“Verizon Communications Inc. (VZ), the second-largest U.S. phone company, reported an increase in profitability at its wireless unit that topped analyst estimates as sales of Apple Inc. (AAPL)’s iPhone boosted customers’ bills.

The profit margin in the Verizon Wireless business, based on earnings before interest, taxes, depreciation and amortization, rose to 50 percent in the third-quarter from 49 percent in the previous quarter, the New York-based company said today in a statement. The average estimate of eight analysts compiled by Bloomberg was for 48.4 percent.”

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“Morgan Stanley (MS), the sixth-largest U.S. bank, reported third-quarter results that beat analysts’ estimates as revenue from fixed-income trading almost doubled from the second quarter.

Morgan Stanley posted a loss of $1.01 billion, or 55 cents a share, compared with a profit of $2.2 billion, or $1.15, a year earlier, the New York-based firm said today in a statement. Excluding accounting adjustments and a one-time restructuring cost, profit was about 35 cents a share, compared with the 25- cent average estimate of 22 analysts surveyed by Bloomberg.

Chief Executive Officer James Gorman, 54, is trying to improve returns at the brokerage unit and shrink the fixed- income trading division to reduce capital demands. The bank had the lowest first-half return on equity of the 10 largest U.S. lenders and is trading at two-thirds of its liquidation value, compared with 96 percent at Goldman Sachs Group Inc.”

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“(Reuters) – Bank of America Corp eked out a third-quarter profit even after taking $1.6 billion of litigation charges, as the second-largest U.S. bank set aside less money to cover bad loans.

The results show Chief Executive Brian Moynihan is still haunted by acquisitions forged during the financial crisis. The bank last month agreed to pay $2.4 billion to settle claims that it hid crucial information from shareholders when it bought investment bank Merrill Lynch & Co at the height of the financial crisis.

Bank of America had already set aside some money for the settlement, but it said last month that the pact, a UK tax charge and an accounting charge related to the value of its debt would reduce third-quarter earnings by 28 cents per share.

To boost profits, the bank launched a broad cost-cutting program in 2011 that aims to eliminate $8 billion in annual expenses and 30,000 jobs.”

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“(Reuters) – American Airlines parent AMR Corp reported a wider quarterly net loss on Wednesday, as it took charges tied to worker severance costs and its Chapter 11 bankruptcy reorganization.

But excluding the special items, the company had a profit of $110 million for the third quarter as fuel costs fell and revenue edged higher.

The company, which had pilot absences and maintenance issues that led to flight cancellations and delays at American in the second half of September, said those incidents had no material effect on third-quarter results.

AMR, which sought U.S. bankruptcy protection last November, said its net loss had widened to $238 million, or 71 cents a share, from $162 million, or 48 cents a share, a year earlier.

Revenue rose 0.8 percent to $6.43 billion. Total operating expenses were up 0.6 percent, but fuel costs fell 3.3 percent.”

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“(Reuters) – Halliburton Co said third-quarter profit fell due to the high cost of a key ingredient used in its operations and a slowdown in U.S. drilling, which showed no signs of picking up as corporate budgets for the year were largely spent.

Halliburton, the world’s No. 2 oilfield services company, said Wednesday that a drop in North American margins ended up even bigger than the company warned of last month.

Profit from continuing operations matched analysts’ estimates.

Revenue in North America fell 5 percent from the second quarter, mainly on weak demand forhydraulic fracturing services and also due to disruptions caused by Hurricane Isaac.

Oilfield services companies have had far less pricing power in the United States this year as depressednatural gas prices reduced the number of rigs targeting gas to a 13-year low.

The company said that although the U.S. oil-directed rig count rose 3 percent from the second quarter, the increase was not enough to offset the 18 percent drop in natural gas rigs.

“We are also seeing activity reductions by some of our customers as they continue to moderate activity to operate within their stated 2012 budgets,” Chief Executive David Lesar said in a statement…..

Net income fell to $604 million, or 65 cents per share, in the third quarter from $685 million, or 74 cents per share, a year earlier. Revenue rose 9 percent to $7.1 billion.

Income from continuing operations, on an adjusted basis, was 67 cents per share, in line with what analysts expected, according to Thomson Reuters I/B/E/S.”

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“Reuters) – PepsiCo Inc stood by its full-year forecast on Wednesday despite beating earnings expectations in the third quarter as it pours money back into its business.

The maker of Diet Pepsi, Frito-Lay snacks and Tropicana orange juice also reported weaker-than-expected revenue, hurt by the stronger U.S. dollar and the exit of certain businesses.

Its shares moved higher in early trading.

PepsiCo is rounding out a transition year in 2012. It ramped up marketing and streamlined its workforce and portfolio to improve performance, particularly that of North American drinks, which had lagged those of Coca-Cola.

In the just-ended third quarter, sales in that business were hurt by decisions to stop selling unprofitable drinks, including some juices and bottled water packages where Chief Executive Indra Nooyi said there was “a hell of a price war.”

“We won’t chase volume growth at all costs,” Nooyi told analysts. She said moving forward, PepsiCo would focus on categories that were growing profitably.

Third-quarter net income was $1.90 billion, or $1.21 per share, down from $2.00 billion, or $1.25 per share, a year earlier.

Excluding restructuring and other charges and a gain on commodity hedges, earnings were $1.20 per share. On that basis, analysts on average were expecting $1.16 per share, according to Thomson Reuters I/B/E/S.

Revenue fell 5 percent to $16.65 billion, below analysts’ average estimate of $16.90 billion.”

