Earnings Release – 07 Feb 2014

Vetted & Compiled by Raqueem Khan
Edited by Vani Rao

Cummins betters Q4 earnings, revenue outpaces expectations

Cummins Inc.’s (NYSE:CMI) fourth-quarter net revenue improved 7% to $4.6 billion from $4.3 billion in the year-ago period. The company reported net profit of $432 million, or $2.32 per share, compared to $404 million, or $2.14 a share, in the year-ago quarter. Analysts at Wall Street expected net earnings of $1.98 a share on revenue of $4.2 billion. Strong engine sales in North America, Europe, and China offset the company’s declining revenues from the emerging nations. The company offered a weak outlook for FY2014 and expects earnings before interest and tax (EBIT) to be in the range of 12.75% to 13.25% of sales and revenue growth in the range of 4-8%. The company’s expected EPS of $8.50 per share underperforms the consensus estimate of $9.23 per share.

Perrigo reports second-quarter losses post Elan acquisition

Perrigo Co. (NYSE:PRGO) reported second-quarter FY2014 GAAP losses of $86 million, or 87 cents a share, hit by the Elan acquisition expenses. The company reported an 11% rise in net sales to $979 million, which was below market expectations of $997 million. The drug maker’s second-quarter net adjusted earnings stood at $1.87 a share, above $1.36 in the prior-year and analysts’ consensus estimate of $1.59 a share. The company raised its full year earnings outlook to $6.45-6.70 per share from the earlier level of $6.35-6.60 per share. The company’s shares closed the day 4.43% lower at $146.49 on Thursday, 6 February 2014.

Teradata reports improved fourth-quarter revenue and earnings, tops expectations

Teradata Corp. (NYSE:TDC) posted fourth-quarter revenue of $769.0 million, up 3.9%, from $740 billion in the prior-year quarter. Teradata reported net income of $144 million, or $0.88 per diluted share, up from $135 million, or $0.79 per share, in the year-ago quarter. The analysts were expecting earnings of $0.85 per share on revenue of $743.45 million. The company affirmed its FY2014 outlook with EPS in the range of $2.85-3.00 on revenue of $2.77-2.88 billion.

Genpact’s revenue up 10%, profits above expectations

Genpact Ltd.’s (NYSE: G) fourth-quarter FY2013 revenue stood at $558.5 million, up 10.0% from $507.7 million in the year-ago quarter. The company reported net income attributable to shareholders of $48.8 million, or 21 cents per share, compared to $53.4 million, or 23 cents per share in the year-ago quarter. Genpact’s fourth-quarter revenue and net earnings outperformed analysts’ expectations of $549.7 million and $47.63 million, or 20 cents per share, respectively. The company’s net margin fell 180 basis points to 8.7% from 10.5% in the prior-year quarter. NV Tyagarajan, CEO Genpact, announced a cautious revenue guidance of $2.22-2.26 billion and operating income margin of 15.0-15.5% for FY2014.

AOL’s revenue and sales rises on strong advertising revenue, but EPS misses estimates

AOL Inc.’s (NYSE:AOL) revenue for Q4 rose 13% to $679 million, bettering analyst estimates of $655.9 million. The company’s revenue was boosted by robust advertising revenue, which surged 23% to $507 million during the quarter. AOL reported earnings of $36 million, or 43 cents per share, up 1% from $35.7 million, or 41 cents per share in the year-ago quarter, but falling short of analyst estimates of 47 cents per share. Tim Amstrong, CEO, termed 2013 as the company’s most successful year in the last decade. Going forward, the New York-based internet company is expecting operating income before depreciation and amortization (OIBDA) of $500 million for the full-year 2014. Following the results, AOL’s shares hit a new 52-week high of $51.35 on Thursday, 6 February 2014, before reversing its gains to close the day 0.88% lower at $47.15.

General Motors’ profit declines on sluggish international operations

General Motors Co. (NYSE:GM) reported a 13% decline in its fourth-quarter profit; its profit before dividends stood at $1.04 billion, compared to $1.19 billion in the comparable period last year. The profit decline was mainly attributed to its sluggish international operation units, which dropped by 69% to $208 million. Moreover, costs relating to plant closures also affected profitability. Excluding special charges, GM reported EPS of 67 cents per share, underperforming analyst EPS estimate of 88 cents. On the other hand, the company’s net income, after dividends for the fourth-quarter, increased to $913 million from $892 million in the year-ago period. As a strategy to consolidate its international operations, the Detroit-based automaker has decided to close its Chevrolet operations in Europe and will spend $1.1 billion to fix its international operations outside of China.

