BloggingStocks

Town Bankruptcy Bad Sign for Other Towns
The mortgage crisis, the limping economy and a recent bankruptcy filing by Vallejo - the first municipality to do so since Desert Hot Springs, Calif., in 2001 - have hobbled this town of 120,000. Vallejo's closely watched Chapter 9 bankruptcy filing in federal court in Sacramento may be a warning sign of dangers that could befall other cash-strapped municipalities.
Economy hobbles Calif. town - USATODAY.com

10 Funds Suffering the Biggest Exoduses
Which mutual funds are seeing the biggest outflows in 2008? They include some very well-known popular funds like Fidelity Low-Priced Stock, American Funds Investment Company of America and the Legg Mason Value funds.
The 10 Funds Suffering the Biggest Exoduses

Gas-Saving Deals That Rarely Pay Off
Beware of products that claim to make cars more fuel-efficient, ad offering gas rewards and discounts, gas rewards credit cards and auctions of gas vouchers/coupons. Read the fine print first.
4 Gas-Saving Deals That Rarely Pay Off - SmartMoney.com

The Smartest Advice I Ever Got
From Bill Miller to Derek Jeter: 40 great minds share the best money lessons they ever learned.
The smartest advice I ever got - From Mom and Dad (1) - CNNMoney.com

Help on the Horizon for Soaring College Costs?
With the credit crunch hitting student loans and costs soaring, paying for college is daunting. But there are a few rays of hope.
Help on the horizon for college costs? - Bankrate.com

Independent Coffee Shops Speak Up
As Starbucks' expansion loses steam, independent coffee shops reveal the subtle ways they compete with the coffee powerhouse.
As Starbucks Scales Back, Indies Share Strategies - BusinessWeek

Blue-Collar Billionaires
Thanks to telecom deregulation and the hustle he displayed in the late 1980s buying up, then selling, long-distance phone time, Illinois native Kenny Troutt went from construction worker to billionaire. Meet the construction worker, fisherman and gas station attendant who earned astonishing fortunes.
Blue-Collar Billionaires - Forbes.com
In Pictures - Blue-Collar Billionaires

5 Places to Find Good Toys Cheap
Here are some affordable ways to make sure your little one's toy chest is full, regardless of how the economy fares.
5 Places to Find Good Toys Cheap | MainStreet

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Before the bell: AAPL, AXP, SNDK, TXN, DD, WB, CAT, XMSR, HAL ...

Melly Alazraki — 2008-07-22T08:04:00+00:00

Filed under: Before the bell, Earnings reports, Yahoo! (YHOO), Apple Inc (AAPL), Ford Motor (F), General Motors (GM), XM Satellite Radio (XMSR), Market matters, Caterpillar (CAT), American Express (AXP), H and R Block (HRB), Federal Natl Mtge (FNM), duPont(E.I.)deNemours (DD), United Parcel'B' (UPS), Wachovia Corp (WB), Washington Mutual (WM), Merck and Co (MRK), Texas Instruments (TXN), SanDisk Corp (SNDK)

Stocks futures are lower Tuesday morning, indicating U.S. stock markets will start on a down note following weak outlooks and disappointing financial results from several companies including Apple and American Express. With oil steady and no economic data out today, Wall Street will focus on earnings.

Apple Inc. (NASDAQ: AAPL) reported after the close Monday a record quarter that beat analyst estimates, posting a 31% surge in earnings. Mac and iPod sales satisfied investors, while iPhone sales were somewhat on the lighter side. What concerned investors most was the very weak guidance Apple gave, which was weak even by Apple's standards of lowballing. Other issues included margin squeeze and Jobs health. Apple shares were 10% lower in Frankfurt and premarket trading.

American Express (NYSE: AXP), said late Monday its second-quarter results fell 38% due to the weakening economy. The company, which missed projections, caters to the more affluent who have good credit, and yet even this company felt the pains from the slowing economy. AmEx earned 56 cents per share compared to estimates of 83 cents per share. The company's stock tumbled AXP shares are down over 12% in premarket trading.

Also reporting Monday after the close were Merck & Co., Inc. (NYSE: MRK), Texas Instruments (NYSE: TXN) and SanDisk (NASDAQ: SNDK). MRK shares are down over 6.6% in premarket trading as the company said it would stop give guidance of results. TXN shares are also declining over 10.5% in premarket trading after it gave a disappointing forecast. SNDK shares are plunging over 16% in premarket trading after it swung to a Q2 loss, missing analyst estimates.

This morning we'll have another wave of earnings, and already started were DuPont and Wachovia.

DuPont Co. (NYSE: DD) said Tuesday agriculture sales and emerging markets helped fuel a rise in second-quarter profit to $1.08 billion, or $1.18 per share. Net sales rose to $8.83 billion. This beat expectations of $1.07 per share on revenue of $8.47 billion. While DuPont raised its 2008 outlook slightly, it expects earnings in the second half of this year to decline from a year earlier. DD shares are actually nearly 2% higher in premarket trading.

