Wednesday's Earnings Roundup
- Boeing (BA) beat second-quarter estimates as net income rose 17%, but the company declined to update its 787 schedule or its earnings guidance. Earnings of $1.41 a share beat the Thomson Reuters average estimate of $1.21 a share. Revenue rose 1% to $17.2 billion, in line with estimates. Boeing expects to issue a new 787 schedule during the third quarter, at which time earnings guidance will be reevaluated.
- Wells Fargo (WFC) reported second-quarter earnings of 57 cents a share, well above the consensus estimate of 34 cents a share. Revenue rose 28% from a year ago to $22.5 billion, also higher than expectations. Earnings results reflected charges of 10 cents a share related to its credit reserve build, 8 cents a share for the Federal Deposit Insurance Corp.'s special assessment charge, and 3 cents a share related to merger and restructuring expenses.
- Morgan Stanley (MS) posted a second-quarter net loss from continuing operations of $1.37 a share, worse than the Thomson Reuters average estimate for a loss of 49 cents a share. Revenue fell 11.3% from a year ago to $5.41 billion, above the consensus of $5.35 billion. The latest quarter's results included a charge of $1.32 a share related to continued improvement in Morgan Stanley's Debt-Related Credit Spreads and 74 cents a share related to the repurchase of Troubled Asset Relief Program, or TARP, capital.
- Pfizer (PFE) posted adjusted second-quarter earnings of 48 cents a share, a penny higher than the Thomson Reuters average estimate from analysts. Pfizer also raised its 2009 adjusted earnings guidance to $1.90 to $2 a share from its previous forecast of $1.85 to $1.95 a share. Wall Street anticipates full-year earnings of $1.96 a share.
- Altria (MO) reported second-quarter earnings of 50 cents a share, compared with the Thomson Reuters estimate of 47 cents a share. Revenue jumped nearly 33% from a year ago to $6.72 billion, also ahead of estimates. Altria also upped its guidance for full-year 2009 to a range of $1.72 to $1.77 a share, compared to its previous range of $1.70 to $1.75 a share. Wall Street is looking for full-year earnings of $1.71 a share.
- Delta Air Lines (DAL) said it had a second-quarter loss of 24 cents a share, slightly better than the 29-cent-a-share loss analysts were expecting. Revenue of $7 billion in the quarter was up 27.3% from a year ago and essentially in line with the Thomson Reuters average estimate of $6.94 billion.
- Eli Lilly (LLY) earned $1.12 a share in the second quarter, a dime better than the Thomson Reuters average estimate. Sales rose only 0.8% from a year ago to $5.29 billion, compared with Wall Street's forecast of $5.28 billion. Eli Lilly raised its guidance for 2009, saying it now expects earnings in a range of $4.20 t0 $4.30 a share, up from its previous guidance of $4 to $4.25 a share. Analysts, on average, expect earnings of $4.23 a share.
- SunTrust Banks (STI) swung to a second-quarter loss of 41 cents a share, compared to year-ago earnings of $1.52 a share. Current quarter results were impacted by higher credit costs, while the year-ago results benefitted from a large gain on a sale of shares. Analysts surveyed by Thomson Reuters expected a loss of 52 cents a share.
Wednesday's Early Headlines
- Bernanke to Appear Again on Capitol Hill. - Federal Reserve Chairman Ben Bernanke will deliver his semi-annual report on monetary policy to the Senate's Committee on Banking, Housing, and Urban Affairs. On Tuesday, Bernanke told the House Committee on Financial Services that the U.S. economy has shown tentative signs of stabilization and that the central bank has a plan of action for monetary policy once the economy recovers.
- China to Deploy Foreign Reserves. - China will use its foreign exchange reserves to support and accelerate overseas expansion and acquisitions by Chinese companies, the country's premier said in comments published on Tuesday, according to a report in The Financial Times. Wen Jiabao, the country's premier, told Chinese diplomats that China "should hasten the implementation of our 'going out' strategy and combine the utilization of foreign exchange reserves with the 'going out' of our enterprises," the report said.
- P&G Reportedly Close to Sale of Drug Unit. - Procter & Gamble (PG) is getting closer to selling its prescription-drug business, according to a report in The Wall Street Journal. Parties such as drug maker Warner Chilcott (WCRX) and private-equity firm Cerberus Capital Management are involved in the later-stage talks with P&G, the report said, citing people familiar with the situation.