However, including stock-based compensation, payroll taxes and income tax adjustment, Facebook lost 8 cents per share compared with earnings of 11 cents per share in the year-ago quarter.
Quarter Details
Facebook's revenue jumped 32.3% year over year to $1.18 billion, slightly ahead of the Zacks Consensus Estimate of $1.15 billion. The year-over-year growth was driven by strong advertising revenue (84% of the total revenue) that climbed 28% year over year to $992.0 million. Facebook generated the rest of the revenue from payments & other fees in the quarter.
The strong upside in advertising revenues was primarily driven by an 18% increase in the number of ads delivered based on growth in the user base and an increase in average number of ads per page from the prior-year period.
However, strong growth in mobile user base continued to hurt Ad impressions, particularly in the US, where number of ads delivered decreased 2.0% year over year in the quarter.
Average price per ad increased 9.0% year over year, primarily aided by a 20% increase in CPMs in US due to the roll out of sponsored stories in news feed during the quarter for PC and mobile users. Price per ad growth was also strong in Asia and rest of the world, which fully offset a decline in Europe.
Monthly Active Users (MAU) improved 29% year over year to 955 million at the end of June 30, 2012. Mobile MAUs surged 67.0% year over year to 543 million at the end of quarter. During the same period, Daily Active Users (DAU) increased 32.0% year over year to 552 million.
Average revenue per user (ARPU) was $1.28 in the quarter, up double-digits in the US, Asia and rest of the world. ARPU grew 8.0% in Europe in the quarter.
However, this healthy growth in revenue and user base was partially offset by higher costs and operating expense in the quarter, particularly due to stock-based compensation, which totaled $1.3 billion in the quarter. Excluding this effect, operating expenses shot up 60.0% year over year to $669.0 million, driven by headcount growth and costs incurred related to infrastructure development.
Facebook's operating income increased 8.0% year over year to $515.0 million. However, including stock-based compensation and payroll-tax expenses related to share based compensation, the company reported an operating loss of $743.0 million.
Net Income was up 3.5% year over year to $295.0 million. However, including stock-based compensation, payroll-tax expenses related to share-based compensation and income tax adjustments, the company reported net loss of $157.0 million in the quarter.
Facebook ended the quarter with cash & cash equivalents of 10.19 billion. The company generated $242.0 million as cash flow from operations in the quarter.
Outlook
Facebook expects operating expenses to increase at a much faster rate compared to the second quarter in the second half of this year. The company expects steep rise in research & development expenses mainly due to continued investments in product development for mobile segment and infrastructure.
Our Take
We believe that Facebook has significant growth opportunities from increasing online advertising spending as compared to traditional formats. Facebook's massive user base and its ability to track personal details over time make it a formidable force in the online ad market. Facebook can use this massive database to help advertisers target relevant ads going forward.
However, increasing competition is the primary headwind for Facebook over the long term. Besides competition from Google+, Twitter, Orkut in its core markets, Facebook is also competing against small regional platforms, which not only limit its expansion opportunities but also hurt its profitability.
Facebook is facing significant competition in the display advertising market from Google ( GOOG ). Rising concerns over the effectiveness of Facebook ads as compared to Google's AdSense has been a headwind lately. As per eMarketer, Google is set to grab the #1 position in the display ad market by the end of 2013. We believe that Google's increasing popularity has the potential to limit Facebook's ad revenue growth going forward.
Further, Facebook's popularity is based on the engaging apps from its third-party developers, particularly Zynga ( ZNGA ). However, Zynga's narrow product portfolio has been primarily blamed for a waning interest in social games on the platform. Zynga's low-paying customer base and stiff competition from other established players are also hurting its top line. This does not bode well for Facebook, as the company earns the majority of its non-ad revenue from Zynga.
Apart from increasing competition, lack of visibility around mobile monetization remains a concern. Although Facebook has made a number of acquisitions (such as Snaptu, Instagram) to enhance its mobile offerings, we believe that lack of adequate ad coverage for the mobile platform will continue to hurt its revenue earning capacity going forward. Moreover, continued investments to expand mobile offerings are expected to hurt margins in the near term.
We remain Neutral over the long term (6-12 months). Currently, Facebook has a Zacks #3 Rank, which implies a Hold rating in the near term.
( Nasdaq )
Below is the press release
WSI Industries, Inc. today reported sales for its fiscal 2012 third quarter ending May 27, 2012 of $9,483,000 versus the prior year amount of $6,532,000, or an increase of 45% over the prior year quarter. Year-to-date sales for the nine months ended May 27, 2012 totaled $22,491,000, an increase of 27% versus $17,742,000 in the prior year.
The Company also reported net income of $598,000 or $.21 per diluted share for the fiscal 2012 third quarter which was an increase of 51% over the prior year quarter amount of $397,000 or $.14 per diluted share. Year-to-date income also rose with the Company reporting fiscal earnings of $874,000 or $.30 per diluted share versus $559,000 or $.19 per diluted share in the prior year which represented an increase of 56%.
Benjamin Rashleger, president and chief executive officer, commented: "We are very pleased to report on our fiscal 2012 third quarter results that have both sales and income at their highest levels in the last decade. Not only do our fiscal third quarter sales represent an increase of 45% over the prior year quarter, they also exceed any quarter in the last 10 years by over $2 million. Our bottom line profit results also improved with the fiscal 2012 third quarter at $.21 per diluted share equating to a 51% increase over the prior year quarter, which is also at the highest level in the last 10 years." Rashleger continued: "Our sales growth came from both of our core businesses of recreational vehicles and energy. Our recreational vehicle revenues increased by 38% over the prior year third quarter while our energy business increased by 91%. In particular, our shale fracturing business sales increased a little under four fold in the fiscal 2012 third quarter over the prior year quarter" Rashleger concluded: "We remain very positive about our business as we wrap up fiscal 2012 and are optimistic that fiscal 2013 will show continued improvements. Our customers are clear leaders in their industries, and we have made significant investments in equipment and personnel over the past couple of years to support their growth as we increase our business with them. We look forward to building on our success with continued expansion of our business and by staying focused on the execution of our strategy of partnering with key leaders across industries, and providing them with a superior value and the highest quality service."