Meanwhile, Wachovia Corp (NYSE: WB) shares are down over 12% in premarket trading after the bank posted an $8.86 billion second-quarter loss and slashed its dividend for a second time this year. Wachovia's results missed analyst estimates.

Also, Caterpillar Inc (NYSE: CAT) said on Tuesday quarterly earnings rose 34% due to strong growth in emerging economies that offset weakness in North America, Western Europe and Japan. Sales rose 20%. The company handily topped Street estimates.

XM Satellite Radio Holdings Inc. (NASDAQ: XMSR) said its second-quarter loss narrowed. Earnings per share came in at 38 cents, better than the loss of 42 cents a share forecast by analysts polled by FactSet Research. Revenue climbed 15% as the satellite radio company posted a 17% increase in subscribers.

Halliburton Co. (NYSE: HAL) said net income dropped 67% after the sale of the company's stake in engineering unit KBR inflated 2007 earnings, ex-items, profit rose to 68 cents from 63 cents, matching the average of 22 analyst estimates compiled by Bloomberg.

Reporting after the close are after the close, Yahoo (NASDAQ: YHOO), United Parcel Service (NYSE: UPS) and Washington Mutual (NYSE: WM).

In non-earnings news:

Bush Prods Congress, as Financers Are Inspected - Treasury Secretary Henry M. Paulson Jr. said examiners are inspecting the books of Fannie Mae and Freddie Mac.
GM, utilities team up on electric cars - Partnership aims to tackle issues that will crop up when electric vehicles are rolled out.
H&R Block names McDonald's executive CEO
Ford to Make Broader Bet on Small Cars - After two decades focused on trucks, the company is about to drastically shift focus to building smaller cars.

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Earnings highlights: Apollo Group, Family Dollar, Kroger, Deutsche Bank and others

Trey Thoelcke — 2008-07-06T10:40:00+00:00

Filed under: Earnings reports, Ford Motor (F), Sprint Nextel Corp (S), H and R Block (HRB), Campbell Soup (CPB), Kroger Co (KR), Family Dollar Stores (FDO)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

AeroVironment Inc. (NASDAQ: AVAV) beat Q4 estimates on demand for unmanned aircraft.
Apollo Group Inc. (NASDAQ: APOL) beat Q3 expectations on increased enrollment and tuition collection.
Campbell Soup Co. (NYSE: CPB) predicted earnings at the high end of the previously announced range.
Constellation Brands Inc. (NYSE: STZ) posted better-than-expected Q1 earnings, sending shares up.
Deutsche Bank (NYSE: DB), in an effort to calm investors, said that it expects a Q2 profit.
Family Dollar Stores Inc. (NYSE: FDO) beat Q3 expectations and raised its Q4 guidance.
H&R Block Inc. (NYSE: HRB) posted solid Q4 and full-year results and boosted its dividend.
Kroger Co. (NYSE: KR) posted record Q1 EPS and in-line guidance, and its share buybacks continue.
Nvidia Corp. (NASDAQ: NVDA) warned of lower Q2 earnings due to slowing demand and lower prices.
Robbins & Myers Inc. (NYSE: RBN) beat Q3 expectations and raised its Q4 and full-year outlook.
Thornburg Mortgage Inc. (NYSE: TMA) 2007 results are being investigated by the SEC.
UnitedHealth Group (NYSE: UNH) cut its full-year outlook due to changing business trends.

More highlights from this past week: BP, Discover, Corel, Citigroup, WD-40, MSCI and others

Also, Peter Cohan points out that a bear market means low earnings expectations, and also that negative surprises are likely to outweigh positive ones in the second half of the year. Aaron Katsman, on the other hand, predicts a rebound for earnings in the second half. And BusinessWeek reminds us that cheap stocks -- even with big names such as Ford Motor Co. (NYSE: F), Sprint Nextel Corp. (NYSE: S), and Northwest Airlines (NYSE: NWA) -- are no bargain if they have no earnings.

Upcoming results to watch for include Alcoa (NYSE: AA), Pepsi Bottling Group (NYSE: PBG), Marriott International (NYSE: MAR), and General Electric (NYSE: GE).

Visit AOL Money & Finance for more earnings coverage.

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H&R Block rocks expectations for its fourth quarter

Steven Mallas — 2008-07-01T12:55:00+00:00

Filed under: Earnings reports, H and R Block (HRB), Intuit Inc (INTU)

H&R Block (NYSE: HRB), whose colleagues include Intuit (NASDAQ: INTU) and Jackson Hewitt (NYSE: JTX), reported Q4 and full-year earnings on Monday. The numbers looked pretty good to me. For Q4, revenues increased 11% to $2.6 billion and earnings per diluted share from continuing operations increased 17% to $2.11. According to this article, analysts' expectations were beat by $0.08. For the full year, the top line expanded by 10%, coming in at $4.4 billion. Earnings per diluted share from continuing operations jumped 21% to $1.39.

