Earnings Release – 06 Feb 2014

Vetted & Compiled by Raqueem Khan
Edited by Vani Rao

Cognizant Technology fourth quarter earnings rises, meets expectations

Cognizant Technology Solutions Corp.’s (NASDAQ:CTSH) fourth-quarter revenue improved 21% year-over-year to $2.35 billion. The company reported net earnings of $324.3 million, or $1.06 per share, compared to $278.8 million, or $0.92 per share, in the year-ago quarter. Analysts at Wall Street were expecting net earnings of $1.06 per share on revenue of $2.36 billion. Cognizant Technology expects net earnings for the forthcoming quarter to improve 26 cents from $0.93 in the year-ago quarter to $1.18 per share, exceeding analysts’ consensus of $1.10. The company is hopeful of a 20% year-over-year growth in its Q1’14 revenue to $2.42 billion, more than analysts’ expectations of $2.41 billion. Cognizant has announced a two-for-one stock split in its Class A common stock as 100% stock dividend for shareholders as on February 21, 2014.

Non-trading businesses drives Nasdaq’s fourth-quarter earnings

The Nasdaq OMX Group Inc. (NASDAQ:NDAQ) reported a record fourth-quarter revenue of $520 million, up 23% from $422 million in the year-ago quarter. The company’s adjusted non-GAAP net earnings stood at $119 million, or 69 cents per share, compared to $108 million, or $0.64 per share in the year-ago period. Nasdaq OMX’s fourth-quarter revenue and net earnings tops analysts’ expectations of $513 million and 67 cents, respectively. The company attributed its improved fourth-quarter earnings to the recent acquisition of Thomson Reuters’s PR and its growing Multimedia businesses. The company reported a 5% year-over-year organic growth in fourth-quarter net revenue. The company aims to reduce debt to 2.5 times of EBITDA by mid- 2014.

Time Warner’s fourth-quarter profits down, revenue outperforms expectations

Time Warner Inc.’s (NYSE:TWX) fourth-quarter revenue rose to $8.56 billion, up 5% from $8.16 billion in the prior-year quarter. The company reported net income of $983 million, or $1.06 per share, down from $1.11 billion, or $1.15 per share, in the year-ago quarter. The analysts were expecting earnings of $1.15 per share on revenue of $8.39 billion. The company’s Turner Broadcasting and HBO business segments reported lower operating income due to a rise in programing expenses. In a parallel development, the company announced the divesture of its slow growing publishing unit “Time”, into new publicly traded company “Time Inc.” Time Warner declared quarterly dividend 31.75 cents, up 10% year-over-year. The company informed investors of new a $5-billion share repurchase program for FY2014. The company asserted an early double-digit EPS growth in FY2014 of about $4.25 per share.

Falling crude prices drags down Marathon’s top line

Marathon Oil Corp. (NYSE:MRO) reported a 22% decline in its fourth-quarter sales revenue to $3.29 billion from $4.24 billion in the prior-year period. The company posted adjusted net profit of 60 cents per share, compared to 55 cents a share, in the year-ago period. Analysts at Wall Street had estimated the company’s net profit at 76 cents per share. Sales volume fell 13% on a year-over-year basis and 3.3% on a sequential basis. Operating margins declined by 13% to 26.8% from 39.8% in the year-ago quarter. The company increased quarterly dividend by 12% to 19 cents per share.

Allergan’s revenue rises on strong pharmaceutical sales, outperforms estimates

Allergan Inc.’s (NYSE:AGN) revenue for Q4 rose 14% to $1.68 billion, bettering analyst estimates of $1.65 billion. The company’s revenue was boosted by strong sales of its specialized pharmaceutical products, which surged 14% during the quarter. Excluding special items, Allergan reported EPS of $1.35, up from $1.12 in Q4 2012, and topping company’s estimates of $1.31-1.33 per share. However, Allergan’s profit for Q4 fell to $312.9 million, or $1.04 per share, compared with $324.2 million, or $1.06 per share, in the year-ago period. The Ervine California-based company is expecting an EPS of $1.09-1.12 on revenue of $1.5-1.6 billion for the current quarter. Going forward, the company is forecasting EPS of $5.36-5.48 and net sales of $6.65-6.95 billion for the full-year 2014.

Disney strong Q1 results propelled by blockbuster hit ‘Frozen’

The Walt Disney Company (NYSE:DIS) reported strong first-quarter results, driven by the success of its blockbuster animated film ‘Frozen’ and the growth of its sports network ESPN. The company posted adjusted EPS of $1.04, easily surpassing Thomson Reuters’ estimate of $0.92 per share. Disney’s net income surged 33% to $1.8 billion in Q1. The company’s five major business units reported higher profits led by Disney’s movie studios. Disney’s ESPN network and Disney channels accounted for $1.5 billion of operating income, up 20% from the year-ago quarter. According to Disney Chief Executive Officer Bob Iger ‘Frozen’ can touch $1 billion globally as the movie has already collected $870 million worldwide. Following the strong Q1 results, the company’s shares gained 1.00% on Wednesday, 5 February 2014, closing the day at $71.76.

