Daily Markets - Franklin Resources Outshines Estimates

Franklin Resources Outshines Estimates
TTEK Beats, Raises Outlook
Owens-Illinois Misses By A Penny
NOV Beats, Backlog Slides
ADP Reports Q4 In Line
Greatbatch Beats, Reaffirms View
Williams Misses On Lower Volumes
Vivo Matches Ests, Profit Swells
Moody’s Beats, Guidance Mixed
Ventas Tops Estimates
Why The Recession Ended
Equifax Edges Past Consensus
Kellogg Crashes, Outlook Bleak
LSI In Line, Revs Misses
RadioShack Meets Zacks Estimate
Vistaprint Records Mixed Results
Shutterfly Tops Zacks Estimates
Tesoro Moves Beyond Expectations
Fox Business Highlights Need For SEC Transparency
MDCO Tops Zacks Estimates
Eni Slips, Profit Jumps
EUR/USD Hits Resistance At 1.3100
The Five-Step Market-Beating Formula For Successful Investing
O’Reilly Beats, Ups Outlook
Equity Residential Tops Estimates
Book Review:Information Rules: A Strategic Guide To The Network Economy
Walter Energy Sweeps Estimates
Varian Beats Zacks Estimates
Mutual Funds: Top 5 European Funds
Swiss Franc: Under Pressure
Australian Dollar: The Downside Prevails
Canadian Dollar: Under Pressure
Japanese Yen: Caution
British Pound: Under Pressure
Euro: The Downside Prevails
Teradyne: Another Blow-Out Quarter
ESRX Beats By A Penny

Posted: 29 Jul 2010 11:50 AM PDT

Franklin Resources Inc.’s (NYSE:BEN) third-quarter earnings of $1.58 per share surpassed the Zacks Consensus Estimate of $1.48. Results were also significantly ahead of the prior-year’s earnings of $1.28 per share.
Results reflected inflow of cash coupled with strong growth in revenue and higher assets under management (AUM), partially offset by increased operating expenses.
Quarter Performance in Detail
Total operating revenue increased 43.0% year over year to $1,534.0 billion, primarily driven … [visit site to read more]

TTEK Beats, Raises Outlook

Posted: 29 Jul 2010 11:50 AM PDT

Tetra Tech Inc. (NASDAQ:TTEK) recorded another strong quarter performance, reporting earnings per share of 33 cents, above the Zacks Consensus Estimate of 30 cents. The company outperformed its own expectation for the quarter on both top line and bottom line, driven by strong front-end consulting and engineering services to federal and international clients.

Earnings per share decreased by 35.2% year over year as the company derived a tax benefit of only 1 cent in the quarter in comparison … [visit site to read more]

Owens-Illinois Misses By A Penny

Posted: 29 Jul 2010 11:35 AM PDT

Owens-Illinois Inc. (NYSE:OI) delivered earnings per share of 90 cents in its second quarter, falling short of the Zacks Consensus Estimate of 91 cents as well as the year-earlier profit of 94 cents.

The decline was due to lower revenues in Europe (the company's largest segment), lower shipments and inconsistent recovery across North America and Europe on sluggish beer demand. These headwinds more than offset the accelerated economic recovery in South America and China, and higher … [visit site to read more]

NOV Beats, Backlog Slides

Posted: 29 Jul 2010 11:35 AM PDT

Oilfield service company National-Oilwell Varco (NYSE:NOV) reported better-than-expected second quarter results. The company's earnings per share, excluding transaction charges, came in at 97 cents, well above the Zacks Consensus Estimate of 93 cents.
Including the after-tax charge of 1 cent, earnings per share for the quarter were 96 cents, up 81.1% from 53 cents in the second quarter 2009. The upbeat quarter results reflect management’s efficient execution skills and the company’s diversified … [visit site to read more]

ADP Reports Q4 In Line

Posted: 29 Jul 2010 11:35 AM PDT

Automatic Data Processing Inc. (NYSE:ADP) announced results for the fourth quarter of fiscal 2010. Adjusted net earnings from continuing operations for the quarter were 42 cents per share, in line with the Zacks Consensus Estimate.

