Tuesday's Earnings Roundup

  • U.S. Steel (X) reported a second-quarter loss, excluding items, of $3.28 a share, better than the Thomson Reuters average estimate of $3.45 a share. Revenue dropped 68.5% from a year ago to $2.13 billion, falling short of the consensus of $2.39 billion.
  • Valero (VLO) notched a second-quarter loss of 48 cents a share, compared to the consensus estimate that called for a loss of 50 cents a share, according to Thomson Reuters. Valero said the decline in operating income was "primarily due to lower diesel and jet fuel margins and lower sour crude oil differentials versus the same quarter last year."
  • Coach (COH) said it had fiscal fourth-quarter adjusted earnings of 43 cents a share, matching the Thomson Reuters average estimate. Sales slipped 0.5% from a year ago to $778 million, coming in shy of the consensus target of $780.4 million.
  • Coventry Health Care (CVH) posted second-quarter adjusted earnings of 50 cents a share, 10 cents better than the Thomson Reuters average estimate. Revenue rose about 19% to $3.54 billion, also coming in ahead of expectations. The company also upped its full-year view, saying it now expects earnings of $1.85 to $1.95 a share. That's up from the previous guidance range of $1.70 to $1.90 a share and better than the consensus of $1.81 a share. Coventry also expects full-year revenue to come in between $13.76 billion to $14.04 billion, in line with Wall Street's target of $13.89 billion.
  • Viacom (VIA.B) reported second-quarter earnings of 49 cents a share, coming in a penny better than estimates. Earnings excluded 3 cents a share in severance charges. Revenue slid 14.5% from a year ago to $3.3 billion, coming in shy of the Thomson Reuters consensus of $3.5 billion.

Tuesday's Early Headlines

  • BofA to Reportedly Cut 10% of Branches. - Bank of America (BAC) plans to trim about 10% of the bank's 6,100 branch network, according to a report in The Wall Street Journal. CEO Kenneth Lewis discussed the plans during a meeting last week, the report said, citing people familiar with the conversation. Liam McGee, president of Bank of America's consumer and small-business bank, also said branch closings are part of the plans but said it would be premature to specify how many locations could be closed, these people said.
  • Time Warner Buys Back Google Stake in AOL. - Time Warner (TWX) bought back Google (GOOG) 5% stake in struggling Internet company AOL for $283 million, according to a regulatory filing by AOL. The price paid on July 8 is close to what Google estimated its stake at earlier this year.
  • CTFC Blames Speculators for Oil Spike. - The Commodity Futures Trading Commission plans to issue a report next month suggesting speculators played a significant role in driving wild swings in oil prices, according to a report in The Wall Street Journal. The move is a reversal of an earlier CFTC position that augurs intensifying scrutiny on investors. The CFTC's new review, due to be released in August, adds fuel to a growing debate over financial investors who bet on the direction of commodities prices by buying contracts tied to indexes, the report said.
  • Treasury Auctions In Focus - On Tuesday, $27 billion of 1-year bills and $42 billion of 2-year Treasury notes will be auctioned. Monday saw three separate auctions, while Wednesday will bring a $39 billion auction of 5-year notes, followed by a $28 billion auction of 7-year notes on Thursday.
  • Consumer Confidence, Home Price Index On Tap - Tuesday's report on consumer confidence, due at 9 a.m. EDT, is expected to show that the index worsened to a reading of 48.7 in July, down from 49.3 in June. At the same time, the S&P/Case-Shiller home price index should improve slightly to a decline of 17.8% from April's 18.1% slide.

-- Reported by Robert Holmes in New York.