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722800.0
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2015-05-22 00:00:00 UTC
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Midday Update: Stocks Give Back Early Gains After Larger-Than-Expected Rise in Core CPI Last Month
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https://www.nasdaq.com/articles/midday-update-stocks-give-back-early-gains-after-larger-expected-rise-core-cpi-last-month
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Stocks headed south Friday following an above-consensus rise last month in the core-CPI indicator, with the rising inflationary pressures seen as providing the Federal Reserve with the ammunition it needs to soon begin raising interest rates.
All three benchmark indices recently were in holding patterns - with the Dow Jones Industrial Average and the S&P 500 inching lower while the Nasdaq Composite index just above its break-even mark - ahead of Fed Chair Janet Yellen presenting her economic outlook for the country in a 1 p.m. ET speech before the Providence Chamber of Commerce.
Stock futures were cautiously higher ahead of this morning's data releases, buoyed by firm overseas markets and expectations for central banks around the world to maintain accommodative monetary policy actions. Mostly upbeat corporate earnings from John Deere ( DE ) and Hewlett Packard ( HPQ ) also contributed to the rising tone before equities surrendered those minimal gains after the CPI data
Rising healthcare and housing costs elevated consumer prices during April as the nominal CPI increased an as-expected 0.1%. Excluding fuel and food costs, consumer prices climbed 0.3%, topping expectations for a benign 0.1% increase and marking the largest monthly gain in more than two years. Investors responded by taking stocks slightly lower, believing the higher-than-expected inflation data increses the likelihood for the Fed to raise interest rates in September.
European markets finished mixed with EU-zone markets drifting lower with the U.S. despite a beat by the German Ifo business climate index. The FTSE-100 scratched out a modest gain on strength in Vodafone ( VOD ) shares amid speculation that Liberty Global ( LBTYA ) may make a bid for the mobile services company.
Crude oil was down 92 cents to $59.79 per barrel. Natural gas was down 4 cents to $2.95 per 1 million BTU. Gold was up $1.60 to $1,205.90 per ounce, while silver was up a penny to $17.14 per ounce. Copper was down 4 cents to $2.80 per pound.
Among energy ETFs, the United States Oil Fund was down 1.54% to $20.19 with the United States Natural Gas Fund was down 1.78% to $14.31. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was unchanged at 21.56 while SPDR Gold Shares was up 0.01% to $115.70. The iShares Silver Trust was down 0.03% to $16.38.
Here's where the U.S. markets stood at mid-day:
NYSE Composite Index down 33.66 (-0.30%) to 11,206.00
Dow Jones Industrial Average down 32.10 (-0.18%) to 18,253.64
S&P 500 down 1.26 (-0.06%) to 2,129.56
Nasdaq Composite Index up 6.89 (+0.14%) to 5,097.68
GLOBAL SENTIMENT
Nikkei 225 Index up 0.30%
Hang Seng Index up 1.70%
Shanghai China Composite Index up 2.83%
FTSE 100 Index up 0.26%
CAC 40 down 0.07%
DAX down 0.42%
NYSE SECTOR INDICES
NYSE Energy Sector Index down 0.67%
NYSE Financial Sector Index down 0.10%
NYSE Healthcare Sector Index down 0.28%
UPSIDE MOVERS
(+) LONG (+12.54%) Ctrip.com ( CTRP ) acquired 37.6% stake
(+) EROC (+12.24%) To be acquired by Vanguard for $464 mln plus debt
(+) VBLT (+7.92%) Roth Capital initiated coverage with buy rating, $13 PT
DOWNSIDE MOVERS
(-) OTIC (-21.74%) Downgraded to neutral at JPMorgan, PT cut $12 to $30
(-) VGGL (-20.71%) Priced its underwritten public offering of 3.6 mln shares at $2.50 per share
(-) ARO (-13.13%) Reported wider-than-expected Q1 loss, revenue drops 20%
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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All three benchmark indices recently were in holding patterns - with the Dow Jones Industrial Average and the S&P 500 inching lower while the Nasdaq Composite index just above its break-even mark - ahead of Fed Chair Janet Yellen presenting her economic outlook for the country in a 1 p.m. Investors responded by taking stocks slightly lower, believing the higher-than-expected inflation data increses the likelihood for the Fed to raise interest rates in September. Stocks headed south Friday following an above-consensus rise last month in the core-CPI indicator, with the rising inflationary pressures seen as providing the Federal Reserve with the ammunition it needs to soon begin raising interest rates.
