Wednesday, August 16, 2017

Robert Half International Earnings Analysis

Leading staffing company Robert Half International Inc. (NYSE:RHI) delivered a solid set of results in its latest earnings report, and its numbers imply a relative improvement in the U.S. employment market. Moreover, management highlighted a leading indicator that suggests conditions will improve in the coming quarters.
Let's look at the results from one of the best bellwethers of the U.S. economy.

READ THE FULL ARTICLE LINKED 

BorgWarner Earnings Analysis

According to BorgWarner Inc. (NYSE:BWA) management, the outlook for the auto industry worsened in the past few months. But you wouldn't know it from the company's second-quarter results released on Thursday. BorgWarner is outperforming its end markets, and to such an extent that management felt compelled to raise full-year sales and earnings guidance.
Let's take a look at a strong quarter for the engine and drivetrain company.

READ THE FULL ARTICLE LINKED 

WESCO International Earnings Analysis

Not all industrial recoveries are equal. That's the message in the second-quarter earnings report from supply chain solutions provider WESCO International, Inc. (NYSE:WCC). Aside from construction, the company's end markets are improving, but the lackluster nature of the recovery has led to pressure, and management cut its full-year expectations for margin and earnings. Let's take a look at the mixed earnings report.

READ THE FULL ARTICLE LINKED 

Saturday, August 12, 2017

Dassault Systemes Earnings Analysis

It's not often that long-term considerations overshadow current trading matters on an earnings call, but that was the case with engineering design software company Dassault Systemes(NASDAQOTH:DASTY). In a nutshell, the company is on track with its objectives in 2017, but the announcement of Boeing's (NYSE:BA) decision to adopt Dassault's 3DExperience platform across its commercial aviation, space, and defense work grabbed the attention of investors. Let's take a look at the earnings report and the the Boeing announcement in more detail.

READ THE FULL ARTICLE LINKED 

Illinois Tool Works Earnings Analysis

Multi-industrial company Illinois Tool Works (NYSE:ITW) delivered another good quarter of earnings and raised full-year guidance across the board. It was a positive quarter for the company, driven by its automotive segment and recovery in some of its more cyclical segments (specifically welding, test and measurement, and electronics). That said, management served notice of a relative slowdown in the third quarter. Let's take a look at a busy second quarter for the company.

READ THE FULL ARTICLE LINKED  

Thursday, August 10, 2017

General Electric's Earnings Fail

A quick look at the headline guidance from General Electric Company (NYSE:GE) would conclude that everything is on track in 2017, as the guidance ranges were exactly the same as those given in the first-quarter earnings presentation. However, the devil is in the details, and the reality is that this was a disappointing set of earnings, as Jeff Immelt signed off his tenure as CEO by guiding investors toward the low end of expectations. Moreover, the tone and commentary suggested more difficulties to come, and it wouldn't be surprising if new CEO John Flannery begins his tenure by cutting guidance.
Let's take a closer look a difficult quarter for the company.

READ THE FULL ARTICLE LINKED 

Honeywell International Guidance Looks Conservative

Honeywell International's  second-quarter results created a sense of déjà vu, leaving some analysts feeling that management was being conservative with regard to its outlook. Earnings of $1.80 came in at the high-end of management's guidance, and organic sales growth of 3% was significantly above the guidance range of 0%-2%. However, management merely raised the bottom end of its full-year guidance to $7-$7.10 from a previous range of $6.90-$7.10. Is Honeywell's management being too cautious with guidance?

READ THE FULL ARTICLE LINKED 

Danaher Corp Earnings Analysis

Danaher Corporation's (NYSE:DHR) second-quarter results were almost an investing trivia question: Which company beat earnings expectations and raised full-year guidance, but still managed to disappoint investors? The answer: Danaher. Its earnings were good, but the company is tracking behind its full-year revenue guidance, and there are question marks on its dental segment. Is Danaher still worth investing in?

READ THE FULL ARTICLE LINKED 

Sunday, August 6, 2017

Caterpillar Investors Should be Prepared For This

Deciding whether to buy or sell stock in Caterpillar Inc. (NYSE:CAT) raises one of the great investing conundrums: what to do with a stock that has strong earnings momentum, but whose current valuation is starting to look high on a historical basis. Let's take a look at the investment case for buying the stock and why the valuation should be giving investors cause for concern.

READ THE FULL ARTICLE LINKED 

Wednesday, August 2, 2017

Check Point Software Earnings Review

After an uncertain outlook for the industry at the start of the year, it's turned out to be a pretty good year for network cybersecurity companies, and the latest results from Israeli company Check Point Software Technologies Ltd. (NASDAQ:CHKP) this week confirmed an industry in good shape. That said, there were a couple of points that might have left investors concerned. Let's take a look at them in the context of a broadly positive set of second-quarter earnings.

