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Earnings Analysis: 
Autodesk Swings to Q3 Profit
Author: George Shopov
123jump.com


Autodesk, the leading provider of computer-aided design (CAD) software, reported that it returned to profitability, helped by strong upgrade revenue of its flagship AutoCAD product.

 
Autodesk, Inc. (ADSK: chart) announced Thursday that it swung to a quarterly profit, boosted by strong upgrade revenue of its AutoCAD software. The leading provider of computer-aided design software reported net earnings of $22.6 million, or 20 cents a share, for the fiscal 2004 third quarter, reversing from a year-ago net loss of $3.9 million, or 3 cents a share, when results were weighed down by restructuring charges. Results for the quarter ended October 31 glided past analysts’ projections for earnings of 14 cents a share. San Rafael, California-based Autodesk said revenue surged 24% to $233.9 million, from $188.7 million, a year ago, and well ahead of analysts' forecast of $218.6 million. AutoCAD-based upgrade revenue soared 50% in the third quarter. The company said it benefited from an improving U.S. economy as well as new opportunities in emerging countries like China.

For the fourth quarter, Autodesk expects to earn 27 cents to 32 cents a share, on revenue of $245 million to $255 million, which would be higher than analysts' expectations of profit of 23 cents a share, on revenue of $237 million.

Company shares soared 12.06% to $21.74 in after-market trade, from a NASDAQ close of $19.40.

Gap Inc. (GPS: chart) of San Francisco, California, said after the bell Thursday its third-quarter earnings almost doubled on the back of stronger sales. The clothing retailer posted income of $262.6 million, or 28 cents per share, for the quarter ended November 1, up 94% from $135.3 million, or 15 cents per share, generated in the same period last year. Results topped by a penny Wall Street’s target. Revenue climbed 8% to $3.92 billion, from $3.64 billion a year ago.

Gap shares edged up 6 cents on Thursday to $20.99. The stock rose 1.00% to $21.20 in after-hours trading.

The Walt Disney Company (DIS: chart) reported after market close Thursday that its fourth-quarter net profit more than doubled, citing strong film and TV results. The world’s second largest media conglomerate said it earned $415 million, or 20 cents per share, in the quarter ended September 30, in contrast to $175 million, or 9 cents per share, in the 2002 comparable period. Burbank, California-based Disney said revenue was up to $7 billion from $6.6 billion a year earlier.

Disney stock dropped 11 cents to close Thursday at $22.68. Company shares gained 0.09% to $22.70 in after-hours trade.

Nordstrom, Inc. (JWN: chart) of Seattle, Washington, said its third-quarter earnings jumped to $45.5 million, or 33 cents a share, more than a double increase from $18.4 million, or 14 cents a share, a year ago. The apparel and shoe retailer said results were due to strong sales. For the quarter ended November 1, sales grew to $1.42 billion from $1.32 billion last year. Analysts were looking for profit of 22 cents a share on revenue of $1.41 billion.

Company shares rose 4.26% on Thursday to $31.82. The stock gained $2.18 to $34.00 in after-hours trading.

Genesco Inc. (GCO: chart) said before market open Thursday its fiscal third-quarter profit slipped to $9.4 million, or 42 cents per share, from $10.1 million, or 41 cents per share, in the 2003 equivalent, hurt by weaker demand for fall shoes. The Nashville, Tennessee-based footwear retailer had fewer shares outstanding in this year’s third quarter. Analysts’ had called for earnings of 41 cents a share on average.

The stock plummeted 11.35% to $15.85 at market close Thursday. Company shares inched up 4 cents to $15.89 in after-market trade.

Barnes & Noble, Inc. (BKS: chart), the No.1 bookseller in the U.S., reported Thursday a profit of $10.2 million, or 14 cents per share, on sales of $1.27 billion, for its third quarter, up from $3.8 million, or 5 cents per share, on sales of $1.13 billion, in the year-ago period, and well above the average analysts’ estimate for profit of 9 cents per share. The New York-based company attributed the results to strong sales across every product category.

Company shares closed Thursday up 10 cents, or 0.32%, at $31.23. The stock added 4 cents to $31.27 in after-hours trading.

Borders Group, Inc. (BGP: chart) of Ann Arbor, Michigan, said Thursday it swung to a profit of $500,000, or 1 cent per share, in its third quarter, from a prior-year loss of $1.8 million, or 2 cents per share. The U.S. second largest bookstore operator said it benefited from strong sales and an after-tax gain. Quarterly revenue was up 8% to $816.7 million from $756.7 million, last year.

The stock inched down 3 cents to $21.31 at market close Thursday.

Dillard's, Inc. (DDS: chart) said Thursday its third-quarter loss widened to $15.8 million, or 19 cents per share, from a net loss of $5.1 million, or 6 cents per share, in the same period a year earlier. The Little Rock, Arkansas-based department store operator blamed the warm fall weather for the decline in clothing sales. Analysts had forecast a loss of 32 cents a share. Total sales were down 2% to $1.77 billion.

Company shares gained 4 cents on Thursday to $14.50. The stock was catapulted up 9.66% to $15.90 in after-market trade.

Limited Brands, Inc. (LTD: chart) reported Thursday a higher third-quarter profit of $129.7 million, or 25 cents a share, compared with $15.8 million, or 3 cents a share, a year ago, due primarily to the sale of its remaining interest in Alliance Data Systems Corp. Excluding items, the Columbus, Ohio-based specialty retailer earned $44.3 million, or 8 cents a share, up from $10.4 million, or 2 cents a share, last year, and 4 cents above analysts’ expectations.

The stock rose 2.06% to close Thursday at $17.85. Company shares dropped 2 cents to $17.83 in after-hours trading.

Novell, Inc. (NOVL: chart) of Provo, Utah, posted Thursday a wider fourth-quarter net loss of $109 million, or 29 cents a share, compared with a net loss of $91.7 million, or 25 cents a share, in the year-ago period, hurt by restructuring and acquisition charges. The provider of operating systems said revenue slid to $286.7 million from $300.3 million. Software sales were down 25% to $70.5 million.
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