Friday, April 30, 2010
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Thursday, April 29, 2010
Today's announcement shows that V has made some year-over-year improvements. The company reported gains of $808.55 million last quarter compared with net gains of $614.84 million during the same quarter a year ago.
During the next five years, analysts expect the earnings-per-share (EPS) growth rate in the industry to be 16.79 percent. If you compare V's projected EPS growth rate of 20 percent to that of the industry, you can see that analysts expect V to outperform the industry in the future by 3.21 percent.
Visa has beaten expectations every earnings season since we have purchased this stock in April of 2009. The company has projected EPS growth of 20% over the next few years and Visa is currently on on track to do this. They have already reported $2.00 per share for half of this year and will beat the $3.10 Visa earned for FY 2009.
For the second quarter and the rest of 2010, management expects to be profitable. They believe that their cost savings initiatives and strategic actions will help them achieve profitability, even if they continue to operate in a low margin environment.
I am planning on locating the original model and updating it and making a decision going forward.
- Thomas Boeje
Wednesday, April 28, 2010
Chairman and CEO of the company stated that industry activity and orders are higher compared to last year and record level in some areas. Caterpillar is increasing it's production as a result of the increase in demand. This jump in demand is mostly in developing areas like Asia and Latin America and mining equipment worldwide.Higher commodity prices will drive the demand for mining equipment to increase. Caterpillar officials said that some models of 2010 mining equipment are sold out and they are already taking orders for 2011 equipment. The company has hired about 2,000 people after releasing 19,000 full-time employess. CAT's 2nd quarter earnings are estimated to be $.74 per share. The company raised their outlook for 2010 raising sales and revenues range from $38 to $42 billion and profit expectations for 2010 to be between $2.50 to $3.25 per share. The outlook for CAT is looking up and I think it will continue to perform well.
Tuesday, April 27, 2010
* Q1 revenue $887 mln vs. forecast of $864 mln
* Shares rise 1 pct after-hours
NEW YORK, April 27 (Reuters) - Life Technologies Corp (LIFE.O) on Tuesday reported better-than-expected first-quarter earnings, on strong demand for its tools and equipment used in genetic testing and stem cell research.
The company earned $91.5 million, or 48 cents per share, compared with $15.6 million, or 9 cents per share, in the year-earlier period.
Excluding special items, Life Technologies said it earned 87 cents per share. Analysts on average expected 80 cents per share, according to Thomson Reuters I/B/E/S.
The company reported revenue of $887 million, well above Wall Street expectations of $864 million.
Life Technologies, created by the merger of Invitrogen and Applied Biosystems, said it expects full-year revenue to grow in the mid-to high-single digit percentage range. It predicted 2010 earnings, excluding special items, of $3.30 to $3.50 per share, in line with Wall Street expectations of $3.41 per share.
Shares of the company rose 1 percent in after-hours trading to $51.69 from their closing share price on Tuesday of $51.15 on the Nasdaq. (Reporting by Ransdell Pierson; Editing by Bernard Orr)
This is just a copy and paste job. I will review the numbers in detail tonight and repost an analysis of results and explain affects on my price target.
----- Michael Arias
Sales were up 6% to $1.4 billion. They saw strong sales growth from Kay, Asia Pacific, Canada, and Latin America, along with cost savings actions and favorable delivered product costs.
Segments US Cleaning and Sanitizing and US Other Services operating income both rose 11% while International Operations operating income rose 81%.
Ecolab reacquired 3.3 million shares of its common stock during the first quarter under its share repurchase program.
Commenting on the quarter, Douglas M. Baker, Jr., Ecolab's Chairman, President and Chief Executive Officer said, "We are off to a good start in 2010. We once again outperformed our end markets, and through our aggressive sales efforts, cost savings and efficiency actions, we turned in a strong earnings gain that exceeded the top end of our forecasted range.
"We are confident in our prospects for 2010. Our markets are generally showing expected improvement from 2009's difficult environment, and we are stepping up our investments to drive growth within them. These investments include expanding our sales and service force, developing new innovative products and programs that provide better results and lower operating costs for customers, building infrastructure in key geographies to enable faster and more efficient growth and profitability, and looking at new ways to better serve our strong customer base. We are seeing returns from these investments today and expect much more as they progress, providing not only strong results in 2010 but positioning us for even better results in the years ahead. We believe we are in solid shape for the year, we continue to make progress on our long term growth initiatives, and we expect to continue delivering superior results for shareholders in 2010 and beyond."
Going forward, Ecolab expects 2nd quarter 2010 EPS of $0.54-0.57 with a gross margin of 50% and tax rate of 30-31%. My model remains unchanged at a price target of $52. The company is doing well, but based on the current price of $47.13 (down 1% in reaction to a market correction), there is only 10% upside. If opportunities arise for a company with more upside, I would be supportive of selling in order to free up cash.
