For the quarter, Chesapeake's Revenue was $1.7 billion, compared with a revenue loss of $455 million a year ago. The company reported second quarter net income of $237 million, or 39 cents per share, compared with a loss of $1.6 billion, or $3.17 per share, one year ago. Excluding one-time costs, Chesapeake saw an adjusted profit of $377 million, or 62 cents per share, down from $479 million, or 89 cents a share, in the same quarter last year. On average, Wall Street analysts expected a lower adjusted profit of 52 cents per share, but on significantly higher revenue of $1.9 billion.
Chesapeake saw production of 223 billion cubic feet of natural gas equivalent (bcfe) for the quarter with an Average Daily Production Increases of 4% over 2009 First Quarter Production and 5% over 2008 Second Quarter Production
(the company’s daily production for the 2009 second quarter averaged 2.453 bcfe, an increase of 86 million cubic feet of natural gas equivalent (mmcfe), or 4%, over the 2.367 bcfe produced per day in the 2009 first quarter and an increase of 125 mmcfe, or 5%, over the 2.328 bcfe produced per day in the 2008 second quarter.) The company is not currently curtailing production, but may do so again later this summer or fall as market conditions dictate.
I feel Chesapeake is currently undervalued and is poised for solid gains for the rest of 2009. As oil prices remain high and the overall economy continues to improve, Chesapeake should see increased overall demand and profit. They have a very successful hedging strategy (resulting in a gain of $597 million in the second quarter) that will combat price fluctuations of natural gas. Management remains confident in their ability to combat poor market conditions if they should arise. Currently, Chesapeake remains a Hold.
Tuesday, August 4, 2009
Monday, August 3, 2009
VISA (Richie Civello)
Visa Inc (NYSE:V - News) reported better-than-expected quarterly earnings on Wednesday(7/29), as the world's largest credit card network cut expenses and credit-strapped consumers used their debit cards more. Larger than expected cuts in advertising were a major component to the cost cuts.
The company also forecast revenue would grow more than expected in the fourth quarter helped by a recovery in the number of transactions.
Net income rose 73 percent to $729 million, or 97 cents per diluted class A share, for the third quarter ended June 30.
On an adjusted basis, reflecting a normalized tax rate, restructuring and purchase amortizations, quarterly net income rose to $744 million, or 98 cents per diluted class A share. True earnings per share were $0.67 per share; the difference coming from a one-time Brazilian IPO.
Overall revenues were in the expected neighborhood, Payments volume fell 5% but processed transaction volume increased 8% to 10.3 billion.
Our thesis with Visa is still: that increased transactions due to a shift from paper payments to plastic would lead to increased business and the shift from debit to credit card payment during these hard times would be beneficial to Visa.( Debt processing went up 3.6% this quarter, Credit Card payment volume decreased 10.4%). With the economy showing more signs of life Visa looks to still be a hold.
The company also forecast revenue would grow more than expected in the fourth quarter helped by a recovery in the number of transactions.
Net income rose 73 percent to $729 million, or 97 cents per diluted class A share, for the third quarter ended June 30.
On an adjusted basis, reflecting a normalized tax rate, restructuring and purchase amortizations, quarterly net income rose to $744 million, or 98 cents per diluted class A share. True earnings per share were $0.67 per share; the difference coming from a one-time Brazilian IPO.
Overall revenues were in the expected neighborhood, Payments volume fell 5% but processed transaction volume increased 8% to 10.3 billion.
Our thesis with Visa is still: that increased transactions due to a shift from paper payments to plastic would lead to increased business and the shift from debit to credit card payment during these hard times would be beneficial to Visa.( Debt processing went up 3.6% this quarter, Credit Card payment volume decreased 10.4%). With the economy showing more signs of life Visa looks to still be a hold.
Saturday, August 1, 2009
Waste Management Profits Fall 22%
Waste Management came out with earnings on Thursday. They posted a 22% drop in profits from the prior year. Revenue also fell from $3.49 billion to $2.95 billion. Management attributed the results to lower prices for recycled materials and lower volumes. EPS was .50 a share, while analyst were expecting .52 cents. The results from Q2 did improve from Q1 when EPS was .30 cents a share.