The tax specialist said it worked with 23.5 million clients, the most ever in its corporate history. That's a nice indication of health for the company, I suppose, but here's a better one. The board decided to juice the dividend. The annual payment will now be $0.60 per share, translating to a 5% increase. Okay, 5% isn't too exciting, I'll grant you, but H&R Block has now increased its payments to shareholders every year for over a decade.

But, as the company stated in its release, although it intends on repurchasing shares over the next few years, it will remain "particularly disciplined" about the subject in the next fiscal year. Essentially, that means shareholders should not expect a lot of share repurchases for a while. H&R Block is reacting to the fact that it is still rebooting itself after being victimized by the subprime mortgage crisis. I'd rather hear a more aggressive stance in terms of buyback plans, but I'd say there is prudent motive in such posture given the company's state.

Guidance for next fiscal year calls for earnings per share from continuing operations to fall somewhere between $1.60 and $1.70. Based on this guidance and the stock's dividend yield, you could call H&R Block relatively cheap. The stock has done well on a five-year basis and on a year-to-date basis, but I would expect that a pullback will be in the offing as the market goes through erratic gyrations this summer. H&R Block is probably worth a look on such a retreat in share price, but as always, perform your own due diligence.

Disclosure: I don't own any company mentioned; positions can change at any time.

The week in preview: End of the quarter earnings

Trey Thoelcke — 2008-06-29T12:30:00+00:00

Filed under: Earnings reports, Forecasts, Ford Motor (F), H and R Block (HRB), Family Dollar Stores (FDO), Economic data

Given that it's the end of the quarter, as well as the U.S. Independence Day holiday on Friday, next week looks to be pretty quiet as far as earnings go. But there are a few things of note.

Tax preparation company H&R Block (NYSE: HRB) is scheduled to report its fiscal fourth-quarter results Monday after market close. Analysts surveyed by Thomson Financial on average expect the company to report net income of $2.03 per share on revenue of $2.5 billion. That's an increase of more than 10% over EPS a year ago. H&R Block has tended to fall short of estimates recently, and rival Jackson Hewitt (NYSE: JTX) missed its EPS estimates earlier this month. Still, analysts recommend buying HRB. Shares have risen 12.1% year to date, and the long-term EPS growth forecast is 11.7%.

Alcoholic beverage maker and distributor Constellation Brands (NYSE: STZ) is scheduled to report its fiscal first-quarter results Tuesday morning. Analysts are looking for earnings of 31 cents per share, up 32.3% from the same period of the previous year, on revenue of $906.1 million. Constellation has tended toward positive surprises recently, by 8 cents, or 33.8%, in the previous quarter. However, analysts recommend holding STZ and have for more than 90 days., even though the long-term EPS growth forecast is 12.3%. Although shares have risen 9.0% in the past three months, they are down 16.8% year to date.

Phoenix-based education company Apollo Group (NASDAQ: APOL) is scheduled to report its fiscal third-quarter results late Tuesday. Analysts on average are expecting the company to report net income of 78 cents per share -- the same as in the year ago period -- on revenue of $806.9 million. When it comes to meeting expectations, lately Apollo has a mixed record -- it fell short by 11 cents, or more than 20%, in the previous quarter. Analysts recommend buying APOL and have for more than 90 days. The long-term EPS growth forecast is 14.0%. Though shares have risen 4.2% in the past three months, they are down 31.6% year to date.

Wednesday morning should bring the third-quarter earnings release from the second-largest dollar store chain in the U.S., Family Dollar Stores (NYSE: FDO). Rivals Dollar Tree (NYSE: DLTR) and Big Lots (NYSE: BIG) recently beat EPS expectations. From Family Dollar, analysts on average are looking for earnings of 40 cents per share -- the same as in the year ago period -- on revenue of $1.7 billion. Family Dollar results have generally been in line with Wall Street estimates, though it did beat by 3 cents in the previous quarter. Analysts recommend holding FDO and have for more than 90 days. Shares have fallen 44.4% in the past year, but the long-term EPS growth forecast is 12.7%.

Other economic data coming out next week to keep an eye on:

ISM manufacturing (June 2008), Tuesday, 10 a.m. ET
Construction spending (May 2008), Tuesday, 10 a.m. ET
Ford Motor Co. (NYSE: F) sales (June 2008), Tuesday, 1 p.m. ET
New motor vehicle sales (June 2008), Tuesday, 4 p.m. ET
Factory orders (May 2008), Wednesday 10 a.m. ET
Employment situation (June 2008), Thursday 8:30 a.m. ET
ISM non-manufacturing (June 2008), Thursday, 10 a.m. ET

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Market highlights for next week: Ford and GM to report monthly sales

Eric Buscemi — 2008-06-27T16:17:00+00:00

Filed under: Earnings reports, Forecasts, Conventions and conferences, Annual meetings, Ford Motor (F), General Motors (GM), IAC/InterActiveCorp (IACI), H and R Block (HRB), Family Dollar Stores (FDO), Texas Instruments (TXN)

Monday, June 30

H&R Block (NYSE:HRB) to report Q4 earnings; conference call at 8:00am on Tuesday.
InteractiveCorp (NASDAQ:IACI) to give operational update.

