US Focus Stocks: YHOO, GNW, NXPI

Shares of Yahoo Inc. (NASDAQ: YHOO) dropped more than 3% Friday slumped Friday as an agreement related to compensation for the transfer in ownership of Alibaba Group’s online payments service Alipay failed to impress Wall Street. Citigroup analyst Mark Mahaney contended that, while the agreement “removes some uncertainty, Yahoo appears to have become a forced seller of one of its key Asian assets.”

Genworth Financial Inc. (NYSE: GNW) rallied more than 5% after mortgage insurer said that it is taking steps to possibly split up the company, said its Chief Executive Michael Fraizer on a post-earnings conference call, sending its shares up 6 percent on Friday afternoon. Fraizer said it would make sense splitting the company into two, but added that its not a "strategy to execute in the near term."

NXP Semiconductor NV (NASDAQ: NXPI) slumped more than 3% after the company slashed its outlook for near-field communication chip shipments in 2011 as mobile-phone operators expand wireless payment systems more slowly than expected. NXP now expects NFC deliveries at the lower end or “perhaps even slightly below” an initially predicted range of 40 million to 100 million units, Chief Executive Officer Richard Clemmer stated.

Full Disclosure: None. 

Analyst Actions: AIG, MO, TLAB, STEC

American International Group (NYSE: AIG): Citigroup on Friday initiated coverage on the company with a Hold rating and a price target of $33.

Altria Group Inc. (NYSE: MO): Stifel Nicolaus upgraded its rating on the company to Buy from Hold to Buy with a price target of $29.00.

Tellabs Inc. (NASDAQ: TLAB): Kaufman Bros. initiated coverage on the company with a Hold rating and a price target of $5. In a research note to clients, the firm stated, "Our HOLD rating is based on: 1) TLAB is challenged by product transition issues; and 2) legacy infrastructure levels are declining, while growth product segments have not gained meaningful traction...As anticipated, TLAB's 2Q11 results disappointed the Street. However, international revenue was up 70% Y/Y, and a record 61% of total revenue came from growth products. That said, guidance for 3Q11 was mildly encouraging...We believe that TLAB's risk/reward profile is more likely to improve than not going forward, allowing investors to take a fresh look at the story."

STEC, Inc. (NASDAQ: STEC): Benchmark downgraded its rating on the company to hold from Buy. In a research note to clients, the firm stated, "Other storage and server OEMs will continue to desire the most cost-effective SSDs as each of these OEMs attempts to increase the attach rate of SSDs. The next big products cycles for STEC include gen IV ZeusIOPS and PCIe cards, both of which should be shipping by 2Q12. If all goes well, STEC could reclaim some market share and could become ultra competitive on a price/GB basis with alternative solutions such as SATA-based SSDs."

Full Disclosure: None.

Amgen Inc. (NASDAQ: AMGN): Q2 2011 Earnings Roundup

Amgen Inc. (NASDAQ: AMGN) said Friday that its second-quarter profit rose to $1.17 billion, or $1.25 a share, from $1.2 billion, or $1.25 a share, in the year-earlier quarter. On an adjusted basis, the company earned $1.37 a share in the latest quarter. Revenue climbed 4.1% to $4 billion.

"Our products recorded a strong 8 percent growth during the quarter," said Kevin Sharer, chairman & CEO at Amgen. "Our business has momentum and we expect to be at the upper end of our revenue and EPS guidance ranges for the year."

Full Disclosure: None.

American Axle (NYSE: AXL): Q2 2011 Earnings Roundup

American Axle & Manufacturing Holdings Inc. (NYSE: AXL) reported Friday that its second-quarter profit surged to $49.2 million, or 65 cents a share, up from $25.4 million, or 34 cents a share, in the year-ago quarter. Revenue rose 23% to $686.2 million from $$559.6 million. Analysts, on average, expected the company to report earnings of 44 cents per share on revenue of $631.93 million.

Looking ahead, the company lifted its full-year 2011 sales and earnings outlook, with sales now expected to range from $2.5 billion to $2.6 billion. Nine analysts anticipate revenues of $2.51 billion for 2011. AAM expects to be profitable and generate adjusted EBITDA in the range of 14.5% - 15.0% of sales in 2011.

Full Disclosure: None.

Starbucks Corp. (NASDAQ: SBUX): Q3 Earnings Preview 2011

Starbucks Corp. (NASDAQ: SBUX), the world's largest specialty coffee retailer, is scheduled to release fiscal third-quarter earnings after the closing bell on Thursday, July 28, 2011. Analysts, on average, expect the company to report earnings of 34 cents a share on revenue of $2.85 billion. In the year ago quarter, the company reported earnings of 29 cents per share on revenue of $2.61 billion.

Starbucks Corporation, together with its subsidiaries is the roaster and retailer of specialty coffee. It purchases and roasts whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a range of food items, a selection of premium teas, and beverage-related accessories and equipment, through Company-operated retail stores.

In the preceding fiscal second-quarter, the Seattle, Washington-based company's net income was $261.6 million, or 34 cents a share, compared to a profit of $217.3 million, or 28 cents a share, in the year-ago quarter. Total net revenues increased 10% to $2.8 billion. Analysts, on average, expected the company to report earnings of 34 cents a share on revenue of $2.73 billion.

At its last earnings call in April, the company said that it is now targeting high single-digit revenue growth for its fiscal year 2011, driven by mid single-digit same-store sales growth. Previously, the company targeted mid-to-high single-digit revenue growth, driven by low-to-mid single-digit same-store sales growth. The company also lifted its fiscal 2011 earnings outlook to a range of $1.46 to $1.48 per share from its prior outlook of $1.43 to $1.47 per share. The latest earnings guidance include higher commodity costs, which are now expected to have an unfavorable impact of about $0.22 per share for the full fiscal year. The additional $0.02 per share compared to the company's January guidance reflects expected higher dairy and fuel prices, the company noted.

