Finances

The Walt Disney Company (DIS) reported its latest quarterly earnings last week. The company reported impressive results.

For the quarter, Disney reported revenue of $9.6 billion. In the same period last year, the company reported revenue of $9.077 billion.

On a net income basis, Disney earned $1.14 billion. On an earnings per share basis, Disney earned $0.63 per share – an increase of 29% from the second quarter of the prior year (up from $0.49).

"With 18% adjusted growth in earnings per share, we're pleased with our second quarter performance," said Robert A. Iger, Disney's Chairman and Chief Executive Officer. "We're incredibly optimistic about our future, given the strength of our core brands, Disney, Pixar, Marvel, ESPN, and ABC, and our extraordinary ability to grow franchises across our businesses, such as The Avengers, which shattered domestic box office records with a $207.1 million opening weekend for a global performance of more than $702 million to date."

Shares of The Walt Disney Company (DIS) closed the week trading at $45.56 per share.

Priceline Can't Name Its Price with Investors

Bargain travel site, Priceline.com Inc. (PCLN) reported their earnings this past week. Investors did not react favorably to the report.

In the first quarter of the year, Priceline reported that gross travel bookings (which includes all costs, taxes and fees) reached $6.7 billion, an increase of 43.9% from the same period last year. The company's total revenue reached $1.0 billion, an increase of 28.2% from a year ago.

Priceline reported net income of $221 million, a 61.2% increase over the prior year. The company's earnings calculate out to $4.28 per share, compared to $2.66 per share for the same quarter last year.

"We believe our international hotel businesses are well positioned for the peak travel season," stated Priceline's Preisdent and Chief Executive Officer, Jeffrey H. Boyd. "The Priceline Group's hotel business booked 46 million room nights in the 1st quarter, up 47% over last year. International gross bookings increased 54%."

The Priceline Group includes websites pricelin.com, rentalcars.com, agoda.com and booking.com.

Priceline.com Inc. (PCLN) closed the week at $675.39 per share.

Retailer Kohl's Reports Earnings

Specialty department store company, Khol's Corporation (KSS), reported their first quarter earnings recently. Kohl's operates 1,134 stores in 49 states.

For the quarter, Kohl's reported net income of $154 million or $0.63 per share. A year ago, the company reported net income of $201 million or $0.69 per share.

Kohl's reported net sales of $4.2 billion, an increase of 1.9% over the same period last year. The increase was largely attributed to new stores as comparable store sales for the quarter increased 0.2%.

"Our first quarter results reflect the implementation of our strategy to initiate lower pricing in order to provide greater value to our customers, stated Kevin Mansell, Kohl's Chairman, President and Chief Executive Officer. "This planned action led to significantly lower gross margins for the quarter. Strong management of expenses allowed us to achieve our earnings goal for the quarter."

On May 9, 2012, Khol's Board of Directors declared a quarterly dividend of $0.32 per share for shareholders of record on June 6, 2012.

Shares of Khol's Corporation (KSS) closed the week at $48.18.

The Dow started the week at 13,038 and closed at 12,821. The NASDAQ started the week at 2,956 and finished at 2,934. The S&P 500 started the week at 1,369 and ended at 1,353.

The results from Greece's elections last week may have left the government in a stalemate, deadlocking Parliament. With at least seven political parties earnings seats, the election left the legislature in its most fractured state since democracy was restored in Greece in 1974.

The election has left the parties earning a plurality with the responsibility of forming a coalition government. Thus far, talks have continued for nearly a week. If the parties are unable to achieve a coalition, new elections could be held as soon as one month from now.

The uncertainty could lead investors to question whether or not Greece will be able to maintain course with respect to its austerity measures. These measures were a critical requirement in the terms of two separate international bailouts that enabled Greece to avoid default on its sovereign debt.

Daniel Gros, with the Center for European Policy Studies in Brussels, commented on the results of the election and their implications. Gros stated, "Athens will have to show that is wants to make the effort to stay in the Eurozone. If it doesn't, then that could spark contagion." Gros was referring to a domino affect of a debt crisis for other European countries like Italy and Spain.

The 10-year Treasury note yield finished the week at 1.75% while the 30-year Treasury note yield finished the week at 3.00%.

Freddie Mac released its latest Primary Mortgage Market Survey (PMMS) last Thursday. The results of the report show that average fixed rate mortgage (FRM) rates hit record lows for the second week in a row.

Freddie Mac reported the 30-year FRM averaged 3.83%, down from 3.84% last week. Last year at this time, the 30-year FRM averaged 4.63%.

Similarly, the 15-year FRM fell to a new record low. For the week, the product averaged 3.05%. Last week the 15-year mortgage averaged 3.07% and last year at this time it averaged 3.82%.

In response to this news, Freddie Mac's Vice President and Chief Economist, Frank Nothaft stated: "Following April's weaker than expected employment report, and the French and Greek election results raising concerns over the stability of the Euro currency zone, long-term Treasury bond yields declined allowing fixed mortgage rates to ease to new all-time record lows this week. The economy added just 115,000 jobs, below the market consensus forecast and less than in March. And although the unemployment rate declined, it reflected fewer people actively seeking jobs."

The money market finished this week at 0.50%. The 1-year CD finished at 0.70%.