Some companies have managed to do well, however. In the first table below, we highlight all of the US companies that have gone up more than 5% on their earnings report days (S&P 500 companies are outlined in black). As shown, Lexmark (LXK) has seen the biggest gain at 15.91%, followed by Renaissance Learning (RLRN) (15.67%), Helen of Troy (HELE) (12.5%), Werner Enterprises (WERN) (12.38%), and Lufkin Industries (LUFK). Other notables on the list of big winners include Gannett (GCI), Tempur-Pedic (TPX), CSX, Bank of New York (BK), and Harley-Davidson (HOG).

• Apple: What recession? Apple (AAPL) customers continued to buy up iPhones and Mac computers, seemingly ignoring the recession and helping the company's Q4 results shine. "We are thrilled to have sold more Macs and iPhones than in any previous quarter," Steve Jobs said. Apple easily exceeded analysts' Q4 earnings expectations as back-to-school promotions drove sales: revenue grew 25% to $9.87B versus last year's quarter, while net income surged 47% to $1.67B (see more numbers below). Apple shares rose 7.2% to $203.43 in after-hours trading; the stock has more than doubled this year. Read Apple's earnings call.
• Lehman's Europe unit readies $90B claim. Lehman's European arm, now managed by PricewaterhouseCoopers, is preparing a new $90B claim against the U.S. parent of the failed bank - bringing the unit's total claims against various Lehman entities globally to $208B. PwC fees for managing the wind-down so far: €168M ($253M).
• Icahn targets CIT. Corporate raider Carl Icahn turned up the heat on CIT Group (CIT) Monday, slamming the company for unfairly favoring large bondholders with its revised debt exchange offer and saying he was prepared to offer a better deal by lending the company $6B and saving it $150M in fees. In a letter to CIT's board, Icahn said the proposed alternative $6B loan package is "the latest example of incompetent and unconscionable behavior" from CIT's board. Prospective lenders, he says, would get well in excess of what the current syndicated loan market should dictate, in exchange for voting their debt in favor of the company's reorganization plan.
• Morgan confirms Van Kampen sale to Invesco. Morgan Stanley (MS) confirmed Monday that it's selling its retail asset-management business, including the Van Kampen fund unit, to Invesco (IVZ), for $1.5B in stock and cash, including a 9.4% stake in Invesco. "By taking a minority interest in Invesco, Morgan Stanley will be able to realize significant value in partnership with a world-class player," co-president James Gorman said. The deal, rumored for months and expected to close in mid-2010, will remove some sales limits that Van Kampen managers faced since Morgan's JV with Smith Barney closed.
• Bernanke warns U.S., Asia to mind the gap. Fed chairman Ben Bernanke called on U.S. and Asian leaders to "avoid ever-increasing and unsustainable imbalances in trade and capital flows," saying the U.S. financial system is currently "overwhelmed" by an inflow of capital. Speaking Monday at a San Fran. Fed conference on Asia, Bernanke warned that while the U.S. trade deficits with developing countries are not as onerous as they were two years ago, they are still a threat to the global economy. World leaders believe global economic growth must begin to depend less on the U.S. consumer.
• Fed tests exit tool... As global central banks begin to weigh inflation risks, the Fed confirmed Monday it has begun experimenting with "triparty" reverse repo agreements, but says their actual use is not imminent. In a reverse repo, the Fed pledges mortgage-backed securities and Treasurys it bought as collateral for short-term loans, thereby draining cash from the financial system. Reverse repos are normally the domain of the 18 primary dealers; the experiment involves extending that to deals with the $2.5T money-market mutual fund business.
• ... while Australia says inflation risk looms. The Reserve Bank of Australia believes that the risk to global economic growth is passing, and that the bigger threat is now inflation. "Keeping interest rates at very low levels for an extended period could therefore threaten the achievement of the inflation target over the medium term," according to minutes from its Oct. 6 meeting, released Tuesday. At the meeting, the RBA unexpectedly raised its policy rate by 0.25% to 3.25% - its first such hike since March 2008, and the first in a major developed economy since the start of the financial crisis last year.
• Galleon faces massive withdrawals. Clients of hedge-fund giant Galleon jumped ship Monday after Friday's arrest of co-founder Raj Rajaratnam, forcing Galleon to unload some of its holdings, including tech stocks. So far, investors have requested $1.3B of the total $3.7B Galleon manages, and two of its brokerage firms - Bank of America (BAC) and Barclays (BCS) - have cut off relations with the firm. In a letter to investors and employees Monday evening, Rajaratnam said the charges "are, without exception, entirely baseless," and vowed to defend the firm.
• Financial sector fraud on the rise. Fraud is increasing twice as fast in the financial sector as in other sectors, according to Kroll's annual Global Fraud Report, released Monday. In a survey, senior executives said North America had been particularly hit hard by the financial crisis: the average financial services company lost over $15M to fraud over the past three years. The report comes as sources say investigators plan to charge 10 more securities dealers with insider trading, some linked to Galleon Group, which is at the center of one of the biggest-ever undercover operations into illegal trading (see above).
• Bair speaks up for small banks. FDIC head Sheila Bair warned Monday small community banks are struggling to compete against their too-big-to-fail rivals. "Too big to fail has become worse," she said, "it's become explicit when it was implicit before." Bair contends government guarantees create competitive disparities between large and small banks, because "everybody knows small institutions can fail," making it more expensive for them to raise capital and secure funding.
• China fires new salvo in trade tussle. In the latest in a series of China-U.S. trade disputes, China's Ministry of Commerce took preliminary measures Monday to impose tariffs of as much as 36% on certain nylon imports from the U.S., saying the imports have damaged the domestic industry. The ruling affects imports of Nylon 6, used to manufacture a variety of products, including toothpaste and chiffon. Affected U.S. firms include BASF's (BASFY.PK) U.S. arm and Honeywell (HON).
• Group support for Microsoft/Yahoo tie-up. In an open letter, advertising industry heavyweights urged the Department of Justice to fast-track approval of a Microsoft (MSFT) / Yahoo (YHOO) tie-up, saying the potential benefits for advertisers, marketing services agencies, Web site publishers and consumers are "too important to wait for." Google (GOOG) remained more circumspect, perhaps because it doesn’t want to alienate customers.

