Tuesday, November 21, 2017

Cognex Corporation Earnings Review

On the face of it, the record third-quarter earnings report from machine vision company Cognex (NASDAQ:CGNX) was little short of sensational. A combination of nearly 80% revenue growth and an around 90% increase in net income from continuing operations would normally be enough to thrill investors, but Cognex's management had already prepared them for a "monster" quarter.
In reality, the takeaways from the quarter are more nuanced than just the headline numbers, so let's take a closer look at them.

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Monday, November 20, 2017

Roper Technologies Earnings Review

Multi-industry industrial company Roper Technologies, Inc (NYSE:ROP)on Monday reported strong third-quarter earnings that helped illustrate the benefits of its asset-light business model and ongoing transition toward more software-based revenue streams. While the quarter wasn't without blemishes, the results reveal a company making strong progress following a difficult 2016.

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BorgWarner Earnings Review

The global auto market is slowing, but you wouldn't know it from the latest results from vehicle technology company BorgWarner, Inc (NYSE:BWA). The company has consistently demonstrated an ability to outgrow its end markets. As a consequence, its strong set of third-quarter results encouraged management to raise full-year guidance and left analysts wondering if BorgWarner's earnings growth could accelerate. Let's take a look at what happened in the third quarter.

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Tuesday, November 14, 2017

WESCO International Earnings Review

Despite having a tough year WESCO International, Inc. (NYSE:WCC) stock is only down single digits on the year so far. After a difficult first half, the supply chain solutions provider finally reported the kind of revenue growth commensurate with a strengthening industrial economy.
That said, the margin performance and earnings guidance may have disappointed some investors. Let's take a look at a mixed set of earnings for the company.

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What John Flannery Wants to Change at GE

General Electric Company (NYSE:GE) CEO John Flannery will outline his strategy for the company at the GE Investor Update event on Nov. 13. There's plenty of anticipation about the event from beleaguered investors hoping he can set the company, and the stock price, on the right path. While Flannery's exact plans will be outlined in a few weeks, his comments on the recent, and tumultuous, third-quarter earnings call offered a broad-based overview of what to expect.
So let's look at what was said and how it differs from Jeff Immelt's running of the company

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Sunday, November 12, 2017

Is Rockwell Automation a Buy?

Rockwell Automation (NYSE:ROK) is well known as a backdoor way to play growth in the industrial internet of things (IIOT). However, its 50% stock-price surge in the past year is probably more a matter of having its string of earnings upgrades come largely from improving capital spending trends in industrial automation.
The company heads into its fourth-quarter earnings on Nov. 8 with a lot of momentum, but given its high valuation on a current and forward basis, management probably needs to demonstrate its strong run can continue. In this context, let's look at the three things to focus on in the results presentations.

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Thursday, November 9, 2017

Dassault Systemes Earnings Analysis

Engineering design software company Dassault Systemes (NASDAQOTH:DASTY) reported a mixed set of third-quarter results. The underlying earnings are strong and the company is strategically setting itself up for long-term growth with its new licenses sales and exciting deals with large companies like Boeing and Scania. However, there was some near-term weakness in services revenue, and management was forced to lower full-year margin and earnings expectations due to adverse currency movements. Let's take a closer look at the quarter.

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Wednesday, November 8, 2017

Robert Half Earnings Review

Leading staffing company Robert Half International Inc. (NYSE:RHI) always gives good color on employment trends, and if its latest third-quarter results are anything to go by, the job market in the U.S. is definitely improving. Meanwhile, the company's international revenue growth remains strong. That said, there were still a couple of weak areas in the company's earnings report.

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Tuesday, November 7, 2017

General Electric Earnings Review: A Stock to Buy?

By now, most investors know that General Electric Company's (NYSE:GE) third-quarter earnings fell way short of expectations. Furthermore, the reduction in full-year guidance signals ongoing weakness in the overall business -- issues that are unlikely to be resolved in a quarter or two.
Let's look at the key issues that long-term investors need to understand from the earnings report.
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Caterpillar Earnings Preview

Caterpillar Inc. (NYSE:CAT) stock has soared in 2017, on the back of a string of consensus-busting earnings and analyst upgrades. The main reason has been its improving construction, mining, and energy industry verticals. Moreover, analysts have recently raised price targets for the stock in anticipation of a strong set of third-quarter earnings.
Clearly, the company has a lot of good momentum behind it, but can it continue? Let's preview the earnings report that comes out on Oct. 24 to see what investors need to keep an eye out for.

