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Roundup: Intel misses; GM in fast lane
Intel falls shy of earnings estimates as revenue comes in flat with a year ago.
October 15, 2002: 6:36 PM EDT

NEW YORK (CNN/Money) - Intel Corp. Tuesday reported third-quarter profits that rose to 11 cents a share from 10 cents in last year's third quarter but still fell short of Wall Street forecasts. The chipmaker's third-quarter revenue was in the middle of its targeted range of $6.3 billion to $6.7 billion.

General Motors, the world's largest automaker, posted a jump in third-quarter operating profit that topped Wall Street's estimates; Citigroup posted higher third-quarter income Tuesday that topped analysts' estimates, citing strong retail lending results; and Johnson & Johnson reported third-quarter earnings of 60 cents a share, a penny better than estimates.

COMPANIES IN THIS ROUNDUP

Intel

NEW YORK (CNN/Money) -- Intel Corp. Tuesday reported third-quarter profits rose but still fell short of Wall Street forecasts on sales that were flat with a year earlier.

The world's largest supplier of chips for personal computers said earnings excluding acquisition-related charges totaled 11 cents a share, up from 10 cents in last year's third quarter.

At $6.5 billion, Intel's (INTC: Research, Estimates) third-quarter revenue was flat with the year-ago quarter and in the middle of its targeted range of $6.3 billion to $6.7 billion. The company last month narrowed that range from a previous target for revenue between $6.3 billion and $6.9 billion. (more details)

Motorola

CHICAGO (Reuters) -- Motorola Inc. posted a net profit, ending six straight quarters of net losses. The world's second-largest mobile phone maker reported a third-quarter net profit of $111 million, or 5 cents a share, compared with a net loss in the year-ago quarter of $1.4 billion, or 64 cents a share.

Excluding one-time items, it reported an operating profit of 6 cents a share, beating its forecast of 5 cents a share. Analysts were expecting the company to earn 5 cents a share, with estimates ranging from 4 cents to 7 cents, according to First Call.

Sales in the quarter slid 13.5 percent to $6.4 billion from $7.4 billion last year. That was below the company's forecast, which it had reiterated several times, for revenue of $6.7 billion.

(more details)

DoubleClick

NEW YORK (Reuters) -- Internet marketing company DoubleClick Inc. reported a narrower third-quarter loss but said sales declined as it exited core businesses to focus on others with better growth potential.

The company reported a net loss of $62 million, or 46 cents a share, compared with a year-earlier loss of $103.5 million, or 77 cents a share. On a pro forma basis, excluding unusual costs, the company said it earned 5 cents a share.

DoubleClick also said its sales fell to $74.6 million from $92.7 million.

Novellus

SAN JOSE, Calif (Reuters) - Chip-equipment maker Novellus Systems Inc. said "anemic demand" pushed revenue lower in the third quarter amid a slumping microchip industry that has shown few signs of recovery.

The maker of semiconductor production equipment reported net profit of $4.1 million, or 3 cents a share, in the quarter, compared with a year-ago loss of $14 million, or 10 cents a share. Excluding the impact of a debt retirement as well as a tax gain, Novellus said it earned $16.11 million, or 11 cents a share. (more details)

Harley-Davidson

MILWAUKEE (Reuters) -- Harley-Davidson Inc. reported higher quarterly earnings, saying demand for its legendary motorcycles remained robust.

The maker of the heavyweight Fat Boy and Road King touring bikes said its third-quarter net income rose to $165.0 million, or 54 cents a share, from $111.7 million, or 36 cents a share, in the same period a year ago.

Analysts on average expected Harley-Davidson to earn 47 cents a share, in a range of 45 cents to 49 cents, according to First Call.

Capital One

FALLS CHURCH, Va. (Reuters) -- Credit card issuer Capital One Financial Corp. said its quarterly earnings rose as it gained customers through a television and direct mail marketing blitz.

