“(Reuters) – Electronics retailer RadioShack Corp reported lower fourth-quarter sales and said it may have to close stores or sell assets to improve liquidity if business does not pick up by 2014, sending its shares down 6 percent before the bell.

The results underlined the tough task facing new Chief Executive Joseph Magnacca in trying to transform the struggling electronics chain into a specialist retailer of mobile devices.

Despite its ubiquitous presence in the United States, analysts say RadioShack has not done enough to rebrand itself as a destination for mobile phones or to cater to younger customers, who would rather shop online from the likes of Amazon.com Inc or at stores run by phone companies.

The company said in a regulatory filing on Tuesday that its cash and cash equivalents fell to $535.7 million at the end of 2012 from $591.7 million a year ago, as it posted a loss of $139.4 million for the year. (http://r.reuters.com/qak36t)

RadioShack said liquidity may be hurt further in 2013 as it may have to issue letters of credit under a 2016 credit facility. The company said that if operations during the year are significantly worse than 2012, it may have to either borrow against the facility or issue additional letters of credit.

The company reported a net loss of $63.3 million, or 63 cents per share, in the fourth quarter ended December 31, compared with a profit of $11.9 million, or 12 cents per share, a year earlier.

Excluding a $67 million charge to increase a valuation allowance related to deferred tax assets, the company reported earnings of 4 cents per share. Sales fell 7 percent to $1.29 billion.

Analysts on average had expected a loss of 5 cents per share on revenue of $1.36 billion, according to Thomson Reuters I/B/E/S.

Comparable-store sales fell 7 percent….”

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“The week ahead is going to have many key earnings reports. Retail is heavily represented, while technology and banking giants are non-existent. Some of these are stocks which can move big on earnings just alone and others are expected to be sector-influencing stocks that can bleed over into peers. As a reminder, the coming week marks the end of February and brings the start of March.

We have not given detail on every single one but we have given a breakdown or input on those where we have some color to add. The earnings estimates are from Thomson Reuters. We would note that some earnings dates (and the estimates) may change or may have already changed.

As a reminder, retail stocks are complaining about the end of payroll tax holidays on Joe Public and they are also commenting about tax refunds hurting their sales. So far the thought is that this will last one quarter but the verdict is still out on that.

Monday, Feb. 25…”

Full article

“(Reuters) – Hertz Global Holdings Inc reported a quarterly loss due to costs related to its acquisition of Dollar Thrifty, but adjusted profit beat analysts’ expectations and the car rental company forecast strong results for 2013 on higher pricing.

Hertz forecast adjusted earnings of $1.82 to $1.92 per share for 2013 on revenue of $10.85 billion to $10.95 billion.

Analysts on average expect earnings of $1.78 per share on revenue of $10.79 billion, according to Thomson Reuters I/B/E/S.

Hertz is off to a “fast start” for the year, Chief Executive Mark Frissora said in a statement.

Car rental revenue per transaction day at U.S. airports rose 6 percent for Hertz and 2.6 percent for Dollar Thrifty in January, Frissora said.

This compares with a 1.6 percent increase for Hertz in December and 4.6 percent for Dollar Thrifty.

The car rental industry, tied closely to airline traffic and hotel bookings, has benefited from recovering business and travel in the United States.

Pricing in the U.S. commercial business, which serves corporate customers at airports, has been under pressure in recent quarters as the major players try to attract more customers by offering lower prices.

To diversify away from airport rentals, Hertz fought a long battle with rival Avis Budget Group Incover Dollar Thrifty, which serves the leisure car rental market.

After more than two years of first making a public offer, Hertz acquired Dollar Thrifty for $2.6 billion in late 2012 after agreeing to give up 29 Dollar Thrifty airport locations and sell its low-cost Advantage brand….”

Full article

“(Reuters) – Lowe’s Cos Inc’s quarterly results beat analysts’ estimates on Monday as sales benefited from rebuilding after Hurricane Sandy and the retailer’s own efforts to improve product selection and customer service.

