Login to your account

Lost your password?

In the news: Earnings from Hewlett-Packard, AIG and more, plus an increased dividend and a sausage recall

News this morning includes earnings from Hewlett-Packard, Nordstrom, Bloomin' Brands, American International Group and WebMD, Texas Instruments returning more cash to shareholders and a sausage recall.

Tech giant Hewlett-Packard (HPQ) reported adjusted earnings of 82 cents per share, which topped expectations for 71 cents. Revenue for the period was $28.4 billion, which was also ahead of expectations for $27.8 billion. For the current quarter, the company expects adjusted earning of 80 to 82 cents per share, compared to a mean estimate of 77 cents per share.

Texas Instruments
Staying in the tech sector, Texas Instruments (TXN) announced that it will increase its dividend to 28 cents per share for the payment scheduled for May 20. The company's quarterly distribution had been 21 cents per share. The company also plans to repurchase up to $5 billion of its own stock.

Pork products firm Smithfield (SFD) is recalling 38,000 pounds of sausage that could contain small pieces of plastic. Containers of Gwaltney mild pork sausage roll may contain plastic that is likely from gloves. The sausage was made on Jan. 11. The company issued the recall after receiving consumer complaints. No injuries have been reported.

Retailer Nordstrom (JWN) reported earnings of $1.40 per share, topping estimates for $1.35 per share. Revenue was $3.7 billion, in line with estimates. Same-store sales rose by 6.3%. Looking forward, the company said it expects net income for the coming fiscal year to be $3.65 to $3.80 per share. Analysts had expected earnings of $3.97 per share.

Bloomin' Brands
The company behind Outback Steakhouse and other restaurants, Bloomin' Brands (BLMN) reported earnings of 15 cents per share, or 20 cents on an adjusted basis. Revenue was $998.4 million. Analysts had expected EPS of 19 cents on revenue of $1 billion. Same-store sales rose by 3.5% at company-owned restaurants during the quarter. Looking forward, the company said it expects adjusted earnings of at least $1.06 per share on revenue of $4.2 billion for the current fiscal year. On average, analysts had expected earnings of $1.05 per share on $4.2 billion in revenue.

American International Group
Insurer American International Group (AIG) reported a loss of $4 billion, or $2.68 per share for the fourth quarter. The loss includes a $4.4 billion loss on the sale of aircraft-leasing unit International Lease Finance and $1.3 billion in losses from Hurricane Sandy. On an operating basis, the company earned 20 cents per share. Analysts had expected the company to lose 8 cents per share during the quarter.

Health website operator Web MD (WBMD) reported a fourth-quarter loss of 12 cents per share. Excluding $5.5 million in restructuring costs, the company earned 8 cents per share. Revenue was $132.7 million during the quarter. Analysts had expected adjusted earnings of 14 cents on $124.2 million.


Bobby Raines

Bobby Raines is the Managing Editor of the Market Intelligence Center. He has degrees in Mass Communications and History from Emory & Henry College. Bobby worked at a mid-sized daily newspaper before making a switch to covering the financial industry full time in the years leading up to the financial crisis. He has been a member of the Fresh Brewed Media team since 2011 and has served as a writer and analyst. You can write to him at braines@marketintelligencecenter.com or follow him on Twitter: @BRatMICenter.