Wall Street analysts are not hopeful about Q1 earnings season,which began,in accordance with tradition,with Alcoa's report after the closing bell.It is supposed to be the worst earnings season since the financial crisis.They foresee a 10% drop in Q1 profit.Despair is unwarranted,however..By Q3,the Street expects a rebound into earnings growth;and,by Q4,it predicts a return to profit growth.*
Scott Wren,Senior Equity Strategist and Managing Director at Wells Fargo Advisors,recommends leaning into those cyclical sectors that have fared best since the February low:consumer discretionary;industrials;and technology.*
Alcoa reported earnings per share of 0.07 per share versus the estimate of 0.02,a significant beat.This success was tempered,though,by their revenue of 4.95 billion versus an estimate of 5.2 billion,a slight miss.The ambiguity may be ascribed to the steep decline in aluminium prices.*
Also reporting this week will be money center banks JP Morgan Chase,Citigroup and Bank of America/Merrill Lynch.*
Alcoa (AA),iShares Global Consumer Discretionary ETF (RXI)
Showing posts with label earnings season. Show all posts
Showing posts with label earnings season. Show all posts
Monday, April 11, 2016
Friday, November 15, 2013
Cisco Craters on Poor Revenue,Guidance
Shares of tech titan Cisco Systems lost more than a tenth of their value in Thursday trading after an appalling earnings report and conference call.Revenue missed expectations and the guidance for the new quarter was devastating.
Cisco delivered earnings per share of 0.53 per share and revenue growth of 2% year over year,CEO John Chambers said on the company's conference call.While not inconsistent with some of our large peers,this was below our expectations for the quarter.The last month of our quarter was during the U.S.Government shutdown.The impact on our federal business was approximately 50 million.Our team there did an exceptionally good job managing through this challenging period.However,the shutdown,debt ceiling negotiations and delayed key decisions exasperated the lack of confidence among business leaders we had highlighted over the past few quarters.
From a macroeconomic perspective,in the last two quarters our order growth rate in emerging countries,which is 20% of our product business,has gone from a positive 13% in total in Q3 to a negative 12% in Q1 of this year.You can do the math,but that's a drag of between 4 to 5 percentage points on our growth for this quarter.
The set-top box orders which are approximately 20% of our total service provider business was also down 20%,Mr.Chambers noted.
CFO Frank Calderoni added that,as a point of reference,approximately 70% of our product revenue is dependent on new orders each quarter.With that in mind,we expect total revenue to decline in the range of 8-10% on a year over year basis.
CNBC analyst Jim Cramer was not amused.Open rebellion has begun,Cramer said.My charitable trust owned this,blew it out,made a huge mistake believing.They should have pre-announced the guidance.This was not the ride othe Valkyries call.This was Tristan and Isolde,which ends badly.
There's a kind of a moment here where I think social media has overrun all bounds.You need seventeen year olds in the board rooms.I'm not being facetious.If you don't know what these people are doing-they understand that social media rules,taht the cell phone rules.The older people don't get it.You get a seventeen year old in PR.You've got to do something.It's a gold rush.You never have to show strong earnings,and you're dominant.They all want to be Amazon;they don't want to be Cisco.
Look,Mr.Chambers has been around a long time.They've got a lot of good employees.I know some of them.But the orders was just staggering.It was staggering.My charitable trust was just slack-jawed,CNBC's popular Jim Cramer complained.
Cisco Systems,Inc.(CSCO)
Cisco delivered earnings per share of 0.53 per share and revenue growth of 2% year over year,CEO John Chambers said on the company's conference call.While not inconsistent with some of our large peers,this was below our expectations for the quarter.The last month of our quarter was during the U.S.Government shutdown.The impact on our federal business was approximately 50 million.Our team there did an exceptionally good job managing through this challenging period.However,the shutdown,debt ceiling negotiations and delayed key decisions exasperated the lack of confidence among business leaders we had highlighted over the past few quarters.
From a macroeconomic perspective,in the last two quarters our order growth rate in emerging countries,which is 20% of our product business,has gone from a positive 13% in total in Q3 to a negative 12% in Q1 of this year.You can do the math,but that's a drag of between 4 to 5 percentage points on our growth for this quarter.
