Not long after Steel Dynamics (NASDAQ:STLD) reported a stellar quarter, surprising analysts, Nucor Corp. (NYSE:NUE) has followed it up with a solid quarter as well, with profits soaring by about five times what they were in the same quarter last year.
Net earnings were $159.8 million, or 50 cents a share, compared with a profit of $31 million, or 10 cents a share, last year.
Sales climbed 32 percent to $4.83 billion, due to a 22 percent increase in the average sales price per ton and a 9 percent increase in shipments.
Analysts were looking for earnings of 36 cents a share and revenue of $4.47 billion.
The company said, "Profitability improved significantly as we progressed through the quarter, as utilization rates increased and as price increases for steel mill products caught up with higher raw material costs. Although we are seeing some signs of market weakness that may impact results near the end of the second quarter, we expect second quarter results to be an improvement over the first quarter. We continue to see slow, steady improvement in real demand in certain end markets.
"This is most evident in products sold to the manufacturing/industrial sector, including special bar quality products, sheet and plate. We are keeping a watchful eye on imports as any measurable increase in import levels will be a threat to current market stability, particularly in the sheet markets. The most challenging markets for our products continue to be those associated with residential and non-residential construction. We will provide quantitative earnings guidance later in the quarter."
Markets most under pressure continue to be those in relationship to residential and non-residential construction.
Nucor was trading at $46.23, gaining $0.25, or 0.54 percent, as of 12:30 PM EDT.
Showing posts with label Earnings. Show all posts
Showing posts with label Earnings. Show all posts
Thursday, April 21, 2011
General Electric's (GE) Earnings Blow Past Estimates
General Electric Co. (NYSE:GE) reported earnings that soared past analysts' estimates, as the company generated an increase in earnings of 77 percent in the first quarter.
GE reported a first-quarter profit of $3.43 billion, or 31 cents a share, up from $1.95 billion, or 17 cents a share, last year in the same quarter. The company's operating earnings, which exclude discontinued operations and other items such as nonoperating pension costs, climbed to 33 cents a share from 20 cents. Revenue jumped 6.2 percent to $38.45 billion.
Analysts had projected earnings of 28 cents a share on $34.64 billion in revenue.
GE Capital, the company's largest segment by revenue, saw its top line rise 3.3 percent while profit more than tripled. GE's energy infrastructure and aviation units saw their revenue rise 9.2 percent and 4.9 percent.
GE raised its quarterly dividend a penney to 15 cents.
General Electric was trading at $19.97, falling $0.43, or 2.13 percent, as of 12:21 PM EDT.
GE reported a first-quarter profit of $3.43 billion, or 31 cents a share, up from $1.95 billion, or 17 cents a share, last year in the same quarter. The company's operating earnings, which exclude discontinued operations and other items such as nonoperating pension costs, climbed to 33 cents a share from 20 cents. Revenue jumped 6.2 percent to $38.45 billion.
Analysts had projected earnings of 28 cents a share on $34.64 billion in revenue.
GE Capital, the company's largest segment by revenue, saw its top line rise 3.3 percent while profit more than tripled. GE's energy infrastructure and aviation units saw their revenue rise 9.2 percent and 4.9 percent.
GE raised its quarterly dividend a penney to 15 cents.
General Electric was trading at $19.97, falling $0.43, or 2.13 percent, as of 12:21 PM EDT.
Wednesday, April 20, 2011
EMC (EMC) Driven by International Markets
EMC (NYSE:EMC) produced record results in the first quarter, driven by expansion of its international markets and demand for data-storage products.
As the cloud computing trend appears sustainable and expected to grow for years, EMC is positioned to take advantage of that as efficient storage is looked for by companies.
EMC reported a first-quarter profit of $477.1 million, or 21 cents a share, up from $372.7 million, or 17 cents a share, last year in the same quarter. Minus items, earnings jumped to 31 cents from 26 cents, meeting expectations from analysts polled by Thomson Reuters.
Revenue climbed 18% to $4.61 billion, beating analysts' projections of $4.51 billion.
Operating margin jumped to 14.6% from 12.9% amid stronger revenue from the company's Europe, Middle East and Africa region as well as its Asia Pacific region.
Revenue from the U.S., still EMC's biggest market, increased 12 percent to $2.4 billion. Sales in the Europe, Middle East and Africa region rose 21 percent, while Asia-Pacific revenues were up 43 percent.
EMC was trading at $27.74, gaining $1.02, or 3.82 percent, as of 12:35 PM EDT.
As the cloud computing trend appears sustainable and expected to grow for years, EMC is positioned to take advantage of that as efficient storage is looked for by companies.
EMC reported a first-quarter profit of $477.1 million, or 21 cents a share, up from $372.7 million, or 17 cents a share, last year in the same quarter. Minus items, earnings jumped to 31 cents from 26 cents, meeting expectations from analysts polled by Thomson Reuters.
Revenue climbed 18% to $4.61 billion, beating analysts' projections of $4.51 billion.
Operating margin jumped to 14.6% from 12.9% amid stronger revenue from the company's Europe, Middle East and Africa region as well as its Asia Pacific region.
Revenue from the U.S., still EMC's biggest market, increased 12 percent to $2.4 billion. Sales in the Europe, Middle East and Africa region rose 21 percent, while Asia-Pacific revenues were up 43 percent.
EMC was trading at $27.74, gaining $1.02, or 3.82 percent, as of 12:35 PM EDT.
