“NEW YORK (MarketWatch) — Tiffany & Co.TIF -4.06% said Thursday its holiday same-store sales for the two-month period ended Dec. 31 were flat, excluding currency effects. Worldwide net sales increased by 4% to $992 million. Tiffany expects earnings for the year ending Jan. 31 near the low end of its forecast of $3.20 to $3.40 a share. Wall Street analysts expect the company to earn $3.29 a share, according to a survey by FactSet….”
Comments »Rising Dollar Will Be a Headwind for Corporate Earnings
“Many large U.S. corporations derive 50%-65% of their revenues overseas. As the U.S. dollar rises, the foreign-exchange boost to overseas profits of the past decade will reverse.
One of the most glaring omissions in mainstream financial-media stock market commentary is the connection between the U.S. dollar’s relative value and corporate earnings. I have often commented on this bullish consequence of a weakening dollar.
50%-60%+ of global corporate earnings and profits are non-U.S., i.e. booked overseas in a currency other than the U.S. dollar (USD). As the dollar weakened, global corporate profits skyrocketed as earnings in euros, yen, etc. rose when stated in dollars.
In other words, overseas profits expand as if by magic when stated in dollars.
When the euro and the dollar were 1-to-1 back in the early 2000s, then 100 euros of profit converted to $100 when stated in dollars. When the euro rose to $1.60, then the same 100 euros of profit earned by the U.S. corporation in Europe converted to a stupendous $160 in profit when stated in dollars….”
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$AA Reports $0.06 vs Consensus of $0.06, Revenues Come in at $5.90b vs Consensus of $6.08b
“Company Ends 2012 in Strong Liquidity Position; Record Results in Mid and Downstream
Forecasting 7 Percent Growth in Global Aluminum Demand in 2013
4Q 2012 Highlights
- Income from continuing operations of $242 million, or $0.21 per share; excluding special items, income from continuing operations of $64 million, or $0.06 per share
- Revenue of $5.9 billion, up 1 percent sequentially, down 2 percent from 4Q 2011
- Cash from operations of $933 million, up $670 million from 3Q 2012
- Free cash flow of $535 million
- Strong liquidity with cash on hand of $1.9 billion
- Record low 24 days working capital
- Record results in Global Rolled Products, Engineered Products & Solutions
- Forecasting 7 percent growth in global aluminum demand in 2013
Full-Year 2012 Highlights
- Income from continuing operations of $191 million, or $0.18 per share; excluding special items, income from continuing operations of $262 million, or $0.24 per share
- Revenue of $23.7 billion, down 5 percent from 2011, on lower LME pricing…”
$CY Signals Weak Sales For the Entire Semiconductor Industry
“Cypress Semiconductor Corp. (NASDAQ: CY) may be getting the chip sector off to yet another bad start for earnings season. The company said that business eroded in the final two weeks of December in its distribution channels. It also said that this was weakness from customers across all geographies and end markets, with purchases coming in slower than previously expected.
There does not appear to be any one smoking gun. That is why this is troubling for the chip sector as a whole. The company is trying to signal that orders have stabilized and that it believes the first quarter will be the bottom. Here is the quote…”
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Companies To Consider That May Upset Earnings Expectations
Analysts Expect Earnings to Hit All Time Highs
“I track the industry analysts’ annual consensus earnings estimates of the S&P 500 for the current year and the coming year on a weekly basis. I call them “Earnings Squiggles” because that’s what they look like. As of last week, industry analysts estimated that the S&P 500 will earn $112.98 this year and $125.91 in 2014.
The estimates for 2012 and 2013 mostly fell all last year, yet the S&P 500 rose 13.4%. I have the Squiggles data back to 1979 on a monthly basis. More often than not, they tend to trend down; yet more often than not, the market has trended higher. That’s because the market discounts 12-month forward consensus expected earnings. A good proxy for this concept is forward earnings, i.e., the time-weighted average of consensus estimates for the current and coming years. It tends to be a good 12-month leading indicator for actual profits, with one important exception: Analysts don’t see recessions coming until we all do too.
The bottom line is that the bottom line for S&P 500 companies on a 12-month (and on a 52-week) forward basis rose to a record high at the beginning of this year even though analysts have been lowering their estimates for 2012 and 2013….”
Comments »$MON Pops 5% as Profits Soar
“WASHINGTON (AP) — Monsanto says its net income nearly tripled in the agricultural products company’s first quarter as sales of its biotech corn seeds expanded in Latin American countries.
The company, which is based in St. Louis, is also raising its profit guidance for the year, and shares are up 4 percent in premarket trading.
Monsanto said Tuesday that it earned $339 million, or 63 cents per share, in the three months ended November 30, from $126 million, or 23 cents per share, in last year’s quarter. Revenue climbed 21 percent to $2.9 billion.
Analysts polled by FactSet expected Monsanto to report earnings of 36 cents per share on revenue of $2.6 billion.
