Drought Across the US Crushes ADM’s Margins
August 1, 2012
Drought and weak gasoline demand crushed Archer Daniels Midland’s margins in its fiscal fourth quarter. We think shares are fairly valued.
Coach’s Fourth Quarter Results Hurt by North America
July 31, 2012
Retailer Coach reported results that were in-line with expectations. However, the road ahead looks choppy.
Pfizer Reports Decent Second Quarter Results; Plans to Spin Off Animal Health Business
July 31, 2012
Pfizer posted decent second-quarter results that showed strong cost containment in the face of declining sales of its blockbuster drug Lipitor. The company also announced plans to spin off its animal health business to focus on its core pharma business. We maintain our view that Pfizer is significantly underpriced.
The US Housing Market Is Back
July 30, 2012
The housing market in the United States has regained its footing and looks poised to rebound even further. First, on Thursday, PulteGroup (click ticker for report: PHM) reported better-than-expected second-quarter earnings, generated 15% revenue growth, and showed that its backlog grew 31% year-over-year on a unit basis. Then, on Friday, D.R. Horton’s (click ticker for report: DHI) fiscal third-quarter results revealed its backlog advanced 25% year-over-year. Plus, the firm reversed a tax-asset write-down, indicating the company expects increased profitability down the road. The strong performance from these two builders was preceded by solid results from other builders including KB Home (click ticker for report: KBH) and Lennar (click ticker for report: LEN). Though conventional wisdom may suggest a weak economic
Strong Growth Continues at Whole Foods Market
July 30, 2012
Whole Foods Market (click ticker for report: WFM) continues to stand out among grocers, reporting yet another stellar quarter. During its fiscal year 2012 third quarter, the grocery store chain, known for its healthier product offerings, saw same-store sales increase 8.2% in spite of the Easter and 4th of July shift. Total sales surged nearly 14% compared to the same period a year ago to $2.7 billion, which was in-line with expectations. Earnings per share grew 26% year-over-year to $0.63, which was slightly more than the Street expected. As a result of strong earnings growth, the firm generated $401.3 million in free cash flow during its third quarter. This is quite different from its older competitors—namely SuperValu (click ticker for
Decker’s Second Quarter Results Were Strong Despite the Headline Loss
July 30, 2012
Footwear firm Deckers reported a strong second quarter. We think shares are undervalued and that the firm’s weakness was a result of seasonal factors.
Chevron Boasts Strong Downstream Performance in Second Quarter
July 27, 2012
Though Chevron’s second-quarter net income fell, we were very pleased with performance in its downstream business. The firm remains a core holding in the portfolio of our Dividend Growth Newsletter.
Merck Reports Solid Second Quarter; Its Drug Pipeline Looks Promising
July 27, 2012
Merck reported solid second quarter results and indicated that progress in its pipeline remains strong. Though the firm will face patent expiration of its blockbuster Singulair in coming weeks, we think shares remain fairly valued.
Dividend Growth Gem Republic Services Reports Strong Second Quarter; Raises Dividend
July 27, 2012
Dividend growth gem Republic Services hiked its dividend 7% as it works to get its operations back on track. The garbage hauler’s second quarter was decent, and its debt refinancings suggest continued strong dividend growth for years to come.
Amazon’s Profits Fall Short in Its Second Quarter
July 27, 2012
Amazon reported weak second-quarter results as profits plummeted and free cash flow dropped considerably. Though we have no qualms about the online retailer’s revenue expansion, we’d like to see more robust profit-generation before considering it in our Best Ideas portfolio.
