Earnings Release – 20 Feb 2014

Verified by Raqueem Khan
Edited by Vani Rao

Carlyle’s Q4 profits up six-fold owing to buyout deal

The Carlyle Group LP. (NYSE: MET) reported a six-fold jump in net profit for the fourth quarter FY2013 to $71 million, or $1.17 per share, compared to $12 million, or $0.25 per share, in the year-ago quarter. The company’s economic net income stood at $1.64 per share, well above prior-year economic net income and analysts’ expectations of 47 cents and 96 cents, respectively. The company reported net revenue of $1.64 billion, overshadowing Street estimates of $858.1 million. The private equity firm was able to cash out of deals and notched big gains in the value of assets. Carlyle declared a quarterly dividend of $1.40 per share to holders on record at the close of business on March 3, 2014, payable on March 11, 2014. The global alternative asset manager is set to acquire Industrial Packaging Group from Illinois Tool Works (NYSE:ITW) for $3.2 billion. Shares of Carlyle rallied 8.29% to $38.40 in pre-market trading on Wednesday, February 20, 2014.

Tesla Motors Q4 losses shrink, provides strong outlook

Tesla Motors Inc.’s (NASDAQ:TSLA) fourth-quarter losses narrowed to $16.3 million, or 13 cents per share, compared to a loss of $89.9 million, or 79 cents per share, in the year-ago period. The California-based company reported Q4 earnings of $46 million, or 33 cents per share, well above the earnings estimate of 21 cents by Thomson Reuters. Tesla’s significant improvement in performance is attributed to improved margins due to lower costs and the company expects gains to continue with growing volumes. Elon Musk, CEO, provided a rosy outlook for 2014, and told analysts about building a new final assembly line that will allow the company to increase production to more than 1,000 cars per week from the current pace of 600 cars per week. Tesla expects most of its growth to come outside of North America, with sales in Europe, China, and elsewhere roughly twice the size of American sales. The company plans to make substantial investments in China, and will start deliveries for Model S in China by the spring season. Moreover, Tesla expects to deliver more than 35,000 Model S vehicles in 2014, an increase of more than 55% from the 22,477 units delivered last year.

Marriott’s earnings drop due to a shorter fourth quarter

Marriott International Inc.’s (NASDAQ:MAR) revenues fell 14% year-over-year to $3.2 billion in the fourth quarter FY2013 from $3.7 billion, in the year-ago period. The company reported net earnings of $151 million, or 49 cents a share, compared with $181 million, or 56 cents, in the year-ago period. Analysts at Wall Street were expecting an EPS of 49 cents per share on net revenue of $3.3 billion. Marriott’s fourth quarter had a duration of 92 days versus 112 days in Q4’12, due to a change in calendar-year reporting. Revenue per available room (REVPAR) in Q4’2013 improved 4.1% (actual dollars) from the year-ago period. The company sees Q1’14 EPS at $0.47-0.52 with global REVPAR growth of 4-6%. Marriott had recently declared quarterly cash dividend of 17 cents per share, payable on March 28, 2014, to shareholders of record as on February 28, 2014. The company is authorized to repurchase additional 25 million shares from the open market or in privately negotiated transactions.

Health Care REIT posts strong Q4 results, meets earnings expectations

Health Care REIT Inc. (NYSE:HCN) reported a 58% revenue growth in the fourth quarter FY2013 to $788.6 million, easily surpassing the analysts’ forecasts of $784 million. The company’s fourth quarter 2013 normalized FFO (funds from operations) per share increased to 99 cents from 85 cents in the year-ago quarter, bettering analysts’ estimates by 2 cents. The Q4 performance was driven by robust revenue growth, strong same-store cash NOI (net operating income), and portfolio restructuring activity. The management declared a quarterly cash dividend of 79.5 cents per share for the first quarter of FY2014, representing a 4% hike from the year-ago dividend of 76.5 cents per share. The dividend is payable on February 20, 2014 to stockholders of record on February 10, 2014. As guidance for 2014, Health Care REIT expects its 2014 normalized FFO per share in range of $3.93-4.03, an increase of 3-6% from that in 2013.

MGM reports lower Q4 losses led by casinos in Las Vegas and Macau

MGM Resorts International’s (NYSE:MGM) fourth-quarter losses lowered to $38.3 million, or 8 cents per share, compared to losses of $1.2 billion, or $2.50 per share, in the year-ago quarter. Excluding special items, the company earned 11 cents, compared with a loss of 1 cent, as per the average estimates compiled by Bloomberg. The company’s Q4 revenue rose 9.5% to $2.51 billion, above analysts’ consensus estimates of $2.47 billion. The company’s significant improvement in performance is attributable to the strong gambling in Macau along with a recovery in Las Vegas. Revenue growth was particularly strong in Macau, with MGM China delivering a 22% increase in sales, while sales in Las Vegas increased 6% during the quarter. MGM China also declared a special dividend of $500 million. Parent MGM Resorts International will receive $255 million, its 51% share of the special dividend.

Devon Energy comes back into black in Q4, production reaches record levels

Devon Energy Corporation (NYSE:DVN) reported net earnings of $207 million, or 51 cents per common share, compared with losses of $357 million, or 89 cents per common share, in the last quarter of 2012. Permian Basin contributed significantly to the company’s growth, where production averaged a record 86,000 oil-equivalent barrels (Boe) per day in the fourth quarter, representing an increase of 29%, compared to the fourth quarter of 2012. Moreover, production at the Anadarko Basin also reached record levels with an average of 85,000 Boe per day. Devon’s management also announced that it will sell some of its liquids-rich natural-gas assets in Canada and six natural-gas plants for $2.86 billion to Canadian Natural Resources (NYSE:CNQ). Shares of the Oklahoma-based oil and gas company closed the day 2.13% higher at $64.25 on February 19, 2014.