Tuesday, July 1

Constellation Brands (NYSE:STZ) to report Q1 earnings; conference call at 10:00am.
Texas Instruments (NYSE:TXN) to discuss enhanced financial reporting structure at 11:00am.
Ford (NYSE:F) to report June sales at 1:00pm; General Motors (GM) to report June sales at 2:00pm.
Apollo Group (NASDAQ:APOL) to report Q3 earnings; conference call at 5:00pm.

Wednesday, July 2

Family Dollar (NYSE:FDO) to report Q3 earnings; conference call at 10:00am.

Thursday, July 3

Corel Corp (NASDAQ:CREL) to report Q2 earnings; conference call at 8:00am.
Stolt-nielsen to report Q2 earnings; conference call at 9:00am.

Friday, July 4

Markets closed for Fourth of July holiday.

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Analyst upgrades: HRB, TLB, SPWR, AG, EBAY, SNDK

Eric Buscemi — 2008-06-16T11:30:00+00:00

Filed under: Analyst reports, Analyst upgrades and downgrades, eBay (EBAY), H and R Block (HRB), SanDisk Corp (SNDK)

MOST NOTEWORTHY: H&R Block, Talbots and SunPower were today's noteworthy upgrades:

Oppenheimer believes H&R Block (NYSE: HRB) has shown several catalysts over the past few months, most importantly the sale of its mortgage business. The firm, which upgraded shares to Outperform from Perform, believes the company's strong 2008 tax season will lead to future growth, and they think the stock can appreciate 20%+, as catalysts are not yet fully reflected in the stock.
Friedman Billings upgraded Talbots (NYSE: TLB) to Outperform from Market Perform as they believe the company has several sources of cash to avoid a liquidity crisis, charge card EPS contribution provides good visibility, improved merchandise margins, and better merchandising.
Credit Suisse raised SunPower (NASDAQ: SPWR) to Outperform from Neutral citing strength in Italy and other geographies.

OTHER UPGRADES:

Agco (NYSE: AG) was raised at Wachovia to Outperform from Market Perform.
UBS upgraded Metso Oyg (OTC: MXCYY) to Buy from Neutral.
JMP Securities upgraded SanDisk (NASDAQ: SNDK) to Market Perform from Underperform.
Stifel upgraded eBay (NASDAQ: EBAY) to Buy from Hold.

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Wilbur Ross: Banking on banks?

Tom Taulli — 2008-04-17T14:32:00+00:00

Filed under: Citigroup Inc. (C), H and R Block (HRB), Merrill Lynch (MER)

Think the credit crisis is a bad thing? Well, Wilbur Ross doesn't. He's a maestro restructuring expert - having decades of experience on highly complex deals. In fact, he was prescient with key roll-ups in sectors like steel (where he made billions).

His next stop? He likes US banks. In fact, according to a piece in Bloomberg, Ross is putting together a $4 billion fund to capitalize on the opportunity. Apparently, he's talking to a variety of investors in Abu Dhabi. Hey, sovereign wealth funds have already shown their alacrity for US financial institutions, with investments in mega firms like Merrill Lynch (NYSE: MER) and Citigroup (NYSE: C).

Ross' strategy makes a lot of sense; that is, he wants to buy 100 to 200 banks. Thus, by building some heft, he should realize economies of scale - and ultimately build more value for his investors. Simply put, it's a formula he has refined.

Actually, Ross has already been aggressive in the financial services sector. For example, he recently spent $1.1 billion on Option One Mortgage, which was purchased from H&R Block (NYSE: HRB).

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Earnings highlights: Blockbuster, Costco, H&R Block, Walgreen, Saks and others

Trey Thoelcke — 2008-03-08T09:10:00+00:00

Filed under: Earnings reports, Walgreen Co (WAG), Blockbuster Inc 'A' (BBI), H and R Block (HRB), Costco Wholesale (COST), Marvell Technology Group (MRVL), Urban Outfitters (URBN)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Astec Industries Inc. (NASDAQ: ASTE) beat expectations and raised its guidance.
Blockbuster Inc. (NYSE: BBI) fourth-quarter profit fails to offset the full-year loss.
China Techfaith Wireless Communication Technology (NASDAQ: CNTF) beat analysts' expectations.
Costco Wholesale Corp. (NASDAQ: COST) met analysts' estimates, buoyed by higher fuel prices.
FTI Consulting Inc. (NYSE: FCN) beat expectations and raised its full-year guidance.
H&R Block Inc. (NYSE: HRB) narrowed its loss due to higher sales and smaller subprime losses.
Jackson Hewitt Tax Service Inc. (NYSE: JTX) missed estimates as third-quarter profits declined sharply.
LifeCell Corp. (NASDAQ: LIFC) beat fourth-quarter estimates and offered full-year guidance.
Marvell Technology Group (NASDAQ: MRVL) lowered its first-quarter forecast , sending shares lower.
Porsche AG (OTC: PSEPF) profit soared on strong sales of its Cayenne.
S1 Corp. (NASDAQ: SONE) beat expectations and offered full-year guidance.
Saks Inc. (NYSE: SKS) fourth-quarter profit nearly doubled, but full-year profit declined.
Urban Outfitters Inc. (NASDAQ:URBN) beat expectations on strength in same-store sales.
Walgreen Co. (NYSE: WAG) reports strong same-store sales ahead of its quarterly results.