The company has benefited from better pricing and growth in its consumer products group, which has higher margin levels than the company's retail locations. Starbucks is seeking to bolster sales at supermarkets, expand its Seattle’s Best brand, and open new international stores as part of a push to become a global consumer products giant.

The coffee giant has resumed its expansion in international markets. The company currently generates roughly 20 percent of its revenue from international markets. Starbucks expects its international business to reach sustainable double digit profit margins beginning in its fiscal 2011. In December 2010, the company outlined its multi-channel growth strategy that highlighted initiatives to increase sales through multiple brands and channels as well as increase its focus on large emerging markets such as China and India. The company set a target to open 1,500 stores in China by 2015.

Starbucks plans to initiate about 500 net new stores globally in fiscal 2011; approximately 100 in the U.S. and approximately 400 internationally, the majority of which are expected to be licensed stores. The company assumes capital spending to be approximately $500 million-$600 million in fiscal 2011.

Full Disclosure: None.

Spectrum Pharmaceuticals Jumps On Renewed Takeover Chatter

Shares of Spectrum Pharmaceuticals, Inc. (NASDAQ: SPPI) rallied as much as 3% on Thursday on renewed speculation that the company could be a takeover target. Spectrum Pharmaceuticals, Inc., a commercial-stage biotechnology company, primarily focuses on oncology and hematology. The company engages in acquiring, developing, and commercializing a broad and diverse pipeline of late-stage clinical and commercial products. The company will release its second quarter earnings on August 4, 2011.

Full Disclosure: None.

Fortinet Rallies On Takeover Speculation

Shares of Fortinet Inc. (NASDAQ: FTNT) rose more than 1% on Thursday on speculation that the company could be a takeover target. Fortinet, Inc. provides network security appliances and unified threat management (UTM) network security solutions to enterprises, service providers, and government entities worldwide. The company recently reported that its second-quarter profit rose to $14.5 million, or 9 cents per share, from $6.9 million, or 5 cents per share, in the year-ago quarter. On an adjusted basis, the company earned 9 cents per share in the latest quarter. Revenue rose 35% to $103.02 million from $76.33 million. Stay tuned for more.

Full Disclosure: None.

Analyst Actions: CSCO, GPS, TSL, REE

Cisco Systems (NASDAQ: CSCO): Goldman Sachs upgraded its rating on the company to Buy from Neutral with a price target of $21.

Gap, Inc. (NYSE: GPS): Jefferies upgraded the company to Buy from Hold to Buy. The firm raised its price target to $25 from $16.

Trina Solar Ltd. (NYSE: TSL): Collins Stewart downgraded its rating on the company to Neutral from Buy on expectations consensus estimates for the company will need to come down. 

 
Rare Element Resources (AMEX: REE): Global Hunter Securities initiated coverage on the company with a Buy rating and a price target of $18.50. In a research notev to clients, the firm commented, "Rare Element Resources (Rare Element) is advancing the Bear Lodge rare earth project towards production and will be one of two significant projects in the United States providing the critical/strategic metals currently in short supply and facing export restrictions from China. We believe the project's location, straightforward mining plan and relatively low capex makes Rare Element a compelling investment at this time. In addition, the company also has an adjacent low grade, but high tonnage gold deposit, Sundance, which has a resource in excess of 900k oz Au. We believe that Rare Element is undervalued based on the upcoming catalysts and advantages over other development companies in the REE sector."

Full Disclosure: None.

Exxon Mobil Corp. (NYSE: XOM): Q2 2011 Earnings Roundup

Exxon Mobil Corp. (NYSE: XOM) reported Thursday that its second-quarter profit climbed to $10.68 billion, or $2.18 a share, from $7.56 billion, or $1.60, in the year-earlier quarter. Revenue rose to $125.49 billion from $92.49 billion. Analysts, on average, expected the company to report earnings of $2.30 a share on revenue of $121.39 billion.

Full Disclosure: None.

Alcatel-Lucent SA (NYSE: ALU): Q2 2011 Earnings Roundup

Alcatel-Lucent SA (NYSE: ALU) reported Thursday that it swung to a second-quarter profit of 43 million euros or 0.02 euros per share, compared to a loss of 184 million euros or 0.08 euros per share last year. In terms of American Depository Share, or ADS, earnings were $0.03 per share, against a loss of $0.10 per share reported a year earlier. On an adjusted basis, net income (group share) was 82 million euros or 0.04 euros per share, in comparison with a loss of 139 million euros or 0.06 euros per share in the year-ago period. Adjusted earnings per ADS was $0.05 compared with a loss of $0.08 last year. Revenues climbed 2.4 percent to 3.9 billion euros from 3.81 billion euros in the same quarter last year.

Commenting on the quarterly results, Ben Verwaayen, CEO of the company said, "In the second quarter, our next-generation product sales increased sharply, delivering market share gains in IP and optics, driven by the need for capacity and all-IP network transformation. From a geographic standpoint, we enjoyed significant growth in North and Latin America as well as in Asia Pacific."

For the full year, the company reaffirmed its outlook to grow faster than its addressable market with an adjusted operating margin above 5 percent of its 2011 sales.

Full Disclosure: None.

Bristol-Myers Squibb Co. (NYSE: BMY): Q2 2011 Earnings Roundup

Bristol-Myers Squibb Co. (NYSE: BMY) said that its second-quarter profit declined slightly to $1.31 billion, or 52 cents per share, compared with $1.27 billion, or 53 cents per share, in the year-ago quarter. On an adjusted basis, the company earned 56 cents per share in the latest quarter. Revenue rose 14% to $5.43 billion from $4.77 billion. Analysts, on average, expected the company to report earnings of 55 cents a share on revenue of $5.04 billion.

