Amazon.com held up well enough in their fiscal third quarter, which ended September 30, recording another healthy increase in sales of 31 percent to $4.26 billion (with an $80 million boost due to favorable currency exchange). Operating income rose 26 percent to $154 million. The sales number was in line with analysts’ expectations but the income figure fell well short. Of greater concern to markets is Amazon’s reduced guidance for the fourth quarter. Sales are projected to fall between $6 billion and $7 billion (an increase of between 6 percent and 23 percent), and operating income is projected to range […]
Earnings Reports
Quarto Remains Confident
After reporting a loss three months ago, the Quarto Group says that sales for their fiscal third quarter were 34.9 million pounds, well ahead of last year (when they acquired MBI) but growing at a slower rate than in the first two quarters of year. They now say operating profit for the nine months of this fiscal year are 6.2 million pounds, up 15 percent from a year ago. (Interest on borrowings to acquire MBI reduces those profits by 2.7 million pounds.) CEO Laurence Orbach says “We remain on the lookout for growth opportunities.” The company cites a “very strong […]
Redstone's Trouble Runs Deep; Margin Call for Scholastic's Robinson
The financial world continues to speculate on just how deep Sumner Redstone’s cash squeeze will strike. On Friday his privately-held National Amusements said it “is engaged in constructive discussions with its bank group and noteholders regarding a covenant issue under National Amusement’s debt, which is unsecured.” They blamed “recent unprecedented market volatility which led to a precipitous drop in the value of the CBS and Viacom shares.” “Sources close to Redstone and Viacom say the executive’s current cash situation is so dire that selling Viacom or CBS – which he also controls – is now a real possibility. Redstone used […]
One Stock Rising: Pearson (Plus More from CBS and Bloomsbury)
In a brief trading update, Pearson rode a stronger dollar to positive effect, since it gets sixty percent of its sales from the US. Penguin, while up, appears to have weakened in the past quarter: the more detailed report three months ago had sales at the unit for the first half of the year up 9 percent to 408 million pounds, but at the nine-month mark the company says sales are up 3 percent for the year to date on a constant-exchange-basis (and 6 percent on a “headline” basis). Pearson Education continues a strong year with sales up 10 percent. […]
CBS Stock Price Plummets on Charge and Sell-Off; Border UK in Loan Trouble?
CBS issued revised guidance to investors on Friday afternoon, forecasting “a decline of mid-teens” in operating income for fiscal 2008 compared to a year ago. They also said they expect to take a $14 billion impairment charge in the third quarter “to reduce the carrying value of goodwill, intangible assets related to FCC licenses and investments.” Earlier in the day, Sumner Redstone’s National Amusements announced that it will sell $400 million in equal amounts of Viacom and CBS shares in order reduce debt and comply with their credit agreements. The proceeds will bring the company’s debt load down to $1.2 […]
WH Smith: A Bookseller Whose Stock Actually Rises
WH Smith presented the market with a pleasant surprise, reporting sales of 1.352 million pounds, up 4 percent for the year, with profits rising 15 percent to 76 million pounds, above analysts’ expectations. Like-for-like book sales were “flat excluding the impact of last year’s Harry Potter release” (aka “down”). “Gross margin was up year on year. We were pleased with our share performance versus the general high street,” the company said. And among their travel stores, “extended books charts, improved display of chart titles and strong promotions have contributed to our books performance and we have also seen an encouraging […]