Earnings Release – 19 Feb 2014

Verified by Joma Jose
Edited by Vani Rao

Global woes drag down Coca-Cola’s top line and net earnings

The Coca-Cola Company (NYSE:KO) reported fourth-quarter net income of $1.7 billion, which fell by 6% from the year-ago quarter. The company reported adjusted EPS of 46 cents, in line with analysts’ consensus. Coca-Cola’s Q4 FY2013 revenues stood at $11 billion, down 4% from $11.45 billion in the year-ago and below Wall Street analysts’ consensus estimate of $11.3 billion. The global beverage company’s Q4 results were affected by adverse currency exchange rates and below expectations volume growth. The company reported annual net operating revenue of $46.9 billion, down from $48 billion in the year-ago period and short of analysts’ estimate of $47.2 billion. The FY2013 net earnings stood at $8.6 billion, or $1.90 per share, below Wall Street estimates of $2.00 per share. The company expects currency exchange rate headwind to continue for the upcoming quarter and FY2014. In FY2014, the company is planning to repurchase shares worth $2.5-3.0 billion.

Fluor reports fourth-quarter profits, revenue misses estimates

Fluor Corporation’s (NYSE:FLR) fourth-quarter revenues declined 10.4% year-over-year to $6.29 billion from the year-ago quarter, missing analysts’ consensus of $6.78 billion. The company reported net earnings of $167 million, or $1.01 per diluted share, in the reported quarter compared to a loss of $4 million in the year-ago period. The loss reported in Q4 FY2012 was as a result of adverse arbitration ruling on the completed offshore wind farm project. Analysts at Wall Street were expecting Q4’13 net earnings of $0.98 per share. Fluor Corporation has recently increased quarterly dividend from 16 cents to 21 cents, payable on April 2, 2014, to shareholders of record on March 4, 2014. The company has reaffirmed its FY2014 EPS of $4.10-4.60. Analysts are expecting Fluor’s EPS of $4.41.

Medtronic’s Q3 revenue above expectations; profit slips

Medtronic Inc. (NYSE:MDT) reported revenue of $4.16 billion for the Q3 of FY2014, up 3% from $4.03 billion in the comparable period, topping analysts’ estimates of $4.15 billion. Excluding items, the company earned 91 cents per share, also in line with estimates. However, the company’s profit declined to $762 million, or 75 cents per share, from $988 million, or 97 cents per share, in the year-ago period. CEO Omar Ishrak attributed the lower quarterly net profit to failed blood pressure-lowering device and poor demand for pacemakers and implantable cardioverter defibrillators, or ICDs. For the fiscal year ending March 31, 2014, Medtronic tapered the forecasted earnings per share to $3.81 to $3.83 from previous outlook of $3.80 to $3.85, and expects revenue to grow by 3-4%. Shares of Medtronic, the world’s largest stand-alone medical device maker, closed the day at $56.19, down 1.2% on February 18, 2014.

Waste Management revenue grows 1.9%; disappoints market

Waste Management Inc.’s (NYSE:WM) third-quarter FY2014 revenues inched 1.9% higher to $3.50 billion from $3.43 billion in the year-ago period. The company reported adjusted net income of $263 million, or $0.56 per diluted share, compared to $267 million, or $0.57 per diluted share, in the prior year quarter. Analysts at Wall Street had projected an EPS of $0.61 on revenue of $3.58 billion. David P. Steiner, President and Chief Executive Officer, expects solid earnings and cash flow in FY2014 driven by increased yield and continued cost controls. Further, the company expects its recycling business to remain flat in 2014. The company declared a 2.7% hike in quarterly dividend rate from 36.5 cents to 37.5 cents. Waste Management’s Board of Directors is authorized to repurchase shares worth $600 million in the upcoming quarters. Shares of the company slumped 4.47% to close at $41.72 on February 18, 2014.

CF Industries reports lower Q4 profit, but exceeds expectations

CF Industries Holdings Inc.’s (NYSE:CF) fourth-quarter net earnings fell to $325.8 million, or $5.71 per share, from $470.7 million, or $7.40 per share, in the year-ago quarter. The company’s Q4 revenue dipped 6.5% to $1.33 billion. Analysts at Thomson Reuters had expected $1.26 billion in revenue on EPS of $4.49. The company’s decline in profits is attributable to the fall in nitrogen prices in 2013 due to weaker demand in important agricultural regions and higher global supply. On the other hand, the company has offered a positive outlook for FY2014, boosted by significant improvement in global nitrogen prices since November 2013. The Deerfield, Illinois-based company is also expecting strong demand for ammonia in the first half of 2014, led by North America, assuming normal weather conditions.

Duke Energy’s Q4 profit rises 58%, boosted by lower operating expenses

Duke Energy Corporation (NYSE:DUK) reported a 58% surge in its fourth-quarter profit driven by rate increases and lower operating and maintenance expenses. Moreover, the company’s International Energy segment also saw profitable volumes and pricing in Brazil. The company’s Regulated Utilities segment reported a 22% increase in profits to $607 million from the year-ago levels. However, Duke Energy’s Q4 2013 revenues fell by 8.90% from year-ago quarter to $6.11 billion. Overall, Duke’s earnings rose to $688 million, or 97 cents per share, up from $435 million, or 62 cents per share, in the year-ago quarter. Excluding one-time charges, the company’s EPS increased from 70 cents in Q4 2012 to $1 per share in Q4 2013, outperforming Wall Street expectations by 5 cents. Looking forward, the largest power provider in the US, forecasts adjusted EPS of $4.45-4.60 for FY2014. Analysts’ expect the company’s EPS at $4.57.

