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Earnings Analysis: 
Cimarex Reports Net Growth on Acquisition
Author: Ivaylo Dagnev
123jump.com
Last Update: 9:15 AM EST February 15 2006



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Cimarex Energy Co, oil and gas company, reported Q4 net income of $1.98 a share, up vs. $1.12 a share in the same period the previous year on revenue growth, topping analyst estimate of $1.52 a share. There were roughly double the average shares outstanding in Q4, following Cimarex 2005 acquisition of Magnum Hunter.

 
Cimarex Energy’s, (XEC: chart), revenue reached 429.5 million from $142.6 million. Q4 oil and gas production volumes rose 87%, in view of Magnum Hunter contributions and continued positive drilling results, partially offset by hurricane-related disruptions. Capital investment for exploration and development during 2006 is seen to come to $1 billion.

Mittal Steel, (MT: chart), steel producer, reported a 58% decline in Q4 net profit to 92 cents a share, following a 9% decline in steel prices, 15% higher costs of goods sold and accounting costs from the merger of ISG and Ispat Inland. In Q1, Mittal said it expects shipments to advance 10%, selling prices to come flat and a higher cost of sales on rising natural gas costs.

Credit Suisse Group, (CSR: chart), Swiss bank, reported a 15% increase in Q4 net profit to SFr1.1 billion ($843 million), with the company''s announcement of a SFr421 million compensation-related charge, weighing on the bottom line. Its institutional securities division announced a 25% profit rise from the prior year period but a 45% drop from the Q3 on falling trading revenue.

Caremark Rx Inc, (CMX: chart), pharmaceutical company, reported that Q4 net income advanced 41.7% to 64 cents a share on 4.4% revenue growth. If not for integration expenses and adjustments to income tax provisions, adjusted earnings were 55 cents a share, in-line with analysts’ estimates. The company stated its results were helped by strong growth in generic dispensing rates.

Hanover Compressor Co, (HC: chart), natural gas equipment company, reported Q4 net loss was narrower, reaching 4 cents a share, from a net loss of 24 cents a share on 16% revenue growth, missing analyst view, though, of a net loss of 1 cent a share. The company added that rental revenue lifted results led by an improvement in market conditions.

RailAmerica Inc, (RRA: chart), railroad company, reported Q4 net income of 20 cents a share, up from 11 cents a share in the year-earlier period on 9.1% revenue growth. Earnings from continuing operations were 24 cents a share, beating on that basis analyst estimate of 23 cents a share.

Alfa Corp, (ALFA: chart), insurance company, reported Q4 earnings of 29 cents a share, a penny up from 28 cents a share in the same period the previous year on 17% revenue growth. If not for investments gains, earnings were 28 cents a share, missing analysts’ expectations for earnings of 31 cents a share.

Jones Apparel Group Inc, (JNY: chart), apparel manufacturer, reported net income of 48 cents a share, up from 28 cents a share in the year earlier quarter on revenue growth, beating analyst estimate for a profit of 45 cents a share. Results were given a boost by better than expected results in its licensed businesses and Gloria Vanderbilt moderate apparel business, as well as the Barneys retail stores.

Progress Energy, (PGN: chart), electric utility company, reported Q4 net income of 62 cents a share, down from 80 cents a share in the year-earlier period. The company added that earnings from continuing operations came in at 71 cents a share, beating analysts’ estimates of 52 cents a share. Operating revenue went up to $2.58 billion from $2.01 billion in the prior-year quarter.

Bluelinx Holdings Inc., (BXC: chart), building products distributor, reported Q4 net income of 48 cents a shareswinging from a year-earlier loss of 9 cents a share on 10% revenue growth, topping analysts’ forecasts of 46 cents a share.

Myers Industries, (MYE: chart), automotive repair company, reported Q4 net income of 25 cents a share, up 25% from 20 cents a share in the year-earlier period on 5% revenue growth, topping analyst estimate of 18 cents a share.

Ceridian Corp, (CEN: chart), provider of information services, reported Q4 earnings of 32 cents a share, up from a profit of 7 cents a share a year-earlier on revenue growth, beating analyst estimate of 25 cents a share. The company said that the strong quarter was due to its penetration into new markets, new products, and heavy demand for its Comdata credit, debt, and stored value payment services.
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