Also, see Timothy Sykes's take on Warren Buffett's annual letter to Berkshire Hathaway (NYSE: BRK.A) shareholders. Zac Bissonnette is interested in where earnings actually come from. And Saks, Costco, and other retailers saw stronger February same-store sales despite recession concerns, but JC Penney Co. (NYSE: JCP) didn't feel the love.

Upcoming results to watch for include Kroger Co. (NYSE: KR), Boston Beer Co. (NYSE: SAM), J. Crew Group Inc. (NYSE: JCG), Jones Soda Co. (NASDAQ: JSDA), Blackstone Group (NYSE: BX), and Men's Wearhouse Inc. (NYSE: MW).

Visit AOL Money & Finance for more earnings coverage.

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H&R Block (HRB) third-quarter loss shrinks on higher sales

Eliza Popescu — 2008-03-06T13:38:00+00:00

Filed under: Earnings reports, Forecasts, Deals, H and R Block (HRB)

Shares of U.S.'s largest tax preparer H&R Block Inc. (NYSE: HRB) are surging today after the company announced last night better-than-expected third-quarter earnings results. H&R also issued encouraging earnings guidance and showed optimism about successful negotiations for its remaining Option One Mortgage sale.

H&R announced its quarterly loss narrowed to $47.4 million, or 14 cents per share, helped by higher sales and smaller losses from its subprime mortgage lending subsidiary, up from its loss of $60.3 million, or 18 cents per share in the same period last year.

Included in the company's earnings was a $26.3 million pretax charge related to staff reductions expenses and executive departures. Excluding that, H&R Block's earnings numbers would have come at 8 cents per share. Analysts' estimates (which typically exclude one time items) was for 6 cents per share in the quarter.

Looking at revenue, the company posted $972.6 million, missing analysts' forecast for quarterly revenue of $1 billion, according to Thomson Financial. The company said that retail tax preparation and related fees jumped 12.6% compared with the same period a year ago. The number of retail clients also saw a gain of 6.8% in the month of February.

Looking ahead, H&R said it expects positive earnings figures for the year. H&R Block believes that subprime mortgage losses will be offset by higher tax revenue and cost cuts. Thus, the company expects 2008 earnings to be toward the low end of its $1.30 to $1.45 per share forecast range, including $26.3 million related to severance charges. Analysts, on average, expected H&R show a profit of $1.29 per share.

In addition, the company expressed its enthusiasm about a possible deal regarding the sale of the remaining pieces of Option One Mortgage Corp. Richard Breeden, H&R's Chairman, said the company is confident it will get "a signed contract in the near future."

Traders have expressed their enthusiasm over H&R Block's outlook, pushing the stock up 6.02% to $11.33 in morning trading.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

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Before the bell: Futures decline with the dollar (HRB, MOT, UBS)

Melly Alazraki — 2008-03-06T07:44:00+00:00

Filed under: Before the bell, International markets, Earnings reports, Analyst reports, Wal-Mart (WMT), Motorola (MOT), Market matters, H and R Block (HRB), Costco Wholesale (COST), Economic data, Oil

Stock futures were lower early in the morning, indicating another low start on Wall Street as concerns remain about the economic slowdown and the credit crisis. The dollar hitting a new low against the euro and oil reaching new record highs didn't boost investors' sentiment. Upcoming interest rate decision by the Bank of England and the European Central Bank will likely have an impact this side of the pond.

On Wednesday stocks started with significant declines only to rebound late getting a boost from the technology sector. The Dow Jones Industrial Average posted its first rise in five sessions of 41 points, or 0.34%, the S&P 500 added nearly 7 points, or 0.52%, and the Nasdaq composite climbed 12 points, or 0.55%.

Not much economic data is to be released today. At 8:30 a.m., weekly jobless initial claims is due and at 10:00 a.m., January pending home sales will be reported.

What investors may watch closely is monthly sales figures that many retailers should report today. Economists expect February same-store sales in the U.S. to rise 0.5% to 1%, according to the International Council of Shopping Centers, the worst since 2003, when sales rose 0.9%. High gas prices combined with a weak housing and credit market influenced consumers' decision. While Costco (NYSE: COST) and Wal-Mart (NYSE: WMT) may have benefited from consumers being price conscious, most other retailers have not.

