Shares of Smith & Wesson Holding Corp. (NASDAQ: SWHC) soared after reporting record earnings for the quarter, with the next quarter also expected to be robust as well.
In its fiscal quarter ending July 31, net income climbed to $18.9 million, or 28 cents a share, on sales of $136 million. That was a huge increase over the $2.3 million, or 4 cents a share recorded last year for the same quarter.
This was far beyond analysts' expectations, which was 18 cents a share on sales of $128.7 million.
For the next quarter, which is usually seasonally slow, Smith & Wesson is looking for sales in a range of $130 million to $135 million, and earnings of 19 to 21 cents a share. Analysts are estimating sales of $119 million and earnings of 13 cents a share for the fiscal second quarter.
For the the fiscal year ending in April, 2013, the company projects earnings from 85 to 90 cents a share on revenue of $530 million to $540 million. That would be a gain of almost 33 percent over 2011.
That would also explode past analysts' estimates of 57 a share for the year, which would include special items. Sales are expected to come in at $498.2 million for the year.
According to Smith & Wesson, the reason for the jump in sales was the introduction of the Shield, which is marketed as "slim, concealable power." It is offered in 9mm & .40-caliber versions
While that may be true in general, specifically the reason is because of the corrupt Obama administration, which has flamed the fire of racism where it doesn't exist, causing many people to stock up on firearms in preparation for possible further unrest and danger.
If Obama were to surprisingly win reelection, gun sales would soar, while if Romney wins, you may see a reduction in sales in response to a safer, more competent and honest administration.
As it is, the gun manufacturer has a backlog of just under $400 million, a 164 percent rise over last year in the same period.
Smith & Wesson Holding Corp. closed the session Thursday at $9.00, gaining $0.28, or 3.21 percent. In after hours trading, the shares of the company skyrocketed to $10.72, jumping $1.72. or 19.11 percent.
Showing posts with label Quarterly Results. Show all posts
Showing posts with label Quarterly Results. Show all posts
Thursday, September 6, 2012
Tuesday, May 15, 2012
UBS (UBS) Led by Wealth Management Unit
Led by its wealth management unit, UBS (NYSE:UBS) reported solid earnings for its latest quarter. The division generated a pre-tax profit of $866 million for the quarter, up 70 percent over the prior quarter, and a 24 percent improvement for the same period last year.
This bodes well for the financial institution, as wealth management is a far more predictable business than sales & trading, which has recently crushed JPMorgan (NYSE:JPM) with a $2 billion loss and fading confidence in the company.
Another good sign for UBS is its exposure to the wealth management business, which accounts for an estimated 40 percent of its share price. On the other hand, JPMorgan is estimated to have only 10 percent of its share price associated with wealth management, making it far less predictable, and more volatile as well.
The good performance from the unit of UBS comes from shrinking expenses as a result of changes made in relationship to employee pension plans.
Also contributing to profits was the performance of the wealth management unit in North and South America, where pre-tax profits rose by 34 percent to $225 million from the previous quarter.
That's not to say the sales & trading of the division tanked, as it still generated $1.1 billion in earnings for the period. Overall, the unit landed $1.6 billion in revenue for the quarter.
This bodes well for the financial institution, as wealth management is a far more predictable business than sales & trading, which has recently crushed JPMorgan (NYSE:JPM) with a $2 billion loss and fading confidence in the company.
Another good sign for UBS is its exposure to the wealth management business, which accounts for an estimated 40 percent of its share price. On the other hand, JPMorgan is estimated to have only 10 percent of its share price associated with wealth management, making it far less predictable, and more volatile as well.
The good performance from the unit of UBS comes from shrinking expenses as a result of changes made in relationship to employee pension plans.
Also contributing to profits was the performance of the wealth management unit in North and South America, where pre-tax profits rose by 34 percent to $225 million from the previous quarter.
That's not to say the sales & trading of the division tanked, as it still generated $1.1 billion in earnings for the period. Overall, the unit landed $1.6 billion in revenue for the quarter.
Thursday, February 16, 2012
Barrick (ABX) Misses on Rising Costs
The ongoing rise in cost continues to weigh on the mining sector, as evidenced again by the performance of Barrick Gold (NYSE:ABX) in the latest quarter, where it missed its EPS estimates by a huge 10 cents a share.
For the fourth quarter ended December 31, Barrick earned $1.17 billion, or $1.17 a share. Analysts had been looking for $1.27 a share.
The rise in gold prices during the quarter wasn't enough to offset the soaring cost of doing business, although they did boost revenue to a huge $3.79 billion or 26 percent increase. Gold price increases accounted for 22 percent of the gains.