Wells Fargo (WFC) Can't Overcome Low Mortgage Demand, Revenue Drops
Revenue for Wells Fargo & Co. (NYSE:WFC) in the latest quarter dropped as fees generated from mortgages fell and loan demand faltered. Revenue was down to $20.3 billion, a 5.2 percent decline.
The bank was able to generate a profit though, as its quarterly profit rose to $3.76 billion, or 67 cents a share, up from $2.55 billion, or 45 cents a share, last year in the same quarter.
On average, analysts surveyed by FactSet Research looked for the company to earn 66 cents a share on $21.2 billion of revenue.
Overall loans fell 4 percent to $751.2 billion from last year.
Wells was able to grow deposits for the quarter. On average, Wells Fargo said checking and savings deposit accounts grew 9 percent from 2010’s first quarter.
Chairman and Chief Executive John Stumpf in a statement, “As the economy continued an uneven recovery, our business customers increased borrowing and utilization of credit lines — a hopeful sign that businesses are once again investing for growth.”
Net charge-offs for bad loans in the quarter were $3.21 billion, or 1.73 percent of all loans, compared with $3.84 billion, or 2 percent of loans, at the end of the fourth quarter. Nonperforming real estate and commercial assets were down 5 percent to $30.6 billion from the end of 2010.
Wells Fargo was trading at $28.71, falling $1.36, or 4.52 percents, as of 12:04 PM EDT.
The bank was able to generate a profit though, as its quarterly profit rose to $3.76 billion, or 67 cents a share, up from $2.55 billion, or 45 cents a share, last year in the same quarter.
On average, analysts surveyed by FactSet Research looked for the company to earn 66 cents a share on $21.2 billion of revenue.
Overall loans fell 4 percent to $751.2 billion from last year.
Wells was able to grow deposits for the quarter. On average, Wells Fargo said checking and savings deposit accounts grew 9 percent from 2010’s first quarter.
Chairman and Chief Executive John Stumpf in a statement, “As the economy continued an uneven recovery, our business customers increased borrowing and utilization of credit lines — a hopeful sign that businesses are once again investing for growth.”
Net charge-offs for bad loans in the quarter were $3.21 billion, or 1.73 percent of all loans, compared with $3.84 billion, or 2 percent of loans, at the end of the fourth quarter. Nonperforming real estate and commercial assets were down 5 percent to $30.6 billion from the end of 2010.
Wells Fargo was trading at $28.71, falling $1.36, or 4.52 percents, as of 12:04 PM EDT.
Freeport-McMoRan (FCX) Driven Up By Metals
Freeport-McMoRan Copper and Gold (NYSE:FCX) had a blowout quarter led by higher copper prices and production, along with better-than-expected sales of molybdenum.
The surge in gold prices hasn't hurt the diversified miner either.
Freeport generated a profit of $1.5 billion, or $1.57 a share, up from $945 million, or $1 a share, last year in the same quarter, adjusted for the stock split. Revenue jumped 31% to $5.71 billion. Analysts polled by Thomson Reuters had estimated a $1.26profit on $5.3 billion in revenue.
Copper production grew 2.3% while gold production rose 3.8%. Molybdenum output increased about 18 percent.
It sold 926 million pounds of copper, more than the 840 million pounds it had projected.
Prices for gold and copper both rose 26 percent, while molybdenum prices increased 20percent. It also sold 20 million pounds of molybdenum, surpassing the 17 million pounds projected.
Freeport has also been successfully reducing it debt load, which had reached about $17.5 billion after the acquisition of Phelps Dodge. It has been cut to $3.7 billion.
Freeport was trading at $53.82, gaining $2.10, or 4.06 percent, as of 11:52 AM EDT.
The surge in gold prices hasn't hurt the diversified miner either.
Freeport generated a profit of $1.5 billion, or $1.57 a share, up from $945 million, or $1 a share, last year in the same quarter, adjusted for the stock split. Revenue jumped 31% to $5.71 billion. Analysts polled by Thomson Reuters had estimated a $1.26profit on $5.3 billion in revenue.
Copper production grew 2.3% while gold production rose 3.8%. Molybdenum output increased about 18 percent.
It sold 926 million pounds of copper, more than the 840 million pounds it had projected.
Prices for gold and copper both rose 26 percent, while molybdenum prices increased 20percent. It also sold 20 million pounds of molybdenum, surpassing the 17 million pounds projected.
Freeport has also been successfully reducing it debt load, which had reached about $17.5 billion after the acquisition of Phelps Dodge. It has been cut to $3.7 billion.
Freeport was trading at $53.82, gaining $2.10, or 4.06 percent, as of 11:52 AM EDT.
Intel (INTC) Soars as Earnings Exceed Expectations
Intel's (NASDAQ:INTC) earnings beat expectations in the first quarter, driven by increase business demand for business computers, which also generated higher profits.
That was important because of some of Intel's competitors weren't able to make up soft PC sales with stronger business revenue.
Guidance from Intel was also impressive, as shares of the company shot up in after hours trading.
Intel's net income was $3.16 billion, or 56 cents a share, beating the 46 cents a share analysts polled by FactSet were looking for. Last year in the same quarter Intel earned $2.44 billion, or 43 cents a share.
Revenue was $12.8 billion, a 25 percent increase from $10.3 billion a year ago and above the $11.6 billion analysts estimated.
The revenue projection was higher than expected. Intel predicted second quarter revenue of $12.3 billion to $13.3 billion. Analysts expected nearly $11.9 billion, according to FactSet.