Earnings: Before Open

• Autoliv (ALV): Q3 EPS of $0.36 beats by $0.08. Revenue of $1.33B (-14.2%) vs. $1.28B. Shares -0.4% premarket. (PR)
• Bank of New York Mellon (BK): Q3 EPS of $0.54 beats by $0.06. Revenue of $3.33B (+3.7%) vs. $3.18B. Provision for credit losses goes to $147M from $61M last quarter. (PR)
• Biogen Idec (BIIB): Q3 EPS of $1.12 beats by $0.08. Revenue of $1.12B (+2.8%) in-line. Shares -1.9% premarket. (PR)
• BlackRock (BLK): Q3 EPS of $2.10 beats by $0.17. Revenue of $1.14B (-13.2%) in-line. "Improving investor sentiment was the most important factor in third quarter results. Clients are putting money back to work in the markets, driving inflows in equities and bonds, and outflows in money market funds industry-wide." Shares +0.9% premarket. (PR)
• Brinker International (EAT): FQ1 EPS of $0.17 beats by $0.02. Revenue of $778M (-20.9%) vs. $766M. Cost of sales fell to 28.2% from 28.4% last quarter. (PR)
• Caterpillar (CAT): Q3 EPS of $0.64 beats by $0.58. Revenue of $7.29B vs. $7.49B. "We believe the third quarter marked the low point for Caterpillar sales and revenues in what has been the toughest recession since the 1930s. We are seeing encouraging signs that indicate a recovery may be underway." Shares +4.4% premarket. (PR)
• China Mobile (CHL): Q3 net profit of 28.6B yuan ($4.2B), up 2.6% from 27.9B last year, short of consensus of 29.2B. Sales rose 9% to 114.1B yuan. Ebitda rose 5% to 57.8B yuan, short of 58.1B consensus. (Bloomberg)
• China Telecom (CHA): Q3 profit of 2.39B yuan ($350M), down from 4.6B last year, and well short of consensus of 3.68B. Ebitda profit margin slipped to 41.1% from 42.3%. (Reuters)
• Coach (COH): FQ1 EPS of $0.44 beats by $0.05. Revenue of $761M (+1.1%) vs. $754M. (PR)
• Coca-Cola (KO): Q3 EPS of $0.82 in-line. Revenue of $8.04B (-4.2%) vs. $8.11B. "We expect the consumer to continue facing economic uncertainties into 2010 and for consumer sentiment to recover slowly.: Shares -1.2% premarket. (PR)
• Comerica (CMA): Q3 EPS of -$0.10 beats by $0.43. $311M provision for loan losses, unchanged from Q2. (PR)
• Diamondrock Hospitality (DRH): Q3 FFO of $0.19 beats by $0.02. Revenue of $138M (-14.6%) vs. $134M. (PR)
• DuPont (DD): Q3 EPS of $0.45 beats by $0.12. Revenue of $5.96B (-18.3%) vs. $6.14B. Sees full-year EPS of $1.95-2.05 vs. $1.83. "We see overall sequential improvement in our industrial businesses as market conditions begin to firm." (PR)
• Forest Laboratories (FRX): FQ2 EPS of $0.85 misses by $0.01. Revenue of $963M (+4%) vs. $1B. (PR)
• Great Atlantic & Pacific Tea Company (GAP): FQ2 EPS of -$1.18 misses by $0.47. Revenue of $2.06B (-5.4%) vs. $2.13B. "The current challenging economy continues to impact our business. The macro headwinds including rising unemployment, intensifying price competition and now also deflation are creating an even more difficult short-term economic environment." Shares -9.7% premarket. (PR)
