Jim Cramer Blog

The Dow Jones Industrial Average chugged along to another record close, topping the mark it last set in February, but the market overall traded mixed. Declining stocks edged advancing issues on both the NYSE and Nasdaq markets. A weak report from Yahoo (Nasdaq: YHOO) after Tuesday's closing bell helped to weigh on the tech sector, as did a loss reported before today's open by Motorola (NYSE: MOT). Crude oil futures edged up slightly, while the 10-year Treasury note pushed higher, shaving the yield.
The Dow's advance was fueled by solid gains by Caterpillar (NYSE: CAT), Boeing (NYSE: BA), andJ.P. Morgan Chase (NYSE: JPM), which reported a 55% increase in Q1 earnings on a 25% increase in revenue today. J.P. Morgan reported a profit of $4.8 billion, or $1.34 a share, against $3.1 billion, or 86 cents a share, last year. The current quarter included an 11-cent gain that resulted from an accounting change. The bank credited reduced volatility and improved profits in its trading operations, as well as record results from its asset management and commercial banking divisions.
In the tech sector, Yahoo's report of an -11% decline in its Q1 profit disappointed investors who were expecting more of an impact from its revised search advertising platform known as Panama. The stock declined -11.8% in today's trading. Subscribers can read our detailed analysis of Yahoo's results in today's issue.. Motorola swung to a Q1 loss as continued weakness in its once-booming mobile phone business weighed on results. Motorola said it expects its handset business to return to profitability by the second half of the year, but many analysts expressed doubt that this would happen.
Not all of the reports coming out of the tech sector were disappointing. The profit report from semiconductor bellwether Intel (Nasdaq: INTC) pleased investors that feared the company's market share battle with Advanced Micro Devices (NYSE: AMD) would cut further into profit margins. Intel, however, reported that its much-watched gross margin came in better than forecasted for Q1, leading the company to predict an increase in profitability in the second half of the year. The company reported earnings of 27 cents a share against 23 cents a share in the same period last year.
In other earnings news, shares of movie rental company Netflix (Nasdaq: NFLX) sank -9.4% as the company's improved Q1 results still fell short of analyst forecasts. The company earned $9.9 million, or 14 cents a share, against $4.4 million, or 7 cents a share, in the year-earlier quarter. Analysts were looking for EPS of 16 cents, according to Thompson Financial.
The tanker sector moved higher after Teekay Shipping (NYSE: TK) announced late Tuesday that it would join with Danish shipping concern A/S Dampskibsselskabet TORM (Nasdaq: TRMD) to buy oil-tanker operator OMI (NYSE: OMM) for $1.8 billion in cash. Teekay's shares advanced 7.2% today on the news. Other shipping concerns were up in today's action as well, including Overseas Shipholding Group (NYSE: OSG), which added 10.3%.
By the BullMarket.com Staff

Labels: AMD, BA, CAT, INTC, JPM, MOT, NFLX, OMM, OSG, TK, TRMD, YHOO

PG&E Corp. (NYSE:PCG - News) posted a fourth-quarter profit of $152 million, or 43 cents a share, down from $180 million, or 49 cents a share, a year earlier. The company attributed most of the decline to severance costs that resulted in an after-tax cost of 5 cents a share in the most recent period. Analysts polled by Thomson First Call had expected a profit of 44 cents a share. California's biggest utility raised its outlook for 2007 earnings by 5 cents a share to a range of $2.70 to $2.80 a share.
Quanta Services Inc., (NYSE:PWR - News) the Houston provider of contracting services and solutions for electric power, gas, telecommunications and cable television, swung to a fourth-quarter loss from a year-earlier profit on 13% higher revenue. For the first quarter Quanta expects to earn 10 cents to 12 cents a share compared with 7 cents in the year-earlier period. Revenues should range $540 million to $550 million, up from $496.5 million a year earlier.
Skechers USA Inc. (NYSE:SKX - News) reported fourth-quarter earnings more than doubled to 33 cents a share from 14 cents in the year-earlier period. The Manhattan Beach, Calif., footwear company posted revenue of $304.5 million vs. $223.5 million. Skechers expects first-quarter earnings of 50 cents to 55 cents a share on revenue of $325 million to $335 million.
Teekay Shipping Corp. (NYSE:TK - News) reported fourth-quarter earnings fell to 81 cents a share from $1.85 in the year-earlier period. The Bahamas shipper of oil and natural gas posted voyage revenue of $587 million, up 10%.
TRW Automotive Holdings (NYSE:TRW - News) earned 32 cents a share in the fourth quarter, down from 57 cents in the year-earlier period. The Livonia, Mich. maker of safety systems for cars said sales rose 4.3% to $3.3 billion. The average estimate of analysts polled by Thomson Financial was earnings of 3 cents on revenue of $3.16 billion. TRW is forecasting sales of $13.4 billion to $13.8 billion for 2007, yielding earnings of $1.85 to $2.15. Thomson is looking for earnings of $2.10 and sales of $13.4 billion.
ValueClick Inc. (NasdaqGS:VCLK - News), an Internet marketing firm, reported profit increased 56% as sales rose 38%.
Wabtec Corp. (NYSE:WAB - News) Thursday reported fourth-quarter earnings of $26.2 million, or 53 cents a share, up from a year-ago profit of $16.3 million, or 34 cents a share. On a continuing operations basis, the company earned $26.9 million, or 55 cents a share, in the fourth quarter, up from a year-ago equivalent profit of $17.9 million, or 37 cents a share. The latest results include a net tax benefit of 8 cents a share. Excluding the gain, the Wilderming, Pa., maker of rail technology products said it earned 45 cents a share in the latest quarter. Sales rose 9% in the latest three months to $294.4 million from $270.3 million in the same period a year earlier. The company attributed the sales increase in the latest quarter to higher sales of transit locomotives, locomotive components and radiators for non-rail markets, as well as acquisitions. The average estimate of analysts polled by Thomson Financial was for a profit of 44 cents a share in the December period. The company also affirmed its outlook for earnings of $2.10 a share for fiscal 2007, excluding restructuring expenses of roughly 5 cents a share. Wall Street's current consensus estimate is for a profit of $2.10 a share for the year.
WebMD Health Corp. (NasdaqGS:WBMD - News) reported fourth-quarter earnings of 15 cents a share, up from 11 cents in the year-earlier period. The New York provider of health information services posted revenue of $80.6 million vs. $49.1 million. WebMD raised its 2007 outlook and now expects per-share earnings of 35 cents to 48 cents on revenue of $336 million to $352 million.
Whole Foods (NasdaqGS:WFMI - News) agreed to acquire smaller rival Wild Oats Markets Inc. (NasdaqGM:OATS - News) for about $565 million, as it grapples with competition from conventional supermarkets.

Labels: OATS, PCG, PWR, SKX, TK, TRW, VCLK, WAB, WBMD, WFMI