Earnings Roundup: The Most 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 5 earnings reports we think you should know more about:

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1) Oracle Corp (NASDAQ:ORCL): The business software developer reported its earnings for the fourth quarter yesterday. Net income for the application software company rose to $3.21 billion (62 cents/share) vs. $2.36 billion (46 cents/share) in the same quarter a year earlier. A rise of 35.8% from the year earlier quarter. Revenue rose 13.4% to $10.78 billion YoY. The company reported adjusted net income of 75 cents/share. By that measure, the company beat the mean estimate of 71 cents/share. Estimates ranged from 68 cents per share to 73 cents per share. Analysts were expecting revenue of $10.75 billion. Oracle President and CFO, Safra Catz, commented, noting, “In Q4, we achieved a 19% new software license growth rate with almost no help from acquisitions. This strong organic growth combined with continuously improving operational efficiencies enabled us to deliver a 48% operating margin in the quarter. As our results reflect, we clearly exceeded even our own high expectations for Sun’s business” ORCL shares are down over 3.5% premarket.

2) Lennar Corp. (NYSE:LEN): the company builds affordable, move-up and retirement homes primarily under the Lennar brand name throughout the United States. Today LEN reported its most recent earnings, with net income for the residential construction company falling to $24.8 million (7 cents/share) vs. $46.6 million (21 cents/share) a year earlier. A decline of 46.7% from the year earlier quarter. Revenues at Lennar also fell 6.1% to $764.5 million YoY. The company beat the mean analyst estimate of 4 cents/share. Estimates ranged from a loss of 10 cents per share to a profit of 15 cents per share. It also topped the average revenue estimate of $643.1 million.

Stuart Miller, CEO of Lennar Corporation, commented on today’s announcement, “We are pleased to report EPS of $0.07 for our second fiscal quarter of 2011. Despite operating in a challenging housing market that saw very little evidence of a spring selling season, we were still able to achieve strong results, making this our fifth consecutive quarter of profitability. Our new orders during the quarter were flat with last year notwithstanding the elevated level of sales in March and April of the prior year due to the Federal homebuyer tax credit. For the month of May, new orders were up over 30%, while new orders declined approximately 11% in the prior two months.” LEN shares ended the day up 2.27%.

3) Discover Financial Services (NYSE:DFS): Discover Financial Services is a credit card issuer in the United States and an electronic payment services company. The business reported its second quarter earnings today. Net income for the credit services company rose to $600 million ($1.09/share) vs. $258.1 million (33 cents/share) in the same quarter a year earlier. A more than twofold rise from the year earlier quarter. DFS beat the mean analyst estimate of 70 cents/share. Estimates ranged from 53 cents per share to 89 cents per share.

Discover CEO David Nelms commented, “Our all-time record results this quarter reflect the effectiveness of the Discover business model. Sustained improvements in credit performance have driven substantial releases of credit loss reserves, a portion of which has been reinvested for growth. The benefits of these investments can be seen in both our Direct Banking and Payment Services results this quarter. Our capital levels have also benefited from this outstanding performance, leading us to our recent announcement of a $1 billion share repurchase program.” DFS shares finished the day up 1.27%.

4) Rite Aid Corporation (NYSE:RAD): the company reported its first quarter earnings today, with losses narrowing. Loss narrowed to $63.1 million (loss of 7 cents/diluted share) from $73.7 million (loss of 9 cents/share) in the same quarter a year earlier. Revenues for RAD remained constant at $6.39 billion. The company beat the mean analyst estimate of a loss of 12 cents/share. Estimates ranged from a loss of 6 cents per share to a loss of 16 cents per share. Analysts were expecting revenue of $6.36 billion. John Standley, Rite Aid president and CEO, noted, “We are pleased with the continued improvement in our results. We increased Adjusted EBITDA as we again grew same store sales and further reduced operating costs. Our sales initiatives continued to gain traction with the number of members enrolled in our wellness+ customer loyalty program reaching nearly 40 million. Prescriptions filled in comparable stores increased as customers took advantage of our new pharmacy programs.” RAD ended the day up over 6.3%.

5) Federal Express (NYSE:FDX): FedEx Corporation provides various transportation, e-commerce and business services. The company reported net income that rose to $558 million ($1.75/share) vs. $419 million ($1.33/share) in the same quarter a year earlier. Revenues also rose 11.9% to $10.55 billion YoY. FDX beat the mean analyst estimate of $1.72/share. Estimates ranged from $1.54 per share to $1.85 per share. Analysts were expecting revenue of $10.41 billion. Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer, commented on the company’s recent earnings, saying, “During fiscal 2011, an improved economy, strong customer demand and decisive actions to grow our business led to increased volumes and yields across all transportation segments. With this positive momentum, moderate economic growth and subsiding cost headwinds, FedEx is well positioned to deliver strong earnings growth in fiscal 2012.” FDX stock ended the day up 2.59%.

6) CarMax Group (NYSE:KMX): the retailer of used vehicles in the United States, which also sells new vehicles under franchise agreements with Chrysler, General Motors, Nissan and Toyota, reported first quarter earnings today. Net income for CarMax Group rose to $126.3 million (55 cents/share) vs. $101.1 million (44 cents/share) in the same quarter a year earlier. A rise of 24.9% from the year earlier quarter. Revenues also rose 18.5% to $2.68 billion YoY. KMX beat the mean analyst estimate of 47 cents/share. Estimates ranged from 44 cents per share to 49 cents per share. It beat the average revenue estimate of $2.53 billion. The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 18.8% and in the third quarter of the last fiscal year, the figure rose 10.4%.