The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. The dividend will be payable July 19, 2012 to holders of record on July 5, 2012.
WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense markets.
The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company's ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company's filings with the Securities and Exchange Commission.
WSI Industries, Inc. today reported sales for its fiscal 2012 third quarter ending May 27, 2012 of $9,483,000 versus the prior year amount of $6,532,000, or an increase of 45% over the prior year quarter. Year-to-date sales for the nine months ended May 27, 2012 totaled $22,491,000, an increase of 27% versus $17,742,000 in the prior year.
The Company also reported net income of $598,000 or $.21 per diluted share for the fiscal 2012 third quarter which was an increase of 51% over the prior year quarter amount of $397,000 or $.14 per diluted share. Year-to-date income also rose with the Company reporting fiscal earnings of $874,000 or $.30 per diluted share versus $559,000 or $.19 per diluted share in the prior year which represented an increase of 56%.
Benjamin Rashleger, president and chief executive officer, commented: "We are very pleased to report on our fiscal 2012 third quarter results that have both sales and income at their highest levels in the last decade. Not only do our fiscal third quarter sales represent an increase of 45% over the prior year quarter, they also exceed any quarter in the last 10 years by over $2 million. Our bottom line profit results also improved with the fiscal 2012 third quarter at $.21 per diluted share equating to a 51% increase over the prior year quarter, which is also at the highest level in the last 10 years." Rashleger continued: "Our sales growth came from both of our core businesses of recreational vehicles and energy. Our recreational vehicle revenues increased by 38% over the prior year third quarter while our energy business increased by 91%. In particular, our shale fracturing business sales increased a little under four fold in the fiscal 2012 third quarter over the prior year quarter" Rashleger concluded: "We remain very positive about our business as we wrap up fiscal 2012 and are optimistic that fiscal 2013 will show continued improvements. Our customers are clear leaders in their industries, and we have made significant investments in equipment and personnel over the past couple of years to support their growth as we increase our business with them. We look forward to building on our success with continued expansion of our business and by staying focused on the execution of our strategy of partnering with key leaders across industries, and providing them with a superior value and the highest quality service."
The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. The dividend will be payable July 19, 2012 to holders of record on July 5, 2012.
WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense markets.
The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company's ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company's filings with the Securities and Exchange Commission.
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| Optical Cable Corporation |
Below is the Press Release from company
Optical Cable Corporation ("OCC®" or the "Company") today announced financial results for its fiscal second quarter ended April 30, 2012. The Company achieved increases in net sales, gross profit and net income for both the quarter and year-to-date periods, compared to the same periods in fiscal year 2011.
Second Quarter 2012 Financial Results
OCC's consolidated net sales for the second quarter of fiscal year 2012 were the highest in OCC's history -- exceeding the previous quarterly net sales record set in the fourth quarter of fiscal year 2011.
Consolidated net sales for the second quarter of fiscal 2012 increased 28.3% to $22.1 million, compared to consolidated net sales of $17.2 million for the same period last year. The increase in net sales during the second quarter of fiscal 2012 was attributable primarily to increased sales of the Company's fiber optic cable products.
Net sales to customers in the United States increased 20.5% in the second quarter of fiscal 2012, compared to the same period last year, and net sales to customers outside of the United States increased 56.3%. Additionally, the Company achieved an increase in net sales during the second quarter of fiscal 2012 in both its commercial and specialty markets, compared to the second quarter of fiscal 2011.
Gross profit increased 49.1% to $8.9 million in the second quarter of fiscal 2012, compared to $5.9 million in the second quarter of fiscal year 2011. Gross profit margin, or gross profit as a percentage of net sales, increased to 40.2% in the second quarter of fiscal 2012 from 34.6% in the second quarter of fiscal year 2011.
OCC recorded net income attributable to the Company of $949,000, or $0.15 per basic and diluted share, for the second quarter of fiscal 2012, compared to a net loss attributable to the Company of $90,000, or $0.02 per basic and diluted share, for the second quarter of fiscal 2011.
Fiscal Year-to-Date 2012 Financial Results
Consolidated net sales for the first half of fiscal 2012 increased 12.9% to $39.4 million, compared to net sales of $34.9 million for the same period last year. The increase in net sales during the first half of fiscal 2012 was primarily attributable to increased sales of the Company's fiber optic cable products.
Net sales to customers in the United States increased 10.3% in the first half of fiscal year 2012, compared to the same period last year, and net sales to customers outside of the United States increased 20.4%. Additionally, the Company achieved an increase in net sales during the first half of fiscal year 2012 in its commercial markets, but this increase was partially offset by decreases in net sales in its specialty markets.
Gross profit increased 21.4% to $15.0 million in the first half of fiscal 2012, compared to $12.4 million in the first half of fiscal 2011. Gross profit margin increased to 38.1% in the first half of fiscal 2012 from 35.4% in the first half of fiscal 2011.
OCC recorded net income attributable to the Company of $1.1 million, or $0.18 per basic and diluted share, for the first half of fiscal year 2012, compared to $312,000, or $0.05 per basic and diluted share, for the same period in fiscal year 2011.
Best Buy can be a best buy for today's trade.
