Lennox International posts 1Q net income of $8M

DALLAS (AP) — Lennox International Inc. said Monday that it earned $ 8 million in the first quarter, reversing a loss in the same quarter the year before, helped by lower losses related to the sale of its service business.

The Dallas-based maker of heating, ventilation, air conditioning and refrigeration products said its net income amounted to 16 cents per share and compared with a loss of $ 6.1 million, or 12 cents per share, last year.

Excluding losses related to its plans to sell the business, the company said it posted an adjusted profit from continuing operations of 33 cents per share compared with an adjusted 19 cents per share in the first quarter of 2012.

Revenue rose 9 percent to $ 668.4 million from $ 614.4 million.

The results easily beat Wall Street predictions. Analysts, on average, expected a profit of 27 cents per share on $ 633.9 million in revenue, according to FactSet.

Lennox said residential revenue increased 15 percent to $ 315 million, helped by an increase in new home construction and the company’s efforts to boost replacement sales. Commercial revenue increased 4 percent to $ 163 million.

Lennox said that it’s off to a good start for the year, but cautioned that the largest seasonal periods of the year are still to come and that economic uncertainty remains.

The company boosted the low end of its previous full-year earnings prediction by 10 cents, saying that it now expects to post an adjusted profit of $ 3.25 to $ 3.55 per share.

The company also narrowed its full-year revenue guidance to a range of 3 to 6 percent from its previous prediction of 2 to 6 percent. Based on the company’s 2012 revenue of $ 2.95 billion, the narrowed guidance projects 2013 revenue of between $ 3.04 billion and $ 3.13 billion. Analysts expect an adjusted profit of $ 3.39 per share and sales of $ 3.09 billion.

Lennox shares rose 31 cents to $ 62.14 in morning trading.


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News Summary: Capital One posts lower 1Q profit

THE BOTTOM LINE: Capital One Financial’s first-quarter net income fell 25 percent versus the prior-year quarter, when the lender booked a hefty gain related to the addition of online bank ING Direct.

THE NUMBERS: Net income fell to $ 1.05 billion, or $ 1.79 per share, for the three months ended in March. That compares with net income of $ 1.4 billion, or $ 2.72 per share, a year earlier. Revenue grew 13 percent to $ 5.55 billion.

MIXED RESULTS: Analysts polled by FactSet expected earnings of $ 1.61 per share. But Capital One’s revenue fell short of analysts’ prediction of $ 5.57 billion.


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Cypress Semiconductor posts bigger 1Q loss

SAN JOSE, Calif. (AP) — Chip maker Cypress Semiconductor Corp. reported a wider first-quarter loss on Thursday as revenue fell. The results beat Wall Street’s expectations.

The company posted a net loss of or $ 28.2 million, or 19 cents per share, in the January-March period. That compares with a loss of $ 19.5 million, or 13 cents per share, in the same period a year earlier. Adjusted earnings were 3 cents per share in the latest quarter, down from 12 cents per share a year earlier.

Revenue fell 7 percent to $ 172.7 million.

Analysts, on average, expected adjusted earnings of a penny per share on revenue of $ 167.8 million, according to FactSet.

The company expects revenue of $ 355 million to $ 375 million in the second quarter.

Shares of the San Jose, Calif.-based Cypress fell 81 cents, or 7.4 percent, to $ 10.15 in midday trading. The stock has traded in the 52-week range of $ 8.70 and $ 17.41.


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Yahoo posts flat first-quarter revenue on declining display ad sales

By Alexei Oreskovic

SAN FRANCISCO (Reuters) – Yahoo Inc’s first quarter revenue fell short of Wall Street targets, as the Internet company continued to feel the effects of declining traffic to its Web properties and of falling display advertising sales, sending its shares down more than 4 percent.

Yahoo Chief Executive Marissa Mayer said the company’s plan to reverse the trend and restore the one-time Web powerhouse to its former glory was on track and would start showing results in the second half of the year. But she repeated previous comments that revitalizing Yahoo will be a long-term project measured in years.

“We are committed to growing our core business. First in line with the industry and ultimately surpassing it,” said Mayer, a former Google executive who in July became Yahoo’s third CEO in a one-year period.

Mayer said the company was making headway luring smartphone users to its services, with more than 300 million monthly mobile users in the first quarter, up from 200 million in the fourth quarter.

And she said that hiring efforts and acquisitions have positioned Yahoo to ramp up its product development and product releases in the coming months.

