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Key to our ROE assumptions are the following: Strong Institutional Trading.
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Management noted that demand for cost accountants was picking up sharply, as a positive indicator on the economy.
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We also like MRO's relatively conservative planning assumptions:.
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However, the competitive pressure from the drug-eluting stents could be daunting.
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We have forecast NOV revenues to increase 27.8% to $9.0 billion and operating profit margins to improve 370 basis points from 15.8% to 19.5% from FY06 to FY07.
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We view APAC, TeleTech and West as Convergys's key competitors.
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In a takeover, we would model a price of at least $28 per share, and getting a few dollars more is within reach, depending on conditions.
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To more accurately reflect intersegment transactions as if they were third party transaction, the firm implemented a new business segment allocation methodology.
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SWK views the distant market share gap between itself and SnapOn as a significant disadvantage when dealing with customers in addition to securing distributors.
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Our secondary valuation method on EMR is based on total enterprise value (TEV) to sales.
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performance while overall market fundamentals are expected to remain subdued in the calendar third quarter.
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In each instance, the market overreacted to various external issues.
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Real Estate Department Investment Expected To Prevent Significant Slippage.
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Including these 2 planes GECAS only has 12 planes on the ground, an impressively low number given the state of the aviation industry..
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We believe these data provide a more accurate picture of housing market trends than OFHEO's home price change index which reflects sales initiated perhaps six or seven months ago when prices were still rising.
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It was number two in lending to low and moderate income households.
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Long term, we expect Ecolab's earnings growing 12-14% on 6-8% sales growth.
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In addition, its dividend yield of 2.4% is well above that of the market, and the stock has favorable low-beta, noncyclical characteristics.
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However, we have reduced our revenue estimate for the quarter to $624 million from $629 million.
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HP expects that margins will approach the high-end of its guided 13-15% range in 4Q.
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We are introducing a 2002 revenue and EPS number of $2.6 billion and $0.45, respectively..
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Looking ahead, we expect continued quarterly earnings momentum for the remainder of 2008 and annual earnings momentum for 2009 and 2010, as the full-impact of significantly higher priced contract settlements continues to flow through operating results..
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The problem facing PH is that its customers will not be investing in capacity expansion in N.A.
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SEGMENT RESULTS Utility operations: Utility earnings were $0.36 per share in the fourth quarter compared to $0.38 last year.
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In all, FII suffered $6 billion in net attrition or about 50% worse than forecast � though due to lumpy money markets.
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Risks to Our Rating Risks to the upside for our Neutral rating include: (1) other bidders emerge for all or part of Alberto-Culver, which we think is unlikely, (2) positive revised deal terms with Regis, and (3) Nexxus produces upside.
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There are a number of moving parts embedded within our estimate changes, but the most significant seem to be: (i) modest increases in total listings; (ii) substantive "take rate," or commission, increases; (ii) marketing expenditure adjustments focused on stimulating supply and demand; and (iv) product development and G&A cost adjustments to better meet the needs of buyers/sellers across the globe.
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We look for stand-alone telephony revenue to represent near $17 million in 2003 and believe the service could represent $526 million in sales for 2007.
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IGT (again) guided to $0.30 of EPS per quarter through F2006, explicitly targeting $1.20 in EPS for next year.
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The deal would add roughly 1.2MM subscribers bringing AT's total subscriber count close to 10MM.
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Intuit has a clean, debt-free, cash-rich balance sheet with nearly $1.3 billion in cash.
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So we got sport drinks (plastic bottles), bottled water (plastic bottles), flavored teas (glass), and most recently, water with stuff in it (plastic bottles).
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For 2Q05, we estimate operating margin expansion of 10 bps to 12.4% of sales from 12.3% last year.
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Guidance for pro forma operating earnings is $800-900M for the June quarter and $2.95-3.15B for FY09 (including the $748M in BRCM settlement charges).
