New Member Orientation — Navigating Our Website
October 11, 2012
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Safeway’s Earnings Beat But the Grocer Remains Weak
October 11, 2012
Grocery store chain Safeway (click ticker for report: ) reported soft third-quarter results Thursday morning. Revenue slipped 0.2% year-over-year to $10 billion, slightly worse than consensus expectations. Earnings from operations grew 18% year-over-year to $0.45 per share, a few cents better than consensus estimates. As we’ve noted several times, and specifically with respect to Supervalu (click ticker for report: ), the grocery segment remains under intense pressure from warehouses and discounters. Same-store sales in the quarter ticked-up 0.1%, compared to the 6% same-store sales growth we saw from Costco (click ticker for report: ) yesterday. However, the firm noted that same-store sales in the fourth quarter are currently running at 1%, driven by the popularity of the “just for U”
Costco Reports Fantastic Results
October 10, 2012
Warehouse retailer Costco (click ticker for report: ) reported a strong fourth quarter Wednesday morning. Revenue surged 14% year-over-year to $32.2 billion, just a touch short of consensus estimates. Earnings increased 29% thanks to a 10% increase in membership fees, as well as continued membership growth, resulting in a higher than anticipated $1.39 per share. Excluding the impact of foreign exchange rates and gasoline disinflation, same-store sales grew 6% in the US and 7% internationally. Consumers continue to flock toward the warehouse retailer as income growth remains stagnant, and Costco follows Wal-Mart (click ticker for report: ) in price leadership. As a result, gross margins were roughly flat year-over-year at 10.5%. Nevertheless, profitability gains were driven by membership fee revenue,
Alcoa Beats Estimates; Waiting for Global Growth
October 10, 2012
Integrated aluminum company Alcoa (click ticker for report: ) kicked off earnings season Tuesday afternoon, reporting a surprise profit for the third quarter. Revenues fell 9% year-over-year to $5.8 billion, which was stronger than consensus estimates. Earnings increased to $0.03—adjusted for one-time items—down from $0.15 per share during the same period last year, but a few cents better than the consensus expected. Perhaps the most unusual fact about the firm’s revenue growth was that volumes remained relatively strong despite fears of a global slowdown. Weakness came from pricing, as realized alumina prices fell 17% and realized metal prices dropped 20%. CEO Klaus Kleinfeld noted that the supply/demand situation for aluminum remained fairly balanced, with inventories declining. On its conference call,
Yum! Brands Avoids Getting Hammered in China
October 10, 2012
Though sentiment was incredibly negative heading into the quarter, Yum reported better than expected results. Yet, shares are fairly valued at this time.
Can’t Make Our Presentation This Weekend? Download the Materials
October 9, 2012
A number of members of the Valuentum Team will be presenting at the Chicago chapter of the American Association of Individual Investors this coming Saturday, October 13, 2012. If you’re interested in attending but can’t make it, you can still download our presentation materials in this article.
Did Square Stick a Fork in VeriFone?
October 9, 2012
We think concerns about Square are overblown, though profits at VeriFone may be lower in the long run. Shares remain cheap.
Finish Line Might Catch Up to Footlocker
October 9, 2012
Shares of Finish Line have lagged competitors, but we think that may change. We examine why.
Food Products Firms May Not Be As Safe As You Think
October 8, 2012
We walk through the competitive positions of three large food products firms: Archer-Daniels-Midland, Tyson, and ConAgra.
Constellation Brands Posts Better Than Expected Results But Shares Are Fairly Valued
October 8, 2012
Diversified alcohol firm Constellation Brands reported better than expected earnings in light of sluggish revenue growth. We aren’t interested in its shares.
