Corporate Earnings Report: Q3 1998

Strategic Insights -

Third-quarter earnings reports from several major companies revealed significant variations, with some experiencing notable increases and others facing declines. The earnings of National Instruments Corp. surged 12%, driven by a 35% growth in sales in Europe. Conversely, Ultramar Diamond Shamrock Corp.'s earnings slid due to falling oil prices and other factors, resulting in an 11% decrease. Meanwhile, Columbia/HCA Healthcare Corp. reported its strongest earnings since the company became the target of a federal fraud investigation last year, with a 50% increase in earnings.

Key Takeaways:

  • National Instruments Corp. reported a 12% increase in earnings, driven by a 35% growth in sales in Europe, with net income reaching $8.5 million and earnings per share at 25 cents.
  • Ultramar Diamond Shamrock Corp. experienced an 11% decrease in earnings due to falling oil prices and other factors, with net income dropping to $25.8 million and earnings per share declining to 29 cents.
  • Columbia/HCA Healthcare Corp. reported its strongest earnings since the company became the target of a federal fraud investigation, with a 50% increase in earnings, net income reaching $146 million, and earnings per share rising to 22 cents.
  • America Online Inc.'s profit jumped by 242% due to the addition of 1 million subscribers and an increase in advertising revenue, with net income reaching $108.4 million and earnings per share at 39 cents.
  • Estee Lauder Cos. reported a 16% increase in earnings due to strong sales of makeup products and fragrances in the Americas, with net income reaching $71.6 million and earnings per share at 55 cents.
  • Pixar Inc. posted a lower profit, with net income decreasing to $0.867 million, and earnings per share at 2 cents, despite continuing to reap benefits from its 1995 hit movie "Toy Story."

Statistics:

  • National Instruments Corp. reported a 35% growth in sales in Europe.
  • Ultramar Diamond Shamrock Corp.'s revenue remained steady at $2.6 billion in 1998, a decrease from the previous year's $2.7 billion.
  • Columbia/HCA Healthcare Corp. saw a 50% increase in earnings, with net income reaching $146 million and earnings per share rising to 22 cents.
  • America Online Inc.'s revenue surged to $858.1 million in 1998, a 65% increase from the previous year's $521.6 million.
  • Estee Lauder Cos. reported a 15% increase in revenue, reaching $997 million in 1998.
  • Pixar Inc.'s revenue decreased by 51% to $2.5 million in 1998, compared to the previous year's $5.3 million.

Sources:

  • National Instruments Corp. reportede (no date)
  • Ultramar Diamond Shamrock Corp. (no date)
  • Columbia/HCA Healthcare Corp. (no date)
  • America Online Inc. (no date)
  • Estee Lauder Cos. (no date)
  • Pixar Inc. (no date)
  • Column: CORPORATE EARNING (no date)