Merck’s profit down 14%; EPS slightly misses estimates

Merck & Co. Inc. (NYSE:MRK) reported lower-than-expected profit and revenue for the fourth quarter of FY2013. The company’s profit declined by 14%, as the drug maker was faced with stiff competition for its generic drugs. Moreover, Merck’s cost-cutting strategies were not sufficient to cover its restructuring costs. Revenue fell by 4% to $11.32 billion, below analysts’ estimates of $11.36 billion. Net income fell to $781 million, or 26 cents per share, from $908 million, or 30 cents, for the year-ago period. The company reported earnings of $2.6 million, or $0.88 per share, a penny short of Wall Street expectations. The New Jersey-based pharma giant is forecasting profit of $3.35-3.53 for FY2014. Merck will soon team up with three other drug makers to carry out experiments of its cancer treatment drug, MK-3475.

Ralph Lauren posts strong results on higher sales, raises outlook for 2014

Ralph Lauren Corp. (NYSE: RL) reported a 9.7% rise in third-quarter profit, boosted by strong sales in its Retail and Wholesale segments. The company’s profit increased to $237 million, or $2.57 a share, from $216 million, or $2.31 per share, bettering analysts’ estimates by 6 cents. Ralph Lauren’s surge in profits is attributed to the robust sales of its high-end luxury brands Polo and Club Monaco and the increasing demand from Australia, New Zealand, and Europe. Ralph Lauren offered a strong outlook for the forthcoming quarter and expects revenue growth of 10% to 12%. In FY2014, the company is optimistic to achieve the upper-limit of its projected revenue growth of 7%.

O’Reilly Automotive reports record-breaking Q4 revenue and earnings

O’Reilly Automotive Inc. (NASDAQ:ORLY) achieved record-breaking fourth-quarter results on Wednesday, 5 February 2014, driven by strong sales growth. The company’s sales grew 9% to $1.62 billion from $1.49 billion in the comparable period. Net income increased to $1.52 billion from $1.33 billion, representing an increase of 15%. O’Reilly Automotive’s diluted EPS surged 23% to $1.40 from $1.14 in the year-ago period. The company’s Q4 results have topped analysts’ expectations, who expected EPS of $1.32. Greg Henslee, President and CEO, credited the store sales increase of 5.4% for the record-breaking fourth-quarter results, which exceeded the company’s expectations. O’Reilly Automotive store sales have shown a growth trend for the past 21 consecutive years, ever since the company became public in April 1993.

Coming up in the next 24 hours

Cummins Inc. (NYSE:CMI) is scheduled to report its fourth-quarter and annual earnings on Thursday, 6 February 2014, before the market bell. With Paccar (NASDAQ:PCAR), one of the major clients of Cummins, reporting better-than-expected results, the global gas and diesel engines manufacturer may surprise the market.

Teradata Corporation (NYSE:TDC) will present its fourth-quarter and annual earnings report before market hours. The company’s revenues have increased in the last three quarters. Analysts are positive of the stock and expect the company to report a rise in its fourth quarter earnings.

LinkedIn Corporation (NYSE:LNKD) will announce its fourth quarter and year-end earnings data on Thursday, after the market closes. The company is expected to report higher profits, as analysts expect a growth in the company’s Premium Subscriptions and Talent Solutions business segments. The company had positively revised its full year revenue and earnings target during the previous quarter.

Perrigo Co. PLC (NYSE:PRGO) is expected to report improved second-quarter earnings post three continuous surprises in the previous three quarterly earnings releases. The company has affirmed its second-quarter earnings to be better than its earnings in the year-ago period. The company will report its first quarterly earnings post its merger with Elan Corp. in December 2013.

Genpact Ltd. (NYSE:G) will release its fourth-quarter earnings on Thursday, after the market hours. The company is expected to report better revenue as compared to the year-ago period, as the company addressed the needs of a large and unexplored market.

AOL Inc. (NYSE:AOL) will release its earnings data on Thursday, 6 February 2014. The company’s strategy to acquire adapt.tv has added to its video inventory and has helped the company to position itself as a media-technology company, where it competes with Yahoo and Google. As a result, analysts are expecting the company’s revenue to grow during the quarter. The company has bettered EPS expectations in one out of the last four quarters.

General Motors Company (NYSE: GM) will present its fourth quarter and annual earnings report before the market bell on Thursday, 6 February 2014. Despite the company’s declining sales in January 2014, where sales dropped by 12% compared to the year-ago period, analysts are expecting an 83% increase in profits, a 4% increase in revenue, and expect the company’s EPS to beat expectations.

Kellogg Company (NYSE:K) reports its fourth-quarter results before the opening bell on 6 February 2014. The company’s sales have declined during the past two quarters and the management is expecting lower sales in Q4 in the US and other developed markets.

Noble Energy Inc. (NYSE:NBL), a Houston-based oil and gas company, will announce its fourth-quarter and full-year 2013 results before the opening bell on Thursday, 6 February 2014. The company recently declared a cash dividend of 14 cents per share on 28 January 2014, payable on 24 February 2014.

Philip Morris International Inc. (NYSE:PM) will release its fourth-quarter results on Thursday, 6 February 2014. The cigarette maker is facing stiff competition from US tobacco giants Altaria Group (NYSE: MO) and Lorillard (NYSE: LO). Analysts have mixed expectations for the Q4 results and are expecting an EPS of $1.37. Overall, analysts have slashed their EPS estimates by 50 cents for FY2014.

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