Finances

In its latest earnings report, credit card giant Visa (V) reported positive earnings. The company, along with MasterCard, processes transactions on cards issued by banks that bear the processor's logo.

For the first quarter, Visa reported earnings per share of $1.49, up 21% from the same period last year. The increase beat market estimates. The company also reported higher than expected revenue of $2.55 billion, an increase of 14%. On a net basis, Visa reported income of $1 billion for the quarter.

"Overall, our first quarter performance clearly demonstrates the strength and resilience of Visa's global model and our ability to grow even in a challenging global economy," stated Joseph W. Saunders, Visa's Chairman and Chief Executive Officer. Saunders also noted that his company was working through the regulatory changes in the U.S., stating that "it is clear we must carefully navigate a complex and uncertain business environment."

Visa's Chairman also commented on the merchant litigation in the United States, noting he was constrained to get too far into details. He did state his company would be "unwilling to agree to any significant or long-term credit interchange rate reductions."

Visa (V) stock closed the week at $113.69 per share.

Better-than-Expected Earnings Appear Fashionable to Ralph Lauren Shareholders

Ralph Lauren Corp. (RL) reported its earnings for the quarter this past week. In addition, the company raised its Sales and Profit Outlook for the fiscal year.

Net income for the third quarter came in at $169 million or $1.78 on a per-share-basis. This was slightly higher than the $1.72 earnings per share in the same quarter last year.

Ralph Lauren's operating income also increased - by 10% - to $270 million for the quarter. The maker of Polo also reported net revenues of $1.8 billion for the quarter which is a 17% increase over the same period last year. On a nine-month basis, the company reported $5.2 billion in net revenue, an improvement of 24% compared to the same period last year.

Roger N. Farah, the company's President and Chief Operating Officer, commented on the earnings report stating, "Our design-driven culture is delivering highly desirable products across a growing range of lifestyle sensibilities and merchandise categories. We continue to support this innovation with best-in-class marketing, merchandising and distribution that not only distinguishes us in the marketplace, but also deepens our connection with our customers around the world."

In addition to selling its clothing as a wholesaler, Ralph Lauren has 378 company-operated stores. The company opened 7 stores in the quarter while closing 3 others.

Shares of Ralph Lauren Corp. (RL) closed the week at $172.59 per share.

Time Warner Communicates Strong Earnings to Investors

Cable and media company, Time Warner, Inc. (TWX), reported its earnings during the past week. The company's operations include its cable division and networks, film entertainment and magazine publishing.

The company reported its annual and fourth quarter results. For the quarter, Time Warner's revenue increased 5% to $8.2 billion. Additionally, operating income increased to $1.7 billion in the quarter, an improvement of 17% from the same period last year. Earnings per share came in at $0.94 compared to $0.67 in the previous comparable period.

On an annual basis, Time Warner reported revenue of $29 billion, an increase of 8%. Time Warner also reported earnings per share of $2.89, compared to $2.41 in 2010.

Jeff Bewkes, Time Warner Chairman and CEO, stated that his company had an ambitious agenda and had achieved its goals. He stated that for the coming fiscal year, Time Warner would "execute the same strategic priorities that have driven our success in recent years. We're investing aggressively in programming, production and marketing."

Shares of Time Warner Inc. (TWX) closed the week at $37.46.

The Dow started the week at 12,218 and closed at 12,801. The S&P 500 started the week at 1,258 and ended at 1,343. The NASDAQ started the week at 2,619 and finished at 2,904.

Taking to the bond market for the fourth time in the last year, Walt Disney Co. (DIS) raised $1.4 billion. The company continues to take advantage of near record lows in the corporate bond markets.

The company sold $400 million worth of ten-year securities with a 2.55% yield and $1 billion of five-year bonds at 1.25%. According to financial data, that brings Disney's total bond sales to $5.35 billion since May of last year.

Disney's latest bond offerings were very competitive. The five-year bonds were 47 basis points above Treasuries with a similar maturity and the ten-year bonds were 62 basis points above comparable Treasuries. Disney's latest bond offering contained even better terms for the company than the company offered during its November bond offering. In November, the bonds included a 0.875% coupon on three-year notes.

Disney's corporate bond rating is A by Standard & Poor's and Fitch ratings. The company has a similar rating from Moody's.

The 10-year Treasury note yield finished the week at 1.969% while the 30-year Treasury note yield finished the week at 3.12%.

On February 9, 2012, Freddie Mac released its latest Primary Mortgage Market Survey (PMMS). The survey revealed that certain mortgage rates moved slightly higher following positive economic news.

The PMMS survey reported that the 30-year fixed rate mortgage (FRM) averaged 3.87% this week – unchanged from the previous week. Last year at this time, the 30-year FRM averaged 5.05%.

The average for the 15-year FRM edged upward to 3.16%, compared to 3.14 in the previous week. A year ago, the 15-year FRM averaged 4.29%.

"A strong January employment report added upward pressure to most mortgage rates this week. The economy gained 243,000 jobs last month, the largest monthly gain since April 2011, and the unemployment rate fell to 8.3%," stated Frank Nothaft, Freddie Mac's Vice President and Chief Economist. Nothaft added that, "Although historical revisions also added 266,000 even more workers, they caused the labor participation rate to fall to 63.7%, representing the smallest share since May 1983, which offset some of the rise in mortgage rates."

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