Meanwhile, the Bank of England has already reached a decision, keeping its benchmark interest rate unchanged at 5.25%. Most economists agree the ECB will keep its benchmark rate unchanged as well. It's not surprising then that the euro rose to record high against the dollar ahead of decision and that oil prices hit a record $105.10 a barrel Thursday. Compounding the weak dollar was Wednesday's report of a surprise drop in U.S. crude supplies and a decision by OPEC not to boost production. Prices retreated somewhat and are now around $104.6 a barrel.

Overseas, Asian stocks finished higher, but European shares were falling by midday trading.

H&R Block Inc. (NYSE: HRB) said its third-quarter loss narrowed due to "higher revenue and smaller losses from the windup of its subprime mortgage lending subsidiary and other charges." Not charges for costs, the company said it would have earned $25 million, or 8 cents per share, beating the 6 cents per share predicted by analysts. Revenue during the quarter rose 4.3% to $972.6 million, below analysts' average prediction of $1 billion.

Meanwhile, Carl Icahn raised his stake in Motorola (NYSE: MOT) to 6.3% from 5%, according to a filing. No doubt his pressures on the company for a restructuring will not cease, but rather increase.

And just in case anyone thought there would be a day without a reminder of subprime and credit crisis, UBS AG (NYSE: UBS) shares fell to a five-year low in Swiss trading after reports said "it probably sold 25 billion francs ($24 billion) of mortgage-backed securities in a "fire sale" and may have more writedowns."

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Jackson Hewitt tumbles on profit decline

Trey Thoelcke — 2008-03-04T17:57:00+00:00

Filed under: Earnings reports, H and R Block (HRB)

So far, tax season as not been kind to the number two tax preparer in the U.S., Jackson Hewitt Tax Service Inc. (NYSE: JTX). A slow start to the season led to a sharp decline in fiscal third-quarter earnings, the company reported today. Net income in the quarter ended January 31 fell 34% to $18.2 million, or 61 cents per share, from the year-ago period. Revenue was down 15% to $97.6 million. Analysts surveyed by Thomson Financial had expected profit of 99 cents per share on revenue of $118.4 million.

Jackson Hewitt shares dropped more than 30% on Tuesday, reaching a new multi-year low of $13.51, and closed at $13.68.

The leading U.S. tax preparer, H&R Block Inc. (NYSE: HRB), is scheduled to report fiscal third-quarter results tomorrow. It has missed earnings estimates in three of the past four quarters. For the current quarter, analysts polled by Thomson Financial expect earnings of 6 cents per share, compared to 8 cents in the year-ago quarter.

H&R Block's earnings per share growth forecast for this year is 19.5%, better than the industry average of 13.7%, as well as Jackson Hewitt's 16.3%. The analysts' consensus recommendation is to buy HRB. Shares have risen from the 52-week low of $16.89 in January, but today continued their recent slide to close at $17.82.

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Option update: Volatility levels for tax preparers HRB, JTX

Paul Foster — 2008-02-20T11:15:00+00:00

Filed under: H and R Block (HRB), Options

H&R Block (NYSE: HRB) closed at $18.47 Tuesday.

Soleil Securities has a Buy rating on HRB.

HRB overall option implied volatility of 45 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Jackson Hewitt (NYSE: JTX) closed Tuesday at $21.65, near a 30-month low.

Soleil Securities has a Hold rating with an $18 price target on JTX.

JTX overall option implied volatility of 59 is above its 26-week average of 43 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Earnings highlights: Costco, GE, H&R Block, Lehman Bros, and others

Trey Thoelcke — 2007-12-16T09:40:00+00:00

Filed under: Earnings reports, Apple Inc (AAPL), General Electric (GE), Citigroup Inc. (C), H and R Block (HRB), Coca-Cola Enterprises (CCE), Costco Wholesale (COST), Novell Inc (NOVL), Texas Instruments (TXN)

Here are a few highlights of this past week's earnings coverage from BloggingStocks:

Analogic Corp. (NASDAQ: ALOG) easily beat expectations, sending shares higher.
Ciena Corp. (NASDAQ: CIEN) posted a loss and forecast sales for 2008 below estimates.
Coca-Cola Enterprises Inc.'s (NYSE: CCE) earnings outlook led shares to a 52-week high.
Cooper Cos. (NYSE: COO) swung to a loss on acquistion costs and litigation.
Copart Inc. (NASDAQ: CPRT) beat expectations, sending shares to a new high.
Costco Wholesale Corp. (NASDAQ: COST) posted a solid quarter, in line with expectations.
Cost Plus Inc. (NASDAQ: CPWM) posted a smaller-than-expected net loss.
Fleetwood Enterprises Inc. (NYSE: FLE) narrowed its loss through improved efficiency.
General Electric Co. (NYSE: GE) reaffirmed its 4Q forecast, but the forward outlook disappointed investors.
H&R Block Inc. (NYSE: HRB) warned of a deep loss due to the mortgage meltdown.
Korn/Ferry International (NYSE: KFY) beat estimates and revised its guidance.
Leap Wireless International Inc. (NASDAQ: LEAP) posted a loss, but share prices rose anyway.
Lehman Brothers Holdings Inc. (NYSE: LEH) earnings fell for the third quarter in a row.
Methode Electronics Inc. (NYSE: MEI) beat estimates, spurred by international sales.
Novell Inc. (NASDAQ: NOVL) swung to a loss, surprising Wall Street.
Synopsys Inc. (NASDAQ: SNPS) beat expectations and offered guidance.
Texas Instruments Inc. (NYSE: TXN) raised its guidance for the fourth quarter.