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Mostly upbeat corporate earnings from John Deere ( DE ) and Hewlett Packard ( HPQ ) also contributed to the rising tone before equities surrendered those minimal gains after the CPI data Rising healthcare and housing costs elevated consumer prices during April as the nominal CPI increased an as-expected 0.1%. NYSE Energy Sector Index down 0.67% NYSE Financial Sector Index down 0.10% NYSE Healthcare Sector Index down 0.28% Stocks headed south Friday following an above-consensus rise last month in the core-CPI indicator, with the rising inflationary pressures seen as providing the Federal Reserve with the ammunition it needs to soon begin raising interest rates.
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Stocks headed south Friday following an above-consensus rise last month in the core-CPI indicator, with the rising inflationary pressures seen as providing the Federal Reserve with the ammunition it needs to soon begin raising interest rates. NYSE Energy Sector Index down 0.67% NYSE Financial Sector Index down 0.10% NYSE Healthcare Sector Index down 0.28% (-) OTIC (-21.74%) Downgraded to neutral at JPMorgan, PT cut $12 to $30 (-) VGGL (-20.71%) Priced its underwritten public offering of 3.6 mln shares at $2.50 per share (-) ARO (-13.13%) Reported wider-than-expected Q1 loss, revenue drops 20% The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks headed south Friday following an above-consensus rise last month in the core-CPI indicator, with the rising inflationary pressures seen as providing the Federal Reserve with the ammunition it needs to soon begin raising interest rates. Here's where the U.S. markets stood at mid-day: NYSE Composite Index down 33.66 (-0.30%) to 11,206.00 Dow Jones Industrial Average down 32.10 (-0.18%) to 18,253.64 S&P 500 down 1.26 (-0.06%) to 2,129.56 Nasdaq Composite Index up 6.89 (+0.14%) to 5,097.68 All three benchmark indices recently were in holding patterns - with the Dow Jones Industrial Average and the S&P 500 inching lower while the Nasdaq Composite index just above its break-even mark - ahead of Fed Chair Janet Yellen presenting her economic outlook for the country in a 1 p.m.
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38755eec-bb2f-4f61-af9c-b3021451a702
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722801.0
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2015-05-22 00:00:00 UTC
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Deere & Company (DE) Q2 Earnings & Revenues Beat Estimates - Tale of the Tape
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DE
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https://www.nasdaq.com/articles/deere-company-de-q2-earnings-revenues-beat-estimates-tale-of-the-tape-2015-05-22
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nan
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nan
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Deere & Company (DE) is the world's leading manufacturer of agricultural machinery with a market capitalization of $30.4 billion. It also produces a variety of commercial and consumer equipment; and a broad range of construction and forestry equipment. Deere's financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations.
The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices take their toll on the U.S farm income. Deere has thus resorted to production cutbacks, lay-offs, along with seasonal plant shutdowns to remain profitable in the wake of lower sales. On the contrary, Construction & Forestry equipment sales are expected to grow as the leading indicators for construction activity continue to trend up, boding well for Deere.
Investors have thus been eagerly awaiting the company's latest earnings report. Let's have a quick look at the Illinois-based company's second quarter fiscal 2015 earnings release.
Estimate Trend & Surprise History
Investors should note that earnings estimate for Deere for fiscal 2016 and 2017 has been portraying a downtrend over the past week and month. Deere has outpaced the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of around 16.89%.
Earnings Ahead of Estimates
Deere posted in earnings of $2.03 per share, outpacing the Zacks Consensus Estimate of $1.57 by a wide margin of 29%. Excellent business lineup helped offset slowdown in global farm economy.
Revenues Came Ahead
Deere also beat on revenues. It reported second quarter revenues of $8.171 million, surpassing the Zacks Consensus Estimate of $7.601 million.
Key Stats/Developments to Note
Deere projects total equipment sales to decline 24% year over year in fiscal 2015, including a negative currency-translation effect of about 5%. Lower commodity prices and falling farm incomes are putting pressure on demand for agricultural machinery, especially for larger models. Deere expects to remain solidly profitable in 2015 and projects net income of around $1.9 billion, up its previous guidance of $1.8 billion.