The results prompted the world’s No. 2 home improvement chain to forecast higher revenue in the current fiscal year. Lowe’s said it expected total sales to rise about 4 percent from $50.52 billion in year ended on February 1.

The company also forecast a 3.5 percent increase in fiscal-year sales at stores open at least a year.

Lowe’s, which has lagged behind larger rival Home Depot , is in the middle of a makeover. It has closed locations, curbed openings, cut jobs, streamlined its supply chain and invested in its stores and its online business.

Home Depot plans to report its results on Tuesday….”

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Currently $DRI is up nearly 2%…

Source

“Feb 22 (Reuters) – Olive Garden parent Darden Restaurants Inc warned that its third-quarter profit would be below Wall Street estimates, as a severe winter kept customers away.

The company expects blended U.S. same-restaurant sales at its Olive Garden, Red Lobster and LongHorn Steakhouse to be down about 4.5 percent in the third-quarter ending Feb. 24.

Darden said earnings were likely to be between $1.00 and $1.02 per share. Analysts on an average are expecting a profit of $1.13 per share, according to Thomson Reuters I/B/E/S.

The Orlando, Florida-based company’s shares were up marginally before the bell on Friday. They closed at $44.74 on Thursday on the New York Stock Exchange.”

Full report

“Nordstrom, Inc. (NYSE:JWN) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

Gross Margin Performance

Deborah Weinswig – Citi: Can you discuss the gross margin performance in the quarter maybe just give us little more color?

Michael G. Koppel – EVP and CFO: Sure. Our gross profit benefit this quarter by an improvement in markdowns year-over-year. We saw some significant improvement in our women’s apparel business, which was reflected in that, and that was partially offset by the increased costs as it relates to our Fashion Rewards program. But overall a relatively good merchandise margin performance.

Deborah Weinswig – Citi: As your guidance – in the future you talked about not relying onEBIT margin expansion to drive future growth. And obviously there is a lot of moving pieces and Internet growth and growth in the outlet, no Rack business. As we look at all the moving pieces and not much borrowing growth, how should we think about one offsetting the other?…”

Full comentary & report

“Canada’s banks, recognized as the world’s strongest after a year of record profits and rising share prices, will begin to show the effects of a slackening in domestic consumer lending when they report first-quarter results next week.

“The Canadian banks did very well through all of this mess,” said John Kinsey, who helps manage about C$1 billion ($981 million) at Caldwell Securities Ltd. in Toronto, including bank shares. “Now this is kind of a reality check.”

Royal Bank of Canada (RY), which is trading near an all-time high, Toronto-Dominion Bank (TD)and the country’s four other main lenders are expected to post a 6.9 percent increase in per-share profit excluding some items for the quarter ended Jan. 31, according to Darko Mihelic, an analyst at Cormark Securities Inc. in Toronto.

Canadian banks will probably underperform their U.S. peers, which are starting to see signs of retail banking tailwinds, said John Aiken, an analyst at Barclays Plc. Barclays cut its rating forCanadian Imperial Bank of Commerce to underweight from equal weight, and National Bank of Canada to equal weight from overweight, due to greater reliance on domestic retail banking. The firm raised the rating for Bank of Nova Scotia to overweight and for Royal Bank to equal weight from underweight.

The nation’s banks, ranked the world’s soundest by the World Economic Forum for five straight years, face a consumer- lending slowdown as Canadians struggle with record debt levels and a cooling housing market. Finance Minister Jim Flaherty reduced maximum amortization periods for mortgages last year to rein in borrowing. Bank of Canada Governor Mark Carney has repeatedly warned about carrying too much debt….”