• Illinois Tool Works (ITW): Q3 EPS of $0.60 beats by $0.07. Revenue of $3.58B (-19.8%) in-line. Operating margin 13.5% up from 9.9% last quarter. (PR)
• Invesco (IVZ): Q3 EPS of $0.24 in-line. Revenue of $706M vs. $687M. Shares +3.6% premarket. IVZ announced yesterday it would acquire Morgan Stanley's (MS) retail asset management business, including Van Kampen Investments." (PR)
• Jefferies Group (JEF): Q3 EPS of $0.42 beats by $0.14. Revenue of $M (+154.5%) in-line. Shares +6.1% premarket. (PR)
• Journal Communications (JRN): Q3 EPS of $0.02 misses by $0.06. Revenue of $105M (-22.9%) vs. $108M. (PR)
• LaBranche (LAB): Q3 EPS of -$0.22 misses by $0.27. Revenue of $M in-line. Shares -4.9% premarket. (PR)
• Lockheed Martin (LMT): Q3 EPS of $2.07 vs. consensus of $1.83. Revenue of $11.06B (+4.5%) vs. $11.4B. (PR)
• Lexmark (LXK): Q3 EPS of $0.65 beats by $0.20. Revenue of $958M (+6%) vs. $901M. Gross margin 32.7% vs. 32.5%. Sees Q4 EPS of $0.50-0.60 vs. $0.47, revenue "up slightly." Stronger than expected customer demand drove better than expected growth. (PR)
• Marshall & Ilsley (MI): Q3 EPS of -$0.68 in-line. Average loans and leases fell 6% to $47.1B. "There are some encouraging early signs that credit quality is improving, but we realize it will take a few more quarters to fully address our problem loans." Announces $775M common stock offering. Shares -10.2% premarket. (PR)
• Parker-Hannifin (PH): FQ1 EPS of $0.45 beats by $0.28. Revenue of $2.24B (-27%) vs. $2.17B. Shares +4.9% premarket. (PR)
• Peabody (BTU): Q3 EPS of $0.49 beats by $0.26. Revenue of $1.67B (+24.6%) vs. $1.42B. Shares +4.2% premarket. (PR)
• Pfizer (PFE): Q3 EPS of $0.51 beats by $0.03. Revenue of $11.62B (-2.9%) vs. $11.41B. Sees full-year EPS of $2.00-2.05 vs. $1.98. (PR)
• Precision Castparts (PCP): FQ2 EPS of $1.54 misses by $0.09. Revenue of $1.3B (-27.6%) vs. $1.4B. "From a top-line perspective, overall sales declines seem to be bottoming out in the second quarter." Shares -3.1% premarket. (PR)
• Regions Financial (RF): Q3 EPS of -$0.37 misses by $0.12. Revenue of $1.62B (-20.3%) vs. $1.58B. Allowance for credit losses +2.9% to $1.025B. Shares +0.35% premarket. (PR)
• Sherwin Williams (SHW): Q3 EPS of $1.51 beats by $0.16. Revenue of $2B (-12%) in-line. Sees Q4 EPS of $0.35-0.55 vs. $0.61, and revenue down 8-12% Y/Y. (PR)
• State Street (STT): Q3 EPS of $1.05 beats by $0.01. Revenue of $2.24B (-19.3%) in-line. Shares -0.75% premarket. (PR)
• UAL (UAUA): Q3 EPS of -$0.43 beats by $0.51. Revenue of $4.43B (-20.3%) in-line. Shares +8.1% premarket. (PR)
• UnitedHealth (UNH): Q3 EPS of $0.89 beats by $0.12. Revenue of $21.7B (+7.6%) vs. $21.56B. (PR)
• United Technologies (UTX): Q3 EPS of $1.14 beats by $0.02. Revenue of $13.38B (-11.3%) in-line. "Order rates for most of our businesses have largely stabilized, although the shape of recovery is still uncertain." (PR)
• Western Union (WU): Q3 EPS of $0.33 beats by $0.01. Revenue of $1.31B (-4.6%) in-line. Says recent stabilization trends are encouraging. (PR)

