Markets & Finance

UPS Drops on Disappointing Profit


From Standard & Poor's Equity Research

United Parcel Service (UPS) shares fell sharply Tuesday after the company posted lower-than-expected second quarter EPS of 97 cents, vs. 88 cents onme year earlier, on a 15% revenue rise. UPS sees third quarter EPS of 87-91 cents. The company set a $2 billion increase in its stock buyback program. buyback program. S&P cut its buy estimates and price target, but kept its buy opinion.

DuPont (DD) posts $1.01 vs. 90 cents second quarter earnings per share (EPS) (excluding items) despite slightly lower consolidated net sales. It sees 91 cents second half earnings per share (EPS) and $2.85 2006 EPS (both excluding items).

Texas Instruments (TXN) posts 47 cents vs. 35 cents second quarter earnings per share (EPS) from continuing operations on a 24% revenue rise. It sees third quarter EPS from continuing operations of 42 cents to 48 cents on revenue of $3.63 billion to $3.95 billion.

Pitney Bowes (PBI) posts 64 cents vs. 59 cents second quarter adjusted earnings per share (EPS) from continuing operations on a 5% sales rise. It sees 65 cents to 67 cents third quarter adjusted EPS from continuing operations on 7% to 9% revenue growth.

AT&T (T) posted 58 cents, vs. 43 cents, second quarter operating EPS on 53% higher total operating revenue. The company raised its 2006 adjusted consolidated operating income margin to the 17%-18% range. S&P reiterates buy.

Jetblue Airways (JBLU) posts 8 cents vs. 8 cents second quarter EPS as narrowed operating margin offset a 43% revenue rise. It sees third quarter operating margin of 4%-6%.

Legg Mason (LM) posts lower-than-expected $1.08 vs. 93 cents first quarter EPS on sharply higher operating revenues.

Kraft Foods (KFT) posts 51 cents vs. 47 cents second quarter EPS (excluding items) on a 3.4% revenue rise. It raises 2006 EPS guidance to between $1.78 and $1.83, driven by a one-time gain related to United Biscuits transactions and timing of restructuring costs.

Walt Disney (DIS) is to acquire Hungama TV, the leading Indian children's television channel, and take equity interest in the Indian media company UTV Software Communications Limited.

Atmel (ATML) postpones its second quarter earnings per share (EPS) release. It says the Audit Committee initiated investigation regarding the timing of past stock option grants, and other potentially related issues.

Waters (WAT) posts 46 cents vs. 46 cents second quarter EPS (GAAP) despite a 6% sales rise.

AK Steel Holding (AKS) posts 26 cents vs. 8 cents (including 27 cents non-cash charge) second quarter EPS on a 4% sales rise.

Avaya (AV) posts 10 cents vs. 40 cents third quarter EPS from continuing operations as higher operating costs offset a 4.9% revenue rise.

Netflix (NFLX) posts 24 cents vs. 9 cents second quarter GAAP earnings per share (EPS) on a 46% revenue rise. It sees $30 million to $35 million 2006 GAAP net income and revenue of at least $980 million.

Sandisk (SNDK) posts 47 cents vs. 47 cents second quarter earnings per share (EPS) (Generally Accepted Accounting Principles) on a 40% revenue rise.

Altria Group (MO) posts $1.29 vs. $1.28 second quarter EPS on a 4% revenue rise. It raises a $5.25 to $5.35 2006 earnings per share (EPS) from continuing operations forecast to between $5.40 and $5.50.

CNET Networks (CNET) posts a 14% second quarter revenue rise. It sees $93 million to $96 million third quarter revenue. It also says it will not be in a position to provide guidance regarding operating expense, operating income, and EPS pending completion of a special committee's review.

Altera (ALTR) posts a 17% second quarter revenue rise. It sees $334 million to $344 million third quarter revenue.


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