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“PALO ALTO, CA–(Marketwire – Feb 21, 2013) – HP ( NYSE : HPQ )

• First quarter non-GAAP diluted earnings per share of $0.82, down 11% from the prior year, above previously provided outlook of $0.68 to $0.71
• First quarter GAAP diluted earnings per share of $0.63, down 14% from the prior year, above previously provided outlook of $0.34 to $0.37 per share
• First quarter net revenue of $28.4 billion, down 6% year over year and down 4% when adjusted for the effects of currency
• Cash flow from operations of $2.6 billion, up 115% from the prior year
• Returned $511 million in cash to shareholders in the form of dividends and share repurchases
• Improved company net debt position for the fourth consecutive quarter by over $1 billion…”

Full report

“AIG Reports Fourth Quarter Operating Income of $290 Million, Including After-Tax Storm Sandy Losses of $1.3 Billion; Fourth Quarter Net Loss of $4.0 Billion

• Fourth quarter net loss reflects $4.4 billion net loss on sale from discontinued operations (International Lease Finance Corporation)
• Book value per share, excluding accumulated other comprehensive income (AOCI), of $57.87, up 15.5 percent for the year
• Remaining AIA shares sold for $6.5 billion and a realized gain of $240 million
• Department of the Treasury sells last of its AIG shares…”
• Full report

“Elon Musk, the high profile CEO of electric car start-up Tesla Motors, has been defending the company and its Model S from criticism as of late.

But he couldn’t overcome criticism from investors Thursday who drove the stock sharply lower after the company posted a bigger than expected loss.

Shares of Tesla (TSLA) tumbled nearly 10% in afternoon trading, its biggest one-day drop in more than a year, after the company announced a $75 million loss on Wednesday night.

During a conference call on Wednesday, Musk tried to balance the earnings miss with some good news, saying Tesla had increased production and decreased capital expenditures which, he said, should allow it to generate a slight profit for the current quarter.

“Due to an enormous amount of hard work by a really dedicated group of people at Tesla, we’re going to be profitable, and I think that’s a pretty big deal,” Musk said.

But comments about profit margins spooked some investors….”

Full article

“Wal-Mart Stores Inc. (WMT), the world’s largest retailer, projected first-quarter profit that trailed analysts’ estimates as an increase in the payroll tax curtails spending among its lower-income shoppers.

Earnings per share in the current quarter will be $1.11 to $1.16, the Bentonville, Arkansas-based company said today in a statement. Analysts projected $1.19, the average of 18 estimates compiled by Bloomberg.

Chief Executive Officer Mike Duke is working to keep prices low after a payroll-tax break expired Dec. 31, causing Americans to pay 2 percentage points more in Social Security taxes. The increased tax bite got Wal-Mart’s February sales off to the worst monthly start in seven years after disappointing results in January, according to executives’ e-mails obtained byBloomberg News.

“The low-end consumer is facing significant headwinds, including higher payroll taxes, delayed tax refunds, higher healthcare contributions, rising gas prices, and poor weather,”Deborah Weinswig, an analyst at Citigroup Inc. in New York, wrote in a report before the results were released.

Wal-Mart fell 0.7 percent to $68.75 at 7:20 a.m. in New York. The shares had gained 1.4 percent this year through yesterday….”

Full article

“BAE Systems Plc (BA/), Europe’s largest arms maker, said it will buy back shares worth as much as 1 billion pounds ($1.5 billion) over three years after demand outside the U.S. and the U.K. helped swell its cash reserves.

BAE gained as much as 6.2 percent, the most since Sept. 12, the day that merger plans were announced with European Aeronautic, Defence & Space Co. BAE said it’s left those plans behind, and the company will embark on its buyback program today, underpinned by net cash of 387 million pounds. Earnings before interest, tax and amortization fell 6.4 percent to 1.89 billion pounds last year, beating analysts’ estimates….”

Full report

“Allianz SE (ALV), Europe’s biggest insurer, said fourth-quarter net income more than doubled after profit from property and casualty insurance unexpectedly rose and year-earlier writedowns weren’t repeated.

Net income advanced to 1.22 billion euros ($1.6 billion) from 492 million euros in the fourth quarter of 2011, the Munich-based company said in an e-mailed statement today. Allianz was expected to earn 1.15 billion euros, according to the average estimate of 11 analysts in a Bloomberg survey.