The set-top box orders which are approximately 20% of our total service provider business was also down 20%,Mr.Chambers noted.
CFO Frank Calderoni added that,as a point of reference,approximately 70% of our product revenue is dependent on new orders each quarter.With that in mind,we expect total revenue to decline in the range of 8-10% on a year over year basis.
CNBC analyst Jim Cramer was not amused.Open rebellion has begun,Cramer said.My charitable trust owned this,blew it out,made a huge mistake believing.They should have pre-announced the guidance.This was not the ride othe Valkyries call.This was Tristan and Isolde,which ends badly.
There's a kind of a moment here where I think social media has overrun all bounds.You need seventeen year olds in the board rooms.I'm not being facetious.If you don't know what these people are doing-they understand that social media rules,taht the cell phone rules.The older people don't get it.You get a seventeen year old in PR.You've got to do something.It's a gold rush.You never have to show strong earnings,and you're dominant.They all want to be Amazon;they don't want to be Cisco.
Look,Mr.Chambers has been around a long time.They've got a lot of good employees.I know some of them.But the orders was just staggering.It was staggering.My charitable trust was just slack-jawed,CNBC's popular Jim Cramer complained.
Cisco Systems,Inc.(CSCO)
Tuesday, April 16, 2013
Should You Invest in JP Morgan Chase
Money center bank JP Morgan Chase scored record profits for Q1,up 33% to 6.5 billion dollars.Their credit quality also improved and they raised their dividend.On the down side,revenue dropped 3.6% to 25.1 billion because of lower interest income,as well as lower margins and higher costs in their mortgage business.
Overall,it was a good quarter at Chase.Interest income is something they have no control over.That is based on Federal Reserve policy.
We do believe in getting rid of too big to fail,said Marianne Lake,Chief Financial Officer,who is British.I've been in the financial community here at JP Morgan Chase for more than a decade.We're diligent in our work.We say what we know.We tell the truth.
It's intense to work with CEO Jaimie Dimon.We do have an open dialogue.I disagree with him now and then.
It's a really good bench.We're all old hands at JP Morgan Chase.The operations committee is a great bench,Ms.Lake emphasised.
JP Morgan Chase(JPM)
Overall,it was a good quarter at Chase.Interest income is something they have no control over.That is based on Federal Reserve policy.
We do believe in getting rid of too big to fail,said Marianne Lake,Chief Financial Officer,who is British.I've been in the financial community here at JP Morgan Chase for more than a decade.We're diligent in our work.We say what we know.We tell the truth.
It's intense to work with CEO Jaimie Dimon.We do have an open dialogue.I disagree with him now and then.
It's a really good bench.We're all old hands at JP Morgan Chase.The operations committee is a great bench,Ms.Lake emphasised.
JP Morgan Chase(JPM)
Monday, August 27, 2012
Asia This Day:Billabong Struggles With Tough Conditions
Australian clothing retailer Billabong has suffered its first fiscal year loss since going public in 2001.The group reported the net loss of 275.6 million dollars,and a revenue decline of 7.6%,on Monday.At the same time,it claimed a net profit ex-items of 33.5 million on global sales of 1.55 billion.
The group had hired Goldman Sachs to analyse its situation.Among its problems were poor sales in Europe and Australia;online competition for its brick and mortar stores;and rising raw materials costs.At its height,it operated about 700 stores worldwide.
CEO Laura Inman said that,at an underlying trading level,the Group remains profitable.As previously flagged to the market,the Group's results have been adversely impacted by various significant and exceptional items.In response,the Group has endeavoured to adopt a conservative position,implementing initiatives that will target both cost savings and revenue growth.
Billabong has sold part of its Nixon accessories brand;closed 58 underperforming stores;and reduced costs.It has also identified a further 82 non-performing stores for closure in FY 13.Cost savings of about 30 million are expected to be realised in 2013 from initiatives implemented in 2012.
