Corning's net income rose to $785 million, or 50 cents a share up from $643 million, or 41 cents a share a year earlier. Excluding one time items adjusted earnings came in at 51 cents a share, just a penny short of Wall Street expectations.
Revenue rose 8% to $1.6 billion from $1.48 billion. Corning expects that glass prices will fall in the single digits during 4Q year-over-year while sales stay flat.
LCD's continue to be a healthy market although demand has not been up to expectations this year.
Tuesday, November 2, 2010
Thursday, October 28, 2010
International Paper Co. (IP) F3Q10 Earnings 10/27/10-(Jeremy Pellizzari)
International Paper reported third-quarter earnings on 10/27/2009. They reported record earnings of $397 million or $0.91 per share, which beat the market expectations of $0.79 per share. This is an increase from second-quarter EPS of $0.41, and an increase from 3Q 2009 EPS of $0.37. The increase in earnings for this quarter was led by strong business, realization of price increases and restructuring, improved operations, and a favorable business mix.
The Industrial Packaging segment saw a record increase in earnings due to realization of price increases and improved input costs. Its profits grew 17% year over year and 7% sequentially amounting to $2.6 billion. The Printing Papers segment saw a 5% revenue growth year over year and 7% revenue growth sequentially. This can be attributed to favorable pulp and paper pricing, reduced fixed costs, fewer mill outages, bad debt recovery, and increased volumes to the U.S. and Europe. Consumer Packaging posted revenues of $870 million, up 10% year over year and 3% sequentially. Higher volumes, realization of price increases, and fewer maintenance outages drove the improvement. The Forest Products segment sold off a majority of their land portfolio and recorded revenues of $205 million, which was an improvement from the $5 million both sequentially and year over year. Their last segment, xpedx, which is their distribution segment, shows a year over year increase of 5% to revenues and an 8% sequential increase in revenues. Although revenue increased, they showed a drop in operating profit of 15%, due to increased overhead and lower margins.
The company reported an increase in free cash flow of more than $750 million dollars and ended the quarter with more than $1.4 billion dollars in cash on hand. They also reduced their long-term debt by $200 million and put $1.4 billion dollars into their pension plan. Some investors were concerned with the debt of the company and the status of their pension plan and I believe they are showing steps towards taking care of these issues. John Faraci, CEO, stated in their fourth-quarter outlook that they expect to continue to see strong earnings and free cash flow, but at seasonally lower levels than the third quarter. I believe the company has a strong outlook for the long-term, but don’t see much higher return in the near future.
-Jeremy
The Industrial Packaging segment saw a record increase in earnings due to realization of price increases and improved input costs. Its profits grew 17% year over year and 7% sequentially amounting to $2.6 billion. The Printing Papers segment saw a 5% revenue growth year over year and 7% revenue growth sequentially. This can be attributed to favorable pulp and paper pricing, reduced fixed costs, fewer mill outages, bad debt recovery, and increased volumes to the U.S. and Europe. Consumer Packaging posted revenues of $870 million, up 10% year over year and 3% sequentially. Higher volumes, realization of price increases, and fewer maintenance outages drove the improvement. The Forest Products segment sold off a majority of their land portfolio and recorded revenues of $205 million, which was an improvement from the $5 million both sequentially and year over year. Their last segment, xpedx, which is their distribution segment, shows a year over year increase of 5% to revenues and an 8% sequential increase in revenues. Although revenue increased, they showed a drop in operating profit of 15%, due to increased overhead and lower margins.
The company reported an increase in free cash flow of more than $750 million dollars and ended the quarter with more than $1.4 billion dollars in cash on hand. They also reduced their long-term debt by $200 million and put $1.4 billion dollars into their pension plan. Some investors were concerned with the debt of the company and the status of their pension plan and I believe they are showing steps towards taking care of these issues. John Faraci, CEO, stated in their fourth-quarter outlook that they expect to continue to see strong earnings and free cash flow, but at seasonally lower levels than the third quarter. I believe the company has a strong outlook for the long-term, but don’t see much higher return in the near future.
-Jeremy
Eco-Lab Releases 3Q Results
Ecolab reported their earnings on 10/26/10, and reported a rise in 3Q rise of 20 percent due to higher domestic and international sales. The Company claims are Net Income grew $174.2 million or 74 cents per share, compared to be 60 cents per share in the same quarter a year ago. Revenue was $1.56 billion, which is an increase of about 1 percent from just under $1.55 billion. Analyst had expected profit to be 65 cents per share and 1.59 billion in revenue (Thomson Reuters Poll). The cleaning and sanitizing revenue grew 4% to $719 million. However, other U.S service revenue was only $118 million.
International revenue climbed 3 % to $775 million, particularly in Kay, Asia Pacific and Latin America. The introduction of the Scrub-N-Go, the floor cleaner for QSR restaurants, was a huge factor for earnings in Kay. The Company wishes to continue this growth in Kay and to continue to be aggressive gaining accounts and achieve better sales. For fourth quarter predictions, analysts believe the company will show earnings of $ .59-$ .61 per share.