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| Tata Steel |
Net income, including that of unit Tata Steel Europe Ltd., fell to 4.33 billion rupees ($79 million) in the three months ended March 31 from 41.8 billion rupees a year earlier, the Mumbai-based company said yesterday in a statement. The median profit estimate of 34 analysts in a Bloomberg survey was 8.81 billion rupees. Sales gained 1 percent to 338.6 billion rupees.
The gross domestic product in the 17-nation euro region stagnated in the last quarter, compared with the previous three months, the European Union’s statistics office in Luxembourg said on May 15. Steel demand in the European Union will drop about 2.7 percent this year, Eurofer, the European steel industry lobby group, said on May 7.
Total costs rose 5 percent to 319.1 billion rupees in the quarter, while raw material expenses fell 5 percent to 102.2 billion rupees, the company said. Earnings from sources other than the main business fell 39 percent to 2.22 billion rupees, the company said. Net debt increased to 476.97 billion rupees as on March 31, compared with 466.6 billion rupees a year ago.
Tata Steel shares fell 1.5 percent to 399.95 rupees in Mumbai yesterday. The benchmark Sensitive Index rose 0.5 percent. The earnings were announced after the market closed.
Debt Crisis
Steel deliveries for the quarter fell 6.5 percent to 6.22 million tons, underlining “operational difficulties” and lower demand in Europe because of the continuing debt crisis, Karl- Ulrich Kohler, chief executive officer at Tata Steel Europe, said in a statement.
The company expects production from its European mills to stabilize from January after a new blast furnace at Port Talbot starts production, Kohler said yesterday at a media conference in Mumbai. Lower raw material prices will improve margins for the European business and coal shipments from Mozambique’s Benga project should start this month, Managing Director H.M. Nerurkar said at the conference.
Tata Steel plans to increase output by 1 million tons this fiscal year from its Jamshedpur plant expansion, Nerurakar said. The company is arranging funds for a new plant in the eastern Indian state of Odisha, group Chief Financial Officer Koushik Chatterjee told reporters yesterday in Mumbai.
Tata Steel expects to start the first phase of the annual 3.5 million ton factory in Odisha as early as October 2013, Nerurkar said on April 20.
Fund Growth
The steelmaker has $2.4 billion of cash and cash equivalent and a capital structure that will support its ability to fund growth, Chatterjee said. The company expects to maintain its 1:1 net debt to equity position, he said.
The Indian operations may see a bigger impact of higher railway freight and increase in mineral royalties in this fiscal year, Nerurkar said yesterday.
Hot-rolled steel coil, a benchmark product used in automobiles and buildings, declined 11 percent to $703.50 a ton in the first quarter, compared with $793.70 a year earlier, according to Steel Business Briefing’s global price index. Iron ore, a steelmaking ingredient, averaged 20 percent lower than a year earlier, while coking coal fell 18 percent.
Steel demand in India may rise 8 percent this fiscal year after the nation’s central bank cut interest rates to boost growth, G.K. Basak, executive secretary at the steel ministry’s joint plant committee, said in an April 13 interview.
Global steel use will rise 3.6 percent this year, less than last year’s 5.6 percent increase, as European demand contracts and Chinese use slows, the World Steel Association said on April 27.
Net income for the quarter ended April 30 rose 10 percent to $3.74 billion, or $1.09 a share, from $3.4 billion, or 97 cents, a year earlier, Bentonville, Arkansas-based Wal-Mart said today in a statement. The average of 24 analysts’ estimates compiled by Bloomberg was $1.04 a share.
At a time when a bribery probe in Mexico threatens growth in Wal-Mart’s international operations, Chief Executive Officer Mike Duke is trying to boost U.S. sales by adding items back to shelves and honoring the promise of everyday low prices. The company is working with suppliers to lower costs and pass some of the savings on to consumers.
Same-store sales “likely benefited from the same unseasonably warm winter that aided other retailers in February and March,” Colin McGranahan, an analyst at Sanford C. Bernstein & Co. in New York, said in a research note.
Total revenue rose 8.5 percent to $113 billion.
Wal-Mart rose 1.8 percent to $60.25 at 7:05 a.m. in New York. The shares had fallen 1 percent this year before today.
Sony Corp fell to the lowest level in Tokyo trading since 1980, when the Walkman was new and before it introduced the first compact-disc player, after forecasting profit that lagged behind analyst estimates.
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| Sony Corp |
Sony said it may lose about 80 billion yen selling TVs, a ninth straight year of losses in that business.
The maker of Bravia televisions said yesterday net income may total 30 billion yen ($376 million) in the year started April 1, its first profit in five years. That compared with the 61.4 billion-yen average of 18 analyst estimates compiled by Bloomberg. Sony said it may lose about 80 billion yen selling televisions, a ninth straight year of losses in that business.
“Though Sony’s forecasting growth in revenue and return to profit, it’s still hard to find something that can trigger the stock to rise,” Shiro Mikoshiba, an analyst at Nomura Holdings Inc. in Tokyo with a neutral rating on the shares, said in a report today. “There are uncertainties in demand for TVs, smartphones and digital cameras.”
Sony, which introduced the Walkman portable cassette player in 1979 and the first CD player in 1982, said sales may be 7.4 trillion yen in the current fiscal year.
The Tokyo-based electronics maker, which lost 856 billion yen combined in the past four years, predicted an operating profit of 180 billion yen.
Kazuo Hirai, 51, who took over as chief executive officer last month, is eliminating about 10,000 jobs, or 6 percent of the workforce, at Japan’s largest electronics exporter after losing customers to Samsung Electronics Co. (005930) and Apple Inc. (AAPL) Hirai is turning to mobile devices, games and digital imaging to revive Sony.
