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We have maintained our $1.60 per share estimate, which compares to $1.55 per share in 2003, excluding non-recurring items.
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We look for free cash flow after dividends to total approximately $300 million in 2000.
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1. Reallocate investment opportunities to high growth portfolio opportunities - The company announced plans to shift the use of resources towards business lines with above average growth in order to drive growth in revenue.
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Suffice to say, $600 million of new products in nine weeks speaks loudly about EMC's capabilities.
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The company does not anticipate further deterioration, and expects medical cost trends and pricing to hold up at roughly current levels.
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If comp store performance deteriorates, this could also cause the stock to fall from current levels.
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An unsuccessful product, on the other hand, could cost a manufacturer $12 million in pretax losses (see Exhibit 3).
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Figure 4: Shell's European Refining Rationalisation....Lots to Do in 2000!.
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The challenge for Tiffany in fine jewelry is twofold: (1) support the bridal engagement category with non-solitaire rings (i.e., gemstone band rings) as consumer tastes shift away from the diamond solitaire category, and (2) introduce more modern styles into the fashion jewelry assortments without denigrating the tradi...
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Zetia's approval is critical to Merck plans for protecting Zocor's pending patent expiration in 2006, particularly with a fixed dose Zocor/Zetia combination drug now in Phase III clinical development.
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been a more aggressive user of guaranteed comp, in the recruitment of very highly compensated bankers and others, than many other firms.
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A summary of the call follows: � The company refuted some of the woollier rumors that floated through the market on Thursday and Friday, including the allegations that the FBI had raided the company's headquarters, that the company could trip its senior debt covenants, that the CEO had "stormed out of an investor ...
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The deposit is projected to produce an average of 190,000 ounces of gold annually to Placer Dome's account for six years beginning in 2002..
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comprised mostly of PBMS, increased from 6.7% a year ago and 6.1% in 3Q to 7.6% in 4Q.) During the fourth quarter, PBMS signed an agreement with the U.S. General Services Administration to make mail and document management services available to federal agencies.
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The commercial card business is segmented into three categories.
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However, management expects the receivables to turn around in the second half of the year in conjunction with the Sears MasterCard rollout.
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An incremental slowdown in mortgage refinance activity and a seasonal uptick in consumer spending beginning in August should complement the internal growth of maturing accounts.
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Earnings Expectations: We have lowered our 2005 EPS estimate to $4.27 from $4.36 due to a lower than expected net interest margin and higher than expected credit costs.
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As surveillance radar supplier for Wedgetail, NOC is expected to get about 25% of $1.3 billion contract value over next five years; and the win bolsters its prospects on upcoming foreign AEW competitions (Turkey, three unidentified others).
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McKesson reported fiscal 1Q06 EPS from operations of $0.55, which was $0.02 better than consensus.
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Internal Restructurings Resulted In Several Management Changes During 2002.
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IFRS accounting changes also likely to reduce pension credit, but no impact on cash earnings and funded status.
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A quick glance back into the evolution of the phone provides a nice example of this concept at work (see Figure 5).
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Offshore firms will have to: 1. Invest heavily in training and development of resources.
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Our previous analysis of EES (please see report dated May 10, 1999) described rising values and valuation based on larger contract sizes, longer contract lives, improving margins and lower expense ratios.
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We believe HAS deserves to trade at the high end of this range now given the continued momentum in its business..
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There are a number of additional products that can be used in conjunction with mail meters to create a mailing system -- for example, scales, folders, and openers (see Figure 10)..
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The stock looks poised to open at $47 and, given the magnitude of the miss, we see downside to roughly $45..
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In originations, Fannie Mae and Freddie Mac both developed automated systems to help lenders more quickly determine whether or not the loan will meet GSE credit standards.
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In Asia Pacific, pretax profits are expected to come in at $0.1-$0.2 billion, in line with the $0.2 billion earned in 2004.
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Finally, barring any acquisitions the dividend may receive a lift..
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Cost and cash flow control will be a key focus - As volume growth moderated through the quarter and into December, FDX intends to restrain spending to preserve both earnings and cash flow.