READ THE FULL ARTICLE LINKED 

A Few Things You Didn't Know About FedEx Corporation


It's easy to quickly conclude that FedEx Corporation (NYSE:FDX) is just a smaller version of United Parcel Service (NYSE:UPS) and that the two companies are essentially interchangeable, except for FedEx's greater emphasis on express deliveries. However, a closer look at the facts reveals some key differences. Here's a look at some things that might make you think differently about FedEx.

READ THE FULL ARTICLE LINKED 

GE Earnings Review

The upcoming second-quarter earnings report from General Electric Company (NYSE:GE) will have investors eagerly looking for clues of any changes in strategic direction. However, the first thing management needs to do is reassure investors it's on track with its medium-term objectives. Keeping with that line of thought, let's look at three things investors need to hear from GE's management.

READ THE FULL ARTICLE LINKED 

Sunday, July 30, 2017

Why GE stock can turnaround

General Electric Company's  stock is down 16.6% year to date as I write. However, declines in good stocks can create buying opportunities for enterprising investors. So let's look at nine reasons stockholders can expect the market to look more favorably on this stock in the future.

READ THE FULL ARTICLE LINKED 

Honeywell Earnings Preview

Honeywell International's (NYSE:HON) second quarter is shaping up to be a very interesting one for investors. In short, the company faces a mix of earnings headwinds and tailwinds, and it's hard to predict whether the net result will be a raising of the company's full-year guidance. Let's take a look at three key things to look out for when CEO Darius Adamczyk discusses current trading and outlook.

READ THE FULL ARTICLE LINKED

United Technologies at the Paris Air Show

Diversified industrial United Technologies Corporation (NYSE:UTX) held a meeting for analysts and portfolio managers at the Paris Air Show, in which management outlined progress and expectations for its aerospace businesses in 2017. The next few years are transitional ones for the company, and what it does now is critical for its long-term future

READ THE FULL ARTICLE LINKED 

FedEx Earnings Takeaways

The fourth-quarter results from FedEx Corp. (NYSE:FDX) contained many guideposts for the company's future performance. Both FedEx and key rival United Parcel Service (NYSE:UPS)have a lot happening in the next few years that investors should be aware of: Here are five key takeaways from the recent report.

READ THE FULL ARTICLE LINKED 

Tuesday, July 25, 2017

FedEx Corporation Investors Biggest Fear

It's well known that package delivery giants FedEx Corporation  and United Parcel Service  have a long-term growth opportunity from burgeoning e-commerce deliveries, but what's less understood is the increasing demand on the networks. It's creating the necessity for increased capital expenditures, and that's likely to negatively impact free cash flow generation in the future. Let's take a closer look.

READ THE FULL ARTICLE LINKED 

Rockwell Automation is a Buy

Sometimes it's difficult to change the way you think about a stock. In the case of Rockwell Automation (NYSE:ROK) the company has always been seen as an all-purpose way to play trends in the industrial sector. However, given the importance of the company's sensors, controls, software architecture, and automation solutions to the Industrial Internet of Things (IIOT), it's time to start thinking about the company as a long-term way to play the growth of IIOT -- something that might encourage a positive rerating in the stock. Let's take a closer look.

READ THE FULL ARTICLE LINKED 

Will GE Lower Earnings Expectations?

The departure of long-serving CEO Jeff Immelt leaves General Electric Company (NYSE:GE)investors wondering what's next for the company. In reality, it's too much to expect any major changes in the strategic direction of GE, but new CEO John Flannery will begin his tenure facing concerns that the company's stated earnings targets -- specifically, $2 in operating earnings by 2018 -- will have to be taken down. Let's take a closer look at what lies ahead for Flannery.

READ THE FULL ARTICLE LINKED 

Saturday, July 22, 2017

FedEx Earnings Review

The fourth-quarter results from FedEx Corporation (NYSE:FDX) were broadly positive, but the best word to describe them is "noisy." The headline numbers were impacted by a combination of issues including the integration of TNT Express, pricing actions taken to improve yield, and network expansion costs. There is a lot going on in the earnings report; here are the key points

READ THE FULL ARTICLE LINKED 

3 Stocks Up Big in 2017

Machine-vision company Cognex Corporation (NASDAQ:CGNX), roofing and insulation company Owens Corning (NYSE:OC), and industrial tools company Stanley Black & Decker (NYSE:SWK) have all seen sharp increases in their stock prices in 2017. So is now the time to cash in some gains? Let's look at what's happened with all three and consider why there may be more to come from them in 2017.

READ THE FULL ARTICLE LINKED 

Dover Corp Plans to Grow Earnings

Oil and gas-focused industrial stocks like Dover Corp (NYSE:DOV) have seen an uptick in prospects in 2017 with the recovery in energy capital spending, and Dover has raised organic revenue guidance in its three other operating segments. The company is having a strong 2017, and its three-year outlook to 2019 -- provided at a recent investor meeting -- suggests that the stock could have further upside potential. Let's take a look at what investors can expect.

