Exxon Mobil Beats Estimates

Elena
30 Jan, 2006
New York City

Asian markets ended higher with only four active exchanges in the region because of the Lunar New Year holiday. The Nikkei closed up 0.55%, building on U.S. gains last week. European averages were mixed at mid-day with the German DAX 30 in the lead, up 0.1%. In corporate news, Schering-Plough reversed to profit in Q4, rising 13%, missing estimates by a penny. Kinetic Concepts posted fourth-quarter 36% income growth on 18% revenue increase, beating estimates.

U.S. MARKET AVERAGES

U.S. stock futures lacked direction Monday morning, predicting a flat to lower opening on profit taking, following strong performances in the final two sessions last week when results from Microsoft, Procter & Gamble and interest rate speculations sent stocks higher and the Dow to nearly triple-digit gains.

Market is expected to remain cautious ahead of Fed Reserve’s meeting, the last to be presided over by Alan Greenspan, an earnings report from Exxon Mobil Corp., and the OPEC’s closely watched meeting.

On Tuesday, the Federal Reserve will announce its next interest rate decision. Another quarter-point hike is expected, though it is not clear what the central bank will say in its policy statement.

Exxon Mobil, oil producing giant, reported Q4 profit of $1.71 a share on revenue growth, exceeding estimates of $1.44 a share.

On the merger-and-acquisitions front, Citigroup and investor Cerberus Capital Management may bid between $11.5 billion and $15 billion for the profitable General Motors Acceptance Corp. unit of General Motors Corp.

Colony Capital and Saudi Prince Alwaleed bin Talal agreed to buy Fairmont Hotels & Resorts Inc. for $3.9 billion, or $45 a share, including assumed debt.

GlaxoSmithKline PLC resumed takeover talks of Switzerland's Serono SA at a price of less than the $15 billion that the biotech's management originally wanted.

Dow Jones futures were recently lower 18 points, S&P 500 futures were recently down 1.8 points, and Nasdaq 100 futures were off 1 point.

ECONOMIC NEWS

Monday morning, the Department of Commerce released its report on personal income and spending in the month of December. The report showed that spending rose slightly more than expected while income rose in line with economist estimates.

The Commerce Dept. said that personal spending rose 0.9 percent in December following an upwardly revised 0.5 percent increase in November. Economists had expected spending to rise 0.8 percent compared to the 0.3 percent growth originally reported for November.

The report also showed that personal income rose 0.4 percent in December, matching the increase seen in the previous month. As mentioned above, the personal income growth came in line with economist estimates.

With personal spending outpacing personal income, personal saving as a percentage of disposable personal income was a negative 0.7 percent in December, compared with a negative 0.2 percent in November.

Additionally, the Commerce Dept. said that its price index for consumers was unchanged in December after falling 0.4 percent in November. Excluding food and energy prices, the index rose 0.1 percent in December following a 0.2 percent increase in the previous month.

On an annual basis, the index rose 2.8 percent in December, the same as in November. The core index rose at an annual rate of 1.9 percent for the third consecutive month.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks closed in the positive with only four bourses actively trading on Monday as many regional markets were closed for the Lunar New Year holiday. The Nikkei continued to build on the strong Friday finish when it hit a five-year high of 3.6%. The index rose 1.3% in the morning but later rebounded to close up 0.55%. Australia’s All Ordinaries gained 0.5%, Manila’s PSE advanced 0.47%, while Singapore Straits Times ended flat.

European stocks lost ground Monday morning, following a strong performance Friday when a merger deal in the steel sector provided a boost. Stocks turned mixed amid disappointing reports from two major French companies. The German DAX 30 edged up 0.1%, the French CAC 40 declined 0.2%, and London’s FTSE 100 inched down to 0.04%.

OIL, METALS, CURRENCIES

Crude oil prices declined ahead of a closely watched OPEC meeting, despite the continuous tensions in Nigeria and Iran. Light sweet crude for March delivery fell 14 cents to $67.62 a barrel. Heating oil was flat at $1.8069 a gallon, while natural gas gained 29 cents to $8.795 per 1,000 cubic feet. London Brent lost 29 cents to $65.95.

European gold prices climbed on political worries. In London gold traded at the fixed price $560.80, up from $556.95. In Zurich the precious metal traded at $559.93, up from $557.30. Silver opened at $9.64, up from $9.57.

The U.S. dollar advanced against other major currencies. The euro was quoted at $1.2090, down from $1.2105. The dollar bought 117.59 yen, up from 117.27. The British pound stood at $1.7655, down from $1.7678.

EARNINGS NEWS

J.B. Hunt Transport Services, ((JBHT)), trucking company, reported Q4 net income of 41 cents a share, nearly three times up from 12 cents a share in the year-ago period, beating analysts’ forecast for earnings of 36 cents a share.

Exxon Mobil, ((XOM)), oil company, reported Q4 net income of $1.71 a share, up from $1.30 a share a year ago on revenue growth. If not for special items, the company would have earned $1.65 a share.

Sealed Air Corp, ((SEE)), packaging company, reported Q4 net income of 77 cents a share, more than double from 33 cents a share in the year-earlier period, beating analyst estimate of 74 cents a share. The company said sales in Q4 advanced 6% to $1.08 billion from $1.02 billion. Sealed Air also initiated a quarterly cash dividend of 15 cents a share and added it expects 2006 earnings of $2.90 to $3.10 a share.

Schering-Plough, ((SGP)), manufacturer of pharmaceutical and health care products reported that it reversed to a Q4 profit of 7 cents a share, up 13% from a net loss of 58 cents a share in the year-ago on 6% revenue growth including sales from its cholesterol joint venture with Merck & Co. Analysts were expecting earnings of 8 cents a share.

Kinetic Concepts Inc, ((KCI)), healthcare device manufacturer, reported that Q4 net earnings advanced 36% to 64 cents a share on 18% revenue growth, beating analyst estimate of 61 cents a share. The company stated that increased revenue from its V.A.C. wound treatment was mainly responsible for the earnings growth.

Smith International Inc., ((SII)), oil and gas industry services company, reported an 11% rise in Q4 profit to 44 cents a share on 26% revenue growth. If not for a penny a share charge on a patent settlement, its results came in beat estimates of 43 cents a share.

Olin Corp, ((OLN)), metals and chemicals company, reported Q4 net income of 45 cents a share, up from 32 cents a share in the year-earlier quarter, topping analyst estimate of 28 cents a share. The company announced sales increase to $604.1 million from $487.3 million a year ago. The company said it beat its own projected forecast of earnings per share of 25 cents due primarily to the recovery of environmental expenses and related expense.

Eastman Kodak Co, ((EK)), consumer, professional, health and other imaging products company, reported a Q4 loss of 18 cents a share, narrower from a loss of 20 cents a year-ago, missing analysts’ expectations of a profit of 39 cents a share. On a continuing operations basis, company posted a loss of 50 cents a share. Sales in Q4 increased to $4.2 billion from $3.76 billion in Q4 last year.

Cummins Inc, ((CMI)), engine manufacturer, reported Q4 net income of $3.31 a share, up from $2.41 a share in the year-ago period beating analyst estimate of $3.11 a share. Sales at the company in Q4 advanced 17% to $2.75 billion from $2.35 billion. In Q4 the company benefited 26 cents a share, a gain on a tax issue.