Mixed Earnings and Reserved Forecasts Weigh on Markets: Morning Buzzers
Stock futures were lower on Tuesday morning as the latest battery of earnings failed to impress investors. The weekly ICSC-Goldman Store Sales report also revealed that retail sales grew at a slower rate this week.
Futures at 8:45 a.m.: DJIA: -0.12%, S&P 500: -0.20%, NASDAQ: -0.16%.
Ford (NYSE:F) was off about 1.5 percent on Tuesday morning after reporting high fourth-quarter profit but reserved expectations. Pre-tax profit of $0.31 per share is the highest it has been in a decade, but the company’s full-year operating margin fell from 5.4 percent to 5.3 percent. Ford expects 2013 operating margin to be equal to or less than its 2012 margin.
Eli Lilly and Company (NYSE:LLY) climbed fractionally in the pre-market after its modest fourth-quarter earnings report. Total reported revenue fell 1 percent for the quarter to $6 billion, and fell 7 percent for the year to $22.6 billion. Earnings per share fell 4 percent for the quarter to $0.74, and fell 6 percent for the year to $3.66. These results were pretty much in line with expectations, but investors have expressed concern that the company will continue to suffer in the face of generic drug competition.
Pfizer (NYSE:PFE) also posted fractional gains after its fourth-quarter and full-year earnings report. Revenues dropped 7 percent for the quarter while EPS fell 4 percent. For the year, revenue was down 10 percent, while EPS was still down 4 percent. The company cites the loss of exclusivity for Lipitor in November as a major factor for fourth-quarter revenue decline, as well as a negative impact from foreign currency exchange.
VMware (NYSE:VMW), a provider of virtualization-based cloud infrastructure solutions, crashed over 18 percent after reporting its fourth-quarter results. Revenues grew 22 percent year over year and 22 percent annually, but the company’s outlook didn’t justify its high valuation. VMware is expecting between 11 and 13 percent growth in the first quarter and between 14 and 16 percent growth for the year.
Yahoo (NASDAQ:YHOO) was riding about 3.1 percent higher after reporting its fourth-quarter results. For the three-month period, the company posted earnings of $272 million, or 23 cents per share, which represented an 8 percent decrease over the year-ago quarter. Revenue increased 2 percent to $1.35 billion, which helped the web portal make its first full-year revenue gain since 2008… (Read more.)
Seagate Technologies (NASDAQ:STX) was greeted with a mixed reception after its fiscal second-quarter earnings report. The hard-disk manufacturer beat top- and bottom-line expectations, but the report also revealed that costs grew at a faster pace than revenue. Shares were off nearly 6 percent… (Read more.)
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