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And although there are two more months left in the current quarter, we are comforted by Cisco's current trajectory and we are increasing our estimate from $7.83B to $7.90B vs. the street of $7.89B.
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Any significant dilutive acquisition could hamper near-term earnings growth.
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Driver fatigue was recently judged to be the number-one problem in commercial transportation.
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EPS declines from $0.15 to $0.12, $0.01 of which is the GAAP transition impact.
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During the last decade, AFL produced 15% average annual EPS growth, precurrency, which we find to be quite impressive.
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Our updated 2008 and 2009 FFO estimates are $3.56 (was $3.54) and $3.86 (was $3.80), respectively, implying year-over year growth of 5.1% and 9.0%.
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Additionally, new products round out the catalysts for growth..
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We are looking for a 45% efficiency ratio in 2006 and a further improvement of 250bps through 2007.
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We expect the consolidation of the pacemaker manufacturing into the Sylmar CA.
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Rick Rossit, Chairman and CEO will also assume the role as president.
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Agricultural Productivity had a 12% yr/yr sales increase to $779M.
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We are forecasting Comcast as a stand-alone business, which is not pro forma for the announced AT&T Broadband transactions.
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A Wireless Strategy--Does It Favor the Woolly Mammoth?.
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The recent rally in treasuries is a bigger positive for spreads than net interest margin..
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We believe that key risk factors that could impact share valuation include failure to meet our sales or EPS estimates, increases in labor or commodity costs, unexpected pressures on international operations, and food safety concerns.
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We attended Siebel's User Conference and Analyst day in Los Angeles for an update on current product and business trends.
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Appliances, Plastics, NBC, Industrial, Lighting) will likely remain weak in 2002, reflecting a protracted economic slowdown, with revenue declines of 0-5% and profit declines between 0-10%.
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Process Controls revenues on an underlying basis were up 2% vs. last year, to $837 million, and rose a solid 5% sequentially.
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Core expenses increased 2%, due to higher staff expenses (driven by higher results at BlackRock), equipment, and marketing.
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The actual price paid to acquire these drugs was often far less than the calculated 95% of AWP.
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It may be achieved via third party investment or an IPO.
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Additionally, Figure 7 provides a longer-term perspective of IBM's backlog growth over the last four years.
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Ford's share would increase to about 12.6% and in the U.S.; share would improve to about 25%..
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We are publishing these as "formal" estimates, but caution against the bugbear of false precision.
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The remodeled Florida stores (5-6% of total) must have comped down 20% or so to have cost one full point. That suggests a few lost points in other categories as a result of disruption or lost traffic due to a zero appliance assortment.
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Two other proposed transactions: the acquisition of Orangina and other related brands from Pernod-Ricard, and the acquisition of international beverage brands from Cadbury-Schweppes, have yet to close.
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Broadcast and Government includes air traffic control, radar tracking systems and satellites..
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Management indicated it continues to test and learn on service fees.
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The average present NAS installation for EMC is 1.5 terabytes (a thousand gigabytes) while that for Network Appliance is only 680 gigabytes roughly half as much (however, the average installation of the F800 series from Network Appliance today is more than 1 terabyte).
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However, on a per share basis the expense fell to $0.25 from $0.29 in 4Q01.
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Forest needs to additional $1B by 2014 to close the gap.
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3M hopes its investor meeting in New York on February 18th will help investors better understand the significance of its new product development program and how it, along with expanding the use of Six Sigma to accelerate revenue growth, should still ensure 3M's organic growth rate can reach 5%-7% in 2005.
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This will be the primary watch item for 2Q and beyond in 2006..
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Graft separates stent from fabric and has a polymer fill that enables lower profile delivery.
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Buy: A total return is anticipated in excess of the market's long-term historic rate (approximately 10%).
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In contrast, HIG, which cited irrational pricing in the group benefits arena, experienced a (20)% year-over-year decline in its 1Q03 group disability sales.