Earnings: Mon. After Close

• Apple (AAPL): FQ4 EPS of $1.82 beats by $0.40. Sales of $9.87B vs. $9.2B. Sees FQ1 EPS of $1.70-1.87 vs. consensus of $1.91 on sales of $11.3-11.6B, in line. Sold 3.05M Macs, 10.2M iPods, and 7.4M iPhones during quarter. Gross margin 36.6%. Shares +5.9% AH. (PR)
• Atheros Communications (ATHR): Q3 EPS of $0.46 beats by $0.08. Revenue of $157M (+13%) vs. $147M. Shares +2.1% AH. (PR)
• Boston Scientific (BSX): Q3 EPS of $0.19 beats by $0.05. Revenue of $2.03B (+3%) vs. $2.04B. Sees Q4 EPS of $0.17-0.21 vs. $0.17. Expects full-year adjusted EPS of $0.75-0.79 vs. $0.56. Shares -7% AH. (PR)
• JDA Software Group (JDAS): Q3 EPS of $0.40 beats by $0.04. Revenue of $96M (-3%) vs. $92M. Shares -2.8% AH. (PR)
• Lincare (LNCR): Q3 EPS of $0.53 beats by $0.01. Revenue of $393M (-3%) vs. $391M. Shares -0.8% AH. (PR)
• Packaging Corp. of America (PKG): Q3 EPS of $0.25 in-line. Revenue of $554M (-11%) vs. $549M. Sees Q4 EPS of $0.13 vs. $0.17. Shares -7.4% AH. (PR)
• Steel Dynamics (STLD): Q3 EPS of $0.30 beats by $0.07. Revenue of $1.2B (-54%) vs. $1.1B. Shares +2.6% AH. (PR)
• Texas Instruments (TXN): Q3 EPS of $0.42 beats by $0.03. Revenue of $2.9B (-15%) vs. $2.8B. Sees Q4 EPS of $0.42-0.50 vs. $0.40. "Our balance sheet is strong and has allowed us to opportunistically make investments in Analog and Embedded Processing throughout this downturn that should provide returns for years to come." Shares +2% AH. (PR)
• UDR Inc. (UDR): Q3 FFO of $0.31 beats by $0.01. Rental income of $150M (+2%) vs. $149M. Lowers full-year FFO guidance to $1.14-1.20 from $1.23-1.35, vs. consensus of $1.27. Shares -0.5% AH. (PR)
• Volterra Semiconductor (VLTR): Q3 EPS of $0.19 misses by $0.01. Revenue of $29.7M (-3%) in-line. Shares -10.3% AH. (PR)
• Werner (WERN): Q3 EPS of $0.26 beats by $0.06. Revenue of $429M (-27%) vs. $428M. Shares +3.3% AH. (PR)
• Zions Bancorp (ZION): Q3 EPS of -$1.41 misses by $0.17. Revenue of $753M (+29%) vs. $633M. Shares -1.1% AH. (PR)

Today's Markets

Asian markets were mostly higher Tuesday, while Europe stocks were mostly lower. Nasdaq futures are well higher on the strength of Apple's (AAPL) blowout Q4; other indexes are flat.

Q3 2009 Earnings Call

October 19, 2009 5:30 pm ET

Q2 2009 Earnings Call

July 20, 2009 5:30 pm ET

Q1 2009 Earnings Call

April 20, 2009 4:30 pm EST

In a bull market, valuation plays second fiddle to growth and momentum. Even in a bear market, if one can identify companies that have the capacity to stand up to the headwinds, one can benefit from "crowding in". Simply put, the investors that like growth have very few options, so they all focus on the same few names, driving them potentially to very rich valuations.

I believe that we are in a bear market, though, as I have described, I expect the investment climate to be good this quarter. My views are based less on any change in the economic outlook (still lousy) but more on valuation for the most part. Simply stated, stocks overreacted during Q1, with too many stocks of good companies pounded beyond merit while the bad ones were perhaps pounded even more. I have written about small-caps generally being attractive (back to same relative price now after getting worse subsequent to my article), but I am a bit nervous about the valuations of some of the ones I have favored and have sold or trimmed many of them (America's CarMart (CRMT), Dorman Products (DORM), Men's Wearhouse (MW), Met-Pro (MPR), Shoe Carnival (SCVL), and Thor (THO)). I have written about several of these companies, all of which were deep value plays. I was definitely early on most, but, fortunately, I used the lower prices to build larger positions. I credit the strong YTD performance of my Top 20 Model Portfolio (up 9.9%) to the massive recoveries in these small-cap names (primarily consumer discretionary).

