The Fly Wins Again

Betting against “The Fly” is pure madness.

Two of my top 5 positions with monster better than expected earnings results, indeud.

Corinthian Colleges, Inc. [[COCO]]

COCO Corinthian Colleges beats by $0.04, beats on revs; guides Q3 revs and EPS above consensus; raises FY10 EPS and revs guidance (14.34 ) Reports Q2 (Dec) earnings of $0.44 per share, $0.04 better than the First Call consensus of $0.40; revenues rose 30.2% year/year to $414.3 mln vs the $404.5 mln consensus. Total student starts were 29,156 versus 26,334, an increase of 10.7%. Co issues upside guidance for Q3, sees EPS of $0.45-0.47 vs. $0.44 consensus; sees Q3 revs of $470-480 mln vs. $431.03 mln consensus. “We expect new student growth in Q3 10 of 6% – 8% compared with the third quarter of the prior year. This expected growth rate includes Heald on a pro forma basis. Excluding Heald from the Q3 09 base, but adding Heald students for Q3 10, the projected growth rate would be 18% – 20%.” Co raises guidance for FY10, sees EPS of $1.63-1.68 vs. $1.59 consensus, up from $1.55-1.60 previously; sees FY10 revs of $1.74-1.76 bln vs. $1.66 bln consensus, up from $1.62-1.64 bln previously. “We continue to expect new student growth in fiscal 2010 of 11% – 13% in fiscal 2010 compared with fiscal 2009. This expected growth rate includes Heald on a pro forma basis. Excluding Heald from the fiscal 2009 base, but adding Heald students for fiscal 2010, the projected growth rate would be 17% – 19%.

Cummins Inc. [[CMI]]

CMI Cummins beats by $0.60, beats on revs; guides FY10 revs above consensus (46.94 )
Reports Q4 (Dec) earnings of $1.36 per share, $0.60 better than the First Call consensus of $0.76; revenues rose 3.4% year/year to $3.4 bln vs the $2.83 bln consensus. Co issues upside guidance for FY10, sees FY10 revs of $11 bln vs. $10.23 bln consensus. The co’s fourth quarter results were driven by continued strength in China, India and Brazil, along with a significant increase for on-highway truck engines and components in North America in advance of new emissions standards that took effect at the beginning of 2010… The increase in truck engine and components sales in the United States during the fourth quarter was largely the result of OEM customers buying 2009 engines in advance of the EPA emissions regulations, which took effect on Jan. 1, 2010. Based on current orders and forecasts for the first part of this year, North American truck and bus engine shipments could fall by as much as 80 percent in the first half of 2010, compared to the second half of 2009. This translates into a 50 percent drop in externally reported revenue for heavy-duty truck and medium-duty truck and bus in the first half of 2010 compared to the second half of 2009. That weakness also will affect the Company’s components businesses, although higher Cummins component content on the 2010 engines and improved truck sales in emerging markets will partially offset this drop in demand. In addition, the Company is expecting its Power Generation business to perform at levels consistent with 2009. This late-cycle segment bottomed out in the third quarter of 2009 but has yet to resume strong growth. The weakness in these segments will be offset by continued strong growth in the Company’s distribution business and further improvement in China, India and Brazil. Cummins also expects to see growth across all its business segments in the second half of the year, compared to the first six months.

Source: Briefing.com