Business Briefs - Thursday

MEDICAL

Generics, mail orders lift Medco

The pharmacy benefits manager said Q2 EPS rose 30% to 56 cents ex items, beating views by 2 cents. Revenue gained 16% to $12.77 bil, above forecasts. Medco Health Solutions MHS said it dispensed more generic drugs and handled more home-delivery prescriptions, adding that high gas prices helped improve mail orders. It hiked its '08 EPS guidance to $2.30-$2.33 vs. views of $2.31. Shares rose 2.2% to 47.88.

AmerisourceBergen ABC, a drug distributor, said Q2 earnings edged up 1.4% to 70 cents a share ex items, beating views by 4 cents. Revenue increased 10% to $18 bil, also topping forecasts. It raised '08 EPS guidance to $2.81-$2.89, the midpoint above views. Shares jumped 7.9% to 43.15. Invitrogen IVGN, a provider of tools and cultures for biotech research, said Q2 EPS rose 46% to 73 cents ex items, smashing estimates by 16 cents. Revenue grew 14% to $367.8 mil, above forecasts. It cited growth in all units. It rose 2.1% to 42.89. Eli Lilly LLY, the drug maker, said Q2 EPS rose 10% to 99 cents ex items, a penny below views. Revenue grew 11% to $5.15 bil, above views. It cut its '08 EPS outlook by a nickel to $3.85-$4 vs. views of $3.94. Shares rose 0.8% to 48. Bristol-Myers Squibb BMY, the drug maker, said Q2 EPS grew 26% to 43 cents ex items, beating views by 3 cents. Revenue rose 16% to $5.2 bil, above forecasts. Several key drugs saw big jumps in U.S. sales, while the weak dollar helped foreign sales. Shares edged up 1% to 22.12. DEFENSE

Flir tops, guides '08 sales below

The maker of thermal imaging and infra-red cameras said Q2 EPS surged 53% to 29 cents, a penny better than views. Revenue jumped 42% to $261 mil, above forecasts. Flir Systems FLIR cited sales growth across all units. It sees '08 EPS of $1.18-$1.25 vs. views of $1.22 and '08 sales of $1.05 bil-$1.1 bil vs. views of $1.09 bil. Shares fell 6.7% to 39.93

FINANCE

Pawn loans boost Cash America

The pawn shop operator said Q2 EPS gained 56% to 67 cents, besting views by 6 cents. Revenue jumped 16% to $247.9 mil, above forecasts. Cash America CSH cited a 17% rise in pawn loan revenue and a 26% gain in merchandise sales. It sees Q3 EPS of 62-66 cents, the midpoint 14 line with views. It expects '08 EPS of $3-$3.20 vs. views of $3.08. Shares fell 5.8% to 40.83.

EZCorp EZPW, a pawn shop operator and short-term lender, said after hours that Q3 EPS rose 69% to 27 cents ex items, beating views by 3 cents. Revenue grew 24% to $108.1 mil, besting forecasts. Shares rose in late trading. Janus Capital JNS, an investment manager, said Q2 EPS increased 26% to 34 cents ex items, beating views by 4 cents. Revenue climbed 11% to $304.2 mil, topping estimates. Average assets under management rose 5.5% to $200.1 bil. Shares rose 3.5% to 28.36. N.Y. sues UBS for securities fraud

The Swiss bank was accused by N.Y. AG Andrew Cuomo of marketing billions of dollars of auction-rate securities as safe even as bank executives were pulling their personal investments from the floundering market last winter when they realized a crisis was brewing. UBS said while some employees exercised "poor judgment," they did not engage in illegal conduct. Cuomo said other banks could face charges. UBS fell 7.1% to 21.

CHEMICALS

Energy, materials costs hurt Dow

The chemical company said Q2 EPS tumbled 24% to 81 cents, missing views by 4 cents. Revenue gained 23% to $16.38 bil, beating forecasts. Dow Chemical DOW was hammered by a 42% surge in energy and raw materials costs that overwhelmed 2 double-digit price hikes unveiled in Q2. Dow cautioned that the global economy remains uncertain. Shares fell 3.3% to 33.11.

TRANSPORTATION

Union Pacific profits, sales beat

The nation's largest freight railroad said Q2 EPS rose 23% to $1.02, a dime better than views. Revenue gained 13% to $4.57 bil, also topping estimates. Union Pacific UNP was boosted by shipments of coal, grain and fertilizer, as well as strong pricing and improved productivity. It sees Q3 EPS of $1.10-$1.20, the midpoint 14 line with views. It expects '08 EPS of $4-$4.20, the midpoint above views of $4.05. Shares dipped 0.2% to 77.18.

Burlington Northern Santa Fe, a railroad operator, said after hours that Q2 earnings rose 12% to $1.34 a share ex items, beating views by 4 cents. Revenue rose 17% to $4.48 bil, just edging past forecasts. Freight volumes fell 3%, but average revenue per carload rose 20%. Shares rose in late trading. Old Dominion Freight Line ODFL, a trucking firm, said Q2 EPS rose 7% to 64 cents, beating views by 4 cents. Sales grew 16% to $417.8 mil, edging views. It backed its '08 EPS outlook of $1.90-$1.95 vs. views of $1.92, saying it's cautious because of challenging conditions. Shares slid 1.3% to 34.85. Southwest tops, growth plan cut

The discount carrier said Q2 EPS fell 36% to 16 cents ex items, topping estimates by 4 cents. Revenue increased 11% to $2.87 bil, above forecasts. Southwest LUV has avoided losses like its rivals by successfully hedging against higher fuel costs. Still, rising energy expenses has spurred growth-oriented Southwest to scaled back its capacity growth plans to 4% or less for '08, and the airline said it might not increase capacity at all next year. Some analysts say the airline's long string of profitable quarters may end with Q3. It fell 6.1% to 14.90.

DIVERSIFIED

3M tops on int'l sales, guides up

The manufacturer of adhesives, medical and safety devices said Q2 EPS increased 13% to $1.39, beating views by 4 cents. Revenue gained 10% to $6.74 bil, above forecasts. 3M MMM said sales were up 32% in Latin America, 18% in Europe and 17% in Asia-Pacific, but only 6% in the U.S. It sees '08 EPS 2 cents over views. Shares rose 0.4% to 71.05

ENERGY

Prices, production lift Occidental

The oil and gas explorer and producer said Q2 EPS surged 136% to $2.78, beating views by 3 cents. Revenue jumped 61% to $7.12 bil, above forecasts. Occidental Petroleum OXY cited increased production, record crude prices and higher natural gas prices. Occidental's realized price for crude oil in Q2 was $110.12 a barrel, nearly double the price a year ago. Shares rose 1.6% to 73.34.

GT Solar Int'l SOLR, a solar equipment maker, fell 11.6% to 14.59 in its first day of trading. The $500 mil offering was the largest IPO in the alternative energy industry this year. Smith Int'l SII, an oil-field services firm, said Q2 EPS increased 20% to 91 cents, beating views by 2 cents. Revenue climbed 18% to $2.49 bil, above views. It fell 3.4% to 76.94.