"I am proud of this organization and our strong second quarter results across the board--financially, clinically, and operationally. This performance demonstrates the success of our BioPharma strategy in delivering short term results and in positioning the Company for the future," said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb.

Looking ahead, the company lifted its 2011 GAAP EPS guidance range to $2.08 to $2.18 and its non-GAAP EPS range to $2.20 to $2.30. The Company also reaffirmed its minimum non-GAAP EPS guidance of $1.95 for 2013.  Previously, the company expected 2011 GAAP earnings per share of $2.00 to $2.10 and its non-GAAP earnings per share range from $2.10 to $2.20.

Full Disclosure: None.

Potash Corp. (NYSE: POT): Q2 2011 Earnings Roundup

Potash Corp. (NYSE: POT) said that its second-quarter profit jumped to $840 million or 96 cents a share, from $480 million or 53 cents a share, in the year-earlier quarter. Revenue surged to $2.325 billion from $1.437 billion.

"The continuation of strong fertilizer demand combined with the limitations of global production, especially in potash, resulted in tight fertilizer markets and rising prices for our products," Chief Executive Officer Bill Doyle said in a statement.

Looking ahead, the company lifted its full-year earnings forecast to $3.40 to $3.80 a share from its previous forecast of $3 to $3.40 a share. The company anticipates third-quarter earnings at about 80 cents to $1 a share.

Full Disclosure: None.

Sprint Nextel Corp. (NYSE: S): Q2 2011 Earnings Roundup

Sprint Nextel Corp. (NYSE: S) reported Thursday that its second-quarter loss widened to $847 million, or 28 cents a share, from $760 million, or 25 cents a share, in the year-earlier quarter. Revenue rose 4% to $8.3 billion. Analysts, on average, expected the company to post a loss of 13 cents a share on revenue of $8.3 billion.

"Sprint's second quarter results, including our fourteenth consecutive quarter of improved customer care satisfaction, our best ever postpaid churn, more than 1 million net wireless subscriber additions and wireless service revenue growth, validate that our focus on providing simplicity, value and an unmatched customer experience is working," said Dan Hesse, Sprint CEO.

Full Disclosure: None.

Citrix Systems Inc. (NASDAQ: CTXS): Q2 2011 Earnings Roundup

Citrix Systems Inc. (NASDAQ: CTXS) late Wednesday announced that its fiscal second-quarter profit surged to $82 million, or 43 cents a share, from $48 million, or 25 cents a share, in the year-earlier quarter. On an adjuste basis, the company 57 cents a share in the latest quarter. Revenue rose to $531 million from $458 million. Analysts, on average, expected the company to report earnings of 55 cents a share on revenue of $522.8 million. 

"I'm pleased with the financial and strategic results for the quarter," said Mark Templeton, president and chief executive officer for Citrix. "Demand for our virtualization, networking and cloud solutions continues to be strong across the board, and the excitement I hear from customers has never been higher."

Full Disclosure: None.

Visa Inc. (NYSE: V): Q3 2011 Earnings Roundup

Visa Inc. (NYSE: V) late Wednesday reported that its fiscal third-quarter profit rose to $883 million, or $1.26 per class A share, from a profit of $881 million, or $1.23 a per class A share, in the year-ago quarter. On an adjusted basis, the company earned $1.26 per class A share. Total operating revenues rose to $2.32 billion from $2.03 billion. Analysts, on average, expected the company to report earnings of $1.23 per share on revenue of $2.30 billion. 

"Visa delivered another quarter of strong financial and operational performance as we benefitted from growth in global payments volume, and solid cross border and processed transaction growth," said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. "As we address the new regulatory landscape, we are prepared to deliver on our financial goals and remain an industry leading growth company in the global transactions space."

Looking ahead, Visa affirmed its financial outlook through 2012. Annual class A common stock earnings per share growth is expected to be in the mid to high teens range, while annual net revenue growth is expected in the range of high single to low double digit.

Full Disclosure: None.

Whole Foods Market (NYSE: WFM): Q3 2011 Earnings Roundup

Whole Foods Market (NYSE: WFM) late Wednesday said that its fiscal third-quarter profit rose to $88.4 million, or 50 cents a share, from $65.7 million, or 38 cents a share, in the year-earlier quarter. Revenue rose 11% to $2.4 billion. Analysts, on average, expected the company to report earnings of 46 cents per share on revenue of $2.37 billion.

"We are continuing to gain market share at a faster rate than most public food retailers as reflected in our 8.5% comparable store sales growth year to date. We attribute much of our success to our value efforts, which have improved our price image, and to continuing to raise the bar in areas that matter to our customers, particularly quality standards and health and wellness," said Walter Robb, co-chief executive officer of Whole Foods Market. 

Looking ahead to fiscal year 2011, the company raised its financial outlook. Whole Foods said that it now expects earnings of $1.87 to $1.90 per share, up from its prior outlook of $1.76 to $1.80 per share.Sales growth is now expected in the range of 11.7 percent to 12.6 percent, up from the company's previous forecast of 10.7 percent to 12.8 percent for the year.

Full Disclosure: None.

Akamai Technologies Inc. (NASDAQ: AKAM): Q2 2011 Earnings Roundup

Akamai Technologies Inc. (NASDAQ: AKAM) reported that its fiscal second-quarter profit rose to $47.9 million, or 25 cents a share, from $38.1 million, or 20 cents a share, in the year-earlier quarter. On an adjusted basis, the company reported earnings of 35 cents a share in the latest quarter. Revenue rose to $277 million to $245.3 million. Analysts, on average, expected the company to report earnings of 36 cents per share on revenue of $277.98 million. 

