BetterTrades Blog

Reporting before the opening bell on December 9, Movado Group Inc. (MOV) confirmed that the company’s earnings for the 3Q were hurt by the lack of orders and a tax charge that pushed profits into the red. Movado is a designer, manufacturer and distributor of quality watches with prominent brands sold in almost every price category comprising the watch industry.

Offering products under such names as Movado, Ebel, Concord, ESQ, Coach, Hugo Boss, Juicy Couture, Tommy Hilfiger, and Lacoste brand names, Movado recorded a net loss of $20.9M, or $0.85 per share. That is a far cry from the previous year’s net profit of $15.7M, or $0.62 per share.

The latest results were greatly affected by a one-time tax charge of $22.95M, unlike last year, when the company benefited from a tax gain of $3.74M. However, Movado did manage to benefit from sales of discontinued inventory that amounted to $8.4M.

Excluding the one-time charge, Movado would have posted a net profit of $3M, or $0.12 per share, down substantially from the prior year’s net income of $13.43M, or $0.53 per share, a decrease in earnings of nearly 78%.

Quarterly sales fell year-over-year, slipping from $135.8M to $129M, a decrease in overall revenues of 5%. Sales have been hurt across the board for luxury makers, as consumers continue to curtail their spending habits. Retailers also played into Movado’s lack of sales, as stores have been keeping a keen eye on their inventories.

On average, analysts within the industry were looking for the luxury watch and jewelry maker to post a quarterly profit of $0.66 per share based on total sales of $141.2M.

Commenting on the results was Efraim Grinberg, CEO at Movado, “We are very disappointed in our third quarter and year-to-date results. We experienced higher levels of destocking in the marketplace than originally anticipated as retailers continued to focus on very tight inventory control. Further, the unprecedented level of U.S. jewelry retailers closing their operations and liquidating inventory has had a significant impact on our business.”

Movado’s gross margin plunged as well, falling from 62.9% to 46.8%. The decrease was attributed to the $8.4M in excess products that had been discontinued. Lower margins were affected by the company’s shift in product mix, as well as the adverse effect of fluctuations in the exchange rate.

Through the first nine months of fiscal 2010, Movado has suffered, posting a net loss of $31.07M, or $1.07 per share, compared to the same period a year ago in which the company recorded a profit of $25.11M, or $0.97 per share. Excluding charges throughout the year, the company posted an adjusted net loss of $5.31M, or $0.22 per share, versus a profit of $24.66M, or $0.96 per share.

Total revenues have declined through the first nine months as well, falling from $366.89M to $286.24M, a drop in sales of almost 22%.

Because Movado operates in an industry that has been devastated by the economic recession, the company is now looking to post a full-year loss between $1.40 and $1.50 per share, compared to a previously expected profit of $0.50 per share made during the 1Q. The expected loss will include a $0.94 reduction in earnings for tax charges, a $0.08 loss related to the sale of discontinued products and a $0.03 charge related to restructuring costs.

Excluding one-time items, Movado is expecting to record an annual loss between $0.35 and $0.45 per share. Analysts, on average, are projecting a yearly profit of $0.55 per share. Analysts typically exclude one-time items from their forecasts.

Movado, based in Paramus, N.J., is anticipating a 20% decrease in sales for the year, up from the company’s prior expectation of a high, single-digit percentage decline.

By the conclusion of trading on December 9, shares of Movado plunged on the company’s earnings report and yearly projections. The stock slipped nearly 13% by the end of the day, losing $1.40 to finish at $9.45 per share. Over the course of a year, shares of MOV have traded as high as $15.56 per share, while slipping as low as $4.65 per share.