Intel closed Tuesday at $19.86, gaining $0.24. or 1.22 percent. After hours it was trading at $20.77, up $0.91, or 4.58 percent.
That was important because of some of Intel's competitors weren't able to make up soft PC sales with stronger business revenue.
Guidance from Intel was also impressive, as shares of the company shot up in after hours trading.
Intel's net income was $3.16 billion, or 56 cents a share, beating the 46 cents a share analysts polled by FactSet were looking for. Last year in the same quarter Intel earned $2.44 billion, or 43 cents a share.
Revenue was $12.8 billion, a 25 percent increase from $10.3 billion a year ago and above the $11.6 billion analysts estimated.
The revenue projection was higher than expected. Intel predicted second quarter revenue of $12.3 billion to $13.3 billion. Analysts expected nearly $11.9 billion, according to FactSet.
Intel closed Tuesday at $19.86, gaining $0.24. or 1.22 percent. After hours it was trading at $20.77, up $0.91, or 4.58 percent.
Yahoo (YHOO) Beats Estimates, But Search Still Down
Quarterly earnings for Yahoo! (NASDAQ:YHOO) beat analyst estimates, and were generated by the core business of the company - display advertising.
As to its search partnership with Microsoft (NASDAQ:MSFT), it remains a work in progress and is taking longer to pay off than originally thought for Yahoo.
Yahoo earned $223 million in net income, or 17 cents a share, in the quarter ended March 31 compared with $310 million, or 22 cents a share, in the same quarter last year.
Minus charges connected to investments in Japan, Yahoo earned 19 cents a share, easily topping the 16 cent average of analysts expected.
Executives at Yahoo said the company was continuing to make progress on efforts to expand into the fast-growing mobile Internet market, and to boost the amount of video advertising on the site.
Net revenue, which excludes fees paid to partner websites, was approximately $1.064 billion in the first quarter, just beating the $1.055 billion average of analyst expectations but missing by 6 percent from $1.13 billion a year earlier.
Yahoo! closed down Tuesday at $16.12, dropping $0.22, or 1.38 percent. in after hours trading it climbed to $16.68, gaining $0.56, or 3.47 percent.
As to its search partnership with Microsoft (NASDAQ:MSFT), it remains a work in progress and is taking longer to pay off than originally thought for Yahoo.
Yahoo earned $223 million in net income, or 17 cents a share, in the quarter ended March 31 compared with $310 million, or 22 cents a share, in the same quarter last year.
Minus charges connected to investments in Japan, Yahoo earned 19 cents a share, easily topping the 16 cent average of analysts expected.
Executives at Yahoo said the company was continuing to make progress on efforts to expand into the fast-growing mobile Internet market, and to boost the amount of video advertising on the site.
Net revenue, which excludes fees paid to partner websites, was approximately $1.064 billion in the first quarter, just beating the $1.055 billion average of analyst expectations but missing by 6 percent from $1.13 billion a year earlier.
Yahoo! closed down Tuesday at $16.12, dropping $0.22, or 1.38 percent. in after hours trading it climbed to $16.68, gaining $0.56, or 3.47 percent.
Tuesday, April 19, 2011
Texas Instruments (TXN) Misses on Net Income
Texas Instruments (NYSE:TXN) traded lower in after hours action as the company on average missed analysts' expectations for net income for its latest quarter.
Net income increased during the quarter to $666 million, or 55 cents a share, versus $658 million, or 52 cents a share in the same quarter last year. Analysts had been looking for an average of 57 cents a share for the quarter.
Revenue for the quarter jumped from $3.2 billion to $3.39 billion year-over-year.
Rich Templeton, TI chairman, president and chief executive officer, said, “2011 started strong, with customer demand in January and February tracking our expectations for a first quarter of above-seasonal growth. But the Japan earthquake that’s taken such a heartbreaking human toll in the country also disrupted local demand starting in mid-March and impaired operations at two of our factories there. This impact and substantially weaker demand for Wireless baseband chips resulted in revenue that was below the middle of our expected range. The lower revenue combined with expenses resulting from the earthquake affected earnings per share. New orders, however, were strong through the quarter, indicative of the underlying strength in our markets.”
Texas Instruments closed Monday at $34.79, falling $0.20, or 0.57 percent. After hours it fell to $34.20, down $0.50, or 1.44 percent.
Net income increased during the quarter to $666 million, or 55 cents a share, versus $658 million, or 52 cents a share in the same quarter last year. Analysts had been looking for an average of 57 cents a share for the quarter.
Revenue for the quarter jumped from $3.2 billion to $3.39 billion year-over-year.
Rich Templeton, TI chairman, president and chief executive officer, said, “2011 started strong, with customer demand in January and February tracking our expectations for a first quarter of above-seasonal growth. But the Japan earthquake that’s taken such a heartbreaking human toll in the country also disrupted local demand starting in mid-March and impaired operations at two of our factories there. This impact and substantially weaker demand for Wireless baseband chips resulted in revenue that was below the middle of our expected range. The lower revenue combined with expenses resulting from the earthquake affected earnings per share. New orders, however, were strong through the quarter, indicative of the underlying strength in our markets.”
Texas Instruments closed Monday at $34.79, falling $0.20, or 0.57 percent. After hours it fell to $34.20, down $0.50, or 1.44 percent.
Monday, April 18, 2011
Citigroup (C) Q1 Earnings, Revenue Drop
While first-quarter revenue for Citigroup (NYSE:C) fell as expected, results were better-than-expected.