Genuine Parts Company improves fourth-quarter earnings, outperforms estimates

Genuine Parts Company’s (NYSE:GPC) Q4 earnings improved 4.3% to 97 cents per share, compared with earnings of 93 cents, in the prior year quarter (including one-time pension gain of 10 cents per share). The company’s Q4 EPS has bettered the analysts’ consensus by 5 cents. Moreover, the company’s sales rose 13% to $3.5 billion in the fourth quarter of 2013, compared with sales of $3.1 billion in the year-ago period. Mr Gallagher, CEO, termed the fourth quarter as the strongest in terms of revenue growth. In the quarter under review, the company’s automotive sales were up 25%, including 7% underlying growth. Acquisitions contributed 10% to company’s sales growth. The company also declared a 7% hike in annual cash dividend in 2014 to $2.30 cents per share from the earlier $2.15. The quarterly dividend of 57.5 cents will be paid to stockholders of record as of March 7, 2014 on April 1, 2014. Following the announcement of results, the company’s stock recorded a new 52-week high of $90.00, before closing 1.70% higher at $87.41 on Tuesday, 18 February 2014.

Nabors Industries Q4 EPS rises, but operating profit declines

Bermuda-based drilling contractor Nabors Industries Ltd. (NYSE:NBR) posted fourth-quarter net income of $150.6 million, or 50 cents per share, compared with $27.1 million, or 9 cents per share, in the year-ago quarter. In Q4 of last year, the company had booked a huge loss on discontinued operations. The company’s revenue rose less than 1% to $1.6 billion, exceeding analysts’ forecast of $1.54 billion. However, Nabros’ income from continuing operations declined by 2% to $128.5 million, on account of weak operations in the US. Tony Petrello, CEO, highlighted that the completion & production services operations posted an improvement in what would usually be a seasonally weaker quarter. The company’s management foresee substantial year-over-year quarterly improvement, commencing in the second half of 2014. On Tuesday, February 18, 2014, the company’s shares rose 3.15% to end the day at $18.66, also hitting a new 52-week high of $18.72.

Upcoming Earning Releases

Marriott International (NASDAQ:MAR) is likely to post fourth-quarter results on Wednesday, 19 February 2014. Marriott, which owns brands such as Ritz-Carlton, Residence Inn, and Courtyard by Marriott, has been able to charge more for its rooms as hotel occupancies returned to their peak levels in 2013. However, a colder-than-usual winter that delayed travel in the US, along with continued softness in Asia, could dampen the current quarter’s performance.

Energy Transfer Partners L.P. (NYSE:ETP) is expected to post fourth-quarter results on Wednesday, 19 February 2014. The Dallas-based Energy Transfer Partners missed on estimates in the last quarter earnings releases, while it had surprised the market with stellar performance in Q4 FY2012.

Williams Partners L.P (NYSE:WPZ) is scheduled to report its 2013 fourth quarter and full-year earnings on 19 February 2014. The Detroit-based diversified energy company reported EPS of $0.52 in Q3 of 2013. The company’s revenue has been declining in the Trailing Twelve Months (TTM) due to lower natural gas liquids (NGL) margins. In December 2013, the company announced that it had delivered a record amount of natural gas to meet demand driven by recent cold weather in markets on the US East Coast.

Wall Street will be listening for insights from Devon Energy Corporation (NYSE:DVN), a leading US independent oil and gas producer, slated to announce its fourth-quarter and year-end earnings results on February 19, 2014. The company had reported strong Q3 results primarily due to higher revenues from oil, gas and NGL sales and marketing and midstream segments. In Q3 of 2013, the company’s adjusted EPS of $1.29, outperformed analysts’ consensus of $1.19.

Health Care REIT Inc. (NYSE:HCN) will release its fourth-quarter earnings before the market bell on Wednesday, 19 February 2014. The company had penned a deal on February 11, 2014, following which it will own a 24% interest in Sunrise Senior Living management. The company is scheduled to pay a cash dividend of 0.79 per share, on February 20, 2014, to stockholders of record on February 10, 2014. The consensus estimate for 2013 funds from operations (FFO) per share is expected at 97 cents.

MGM Resorts International (NYSE:MGM) will release its fourth-quarter results before the market bell on Wednesday, 19 February 2014. The company had reported EPS of $0.02 and the revenue of $2.5 billion in Q3 2013. Analysts are forecasting almost flat Q4 results for the Las Vegas-based leisure company.

Tesla Motors Inc. (NASDAQ:TSLA) is scheduled to report its 2013 fourth quarter and full-year earnings, after the market hours on 19 February 2014. Analysts at Thomson Reuters are optimistic about company’s results on Wednesday and are expecting revenue of $677.36 million, a 121% rise from the year-ago quarter, and EPS of 21 cents, swinging from a 65-cent loss. The company’s shares recorded a new 52-week high of $206.00, on Tuesday, 18 February 2014.

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