Monday, August 29, 2016

United Parcel Service Inc. Earnings Review

United Parcel Service Inc. released a solid set of second-quarter results and reaffirmed its full-year guidance. In common with its rival FedEx Corporation , UPS appears to be on an even keel for 2016, but there are a lot of moving parts in its results. It's time to take a closer look at the earnings report.

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Cognex Corpration Earnings Preview

Results from machine vision company Cognex Corporation (NASDAQ:CGNX) are rarely short of surprises, so it's worth taking a step back and preparing yourself for what's about to come. As ever with small companies in their high-growth phase, revenue and orders can be highly volatile, so let's take a closer look at three things to look out for when Cognex reports second-quarter earnings on Aug. 1.

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Wednesday, August 17, 2016

BorgWarner Inc. Earnings Analysis


Following a disappointing 2015 and a difficult start to 2016 -- management lowered long-term growth forecasts in January -- powertrain engineer BorgWarner Inc. (NYSE:BWA) was under pressure to deliver. The first-quarter results saw the company get back on track, and the recent second-quarter earnings saw the company trump its own expectations while slightly raising full-year guidance. Let's take a closer look at the earnings.


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Wesco International Earnings Analysis

If there's been one recurring theme in the current earnings season it's that the usual suspects -- heavy machinery, oil and gas, metals and mining -- have been weaker than expected, but other areas of the general industrial activity have stabilized. Such was the case with WESCO International Inc (NYSE:WCC). The company has significant exposure to some of the worst-affected end markets, so under the circumstances its second-quarter results were relatively good, and management had some good news with regard to free cash flow (FCF) guidance. Let's take a closer look.


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Robert Half International Earnings Analysis

Staffing company Robert Half International Inc.'s second-quarter results deserve closer inspection, having provoked a double-digit decline in the share price after they were reported Tuesday. And employment company earnings are always interesting for the color they give on the state of the economy, so let's take a detailed look at what Robert Half International reported.

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Monday, August 8, 2016

Check Point Software Technologies Ltd Earnings Analysis

Check Point Software Technologies Ltd delivered good second-quarter results on Tuesday, but lowered revenue and earnings estimates for the coming quarters. Let's take a look at the results and the nuances behind management's commentary.

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Roper Technologies Earnings Analysis

A combination of weaker-than-expected energy-related revenue and delays in some toll and traffic projects caused Roper Technologies  to deliver earnings at the bottom end of expectations. As a result, management reduced full-year guidance, but it also served notice that outside of the problem issues, Roper's underlying performance was much better. Let's look at the details of the quarter

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Sunday, July 31, 2016

Dassault Systemes Earnings Analysis

Dassault Systemes (NASDAQOTH: DASTY  ) produced a decent set of second-quarter earnings and kept its full-year guidance intact, but question marks will inevitably remain on its prospects for the fourth quarter. Earlier in the year, management predicted that 2016 would see revenue and new licenses revenue growth shift to the back half of the year, and now that the company is past its second quarter, it's time to deliver. Let's take a closer look at the results and guidance to see exactly what's going on.

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Illinois Tool Worls Earnings Analysis

Another quarter, another three months of margin expansion for Illinois Tool Works. After a difficult end to 2015 prompting reduced earnings guidance, management has turned momentum around and for the second quarter in a row has raised its guidance for full-year earnings per share. In truth, the guidance hike is more about internal execution and margin optimism than an improvement in the revenue outlook. That said, it's only really the welding segment that's disappointing right now; elsewhere there are signs of a growth recovery in the engineering-equipment manufacturer's end markets. Let's take a closer look at a nuanced quarter that needs some careful explaining.

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General Electric Company Teams Up With Microsoft Azure

General Electric Company's (NYSE:GE) recently announced partnership with Microsoft Corporation (NASDAQ:MSFT) makes GE's cloud based platform-as-a-service (PaaS) Predix available on Microsoft's cloud service Azure. The deal between the two iconic blue chips makes great copy, but what does it mean for the investment case for General Electric stock?
Ge
General Electric Company is connecting railroads to the industrial internet. Image source: GE Digital. 

