Earnings Roundup: 8 Interesting Stocks to Analyze from the Week
Must Read Feature: Here’s Why Chipotle is a Shareholder’s Dream Stock.
General Electric (NYSE:GE): The advanced technology, services and finance company reported second quarter earnings with net income rising to $3.84 billion (34 cents per share) vs. $3.11 billion (28 cents per share) in the same quarter a year earlier. This marks a rise of 23.4% from the year earlier quarter. Revenue dropped 4.9% to $35.6 billion from the year earlier. The company beat the mean analyst estimate of 32 cents per share. It beat the average revenue estimate of $34.72 billion. GE stock is up 1.20%.
“GE Capital’s portfolio transformation is ahead of schedule. Consumer and Commercial Lending and Leasing (CLL) led with earnings growth of 57% and more than 100%, respectively. We continue to see strong demand for credit with CLL new volume originations at $10.8 billion for the quarter, up 33% from prior year.” “With our fifth-consecutive quarter of double-digit earnings growth, we continue to execute in a volatile environment,” GE Chairman and CEO Jeff Immelt said. “We posted solid overall operating earnings growth of 18%, with strong contributions from GE Capital, Healthcare, Transportation, Aviation, and Oil & Gas. GE’s backlog grew to a record high of $189 billion. Total infrastructure orders were up 24%, reflecting robust strength in equipment orders, up 33%, and service orders up 16%.”
Honeywell International, Inc. (NYSE:HON): The tech and manufacturing company recently put together its second quarter fiscal results. Net income for the company rose to $810 million ($1.02 per share) vs. $468 million (73 cents per share) in the same quarter a year earlier. This marks a rise of 73.1% from the year earlier quarter. Revenue rose 15% to $9.09 billion from the year earlier. HON beat the mean analyst estimate of 98 cents per share. It fell short of the average revenue estimate of $9.27 billion.
“Honeywell’s strong second quarter performance reflects terrific execution and continued momentum in our key end markets, contributing to our upside performance in the first half of 2011,” said Honeywell Chairman and CEO Dave Cote. “The sales growth we’re seeing reflects our extensive innovation pipeline and increasing presence in high growth regions. We had particularly robust growth in the Aerospace commercial aftermarket, and our short-cycle businesses such as Advanced Materials, ACS Products, and Turbo Technologies continued to perform well.”
Caterpillar (NYSE:CAT): The construction and mining equipment reporting its second quarter results recently, with net income up to $1.285 billion ($1.72 per share), excluding $204 million of expense related to the acquisition of Bucyrus, vs. $707 million ($1.09 per share) a year earlier. Income including acquisition charges was $1.015 billion ($1.52 per share). Revenue also rose 36.7% to $14.23 billion from the year earlier quarter. CAT fell short of the mean analyst estimate of $1.77 per share. It beat the average revenue estimate of $13.52 billion. “Customer demand around the world continues to improve, and our sales and revenues reached an alltime record in the second quarter. Our employees, dealers and suppliers should feel great about the way they’re responding to the increase in customer demand,” said Chairman and Chief Executive Officer Doug Oberhelman. The stock is down -6.10% this morning.
Altria Group, Inc. (NYSE:MO): Altria, which manufactures and sells cigarettes and tobacco products as well as maintaining a portfolio of leveraged and direct finance leases, saw profits fall in its second quarter. Net income fell to $444 million (21 cents per share) vs. $1.04 billion (50 cents per share) a year earlier. This is a decline of 57.4% from the year earlier quarter. Revenue fell 5.9% to $5.92 billion from the year earlier quarter. Altria reported adjusted net income of 53 cents per share. By that measure, the company fell in line with the mean estimate of 53 cents per share. It beat the average revenue estimate of $4.43 billion. Altria shares are down 0.57% today in after-hours trading.