Net income fell from $961 million, or 96 cents a share last year to $959 million, or 96 cents a share in the latest quarter.
Fourth quarter gold production came to 1.81 million ounces, at $505.00 an ounce. For all of 2011 gold production reached 7.68 million ounces, at an average cost of $460.00 an ounce.
Gold production estimates for 2012 are from 7.3 million to 7.8 million ounces at a cah cost range of $520 to $560 an ounce. Barrick said the higher costs in production are the consequences of rising labor costs and inflation, as well as a change in the production mix.
The most recent analyst activity on Barrick was a downgraded from Canaccord Genuity on January 30, where they were taken from a "Buy" rating to a "Hold" rating, with a price target of $57.50 on the gold mining giant.
Barrick was trading at $47.65, up $0.22, or 0.46 percent, as of 12:45 PM EST.
For the fourth quarter ended December 31, Barrick earned $1.17 billion, or $1.17 a share. Analysts had been looking for $1.27 a share.
The rise in gold prices during the quarter wasn't enough to offset the soaring cost of doing business, although they did boost revenue to a huge $3.79 billion or 26 percent increase. Gold price increases accounted for 22 percent of the gains.
Net income fell from $961 million, or 96 cents a share last year to $959 million, or 96 cents a share in the latest quarter.
Fourth quarter gold production came to 1.81 million ounces, at $505.00 an ounce. For all of 2011 gold production reached 7.68 million ounces, at an average cost of $460.00 an ounce.
Gold production estimates for 2012 are from 7.3 million to 7.8 million ounces at a cah cost range of $520 to $560 an ounce. Barrick said the higher costs in production are the consequences of rising labor costs and inflation, as well as a change in the production mix.
The most recent analyst activity on Barrick was a downgraded from Canaccord Genuity on January 30, where they were taken from a "Buy" rating to a "Hold" rating, with a price target of $57.50 on the gold mining giant.
Barrick was trading at $47.65, up $0.22, or 0.46 percent, as of 12:45 PM EST.
Wednesday, February 8, 2012
BP (BP) Earnings Appear Under Pressure for 2012
BP (NYSE:BP) had a couple of analysts express concern over the performance of the company in 2012, pressuring the stock in early trading.
Jefferies (NYSE:JEF) said the oil giant is unlikely to boost production before 2014, which will probably mean earnings estimates will be lower than projected. They also cited higher tax rates and charges as another factor in the earnings performance of BP.
Consequently, Jefferies cut its earnings estimate on BP from $1.24 a share to $1.20 a share. For 2013, it raised its EPS estimate from 94 cents a share to 95 cents a share. Even so, the brokerage reiterated its "Buy" rating on the energy company.
Societe Generale downgraded BP on Wednesday from a "Buy" rating to a "Hold" rating, citing uncertainties surrounding legal liabilities as the Macondo trial date of February 27 approaches.
"The key risk is the start of the Macondo trial on February 27. The impossibility of 'calling' the legal outcome, leads us tactically to a hold rating, following a year of outperformance," the analysts said.
Societe Generale also noted that BP will be the last entity to offer its evidence, meaning the news cycle will probably be negative in the early part of the trial, suggesting pressure on the stock.
Possibly in anticipation of this, BP boosted its dividend to a quarterly rate of 8 cents a share after a solid quarter, where the earnings of the company rose to $7.69 billion on revenue of $96.3 billion.
BP was trading at $46.59, falling $0.01, or 0.02 percent, as of 11:10 AM EST.
Jefferies (NYSE:JEF) said the oil giant is unlikely to boost production before 2014, which will probably mean earnings estimates will be lower than projected. They also cited higher tax rates and charges as another factor in the earnings performance of BP.
Consequently, Jefferies cut its earnings estimate on BP from $1.24 a share to $1.20 a share. For 2013, it raised its EPS estimate from 94 cents a share to 95 cents a share. Even so, the brokerage reiterated its "Buy" rating on the energy company.
Societe Generale downgraded BP on Wednesday from a "Buy" rating to a "Hold" rating, citing uncertainties surrounding legal liabilities as the Macondo trial date of February 27 approaches.
"The key risk is the start of the Macondo trial on February 27. The impossibility of 'calling' the legal outcome, leads us tactically to a hold rating, following a year of outperformance," the analysts said.
Societe Generale also noted that BP will be the last entity to offer its evidence, meaning the news cycle will probably be negative in the early part of the trial, suggesting pressure on the stock.
Possibly in anticipation of this, BP boosted its dividend to a quarterly rate of 8 cents a share after a solid quarter, where the earnings of the company rose to $7.69 billion on revenue of $96.3 billion.