The company said its third-quarter earnings rose to $258.8 million, or $1.13 a share, from$165.3 million, or 75 cents a share, a year earlier. The company also raised its earnings forecast for 2002 and maintained its estimates for 2003. Wall Street analysts on average were expecting earnings of 99 cents a share, according to First Call.

The issuer also said it increased the amount it reserves for bad loans by an additional $133 million in response to regulators, who have drafted new guidelines for credit card issuers.

General Motors

NEW YORK (CNN/Money) -- The world's largest automaker earned $672 million, $1.20 a share, in the third quarter, including operations at Hughes Electronics but excluding other special items. That's up from $473 million, or 85 cents a share, on the same basis in the year-earlier period. Analysts surveyed by earnings tracker First Call had a comparable consensus forecast of 99 cents a share for the period.

GM (GM: Research, Estimates) also said it expects to earn $1.40 a share in the fourth quarter and $6.35 a share for the full year, including results of Hughes but excluding special items. That's better than the company's earlier guidance of $5.60 a share on that basis for the full year. (more details)

Citigroup

NEW YORK (Reuters) -- Citigroup Inc. (C: Research, Estimates), the No. 1 U.S. financial services firm, reported higher third-quarter earnings Tuesday as strong retail lending results offset problem loans and sluggish trading revenue.

The New York-based firm, which is being investigated for alleged conflicts of interest between its research and investment banking units, earned $3.92 billion, or 76 cents a share, in the quarter, up from $3.18 billion, or 61 cents a share, a year earlier. (more details)

Johnson & Johnson

NEW YORK (CNN/Money) -- J&J, the maker of Band-Aids and Tylenol, earned $1.8 billion, or 60 cents a share, up from $1.5 billion, or 50 cents, excluding special items, in the year-earlier period. Analysts surveyed by earnings tracker First Call were forecasting earnings per share of 59 cents.

Johnson & Johnson (JNJ: Research, Estimates) said its revenue for the quarter rose nearly 13 percent to $9.1 billion, which was also slightly ahead of analysts' expectations. (more details)

Gannett

MCLEAN, Va. (Reuters) -- Gannett, which has 22 TV stations in addition to its more than 90 newspapers, including USA Today, said its profit rose to $265.6 million, or 99 cents per share, from $227.1 million, or 85 cents, a year earlier. The year-earlier earnings were adjusted to exclude goodwill amortization..

Analysts on average had expected earnings of 99 cents a share, with estimates ranging from 79 cents to $1.01, according to First Call. Gannett's (GCI: Research, Estimates) operating revenue rose 4 percent to $1.58 billion. Television revenue soared 24 percent, to $184 million, driven by political advertising and automotive ads.

Bank of America

CHARLOTTE, N.C. (Reuters) -- The No. 3 U.S. bank earned $2.24 billion, or $1.45 a share, in the third quarter, up from $841 million, or 51 cents, a year earlier.

Third-quarter 2001 earnings included $1.25 billion in after-tax costs related to exiting the auto leasing and subprime real estate lending businesses.

Wall Street expected Bank of America to earn $1.38-to-$1.45 a share in the quarter, with a mean estimate of $1.41, according to market data firm First Call.

Delta Air Lines

ATLANTA (Reuters) -- Delta, the No. 3 U.S. carrier, reported a third-quarter per share loss of $2.67 on revenue of $3.42 billion, compared with a net loss of $262 million, or $2.13 per share, on revenue of $3.40 billion a year earlier.

Excluding unusual items, the airline reported a loss of $212 million, or $1.75 per common share. According to First Call, Delta (DAL: Research, Estimates) was expected to report a loss of $1.84 per share before extra items, with a range of a loss of $1.75 to $1.95.