The Group intends to simplify its business;leverage its Billabong brand;realise the strategic potential of retail;continue to expand Billabong's global e-commerce platform;and globalise and integrate the supply chain.The current challenging trading conditions are expected to continue in FY 13.
There will be no final dividend for FY 12,and none are expected to be paid for the first half of FY 13.Billabong had sold a 48.5% stake of its Nixon brand to Trilantic Partners,plus a further 3% to management,in order to stabilise its balance sheet and fend off an unsolicited bid by TPG Partners.
Billabong produces and markets sportswear and casual clothing,including surfwear,outerwear and accessories.
Billabong International Ltd(ASX:BBG),Goldman Sachs(GS)
The group had hired Goldman Sachs to analyse its situation.Among its problems were poor sales in Europe and Australia;online competition for its brick and mortar stores;and rising raw materials costs.At its height,it operated about 700 stores worldwide.
CEO Laura Inman said that,at an underlying trading level,the Group remains profitable.As previously flagged to the market,the Group's results have been adversely impacted by various significant and exceptional items.In response,the Group has endeavoured to adopt a conservative position,implementing initiatives that will target both cost savings and revenue growth.
Billabong has sold part of its Nixon accessories brand;closed 58 underperforming stores;and reduced costs.It has also identified a further 82 non-performing stores for closure in FY 13.Cost savings of about 30 million are expected to be realised in 2013 from initiatives implemented in 2012.
The Group intends to simplify its business;leverage its Billabong brand;realise the strategic potential of retail;continue to expand Billabong's global e-commerce platform;and globalise and integrate the supply chain.The current challenging trading conditions are expected to continue in FY 13.
There will be no final dividend for FY 12,and none are expected to be paid for the first half of FY 13.Billabong had sold a 48.5% stake of its Nixon brand to Trilantic Partners,plus a further 3% to management,in order to stabilise its balance sheet and fend off an unsolicited bid by TPG Partners.
Billabong produces and markets sportswear and casual clothing,including surfwear,outerwear and accessories.
Billabong International Ltd(ASX:BBG),Goldman Sachs(GS)
Tuesday, August 7, 2012
Should You Buy JC Penney Shares
Brian Nagel,CFA,Managing Director at Oppenheimer,said we launched coverage of JC Penney with an outperform rating.Many of the concerns about the company are already priced into the stock.As I look out,I think JC Penney is headed in the right direction.
Over the next few years,I see earnings of 3-5 dollars a share.They're finding a new store format that's gonna resonate with consumers in this environment.Their balance sheet will buy them some time as they do this.We've given the stock a price target of 30 dollars.
The Q2 results,which will be reported on Friday,will be messy.I think this is another transitional quarter as their turnaround begins to take hold,Mr.Nagel added.
Mr.Nagel is a Senior Analyst in Hardlines and Broadlines Retail.He has a BSBA from Creighton University.Oppenheimer is a full line brokerage,investment banking and wealth management firm.
JC Penney(JCP),Oppenheimer(OPY)
Over the next few years,I see earnings of 3-5 dollars a share.They're finding a new store format that's gonna resonate with consumers in this environment.Their balance sheet will buy them some time as they do this.We've given the stock a price target of 30 dollars.
The Q2 results,which will be reported on Friday,will be messy.I think this is another transitional quarter as their turnaround begins to take hold,Mr.Nagel added.
Mr.Nagel is a Senior Analyst in Hardlines and Broadlines Retail.He has a BSBA from Creighton University.Oppenheimer is a full line brokerage,investment banking and wealth management firm.
JC Penney(JCP),Oppenheimer(OPY)
Sunday, March 25, 2012
Asia This Day:China Construction Bank Reports
China Construction Bank has released its Q4 earnings report.The bank posted a net income gain of 4.8 billion dollars.Profit for the quarter was up by 25%,missing estimates.
Those were considerable earnings,but,all the same,there continues to be deep-seated concern at the country's biggest mortgage lender.China Construction Bank has the most exposure to local government lending,real estate lending and consumer debt.Any problems in those areas could well crimp future earnings at this prominent institution.