Sony predicts selling 17.5 million TVs this year, down from 19.6 million last year, the company said yesterday. Sales of its PlayStation game consoles may drop to 16 million units from 18 million.The world’s No. 3 TV maker has lost about 700 billion yen in the business during the past eight years while losing market share to Suwon, South Korea-based Samsung and Seoul-based LG Electronics Co., both of which make money selling sets. Sony plans to make the business profitable by March 2014.TV ShipmentsGlobal TV shipments last year fell for the first time in six years because of excessive inventory in the U.S. and Europe and the end of Japanese government subsidies for purchases, according to DisplaySearch, part of NPD Group. Shipments fell 0.3 percent to 247.7 million units, the researcher said.“We expect Sony to miss its guidance because projections for the TV unit and the game unit look excessive,” Hideki Yasuda, an analyst at Ace Securities Co. in Tokyo, said in his report today. “The hurdle for Sony to attain its targets for selling game players will be significantly high” given sluggish demand in Japan, the U.S. and Europe.Takashi Watanabe, a Tokyo-based analyst at Goldman Sachs Group Inc., lowered his operating profit forecast for Sony to 140 billion yen from 152.4 billion yen, saying in a report today that Sony’s targets for profit growth in digital cameras, games, batteries and smartphones are “optimistic.”Sony is projecting sales volume of smartphones and portable game players to surge this fiscal year. Smartphone sales will probably rise to 33.3 million units from 22.5 million, the company said yesterday. Handheld players including PlayStation Vita may more than double to 16 million units from 6.8 million, Sony said.Sony is increasing its offerings in the game business. The company began selling the PlayStation Vita in December to lure consumers increasingly turning to iPhones and iPads for entertainment. The Vita was the first major overhaul of the handheld since the PlayStation Portable went on sale in 2004.
Sony predicts selling 17.5 million TVs this year, down from 19.6 million last year, the company said yesterday. Sales of its PlayStation game consoles may drop to 16 million units from 18 million.The world’s No. 3 TV maker has lost about 700 billion yen in the business during the past eight years while losing market share to Suwon, South Korea-based Samsung and Seoul-based LG Electronics Co., both of which make money selling sets. Sony plans to make the business profitable by March 2014.TV ShipmentsGlobal TV shipments last year fell for the first time in six years because of excessive inventory in the U.S. and Europe and the end of Japanese government subsidies for purchases, according to DisplaySearch, part of NPD Group. Shipments fell 0.3 percent to 247.7 million units, the researcher said.“We expect Sony to miss its guidance because projections for the TV unit and the game unit look excessive,” Hideki Yasuda, an analyst at Ace Securities Co. in Tokyo, said in his report today. “The hurdle for Sony to attain its targets for selling game players will be significantly high” given sluggish demand in Japan, the U.S. and Europe.Takashi Watanabe, a Tokyo-based analyst at Goldman Sachs Group Inc., lowered his operating profit forecast for Sony to 140 billion yen from 152.4 billion yen, saying in a report today that Sony’s targets for profit growth in digital cameras, games, batteries and smartphones are “optimistic.”Sony is projecting sales volume of smartphones and portable game players to surge this fiscal year. Smartphone sales will probably rise to 33.3 million units from 22.5 million, the company said yesterday. Handheld players including PlayStation Vita may more than double to 16 million units from 6.8 million, Sony said.Sony is increasing its offerings in the game business. The company began selling the PlayStation Vita in December to lure consumers increasingly turning to iPhones and iPads for entertainment. The Vita was the first major overhaul of the handheld since the PlayStation Portable went on sale in 2004.
StarTek, Inc today announced its financial results for the first quarter ended March 31, 2012. The Company reported first quarter 2012 revenue of $50.9 million and adjusted EBITDA of $1.2 million. As of March 31, 2012, the Company had approximately $10.5 million in cash and cash equivalents and no debt.
Tip :Stock jumped more than 40% intraday and may see more upside.
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| Startek Inc |
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| Infospace Inc |
InfoSpace Inc ( NASDAQ: INSP ) jumped on quarterly earning report and guidance as both were above estimate. Company has acquired TaxACT tax preparation business.
Investment: Stock may be accumulated for investment purpose.
Bellevue, Wash.-based InfoSpace bought the web-based TaxACT business for $287.5 million in cash just before tax season, closing the deal on Jan. 31. Only months before then, TaxACT rival H&R Block Inc. (HRB) was blocked from acquiring the privately held company by the U.S. government over antitrust concerns.
Shares jumped 14% to $12.49 after hours, as InfoSpace beat its first-quarter revenue guidance and reached the high end of its earnings estimates. The stock, which rose initially over the TaxACT acquisition, had slid since mid-March and was roughly flat for the year at Wednesday's close.
"The acquisition of TaxACT in January represents a significant milestone for our company, and substantially diversifies our overall business operations," Chief Executive Bill Ruckelshaus said. "We are pleased with the performance in both our search and tax preparation businesses and feel positive about our combined company growth and profitability outlook."
InfoSpace posted earnings of $11.4 million, or 28 cents a share, up from $1.3 million, or 4 cents a share, a year earlier. Revenue more than doubled to $115.7 million.
The company in February predicted earnings of 24 cents to 29 cents a share on revenue of $109 million to $114 million.
Search revenue in the quarter improved 46% to $75.3 million, while tax preparation revenue from TaxACT was $40.4 million. The company also released preliminary 2011 tax season figures, saying digital do-it-yourself e-filings rose 8% from the year-ago period to 5 million as of April 18.
Gross margin rose to 48.5% from 36.7%.
The company forecast second-quarter adjusted earnings of 40 cents to 44 cents a share on revenue of $92.5 million to $96.5 million
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| Dolby Laboratories Inc |
Dolby, which this week won the naming rights for the theater that hosts the Oscars, said the Microsoft deal won’t add to fiscal 2012 earnings, since the product isn’t expected to ship until the company’s 2013 period. Dolby narrowed its forecast for the current year.