"Trends in cloud computing, Internet security, mobile connectivity, and the proliferation of online video have continued to drive our customers' online initiatives and our business success," said Paul Sagan, CEO of Akamai. "With the scale, data and software underlying the Akamai intelligent platform, combined with our deep industry expertise, we believe Akamai is uniquely capable of enabling our customers' online businesses to grow revenues and reduce costs. We continue to position Akamai to lead the next evolution of cloud computing by investing in the business to build new and innovative solutions that leverage the Company's core competencies."

Full Disclosure: None.

MEMC Electronic Materials Inc. (NYSE: WFR): Q2 Earnings Preview 2011

MEMC Electronic Materials Inc. (NYSE: WFR) is scheduled to release its second-quarter earnings after the closing bell on Wednesday, July 27, 2011. Analysts, on average, expect the company to report earnings of 8 cents per share on revenue of $702.80 million. In the year ago quarter, the company reported earnings of 6 cents per share on revenue of $448.30 million.

MEMC Electronic Materials, Inc. designs, manufactures, and sells silicon wafers for the semiconductor industry worldwide. With manufacturing and research and development facilities in the United States, Europe and Asia Pacific, the Company enables high performance semiconductor and solar applications.

In the preceding first quarter, the St. Peters, Missouri-based company's net income was $4.5 million, or 2 cents per share, compared to a loss of $9.6 million, or 4 cents per share, in the year-earlier quarter. On an adjusted basis, the company earned 9 cents a share in the first quarter. Revenue climbed to $735.9 million from $437.7 million. Analysts, on average, expected the company to report earnings of 13 cents per share on revenue of $638.82 million.

At its last earnings call in May, the company reaffirmed its earnings guidance range of $0.25 to $0.55 per share for the full year. MEMC also backed its adjusted earnings guidance range of $1 to $1.30 per share for the full year. MEMC's full-year revenue guidance remains unchanged at $2.8 billion - $3.1 billion. The company said that it still expects adjusted sales in the range of $3.4 billion - $3.7 billion for the full year.

MEMC’s solar initiatives are encouraging.MEMC Electronic Materials Inc.’s (NYSE:WFR) Singapore affiliate recently formed a strategic alliance with Korea-based Jusung Engineering Co. Ltd. Under the agreement, MEMC Singapore and Jusung will combine forces to develop and maintain a high efficiency solar cell production facility for SunEdison (an MEMC subsidiary). Jusung Engineering supplies advanced technology and tools for the fabrication of solar photovoltaic cells. Both partners will have equal interests in the project and will shell out $16.0 million each as upfront cost. In May, MEMC sealed a similar strategic deal with Electronics Manufacturing Services (EMS) provider Flextronics International Ltd. (NASDAQ:FLEX). Under the agreement, MEMC Singapore and Flextronics will combine forces to fabricate solar panels for SunEdison. MEMC also entered into a 50-50 joint venture with JA Solar Holdings Co. Ltd. (NASDAQ:JASO) in March. The two companies have agreed to build and operate a solar cell production facility in China.

However, declining price of polysilicon remains a major concern. The company recently announced the termination of the solar wafer supply agreement between its Singapore unit and Suntech Power Holding Co. Ltd. (NYSE:STP). MEMC will receive a handsome $120.0 million from Suntech for the termination. The original deal between MEMC Singapore Pte Ltd. and Suntech, the leading Chinese solar energy company, was struck in 2006. Per this 10-year deal, MEMC was required to supply solar wafers at a predetermined price. As an advance, Suntech deposited a certain security amount and allowed MEMC to take over up to a 4.99% stake in it. However, persistent downturn in polysilicon prices led the companies to amend the contract twice in 2009. Accordingly, prices were cut and volumes were raised. But as further price declines were noticed during the first half of this year, MEMC and Suntech mutually consented to put an end to the contract.

Full Disclosure: None.

Akamai Technologies Inc. (NASDAQ: AKAM): Q2 Earnings Preview 2011

Akamai Technologies Inc. (NASDAQ: AKAM) is scheduled to release its second-quarter earnings after the closing bell on Wednesday, July 27, 2011. Analysts, on average, expect the company to report earnings of 36 cents per share on revenue of $277.98 million. In the year ago period, the company reported earnings of 34 cents per share on revenue of $245.32 million.

Akamai supports the delivery of content like music and video over the Internet by navigating less-congested network routes. It also helps with online shopping sites, and the company is usually paid based on how much traffic it handles. Akamai handles 15 percent to 30 percent of all online traffic, according to its website, and the company counts more than half of the largest 500 U.S. Internet retailers as customers. The company delivers data for Apple Inc.’s (NASDAQ: AAPL) iTunes and streams video for Netflix Inc. (NASDAQ: NFLX).

In the preceding first quarter, the Cambridge, Massachusetts-based company's net income was $50.6 million, or 26 cents per share, compared to $40.9 million, or 22 cents per share in the year-ago quarter. Revenue rose to $276 million from $240 million. Analysts, on average, expected the company to report earnings of 37 cents per share on revenue of $372.03 million. . 

At its last earnings call in April, Akamai said that it expects second-quarter revenue in the range of $270.0 million to $280.0 million (10% to 14% year-over-year growth) for second quarter of 2011. Favorable foreign exchange is expected to have an impact of approximately $10 million on a year-over-year basis. Akamai expects cash gross margins to remain roughly stable at about 80% and GAAP gross margins to come in at 67%–68%. For the second quarter, Akamai expects operating expenses to increase by about $7 million to $8 million year over year, which will include the annual impact of budgeted salary increases. Akamai expects adjusted EBITDA margins in the range of 44% to 45%. Normalized EPS is expected in the 34 cents to 37 cents range, including tax charge in the range of $17 million to $21 million based on a full-year GAAP tax rate of about 32% to 33%. Akamai forecasts capital expenditure of approximately $50 million for the second quarter excluding equity compensation and expects capital expenditure for fiscal 2011 to be at the upper end or slightly above Akamai’s long-term model of 13% to 16% of revenue.