“I am encouraged by our healthy growth in premiums, especially by recoveries in key European markets,” Chief Financial Officer Dieter Wemmer said in the statement. “This development shows that we are an attractive risk partner.”

European insurers such as Allianz, Axa SA (CS) and Prudential Plc (PRU) benefited from higher prices for some of their products last year after earnings in 2011 were hurt by record losses from natural catastrophes. A recovery in financial markets also helped bring an increase in investment income, outweighing the impact of lower interest rates.

Operating profit in property and casualty insurance rose to 1.26 billion euros in the fourth quarter from 1.09 billion euros a year earlier, beating the 941 million-euro median estimate of 11 analysts surveyed by Bloomberg. Gross written premiums increased 4.7 percent in 2012 as a whole.

The company will propose paying a dividend of 4.50 euros a share from last year’s profit, Diekmann said.

Profit Forecast

Allianz expects to have an operating profit of 9.2 billion euros this year, plus or minus 500 million euros. Operating profit was 9.5 billion euros last year, which matched a target for more than 9 billion euros, the company said….”

Full report

“It’s a grim day for investors in mobile advertising play Millennial Media, as the stock swoons following adisappointing Q4 financial report. Adding to the pressure, Morgan Stanley analyst Jordan Monahan cut his rating on the stock today to Equal Weight from Overweight, asserting that competition in the mobile ad space has emerged sooner than previously expected. Note that Morgan Stanley was the lead underwriter on the Millennial IPO last March. The company launched at $13 a share, and closed the first day of trading at $25; today the stock has dropped to an all-time low.

As noted yesterday, Millennial posted Q4 revenue of $58 million, up 67.8% from a year ago, and up 22% sequentially, but below the Street consensus at $62.9 million. Profits of three cents a share matched the Street consensus. For Q1, the company sees revenue of $48 million to $50 million, below the Street consensus at $56.4 million. The company sees an adjusted EBITDA loss of $1 million to $1.5 million in the quarter; Street consensus had been for an adjusted EBITDA profit of $1.7 million. The company noted on a conference call with the Street that some large brand deals expected in the quarter did not materialize…”

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“Thank heavens for low expectations.

Chinese social-media company Sina(SINA)–that country’s answer to Twitter–has jumped 7.8% to $57.67 this morning, after reporting better than expected earnings, despite sluggish revenue growth and tumbling profits.

Sina reported a profit of $2.4 million yesterday after the close, above analyst forecasts for a $900,000 loss, according to Bloomberg. While the number beat expectations, profits fell 75% from a year ago. Revenues rose just 4.3% to $139.1 million, while profits fell 75%.

Numbers like that were enough to send Chinese search giant Baidu (BIDU) plummeting 10% after its earnings announcement earlier this month, while Sohu.com (SOHU) dropped more than 7%.

So why is the stock surging? Chalk it up to Weibo, the company’s Twitter-like platform.Oppenheimer’s Andy Yeung and Gloria Yu note that Weibo ad revenues grew by 10% during the quarter, which helped to alleviate the damage done by falling revenues in legacy businesses.

They also point out that that gross margins expanded by about 2.6 percentage points during 2012 to 57%, and while operating margins fell 0.45 percentage points last year, they improved by 1.5 percentage points during the fourth quarter. And if the company figures out new ways to boost revenues from Weibo, margins could head higher….”

Full report

“SodaStream International Ltd. (NASDAQ:SODA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.79%.

SodaStream International Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 40.63% to $0.45 in the quarter versus EPS of $0.32 in the year-earlier quarter.

Revenue: Rose 75.14% to $132.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SodaStream International Ltd. reported adjusted EPS income of $0.45 per share. By that measure, the company beat the mean analyst estimate of $0.39. It beat the average revenue estimate of $121.54 million….”

Full article

“Credit Agricole SA, France’s third- largest bank by market value, reported a record fourth-quarter loss after writing down goodwill at its Italian and investment- banking businesses.

