3 More Large-Cap Stocks to Review Following Earnings (MET, TYC & XOM)
After today, earnings season will be almost halfway complete, in terms of the total number of public U.S. companies reporting quarterly earnings. So far, the majority of companies reporting are beating estimates (70+%). Here are 3 more large-cap companies, one a Dow component, that reported earnings today:
MetLife (MET): Shocking Analysts with a Big Surprise
Earnings: Q2 profits of $1.84 vs. $1.00 consensus and net loss of $1.74 in Q2 last year, huge rise in profits Year-over Year.
Revenue: Increased 7% Year-over-Year at $13.5 Billion vs. $13.05 Billion consensus, breezing by expectations.
C. Robert Henrikson, Chairman, President & CEO of MetLife (MET) stated, “We achieved top line growth and increased operating earnings by 41% over the prior year period.”
Comment: Shares of MetLife (MET) are trading up following the company’s earnings release after-the-bell, trading at $41.39 per share, compared to today’s closing price of $40.20 per share.
In the chart above, MetLife (MET) shares are breaking away from the all important 50-day and 200-day moving price averages to the upside after today’s earnings report. The next test for MET shares will be $42, as it was a prior level of resistance multiple times. The life insurance company proved they are turning around the ship today with a very solid report that beat analyst profit estimates by 84%. Did Meredith Whitney catch wind of this report? MetLife’s 42,000 employees need to pat themselves on the back today for a job well-done on pulling the company out of one of the greatest black holes called the Great Recession that our financial system has seen in history. I’ve noticed some insider buying in 2010, and with a 1.9% annual dividend, support could firm up at current price levels.
Tyco (TYCO): A Turnaround Story
Earnings: Q2 profits of $.51 vs. $.64 consensus and $.60 in Q2 last year. As a result, profits were down Year-over-Year.
Revenue: Increased 0.3% Year-over-Year at $4.3 Billion vs. $4.33 Billion consensus, slightly under expectations but higher than the same period last year.
Ed Breen, Tyco Chairman and CEO said, “Our results for the quarter reflect the continued strength of our recurring and service revenue base, improving order trends and operating margin improvement across all of our business segments.” These comments are a positively stark contrast to last year’s depths of the Great Recession.
Comment: Shares of Tyco (TYC) are trading up 1% following the company’s earnings release this morning, closing the trading day $36.97. Investors see the integrations of Broadview Security as good for Tyco’s future, as well as separation and spin-off of other non-core business unrelated to security.
Based on Tyco’s technical chart above, shares closed above the 50-day and 200-day moving price averages today. Tyco’s share price is in a very tight range right now between $35-$38. As the company continues to deliver a 2.4% annual dividend and buyback company stock, it appears firm support is forming at these current price levels for a higher possibility of a gradual wave up into the second half of this year. Everyone is complaining about jobs, and Tyco is one of those companies that has the power to hire big. They already employ 106,000 people. As they receive big pay days for units they are selling to private equity shops and other companies, they can utilize the cash to re-invest back into their core business model. With a cleaner and leaner machine emerging down the road, Tyco is one company to watch pull itself out of the mud of the jobless recovery with the confidence to create jobs soon…We’ll have to stay tuned on Tyco’s developing story.
Exxon-Mobil (XOM): The Energy Goliath
Earnings: Q2 profits of $1.60 vs. $1.47 consensus and $.81 in Q2 last year. According to the AP, Exxon-Mobil (XOM) delivered its highest quarterly profit since the $7.82 billion earned in the last quarter of 2008.
Revenue: Increased 24% Year-over-Year at $92.59 Billion vs. $98.49 Billion consensus, missing a rather lofty analyst consensus expectation.
David Rosenthal, head of Exxon-Mobil Investor Relations, said “You are starting to see, I think some of the benefits of having a very diverse portfolio. We don’t have any one footprint more than the others across the world. So, slight delay in the Gulf of Mexico, but progressing full speed ahead in the rest of the world.”
Comment: Shares of Exxon-Mobil (XOM) were up at the bell, then faded the remainder of the trading day. The company’s shares closed the day at $60.34.
In the chart above, Exxon-Mobil (XOM) shares are trading above the 50-day moving price average, yet below the 200-day moving price average. On the heels of BP’s $17 Billion dollar reported loss, XOM is not wasting any time attempting to seize market share and rein the victor of energy brand image. During the quarter, Exxon completed the acquisition of natural gas producer XTO Energy. The deal, valued at $29 billion, immediately makes Exxon the largest natural gas company in the U.S. XOM was one of Business Insider’s 12 Stocks Ready to Run after BP Plugged the Leak.mpanyAs dose of confidence in the share price on June 25th, Insider Jack Williams 66,697 shares of XOM stock. With a 2.9% annual dividend and a massive natural gas integration coming into play for XOM, the conservative investor may find it prudent to start nibbling for the energy allocation of their portfolio.
Disclosure: No positions in the stocks mentioned.