Tom Folliard, president and chief executive officer spoke on the company’s most recent quarter, noting, “We are pleased to report another quarter of strong results. Comparable store used unit sales increased 6%, fueled by increased customer traffic. While traffic for the current quarter remained solidly above the prior year level, sales conversion dipped somewhat. We are especially pleased with our performance in light of recent economic and market challenges, including higher gas and vehicle prices, the uptick in the unemployment rate and the recent pull-back in consumer confidence.” KMX ended the day up over 7%.

7) Bed Bath and Beyond: (NASDAQ:BBBY): The chain of retail stores reported its earnings for the fourth quarter today. Net income for Bed Bath & Beyond Inc. rose to $180.6 million (72 cents/share) vs. $137.5 million (52 cents/share) a year earlier. A rise of 31.3% from the year earlier quarter. Revenues also rose 9.7% to $2.11 billion YoY. The company beat the mean analyst estimate of 63 cents/share. Estimates ranged from 60 cents per share to 67 cents per share. BBBY finished even in trading on the day, but is posting gains of 2.52% in after hours activity.

8) Jabil Circuits Inc. (NYSE:JBL): the independent provider of electronic manufacturing services and solutions, that offers product management and aftermarket services to companies in a wide range of industries reported higher profits for the third quarter this morning. Net income for Jabil Circuit Inc. rose to $104.7 million (47 cents/share) vs. $52 million (24 cents/share) in the same quarter a year earlier. A more than twofold rise from the year earlier quarter. The company reported adjusted net income of 58 cents per share. The company beat the mean analyst estimate of 57 cents/share. Estimates ranged from 54 cents per share to 58 cents per share. It beat the average revenue estimate of $4.14 billion as well. Timothy L. Main, President and CEO of Jabil, offered his take on the quarter, “Revenue growth was stronger than expected for our third quarter. We are pleased to demonstrate continued growth above our long-term targets. As a result, Jabil is poised to deliver record revenue and earnings in fiscal 2011.” Jabil is up over 3% in pre-market activity.

9) Adobe Systems Inc. (NASDAQ:ADBE) The creator and distributor of creative, business, Web and mobile software and services reported its earnings for the second quarter, reporting net income above expectations. Net income for the application software company rose to $229.4 million (45 cents/share) vs. $148.6 million (28 cents/share) in the same quarter a year earlier, while revenues also grew 8.5% to $1.02 billion YoY. Adobe reported adjusted net income of 55 cents/share. By that measure, the company beat the mean estimate of 51 cents/share. Estimates ranged from 49 cents per share to 53 cents per share. It beat the average revenue estimate of $994.8 million. Revenue has risen the past four quarters. Revenue increased 19.7% to $1.03 billion in the first quarter. The figure rose 33.1% in the fourth quarter of the last fiscal year from the year earlier and climbed 42% in the third quarter of the last fiscal year from the year-ago quarter. According to Shantanu Narayen, president and CEO of Adobe, “Our strong Q2 performance demonstrates our strategy of enabling users to make, manage and measure great digital experiences is resonating with our customers.” ADBE shares down 4.56% pre-market.

10) Walgreens Co. (NYSE:WAG): Published its results for the third quarter today. The retail drug store operator and general merchandiser recorded a rise net income to $603 million (65 cents/share) vs. $463 million (47 cents/share) in the same quarter a year earlier, a gain of 30.2% from the year earlier quarter. Walgreens inched out analyst estimates in both earnings per share and revenues, (EPS at $.62 per share v. $.61 expected, revenues of $18.37 billion v. $18.33 expected).  The company has now seen net income rise in three-straight quarters. In the second quarter, net income rose 10.5% and in the first quarter, the figure rose 18.6%. Gross margins grew 0.4 percentage point to 28.1%. President and CEO Greg Wasson commented on the results, saying, “We are pleased with our very solid performance in the third quarter as we were able to meet our financial goal of double-digit growth in earnings per share. Our business strategies resulted in strong quarterly sales and increased cash flow.” Walgreens’ shares were down over 4% in trading today.

11) Barnes and Noble Inc. (NYSE:BKS): reported its results for the fourth quarter today. The booksellers’ losses widened to $59.4 million ($1.04/diluted share) from $32 million (loss of 58 cents/share) in the same quarter a year earlier, despite revenues that rose 4% to $1.37 billion YoY. The company fell short of the mean analyst estimate of a loss of 91 cents/share. Estimates ranged from a loss of 67 cents per share to a loss of $1.09 per share. Analysts were expecting revenue of $1.39 billion. BKS shares were hammered in trading today, closing down nearly 6%.

12) Carnival Corporation (NYSE:CCL): The cruise and vacation company operating leisure cruise ships reported results for the second quarter today, beating the mean analyst estimate of 23 cents/share. Estimates ranged from 19 cents per share to 24 cents per share. It beat the average revenue estimate of $3.52 billion. Net income for the cruise line fell to $206 million or 26 cents per diluted share from $252 million or 32 cents per diluted share in the year earlier quarter. A drop of 18.3% YoY. Chairman and CEO Micky Arison spoke on the company’s most recent quarter, saying, “Our North America brands’ revenue yields increased three percent in the second quarter while yields for our Europe, Australia and Asia brands were up slightly (constant dollars), having been affected by the geo-political events which unfolded in the Middle East and North Africa, as well as the earthquake and nuclear disaster in Japan. The revenue yield improvement was more than offset by higher fuel prices which cost the company approximately $150 million, or $0.19 per share.” CCL shares ended the day up over 4.2%.

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