Monday's Earnings Roundup
- Verizon (VZ) reported second-quarter earnings, excluding items, of 63 cents a share, a penny above the Thomson Reuters average estimate. Revenue climbed 11.3% from a year ago to $26.86 billion, in line with Wall Street's forecast. Verizon said it had 1.1 million net subscriber additions, excluding acquisitions and adjustments.
- Honeywell (HON) posted second-quarter earnings of 60 cents a share, matching the average analyst estimate, according to Thomson Reuters. Revenue dropped nearly 22% from a year ago to $7.57 billion, falling short of the $7.73 billion analysts anticipated. Honeywell said it expects 2009 earnings of $2.85 a share on revenue of $31.5 billion, at the low end of its previous guidance. Analysts are forecasting earnings of $2.83 a share on revenue of $32.61 billion.
- RadioShack (RSH) said it had second-quarter earnings of 39 cents a share, beating the Thomson Reuters average estimate of 28 cents a share. However, revenue of $965.7 million was down 3% from a year ago and below the $977.9 million consensus.
- Corning (GLW) reported second-quarter earnings, excluding items, of 39 cents a share, well ahead of the Thomson Reuters average estimate of 32 cents a share. Revenue dropped 17.6% from a year ago to $1.4 billion, slightly ahead of the $1.36 billion consensus.
- Tellabs (TLAB) said it had second-quarter adjusted earnings of 7 cents a share, a penny better than analysts expected. Revenue fell 11% from a year ago to $385.4 million, ahead of the Thomson Reuters average estimate of $381.3 million.
- Aetna (AET) posted second-quarter earnings of 68 cents a share, falling short of the Thomson Reuters average estimate by 10 cents. Revenue rose 10.3% to $8.66 billion, exceeding the $8.56 billion consensus. However, Aetna disappointed with its full-year 2009 guidance, forecasting adjusted earnings in a range of $2.75 to $2.90 a share, well short of the $3.53 a share consensus.
Monday's Early Headlines
- Bernanke Defends Fed in Town Hall Meeting. - Federal Reserve Chairman Ben Bernanke said he engineered the central bank's controversial actions over the past year because "I was not going to be the Federal Reserve chairman who presided over the second Great Depression," The Wall Street Journal reported. Bernanke explain his actions during the financial crisis at the town-hall-style meeting with 190 people at the Federal Reserve Bank of Kansas City hosted by the NewsHour's Jim Lehrer, the report said.
- Citi Completes Exchange Offers. - Citigroup (C) said about $20.3 billion of publicly held convertible and non-convertible preferred and trust preferred securities were validly tendered in exchange for common stock. Citigroup said Sunday this represents 99% of the value of the securities it was offering to exchange. The bank will issue 5.83 billion common shares to the public exchange offer participants.
- Apple Reportedly Teams With Record Labels. - Apple (AAPL) is working with four record labels to stimulate digital sales of albums, The Financial Times reported. Apple is working with labels EMI, Sony Music, Warner Music and Universal Music Group, on a project the company has codenamed "Cocktail", the newspaper reports, citing people familiar with the situation.