Earnings Release – 13 Feb 2014

Verified by Joma Jose
Edited by Vani Rao

CBS posts strong Q4 results, outpaces Wall Street expectations

CBS Corp.’s (NYSE:CBS) fourth-quarter revenue rose 6% to $3.91 billion, boosted by a 28% increase in content licensing and distribution revenue. Net income rose to $470 million, or 76 cents a share, from $393 million, or 60 cents a share, from the year-ago quarter. The company’s adjusted diluted EPS surged 22% to 78 cents from the year ago period, above the Thomson Reuters analysts’ consensus of 76 cents. Moreover, the media company’s operating income increased 9% to $793 million during the quarter under review. CBS, the highest-rated US broadcast network in terms of overall viewership, made an announcement of an accelerated share repurchase of $1.5 billion during the first quarter. Leslie Moonves, CEO of CBS Corp., offered a positive outlook for FY2014, expecting revenue from subscription video on-demand services, like Netflix and Hulu Plus, to rise in 2014 compared to 2013.

Deere & Company’s Q1 earnings boosted by robust equipment sales

Deere & Company’s (NYSE:DE) first-quarter FY2014 net income increased to $681 million, a 4.8% year-over-year rise, primarily fuelled by robust sales of construction and agricultural equipment. The company reported quarterly EPS of $1.81, compared with $1.65 in the year-ago quarter, and above market expectations of $1.53. Deere & Company reported a 3% rise in its revenue to $7.7 billion as compared to year-ago quarter, led by strong sales in the US and Canada. The company’s equipment sales in the first-quarter increased 2% to $6.9 billion from the year-ago levels. However, for FY2014, Deere & Company projects its overall sales to drop by 3% as the anticipated decline in farm income is expected to reduce the demand for heavy agricultural equipment like tractors and turbines. On the other hand, the company offered a positive outlook for its Construction and Forestry business as the construction market in the US and Canada is gathering pace. Deere & Company is anticipating worldwide sales of its construction and forestry equipment to increase by about 10% in 2014.

Lorillard Q4 EPS rises, but falls short of expectations

Lorillard Inc. (NYSE:LO) reported a 4% increase in fourth-quarter EPS to 82 cents, but missing consensus estimates of 86 cents. The company’s unit volume fell by 1.6% from the year-ago levels in the US and Puerto Rico. However, the company reported a marginal improvement of 2% in its sales to $1.74 billion from the prior year quarter, as sales of the company’s premium cigarette brands helped to offset for dropping volumes. Lorillard’s market share increased for 11th year in a row to 14.9%, largely due to the company’s Newport and Blue Cigs e-cigarette brand, with the later accounting for a 48% market share in the fourth quarter. Despite missing expectations in Q4, analysts are forecasting a 15% EPS growth in the next quarter and in FY2014. Following the announcement of results, Lorillard Inc.’s stock finished 4.96% lower on Wednesday, 12 February 2014, closing the day at $47.47.

NetApp’s Q3 profit rises 21%, outlook for FY 2014 disappoints

NetApp Inc.’s (NASDAQ:NTAP) third-quarter 2014 profit rose 21%, driven by sales of flash and cloud-based technology products. The company earned $192 million, or 55 cents a share, on sales of $1.61 billion, compared with earnings of $158 million, or 43 cents a share, on $1.63 billion in sales in the year-ago quarter. Excluding one-time items, NetApp earned 75 cents a share. Analysts had forecast the company to earn 71 cents a share on $1.63 billion in revenue. Going forward, in the fourth-quarter, excluding one-time items, NetApp projects earnings of 77-82 cents a share, on revenue of $1.62-1.72 billion. Analysts had forecast the company to earn 80 cents a share on $1.73 billion in sales for the fourth quarter. According to Nick Noviello, CEO NetApp, the forecast was on the conservative side due to a tough business environment, mostly due to expectations that spending by the Federal government on storage technologies is going to be trimmed in FY2014.

Dr Pepper Snapple’s Q4 revenues down, earnings beat expectations

Dr Pepper Snapple Group Inc. (NYSE:DPS) reported a 1.4% decline in net sales in the fourth quarter of FY2014 to $1.46 billion from $1.48 billion in the year-ago quarter. The company’s core earnings of 97 cents per share bettered the net earnings of 82 cents in the prior-year quarter. Analysts were expecting an EPS of 84 cents on net revenue of $1.47 billion. Dr Pepper Snapple Group issued FY2014 EPS guidance of $3.38-3.46 per share on revenue of $6.00-6.06 billion. The company expects to buy back $375-400 million worth of its common stock in FY2014.

Thomson Reuters reports losses on restructuring costs

Thomson Reuters Corp. (NYSE: TRI) reported deeper-than-expected fourth-quarter loss as the news and data provider suffered higher restructuring costs and declining revenue. The company reported losses of $351 million, or 43 cents a share, compared with a profit of $352 million, or 42 cents a share, a year earlier. Excluding one-time items, the company earned 49 cents a share, lesser than analyst forecasts of 52 cents. Revenue fell 2.6% to $3.28 billion, in line with Wall Street’s expectations. Following the earnings release of the New York-based company, its shares fell 3.01% to $35.50 in pre-market trading on Wednesday, 12 February 2014. The company has an optimistic outlook for FY2014, as the global economic scenario is improving. The company expects to generate net revenue of $12.7 billion in FY2014.

