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Posted on Friday, October 29th, 2010 at 2:22 pm.
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NEW YORK, Oct 28 (Reuters) – Starwood Hotels & Resorts Worldwide Inc (HOT.N) reported third-quarter results on Thursday that beat Wall Street’s expectations, but the company’s shares fell almost 5 percent as some investors opted to lock down profits gained during Starwood’s recent rally. Starwood’s shares have risen about 20 percent since late August, outperforming a 13 percent rise in the Standard & Poor’s 500, as the operator of Sheraton, St. Regis and W hotels benefited along with other lodging companies from a broadening consensus that business travel had recovered and leisure would follow. While demand for hotel rooms has generated optimism about the economy’s prospects for a more substantial recovery, individual lodging companies, like Starwood, are hitting a share price ceiling when they report their third-quarter results. “People expected a good quarter and solid guidance and that’s exactly what they’re getting. It’s not better than expected. At this point, it’s expected,” said hotels analyst William Marks of JMP Securities, who has a “market perform” rating on Starwood’s shares. Selling shares on the announcements of earnings is a typical move for hedge funds and shorter-term investors, Marks said. Rivals Marriott International Inc (MAR.N) and Wyndham Worldwide Corp (WYN.N) followed a similar pattern to Starwood’s when they announced their quarterly results earlier this month. [ID:nN06271385] [ID:nN26111348]. Starwood posted a third-quarter loss of $5 million, or 3 cents per share, from continuing operations, compared with a year-earlier profit of $36 million, or 20 cents per share. Excluding a charge for a loss on the sale of a hotel, earnings from continuing operations rose to 25 cents per share, from 14 cents. Analysts had expected earnings of 22 cents per share. Starwood forecast 2010 profit per share of $1.09 to $1.11, up from its July projection of 93 cents to $1.05. Analysts on average have been expecting full-year earnings of $1.08 per share, according to Thomson Reuters I/B/E/S.
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Posted on Friday, October 29th, 2010 at 2:11 pm.
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(Reuters) – Merck & Co (MRK.N) reported disappointing quarterly sales on Friday and took an almost $1 billion charge related to a previously disclosed U.S. government probe of its recalled Vioxx arthritis drug. Merck, like most big U.S. drugmakers in the third quarter, beat profit forecasts even though its sales fell short, as results were bolstered by cost cuts, lower taxes or other factors. And as with its rivals, investors seemed to pay greater heed to the sales disappointment. “It’s a skittish market, so the market could react to Merck’s sales miss,” said Peter Jankovskis, co-chief investment officer of OakBrook Investments. Even so, Jankovskis said Merck seems poised for good long-term performance thanks to drugs acquired through its purchase last November of Schering-Plough, including a number of promising experimental medicines now in late-stage trials. Global company revenue almost doubled to $11.12 billion in the quarter, reflecting the addition of Schering-Plough’s array of drugs and consumer products. But that was shy of the average Wall Street forecast of $11.24 billion. Third-quarter earningsof the combined company fell 89 percent to $372 million, or 11 cents per share, reflecting charges related to the merger as well as the new $950 million Vioxx legal reserve. Merck said the charge relates to a probe by U.S. prosecutors in Massachusetts of Vioxx — Merck’s onetime blockbuster arthritis drug that was recalled in 2004 after being linked to heart risks. The company earned $3.46 billion, or $1.61 per share in the year earlier period. Excluding special items, including $638 million in tax benefits, Merck earned 85 cents per share. Analysts on average expected 82 cents per share, according to Thomson Reuters I/B/E/S. “The key contributors to the earnings beat, relative to our estimates, were higher equity income and a lower tax rate,” Sanford Bernstein analyst Tim Anderson said in a research note. Merck raised the lower end of its full-year 2010 earnings forecast, excluding special items, by 2 cents per share, to $3.31, while keeping its high-end forecast of $3.39 per share. The company still expects high single-digit compound annual profit growth from 2009 to 2013, when compared to earnings last year. Shares of Merck were down 0.5 percent at $36.75 in premarket trading. (Reporting by Ransdell Pierson; Editing by Derek Caney)
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Posted on Thursday, October 28th, 2010 at 3:14 pm.
