Corporate Earnings Continue Downward Spiral
New York, Dec 21, 2001 (123Jump via COMTEX) -- Manugistics Group Inc. (MANU)
reported a loss for the third quarter but pro forma results exceeded estimates.
The manufacturing-software company had a loss of $7.6 million, or 11 cents per
share, excluding special items, compared with earnings of $3.7 million, or 6
cents per share, a year earlier.
The reported loss was a nickel better than First Call/Thomson Financial
forecasts and the company's own predictions for a loss of 16 cents per share.
Including the items, Manugistics lost $45 million, or 66 cents per share, versus
a profit of $9.4 million, or 14 cents per share, in the year-ago quarter.
Sales slipped to $68 million from $70 million last year, beating analysts'
consensus of $61 million.
Despite the continuing economic uncertainty Manugistics forecast a narrower loss
of between 5 cents and 7 cents per share for the fourth quarter on revenue in
the range of $72 million to $75 million. The company said it has seen signs of
stabilization in its business and expects to reach profitability on an adjusted
basis in the first quarter of fiscal 2003, beginning March.
Wall Street analysts were looking for a loss of 10 cents per share on revenue of
$63.45 million for the fourth quarter.
Shares of Manugistics plumetted 1.61, or 9.23%, to close at 15.84 but erased the
loss by gaining 1.96, or 12.4% to 17.80 in after-hours trading.
Cognos Inc. (COGN) posted third-quarter earnings that were flat with the same
quarter last year hurt by lower demand for its business intelligence software
products amid the current economic weakness.
Cognos earned $13.3 million, or 15 cents per share, surpassing First Call's
estimates of 12 cents per share. The company had a profit of $13.6 million, or
15 cents per share, a year ago.
Revenue for the third quarter was $124.2 million, almost unchanged from the
$124.6 million posted last year.
Looking ahead, Cognos said it anticipates earnings of between 21 cents and 22
cents per share for the fourth quarter, on target with analysts' forecasts of 21
cents per share. Revenue is expected to range between $138 million and $140
million.
Shares finished off 34 cents at 20.28 prior to the report.
Research In Motion Ltd. (RIMM) met Wall Street's loss expectations for the third
quarter but reduced its estimates for the fourth quarter.
The maker of the popular BlackBerry wireless device recorded a loss of $6.3
million, or 8 cents per share, against a profit of $1.5 million, or 2 cents per
share, in the prior-year quarter. First Call's projections were for a loss of 8
cents per share. Quarterly sales increased 15% to $70.9 million from $61.6
million last year.
For the fourth quarter, the company now expects to lose between 13 cents and 15
cents per share, higher than its previous guidance of between 8 cents and 12
cents per share. Sales should come in between $65 million to $70 million, down
from a earlier range of $75 million to $80 million.
Research In Motion reiterated its first-quarter outlook for a loss in the range
of 10 cents to 12 cents per share on sales of $75 million to $80 million.
Shares of Research In Motion ended down 1.55, or 7.3%, at 19.75 before the
release.
Liberate Technologies Inc. (LBRT), which develops interactive TV software,
reported second-quarter loss of $6.3 million, or 6 cents per share, before
special charges, narrower than Wall Street's projections of 9 cents per share.
This is compared with a loss of $6.9 million, or 7 cents per share, a year
earlier.
On a net basis, Liberate lost $112.5 million, or 1.06 per share, versus $68.4
million, or 66 cents per share, last year.
Revenue for the quarter jumped 79% to $21 million from the year-ago figure of
$11.7 million.
For the third quarter, Liberate sees a loss in the range of 6 cents to 7 cents
per share on revenue of $22.5 million to $23 million.
Shares plunged 94 cents, or 8.8%, to close at 9.75 ahead of the announcement.
The stock rose 5.6% to 10.30 in post-market activity.
The world's largest maker of athletic shoes and clothing Nike Inc. (NKE) posted
an 8% rise in its second-quarter profit topping Street estimates by 2 cents.
Nike made a profit of $129 million, or 48 cents per share, up from $119 million,
or 44 cents per share, a year ago. First Call/Thomson Financial had pegged it to
earn 46 cents per share.
Revenue grew 6% to $2.3 billion from $2.2 billion last year.
Shares closed off 82 cents at 53.79 before the report.
Top retailer of housewares, Bed Bath & Beyond Inc. (BBBY), earned $53 million,
or 18 cents per share, in the third quarter, a 30% improvement over a
year-earlier profit of $40.7 million, or 14 cents per share. The earnings were
in line with Wall Street expectations.
Sales grew 26% to $759.4 million from $602 million last year. Sales at stores
open at least one year climbed 5.8%.
Shares ended up 1 cent at 32.52.
Financial Companies: Profits Continue to Fall
Before the market opened Thursday, three top brokerage firms announced
fourth-quarter profits that declined year-over-year as the continuing slump in
the investment banking and stock-trading businesses took a toll on their
results.
However, the companies' earnings either matched or beat analysts' estimates.
Bear Stearns Cos. Inc. (BSC) had a net income of $154.9 million, or 1.08 per
share, on revenue of $1.1 billion, down 20% from earnings of $195.2 million, or
1.36 per share, on revenue of $1.4 billion, in the fourth quarter last year.
The reported profit was far ahead of First Call/Thomson Financial predictions of
87 cents per share.
Shares of Bear Stearns closed down 60 cents at 58.38.
Goldman Sachs Group Inc. (GS) also sailed past analysts' forecasts for the
fourth quarter by posting a profit of $497 million, or 93 cents per share, 17%
lower than a year-ago income of $601 million, or 1.16 per share. Wall Street
analysts had called for earnings of 90 cents per share.
Net revenue totaled $3.43 billion, compared with $3.42 billion a year ago.
Goldman Sachs shares slipped 2.10 to close at 92.31.
Lehman Brothers Holding Inc. (LEH) recorded a 50% drop in fourth-quarter
earnings to $201 million, or 73 cents per share, from $399 million, or 1.46 per
share, in the same period last year.
This was in line with First Call's estimates of 73 cents per share.
Total net revenue came in at $1.20 billion, lower than the $1.7 billion posted a
year earlier.
Shares of Lehman finished off 36 cents at 66.17.
Big Losers in Thursday Trading
Networking company Juniper Networks Inc. (JNPR) warned that its earnings in the
fourth quarter would be half of analysts' current guidance. Juniper is now
calling for a profit of 5 cents per share, compared with First Call/Thomson
Financial consensus of 10 cents per share.
The company sees revenue in the range of $150 million to $155 million, below its
previous target of $200 million.
The warning sent Juniper's stock down 4.08, or 17.8%, to close at 18.85.
Jabil Circuit Inc.'s (JBL) shares lost 14% after it announced an 82% slump in
its first-quarter income because of lower orders from computer and
telecommunications companies.
The contract electronics manufacturer earned $8.4 million, or 4 cents per share,
down from $47.7 million, or 24 cents per share, a year ago. Operating earnings
before charges were $22.1 million, or 11 cents per share, compared with $48.3
million, or 24 cents per share, last year. These results were a penny short of
First Call's expectations.
Quarterly revenue fell 21% to $884.6 million from $1.13 billion a year earlier,
below Wall Street predictions of $919.7 million.
Jabil's outlook for the second quarter too was not encouraging. The company
expects to earn between 6 cents to 8 cents per share on revenue in the range of
$800 million to $850 million, lower than analysts' forecasts for a profit of 14
cents per share on revenue of $974 million.
The news dealt a heavy blow on Jabil shares, which closed down 3.50, or 14.14%,
at 21.25. |