The giant bank reported first quarter EPS of $0.10 a share, 1 cent better than the consensus of $0.09. Net income was $3.0 billion, compared to $1.3 billion in the fourth quarter of 2010 and $4.4 billion in the first quarter last year.
CEO Vikram Pandit said, "After a full year of profitability, we continue to make progress in 2011 by executing our strategy with discipline. Citi Holdings losses continued to decrease; we are investing in our core businesses in Citicorp; our capital strength improved; and the mix of revenues reflects the diversity of our businesses and our depth in both the emerging and developed markets."
Revenue plunged to $19.7 billion, a 22 percent decline, far below consensus of $20.55 billion. From last year the drop was 11 percent. The decline was most the result of negative CVA and lower revenues in Fixed Income Markets and North America Regional Consumer Banking.
For the seventh consecutive quarter Citigroup experienced net credit losses, which fell to $6.3 billion. For the year net credit losses are down 25 percent so far.
Citigroup was trading at $4.47, gaining $0.04, or 1.02 percent.
The giant bank reported first quarter EPS of $0.10 a share, 1 cent better than the consensus of $0.09. Net income was $3.0 billion, compared to $1.3 billion in the fourth quarter of 2010 and $4.4 billion in the first quarter last year.
CEO Vikram Pandit said, "After a full year of profitability, we continue to make progress in 2011 by executing our strategy with discipline. Citi Holdings losses continued to decrease; we are investing in our core businesses in Citicorp; our capital strength improved; and the mix of revenues reflects the diversity of our businesses and our depth in both the emerging and developed markets."
Revenue plunged to $19.7 billion, a 22 percent decline, far below consensus of $20.55 billion. From last year the drop was 11 percent. The decline was most the result of negative CVA and lower revenues in Fixed Income Markets and North America Regional Consumer Banking.
For the seventh consecutive quarter Citigroup experienced net credit losses, which fell to $6.3 billion. For the year net credit losses are down 25 percent so far.
Citigroup was trading at $4.47, gaining $0.04, or 1.02 percent.
Halliburton's (HAL) Earnings, Revenue Soar as Oil Prices Surge
Earnings for Halliburton (NYSE:HAL) soared in the first quarter, according to its latest report, as oil prices jumped and drilling in North America increased.
In the first quarter Halliburton generated earnings of $511 million, or 56 cents a share, easily surpassing last year's earnings of $206 million or 23 cents a share.
Dave Lesar, Halliburton chairman, president and CEO, said, "North America delivered strong performance as margins progressed due to increased activity while Eastern Hemisphere operating income was significantly impacted by geopolitical events in North Africa, delays in Iraq, and typical seasonality.”
Revenue for the quarter jumped to $5.28 billion, beating the market consensus of $4.9 billion, a 40 percent increase.
Minus one-time items, Halliburton posted earnings of 61 cents a share, beating analysts' estimates of 58 cents a share.
After unrest in Egypt slowed down production, the company said production levels are returning to former output.
Halliburton was trading at $46.96, up $0.14, or 0.30 percent, as of 11:43 AM EDT.
In the first quarter Halliburton generated earnings of $511 million, or 56 cents a share, easily surpassing last year's earnings of $206 million or 23 cents a share.
Dave Lesar, Halliburton chairman, president and CEO, said, "North America delivered strong performance as margins progressed due to increased activity while Eastern Hemisphere operating income was significantly impacted by geopolitical events in North Africa, delays in Iraq, and typical seasonality.”
Revenue for the quarter jumped to $5.28 billion, beating the market consensus of $4.9 billion, a 40 percent increase.
Minus one-time items, Halliburton posted earnings of 61 cents a share, beating analysts' estimates of 58 cents a share.
After unrest in Egypt slowed down production, the company said production levels are returning to former output.
Halliburton was trading at $46.96, up $0.14, or 0.30 percent, as of 11:43 AM EDT.
Friday, April 15, 2011
Nokia (NOK) Gets Bearish Earnings Preview from Cowen
Cowen & Co. analyst Matthew Hoffman maintained his "Underperform" rating on Nokia (NYSE:NOK), as the company moves towards its earnings report on April 21.
Hoffman said in a note, “The company is less than 3 months into a multi-year software and strategic transition that has (1) exacerbated competitive pressures in the upper tiers of its portfolio, (2) left it without a clear tablet strategy at a crucial time in the market’s development, and (3) not provided investors with sufficient details on the potential cost savings (especially in R&D) from the Microsoft (MSFT) tie-up.”
“The first quarter of 2011 is likely to be broadly in-line with EUR 10.0B/EUR 0.09 consensus, but we remain below 2Q11 consensus on the top and bottom lines (by EUR 320MM/EUR 0.01). A substantial 2H11 decline in Devices would not surprise us as OS/product transition challenges mount.”
Nokia was trading at $8.68, down $0.01, or 0.06 percent, as of 12:57 PM EDT.
Hoffman said in a note, “The company is less than 3 months into a multi-year software and strategic transition that has (1) exacerbated competitive pressures in the upper tiers of its portfolio, (2) left it without a clear tablet strategy at a crucial time in the market’s development, and (3) not provided investors with sufficient details on the potential cost savings (especially in R&D) from the Microsoft (MSFT) tie-up.”
“The first quarter of 2011 is likely to be broadly in-line with EUR 10.0B/EUR 0.09 consensus, but we remain below 2Q11 consensus on the top and bottom lines (by EUR 320MM/EUR 0.01). A substantial 2H11 decline in Devices would not surprise us as OS/product transition challenges mount.”