The net loss widened 30 percent from a year earlier to 3.98 billion euros ($5.3 billion), the bank, based outside Paris, said in a statement today. The loss exceeded the 3.69 billion- euro average estimate of five analysts surveyed by Bloomberg.

Credit Agricole took 2.67 billion euros in goodwill writedowns in the quarter to reflect stricter accounting rules and a worsening economy, and booked a 706 million-euro additional loss on the sale of its Greek unit Emporiki, a deal completed this month. The French bank has plans for job cuts at its Italian consumer-banking unit and cost-cutting at the investment bank.

“We’ve deeply transformed our group,” Chief Executive OfficerJean-Paul Chifflet, 63, said on a call with journalists. “We will reinforce our financial solidity in 2013 without making a capital increase.” …”

Full report

“AngloGold Ashanti Ltd., the third- biggest producer of the metal, will cut investment in projects this year and may reduce output estimates should labor unrest reawaken in South Africa following a spate of strikes in 2012.

Capital expenditure will decline to $2.1 billion from $2.2 billion in 2012, the company said today in a statement. Gold output, down 17 percent to 859,000 ounces during the fourth quarter because of strikes, may be as much as 950,000 ounces in the three months to March depending on the labor situation. Unrest cut production, reducing profit 29 percent last year.

“In terms of capital and spending disciplines, we tightened up considerably,” said Chief Executive Officer Mark Cutifani, who is leaving the Johannesburg-based company to replaceCynthia Carroll as CEO of Anglo American Plc on April 3. “Capital numbers are being kept tight and we will continue to trim where we don’t see real short-term uplift.”

Strikes that began at platinum operations in August spread to gold, coal and chrome producers, cutting mining output by 10.1 billion rand ($1.1 billion), according to South Africa’s National Treasury. AngloGold, which digs about a third of its metal in the country, may split off the assets from other mines should investors undervalue the business, Cutifani said Nov. 21.

Adjusted earnings excluding one-time items dropped to $924 million, or $2.39 a share, last year from $1.3 billion, or $3.36, the company said today in a statement. That compares with the $3.03 median estimate of 14 analysts surveyed by Bloomberg.

Earnings Decline…”

Full article

“Nutritional and weightloss supplement seller Herbalife just beat fourth-quarter earnings estimates and raised its sales guidance.

Herbalife posted $1.05 EPS. Sales came in at $1.1 billion, according to the earnings release.

On average, analysts polled by Bloomberg expected the multi-level marketing firm to post an adjusted EPS of $1.03 on sales of $1.049 billion.

Here’s an excerpt from the release:

Herbalife Ltd. (HLF) today reported fourth quarter net sales of $1.1 billion, reflecting an increase of 20 percent compared to the same time period in 2011 on volume point growth of 18 percent. Net income for the quarter of $117.8 million, or $1.05 per diluted share, compares to 2011 fourth quarter net income of $105.4 million and EPS of $0.86, respectively.

For the twelve months ended December 31, 2012, the company reported record net sales of $4.1 billion, an 18 percent increase on 20 percent growth in volume compared to 2011. For the same period, the company reported net income of $477.2 million, or $4.05 per diluted share, reflecting an increase of 16 percent and 23 percent, respectively, compared to the 2011 results of $412.6 million and $3.30 per diluted share.

“Herbalife continues to deliver record results in sales and profitability as our independent distributors go deeper into existing markets, developing more and more customers using our nutrition products every day,” said Michael O. Johnson, Herbalife’s chairman and CEO. “Obesity and poor nutrition are global public health problems. Our distributors are proud to be part of the solution.” …”

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“NEW YORK (TheStreet) — Dell (DELL_) reported fourth-quarter results that beat Wall Street estimates after market close, snapping a string of misses

The Round Rock, Texas-based company reported fourth-quarter non-GAAP earnings of 40 cents a share on $14.3 billion in revenue, down 11% year-over-year, but up 4% over the previous quarter. The company noted that networking was strong, with revenue from this segment growing 42%.

Analysts polled by Thomson Reuters were looking for earnings of 39 cents a share on $14.1 billion in revenue.”