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Earnings Analysis: 
Jack in the Box 2Q earnings up, raises forecasts
Author: Albena Toncheva
123jump.com
Last Update: 8:02 AM ET May 18 2005



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Jack in the Box Inc., fast-food retailer, reported that its 2Q profit beat its forecasts as revenue was helped by strong sales of premium products. Looking ahead, the company raised its fiscal 2005 forecast.

 
Restaurant operator Jack in the Box, Inc. (JBX: chart) 2Q earnings increased 11% to $20.7 million, or 55 cents per share, versus $18.7 million, or 51 cents per share, a year ago. Revenue advanced 12% to $577 million vs. $517.3 million. Analysts forecast earnings of 50 cents per share on revenue of $564 million.

The company boosted its full-year 2005 earnings outlook to about $2.46 per share vs. earlier guidance of $2.43 per share.

Jack in the Box sees 3Q earnings guidance at about 60 cents per share, up vs. 56 cents a year ago, with restaurant same-store sales expected to climb about 3% to 3.5%. The company sees total revenue at $585 million, vs. $541 million a year ago. Analysts expect a 3Q profit of 63 cents per share on $594.4 million in revenue, and full-year earnings of $2.43 per share.

Hewlett-Packard (HPQ: chart) reported strong 2Q results, despite a slowdown at the company's profitable printer unit. For the quarter ended April 30, net income added 9.3%, to $966 million, or 33 cents a share, from $884 million, or 29 cents a share, a year ago. Excluding amortization of intangible assets and other items, H-P said it would have earned 37 cents a share, slightly topping estimates. Revenue rose 7.2% to $21.57 billion versus $20.11 billion, again slightly above analysts' forecasts.

Revenue in the printing unit rose 5%, to $6.4 billion, but operating profit dropped 15%, to $814 million, versus $952 million a year earlier.

The company's PC business generated revenue of $6.4 billion, up 6%, and operating profit of $147 million, up more than threefold vs. a year earlier. H-P's software group reported revenue of $277 million, up 23%, and an operating loss of $6 million, narrower than the $52 million loss a year earlier. H-P's services business had $4 billion in revenue, up 14%, with operating profit of $292 million, down 12% vs. a year earlier.

Catalina Marketing Corp. (POS: chart), a marketing specialist, Wednesday posted 4Q net income of $15.3 million, or 29 cents a share vs. a loss of $8.8 million, or 17 cents a share a year earlier. The improvement was due to narrower losses from discontinued operations. On an adjusted basis, earnings were $16 million, or 30 cents a share, down versus $23.7 million, or 44 cents a share, last year. Analysts' forecast was for 36 cents earnings per share. Revenue declined to $112 million versus $119.6 million hit by the sale of the company's loyalty card business.

The Talbots Inc. (TLB: chart), clothing retailer, announced stronger 2Q profit reflecting sound same-store sales and Internet and catalog business.

2Q income increased to $34.5 million, or 63 cents per share, versus $33.5 million, or 58 cents, a year earlier. Talbots' earnings came in line with the estimates of 63 cents per share.

For the quarter ended April 30, sales increased 8% to $446 million versus $412 million a year ago beating analysts' forecast of $441.8 million.

Same-store sales advanced 4.3%, with total retail sales growing 8% to $378.1 million. Catalog and Web sales gained 8% to $68.4 million.

Ross Stores Inc. (ROST: chart) reported 1Q net income of $50.1 million, or 34 cents a share, up vs. $48.1 million, or 31 cents a share, a year earlier on sound results in the company's locations in Texas and Florida. Analsyts' forecast was for 34 cents per share.

Sales grew 13% to $1.124 billion; same-store sales added 3%.
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