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In October 1999, DTE announced it would acquire MCN Energy, an overlapping natural gas distributor..
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From an operating point of view, the combined company becomes the largest Media Company globally, benefited by strong depth of management.
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Year to date free cash flow (inclusive of receipts from CNG) totals $4.05 billion.
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Freeport currently trades at 16x 2005E EPS, implying that it is effectively getting no premium for its gold exposure.
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As Pfizer experienced softness in the cholesterol reduction market and in drug sales overall late in 2005, these setbacks were more than the growth of the remaining portfolio could overcome, resulting in the lower revenue and earnings for 2005.
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This is split between Dental Tech, or Equipment, at $850 mm, and Dental Consumables, at $800 mm.
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Our new FY09 EPS estimate is $2.08, which is 4 cents below our previous estimate and 3 cents below the current consensus estimate.
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Pharmacy comps for December averaged 7.5% for the group versus Salomon Smith Barney's expectation of 8.5 to 9.5% growth and versus an LTM average of 10.5%.
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In the following three graphs, we have presented Inco's share price and the nickel price during and after the period of s strike.
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UNP finally put its Southern Pacific merger-related problems behind it, and showed a 300% improvement in operating income over the year-earlier period.
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Our proprietary store survey of 6 markets revealed a distinct improvement in customer service versus last year.
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Management stated that the 5.3% segment sales decline was hurt by 200 to 300 basis points by retail inventory reductions, but that still translates into 2% to 3% consumer takeaway declines.
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DC: Spending, Lower Investment Income Hold Back Earnings; Soft Net Flows The defined contribution segment earned $43.1 million in 4Q07, down 3.4% from 4Q06 and below our $47.5 million estimate.
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� The Litter/Food/Charcoal segment of Specialty volumes declined 2% on lower salad/lettuce shipments and a volume drag following the October price increases in litter (+5%).
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During the quarter, SunTrust grew its earning assets by 3.4% on a sequential quarterly basis.
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By year-end 2005, there could be at least three new players Smith & Nephew, J&J/DePuy, and Biomet--in the ceramic market.
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However, we still expect gross margin expansion in 2004 (+60bp) given the benefit of a 3% price increase (at consolidated level) realized in mid 2003 and improving brand, packaging, and channel mix..
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Oracle is a major player in the technology spacewith a huge installed base,an enviable customer list, a strong managementteam, and a large, predictable servicebusiness.
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Underestimating Profit Potential From APL - We have stated that the APL agreement with Fujitsu will contribute to a lower margin profile for Sun.
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The company is organized into four business segments: Semiconductor Test Products, Connection Systems, Circuit Board Test and Inspection, and other test products.
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Dividend appears safe, more buybacks likely in late 2007.
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The impact of these hedges will reverse throughout the year.
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Both metrics are at the top of the historical range.
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LLTC has 2 things going for it: 1. Solid earnings.
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Based on our conversations with company sources, we believe it is likely that management continues to increase consumer pricing for at least another year..
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We continue to believe that GM offers a leveraged way to benefit from a U.S. economic recovery.
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Higher G&A expense in 2007 weighs on our numbers, and our FFO estimates goes to $2.45 from $2.50.
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The increase reflects a combination of a 10% increase in policies in force, rate increases of 5%, and a change in business mix , which featured more premiums in riskier classes and in higher-cost states.
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CCE has met or exceeded its forecasted growth of cash operating profit over the last five years.
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Vendors such as Microsoft and IBM are integrating testing, performance, and project management tools into their development platforms, potentially reducing the need for third-party testing tools from MERQ.
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There is the normal integration risk associated with recent acquisitions by Lennar and KB Home.
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Optical component revenues were $136.1 million, up 9.6% yoy and 4.9% qoq, with a >1.0 book-bill ratio.
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This is through a combination of 10% sales growth and 3%-4% growth in renewal premiums.
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Accuray (ARAY, nr) has designed a robotic system dedicated to stereotactic radiosurgery.
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Alcoa is exposed both to the fortunes of the aluminium price and to the health of the US economy in particular, but the world in general.
