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Earnings Analysis: 
NRG Energy Posts a Loss
Author: 123jump.com Staff
123jump.com
Last Update: 2:11 PM EST February 28 2007



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Hospira fourth-quarter profit surged 78%, thanks to reduced expenses and increased sales. NRG Energy swung to a loss in the fourth quarter despite a surge in revenue, on the back of a hefty charge related to hedges. Sprint Nextel fourth-quarter profits rose 33% on stronger revenue, but the company continued to lose high-quality subscribers. StarTek fourth-quarter earnings per share fell 27% on 4.4% lower revenue.

 
Hospira, Inc. (HSP: chart), injectable drug maker, reported a nearly 80% jump in fourth quarter profit on higher product volumes, higher prices and favorable currency exchange. The company earned $47.4 million, or 30 cents per share, compared with $26.6 million, or 16 cents per share last year. On an adjusted basis, Hospira would have earned 43 cents per share, versus 32 cents per share in the last three months of 2005. Revenue reached $706.5 million, a gain of 9.3%.

NRG Energy Inc. (NRG: chart), power supplier, reported a fourth-quarter loss of $30 million, down from net income of $64 million in the year-ago period. After the payment of preferred stock dividends, the company lost $43 million, or 35 cents a share, in the latest quarter. Revenue rose in the three months ended Dec. 31 to $1.14 billion from $707 million in the same period a year earlier.

Sprint Nextel Corp. (S: chart), wireless carrier, said that its fourth-quarter profit increased 34% to $261 million, or 9 cents per share, with operating revenue up 7% to $10.44 billion. The company said 9% wireless revenue growth after adding 742,000 customers offset a 2% long-distance revenue decline. On an adjusted basis, its profit would''ve climbed 26% to 29 cents per share.

StarTek Inc. (SRT: chart), provider of business-process-outsourcing services to the communications industry, reported fourth-quarter earnings per share fell 27% on 4.4% lower revenue. The company earned 8 cents a share compared with 11 cents, as revenue fell to $59.1 million. Gross-profit margin for the quarter shrank to 14.3% from 15.8%.

Blount International Inc. (BLT: chart), which makes outdoor products and industrial and power equipment, said that its fourth-quarter earnings declined to $9.04 million, or 19 cents per share, compared with $56.2 million, or $1.17 per share, in the year-ago period. The company said the results in the year-ago quarter were favorably impacted by a significant income tax benefit. Revenue decreased to $158.1 million versus $176.9 million in the same period a year earlier.

Dycom Industries Inc. (DY: chart), engineering and construction services provider, said that its fiscal second-quarter net earnings increased to $5.59 million, or 14 cents per share, compared with $3.87 million, or 10 cents per share, in the year-ago period. Revenue climbed to $258.3 million versus $237.1 million in the same period a year earlier.

Leap Wireless International Inc. (LEAP: chart), wireless service provider, reported a fourth-quarter net loss of $39.4 million, or 60 cents per share compared with the same quarter last year when the company posted a net profit of $4.95 million, or 8 cents per share. Revenue climbed to $315.5 million versus $228.9 million in the same quarter a year earlier.

Bitstream Inc. (BITS: chart), font and typeface software developer, said that its fourth-quarter net earnings declined to $630,000, or 6 cents per share, compared with $788,000, or 8 cents per share, in the year-ago period. Revenue climbed to $5.55 million against $4.62 million in the same period a year earlier.

Eaton Vance Corp. (EV: chart), investment management firm, said that its first-quarter net income declined to $2.56 million, or 2 cents per share, compared with $39.76 million, or 28 cents per share a year earlier. The company said quarterly earnings were reduced by $52.2 million, or 24 cents per share, due to one-time payments made to terminate closed-end fund compensation agreements with Merrill Lynch and A.G. Edwards. It said one-time structuring fees and incentives in conjunction with a new closed-end fund reduced quarterly earnings by $21.8 million, or 10 cents per share.
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