Brian White wonders whether Apple Inc. (NASDAQ: AAPL) has stopped underestimating its guidance. Peter Cohan offers Citigroup Inc.'s (NYSE: C) new CEO three steps for a brighter earnings outlook. Both Douglas McIntyre and Lita Epstein take a look, ahead of its quarterly report next week, at how Goldman Sachs (NYSE: GS) handled the mortgage crisis

Other upcoming results to watch for include: Best Buy (NYSE: BBY), Nike (NYSE: NKE), Oracle (NASDAQ: ORCL), Morgan Stanley (NYSE: MS), ConAgra (NYSE: CAG), and FedEx (NYSE: FDX).

Visit AOL Money & Finance for more earnings coverage.

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H&R Block (HRB) expects deep second-quarter losses

Eliza Popescu — 2007-12-11T09:30:00+00:00

Filed under: Earnings reports, Forecasts, Bad news, H and R Block (HRB)

Tax preparer H&R Block (NYSE: HRB) warned this morning in a preliminary earnings report that it expects to swing to a deep loss for the second quarter, hurt by the declining mortgage market.

The company said it anticipates a quarterly loss of $502.3 million, or $1.55 per share. Included in its losses is $366.2 million, or $1.13 per share, related to discontinued operations. A significant part of its discontinued operations losses came from its Option One Mortgage Corp., which lost many lenders because of increased borrower defaults and deteriorating credit markets. H&R business was also hurt by the last week's failed proposed sale of Option One to Cerberus Capital Management LP.

The company also announced a pretax loss of $551.2 million for its discontinued operations related to mortgage assets sales, remaining mortgage origination, servicing assets adjustment and restructuring costs. For continuing operations, H&R Block reported a loss of $136.1 million, or 42 cents per share.

H&R Block motivated the delay in filing its quarterly report, saying the company had switched to auditing firm Deloitte & Touche LLP. The decision to change accounting firms came after dissident shareholder Richard Breeden was elected to the company's board of directors in September .

[photo : ChrisM70]

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

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8 stocks for '08, bail or not to bailout homeowners in trouble? & notable entrepreneurs who died in 2007 - Today in Money 12/11

Allan Halprin — 2007-12-11T09:04:00+00:00

Filed under: Intel (INTC), AT and T (T), Money and Finance Today, Bank of America (BAC), H and R Block (HRB), Boeing Co (BA), Texas Instruments (TXN), Teva Pharm Indus ADR (TEVA)

In the News:

· Fed Expected to Cut Rates Today; Will It Be .25 or .50 Point?

· Mortgage Crisis Forces Big Cuts at Washington Mutual

· H&R Block 2Q Loss Soars to Over $500M

· Airlines Hope to Block Flier Bill of Rights

· AT&T and Boeing Ups Dividends

· Is the Boeing 787 Dreamliner on Track?

· Texas Instruments Lifts Guidance

· Conrad Black Sentenced to 6 1/2 Years in Prison

· Bank of America Shuts Massive Money Market Fund

· Lead Found in Some Christmas Lights

· Harvard to Reduce Tuition Costs

8 Stocks for '08
Making money by throwing darts at stock tables will be tough in 2008 if market gains are as modest as we predict they'll be. Kiplinger's best bet in the coming year include AT&T, Cemex, Consol Energy, Intel, Parexel, Stanley Works, Teva Pharma and XTO Energy.
8 Stocks to Own in '08 - Kiplinger.com
Also: Where to Invest in 2008

Bail or Not to Bail?
Should Americans who bought more house than they could afford be bailed out? That is the question and America appears to be split on if special treatment should be giving to those at risk. Most people believe the borrowers are to blame for their own problems.
Americans split on blame, solutions for mortgage woes - CNNmoney

Extreme Celebrity Giving
Take off their clothes? Tangle with police? Swim with dolphins? The charity options of elite stars like Victoria Beckham, Sting, Beyonce an dmore.
Extreme Celebrity Giving - Forbes.com

5 Hot Fashion Trends for 2008
Forecasting firm Tobe is the oracle of the retail world, its January trend report one of the industry's most closely-watched forecasts. Here's a sneak peek at Tobe's five picks for the coming year. They include see-through clothes, fashion sneakers, scarves, industrial fabrics and making retail stores tomorrow's hangouts.
5 hot fashion trends for '08 - (1) - FORTUNE

Make the Most of Your Charitable Donations
Here are nine steps to ensure your donation makes the biggest difference.
Make the Most of Your Charitable Donations | SmartMoney.com

In Memoriam: Notable Entrepreneurs Who Died in 2007
Liz Claiborne, Warren Avis, Leona Helmsley, Merv Griffin, Bob Evans and Ernest Gallo are among the entrepreneurs who died in 2007 that helped to shape some of the major trends in business in the past 50 years, from the rise of socially responsible business to the advent of quality manufacturing.
In Memoriam - Notable Entrepreneurs - Inc.