Prior to the opening bell on December 17, one of the leading producers of packaged consumer foods, General Mills Inc. (GIS) reported earnings results for its most recent quarter. General Mills is a company that markets its products primarily through its own sales organizations, supported by advertising and other promotional activities. Announcing for the 2Q, General Mills saw an increase in net profits on the back of stronger sales as cash-conscious shoppers continue to look for deals.
For the recent period, GIS recorded net income of $565.5M, or $1.66 per share, compared to the previous year’s net earnings of $378.2M, or $1.09 per share, an increase in profits of nearly 50%. Current results included a net gain from a mark-to-market valuation of current commodity positions, resulting in a $0.12 per share positive effect on earnings.
Excluding the mark-to-market impact, General Mills would have posted a net profit of $1.54 per share. Quarterly sales for the company came in at $4.08B, up 1.7% from the prior year’s total revenues of $4.01B.
Analysts, on average, were looking for the makers of Cheerios cereal, Progresso soup and Yoplait yogurt to post a quarterly profit of $1.45 per share based on gross sales of $4.07B.
Chairman and CEO of General Mills, Ken Powell, remarked on the company’s results, “Demand for our leading brands remains strong. These good sales levels, combined with the accumulating benefits of our holistic margin management efforts, are continuing to drive terrific operating performance in our manufacturing plants. This strong, fundamental business momentum has enabled us to raise our EPS targets for the full year.”
Gross margins for the company came in above the previous year’s results, climbing from 30.4% to 42.8%. The increase reflected stronger operating practices along with lowered commodity prices year-over-year. Operating income for the quarter was up 12.6% over last year’s results at $880.1M.
Looking further inside the company’s report, General Mills witnessed an increase in overall U.S. sales, as revenues advanced from $2.79B to $2.89B, a gain of nearly 3.6%. U.S. operating income came in at $718.4M, an increase of 13% year-over-year.
Within the international markets, sales increased more than 7% from last year’s results, climbing from $676.2M to $723.9M. A positive exchange rate contributed 4% to overall sales growth. Operating income from the international segment slipped year-over-year, falling 3% to $77.1M.
Through the first six months of the year, General Mills was able to post a net profit of $986.1M, or $2.91 per share, versus the same period from a year ago in which the company generated net income of $656.7M, or $1.88 per share, an increase of more than 50%. Excluding certain one-time items, overall earnings per share for the first half of the year was $2.82, up more than 21% from $2.32 per share.
Sales through the first two quarters totaled $7.6B, up marginally from the same period a year ago in which the company posted total sales of $7.51B.
For the fiscal year 2010, General Mills adjusted their yearly earnings outlook upwardly and is now anticipating net earnings to come in between $4.52 and $4.57 per share. That is up from a previously expected range of $4.40 to $4.45 per share. The revised earnings forecast represents a growth of 14% to 15% over 2009’s earnings of $3.98 per share.
Meanwhile, analysts within the industry were looking for General Mills to post an annual profit of $4.52 per share.
While the overall markets plunged more than 1% on the day, shares of GIS ended the December 17 session by gaining $0.75, or 1.1%, to close at $60.04 per share. Over the course of a year, the stock has traded as low as $46.37 per share, while reaching a high of $69.93 per share, which was established in intraday trading.

Shortly before the sound of the opening bell on October 16, one of the country’s largest companies, General Electric Co. (GE) affirmed that the company’s profits during the 3Q retreated from last year’s totals. The reduction in net earnings was attributed to the company’s financial unit, which pushed earnings lower by more than 44%.

During the recent period, GE posted a net profit of $2.4B, or $0.23 per share, in contrast to the prior year’s earnings of $4.3B, or $0.43 per share. Results were greatly affected by the company’s GE Capital division, which loans money to a wide variety of businesses, including credit card companies and shopping center operators.

In all, GE Capital posted an 87% decline in revenues during the quarter, from $2B in profits the year before to $263M this year. The division’s overall revenues during the period plummeted as well, falling from $17.3B to $12.1B, a decrease in sales of nearly 30%.

Quarterly revenues also came in below last year’s totals, falling from $47.23B to $37.8B, a nearly 20% decline year-over-year. Like nearly every other company operating within the U.S., the economic downturn has taken a substantial toll on profits and sales over the past two years.

Analysts, within the industry, were looking for the conglomerate to record a quarterly profit of $0.20 per share on total revenues of $39.5B.

Jeff Immelt, GE’s Chairman and CEO, commented on the company’s results, “While it remains a tough environment for GE Capital, we are seeing signs of stabilization. Every segment at GE Capital was profitable with the exception of real estate, which is experiencing a tough environment but where we believe the risks are well understood and manageable.”

