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Wednesday, October 15, 2008
Marshall & Ilsley's Third-quarter Profit Falls
MarketWatch
MarketWatch Pulse
NEW YORK -- Marshall & Ilsley Corp. said Wednesday that it earned $83.1 million, or 32 cents a share, in the third quarter, compared to a profit of $219.9 million, or 83 cents a share, in the year-ago period. Analysts polled by FactSet Research had, on average, expected the firm to report earnings of 23 cents a share. The Milwaukee, Wis.-based company said the housing market's ongoing deterioration has continued to put stress on its construction and development portfolio.
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Most folks judge the health of a business by the revenue that comes in through sales. But not all revenue is equal. Companies can grow their sales by buying other companies, which means you don't get a clear view of how the real sales trends are moving.
So, many analysts, particularly those who look at retail, try to gauge what¿s known as "organic" growth, by looking at same-store sales. These are sales only at outlets open more than a year, so the metric can exclude any sales jump that comes from opening new locations. Retailers release same-store sales (which are frequently called "comps" since they're a true comparison from the previous period) every month.
Retail, incidentally, isn't the only industry to look at same-store sales. Hospital companies, also use the metric, to gauge how existing hospitals are performing compared to ones they just built or acquired.






