarter net revenue fell to $12.8 million from $14.6 million for the same quarter of year ago. Net loss was $0.3 million or 1 cent per diluted share compared with loss of $1.3 million or 6 cent per diluted share in the same quarter of 2007.

Majesco Entertainment Company ((COOL)) in the last one year traded as high as $2.57 in July 2007 and as low as $0.86 in January 2008.

OMNOVA Solutions Inc., an emulsion polymers producer said second quarter net sales increased $31.7 million to $219.7 million compared to $188.0 million for the same period of year ago. Net loss was $3.1 million or 7 cent per diluted share compared with a net loss of $9.8 million or 23 cent per diluted share for the second quarter of 2007.

OMNOVA Solutions Inc. ((OMN)) in the last one year traded as high as $6.50 in July 2007 and as low as $2.84 in April 2008.

Tegal Corporation, manufacturer of plasma etch and deposition systems said fourth quarter revenues were rose 19.5% to $7.4 million from $6.2 million in the same period of year ago. Net income was $15.2 million or 2.18 cent per diluted share for the quarter compared to a net loss of $2.0 million or 28 cent per diluted share in the same quarter of year ago.

Fiscal year 2008 revenues was increase of 47.9% to $32.9 million from $22.2 million. Net income were $18.1 million or 2.48 cent per diluted share compared to loss of $13.2 million or 1.87 cent per diluted share for the fiscal year 2007.

Tegal Corporation ((TGAL)) in the last one year traded as high as $7.18 in July 2007 and as low as $3.11 in January 2008.


Asian markets review

In Tokyo Nikkei 225 Index closed lower 6.00 or 0.04% to 14,348.37, in Hong Kong Hang Seng index increased 28.30 or 0.12% closed to 23,057.99. In Australia ASX 200 index higher 51.00 or 0.95% to close 5,422.70. In Malaysia KL Composite index decreased 10.30 or 0.83% closed to 1,227.76.

In South Korea Kospi Index decreased 10.11 or 0.57% to close at 1,750.71, in Thailand SET index closed lower 10.42 or 1.32% to 777.17 and Indonesia JSE Index edged decreased 20.07 or 0.84% to 2,377.98. Sensex index in India increased 301.08 or 1.96% to 15,696.90.