Thursday, June 15, 2017

General Electric Company Power Segment Analysis

On General Electric Company's (NYSE:GE) last earnings call, Citigroup analyst Andrew Kaplowitz raised a question attesting to fears that GE's power segment could be facing structural issues -- rather than "transient and cyclical" ones. It's actually a key consideration, because power is GE's historical strength, and gas turbines are still its single most important product. Let's take a look at the arguments for and against.

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AgroFresh Solutions Earnings Analysis

AgroFresh Solutions, Inc. , a company offering freshness solutions to growers of produce, pleased investors by reporting progress on its plans for 2017. Not only were its headline numbers better, but management also outlined improvements made from the implementation of its growth strategy. Let's take a closer look at the details from the quarter.

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Tuesday, June 6, 2017

BorgWarner Earnings Analysis

The auto industry is one of the most-discussed sectors of the industrial economy in 2017, and investors tend to watch the earnings results of automotive powertrain supplier BorgWarner Inc. (NYSE:BWA) for clues on where carmakers are heading. Let's take a look a closer look at the earnings

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Jones Lang LaSalle Earnings Analysis

Commercial property services company Jones Lang LaSalle Inc (NYSE:JLL) produced a solid set of first-quarter results on Friday and affirmed its full-year guidance. That said, investors will be wondering just how a 21% increase in fee revenue translated into a 12.9% drop in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), let alone a 45.1% decline in adjusted diluted EPS. Wait no further to find out.

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Sunday, June 4, 2017

Key Takeaways From United Technologies Earnings

One of the advantages of owning a stock trading at a discount to its peers comes from the notion that all the company has to do is report an OK-looking set of results and investors are likely to reward it. In this context, I would argue that although United Technologies Corporation's (NYSE:UTX) recent first-quarter results were good enough to satisfy investors, they contained a mix of positives and negatives. That said, here are the key takeaways from the earnings so you can make up your own mind.

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Illinois Tool Works Earnings Analysis

In general, it's been a good reporting season for industrial companies, and the results from diversified industrials such as Illinois Tool Works Inc. (NYSE:ITW) and 3M Co.(NYSE:MMM) stand out in particular. Both companies raised their full-year earnings and organic revenue forecasts and served notice of improving end markets. That said, both stocks now trade at valuations that are definitely not cheap on a historical basis.
Let's look at the key takeaways from Illinois Tool Works' recent earnings report and determine whether there's enough here to take the stock higher in 2017.

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Wednesday, May 31, 2017

Roper Technologies

The general theme from industrial companies in the current earnings season has been the return to growth of capital spending by energy and heavy industries, and the latest earnings report from Roper Technologies  confirmed the trend. However, the good news didn't stop there: Management unveiled some excellent operational performance in the quarter and its other end markets reported good conditions. Let's take a closer look at a strong quarter for the company.

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Tuesday, May 30, 2017

Why WESCO International Stock Price Fell in April

The stock price of industrial distribution company WESCO International (NYSE:WCC) fell around 12% in April driven by a disappointing set of first-quarter earnings. As you can see in the chart below it's not been a happy time for investors in industrial wholesale and distribution stocks. Fastenal Company (NASDAQ:FAST) and MSC Industrial Co Inc. (NYSE:MSM)have also reported disappointing results this earnings season

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Danaher Corporation Earnings Analysis

As you look across the industrials sector, Danaher Corporation (NYSE:DHR) jumps out, for two reasons. First, Danaher isn't your typical kind of cyclical industrial company. In fact, its collection of medical-focused and environmental businesses give it secular growth credentials, meaning its earnings can grow relatively uncorrelated to the ups and downs of the economy. Second, there's its valuation premium

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Monday, May 29, 2017

General Electric Company Cash Flow

After a difficult 2016 in which General Electric Company  failed to meet its original organic revenue growth target range, the company was under pressure to steady the ship in 2017. On the plus side, the recent first quarter was good from a headline perspective (revenue, earnings, margin etc); however industrial cash flow from operations (CFOA) came in $1 billion below expectations, with an outflow of $1.6 billion instead of the expected outflow of $600 million. Does that matter?

