Results Up Marginally at Emerson Electric
May 9, 2013
Dividend Growth Newsletter holding Emerson Electric (click ticker for report: ) posted lackluster second quarter results reflecting mixed industrial demand. Underlying revenue increased 2% year-over-year to $6 billion, modestly lower than consensus estimates. Earnings were a penny below consensus expectations, growing 4% year-over-year to $0.77 per share. However, thanks to higher net income and more favorable changes in working capital, free cash flow was 51% higher year-to-date at $916 million. Emerson has various segments, but second quarter results were driven largely by a strong performance from Process Management. Segment sales jumped 8% year-over-year from robust international demand. US revenues in the segment were actually down 1%, but oil and gas industry demand from Asia (up 14%), Latin America (up 13%),
DirecTV Posts Solid Growth Across Geographies
May 8, 2013
Best Ideas Newsletter holding DirecTV (click ticker for report: ) posted solid first quarter results this week as higher ARPU in the US and strong subscriber additions in Latin America drove solid revenue growth. Revenues increased 8% year-over-year to $7.6 billion, which modestly exceeded consensus estimates. Adjusted earnings surged 34% year-over-year to $1.43 per share, smashing consensus expectations as the company continued to lower its share count. Over the past year, DirecTV has shrunk its float by 15%. Free cash flow dipped to $710 million from $952 million during the same period ago, but management noted that was mostly attributable to unfavorable working capital timing in the US. On a geographic basis, we were incredibly pleased with the performance of
Where’s the Beef? Tyson’s Profitability Suffers
May 7, 2013
Weak beef demand and high feed costs weighed on Tyson’s second quarter.
First Solar’s Volatile Performance Continues
May 7, 2013
Solar manufacturer First Solar (click ticker for report: ) saw its shares tumble after the firm posted terrible gross margins during its first quarter. Revenue jumped 52% year-over-year, but fell 30% sequentially to $755 million, which was slightly ahead of consensus estimates. Earnings were several cents short of consensus expectations at $0.66, but the measure was still much better than the same period a year ago in which First Solar took a restructuring charge. Cash flow generation was relatively weak as the company posted $19.7 million in free cash flow, down from $253.3 million in the prior quarter. The big issue for First Solar came from the cost side of the equation. CFO Mark Widmar spoke to the issue of
Astronics Surges on Record Results
May 7, 2013
Best Ideas Newsletter holding Astronics (click ticker for report: ) reported a first quarter that displayed the company’s fantastic earnings potential. Revenue jumped 14% year-over-year to $76 million, which exceeded consensus estimates by a few million dollars. Earnings growth was robust as earnings per share rose 40% year-over-year to $0.56, which was significantly above consensus estimates. The firm’s backlog increased $4.5 million sequentially to a record high of $119 million. To top it off, the firm generated $12.5 million in free cash flow. Aerospace continued to be the standout segment. Total aerospace revenue rose 16% year-over-year to $71.7 million. While commercial revenue also grew 16%, business jet revenue jumped 30% year-over-year and FAA/Airport revenue increased 48% year-over-year. Although the FAA
Taking a Close Look at Berkshire
May 7, 2013
After the annual meeting in Omaha, let’s take a look at Berkshire.
Strong Earnings Powers CBS; Tony Stark Boosts Disney
May 6, 2013
Media stocks have been on a fantastic run as of late, and the trend looks to continue after CBS (click ticker for report: ) posted great results and Disney’s (click ticker for report: ) Iron Man 3 put up a blockbuster debut at the box office internationally and domestically. Let’s take a look at recent events. CBS CBS posted strong first quarter results, driven by a 6% year-over-year increase in revenue to $4 billion, which resulted in a 24% jump in operating earnings per share to $0.73. Both figures easily exceeded consensus expectations. Strong headline results consummated in $553 million in free cash flow. Results were solid for CBS across all of its segments, though entertainment led the charge with
Facebook and LinkedIn Early In Monetization; Neither a Bargain
May 6, 2013
During the past week, publicly traded social media giants Facebook (click ticker for report: ) and LinkedIn (click ticker for report: ) both reported strong first quarter results. Facebook’s revenue grew 38% year-over-year to $1.46 billion, exceeding consensus estimates, while earnings per share were flat at $0.12. LinkedIn’s revenue surged 72% year-over-year to $325 million driving earnings per share of $0.45—both figures handily better than consensus expectations. Cash flow at both companies revealed significantly different stories. LinkedIn generated roughly $59 million in free cash flow as the company’s research and development spending was kept in check. Facebook posted negative free cash flow of $12 million as the firm invested heavily in mobile, servers, and data centers. Both firms’ valuations are
Best Ideas Newsletter Holding Google Hitting All-Time Highs
May 3, 2013
Best Ideas Newsletter holding Google (click ticker for report: ) is flirting with all-time highs today. We anticipate further upside from current levels.
China and North America Help Drive GM
May 3, 2013
Global auto giant General Motors (click ticker for report: ) reported much better than expected first quarter results earlier this week. Revenue, though down 2% year-over-year at $36.9 billion, easily exceeded consensus expectations. Earnings per share, adjusted for one-time items, fell 28% year-over-year to $0.67, which was also far stronger than anticipated. Automotive free cash flow wasn’t incredibly strong, turning to a negative $1.3 billion. Not surprisingly, North America was among the standout performers at GM driven by market share gains. Both Cadillac and Buick were fantastic in the United States, with sales growing 38% and 28%, respectively. We think the brands have done spectacular job fighting back against the strong performance of the likes of Audi and BMW with