Akamai has benefite from increasing adoption of online services and cloud computing. The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Media content is rising at a significant pace.Akamai's technology is crucial for delivering high-definition video as online services like Netflix and Hulu explode in popularity pace as more video content moves online and video quality increases (HD video). The company has benefited from increase in e-commerce transactions and online video content. 

The company is expanding its presence in Central and Eastern Europe (CEE). The company will extend its services to five countries in the region namely Czech Republic, Hungary, Poland, Romania and Slovakia. Akamai will also open a branch office in Krakow, Poland to support its CEE customers. Akamai is expected to benefit from the huge demand in the region. According to research firm, Forrester, the CEE region is estimated to reach overall Internet adoption rates of 54% by 2013.

However, Akamai is facing more competition from companies including Limelight Networks, Inc. (NASDAQ: LLNW), Level 3 Communications Inc. (NASDAQ: LVLT) and Cotendo Inc. for CDNs, which distribute movies, music and software to computers on behalf of services such as Hulu LLC and Netflix. 

Full Disclosure: None.

DryShips Inc. (NASDAQ: DRYS): Q2 Earnings Preview 2011

DryShips Inc. (NASDAQ: DRYS) is scheuled to release its second-quarter earnings after the closing bell on Wednesday, July 27, 2011. Analysts, on average, expect the company to report earnings of 18 cents per share on revenue of $272.56 million. In the year ago period, the company reported earnings of 30 cents per share on revenue of $224.24 million.

DryShips, Inc. engages in the ownership and operation of drybulk carriers that operate worldwide. The company's fleet carries various drybulk commodities, including coal, iron ore, grains, bauxite, phosphate, fertilizers, and steel products.

DryShips is somewhat unique in the shipping industry in that it operates both drybulk carriers and also offshore oil deep water drilling units. Through its majority owned subsidiary, Ocean Rig UDW Inc., DryShips owns and operates 9 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 7 ultra deepwater drillships, 5 of which remain to be delivered to the Company during 2011 and 2013. As of July 21, DryShips owned a fleet of 38 drybulk carriers (including newbuildings), comprising 9 Capesize, 27 Panamax and 2 Supramax, with a combined deadweight tonnage of over 3.4 million tons, and 12 tankers (including newbuildings), comprising 6 Suezmax and 6 Aframax, with a combined deadweight tonnage of over 1.6 million tons.

In the preceding first-quarter, the Athens, Greece based company's net income was $25.8 million, or 7 cents per share, compared to $13.3 million, or 4 cents per share, in the prior-year period. On an adjusted basis, the company earned 15 cents per share in the first quarter. Revenue rose to $207.4 million from $194.2 million in the same quarter last year. Analysts, on average, expected the company to report earnings of 16 cents per share on revenue of $234.12 million.

The dry bulk shipping industries' fortunes are closely tied to global growth as these ships are responsible for carrying the materials required in economic expansion. However, despite improving global macroeconomic scenario, the financial condition of this industry is worse than what it was a year or two ago. An oversupply of ships and mediocre demand has severely damaged the drybulk industry and has forced companies to search elsewhere for revenues.  With a falling dollar and the upward manipulation of the Chinese Yuan, there seems to be less reason to ship commodities long distances, as the prices of these commodities are getting closer and closer to one another. Along with these currency issues, there may be simply too little demand and too many empty boats for shipping companies. The traditional indicator of the shipping industry's health, the Baltic Dry Index, has plummeted close to 20 percent since the beginning of the year as demand for dry-bulk shipping has fallen. This downturn has sent average vessel prices down 65 percent from 2008 all-time highs. The company sees strong shipping demand over the long haul due to a "record pace of Chinese commodity imports," but this demand will likely continue to be uneven. 

DryShips is steadily transforming itself as a drillship company from a drybulk cargo operator. Therefore, both the top line and bottom line are benefiting from lucrative ultra deep-water oil drilling industry.  The company will spin off the unit in an IPO within the next few months. The planned listing of Ocean Rig shares will help unlock the value of DryShips. The unit recently secured a $1.1 billion contract from Brazil's Petrobras and has obtained all the required financing for building new drillships. 

Dryships has also invested a great deal of money trying to establish a presence in the oil-tanker market.

Among other developments, the company recently agreed to acquire the outstanding shares of OceanFreight for consideration per share of $19.85, consisting of $11.25 in cash and 0.52326 of a share of common stock of Ocean Rig UDW Inc., a global provider of offshore ultra deepwater drilling services that is 78% owned by DryShips.  OceanFreight owns four capesize and two panamax vessels with an average age of six years and tonnage of 859,622 tons. 

Full Disclosure: None.

Visa Inc. (NYSE: V): Q3 Earnings Preview 2011

Visa Inc. (NYSE: V), the world’s largest electronic payments network, is scheduled to release its fiscal third-quarter earnings after the closing bell on Wednesday, July 27, 2011. Analysts, on average, expect the company to report earnings of $1.23 per share on revenue of $2.30 billion. In the year ago quarter, the company reported earnings of $0.97 per share on revenue of $2.03 billion.

Visa Inc. operates retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services, primarily authorization, clearing, and settlement, as well as related value-added services.

In the preceding first quarter, the San Francisco, California-based company's net income was $881 million, or $1.23 per class A common share, compare to $713 million, or 97 cents per class A common share, in the year-ago quarter. Net operating revenue climbed 15% to $2.2 billion. Analysts, on average, expected the company to report earnings of $1.20 per share on revenue of $2.23 billion.

