(By Arun - iStockAnalyst Writer) Here is a summary of some of the notable earnings that the market is looking forward to today:
AirTran Holding (NYSE:AAI) today reported a net loss of $107.1Mn, or $0.91 per diluted share for the third quarter 2008 as compared to a net income of $10.6Mn or $0.11 per diluted share. The total fuel expense saw a dizzying 69.4% increase on a YoY basis to $363.9Mn. Despite the fact that the company witnessed a healthy 10.6 percent growth in revenues to $673.3Mn it has been unable to contain its growing fuel bill as is the case with all the airliners in the country.
Altria Group (NYSE:MO) announced third-quarter reported diluted earnings per share (EPS) from continuing operations of $0.42 versus $0.43 in the third quarter of 2007, down 2.3% versus the prior-year period. Net revenues increased 5.0% to $5.2Bn. The company has recently acquired UST, the world's leading moist smokeless tobacco manufacturer and is bullish about delivering a good return from this transaction as the market for smokeless tobacco is a growing sector.
The Dow Chemical Company (NYSE:DOW) reported a 13% increase over last year to $15.4Bn. Net income for the quarter was $428Mn or $0.46 per share as against a $403Mn or a $0.42 per share. The agricultural sciences sector was the star performing sector recording sales of $976Mn, 24 percent higher than the same period last year and setting a third quarter sales record in what is traditionally a seasonally slow quarter. The management was quoted saying,” In our view, we will likely see a global recession through most of 2009.”
United Parcel Service (NYSE:UPS) today reported diluted earnings per share of $0.96 for its third quarter on a 7.4% increase in revenue. This represents an 8.6% decline from the $1.05 per share reported on an adjusted basis for the comparable 2007 quarter. The company has provided a subdued guidance statement and the management has been quoted saying, “expect 2008 earnings per share should be toward the lower end of the $3.50-to-$3.70 range that we provided mid-year." The CFO also noted UPS reduced its 2008 capital expenditure budget by $200Mn to $2.8Bn and expects to reduce 2009 capital expenditures as well.
Xerox Corporation (NYSE:XRX) sales grew just 2 percent, to $4.37Bn while Net income was $258Mn, or 29 cents per share. Commenting on next year’s earnings expectations, Mulcahy said, “We believe the operational efficiencies we’ll gain from our restructuring actions in the fourth quarter position us well to deliver double-digit earnings growth in 2009.” Revenue from color grew 5 percent in the third quarter and represents more than 40 percent of Xerox’s total revenue. Color pages were up 27 percent and now represent 17 percent of total pages printed on Xerox technology. Color results exclude the benefit from Global Imaging Systems. The company continues growing demand from the emerging economies too.
Bristol Myers Squibb (NYSE:BMY) posted third quarter 2008 net sales from continuing operations of $5.3Bn, an increase of 14% over $4.6Bn of last year. It earned $2.58Bn, or $1.29 per share, compared with $858Mn, or 43 cents per share in the year-ago quarter. The results reflect a $2Bn after-tax gain from the sale of the ConvaTec unit in August. Bristol-Myers said its net earnings from continuing operations fell 21 percent to $588Mn, or 30 cents per share, primarily due to a charge of $224Mn in the quarter related to losses on auction rate securities. Research and development expenses increased 4%, including an unfavorable 1% foreign exchange impact, to $834Mn in the third quarter of 2008 compared to the same period in 2007. The management raised its 2008 earnings guidance for fully diluted earnings per share from continuing operations on a GAAP basis to between $1.61 and $1.66, reflecting an estimated $900Mn pre-tax gain ($0.29 per share after tax) from Eli Lilly’s acceptance of the company’s tender of its ImClone shares. If the company does not receive such cash from the tender, the company expects to lower 2008 guidance on a GAAP basis to $1.32 to $1.37 per share.
Celgene Corporation (NASDAQ:CELG) said third-quarter net income rose to $136.8Mn, or 29 cents a share, from $38.8Mn, or 9 cents a share in the year-ago period. Adjusted earnings came in at 40 cents a share. Revenue rose to $592.5Mn from $350Mn. Research and development expenses increased to $160.9Mn as compared to $130.8Mn over the last quarter. The most notable drug which has done well for the company is REVLIMID whose net product sales Increased 72 Percent to $343Mn.