Looking further inside the company’s reports, sales generated from goods and services amounted to $25.14B, down 14% from last year’s tally of $29.16B. Financial Services saw a 30% decline in revenue, from $17.53B to $12.22B. GE’s Lending and Leasing unit saw a 28% drop in sales, while its Consumer revenues faltered by 26%.

The company’s Real Estate and Energy Financial Services each witnessed a decline in revenue generated, as sales fell 42% and 62% respectively. Additionally, revenue within GE’s Commercial Aviation Services decreased 9% from last year’s totals.

Furthermore, GE’s Energy Infrastructure witnessed sales dip 9% year-over-year to $8.92B, while the Technology Infrastructure unit fell to $10.21B, an 11% decline. The Capital Finance segment plunged 30% to $12.16B. On a profit basis, GE’s Energy unit saw an increase in net earnings of 11% to $1.58B, while the Technology division witnessed an 8% decline in profits to $1.75B.

During the 3Q, GE reported a decrease in overall costs and expenses, falling from $42.1B a year ago to $35.8B, a drop of nearly 15%. In a year-over-year basis, General Electric reported a tax benefit of $484M during the quarter, compared to a payment of $539M related to income taxes.

Through the first nine months of the year, GE generated net profits of $8.01B, or $0.73 per share, versus last year’s nine-month tally of $13.7B, or $1.37 per share, a drop in net earnings of almost 42%. Overall revenues retreated as well, falling from $136.3B to $115.35B, a decrease in revenue of more than 15%.

Immelt later added, ”We are well positioned in the markets and geographies that will grow in the future. We have successfully navigated through the financial crisis and are preparing GE Capital to be a smaller, more focused franchise. GE is well positioned in this reset economy.

With the final trading session of the week concluded, shares of General Electric slipped more than 4% by the close, losing $0.71, to end the day at $16.08 per share. Over the course of year, the company’s stock price has traded within a relatively wide range, reaching a high of $21.04 per share, while slipping as low as $5.87 per share.

Just before the opening bell on October 7, discount retailer Family Dollar Stores Inc. (FDO) confirmed that the company’s profit during the 4Q advanced year-over-year, due in large part to cash-conscious shoppers stretching their monies further. Current results topped analysts’ expectations, despite the weakened economy.

For the quarter, Family Dollar recorded net income of $60.1M, or $0.43 per share, compared to the same quarter a year ago when the company posted a profit of $53.2M, or $0.38 per share, representing an increase in net earnings of nearly 13% year-over-year.

Meanwhile, revenues advanced as well, climbing from $1.77B to $1.81B, an increase in year-over-year sales of 2.3%. Revenues generated from stores opened at least one year advanced 1%, as an increase in store traffic aided in the higher sales figures.

On average, analysts within the industry were looking for Family Dollar to post a quarterly profit of $0.41 per share based on overall sales totals of $1.81B.

Howard Levine, Chairman and CEO at Family Dollar, commented on the company’s results, “The fourth quarter was our most challenging quarter this year. Not only did we anniversary the effect of last year’s stimulus package, but we also re-merchandised the sales floor in approximately half our chain during the quarter. While our ambitious pace did pressure SG&A expenses in the quarter, I believe that these investments support our continued efforts to expand our assortment of key traffic-driving consumables and improve the in-store shopping experience.”

Peeking inside the company’s individual operating segments, FDO’s Consumables unit witnessed the strongest sales throughout the company, posting overall revenues of $1.2B, up nearly 7% from the previous year. Throughout the remainder of the company’s operating units, sales declined in each of the three segments.

Family Dollar’s Home products saw an almost 5% drop in sales year-over-year to $217M, while revenues from Apparel and Accessories plunged 7.7% to $211.2M. Lastly, the company’s Seasonal and Electronics departments saw sales fall marginally over last year’s figures, coming in at $184M, down 0.7% year-over-year.

Gross profit for the quarter came in at 34.5% of total sales, or $625.3M, higher than the previous year’s figure of 32.9% of sales, or $581.3M. Family Dollar attributed the increase in gross profit to lower expenses, reduced inventories and higher mark-ups on sale items. Additionally, operating profits for the period advanced as well, climbing from $82.1M, or 4.6% of sales, to $91.8M, or 5% of overall sales.

