A Bunch Of Mid Sized Companies Report Earnings

Archer Daniels Midland (ADM), the agriculture company much loved of late because of its exposure to ethanol, reported a blockbuster quarter with all cylinders firing – except for ethanol! (1Q FY Earnings Release)

Revenues were up 36% and net income 9% to 68 cents per share – beating analysts’ estimates of 59 cents.

Shares are up more than 8%.

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Sun Microsystems (JAVA) reported a mix quarter, continuing its return to profitability but showing weak revenue growth (1Q FY Earnings Release).

“Really what we need to see is if this company can ever grow again, and the jury is still out,” said Toni Sacconaghi (subscription required), an analyst with Sanford C. Bernstein.

Sun shares were off 2.5%.

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Beazer Homes (BZH) reported preliminary results, pending an Audit Committee review of its financials for the last 3 years, for its 4th quarter Fiscal Year (4Q FY Preliminary Earnings Release).

It delivered 39% less homes this quarter than a year ago and net new home orders dropped 53%.

The company expects to take a $230 million charge to abandon land option contracts and write down inventory, including joint venture land option contracts and inventory.

Beazer cut 25% of its work force, 650 jobs, in October to save $30 million annually.

It is also suspending its 10 cent quarterly dividend in order to save $16 million annually.

Beazer shares are flat.

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Fellow homebuilder Hovanian (HOV) delivered 19% less homes in the just completed quarter and net new orders fell 10% (4Q FY Preliminary Earnings Release).

However they also added that: “During the month of October, the sales pace in most of the Company’s markets significantly deteriorated when compared to the sales pace of recent months”.

Hovanian shares were flat.

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The nation’s 2nd largest independent mortgage lender, after Countrywide, IndyMac Bancorp (IMB), reported another tough quarter (3Q Earnings Release), but shares were up 8%.

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Telecommunications maker Nortel Networks (NT) also reported earnings.  Revenues were down 8% and Net Income was 5 cents a share (3Q Earnings Release).

Investors liked what they heard and Nortel’s shares are up 12%.