Exxon Mobil Tops Earnings Estimates, Boosts Dividend

Exxon Mobil reported quarterly earnings and revenue that topped market expectations on Thursday, helping the company to distribute $ 7.6 billion worth of dividends and buybacks to shareholders.

The world’s most valuable company, as measured by market capitalization, saw oil production fall by 3.5 percent during the first quarter, amid volatile global oil markets. However, Exxon ramped up capital on exploration during the quarter, to $ 11.8 billion — up 33 percent from the comparable year-ago period.

After the earnings announcement, the company’s shares climbed slightly in pre-market trading. (Click here for the latest quotes: XOM)

The company posted first-quarter earnings excluding items of $ 2.12 per share, up from earnings of $ 2.00 a share in the year-earlier period.

Analysts expected Exxon Mobil to report earnings of $ 2.05 a share on revenue of $ 11.98 billion, according to estimates from Thomson Reuters.

Exxon’s chemical profits rose 62 percent during the quarter. Meanwhile, U.S. oil production accounted for the majority of the company’s product sales, reflecting the recent energy boom in the world’s largest economy.

More From CNBC

  • UPS Earnings Beat on Growth in Exports, Ground
  • 3M Earnings Miss Wall Street Estimates; Shares Fall
  • What Dreamliner Trouble? Boeing Beats…Big Time

Also Read


Earnings News and Information on Yahoo! Finance

HERBALIFE BEATS EARNINGS AND REVENUE ESTIMATES, BOOSTS FORECAST

herbalife traders

REUTERS/Brendan McDermid

Herbalife’s Q1 2013 earnings are out.

Adjusted earnings per share came in at $ 1.27, better than the $ 1.06 expected by analysts.

Revenues came in at $ 1.12 billion, in line with company guidance but slightly above analysts’ estimates for $ 1.11 billion in sales.

The company also raised full-year 2013 earnings guidance to a range of $ 4.60-4.80 per share. Analysts were expecting $ 4.66.

Shares are up slightly in after-hours trading.

Click here to refresh for the latest >

Below is the text from the release:

LOS ANGELES–(BUSINESS WIRE)–

Herbalife Ltd. (HLF) today reported first quarter net sales of $ 1.1 billion, reflecting an increase of 17 percent compared to the same time period in 2012 on volume point growth of 13 percent. Adjusted1 net income for the quarter of $ 137.4 million, or $ 1.27 per diluted share, compares to 2012 first quarter net income of $ 108.2 million and EPS of $ 0.88, respectively. On a reported basis, first quarter 2013 EPS of $ 1.10 increased 25 percent compared to the $ 0.88 reported in the comparable quarter last year.

“We continue to deliver record results in sales and profitability as our independent distributors successfully execute numerous growth strategies that enable deeper market penetration, developing customers using our weight management and targeted nutrition products every day,” said Michael O. Johnson, Herbalife’s chairman and CEO. “Obesity and poor nutrition are global public health problems. Our distributors are proud to be part of the solution.”

For the quarter ended March 31, 2013 the company generated cash flow from operations of $ 137.6 million, an increase of 14 percent compared to 2012; paid dividends of $ 30.9 million; invested $ 24.9 million in capital expenditures; and repurchased $ 162.4 million in common shares outstanding under our share repurchase program.

Herbalife is arguably one of the most embattled stocks in America as multiple hedge fund titans square off over its future.

On one side is Bill Ackman, who released a massive, 342-slide presentation in December arguing that the company was a Ponzi scheme and that shares would go to $ 0. Ackman describes his hedge fund’s short position in Herbalife as “enormous.”

On the other side are activist investor Carl Icahn and hedge fund manager Dan Loeb, who both decided to invest in the stock after Ackman went public with his short call.

More From Business Insider

  • MAP: The US Is Robust, China Is Turning Up, Europe Is Showing Green Shoots
  • Amazon Beats On Earnings, Revenue Comes In Light
  • Yum! Brands Beats On Earnings But Misses On Revenue


Earnings News and Information on Yahoo! Finance

Chevron profit pinched by cheaper oil, but beats estimates

By Braden Reddall

(Reuters) – Lower oil prices bit into Chevron Corp’s (CVX.N) quarterly profit as did refinery downtime and higher operating costs in its home market, but the oil company’s shares rose as the earnings topped expectations.

Analysts cited foreign currency gains that gave the company a particular boost in the quarter.

