Our EPS Movers for April 27, 2011 highlights a positive driver at Boeing and negative news at Rockwell Automation and Broadcom. Being an old analyst, I could not help but add my feeling (or value added color) to the market moving news found here.
Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.
Today's EPS reporters included NYSE: AEA, Nasdaq: AFFX, NYSE: AFL, Nasdaq: AKAM, NYSE: ATI, NYSE: ALL, Nasdaq: ARII, Nasdaq: ARRS, NYSE: ARW, NYSE: ABG, NYSE: AIZ, NYSE: AVB, NYSE: AVY, Nasdaq: BIDU, NYSE: BHI, NYSE: ABX, NYSE: BP, NYSE: EAT, NYSE: COG, Nasdaq: CTIC, Nasdaq: CHRM, Nasdaq: CINF, NYSE: CIT, Nasdaq: CTXS, NYSE: COP, NYSE: GLW, Nasdaq: CSGP, NYSE: CS, NYSE: CCI, NYSE: DAN, Nasdaq: DEST, NYSE: DBD, Nasdaq: DCOM, NYSE: DPS, NYSE: DTE, NYSE: DUF, Nasdaq: EBAY, NYSE: ENR, NYSE: EFX, NYSE: ETH, NYSE: RE, Nasdaq: DAVE, Nasdaq: FISV, Nasdaq: FLEX, NYSE: FLS, NYSE: GD, Nasdaq: GERN, NYSE: HGR, NYSE: HES, NYSE: HMC, Nasdaq: ISIL, NYSE: IVZ, Nasdaq: IPCM, NYSE: JAH, Nasdaq: KALU, Nasdaq: KONA, NYSE: LAZ, NYSE: LNC, NYSE: LAD, NYSE: LIZ, Nasdaq: LOGI, NYSE: LZ, NYSE: LL, NYSE: MSO, NYSE: MHH, Nasdaq: MBFI, NYSE: MWV, NYSE: MCO, Nasdaq: MORN, NYSE: NOV, NYSE: NSC, NYSE: NOC, Nasdaq: NTRI, NYSE: OII, NYSE: OIS, NYSE: OC, NYSE: OI, NYSE: PH, Nasdaq: PFCB, NYSE: PX, NYSE: RA, NYSE: RGS, Nasdaq: SVVS, NYSE: SCG, NYSE: SEE, NYSE: SCI, NYSE: SKX, Nasdaq: SBUX, Nasdaq: SRCL, Nasdaq: SUPG, NYSE: SPN, Nasdaq: SUSQ, NYSE: TDY, NYSE: JNY, NYSE: TMO, NYSE: TRN, NYSE: TUP, NYSE: VAR, NYSE: WLP, NYSE: WHR, NYSE: WYN, Nasdaq: XLNX.
EPS Movers – BA BRCM ROK
By The Greek
Boeing
Boeing (NYSE: BA) climbed about 1% after the aerospace giant beat analyst expectations and affirmed both revenue and EPS guidance. Boeing earned $0.78 a share, beating analysts' expectations handily, as FactSet had the consensus at $0.70. All was not perfect though, as BA's revenue, at $14.9 billion, was short of analysts' expectations for $15.3 billion. The company's revenue shortfall derived from its commercial aircraft production, which missed expectations. Boeing's 777 deliveries were down from the prior year, but the company plans to up production to 7 per month, from 5 now, to make up for the difference. The company's military aircraft deliveries satisfied analysts. The company built up investor confidence by reaffirming its full year guidance, which calls for revenues of $68 to $71 billion and EPS of $3.80 to $4.00 per share. Boeing said it still expected to deliver its new 787 during the third quarter and its freighter version of its 747-8 in the middle of the year. Playing catch up ain't easy, and we've been hearing about the new jumbo jet for a long while now... In other words, my hopes are not high here.
Broadcom
Broadcom (Nasdaq: BRCM) dropped 12% after the company provided soft second quarter guidance tied to the mobility unit, an area of importance and the reason why several analysts favor the shares. Broadcom posted quarterly revenue of $1.82 billion, against the analysts' consensus forecast for $1.81 billion, according to Thomson Reuters data. The company posted adjusted quarterly income of $0.68 a share, versus the analysts' consensus for $0.59. At least two analysts came out to defend the shares, already rated buy by both firms (Lazard and Needham). The company said its revised guidance for the current quarter is for $1.75 billion to $1.85 billion in net revenue, and that matched poorly against the analysts' consensus, which sat at $1.9 billion. Some of the defensive chatter pointed to overall weakness in mobile phones; in other words, not Broadcom's fault, nor a market share issue. Still, when investors are banking on a certain level of sales and EPS, and the result is short, then the stock price will compensate as well. Of the three companies listed, though, this is the only one I'm somewhat positive about on weakness.