Credit quality indeed declined there,with non-performing loans increasing from 1.02% in the previous quarter to 1.09% in Q4.The financial titan cited a more severe global economic environment and domestic economic restructuring as challenges it faces in 2012.
China Construction Bank is represented in a number of exchange traded funds with a Chinese or emerging market orientation,so its performance does affect the well-being of foreign investors.
On Monday morning,Asian markets opened higher,with the MSCI Asia Pacific Index up by 0.15%.
iShares Trust FTSE/Xinhua China 25 index(FXI)
Those were considerable earnings,but,all the same,there continues to be deep-seated concern at the country's biggest mortgage lender.China Construction Bank has the most exposure to local government lending,real estate lending and consumer debt.Any problems in those areas could well crimp future earnings at this prominent institution.
Credit quality indeed declined there,with non-performing loans increasing from 1.02% in the previous quarter to 1.09% in Q4.The financial titan cited a more severe global economic environment and domestic economic restructuring as challenges it faces in 2012.
China Construction Bank is represented in a number of exchange traded funds with a Chinese or emerging market orientation,so its performance does affect the well-being of foreign investors.
On Monday morning,Asian markets opened higher,with the MSCI Asia Pacific Index up by 0.15%.
iShares Trust FTSE/Xinhua China 25 index(FXI)
Monday, February 20, 2012
With Big Profit,GM Back On Top
General Motors came back last year to achieve the most profitable year in its history,earning a record profit of 7.6 billion dollars.This put it back in the spot of the world's largest automaker,displacing Toyota Motors.
We're growing profit,but we've got more work to do all across the company to get it to where we want it,said GM Chief Financial Officer Dan Ammann.We've been in a restructuring plan.It made over a billion dollar improvement,but clearly it's not going far enough in this environment.
We're in a discussion with our shareholders and other stakeholders.We had north of 11% return in the pension plan assets,which has helped us a lot.This is a long term game.We've got a lot of actions that won't bear fruit until two or three years out,Mr.Ammann indicated.
The record profit will be shared in the form of 7,000 dollar bonus checks for every GM autoworker.As part of its restructuring plan,GM closed 14 plants and three service parts operations.It had received 49.5 billion in government assistance.For the government to recover this,the GM share price will have to double.
As part of its 2009 bankruptcy,GM had closed more than 1,300 dealerships in the U.S. and Canada,evoking widespread bitter criticism.Thanks to Congressional action,a little more than half of the closed U.S. dealers,or 661,were eventually invited to apply for reinstatement based on their business metrics.
General Motors(GM),Toyota Motors(TM)
We're growing profit,but we've got more work to do all across the company to get it to where we want it,said GM Chief Financial Officer Dan Ammann.We've been in a restructuring plan.It made over a billion dollar improvement,but clearly it's not going far enough in this environment.
We're in a discussion with our shareholders and other stakeholders.We had north of 11% return in the pension plan assets,which has helped us a lot.This is a long term game.We've got a lot of actions that won't bear fruit until two or three years out,Mr.Ammann indicated.
The record profit will be shared in the form of 7,000 dollar bonus checks for every GM autoworker.As part of its restructuring plan,GM closed 14 plants and three service parts operations.It had received 49.5 billion in government assistance.For the government to recover this,the GM share price will have to double.
As part of its 2009 bankruptcy,GM had closed more than 1,300 dealerships in the U.S. and Canada,evoking widespread bitter criticism.Thanks to Congressional action,a little more than half of the closed U.S. dealers,or 661,were eventually invited to apply for reinstatement based on their business metrics.
General Motors(GM),Toyota Motors(TM)
Friday, February 3, 2012
Focus on Pharma:Drugmaker Looks To Pipeline,Divestitures
In its recent earnings report,Pfizer,the world's largest pharmaceutical company,posted 6% profit growth on cost-cutting and share buybacks.Sales declined 5% on patent expirations of cholesterol drug Lipitor and others taking effect.
Despite the loss of patent protection,Pfizer isn't giving up promoting its cardiovascular blockbuster.Lipitor is still being marketed with a 4 dollar copay card and television advertising.Sales of the drug dropped 40% in Q4 when its patent expired.The company says it hasn't yet decided whether the ad campaign will continue long term.Liptior was advertised on television more than any other prescription drug last year.
