Wednesday, March 25, 2015

Deere & Company (DE) Earnings Analysis

Following the news that Warren Buffett has added to his stake in Deere & Company (NYSE:DE), it's highly likely that large numbers of Buffett followers will be excited to look at the company's first-quarter earnings. In short, there were more negatives than pluses, particularly on the headline numbers.



Let's take a closer look at the numbers and underlying trends from the first quarter.


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Friday, March 20, 2015

Honeywell International (HON) Return on Assets Analysis

Have you ever looked at an industrial conglomerate like Honeywell International (NYSE:HON) and settled on looking at segmental margin as the key indicator of each of its segments' prospects going forward? Or even decided that the company's investment and acquisition activity should be centered on the segment with the highest margin? If so, then you could be looking at things the wrong way. Arguably, the most important number to look at is segmental return on assets, or ROA. Let's take a look at why, and what the ROA numbers mean for Honeywell International.


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Morningstar Earnings Analysis

It's been a pretty good few years for the financial services industry, with rising equity markets and loosening credit markets creating favorable conditions for asset managers, brokerages, financial advisors, and the like. Therefore, it's no surprise to see financial information services provider Morningstar (NASDAQ:MORN) reporting increasing profits. When financial firms make money, they are more likely to purchase information services.



Still, Morningstar does need to execute within highly competitive markets. Here is a look at its recent fourth-quarter results, and an assessment of how it's performing.


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Monday, March 16, 2015

The Bullish Case for United Parcel Service (UPS)

After United Parcel Service  (NYSE: UPS  )  missed earnings estimates for two consecutive fourth quarters, investors would be entitled to feel a bit concerned about the company's direction. It's fair to say UPS' execution has not been what investors have hoped for, but that doesn't mean the stock isn't worth buying. On the contrary, there are many reasons to feel positive about the stock, and the recent dip could prove an excellent entry point. Let's look at the three key bullish arguments behind buying the stock.


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Saturday, March 14, 2015

Cognex Corporation (CGNX) Equity Research

Cognex Corporation (NASDAQ: CGNX  )  on Thursday gave earnings results after a trading session in which the stock spiked by nearly 6%. Clearly, investors anticipated a strong set of results, and Cognex delivered. Despite currency headwinds that reduced revenue growth by 4% year over year, the numbers came in easily ahead of internal guidance and analyst estimates. The machine vision technology manufacturer is firing on all cylinders, and management is gearing up for future growth. Let's take a closer look at the earnings report.


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Thursday, March 5, 2015

United Parcel Service (UPS) Management Wants You to Know...


Most investors in United Parcel Service (NYSE: UPS  )  already know about the company's difficulties in dealing with peak demand in the fourth quarter. UPS has now disappointed investors with holiday season operations for two consecutive years. In 2013, the company found itself with insufficient capacity to meet peak demand, then in 2014 it overcompensated and built out too much. This is clearly the issue analysts and investors are focusing on, so let's look at what management wants you to know about it.




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Emerson Electric Equity Research

One of the advantages of a diversified company like Emerson Electric (NYSE: EMR  )  is that weak growth in some parts of its business can be offset with stronger growth elsewhere. One of the disadvantages is that it's very difficult to avoid a weak area in the global economy.

In truth, the company is never going to see all of its businesses firing on all cylinders at the same time. In other words, investors should take a balanced approach when looking at its recent first-quarter results, so let's try to do that now.


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Sunday, March 1, 2015

BorgWarner (BWA) Equity Research

After BorgWarner Inc.  (NYSE: BWA  ) lowered its full-year earnings expectations when it reported third-quarter results last fall, investors in the automotive turbocharger and drivetrain manufacturer must have been apprehensive heading into its fourth-quarter earnings. However, the latest quarterly numbers were in line with expectations. Let's look at its earnings and outlook for 2015.


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Friday, February 27, 2015

McCormick & Company (MKC) Equity Research

McCormick & Company  (NYSE: MKC  ) delivered a good set of fourth-quarter earnings that came in slightly ahead of estimates. However, investors will be equally interested in management's guidance. Let's take a look at the underlying trends in the earnings report that came out Jan. 28 and management's outlook for 2015.


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Thursday, February 26, 2015

Dassault Systemes (DASTY) Equity Research

3D design software specialist Dassault Systemes  (NASDAQOTH: DASTY  ) surged by more than 10% after the company gave a strong set of results on Thursday. Given the weak environment in Europe, the market would have been entitled to be a bit concerned about its results -- after all, the company generated around 46% of its revenue in Europe in 2014 -- but its fourth-quarter earnings report was strong all around. Let's look at the numbers in more detail.