“The profile of the PC segment is materially improved by the Win8 deal and the company is intensifying its focus on new initiatives,” including mobile and other devices that deliver Internet content, Michael Olson, a Piper Jaffray Cos. analyst, said in a note.
Dolby “is still facing headwinds from flat or declining end-market unit shipments in some segments,” said Olson, who rates (DLB) the shares the equivalent of hold.
The company narrowed its full-year sales guidance to as much as $960 million for the year ending Sept. 30. It previously predicted (DLB) revenue of as much as $970 million.
“Dolby Digital Plus on Windows 8 will enable more people to enjoy cinematic sound anytime, anywhere, and on any device,” Ramzi Haidamus, executive vice president, sales and marketing, said in a statement yesterday.
Earnings
Dolby yesterday reported earnings excluding certain items of 91 cents a share for the second quarter, ended March 30. That topped the average estimate of 81 cents a share from analysts in a Bloomberg survey. Revenue increased 4 percent to $260.3 million. Analysts had predicted $253.1 million.
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| Body Central Corp |
Trade Tips : Body Central Stock will see more downside later today as well as in next trading session. trader may buy it at the end of second trading session from now and expect a little bounce back.
Below is the press release from reuters:
"We continue to see softness in overall store sales trends through April," Chief Executive Allen Weinstein said.
The company expects second-quarter comparable store sales to fall 5 percent to 7 percent, compared with a 15 percent rise in the year-ago period.
The company said it expects to earn 26 to 28 cents per share, on revenue of $80 million to $82 million in the second quarter.
Analysts were expecting earnings of 36 cents a share on revenue of $86.6 million, according to Thomson Reuters I/B/E/S.
The company posted first-quarter results that met Wall Street view of 36 cents per share. Revenue was $82.7 million, slightly above analysts' average expectation of $82.1 million.
The company's shares were down $8.72 in after-market trade. They had closed at $28.92 on Thursday on the Nasdaq.
"We continue to see softness in overall store sales trends through April," Chief Executive Allen Weinstein said.
The company expects second-quarter comparable store sales to fall 5 percent to 7 percent, compared with a 15 percent rise in the year-ago period.
The company said it expects to earn 26 to 28 cents per share, on revenue of $80 million to $82 million in the second quarter.
Analysts were expecting earnings of 36 cents a share on revenue of $86.6 million, according to Thomson Reuters I/B/E/S.
The company posted first-quarter results that met Wall Street view of 36 cents per share. Revenue was $82.7 million, slightly above analysts' average expectation of $82.1 million.
The company's shares were down $8.72 in after-market trade. They had closed at $28.92 on Thursday on the Nasdaq.
MF Global Holdings Inc ( NYSE : MF ) loose as much as 47% in tuesday's trading session as company announced a second quarter loss.
MF Global (NYSE: MF) opened at $3.31. Over the last 52 weeks the stock has ranged from a low of $3.48 to a high of $9.28. The stock dove after the company reported a loss for its second quarter. Option players also flocked to the stock and volume was 24.63 times normal with 22,879 contracts changing hands. More than 71% of Tuesday's volume was in puts. Technical indicators for the stock are and S&P does not currently have a STARS rating for MF. If you are looking for a hedged play on MF the stock seems like it could be a candidate for a December out-of-the-money bear-call credit spread above the 3 range
Amazon Inc ( NASDAQ: AMZN ) was down more than 4 % in regular trading session on Tuesday and loose as much as 15 % in after hours trade. Traders and Investors are betting that company's profit is deteriorating as company announced 73 % less profit in Q3 and issued a guidance below analysts' expectations. Stock was hit hard and close after hour session at $198.89, more than 12 % down after market close.
More bearish bets have been made on this online e commerce company and might see more down side as sentiment might worsen about this particular stock.
Below is the news release:
The earnings decline was far worse than Wall Street had expected from the e-commerce giant. That — along with a weak profitability forecast for the fourth quarter — sparked a sell-off in after-hours trading that pinched about 12% from the company’s stock, which had already slipped more than 4% in the regular session to close at $227.15.
Colin Sebastian of Robert W. Baird said the fact that Amazon’s missed Wall Street’s earnings target is not new, but noted that revenue results also came in slightly below analysts’ forecasts — a change from previous quarters.
“The lack of upside in revenue combined with guidance that looks pretty conservative is going to pressure the stock for the time being,” Sebastian said in an interview.
For the period ended Sept. 30, Amazon AMZN -12.44% reported net income of $63 million, or 14 cents a share, compared to net income of $231 million, or 51 cents a share, for the same period the previous year.
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Revenue jumped 44% to $10.88 billion.
Analysts were expecting earnings of 24 cents a share on revenue of $10.95 billion for the quarter, according to consensus forecasts from FactSet Research.
The company reported operating income of $79 million for the quarter, a drop of 70% from last year’s third quarter and well below Wall Street’s forecast of $149.7 million. That put operating margin for the period at a relatively anemic 0.7%. Operating expenses jumped by 48% for the quarter.
Amazon added about 8,100 workers during the quarter, which Sebastian noted as a significant growth in the company’s headcount, which now numbers 51,300 workers.
“This fast pace of growth is costing Amazon a lot of money,” Sebastian said. “No one is going to really challenge Amazon, but the pace of their growth may be in question. In this environment, at this multiple, that’s not good enough.”
The company said Tuesday that it is adding a total of 17 fulfillment centers this year, up two from its previously disclosed plan. Fulfillment expenses soared by 65% in the third quarter, with a 74% gain in expenses related to technology and content.
For the fourth-quarter, Amazon projected a revenue range of $16.45 billion to $18.65 billion, compared to Wall Street’s forecast of $18.15 billion.