Pfizer has promising new drugs in its pipeline,such as lung cancer treatment Xalkori,rheumatoid arthritis drug tofacitinib,and atrial fibrillation medicine Eliquis.
Eliquis was granted priority review by the Food and Drug Administration.Morninstar Associates projects an 80% chance of approval for the medicine,with a potential for 3 billion dollars in sales.Profits from it would be shared with Bristol-Myers Squibb.
Pfizer continues its aggressive cost-cutting,and is well on the way to its goal of 4 billion dollars annually.The company is expected to finalize the divestiture of its animal health and nutritional segments later in 2012.Morningstar values these businesses at 11 and 7 billion dollars,respectively,says Damien Conover,CFA,Associate Director at Morningstar.
Pfizer(PFE),Bristol-Myers Squibb(BMY)
Despite the loss of patent protection,Pfizer isn't giving up promoting its cardiovascular blockbuster.Lipitor is still being marketed with a 4 dollar copay card and television advertising.Sales of the drug dropped 40% in Q4 when its patent expired.The company says it hasn't yet decided whether the ad campaign will continue long term.Liptior was advertised on television more than any other prescription drug last year.
Pfizer has promising new drugs in its pipeline,such as lung cancer treatment Xalkori,rheumatoid arthritis drug tofacitinib,and atrial fibrillation medicine Eliquis.
Eliquis was granted priority review by the Food and Drug Administration.Morninstar Associates projects an 80% chance of approval for the medicine,with a potential for 3 billion dollars in sales.Profits from it would be shared with Bristol-Myers Squibb.
Pfizer continues its aggressive cost-cutting,and is well on the way to its goal of 4 billion dollars annually.The company is expected to finalize the divestiture of its animal health and nutritional segments later in 2012.Morningstar values these businesses at 11 and 7 billion dollars,respectively,says Damien Conover,CFA,Associate Director at Morningstar.
Pfizer(PFE),Bristol-Myers Squibb(BMY)
Monday, January 23, 2012
Conditions At Goldman Sachs-plus its current strategy
Considered by many to be the profit and influence king among investment banks in modern times,Goldman Sachs was nonetheless subject to the same economic forces as everyone else in Q4 2011.The firm beat earnings estimates,but missed on revenue,or sales.Goldman's clientele is being cautious about investing and mergers and acquisitions in this difficult climate.
Trading and investment banking is down.It's not a good time to be an investment banker or trader,according to William D. Cohan,author of the well-regarded book "Money and Power:How Goldman Sachs Came to Rule the World."With the new rules,it's gonna be very tough to do business on Wall Street.
You're gonna get 5-8 years in the limelight at Goldman Sachs;then you're gonna be moved out for younger people.That's a good thing.
I think Goldman Sachs wants to be below the radar screen,not the whackamole.They want to get beyond being the poster child for bad behavior on Wall Street,Mr.Cohan observed.
With regard to the company's current perspective on equities,Dave Costin,Chief Equity Strategist at Goldman,says U.S. companies with the most exposure to the U.S. ought to outperform.It's one of our fundamental strategies for 2012.Consumer staples are what we prefer.Labor slack means little wage growth,hence poor discretionary spending.
Long term,two-thirds of corporate cash is reinvested in growth.In this environment,we're looking at 11% growth of dividends,Mr.Costin noted.
In other words,companies are plowing a lot of cash into dividends today to attract the skittish investors of these volatile times.It's why so many investment advisors are recommending the good dividend payers such as Procter&Gamble and PepsiCo to their clients.
Goldman Sachs(GS),Procter&Gamble(PG),PepsiCo(PEP)
Trading and investment banking is down.It's not a good time to be an investment banker or trader,according to William D. Cohan,author of the well-regarded book "Money and Power:How Goldman Sachs Came to Rule the World."With the new rules,it's gonna be very tough to do business on Wall Street.
You're gonna get 5-8 years in the limelight at Goldman Sachs;then you're gonna be moved out for younger people.That's a good thing.