For the fiscal year 2009, Family Dollar managed to post net earnings of $291.3M, or $2.07 per share, up almost 25% from the previous year’s annual profit of $233.1M, or $1.66 per share.

Annual sales for the company came in at $7.4B, up from 2008 totals of $6.98B, an increase in yearly revenues of more than 6%. Same store sales increased year-over-year as well, up more than 4%.

Analysts, on average, were looking for annual earnings from Family Dollar to be $2.05 per share based on yearly revenues of $7.41B.

Levine later added, “Despite the challenges resulting from a rapidly changing economic environment, our team has delivered a strong performance this year, driving improvements across most key metrics, including increased customer traffic, operating margin expansion, earnings-per-share growth, greater inventory productivity and higher employee retention.”

Moving forward, Family Dollar offered both 1Q and yearly projections. For the upcoming 1Q, FDO is looking to post a profit between $0.45 and $0.50 per share, with quarterly sales expected to increase between 5% and 7% over last year’s 1Q sales. Same store sales for the period are projected to increase between 3% and 5%.

Analysts, in the meantime, are predicting a quarterly profit of $0.47 per share with revenues coming in at $1.85B, representing a 5.6% increase over last year’s 1Q sales total.

For fiscal 2010, FDO is looking to record annual earnings in the range of $2.15 to $2.35 per share, with yearly revenues growing between 5% and 7% over 2009 totals. Annual same store sales are also expected to increase between 3% and 5% over last year’s results.

Analysts are looking for 2010 profits to be $2.25 per share based on annual revenues of $7.74B.

“While predicting near-term economic conditions remains difficult, we believe that the current consumer focus on saving money will remain strong in 2010. Our strategy of providing value and convenience positions us well to deliver sustainable growth for our shareholders as the economy stabilizes and improves,” Levine commented on the company’s projected forecast.

With the October 7 trading session concluded, shares of Family Dollar retreated marginally by the close, slipping $0.27, or 0.9%, to finish at $28.21 per share. Over the past year, the company’s stock price has reached a high of $35.00 per share and a low of $19.70 per share.

Monsanto Co. (MON), a leading agricultural products producer and the world’s largest seed maker, made it known before the opening bell on October 7 that the company posted a greater loss in the 4Q this year, than in the same period a year ago. Company representative attribute the steeper loss to lower revenues, which were affected by increased competition within its herbicide division.

For the recent period, Monsanto recorded a net loss of $233M, or $0.43 per share, much greater than the $172M, or $0.31 per share loss amassed a year ago. Results showed that the loss widened by more than 35%.

Monsanto accrued several one-time charges throughout the quarter, and if excluded from the results, the company would have posted a net profit for the period of $0.02 per share. These charges were related to restructuring costs and the divestiture of the company’s sunflower operations.

Quarterly sales for the company came in at $1.88B, down more than 8% from the previous year’s total sales figure of $2.05B. Monsanto revealed that the downturn in quarterly revenues was a direct result from a decline in its Roundup brand, as well as other glyphosate-based herbicides due to an increase in pricing competition and a worldwide glyphosate supply and demand disparity.

On average, analysts within the industry were looking for the agriculture products giant to boast a quarterly profit of $0.01 per share based on total revenues for the period of $1.97B. Analysts typically exclude one-time charges from their projections.

Peeking further inside the company’s earnings report, Monsanto’s Agricultural Productivity unit, which consists primarily of lawn-and-garden herbicides and crop protection products, saw its sales decline from $1.11B a year ago to $971B.

Additionally, the company’s Seeds and Genomics division saw sales of its global seeds and related traits business and biotechnology platforms fall more than 4% year-over-year, slipping from $941M to $908M.

For the fiscal year 2009, Monsanto posted net income of $2.11B, or $3.80 per share, just above 2008’s earnings of $2.02B, or $3.62 per share, an increase in net profits of 4.5% year-over-year. Total net sales for the year came in at $11.7B, slightly ahead of the previous year’s total of $11.4B.

The increase in yearly revenues was attributed to higher global corn seed sales and trait revenues, as well as increased soybean seeds and traits within the U.S. Sales were also bolstered from higher cotton seed revenues that gained entry in to India’s and Australia’s crop markets.