Early in July, Visa reaffirmed its financial forecast through 2011 with annual earnings per class A share growth of greater than 20 percent, and annual net revenue growth of 11 percent to 15 percent. For the current year, Visa's forecast translates to revenue of between $8.95 billion and $9.11 billion and earnings of at least $4.84 per share. However, the company warned that its revenue and earnings growth will slow in 2012 after new regulations on the fees banks can charge for debit card transactions kick in. Next year. Visa said it expects its revenue growth to slow to the high-single-digit to low-double-digit range. The company expects earnings-per-share growth to slow to the mid-to-high teens. The slowdown will reflect the rules announced by the Federal Reserve last week that kick in on Oct. 1 and next April. The first will limit the fees that banks can charge retailers for processing debit card transactions. The second will give merchants the power to decide which network handles their transactions. Because Visa's fiscal year ends in September it was able to keep its forecast for the current year. Since the Fed moved the date the fee cap will kick in from July 21 to Oct. 1, it will have no impact on Visa's results for fiscal 2011. U.S. debit revenue accounts for about 20 percent of the company's overall revenue, CEO Joseph Saunders said during a conference call to discuss the forecast. We expect that fiscal 2012 will bear the weight of the regulations financially and in fiscal 2013 revenue growth will regain momentum," Saunders said during the conference call. The company also said it will elaborate further on the impact of the fee cap in its earnings conference call on July 27.

On the bright side, the company continues to benefit from strong secular demand growth, increased payment volumes, meaningful international exposure, high barriers to entry, excellent pricing power, impressive operating leverage, and consistent growth in processed transactions.

Full Disclosure: None.

Dow Chemical Co. (NYSE: DOW): Q2 2011 Earnings Roundup

Dow Chemical Co. (NYSE: DOW) reported Wednesday that its second-quarter profit jumped to $1.07 billion, or 84 cents a share, from $659 million, or 50 cents a share, in the year-earlier quarter. On an adjusted basis, the company earned 85 cents a share in the latest quarter. Revenue climbed 18% to $16.05 billion. Analysts, on average, expected the company report earnings of 79 cents a share on revenue of $14.74 billion. 

"This marked another quarter of tremendous progress for Dow," said Andrew N. Liveris, Dow's chairman and chief executive officer. "We delivered significant and broad-based top-line growth, and reached a new quarterly sales record in emerging geographies. The performance of our diverse and balanced portfolio once again overcame continuing headwinds in certain sectors. More importantly, we remain firmly on the trajectory to reach our near-term earnings targets, as evidenced by EBITDA growth of nearly 25 percent -- up in every operating segment -- as well as overall margin expansion for the Company. Further, our year-over-year EPS growth and our EBITDA run-rate of $9 billion are approaching our near-term target.

Full Disclosure: None.

Aetna Inc. (NYSE: AET): Q2 2011 Earnings Roundup

Aetna Inc. (NYSE: AET) said Wednesday that its second-quarter profit rose to $536.7 million, or $1.39 a share, from $491 million, or $1.14 a share, in the year-ago quarter. The company said that operating earnings rose 16% to $522.8 million, or $1.35 a share. Revenue dropped to $8.34 billion from $8.55 billion. Analysts, on average, expected the company to report earnings of $1.07 a share on revenue of $8.31 billion.

"Aetna's second-quarter financial results reflect strong operating fundamentals across the enterprise," said Mark T. Bertolini, chairman, CEO and president. "Three main factors account for our success: disciplined pricing and medical cost management; lower than anticipated utilization of health care services by our members; and strong cash flow generation. The result has been better-than-projected financial results in the first half of 2011.

Looking ahead, the company boosted its fiscal 2011 guiance. The company said that it now expects full-year 2011 operating earnings per share of $4.60 to $4.70 versus its earlier range of $ 4.20 - $4.30. 

Full Disclosure: None.

Boeing Co. (NYSE: BA): Q2 2011 Earnings Roundup

Boeing Co. (NYSE: BA) reported Wednesday that its second-quarter profit climbed 20% to $941 million, or $1.25 a share, from $787 million, or $1.06 a share, in the year-earlier quarter. Revenue rose 6% to $16.54 billion from $15.57 billion. Analysts, on average, expected the company to report earnings of 98 cents a share on revenue of $16.47 billion. 

"Strong operational performance drove double-digit margins at both of our major businesses and produced outstanding results in the quarter," said Jim McNerney, Boeing chairman, president and chief executive officer. "We also made major progress toward certification and delivery of the 787 Dreamliner and 747-8 and continued our disciplined increases in commercial airplane production rates. Our outlook for the year has strengthened as our team continues its relentless focus on productivity improvement, cash management and program execution."

Looking ahead to the full year, the company lifted its earnings outlook to between $3.90 and $4.10 a share, from a prior view of $3.80 to $4 a share. 

Full Disclosure: None.

Corning Inc. (NYSE: GLW): Q2 2011 Earnings Roundup

Corning Inc. (NYSE: GLW) on Wednesday reported that its second quarter profit dropped to $755 million, or 47 cents a share, from $913 million, or 58 cents, in the year-ago quarter. On an adjusted basis, the company earned 48 cents per share. Revenue rose 17% to $2 billion. Analysts, on average, expected the company to report earnings of 47 cents per share on revenue of $1.96 billion.

"Second-quarter results were in line with our expectations," Wendell P. Weeks, chairman, chief executive officer and president, said. He added that the results demonstrate the company is moving toward its goal of becoming a more balanced global company by pursuing growth opportunities. "Corning(R) Gorilla(R) Glass is the cover glass of choice for next-generation mobile devices; sales continued growing across our major telecommunications product lines; and global demand for our Environmental Technologies emissions products remained strong," he remarked.

Full Disclosure: None.

Corning Inc. (NYSE: GLW): Q2 Earnings Preview 2011

Corning Inc. (NYSE: GLW), the world's largest manufacturer of liquid crystal displays, is scheduled to release second-quarter earnings before the opening bell on Wednesday, July 26, 2011. Analysts, on average, expect the company to report earnings of 47 cents per share on revenue of $1.96 billion. In the year-ago period, the company reported earnings of 58 cents per share on revenue of $1.71 billion.