Q4 2008 Earnings Call

January 26, 2009 5:30 pm ET

Q3 2008 Earnings Call

October 20, 2008 5:30 pm ET

Q2 2008 Earnings Call

July 21, 2008 5:30 pm ET

• Ofheo warns of more GSE writedowns. Fannie (FNM) and Freddie (FRE) regulator Ofheo cautions the GSEs may be hit by more writedowns after they expanded their purchases of subprime and Alt-A mortgages even as other investors fled. The value of their $217B in 'non-agency' debt continues to fall as other firms write down their portfolios. "To the extent that [other] institutions recognize fair value losses on their private-label portfolios under GAAP, Fannie Mae and Freddie Mac may have to do so as well," it says. Freddie's exposure appears to be about twice that of Fannie.
• Fannie, Freddie books under scrutiny. Officials from the Fed and the Office of the Comptroller of the Currency are 'combing' the books of Fannie Mae (FNM) and Freddie Mac (FRE), a source says, to assess the GSEs' financial condition in case the government needs to step in and take them over. Their regulator Ofheo has said their capital remains above regulatory minimums. Treasury Secretary Henry Paulson said Monday he still believes the firms have enough cash, but admitted to some confusion as to whom to believe - the markets or Ofheo.
After you finish reading Wall Street BreakfastSeeking Alpha's Market Currentswill keep you current all day long.
• Apple dives on weak outlook, Jobs's health. Shares of Apple (AAPL) fell more than 10% in extended trading despite EPS and revenue that exceeded analyst consensus after its FQ4 outlook disappointed (see below), and investors continued to fret over CEO Steve Jobs's health. Apple did little to dispel the speculation when the inevitable question came up: "I’m really sorry to ask, because it’s a very private matter, but would you mind addressing" yesterday's NY Post report that called the venerated chief's health into question, Lehman's Ben Reitzes asked during the company's earnings call. "Ben, Steve loves Apple. He serves as the CEO at the pleasure of Apple's board, and has no plans to leave Apple. Steve’s health is a private matter."
• TV's about to get costlier. TiVo (TIVO) is looking to turn the remote control into an electronic credit card. In partnership with Amazon.com (AMZN), viewers will soon be seeing links to buy products like CDs, DVDs and books that appear on, say Oprah, Letterman, The Daily Show - or The Simpsons - during both live programming and commercials.
• GE and Mubadala launch multi-billion dollar global investment fund. GE (GE) is partnering with Abu Dhabi's Mubadala Development Co. in an $8B fund ($4B each) to invest in financial assets hurt by the global credit crunch. The two hope to reach $40B in assets. "We can use our unique financial and industrial capabilities to establish profitable relationships across a number of businesses and we welcome them as a long-term shareholder," GE CEO Jeffery Immelt said.
• Brocade to buy Foundry Networks. Brocade Communications Systems (BRCD) said late Monday it will acquire Foundry Networks (FDRY) for $19.25 in cash and stock. Brocade says the move will help it develop "a networking infrastructure strategy that will serve as the foundation for capitalizing on these dynamic opportunities." Foundry closed at $13.66, and jumped 32% to $18.08 in AH trading. Keep an eye on Foundry's (FDRY) peers: NT, ALU, COMS, JNPR, and FFIV.
• Roche offer attracts analyst scorn. Analysts unanimously decided Roche's (RHHBY.PK) offers to buy the 44% of Genentech (DNA) it doesn't own for $89/share ($43.7B) (a one-day premium of 8.8% and one month premium of 19%) way undervalues the company. Lazard analysts said DNA will likely strive to remain independent, while Bernstein's Geoffrey Porges cautioned a Roche/Genentech link-up would cause "an irrevocable breach in [the pair's] relations," and many DNA top scientists would likely move on if it became a research arm of Roche. Rodman and Renshaw called Roche's $89 opening bid laughable. Shares finished +15% to $93.88, indicating markets tend to agree it's a lowball.
• Vytorin study disappoints. Shares of Schering-Plough (SGP -12%) and Merck (MRK -6%) plunged Monday after their jointly-produced cholesterol drug Vytorin proves ineffective for treatment of aeortic valve disease, and raises cancer red flags. Earnings shortfalls sent the pair further down in extended trading (see below).
• Accounting errors lead to WellCare earnings restatement. WellCare Group (WCG) said after the close Monday it will restate its financial statements from 2004 to Q2 2007 due to accounting errors, which will lead to reduced EPS over some of the periods. Shares gained 6% in AH trading.
• ICSC's weekly retail sales index rose by 0.1%.
• June Leading Indicators: -0.1%, in-line. May -0.2% revised from +0.1%. The decline has moderated, but continues to be widespread.