Analysts, on average, were anticipating annual earnings from Monsanto of $4.41 per share based on total revenues generated of $11.84B.

Looking ahead, the company reiterated its fiscal year 2010 earnings estimates between $3.10 and $3.30 per share. On a GAAP-basis, the company is expecting yearly earnings to come in between $2.85 and $3.11 per share. In the meantime, analysts are looking for 2010 earning of $3.43 per share.

Inside their operating segments, Monsanto is expecting its seeds and traits unit to account for 85% of their total business by 2012, with a projected gross profit of more than $5B by the end of 2010.

Hugh Grant, Monsanto’s Chairman remarked on the company’s outlook, “What we’re seeing is the emergence of customers who have tried our technologies who are loyal supporters… and then there is another group who have still to try and are still on the edges. Our job…we need to drive adoption with that second group.”

By the conclusion of the October 7 trading session, shares of Monsanto retreated 1.4%, falling $1.04, to end the day at $74.33 per share. During the past year, the company’s stock price has escalated to a high of $96.79 per share, while trading as low as $63.47 per share.

After the sound of the closing bell on September 29, the world’s leading athletic shoe and apparel company, Nike Inc. (NKE) announced results from the company’s 1Q. Profits advanced marginally year-over-year, despite the sudden decrease in overall revenues. Quarterly sales were greatly affected by consumers, both domestically and globally, curtailing their spending habits amidst the current recession.

For the recent period, Nike posted a net profit of $513M, or $1.04 per share, slightly higher than the previous year’s earnings of $510.5M, or $1.03 per share, an increase in profits of 0.5%.

Revenues were a disappointment for the company during the quarter, falling from $5.43B a year ago to $4.8B, a drop in sales of nearly 12% year-over-year. Nike attributed much of the decrease in sales to the lack of spending within the European and Chinese markets, although the domestic markets did not fare much better.

On average, analysts within the industry were looking for Nike to record a quarterly profit of $0.97 per share on total revenues for the period of $4.9B.

Charlie Denson, Nike’s President commented on the company’s earnings report, “People are still going to be relatively cautious going through that holiday period. Nike saw sequential improvement in retail orders through spring.”

Looking further inside the report, revenues within the North American markets slipped from $1.9B to $1.8B, a decrease in sales of more than 5%. Footwear sales within the segment retreated more than 4% to $1.2B, while apparel sales dropped 9% to $379.8M. Additionally, revenues generated from equipment sales fell to $98M, a 5% decline.

Operating earnings before interest and taxes came in at $411M, an 11% increase year-over-year.

Sales generated within the Western European markets took the biggest hit, as revenues plunged from $1.3B to $1.1B, a drop of more than 15%. Results were greatly altered by the current exchange rate, and if the changes in rates were excluded, revenues would have only decreased by 8%.

Operating earnings before interest and taxes from the Western European markets totaled $289M, a drop in earnings of 11% year-over-year.

In the Central and Eastern parts of the European markets, Nike saw a dip in sales of more than 33%, to $286M. Taking away the negative impact of the exchange rate, revenues were down 23%, while earnings before taxes and interest came in at $82M, down nearly 35% from last year’s results.

In China, Nike did not see the same results as they did in the prior year’s 1Q, as sales slipped from $496M to $416M, a decrease in revenues of more than 16%. Once again, Nike was affected by the exchange rate, this time in a positive manner. If the rate change were excluded, Nike would have posted a slightly larger decrease in sales in China of 17%.

Overall, footwear sales slipped 10% to $2.6B, while apparel revenues dipped 16% to $1.3B during the 1Q.

Company officials recently stated that the current volatility of currency had the potential to weigh heavily on results in recent quarters, which could affect 2010 results.

Don Blair, Nike’s CFO affirmed, “We certainly are seeing a more benign environment on currency than we had potentially expected earlier. The dollar has weakened a bit.” Blair went on to add that currency trends are “looking up.”

Although the company does not formally issue earnings and revenues guidance projections, Nike does expect to post lower overall revenues in 2010 than in 2009.

Nike shares, which have traded as high as $67.44 per share and as low as $38.24 per share in the last 52 weeks, closed the September 30 session up more than 7.5%, adding $4.61 to conclude at $64.70 per share.

