Earning Release – 14 Feb 2014

Verified by Joma Jose
Edited by Vani Rao

Starwood profit drops, revenue miss estimates

Starwood Hotels & Resorts Worldwide Inc.’s (NYSE:HOT) fourth-quarter revenue fell 1.8% year-over-year to $1.51 billion, which is below the market consensus of $1.53 billion. The company reported net profit of $128 million, or 67 cents per share, compared with $142 million, or 72 cents per share, in the year-ago quarter. EPS from continuing operations stood at $0.73 per share, above Wall Street’s expectations of $0.70 per share. The Stamford, Connecticut-based company attributed the drop in fourth-quarter earnings to the tepid global business environment, exchange rates fluctuations, and the sale of six hotels. In its guidance for Q1 FY2014, the company is expecting EBITDA in the range of $260-270 million and EPS of $0.53-0.56 per share. CEO Frits van Paasschen is positive on FY2014 growth with strong signs of growth in the US and European hotel industry.

Discovery’s Q4’13 revenue at $1.54 billion, earnings outperforms consensus

Discovery Communications Inc. (NASDAQ:DISCA) reported encouraging results for the fourth quarter with net income of $289 million, or 81 cents per share, compared to $224 million, or 61 cents per share, in the year-ago period. Revenue was at $1.54 billion, up 28.1%, from $1.2 billion reported in the year-ago period. Excluding items, EPS was at 92 cents, compared with 61 cents in the year-ago period. Analysts were expecting adjusted earnings of 92 cents on revenue of $1.55 billion. Discovery’s International Networks revenue surged 64% to $758 million in the quarter under review. The company is expecting net income of $1.2-1.3 billion on $6.45-6.62 billion of revenue in FY2014. The company has approved an additional share repurchase program of $1.5 billion, raising the authorization to $5.5 billion.

AIG reports improved fourth-quarter earnings, outperforms Wall Street estimates

American International Group (NYSE:AIG) reported net income of $2 billion, or $1.34 per share, compared to loss of $4 billion, or loss of $2.68 per share. In Q4 FY2013, the company had to pay $1.3 billion towards the catastrophic loss from hurricane Sandy. AIG’s after-tax operating income stood at $1.7 billion, or $1.15 per share, compared to $290 million, or 20 cents per share, in the prior-year period. Wall Street was expecting fourth-quarter after-tax operating income at $0.96 per share. The company’s net premium revenue improved 3% to $8.03 billion, beating analysts’ consensus estimate of $7.96 billion. Robert Benmosche, AIG President and CEO, attributed the growth to improvements in the core insurance operations. The company declared a 25% dividend hike to 12.5 cents, payable to all shareholders as on March 11, 2014 and dividend date March 25, 2014. AIG will reduce its global workforce by 3% and has authorized the repurchase of additional $1.0 billion worth common stocks under its restructuring program.

Ingram’s sales at all-time high of $11.8 billion

Ingram Micro Inc. (NYSE: IM), the world’s largest wholesale technology distributor, recorded a 4% year-over-year sales growth to the all-time high of $11.8 billion. The company’s non-GAAP net income stood at $139.1 million, or 88 cents per share, compared to $115.2 million, or 75 cents per share, in the year-ago quarter. Analysts at Wall Street were expecting non-GAAP net income of 78 cents per share on revenue of $11.5 billion. The company generated total cash flow from operations of $353 million, compared to $81 million in the prior year comparable quarter. CEO Alain Monie expects a low double-digit decline in net revenues for Q1 FY2014 and low- to mid-single-digits revenue growth for FY2014. Analysts have projected a 9.5% revenue decline for the first-quarter FY 2014 and 3.5% revenue growth for the full year. On Thursday, February 13, 2014, the company’s shares gained 2.94% to end the day at $29.95.

Agilent Technologies Q1 profit rises, outlook conservative

Agilent Technologies Inc. (NYSE:A) reported first-quarter profit of $195 million, or 58 cents per share, compared with $179 million, or 51 cents per share, in the year-ago quarter. Excluding one-time items, the company earned 67 cents per share, while the company’s sales stood flat at $1.68 billion. Analysts were expecting earnings of 66 cents per share on sales of $1.69 billion. For FY2014, Agilent expects revenue in range of $6.9-7.1 billion with EPS of $2.96-3.16, compared to the company’s earlier revenue guidance of $6.95-7.15 billion, on EPS of $3.03-3.33. The company’s conservative outlook for full-year 2014 disappointed investors and industry experts. Agilent also plans to split into two separate companies – an electronic measurement company and a life sciences/diagnostics company, which is likely to occur in November 2014.

