Among the companies reporting on Tuesday were JetBlue Airways Corp. (NASDAQ: JBLU) and Burlington Northern Santa Fe Corp. (NYSE: BNI).
JetBlue reported a narrower-than-expected loss in the fourth quarter, and its first full-year profit in three years. It also announced that it's negotiating a deal with investor Deutsche Lufthansa AG.
JetBlue lost $4 million, or 2 cents a share, in the quarter ending December 31. It posted a profit of $17 million, or 10 cents a share, in the same quarter of 2006. An increase in traffic and operational improvements helped offset rising fuel costs. Revenue rose 16.6% to $739 million. Analysts surveyed by Thomson Financial had expected a loss of 5 cents a share on revenue of $731 million.
For the full year, JetBlue earned $18 million, or 10 cents a share, versus a loss of $1 million, break-even on a per-share basis, in 2006. Revenue jumped 20.2 percent to $2.84 billion. Wall Street had expected a 2007 profit of 7 cents per share on revenue of $2.83 billion.
Shares surged 20.24%, or $1.00, to close at $5.94. Shares had fallen to a 52-week low of $4.30 last week.
Burlington Northern's fourth-quarter earnings fell as higher fuel costs dragged down record freight revenue. The company reported earnings of $517 million, or $1.46 per share, in the fourth quarter, compared to a profit of $519 million or $1.42 per share a year ago, when more shares were outstanding. Revenue climbed 9% to $4.24 billion, on strong demand for shipping coal and agricultural goods. Analysts polled by Thomson Financial had expected fourth-quarter earnings of $1.39 per share on revenue of $4.06 billion.
For all of 2007, Burlington Northern earned $1.83 billion, or $5.10 per share, on revenue of $15.80 billion. Analysts had forecast earnings of $5.15 per share. In 2006, the company earned $1.89 billion on $14.99 billion revenue.
The company predicted that earnings per share would grow by double digits in 2008, partly due to reduced spending on expansion, but also warned that demand could shrink if the economy slows further.
Shares rose 1.8% on Tuesday to close at $84.65.
See also:
Yahoo's Yang warns of 2008 'headwinds'; shares slump
Countrywide Financial (CFC) deal "a go" despite big loss
Occidental Petroleum (OXY) trades higher on strong earnings
Before the bell: Futures higher ahead of housing, jobless data
Nuclear power is on the comeback trail
Apple backs AT&T in continuing spat with Verizon
