Earnings Releases – 3 February 2014

Vetted & Compiled by Joma Jose
Edited by Vani Rao

Sysco Q2 earnings down, fails to meet revenue expectations

Sysco Corp. (NYSE:SYY) reported a 4.1% sales growth in the second quarter of FY2014 to $11.2 billion from $10.8 billion in the year-ago quarter. Sysco’s revenue marginally missed the consensus estimate of $11.4 billion. The company reported earnings (excluding business transformation expenses and one-time items) of 47 cents per share, which is 7 cents above the analysts’ estimates. Sysco’s second-quarter net income of $211 million was 4.8% lower than $222 million in the year-ago period. The company reported an 8.1% year-over-year decline in its operating income of $352 million due to the sluggish economic scenario. Sysco has recently announced the acquisition of US Foods for $500 million in cash and $3 billion in common stock. The deal is expected to be settled in the third quarter of FY2014.

Yum’s profits down on food safety issues

Yum! Brands Inc. (NYSE: YUM) reported lower fourth-quarter net profit of $321 million, or 70 cents a share, compared to $337 million, or 72 cents a share, in the year-ago period. The company reported adjusted EPS of 86 cents a share, against 83 cents a share in the prior year period. Analysts’ polls at Thomson Reuters were expecting EPS of 80 cents for revenue of $4.26 billion. On the other hand, revenue improved slightly by 0.6% to $4.18 billion. The company’s annual EPS fell 9% to $2.97 per share from $3.25 per share in the year-ago period. Yum’s annual worldwide restaurant margins worsened 160 basis points to 15.4% from 18.1%, due to food safety issues in its largest overseas market, China. David C. Novak, CEO Yum Brands, has a positive outlook for 2014 and stated that the company is poised for a 20% EPS growth during the year.

Anadarko reports Q4 loss due to legal disputes

Anadarko Petroleum Corp. (NYSE:APC) reported fourth-quarter loss of $770 million, or $1.53 per share, compared to the earnings of $203 million, or $0.40 per share, in the year-ago period. Moreover, the company’s revenue slid by 2.1% to $3.34 billion and per-share earnings fell from $0.91 to $0.74 for the comparable period. Anadarko Petroleum’s Q4 results have underperformed the Thomson Reuters analyst polls, which expected revenue of $3.78 billion and per-share earnings of $0.90. The company’s Q4 losses are attributed to the legal charges arising out of its acquisition of chemical company, Kerr-McGee in 2006, which eventually spun-off into a new company called Tronox (NYSE:TROX). Following the results, Anadarko’s stock slid 3.12% on Monday, 3 February 2014, to close at $78.17.

CareFusion Q2 revenue meets expectations; profit slips

CareFusion Corp.’s (NYSE:CFN) revenue for the Q2 fiscal 2014 rose 1.4% to $922 million from $909 million in the comparable period, topping analyst polls, who on an average had expected revenues of $911.1 million. Excluding items, the company earned 54 cents per share, also in line with estimates. However, the company’s profit declined to $97 million, or 45 cents per share, from $108 million, or 48 cents per share in the year-ago period. For the fiscal year ending June 30, 2014, CareFusion forecasts earnings per share in range of $2.30 to $2.40, and expecting its organic revenue to grow by 1-4%.

Dunn & Bradstreet EPS underperforms; revenue grows 2.9%

Dun & Bradstreet Corp. (NYSE:DNB) reported Q4 earnings of $75.3 million, or $1.96 per share share, down from $96 million, or $2.20 per share, from the year-ago period. Excluding non-core gains and charges, the company’s EPS increased to $2.75 from $2.38. Analyst surveyed by Thomson Reuters had projected an EPS of $2.82 on revenue of $469 million. However, the company’s revenue grew 2.9% to $476.7 million. CEO Bob Carrigan made an announcement that the company will simplify its management structure and will explore new business opportunities beyond its chief operations in North America.