Before trading began on September 23, auto parts retailer AutoZone Inc. (AZO) released results of the company’s 4Q earnings in which the company’s profits dipped year-over-year. The company incurred increased expenses that affected the bottom-line. Despite the drop in profits, AutoZone saw a huge jump in earnings per share growth over last year’s posting.

AutoZone posted a 4Q profit of $236.1M, or $4.33 per share, a slight decrease from last year’s 4Q earnings of $243.7M, or $3.88 per share. During the period, AZO witnessed a 3.1% decrease in profits, but an 11.6% increase in earnings per share. The company’s per share growth was directly attributed to fewer outstanding shares in their float this year than in last year’s 4Q.

Overall sales during the quarter advanced marginally, increasing from $2.21B a year ago to $2.23B, a 1% jump. Excluding an extra week in sales from last year’s quarter, revenues would have been up 7.2% from the prior year’s tally of $2.08B. Meanwhile, domestic sales from stores opened at least one year increased 5.4% year-over-year.

Within the industry, analysts were looking for AutoZone to book a quarterly profit of $4.45 per share, with overall revenues coming in at $2.23B.

“We are very pleased with our comparable performance for both the fourth quarter and fiscal year 2009. In fiscal 2009, we again expanded our parts assortment, significantly increased the number of markets supported by our enhanced Hub store model, expanded our Commercial sales force, increased formalized training, and leveraged new technologies all primarily focused on customer service improvements.” remarked Bill Rhodes, AutoZone’s Chairman, President and CEO.

Rhodes also stated, “As our sales performance improved, we elected to accelerate the expansion of several of these initiatives to better position us to continue to grow our sales for the future. In fiscal 2009, we experienced market share gains in each of our four businesses. I’d like to thank all our AutoZoners across North America for their dedication and passionate commitment to our customers and our organization. Finally, I’d like to highlight that our return on invested capital increased again ending the year at 24.4%. This performance highlights our commitment to a disciplined approach of increasing operating earnings and utilizing our capital effectively,”

Peeking further inside the company’s report, AutoZone saw their gross profit, as a percentage of gross sales, remain unchanged from last year’s 50.3%. The company confirmed that gross margin would have slipped if it had not been for lower fuel costs and continued leverage in distribution costs, resulting from improved expense efficiencies.

During the period, AutoZone’s operating profits increased marginally year-over-year, advancing from $416.84M a year ago to $417.60M, nearly a 2% gain. Adversely, operating expenses for the quarter grew, increasing from last year’s total costs of $694.97M to $705.46M, a jump in costs of 1.5%.

Additionally, interest expenses for the 4Q jumped from $34.76M to $47.76M, an increase of more than 37%.

For fiscal 2009, AutoZone’s net earnings for the year advanced 2.4% from last year’s tally, climbing to $657.05M from $641.61M. With profits increasing, earnings per share advanced as well, from $10.04 per share a year ago to $11.73 per share. Once again, if excluding the extra week of operation in last year’s results, AutoZone would have posted a 5% increase in net income and a 19.7% increase in earnings per share.

Yearly revenues grew as well, increasing from totals in 2008 of $6.52B to $6.82B in 2009, an increase of 4.6% year-over-year. For the year, same store sales posted a gain also, increasing by 4.4%.

Analysts, on average, were looking for yearly earnings results from the auto parts retailer to be $11.73 per share on overall revenues of $6.81B.

Investors were not impressed with AutoZone’s quarterly performance report. By the sound of the closing bell on September 23, shares of AZO were being pummeled, losing nearly 6%, or $9.02, to conclude the day at $143.90 per share.

During the past year, the company’s stock price has traded within a wide range, reaching highs of $169.99 per share, while dipping as low as $84.66 per share.

Before the opening bell on September 22, packaged food company ConAgra Foods Inc. (CAG) made it known that the company’s profits during the 1Q plunged more than 60% year-over-year. The large disparity is mainly due to last year’s results being bolstered by the sale of the company’s trading and merchandising unit.

For the recent period, the Omaha, Nebraska based company reported net income for the quarter of $165.9M, or $0.37 per share, in sharp contrast to last year’s profit of $442.4M, or $0.94 per share, a decrease in net earnings of nearly 62% year-over-year. The unit sale last year contributed $0.71 per share to the company’s earnings results.