“We don’t view these results as thesis-changing,” Citi analyst Mark Mahaney wrote in an email, noting that Amazon s spending “seems clearly elective/discretionary/offensive against very large market opportunities.”
But he added that “we are surprised that the Q4 revenue guide isn’t more robust.”
The profitability line for the fourth quarter is expected to come in between an operating loss of $200 million and operating earnings of $250 million, implying a targeted operating margin range of 1.3% at the top end of the forecast. Analysts had been expecting an operating margin of 2.7% for the period.
Amazon is planning to launch its new Kindle Fire tablet in the middle of the fourth quarter. Analysts generally expect the device to boost sales, but its low price tag of $199 has some concerned that it may pressure margins even more during the crucial holiday period.
Scott Devitt of Morgan Stanley says he currently expects Amazon to sell about 2.8 million units of the tablet in the fourth-quarter. “Short of material disruption of the business model in the seasonally strongest quarter of the year, we believe the guidance is light provided the sales impact of the Kindle Fire,” he wrote in a report Tuesday afternoon. ( Source: MarketWatch )
Apple delivered another blowout quarter, soaring past analysts' expectations for both earnings and revenue as sales of iPads nearly tripled.
It was at least the 9th straight quarter that the company smashed Wall Street's expectations.
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| Apple Inc |
"They totally did it again. They totally crushed it. It's amazing because usually when you see a quarter this strong, it's usually around the holiday period in the December quarter," said Shaw Wu, an analyst at Sterne Agee. "For them to produce such strong results in the June quarter, it's remarkable, in light of the economy we are in. It looked like all the areas were stronger than expected except for the iPod."
Apple reported its earnings excluding items more than doubled to $7.79 a share in its fiscal third quarter from $3.51 a share in the year-earlier period.
Revenue shot up 82 percent to $28.57 billion from $15.7 billion in the year-earlier period.
Analysts had expected Apple to report earnings of $5.85 a share on revenue of $24.9 billion.
Sales of iPads and iPhones were strong during the quarter: The company said it sold 9.25 million iPads during the quarter, nearly triple the amount it sold a year earlier. IPhone sales more than doubled to 20.34 million. Mac sales increased 14 percent to 3.95 million units.
Cash flow more than doubled to $11.1 billion, the company said.
The company, known for its conservative guidance, said it expects earnings of $5.50 a share on revenue of $25 billion for the current quarter.
Apple's earnings report comes after news that Apple would delay the release of the iPhone 5. Apple typically releases a new version of the iPhone each June, bringing high traffic to stores.
Shares of the world's most valuable technology company have emerged from the limbo they had fallen into since Chief Executive Steve Jobs took leave last January for unspecified medical reasons. The stock price has gained nearly 19 percent since hitting a year low on June 20. The rally has added $54.8 billion to Apple's market cap since then.
IBM beat earnings expectations and raised its full-year guidance, helped by strong sales of its computers and software. Its shares rebounded in after-hours trading.
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| IBM Inc |
The tech company reported earnings excluding items rose to $3.09 from $2.61 a share in the year-earlier period.
The company also said signings of new business at its services division surged more than expected during the second quarter, and raised its full-year guidance by 10 cents to $13.25 a share; analysts had expected $13.22 a share.
Revenue for the quarter increased 13 percent to $26.67 billion from $23.72 billion a year ago. IBM said it logged double-digit percent increases for sales of hardware, software and services.
Analysts had expected IBM to report earnings of $3.03 a share on revenue of $25.3 billion, according to Thomson Reuters.
"IBM's results in my view satisfied my expectations as a shareholder and as I look for the balance of the earnings reports this week, I think it's going to set a pretty good tone," said Keith Wirtz, president and chief investment officer of Fifth Third Asset Management. "It was a solid report. They not only exceeded expectations on the top line, they exceeded expectations on the net ... Backlog on the services side was better than expected."
The resulted included a one-time charge of 10 cents a share for the amortization of purchased intangible assets and other acquisition-related charges, as well as a one-time gain of 1 cent a share for changes related to fluctuations in its retirement plan holidings due to market activity.
Net income rose to $3.66 billion, or $3 a share, from $3.39 billion, or $2.61 a share, in the year-earlier quarter.
The company's gross profit margins increased nearly 1 percent to 46.4 percent.
Signings for new business, a gauge closely watched by analysts, rose 16 percent to $14.3 billion. That eased investor concerns after the number dropped in the first quarter.
Deutsche Bank had said in a research note that Wall Street expectations were for signings of $12 billion to $13 billion.
Investors believe that signings is a key indicator of future profits. But IBM says the focus should be more on total backlog of business, which grew by $15 billion during the quarter to $144 billion.
IBM shares ended slightly lower in regular trading Monday, but rebounded after the company's earnings report. Click here for the latest after-hour quotes for IBM here.
IBM's results came after a strong report from chip giant Intel that showed consumers and enterprises have been spending more on tech services.
The new version of Microsoft Office will also hit the markets in a few weeks and could spark an increase in buying from corporate clients for IBM.
Citigroup profits surged in the second quarter, smashing Wall Street estimates and sending shares higher before the market's open, even though the bank's revenue was essentially flat from the previous year.
Citigroup's second-quarter net income rose 22 percent to $3.3 billion as the bank lost less money on bad loans. Earnings per share came in at $1.09, topping estimates of 96 cents a share. A year ago, the company earned 90 cents a share.
Shares gained 3 percent in premarket trading.
The financial services group reported $16.3 billion in revenue, slightly lower than the previous year due to a revenue drop at Citi Holdings, the unit devoted to ridding the company of its toxic assets.
