Life Technologies released earnings this past Thursday 1/28. Earnings per diluted share for 4Q 2009 were GAAP $0.26 and on a non-GAAP basis was $0.80. This beat analyst expectations of $0.75, making it the 5th quarter in a row to beat earnings. Full year EPS on a GAAP basis was $0.80, and on a non-GAAP basis was $3.04. Revenue growth y/y rose 11% caused by double digit growth in Europe and Asia/Pacific and high single digit growth in the Americas and Japan. For the full year regional organic growth rates were as follows: the Americas increased 4 percent, Europe 9 percent, Asia Pacific 25 percent and Japan 4 percent.
Non-GAAP operating margin was 25.8 percent in the fourth quarter, representing an increase of approximately 300 basis points over the same period in 2008. The increase in operating margin primarily resulted from gross margin expansion and synergies. Full year operating margin was 26.6 percent; an increase of 300 basis points over the prior year, resulting from improved gross margin and decreased headcount and travel related expenses. Full year cash flow from operating activities was $715 million, capital expenditures were $181 million and free cash flow was $534 million.
For 2010 I see continued growth for Life Technologies. As I have mentioned before molecular research is a growing field of interest for governments and is evidenced by the 25% raise of organic growth in Asia Pacific. I continue to see this growth through 2010. Life Tech is also entering the flow cytometry market with the first of its kind flow cytometry system, Attune(TM), designed to use sound waves to precisely control the movement of cells, a 1.4 billion dollar market. Furthermore, In fact, by the second half of this year when the SOLiD 4hq package, an upgrade to SOLiD 4, will be available, researchers will be able to generate 300 gigabases of mappable data DNA at 99.99% accuracy. Management is predicting a non-GAAP EPS for 2010 of around 3.30-3.50. I maintain that a price target of 57.00 is a conservative one, and my model will be updated with 4Q numbers which will be sent out tomorrow.
----Michael Arias
Saturday, January 30, 2010
Friday, January 29, 2010
Thursday, January 28, 2010
GLW Corning Q3 2009 - Chad Schneider
Corning reported earnings this quarter of $0.42 beating expectations of $0.38. EPS was down $1.28, down 12% from last year. Display Technologies continued to expand 18% compared to last year. This expansion in the Display Technologies segment can primarily be attributed to the dropping prices of LCD TV’s , a high demand during the holiday season, and constant infiltration in the technology market.
Despite slight setbacks in a few of Corning’s many segments our investment thesis holds true. The demand for LCD TV’s will continue to rise and prices will remain flat if not fall according to analyst’s expectations.
Despite slight setbacks in a few of Corning’s many segments our investment thesis holds true. The demand for LCD TV’s will continue to rise and prices will remain flat if not fall according to analyst’s expectations.
VZ Verizon Wireless Q4 2009 - Chad Schneider
Verizon reported a net loss of $0.23 per diluted chair with adjusted earnings before special items meeting expectations at $0.54 cents a share. The special items causing this differentiation derive from the restructuring plan of the Wireline Segment. With considerable job cuts Verizon has been forced to pay close to 3 billion dollars in severance and pension package settlements. In addition there was 246 million dollars in merger integration from Alltel.
Substantial growth in Verizon is being fueled through the Wireless Segment with an additional 2.2 million wireless subscribers reported this quarter. Growth is expected to continue especially due to the new structure of wireless devices. A majority of new devices now require a data plan which has allowed Verizon to boost profits due to data services high profit margin.
Verizon is currently trading at $29.33 which is down 2.59%. This can be justified through the general pull back in the market, Verizon’s obligation to pay severance settlements, and concerns of malware infiltrating the Android application system. However these were all risks that have been factored into the model and thesis. Verizon’s continued growth, success of the Droid, and strong dividend leaves me confident in its future performance in the portfolio.
Substantial growth in Verizon is being fueled through the Wireless Segment with an additional 2.2 million wireless subscribers reported this quarter. Growth is expected to continue especially due to the new structure of wireless devices. A majority of new devices now require a data plan which has allowed Verizon to boost profits due to data services high profit margin.
Verizon is currently trading at $29.33 which is down 2.59%. This can be justified through the general pull back in the market, Verizon’s obligation to pay severance settlements, and concerns of malware infiltrating the Android application system. However these were all risks that have been factored into the model and thesis. Verizon’s continued growth, success of the Droid, and strong dividend leaves me confident in its future performance in the portfolio.
Tough Year for Valero
On Wednesday Valero reported its 4Q earnings. It has been a tough year for refiners as the price of oil has nearly doubled, while at the same time prices at the pump have remained low, hurting margins. Valero reported a net loss of $1.98 billion, or $3.67 a share for 2009. For the fourth quarter Valero reported a loss of $182 million or 32 cents a share, beating the street estimates of a 47 cent loss.
http://www.cnbc.com/id/35097087/site/14081545/for/cnbc/
Going forward I would like to update the model and think about repositioning ourselves within the energy sector.