Quarterly revenues declined marginally from last year’s performance, slipping from $3.06B to $2.96B, a decrease in sales of just over 3%.

On average, analysts within the industry were looking for the maker of Healthy Choice, Marie Callender and Orville Redenbacher consumer lines to post a profit of $0.34 per share on quarterly revenues of $3.09B.

Gary Rodkin, CEO at ConAgra remarked on the company’s earnings report, “We are off to a strong start in fiscal 2010. The Consumer Foods segment posted significantly improved operating profits, along with good sales trends across the consumer branded portfolio, and we expect the balance of the year to show strong profits for this segment due to manageable inflation, good cost savings, sales growth, and favorable mix.”

Rodkin later added, “Our Commercial Foods segment is poised for a solid profit performance in line with our expectations, and we are confident we will deliver our raised EPS guidance for this fiscal year.”

Looking deeper into the numbers, ConAgra, which operated in two segments, Consumer Foods and Commercial Foods, witnessed the consumer segment post a slight increase in sales year-over-year, from $1.85B to $1.86B. Overall sales from the unit represented 63% of the company’s overall revenues generated.

ConAgra attributes the less-than-expected increase in consumer sales to a 2% negative impact from the sale of the company’s Slim Jim products, in which there was a plant incident that halted production for a period of time. The segment’s sales results were also affected by an unfavorable exchange rate, which cut into overall sales totals by 1%.

Nevertheless, the consumer segment was able to increase their operating profit from $186.3M to $249.9M, an increase in revenues of more than 34%.

Within the company’s commercial food division, ConAgra viewed sales from the unit drop nearly 9% from last year’s totals, falling from $1.21B to $1.1B. Revenues generated from the segment represented 37% of the company’s overall sales totals. Operating profits from the unit advanced 5.2%, from $133.9M to $140.8M/

Overall operating profits from the combined units surged 22% year-over-year, from $320.2M to $390.7M.

For the remainder of the year, ConAgra raised their outlook and is now expecting annual profits for fiscal 2010 of $1.70 per share. The company previously offered a projection of yearly earnings between $1.63 and $1.66 per share. On average, analysts are looking for ConAgra to post annual earnings in 2010 of $1.66 per share.

“We expect the balance of the year to show strong profits for (the consumer foods) segment due to manageable inflation, good cost savings, sales growth and favorable mix,” CEO Gary Rodkin commented.

Despite an upwardly adjusted outlook for 2010, investors were not influenced by the earnings per share increase, as shares of CAG closed the September 22 session down 1.5%, or $0.33, to conclude at $22.00 per share.

Over the course of a year, the company’s stock has traded within a relatively narrow range, reaching a high of $22.73, reached the day before the company’s earnings announcement, and a low of $13.52 per share, achieved in early December of last year.

Shortly before the opening bell on October 7, membership warehouse operator Costco Wholesale Corp. (COST), announced that the company’s profits during the 4Q slipped year-over-year, partly because of a stronger Dollar and an increase in employee benefit costs. Nevertheless, Costco managed to post earnings ahead of market expectations.

Operating more than 560 warehouses throughout the world, Costco recorded a quarterly profit of $374M, or $0.85 per share, albeit 6% lower than the previous year’s earnings of $398M, or $0.90 per share.

Revenues during the period declined as well, falling from $23.1B to $22.38B, a decrease in overall sales of just over 3%. Same store sales, a leading indictor of economic activity, showed an overall decline in revenues of 5%, with sales slipping 6% in U.S. stores and 3% throughout the international markets.

Excluding lower gas prices and a stronger Dollar, same store sales would have posted a 1% gain.

On average, analysts within the industry were looking for Costco to post a quarterly profit of $0.77 per share based on $22.34B in overall sales.

Costco’s results could have been worse if it had not been for a strong September. During the month, the company managed to increase net sales by 3%, from $6.85B to $6.67B. Same store sales, excluding the sale of gasoline, jumped 4% overall, with a 3% increase in the U.S. and a 9% surge in international sales.

For fiscal 2009, Costco reported a net profit of $1.09B, or $2.47 per share, in contrast to fiscal 2008 wherein the company posted net income of $1.28B, or $2.89 per share, a decline in annual earnings of nearly 15%.