BP was trading at $46.59, falling $0.01, or 0.02 percent, as of 11:10 AM EST.
Thursday, January 26, 2012
Archer Daniels Midland (ADM) Ratings Reiterated
Archer Daniels Midland Company (NYSE: ADM) had its “Neutral” rating reiterated by Goldman Sachs (NYSE:GS).
Looking forward to the release of its quarterly report on January 31, 2012, analysts' consensus is for earnings to drop to 78 cents a share, from $1.14 a share last year in the same quarter.
Earnings are expected to come in at $2.98 a share for the fiscal year. Revenue for the year is estimated to be $89.56 billion. Quarterly revenue is estimated at $23.1 billion, a gain of 10.4 percent over last year.
The majority of analysts recommend for investors to hold on ADM. Over the last quarter sentiment on the company has improved a little.
Archer Daniels Midland closed Thursday at $29.84, dropping $0.24, or 0.80 percent.
Looking forward to the release of its quarterly report on January 31, 2012, analysts' consensus is for earnings to drop to 78 cents a share, from $1.14 a share last year in the same quarter.
Earnings are expected to come in at $2.98 a share for the fiscal year. Revenue for the year is estimated to be $89.56 billion. Quarterly revenue is estimated at $23.1 billion, a gain of 10.4 percent over last year.
The majority of analysts recommend for investors to hold on ADM. Over the last quarter sentiment on the company has improved a little.
Archer Daniels Midland closed Thursday at $29.84, dropping $0.24, or 0.80 percent.
Friday, August 12, 2011
Molycorp (MCP) Soars on $43.5 Million Profit
Molycorp (NYSE:MCP), which his attempting to position itself as the premier rare earths producer and supplier outside of China, generated a profit in the second quarter of $43.5 million, or 52 cents a share.
In the same quarter last year Molycorp lost $23.3 million, or 47 cents a share.
This easily beat the 39 cents a share analysts surveyed by FactSet were looking for. Revenue for the quarter jumped to 499.6 million, up from the slim $1.9 million in the same quarter in 2010.
Molycorp closed Thursday at $54.14, climbing $2.59, or 5.02 percent. In after hours trading the rose to $58.09, soaring another $3.95, or 7.30 percent.
The company has a market cap as of the Thursday close of $4.54 billion.
In the same quarter last year Molycorp lost $23.3 million, or 47 cents a share.
This easily beat the 39 cents a share analysts surveyed by FactSet were looking for. Revenue for the quarter jumped to 499.6 million, up from the slim $1.9 million in the same quarter in 2010.
Molycorp closed Thursday at $54.14, climbing $2.59, or 5.02 percent. In after hours trading the rose to $58.09, soaring another $3.95, or 7.30 percent.
The company has a market cap as of the Thursday close of $4.54 billion.
Thursday, April 28, 2011
Cisco (CSCO) Getting Previews for Next Earnings Report Already
Analysts are already weighing in on the next earnings report from Cisco (NASDAQ:CSCO), which is scheduled for the middle of May.
Oppenheimer analyst Ittal Kidron wrote in a note that he sees Cisco sales growth for the current quarter lining up with expectations, but isn't as certain on margin trends.
“While Cisco has taken steps to realign and refocus on its core, these could take time to materialize. We feel there’s more to do and it’s unclear whether these actions can improve margins on a sustainable basis or just slow a downward trend,” said Kidron.
Oppenheimer maintains an "Outperform" rating on the stock, although they did lower their earnings estimates citing share losses in several segments.
They said, "We’re reducing our estimates across the board reflecting macro headwinds including Japan, consumer restructuring and competitive pressures in core businesses (routing, switching) and other areas (security, WLAN, application networking). The Street has yet to adjust estimates."
Cisco was trading at $17.33, up $0.14, or 0.84 percent, as of 11:27 AM EDT.
Oppenheimer analyst Ittal Kidron wrote in a note that he sees Cisco sales growth for the current quarter lining up with expectations, but isn't as certain on margin trends.
“While Cisco has taken steps to realign and refocus on its core, these could take time to materialize. We feel there’s more to do and it’s unclear whether these actions can improve margins on a sustainable basis or just slow a downward trend,” said Kidron.
Oppenheimer maintains an "Outperform" rating on the stock, although they did lower their earnings estimates citing share losses in several segments.
They said, "We’re reducing our estimates across the board reflecting macro headwinds including Japan, consumer restructuring and competitive pressures in core businesses (routing, switching) and other areas (security, WLAN, application networking). The Street has yet to adjust estimates."
Cisco was trading at $17.33, up $0.14, or 0.84 percent, as of 11:27 AM EDT.