Nokia was trading at $8.68, down $0.01, or 0.06 percent, as of 12:57 PM EDT.
Bank of America's (BAC) Profits Plunge on Foreclosure Delays
Foreclosure delays in the first quarter resulted in Bank of America's (NYSE:BAC) profits plunging, as the mortgage business weighed the company down.
The home loan business ended up losing over $2.39 billion as expenses climbed and revenue dropped.
This is apparently the major reason why Bank of America wasn't allowed to increase its dividends when it make the request.
The giant bank did earn $2 billion in the quarter, the first profit the company made since the second quarter of 2010. Much of that was the results generated from the Merrill Lynch brokerage unit.
Bank of America posted first-quarter net income of $2.0 billion, or 17 cents a share, falling from $3.2 billion, or 28 cents a share, in the same quarter a year ago.
Analysts on average had estimated earnings of 27 cents a share.
The loss in its residential mortgage unit of more than $2.39 billion compared with a loss of $2.07 billion last year in the same quarter.
Overall expenses jumped in the mortgage business, but write-offs of bad loans actually fell: Net charge-offs of residential mortgages were $905 million, compared with $1.07 billion in the same quarter in 2010.
Bank of America was trading at $13.02, dropping $0.11, or 0.88 percent, as of 12:12 PM EDT.
The home loan business ended up losing over $2.39 billion as expenses climbed and revenue dropped.
This is apparently the major reason why Bank of America wasn't allowed to increase its dividends when it make the request.
The giant bank did earn $2 billion in the quarter, the first profit the company made since the second quarter of 2010. Much of that was the results generated from the Merrill Lynch brokerage unit.
Bank of America posted first-quarter net income of $2.0 billion, or 17 cents a share, falling from $3.2 billion, or 28 cents a share, in the same quarter a year ago.
Analysts on average had estimated earnings of 27 cents a share.
The loss in its residential mortgage unit of more than $2.39 billion compared with a loss of $2.07 billion last year in the same quarter.
Overall expenses jumped in the mortgage business, but write-offs of bad loans actually fell: Net charge-offs of residential mortgages were $905 million, compared with $1.07 billion in the same quarter in 2010.
Bank of America was trading at $13.02, dropping $0.11, or 0.88 percent, as of 12:12 PM EDT.
Google's (GOOG) Spending Increases Concerns Over New CEO Page
Unfortunately for Google (NASDAQ:GOOG), what would have been considered an extraordinary quarter under normal conditions, with net revenue increasing by 29 percent, it was overshadowed by the enormous surge in spending of 54 percent.
With new CEO Larry Page coming on board and concerns over his propensity to pursue dubious ideas, at best, this reinforces to many concerns over being mature enough and capable enough to profitably run Google.
While it's good to have a long-term outlook on a company, there are far too many generalizations at this time from Google management to generate concerns over whether or not they really have a specific plan and strategy in place other than shrinking the bureaucracy at the company and some undefined ideas from the incoming "visionary."
It reminds shareholders and investors of why Eric Schmidt had been brought on to run the company in the first place, which was to put an adult in charge.
Other than plans to hire over 6,000 new employees in 2011 and boosting the salaries of existing workers by close to 10 percent, there hasn't much concrete that the company has announced they're going to plow the money into.
As to clarity, the comment by Chief Financial Officer Patrick Pichette saying, "The discipline of the company has not changed; we're just really bullish on our prospects. I can tell you every element of the company (expenses from real estate to food) is scrubbed and scrutinized," means almost nothing.
They're bullish so they're spending, and they've allegedly thoroughly went over part of the company as far as expenses go.
To go over the expenses of any company is standard and responsible business practice. To announce it is largely irrelevant and meaningless. And the bullish comment is something every single CEO or CFO of a company would say.
As to specifics, there aren't any, and that, more than anything, is disconcerting to shareholders. To say the spending is for the purpose of pursuing multibillion business opportunities, as Google executives have asserted, again, says absolutely nothing.
There appears to be the increasing suspicion that Page isn't much interested in managing margins and earnings, but in expanding into new business areas and topline growth.
Net income for the quarter came in at $2.3 billion, or $7.04 a share. Excluding items, earnings were $8.08 a share, missing analysts expectations of $8.10 a share.
Page and Google now have a huge credibility problem, and the company could begin to be punished significantly if more details aren't released soon and what appears to be a cloud of secrecy surrounds the company.
Only performance will change this, and shareholders will be the final judges as to whether or not they have the patience to wait for Page, or if they feel they can trust him at all.
Google closed Thursday at $578.51, gaining $2.23, or 0.39 percent. After hours the company plunged $31.91 to $546.60, down 5.52 percent.
With new CEO Larry Page coming on board and concerns over his propensity to pursue dubious ideas, at best, this reinforces to many concerns over being mature enough and capable enough to profitably run Google.
While it's good to have a long-term outlook on a company, there are far too many generalizations at this time from Google management to generate concerns over whether or not they really have a specific plan and strategy in place other than shrinking the bureaucracy at the company and some undefined ideas from the incoming "visionary."
It reminds shareholders and investors of why Eric Schmidt had been brought on to run the company in the first place, which was to put an adult in charge.
Other than plans to hire over 6,000 new employees in 2011 and boosting the salaries of existing workers by close to 10 percent, there hasn't much concrete that the company has announced they're going to plow the money into.
As to clarity, the comment by Chief Financial Officer Patrick Pichette saying, "The discipline of the company has not changed; we're just really bullish on our prospects. I can tell you every element of the company (expenses from real estate to food) is scrubbed and scrutinized," means almost nothing.