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Operating margins of 10.1% trailed our 10.1% estimate due to a 170 basis point penalty from EDO acquisition accounting costs exceeding our estimate and a modest revenue mix margin headwind.
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Multi-systemic diseases therefore have multiple call points including metabolic or genetic specialists.
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EP indicated that it produced 280 Billion Cubic Feet of gas Equivalent (BCFE) in 2005 or an average of 767 Million Cubic Feet per day (MMCFE/day).
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They have already received State Corporation Commission approval and are expected to come online during the summer 2008.
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The 1,000 cuts represent about 8% of total worldwide professional employees of about 12,000 and about 3% of the company's total worldwide employees of about 31,000.
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Mercury Interactive, headquartered in Sunnyvale, California, and founded in 1989, is the number one player in the $600 million distributed software automated testing tool market with a roughly 50% share.
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Margin performance driven by product mix, FEED awards and CFM pass through.
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Over the last 5 years the stock has averaged a 116% premium to the S&P 500 and we believe a premium is warranted given 3M's strong balance sheet, cash flow and ROIC.
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Fee revenues increased 7.4% with recent divestitures cutting into the growth generated by the asset management business.
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Unit shipments of microprocessors were up sequentially, with sales of processors into distribution setting a new record, with sales up 13%.
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Outlook for Q3 is for 7% growth at the mid-point and suggests normal seasonality.
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The Company announced that the SEC has denied its appeal for a stay of Nasdaq's delist order.
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in just a few years), the company should hold a leading position in this key market within the next few years, in our opinion.
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This is in line with management guidance for this business.
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Cisco determined that Andiamo represents a variable interest entity under accounting rule FIN 46.
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Management suggested on the conference call that Publishing should see healthy fourth quarter advertising growth with core magazines likely to be in the low to mid-single digits and developing magazines seeing significantly higher growth.
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However, Dillard's still continues to lag its department store peers, and until Dillard's can show consistent operating improvement (including improved inventory management) over a longer period of time, we maintain our Hold rating.
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Adding all of this together, we now believe that the consensus estimate for Hershey's revenue in 2008 $5.04B is too aggressive.
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International Engineered Products Revenues rose 22.1%, from $332.0 million to $405.5 million in the first quarter, a result of a 5% increase in base business, 2% increase from acquisitions, and a 15% positive impact from currency translation.
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The company has also articulated a desire to stabilize the operating margin of the company at roughly 25.0%, ending a three-year period of uncertainty regarding the direction of profitability.
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Approximately two-thirds of these loans have LTVs below 60%.
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However, for a better comparison between management's and UBS/Street estimates, we have adjusted Sempra's 3Q03 and 2003 earnings guidance to exclude one-time items as shown in Tables 1 and 2.
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Interestingly, trading-related income was down despite the build-up of related assets, at least partially influenced by getting caught by widening credit spreads.
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Our FY06 EPS estimate is substantially below consensus due to our expectation that 2006 is a down year for the chip industry..
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A good example is the Carmike credit which SunTrust eventually sold at $0.88 even though the pricing at one point had gotten as low as $0.70.
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With improved pricing during 2003 and 2004, there has been a corresponding increase of capital spending from DRAM suppliers to add capacity.
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With the recovery in the stock to over $40, we are getting concerned again that the market may be applying above trend multiples to Best Buy.
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Revenue for the quarter was also in-line with the range of estimates ($405-$415 million) provided by management, but was slightly below our $415 million revenue estimate.
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Compensation expense, net of tax, was $42mn or $0.30 per share.
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Kmart continues to make progress in expense control, store presentation, in-stock position and customer service.
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This marks the second month in a row of softline relative outperformance.
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GAMESTOP---RAISING ESTIMATES AND PRICE TARGET The Call: We are raising our estimates and price target for GameStop driven by: a) Stronger-than-expected near term trends; b) Greater confidence in the company's ability to grow its store base and; c) A better understanding of the operating margin expansion potential.
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Therefore they hope that the even greater expenditure in Q4 will lift their total market share back to c50%.
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