I think Goldman Sachs wants to be below the radar screen,not the whackamole.They want to get beyond being the poster child for bad behavior on Wall Street,Mr.Cohan observed.
With regard to the company's current perspective on equities,Dave Costin,Chief Equity Strategist at Goldman,says U.S. companies with the most exposure to the U.S. ought to outperform.It's one of our fundamental strategies for 2012.Consumer staples are what we prefer.Labor slack means little wage growth,hence poor discretionary spending.
Long term,two-thirds of corporate cash is reinvested in growth.In this environment,we're looking at 11% growth of dividends,Mr.Costin noted.
In other words,companies are plowing a lot of cash into dividends today to attract the skittish investors of these volatile times.It's why so many investment advisors are recommending the good dividend payers such as Procter&Gamble and PepsiCo to their clients.
Goldman Sachs(GS),Procter&Gamble(PG),PepsiCo(PEP)
Monday, November 28, 2011
What HP Needs From Meg Whitman
Despite beating estimates for both sales and profit,Hewlett-Packard posted an outlook for 2012 below what they were looking for.The pc business was down 2% in Q3,and printing was off about 10%.It looks like the company is resetting the bar,says analyst Aaron Rakers,CFA,Managing Director at Stifel Nicolaus.A lot of downward revisions have already been baked into the stock,and people are hopeful for upward revisions now.
Under new CEO Meg Whitman,the company is keeping the pc business and its economies of scale,leveraging the volume of what the pc business brings.Job One for Meg Whitman is resetting expectations.She must also bring cohesiveness to HP's management team.
Mr.Rakers is neutral on the stock.In order to upgrade it,he needs to feel comfort with the various competitive dynamics across HP's business segments.
Meg Whitman replaced Leo Apotheker in the top job at the firm.She had been CEO of eBay and a candidate in the 2010 California governor's race.
Hewlett-Packard(HPQ)
Under new CEO Meg Whitman,the company is keeping the pc business and its economies of scale,leveraging the volume of what the pc business brings.Job One for Meg Whitman is resetting expectations.She must also bring cohesiveness to HP's management team.
Mr.Rakers is neutral on the stock.In order to upgrade it,he needs to feel comfort with the various competitive dynamics across HP's business segments.
Meg Whitman replaced Leo Apotheker in the top job at the firm.She had been CEO of eBay and a candidate in the 2010 California governor's race.
Hewlett-Packard(HPQ)
Monday, October 31, 2011
Advantage View:High Risk and Havens
Not every analyst was swayed by the easy cheer so prevalent on the trading floors in recent days.The news out of Europe clearly is driving the market,said Jeremy Zirin,Chief Equity Strategist at UBS Financial Services.I think the market will continue to be driven by the news flow out of Europe.We're actually not that inexpensive.The rally that we've seen has really evaporated some of that cheapness.
I expect S&P 1100-1250 range-bound conditions.I think the risk-reward after the rally is to the downside.You want to have a more cautious disposition:staples,utilities,telcos,and tech with its high cash balances and emerging markets exposure.
The catalyst for a breakout would have to be a resolution in Europe and a resumption of strong U.S. growth.It seems unlikely given the uncertainty of our own fiscal policy-let alone Europe.The outlook is increasingly uncertain.Some multinationals are starting to see one of the problems is business uncertainty and market uncertainty.It's very difficult to make multi-year investments in capital goods or in labor when you can't be sure of the landscape.
On the surface,this earnings season looks similar to the past 6-8 quarters.What's really different is,forward-looking estimates are being cut at a dizzying rate.Below the surface,it's deteriorating,Mr.Zirin cogently observed.
I expect S&P 1100-1250 range-bound conditions.I think the risk-reward after the rally is to the downside.You want to have a more cautious disposition:staples,utilities,telcos,and tech with its high cash balances and emerging markets exposure.
The catalyst for a breakout would have to be a resolution in Europe and a resumption of strong U.S. growth.It seems unlikely given the uncertainty of our own fiscal policy-let alone Europe.The outlook is increasingly uncertain.Some multinationals are starting to see one of the problems is business uncertainty and market uncertainty.It's very difficult to make multi-year investments in capital goods or in labor when you can't be sure of the landscape.