Revenues throughout 2009 totaled $71.42B, down marginally from 2008’s tally of $72.48B. Included in the annual summary, net sales for the company totaled $69.89B, down from $70.98B in 2008, a 1.5% drop year-over-year. From 2008 to 2009, membership fees increased, growing from $1.51B to $1.53B.

Analysts, on average, were looking for the nation’s fifth largest general retailer to post annual profits of $2.47 per share on total revenues of $71.44B.

By the sound of the closing bell, Costco shares advanced nearly 2%, gaining $1.03 to conclude the session at $58.96 per share. During the course of a year, the company’s stock has traded within a relatively wide range, reaching highs of $61.52 per share, while dipping as low as $38.17 per share.

Offering an assortment of brand name food and general merchandise items within a wide range of product categories, BJ’s Wholesale Club Inc. (BJ) announced prior to the opening bell on November 18 that the company’s net profits during the 3Q faltered, despite an increase in overall sales. Net earnings were affected by the company’s one-time charge related to a settlement in a labor suit.

For the recent quarter, BJ’s posted a net profit of $17.7M, or $0.32 per share, down from last year’s 3Q earnings of $28.2M, or $0.48 per share, a decrease in net income of more than 37% year-over-year. The wholesaler’s bottom-line was affected by an $11.7M, or $0.13 per share, charge related to a labor claim, as well as higher selling, general and administrative expenses and increased expenses to open new clubs.

Excluding the company’s one-time charge, BJ’s would have posted a quarterly profit of $24.6M, or $0.45 per share.

Revenues generated during the period advanced marginally, climbing from $2.46B to $2.51B, a 2% increase over last year’s results. Sales were bolstered by bargain seeking consumers that remain cash-strapped during the recession. BJ’s saw sales from core basics like cereal, cigarettes, and the deli and paper products as their biggest increases. The biggest areas of decline for quarterly sales came from BJ’s electronics, tires and video games categories.

On average, analysts within the industry were looking for the wholesale club operator to post a quarterly profit of $0.45 per share on total revenues of $2.48B.

Further inside the report, BJ’s witnessed revenues generated from membership fees increase by more than 3%, advancing from $44.51M to $45.95M. The company’s operating income for the quarter slipped year-over-year, falling from $48.01M to $30.43M, a decrease of almost 37%.

Expenses were a key detriment to the company’s overall income, as selling, general and administrative expenses increased from $207.47M to $231.61M, a jump in costs of nearly 12%. With the company looking to continuously expand, pre-opening expenses nearly doubled during the quarter, soaring from $1.02M a year ago to $1.95M.

Through the first nine months of the year, BJ’s managed to post a profit of $77.07M, or $1.41 per share. Compared to the same period a year ago, in which the company posted net earnings of $81.92M, or $1.38 per share, BJ’s saw a decrease in net income of nearly 6%. Meanwhile, income from continuing operations for the nine months came in at $77.37M, or $1.42 per share, compared to $83.01M, or $1.40 per share, a decline of almost 7%.

Revenues through the first three quarters was $7.39B, down marginally from the same period a year ago of $7.47B.

Looking ahead to the company’s upcoming 4Q, BJ’s is looking to post a quarterly profit between $0.96 and $1.00 per share, with net sales increasing between 10.5% and 12.5% above last year’s 4Q revenue totals, reflecting total sales in a range of $2.83B to $2.88B. The company is projecting same store sales during the next quarter to increase between 5% and 7%.

For the full year, BJ’s projects earnings to range between $2.36 and $2.40 per share, down from a previously stated range of $2.46 to $2.56 per share. Overall revenues for the year are expected to grow between 1.5% to 2.5%, equating to total sales between $9.95B and $10.05B.

Analysts are expecting BJ’s to post a 4Q profit of $0.97 per share based on overall revenues of $2.76B.

With the November 18 trading session concluded, shares of BJ’s Wholesale Club slipped 2% by the close, falling $0.71 to end the day at $35.63 per share. During the past year, the company’s stock price has traded within a relatively broad range, reaching a high of $40.77 per share, while dipping as low as $27.26 per share.