Thursday, July 30, 2009
Ecolab- Richie Civello
Ecolab came out with earnings on Tuesday.
Revenue of $1.44 billion for the quarter ended June 30 was down 8 percent from $1.57 billion in the same period last year. Excluding restructuring and other items, the St. Paul, Minn.-based company reported income of 50 cents per share; expected earnings were $0.48 cents per share. Reported earnings were $0.41 per share due to restructuring charges and currency exchange rates. Ecolab reduced its 2009 earnings-per-share outlook to a range of $1.96 to $2.02 from a previous forecast of $1.95 to $2.05, excluding anticipated restructuring charges of 21 cents per share to 23 cents per share.
As of today they were upgraded by JPMorgan to “Neutral” from “Underweight”
Ecolab credits new product sales, pricing, cost reduction, and new account gains as the reason for beating earnings. Gross margins increased to 49.7%, up from 49.1%
With the company held view that the markets, while stabilizing, are not going to be enough to make profits go any higher further cost-cutting initiatives are going to be implemented. Along with new product development and increasing efficiencies, this company is taking the right steps.
Management seems fully aware of the economic situation and is taking the right steps to create growth and remain profitable. I affirm this company as a hold for the portfolio as it has been one of the more stable names in the portfolio and should provide consistent and steady returns for us.
Revenue of $1.44 billion for the quarter ended June 30 was down 8 percent from $1.57 billion in the same period last year. Excluding restructuring and other items, the St. Paul, Minn.-based company reported income of 50 cents per share; expected earnings were $0.48 cents per share. Reported earnings were $0.41 per share due to restructuring charges and currency exchange rates. Ecolab reduced its 2009 earnings-per-share outlook to a range of $1.96 to $2.02 from a previous forecast of $1.95 to $2.05, excluding anticipated restructuring charges of 21 cents per share to 23 cents per share.
As of today they were upgraded by JPMorgan to “Neutral” from “Underweight”
Ecolab credits new product sales, pricing, cost reduction, and new account gains as the reason for beating earnings. Gross margins increased to 49.7%, up from 49.1%
With the company held view that the markets, while stabilizing, are not going to be enough to make profits go any higher further cost-cutting initiatives are going to be implemented. Along with new product development and increasing efficiencies, this company is taking the right steps.
Management seems fully aware of the economic situation and is taking the right steps to create growth and remain profitable. I affirm this company as a hold for the portfolio as it has been one of the more stable names in the portfolio and should provide consistent and steady returns for us.
Tuesday, July 21, 2009
AAPL F3Q09 Earnings 07/21/09-(Daren Pon)
Apple (AAPL) this evening reported fiscal third-quarter results that beat analysts’ sales and profit estimates.
Apple revenue rose 12%, year over year, in the quarter to $8.34 billion, while net income came in at $1.23 billion, or $1.35 per share.
That compares to an average estimate for $8.2 billion in sales and $1.17 per share, or $1.31, excluding options expenses. The results were ahead of Apple’s own forecast for revenue of $7.6 billion to $8 billion and profit of 90 cents to $1 per share.
Gross profit was likely much higher than people’s grim expectations, 36.3%, up from 34.8% percent in the year-earlier quarter.
For the fourth quarter, Apple, as per usual, offered a rather restrained forecast, projecting revenue of $8.7 billion to $8.9 billion and EPS of $1.18 to $1.23, less than the $9.1 billion and $1.30 analysts have been projecting.
Apple shipped 5.2 million iPhones in the June quarter, 10.2 million iPods, and 2.6 million Macs, the company said.
The reported sales and profit don’t include some proceeds from iPhone that are recognized ratably over months that a phone is owned. Including those non-GAAP amounts, Apple generated $9.74 billlion of “adjusted sales” and $1.94 billion of “adjusted net income.” On a per share basis, using a diluted share count of 909.2 million shares, that comes to about $2.13 per share in adjusted EPS, I reckon.
Apple generated $2.3 billion in cash flow from operations in the quarter, the company said.