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Emerson Electric Earnings Analysis

It's been a pretty good earnings season for the industrials sector. Particularly so for companies with heavy exposure to oil & gas related capital spending. As such, expectations were for a good set of results from Emerson Electric Co.  and the company didn't disappoint with its earnings report on Tuesday. For the second time this year, CEO David Farr raised guidance and served notice that the dividend investors' favorite is on an improving uptrend. Let's take a look at what happened in Emerson Electric's second quarter.

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Check Point Software Earnings Analysis

Network security company Check Point Software Technologies Ltd. ( delivered another solid set of earnings recently, and served notice that its long-term strategic efforts in cloud, mobility, and threat prevention are starting to pay off. As a relatively mature market leader in its industry, Check Point isn't going to match the growth rates of rivals like Fortinet Inc. or Palo Alto Networks Inc. but management has taken steps to increase growth. Meanwhile, underlying growth and cash flow generation remains excellent.

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Saturday, May 27, 2017

Cognex Corporation Earnings Analysis

Machine vision company Cognex Corporation (NASDAQ:CGNX) continues to please investors by releasing guidance-busting results and winning large orders from customers in new markets.The first-quarter earnings report continued the company's run of strong earnings reports, and management signaled that it is on track to see a significant pickup in revenue in the second half. Let's take a look at Cognex's first quarter.

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Dassault Systemes Earnings Analysis

France-based engineering and design software company Dassault Systemes(NASDAQOTH:DASTY) produced a mixed set of results in its first quarter. The headline numbers were fine, and management sounded an upbeat tone with regard to its 3DExperience and Solidworks platforms, but new software license sales were lower than the forecast rate for the full year. Let's take a closer look at what happened.

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Wednesday, May 24, 2017

WESCO International

In an earnings season where other industrial-related companies such as Illinois Tool Works (NYSE:ITW)Dover Corp (NYSE:DOV) and CSX Corporation (NASDAQ:CSX) have reported strengthening conditions, WESCO International Inc.'s (NYSE:WCC) first-quarter earnings report and guidance were somewhat lackluster. Let's take a look at what happened in the quarter.

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Honeywell International Earnings Analysis

After a strong set of first-quarter earnings, investors in Honeywell International might have expected a bit more in terms of a guidance hike, but it's hard to be too churlish. The new CEO, Darius Adamczyk, can be forgiven for taking a conservative approach to guidance -- particularly after a difficult 2016 -- and the underlying fundamentals do seem like they are turning in the company's favor.
Let's take a look at the key takeaways from the earnings presentations.

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General Electric Earnings Analysis

In an act of almost poetic symmetry, General Electric Company's (NYSE:GE) latest results left investors confused. Whereas in previous quarters, the headline revenue guidance was down, but management gave assurances that the underlying performance was fine, this time around, it was the opposite. Simply put, the headline numbers were good, but the twist in the tale came from the magnitude of cash outflow in the quarter. There is a lot going on in the results, so let's take a look at the key takeaways from the earnings report.

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Tuesday, May 23, 2017

CSX Earnings Analysis

Railroads always give great color on the economy, and if the latest earnings report from CSX Corporation (NASDAQ:CSX) is anything to go by, then overall conditions are definitely improving in the U.S. industrial economy. That said, it's not an even recovery, and some parts of the economy are improving more than others. Let's take a look at the details in the latest numbers and what they mean for investors

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Illinois Tool Works Earnings Analysis

Diversified industrial specialist Illinois Tool Works (NYSE:ITW) did it again: The company's first-quarter results breezed past guidance, and management raised full-year expectations. It continues to outperform its end markets and expand operating margin. In addition, its segments most affected by the industrial weakness in the U.S. in 2016 are now starting to turn. There's a lot to look at, so let's dive into the details.

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Dover Corp Earnings

Dover Corp. (NYSE:DOV) is one of the most heavily oil and gas-focused industrial companies on the market. For example, at the start of 2013 the company's energy segment generated more than 40% of total segmental earnings. No prizes for guessing that that figure is a lot lower now -- less than 14% in recent first-quarter results -- but the segment looks to be in recovery mode, and management's commentary on the earnings call reads across well for other companies with oil exposure. Let's look, then, at Dover's earnings.

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