In the news this morning, Ford beats earnings estimates, but expects losses in Europe to continue; Eli Lilly and Pfizer both beat expectations. J.C. Penney plans to re-introduce targeted discounts, Yahoo beats earnings and forecasts inline net revenues and regulators want criminal charges for Royal Bank of Scotland in connection with LIBOR rigging.
Ford Motor Co.
Automaker Ford (F) reported non-GAAP EPS of 31 cents per share, which beat analysts' estimates for 25 cents per share. Revenue of $36.5 billion beat estimates for $32.94 billion. The company lost $732 million in its European operations during the quarter, bringing total losses there to $1.75 billion for the year. Ford has already announced plans to scale back its European operations, but said it expects to lose $2 billion in Europe in 2013. CFO Bob Shanks said he expects European operations to bottom out this year.
Eli Lilly and Co.
Drug-make Eli Lilly (LLY) said Tuesday that it earned 74 cents per share in the fourth quarter, or 85 cents per share on an adjusted basis. Analysts had expected 78 cents per share. Revenue fell to $5.96 billion, topping estimates for $5.81 billion. The company said sales of schizophrenia drug Zyprexa fell by 49 percent, largely driven by increased competition from generic drugs. For full-year 2013, the company said it expects #3.82 per share, to $3.97 per share, excluding special items. Analysts had been predicting $3.84. Revenue is expected to be $22.6 billion to $23.4 billion, compared to estimates for $22.93 billion.
Pfizer (PFE) said Tuesday that it earned 86 cents per share, including a $12 billion gain from the sale of its nutritional products business. On an adjusted basis, the company reported earning 47 cents per share, topping estimates for 44 cents. Global sales of $15.1 billion topped estimates for $14.37 billion. The company said it expects to earn $2.20 to $2.30 per share on an adjusted basis for 2013. Analysts had been forecasting $2.29.
Royal Bank of Scotland Group
The Wall Street Journal is reporting this morning that regulators in the U.S. want Royal Bank of Scotland (RBS) to plead guilty to criminal charges and pay a penalty as part of a settlement related to a U.S. and British investigation into LIBOR rigging. Executives at the bank are hesitant to plead guilty due to concerns it could cause clients stop dealing with the bank and possibly open the door to litigation.
Retailer J.C. Penney (JCP) will start offering targeted discounts in an effort to lure in shoppers. The move marks a change of course for a company that stopped offering discounts after former Apple (AAPL) executive Ron Johnson took the helm of the company last year. Stores will also begin to use price tags and signs to show shoppers how much they are saving by shopping at Penney's.
Web portal Yahoo (YHOO) reported adjusted earnings of 32 cents per share for the fourth quarter, compared to a mean analyst estimate for 28 cents. The company also forecast net revenue of $1.07 billion to $1.1 billion for the current quarter, compared to a mean estimate for $1.1 billion. The company also said it repurchased $1.5 billion of its own shares during the fourth quarter.