They're bullish so they're spending, and they've allegedly thoroughly went over part of the company as far as expenses go.
To go over the expenses of any company is standard and responsible business practice. To announce it is largely irrelevant and meaningless. And the bullish comment is something every single CEO or CFO of a company would say.
As to specifics, there aren't any, and that, more than anything, is disconcerting to shareholders. To say the spending is for the purpose of pursuing multibillion business opportunities, as Google executives have asserted, again, says absolutely nothing.
There appears to be the increasing suspicion that Page isn't much interested in managing margins and earnings, but in expanding into new business areas and topline growth.
Net income for the quarter came in at $2.3 billion, or $7.04 a share. Excluding items, earnings were $8.08 a share, missing analysts expectations of $8.10 a share.
Page and Google now have a huge credibility problem, and the company could begin to be punished significantly if more details aren't released soon and what appears to be a cloud of secrecy surrounds the company.
Only performance will change this, and shareholders will be the final judges as to whether or not they have the patience to wait for Page, or if they feel they can trust him at all.
Google closed Thursday at $578.51, gaining $2.23, or 0.39 percent. After hours the company plunged $31.91 to $546.60, down 5.52 percent.
Wednesday, April 13, 2011
Riverbed (RVBD) Pre-Announces Solid Earnings
Riverbed Technology (NASDAQ:RVBD) pre-announced earnings today, saying it expects earnings to be on the upside.
Earnings for the first quarter are expected to coming in at about 19 to 20 cents a share, beating former guidance of 18 cents a share.
Revenue for the quarter, according to Riverbed, should be at about $163-$164 million, versus the $159-$161 million it had estimated earlier.
Riverbed was trading at $35.03, gaining $4.11, or 13.29 percent, as of 1:15 PM EDT.
Earnings for the first quarter are expected to coming in at about 19 to 20 cents a share, beating former guidance of 18 cents a share.
Revenue for the quarter, according to Riverbed, should be at about $163-$164 million, versus the $159-$161 million it had estimated earlier.
Riverbed was trading at $35.03, gaining $4.11, or 13.29 percent, as of 1:15 PM EDT.
JPMorgan (JPM) Led by Investment Banking
JPMorgan Chase & Co. (NYSE:JPM) turned in a solid performance in the first quarter, which where bolsters by strong results in the investment banking unit.
Net income jumped 67 percent to $5.6 billion, driven by a significantly lower provision for credit losses, partially offset by lower net revenue.
The company reported earnings per share of $1.28, which was $0.12 over the consensus of $1.16. Revenue for the quarter fell 8 percent to $25.8 billion against the consensus projections of $25.48 billion.
Jamie Dimon, Chairman and Chief Executive Officer, said, "The Firm’s results reflected a strong quarter across the Investment Bank and solid performance from Card Services, Commercial Banking, Treasury & Securities Services, and Asset Management. These results partially benefited from improved credit trends in our credit card and wholesale businesses."
For the quarter JPMorgan generated $8.23 billion in revenue in its investment banking unit, slightly down from the $8.32 billion generated last year, but up from the $6.21 billion in the fourth quarter.
Net income from investment bank dropped from $2.47 billion in the same quarter last year to $2.37 billion in the first quarter.
Net revenue for retail financial services was $6.3 billion, down by $1.5 billion from last year. Net interest income fell $394 million to $4.6 billion, the result of lower loan balances because of narrower loan spreads and portfolio runoff. Revenue not related to interest dropped 40 percent to $1.6 billion, as mortgage fees and related income were lower.
A lower provision for credit losses, partially offset by lower net revenue, resulted in card services net income jumping from a loss of $303 million last year in the same quarter to $1.3 billion this year.
A reduction in the provision for credit losses and higher net revenue gave a boost to the commercial banking unit, which generated a net income of $546 million, an increase of $156 million over the first quarter of 2010. Revenue rose to $1.5 billion, a gain of $100 million over last year.
Net income for Treasury and Securities services rose $37 million to $316 million, with net revenue up $84 million to $1.8 billion.
Asset management net income increased $74 million to $466 million. These results reflected higher net revenue and a lower provision for credit losses, mostly offset by higher noninterest expense. Net revenue was up $275 million, ending at $2.4 billion for the quarter.
Net income for corporate and private equity soared from $228 million last year to $722 million in 2011.
JPMorgan was trading at $47.30, gaining $0.66, or 1.42 percent, as of 9:39 AM EDT.
Net income jumped 67 percent to $5.6 billion, driven by a significantly lower provision for credit losses, partially offset by lower net revenue.
The company reported earnings per share of $1.28, which was $0.12 over the consensus of $1.16. Revenue for the quarter fell 8 percent to $25.8 billion against the consensus projections of $25.48 billion.
Jamie Dimon, Chairman and Chief Executive Officer, said, "The Firm’s results reflected a strong quarter across the Investment Bank and solid performance from Card Services, Commercial Banking, Treasury & Securities Services, and Asset Management. These results partially benefited from improved credit trends in our credit card and wholesale businesses."
For the quarter JPMorgan generated $8.23 billion in revenue in its investment banking unit, slightly down from the $8.32 billion generated last year, but up from the $6.21 billion in the fourth quarter.
Net income from investment bank dropped from $2.47 billion in the same quarter last year to $2.37 billion in the first quarter.
