Earnings Season Update
Seagate after the bell... ""We are disappointed in our results for the March quarter," said CEO Bill Watkins, Seagate chief executive officer. STK punished afterhours...
"We clearly miscalculated the market, and in this unusually challenging environment failed to deliver the projected results."
Do ya think? Net income plunged almost 50% on falling prices and weak demand for Seagate disk drive products. Lower computer sales, lower semis, lower drives...
Yahoo (YHOO) Q1 gross profit +5% and revenue +7% rising, but net income falling over 10%, stock down afterhours...
#1 Semiconductor Son... Intel net income rising 19% to beat the number, revenue fell only 1% despite lower demand and falling prices. Buried in the subtext...
total microprocessor shipments were SEQUENTIALLY lower as were average selling prices... Intel expects Q2 results to come in FAR BELOW Q1 results...
INTC stock shot up 3% afterhours on this "wonderful" news, then went flat after being digested...
Q1 earnings at IBM up 8%, matching expectations... revenue +7%... their largest unit (hardware) +2% in revenue on "currency fluctuations"
... services division with a Q1 decrease in sales... overall sales growth +4% on currency fluctuations (a weak dollar), IBM up afterhours...
Washington Mutual, reported a 20% drop in net income late Tuesday and a $113 million loss for the company's home loans group partly due to subprime exposure. WaMu is the 3rd largest issuer of Alt-A mortgages ...
Several U.S. regional banks reported weak earnings on Tuesday amid struggles with interest-rate pressures and rising loan losses, including losses from mortgages.
Wachovia (WB 55.14 +1.14) posted a 33% rise in Q1 profits despite Citigroup (C) posting an 11% drop in Q1 profit, as costs related to a plan to cut 17,000 jobs hurt the bottom line.
#5 Wells Fargo & Co. , bucked the trend, boosting profit 11 percent despite its large exposure to mortgages and a $124 million write-off from a decline in the value of some mortgages to higher-risk borrowers.
Earnings fell 2 percent at #6 U.S. Bancorp and 3 percent at #7 SunTrust Banks Inc. SunTrust mortgage profit plunged 90% to $7.5 M, reflecting lower margins on loan sales and higher write-offs for near-prime loans.
M&T Bank Corp. said profit fell 13 %, also hurt by near-prime mortgages. Profit fell 2% at Detroit's Comerica Inc. KeyCorp said Q1 profit rose 21% but cut its full-year profit forecast on interest rate concerns.
Donut holes down... Krispy Kreme Doughnuts (KKD) reported a Q4 net loss of $24.4 M vs a net loss of $37.7 M year prior. System-wide sales for the quarter fell 6.4% compared with a year ago.
Swallowing a pill?... Eli Lilly (LLY) reported a 39% drop in Q1 profit on various charges.. More Coke addicts... Coca-Cola (KO) posted a 14% rise in Q1 net income as unit-case volume saw its highest growth in five years.
Crude up, plastics down... GE Earnings up 2%, but the multinational conglomerate also said that the results were dogged by the sagging sub-prime mortgage industry and weak performances in its industrial and NBC units.
GE industrials unit revenue fell almost 10% as it was hurt by the plastics business, which in turn was affected by rising costs of benzene, a key component of plastics.
Rising fuel costs? Well, ya gotta build trucks to mule all that Coke....Diversified industrial manufacturer Eaton(ETN) announced an increase of 15% in net income per share over Q1 of 2006.
Buried in the subtext... "Our end markets declined slightly more than 1% in the quarter, driven by the decline in the NAFTA heavy-duty truck market.
We continue to anticipate a decline of 3 to 4% in our end markets in 2007, primarily due to the decline in the NAFTA heavy-duty truck market,”
Alright, we know whos building LESS of them....then whose muling the Coke? Trucker Con-Way (CNW) reported Q1 net earnings decline of 28% from the year-ago period...
Werner Enterprises (WERN) said Q1 net income fell 29% as results were hampered by lower freight demand.