Monsanto has said it expects international sales to account for half of its growth in seeds for fiscal 2013.”
Comments »We May Have a Blowout Earnings Season as The Bar Has Been Set Low
“NEW YORK (MarketWatch) — Expect tepid earnings for the reporting season that kicks off Tuesday, say Wall Street analysts who have grown increasingly pessimistic over the past three months.
Fourth-quarter earnings for S&P 500 SPX -0.44% companies are expected to grow 2.8% compared to the same period in 2011, according to Thomson Reuters data. But keep in mind that this estimate has dropped from 9.9% at the beginning of the quarter to 2.8% today.
In keeping with tradition, aluminum producer Alcoa Inc. AA -1.19% will unofficially kick off earnings season with its results on Tuesday after the market closes. Alcoa’s results notwithstanding, a number of companies have actually already reported results in the so-called preseason.
And 62% of the 21 companies that have already reported fourth-quarter earnings to this point have topped analyst estimates, matching the long-term average beat rate, according to Thomson Reuters.
“If it should continue at the rate of 62%, the blended earnings growth estimate will likely improve slightly as more companies beat estimates than miss them,” Thomson Reuters analysts wrote in a report. “This would fit in with what analysts see as a slow emergence from the earnings trough in the third quarter, with single-digit earnings growth to finish out 2012 and during the first half of 2013…..”
Comments »$LLY Guides Full Year Profit higher
“Eli Lilly & Co. (LLY) provided an earnings forecast for 2013 that is more than analyst expectations.
Net income will be $4.03 to $4.18 a share this year, the Indianapolis-based drugmaker said today in a statement. Excluding one-time items, the company expects profit of $3.75 to $3.90 a share, more than the $3.71 average of 18 analyst estimates compiled by Bloomberg…”
Comments »$FDO Reports Dismal Profits, Sights Struggle Ahead
“(Reuters) – Family Dollar Stores Inc posted a lower-than-expected quarterly profit on Thursday as its emphasis on selling more everyday items like cigarettes and soft drinks put pressure on margins.
The company also said that December sales, which came in after the quarter ended, were hurt as people cut back on discretionary spending.
The discount chain added cigarettes and other tobacco products, Pepsi drinks, gift cards, magazines and some other goods to its assortment in recent months in an attempt to better compete against chains such as Dollar General Corp .
Its profit was $80.3 million, or 69 cents a share, in the fiscal first-quarter that ended November 24, compared with a profit of $80.4 percent, or 68 cents, a year earlier.
Analysts on average forecast 75 cents a share, according to Thomson Reuters I/B/E/S.”
Comments »$DFS Falls After Posting Earnings Miss
“Discover Financial Services (NYSE: DFS) reported fourth-quarter fiscal 2012 results before markets opened this morning. The financial services company posted diluted earnings per share (EPS) of $1.07 on revenues of $2 billion, net of interest expense. In the same period a year ago, Discover reported EPS of $0.95 on revenue of $1.96 billion. Today’s results also compare to the Thomson Reuters consensus estimates for EPS of $1.13 and $1.97 billion in revenue….”
Comments »$GIS Gets a Lift From Brazil
“General Mills reported quarterly earnings Wednesday that beat analysts’ expectations.
The food maker’s shares rose in pre-market trading before the opening bell, following the news. (Click here to get real-time quotes for General Mills.)
Earnings excluding items rose to $541.6 million, or 82 cents per share, from $444.8 million, or 67 cents per share, in the year earlier period.
Revenue rose to $4.88 billion from $4.62 billion a year earlier, helped by its Yoki Alimentos business in Brazil.
Wall Street had expected General Mills to report earnings excluding items of 79 cents a share on $4.88 billion in revenue, according to Thomson Reuters consensus estimates. “
Comments »$FDX Pops in Premarket as Losses Come In Less Than Expected, Guidance Also Better Than Expected
“(Reuters) – FedEx Corp profit fell 11.9 percent in the second quarter, less than investors had feared, as the No. 2 U.S. package delivery company struggled to improve demand at its air freight business.
The company reported fiscal second-quarter earnings of $438 million, or $1.39 per share, on Wednesday, compared with $497 million, or $1.57 per share, a year earlier.
Disruptions relating to Superstorm Sandy – which walloped the East Coast late in October and killed more than 130 people – pulled earnings down by about 11 cents per share.
Factoring out those charges, profit was $1.50 per share, more than the $1.41 analysts had forecast, according to Thomson Reuters I/B/E/S.
In premarket trading, the company’s shares were up 2 percent.
Memphis, Tennessee-based FedEx has been trying to improve profit at its air express business, which has seen demand fall as shippers turn to less costly ways of shipping goods. Operating profit at that unit, which accounts for more than half FedEx’s sales, fell 33 percent in the quarter.”