Earnings per share were down 3 cents from 45 cents reported in the year-ago quarter, attributable to increased unemployment and the negative effect of the economic downturn. Earnings per share were negatively affected by a higher effective tax rate in the quarter and … [visit site to read more]

Greatbatch Beats, Reaffirms View

Posted: 29 Jul 2010 11:15 AM PDT

Greatbatch Inc. (NYSE:GB) reported second quarter 2010 results on July 28, with earnings per share of 40 cents on an adjusted basis (excluding one-time charges such as consolidation and integration costs) beating the Zacks Consensus Estimate by a penny while coming in line with the year-ago earnings. Net income surged roughly 19% year over year to $7.8 million (or 33 cents a share) on account of higher sales.

Revenue Analysis

Improving trends across Vascular and Electrochem markets … [visit site to read more]

Williams Misses On Lower Volumes

Posted: 29 Jul 2010 11:15 AM PDT

Natural gas producer and pipeline firm Williams Companies (NYSE:WMB) reported weaker-than-expected second-quarter 2010 results, as the company’s decision to curtail drilling activity led to lower volumes.
Earnings per share, excluding special items, came in at 27 cents, below the Zacks Consensus Estimate of 30 cents.
However, revenue of $2.3 billion was ahead of our expectations at $2.1 billion amid higher sales across all the units.
Year-over-Year Results Improve
Comparisons with the … [visit site to read more]

Vivo Matches Ests, Profit Swells

Posted: 29 Jul 2010 11:15 AM PDT

Vivo Participacoes (NYSE:VIV), the largest wireless operator in Brazil , reported second-quarter earnings per ADS of 33 cents, in line with the Zacks Consensus Estimate. However, net income surged 29.9% year over year to R$236 million ($132 million) on the back of higher revenues and healthy subscriber accretion.

Revenues & EBITDA

Vivo, a joint venture between Spanish telecom giant Telefonica (NYSE:TEF) and Portugal Telecom (NYSE:PT), posted net revenues of R$4.40 billion ($2.47 … [visit site to read more]

Moody’s Beats, Guidance Mixed

Posted: 29 Jul 2010 11:15 AM PDT

Moody’s Inc.’s (NYSE:MCO) second-quarter 2010 earnings beat the Zacks Consensus Estimate by 5 cents on higher revenues that also exceeding expectations. The results reflect strong activity in corporate and financial institution debt markets, largely driven by high-yield bond and loan issuance.
Despite better-than-expected first half 2010 results, the company remains uncertain regarding issuance levels and inconsistent credit market conditions due to increased volatility and expects structured … [visit site to read more]

Ventas Tops Estimates

Posted: 29 Jul 2010 11:00 AM PDT

Ventas Inc. (NYSE:VTR), a leading healthcare real estate investment trust (REIT), reported second quarter 2010 funds from operations (FFO) of $101.3 million or 64 cents per share, compared to $96.6 million or 63 cents in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and other non-cash expenses to net income.

The quarterly FFO included certain non-recurring items. Excluding the one-time items, … [visit site to read more]

Why The Recession Ended

Posted: 29 Jul 2010 10:45 AM PDT

In the wake of the collapse of Lehman Brothers, the related near-failure of Citigroup (NYSE:C) and the shotgun weddings of J.P. Morgan (NYSE:JPM) and Washington Mutual, Bank of America (NYSE:BAC) with Merrill Lynch, and Wells Fargo (NYSE:WFC) with Wachovia, there was an extraordinary policy response form both the Federal Reserve, and from the Federal Government.

There were many facets of this response, although the two most prominent were the TARP and the Stimulus Act, or ARRA. The big question is what … [visit site to read more]

Equifax Edges Past Consensus

Posted: 29 Jul 2010 10:45 AM PDT

Equifax Inc. (NYSE:EFX) reported second quarter adjusted earnings per share of 58 cents exceeding the Zacks Consensus Estimate by a penny.

The adjusted earnings excluded the gain from sale of the APPRO product line and acquisition-related amortization expense.

Revenues

Revenues in the quarter were $460.7 million, up 7% from $429.1 million in the year-ago quarter, but were below the Zacks Consensus Estimate of $464 million. Revenues gained by a percent from favorable foreign … [visit site to read more]

Kellogg Crashes, Outlook Bleak

Posted: 29 Jul 2010 10:45 AM PDT

Kellogg Company (NYSE:K) recently posted weak net sales, operating profits and foreign currency translation, on the back of softness in the cereal category, declining Eggo sales and the impact of the voluntary recall of select packages of breakfast cereals.