Thursday, April 22, 2010
Verizon posted Quarter 1, 2010 earnings today, Thursday April 22nd. Earnings were $0.56 a share meeting analyst expectations.
Verizon reported $7.1 billion in cash from operations up 7.5% from Quarter 1 2009 and $3.7 billion in free cash flow up %25.6. Verizon’s wireless segment increased total customers by 1.5 million and a 4.4% increase in total revenues compared to Quarter 1 2009.Verizon Fios growth remains strong with an increase of 185,000 internet subscribers and an increase of 168,000 TV subscribers.
Throughout the quarter Verizon has been capable of maintaining its high margins mainly through wireless data plan subscribers. In accordance with Verizon’s business plan, data plans have slowly become the status quo. Few phones are now offered through Verizon Wireless that can be purchased and used without data subscription. Management stated plans to introduce its 4G network to approximately 25-30 areas by the end of the year. Advancement in Verizon’s 4G network and breaking ground on its new Technology Innovation Center will lead to innovative products will continue to help Verizon gain market share, solidifying the investment thesis this company was purchased on.
- Chad Schneider
Deepwater segment revenues grew to a record $130 million in the first quarter, or nearly 30% of total revenues, highlighting the success of their deepwater fleet expansion strategy initiated in 2005 and reinforcing their hybrid drilling strategy. Only one-third, or $1 billion, of the ENSCO 8500 Series(R) newbuild capital commitments are remaining.
*startup of ENSCO 8500 Series(R) semisubmersibles and the remaining rigs under construction are on schedule for their delivery dates. In the first quarter, achieved 99% utilization in their deepwater segment. ENSCO 8502, is their latest ultra-deepwater semisubmersible drilling rig, was delivered during the first quarter and is now mobilizing to the U.S. Gulf of Mexico to commence operations under a multi-year contract.
Deepwater segment revenues grew to $130 million in first quarter 2010, from zero dollars a year ago. ENSCO 7500, which operated during first quarter 2010, was mobilizing to Australia during first quarter 2009 when it was the only rig in the deepwater segment. Revenues related to the mobilization were deferred until drilling commenced in April 2009. Additionally, two new ENSCO 8500 Series(R) rigs commenced operations in 2009: ENSCO 8500 in June and ENSCO 8501 in October.
In first quarter 2010, the average day rate was $411,000 and utilization was 99%. Comparable figures for the prior year period are not applicable due to revenues being deferred while ENSCO 7500 was mobilizing.
Contract drilling expense was $45 million in first quarter 2010, up from $5 million in first quarter 2009. The increase was primarily due to the deferral of certain costs associated with the ENSCO 7500 mobilization to Australia during first quarter 2009 and the commencement of ENSCO 8500 and ENSCO 8501 operations in mid- and late-2009, respectively.
Total Jackup Segments
Revenues from the jackup fleet totaled $319 million in first quarter 2010, down from $500 million a year ago. The decline primarily was due to a six percentage point decrease in utilization to 76% and a $55,000 decline in average day rates to $113,000. Contract drilling expense was reduced by nine percent year to year as personnel and other costs were lowered to address declining utilization.
Total operating expenses in first quarter 2010 increased to $259 million from $215 million last year. Contract drilling and depreciation expense rose by 17% and 20%, respectively, driven by growth in the deepwater segment. General and administrative expense increased to $21 million, from $12 million in first quarter 2009, as a result of increases in share-based compensation expense, professional fees incurred in connection with the redomestication and costs related to opening the new London headquarters.
Strong Financial Position - 31 March 2010
Ensco continues to maintain a strong financial position:
Based on Ensco recent earnings, the current rig market, and my outlook on the future of the rig market compared to Ensco PLC's growth strategy. I still maintain the buy valuation.
Please fill free to send me an email with any questioning concerning you about ensco or the rig market in general.
Wednesday, April 21, 2010
Revenue was $13.5 billion, a 49% increase year over year. Net income rose 90% year-over-year to $3.1 billion. Margins were slightly higher than expected at 41.7% versus guidance at 39%. Cash and short-term securities increased from $39.8 billion to $41.7 billion quarter-over-quarter. This was the best non-holiday quarter in Apple history.After yesterday's earnings release after the bell, Apple shares closed today at $259.22, for a gain of 5.98% for the day.
Strength was attributed to iPhone sales doubling and strong momentum across the boards, allowing Apple to avoid the great magnitude of their normal seasonal sales declines after December. New Intel processors and NVIDIA graphics chips were added to the Apple's computer and laptop lines providing better performance, crisper graphics, and improved battery life. Mac revenue increased 33% and iPod revenue grew 12% year-over year. iTunes delivered over $1.1 billion in sales, a quarter best. 8.75 iPhones were sold, a year-over-year increase of 131%, crushing the IDC estimate of 41% due to expansion in Asia, Australia, Japan, and Europe. As mentioned in an earlier post, the iPhone OS4 is due this summer and will have multitasking, folders, improved enterprise support, and iAds. Retails sales increased by 22% year-over-year.