The airline also announced it will defer all deliveries of mainline aircraft in 2003 and 2004 and ground all 15 of its MD-11 aircraft. (more details)

Wells Fargo

SAN FRANCISCO (Reuters) -- Wells Fargo, the No. 5 U.S. bank, earned a record $1.44 billion, or 84 cents a share, in the third quarter, up from $1.31 billion, or 75 cents, a year earlier. Wells Fargo said low interest rates spurred its mortgage loan business.

Wall Street expected Wells Fargo (WFC: Research, Estimates) to earn between 82 and 86 cents a share, with a mean estimate of 84 cents, according to analysts polled by data firm First Call.

Fannie Mae

WASHINGTON (Reuters) -- Fannie Mae (FNM: Research, Estimates), the No. 1 U.S. home loan financing company, said Tuesday its third-quarter earnings, excluding one-time items, rose as consumers capitalized on low interest rates and took out more mortgages.

The company, which benefits from being backed by the U.S. government, said it earned $1.63 billion, or $1.62 per share, excluding changes in the value of its investments. That was up from $1.38 billion, or $1.33, a year earlier.

Analysts on average expected earnings of $1.57 per share, with estimates ranging from $1.55 to $1.62, according to First Call.

Charles Schwab

SAN FRANCISCO (Reuters) -- The No. 1 U.S. discount brokerage, which has about 8 million customers, reported third-quarter operating earnings of $96 million, or 7 cents a share, up from $81 million, or 6 cents, a year earlier. Including special items like restructuring charges, the company booked a loss of $4 million.

Wall Street analysts had expected Schwab's (SCH: Research, Estimates) operating results of 7 or 8 cents per share, with an average forecast of 7 cents, according to research firm First Call.

Bank One

CHICAGO (Reuters) -- Bank One said it earned $823 million, or 70 cents a share, in the third quarter, compared with $754 million, or 64 cents a share, in the year-ago quarter.

Wall Street expected Bank One (ONE: Research, Estimates) to earn between 66 and 72 cents a share, with a mean estimate of 70 cents, according to market data firm Thomson First Call.

Forest Laboratories

NEW YORK (Reuters) -- Drugmaker Forest Laboratories said it earned 77 cents per share for its fiscal second quarter, ended Sept. 30, up from 43 cents a year earlier.

Forest (FRX: Research, Estimates) had said two weeks ago it expected to report quarterly earnings of at least 74 cents per share -- 30 percent higher than Wall Street estimates at the time. Since then, analysts raised their views to an average of 74 cents.

State Street

BOSTON (Reuters) -- The financial services firm, which has made several rounds of layoffs this year, said third-quarter earnings rose to $182 million, or 56 cents per diluted share, from $170 million, or 51 cents per diluted share, a year ago.

Wall Street analysts polled by First Call had expected State Street (STT: Research, Estimates) to earn 52-to-59 cents per share, with a mean estimate of 55 cents.

Mellon Financial

PITTSBURGH (Reuters)--Mellon, owner of the Dreyfus Corp. mutual fund firm and an asset manager for institutions and wealthy investors, posted third-quarter profits from continuing operations of $186 million, or 43 cents a share, compared with $178 million, or 38 cents a share, a year ago.

Analysts polled by research firm First Call had expected earnings ranging from 40 cents to 44 cents a share, with a mean estimate of 42 cents. Mellon (MEL: Research, Estimates) also said it was raising its quarterly dividend by 8 percent to 13 cents per share.

L-3 Communications

NEW YORK (Reuters) -- Defense systems firm L-3 Communications said it earned $61.8 million, or 62 cents per share, in the third quarter, up from $33.4 million, or 41 cents, a year earlier. Sales, which were boosted by acquisitions, rose 70.4 percent to $1.05 billion.

Analysts were expecting L-3's (LLL: Research, Estimates) earnings per share to reach 58-to-62 cents, with a mean estimate of 61 cents, according to First Call.

Parker-Hannifin

CLEVELAND (Reuters)--The control systems manufacturer reported net income of $61.0 million, or 52 cents a share, in the fiscal first quarter ended Sept. 30, edging higher than the $60.6 million, or 52 cents a share, in the year-ago period. But revenue rose to $1.59 billion from $1.48 billion.

