Earnings Roundup: 7 Top Stocks to Analyze After Earnings
Must Read Feature: Why Apple Needs to Replace Cisco on the Dow 30 Now.
The Walt Disney Company (NYSE:DIS) beat third-quarter earnings expectations, with revenue up 7% to $10.7 billion, net income up 8% to $1.5 billion, and earnings per share coming in at 77 cents, a 15% improvement over a year ago and 4 cents better than analysts expected. CEO Robert Iger credited the company’s media networks, including ESPN, as well as its parks and resorts, and consumer products, for strong revenue growth, but not Disney’s movie studio, which was the only of the entertainment company’s five segments to post a decline in third-quarter revenue, which fell 1% from a year earlier to $1.62 billion. Disney shares climbed 5.06% today, but are down 1.73% in after-hours trading following the company’s earnings report.
Cablevision Systems (NYSE:CVC) shares fell nearly 13% today after the cable company reported a net loss of 23,000 video subscribers during its second quarter. While earnings and revenue still grew, they fell short of analysts’ expectations. The company’s quarterly profit came in at $88.1 million, up from $61.1 million the previous year, while revenue rose 9.1% to $1.69 billion. The company reminds investors that the second-quarter results for its recently spun off cable company AMC Networks are still to come, and CVC figures already reported are markedly lower than expected because they now exclude AMC’s financials. However, Cablevision only added a few broadband and telephone customers, while losing more video subscribers than analysts expected, ending hte quarter with 3.28 million video users.
Scripps Networks (NYSE:SNI), the owner of HGTV, the Food Network, and various other lifestyle cable networks, reported second-quarter earnings Tuesday that beat expectations. The entertainment company reported a quarterly profit of $77.4 million, down 14% from $106.2 million last year. However, the company recently sold online comparison shopping site Shopzilla, and when excluding losses incurred from that sale, the company’s earnings actually rose from $98 million from the year-ago period, to $133 million in its most recent quarter. Overall revenue grew 12%, with advertising revenue growing 13% and affiliate fees growing 6.3%. Revenue for HGTV rose 8.9% to $189 million, Food Network revenue grew 8.2% to $187 million, Travel Channel revenue grew 15% to $70.3 million, DIY Network revenue grew 27% to $29.0 million, and the Cooking Channel’s revenue grew 17% to $15.9 million.
Liberty Media (NASDAQ:LCAPA) reported better-than-expected second-quarter financials for its premium TV service, Starz, and its home shopping cable network, QVC. Starz subscriptions grew to an all-time high of 19 million in the most recent quarter. The channel’s adjusted operating income grew 146% to $118 million as revenue climbed 5% to $403 million. QVC’s operating income climbed 4% to $281 million, with revenue growing 8% to reach $1.9 billion, in large part due to growth in Japan. Liberty shares have climbed 8.23% today.
Cisco Systems, Inc. (NASDAQ:CSCO) reported its results for the fourth quarter. Net income for Cisco Systems, Inc. fell to $1.23 billion (22 cents per share) vs. $1.94 billion (33 cents per share) a year earlier. This is a decline of 36.3% from the year earlier quarter. Revenue rose 3.3% to $11.2 billion from the year earlier quarter. CSCO reported adjusted net income of 40 cents per share. By that measure, the company beat the mean estimate of 32 cents per share. It beat the average revenue estimate of $10.97 billion.
“We’ve made significant progress on our comprehensive action plan to position ourselves for our next stage of growth and profitability, while delivering solid financial results in Q4,” said John Chambers, chairman and CEO, Cisco. “As we start our next fiscal year, you will see a very focused, agile, lean and aggressive company, that is laser focused on helping our customers use intelligent networks to transform their businesses.”
Competitors to Watch: Hewlett-Packard Company (NYSE:HPQ), Juniper Networks, Inc. (NYSE:JNPR), Alcatel-Lucent (NYSE:ALU), Microsoft Corporation (NASDAQ:MSFT), Intl. Business Machines Corp. (NYSE:IBM), Extreme Networks, Inc (NASDAQ:EXTR), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Motorola Mobility Hldgs. Inc (NYSE:MMI), NetGear, Inc. (NASDAQ:NTGR), and ADTRAN, Inc. (NASDAQ:ADTN).
News Corporation (NASDAQ:NWSA) reported its results for the fourth quarter. Net income for the entertainment company fell to $683 million (26 cents per share) vs. $875 million (33 cents per share) a year earlier. This is a decline of 21.9% from the year earlier quarter. Rose 10.5% to $8.96 billion from the year earlier quarter. NWSA reported adjusted net income of 35 cents per share. By that measure, the company beat the mean estimate of 30 cents per share. It beat the average revenue estimate of $8.44 billion.
Commenting on the results, Chairman and Chief Executive Officer Rupert Murdoch said: “I’m pleased that once again News Corporation exhibited operational momentum in both the final quarter of fiscal 2011 and for the full year driven by significant increases at our market-leading Cable Network Programming and Television segments. While it has been a good quarter from a financial point of view, our company has faced challenges in recent weeks relating to our London tabloid, News of the World. We are acting decisively in the matter and will do whatever is necessary to prevent something like this from ever occurring again. “It is important to note that there has been no material impact on our other operations. Our broad, diverse group of businesses across the globe is extremely strong today. The drivers of our businesses are intact, our position is strong and our future is promising. Our fundamental goals at News Corp are to produce sustained, meaningful value for shareholders, provide outstanding content and services to customers and consumers – and do it with integrity. These goals are interrelated and all three are critically important. And we will deliver on them.”
Competitors to Watch: News Corporation (NASDAQ:NWS), The Walt Disney Company (NYSE:DIS), Time Warner Inc. (NYSE:TWX), The New York Times Company (NYSE:NYT), Gannett Co., Inc. (NYSE:GCI), and CBS Corporation (NYSE:CBS).
Macy’s Inc. (NYSE:M) reported net income above Wall Street’s expectations for the second quarter. Net income for the department store rose to $241 million (55 cents per share) vs. $147 million (35 cents per share) in the same quarter a year earlier. This marks a rise of 63.9% from the year earlier quarter. Rose 7.3% to $5.94 billion from the year earlier quarter. M beat the mean analyst estimate of 47 cents per share. Analysts were expecting revenue of $5.86 billion.
“This was our most successful second quarter and spring season in more than a decade. Importantly, it came on top of an impressive first half performance last year. To date this year, we have driven significant additional sales growth, gained market share, maintained strong margins, managed expenses and generated a very healthy level of cash,” said Terry J. Lundgren, Macy’s, Inc. chairman, president and chief executive officer.
Competitors to Watch: Saks Incorporated (NYSE:SKS), J.C. Penney Company, Inc. (NYSE:JCP), Kohl’s Corporation (NYSE:KSS), Nordstrom, Inc. (NYSE:JWN), Dillard’s, Inc. (NYSE:DDS), Sears Holdings Corporation (NASDAQ:SHLD), Target Corporation (NYSE:TGT), Wal-Mart Stores, Inc. (NYSE:WMT), and The TJX Companies, Inc. (NYSE:TJX).
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