DOW JONES NEWSWIRES
Below is a synopsis of major releases from Thursday
afternoon:
Microsoft Tumbles On Revenue Decline; Shares Off
Microsoft Corp.'s (MSFT) profit dropped 29% as revenue fell
broadly, including at its client division. Chief Financial Officer
Chris Liddell said the company's businesses continued to be hurt by
weakness in the global PC and server markets. Shares fell 6.3% to
$23.94 in after-hours trading, as the company's revenue figures
badly missed analysts' expectations.
American Express Profit Sags; Stock Declines On Revenue Miss
American Express Co.'s (AXP) earnings fell 48% as the
credit-card issuer set aside less money for bad accounts amid
falling customer balances. Shares fell 4.6% after-hours to $28.05
as revenue fell short of analysts' expectations.
Capital One Swings To Loss On Increased Credit Losses
Capital One Financial Corp. (COF) swung to a loss on continued
increases in credit losses, although numerous metrics weren't as
bad as the prior quarter. The net charge-off rate climbed to 6%
from 4.15% a year earlier and 5.52% the previous quarter,
respectively, while delinquencies of at least 30 days were 4.34%,
compared with 3.64% and 4.36%.
Items Hurt Amazon's Profit, Offset Revenue Growth
Amazon.com Inc.'s (AMZN) earnings fell 10% as unusual items
masked strong revenue growth. The Internet retail giant's shares
fell 5.8% to $88.23 in after-hours trading, even though earnings
topped Wall Street expectations and third-quarter revenue guidance
was roughly in line with analysts' views.
Broadcom Earnings Plummet 90% But Conditions Improving
Broadcom Corp.'s (BRCM) profit plunged 90% as the communications
chip maker posted a double-digit revenue decline, but the company
signaled business conditions are returning to normal. It also
offered third-quarter revenue guidance above Wall Street
expectations and predicted gross margin to rise sequentially.
Still, shares fell 4.4% to $27.90 in after-hours trading as
earnings fell below Wall Street's expectations.
Burlington Northern Up On Prior-Year Charge; Volume
Stabilizing
Burlington Northern Santa Fe Corp.'s (BNI) profit grew by 15%
amid a prior-year charge, but fuel surcharges and volumes dropped.
The company said volumes were beginning to stabilize in its more
economy-sensitive businesses. Shares were down 1% to $78.41 in
after-hours trading as revenue missed analysts' estimate though
earnings beat.
Chubb Sees Strength In Underwriting, Investments
Chubb Corp.'s (CB) second-quarter earnings rose 18%, which the
property-and-casualty insurer attributed to strength in
underwriting and investments, among other factors. Shares climbed
2.3% to $43.60 in after-hours trading as operating results exceeded
analysts' expectations and as the company increased its 2009
guidance for operating income. Chubb also said it will be
accelerating the timing of its share repurchase program.
Subscriber Growth, Margins Boost Netflix Earnings
Netflix Inc.'s (NFLX) earnings climbed 22% on increased
subscriber growth and higher margins. Shares fell 1% to $46 in
after-hours trading as the online movie rental company's earnings
topped expectations but the revenue fell short. The company also
boosted its guidance for the year.
CA Tops Estimates Despite Currency Effects, Raises Year View
CA Inc.'s (CA) profit slid 0.5% on effects of the stronger
dollar. Shares climbed 5.2% to $20.10 in after-hours trading as the
results topped Wall Street's expectations and the business-software
maker raised its fiscal-year forecast.
Amerprise Profit Stung By Lower Revenue, Fees
Ameriprise Financial Inc.'s (AMP) profit dropped 55%, as the
provider of financial planning services posted lower revenue and
was weighed down by asset-based fees. Shares were down 1% at $25.90
in after-hours trading, even though the results topped Street
views.
Con-Way Profit Declines But Co Sees Improving Freight
Volumes
Con-Way Inc.'s (CNW) profit dropped 34%, as freight volumes
continued their decline and revenue fell across most of the
company's businesses. The company said volumes improved
sequentially each month in the quarter. Still, Chief Executive
Douglas Stotlar noted the pricing environment would remain
competitive until the market's excess capacity was lowered. Shares
were down 0.7% to $35.73 after hours.
Juniper Earnings Off On Revenue Decline, Tax Charge
Juniper Networks Inc.'s (JNPR) earnings dropped 88% as revenue
declined and the company booked a charge related to the tax
treatment of stock-based compensation. Shares were down 6.4% to
$24.85 in after-hours trading, even though results topped Wall
Street estimates.
SunPower Sees Increased Demand But Cuts Year View Again
SunPower Corp. (SPWRA) recorded a 22% drop in profit as sales
continued to fall, but the results were better than expected. The
solar panel maker said it has been able to maintain prices and
market share, adding it was encouraged enough by signs in demand
and financing that it should meet its forecast for the back half of
the year. Still, it cut its full-year view for the fourth time,
this time saying a recent capital raise was to blame. The shares
rose 13% in late trading to $28.16.
KLA-Tencor Swings To Loss On Lower Product Sales
KLA-Tencor Corp. (KLAC) swung to a loss as product sales
tumbled, once again dragging revenue down more than expected.
Shares were falling 3.4% to $30.41 in late trading. Chief Executive
Rick Wallace said the company is "focused on achieving" breakeven
earnings per share, excluding items, by the end of the calendar
year.
Baidu Posts Stronger Results, Adds Advertisers
Baidu Inc.'s (BIDU) earnings rose 45% as the Chinese Internet
company continued to post strong revenue growth and add
advertisers. The company also offered strong third-quarter revenue
guidance. However, its American depositary shares fell 3.2% to
$321.57 in after-hours trading.