Friday's Earnings Roundup

  • Schlumberger (SLB) reported second-quarter earnings, excluding certain items, of 68 cents a share, coming in a nickel ahead of the Thomson Reuters average estimate. Revenue slid to $5.53 billion in the quarter from $6.75 billion in the year-ago period, but was still better than the $5.45 billion analysts expected.
  • Black & Decker (BDK) posted second-quarter earnings of 63 cents a share, blowing past the average analyst forecast of 37 cents a share. Revenue slumped 27% from a year ago to $1.19 billion, in line with consensus. The company disappointed with its guidance, offering a third-quarter EPS range of 35 cents to 45 cents, compared to the Thomson Reuters estimate of 52 cents. For the full year, the company expects earnings of $1.65 to $2 a share, ahead of the $1.60-a-share consensus, although Black & Decker said full-year revenue should fall about 24%, worse than analysts expect.
  • Ingersoll-Rand (IR) said it earned 50 cents a share, excluding items, in the second quarter, coming in 11 cents better than the Thomson Reuters average estimate. Revenue climbed nearly 13% from a year ago to $3.47 billion, coming up short of the $3.51 billion target Wall Street set. Looking ahead to the third quarter, the company guided earnings below consensus, although revenue should fall in line with expectations. For the full year, Ingersoll-Rand guided earnings per share above the Thomson Reuters estimate, while revenue should fall in line with forecasts.
  • Ericsson (ERIC) said second-quarter earnings fell to 831 million Swedish kronor ($110.7 million) from 1.9 billion kronor as the company recorded restructuring charges and was hurt by losses at its Sony Ericsson and ST-Ericsson joint ventures. Ericsson said sales of 52.1 billion kronor in the quarter rose 11% year-over-year for comparable units, but fell 3% when adjusted for foreign exchange.

Friday's Early Headlines

  • CIT Amends Terms of Notes Offer. - CIT Group (CIT) is amending the terms of a tender offer for its notes but warns it may have to seek bankruptcy protection if enough bondholders don't agree to the terms. In a regulatory filing Friday, CIT said if the offer is successful it won't file for bankruptcy and will pursue a restructuring through other unspecified ways, The Associated Press reports. In a separate report, The Wall Street Journal said that CIT received bids to buy parts of the troubled commercial lender from Berkshire Hathaway (BRK.A) and Leucadia National (LUK) but turned them down because the price was too low.
  • Obama Administration to Fold OTS. - The White House submitted a proposal to Congress that would create a new National Bank Supervisor through the consolidation of the Office of Thrift Supervision and the Office of the Comptroller of the Currency. This consolidation will also eliminate the thrift charter and thrift holding company framework and remove one of the central sources of arbitrage in the bank regulatory system. The move would empower the Securities and Exchange Commission to administer the resolution of large financial firms that operate brokerages.

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