According to Thomson Reuters, analysts expected Citigroup to earn 96 cents a share on revenue of $1.98 billion.
It was the sixth consecutive quarterly profit for Citigroup, which needed $45 billion in U.S. bailouts to survive the financial crisis.
"Revenues were higher than we expected. The actual reserve release came in below expectations," Anthony Polini, analyst at Raymond James, told CNBC. "So the quality of earnings given a little lower tax rate seems to be better than the prior quarter."
Profit growth had come mainly from the bank setting aside less money to cover bad loans, which is not a source of profits long term.
Since December, when the U.S. government sold off the last of its common share stake in Citigroup, Chief Executive Vikram Pandit has been trying to show investors that the bank can move beyond recovery to growth.
"Citi achieved another solid quarter of operating performance as we continue to execute our strategy," Pandit said in a statement.
Boosting business has been difficult this year for most US banks, as weak fixed-income trading and market volatility weighed heavily on Citigroup and its main rivals.
JPMorgan Chase said on Thursday that bond trading revenue fell in the second quarter, though the drop-off was not as bad as some investors had feared.
The two earnings beats come as financials have vastly underperformed the rest of the market through the year and expectations have been low.
"There's got to be a crowded trade on the upside down the road," Polini said in general of the banks, on which he has a strong buy rating. "They're being killed not by the fundamental outlook but by the regulatory, political and macro uncertainty. If you believe those clouds will thin these are great buying opportunities."
This year, Pandit has tried to rebuild Citigroup's investment bank, which lost talent, business and reputation during the crisis. Since taking over the bank at the start of the crisis, he has shed assets and tried to refocus Citigroup on its main banking businesses.
This spring Citigroup reinstated a nominal dividend, after shrinking its outstanding share count with the 1-for-10 reverse split.
Investors remain skeptical that the bank's recovery is completely over.
Citigroup's shares have fallen more than 13 percent since the split took effect, and closed down 1.1 percent at $39.02 on Thursday.
© 2011 CNBC.com
Talbots Inc ( NYSE: TLB ), company has reported quarterly earnings with a net profit of 1 cent a share compared with 12 cents a share same quarter last year. Company's net profit continued declined YoY and stock took a hit of more than 37 %.
Below is the quarterly earnings report
Earnings Per Share of $0.01; Adjusted Earnings Per Share of $0.08
Operating Income of $3.2M; Adjusted Operating Income of $7.6M
Company Comments on Second Quarter
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| Talbots Inc |
The Talbots, Inc. (NYSE:TLB) today reported results for the quarter ended April 30, 2011.
First quarter income from continuing operations was $0.9 million, or $0.01 per share, compared to last year’s loss from continuing operations of $7.1 million, or $0.12 per share.
Adjusted first quarter income from continuing operations was $5.3 million, or $0.08 per share, excluding special items of $4.4 million, or $0.07 per share, compared to last year’s adjusted income from continuing operations of $21.7 million, or $0.38 per share.
A full reconciliation of GAAP to non-GAAP (“adjusted”) items is included with this release.
Trudy F. Sullivan, Talbots President and Chief Executive Officer, commented, “Our first quarter performance reflects an inconsistent customer response to our merchandise assortments, a challenging competitive environment and high levels of promotional activity. Although we did see a positive customer reaction to our March brand moment, our February and April brand moments underperformed and sales in each month of the quarter decreased year over year.”
“We have been vigorously addressing our challenges, while continuing with the implementation of our key long-term initiatives. Our focus has been on directing our merchandise strategies to deliver a stronger balance of classic versus fashion forward styles in our assortments and implementing broader based marketing initiatives that better connect with our core and target customers to drive top-line growth.”
First Quarter 2011 Operating Results:
Operating income was approximately $3.2 million, compared to prior year’s operating income of $2.9 million.
Adjusted operating income, excluding special items of $4.4 million, was $7.6 million, a decrease of $24.1 million, compared to prior year’s adjusted operating income of $31.7 million.
Net sales decreased 6.0% to $301.3 million, compared to $320.7 million in the same period last year.
Consolidated comparable sales decreased 7.7%. Beginning with the first quarter 2011, the Company will report consolidated comparable sales inclusive of its direct marketing channel, which includes Internet, catalog and red-line sales. Consolidated comparable sales exclude stores scheduled to close under the Company’s store rationalization plan. Two years of comparable prior year periods have been prepared and are available on the Company’s website under “Investor Relations/Financial Highlights.”
Store sales decreased 6.5% to $240.8 million, compared to $257.6 million in the same period last year. Comparable store sales decreased 8.2% in the first quarter of 2011, excluding stores scheduled to close under the Company’s store rationalization plan.
Direct marketing sales, including Internet, catalog and red-line, decreased 4.0% in the quarter to $60.5 million, compared to $63.1 million in the same period last year.
Cost of sales, buying and occupancy as a percent of net sales increased 800 basis points to 64.4% compared to 56.4% last year. This increase is primarily due to an 880 basis point deterioration in merchandise margin, resulting from higher levels of markdowns and promotional activity. The increase was partially offset by an 80 basis point improvement in buying and occupancy expenses as a percent of net sales.
Selling, general & administrative (SG&A) expenses as a percent of net sales decreased 60 basis points to 33.1%, reflecting an $8.3 million decrease in SG&A expenses over the prior year period. This dollar decrease was due primarily to the reduction of certain components of performance-based management incentive compensation.
Total inventory increased 13.1% to $177.1 million, compared to $156.7 million in the same period last year, due to lower than anticipated sales volume in the quarter and a planned increase in spring receipts.
Total outstanding debt was $86.8 million, a decrease of $7.3 million compared to $94.1 million in the same period last year.
In the first quarter, the Company opened 6 Talbots upscale outlets, closed 6 Talbots stores and ended the period with 568 stores, including 34 Talbots upscale outlet stores.
