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Get Four
|  | JANUARY 26, 2006 05:00 PM
 MARKET MOVERS Microsoft Posts Higher Net ProfitVerizon reports weaker earnings amid higher costs; Lockheed Martin posts higher net; plus more stocks in the news ThursdayAfter the close of trading Thursday, Microsoft (MSFT ) reported second quarter EPS of 34 cents, vs. 32 cents one year earlier, on a 9% revenue increase. Net results included one cent per share in tax benefits. Operating income for the quarter declined 2% from the same period in the prior year. The company offered third quarter guidance, with revenue expected to range from $10.9 billion to $11.2 billion, operating income expected range from $4.5 billion to $4.6 billion, and EPS to be 32 cents or 33 cents. General Motors (GM ) posts $8.45 fourth quarter loss vs. 18 cents loss on a slight revenue decline, with a $1.3 billion restructuring charge at GM North America. Kirk Kerkorian reportedly lifts its stake in GM to 9.9% from 7.8%. Verizon Communications (VZ ) posts 59 cents vs. $1.08 fourth quarter earnings per share (EPS) (including items) as higher expenses offset a 5.8% revenue rise. It sees 2006 EPS being cut by 34 cents to 36 cents due to pension and other costs. Lockheed Martin (LMT ) posts $1.29 vs. 83 cents fourth quarter EPS on a 2.6% sales rise. It raises its $4.00 to $4.25 2006 EPS forecast to between $4.50 and $4.75. Sony (SNE ) teams up with AOL to introduce the Sony co-branded version of AOL.com Web portal, and will bring Internet content directly to VAIO PC users. Qualcomm (QCOM ) posts 39 cents vs. 28 cents first quarter EPS (pro forma) on a 25% revenue rise. It reaffirms fiscal year 2006 guidance: $1.43 to $1.47 pro forma EPS on an 18% to 25% revenue rise. Nokia (NOK ) posts a 9.3% sales rise. It expects overall mobile device market volumes in the first quarter to reflect normal industry seasonality and mobile device market volume to grow more than 10% in 2006. Estee Lauder (EL ) posts 70 cents vs. 61 cents second quarter earnings per share from continuing operations on a 2.7% sales rise. It sees $1.61 to $1.68 fiscal year 2006 EPS from continuing operations, including about 26 cents in one-time charges. AT&T (T ) posts 46 cents vs. 21 cents fourth quarter EPS on 26% higher total operating revenues. Honeywell (HON ) posts 62 cents vs. 30 cents fourth quarter EPS on 9.6% higher sales. It sees $2.40 to $2.50 2006 EPS on more than $30 billion in sales. Dow Chemical (DOW ) posts $1.12 vs. $1.06 fourth quarter EPS on a 9% sales rise. Eli Lilly (LLY ) posts 64 cents fourth quarter EPS vs. breakeven (including items) on 6.4% higher sales. It sees 73 cents to 75 cents first quarter EPS and $3.10 to $3.20 in 2006. It also sees 7% to 9% growth for 2006 sales. Take-Two Interactive Software (TTWO ) posts 27 cents vs. 91 cents fourth quarter EPS on a 30% revenue decline. Quest Diagnostic (DGX ) posts 64 cents vs. 60 cents fourth quarter EPS on a 12% revenue rise. It sees $2.75 to $2.85 2006 EPS and raises its quarterly dividend 11%. It also sets an additional $600 million stock buyback. Komag (KOMG ) posts $1.07 vs. 51 cents fourth quarter EPS on a 47% sales rise. It sees quarter over quarter revenue growth of 2% to 4% and net margin similar to the fourth quarter at about 17% to 18%. Marathon Oil (MRO ) posts $3.61 vs. $1.19 fourth quarter EPS (adjusted) on a 23% revenue rise. Stanley Works (SWK ) posts 75 cents vs. 76 cents fourth quarter EPS from continuing operations as sudden and severe curtailment of orders at its Consumer Products unit offset a 6% revenue rise. Altera (ALTR ) posts 19 cents vs. 15 cents fourth quarter EPS on an 18% sales rise. Sales were below the company's guidance. It sees first quarter sequential sales growth of 4% to 7%. Newell Rubbermaid (NWL ) posts 31 cents vs. 44 cents first quarter EPS from continuing operations despite a 1.2% sales rise. It sees 8 cents to 13 cents first quarter 2006 EPS from continuing operations. It also raises fiscal year 2006 EPS from continuing operations guidance to between $1.55 and $1.65. Tellabs (TLAB ) posts 20 cents fourth quarter EPS vs. 32 cents loss (including charges) on a 37% revenue rise. It sets a $100 million stock buyback. United Parcel Service (UPS ) posts 95 cents vs. 76 cents fourth quarter EPS on 7.9% higher global volume. It sees 85 cents to 89 cents first quarter EPS and reiterates a 2006 EPS growth rate of 11% to 16%. Baxter (BAX ) posts 46 cents vs. 17 cents fourth quarter EPS (GAAP) from continuing operations on a 4.2% sales drop. It notes a sales drop due to a hold on shipments of Colleague Infusion Pump, the exiting of several lower-margin businesses, and the generic competition for propofol. Federated Dept Stores (FD ) sees $3.45 to $3.70 fiscal year 2006 EPS (excluding one-time integration costs and a gain on the sale of credit receivables) on 2% to 3% higher same-store sales and $27.25 billion to $27.75 billion total sales. Cephalon (CEPH ) expects a second quarter 2006 launch of Sparlon for treating attention deficit hyperactivity disorder, assuming Food and Drug Administration approval. Juniper Networks (JNPR ) posts 20 cents vs. 15 cents fourth quarter EPS (non-GAAP) on a 34% revenue rise. It reportedly sees 19 cents first quarter non-GAAP EPS. Lyondell Chemical (LYO ) posts lower-than-expected 54 cents (including 13 cents unusual expense) vs. 8 cents fourth quarter earnings per share (EPS.) Caterpillar (CAT ) posts $1.20 vs. 77 cents fourth quarter earnings per share (EPS) on 13% higher revenues. It raises $4.52 to $4.91 2006 EPS guidance to between $4.65 and $5.00. It sees about $40 billion in 2006 revenues. Novatel Wireless (NVTL ) sees fourth quarter revenue of $48.5 million, breakeven to about a penny earnings per share (EPS.) The company notes accelerated Research & Development costs, as well as an inventory charge of approximately $1.5 million. Foundry Networks (FDRY ) posts 14 cents vs. 12 cents fourth quarter earnings per share (EPS) on an 11% revenue rise.  All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
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