Zacks Rank
Currently, Deere has a Zacks Rank #4 (Sell) depicting the weak demand for agricultural equipment. However, this could change following Deere's earnings report which was just released.
Market Reaction
Deere shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Deere earnings report later!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
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DEERE & CO (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices take their toll on the U.S farm income. Deere has thus resorted to production cutbacks, lay-offs, along with seasonal plant shutdowns to remain profitable in the wake of lower sales. Lower commodity prices and falling farm incomes are putting pressure on demand for agricultural machinery, especially for larger models.
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Earnings Ahead of Estimates Deere posted in earnings of $2.03 per share, outpacing the Zacks Consensus Estimate of $1.57 by a wide margin of 29%. Deere & Company (DE) is the world's leading manufacturer of agricultural machinery with a market capitalization of $30.4 billion. Deere's financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations.
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Deere's financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations. Earnings Ahead of Estimates Deere posted in earnings of $2.03 per share, outpacing the Zacks Consensus Estimate of $1.57 by a wide margin of 29%. Zacks Rank Currently, Deere has a Zacks Rank #4 (Sell) depicting the weak demand for agricultural equipment.
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The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices take their toll on the U.S farm income. However, this could change following Deere's earnings report which was just released. Deere & Company (DE) is the world's leading manufacturer of agricultural machinery with a market capitalization of $30.4 billion.
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06d834d4-fa63-4fb0-a0e6-493011058ac4
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722802.0
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2015-05-22 00:00:00 UTC
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Close Update: Stocks Surrender Gains Tied to Yellen's Comments, But Close the Week Near Record Highs
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DE
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https://www.nasdaq.com/articles/close-update-stocks-surrender-gains-tied-yellens-comments-close-week-near-record-highs
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nan
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Stocks closed lower on Friday as inflation data coupled with comments from Fed Chair Janet Yellen continued to indicate higher U.S. rates this fall. Led by losses in component stocks Boeing ( BA ) and Microsoft ( MSFT ) the Dow Jones Industrial Average underperformed the other benchmarks and closed the week lower by just 40 points. The S&P 500 and Nasdaq, however, squeezed out a razor-thin gain for the week with the S&P up for 3 straight weeks and the Nasdaq higher for the second consecutive week.
Ahead of this morning's data, stock futures were cautiously higher, buoyed by firm overseas markets and expectations for global central banks to remain accommodative. Mostly upbeat corporate earnings from John Deere ( DE ) and Hewlett Packard ( HPQ ) also contributed to the firmer tone before equities surrendered their minimal gains after the CPI data.
The Labor Department reported that consumer prices increased by an as-expected 0.1% last month. But stripping out an 8.4% decline in fuel oil prices , and consumer prices increased 0.3%, the largest one-month increase since 2013. Equities traded lower, but were briefly resuscitated by comments from Fed Chair Janet Yellen who continued to endorse higher rates only if the labor market and inflation are closer to Fed targets. But into the final hour of trade, the Yellen-bump ran out of steam and all three major indices drifted back into the red.
Next week's abbreviated week includes data on durable goods orders, GDP, consumer confidence and housing market data.
Here's where the markets stood at the close:
US MARKETS
Dow Jones Industrial Index was down 53.72 points (-0.29%)
S&P 500 was down 4.76 points (-0.22%)
Nasdaq Composite Index was down 1.43 points (-0.03%)
GLOBAL SENTIMENT
FTSE 100 was up 0.26%
Nikkei 225 was up 0.30%
Hang Seng Index was up 1.70%
Shanghai China Composite Index was up 2.83%
UPSIDE MOVERS
(+) RWLK (+20.71%) Upgraded to buy at Canaccord, PT raised $6 to $17
(+) EROC (+11.84%) To be acquired by Vanguard for $464 mln plus debt
(+) LONG (+8.67%) Ctrip.com ( CTRP ) acquired 37.6% stake
DOWNSIDE MOVERS
(-) VGGL (-20.39%) Priced its underwritten public offering of 3.6 mln shares at $2.50 per share
(-) OTIC (-19.94%) Downgraded to neutral at JPMorgan, PT cut $12 to $30
(-) ARO (-15.44%) Reported wider-than-expected Q1 loss, revenue drops 20%
(-) JMEI (-9.38%) Q1 EPS beats analysts estimates, but declines from year ago period
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Led by losses in component stocks Boeing ( BA ) and Microsoft ( MSFT ) the Dow Jones Industrial Average underperformed the other benchmarks and closed the week lower by just 40 points. Mostly upbeat corporate earnings from John Deere ( DE ) and Hewlett Packard ( HPQ ) also contributed to the firmer tone before equities surrendered their minimal gains after the CPI data. The Labor Department reported that consumer prices increased by an as-expected 0.1% last month.
