Archive for January, 2008
Wednesday, January 23rd, 2008
According to Reuters, Southwest Airlines (NYSE: LUV) announced today it nearly doubled its profit from $57 million in Q4 ‘06 to $111 million in Q4 ‘07, exceeding analyst expectations. A good portion of the budget carrier’s increase came via a 154% gain in its fuel hedging positions (up from $118 million to about $300 million). The announcement, while positive, did little to allay the market’s concerns about rising fuel costs and their impact on airline stocks moving forward.
A Glimmer of Hope
Still, Southwest offers a small glimmer of hope in a tough industry, and continues to maintain a focus on customer service through conduits such as its Rapid Rewards program and Business Select offering. Further, it continues to innovate. Per CEO Gary Kelly, Southwest will start testing inflight internet connectivity on several of its aircraft this year.
Related Links:
LUV Q4 2007 Webcast
Posted in Large Cap Stocks | No Comments »
Wednesday, January 23rd, 2008
No doubt about it - when investors think technology, high growth, and innovation - one of the first companies that comes to mind is Apple Inc. (NASDAQ: AAPL). However, despite quarterly earnings that beat analyst estimates, shares of the tech giant shed about 12% in after hours trading yesterday. Per Reuters, the selloff came in response to lowered Q2 earnings guidance by the company of $6.8 billion vs. Wall Street’s expectations of $7 billion.
Recession Fears
Was the selloff justified? Maybe, maybe not. However, with fears that a recession is rapidly descending on the US economy, it does appear that investors are betting on a decrease in personal consumption and exiting this stock. Even so, this is still a stellar company and I believe it will continue to take market share in the personal computer space moving forward.
Related Links:
Apple Investor Relations
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Tuesday, January 22nd, 2008
The Dow Jones Industrials lost over 460 points this morning, only to recover in the wake of the Fed’s announcement to cut rates a full 75 basis points. Currently, markets have regained ground but are still in negative territory.
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Tuesday, January 22nd, 2008
The Federal Reserve announced a 75 basis point cut in the federal funds rate to 3.5% this morning. Per the Fed, the move is an attempt to counter a weakening economic outlook, a further tightening of credit markets, and a continued decline in the housing market. However, the Fed will continue to monitor inflation carefully.
Posted in Stock Market News | 1 Comment »
Monday, January 21st, 2008
Electronics bellwether Philips (NYSE: PHG) reported that net income more than doubled in Q4 2007 vs. Q4 2006. However, the majority of gains were due to the sale of shares in LG Philips LCD (NYSE: LPL) and Taiwan Semiconductor Manufacturing (NYSE: TSM). The company also announced plans to increase the shareholder dividend to 0.70 Euros in 2008 (an increase of 17%).
Of note were robust sales growth in its Domestic Appliances and Personal Care (12%), Consumer Electronics (10%), and Lighting (8%) divisions. Further, revenue increased in Europe / Africa (11%), Asia (17%), and Latin America (10%) but fell slightly in North America (down about 2%). The company also saw strong revenue growth in emerging markets, where sales increased approximately 18% vs. the prior quarter.
Related Links:
Philips - Earnings Results Presentations
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