Analysts had expected the company to report lower earnings of 35 cents-to-46 cents per share, with an average estimate of 41 cents, according to research firm Thomson First Call.

Fifth Third Bancorp

CINCINNATI (Reuters) -- Fifth Third Bancorp said it earned $416.6 million, or 70 cents a share, in the third quarter, compared with $279.4 million, or 62 cents a share, in the year-ago quarter.

Wall Street expected Fifth Third (FITB: Research, Estimates) to earn between 69 cents and 71 cents a share, with a mean estimate of 70 cents, according to market data firm Thomson First Call.

J.B. Hunt

LOWELL, Ark. (Reuters) -- Trucking firm J.B. Hunt said third-quarter profit was $16.8 million, or 42 cents a share, up from $4.5 million, or 12 cents a share, a year earlier.

Wall Street analysts had expected Hunt (JBHT: Research, Estimates) to earn between 31 cents and 41 cents a share, with a mean forecast of 36 cents, according to 11 analysts surveyed by Thomson First Call.

Parametric

NEEDHAM, Mass. (Reuters) -- Parametric posted a fiscal fourth-quarter net loss of $32.2 million, or 12 cents a share, compared with a net loss of $24.9 million, or 10 cents, a year earlier.

The software firm reported an operating profit of $2.6 million, or 1 cent a share, down from a profit of $7 million, or 3 cents a share, a year earlier.

Analysts polled by earnings research firm First Call expected Parametric (PMTC: Research, Estimates) to break even in the fiscal fourth quarter.

Polaris

MINNEAPOLIS (Reuters) -- Recreational vehicle maker Polaris said its third-quarter net income rose to $37.1 million, or $1.57 a share, from $32.2 million, or $1.38, a year earlier. Sales rose 1 percent to $428.0 million from $423.6 million.

Polaris (PII: Research, Estimates) was expected to earn $1.56 a share, with estimates ranging from $1.54 to $1.57, according to First Call. In July, Polaris forecast full-year earnings of $4.30 to $4.40 per share.

Freeport-McMoRan

NEW ORLEANS (Reuters) -- The New Orleans-based company posted net income of $61.5 million, or 39 cents a share for the quarter, up from $4.2 million, or 3 cents, a year earlier.

Analysts' estimates ranged from 25 cents to 40 cents a share, with a mean estimate of 36 cents, according to research firm First Call. Freeport's (FCX: Research, Estimates) revenue rose to $538.7 million from $441.2 million a year earlier.

Pentair

ST. PAUL, Minn. (Reuters) -- The manufacturing firm said it earned $37.3 million, or 75 cents a share, up from $24.7 million, or 50 cents, a year earlier. Revenue fell to $629.3 million from $636.2 million.

Analysts' estimates had ranged from 73 to 77 cents a share, with an average of 75 cents, according to First Call.

Pentair (PNR: Research, Estimates) cut its 2002 earnings-per-share forecast to a range of $2.60-to-$2.65, down from $2.80-to-$2.90, due to economic conditions and a "constrained" growth environment. The First Call estimate is $2.89 a share.

Commercial Metals

DALLAS (Reuters) -- The steel products firm said it earned $9 million, or 31 cents a share, on net sales of $672.6 million in its fourth quarter. For the fiscal year, the company wrote down $3 million relating to fiscal years 1999 to 2002.

Part of the writedown was for a theft and an "apparent" accounting fraud spanning four years at a plant in South Carolina. The other part was for accounting errors related to losses on rebar fabrication and placement jobs at a plant in California, it said. Commercial Metals forecast fiscal 2003 results to be 10 percent to 15 percent below fiscal 2002 results, with a "relatively weak" first half and quarterly results that are likely to be "erratic." It also expects share dilution to cut fiscal 2003 earnings per share.  Top of page




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