Nathan Sheets on Fed Monetary Policy
Jan 26th
Nathan Sheets, global head of international economics at Citigroup Inc. and former head of the Federal Reserve’s international economic division, talks about the outlook for additional stimulus from the Fed. Sheets, speaking with Sara Eisen on Bloomberg Television’s “InsideTrack,” also discusses actions by the European Central Bank to stem the debt crisis and the performance of the euro.
Qualcomm CEO Says He Expects Strong Smartphone Sales
Jan 26th
The Wall Street Jounral reports that Qualcomm (NASDAQ:QCOM) says it expects to have robust smartphone sales specifically in emerging markets. In an interview at the World Economic Forum, CEO Bill Keitel said there is a weak correlation between the slow global growth and smartphone sales.
QUALCOMM (NASDAQ:QCOM) has potential upside of 12.5% based on a current price of $59.2 and an average consensus analyst price target of $66.58.
QUALCOMM is currently above its 50-day moving average (MA) of $55.14 and above its 200-day of $54.15.
General Dynamics Revenues Come Up Shy Of Estimates
Jan 25th
General Dynamics (NYSE:GD) reported Q4 EPS of $1.68, including one-time charges, vs. consensus estimates of $1.99, which may not be comparable.
The company reported Q4 revenues of $9.15 billion, below estimates of $9.31 billion.
The company also reported free cash flow of $1.8 billion, up from $1.3 billion in the same quarter of last year.
Jay L. Johnson, chairman and chief executive officer said, “Jet Aviation’s aircraft-completions business continued to face lower OEM business-jet volume and delays in several narrow-body and wide-body aircraft which are nearing delivery. We have taken appropriate steps to address these issues. The charges taken in our completions business mask an otherwise solid fourth-quarter performance by General Dynamics, marked by excellent cash generation, delivery of the first 12 Gulfstream G650 production aircraft to the final phase of manufacturing, and strong margins in our defense businesses.”
General Dynamics (NYSE:GD) has potential upside of 6.5% based on a current price of $71.34 and an average consensus analyst price target of $76.
Apple Earnings Analysis
Jan 25th
Apple blasted past Wall Street expectations last night with record quarterly revenues of $46.3bn. They reported record net profits of $13.06bn, or $13.87 per share, in its December quarter, surging well ahead of analyst expectations of $10.07 per share and Apple’s guidanceof $9.30. This was largely powered by the sale of 37m iPhone devices, giving the company nearly $100bn of cash in hand. This is also the first quarter that we saw the iPhone 4s sales, a topline to which I helped contribute.
But this has been a very interesting earnings report – and thats really because the last time apple reported earnings, it was very unusual – the company missed earnings for the first time since 2004. And thats unheard of when it comes to Apple. So everyone was very curious. They all also guided higher, which was also very unusual for Apple.
And stepping back and looking at the big picture, Apple at the heart of it really is a product company. If you take a look at a long term stock price chart, really the big bumps have come in every time it has a new product – the ipad, the ipod, the iphone – so any hints of their future product pipeline will be key next time around. With the new text book feature – theyre saying there have already been 350,000 downloads of textbooks on the ipad. That’s a pretty big number after just one week, and it will be interesting to see how that product plays out.
McDonald’s Bested Estimates For Q4, Rose 9.8% Year-Over-Year
Jan 24th
McDonald’s (NYSE:MCD) reported Q4 EPS of $1.33, better than analyst estimates of $1.30 per share. Revenues for the quarter rose 9.8% year-over-year to $6.82 billion, better than consensus estimates of $6.81 billion
McDonald’s CEO Jim Skinner said, “During 2011, McDonald’s continued momentum drove higher profitability and market share gains as we fortified our leadership position around the world. The ongoing strength of McDonald’s results is rooted in our Plan to Win with a relentless focus on what matters most to our customers. We are enhancing the customer experience – from our menu and service to our value and convenience – while giving more people more reasons to visit McDonald’s more often.”
McDonald’s (NYSE:MCD) has potential upside of 1.9% based on a current price of $100.95 and an average consensus analyst price target of $102.87.
Icahn Picks Up 14% Stake in CVR Energy
Jan 24th
Activist investor Carl Icahn and his fund picked up a 14 and a half percent stake in CVR Energy (CVI.N), saying the shares were
undervalued. Now CVR is an independent petroleum refiner and and marketer of transportation fuels.
Experts say Icahn will most likely remain passive in CVR. The stock is trading extremely cheap, at around $24 now, and 2 and a half times EBITDA. And Icahn acquired the entire position in December of 2011, when the stock was even cheaper. He acquired common stock for $19 per share, at the highest, and options, topping off at $23.13. And Icahn isn’t the only professional investor who sees value in this company. Other smart money names such as Appaloosa Management and Third Point bought CVR as well.
And while Carl Icahn is known for his shareholder activism, it’s worth noting he isn’t new to making passive investments, particularly in the oil and gas sector. It’s estimated that he made a 42% return last year on El Paso, and 42.3% on Chesapeake Energy – both oil and gas companies.
Freeport-McMoran Beats Estimates But Cuts 2012 Copper Sales Target
Jan 19th
Freeport-McMoran (NYSE:FCX) reported Q4 EPS of $0.67, which includes a $0.05 charge for labor costs. Consensus estimates were for EPS of $0.61. The company reported Q4 revenues of $4.16 billion, vs. consensus estimates of $3.74 billion. The company lowered its 2012 copper sales target to 3.8b lbs vs. 11/17 forecast of 3.9b lbs. Freeport forecasts gold production of 1.2m oz. vs. its prior 1.1m.
Bank Of America Revenues Rise 11%, Shares Rally Premarket
Jan 19th
Bank of America (NYSE:BAC) reported Q4 EPS of $0.15, may not be comparable to estimates for $0.13. Bank of America’s revenue, net of interest expense on a FTE basis, rose 11% to $25.1 billion. Chief Executive Officer Brian Moynihan said, “We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company. We built our capital ratios to record levels during 2011 on the strength of our core businesses and by shedding those that are not core to serving customers and clients. I am proud of our team and their ability to serve our customers well while transforming the company.” Shares of Bank of America are trading 6.6% higher premarket, to $7.25.
IMF Said to Seek $500B Boost to Lending Capacity
Jan 18th
The International Monetary Fund is proposing to raise its lending capacity by $500 billion to insulate the global economy against any worsening of Europe’s debt crisis, according to a person familiar with the talks. Sara Eisen reports on the IMF and other top news about the European debt crisis on Bloomberg Television’s “In the Loop.”
Morgan Stanley Releases 60-Day Tactical Play In Agco (AGCO)
Jan 18th
Morgan Stanley (NYSE:MS) released a 60-day tactical idea on shares of Agco (NASDAQ:AGCO), saying it sees a falloff in share price over the next few months. MS analysts discounted the chances of a buyout and forecasted high surplus of corn in the market would end up pressuring its margins. MS said, “AGCO is up 27% since the 12/16 investor day and 12% since 1/5 when Bloomberg reported that AGCO’s CEO “doesn’t rule out a takeover by another company.”
