On the one-year anniversary of the major indices hitting a 12-year low, the markets remained subdued, as a lack of economic news and corporate earnings to start the week have kept the markets in check.
In corporate news, one of the largest grocery retailers in the U.S., Kroger Co. (KR) made it known prior to the opening bell this morning that the company’s earnings slipped during the 4Q, despite an increase in overall sales totals.
For the quarter, Kroger posted a net profit of $255.4M, or $0.39 per share, compared to a profit of $349.2M, or $0.53 per share, from a year ago, a decrease in net income of nearly 27% year-over-year. Quarterly sales advanced for the grocer, climbing from $17.31B to $18.56B, a jump in revenues of more than 7%.
On average, analysts within the industry were looking for the Ohio-based grocery retailer to post a quarterly profit of $0.34 per share based on total revenues of $17.73B.
During the period, Kroger reported charges related to advertising, warehousing and transportation of $14.38B, up 10% from last year’s tally of $13.09B. However, the company did benefit from a lower LIFO charges, declining from $40.9M a year ago to $1.3M.
David B. Dillon, Kroger’s Chairman and CEO, remarked on the company’s recent performance report, “We are strengthening Kroger’s overall competitive position by increasing the number of households that are loyal to Kroger and earning a greater share of their business.”
For the year, Kroger managed to post an annual profit of $70M, or $0.11 per share, a far cry from last year’s yearly total of $1.25B in earnings, or $1.89 per share. This year’s tally was greatly affected by a $1.05B charge related to write-downs concerning the company’s California-based Ralph’s grocery stores. Excluding the write-off, Kroger would have posted a yearly profit of $1.12B, or $1.71 per share.
Looking ahead to 2010, the company is anticipating full-year earnings to come in between $1.60 and $1.80 per share. Analysts, on the other hand, are projecting Kroger to record a yearly profit between $1.70 and $2.02 per share, with a general consensus of $1.79 per share.
By the sound of the closing bell on March 9, shares of Kroger were trading in the red, giving up $0.55, or 2.4%, to end the session at $22.35 per share. Throughout the past year, shares of KR have traded within a narrow range, reaching a high of $24.80 per share and a low of $19.39 per share.
Operating as one of the leading full-line sporting goods retailer in the U.S., Dick’s Sporting Goods Inc. (DKS) revealed early Tuesday morning that the company recorded a solid profit during the most recent quarter, helped by higher sales.
Reporting for the 4Q, Dick’s booked a net profit of $67.4M, or $0.56 per share, in sharp contrast to last year’s net loss of $105.6M, or $0.94 per share. Last year’s loss was attributed to Dick’s incurring hefty acquisition and integration costs. Sales advanced year-over-year as well, climbing from $1.21B a year ago to $1.34B, an increase in revenues of almost 11%. Additionally, sales recorded at stores open at least one year saw an increase in sales of 2.5% over last year’s totals.
Analysts within the industry were looking for the sporting goods retailer to post a quarterly profit of $0.55 per share based on $1.3B in total sales.
Chairman and CEO, Edward Stack, remarked, “Despite the difficult economic environment of 2009, our associates successfully generated more sales, effectively managed inventory levels, and continued to exercise financial discipline. As a result, we generated higher profits, leveraged expenses, further strengthened our balance sheet and believe we gained market share in 2009.”
For fiscal 2009, Dick’s recorded net income of $135.36M, or $1.15 per share, versus a net loss of $39.87M, or $0.36 per share in 2008. Yearly revenues increased as well, advancing from $4.13B a year ago to $4.41B, a jump in sales of nearly 7%. Analysts were predicting a yearly profit of $1.18 per share on $4.37B from Dick’s.
As for the upcoming year, Dick’s is looking to post a 1Q profit between $0.12 and $0.13 per share, while analysts are predicting a profit of $0.13 per share. For the year, Dick’s is looking to record a profit between $1.32 and $1.35 per share, with analysts expecting $1.32 per share.
Stack later added.”Looking to 2010, we expect to generate double-digit earnings growth and positive operating cash flow while further investing in the long-term growth of the company.”
With the day’s trading complete, shares of DKS were down nearly 1%, losing $0.17 to end the session at $25.45 per share. Throughout the past year, the stock has managed to trade as high as $26.28 per share, while dipping to an annual low of $10.26 per share.
Reporting prior to the start of trading on March 9 was Superior Well Services, Inc. (SWSI), a growing oilfield services company operating in many of the major oil and natural gas producing regions of the U.S. The company’s announcement early Tuesday showed a quarterly loss driven by increased costs and lack-luster sales totals.
For the 4Q, Superior Well Services posted a net loss of $16M, or $0.58 per share, compared to a net profit of $11.8M, or $0.48 per share from a year ago. The lack of revenues played a big part in the company’s dismal performance, as revenues fell more than 40%, from $161,7M last year to $95.9M.
Analysts, on average, were looking for the oil field service company to post a quarterly loss of $0.38 per share based on $94M in overall revenues.
For fiscal 2009, Superior recorded a net loss of $82.6M, or $3.39 per share, well below the previous year’s net profit of $38.7M, or $1.64 per share. Revenues for the year receded as well, falling more than 23% year-over-year to $399.5M. Analysts had predicted a net annual loss for Superior of $2.33 per share based on $398.1M in total sales.
As the markets conclude trading, shares of SWSI were down more than 4% on the day, giving up $0.85 to end the session at $17.11 per share. Within the past year, the stock has fallen to an annual low of $4.11 per share, while reaching a 52-week high of $18.75 per share.
Energy prices reversed their upward trend on Tuesday, curtailing a month-long run in oil prices as a stronger Dollar pushed prices lower. By the close of trading, the price for a barrel of light, sweet crude for April delivery slipped $0.38 to settle at $81.49. The current contract added $0.37 to settle at $81.87 a barrel on Monday.
In additional NYMEX trading, heating oil slipped $0.0157 at $2.0898 a gallon, while gasoline fell $0.0289 to $2.2603 a gallon. April natural gas futures dropped $0.011 to $4.516 per 1,000 cubic feet.
Despite a strengthening Dollar, Treasury prices were higher Tuesday. With the day’s trading complete, the benchmark 10-year note was higher, adding 3/32 to 99 13/32, with a yield of 3.69%, down 0.01% from the day before.
The longer maturing 30-year note was up on the day as well, gaining 6/32 to 99 5/32, as its yield declined to 4.67% from the previous session’s 4.68%. Lastly, the shorter maturing 2-year note was marginally higher, adding 1/32 to 99 31/32, while its yield decreased by 0.02% to 0.87%.
The Forex markets saw the Dollar trade higher versus the majority of the world’s currencies, as the 16-nation Euro declined against the greenback, buying $1.3601, lower than the previous session’s price of $1.3633. The British pound also decreased versus the Dollar, as the Sterling slipped from $1.5072 to $1.4998.
However, the Dollar did decrease in value against the Japanese yen, buying 89.95, down from Monday’s value of 90.25. In additional trading, the Dollar climbed to 1.0751 Swiss francs from 1.0736 but slipped to 1.0261 Canadian dollars from 1.0277 Canadian dollars.
By the sound of the closing bell on March 9, the Dow Jones Industrial average added 11.86 points, or 0.1%, to end the day at 10,564.38, while the broader market indicators concluded the session in the green as well.
The S&P 500 index was higher, gaining 1.95 point, or 0.2%, to finish at 1,140.44, while the tech-heavy NASDAQ composite index advanced as well, adding 8.47 points, or 0.4%, to 2,340.68.