Rockwell Automation
Rockwell Automation (NYSE: ROK) lost 8.5% Wednesday after it cited Japan related supply chain issues, warning its full FY 11 could be affected. The maker of factory efficiency systems beat fiscal second quarter expectations, earning $1.14 a share, against an analysts' consensus estimate marked at $1.12 (Thomson Reuters). The company topped sales estimates too, making $1.46 billion, against estimates for $1.41 billion. The company has benefited this year by renewed corporate investment in manufacturing efficiency, and the company's shares had risen nearly 40% this year, and so there was little margin for error heading into the report. Investors had gotten used to the company raising guidance each quarter. What's ironic is that the company still raised the bottom end of its guidance range, but kept the ceiling the same (range: $4.40 to $4.60). That change left the analysts' consensus of $4.54 for the full year sitting naked above the middle of the company's guidance, and investors lost some enthusiasm. The company says some of its Japanese suppliers of lesser importance operate in nuclear troubled areas, and that while its inventory is okay for the current quarter, the end of this year and 2012 could be affected by any shortfall of supply. We call this the first shoe to drop, and the first is usually followed by a second...
The rest of the day's earnings reports highlighted Advance America (NYSE: AEA), Affymetrix (Nasdaq: AFFX), Aflac (NYSE: AFL), Akamai Technologies (Nasdaq: AKAM), Allegheny Technologies (NYSE: ATI), Allstate (NYSE: ALL), American Railcar (Nasdaq: ARII), ARRIS Group (Nasdaq: ARRS), Arrow Electronics (NYSE: ARW), Asbury Automotive (NYSE: ABG), Assurant (NYSE: AIZ), Avalonbay (NYSE: AVB), Avery Dennison (NYSE: AVY), Baidu (Nasdaq: BIDU), Baker Hughes (NYSE: BHI), Barrick Gold (NYSE: ABX), BP (NYSE: BP), Brinker International (NYSE: EAT), Cabot Oil and Gas (NYSE: COG), Cell Therapeutics (Nasdaq: CTIC), Charm Communications (Nasdaq: CHRM), Cincinnati Financial (Nasdaq: CINF), CIT Group (NYSE: CIT), Citrix Systems (Nasdaq: CTXS), ConocoPhillips (NYSE: COP), Corning (NYSE: GLW), Costar (Nasdaq: CSGP), Credit Suisse (NYSE: CS), Crown Castle (NYSE: CCI), Dana Holding (NYSE: DAN), Destination Maternity (Nasdaq: DEST), Diebold (NYSE: DBD), Dime Community Bancshares (Nasdaq: DCOM), Dr. Pepper Snapple (NYSE: DPS), DTE Energy (NYSE: DTE), Duff & Phelps (NYSE: DUF), eBay (Nasdaq: EBAY), Energizer (NYSE: ENR), Equifax (NYSE: EFX), Ethan Allen (NYSE: ETH), Everest Re (NYSE: RE), Famous Dave’s (Nasdaq: DAVE), Fiserv (Nasdaq: FISV), Flextronics (Nasdaq: FLEX), Flowserve (NYSE: FLS), General Dynamics (NYSE: GD), Geron (Nasdaq: GERN), Hanger Orthopedic (NYSE: HGR), Hess (NYSE: HES), Honda Motor (NYSE: HMC), Intersil (Nasdaq: ISIL), Invesco (NYSE: IVZ), IPC The Hospitalist (Nasdaq: IPCM), Jarden (NYSE: JAH), Kaiser Aluminum (Nasdaq: KALU), Kona Grill (Nasdaq: KONA), Lazard (NYSE: LAZ), Lincoln National (NYSE: LNC), Lithia Motors (NYSE: LAD), Liz Claiborne (NYSE: LIZ), Logitech (Nasdaq: LOGI), Lubrizol (NYSE: LZ), Lumber Liquidators (NYSE: LL), Martha Stewart (NYSE: MSO), Mastech (NYSE: MHH), MB Financial (Nasdaq: MBFI), Meadwestvaco (NYSE: MWV), Moody’s (NYSE: MCO), Morningstar (Nasdaq: MORN), National Oilwell Varco (NYSE: NOV), Norfolk Southern (NYSE: NSC), Northrop Grumman (NYSE: NOC), Nutrisystem (Nasdaq: NTRI), Oceaneering International (NYSE: OII), Oil States (NYSE: OIS), Owens Corning (NYSE: OC), Owens Illinois (NYSE: OI), Parker Hannifin (NYSE: PH), P.F. Chang’s China Bistro (Nasdaq: PFCB), Praxair (NYSE: PX), RailAmerica (NYSE: RA), Regis (NYSE: RGS), Savvis (Nasdaq: SVVS), SCANA (NYSE: SCG), Sealed Air (NYSE: SEE), Service Corp. (NYSE: SCI), Skechers (NYSE: SKX), Starbucks (Nasdaq: SBUX), Stericycle (Nasdaq: SRCL), Supergen (Nasdaq: SUPG), Superior Energy (NYSE: SPN), Susquehanna Bancshares (Nasdaq: SUSQ), Teledyne (NYSE: TDY), The Jones Group (NYSE: JNY), Thermo Fisher Scientific (NYSE: TMO), Trinity Industries (NYSE: TRN), Tupperware (NYSE: TUP), Varian Medical (NYSE: VAR), Wellpoint (NYSE: WLP), Whirlpool (NYSE: WHR), Wyndham Worldwide (NYSE: WYN), Xilinx (Nasdaq: XLNX) and more.
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