Watch the transports, they always lead the industrials... up and down.
"We clearly miscalculated the market, and in this unusually challenging environment failed to deliver the projected results."
Do ya think? Net income plunged almost 50% on falling prices and weak demand for Seagate disk drive products. Lower computer sales, lower semis, lower drives...
Yahoo (YHOO) Q1 gross profit +5% and revenue +7% rising, but net income falling over 10%, stock down afterhours...
#1 Semiconductor Son... Intel net income rising 19% to beat the number, revenue fell only 1% despite lower demand and falling prices. Buried in the subtext...
total microprocessor shipments were SEQUENTIALLY lower as were average selling prices... Intel expects Q2 results to come in FAR BELOW Q1 results...
INTC stock shot up 3% afterhours on this "wonderful" news, then went flat after being digested...
Q1 earnings at IBM up 8%, matching expectations... revenue +7%... their largest unit (hardware) +2% in revenue on "currency fluctuations"
... services division with a Q1 decrease in sales... overall sales growth +4% on currency fluctuations (a weak dollar), IBM up afterhours...
Washington Mutual, reported a 20% drop in net income late Tuesday and a $113 million loss for the company's home loans group partly due to subprime exposure. WaMu is the 3rd largest issuer of Alt-A mortgages ...
Several U.S. regional banks reported weak earnings on Tuesday amid struggles with interest-rate pressures and rising loan losses, including losses from mortgages.
Wachovia (WB 55.14 +1.14) posted a 33% rise in Q1 profits despite Citigroup (C) posting an 11% drop in Q1 profit, as costs related to a plan to cut 17,000 jobs hurt the bottom line.
#5 Wells Fargo & Co. , bucked the trend, boosting profit 11 percent despite its large exposure to mortgages and a $124 million write-off from a decline in the value of some mortgages to higher-risk borrowers.
Earnings fell 2 percent at #6 U.S. Bancorp and 3 percent at #7 SunTrust Banks Inc. SunTrust mortgage profit plunged 90% to $7.5 M, reflecting lower margins on loan sales and higher write-offs for near-prime loans.
M&T Bank Corp. said profit fell 13 %, also hurt by near-prime mortgages. Profit fell 2% at Detroit's Comerica Inc. KeyCorp said Q1 profit rose 21% but cut its full-year profit forecast on interest rate concerns.
Donut holes down... Krispy Kreme Doughnuts (KKD) reported a Q4 net loss of $24.4 M vs a net loss of $37.7 M year prior. System-wide sales for the quarter fell 6.4% compared with a year ago.
Swallowing a pill?... Eli Lilly (LLY) reported a 39% drop in Q1 profit on various charges.. More Coke addicts... Coca-Cola (KO) posted a 14% rise in Q1 net income as unit-case volume saw its highest growth in five years.
Crude up, plastics down... GE Earnings up 2%, but the multinational conglomerate also said that the results were dogged by the sagging sub-prime mortgage industry and weak performances in its industrial and NBC units.
GE industrials unit revenue fell almost 10% as it was hurt by the plastics business, which in turn was affected by rising costs of benzene, a key component of plastics.
Rising fuel costs? Well, ya gotta build trucks to mule all that Coke....Diversified industrial manufacturer Eaton(ETN) announced an increase of 15% in net income per share over Q1 of 2006.
Buried in the subtext... "Our end markets declined slightly more than 1% in the quarter, driven by the decline in the NAFTA heavy-duty truck market.
We continue to anticipate a decline of 3 to 4% in our end markets in 2007, primarily due to the decline in the NAFTA heavy-duty truck market,”
Alright, we know whos building LESS of them....then whose muling the Coke? Trucker Con-Way (CNW) reported Q1 net earnings decline of 28% from the year-ago period...
Werner Enterprises (WERN) said Q1 net income fell 29% as results were hampered by lower freight demand.
Watch the transports, they always lead the industrials... up and down.
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