Net revenue for retail financial services was $6.3 billion, down by $1.5 billion from last year. Net interest income fell $394 million to $4.6 billion, the result of lower loan balances because of narrower loan spreads and portfolio runoff. Revenue not related to interest dropped 40 percent to $1.6 billion, as mortgage fees and related income were lower.
A lower provision for credit losses, partially offset by lower net revenue, resulted in card services net income jumping from a loss of $303 million last year in the same quarter to $1.3 billion this year.
A reduction in the provision for credit losses and higher net revenue gave a boost to the commercial banking unit, which generated a net income of $546 million, an increase of $156 million over the first quarter of 2010. Revenue rose to $1.5 billion, a gain of $100 million over last year.
Net income for Treasury and Securities services rose $37 million to $316 million, with net revenue up $84 million to $1.8 billion.
Asset management net income increased $74 million to $466 million. These results reflected higher net revenue and a lower provision for credit losses, mostly offset by higher noninterest expense. Net revenue was up $275 million, ending at $2.4 billion for the quarter.
Net income for corporate and private equity soared from $228 million last year to $722 million in 2011.
JPMorgan was trading at $47.30, gaining $0.66, or 1.42 percent, as of 9:39 AM EDT.
Friday, April 8, 2011
Alcoa (NYSE:AA): An Earnings Preview
The faltering economy and soaring commodity prices are finally cutting into unjustified optimism in the market, taking something away from the unofficial start of the earnings seasons with Alcoa's (NYSE:AA) earnings report on Monday.
More than likely Alcoa will have a super quarter to report, but things have changed so much that the only element investors are seemingly, and rightfully interested in is guidance.
The biggest concern going forward is whether or not Alcoa will be able to take advantage of rising aluminum prices when at the same time raw-materials inputs and transportation costs are rising. That's not a guarantee any longer.
So while demand has been and will be stronger, margins and earnings could come under extreme pressure, negating the value rising prices and increased demand, which under normal economic conditions would be a big boon for Alcoa and the aluminum industry.
So the projected 12 percent boost in aluminum consumption has yet to be proven to be a positive for Alcoa. The one good thing is they were able to cut back on costs during the recession, resulting in a leaner company, which should help it going forward.
Even with Alcoa's 12 percent projection, that's no longer a guarantee, as rising gas prices and fuel costs in the airline and automotive industries, which are among the company's major customers, are undergoing extreme stress at this time, with no clue as to how long it'll last.
That includes the parts shortages because of the earthquake in Japan as well as declining numbers of passengers on airlines, which could have an effect on capex. That could be bad news for Alcoa.
The major problem Alcoa faces is just about every key market it serves is back to undergoing stress, including construction and the industries already named above. Consumer spending appears to be stronger, but that could, and probably will, slow down as gas prices go up or remain level.
All this has been said to reiterate the fact that the performance of Alcoa last quarter has already lost its thunder, and the expected earnings of 27 cents a share and $6.16 billion in sales, even if the company exceeds it, which they could, will be a bittersweet victory for it.
The bottom line for Alcoa is what appeared to be a surety of terrific growth and earnings just a short time ago for the next couple of years, has suddenly and quickly changed into a complete uncertainty.
It'll be interesting and vital to hear what the company says about the impact of events and costs on those sectors of the market it serves on guidance.
Alcoa was trading at $17.82, falling $0.30, or 1.66 percent, as of 2:58 PM EDT.
More than likely Alcoa will have a super quarter to report, but things have changed so much that the only element investors are seemingly, and rightfully interested in is guidance.
The biggest concern going forward is whether or not Alcoa will be able to take advantage of rising aluminum prices when at the same time raw-materials inputs and transportation costs are rising. That's not a guarantee any longer.
So while demand has been and will be stronger, margins and earnings could come under extreme pressure, negating the value rising prices and increased demand, which under normal economic conditions would be a big boon for Alcoa and the aluminum industry.
So the projected 12 percent boost in aluminum consumption has yet to be proven to be a positive for Alcoa. The one good thing is they were able to cut back on costs during the recession, resulting in a leaner company, which should help it going forward.
Even with Alcoa's 12 percent projection, that's no longer a guarantee, as rising gas prices and fuel costs in the airline and automotive industries, which are among the company's major customers, are undergoing extreme stress at this time, with no clue as to how long it'll last.
That includes the parts shortages because of the earthquake in Japan as well as declining numbers of passengers on airlines, which could have an effect on capex. That could be bad news for Alcoa.
The major problem Alcoa faces is just about every key market it serves is back to undergoing stress, including construction and the industries already named above. Consumer spending appears to be stronger, but that could, and probably will, slow down as gas prices go up or remain level.
All this has been said to reiterate the fact that the performance of Alcoa last quarter has already lost its thunder, and the expected earnings of 27 cents a share and $6.16 billion in sales, even if the company exceeds it, which they could, will be a bittersweet victory for it.
The bottom line for Alcoa is what appeared to be a surety of terrific growth and earnings just a short time ago for the next couple of years, has suddenly and quickly changed into a complete uncertainty.
It'll be interesting and vital to hear what the company says about the impact of events and costs on those sectors of the market it serves on guidance.
Alcoa was trading at $17.82, falling $0.30, or 1.66 percent, as of 2:58 PM EDT.
Thursday, April 7, 2011
Bed Bath & Beyond (BBBY) Soars on Upbeat Guidance
Full year earnings guidance from Bed Bath and Beyond Inc (NASDAQ:BBBY) surpassed Wall Street estimates, pushing up the shares of the retailer by over 10 percent in after-hours trading.
