3 Interesting Companies Worth Analyzing After Earnings
Eaton Corporation (NYSE:ETN) reported its results for the third quarter. Net income for the industrial electrical equipment company rose to $365 million ($1.07 per share) vs. $268 million (79 cents per share) in the same quarter a year earlier. This marks a rise of 36.2% from the year earlier quarter. Revenue rose 15.5% to $4.12 billion from the year earlier quarter. ETN reported adjusted net income of $1.08 per share. By that measure, the company was about in line with expectations as the mean analyst estimate was $1.09 per share. Analysts were expecting revenue of $4.2 billion.
Alexander M. Cutler, Eaton chairman and chief executive officer, said, “Our record third quarter results were at the midpoint of our guidance range, which we had increased in our July earnings release. This achievement is despite our incurring $0.06 per share of non cash mark-to-market losses on commodity hedge contracts resulting from the virtually unprecedented declines in metals prices which occurred during the last two weeks of September. We also achieved record operating margins and very strong cash flow in the third quarter, demonstrating that our business is continuing to perform well despite the uncertainty affecting the world economy and a number of our end markets.”
Competitors to Watch: Parker-Hannifin Corp. (NYSE:PH), Magnetek, Inc. (NYSE:MAG), Tech/Ops Sevcon, Inc. (NASDAQ:TO), United Technologies Corp. (NYSE:UTX), General Electric Company (NYSE:GE), Sauer-Danfoss Inc. (NYSE:SHS), Dover Corporation (NYSE:DOV), Thomas & Betts Corporation (NYSE:TNB), Roper Industries, Inc. (NYSE:ROP), and Crane Co. (NYSE:CR).
The McClatchy Company’s (NYSE:MNI) net income fell in the third quarter from a year earlier, profit exceeded analysts’ expectations. Net income for The McClatchy Company fell to $9.4 million (11 cents per share) vs. $11.9 million (14 cents per share) a year earlier. This is a decline of 21.1% from the year earlier quarter. Revenue fell 8.4% to $300.2 million from the year earlier quarter. MNI beat the mean analyst estimate of 4 cents per share. It fell short of the average revenue estimate of $307.8 million.
Gary Pruitt, chairman and chief executive officer, said, “Advertising revenues were down 10.0% in the third quarter of 2011, in line with the trend so far this year. We saw some improvement in revenue trends late in the quarter: advertising revenue was down 10.4% in July, 10.8% in August and 8.7% in September.”
Competitors to Watch: Gannett Co., Inc. (NYSE:GCI), GateHouse Media, Inc. (GHSE), The New York Times Company (NYSE:NYT), Lee Enterprises, Inc. (NYSE:LEE), A.H. Belo Corporation (NYSE:AHC), Media General, Inc. (NYSE:MEG), Sun Times Media Group, Inc. (SUTMQ), The E.W. Scripps Company (NYSE:SSP), Daily Journal Corporation (NASDAQ:DJCO), AOL (NYSE:AOL), Interactive Corp (NASDAQ:IACI), McGraw-Hill (NYSE:MHP), Pearson (NYSE:PSO), Washington Post (NYSE:WPO) and News Corporation (NASDAQ:NWSA).
Invesco Ltd. (NYSE:IVZ) reported its results for the third quarter. Net income for the asset management company rose to $166.9 million (36 cents per share) vs. $154.7 million (32 cents per share) in the same quarter a year earlier. This marks a rise of 7.9% from the year earlier quarter. Revenue rose 12.3% to $1.07 billion from the year earlier quarter. IVZ reported adjusted net income of 42 cents per share. By that measure, the company beat the mean estimate of 41 cents per share. Analysts were expecting revenue of $1.06 billion.
“In spite of volatile markets across the globe, Invesco generated strong, long-term investment performance for our clients, which contributed to continued positive net inflows and solid operating results for the quarter,” said Martin L. Flanagan, president and chief executive officer. “Reflecting confidence in the fundamentals of our business, we expect to purchase $100 million of Invesco shares during the fourth quarter.”
Competitors to Watch: BlackRock, Inc. (NYSE:BLK), Affiliated Managers Group, Inc. (NYSE:AMG), Eaton Vance Corp. (NYSE:EV), AllianceBernstein Holding LP (NYSE:AB), Gamco Investors Inc. (NYSE:GBL), Cohen & Steers, Inc. (NYSE:CNS), The Blackstone Group L.P. (NYSE:BX), Morgan Stanley (NYSE:MS), Fortress Investment Group LLC (NYSE:FIG), and T. Rowe Price Group, Inc. (NASDAQ:TROW).