Burger King’s Q4 profit rises 37%, outperforms estimates

Burger King Worldwide Inc.’s (NYSE:BKW) Q4 profit surged 37%, as a result of lower expenses. In Q4, the company reported an 89% reduction in its restaurant expenses. The company reported earnings of $66.8 million, or 19 cents a share, up from $48.6 million, or 14 cents a share, from the year-ago period. Excluding one-time items, the company’s EPS stood at 24 cents, bettering analysts’ estimates by a penny. However, Burger King’s revenue for Q4 declined by 34% to $265.2 million, from the year-ago levels, falling short of Wall Street’s estimate of $270 million. Moreover, its global same-stores sales increased in Q4. Following strong fourth-quarter results, shares of the Miami-based company hit a new 52-week high of $26.24, before closing the day 1.06% higher at $25.75 on 13 February 2014.

Kraft Foods Group’s Q4 profit rises, but revenue falls short of expectations

Kraft Foods Group Inc.’s (NASDAQ:KRFT) fourth-quarter net earnings rose to $931 million, or $1.54 per share, up from $90 million, or 15 cents per share, from a year-ago quarter. The company’s profit surged mainly due to reduction in costs and a large accounting gain related to retiree benefits. The company successfully implemented some of the cost savings to boost marketing behind brands like Jell-O dessert and Planters peanuts. Earnings from the quarter included a $1.11 per share accounting gain due to higher discount rates and asset returns. Kraft’s net revenue grew 2.3% to $4.6 billion, boosted by an increase in sales volume and a greater proportion of higher-priced products. However, the company’s revenue narrowly missed the Wall Street forecasts of $4.63 billion.

PepsiCo Inc.’s Q4 EPS tops estimates, outlook for 2014 below Street’s expectations

PepsiCo Inc. (NYSE:PEP) reported fourth-quarter EPS of $1.05, which bettered the analysts’ EPS estimates of $1.01. The company’s revenue grew 0.8% to $20.12 billion, slightly missing industry estimates of $20.21 billion. Indra Nooyi, Chairman and CEO of PepsiCo Inc., maintained that the company achieved its financial goals for 2013, despite continued challenging and volatile macroeconomic conditions around the globe. PepsiCo Inc. also made an announcement that it will not spin off its North American beverage business, which has been witnessing a slump, with revenue down 2% in 2013. Looking forward, PepsiCo forecasts earnings of $4.50 for FY2014, which is well below Wall Street’s consensus forecast of $4.69. The company’s shares fell by 2.21% to $79.69, on Thursday, 13 February 2014.

Goodyear posts strong Q4 results, outperforms Wall Street expectations

The Goodyear Tire & Rubber Company (NASDAQ:GT) reported Q4 earnings of $228 million, or 84 cents per share, compared to a breakeven reported in the year-ago quarter. After one-time charges, Goodyear earned 74 cents, easily surpassing the Wall Street estimates of 65 cents. The company clocked net sales of $4.8 billion in the quarter, versus the Q4 prior-year figure of $5.0 billion. Goodyear marginally missed the revenue estimates of $4.95 billion. The company’s results were boosted by robust sales in North America, which grew by 7% in the fourth quarter, compared to the same period in 2012. In the quarter under review, Goodyear’s North American segment operating income surged 72% to $199 million. As guidance for 2014, the Akron-based company expects a 23% increase in its total volume. Following strong Q4 results, the company stock rallied 11.46% to close the day at $26.94, also hitting a 52-week high of $27.27, on Thursday, 13 February 2014.

Forthcoming Earning Releases

Ventas Inc. (NYSE:VTR) will release its fourth-quarter results before the market bell on Friday, 14 February 2014. The company’s Q3 2013 EPS of $1.04 beat the consensus estimates by 2 cents. Ventas had raised its outlook and projects the EPS range of $4.12-4.14, up from the prior range of $4.06-4.10.

DTE Energy Company (NYSE:DTE) is scheduled to report its 2013 fourth quarter and full-year earnings on 14 February 2014. The Detroit-based diversified energy company reported EPS of $1.13 in Q3 2013, which missed the consensus estimates. The company tightened its EPS guidance for 2013 to the range of $3.95-4.15 from the earlier forecast of $3.90-4.20.

Hyatt Hotels Corporation (NYSE:H), the one of the world’s largest hotel companies, will announce its fourth-quarter and year-end earnings results on February 14, 2014. In the third quarter, the company’s net income more than doubled. Hyatt earned 23 cents per share, which beat the analysts’ consensus by a penny. Analysts are expecting another strong performance from the Chicago-based company.

V.F. Corporation (NYSE:VFC) is scheduled to report its fourth-quarter and full-year 2013 earnings on February 14, 2014. V. F. Corp. reported strong third-quarter 2013 earnings, mainly driven by improved top line and margins. Further, the company provided an encouraging guidance for fiscal 2013. The company’s recently completed a 4:1 stock split, which has strengthened investor’s confidence in its stock.

TRW Automotive Holdings Corp. (NYSE:TRW) will release its fourth-quarter earnings on Friday, 14 February 2014. The world’s leading automotive supplier reported EPS of $1.52 in the previous quarter, which beat the industry estimates by 4 cents. Revenues for the full-year 2013 are expected to be $17.1 billion.

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