READ THE FULL ARTICLE LINKED 

Thursday, July 13, 2017

Why Ingersoll-Rand PLC Stock is a Buy

Heating, ventilation, and air conditioning (HVAC) company Ingersoll-Rand PLC (NYSE:IR) is the most compelling stock in the electrical equipment sector, offering investors an attractive mix of long-term growth, margin expansion, and free cash flow generation. Let's take a closer look at why Ingersoll-Rand might be a useful addition to your portfolio.

READ THE FULL ARTICLE LINKED HERE 

Electrical Equipment Stocks With Good Dividends

So you want to invest in the electrical equipment sector and you also want a healthy dividend to go with it. In that case, here's a rundown of the leading players in the industry and which ones are of particular relevance to income-seeking investors.

READ THE FULL ARTICLE LINKED 

Tuesday, July 11, 2017

Agricultural Equipment Stocks to Buy

It's been a difficult five years for the agricultural-equipment sector as record harvests have led to falling crop prices and a lack of willingness among farmers to buy new machinery. However, the uptick in key crop prices such as corn, wheat, and soybeans in 2017 is encouraging investors to believe a turnaround in fortunes is about to take place. In this line of thought, let's look at the three best stocks in the sector, namely Deere & Company (NYSE:DE)AGCO Corporation (NYSE:AGCO) and CNH Industrial NV (NYSE:CNHI).

READ THE FULL ARTICLE LINKED 

Rockwell Automation Stock Carries a Premium

On both an absolute and relative basis, Rockwell Automation (NYSE:ROK) stock looks expensive. As you can see below, its current P/E ratio of around 27 times earnings means it commands a premium to the electrical equipment sector.
Time to hit the sell button? Not so fast -- here are five reasons Rockwell Automation's premium rating is deserved, and why the stock might even be a good value option.

READ THE FULL ARTICLE LINKED  

Thursday, June 29, 2017

3M Co Stock Analysis

The first-quarter proved to be a good one for the industrial sector, and particularly so for multi-industry companies like 3M Co (NYSE:MMM) and Illinois Tool Works (NYSE:ITW). Both companies reported strong first quarters and raised their full-year revenue and earnings guidance. That said, they both currently trade on valuations that look expensive compared to previous years. . Let's take a look at the investment case for and against buying stock in 3M Co.

READ THE FULL ARTICLE LINKED 

Tuesday, June 27, 2017

Key Takeaways From General Electric Company Presentations

It hasn't been a great year for shareholders of General Electric (NYSE:GE), who have watched as the stock hassignificantly underperformed the S&P 500. Now, CEO Jeff Immelt is under pressure to reassure the investment community that the company is back on track toward its earnings and operational goals, and he sought to do just that with his presentation at the Electrical Products Group conference last week. Let's take a closer look at the key takeaways from the presentation.

READ THE FULL ARTICLE LINKED 

Where is UPS Going in 2017?

It's no secret that United Parcel Service, Inc (NYSE:UPS) and FedEx Corporation (NYSE:FDX) are key beneficiaries of the e-commerce revolution. While that's good news from a revenue growth perspective, it's not necessarily a good thing from a margin and cash flow perspective. Both companies are facing margin pressure from growing e-commerce deliveries, and UPS in particular is having to ramp up capital expenditures and costs in order to support future growth.
In this context, let's take a look at what's going on at UPS and how it affects the investment proposition. 

READ THE FULL ARTICLE LINKED 

China in 2017

There is no shortage of economists predicting China GDP growth rates for 2017 from a top-down perspective, but what about looking at matters from a bottom-up approach? In that context, here's what leading industrial companies said about the first quarter and what to expect going forward.

READ THE FULL ARTICLE LINKED 

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.

READ THE FULL ARTICLE LINKED 

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.

READ THE FULL ARTICLE LINKED 

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

READ THE FULL ARTICLE LINKED 

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.

READ THE FULL ARTICLE LINKED 

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.

READ THE FULL ARTICLE LINKED 

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.

READ THE FULL ARTICLE LINKED 

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.

READ THE FULL ARTICLE LINKED


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

READ THE FULL ARTICLE LINKED 

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

READ THE FULL ARTICLE LINKED 

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?

READ THE FULL ARTICLE LINKED 

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.

READ THE FULL ARTICLE LINKED 

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.

READ THE FULL ARTICLE LINKED 

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.

READ THE FULL ARTICLE LINKED 

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.

READ THE FULL ARTICLE LINKED

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.

READ THE FULL ARTICLE LINKED 

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.

READ THE FULL ARTICLE LINKED 

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.

READ THE FULL ARTICLE LINKED 

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

READ THE FULL ARTICLE LINKED 

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.

READ THE FULL ARTICLE LINKED