-Jimmy
International revenue climbed 3 % to $775 million, particularly in Kay, Asia Pacific and Latin America. The introduction of the Scrub-N-Go, the floor cleaner for QSR restaurants, was a huge factor for earnings in Kay. The Company wishes to continue this growth in Kay and to continue to be aggressive gaining accounts and achieve better sales. For fourth quarter predictions, analysts believe the company will show earnings of $ .59-$ .61 per share.
-Jimmy
Wednesday, October 27, 2010
Ensco Plc (ESV) Q3 2010
Ensco Plc (ESV) reported Q3 earnings on 10/20/2010, posting EPS of $0.92- beating analyst estimate of $0.89. Q3 revenue was $428,000,000, up 5% from Q3 of 2009. Ensco 8503 was completed on time in Singapore, bringing the total ultra deepwater semi’s to 5 (four 8500 series, and one 7500). Deepwater drilling revenue was up 77% compared to Q3 of 2009, driven mainly by Ensco 8501. Deepwater drilling expense was up 38% due to the addition of Ensco 8501, and Ensco 8502. Ensco 7500 was placed in the ship yard, offsetting $10,000,000 of the deepwater drilling revenue. Ensco 109, an ultra high speed jack up suited for deep gas drilling, was acquired at $186,000,000 as well. Ensco 69 disputes have been settled, resulting in Ensco 69’s reclassification in continuing operations. This added $0.04 to EPS. There is a pending agreement to sell Ensco 60, moving the rig to discontinued operations as a result. The company is expecting $26,000,000 for the sale of Ensco 60, but has not recognized that transaction yet. This negatively impacted EPS by $0.01, as opposed to adding $0.04 as it did in Q3 of 2009.
No revenue was recognized for Ensco 8502, as a result of a pending contract. This rig was placed in service on August 13th, and has been recognized as an operating expense. Resolving this dispute is a key objective for ESV in Q4. Another factor is going to be Ensco’s ultimate contracting for the 7500 rig. Management claims that they have had an increase in requests regarding the rig, but still have not made their final decision. Q4 revenues are expected to be between $345- $400 million, with the wide range resulting from the uncertainties in the deepwater segment. Ensco is poised well in comparison to its competitors in regards to new regulations expected within the industry. The government of Singapore honored Ensco with a Safety Award for their construction of Ensco 8503.
~Eric
No revenue was recognized for Ensco 8502, as a result of a pending contract. This rig was placed in service on August 13th, and has been recognized as an operating expense. Resolving this dispute is a key objective for ESV in Q4. Another factor is going to be Ensco’s ultimate contracting for the 7500 rig. Management claims that they have had an increase in requests regarding the rig, but still have not made their final decision. Q4 revenues are expected to be between $345- $400 million, with the wide range resulting from the uncertainties in the deepwater segment. Ensco is poised well in comparison to its competitors in regards to new regulations expected within the industry. The government of Singapore honored Ensco with a Safety Award for their construction of Ensco 8503.
~Eric
Ford Releases Strong 3Q Earnings
Yesterday, October 26th, Ford Motor Company posted unexpectedly strong 3Q earnings, proving the company is making a turnaround. This is the 6th continuous quarter of profit posted for the company, as F is gaining market share and sustaining growth. F reported a better than expected earnings of $1.7 billion, or $0.43 a share, up $690 million, or $0.14 a share, from a year earlier. F market share increased to 15.9% this quarter, up from 14.6% a year ago.
Ford being the only car maker to avoid a US government bailout, is has been diligently working to improve it's balance sheet by paying off debts and eliminating liabilities. Ford's total debt will be paid down to $22.8 billion, compared to $33.6 billion a year ago. The reduction of company debt will save F an estimated $800 million in annual interest payments. Company officials predict debt net of cash, currently standing at $2.6 billion, will be eliminated by the end of the year, which is one year earlier than the company predicted 3 months ago. The good press surrounding the company has been reflected in it's stock price which hit $14 on Monday.
~Sarah
Ford being the only car maker to avoid a US government bailout, is has been diligently working to improve it's balance sheet by paying off debts and eliminating liabilities. Ford's total debt will be paid down to $22.8 billion, compared to $33.6 billion a year ago. The reduction of company debt will save F an estimated $800 million in annual interest payments. Company officials predict debt net of cash, currently standing at $2.6 billion, will be eliminated by the end of the year, which is one year earlier than the company predicted 3 months ago. The good press surrounding the company has been reflected in it's stock price which hit $14 on Monday.