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Investment conclusion: Still cautious on SBUX shares as we enter FY09.
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Sixteen development and five exploration wells are planned in 2001..
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� Given the strength in Andrew results, a higher price could be justified -- though we remain very comfortable with ADCT shares' stand-alone at approximately 1x revs and 11x EPS with strong longterm prospects in fiber optics.
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In markets where school starts earlier, Target may set a little sooner..
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We Maintain Our Line Rating And $17 Price Target (1.4x projected tangible book)..
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Broadcom a Master at Chip IntegrationOne of Broadcom's core competencies is in mixed-signal (analog and digital) chip design.
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Specifically, Investor Services revenues reached $394 million in the third quarter, down 7.9% sequentially and 9.2% from a year ago.
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We estimate that Fox Family Worldwide generates about $150-$160 million in EBITDA and about $550 million in revenues.
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The measures that a dialysis chain might prefer (e.g., dialysis adequacy, haematrocrit, vascular access) are not those that an HMO receiving capitated payments from Medicare would like (e.g., hospitalization rates, quality of life, overall mortality)..
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Exiting Q305, the aggregate inventory days at telecom OEMs were 69 days, in the middle of its historical range.
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Conference call did little to convince us that longer-term opportunities have been identified to position RadioShack as a more compelling place to shop..
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In the Middle the Two Shall Meet -- DCS and PLC Suppliers Will Compete More Often in the Future Ask any DCS supplier who its largest competitors are, and management will quickly rattle off the names of a few other sizable companies (see Table 10).
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Some potential offsetting positives include (1) market share consolidation, (2) likely risk premiums/higher prices paid for use of brokers' capital, and (3) shifts in business mix.
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However the fact remains that we have essentially lost January to warm weather, and the net effect has been a collapse in East Coast margins.
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In our view, our European sales projections for the quarter could have upside.
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The joint venture plans to stockpile the carbonaceous ore mined at the Pipeline deposit until 2003, which will then be processed either at mill #1 or at the existing roaster, or both..
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Sales were up 14% in Fluid Processing (25% of sales) as sales in Microelectronics were robust, up 69% in local currency due to a continued recovery in the semiconductor market, in particular in the U.S.and Europe and to a lesser degree in Japan.
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We have tried to incorporate our cautiousness by modeling CCU radio revenue growth at 2% for 2005 vs. our 4% industry call.
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We believe eBay's guidance is generally conservative relative to operating trends.
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CFC stock trades at 1.8 times tangible book, which is also below the large mortgage focused thrifts, which trade at 2.3 times tangible book.
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As a result, our 4Q EPS estimate moves to $0.64 from $0.60.
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The bank has rolled out its Loan Solutions software into the FBF CT base and plans to complete the rollout to remaining Fleet offices by year-end.
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Industrial Packaging: The company has targeted $350 million in EBIT improvement for the industrial packaging segment by 2002 of which 26% is to come from merger benefits, 20% from margin/mix improvements, 27% from cost reduction and 27% from volume/productivity improvements.
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Management is guiding that the new combined entity called Wellpoint would have $50 million of cost synergies in 2004 and $175 million in 2005.
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AT&T and BellSouth | Cingular Reports Strong 3Q06 Exceeding Expectations on Most Measures.
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We continue to remain encouraged that customer inquiries/quoting activity has remained quite strong during the last couple of quarters.
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Our 2009 net revenue growth forecast drops from 27% to 23%.
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Indeed, the 37 store bulge in store openings planned for 1Q00 (an estimated 34 of them in the expensive New York metropolitan area) ought to mean EPS may only slightly better than equal to the terrific first quarter of this year.
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Excluding these gains, the Company would have met the consensus estimate of $0.62 per share..
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Furthermore, the clinical systems franchise has been a solid growth driver, led by ultrasound products, and limited exposure to reimbursement pressures provides nice diversification.
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