Thursday's Headlines: AT&T, 3M

(Updated to clarify McDonald's earnings.)

Thursday's Earnings Roundup

  • 3M (MMM) recorded a second-quarter profit of $1.20 a share, well ahead of the Thomson Reuters average estimate of 94 cents a share. Revenue did fall 15% from a year ago to $5.72, but that came in above Wall Street's forecast of $5.41 billion. 3M also raised the lower end of its guidance range from $3.90 a share to $4.10. The full range is $4.10 to $4.30 a share, above the consensus of $3.97 a share.
  • AT&T (T) reported second-quarter earnings of 54 cents a share, 3 cents better than the average analyst forecast. Revenue was nearly unchanged from a year ago at $30.7 billion, in line with estimates. AT&T said that total wireless subscribers increased by 1.4 million in the quarter, and the company said it had more than 2.4 million activations of Apple's (AAPL) popular iPhone.
  • McDonald's (MCD) posted second-quarter earnings of 98 cents a share. Excluding a penny gain related primarily to the sale of Redbox Automated Retail, McDonald's matched the Thomson Reuters average estimate of 97 cents a share. Revenue dropped 7% from the year-ago quarter to $5.65 billion, coming in below the $5.72 billion consensus.
  • Ford (F) reported second-quarter earnings, excluding special items, of 21 cents a share. Analysts surveyed by Thomson Reuters had estimated a loss of 48 cents a share. The automaker said revenue fell 38% from a year earlier to $27.2 billion, also coming in ahead of analysts' expectations.
  • UPS (UPS) reported second-quarter earnings of 49 cents a share, matching Wall Street's targets. Revenue, though, dropped more than 16% from a year ago to $10.83 billion, falling short of the Thomson Reuters average estimate. UPS also disappointed with its guidance for the third quarter, saying it expects earnings of 45 cents a share to 55 cents. Analysts are looking for a profit of 59 cents a share.
  • Philip Morris (PM) recorded second-quarter earnings, excluding one-time items, of 83 cents a share, beating analyst expectations for a profit of 77 cents a share. Revenue excluding excise taxes was $6.13 billion, slightly below the $6.18 billion analysts expected. Philip Morris did raise its forecast for full-year 2009 earnings to a range of $3.10 to $3.20 a share from a range of $2.85 to $3 a share.
  • JetBlue Airways (JBLU) posted second-quarter earnings of 5 cents a share, better than the Thomson Reuters average estimate of 2 cents a share. Revenue of $807 million was down 6% from a year earlier but came in ahead of the $800 million consensus.

Thursday's Early Headlines

  • CIT Bankruptcy May Follow August Swap: Report. - Bloomberg reported that advisers to bondholders that rescued CIT Group (CIT) with a $3 billion loan said creditors should push the company into Chapter 11 bankruptcy after a debt swap next month, citing a person familiar with the matter.
  • Bristol-Myers to Buy Medarex - Bristol-Myers Squibb (BMY) is buying biotech firm Medarex (MEDX) for $2.1 billion to bolster the U.S. drugmaker's drug pipeline and capability to produce biologic drugs.
  • Amazon.com Acquires Zappos. - Amazon.com (AMZN) announced on Wednesday that it will buy Zappos for about $807 million in stock and will pay $40 million in cash and stock to Zappos employees.
  • Initial Jobless Claims Remain Below 600K - The Labor Department said weekly initial jobless claims rose to 554,000, up from a revised 524,000 last week.

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