I still feel that Apple will outperform the broad market going forward this year due to their premium product lineup, an unparalleled user experience, and an application market that is light years ahead in development of quality software (I own a Motorola Droid, the Google Marketplace is a joke). Every single community service related event on campus with a raffle/prize is using either an iPad or Apple gift certificates to draw in students and the Apple store is STILL always crowded at Crossgates Mall. I am raising my one year price target to $315, looking forward for a potential Verizon iPhone contract this summer and continued increases in market share in the Mac product segment as iPhone users spill off into new Mac owners.
Gilead Sciences shares are trading around 10% lower hovering around $41 after the company issued weaker-than-expected 2010 guidance.The company lowered its 2010 sales forecast by about $200 million to a range of $7.4 billion to $7.5 billion due to the impact of the recently passed health care reform.
Tuesday, April 20, 2010
ITW reported revenue for Q1 of 3.606 billion, 14.6% higher than 2009 Q1. The main increase in revenues was due to their automotive OEM, polymers and fluids, industrial packaging, and PC board fabrication segments.
Operating income rose 393 million to 483.9 million from Q1 2009. Income from continuing operations totaled 294.3 million compared to a loss of 8.0 million in 2009 and first quarter operating margins were 13.4 percent, which is 1050 basis points higher than the year ago period.
ITW has increased their outlook for 2010. For 2Q, the company is expecting earnings of .74 cents to .86 cents, which is assuming a 15-19% increase in revenue. For the full year, EPS is expected to be in the range of 2.72-3.08$, an increase from 2.39-2.89$
After ITW released earnings, their stock price hit a new 52 week high of 51.28$. In the after hours, ITW continued to rise and is currently trading at 50.71$.
Novartis released their earnings hours ago with an EPS of $1.29 and a street estimate of $1.11. Previous year's EPS was $.87 so a dramatic increase in revenues helped bolster earnings. The majority of the increase in earnings can be attributed to the sale of H1N1 vaccinations purchased by the U.S and Chinese governments. Recently appointed CEO Joe Jiminez is expecting consistent growth in the pharmaceutical department with the help of 2 recent acquisitions in the cancer drug division. Novartis is still planning on completing the full acquisition of Alcon (The world's leader in eye-care products). Currently, Novartis has 77% stake in the company and is planning on closing the deal soon. The 18% growth in revenue from last year is a strong sign of consistent growth for the future in addition to the corporate strategy of acquiring more firms to broaden their market penetration.
Monday, April 19, 2010
A video from thestreet.tv; an analyst talking about why she likes Joy Global
In an article on Reuters, BMO Capital Markets analyst Gerrick Johnson was quoted as saying "The toy industry as a whole is performing well... "Parents might not have more money than last year, but they have more certainty about their budget. Parents don't cut back on their kids when they can plan."
Hasbro's first-quarter net profit almost tripled to $58.9 million, close to 40 cents per share in comparison to a year ago. HAS reported a profit of 26 cents per share while analysts predicted earnings of 16 cents per share.
The company's board also authorized a stock repurchase worth $625 million.
Following this announcement HAS stock price increased 1.5% hitting $40.45 and peaked at $40.77 during the trading day so far. Mattel stock price dropped just .8%. If this surge in prices remains steady, a sound price point to buy in might not come around for the UASBIG Portfolio. But this increase in earnings is a positive direction for Hasbro moving into 2010 in terms of the value of the company. Going forward it will be especially important to monitor Hasbro in case an opportune price point hits and updating the model in anticipation of 2011 expectations of even higher growth.
Call Transcript from Seeking Alpha
Saturday, April 17, 2010
What people forget to mention is that also on Friday the SEC released an independent examiners report that they completely dropped the ball and should have closed Lehman months before they collapsed. People believe the Goldman case was announced Friday to delfect attention from Lehman report.
The announcement of the case against Goldman Sachs brought down the entire financial sector with Goldman shares dropping over 10%, and Bank of America shares dropping 5% (a UASBIG holding).
Chief Executive Brian Moynihan has reshuffled management and is expanding
The acquisition of Merrill Lynch was the main driver of the groups decision to purchase Bank of America for UASBIG. The overall credit quality of the overall consumer is improving and has been said not only by BAC, but also by its biggest competitor JP Morgan. I have a lot of faith in new CEO Brian Moynihan, primarily because he realizes the their business has changed with the aquistion of Merrill and is looking to expand on that segement of business.
Friday, April 9, 2010
Thursday, April 8, 2010
Wednesday, April 7, 2010
Gold spiked to over the $1,150 mark, sending mining shares higher across the board on a down day for the equity markets and energy commodities.
Days like this are normal for EGO and I maintain my price target of $16