Earnings: Tuesday Before Open

• Assured Guaranty (AGO): Sees Q2 EPS of $0.42 vs. $0.57. AGO says it's disturbed by Moody's 'possible downgrade' Monday, which it sees as unjustified. [PR]
• Autoliv (ALV): EPS of $1.24 beats by $0.01. Revenue of $1.91B (+10.4%) in-line. [PR]
• Baker Hughes (BHI): Q2 EPS of $1.36 beats by $0.12. Revenue of $3B (+18.1%) vs. $2.76B. [PR]
• BJ Services (BJS): EPS of $.048 beats by $0.08. Revenue of $1.33B (+15.2%) vs. $1.24B. Sees FQ4 EPS of $0.54-0.57 vs. $0.50. [PR]
• Canadian Pacific Railway (CP): EPS of C$1.00 misses by $0.02. Revenue of C$1.22B (+0.4%) in-line. [PR]
• Caterpillar (CAT): EPS of $1.74 beats by $0.20. Revenue of $13.62B (+20%) vs. $12.69B. Shares +2.5%. "Never in my 35 plus years with the company have I seen Caterpillar do so well in the face of such a difficult economic climate in the U.S." [PR]
• Check Point Software (CHKP): Q2 EPS of $0.43 in-line. Revenue of $200M (+13.3%) vs. $195M. [PR]
• CME Group (CME): EPS of $3.93 beats by $0.08. Revenue of $563M (+71.1%) in-line. [PR]
• Corn Products International (CPO): EPS of $0.90 beats by $0.07. Revenue of $1.03B (+20%) in-line. Sees full-year EPS of $3.15-3.35 vs. $3.11. [PR]
• Domino's Pizza (DPZ): EPS of $0.22 misses by $0.01. Revenue of $334 (-1.8%) vs. $332. "Returning to positive sales comps in the U.S. has proven difficult." [PR]
• DuPont (DD): EPS of $1.11 beats by $0.04. Revenue of $8.84B (+12.2%) vs. $8.47B. [PR]
• Ericsson (ERIC): Q2 EPS of 0.60 kroner misses by 0.37. Revenue of 48.53B kroner vs. 48.08B. Operating profit fell to 2.89B from 9.26B a year ago. Margin fell to 10% from 19%. [DJ]
• Fifth Third Bancorp (FITB): EPS of $0.05 beats by $0.05. [PR]
• Forest Laboratories (FRX): EPS of $0.87 beats by $0.07. Revenue of $967M (+4.2%) in-line. Shares -0.4%. [PR]
• Freeport-McMoRan (FCX): EPS of $2.25 misses by $0.19. Revenue of $5.44B (unchanged). Shares -3.2%. [PR]
• Gentex (GNTX): EPS of $0.19 misses by $0.01. Revenue of $170M (+4.3%) in-line. [PR]
• Halliburton (HAL): EPS of $0.68 in-line. Revenue of $4.49B (+20.1%) vs. $4.25B. [PR]
• JetBlue Airways (JBLU): EPS of -$0.03 beats by $0.04. Revenue of $859M (+17.7%) in-line. [PR]
• KeyCorp (KEY): EPS of -$2.70 misses by $0.12, including a previously disclosed $1B tax charge. Will reduce dividend in Q3. [PR]
• Lexmark (LXK): EPS of $0.96 beats by $0.18. Revenue of $1.14B (-5.7%) in-line. [PR]
• Lockheed Martin (LMT): EPS of $2.01 beats by $0.13. Revenue of $11.04B (+3.6%) vs. $10.86B. [PR]
• PACCAR (PCAR): EPS of $0.86 beats by $0.02. Revenue of $3.78B (+10.3%) in-line. Shares -4%. [PR]
• Regions Financial (RF): EPS of $0.39 misses by $0.03. Reduces dividend to $0.10 from $0.38. Shares -4%. [PR]
• SunTrust Banks (STI): EPS of $0.78 beats by $0.14. Revenue of $2.6B (+9.4%) vs. $2.13B. [PR]
• SuperValu (SVU): EPS of $0.79 beats by $0.03. Revenue of $13.35B (+0.4%) vs. $13.19B. [PR]
• UnitedHealth (UNH): EPS of $0.67 beats by $0.03. Revenue of $20.27B (+6.7%) vs. $20.04B. Sees full-year EPS of $2.95-3.05 vs. $2.95. [PR]
• UPS (UPS): EPS of $0.85 in-line. Revenue of $13B (+6.7%) vs. $12.81B. Sees full-year EPS of $3.50-3.70 vs. $3.64. It sees slightly stronger results in the second half. Shares -2.5%. [PR]
• Vodafone (VOD): FQ1 sales of £9.82B (+19.1%) in-line. Sees full-year sales at the bottom of its £39.88-40.7B range; profit outlook unchanged at £11-11.5B. [DJ]
• Wachovia (WB): EPS of $-1.27 misses by $0.49. The loss includes a $6.1B goodwill impairment charge reflecting declining market valuations and asset values. Adds $5.6B to its loan-loss reserve to increase it by $4.2B and cover charge-offs. Cuts dividend to $0.05 from $0.375. Shares -10%. [PR]
• Webster Financial (WBS): Q2 EPS of $0.42 beats by $0.02. [PR]
• Western Union (WU): EPS of $0.33 beats by $0.02. Revenue of $1.35B (+12%) in-line. Sees full-year EPS of $1.29-1.33 vs. $1.28. [PR]
• XM Satellite Radio (XMSR): EPS of -$0.38 beats by $0.03. Revenue of $318M (+14.8%) vs. $323M. [PR]

