Earnings Roundup: 6 Interesting Stocks to Analyze from the Week
Some interesting companies announced earnings last week. We’ve spared you some precious research time and put together a list of 6 earnings reports we think you should know more about:
1) Joy Global Inc. (NASDAQ:JOYG): Released financial details in its second quarter earnings today, reporting net income above Wall Street’s expectations. Shares were up over 5% by market close today. Net income for the machine tools and accessories company rose to $162 million ($1.52/share) vs. $120.4 million ($1.15/share) in the same quarter a year earlier. A rise of 34.5% from the year earlier quarter. Joy Global outperformed analyst estimates, beat the mean mark of $1.35/share. Estimates ranged from $1.25 per share to $1.53 per share. It beat the average revenue estimate of $1.03 billion. The company has now seen net income rise in three-straight quarters. In the first quarter, net income rose 34.1% and in the fourth quarter of the last fiscal year, the figure rose 18%.
Mike Sutherlin, President and Chief Executive Officer had this to say in regard to first quarter results,”We had another outstanding quarter, reaching record levels of performance in order bookings, shipments, operating profit margins and earnings per share. The balance in our performance across this range of metrics is more satisfying than the records, and it demonstrates our drive to improve all areas of our business through our Operational Excellence programs. In addition, we continue to see solid fundamentals based on the capital investment decisions of our customers.” Look out for similar companies: Bucyrus Intl., Inc. (NASDAQ:BUCY), Caterpillar (NYSE:CAT), and Deere & Company (NYSE:DE).
2) VeriFone Systems, Inc. (NYSE:PAY): reported net income above Wall Street’s expectations for the second quarter. The company designs, markets, and services transaction automation systems that enable secure electronic payments among consumers, merchants, and financial institutions. VeriFone’s second quarter earnings reported adjusted net income of of 46 cents/share. By that measure, the company beat the mean estimate of 43 cents/share. Estimates ranged from 42 cents per share to 45 cents per share. It beat the average revenue estimate of $285.4 million. The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 23.7%, with the biggest boost coming in the first quarter when revenue rose 27% from the year earlier quarter.
Douglas G. Bergeron, Chief Executive Office of VeriFone commented, “We are very pleased with VeriFone’s second quarter results. We have become the critical enablers of payment security, payment-enabled media, and smartphone-based payment at the point of sale, and together with our industry partners we are reshaping the future of payments.” Competitors to keep an eye on: Hypercom Corporation (NYSE:HYC), NCR Corporation (NYSE:NCR), and Radiant Systems, Inc. (NASDAQ:RADS).
3) The Fresh Market (NASDAQ:TFM) released first quarter earnings today, with profits dropping from last year. The chain retail store operator, which offers fresh premium perishable food items in the southeastern, midwestern and mid-Atlantic states, beat mean analysts earnings and revenue estimates banking $264 million in total revenues. Net income for the grocery store fell to $13.5 million (28 cents/share) vs. $19.9 million (41 cents/share) a year earlier. A decline of 11.9% from the year earlier quarter. Shares took a big hit in trading today, with TFM stock shedding some 12% in price following the earnings release.
According to CEO Craig Carlock, Fresh Market stockowners still have reason to be optimistic, “We continue to be pleased with our business performance, particularly our ability to deliver strong earnings growth on top of a robust first quarter last year. We are encouraged by the fact that our business continued to expand and performed consistently and steadily in the first quarter, and we remain confident in our EPS guidance of $1.01 to $1.05 for the year.” Expect stiff competition from these firms: Whole Foods Market, Inc. (NASDAQ:WFM), Safeway Inc. (NYSE:SWY), and The Kroger Co. (NYSE:KR).
4) Dollar General Corporation (NYSE:DG): The discount retailer, which “operates convenient-sized stores to deliver everyday low prices on products that families use every day,” released its second quarter earnings yesterday, reporting strong sales growth of 5.4%. Shares slumped some 9% in early today following the earnings release that fell short of mean analyst estimates, coupled with bad news on all fronts in the market today. Net income for the company rose to $157 million (45 cents/share) vs. $136 million (39 cents per share) in the year earlier quarter, while revenues rose from $3.11 to $3.45 billion.
Rick Dreiling, Chairman and CEO of Dollar General commented on todays earnings, ”Dollar General is off to a great start in 2011. Our first quarter sales exceeded our expectations with strong same-store sales growth of 5.4 percent. As I look back on the first quarter, we maintained our focus on serving our customers and worked to hold the line where we reasonably could when it came to raising prices in an environment of rising commodity and fuel costs. Our customers are depending on Dollar General more than ever for consistent value and convenience.” Keep an eye on competitors Family Dollar Stores, Inc. (NYSE:FDO), 99 Cents Only Stores (NYSE:NDN), and Dollar Tree, Inc. (NASDAQ:DLTR).
5) Jos. A. Bank (NASDAQ:JOSB): The designer, retailer, and direct distributor of men’s clothing known for its homey television advertising released its first quarter earnings today, which also fell short of analyst projections. Shares were slammed in trading today with “Bank” shares falling almost 14% by closing time. Although, the quality retailer’s earnings did offer some redeeming financial statistics. Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.2 percentage points to 64.8% from the year earlier quarter. Over that span, margins have grown on average 1.5 percentage points per quarter on a year-over-year basis. The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 15.5% and in the third quarter of the last fiscal year, the figure rose 7.1%.
According to Jos. A. Bank President and CEO Neal Black, ”We are pleased with our first quarter of 2011, particularly the gross profit margin, which grew by 120 basis points and resulted in a gross profit dollar increase of 10.6%. We faced very strong results from the first quarter of 2010 and had good sales gains in the first quarter of fiscal year 2011 in the suits and dress shirts categories, while our sales declined in certain seasonal products such as sportswear.” Keep an eye on competitors The Men’s Wearhouse, Inc. (NYSE:MW), and Casual Male Retail Group, Inc. (NASDAQ:CMRG).
6) Lion’s Gate Entertainment Corp (NYSE:LGF) : Last but not least, the much beloved producer of films, television programming, home entertainment, family entertainment, video-on-demand and digitally delivered content was able to snap its earnings losing streak and beat mean analyst estimates in terms of earnings per share. Lion’s Gate swung to a profit of $46.1 million (33 cents/diluted share) in the quarter. Lions Gate Entertainment Corp. had a net loss of $22.3 million or a loss 19 cents per share in the year earlier quarter. LGF’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $6 million in the third quarter, a loss of $29.7 million in the second quarter and a loss of $64.1 million in the first.
Lionsgate Co-Chairman and Chief Executive Officer Jon Feltheimer had this to say on earnings, ““Strong performances from our television business and our filmed entertainment library contributed to financial results that exceeded our preliminary estimates.” Shares were up over 4% in trading today. Watch competitors DreamWorks Animation SKG, Inc. (NASDAQ:DWA), The Walt Disney Company (NYSE:DIS), News Corp (NASDAQ:NWSA).
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Disclosure: No positions