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3M Earnings Preview

Given that 3M Co (NYSE:MMM) and its fellow multi-industrial company Illinois Tool Works Inc. (NYSE:ITW) trade at a premium compared to earnings multiples in the last decade (see below) there will be increased pressure on both companies to deliver in the coming quarters. Focusing on 3M, let's take a look at the three things investors need to look out for when the company reports earnings on Oct 24th. 

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Monday, November 6, 2017

GE CFO Jeff Bornstein Leaving

The news that General Electric Company (NYSE:GE) CFO Jeff Bornstein will leave at the end of the year caught the market by surprise. But how much should investors really worry about the news? After all, Bornstein is an industry veteran with 28 years of service to GE, so his departure could be a completely natural move.  
However, I happen to think his departure could be something deserving close attention from investors. Here's why.

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Friday, November 3, 2017

Honeywell International Preview

It's been a good year so far for Honeywell International (NYSE:HON). The stock is up nearly 24% year to date, and management has raised the bottom end of its full-year earnings guidance range in the first two earnings reports.
In order to judge whether its good run can continue, let's preview the key things to look out for from each segment when Honeywell reports its third-quarter earnings on Oct. 20.

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United Technologies Earnings Preview

United Technologies Corporation (NYSE:UTX) reports its third-quarter earnings on Oct. 24, and there's a lot for investors in the company and the industrial sector at large to focus on. Here are the key things for investors to look out for in each of United Technologies' four segments.

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Wednesday, November 1, 2017

AZZ Inc Earnings Analysis

Having previously updated full-year 2018 guidance at the end of September, investors were already prepared for the negative news in AZZ Inc's (NYSE:AZZ) second-quarter results. Management gave a plethora of reasons why AZZ's performance is lagging expectations in fiscal 2018 and promptly guided investors toward thinking about a stronger 2019.

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Should I Buy FedEx Corporation Stock?

We've already considered the bearish case for FedEx Corporation (NYSE:FDX). The glass-half-empty viewpoint focuses on the margin pressures that the ground operations of both FedEx and rival United Parcel Service, Inc. (NYSE:UPS) face from growing e-commerce deliveries. Both companies are having to make substantial capital investments to service e-commerce growth, which is crimping free-cash-flow generation. FedEx also faces execution risks in integrating TNT Express.
Now let's consider...

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Tuesday, October 31, 2017

General Electric's Turbines Face Competition From Siemens

Power matters to General Electric Company (NYSE:GE). The segment generated more than 28% of industrial profit in 2016 and is GE's best-known activity, with gas turbines being its most important product. Indeed, GE's success with its market-leading H-class turbine has broken world records for efficiency and driven order growth at the segment. That said, there are reasons to believe GE might come under pressure in the future, and here's how and why it matters.

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Time to Sell FedEx Corporation Stock?

Given the 26% rise in FedEx Corporation (NYSE:FDX) stock in the last year, investors should reassess the value proposition of the stock. After all, as you can see below, FedEx has been trading at a higher valuation than where it was during most of the period since 2010, and it has had a cash outflow of $186 million in its fiscal year ending in May. In this article, I will focus particularly on the bear case against buying the stock and then follow up with the bull case in a future article.

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Monday, October 30, 2017

GE Sells a Business to ABB

The agreement by ABB Ltd. (NYSE:ABB) to buy the industrial solutions business of General Electric Co. (NYSE:GE) sheds new light onto the strategic plans of both companies, and arguably makes them more investable. Let's take a look at the deal and what it means for investors in both stocks.

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5 Takeaways From FedEx's Earnings

While the media's attention was firmly focused on the $300 million income hit from a cyberattack, FedEx Corporation's (NYSE:FDX) recent earnings presentations contained a whole lot more useful information for investors. Let's look at the five key takeaways from the earnings and how they might affect the investment thesis behind buying both FedEx and, by extension, United Parcel Service, Inc. (NYSE:UPS) stock.

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