Cisco announces weak Q4 earnings, outperforms expectations

Cisco Systems Inc.’s (NASDAQ:CSCO) revenues fell to $11.2 billion in the second quarter FY2014 from $12.1 billion in the year-ago period. The company reported net earnings of $2.5 billion, or 47 cents per share, compared to $2.7 billion, or 51 cents per share, in the year-ago period. Analysts at Wall Street were expecting an EPS of 46 cents per share on net revenue of $11.03 billion. CEO John Chambers assured investors of a strong financial position and solid strategy to manoeuvre through the rest of the financial year. The company announced 12% year-over-year hike in the quarterly dividends to 19 cents, to be paid to all shareholders on record as on April 3, 2014.

MetLife Q4 profits up nine fold as claims shrink and derivative loss narrows

MetLife Inc. (NYSE: MET) reported a nine-fold jump in net profit for the fourth quarter FY2013 to $877 million, or 77 cents per share, compared to $96 million, or 9 cents per share, in the year-ago quarter. The company’s operating earning stood at $1.56 billion, or $1.37 per share, slightly above analysts’ expectations of $1.30 per share. The company reported revenues of $18.38 million, above market consensus of $17.52 billion. The company attributed stellar Q4 results to reduced claims and narrowing derivative losses. MetLife reported an 11% improvement in its annual operating earnings to $6.3 billion from $5.7 billion in the prior year quarter.

PC gaming chip sales boosts NVIDIA’s Q4 results

NVIDIA Corporation’s (NASDAQ:NVDA) revenue from PC gaming chip segment grew 14%, boosting the Q4 FY2013 results. The company said its net sales for the quarter rose 3.3% year-over-year to $1.14 billion, topping the analyst estimates of $1.05 billion. NVIDIA’s Q4 earnings stood at 32 cents a share, well above the market consensus estimate of 24 cents. Maintaining a positive outlook for 2014, President and CEO Jen-Hsun Huang projected revenue for Q1 FY2014 of $1.05 billion with GAAP and non-GAAP gross margin of 54.2% and 54.5%, respectively.

NVIDIA Corporation’s (NASDAQ:NVDA) revenue from PC gaming chip segment grew 14%, boosting the Q4 FY2013 results. The company said its net sales for the quarter rose 3.3% year-over-year to $1.14 billion, topping the analyst estimates of $1.05 billion. NVIDIA’s Q4 earnings stood at 32 cents a share, well above the market consensus estimate of 24 cents. Maintaining a positive outlook for 2014, President and CEO Jen-Hsun Huang projected revenue for Q1 FY2014 of $1.05 billion with GAAP and non-GAAP gross margin of 54.2% and 54.5%, respectively.

Forthcoming Earning Releases

Agilent Technologies Inc. (NYSE:A) will report its Q1 2014 earnings after market hours on February 13, 2014. The company expects revenues in the range of $1.68-1.70 billion and EPS of 65 cents to 67 cents. Agilent’s fourth-quarter EPS of 81 cents outperformed the industry estimates by 5 cents. Analysts are undecided about the company beating EPS estimates in Q1 2014.

Fast-food giant Burger King Worldwide Inc. (NYSE:BKW) is scheduled to release its Q4 2013 on Thursday, 13 February 2014. In the third quarter, the company showed comparable-sales growth of 0.9%, as restaurant count grew by 133 units. The company’s management increased the dividend payout from $0.06 to $0.07 during the last quarter.

The Goodyear Tire & Rubber Company (NASDAQ:GT) is expected to report fourth quarter 2013 financial results on Thursday, February 13, 2014. Goodyear reported EPS of 68 cents in the third quarter of 2013, which beat consensus estimates by 2 cents. In the previous quarter, the company was able to improve its North American operating income by 24% to $161 million, setting a third-quarter record.

PepsiCo Inc. (NYSE:PEP) will release its fourth-quarter results before the market bell on Thursday, 13 February 2014. The largest food beverage company in the US is likely to report EPS of $1.52 on $6.6 billion of revenue, as per Wall Street consensus estimates. PepsiCo Inc. has bettered Wall Street EPS forecasts in previous three quarters of 2013.

Kraft Foods Group Inc. (NASDAQ:KRFT) is scheduled to report its 2013 fourth quarter and full-year earnings on February 13, 2014. The company’s earnings growth could be primarily driven by higher operating margins. Kraft Foods Group Inc. manufactures and markets packaged food products and derives most of its sales from the US and Canada. The company has guided for diluted EPS target of $3.58 for 2013.

Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT), the one of the largest world’s largest hotel companies, will announce its fourth quarter and year-end earnings data on February 13, 2014. The global economic scenario and falling occupancy rate is impacting revenues of major luxury hotel chains. Analysts are expecting a flat revenue growth for the quarter.

American International Group Inc. (NYSE:AIG) will release its fourth-quarter results on Thursday, 13 February 2014. The global insurance company had reported a 17% year-over-year rise in net income in Q3 FY 2013. The strong dollar index could hurt Q4 revenues, as 30% of its revenue is derived from the Asia Pacific region. However, analysts are positive on the company’s fourth-quarter and annual results.

Ingram Micro Inc. (NYSE:IM) is scheduled to report its latest quarterly results after the closing bell on Thursday, 13 February 2014. The company’s investment in the IT division and hunt for high-margin market is likely to improve the fourth quarter earnings. In the last quarter, the company had reported a 1.92% positive surprise and analysts are positive about the fourth quarter and annual earnings release.

Manulife Financial Corporation (NYSE:MFC) will announce its fourth quarter and year-end earnings data on Thursday, 13 February 2014, after the market opens. In the third quarter, the company reported a record $575 billion funds under management, which resulted in a 24% rise in the core earnings. Industry experts are expecting another strong quarter from the insurance giant after strong peer performance.

Discovery Communications Inc. (NASDAQ:DISCA) will release its fourth-quarter earnings before the opening bell on Thursday, 13 February 2014. The non-fiction TV content developer had reported a 9.59% positive earnings surprise in the third quarter of 2013.

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