On the surface,this earnings season looks similar to the past 6-8 quarters.What's really different is,forward-looking estimates are being cut at a dizzying rate.Below the surface,it's deteriorating,Mr.Zirin cogently observed.
Monday, October 24, 2011
IBM's Chances of Reaching Its Goal
IBM beat on Q3 earnings,logging earnings per share of 3.28 versus an estimate of 3.22;on revenue,Big Blue was at 26.2 billion dollars,versus an estimate of 26.3.The company raised its full year guidance from 13.25 to 13.35 per share.It's pretty much in line with what we were expecting,said analyst Joe Foresi of Janney Montgomery Scott.
On services,IBM had some pretty positive revenue.About 50% of their revenue comes from the services business.It consists of long term,annuity type contracts.
They do a lot of work in the emerging markets,which should help balance any loss in Europe.Given the size of IBM,it's more of a tanker than a speed boat.There's cautious optimism in their guidance.
We have a price target for them of 199.00.If you look over the short term,there will be swings up and down;but over the long term,the fundamentals are certainly there for their 20.00 earnings per share goal within five years,in Joe Foresi's opinion.
IBM's shares fell sharply following its report release,on traders' fears that a global recession could hamper its profitability.
International Business Machines(IBM)
On services,IBM had some pretty positive revenue.About 50% of their revenue comes from the services business.It consists of long term,annuity type contracts.
They do a lot of work in the emerging markets,which should help balance any loss in Europe.Given the size of IBM,it's more of a tanker than a speed boat.There's cautious optimism in their guidance.
We have a price target for them of 199.00.If you look over the short term,there will be swings up and down;but over the long term,the fundamentals are certainly there for their 20.00 earnings per share goal within five years,in Joe Foresi's opinion.
IBM's shares fell sharply following its report release,on traders' fears that a global recession could hamper its profitability.
International Business Machines(IBM)
Monday, April 25, 2011
Intel Logs Strong Quarter
Intel beat Wall Street estimates for both earnings and revenue in Q1.Indeed,the Q1 revenue of 12.80 billion dollars was an all-time record for Intel.The chip maker admitted,however,that its projection for Q2 might be adversely affected by disruptions caused by the Japan earthquake.
Guy Richard,an analyst at Piper Jaffray,felt that Intel's enterprise business was quite good.It was a blowout quarter,much stronger than he expected.
On the other hand,to date,Intel has had little traction in the tablet market.They are behind in getting people to write to their processor and getting people to integrate their product,Mr.Richard observed.
Piper Jaffray,founded in 1895,is a leading middle market investment bank and asset management firm.Based in Minneapolis,it has offices across the U.S.,as well as in London and Hong Kong.
Intel(INTC),Piper Jaffray(PJC)
Guy Richard,an analyst at Piper Jaffray,felt that Intel's enterprise business was quite good.It was a blowout quarter,much stronger than he expected.
On the other hand,to date,Intel has had little traction in the tablet market.They are behind in getting people to write to their processor and getting people to integrate their product,Mr.Richard observed.
Piper Jaffray,founded in 1895,is a leading middle market investment bank and asset management firm.Based in Minneapolis,it has offices across the U.S.,as well as in London and Hong Kong.
Intel(INTC),Piper Jaffray(PJC)
JP Morgan's U.S. Outlook
We've already hit the 2011 low,according to JP Morgan's chief U.S. equity strategist Thomas H. Lee.By year's end,he expects to see the S&P at 1425.He likes the materials,industrial and energy sectors.Avoid stocks sensitive to oil prices.There will be moderate to severe disruption to supply chains in tech because of the Japan disaster.
Near term,Q1 earnings are really gonna be a support for markets.Markets may be troubled from June to September,rangebound because of the expiration of the Federal Reserve's QE 2 support program.The housing market will improve,however,driving the S&P higher by the end of 2011.