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Before the bell: All eyes on Fed

Barry Summerlin — 2007-12-11T07:35:00+00:00

Filed under: Before the bell, H and R Block (HRB), Kroger Co (KR), Washington Mutual (WM), Federal Reserve

Stock futures were tightly mixed Tuesday as investors looked ahead to this afternoon's interest rate announcement from the Federal Reserve Board. The Fed is widely expected to lower the Federal Funds rate -- the rate of interest banks charge each other -- by a quarter point, although forecasts of a half-point cut are growing.

In addition to the Fed's afternoon announcement, the Census Bureau of the Department of Commerce will release wholesale inventories for October this morning at 10.

On Monday, the Dow closed at 13,727.03 and the S&P 500 finished at 1,515.96, each higher by three-quarters of a percent. The Nasdaq reached 2,718.95, 0.47 percent higher. U.S. stocks were boosted by anticipation of interest rate cuts and an improved outlook on home sales. The National Association of Realtors reported yesterday that pending-sales of homes had climbed 0.6% in October, increasing for a second-straight month following a long skid.

After Monday's close, Washington Mutual (NYSE: WM) announced it will discontinue subprime mortgage lending and plans to cut 2,600 jobs in its home loans division. WaMu will write-down the value of its loans unit by $1.6 billion and now expects to report a loss in the fourth quarter, echoing similar news Monday from Swiss bank UBS (NYSE: UBS).

Top grocer Kroger Co. (NYSE: KR) is due to report quarterly results on Tuesday; analysts expect EPS of 35 cents per share. Tax preparer H&R Block (NYSE: HRB), initially scheduled to report second-quarter earnings Monday, now says it will not file on time.

Overseas, the dollar was little changed against the euro, and rose from 111.67 to 112.11 yen. The Nikkei 225 climbed 0.8% to close above 16,000, while London's FTSE 100 slipped in morning trades.

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Before the bell: UBS announces $10 billion in write-downs

Barry Summerlin — 2007-12-10T07:35:00+00:00

Filed under: Before the bell, H and R Block (HRB)

Stock index futures pointed to a higher opening Monday as investors expect a quarter-point interest rate cut from the Federal Reserve when it meets tomorrow.

Anticipation of a rate cut offset news from UBS (NYSE: UBS) that it will write down around $10 billion in subprime holdings, and that it expects a loss when it reports fourth quarter results in February. Muting the write-downs, UBS announced that the government of Singapore had invested $11.5 billion in the Swiss bank.

All eyes fell on the Fed Monday, with few other economic indicators scheduled. The National Association of Realtors is expected to report a 1 percent drop in October's pending home sales in its 10 a.m. report.

Although some analysts saw potential for a half-point cut in the Federal Funds rate, the interest rate banks charge each other, consensus seemed to expect just a quarter-point cut from the Fed, especially after latest data indicated labor market conditions remained stable in November. The Fed could also lower the emergency discount rate, currently 5 percent, to match the 4.5 percent Federal Funds rate, and hold the latter steady.

Among the few companies reporting earnings Monday, income tax preparer H&R Block (NYSE: HRB) is expected to announce a 35-cent loss per share when it reports earnings after the market closes Monday.

Foreign markets were flat Monday, with European bourses sagging slightly while Japan's Nikkei 225 finished down 0.2 percent at 15,924.39. The dollar slipped in Europe, fetching just 0.6816 euro.

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Cerberus passes on H&R Block's mortgage business

Peter Cohan — 2007-12-04T09:48:00+00:00

Filed under: Deals, H and R Block (HRB)

The Associated Press reports that Cerberus Capital Management, the hedge fund, has decided to abandon its deal to purchase the mortgage business of H&R Block (NYSE: HRB). H&R Block's mortgage business, which has stopped accepting new mortgage applications, said it will lay off about 620 employees, close three offices and take a $75 million restructuring charge as it shuts down lending at Option One Mortgage Corp. (OOMC).

Why did Cerberus back out of the deal? The deal was struck in April, and since then the mortgage market has had some big downs. While Cerberus and H&R Block tried to renegotiate the agreement regarding Option One, they could not come to terms, announcing the termination was ''fully amicable." OOMC will honor $30 million worth of existing commitments.

The market is not happy with this announcement, sending H&R Block stock down 5.6% in premarket. It makes me wonder how much Cerberus -- which is already neck deep in mortgage problems with its GMAC ResCap investment -- must be thinking about the prospects for the mortgage industry. I would guess that the more it's learned, the less it likes.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

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