Monday's Earnings Releases
- Halliburton Net Falls on Drilling Downturn. - Halliburton (HAL) reported second-quarter earnings fell to $274 million, or 30 cents a share, excluding a charge for employee separation costs, as the company said it was impacted by the "steep continued downturn" in drilling activity in North America. Analysts surveyed by Thomson Reuters expected earnings of 27 cents a share. Reported revenue of $3.5 billion was above analysts' forecasts of $3.43 billion. Halliburton said revenue for most of its product service lines declined.
- Eaton's Q2 Profit Drops 92% - Eaton (ETN) said second-quarter net income fell to $29 million, or 17 cents a share, sharply lower from $333 million, or $2.03 a share, in the year-ago quarter. Excluding one-time items, the company said it earned 23 cents a share, topping the average analyst estimate of 17 cents a share, according to Thomson Reuters. Revenue dropped to $2.9 billion from $4.28 billion a year ago, below the $3.04 billion that analysts forecasted.
- Hasbro Tops Q2 Profit Estimates. - Toymaker Hasbro (HAS) said second-quarter earnings rose to $39.3 million, or 26 cents a share, from $37.5 million, or 25 cents a share, a year earlier. Excluding costs related to a joint venture to form a TV network, income was 32 cents a share. Sales increased 1% from a year ago to $792.2 million. Hasbro was expected to earn 23 cents a share in the quarter on revenue of $797.08 million, according to Thomson Reuters.
- Johnson Controls Income Tumbles 63% - Auto parts makerJohnson Controls (JCI) said fiscal third-quarter slid to $163 million, or 26 cents a share, compared with $439 million, or 73 cents a share, a year ago. Revenue fell 29% from a year earlier to $7 billion. Thomson Reuters said analysts on average expected earnings of 18 cents a share on sales of $7.4 billion.
- M&T Bank's Q2 Income Falls 68% - M&T Bank (MTB) recorded second-quarter net income of $51.2 million, or 36 cents a share, down from $160.3 million, or $1.45 a share, in the year-ago quarter. The bank said that excluding the impact of merger-related expenses and intangible amortization, it would have earned 79 cents a share, despite the Federal Deposit Insurance Corp.'s special assessment which reduced that measure by 17 cents a share. Analysts were looking for earnings of 48 cents a share, according to Thomson Reuters.
Monday's Early Headlines
- CIT Board Reportedly OKs $3 Billion Rescue Loan. - The board of struggling lender CIT Group (CIT) approved a deal Sunday evening with some of its major bondholders to help it avert a bankruptcy filing through a $3 billion emergency loan, The New York Times reports, citing people briefed on the matter. Under the terms of the deal, CIT would receive $3 billion from some of its main bondholders, though at an initial rate of about 10.5%, the report said.
- Fortress Taps Mudd as New CEO. - Fortress Investment Group (FIG) confirmed it has named board member Daniel Mudd as its new CEO. As CEO, Mudd replaces Wesley Edens, Fortress's co-founder and largest shareholder. Edens and principal Peter Briger have been named as co-chairman of the private-equity firm's board. Mudd was forced out as the chief of Fannie Mae (FNM) when the government took over the company last September
- Schwab Denies Cuomo's ARS Allegations. - Charles Schwab (SCHW) said allegations by New York Attorney General Andrew Cuomo of civil fraud in the marketing and sales of auction-rate securities are "without merit." In an official notice sent to Charles Schwab on Friday, Cuomo warned that his office plans to sue Schwab over the marketing of the products, The Wall Street Journal reports.
- Human Genome Drug Effective Against Lupus. - Drugmaker Human Genome Sciences (HGSI) announced Monday that its experimental drug Benlysta achieved a clinically and statistically significant improvement in disease response compared with placebo, according to results from a pivotal phase III study of lupus patients.
Monday's Economic News
- Leading Economic Indicators - The lone economic report Monday comes from the Conference Board, which is expected to say the June read on its leading economic indicator index will rise 0.5% after a 1.2% advance in May.