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Wednesday, July 20, 2016

FedEx Corporation Earnings Article

FedEx Corporation and United Parcel Service, Inc have traditionally been seen as correlated plays on global growth. Both companies, however, are benefiting from specific business trends, such as e-commerce growth, which favor their abilities to decouple from the economy. Let's take a look at the tale of FedEx's fourth quarter to see what happened, and whether these trends are ongoing.

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FedEx Corporation Earnings Preview

FedEx Corporation's (NYSE:FDX) upcoming fourth-quarter results on Tuesday will be eagerly anticipated by investors looking to see if the favorable trends established in 2016 will continue. Like peer United Parcel Service, Inc (NYSE:UPS), FedEx has managed to overcome a slowing global economy and stay on track with its full-year earnings expectations. Can it continue? Let's focus on what to watch in FedEx's earnings report.
It's a good idea to look at these trends in the context of segmental earnings:

Fedex

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Wednesday, July 13, 2016

Stock Analysis: Cisco Systems or IBM

Tech bellwethers Cisco Systems, Inc. and International Business Machines Corporation have much in common. Both are superficially very cheap stocks, but as usual in such cases, significant questions exist over their strategic futures. What is the market afraid of, and are they worth buying on a risk/reward basis? Let's take a look.

Going cheap

Both stocks look cheap, with dividend yields of around 3.6% and free cash flow generation that suggests they could pay much more. In addition, if you look at enterprise value (market cap plus net debt) to free cash flow, the stocks are worth buying even if they only grow earnings in line with inflation.


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Dover Corp. Guidance Cut

Looking at the price chart of Dover Corp. (NYSE:DOV), you might think the company is having a pretty good year operationally in 2016. You would, however, be wrong. In fact, management took a knife to its full-year 2016 revenue and earnings guidance in the first quarter. No matter, the stock continued its gentle climb.
What's going on, and can the rally continue?

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Monday, July 11, 2016

George Soros Stock Picks

Like him or loathe him, George Soros is a highly successful investor, and looking at the stocks Soros Fund Management LLC is buying and selling is always useful. With that in mind, let's take a look at the worst-performing stocks held by the company in 2016. The idea is that they have the potential to bounce back strongly.

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Is Union Pacific Corporation a Buy?

Despite tough end market conditions in 2016, it's been a pretty good year so far the railroad stocks. Union Pacific Corporation (NYSE:UNP) and CSX Corp (NASDAQ:CSX) are both up on the year, and with the recent uptick in manufacturing indicators and the price of oil, there's reason to believe better days are coming for the railroads. That said, is now the time to buy Union Pacific?

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Wednesday, June 29, 2016

Why Advance Auto Parts is a Buy

Auto parts retailer Advance Auto Parts Inc.  has serially disappointed investors in the last year, while peers such as AutoZone, Inc.  and O'Reilly Automotive Inc.  have powered ahead in terms of operational performance and stock price.

Advance Auto parts is having difficulty integrating an acquisition that was supposed to transform the company's fortunes. Meanwhile, senior management have left and company guidance has been slashed for 2016. Is it madness to consider buying the stock? I don't think so, and here's why.

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Is Deere & Company Stock a Buy?

As Deere & Company's  fiscal year 2016 has progressed, its management has lowered full-year earnings and cash flow forecasts. Moreover, competitors such as Caterpillar Inc.  in construction machinery and AGCO Corporation  are both seeing weakening conditions. That said, all of the stocks mentioned are outperforming the S&P 500 on a year-to-date basis as I write.
What's going on with Deere in 2016, and does it's poor relative performance mean it's time to buy the stock?

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Honeywell International vs. United Technologies

United Technologies  and Honeywell International  are having a pretty good year so far. Both stocks have outperformed the S&P 500 as initial fears for an industrial recession have abated throughout the year. United Technologies is the cheaper stock, but both look like a good value based on their forward estimates.
Let's take a look at their presentations at the recent Electrical Products Group (EPG) conference, and what management said about their earnings prospects in 2016.

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Friday, June 10, 2016

General Electric Company Investor Presentation

When analysts at a heavyweight investment bank issue an underweight rating on a stock, it's usually a good idea to re-examine the case for buying or holding the shares. As such, J.P. Morgan's negative call on General Electric Company caused no little angst among the stock's supporters. With this in mind, let's take a look at CEO Jeff Immelt's presentation at the recent Electrical Products Group (EPG) conference, and what it means to the stock's prospects.

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