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Equities traded lower, but were briefly resuscitated by comments from Fed Chair Janet Yellen who continued to endorse higher rates only if the labor market and inflation are closer to Fed targets. (-) VGGL (-20.39%) Priced its underwritten public offering of 3.6 mln shares at $2.50 per share (-) OTIC (-19.94%) Downgraded to neutral at JPMorgan, PT cut $12 to $30 (-) ARO (-15.44%) Reported wider-than-expected Q1 loss, revenue drops 20% (-) JMEI (-9.38%) Q1 EPS beats analysts estimates, but declines from year ago period The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Led by losses in component stocks Boeing ( BA ) and Microsoft ( MSFT ) the Dow Jones Industrial Average underperformed the other benchmarks and closed the week lower by just 40 points.
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Equities traded lower, but were briefly resuscitated by comments from Fed Chair Janet Yellen who continued to endorse higher rates only if the labor market and inflation are closer to Fed targets. (-) VGGL (-20.39%) Priced its underwritten public offering of 3.6 mln shares at $2.50 per share (-) OTIC (-19.94%) Downgraded to neutral at JPMorgan, PT cut $12 to $30 (-) ARO (-15.44%) Reported wider-than-expected Q1 loss, revenue drops 20% (-) JMEI (-9.38%) Q1 EPS beats analysts estimates, but declines from year ago period The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Led by losses in component stocks Boeing ( BA ) and Microsoft ( MSFT ) the Dow Jones Industrial Average underperformed the other benchmarks and closed the week lower by just 40 points.
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Led by losses in component stocks Boeing ( BA ) and Microsoft ( MSFT ) the Dow Jones Industrial Average underperformed the other benchmarks and closed the week lower by just 40 points. Mostly upbeat corporate earnings from John Deere ( DE ) and Hewlett Packard ( HPQ ) also contributed to the firmer tone before equities surrendered their minimal gains after the CPI data. The Labor Department reported that consumer prices increased by an as-expected 0.1% last month.
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4644aeca-70c3-4865-8283-7d5fb734ff55
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722803.0
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2015-05-21 00:00:00 UTC
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Pre-Market Earnings Report for May 22, 2015 : DE, CPB, FL, MENT, ANN, HIBB, TNP
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-may-22-2015-de-cpb-fl-ment-ann-hibb-tnp-2015-05-21
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nan
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The following companies are expected to report earnings prior to market open on 05/22/2015. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company ( DE ) is reporting for the quarter ending April 30, 2015. The farm machinery company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.57. This value represents a 40.75% decrease compared to the same quarter last year. In the past year DE has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 34.94%. The "days to cover" for this stock exceeds 13 days. Zacks Investment Research reports that the 2015 Price to Earnings ratio for DE is 16.76 vs. an industry ratio of 11.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Campbell Soup Company ( CPB ) is reporting for the quarter ending April 30, 2015. The food company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.51. This value represents a 17.74% decrease compared to the same quarter last year. In the past year CPB has met analyst expectations once and beat the expectations the other three quarters. The "days to cover" for this stock exceeds 12 days. Zacks Investment Research reports that the 2015 Price to Earnings ratio for CPB is 19.87 vs. an industry ratio of 10.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Foot Locker, Inc. ( FL ) is reporting for the quarter ending April 30, 2015. The retail (shoe) company's consensus earnings per share forecast from the 12 analysts that follow the stock is $1.22. This value represents a 9.91% increase compared to the same quarter last year. In the past year FL has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 11.11%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for FL is 16.16 vs. an industry ratio of 14.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Mentor Graphics Corporation ( MENT ) is reporting for the quarter ending April 30, 2015. The computer company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.08. This value represents a 33.33% increase compared to the same quarter last year. In the past year MENT has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for MENT is 17.58 vs. an industry ratio of 94.70.