Thomas Boeje
http://www.cnbc.com/id/35097087/site/14081545/for/cnbc/
Going forward I would like to update the model and think about repositioning ourselves within the energy sector.
Thomas Boeje
Wednesday, January 27, 2010
Traveler's Beats Estimates
Travelers beat estimates on Tuesday with a Q4 profit of $1.3billion, a jump of 60% compared to the previous year. Revenue increased 11% and earnings amounted to $2.36 a share, compared to $1.35 a year earlier. Analysts were estimating a earnings per share of $1.50.
The increase in underwriting by $215million was said to be the main catalyst for the record profits. The underwriting gain of $540million was in par with Q4 2008, and the company had a combined ratio of 94.2% compared to 91% the previous year. There was also an increase in the alternative investments. Catastrophe losses were lower than expected as well which increased the bottom line.
Written premiums decreased 4% due to customers cutting back on their policies, and we should expect premium growth to remain flat or negative until the economy bounces back. Travelers is in good financial position though, with a strong balance sheet and continued positive combined ratios. Travelers is continuing with their share-repurchase program and they have raised guidance for 2010 to $5.20-$5.50 from $4.70.
The increase in underwriting by $215million was said to be the main catalyst for the record profits. The underwriting gain of $540million was in par with Q4 2008, and the company had a combined ratio of 94.2% compared to 91% the previous year. There was also an increase in the alternative investments. Catastrophe losses were lower than expected as well which increased the bottom line.
Written premiums decreased 4% due to customers cutting back on their policies, and we should expect premium growth to remain flat or negative until the economy bounces back. Travelers is in good financial position though, with a strong balance sheet and continued positive combined ratios. Travelers is continuing with their share-repurchase program and they have raised guidance for 2010 to $5.20-$5.50 from $4.70.
MCD F4Q09 Earnings 1/22/10 Roopa Bhopale
On January 22 McDonald’s announced fourth quarter and fiscal year ending 12/31/09 results with highlights including yearly global comparable sales rising 3.8% with US sales increase 2.6%, Europe growing 5.2%, and APMEA jumping 3.4%. McDonald’s yearly combined operating margin grew to 30.1% while yearly consolidated operating income rose 6%. EPS for the fiscal year increased by 9% to $4.11 compared to previous numbers. Shareholders saw $5.1 billion in dividends and share repurchases for the year.
Specific to the fourth quarter, global comparable sales rose 2.3%. US operating income in the fourth quarter increased 5% while Europe grew by 20% and APMEA jumped up by 51%. These figures were driven by Australian sales, Chinese store expansion, and some lower commodity costs. Fourth quarter EPS were at $1.11, up $0.08 because of liability resolution from a former transaction in Latin America. Currency translation increased by $ 0.07 per share. The fourth quarter dividend was $0.55 per share of common stock.
Jim Skinner, CEO, was quoted as saying "McDonald’s 2009 results reflect the broad-based strength of our global business…Our in-demand food and beverages, unparalleled convenience and superior value at every level of our menu enabled us to serve 60 million customers per day during 2009, up 2 million per day over the prior year. In addition, McDonald’s profitability increased as we marked our sixth consecutive year of positive comparable sales in every geographic segment and generated higher global revenues, operating income and earnings per share in constant currencies - all tremendous accomplishments given the tough global economy… As we begin 2010, McDonald’s January global comparable sales trend remains positive. We will continue our fiscal discipline by investing prudently and returning excess cash to shareholders. I am confident that the collective efforts of our franchisees, suppliers and employees will continue to drive value for all stakeholders."
Specific to the fourth quarter, global comparable sales rose 2.3%. US operating income in the fourth quarter increased 5% while Europe grew by 20% and APMEA jumped up by 51%. These figures were driven by Australian sales, Chinese store expansion, and some lower commodity costs. Fourth quarter EPS were at $1.11, up $0.08 because of liability resolution from a former transaction in Latin America. Currency translation increased by $ 0.07 per share. The fourth quarter dividend was $0.55 per share of common stock.
Jim Skinner, CEO, was quoted as saying "McDonald’s 2009 results reflect the broad-based strength of our global business…Our in-demand food and beverages, unparalleled convenience and superior value at every level of our menu enabled us to serve 60 million customers per day during 2009, up 2 million per day over the prior year. In addition, McDonald’s profitability increased as we marked our sixth consecutive year of positive comparable sales in every geographic segment and generated higher global revenues, operating income and earnings per share in constant currencies - all tremendous accomplishments given the tough global economy… As we begin 2010, McDonald’s January global comparable sales trend remains positive. We will continue our fiscal discipline by investing prudently and returning excess cash to shareholders. I am confident that the collective efforts of our franchisees, suppliers and employees will continue to drive value for all stakeholders."
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