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NEW YORK/CHICAGO, Oct 28 (Reuters) – Usual suspects like China and corporate cost-cuts helped lift U.S. industrial companies’ profits in the latest quarter, but Thursday’s crop of earnings reports also hinted an economic recovery was broadening beyond early-cycle manufacturing markets. One such hint came from diversified U.S. manufacturer 3M Co., maker of Scotch tape and medical products, whose better-than-expected profit was helped by demand from the consumer electronics industry. ”To see the growth across almost all the businesses, where before it was more patchy, speaks to the effectiveness of management’s restructuring,” said Morningstar analyst Adam Fleck. 3M’s sales were also above Wall Street estimates, but the company’s shares fell after 3M said recent acquisitions would dilute full-year profit more than expected, and its shares opened down 4 percent. [ID:nN25282000] . 3M was one of many global multinationals reporting strength in their Asian markets, especially China. So did industrial tool maker Kennametal Inc (KMT.N) and bearings maker Timken Co (TKR.N), both of which beat analyst forecasts and raised full-year estimates. Kennametal also announced a stock buyback of up to 8 million shares, and its shares rose 4.7 percent to $35 in early trading. [ID:nN27218577]. The earnings results reflected a maturing economic recovery — the U.S. recession officially ended more than a year ago — so big profit gains are going to be harder to achieve when compared to last year’s numbers, said independent analyst Brian Langenberg of Langenberg & Co. ”They simply get less easy, and if anything, the cyclical recovery is being delayed by the political and economic uncertainty surrounding the U.S. election.” Corporate expecutives have said this earnings season that lack of clarity on issues like taxes remains a prominent obstacle to stronger growth, even as they have largely stopped worrying about a renewed downturn. [ID:nN22159181]. ”The good news is, we see no signs of any broad scale, broad-based double dip,” 3M CEO George Buckley said. “Unemployment remains, as we know, the key to the puzzle particularly in the United States.” The U.S. jobless rate is expected to stay at 9.6 percent when the government reports October payroll data next week. [ECI/US].
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Posted on Thursday, October 28th, 2010 at 2:41 pm.
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NEW YORK (MarketWatch) — Eastman Kodak Co.’s third-quarter loss narrowed on fewer charges and much higher margins, as the camera maker’s results topped Wall Street’s expectations. As a result of the stronger-than-expected results, shares climbed 4.5% to $4.15 in premarket trading. The company /quotes/comstock/13*!ek (EK 4.47, +0.50, +12.59%) has been trying for years to rebrand itself as a digital imaging powerhouse as revenue slides in its traditional film sales business — a decline that is accelerating, according to Fitch Ratings. Kodak, which helped popularize consumer photography, has reported only one full-year profit — in 2007 — since 2004. Kodak recently launched new edgy ads, which feature hip-hop endorsers, as it looks to boost digital-camera sales by reaching younger, trendier consumers. The company has traditionally targeted young mothers, using ads that highlight newborn babies, graduations or weddings. It posted a loss of $43 million, or 16 cents a share, compared with a prior-year loss of $111 million, or 41 cents a share. Excluding restructuring and other impacts, the loss narrowed to 14 cents from 18 cents. Revenue fell 1.3% to $1.76 billion, including a two-percentage-point impact due to foreign currency exchanges. Analysts surveyed by Thomson Reuters expected a loss of 31 cents on revenue of $1.61 billion. Gross margin widened to 27.1% from 20.3%, driven by both a nonrecurring intellectual property licensing agreement and continued operational improvements. Sales in the graphic communications group, which includes commercial printing, fell 2.5% as the segment swung to a loss on increased investment spending. In the film, photofinishing and entertainment group, sales decreased 25% as earnings fell 57% while revenue from Kodak’s consumer-digital business–which includes cameras, printers and the Kodak Gallery — improved 25%, helping the segment swing to a profit
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Posted on Wednesday, October 27th, 2010 at 2:41 pm.
A penny stock is any stock that trades at under $5.00. That is basically the definition used by the Securities and Exchange Commission (SEC). So don’t let anyone fool you by saying Micro Cap”, or “Emerging Growth to try to lure you in. A Penny Stock is a Penny Stock and that is that. Premiere Stock Alerts gives you great penny stock research and penny stock advice. We alert you to the best penny stocks to buy and a penny stock newsletter. Check us out at www.premierestockalerts.com
NEW YORK (MarketWatch) — International Paper Co. said Wednesday that its third-quarter profit rose 7%, thanks to higher product prices and greater sales volumes as the global economy expanded. “Volume improvements account for about one-third of the earnings improvement, and in North America, it’s been a slow, gradual recovery,” said Chief Financial Officer Timothy Nicholls, on a call with analysts. “Outside North America, it’s been a quicker recovery and a stronger recovery.” Shares of International Paper /quotes/comstock/13*!ip/quotes/nls/ip (IP 24.85, +0.98, +4.11%) jumped 5% in morning trade, and the stock is now up about 11% for the year. It hit a 52-week high of $29.25 in April, but pulled back after investors worried the company’s customers would resist higher paper and packaging prices. By comparison, the S&P 500 index /quotes/comstock/21z!i1:in\x (SPX 1,175, -10.31, -0.87%) is also up 11% for the year. For the three months ended Sept. 30, the Memphis-based packaging and paper producer reported a profit of $397 million, or 91 cents a share, up from $371 million, or 87 cents a share, in the year-ago period. International Paper said quarterly sales rose to $6.72 billion from $5.92 billion. Analysts polled by FactSet Research had been looking for earnings of 79 cents a share, on average, with sales pegged at $6.55 billion. We continued to realize our announced price increases, realize restructuring benefits, operate well and improve our mix of business, which led to strong margin expansion,” said Chairman and Chief Executive John Faraci. “We are well positioned to generate strong results in the fourth quarter and into 2011,” he said. The winter season is typically slower for the paper and packaging business, and volumes are expected to decline sequentially.
