Earnings dominate the news this morning with Coca-Cola, Reynolds America and Michael Kors beating estimates while Barclays, McGraw-Hill and Dun & Bradstreet fell short.
Beverage giant Coca-Cola (KO) reported fourth-quarter earnings of 41 cents per share, or 45 cents per share on an adjusted basis. Analysts had expected EPS of 44 cents. Revenue was $11.46 billion, falling short of estimates for $11.53 billion. The company said soda volume fell by two percent in North America, while sales of sports-drink Powerade and bottled teas rose by one percent.
British bank Barclays (BCS) said it lost $1.3 billion in the fourth quarter of 2012. The company also announced plans to trim its investment banking division by 8 percent. The new round of cuts will mean the loss of about 1,800 jobs. Barclays has already cut 1,600 positions from that unit. The company will also cut 1,900 jobs from its European retail and business banking operations. In total, the bank is cutting about three percent of its global workforce.
Apparel retailer Michael Kors (KORS) reported earnings of 64 cents per share in the fourth quarter, topping estimates for 41 cent per share. Revenue was $606.9 million, helped by a 41 percent increase in same-store sales. Analysts had forecast revenue of $546.1 million. The company expects to earn $1.80 to $1.82 per share for the fiscal year ending in March, up from a previous guidance for $1.48 to $1.50 per share. The company raised its revenue estimate to $2.1 billion from $1.86 billion to $1.96 billion. Analysts had expected $1.58 per share on sales of $2.01 billion.
Tobacco company Reynolds America (RAI) reported earning 25 cents per share for the fourth quarter. Excluding pensions and trademark-related charges, the company earned 76 cents per share, compared to a mean analyst estimate for73 cents. Revenues excluding excise tax were $2.08 billion, topping estimates for $2.06 billion. Cigarette volumes fell by three percent, while smokeless tobacco sales rose by seven percent.
McGraw-Hill (MHP) reported a loss of 78 cents per share for the fourth quarter, excluding a $404 million charge the company took related to the sale of its educational publishing division to Apollo Global Management (APO), the company earned 67 cents per share. Analysts had expected adjusted earnings of 69 cents per share.
Dun & Bradstreet
Dun & Bradstreet (DNB) reported net income of $2.20 per share for the fourth quarter, or $2.38 on an adjusted basis. Analysts had expected earnings of $2.46 per share. Revenue was $463.1 million, again short of estimates for $477.9 million.