Verizon Communications 3Q Earnings

Verizon reported 3rd quarter 2010 earnings of $0.58 per share beating analysts’ expectations of $0.56 per share by 4.32%.

VZ reported cash flows from operations of $25.2 billion and free cash flow of $13.4 billion up 25.3%. The company added an additional 997,000 customers this quarter amounting to totals of 93.2 million customers and 101.1 million connections. VZ also saw 226,000 additional FIOS internet subscribers and 204,000 FIOS TV subscribers demonstrated growth in the company’s wireline segment.

Verizon will be releasing the Apple iPad WiFi starting October 28th and will be launching the Droid X and Droid 2 in the future. Verizon has demonstrated that product and contract development is of priority and has exemplified hard evidence of the company’s ability to compete with other wireless device and service providers. With strong capital gains in the third quarter, expected additional upside in the 4th, and a dividend yield a little over 6%, UASBIG Tech/Telecomm analysts are confident in Verizon’s position in the portfolio.

~Chad

Caterpillar 3Q Earnings

Caterpillar: The third quarter went extremely well for Cat. Improved numbers reflect what management said was improved demand for construction equipment in both developed and emerging markets. Consensus analyst estimates according to Reuters were eps of 1.09. Cat topped these estimates reporting an eps of $1.22 compared with an eps of .64 in q3 of last year. Sales and revenue were 11.13 billion up 53% from last year. Machinery and engines sales were $10.45 billion, a 59% rise from $6.58 billion a year ago. While machinery sales grew 84% to $7.20 billion, engines sales increased 21% to $3.25 billion.

-Ryan

ITW

ITW reported third quarter earnings of $419.3 million which translates to 83 cents per share. This was a significant increase from q3 of last year which had earnings of 60 cents per share. the stock beat consensus street estimates by a penny. Despite narrowly beating expectations the stock took a major hit last week when it was downgraded by Deutsche Bank from a buy to a hold. Deutsche lowered their 12 month price target from $59 to $54.

Novartis AG Beats Estimates

Q3 earnings for Novartis have increased, beating both analyst expectations and management’s forecast. Novartis reported $2.3 billion in net income this quarter, or 99 cents per share. Income rose to $2.3 billion from 2.1 billion in Q3 2009, representing an increase of 10 percent. Core earnings per share rose by 16 percent to $1.36 per share, beating analyst expectations of $1.29 per share.

New drugs Afinitor and Gilenya, along with the acquisition of Alcon, helped boost sales 13 percent. Novartis acquired part of Alcon, an eye-care product company, in 2008, and strong Q3 results may help them in their plan to buy out the rest of the company. Novartis is currently offering 2.8 shares per share of Alcon, and any boost in share price will make the offer more attractive.

~Ryan Kennedy

MCD 3Q earnings

McDonald's Corp. posted 3Q earnings today, beating analyst estimates. For the three months ending Sept. 30, McDonald's earned $1.39 billion, or $1.29 per share, up from $1.26 billion or $1.15 per share last year. The company had heavy sales with it's frappes, fruit smoothies, and items on the dollar menu. The posted earnings pushed the stock price past it's 52-week high, hiting $79.48. This marks another continuous quarter of MCD outperforming competitors, Burger King and Wedny's. Unlike its competitors, MCD has launched popular items like the Angus Snack Wrap, frappees and smoothies, and is expected to sell oatmeal to go, available all day long. Sales at stores globally that have been open longer than 13 months had average increase of 6%.

~Sarah

Gilead Earnings Beats Estimates

Driven by an increase in sales of its HIV drug portfolio, Gilead Sciences beat estimates, reporting 3Q net income of $704 million, or 83 cents a share. This represents a 4.6% increase over the company's 3Q results of last year. When adjusted, the company posted earnings of 90 cents a share, beating the street consensus of 87 cents a share.

Total sales of Gilead's antiviral drugs, which includes HIV and other viral diseases, rose 12% this past quarter to $1.65 billion. Meanwhile, Atripla and Truvada both beat expectations as well. The headlining drugs recorded 3Q sales of $748 million and $669 million, respectively

-David

Western Digital (WDC) FY2011 Q1 Earnings

Western Digital Corp (WDC) posted first quarter earnings for fiscal year 2011 on October 19th 2010. Earnings were $0.81 beating analysts’ expectations by 3.70%.

WDC announced quarter one FY2011 revenue of $2.4 Billion, hard-drive shipments of 50.7 million and net income of $197 Million compared to quarter one FY2010 revenue of $2.2 Billion, 44.1 million shipping hard-drives, and net income of $288 Million.

President and CEO John Coyne stated that even with competitive pricing in the industry, WDC was capable of remaining profitable, grew revenues and shipments, and generated $390 Million in cash from operations.

UASBIG Tech/Telecomm analysts are interested in WDC ability to continue competing with its main competitor Seagate. With recent news regarding Seagate’s possible privatization, WDC is left in a unique place within the industry. WDC also faces significant competition from other memory product producers, producing non magnetic memory products that offer high sustainability and performance.

~Chad