Comments »$NUE Warns on Upcoming Earnings
“Another earnings warning is out this morning, this time from one of the largest U.S. steel makers. Nucor Corp. (NYSE: NUE) this morning lowered its fourth-quarter diluted earnings per share (EPS) estimate to a range of $0.25 to $0.30. In the third quarter, the steel maker reported EPS of $0.35 and in the fourth quarter of 2011 EPS totaled $0.43….”
Comments »$PIR Beats Both Top and Bottom Line Estimates
“Pier 1 Imports Inc. (NYSE: PIR) reported third-quarter fiscal 2013 results before the markets opened this morning. The home furnishing retailer reported adjusted diluted earnings per share (EPS) of $0.25 on revenues of $424.5 million. In the same period a year ago, Pier 1 reported EPS of $0.21 on revenue of $382.7 million. Third-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.24 and $418.49 million in revenue. ”
Comments »$CVS Beats Estimates and Guides Higher
“CVS Caremark Corp. (CVS), the largest provider of prescription drugs in the U.S., forecast 2013 profit that topped analysts’ estimates as it benefits from new pharmacy customers.
Adjusted profit next year will be $3.84 a share to $3.98 a share, Woonsocket, Rhode Island-based CVS said today in a statement. The average estimate of 21 analysts in a Bloomberg survey was $3.81.”
Comments »$MET Misses Estimates and Guides Lower
“MetLife Inc. (MET), the largest U.S. life insurer, projected 2013 earnings that were below analysts’ estimates as low interest rates weigh on investment returns.
Next year’s operating profit, which excludes some investment results, will be $4.95 to $5.35 a share, the New York-based company said today in a statement. That compares with the average estimate of $5.48 among 19 analysts surveyed by Bloomberg. Operating profit in the current quarter may also fall short, at $1.12 to $1.22 a share, MetLife said, compared with estimates for $1.22.”
Comments »Joy Global Sees No Immediate Recovery in Mining Equipment Demand
“Joy Global Inc. (JOY), the world’s fourth- largest mining equipment maker, said it doesn’t see an immediate recovery in orders after mining companies in the U.S. and China cut capital spending.
Earnings excluding restructuring costs in the year through October will be $5.90 to $6.50 a share, the Milwaukee-based company said today in a statement. The average of 21 analysts’ estimates compiled by Bloomberg was for $6.65. The company forecast sales of $4.9 billion to $5.2 billion, compared with the $5.17 billion average of 20 estimates.
“We are setting our plans for 2013 on the basis that current market conditions continue,” Chief Executive Officer Mike Sutherlin said in the statement. “Although there is upside potential in our markets, the timing is uncertain.”
Joy, which got 51 percent of its revenue from the U.S. in fiscal 2011, has suffered as domestic coal producers cut tens of millions of tons of output and shut mines this year after some power stations switched to cheaper natural gas. A slowdown in Chinese economic growth also curtailed coal production there.”
Comments »$COST Beats Estimates, Profits Up 30%
“Costco Wholesale posted a 30 percent rise in quarterly profit, beating expectations, as the largest U.S. warehouse club chain saw sales rise and got a lift from higher membership fees.
Costco earned $416 million, or 95 cents per share, in its fiscal first quarter that ended in November, compared with $320 million,or 73 cents per
share, last year. Quarterly net sales rose 9.5 percent to $23.2 billion. Analysts, on average, were expectingfirst-quarter earnings of 93 cents per
share, before special items, on revenue of $23.7 billion,according to Thomson Reuters I/B/E/S.
Comparable store sales rose 7 percent, including the impact of fuel prices. Excluding the impact of fuel and foreign currencies, Costco recorded comparable
store sales of 6 percent for the quarter. Membership fee revenue rose 14.3 percent to $511 million, Costco said. The Issaquah, Washington-based chain raised fees for most U.S.and Canadian members 10 percent on Nov. 1. Members pay up to $110 per year to shop at Costco’s cavernous stores and on its website where they can buy everything from carrots to kayaks. The fee revenue pads Costco’s bottom line and allows it to offer low prices and take in thin profit margins on items it sells.”
Comments »$DD Reports To Reach High End of Earnings Expectations, Company Announces $1B Buy Back
“NEW YORK (AP) — Chemicals giant DuPont Co. says it should reach the high end of its net income guidance in 2012 and its profit will grow in the low- to mid-single digits in 2013.
With its shares trading around annual lows, DuPont also says it plans to buy back up to $1 billion in company stock.
DuPont had forecast net income of $3.25 to $3.30 per share from continuing operations in 2012. The Wilmington, Del., company says its sales will grow in the low single digits in 2013.
Analysts expect DuPont to post adjusted net income of $3.37 per share in 2012 and $3.67 per share in 2013, according to FactSet. That implies growth of 9 percent. Analysts expect sales to rise about 2 percent.
DuPont shares gained 2 percent in afterhours trading.”
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