United Technologies is focused on integrating Otis with Climate, Control, and Security Systems and successfully ramping up production for its new PurePower GTF narrowbody engines. There is no change to our 2014 sales of $64 billion, but the higher end of 2014 EPS guidance of $6.55-$6.85 seems likely. Due to several unusual factors, first-quarter sales guidance of approximately $14.5 billion and EPS of about $1.25 were below our $14.7 billion and $1.40 EPS estimates, respectively, and consensus expectations of $14.9 billion and EPS of $1.38. While weather was not cited, lower revenues made this seem likely. Hurdles to achieving UTC’s…
Author: Lisa Bowe
Proto Labs’ new CEO Victoria Holt and CFO John Judd attended a conference in New York City this week. This was the first investor event for Ms. Holt since joining Proto Labs and only the second time she spoke to investors in a public forum. We believe it is important to highlight for investors that Ms. Holt is focused on addressing the issues that we believe are most important for acceleration in the company’s growth rate. The company should be able to build more big-account business—and get some of the bigger customers to use Proto Labs as the preferred supplier.…
Ulta Beauty will report fourth-quarter results on Thursday after the markets close. Reflecting government data showing further moderation in the rate of growth in consumer spending (PCE) in the beauty category in January (likely at least in part because of widespread severe winter weather), we have elected to trim our fourth-quarter (January) EPS estimate by $0.01, to $1.07 (at the lower end of the $1.07-$1.10 guidance issued on December 5, 2013). Since we first trimmed our estimates for Ulta (along with several other retailers) back on January 14 (at which time the fourth-quarter consensus stood at $1.09), the majority of…
On Tuesday HealthStream reported solid fourth quarter 2013 results. More specific, total sales rose 33% year-over-year, to $37.1 million, easily topping the consensus target of $35.7 million; adjusted EBITDA—the key profit metric we monitor—were $5.9 million, spot on the $5.9 million consensus estimate, and GAAP EPS were $0.06—a penny below the $0.07 consensus forecast, but solely because of a much higher-than-anticipated GAAP tax rate of 51%. The company also provided initial 2014 guidance that easily exceeded consensus estimates for sales (revenue growth between 22% and 26%, compared with the consensus expectation for 21% growth) but was behind expectations for operating…
ExlService posted better-than-expected fourth-quarter results, delivering revenue of $124 million (above the consensus at $120 million) and non-GAAP earnings per share of $0.55 (also above consensus at $0.49). Strength in the quarter was driven by the transformation business, which delivered 10% growth year-over-year and 5% sequentially. Transformation growth continues to be led by decision analytics, which is benefiting from the addition of new annuity-based engagements (now 70% of analytics revenue, up from 55% in 2012). Growth across verticals was relatively broad-based, but was especially strong in healthcare and transportation/logistics, which grew 53% and 23% over the previous-year period, respectively. While…
Auckland Airport’s fiscal 2013 result was in line with analyst’s forecasts. Underlying net profit after tax, or NPAT, grew 10.6% to NZD 153.8 million with spectacular 14% growth in the second half. The results were buoyed by respectable growth in passenger numbers in the second half, lower depreciation and interest costs and an outstanding performance from associate companies. The company expects the aviation market to be reasonably buoyant in fiscal 2014 and projects underlying NPAT between NZD 160 and NZD 170 million. Analysts believe the firm is well placed to capitalise on expected strong growth in tourist arrivals from Asia…
Shares of Cisco (CSC) declined for a second day following reports that the company is investigating whether some of its activities in Russia and nearby Commonwealth of Independent States (CIS) nations violated a U.S. law against bribery of foreign officials. In an SEC filing, Cisco said it was looking into the matter at the request of the SEC and Department of Justice. The questions raised concern whether Cisco or its resellers in those nations violated the U.S. Foreign Corrupt Practices Act of 1977, Cisco said. Cisco said the investigation is not expected to have material adverse impact on its operations,…
GT Advanced Technologies (GTAT) is building a factory in Arizona that will supply sapphire for Apple (AAPL) screen covers, according to Digitimes Research. Digitimes said the facility would supply between 9% and 16.6% of demand for sapphire material for a new iPhone, based on GTAT’s sales forecasts and the average $30 production cost for a 4-inch sapphire wafer. Digitimes estimates Apple will ship 70 million units of a new-generation iPhone in 2014 that would use sapphire screen covers. GTAT, an electronics software & equipment provider, was up 4.56% in early afternoon trade. Suggested Reading: One Hit Wonders of All Time
Checkpoint Systems (CKP) is up 17%, ending a 7-day losing streak after the company said after the close on Thursday that it would delay its annual report to complete the review of its financial results for Q4 and full year 2013. This is the second time the company has delayed the release of its annual report. On March 6, CKP said it would delay the release scheduled for the following day. Checkpoint Systems provides loss-prevention and inventory management services to the retail industry. Shares of CKP last traded at $14.12 with a 52-week range of $10.50 to $18.25.
CNH Global’s fourth-quarter and full-year results, filed Thursday, reflected a continued decent agricultural equipment selling environment coupled with further construction machinery challenges. Management expects relatively benign growth from these markets in 2013–a bit slower for ag, but more positive for construction–with roughly 5% revenue growth for the firm (including price increases). With the higher sales level, CNH’s operating margin improved to 5.7% from 5.0% in last year’s fourth quarter. For the full year, the company hit its previously outlined target of 8.6%, led by double-digit margins in agriculture and break-even performance in construction. The lack of construction profitability was a…
Allianz announced its results about a week before the official release date. The company achieved an operating profit of EUR 2.5 billion in the third quarter, compared with EUR 1.9 billion for the same comparison period last year. The operating results for all three business segments–life, property-casualty, and asset management–were very strong. P&C benefited from a benign quarter of natural catastrophes and auto rate increases in Germany, while asset management continued a positive trend, with 5% increase in assets under management. Above all, Allianz remained very well capitalized. Its solvency ratio increased 4 percentage points from last quarter to 190%.…
Time Warner’s key business risks are cyclicality and its competitive position. Advertising accounts for about 25% of overall sales, which is lower than media conglomerate peers but still an important part of the company’s business model. Time Warner’s best business, its cable networks (about 60% of cash flow), generate about 30% of its sales from national advertising (the other 70% are affiliate fees). Many forecast long-term cash flow declines in the firm’s AOL, filmed entertainment, and publishing businesses. The company continues to return capital to shareholders through share repurchases and dividends. Since the start of 2009, Time Warner has repurchased…