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Posted on Wednesday, October 27th, 2010 at 2:20 pm.
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WASHINGTON, Oct 27 (Reuters) – Demand for long-lasting U.S. manufactured goods, excluding aircraft, unexpectedly slipped last month and a key gauge of business capital spending plans also fell, underscoring the economic recovery’s tepid pace. The report on Wednesday reinforced expectations of additional monetary stimulus at the Federal Reserve’s Nov. 2-3 meeting. However, overall orders rose by a more than expected 3.3
percent, the largest increase since January, lifted by a surge in aircraft bookings. Overall orders dropped 1 percent in August and economists had expected them to increase 2 percent in September. Orders excluding transportation fell 0.8 percent after increasing 1.9 percent in August as bookings for communications equipment dropped steeply, the Commerce Department said. Orders for primary metals and computers and lectronic products also fell. Economists had expected a 0.5 percent gain in non-transportation orders. “Consumers are not spending much. This will give reasons for those calling for a forceful quantitative easing next week,” said Robbert Van Batenburg, head of global research, Louis Capital Markets in New York. U.S. stock index futures extended their losses after the data, while U.S. Treasury debt prices held steady at lower levels. The U.S. dollar pared gains versus the euro. But non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, slipped 0.6 percent in September after a 4.8 percent increase in August, the epartment said. Markets had expected a 0.8 percent gain.
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Posted on Tuesday, October 26th, 2010 at 2:37 pm.
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Posted on Monday, October 25th, 2010 at 5:34 pm.
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NEW YORK (MarketWatch) — U.S. stocks rose Monday, boosted by a jump in existing-home sales and after a weekend pledge by global finance officials calmed fears of a so-called currency war, though flagging bank stocks kept gains in check.
The Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (DJIA 11,195, +61.99, +0.56%) rose more than 100 points before moderating, recently trading up 43 points, or 0.4%, to 11,176. Entering the month’s final week of trading, the Dow is up 3.6% for October, buoyed by hopes that the Federal Reserve will take further steps to stimulate the economy at its meeting next week.
Materials and industrials led the Dow as a weaker dollar boosted companies with more international exports. Alcoa Inc. /quotes/comstock/13*!aa/quotes/nls/aa (AA 12.90, +0.18, +1.38%) rose 1% and DuPont /quotes/comstock/13*!dd/quotes/nls/dd (DD 47.76, +0.93, +1.98%) gained 1.6%.
Bank of America Corp. /quotes/comstock/13*!bac/quotes/nls/bac (BAC 11.23, -0.21, -1.83%) shares fell 2.6% and J.P. Morgan /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 37.25, -0.45, -1.19%) shares lost 1.4%, weighing on the blue-chip average.
The Nasdaq Composite Index /quotes/comstock/10y!i:comp (COMP 2,496, +16.42, +0.66%) gained 0.3% to 2,492.84. The S&P 500 Index /quotes/comstock/21z!i1:in\x (SPX 1,189, +5.95, +0.50%) rose 0.4% to 1,188, moderating gains as the financial sector turned lower.
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Posted on Monday, October 25th, 2010 at 2:32 pm.
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BOSTON (MarketWatch) — Shares of Chinese vaccine maker Sinovac Biotech Ltd. /quotes/comstock/15*!sva/quotes/nls/sva (SVA 3.66, -0.38, -9.41%) tumbled in early action Monday, the day after it said that 2010 revenue would come in much lower than expected. Sinovac shares were down 11% at $3.61. The sector’s two key indexes, meanwhile, gained ground. The NYSE Arca Pharmaceutical Index /quotes/comstock/10t!drg.x (DRG 316.12, +2.86, +0.91%) rose 1% to 316.39 and the NYSE Arca Biotechnology Index /quotes/comstock/10t!btk.x (BTK 1,167, +17.59, +1.53%) advanced 1.5% to
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Posted on Friday, October 22nd, 2010 at 1:41 pm.
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Verizon Communications /quotes/comstock/13*!vz/quotes/nls/vz (VZ 32.39, -0.13, -0.40%) said its third-quarter earnings fell 25% to $881 million, or 31 cents a share. Stripping out one-time items, the telecom company said it would have earned 56 cents a share, topping the consensus estimate of 54 cents.
KeyCorp /quotes/comstock/13*!key/quotes/nls/key (KEY 8.65, +0.31, +3.66%) said it swung to a third-quarter net profit of $219 million, or 20 cents a share, from a loss of $397 million, or 52 cents, in the same period last year. The bank said earnings from continuing operations were 19 cents versus a loss of 50 cents a year earlier. Analysts polled by Factset had expected earnings of three cents a share.
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