~Sarah
Tuesday, October 26, 2010
LIFE 3Q Earnings
Life Technologies announced today their quarterly earnings for the third quarter FY2010 ending September 30th. They reported third quarter GAAP revenue of $867million. Their EPS was $0.56, and FCF was $187million. On a Non-GAAP basis revenue was $869 million which was an increase of 8% from $805 reported in Q3 of 2009. Non-GAAP gross margins were 66.8% 20 bp lower than prior years due to impact from mix of sales. Non-GAAP operating margin however was 29% which was an increase of 170 bp from last year’s 3rd quarter. This improvement resulted from acquisition related synergies and cost controls implemented this year.
Cash flow from operating activities for the third quarter was $215 million. Third quarter capital expenditures were $28 million and resulting free cash flow was $187 million. The company ended the quarter with $537 million in cash and short-term investments, including $19 million held as restricted cash. Regional organic growth rates for the quarter compared to the same quarter of the prior year were as follows: the Americas increased 8 percent, Europe 5 percent, and Asia Pacific 7 percent. Japan declined 1 percent. Revenue from orders transacted through Life Technologies’ eCommerce channels grew 26% percent during the quarter. Over 50% of all transactions are processed using eCommerce platforms.
LIFE beat expected EPS by 9 cents $0.87 over $0.78 Non-GAAP forecasted. Management has risen their guidance for FY 2010 to $3.48-$3.52 from $3.35-$3.50. With LIFE beating estimates again this quarter, it extends their record of beating estimates I believe now for as far back as Q1 2009. Afterhours the stock has been up 2%. Historically LIFE has seen significant slowdown in business during 3Q yet these were not far off of Q2. With management increasing their outlook I believe we should be seeing upside in the stock as the market prices management’s new guidance in. Furthermore, LIFE has been producing mid-high single digit organic growth since 2007 and this quarter’s organic growth was 6% providing evidence that management is capable of continuing this growth which will result in an increase of equity value. I will update the model with this quarter’s results and post my new price target.
-Michael Arias
Cash flow from operating activities for the third quarter was $215 million. Third quarter capital expenditures were $28 million and resulting free cash flow was $187 million. The company ended the quarter with $537 million in cash and short-term investments, including $19 million held as restricted cash. Regional organic growth rates for the quarter compared to the same quarter of the prior year were as follows: the Americas increased 8 percent, Europe 5 percent, and Asia Pacific 7 percent. Japan declined 1 percent. Revenue from orders transacted through Life Technologies’ eCommerce channels grew 26% percent during the quarter. Over 50% of all transactions are processed using eCommerce platforms.
LIFE beat expected EPS by 9 cents $0.87 over $0.78 Non-GAAP forecasted. Management has risen their guidance for FY 2010 to $3.48-$3.52 from $3.35-$3.50. With LIFE beating estimates again this quarter, it extends their record of beating estimates I believe now for as far back as Q1 2009. Afterhours the stock has been up 2%. Historically LIFE has seen significant slowdown in business during 3Q yet these were not far off of Q2. With management increasing their outlook I believe we should be seeing upside in the stock as the market prices management’s new guidance in. Furthermore, LIFE has been producing mid-high single digit organic growth since 2007 and this quarter’s organic growth was 6% providing evidence that management is capable of continuing this growth which will result in an increase of equity value. I will update the model with this quarter’s results and post my new price target.
-Michael Arias
Monday, October 25, 2010
Travelers Companies (TRV) 3Q Earnings
On Thursday October 21, The Travelers Companies Inc. (TRV) beat the consensus estimate of $1.51 when they reported third-quarter earnings per share of $2.11, up from $1.65 in the same period last year. TRVs quarterly Revenue of 6.48 Billion, net written premiums of 5.46 Billion, and net income of 1.005 Billion, all topped their respective 2009 figures of 6.33 billion, 5.34 billion, and 935 million. The combined ratio rose slightly to 90.6% but remained on the profitable side of the 100% benchmark. TRV also increased their full year EPS target range to $5.75 - $5.95, surpassing the $5.69 per share analysts had forecasted. This was the solid quarter TRV needed to restore investor confidence after missing estimates in their last two attempts.
The EPS increase outpaced the growth of the core business because net income included a one time, after tax, gain of $133 million, catastrophe claims were much lower than normal, and the number of outstanding shares decreased by 92 million.
Travelers CEO and Chairman Jay Fishman characterized the situation this way, "While current profitability across our diversified commercial insurance businesses is solid, the general economic environment continues to present challenges. Reinvestment yields are low by historical standards and exposure and pricing remain flat."
UASBIG will continue to hold TRV, but we are currently investigating the capital allocation strategies of TRV and their competitors. TRV returns a high percentage of excess capital to shareholders through dividends and stock repurchases, but they might be compromising their long term health by not expanding their core business. 94% of their operations take place in the ultracompetitive, and economically challenged domestic market, while the remaining 6% is spread over the equally demanding markets in Canada, the United Kingdom, and the Republic of Ireland. The opposite approach is being taken by some competing Property and Casualty companies. They are using excess capital to expand into the developing Asian and South American markets. At this point it is unclear which strategy is more prudent, but UASBIG will continue to monitor the situation.
~Zach
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