ANN INC. ( ANN ) is reporting for the quarter ending April 30, 2015. The retail (shoe) company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.33. This value represents a no change for the same quarter last year. ANN missed the consensus earnings per share in the 2nd calendar quarter of 2014 by -2.94%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for ANN is 22.73 vs. an industry ratio of 14.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Hibbett Sports, Inc. ( HIBB ) is reporting for the quarter ending April 30, 2015. The retail company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.14. This value represents a 4.59% increase compared to the same quarter last year. HIBB missed the consensus earnings per share in the 2nd calendar quarter of 2014 by -0.91%. The "days to cover" for this stock exceeds 13 days. Zacks Investment Research reports that the 2016 Price to Earnings ratio for HIBB is 15.04 vs. an industry ratio of 20.40.
Tsakos Energy Navigation Ltd ( TNP ) is reporting for the quarter ending March 31, 2015. The shipping company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.36. This value represents a 89.47% increase compared to the same quarter last year. In the past year TNP has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2015 Price to Earnings ratio for TNP is 8.10 vs. an industry ratio of 5.50, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company ( DE ) is reporting for the quarter ending April 30, 2015. This value represents a 40.75% decrease compared to the same quarter last year. In the past year DE has beat the expectations every quarter.
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Zacks Investment Research reports that the 2015 Price to Earnings ratio for DE is 16.76 vs. an industry ratio of 11.40, implying that they will have a higher earnings growth than their competitors in the same industry. Deere & Company ( DE ) is reporting for the quarter ending April 30, 2015. This value represents a 40.75% decrease compared to the same quarter last year.
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Zacks Investment Research reports that the 2015 Price to Earnings ratio for DE is 16.76 vs. an industry ratio of 11.40, implying that they will have a higher earnings growth than their competitors in the same industry. Deere & Company ( DE ) is reporting for the quarter ending April 30, 2015. This value represents a 40.75% decrease compared to the same quarter last year.
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In the past year DE has beat the expectations every quarter. Deere & Company ( DE ) is reporting for the quarter ending April 30, 2015. This value represents a 40.75% decrease compared to the same quarter last year.
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7cdec19e-f555-4d18-9506-5409132a3250
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722804.0
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2015-05-20 00:00:00 UTC
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Will Deere & Company (DE) Miss Earnings Estimates in Q2? - Analyst Blog
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DE
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https://www.nasdaq.com/articles/will-deere-company-de-miss-earnings-estimates-in-q2-analyst-blog-2015-05-20
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nan
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nan
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The agricultural equipment maker, Deere & CompanyDE is scheduled to report second-quarter fiscal 2015 results on May 22, before the market opens.
In the last quarter, the company had delivered a positive earnings surprise of 34.94%. Moreover, the company's earnings have surpassed the Zacks Consensus Estimate in each of the last four quarters, leading to an average beat of 16.89%. Let's see how things are shaping up for this announcement.
Factors Likely to Influence Q2
For the second quarter of 2015, Deere projected a 19% decline in sales compared with the year-ago period mainly because of falling crop prices, such as corn and soybean, which will affect farm income. Lower farm income will restrain farmers from purchasing new agricultural equipment, thereby impacting Deere's performance.
However, Deere has been persistently shedding its non-core assets in order to become a more focused and profitable company and completed the sale of its irrigation unit and a majority interest in its landscape operations.
Deere announced a share repurchase program in Dec 2013, which authorizes it to buy up to $8,000 million shares. At the end of the first quarter, $5,600 million shares were remaining to be purchased under the plan. Moreover, Deere will benefit from improvement in the non-residential construction sector, share repurchases as well as its cost cutting initiatives.
Earnings Whispers
Our proven model does not conclusively show that Deere is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as elaborated below:
Zacks ESP: Deere has an Earnings ESP of +4.46%. This is because the Most Accurate estimate stands at $1.64, whereas the Zacks Consensus Estimate is pegged lower at $1.57.