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.
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.
Friday, April 15, 2011
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
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.
Tuesday, April 12, 2011
Alcoa (AA) Led by Higher Aluminum, Flat-Rolled Prices
Alcoa slightly beat first-quarter profit estimates by analysts on higher alumina prices, and going forward, expectations are the higher prices will also lead Alcoa to a solid second quarter.
Also helping Alcoa in the latest quarter was flat-rolled products, which resulted in the aluminum producer beat earnings estimates by 1 cent.
Looking to the second quarter, Chief Financial Officer Chuck Lane said the company will boost alumina production by 125,000 tons, and higher pricing should continue to contribute to Alcoa's profits.
Revenue from flat-rolled products jumped 17 percent in the quarter and revenue from alumina 7 percent. Operating income in the quarter soared 170 percent for flat-rolled products and 97 percent for alumina.
It appears Alcoa disappointed a lot of analysts and investors, who even though having had estimates beaten, didn't appear to be impressed at the overall guidance and performance of the company, which had given the impression of a possible blowout quarter.
Alcoa closed Monday at $17.77, down $0.15, or 0.84 percent. In after-hours trading they were down to $17.21, falling $0.56, or 3.15 percent.
Also helping Alcoa in the latest quarter was flat-rolled products, which resulted in the aluminum producer beat earnings estimates by 1 cent.
Looking to the second quarter, Chief Financial Officer Chuck Lane said the company will boost alumina production by 125,000 tons, and higher pricing should continue to contribute to Alcoa's profits.
Revenue from flat-rolled products jumped 17 percent in the quarter and revenue from alumina 7 percent. Operating income in the quarter soared 170 percent for flat-rolled products and 97 percent for alumina.
It appears Alcoa disappointed a lot of analysts and investors, who even though having had estimates beaten, didn't appear to be impressed at the overall guidance and performance of the company, which had given the impression of a possible blowout quarter.
Alcoa closed Monday at $17.77, down $0.15, or 0.84 percent. In after-hours trading they were down to $17.21, falling $0.56, or 3.15 percent.
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.
Wednesday, April 6, 2011
Alcoa (AA) Soars to 52-Week High
Shares of Alcoa (NYSE:AA) surged to 52-week highs on Tuesday, as the company closes in on its earnings report day, which is considered the kick-off of the earnings season.
Anticipation has been building as the company took time during the worst parts of the recession to lower costs, and now from that strong position the price of aluminum has been rising, along with aluminum demand, creating a growing expectation that the company will have a good quarterly report and guidance.
That also means margins and earnings should have risen significantly, as well as revenue in the quarter.
Once concern would be if there are any consequences going forward from the earthquake in Japan in regard to markets Alcoa serves, such as with auto makers. That will have no effect on the latest quarter, but it possibly could on guidance.
Alcoa closed Tuesday at $18.05, gaining $0.49, or 2.79 percent.
Anticipation has been building as the company took time during the worst parts of the recession to lower costs, and now from that strong position the price of aluminum has been rising, along with aluminum demand, creating a growing expectation that the company will have a good quarterly report and guidance.
That also means margins and earnings should have risen significantly, as well as revenue in the quarter.
Once concern would be if there are any consequences going forward from the earthquake in Japan in regard to markets Alcoa serves, such as with auto makers. That will have no effect on the latest quarter, but it possibly could on guidance.
Alcoa closed Tuesday at $18.05, gaining $0.49, or 2.79 percent.
Friday, April 1, 2011
Alcoa (AA) Quarterly Earnings Picking Up Over 2010
With little to do during the recession but focus on improving its cost structure, Alcoa (NYSE:AA) has positioned itself to benefit when a real recovery comes along, and even if we're in a temporary one, the aluminum producer should report a solid quarter as the price of aluminum has jumped during that time.
Credit Agricole Securities analyst David Lipschitz, said, “As aluminum prices are going higher, Alcoa is also rising. Earnings have picked up significantly from higher aluminum prices from a year ago.”
While Alcoa still has some work to work on its costs, the improvement will be enough, along with the higher price of aluminum, to provide solid results.
Industries that have helped it run recently include the auto and aerospace industries, although how they perform in the next quarter could be impacted from the consequences in the auto industry from parts shortage coming from the impact of the earthquake in Japan.
Alcoa closed Thursday at $17.66, gaining $0.02, or 0.11 percent. The company is trading near the top of its 52-week range.
Credit Agricole Securities analyst David Lipschitz, said, “As aluminum prices are going higher, Alcoa is also rising. Earnings have picked up significantly from higher aluminum prices from a year ago.”