In line with its previously announced plans to close approximately 90 to 100 stores and to consolidate and/or downsize approximately 15 to 20 stores over two years, the Company announced that it plans to close approximately 110 stores in total, including 13 consolidations. Approximately 83 stores are expected to close in fiscal 2011, approximately 25 stores are planned for closure in fiscal 2012 and approximately 2 stores are planned to close in fiscal 2013. The 110 stores that are planned for closure contributed approximately $21.0 million in sales and $4.0 million in operating loss in the first quarter of 2011, including $2.0 million in restructuring charges and $1.2 million in impairment of store assets. This compares to last year’s first quarter contribution of approximately $22.9 million in sales and approximately $2.5 million in operating income. There were no restructuring and impairment charges attributable to these stores in the first quarter of 2010.
For its first group of stores that are scheduled to close by the end of August, the Company has commenced its enhanced targeted marketing program designed to support the transfer of customer spend to other stores in the same markets or to its direct channel.
Second Quarter 2011 Comments
Second quarter-to-date sales and customer traffic continue to trend negative, with top-line sales to date down approximately low-teens compared to the same period last year. The Company expects high levels of promotional and markdown activity to continue throughout the second quarter, resulting in an expected increase in cost of sales, buying and occupancy as a percent of net sales of approximately 1,000 basis points compared to the same period last year. Selling, general and administrative expenses on a dollar basis are expected to increase slightly from the prior year second quarter, due in-part to continued incremental marketing investments.
Ms. Sullivan concluded, “We expect second quarter sales and gross margin will be significantly below last year, resulting from high promotional and markdown activity as we work to clear slower moving goods and better position ourselves for fall. As previously stated, fiscal 2011 will be a transition year and as we move forward in our turnaround efforts this year, our financial flexibility and liquidity are expected to fully enable us to support our anticipated working capital needs and the implementation of our strategic initiatives.”
The above outlook is based on the Company’s internal assumptions and estimates, is subject to its accompanying forward-looking statement and is not a guarantee of future performance or financial condition.
RADA Electronic Industries Announces 2011 First Quarter Results:
Company reported a net profit of $393,000, or $0.04 per share, for the first quarter of 2011 compared to a net loss of $518,000 or $0.06 per share, for the first quarter of 2010. stock soars more than 18 % to $ 3.95.
Below is the News Release:
NETANYA, Israel, May 31, 2011 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) announced today its financial results for the quarter ended March 31, 2011.
2011 First quarter highlights include:
Revenues of $7.8 million, a 72% increase compared to the first quarter of 2010.
Operating Profit of $543,000.
Net Profit of $393,000 compared to a net loss of $518,000 for the first quarter of 2010.
2011 First quarter Results
Revenues increased by 72% to $7.8 million from $4.5 million in the first quarter of 2010. The increase is attributed mainly to projects being executed for Latin American customers.
Gross Profit increased by 168% to $2.5 million from $929,000 in the first quarter of 2010.
Operating Profit increased to $543,000 compared with a $247,000 loss in the first quarter of 2010.
Financial Expenses totaled $152,000 compared with financial expenses of $279,000 in the first quarter of 2010.
Eltek Reports Net Profit of $788,000 in First Quarter of 2011, Below is the key figures. Stock jumped more than 30 %.
• Revenues increased 22.9% to $11.8 million • Operating profit of $877,000
• Net profit of $788,000
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| Eltek Ltd |
Eltek Ltd (NASDAQ:ELTK), the leading Israeli manufacturer of advanced flex-rigid circuitry solutions, announced today its financial results for the first quarter of 2011.
Revenues for the first quarter of 2011 were $11.8 million, a 22.9% increase over revenues of $9.6 million recorded in the first quarter of 2010.
Gross Profit for the first quarter of 2011 was $2.5 million (21% of revenues), an increase of 139% compared to the gross profit of $1.0 million (10.8% of revenues) in the first quarter of 2010.
Operating Profit for the first quarter of 2011 was $877,000 compared with an operating loss of $559,000 in the first quarter of 2010.
Net Profit for the first quarter of 2011 was $788,000, or $0.12 per fully diluted share, compared with a net loss of $682,000 or ($0.10) per fully diluted share in the first quarter of 2010.
Gordmans Stores Inc ( NASDAQ: GMAN ), stock of the company plunged more than 27 % after company reported quarterly earnings. Although earnings rose 14 % but announced weak outlook for the next quarter. Also, Wells Fargo downgraded company stock from outperform to market perform and lowered its price target to $16-$17 from $17-$19.
Below is the news release:
DOW JONES NEWSWIRES
Gordmans Stores Inc.'s (GMAN) fiscal first-quarter earnings rose 14%, but the regional discount retailer gave a disappointing forecast.
Gordmans, a Midwestern discount retailer that competes with the likes of TJX Cos. (TJX) in selling low-price, name-brand clothing and home decor, predicted current-quarter results below the consensus view. It projected earnings of 10 cents to 11 cents a share on revenue of $116 million to $117 million, versus the respective 20 cent and $123 million estimates from a survey of analysts by Thomson Reuters.
It also lowered its outlook for the year to $1.18 to $1.23 in earnings per share on $553 million to $557 million. In March, it had predicted $1.30 to $1.35 a share and $563 million to $571 million.
For the quarter ended April 30, the company posted a profit of $7.3 million, or 38 cents a share, from $6.4 million, or 39 cents a share, a year earlier. The latest period included 19% more shares outstanding. Revenue increased 5.2% to $117.7 million.
In March, the company predicted earnings of 34 cents to 36 cents a share on revenue of $119 million and $121 million.
Gross margin rose to 47.5% from 47%.
