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Earnings Analysis: 
Orbitz Worldwide Plunges 21% on Loss
Author: 123jump.com Staff
123jump.com
Last Update: 3:21 PM EST March 06 2008


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Orbitz Worldwide declined to a new low after reporting fourth quarter loss of $11 million compared to $5 million a year ago. Revenues in the quarter rose 10% to $197 million and Losses per share were 13 cents. Net revenue for the year ended 2007 increased 14% to $859 million versus $752 million in 2006. Full year net loss declined to $85 million in 2007 compared to a net loss of $146 million in 2006.

 
The Company opened 12 new stores during the three-month period ended February 2, 2008, bringing its store count at the end of the fiscal year to 306 stores. The Company anticipates opening approximately 50 new stores in fiscal 2008.

The company anticipates fiscal 2008 sales to be between $1.05 billion and $1.125 billion and generate a loss of 20 cents to breakeven.

In addition, the Company plans to spend approximately $10 million on national brand advertising in fiscal 2008 and expects to mail approximately 104 million catalogs, of which, approximately 32 million will be the Coldwater Creek Catalog. This compares with approximately $30 million in 2007 on national brand advertising and approximately 129 million catalogs mailed in fiscal 2007, of which, approximately 30 million were associated with the retail store-focused Coldwater Creek Catalog.

Dynamex Inc. (DDMX: chart), a provider of same day delivery services reported second quarter net income of $3.4 million or $0.33 fully diluted share compared to $3.7 million or $0.35 per share a year ago. Fiscal second quarter 2008 sales increased 10.9% to $112 million.

“Our outlook remains positive for the remainder of the year,” said chief executive Rick McClelland. He further added, “Our balance sheet is extremely strong with zero long-term debt. Margins remain within our targeted range and both our top and bottom lines continue to grow. We continue to believe we have a significant opportunity for continued growth and profitability that will result in solid returns for our shareholders.”

The Company expects annual sales growth of between 10% and 12% for current fiscal year and expects to earn net income in the range from $1.45 to $1.55 per fully diluted share.

Dynamex stock rose $1.75 to $24.40.

H&R Block, Inc. (HRB: chart), a tax preparation service provider reported net loss for the third quarter was $47.4 million, or $0.14 per share, compared with a net loss of $60.3 million, or $0.18 per share, in the same quarter of prior year. For the third quarter, total revenues from continuing operations rose 4.4% to $972.6 million, compared with $931.2 million in the year-ago period.

For the quarter ended January 31, revenue in the Tax Services segment grew 5.4% year-over-year. Net tax preparation and related fees increased 3.3%, reflecting a 7.0% increase in net average fee per U. S. retail client served to $172.58. This was partially offset by a 3.5% decline in retail clients served through January 31.

H&R Block stock added 88 cents to $18.12.

Longs Drug Stores Corporation (LDG: chart), a drug store retailer reported total revenues of $1.45 billion for the fourth quarter 14 weeks ended January 31, 2008 were 11% higher than the $1.31 billion reported for the 13 weeks ended January 25, 2007. Net income for the fourth quarter was $37.2 million or $0.98 per share, compared to $26.9 million or $0.71 per share for the year-ago quarter.

Total revenues for the 53-week fiscal year ended January 31, 2008 were $5.26 billion, an increase of 5.8% compared with $4.97 billion of total revenues for the 52-week fiscal year ended January 25, 2007.

Longs Drug Stores repurchased approximately 2.5 million shares of its common stock during Fiscal 2008 at an average price of $48.38 per share and a total investment of $119.8 million. Approximately $156 million remains under current Board authorization for stock repurchases.

Retail drug store sales increased 9.1% primarily due to the impact of one additional week and new store expansion. Same-store sales on a comparable 13-week basis declined 0.6% with pharmacy same-store sales increasing 0.7% and front-end same-store sales decreasing 1.7%. Pharmacy sales were 49.5% of retail drug store sales during the period, compared with 48.3% a year ago.

For the 52 weeks ending January 29, 2009, Longs is estimating that total revenues from continuing operations will increase 5% to 7% and total retail drug store sales will increase 1% to 3% compared with the 53 weeks ended January 31, 2008. The Company estimates that same-store sales on a comparable 52-week basis will increase 1% to 3% compared with last year.

Longs Drug stock fell $6.81 to $41.00.

Southwest Airlines Co. (LUV: chart), discount airline said that net income for fourth quarter 2007 was $111 million, or $.15 per diluted share, compared to $57 million, or $.07 per diluted share, for same quarter 2006. Total operating revenues for fourth quarter 2007 increased 9.5 percent to $2.49 billion, compared to $2.28 billion for fourth quarter 2006.

For the full year 2007, net income was $645 million, or $.84 per diluted share, compared to $499 million, or $.61 per diluted share, for 2006. Operating revenues for the year ended December 31, 2007 increased 8.5 percent, from $9.86 billion, for the last year 2006.

USA Mobility, Inc. (USMO: chart), a provider of wireless communications solutions said that total revenue for the fourth quarter was $100.2 million, compared to $105.4 million in the third quarter of 2007 and $116.0 million in the fourth quarter of 2006.

For the fourth quarter 2007 net loss was $46.7 million, or $1.70 per fully diluted share, compared to net income of $8.3 million, or $0.30 per fully diluted share, in the fourth quarter of 2006.
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