Edward Lifesciences reports 5% rise in revenue; profit declines

Edwards Lifesciences Corp.’s (NYSE:EW) revenue rose 5% to $536 million in the fourth-quarter, boosted by a surge in sales of its non-surgical heart valves. However, the company’s profit slid by 17%, mainly due to an increase in the selling and administrative expenses. During the quarter, Edwards Lifesciences’ profit fell to $75.8 million, or 68 cents per share, from $91.1 million, or 77 cents per share, in the comparable period. Excluding special items, the company reported earnings of 91 cents a share, bettering the Capital IQ Consensus Estimate of 82 cents per share. Following the results, the company’s stock finished 1.46% lower on Monday, 3 February 2014, closing the day at $64.17.

PartnerRe profit surges, outperforms market estimates

PartnerRe Ltd. (NYSE:PRE) reported a 168% rise in its fourth-quarter profit to $257.60 million, or $4.76 per share, beating analysts’ expectations of $2.77 per share. The company’s revenue rose 25% to $1.64 billion, compared to $1.31 billion in the year-ago period. The company reported net premium of $1.19 billion as compared to $920.29 million in the year-ago period, overshadowing the analysts’ estimate of $1.04 billion. PartnerRe’s operating earnings attributable to shareholders stood at $157.4 million, or $2.91 per share, compared to $95.7 million, or $1.55 per share, in the year-ago period. The company hiked its dividend by 5% to $0.67 per share, payable on February 28, 2014, with the record date of February 18, 2014.

Hartford reports core Q4 earnings of $456 million

The Hartford Financial Services Group Inc. (NYSE: HIG) reported core earnings for the fourth quarter FY2013 at $456 million, or $0.94 per diluted share, compared to $256 million, or $0.52 per diluted share, in the year-ago quarter. Analysts were expecting core EPS at $0.90 per diluted share. The company reported positive net earnings of $314 million, or $0.65 per share, compared to a net loss of $46 million, or $0.13 per share, in the year-ago quarter. The improved profitability in Q4 was as a result of lower catastrophe losses. The Hartford Financial Services Group reported a 26% improvement in its annual core earnings to $1.74 billion from $176 million in the prior year. The company announced a positive outlook for 2014, with annual core earnings in the range of $1.65 billion to $1.75 billion.

Coming up in the next 24 hours

Archer-Daniels Midland Co. (NYSE:ADM) reports its fourth-quarter results before the opening bell on 4 February 2014. The global food-processing and commodities-trading company had missed on expectations in the last quarter. However, this time around, analysts are expecting the company’s Oilseeds Processing and Agricultural Services segments to report improved operational efficiency and therefore better results. Archer-Daniels received clearance from 7 out of 9 jurisdictions for acquiring leading agribusiness company, GrainCorp Limited.

C.H. Robinson Worldwide Inc. (NASDAQ:CHRW) is expected to report a drop in its fourth-quarter profit due to the highly competitive freight market and the company’s declining truckload market share. The company’s near term growth will depend on its market expansion, acquisition, and entry into new market segments.

Emerson Electric Co. (NYSE:EMR) one of the largest power equipment manufacturers in the US, would report its fourth-quarter results after the market closes. The company is expected to benefit from the shale gas boom and company restructuring. The company is grappling with slow revenue growth, as the US economy has shown sluggish recovery. The company expects a revenue growth to be in the range of 3-5%.

Fidelity National Information Services (NYSE:FIS) will release its earnings data on Tuesday, before the market opens. The company is expected to report higher profits and analysts have raised the target price for the company. The company has recently announced a dividend of $0.24 per share.

McGraw Hill Financial Inc. (NYSE: MHFI), the market leader in credit ratings, benchmarks, and analytics, will present its fourth quarter and annual earnings report before the market bell. The company has provided earnings guidance for FY2013 to be in the range of $3.25 to $3.30 per share. The company has also raised its quarterly dividend by 7.1% to 30 cents. Analysts expected the company to perform well and improve its target price.

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