Chevron also announced this week an 11 percent increase in its dividend, making use of some of the $ 19 billion in cash accumulated to shoulder a near-$ 37 billion annual capital spending program, which has been inflated by natural gas projects in Australia.

“Chevron has significant financial flexibility to increase shareholders distribution, despite higher spending levels,” Oppenhemier analyst Fadel Gheit said in a note.

First-quarter net income fell 4.5 percent to $ 6.18 billion, or $ 3.18 per share, from $ 6.47 billion, or $ 3.27 per share, a year earlier. Analysts, on average, expected $ 3.08 per share, according to Thomson Reuters I/B/E/S.

The company produced 2.65 million barrels of oil equivalent per day, up from 2.63 million bpd a year earlier, though down from a particularly strong 2.67 million in the fourth quarter.

Achieving increased production from oil wells has been a struggle for Chevron and larger rival Exxon Mobil Corp (XOM.N), which reported a drop in first-quarter production on Thursday.

Chevron is targeting 25 percent growth in output by 2017, and its much-delayed liquefied natural gas plant in Angola is a key new project this year. Chief Financial Officer Pat Yarrington said it would start up this quarter, and reach full capacity by year-end – contributing about 20,000 bpd for 2013.

“Obviously, that would just be a partial year contribution for us,” she told analysts on a call. “It is worth about 60,000 barrels a day net to us when fully operational.”

At the Frade field off the coast of Brazil, where Chevron had faced sanctions due to an oil leak, the company has approval to restart production at four wells. Ramp-up would be slow, however, and it would contribute only about 5,000 bpd this year, Yarrington said.

In the first quarter, Chevron’s U.S. E&P earnings fell by about a quarter to $ 1.13 billion, with operating expenses higher and the average sale price for U.S. liquids down to $ 94 per barrel from $ 102 a year before.

Analysts at Simmons & Co said most of the outperformance for Chevron in the quarter was from its international operations.

U.S. downstream earnings, from refining and marketing, declined more than 70 percent, with refinery crude input falling by 350,000 barrels per day to 576,000 bpd due to planned work at a few of its refineries.

Chevron is trying to get its plant in Richmond, California, back to normal after a fire last August damaged its crude unit. The company said it reintroduced feedstock to the crude unit this week, and would bring it to full capacity in the coming days.

Chevron shares were up 1 percent at $ 119.51 in midday trading on Friday. The stock has gained about 10 percent so far this year, compared with a 2 percent rise for Exxon.

(Reporting by Braden Reddall in San Francisco, with additional reporting by Anna Driver in Houston; Editing by Gerald E. McCormick nand Steve Orlofsky)


Earnings News and Information on Yahoo! Finance

Netflix Q1 Earnings Crush Estimates As Subscribers Jump

Netflix (NFLX) investors gave the streaming video service rave reviews for its first-quarter results late Monday, driving shares up 24% in after-hours trading.

The Los Gatos, Calif.-based company earned 31 cents a share excluding items, vs. analyst expectations for 19 cents. In Q1 2012, Netflix lost 8 cents a share.

Revenue rose 18% to $ 1.024 billion, edging past the Street’s forecast for $ 1.017 billion.

Netflix added over 3 million streaming subscribers in Q1, bringing its total to more than 36 million worldwide. U.S. streaming customers rose by 2.03 million to 27.91 million paid members. In international markets, Netflix added 1.02 million subscribers to 6.33 million.

Netflix shares rose 24% in late trading to 216.46, which would be their best level since late 2011. During the regular session, the stock rose nearly 7%.

The U.S. streaming business was helped by the launch of Netflix’s first original series, “House of Cards.” It premiered all 13 episodes of the political drama’s first season on Feb. 1.

“The global viewing and high level of engagement with the show increased our confidence in our ability to pick shows Netflix members will embrace and to pick partners skilled at delivering a great series,” CEO Reed Hastings and CFO David Wells said in a letter to investors. “The high level of viewer satisfaction implies we are able to target the right audience without the benefit of existing broadcast or cable viewing data and the strong viewing across all our markets gives us faith in our ability to create global content brands in a cost-effective, efficient way.

Netflix launched its second original show, horror thriller “Hemlock Grove,” on April 19 and is set to debut the fourth season of cult comedy “Arrested Development” on May 26.

Netflix experienced a negative free cash flow of $ 42 million, vs. a positive $ 3 million in net income a year earlier. Netflix cited payments for original shows and other content.

