Wednesday, Nov. 12, 5:30 PM EST /PRNewswire/ -- Stocks are continuing to
post gains this evening, as a strong earnings report from Applied Materials
and positive results from Medtronic are helping the market to extend today's
rally. Technology stocks are spearheading the gains on the Applied Materials
report. During the regularly traded session, the Nasdaq Composite Index
surged 42.36 to 1973.11, while the Dow Jones Industrial Average climbed
111.04 to 9848.83. The S&P 500 Index strengthened 11.96 to 1058.53.
* The S&P 500 futures contract is jumping 1.80 points, while the Nasdaq
100 futures contract is rallying 7.50 points.
* Topping headlines, Applied Materials said it earned $0.01 a share in
the fiscal fourth quarter, compared with a profit of $0.09 a share
last year. Excluding items, the company earned $0.06 a share, beating
the Thomson First Call mean Street forecast, which was in a range of
$0.04 to $0.06 a share, by a penny. Net sales fell 16% to
$1.22 billion, but the company did say it sees the early stages of an
industry uptrend.
* Also, IBM's chief executive, Sam Palmisano, said he expects spending
on technology to increase modestly next year, as corporations have
begun to budget more for IT. He expects spending by large
corporations to increase 2% to 4% in 2004.
* Meanwhile, medical device maker Medtronic said that its sales for the
fiscal second quarter climbed 14% to $2.164 billion., amid a weaker
U.S. dollar and share gains in several key market segments. The
company's earnings for the period were $0.39 a share, up from
$0.25 a share last year. Results were in line with analyst forecasts,
in a range of $0.39 to $0.40 a share. Separately, Medtronic's board
has authorized management to repurchase an additional 30 million
shares of the company's common stock.
* Out of the retail space, Ann Taylor Stores announced earnings of
$0.63 a share for the third quarter, compared with $0.53 a share last
year, as net sales rose 16.6% to $396.8 million. Results met the
average Street estimate, which was in a narrow range of $0.62 to
$0.63 a share, according to Thomson First Call. Same-store sales in
the quarter were up 6.2%. In terms of guidance, Ann Taylor said that
it is comfortable with forecasts for $0.41 to $0.43 a share.
* Whole Foods Market posted a profit of $0.38 a share for its fourth
quarter, up from $0.36 a share last year as sales increased to
$751 million from $638 million. Analysts were looking for a profit of
$0.39 a share, in a range of $0.38 to $0.40 a share. For the first
quarter, earnings per share are seen at $0.56 to $0.58, while fiscal
2004 sales growth is seen at 15% to 20%, and EPS is seen at $1.88 to
$1.96.
* Homebuilder D.R. Horton, meanwhile, said that it earned $1.46 a share
for its fiscal fourth quarter, up from $0.92 a share last year, as
consolidated net revenue jumped 32% to $2.9 billion. Earnings results
blew past forecasts for $1.22 to $1.40 a share, with an average
estimate of $1.29 a share. For the current quarter, D.R. Horton is
looking for earnings of $0.90 to $0.95 a share, while full year
earnings are seen at $4.50 to $4.60 a share.
* In other news, Taro Pharmaceutical Industries received tentative
approval from the Food and Drug Administration for a generic version
of a Pfizer antifungal drug to treat yeast infections. The FDA ruling
covers Taros fluconazole tablets at four strengths. Taro also did not
say what conditions must be met to receive final approval to market
the drug in the U.S.
* On the merger front, Ralcorp has agreed to buy Bakery Chef, a maker of
frozen waffles and frozen pre-baked breads, for $287.5 million in
cash. The deal is expected to immediately add $0.25 to $0.35 a share
to earnings on an annual basis.
-- Justin.Menza@thomson.com; Thomson Financial Corporate Group
This is Thomson Financial Corporate Group's After-Hours Market Commentary.
The information herein is believed to be true and accurate. We take no
responsibility for inaccurate information and reserve the right to update our
reports. For more information about Thomson Financial Corporate Group visit
us on-line at http://www.thomson.com/financial . For more financial
information at your fingertips, please visit http://www.irchannel.com/ .
SOURCE Thomson Financial Corporate Group
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