The quarterly earnings of 79 cents were way behind the Zacks Consensus Estimate of 94 cents, plunging 15% from 92 cents delivered in the prior-year quarter. Excluding foreign currency translation, earnings per share declined 11%. Moreover, … [visit site to read more]

LSI In Line, Revs Misses

Posted: 29 Jul 2010 10:35 AM PDT

California-based LSI Corp. (NYSE:LSI) reported revenues of $639 million in the second quarter of 2010, up 23% year over year but flat sequentially and toward the low end of management's guidance of $635 – $665 million. The results missed the Zacks Consensus Estimate of $653 million.
LSI Corp. designs, develops and markets complex high-performance semiconductors and storage systems.
Semiconductor revenues for the second quarter were $417 million, flat sequentially but up 21.2% sequentially. … [visit site to read more]

RadioShack Meets Zacks Estimate

Posted: 29 Jul 2010 10:15 AM PDT

RadioShack Corp. (NYSE:RSH) has declared second quarter 2010 financial results mostly in line with the Zacks Consensus Estimate. Comparable store sales for the company-operated stores and kiosks (stores and kiosks opened at least a year) grew 6.7% year over year. This is a key retail performance indicator measuring growth from existing sales locations.

GAAP net income, in the second quarter of 2010, was $53 million or 41 cents per share compared with a net income of $48.8 million or … [visit site to read more]

Vistaprint Records Mixed Results

Posted: 29 Jul 2010 10:05 AM PDT

Vistaprint N.V. (NASDAQ:VPRT) recorded its fourth-quarter 2010 adjusted earnings of $17.3 million or 38 cents per share, which declined 12% year over year but surpassed the Zacks Consensus Estimate of 25 cents. Earnings were at the high end of the guidance range of 35 cents–38 cents.

Vistaprint had earned $19.5 million or 43 cents in the year-ago quarter. On a GAAP basis, earnings decreased 21% to 26 cents during the quarter. Earnings were at the higher end of the guidance range of 24 … [visit site to read more]

Shutterfly Tops Zacks Estimates

Posted: 29 Jul 2010 10:05 AM PDT

Shutterfly Inc. (NASDAQ:SFLY) reported its adjusted second quarter 2010 loss of $3.1 million or 12 cents per share, up from a net loss of $3.5 million or 14 cents and outpaced the Zacks Consensus Estimate of 30 cents loss per share. The results were ahead of the guidance range of 21 cents to 18 cents loss per … [visit site to read more]

Tesoro Moves Beyond Expectations

Posted: 29 Jul 2010 09:50 AM PDT

Independent refiner and marketer of refined petroleum products, Tesoro corp. (NYSE:TSO) reported better-then-expected second quarter 2010 results. Net earnings per share, excluding certain benefits, came in at 30 cents, beating the Zacks Consensus Estimate of 18 cents. In the year-ago period, the Texas-based company reported a loss per share of 33 cents.

After including the after-tax special items, earnings per share for the second quarter 2010 came in at 47 cents.

The company … [visit site to read more]

Fox Business Highlights Need For SEC Transparency

Posted: 29 Jul 2010 09:33 AM PDT

Kudos to Fox Business News for leading the charge within the financial media on the need for real transparency at the SEC. FBN's Adam Schapiro was just on chatting with Stuart Varney on this very important topic. Listen to Adam, and ponder his comments in light of the Madoff and Stanford travesties that took place literally right under the nose of the SEC. (Clicking on the image will bring you to the Fox Business News website, and the video clip will begin to play … [visit site to read more]

MDCO Tops Zacks Estimates

Posted: 29 Jul 2010 09:30 AM PDT

The Medicines Co. (NASDAQ:MDCO) reported a second-quarter profit of 27 cents per share, including the impact of stock-based compensation expense. Second quarter profit was well above the Zacks Consensus Estimate of 23 cents and the year-ago earnings of 8 cents. Performance was boosted by higher revenues and lower operating expenses. The company completed its cost reduction program by cutting more than 100 jobs and expects to achieve annual savings in the range of $14.5 million–$16.5 … [visit site to read more]

Eni Slips, Profit Jumps

Posted: 29 Jul 2010 09:20 AM PDT

Eni SpA (NYSE:E) reported second-quarter earnings per ADR of 90 euro cents ($1.15), compared with 50 euro cents (68 cents) in the year-earlier quarter and the Zacks Consensus Estimate of $1.22. Though earnings missed the consensus estimate, it increased significantly from the year-earlier quarter driven by an improvement in crude prices and a stronger U.S. dollar versus the euro.
Operational Performance
Total production in the quarter was 1,732 Mboe/d (57% liquids), essentially flat year over … [visit site to read more]

