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US markets: Walt Disney disappoints, Macy’s beats street and doubles dividend

11th May 2011, 9:12 am by Ian Mclelland
Wall Street is pointing to a flat open Wall Street is pointing to a flat open

US futures are suggesting a lacklustre start to trading today with the NASDAQ, S&P 500 and Dow Jones Industrial Average all pointing to a near flat open.  Markets were initially buoyed by trade data which showed a 4.6% increase in exports in March. Despite the surge in exports, imports also rose in March by 4.9%, widening the overall trade deficit for March to $48.2 billion – the highest level in nine months - from $45.2 billion in February.


US markets were also dampened by disappointing results from Walt Disney, though Macy’s managed to boost spirits with a very solid first quarter.  Commodities were looking a tad choppy this morning, initially rising, but quickly reversing direction after the US trade data.  Gold is currently down  $2.60 per ounce to $1513, silver fell 43 cents to $38 per ounce and oil slipped 1.2% to $102.60 per barrel


Quarterly Results


The Walt Disney Company (NYSE:DIS) last night reported earnings for its second fiscal quarter and six months ended April 2, 2011. Diluted earnings per share (EPS) for the second quarter increased 2% to 49 cents while diluted EPS for the six-months ended April 2, 2011 was $1.16 per share compared to 93 cents in the prior-year period. Shares in the company are down nearly 4% in pre-market trading.


Solid results from retailer Macy's, Inc. (NYSE:M) prompted it to announced a 100% increase in its quarterly dividend to 10 cents per share.  The company announced quarterly earnings per diluted share of 30 cents, up by a factor of 6 from the same quarter in 2010.  Sales in the first quarter of 2011 hit $5.889 billion, an increase of 5.7%, while online sales jumped 38% percent. Macy's, Inc.'s operating income climbed to $330 million or 5.6% of sales for Q1 2011, compared with $203 million or 3.6% of sales for the same period in 2010. Shares in the company look set to open at least 8% higher.


IntraLinks Holdings (NYSE:IL), a provider of critical information exchange solutions, today reported first quarter revenues of $52.4 million, up 31% year-over-year  Non-GAAP adjusted net income came in at $5.5 million or 10 cents per share ($0.6 million or 1 cent per share for the same quarter last year). Cash flow from operations swung back to positive territory.


Diversified consumer products company Spectrum Brands (NYSE:SPB) reported second fiscal quarter net sales to $694 million and reaffirmed its full year expectations for net sales growth of 3-4 %, and adjusted EBITDA of $455-$465 million.  Spectrum also upped the expected cost synergies from its acquisition of Russell Hobbs to $30-35 million.


TMS International (NYSE:TMS) a provider of outsourced industrial services to steel mills, today announced a 26.7% increase in first quarter revenues after raw material costs of $135 million (Q1 2010 $106.8 million) while adjusted EBITDA climbed 33.8% to $34.6 million (Q1 2010 $25.9 million).


Automotive giant Toyota (NYSE:TM) reported fiscal year net revenues for the year ended March 31, 2011 of 18.99 trillion yen, an increase of just 0.2% compared to the previous fiscal year. Operating income increased from 147.5 billion yen to 468.2 billion yen, thanks to a “significant increase” in vehicle sales in emerging markets. Total group vehicle sales for the fiscal year hit just over 7.3 million units.


South Africa headquartered gold producer AngloGold Ashanti (NYSE: AU) posted adjusted headline earnings of $203 million, or 53 cents per share in the first quarter and reported a boost in cash flow from its operations after eliminating its hedge book last year. Cash flow generated from the company's operating activities during the first quarter was $513 million, while net debt fell 15% to $1.1 billion.


Natural gas and oil pipeline giant Enbridge Inc (TSE:ENB, NYSE:ENB) delivered first quarter adjusted earnings of C$334 million, or 89 cents per share and reaffirmed its full year adjusted earnings guidance of $2.75 to $2.95 per share.

Seaborne crude oil and petroleum transportation company  Tsakos Energy Navigation (NYSE: TNP)  reported first quarter  net income of $9.3 million (including a $5.8 million gain on the sale of a vessel) for the first quarter of 2011 compared to $19.5 million (including $14.3 million gains on the sale of vessels) for the first quarter of 2010. Diluted earnings per share for the quarter was 20 cents   Revenues came in just shy of $100 million, while fleet utilization remained high, at 99%. 


Kid Brands (NYSE:KID) announced a 2.7% drop in first quarter revenues to $59.8 million, blamed on lower sales of LaJobi and Kids Line, though this was partially offset by better sales for Sassy. Gross profit was $16.3 million, or 27.2% of net sales, for Q1 2011 compared to $18.7 million, or 30.4% of net sales, for Q1 2010.


China Pharma Holdings (AMEX:CPHI) a specialty pharmaceuticals company in China, today announced that revenues increased 20% to $18.1 million in the first quarter of 2011. Cashflow from operations rose 23% to $1.4 million, gross profit grew 12% to $6.9 million, and net income, excluding the impact of change in fair value of derivative liability, increased 3% to $4.4 million.


Universal Power Group  (AMEX:UPG), a Texas-based distributor and supplier of batteries and related power accessories and a third-party logistics provider, reported a 17% drop in first quarter net sales to $21.6 million.  Net income came in at $0.4 million or 8 cents per share compared with net income of $0.5 million, or 10 cents per share in Q1 2010

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