Markets & Finance

Apple Profit Surges


After the close of trading Wednesday, Apple Computer (AAPL) posted third quarter earnings per share of 37 cents, vs. 8 cents one year earlier, on a 75% revenue rise. The company expects fourth quarter revenue of about $3.5 billion and EPS of 32 cents. The shares were up in after hours trading Wednesday after closing the regular session higher.

After the close of trading Wednesday, Advanced Micro Devices (AMD) posted second quarter EPS of 3 cents, vs. 9 cents, on a slight increase in sales.

Second quarter sales were flat compared to the second quarter of 2004 and increased three percent from the first quarter of 2005. In the second quarter of 2004, AMD reported sales of $1.262 billion and net income of $32 million, or $0.09 per diluted share. In the first quarter of 2005, AMD reported sales of $1.227 billion and a net loss of $17 million, or $0.04 per share. The operating loss was $7 million as compared to operating income of $72 million in the second quarter of 2004 and an operating loss of $46 million in the first quarter of 2005.

HCA Inc. (HCA) shares fell Wednesday after the hospital operator said it sees second quarter earnings per share of 88 cents to 92 cents. The company reaffirmed its 2005 EPS guidance (excluding gains on sales of assets, impairments, tax settlements) of $3.05 to $3.20. S&P downgraded the shares to hold from strong buy.

Harley-Davidson (HDI) posted second quarter earnings per share of 84 cents, vs. 83 cents one year earlier, on a slight revenue rise. The motorcycle maker says that given the number of shares repurchased during the first half, it now expects 2005 EPS growth to be in the 10% to 13% range.

Shares of video-game software concern Majesco Entertainment (COOL) plunged after the company said it sees a $16 million to $19 million fiscal 2005 operating loss, including about $12 million in special items, on lower-than-expected revenue of $120 million to $125 million. The company announced the resignation of its chairman and CEO, Carl Yankowski. Wedbush Morgan cut its estimates and price target on the shares.

Abbott Laboratories (ABT) posted second quarter EPS (GAAP basis) of 56 cents, vs. 40 cents, on 18% higher worldwide sales. The pharma outfit sees third quarter EPS (excluding one-time charges) of 56 cents to 58 cents. It remains comfortable with its 2005 EPS guidance of $2.47 to $2.53.

Microtune (TUNE) sees second quarter net revenue of $13.4 million. The maker of radio frequency ICs expects third quarter net revenue to rise 15% to 18% over the second quarter. Roth Capital reportedly upgraded the shares to strong buy from buy.

Buffalo Wild Wings (BWLD) sees better-than-expected second quarter EPS of 20 cents to 22 cents on revenue of $48.2 million. The restaurant chain notes lower-than-expected cost of sales, general and administrative expenses due to lower cost of average buffalo wing prices, and lower stock-based compensation expenses.

Kirkland's (KIRK) sees a wider-than-expected second quarter loss per share of 29 cents to 33 cents on a same-store sales decrease of 11% to 13%. The home decor retailer cites product assortment issues.

California Pizza Kitchen (CPKI) posted better-than-expected 8.6% higher second quarter same-store sales and 17% higher revenue. The restaurant chain raised its second quarter EPS guidance to 32 cents. CIBC World upgraded the shares to sector performer from sector underperformer.

United Natural Foods (UNFI) sees fiscal 2006 EPS (excluding potential special items and option expenses) of $1.14 to $1.19 on a 10% to 15% revenue rise.

ASML Holding (ASML) posted €0.22 vs. €0.13 second quarter net profit on 24% higher net sales. Although a low level order intake for the last three quarters will have an effect on shipment levels over the next few quarters, the chip technology outfit expects to meet profit targets due to continued cost cuts.

Wolverine World Wide (WWW) posted second quarter EPS of 22 cents, vs. 18 cents, on a 8.5% revenue rise. The footwear manufacturer says it ended the second quarter with its order backlog up 12%; it expects this backlog to assist in reaching its previous 2005 EPS guidance of $1.22 to $1.27.

Standard & Poor's announced changes to its U.S. equity indexes. Weatherford International (WFT) will be added to the S&P 500 index after the close of trading on a date to be announced, replacing Toys "R" Us (TOY), which is being acquired. Denbury Resources (DNR) will be added to the S&P MidCap 400 index after the close of trading on a date to be announced, replacing Weatherford. NCI Building Systems (NCS) will be added to the S&P SmallCap 600 index after the close of trading on July 14, replacing Oshkosh B' Gosh, which is being acquired.

Metris Cos. (MXT) received a "Wells Notice" from the staff of the SEC in connection with the SEC's investigation concerning the credit card issuer's reporting and treatment of "allowance for loan loss" for 2001 and other matters.

Bank holding company BB&T (BBT) posted second quarter operating EPS of 75 cents, vs. 72 cents, on 4.4% higher net interest income and lower provisions for credit losses.


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