EUR/USD Hits Resistance At 1.3100

Posted: 29 Jul 2010 09:18 AM PDT

Price action on EUR/USD (a 4-hour chart of which is shown) as of Thursday (7/29/2010) morning, has reached its upside resistance target of 1.3100, as noted in Monday’s EUR/USD analysis. This occurs within the context of an accelerated parallel uptrend channel that originally stems from the 1.1875 low in early June, and after breaking out cleanly above the prior 1.3026 high. After hitting and slightly exceeding the 1.3100 resistance target, price action has stalled, but still continues … [visit site to read more]

The Five-Step Market-Beating Formula For Successful Investing

Posted: 29 Jul 2010 09:15 AM PDT

Thursday, July 29, 2010: Issue #1312
If you want sound, classic investment advice, you've come to right place.
The lessons you're about to learn are timeless and straightforward… but sadly, hardly ever followed.
What's more, the financial crisis has actually substantiated this man's classic formula for successful investing.
The formula I'm talking about comes from Burt Malkiel, finance professor at Princeton and author of the classic, A Random Walk Down Wall Street. You may recall … [visit site to read more]

O’Reilly Beats, Ups Outlook

Posted: 29 Jul 2010 09:05 AM PDT

O'Reilly Automotive Inc. (NASDAQ:ORLY) has revealed a 34% increase in profit to $114.6 million in the second quarter of the year from $85.5 million in the same quarter a year-ago. The profit excluded the charge related to the investigation of CSK Auto Corporation – acquired by the company two years ago – by the U.S. Department of Justice (DOJ).

The company outpaced the Zacks Consensus Estimate of 74 cents per share by posting a profit of 81 cents during the quarter. This reflected a … [visit site to read more]

Equity Residential Tops Estimates

Posted: 29 Jul 2010 09:05 AM PDT

Equity Residential (NYSE:EQR), a leading real estate investment trust (REIT), reported fiscal 2010 second quarter funds from operations (FFO) of $175.0 million or 58 cents per share, compared to $168.7 million or 58 cents in the year-earlier quarter. Funds from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. The second quarter 2010 FFO beat the Zacks Consensus Estimate by 3 … [visit site to read more]

Book Review:Information Rules: A Strategic Guide To The Network Economy

Posted: 29 Jul 2010 08:59 AM PDT

By Sandesh Trivedi, sandeshtrivedi@gmail.com
For value investors blindly shunning tech stocks they might want to read the book, Information Rules: A Strategic Guide to the Network Economy by Carl Shapiro and Hal Varian. Though the book might not help you catch the next Microsoft or Cisco or Amazon at a very early stage, it puts forth a very compelling argument that traditional economics still applies to the new economy. The book serves as a handbook to analyze the basic economics of tech … [visit site to read more]

Walter Energy Sweeps Estimates

Posted: 29 Jul 2010 08:50 AM PDT

Premium metallurgical coal producer and exporter Walter Energy Incorporation (NYSE:WLT) announced its operating earnings for the second-quarter 2010 of $2.16 per share versus 21 cents per share in the year-ago quarter. The results of the company were higher than the Zacks Consensus Estimate of $1.94 per share by 22 cent.

Total Revenue
Walter Energy's total revenue in second-quarter 2010 was $410.6 million compared with $169.1 million in the year-ago period, reflecting a whopping … [visit site to read more]

Varian Beats Zacks Estimates

Posted: 29 Jul 2010 08:35 AM PDT

Varian Medical Systems (NYSE:VAR) announced third-quarter 2010 adjusted (excluding one-time items) earnings per share from continuing operations of 74 cents, beating the Zacks Consensus estimate of 65 cents and the year-ago figure of 68 cents.

Revenues
Total revenue was $578 million, up 13% year over year in both reported and constant currency basis, ahead of the Zacks Consensus Estimate of $569 million. Varian’s net orders came in at $629 million, up 14% in reported and 15% in … [visit site to read more]

Mutual Funds: Top 5 European Funds

Posted: 29 Jul 2010 08:35 AM PDT

The European Commission's announcement that confidence in the region's economy has risen to the highest level in two years signifies a clear improvement in Europe's economic outlook. Additionally, positive results from the EU bank's stress tests and prospects of a weak US recovery have pushed the euro to its highest level since the region's $1 trillion bailout. Mutual funds focusing on Europe are back in favor again as the region offers healthy prospects for investors. Of particular … [visit site to read more]