Department store chain, J.C. Penney Co. Inc. (NYSE: JCP) reconfirmed for the third time in just over four weeks that sales-trends were showing an improvement. J C Penney also backed its guidance for a positive same-store-sales percentage growth for the fiscal third quarter. Shares gained sharply following the announcement. Last month, JCP came under tremendous pressure after the company said that it will make a secondary offering to raise funds for general corporate purposes. Speaking to investors on Monday morning, J C Penney’s Chief Executive, Myron Ullman, “I told lenders it would be one thing if we had two things wrong and they couldn’t be fixed. We have 30 things wrong and they can all be fixed.”
Category: Large Cap Growth Stocks
Mosaic to Buy CF Industries’ Phosphate Business
Mosaic Co. (NYSE: MOS) announced on Monday that it has agreed to acquire CF Industries Inc.’s (NYSE: CF) phosphate business in an all cash deal of $1.2 billion. The deal will allow both companies to focus more on their core businesses. While Illinois based CF will be able to concentrate more on nitrogen fertilizer business, its main revenue generator, Mosaic’s phosphate production capacity has received a major boost from the deal. Shares of CF, which is the United States’ biggest nitrogen producer, rose about 3.5%, while shares of Mosaic were mainly flat.
UPS Bullish on Holiday Season Quarter
United Parcel Services Inc. (UPS) reported 3.4% revenue growth for the fiscal third quarter, aided by higher number of international and domestic shipments. For the latest period, UPS posted net income of $1.1 billion or $1.16 a share compared to a profit of $469 million or 48 cents a share, in the year-ago period. Stripping out onetime items, the adjusted earnings came in at $1.06 a share, a penny above analysts’ consensus estimate, according to a poll conducted by Thomson Reuters. Revenue stood at $13.52 billion, missing analysts’ estimate of $13.6 billion. The package courier company said that it expects to handle more than 34 million packages globally on Dec 16, which is the most busy day during the holiday season quarter.
Sherwin-Williams Trims Full-Year Guidance, Beats Q3 Forecast
Sherwin-Williams (SHW) fiscal third quarter earnings rose 12% as sales improved across all of its groups. For the latest period, the Company posted a profit of $263 million or $2.55 a share compared to $235 million or $2.24 a share, in the year-ago period. Sales climbed 9.4% to $2.85 billion. In July, the Company projected earnings to be in the range of $2.55 to $2.65 a share on revenue growth of 6% to 9%. However, Sherwin-Williams trimmed its full-year earnings guidance to $7 to $7.30 a share from its previous forecast of $7.45 to $7.55 a share. Revenue is expected to show a mid-single digit percentage growth.
Ford Motor Company Posts Record Q3 Operating Profit
Ford Motor Company (NYSE: F) fiscal third quarter profit declined 22% as the company took a big charge linked to pension and employee buyout expenses. However, the automobile company posted record fiscal third quarter operating profit. Revenue also jumped 12%. For the latest period, Ford reported a pretax profit of $2.6 billion or 45 cents a share. Analysts’ consensus estimate was for earnings of 38 cents a share. The Company also raised its outlook on several key metrics such as full-year operating profit, sales volume in China, operating margin and results in South America and Europe.
PulteGroup Shares Climb on Q3 Results
Shares of PulteGroup Inc. (NYSE: PHM) gained sharply on Thursday after the homebuilder reported better-than-expected fiscal third quarter results. Higher selling prices and increased number of closing helped drive up the revenue even as new orders fell. For the latest period, average selling prices climbed 11% to $310,000. Home-building cost of revenue rose 18%. Home sales gross margin (after excluding impairments) widened to 22.5% from 21.6%. Non-GAAP earnings stood at 45 cents on revenue of $1.58 billion. Analysts had expected earnings of 36 cents on revenue of $1.46 billion.
Caterpillar Shares Plunge on Q3 Results and Full-Year Outlook
Mining and construction equipment maker, Caterpillar Inc. (NYSE: CAT) said on Wednesday that fiscal third quarter profit fell 44% as demand for mining equipment remained weak even as prices of construction equipment felt the downward pressure. The Company slashed its full-year earnings per share forecast to $5.50 from $6.50. In the last fiscal year, the company posted earnings of $8.48 a share. For the current fiscal year, the company expects revenue of $55 billion down from previous forecast of $56 billion to $58 billion.
WellPoint Q3 Earnings Comfortably Beats Estimate
Health Benefit Company, WellPoint Inc. (NYSE: WLP) reported on Wednesday that fiscal third quarter profit slid 5.1% as overall expenses outpaced revenue growth, offsetting gains in membership and lower medical costs. However, both core earnings and revenue topped analysts’ expectation. WellPoint reiterated its full-year revenue outlook and lifted its earnings projection by 40 cents. The Company now anticipates earnings of $8.40 a share. Stripping out onetime items such as acquisition related cost and gains arising from investments, the adjusted earnings came in at $2.10 a share. Total operating revenue jumped 17% to $17.73 billion. Analysts’ consensus estimate was for earnings of $1.82 a share on revenue of $17.62 billion.
Kimberly Clark Beats Q3 Estimates
Consumer-products company, Kimberly-Clark Corp. (NYSE: KMB) reported on Tuesday that fiscal third quarter income rose 5.6%, aided by higher margins and organic sales growth. Stripping out onetime items, Kimberly Clark posted earnings of $1.44 a share, up from $1.34 a share, in the year-ago period. Sales inched up 0.3% to $5.26 billion; however, organic sales climbed 5%. Analysts’ consensus estimate was for earnings of $1.40 a share on revenue of $5.23 billion. The Company also lifted its lower end of the full-year earnings guidance by five cents. The Company expects full-year earnings to be in the range of $5.65 to $5.75 a share.
Delta Airlines Tops Q3 Estimates
Shares of Delta Air Lines Inc. (NYSE: DAL) gained sharply on Tuesday after the airline company reported better-than-expected fiscal third quarter results, driven by higher passenger traffic and higher passenger unit revenue. For the latest period, Delta Air Lines posted net income of $1.37 billion or $1.59 a share compared to a profit of $1 billion or $1.23 a share, in the year-ago period. Stripping out onetime items such as fleet restructuring expenses, impacts of fuel hedging and other costs, the non-GAAP earnings came in at $1.41 a share. Revenue increased 5.7% to $10.49 billion. Analysts’ consensus estimate was for earnings of $1.36 a share on revenue of $10.47 billion, according to a data compiled by Thomson Reuters.