While Alcoa still has some work to work on its costs, the improvement will be enough, along with the higher price of aluminum, to provide solid results.
Industries that have helped it run recently include the auto and aerospace industries, although how they perform in the next quarter could be impacted from the consequences in the auto industry from parts shortage coming from the impact of the earthquake in Japan.
Alcoa closed Thursday at $17.66, gaining $0.02, or 0.11 percent. The company is trading near the top of its 52-week range.
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.
Monday, March 28, 2011
Lululemon's (LULU) Soaring Nike's (NKE) Boring
Based on comments from economic pundit Jim Cramer, Lululemon Athletica (NASDAQ:LULU) is running circles around competitor Nike (NYSE:NKE), and is a more compelling growth story.
On Friday Cramer mentioned that after looking at both companies following their quarterly earnings reports, Lululemon vastly outperformed analysts' expectation, while Nike underperformed.
For the latest quarter, Lululemon soared over 52 percent in revenue growth, while Nike only rose 7 percent.
Cramer noted that Nike "just isn't growing like we once thought." In comparison, Lululemon is a "high octane" secular growth story which has performed mostly through word of mouth.
Also of importance for performance was the rising margins at Lululemon, which jumped to 58.5 percent in the last quarter, while Nike's stood at 45.8 percent.
Nike was trading at $76.24, falling $0.42, or 0.55 percent, as of 12:05 PM EDT. Lululemon was at $84.21, gaining $5.57, or 7.08 percent.
Source
On Friday Cramer mentioned that after looking at both companies following their quarterly earnings reports, Lululemon vastly outperformed analysts' expectation, while Nike underperformed.
For the latest quarter, Lululemon soared over 52 percent in revenue growth, while Nike only rose 7 percent.
Cramer noted that Nike "just isn't growing like we once thought." In comparison, Lululemon is a "high octane" secular growth story which has performed mostly through word of mouth.
Also of importance for performance was the rising margins at Lululemon, which jumped to 58.5 percent in the last quarter, while Nike's stood at 45.8 percent.
Nike was trading at $76.24, falling $0.42, or 0.55 percent, as of 12:05 PM EDT. Lululemon was at $84.21, gaining $5.57, or 7.08 percent.
Source
Thursday, March 24, 2011
Micron (MU) Led by Agressive Sales
Agressive sales growth by Micron Technology (NASDAQ:MU) in the latest quarter helped the company overcome the drop in price of its memory chips, pushing up the share price of the company.
Net profit dropped almost 58 percent to $72 million, or 7 cents a share, in its fiscal second quarter ended March 3, compared with $155 million, or 15 cents a share, last year in the same quarter. That surpassed expectations of 2 cents a share.
The top U.S. maker of memory chips for computers and mobile devices said revenue in its fiscal second quarter was $2.3 billion, up from $2.0 billion last year in the same quarter. That also beat the $2.07 billion expected on average by analysts.
DRMA memory chip sales were lower by 6 percent in the quarter, even though there was a plunge of 23 percent in price.
For NAND flash memory, sales were up by 8 percent, as higher volume was able to overcome the drop in prices, which were 4 percent lower.
Stifel Nicolaus analyst Kevin Cassidy said, "We'll want to see if they think this trend will continue on pricing. We think that there will still be a tight supply-demand ratio going into the second half of the year."
Also helping the company beat estimates was its lower manufacturing costs, which also helped the company in the case of falling prices.
Micron closed Wednesday at $10.61, gaining $0.26, or 2.51 percent. The company was up almost 5 percent in after hours trading.
Net profit dropped almost 58 percent to $72 million, or 7 cents a share, in its fiscal second quarter ended March 3, compared with $155 million, or 15 cents a share, last year in the same quarter. That surpassed expectations of 2 cents a share.
The top U.S. maker of memory chips for computers and mobile devices said revenue in its fiscal second quarter was $2.3 billion, up from $2.0 billion last year in the same quarter. That also beat the $2.07 billion expected on average by analysts.
DRMA memory chip sales were lower by 6 percent in the quarter, even though there was a plunge of 23 percent in price.
For NAND flash memory, sales were up by 8 percent, as higher volume was able to overcome the drop in prices, which were 4 percent lower.
Stifel Nicolaus analyst Kevin Cassidy said, "We'll want to see if they think this trend will continue on pricing. We think that there will still be a tight supply-demand ratio going into the second half of the year."
Also helping the company beat estimates was its lower manufacturing costs, which also helped the company in the case of falling prices.
Micron closed Wednesday at $10.61, gaining $0.26, or 2.51 percent. The company was up almost 5 percent in after hours trading.
Subscribe to:
Posts (Atom)