Earnings: Monday After Close

• American Express (AXP): Q2 EPS of $0.56 misses by $0.27. Revenue of $7.48B (+7.9%) vs. $7.6B. Loss provisions of $1.5B, vs. $640B last year. "In light of the weakening economy, we are no longer tracking to our prior forecast of 4-6% EPS growth." "Consumer spending slowed during the latter part of the quarter and credit indicators deteriorated beyond our expectations." Shares -11%. [PR]
• America Movil (AMX): Q2 profits rise 25% after adding 6.1M new mobile customers. Shares +0.1%. [Reuters]
• Amylin Pharmaceuticals (AMLN): Q2 EPS of -$0.47 beats by $0.02. Revenue of $222M (+12.7%) in-line. Shares -1%. [PR]
• Apple (AAPL): FQ3 EPS of $1.19 beats by $0.11. Revenue of $7.46B (+38%) vs. $7.37B. Sees Q4 EPS of $1 vs. $1.24, and revenue of $7.8B vs. $8.32B. Sold 11.01M iPods in Q3 (+12%); 717,000 iPhones (doesn't include iPhone 3G); 2.5M Macs. Shares -10%. [PR]
• Boston Scientific (BSX): Q2 EPS of $0.20 beats by $0.09. Revenue of $2.02B (-2.3%) in-line. Sees Q3 EPS of $0.14-0.19 vs. $0.13. Shares -5%. [PR]
• Canadian National Railway (CNI): Q2 EPS of C$0.90 beats by $0.04. Revenue of C$2.1B in-line. Shares +2%. [PR]
• Celanese (CE): Q2 EPS of $1.20 beats by $0.06. Revenue of $1.87B (+20.1%) in-line. Sees full-year EPS of $3.60-3.85 vs. $3.98. [PR]
• Equifax (EFX): Q2 EPS of $0.64 beats by $0.02. Revenue of $502M (+10.4%) vs. $508M. Remains confident in full-year performance. [PR]
• Everest Re Group (RE): Q2 EPS of $2.90 misses by $0.37. Revenue of $1.08B (-15%) in-line. [PR]
• F.N.B. (FNB): Q2 EPS of $0.17 misses by $0.10. Shares -8%. [PR]
• Foundry Networks (FDRY): Q2 EPS of $0.17 beats by $0.02. Revenue of $161M (+12.2%) vs. $153.5M. Shares +32% on Brocade (BRCD) buyout. [PR]
• Hercules (HPC): Q2 EPS of $0.54 beats by $0.11. Revenue of $613M +11.6%) vs. $601M. Shares +0.2%. [PR]
• Hexcel (HXL): Q2 EPS of $0.21 misses by $0.03. Revenue of $359M (+24.1%) vs. $337M. Sees full-year EPS of $0.90-0.95 vs. $0.96. Shares -2%. [PR]
• Jacobs Engineering (JEC): EPS of $0.87 beats by $0.05. Revenue of $2.92B (+40.1%) vs. $2.75B. [PR]
• Lincare (LNCR): Q2 EPS of $0.82 beats by $0.10. Revenue of $428M (+7.9%) in-line. Shares +1.5%. [PR]
• Logitech (LOGI): EPS of $0.16 misses by $0.03. Revenue of $509M (+18.4%) in-line. Shares +3.5%. [PR]
• Merck (MRK): Q2 EPS of $0.86 beats by $0.03. Revenue of $6.05B (-1%) in-line. No guidance as it is still assessing the impact of today's Vytorin test results. Shares -7%. [PR]
• Mohawk Industries (MHK): Q2 EPS of $1.29 beats by $0.02. Revenue of $1.84B (-6.9%) in-line. Sees Q3 EPS of $1.06-1.15 vs. $1.40. Shares -4%. [PR]
• QLogic (QLGC): FQ1 EPS of $0.31 beats by $0.02. Revenue of $168M (+30.6%) vs. $162M. [PR]
• Royal Caribbean (RCL): Q2 EPS of $0.40 in-line. Revenue of $1.86B (+6.9%) in-line. Sees FQ3 EPS of $1.65-1.70 vs. $1.64. Plans to reduce spending by $125M/year. [PR]
• SanDisk (SNDK): Q2 EPS of -$0.10 misses by $0.23. Revenue of $816M (-1.3%) vs. $906M. Sees Q3 revenue of $750-850M vs. $1.09B. Shares -14%. [PR]
• Schering-Plough (SGP): Q2 EPS of $0.45 beats by $0.03. Revenue of $4.9B vs. $4.77B. Shares -3.2%. [PR]
• Steel Dynamics (STLD): EPS of $1.05 beats by $0.12. Revenue of $2.4B (163.8%) vs. $2.35B. Sees Q3 EPS of $1.05-1.15 vs. $0.97, and full-year EPS of $3.80-3.90 vs. $3.46. Shares +2%. [PR]
• Texas Instruments (TXN): Q2 EPS of $0.44 misses by $0.02. Revenue of $3.4B (-2.2%) in-line. Sees Q3 EPS of $0.41-0.47 vs. $0.51 and revenue of $3.26-3.54B vs. $3.56B. Demand slowed unexpectedly in June as distributors did not restock. Shares -11.5%. [PR]
• Volterra Semiconductor (VLTR): Q2 EPS of $0.25 beats by $0.07. Revenue of $28.7M (+55.3%) vs. $27.5M. Shares +1%. [PR]
• Woodward Governor (WGOV): FQ3 EPS of $0.47 beats by $0.04. Revenue of $330M vs. $309M. Sees full-year EPS of $1.75 vs. $1.67. Shares +5%. [PR]