Safeway reports fourth-quarter earnings, talks of possible sale of business

Safeway Inc. (NYSE: SWY) reported a 0.8% net sales growth in the fourth quarter to $11.3 billion from $11.2 billion in the year-ago quarter. Safeway’s net earnings excluding extra-ordinary items stood at 53 cents per share, below the prior-year quarter net earnings of 59 cents per share. Analysts were expecting an EPS of 48 cents on net revenue of $11.53 billion. Safeway Inc. issued EPS guidance for FY2014 of $1.15-1.35 per share on adjusted EBITDA of $1.66-1.76 billion. Safeway expects revenue growth for FY2014 in the range of 1.5% to 2.5%. The company has announced a possible sale of its business and distribution of 37.8 million shares in Blackhawk Network Holdings to Safeway shareholders. Safeway’s board of directors is authorized to repurchase shares worth $2.2 billion.

Energy Transfer Partners reports fourth-quarter losses on impairment charges

Energy Transfer Partners L.P. (NYSE: ETP) reported fourth-quarter loss due to impairment charges for the transfer of Trunkline LNG Company to Energy Transfer Equity L.P. (NYSE: ETE). The company reported losses of $541 million, compared with a profit of $307 million in the year-ago quarter. Excluding one-time items, the company reported loss of $1.87 a share, against analyst profit forecasts of $0.59 a share. Revenue rose 9.6% to $12.03 billion, above Wall Street’s expectations of $11.12 billion. The company shares fell 0.46% to $53.75 in the after-hours trading on Wednesday, 19 February 2014.

Natural gas liquid margins drags down Williams’ bottom line

Williams Companies Inc. (NYSE: WMB) reported fourth quarter losses, solely due to the decrease in NGL margins and its non-functional Geismar olefins plant. The company reported fourth-quarter loss from continuing operations of $13 million, or $0.02 per share, compared to profit of $151 million, or $0.23 per share, in the year-ago period. Adjusted earnings from continuing operations stood at $148 million, or $0.22 per share, in line with analysts’ consensus estimate. Alan Armstrong, President and Chief Executive Officer, affirmed a positive outlook and increased annual dividend guidance by 20% for FY2014 and FY2015 to $1.75 and $2.11, respectively. The company expects annual earnings for FY 2014 to be in the range of $1.00-1.20 per share.

Upcoming Earnings Releases

Actavis PLC (NYSE:ACT) is expected to announce its fourth quarter and full-year 2013 earnings release before the opening bell on Thursday, 20 February 2014. On 18 February 2014, Actavis entered into a definitive agreement under which it will acquire Forest Laboratories Inc. (NYSE:FRX) for a combination of cash and equity.

Hewlett-Packard Company (NYSE:HPQ) is slated to post its first-quarter 2014 results after the market close on Thursday, 20 February 2014. Analysts are looking for EPS of 84 cents and revenue of $27.17 billion, representing a 4% decline from the same period last year. HP has seen its year-to-year revenue decline for nine straight quarters. However, the computer product giant has beaten earnings estimates in three of the past four quarters.

Express Scripts Holding Company (NASDAQ:ESRX) is expected to post fourth-quarter results on Thursday, 20 February 2014. In the previous quarter the company reported strong quarter results with earnings of $426.7 million, or 52 cents per share. During Q3 2013, Express Scripts forecasted adjusted net income of $4.30-4.34 per share, compared with previous range of $4.26-4.34.

Nordstrom Inc. (NYSE:JWN) is scheduled to report its 2013 fourth-quarter and full-year earnings after the market hours on 20 February 2014. The Washington-based apparel company posted better-than-expected results in the previous quarter, with improvement in retail sales as well as credit card revenues. Analysts are inconclusive about company beating the earnings estimates in the fourth quarter.

Public Storage (NYSE:PSA) is expected to announce its fourth-quarter and year-end earnings results on February 20, 2014. The company had reported strong Q3 results primarily due to improved property operations leading to a surge in net operating income. In Q3 2013, the company’s adjusted EPS of $1.92 outperformed analysts’ consensus by 2 cents.

Wal-Mart Inc. (NYSE:WMT) is expected to post fourth-quarter results before the market opens on Thursday, 20 February 2014. The world’s largest retailer had Wall Street’s estimates in three of the last eight quarters. On January 31, the retail giant had slashed its guidance for FY2014 and it is most likely that the fourth-quarter earnings will be below expectations.

Daily coupon website operator Groupon (NASDAQ:GRPN) is expected to report strong fourth quarter earnings. It has been a robust holiday season in North America this season with peers like TripAdvisor (NASDAQ:TRIP) and Expedia (NASDAQ:EXPE) posting stellar quarterly earnings. Groupon said in November it expects to either break even or report a profit of 2 cents per share in the fourth quarter. The results are expected on Thursday, 20 February 2014.

Priceline.com Inc. (NASDAQ:PCLN) is slated to announce its fourth quarter and full year 2013 results on Thursday, February 20, 2014. The leading online travel agency had reported robust in the first nine months of the year, with 29% year-over-year top line growth. For the fourth quarter, the company has provided revenue growth in the range of 19-26%.

The satellite television company DIRECTV (NASDAQ:DTV) will report fourth-quarter results before the market bells on Thursday, 20 February 2014. The company had benefited in the recent dispute between Time Warner Cable’s (NYSE:TWC) and CBS (NYSE:CBS) over distribution fees; and is said to have added 139,000 subscribers during the quarter.

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