Drugmaker Pfizer ( PFE) and other big-name firms are posting their corporate earnings today. Pfizer reported a 30% increase in its second-quarter earnings, citing strong pharmaceutical sales and savings from its acquisition of Warner-Lambert. The company said it earned 30 cents a share for the quarter, up from 23 cents a share in the year-ago quarter. Analysts were expecting the company to earn 29 cents a share in the second quarter. During the quarter, the company introduced its new schizophrenia drug called Geodon, which has been placed on Medicaid formularies in 46 of the 50 states.
Earnings Reports & Warnings:
Biogen ( BGEN) reported second-quarter earnings of 47 cents a share. The company earned 43 cents a share a year ago. The results beat the 21-analyst consensus estimate by a penny. Biogen cited strong sales of Avonex, a drug designed to treat multiple sclerosis, as the principal catalyst for its earnings growth. Black & Decker ( BDK) said second-quarter earnings declined because of weak demand for its power tool products, and European retailers cutting back on inventories. The company reported second-quarter earnings of 51 cents a share, down from 93 cents a share in the year-ago period. Analysts, on average, were expecting earnings of 54 cents. Coca-Cola Enterprises ( CCE) failed to meet analysts' earnings expectations as price trends have hurt revenue. The company reported second-quarter earnings of $114 million, or 27 cents a share, down from $122 million, or 29 cents a share, a year ago. Analysts, on average, were expecting earnings of 29 cents a share. The company also said it plans to take restructuring charges of between $60 million and $80 million in 2001 in an effort to reduce expenditures. The restructuring will eliminate 2,000 employees in North America, some of them through attrition. Eastman Kodak ( EK) reported second-quarter earnings, excluding charges, of $1.12 a share, in line with analysts' forecasts but down from the year-ago mark of $1.65. The company said it was hurt by weaker sales of cameras and related equipment. Including charges, Kodak earned 12 cents a share. The company said it took a second-quarter pretax charge of $401 million to account for restructuring and write-offs related to the Wolf Camera bankruptcy. Fannie Mae ( FNM) reported second-quarter earnings of $1.27 a share, in line with analysts' estimates and up 21% increase from the year-ago quarter when it earned $1.05 a share. The company said operating profits rose 19.8% to $1.31 billion as lower interest rates prompted homebuyers to borrow more money. Johnson & Johnson ( JNJ) reported second-quarter earnings of 51 cents a share, a 15.9% increase from the year-ago period when it earned 44 cents. Wall Street was looking for earnings of 53 cents. Sales, bolstered by the company's anemia and arthritis drugs, rose 8.8% in the quarter. Maytag ( MYG) reported a 66% drop in second-quarter earnings because of sluggish sales of vacuum cleaners and other floor care products. Excluding an accounting charge, the company posted earnings of 32 cents a share, in line with analysts' forecasts, but a far cry from the 92 cents the company earned in the year-ago quarter. Wells Fargo ( WFC) reported a second-quarter loss of 5 cents a share, compared with a profit of 61 cents a share in the year-ago quarter. The company attributed the shortfall to investment losses in its equity securities portfolio. Analysts, on average, were expecting the firm to turn a profit of a penny a share for the quarter. Wells Fargo said in June that it expected to take a $1.13 billion charge in the second quarter from investment losses in shares of technology and telecommunications stocks.
On the Economic Lookout:
The market was little moved by the morning's industrial production data. The data showed industrial production declined for the ninth-straight month in June, falling 0.7% for the month, compared with a consensus forecast of a 0.5% drop. May's data was revised up, however, to a 0.5% decline from initial estimates of a 0.8% drop. Capacity utilization fell to 77% for the month, its lowest rate since August 1983. Economists were expecting a steeper drop though, to 76.6%. Capacity utilization was at 77.4% in May. For a longer-term economic calendar and more, see TSC's Economic Databank.
In Overnight Activity:
Novellus ( NVLS) said Monday after the close that second-quarter profits came in a penny ahead of Wall Street's estimates, falling 24% from a year ago. The company reported earnings of 40 cents a share, down from 56 cents a share in the year-ago quarter. Analysts were expecting the company to post earnings of 39 cents a share. Novellus ended regular-session trading on the Nasdaq at $46.37. In after-hours trading, the stock dropped to $44.50. Sources & Definitions:All analyst EPS estimates are from Thomson Financial/First Call, unless otherwise noted. All economic forecasts are from Reuters , unless otherwise noted. All times are Eastern, always. After-hours quotes courtesy of Instinet, unless otherwise noted.