Tuesday's Earnings Roundup
- Caterpillar (CAT) said second-quarter profit, excluding redundancy costs, was 72 cents a share, handily beat the Thomson Reuters average estimate of 22 cents a share. Sales dropped 41% from the year-ago period to $7.97 billion, falling short of Wall Street's average estimate of $8.86 billion. The construction-equipment maker also increased its guidance for 2009, forecasting a profit, excluding redundancy costs, of $1.15 to $2.25 a share. The Thomson Reuters full-year forecast is $1.01 a share.
- DuPont (DD) said second-quarter earnings fell 61%, although adjusted earnings of 61 cents a share beat the Thomson Reuters average estimate of 53 cents a share. Total sales in the quarter fell 23% from a year ago to $7.09 billion, falling short of Wall Street's target of $7.15 billion.
- Coca-Cola (KO) reported second-quarter adjusted earnings of 92 cents a share, down 9% from a year ago but 3 cents ahead of the Thomson Reuters average estimate. Revenue of $8.26 billion was down 9% from a year ago and fell short of the expected target of $8.66 billion.
- United Technologies (UTX) notched a second-quarter profit of $1.05 a share, falling 20% from a year ago but beating the average analyst target by a penny a share. Revenue of $13.2 billion was short of the Thomson Reuters average estimate of $13.9 billion. United Tech also cut its full-year revenue outlook to $53 billion, down $2 billion from its previous forecast. The company also pared back the top end of its EPS guidance range to $4.20 a share from $4.50 a share, although the company maintained the lower end of the range at $4. Analysts expect a full-year profit of $4.07 a share.
- Merck (MRK) reported second-quarter adjusted earnings of 83 cents a share, topping the estimates of analysts of 77 cents a share. Worldwide sales fell 3% to $5.9 billion in the quarter. Analysts forecast sales of $5.84 billion, according to Thomson Reuters.
- UnitedHealth (UNH) recorded a second-quarter profit of 73 cents a share on revenue that increased 6.8% from a year ago to $21.65 billion. Analysts, on average, were expecting a profit of 70 cents a share on revenue of $21.76 billion, according to Thomson Reuters. UnitedHealth also upped its 2009 earnings outlook to $3 to $3.15 a share from the previous outlook range of $2.90 to $3.15 a share. Wall Street is expecting a full-year profit of $3.07 a share.
- Continental Air (CAL) said that, excluding special charges, it posted a second-quarter adjusted loss of $1.36 a share, a penny worse than the Thomson Reuters average estimate. Revenue decreased 22.7% to $3.12 billion, compared to expectations of $3.14 billion. Continental also announced it is eliminating approximately 1,700 positions across the company, including management and clerical positions.
- Regions Financial (RF) swung to a second-quarter loss 28 cents a share, coming in worse than the Thomson Reuters average estimate for a loss of 22 cents a share. Loan-loss provisions jumped to $912 million from $309 million a year ago and $425 million in the previous quarter.
- Schering-Plough (SGP) said adjusted earnings in the recent quarter rose to 46 cents a share from 45 cents in the year-ago period, beating analyst estimates by a penny a share.
Tuesday's Early Headlines
- Bernanke To Deliver Semi-Annual Report to Congress - Federal Reserve Chairman Ben Bernanke will deliver his latest monetary policy report to the House Committee on Financial Services. He'll follow this appearance up Wednesday when he appears before the Senate's Committee on Banking, Housing, and Urban Affairs. In an op-ed piece for The Wall Street Journal Tuesday, Bernanke offered a look at the central bank's plans once the economy recovers, saying the Fed will act decisively to prevent excess money growth from stirring up inflation.
- CIT Confirms $3B Rescue From Bondholders. - Embattled lender CIT Group (CIT) confirmed it has secured a $3 billion loan facility from a group of the commercial lender's major bondholders. CIT said term loan proceeds of $2 billion are committed and available immediately, with an additional $1 billion expected to be committed and available within 10 days.
- Yahoo! to Launch New Home Page. - Yahoo! (YHOO) is expected to launch its new homepage Tuesday, months earlier than previously planned, according to a report in The Wall Street Journal. The biggest change in the new design is a left-hand menu users can customize with links to dozens of potential third-party software developers may seek to build, such as micro-blogging service Twitter, and Google's (GOOG) Gmail, according to people briefed on the plans.
- California Budget Deal Reached. - California lawmakers reached an agreement to close a $26 billion budget deficit, according to Bloomberg. The deal would slash spending for schools, public works and welfare programs amid the longest recession since the 1930s, according to the report.