Kellogg reports profits in Q4 2013, revenue edges slightly lower

Kellogg Company (NYSE:K) returned to the black in Q4 2013 after reporting earnings of $818 million, or $2.24 a share, offsetting losses of $32 million, or 9 cents a share, in the prior-year quarter. Excluding the benefits and other items, the company reported an EPS of 83 cents, beating analysts’ estimates by a penny. However, the company’s revenue dipped by 2% from $3.56 million to $3.50 million in the comparable period, slightly short of Wall Street estimates of $3.54 million. In its guidance for 2014, Kellogg is expecting its revenue to increase by 1% and EPS to rise by 1-3%. The shares of the company finished the day 0.64% higher at $57.74, on Thursday, February 6, 2014.

Philip Morris’ fourth-quarter results in line with expectations

Philip Morris International Inc. (NYSE:PM) reported fourth-quarter EPS of $1.37 on revenue of $7.8 billion compared to EPS of $1.24 on revenue of $7.89 billion in the year-ago quarter. The company’s results were in line with the Thomas Reuters consensus estimates for $1.37 EPS on revenue of $7.79 billion. The New York-based cigarette maker lost $708 million in the Q4 due to currency fluctuations. After discounting the same, the company’s revenues would have been up 2.5% for the full-year 2013. Going forward, Philip Morris forecasts EPS of $5.02-5.12 for the full-year 2014. The company is planning to spend $4 billion for share repurchases and forecasts costs savings of $300 million in FY2014.

Noble Energy’s Q4 profit hit by rising costs

Noble Energy Inc. (NYSE: NBL) fourth-quarter profit declined by 47% on account of increased drilling costs and hedging losses. The company’s cost on drilling, transportation, and storage of oil and gas in the fourth-quarter surged 22% compared to the year-ago period. Noble Energy’s net income fell to $134 million, or 37 cents a share, compared to $251 million, or 70 cents a share, in the year-ago period. Excluding hedging losses and one-time items, the company reported EPS of 50 cents per share, underperforming the Thomson Reuters analyst consensus by 10 cents. However, sales rose 16% to 293,000 barrels of oil equivalent per day, bettering the company’s expectations. The Houston-based company forecasted sales volume of 302-322 barrels of oil equivalent per day for FY2014. The company’s shares rose 2.56% on Thursday, 6 February 2014, closing the day at $62.61.

News to look forward to in the next 24 hours

Moody’s Corporation (NYSE:MCO) will report its fourth-quarter results on 7 February 2014. The company reported EPS of 83 cents and revenue of $706 million in the third quarter; analyst consensus has improved since the company’s positive results in Q3. Analysts are expecting Moody’s to outperform the market in Q4. Moody’s had declared a quarterly dividend of $0.28/per share on December 17, 2013, payable by March 10, 2014.

Cigna Corp. (NYSE:CI) reports its fourth-quarter and full year results before the opening bell on 7 February 2014. The company’s revenue rose 10% to $8.1 billion in the third-quarter. Cigna Corp. outperformed EPS estimates in Q3, reporting EPS of 1.89 as compared to consensus estimates of $1.62. In Q4, analysts are expecting an EPS of $1.48.

Laboratory Corp. of America Holdings (NYSE:LH) will release its fourth-quarter results before the opening bell on Friday, February 7, 2014. The company’s Q3 results were in line with the industry estimates. In Q3, the company had reported an EPS of $1.80 and revenue of $1.46 billion. Shares in Laboratory Corp. of America Holdings have been upgraded by analysts from a “Neutral” to “Buy” rating.

OFS Capital Corporation (NASDAQ:OFS) will announce its fourth quarter and year-end earnings data on Friday. The company recently approved a quarterly cash distribution of $0.34 per share, which will be paid on February 14, 2014 to shareholders on record as of January 31, 2014. In the third quarter, the company had reported revenue of $4.02 and EPS of 15 cents.

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