For Q2, Netflix expects to earn 36 cents a share, based on the midpoint of guidance. Wall Street had targeted 30 cents.

Netflix expects to end Q2 with 28.55 million paid domestic streaming customers and 6.95 million paid international users.

It lost 240,000 customers for its legacy, U.S.-only DVD-by-mail business in Q1. That business has fallen 21% to 7.98 million members over the past year.

Streaming Margins Soar

“The biggest upside surprise was on the contribution margin for the streaming business,” said Morningstar analyst Michael Corty. “They continue to grow the margin in that streaming business. Netflix, at least currently, is doing a great job of having just enough content to retain and add new subscribers.

Netflix’s profit margin was 20.6% for its domestic streaming business in Q1, up from 14.3% a year earlier. Its international streaming business posted a loss, as Netflix continues to invest in content and market the service.

Netflix shares are overvalued, Corty says. “There’s a lot of optimism built into that price. The stock’s had a great run, no doubt about it.

Netflix benefits from having the most extensive streaming video collection vs. rivals like Amazon.com (AMZN), Hulu, Time Warner’s (TWX) HBO Go and others, Corty says. Cable companies with their TV Everywhere initiatives will eventually pose a threat to Netflix, but they are still getting their services together, he says.


Earnings News and Information on Yahoo! Finance

Bank of America profit misses estimates as revenue falls

By Rick Rothacker and Tanya Agrawal

(Reuters) – Bank of America Corp reported a lower-than-expected first-quarter profit and its revenue fell, sending the No. 2 U.S. bank’s shares down 3 percent before the bell on Wednesday.

Net income quadrupled to $ 2.62 billion, or 20 cents per share, from $ 653 million, or 3 cents per share a year earlier as expenses dropped and the bank set aside less money to cover bad loans.

But total adjusted revenue fell 8.4 percent to $ 23.85 billion, partly due to lower revenue from trading in fixed income securities and mortgages.

Revenue from the fixed income, currency and commodities markets fell $ 829 million to $ 3.3 billion.

Analysts on average had expected BofA to earn 22 cents per share, according to Thomson Reuters I/B/E/S.

BofA shares dropped 3 percent before the bell to $ 11.90.

Earnings in the year-earlier period were affected by a host of one-time items including a $ 4.8 billion charge related to the value of its debt.

Net income in the Global Banking division fell to $ 1.34 billion from $ 1.57 billion, while net income in the Global Markets arm slipped to $ 1.4 billion, excluding items, from $ 1.7 billion.

Chief Executive Brian Moynihan has made progress in building capital and settling mortgage-related lawsuits since taking over in January 2010. The bank said on Wednesday it had settled a mortgage-backed securities class action lawsuit related to its Countrywide unit for $ 500 million.

But Moynihan is under pressure to show that the bank can produce higher earnings at a time of low interest rates, stricter regulations and volatile economic conditions.

BofA, the last of the big four U.S. banks to report results, has pledged to cut $ 8 billion in expenses by mid-2015 and has said it could reduce expenses in its division that handles delinquent mortgages by $ 1 billion by the end of 2013.

The bank said on Wednesday it expects to save about $ 1.5 billion in costs per quarter, by the fourth quarter of 2013, representing 75 percent of the quarterly target. Total expenses fell 5.2 percent to $ 18.15 billion in the first quarter.

Like other big banks this quarter, Bank of America results were also boosted by reduced credit losses as borrowers did a better job of making their payments. The bank’s provision for loan losses fell 29.2 percent to $ 1.71 billion.

MORTGAGE LENDING JUMPS

Bank of America said it extended more mortgage loans in the quarter, even as the home refinancing boom cooled. The bank issued $ 25 billion of home loans, up 56 percent from the year earlier and 11 percent from the fourth quarter.

The bank has missed out on much of the home lending boom because it scaled back its mortgage business after taking huge losses on its disastrous purchase of subprime lender Countrywide Financial in 2008. In recent quarters, it has been adding loan officers in an effort to win back market share.

BofA’s litigation expenses for the quarter fell to $ 881 million from $ 916 million in the fourth quarter of 2012 and $ 793 million a year earlier.

BofA won permission from the Federal Reserve in March to buy back $ 5 billion in common stock after passing the annual stress test of big banks.

(Reporting By Rick Rothacker in Charlotte, North Carolina and Tanya Agrawal in Bangalore; Editing by Supriya Kurane)


Earnings News and Information on Yahoo! Finance