Apple will host a conference call with analysts at 5 pm, which you can listen to here. http://www.apple.com/quicktime/qtv/earningsq309/
Despite the restrained forecast, Apple shares rose $5.73, or 3.8%, to 157.24 in after-hours trading, after falling 1% during the regular session.
Source: http://blogs.barrons.com/techtraderdaily/2009/07/21/apple-q3-rev-eps-beat-52m-iphones-sold-stock-rises/
DD- Earnings(Richie Civello)
Wilmington-based DuPont on Tuesday reported earnings of $417 million, or 46 cents per share, in the three months ended June 30, down from $1.08 billion, or $1.18 per share a year earlier.Overall revenues tumbled 24 percent to $7 billion, from $9.3 billion a year ago.Excluding one-time items, adjusted earnings were 61 cents per share, beating the consensus estimate from analysts polled by Thomson Reuters of 53 cents a share on revenue of $7.1 billion.
Overall product volume is down 19%. Chemicals produced by the company are used in a wide variety of industries and are a main component of the decreased volume. Auto and housing products are also reasons for this decrease in business. On the positive side DuPont's agriculture segment saw positive growth due to increased prices.
Much of their profit is due to cost cutting which the company says the company can maintain at a 75% level. Also new product volume is up 20% to 316 products when compared to YoY numbers.
I am concerned that the company will stay within the same range unless there is some significant growth in either the housing/auto industries. Their agriculture segment, while strong, is too small a segment to keep the company up. In order for DD move out of the high $20 range either positive auto or housing news will hae to come out.
Overall product volume is down 19%. Chemicals produced by the company are used in a wide variety of industries and are a main component of the decreased volume. Auto and housing products are also reasons for this decrease in business. On the positive side DuPont's agriculture segment saw positive growth due to increased prices.
Much of their profit is due to cost cutting which the company says the company can maintain at a 75% level. Also new product volume is up 20% to 316 products when compared to YoY numbers.
I am concerned that the company will stay within the same range unless there is some significant growth in either the housing/auto industries. Their agriculture segment, while strong, is too small a segment to keep the company up. In order for DD move out of the high $20 range either positive auto or housing news will hae to come out.
Monday, July 20, 2009
CAT - Recent News (Opanowski)
Caterpillar Incorporated was up 7.83% on July 20th, on the news that Bank of America-Merrill Lynch has upgraded CAT to a "buy."
Bank of America-Merrill Lynch stated that the end of the second quarter could possibly mark the bottom of the construction sector.
Also, CAT is up 8.73% as of 3:30 PM EST, July 21 on some recent news put out by management. Although CAT's second-quarter profits were down a dramatic $1.14 per share from Q2 2008 to Q2 2009 at $0.60 per share, management has updated their outlook for the remainder of 2009. Management says that it is very satisfied with the results of the various cost cutting strategies they have been implementing for the past several months and feels confident in the way they have steered the company through the recession and is optimistic going forward.
The updated sales and revenue range for 2009 is $32 billion to $36 billion and the profit per share range is $1.15 to $2.25.
Some concerns I have that still need to be addressed are whether demand for their products is going to increase anytime soon and how much the new cap-and-trade policy will affect CAT.
Bank of America-Merrill Lynch stated that the end of the second quarter could possibly mark the bottom of the construction sector.
Also, CAT is up 8.73% as of 3:30 PM EST, July 21 on some recent news put out by management. Although CAT's second-quarter profits were down a dramatic $1.14 per share from Q2 2008 to Q2 2009 at $0.60 per share, management has updated their outlook for the remainder of 2009. Management says that it is very satisfied with the results of the various cost cutting strategies they have been implementing for the past several months and feels confident in the way they have steered the company through the recession and is optimistic going forward.
The updated sales and revenue range for 2009 is $32 billion to $36 billion and the profit per share range is $1.15 to $2.25.
Some concerns I have that still need to be addressed are whether demand for their products is going to increase anytime soon and how much the new cap-and-trade policy will affect CAT.
Subscribe to:
Posts (Atom)