Today's Markets

• Asia closed mixed Tuesday, with Tokyo up sharply after a day off on Monday. Nikkei +3% to 13,185. Hang Seng flat at 22,527. Shanghai -0.5% to 2,846. BSE +1.8% to 14,105.
• Europe markets are sharply lower at midday. London -1.75%. Paris -1.2%. Frankfurt -1%.
• Futures have not recovered from the post-close drop on weak earnings. Dow -1%. S&P -0.9%. Nasdaq -1.9%. Crude -0.1% to $130.86. Gold +1% to $973.

AA ACMR ACS ACXM ADP AEM AEO AET AFFM AHL AIB AINV ALL AME AN APA ARP ATWO AVID AVZA AXS AYR BAGL BCPC BDK BGC BHI BJS BKS BLL BP BRO BRS BSET CAM CBI CBK CCK CCRT CDNS CFI CKH CMI COG COLM COMS CPB CRDN CROX CSCO CSL CTB DD DELL DFG DLM DRYS DUK DVN EGLE ENH EP ETP FAST FCX FDRY FITB FLEX FLXS FRPT FRZ FSR FTEK FTO GFF GHM GIL GMT GNK HAIN HAL HAR HAST HCC HCN HCP HELE HK HLYS HNT HNZ HOC HON HRS HRZ HTH INFS IPSU IR IRE ISCA ISYS IVN JCI JNX JOSB KCI KEY KMX KOF LMC LPX LRCX LSTR LZB MAN MAS MCRL MGIC MHK MHP MI MKSI MOT MPS MPWR MWA/A MXGL MYE NBR NBTY NFX NG NM NRG NSHA NTGR NVS NWLIA OC OCR ODP OIS OKE OMAB ONNN ORI OSK OXY PAYX PBI PBY PCZ PHX PKD PKI PPC PPG PRE PRU PTEN PVA PWR PXP PZZA RCII RDC RDK ROP RS RTN SAFM SCX SENEB SFY SGIC SGY SI SII SJM SKM SKX SLB SLGN SNDK SNG SNX SNY SPSS STZ SVR SVU SWN TECUA TEX THOR TLK TMS TPX TRMA TRN TRV TSC TSO TTC TXT UNF UNT URI USU VE VLGEA VLTR VZ WAG WDC WFT WGOV WNC WRB WTI WTIU WTM WY XEL Y ZNT ZZ

These high performance power solutions maximize performance while minimizing size are used in computing, storage, networking and consumer markets.

Q1 2008 Earnings Call

April 21, 2008 5:30 pm ET

Q4 2007 Earnings Call

January 28, 2008 5:30 pm ET

Goldman analysts Jim Covello, Sarah Friar and Derek Bingham wrote that they have become “incrementally more cautious on tech fundamentals given the current macroeconomic backdrop,” which suggests soft capital spending in 2008, in particular for the U.S. “We believe CIOs may delay their purchases in the early part of 2008,”they wrote.

Volterra Semiconductor Corp. (VLTR)

Q3 2007 Earnings Call

The company said that due to “a process defect with one of the company’s vendors,” it has had to recall $2 million to $3 million of product, resulting in a second quarter charge of $3 million to $4 million.

Volterra said it has identified the source of the defect and has worked with its vendor to replicate and correct the defective process. The company says it has worked with affected customers to initiate the recall and “to minimize any interruption to their business and to minimize any financial impact to them as a result of this issue.”

VLTR 1-yr chart:

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