Over 30% of the companies reporting this earnings season have missed on revenue expectations, just about the same percentage of companies that reported for all of the first quarter this year. It’s important to look at both top-line (i.e. revenues) and bottom-line (i.e. earnings) during your earnings season assessment.
On the other side of the coin, only 20% of companies so far have missed earnings expectations. As a fluctuating environment plays out, here are two positive company stories from this morning:
UnitedHealth Group Inc. (UNH):
Earnings: Q2 profits of $.99 vs. $.75 consensus and $.73 in Q2 last year.
Revenue: Increased 7% Year-over-Year at $23.26 Billion vs. $22.97 Billion consensus.
Raised Guidance: Analysts from FactSet were expecting full-year profits of $3.34 per share and UNH executives confidently upped their guidance to between $3.40-$3.60 per share for the full-year.
Comment: Shares of UnitedHealth (NYSE: UNH) are down around 1% following the company’s earnings release, trading at $30.59 per share.
As you can see above, UNH shares are trading above both its 200-day and 50-day price moving averages, a very healthy sign of technical support for the current share price. Today’s report was strong, with a view of better-than-expected guidance for the full-year. If UNH shares can clear the recent double top formation around $31.80, we could see an upside breakout on the company delivering better numbers going forward. Remain nimble if you are looking to enter a position soon.
Whirlpool Corp. (WHR): Cautious Optimism
Revenue: Increased 8.8% Year-over-Year at $4.53 Billion vs. $4.48 Billion consensus.
Raised Guidance: Whirlpool now expects to deliver between $9-9.50 per share in profits compared to a previous estimate of between $8-8.50 per share.
Chairman and CEO Jeff M. Fettig said, “We expect the global economic environment will remain fragile, although we do expect demand to be positive, albeit at a slower rate than the first half of the year.”
Comment: Shares of Whirlpool (NYSE: WHR) sold off around 2% today following the company’s earnings release, trading at $88.60.
After today’s earnings report, WHR is trading above its 200-day price moving average, but below its 50-day price moving average. With such a strong report out of WHR today, look for a cautious uptrend to possibly form based on the upside profit guidance for 2010. If Whirlpool can break back above $90 per share in the near-term, the company might add some upside safety to your portfolio with a roughly 2% dividend too.
The Wall St. Cheat Sheet Premium Newsletter has delivered 15 out of 16 winning picks since inception in November 2008. Let the Hoffman Brothers give you their best investing and trading ideas: click here now for your free trial.
Disclosure: No holdings in UNH or WHR.