Corning Incorporated manufactures and processes specialty glass and ceramics products worldwide. Corning manufactures and processes products at approximately 60 plants in 13 countries. Corning possesses considerable advantages in the market for LCD TV glass substrate. The company has developed great economies of scale, having continuously improved upon its manufacturing technology. Corning has developed one of the most efficient methods to produce the glass substrate and patented it, allowing for production of larger and thinner panels at lower cost. With this advanced technology, GLW has obtained a majority of glass market share, as it has been able to keep pace with the rising demands of its customers (Samsung, Phillips and Sony).

In the preceding first quarter, the Corning, New York-based company's net income was $748 million, or 47 cents a share, compared to $816 million, or 52 cents, in the year-ago quarter. Revenue rose 24% to $1.92 billion. Analysts, on average, expected the company to report earnings of 44 cents on revenue of $1.87 billion.

Corning stated that the crisis in Japan did not affect its operations or supply chain in the last quarter and those suppliers that had been affected had made arrangements for second sourcing. Second quarter results will however be impacted by an inventory correction at Sharp, which intends to lower utilization rates for the purpose. Corning currently does not expect the inventory correction to continue into the third quarter.

At its last earnings call in April, CFO James Flaws said, "There are several key market trends that seem to be playing to Corning's strengths as we look to the future. These trends provide us with great opportunities across all our major businesses and position Corning to grow sales to more than $10 billion by 2014."  The company said that it expects combined glass volume in the second quarter to be consistent with the first quarter, with glass price declines expected to moderate further. For the second quarter, telecommunications segment sales are expected to increase around 20 percent sequentially and nearly 30 percent year-over-year. Environmental Technologies segment sales could decline slightly sequentially, but increase about 35 percent year-over-year. Specialty Materials is expected to grow sales by about 20 percent due to the continued strong Gorilla Glass performance. Meanwhile, Corning anticipates equity earnings to be up about 10 percent sequentially. The gross margin is expected to be down slightly, due to lower glass volumes.

Some are concerned that demand for LCD TVs in the U.S. has stalled, with market penetration of more than 80%. But others point out that demand for the product has continued to be strong in other parts of the world.

Corning continues to expand rapidly throughout the tablet and mobile phone industry.The company's telecommunications division is poised to benefit from renewed telecom spending. Increasing traffic on smart devices, growth in cloud computing and enterprise investment in IT is expected to propel growth going forward. Corning’s Specialty Materials division has also been a source of sales growth lately due to strong demand for its Gorilla Glass. This glass is being used in a number of products, mainly as a cover material for laptops and handheld devices. GLW has reported receiving requests from automakers, appliance designers and architectural industries, which could provide additional revenue opportunities in the future. Corning’s CFO Jim Flaws believes that Gorilla sales could reach $1 billion this year.

In April, Chairman and Chief Executive Wendell Weeks issued a bullish outlook for the liquid-crystal display maker, saying that the company has potential to grow to $10 billion in sales by 2014.

Full Disclosure: None.

Nabors Industries Ltd. (NYSE: NBR): Q2 2011 Earnings Roundup

Nabors Industries Ltd. (NYSE: NBR) reported late Tuesday that its second-quarter profit climbed to $192 million, or 65 cents a share, from a profit of $43.6 million, or 15 cents a share, in the year-earlier quarter. Profit from continuing operations was 23 cents a share. Revenue climbed to $1.36 billion from $907 million.  Analysts, on averge, expected the company to report earnings of 25 cents a share on revenue of $1.33 billion.

Gene Isenberg, Nabors' Chairman and CEO, commented, "The quarter exceeded our previous indications with better than anticipated results in our US Lower 48, Alaskan and Canadian land drilling units. The solid June results in our Pressure Pumping business suggest a return to expected levels of performance. Our International, US Well-servicing and US Offshore units performed as expected, as did our Other Operating Segments. 

Full Disclosure: None.

Juniper Networks (NASDAQ: JNPR): Q2 2011 Earnings Roundup

Juniper Networks (NASDAQ: JNPR) reported Tuesday that its second-quarter profit declined to $115.6 million, or 21 cents a share, from $130.5 million, or 24 cents a share, in the year-ago quarter. On an adjusted basis, the company earned 31 cents a share in the latest quarter.Revenue rose to $1.12 billion from $978.3 million. Analysts, on average, had expected the company to report earnings of 34 cents a share on revenue of $1.15 billion.

"Juniper's results reflect momentum in our routing business and a return to solid performance in switching. A number of factors, however, including mixed signals in the macro economy, impacted our performance this quarter," said Kevin Johnson, chief executive officer at Juniper Networks. "We are confident that our investment in innovation is generating a wave of great products that positions us well to deliver on our multi-year growth agenda."

Looking ahead, Juniper expects revenue for the third quarter ending September 30, 2011, to be in the range of $1.070 billion to $1.120 billion. Juniper anticipates that its non-GAAP net income per share will range between 26 cents and 30 cents per share on a diluted basis, assuming a flat share count and estimated non-GAAP tax rate of 27%. The non-GAAP EPS estimate includes a dilutive impact of approximately $0.02 per share due to net interest expense from our debt. Juniper estimates that its non-GAAP gross margin will be in the range of between 65% and 67% in the third quarter.

Full Disclosure: None.

Gilead Sciences Inc. (NASDAQ: GILD): Q2 2011 Earnings Roundup

Gilead Sciences Inc. (NASDAQ: GILD) reported late Tuesday that its second-quarter profit climbed to $746.2 million, or 93 cents a share, from $712.1 million, or 79 cents a share, in the year-earlier quarter. On an adjusted basis, the company earned $1 a share in the latest quarter. Revenue rose to $2.04 billion from $1.93 billion in the same quarter last year. Analysts, on average, had expected the company to report earnings of 99 cents a share on revenue of $2.08 billion.