“Altria continued to deliver solid adjusted EPS growth in the second quarter of 2011,” said Michael E. Szymanczyk, Chairman and Chief Executive Officer of Altria. “Our adjusted EPS growth reflects the strong operating margins and retail share performance of our tobacco companies’ premium brands.”
United Technologies Corporation (NYSE:UTX): The provider of high tech products and services to the building systems and aerospace industries reported positive second quarter results. Net income for United Technologies rose to $1.32 billion ($1.45 per share) vs. $1.11 billion ($1.20 per share) in the same quarter a year earlier. This marks a rise of 18.7% from the year earlier quarter. Revenue rose 9.2% to $15.08 billion from the year earlier quarter. UTX beat the mean analyst estimate of $1.41 per share. It beat the average revenue estimate of $14.7 billion. UTX shares are down 0.28% today in after-hours trading.
“For the first time since the second quarter of 2008, all six of our business segments reported organic sales growth in the quarter,” said Louis Chenevert, UTC Chairman and Chief Executive Officer. “More encouragingly, order rates remain strong and in line with expectations across most of the segments including our longer cycle commercial construction related businesses.
CSX Corporation (NYSE:CSX): The company, which provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers, reported its second quarter results this afternoon, toppling analyst estimates. Net income for CSX rose to $506 million (46 cents per share) vs. $414 million (36 cents per share) in the same quarter a year earlier. This marks a rise of 22.2% from the year earlier quarter. Revenue was also up 13.4% to $3.02 billion from the year earlier quarter. The company beat the mean analyst estimate of 44 cents per share. Analysts were expecting revenue of $2.98 billion. CSX stock is up 1.41% in after hours trades.
“As our markets continue to expand, CSX is delivering outstanding results for shareholders,” said Michael J. Ward, chairman, president and chief executive officer. “At the same time, we are taking a number of actions to position the operations for greater customer demand, now and over the long-term.”
Chipotle Mexican Grill (NYSE:CMG): The popular restaurant chain reported second quarter earnings this afternoon that fell short of expected targets. Net income for Chipotle rose to $50.7 million ($1.59 per share) vs. $46.5 million ($1.46 per share) in the same quarter a year earlier. This marks a rise of 9% from the year earlier quarter. Revenue jumped 22.4% to $571.6 million from the year earlier quarter. The company fell short of the mean analyst estimate of $1.68 per share. It beat the average revenue estimate of $558.3 million. CMG stock is down -3.66% in after hours trades.
“We are continuing to focus on our efforts to serve better tasting food, made with ingredients from more sustainable sources, and on building a people culture that delights our customers and allows us to develop the future leaders we will need to support our growth. In spite of some cost challenges during the quarter, we continue to believe that our relentless focus on these things, which really drive our business, will allow us to produce great results for our shareholders over the long term,” said Steve Ells, founder, chairman and co-CEO of Chipotle.
Halliburton Company (NYSE:HAL): The provider of oilfield technologies and services to upstream oil and gas customers worldwide reported its second quarter results today. Net income for HAL rose to $739 million (80 cents per share) vs. $480 million (53 cents per share) in the same quarter a year earlier. This marks a rise of 54% from the year earlier quarter. Revenues rose 35.3% to $5.93 billion from the year earlier quarter. Halliburton beat the mean analyst estimate of 72 cents per share. It beat the average revenue estimate of $5.69 billion. The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by 5 cents in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year. HAL stock closed up 0.08% today.
Competitors to Watch: Baker Hughes Incorporated (NYSE:BHI), Schlumberger Limited. (NYSE:SLB), Weatherford Intl. Ltd. (NYSE:WFT), Cameron Intl. Corp. (NYSE:CAM), Complete Production Services, Inc. (NYSE:CPX), TETRA Technologies, Inc. (NYSE:TTI), RPC, Inc. (NYSE:RES), Helix Energy Solutions Group Inc. (NYSE:HLX), Oceaneering International (NYSE:OII), and National-Oilwell Varco, Inc. (NYSE:NOV).
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