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Wednesday, February 25, 2015

Jones Lang LaSalle (JLL) Equity Research

Real estate services and investment management company Jones Lang LaSalle (NYSE: JLL  ) comfortably beat analyst estimates with its fourth-quarter results and signaled improving conditions within the commercial real estate market. The company offers a range of services across the industry, and as such, it's a useful barometer of global real estate conditions. So let's take a closer look at its earnings and see why the stock surged after results.


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Tuesday, February 24, 2015

What Went Wrong With United Parcel Service (UPS) Stock?

United Parcel Service (NYSE: UPS  ) investors already knew that the company's fourth-quarter earnings would fall short of previous expectations for EPS of $1.47-- the company gave preliminary figures on Jan. 23. At that time, management shocked the market by predicting its adjusted diluted EPS for the fourth quarter would come in at $1.25. The figure duly came in as expected with the release of its results today.



With that said, investors will be wondering just how UPS managed to disappoint for the second holiday season in a row. In addition, what is the company doing to address its issues?


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Monday, February 23, 2015

Danaher Corporation (DHR) Equity Research

It's hard not to like diversified industrial Danaher Corporation (NYSE: DHR  ) . Its management tends to underpromise and overdeliver on earnings, which is usually a good thing for investors. Meanwhile, its model of reinvesting cash flow to make earnings-enhancing acquisitions continues to serve investors handsomely. If you are looking for a solidly growing company, on attractive valuation, then Danaher might fit the bill. The recent fourth-quarter results confirmed many of these themes, so let's take a look.


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Sunday, February 22, 2015

Robert Half International Earnings Analysis

The world's largest specialized staffing company, Robert Half International  (NYSE: RHI  ) , delivered a broadly positive set of fourth-quarter earnings on Thursday. In addition, management's commentary alluded to a tangible and positive shift in employment conditions. particularly in the U.S. As such, the company has entered the year in good shape, and the recent results contained many useful indicators of what its end markets could be like in 2015. Let's take a look at them in more detail.


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Saturday, February 21, 2015

Check Point Software (CHKP) Equity Research

In a nutshell, Network security company Check Point Software (NASDAQ: CHKP  ) pleased the market delivering results at the top end of expectations. In doing so, it also announced its intent to increase investment in order to accelerate future revenue growth. Of course, more investment usually results in companies suffering an initial drag on earnings before generating higher profits down the line. Indeed, company guidance indicates this dynamic at play in 2015. Let's take a closer look at the results.


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Johnson Controls Earnings Call

Johnson Controls (NYSE: JCI  ) delivered an impressive set of first-quarter results last week, and investors must be feeling pretty good about the company's prospects in 2015. Indeed, Wall Street consensus for EPS growth is 13.2% in 2015, followed by 14.1% in 2016, even while revenue is expected to decline slightly in the period. In a nutshell, the investment case for Johnson Controls is based on its ability to restructure the company and generate margin expansion. In this context, let's look at five key takeaways from the recent earnings call, and see how management intends to generate growth. Is there more upside to come?


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Thursday, February 19, 2015

Mario Gabelli and David Einhorn are Buying Chemtura Stock, Should You Follow?

When legendary investor Mario Gabelli and highly rated hedge fund manager David Einhorn both take large positions in a small-cap stock, it's usually time to take notice. Specialty chemicals producer Chemtura  (NYSE: CHMT  )  isn't the most glamorous company, but that has not stopped investment firms from buying the stock. According to a recent 13D filing, Gabelli's investment firms own nearly 12.2% of shares outstanding in Chemtura -- worth about $205 million as I write. Meanwhile, the most recent 13F filing from Einhorn's Greenlight Capital shows the investment firm holding 3,950,000 shares, currently worth about $90 million. What's behind the interest in this stock?


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Wednesday, February 18, 2015

Deere & Company Estimates

Investors in farming machinery giant Deere & Company (NYSE: DE  ) will be interested in the latest crop production and price forecasts from the United States Department of Agriculture. Let's dig into the numbers from the USDA crop production report and, in doing so, compare its forecasts with Deere & Company's expectations. Might Deere's guidance for 2015 have been conservative?


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Tuesday, February 17, 2015

Polycom (PLCM) Earnings Analysis

It's hard to know how the market will respond to the latest set of earnings from video-conferencing specialist Polycom (NASDAQ: PLCM  ) . Simply looking at the headline numbers isn't the best way to look at its fourth-quarter earnings, so let's dig into the details.


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Johnson Controls (JCI) Earnings Analysis

Johnson Controls (NYSE: JCI  ) pleased the market by reporting first-quarter results Thursday that beat analyst estimates. Furthermore, management reaffirmed the full-year guidance given at its investor day presentation in December. The company remains in transformational mode, and its earnings confirm many of its underlying positive trends. Let's take a look at them.


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