Higher food costs fail to eat into Chipotle Mexican Grill’s revenue
Chipotle Mexican Grill reported a big jump in quarterly profit yesterday, despite higher food costs and the company’s shares soared 7.1 per cent in after hours trading. Denver-based Chipotle said first-quarter net income rose to $76.6m (£50.1m), or $2.45 per share, from $62.7m, or $1.97 cents per share, a year earlier. Revenue was up 13.4 per cent to $726.8m during the quarter.
Philip Morris earnings dented by drop in shipments to Philippines
Philip Morris, one of the world’s largest tobacco groups, yesterday reported a decline in first-quarter profits as shipments dropped 6.5 per cent. The company yesterday reported profits of $2.12bn (£1.38bn) for the quarter, down 1.7 per cent from 2012. Shipments to Asia fell 10.4 per cent as unfavourable taxes in the Philippines hurt demand. Philip Morris said it expects earnings per share growth rate of 10-12 per cent.
E*Trade continues to wind down bank loans unit as profits slump
E*Trade Financial last night reported progress in winding down its loss-plagued bank lending businesses and buffering its core discount brokerage business. The New York-based company said first-quarter net income fell 78 per cent from a year earlier to $35m (£22.9m), or 12 cents a share, but improved from a loss of $186.1m in last year’s fourth quarter. Revenue for the quarter was $419.9m against forecasts of $438.6m.
Drinks giant Pepsi beats forecasts in spite of restructuring charges
PepsiCo yesterday reported higher-than-expected quarterly earnings, helped by increased prices, and stood by its full-year forecast. The beverage and food group announced net income fell to $1.08bn (£707m), down by 4.4 per cent from a year ago on restructuring charges but ahead of Wall Street expectations. Revenue rose one per cent to $12.58bn. The company repeated its full-year outlook for seven per cent earnings growth.
Capital One’s profit slips 24pc but trumps Wall Street expectations
Capital One Financial’s first-quarter profit, released yesterday, beat analysts’ expectations despite a 24 per cent fall in profit. The company’s net income fell to $1.06bn (£690m), or $1.79 per share, in the quarter from $1.40bn, or $2.72 per share a year earlier, when the company recorded a $594m gain related to its purchase of ING’s online banking business. Analysts on average expected earnings of $1.60 per share.
Takeovers take a bite out of profit at mining firm Freeport-McMoRan
Freeport-McMoRan Copper & Gold announced a 15 per cent drop in first-quarter earnings yesterday after it agreed to buy two energy companies for $9bn (£5.89bn) in December. The miner said net income fell to $648m, while revenues dropped 0.48 per cent to $4.58bn. Last year, Freeport-McMoRan said it wanted to diversify its production portfolio with the purchase of Plains Exploration & Production.
American Airlines parent narrows its losses more than expected
American Airlines parent AMR Corp, which plans to merge with US Airways to form the world’s biggest carrier, reported higher-than-expected adjusted quarterly earnings yesterday, aided by cost cuts from its bankruptcy restructuring. The carrier’s net loss fell from $1.7bn (£1.1bn) a year earlier to $341m. Excluding one-offs, American recorded an $8m profit, the first time it has had first quarter earnings on that basis since 2007.