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Earnings Analysis: 
A.G. Edwards Net More than Doubles
Author: George Shopov
123jump.com



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Brokerage company A.G. Edwards announced that its fourth-quarter earnings more than doubled as the 45% rise in commission revenue reflected improved stock markets.

 
A.G. Edwards, Inc. (AGE: chart) reported before market open Thursday that its quarterly profit more than doubled, driven by strong commission revenue growth. The St. Louis, Missouri-based financial services company turned in net income of $54.4 million, or 67 cents a share, for the fourth quarter of fiscal 2004, in contrast to net income of $21.2 million, or 26 cents a share, last year. Results glided past analysts’ projections for earnings of 55 cents a share, on average. For the quarter ended February 29, A.G. Edwards recorded net revenue of $689.3 million, up 34.2% from $514.2 million, in the prior-year period. The company said revenue from commissions soared 44.5% to $310.3 million, boosted by improved stock markets. Investment banking revenue jumped 55% to $81 million in the fourth quarter, on the back of strong growth in the underwriting of closed-end funds and follow-on equity. For the full year, A.G. Edwards posted net earnings of $159.5 million, or $1.97 a share, on revenue of $2.5 billion, compared with $118.8 million, of $1.46 a share, on revenue of $2.2 billion, in fiscal 2003.

Company shares surged 5.74% on Thursday to $36.66. The stock added 34 cents to $37.00 in after-hours trading.

ConAgra Foods, Inc. (CAG: chart) of Omaha, Nebraska, announced before the bell Thursday that its third-quarter earnings jumped 26% to $203 million, or 38 cents a share, from earnings of $161 million, or 30 cents a share, in the comparable period of fiscal 2003. The U.S. No.2 food company said earnings before items came in at 39 cents a share, a penny ahead of the mean estimate of analysts. ConAgra attributed the results to strong sales from brands like Armour, Banquet and Chef Boyardee.

The stock closed Thursday up 89 cents, or 3.46%, at $26.64.

Sharper Image Corporation (SHRP: chart) posted before Thursday’s opening bell a 35% increase in its quarterly earnings, citing strong performance at its stores open at least a year and higher Internet sales. The San Francisco, California-based retailer of personal and home electronics said it earned $22.8 million, or $1.40 a share, in its fiscal fourth quarter, up from earnings of $16.9 million, or $1.26 a share, in the year-ago equivalent. Results were in line with Wall Street’s views. Quarterly sales surged 29% to $278.4 million from $216.5 million, with same-store sales rising 17%.

Company shares dipped 3.01% to $33.20 at market close Thursday.

Swiss Reinsurance Company ((RUKN.S)) said Thursday that it had a net profit of 1.7 billion Swiss francs ($1.4 billion) in 2003, reversing from a net loss of 91 million francs in 2002. The Zurich, Switzerland-based insurer added that it was its first annual profit in three years. The company attributed the results to the positive development in its property and casualty lines.

SYNNEX Corporation (SNX: chart) of Fremont, California, reported Thursday higher quarterly earnings, aided by gains of $48.8 million from its initial public offering, which it completed last December. The IT supply chain services company rolled out a profit of $9.65 million, or 33 cents a share, for its first quarter, against a profit of $6.7 million, or 27 cents a share, in the 2003 corresponding period. SYNNEX said revenue advanced 36% to $1.22 billion, in the first quarter, from $892 million a year ago.

SYNNEX shares closed Thursday unchanged at $18.25.

Boosted by lower tax rate, Cognos Incorporated (COGN: chart) announced Thursday a 56% jump in its fourth-quarter profit. The Ottawa, Canada-based software company reported record net earnings of $46.1 million, or 50 cents a share, for the fourth quarter, in contrast to net earnings of $29.6 million, or 33 cents a share, in the same period a year ago. Quarterly revenue improved 23% to $202.1 million from $163.7 million, last year.

The stock soared 7.37% on Thursday to $30.60. Cognos shares gained 65 cents to $31.25 in after-market trade.

Immucor, Inc. (BLUD: chart) of Norcross, Georgia, said Thursday that its third-quarter earnings dropped to $2.0 million, or 10 cents per share, from year-earlier earnings of $3.7 million, or 18 cents per share. The company, which develops reagent products and systems for blood transfusions, cited higher costs as main factor for the profit decline. Analysts had called for earnings of 16 cents a share, on average.

Immucor shares slipped 1.86% to close Thursday at $17.90. The stock recovered 30 cents to $18.20 in after-hours trading.

The Finish Line, Inc. (FINL: chart) posted Thursday higher quarterly income, on the back of a 30% rise in sales. The Indianapolis, Indiana-based athletic shoe retailer said it had a profit of $21.0 million, or 86 cents per share, in its fourth quarter, compared with a profit of $15.4 million, or 66 cents per share, last year. The consensus estimate of analysts was for a profit of 85 cents a share.

The stock surged 5.39% on Thursday to $35.40. Company shares added $1.05 to $36.45 in after-market trade.

Activision, Inc. (ATVI: chart) of Santa Monica, California, on Thursday revised upward its earnings estimate for the fourth quarter, citing better-than-expected sales. The video game publisher said it now sees a profit of 1 cent per share on sales of $155 million, in its fourth quarter. This compares to a previous forecast of a loss of 1 cent per share on sales of $125 million.

Company shares were catapulted up 11.16% to close Thursday at $15.14. The stock gained 12 cents to $15.26 in after-hours trade.

Avon Products, Inc. (AVP: chart) raised Thursday its first-quarter outlook to a profit of 59 cents a share, from an earlier guidance of 50 cents a share. The New York-based world’s top direct seller of cosmetics said rising sales helped boost its estimate. Analysts currently forecast earnings of 51 cents a share, for the first quarter.

The stock rose 6.77% to $75.35 at market close Thursday. Avon shares shed 35 cents to $75.00 in after-market trade.
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