Yahoo’s stock has surged more than 50 percent since Mayer took the helm in July, though analysts say much of the rise is due to stock buybacks and the value of Yahoo’s Asian assets.

Evidence of a significant turnaround in Yahoo’s business was hard to spot in the company’s first-quarter earnings report, however.

Display ad revenue, which accounts for roughly 40 percent of Yahoo’s revenue, declined 11 percent on an adjusted basis in the first three months of the year.

“This is a core business that needs significant work,” said Macquarie Research analyst Ben Schachter. “The core takeaway here is more time is going to be needed.”

Yahoo shares fell to $ 22.73 in after-hours trading on Tuesday.

Yahoo also projected net revenue for the second quarter of $ 1.06 billion to $ 1.09 billion in a presentation posted on its website after its earnings release on Tuesday. That was below the average analyst expectation of $ 1.11 billion in second quarter net revenue, according to Thomson Reuters I/B/E/S.

MICROSOFT SEARCH PARTNERSHIP CONTINUES

Yahoo and Microsoft entered into a 10-year search partnership in 2010, hoping their combined efforts could mount a more competitive challenge to Google Inc, the world’s No.1 search engine.

Yahoo Finance Chief Ken Goldman said on Tuesday that a revenue guarantee that Microsoft Corp provided Yahoo under the terms of the companies’ search partnership ended in March.

The partnership, which still exists, has not lived up to expectation. Yahoo’s revenue per search remains below where it was before the deal with Microsoft, though Yahoo’s Goldman said on Tuesday that the gap had narrowed in recent months.

Yahoo was once among the Internet industry’s most powerful companies, it has lost its appeal among consumers and advertisers to rivals such as Google Inc and Facebook Inc.

Mayer has said that building better online products that entice consumers to spend more time on Yahoo properties, and developing new services for smartphones and other mobile devices, are key to turning the company around.

Yahoo said it earned $ 390 million, or 35 cents a share in the first three months of the year, compared to $ 286 million, or 23 cents in first quarter of 2012.

“People were disappointed by the display advertising because that’s Yahoo’s key business,” said Sameet Sinha, an analyst at B. Riley.

“We were looking for display to be down about 9 percent and they came in at negative 11,” said Sinha.

Yahoo’s overall net revenue, which excludes fees shared with partner websites, was $ 1.07 billion in the first quarter, roughly flat from the year-ago period, according to Yahoo.

Yahoo’s net revenue was at the low-end of the $ 1.07 billion to $ 1.1 billion it forecast in January, in what was the first financial outlook that Yahoo offered since Mayer became CEO. Analysts polled by Thomson Reuters I/B/E/S on average expected net revenue of $ 1.1 billion.

(Reporting By Alexei Oreskovic with additional reporting by Malathi Nayak; Editing by Bernard Orr)


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Yahoo posts flat first-quarter revenue on declining display ad sales

By Alexei Oreskovic

SAN FRANCISCO (Reuters) – Yahoo Inc’s first quarter revenue fell short of Wall Street targets and its display advertising business experienced declining sales for the second quarter in a row, sending the Internet company’s shares down 4.2 percent.

Yahoo’s stock, which had surged more than 50 percent since Chief Executive Marissa Mayer took the helm in July, fell to $ 22.79 in after-hours trading on Tuesday.

“People were disappointed by the display advertising because that’s Yahoo’s key business,” said Sameet Sinha, an analyst at B. Riley Caris.

Net revenue, which excludes fees shared with partner websites, was $ 1.07 billion in the first quarter, roughly flat from the year-ago period, according to Yahoo.

Yahoo’s net revenue was at the low-end of the $ 1.07 billion to $ 1.1 billion it forecast in January, in what was the first financial outlook that Yahoo offered since Mayer became CEO. Analysts polled by Thomson Reuters I/B/E/S on average expected net revenue of $ 1.1 billion.

Yahoo said it earned $ 390 million, or 35 cents a share in the first three months of the year, compared to $ 286 million, or 23 cents in first quarter of 2012.

Revenue from display ads fell 11 percent year-on-year, excluding certain items. Search advertising revenue rose 6 percent year-on-year on an adjusted basis.

“We were looking for display to be down about 9 percent and they came in at negative 11,” said Sinha, of B. Riley Caris.

(Reporting By Alexei Oreskovic; Editing by Bernard Orr)


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