Earnings for the fiscal year ending in February 2012 is expected to come in from 10 to 15 percent above the $3.07 a share Bed Bath & Beyond reported in its fiscal year that just ended.
That means earnings for the next full year should be in a range of $3.38 to $3.53 a share. Analysts had been looking for $3.33 a share.
Net income for the quarter climbed to $283.5 million, or $1.12 a share, in the fourth quarter, which ended on February 26, from $226.0 million, or 86 cents a share, in the same quarter last year.
Sales increased to $2.50 billion, from $2.24 billion last year.
Analysts on average had projected earnings of 97 cents a share on sales of $2.39 billion.
Same-store sales, a key gauge of retail health, was up 8.5 percent in the quarter, which included the Christmas shopping season.
For the current quarter, BBBY said earnings should be in a range of 58 cents to 61 cents a share. Analysts are looking for 61 cents a share.
Bed Bath & Beyond closed Wednesday at $49.39, gaining $0.49, or 1.00 percent. After hours they climbed to $54.45, up $5.06, or 10.24 percent.
Earnings for the fiscal year ending in February 2012 is expected to come in from 10 to 15 percent above the $3.07 a share Bed Bath & Beyond reported in its fiscal year that just ended.
That means earnings for the next full year should be in a range of $3.38 to $3.53 a share. Analysts had been looking for $3.33 a share.
Net income for the quarter climbed to $283.5 million, or $1.12 a share, in the fourth quarter, which ended on February 26, from $226.0 million, or 86 cents a share, in the same quarter last year.
Sales increased to $2.50 billion, from $2.24 billion last year.
Analysts on average had projected earnings of 97 cents a share on sales of $2.39 billion.
Same-store sales, a key gauge of retail health, was up 8.5 percent in the quarter, which included the Christmas shopping season.
For the current quarter, BBBY said earnings should be in a range of 58 cents to 61 cents a share. Analysts are looking for 61 cents a share.
Bed Bath & Beyond closed Wednesday at $49.39, gaining $0.49, or 1.00 percent. After hours they climbed to $54.45, up $5.06, or 10.24 percent.
Thursday, March 31, 2011
Intel (INTC) Drops on Earnings Cut
Shares of Intel (NASDAQ:INTC) dropped today after FBR Capital Markets slashed its earnings per share estimates on the in the first quarter from 51 cents a share to 48 cents a share.
Concerns over the impact of growing tablet sales on PCs and notebooks were the impetus behind the earnings being lowered, according to FBR.
Sales of Sandy Bridge also appear to be weaker than expected, putting pressure on Intel.
Intel was trading down at $20.01, falling $0.45, or 2.20 percent, as of 12:36 PM EDT. FBR also dropped its price target on Intel from $27 to $25 a share.
Concerns over the impact of growing tablet sales on PCs and notebooks were the impetus behind the earnings being lowered, according to FBR.
Sales of Sandy Bridge also appear to be weaker than expected, putting pressure on Intel.
Intel was trading down at $20.01, falling $0.45, or 2.20 percent, as of 12:36 PM EDT. FBR also dropped its price target on Intel from $27 to $25 a share.
Wednesday, March 30, 2011
Tibco (TIBX) Punished Even After Beating Estimates
Shares of Tibco Software Inc. (NASDAQ:TIBX) were beaten down in after hours trading, even though the company beat analysts' estimates. Even so, it wasn't like they have beaten expectations in the past, which apparently generated the downward pressure, presumably on the idea growth is slowing.
In the previous eight quarters Tibco had an average beat of estimates of 16 percent, while this quarter it was only 5 percent above consensus.
For its fiscal first quarter, earnings minus one-time items came in at 16 cents a share, with revenue reaching $185.3 million. Analysts surveyed by FactSet Research had estimated earnings of 15 cents a share on revenue of $182.5 million.
Tibco closed Tuesday at $26.27, gaining $0.14, or 0.54 percent. In after hours trading the company plunged by $1.47 to $24.80, down $1.47, or 5.60 percent.
In the previous eight quarters Tibco had an average beat of estimates of 16 percent, while this quarter it was only 5 percent above consensus.
For its fiscal first quarter, earnings minus one-time items came in at 16 cents a share, with revenue reaching $185.3 million. Analysts surveyed by FactSet Research had estimated earnings of 15 cents a share on revenue of $182.5 million.
Tibco closed Tuesday at $26.27, gaining $0.14, or 0.54 percent. In after hours trading the company plunged by $1.47 to $24.80, down $1.47, or 5.60 percent.
Wells (WFC) Sees Lennar's (LEN) Earnings as Weak
After the quarterly report from Lennar (NYSE:LEN), Wells Fargo commented that the earnings were weaker than reported, citing the $0.19 a share garnered from a legal settlement and an extinguishment of JV debt, which added another $0.08 to the total.
Wells Fargo said, "with investor attention keenly focused on the spring selling season, LEN's orders may be considered weak, as they missed our estimate and we believe they also missed consensus."
In other words, earnings per share is much weaker than the quarterly reported indicated, and it appears that is going to continue on throughout 2011.
Lennar closed Tuesday at $19.07, falling $0.68, or 3.44 percent.
Wells Fargo said, "with investor attention keenly focused on the spring selling season, LEN's orders may be considered weak, as they missed our estimate and we believe they also missed consensus."
In other words, earnings per share is much weaker than the quarterly reported indicated, and it appears that is going to continue on throughout 2011.
Lennar closed Tuesday at $19.07, falling $0.68, or 3.44 percent.
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