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“The global economic slowdown is prompting companies to curtail technology spending and pushing consumers to favor mobile devices like Apple Inc.’s iPhone over personal computers, eroding profitability at Intel Corp. (INTC) and trimming sales for International Business Machines Corp. (IBM) .

Intel, the largest chipmaker, forecast fourth-quarter gross margins that missed analysts’ estimates, while IBM, the biggest computer-services provider, reported third-quarter revenue that fell short of projections. Shares of both companies declined in late trading yesterday and German trading today.

IBM customers, hurt by anemic demand in home markets, put off software purchases and computer-maintenance contracts. Budget-strapped consumers are shunning PCs to buy cheaper handheld devices such as the iPhone, while businesses are shying away from servers that run networks, sapping demand for Intel chips. The reports bode ill for Microsoft Corp., the No. 1 software maker, which releases results tomorrow.

“It’s not looking good out there,” said Alex Gauna, an analyst at JMP Securities.”

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“U.S. Bancorp (USB), the nation’s biggest regional lender, said third-quarter profit climbed 16 percent to a record, beating analysts’ estimates as mortgage-banking revenue more than doubled.

Net income rose to $1.47 billion, or 74 cents a share, from $1.27 billion, or 64 cents, a year earlier, the Minneapolis- based company said today in a statement. The average estimate of 31 analysts surveyed by Bloomberg was per-share profit of 73 cents.

U.S. Bancorp is focusing on taking market share in mortgage banking, a business that has been a “real positive” for the company, Chief Executive Officer Richard Davis, 54, told investors at a conference last month. Historically low interest rates and government incentive programs are fueling demand for home loans.”

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“Bank of New York Mellon Corp., the world’s largest custody bank, said third-quarter earnings climbed 11 percent as rising stock prices helped expand customer assets.

Net income increased to $720 million, or 61 cents a share, from $651 million, or 53 cents, a year earlier, the New York- based bank said today in a statement. Analysts had expected the New York-based company to report a profit of 54 cents a share, according to the average of 16 estimates in a Bloomberg survey.

“It was a better than expected quarter,” Marty Mosby, a Memphis, Tennessee-based analyst at Guggenheim Securities LLC, said in a telephone interview. “It showed they can generate some revenue growth while still holding down expenses.” Mosby, who rates the shares a buy, predicts improvement next year as the bank adds customers and benefits from cost-cutting.”

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Bond trading helped $C to beat earnings estimates…

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“Here’s an interesting note via Lance Roberts at StreetTalk.  He notes a recent study from Emory and Duke regarding the tendency for many firms to manipulate their earnings reports:

“There is also another factor that goes into how companies are beating bottom line estimates – legalized manipulation.  Two business professors, Ilia Dichev and Shiva Rajgopal at Emory and Duke, conducted a survey of 169 chief financial officers at publicly-traded companies in the U.S. revealed at least 20 percent of the publicly-traded companies that, as required by law, report earnings results on a quarterly basis are probably fudging the numbers.  Furthermore, almost every single CFO surveyed agreed that this is the case.”

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“Advanced Micro Devices has lowered its outlook for the third quarter and expects revenue to drop by 10 percent due to a slowdown in the PC market due to weak demand.

According to a release, AMD said the outlook was “primarily due to weaker than expected demand across all product lines caused by the challenging macroeconomic environment.””

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“JPMorgan Chase & Co. (JPM), the biggest U.S. bank by assets, posted a record third-quarter profit that beat analysts’ estimates as mortgage revenue soared 72 percent.

Net income rose 34 percent to $5.71 billion, or $1.40 a share, from $4.26 billion, or $1.02, a year earlier, the New York-based company said today in a statement. Earnings, which included a loss on accounting adjustments, beat the average estimate of $1.20 among 30 analysts surveyed by Bloomberg.”

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“Wells Fargo & Co. (WFC), the most valuable U.S. bank and largest mortgage lender, said third-quarter profit increased 22 percent as the cheapest interest rates in history spurred refinancing.

Net income advanced to a record $4.94 billion, or 88 cents a share, from $4.06 billion, or 72 cents, a year earlier, the San Francisco-based bank said today in a statement. That beat the 87-cent average estimate of 33 analysts surveyed by Bloomberg, with some forecasts excluding selected one-time items. The net interest margin narrowed, and Wells Fargo shares fell 2.7 percent in early New York trading.”

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While eps was down yoy for $WGO, revenues are up and production are ramping up for backlog orders.

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Costco & Yum Brands report 

” Alcoa Inc. (AA), the largest U.S. aluminum producer, cut its forecast for global consumption of the metal by 1 percentage point on slowing Chinese demand, helping to trigger a decline in Asian stocks for a third day.”

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Analysts are lowering estimates and telling investors to brace themselves for a not so good earnings reports. Energy and materials are expected to lead to the downside in earnings.

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” Express Hits the Brakes in September

Clothing chain Express said business was going well in August, but then got detailed last month! As a result, third-quarter earnings will be no more than $0.20 a share, compared with previous guidance of $0.27 to $0.32. EXPR craters 17 percent before the bell on my tradeMONSTER platform.”

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“Walgreen says its fiscal fourth quarter net income tumbled 55 percent compared to a year ago when the drugstore operator recorded a big gain from a business sale. Its adjusted earnings still trumped Wall Street expectations.

The nation’s largest drugstore chain says it earned $353 million, or 39 per share, in this year’s quarter. That’s down from $792 million, or 87 cents per share, a year ago.”

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