Equity market rallies are really driven by corporate profit recoveries.Investors are buying the dips because they're under-exposed.In the financial sector,we've seen improvement in credit trends,but not demand,Mr.Lee added.
In addition to his JP Morgan post,Thomas H. Lee is Chairman and CEO of Thomas H. Lee Partners,L.P.A 1965 Harvard graduate,he is a trustee of Rockefeller and Brandeis Universities.Mr. Lee is also a director of the Lincoln Center for the Performing Arts.
JP Morgan Chase(JPM)
Near term,Q1 earnings are really gonna be a support for markets.Markets may be troubled from June to September,rangebound because of the expiration of the Federal Reserve's QE 2 support program.The housing market will improve,however,driving the S&P higher by the end of 2011.
Equity market rallies are really driven by corporate profit recoveries.Investors are buying the dips because they're under-exposed.In the financial sector,we've seen improvement in credit trends,but not demand,Mr.Lee added.
In addition to his JP Morgan post,Thomas H. Lee is Chairman and CEO of Thomas H. Lee Partners,L.P.A 1965 Harvard graduate,he is a trustee of Rockefeller and Brandeis Universities.Mr. Lee is also a director of the Lincoln Center for the Performing Arts.
JP Morgan Chase(JPM)
Monday, October 11, 2010
Bryn Mawr Trust:Momentum Takes Hold
Since September,equities have been steadily regaining strength.Bryn Mawr Trust thinks the market is the ultimate leading indicator.It's gonna be tough to break this momentum for a while.Earnings will surprise on the upside.Positive growth in economically sensitive companies,as well as profit,will occur.
The Dow Jones Industrial Average has crossed the 11,000 mark for the first time since May.If we continue to look at an up market 12-18 months from now,the financials are gonna participate in that.
For sure,there's gonna be a reversion to the mean.As inflation picks up,stocks will outperform bonds again.
Eric Thorne is Vice President and Senior Portfolio Manager at Bryn Mawr Trust.The full service bank with a specialty in affluent clients was founded in 1889,and has branches in the Philadelphia area.
Bryn Mawr Bank Corporation(BMTC)
The Dow Jones Industrial Average has crossed the 11,000 mark for the first time since May.If we continue to look at an up market 12-18 months from now,the financials are gonna participate in that.
For sure,there's gonna be a reversion to the mean.As inflation picks up,stocks will outperform bonds again.
Eric Thorne is Vice President and Senior Portfolio Manager at Bryn Mawr Trust.The full service bank with a specialty in affluent clients was founded in 1889,and has branches in the Philadelphia area.
Bryn Mawr Bank Corporation(BMTC)
Sunday, August 8, 2010
Procter&Gamble Explains Misses
Procter and Gamble's earnings report missed estimates on both the top and bottom lines.Earnings per share were 0.71 cents,versus an estimate of 0.73,while revenue was at 18.93 billion dollars,versus an estimate 0f 19.102 billion.Chief Financial Officer Joe Moeller said this was because the company chooses to invest more behind significant innovation and strategic initiatives.Procter&Gamble is building market share in every one of its regions.In the developed world,things are relatively slow.There is good growth in the developing world,but it is 25% below standard.
Procter&Gamble is seeing the re-acceleration of branded sales.The Pro-Glide razor is doing well.Pampers Dry-Max is doing extremely well.There's a very exciting year ahead of Procter&Gamble.There will be a Crest 3D White,a new laundry brand in India and a reformulation of Tide for the first time in 10 years.The company has a very sufficient pipeline for innovation,Mr.Moeller believes.
Procter&Gamble is headquartered in Cincinatti,Ohio.
Procter&Gamble(PG)
Procter&Gamble is seeing the re-acceleration of branded sales.The Pro-Glide razor is doing well.Pampers Dry-Max is doing extremely well.There's a very exciting year ahead of Procter&Gamble.There will be a Crest 3D White,a new laundry brand in India and a reformulation of Tide for the first time in 10 years.The company has a very sufficient pipeline for innovation,Mr.Moeller believes.
Procter&Gamble is headquartered in Cincinatti,Ohio.
Procter&Gamble(PG)
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