Wednesday, November 17, 2010

WMT Posts 3Q; Raises Outlook

Wal-Mart Stores Inc. (WMT) 3Q earnings posted on Tuesday, November 16th, showed a 9.3% increase in profits mainly due to successful international operations and cost controls. However, the company's biggest unit, U.S. same-store sales fell for a sixth straight quarter as the world's biggest retailer contended with still-struggling low-income customers and management changes. WMT posted Net sales for the third quarter were $101.2 billion, an increase of 2.6 percent. Wal-mart income from continuing operations attributable to the quarter was $3.4 billion, up from $3.2 billion in the third quarter last year. Wal-Mart did raise its current-year earnings forecast from $4.08 to $4.12 a share from $3.95 to $4.05 as it projected earnings of $1.29 to $1.33 a share for the fourth quarter. WMT believes they will continue to see driving growth through international operations along with a tax benefit, and predicted that same-store sales growth will turn positive during the period. Wal-Mart shares rose 0.8% premarket, to $54.40.

Wednesday, November 10, 2010

Polo Ralph Lauren Reports 2Q Earnings

Ralph Lauren today reported net income of $205 million, or $2.09 per diluted shared, from $178 million, or $1.75 per diluted share a year earlier. RL beat expectations of $1.71 with the $2.09. Revenue rose 11% to 1.5 billion compared to last year, this beat expectations of the estimated 1.48 billion. The increase in revenue is driven by higher global wholesale sales and growth in retail sales. Higher shipment volumes in the United States and Europe offset the lower wholesale revenue in Japan and the unfavorable effect of currency translation. Retail sales rose 17% to $659 million from $563 million the previous year. Rise in retail sales reflects the newly transitioned Asian operations. Operating expense reported at $1.1 million is up 9% from the prior year. A source of the growth is the costs associated with the new Asian operations. Looking ahead the company expects that as a result of higher than expected second quarter revenues the remainder of fiscal year 2011 will have an increase in revenue in the low double-digit percentage, this includes the foreign currency translation effect. Previously the company had expected mid to high single digit percentage rate. As a response to the higher then expected 2Q Earnings the stock rose 7.29% to $107.95

Tuesday, November 2, 2010

Corning Inc. Reports 3Q Earnings

Corning's net income rose to $785 million, or 50 cents a share up from $643 million, or 41 cents a share a year earlier. Excluding one time items adjusted earnings came in at 51 cents a share, just a penny short of Wall Street expectations.

Revenue rose 8% to $1.6 billion from $1.48 billion. Corning expects that glass prices will fall in the single digits during 4Q year-over-year while sales stay flat.
LCD's continue to be a healthy market although demand has not been up to expectations this year.