Full Disclosure: None.

Las Vegas Sands Corp. (NYSE: LVS): Q2 2011 Earnings Roundup

Las Vegas Sands Corp. (NYSE: LVS) reported Tuesday that it swung to a second-quarter profit of $368 million, or 45 cents a share, from a loss of $5 million, or 1 cent a share, in the year-earlier quarter. On an adjusted basis, the company earned 54 cents a share in the latest quarter. Revenue soared 47% to a record $2.35 billion. Analysts, on average, expected the company to report earnings of 44 cents a share on revenue of $2.21 billion.

Full Disclosure: None.

Electronic Arts Inc. (NASDAQ: ERTS): Q1 2012 Earnings Roundup

Electronic Arts Inc. (NASDAQ: ERTS) said Tuesday that its fiscal first-quarter profit rose to $221 million, or 66 cents a share, from $96 million, or 29 cents a share, in the year-earlier period. On an adjusted basis, the company posted a loss of 37 cents a share on sales of $524 million.Revenue climbed to $999 million from $815 million.

"This was another solid quarter driven by both digital and packaged goods," said John Riccitiello, Chief Executive Officer. "We saw strong digital revenue growth over the prior year. On packaged goods, NCAA is off to a great start and pre-orders for Battlefield 3 are tracking extremely well."

Looking ahead to fiscal second-quarter, EA said it expects to lose between 3 cents and 13 cents a share, excluding one-time items, on revenue in a range of $925 million to $975 million.

"EA is well positioned for the year ahead and reaffirms its fiscal 2012 non-GAAP EPS guidance," said Eric Brown, Chief Financial Officer. "And we are increasing non-GAAP digital revenue guidance to a range of $1.100 billion to $1.150 billion for fiscal 2012." 

Full Disclosure: None.

Amazon.com Inc. (NASDAQ: AMZN): Q2 2011 Earnings Roundup

Amazon.com Inc. (NASDAQ: AMZN) reported late Tuesday that its second-quarter profit dropped to $191 million, or 41 cents a share, from $207 million, or 45 cents a share, in the year-ago quarter. Revenue surged 51% to $9.91 billion from $6.57 billion. Analysts, on average, expected the company to report earnings of 35 cents per share on revenue of $9.37 billion.

"Low prices, expanding selection, fast delivery and innovation are driving the fastest growth we've seen in over a decade," said Jeff Bezos, founder and CEO of Amazon.com. "Kindle 3G with Special Offers has quickly become our bestselling Kindle at only $139. Customers love the convenience of a 3G reader -- no hunting for or paying for Wi-Fi hotspots. Amazon picks up the tab for the 3G wireless, so you have no monthly payments or annual contracts."

Looking ahead to the third quarter, Amazon said that it expects revenue to come in the range of $10.3 billion to $11.1 billion.

Full Disclosure: None.

Gilead Sciences Inc. (NASDAQ: GILD): Q2 Earnings Preview 2011

Gilead Sciences Inc. (NASDAQ: GILD), the world's largest maker of AIDS drugs, is scheduled to release its second-quarter earnings after the closing bell on Tuesday, July 26, 2011. Analysts, on average, expect the company to report earnings of 99 cents per share on revenue of $2.07 billion. In the year ago quarter, the company reported earnings of 85 cents per share on revenue of $1.93 billion.

Gilead Sciences, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide.

The company virtually dominates the HIV/AIDS drugs market. According to Joint United Nations Programme on HIV/AIDS, or UNAIDS, AIDS killed about 1.8 million people globally in 2009. That makes HIV the deadliest infection ahead of tuberculosis and malaria, World Health Organization data show.

Gilead’s portfolio of anti-HIV medicines will remain under patent protection for several more years and given the continued global increase in new HIV cases, that area promises to remain a high-growth field. Still, Gilead, like rivals such as Johnson & Johnson (NYSE: JNJ), Pfizer (NYSE: PFE) and Merck (NYSE: MRK), is scrambling to develop new drugs in-house, while also acquiring smaller companies that own promising pipelines. The company is specifically looking at increasing its presence in the Asian hepatitis B virus (HBV) market, where the infection is quite prevalent.

The company has now seen net income fall in each of the last two quarters. Revenue has fallen in the past two quarters. The company's U.S. sales have been hit by temporary cutbacks at state-funded AIDS drug assistance programs (ADAPs) in Florida and Texas.

In the preceding first-quarter, the Foster City, California-based company's net income was $651.1 milion, or 80 cents per share, compared to $854.9 million or $0.92 per share, in the prior-year quarter. On an adjusted basis, the company earned 87 cents per share in the latest quarter. Revenue declined 8% to $1.93 billion from $2.09 billion. Analysts, on average, expected the company to report earnings of 97 cents per share on revenue of $2.04 billion.

At its last earnings call in April, Gilead reiterated its fiscal 2011 guidance. The company said that it continues to expect full year product revenue in the range of $7.9-8.1 billion in 2011, reflecting an increase of 7-10% over 2010 product sales. The guidance includes an adverse 5-6% impact from U.S. health care reform, as well as the impact of pricing pressures in some countries in the European Union. Gilead expects gross margins in the range of 74% to 76% in 2011.

Gilead is aiming to broaden its expertise in the fields of oncology and inflammatory diseases. In August, the Food and Drug Administration is expected to approve a new HIV combination drug. The company is also seeking to counter the loss of revenues through acquisitions. During the quarter in review, Gilead agreed to acquire Calistoga Pharmaceuticals, Inc., a privately-held biotechnology company for $375 million. Gilead anticipates that the deal will close in the second quarter of 2011. Calistoga Pharmaceuticals is involved in the development of medicines to treat cancer and inflammatory diseases. Calistoga could earn up to an additional $225 million if certain milestones are achieved.

Full Disclosure: None.