Zacks Rank: Deere has a Zacks Rank #4 (Sell).
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
Albany International Corp. AIN , with an Earnings ESP of +10.87% and a Zacks Rank #2.
Global Brass and Copper Holdings, Inc. BRSS , with an Earnings ESP of +5.77% and a Zacks Rank #2.
Barnes Group Inc. B , with an Earnings ESP of +3.28% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
BARNES GRP (B): Free Stock Analysis Report
ALBANY INTL A (AIN): Free Stock Analysis Report
GLOBAL B&C HLD (BRSS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The agricultural equipment maker, Deere & CompanyDE is scheduled to report second-quarter fiscal 2015 results on May 22, before the market opens. Factors Likely to Influence Q2 For the second quarter of 2015, Deere projected a 19% decline in sales compared with the year-ago period mainly because of falling crop prices, such as corn and soybean, which will affect farm income. However, Deere has been persistently shedding its non-core assets in order to become a more focused and profitable company and completed the sale of its irrigation unit and a majority interest in its landscape operations.
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Click to get this free report DEERE & CO (DE): Free Stock Analysis Report BARNES GRP (B): Free Stock Analysis Report ALBANY INTL A (AIN): Free Stock Analysis Report GLOBAL B&C HLD (BRSS): Free Stock Analysis Report To read this article on Zacks.com click here. The agricultural equipment maker, Deere & CompanyDE is scheduled to report second-quarter fiscal 2015 results on May 22, before the market opens. In the last quarter, the company had delivered a positive earnings surprise of 34.94%.
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Zacks Rank: Deere has a Zacks Rank #4 (Sell). Click to get this free report DEERE & CO (DE): Free Stock Analysis Report BARNES GRP (B): Free Stock Analysis Report ALBANY INTL A (AIN): Free Stock Analysis Report GLOBAL B&C HLD (BRSS): Free Stock Analysis Report To read this article on Zacks.com click here. The agricultural equipment maker, Deere & CompanyDE is scheduled to report second-quarter fiscal 2015 results on May 22, before the market opens.
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Lower farm income will restrain farmers from purchasing new agricultural equipment, thereby impacting Deere's performance. Deere announced a share repurchase program in Dec 2013, which authorizes it to buy up to $8,000 million shares. The agricultural equipment maker, Deere & CompanyDE is scheduled to report second-quarter fiscal 2015 results on May 22, before the market opens.
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722805.0
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2015-05-18 00:00:00 UTC
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Stock Futures Today Slip 24 Points on SYY, POM, and BRK.A News
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DE
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https://www.nasdaq.com/articles/stock-futures-today-slip-24-points-syy-pom-and-brka-news-2015-05-18
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MoneyMorning.com Report - For May 18, 2015, here is the top stock market news, pre-market movers, and stocks to watch , and stock futures today ...
Stock Futures Today
U.S. stock futures
for Monday, May 18, forecast a decline of 23 points from Friday's close. The dip comes against a big week of speeches from Members of the Fed Open Market Committee and a number of earnings reports from big-box retailers, who are coming off a weak March-ending quarter due to supply chain problems and harsh winter weather.
The DJIA Index limped across the finish on Friday, adding 20 points, after mixed economic data suggested that the U.S. economy is not growing as quickly as economists had anticipated. Microsoft Corp. (Nasdaq: MSFT) was the largest contributor to the S&P 500's decline on Friday by falling 1.3%.
Top News in the Stock Market Today
The Stock Market Today: Fresh off a new S&P 500 record high, investors will turn their attentions to two speeches by Chicago Federal Reserve Bank President Charles Evans this week. One is by Federal Reserve Chair Janet Yellen on Friday, and Wednesday's release of the FOMC meeting minutes from April. Investors are seeking insight from the divergent opinions among Fed members on when the central bank might raise interest rates.
Looking Abroad: In China this morning, April housing price data fell for the eighth straight month, renewing concerns on whether or not recent interest rate cuts may help abate a hard landing in the nation's property market. Meanwhile, the Bank of Japan released March industrial production data, and the nation's continued efforts to weaken its currency have not had a dramatic effect on improving exports.
Earnings in Focus: Companies reporting earnings on Monday include JA Solar Holdings Co. Ltd . (Nadsaq: JASO), Urban Outfitters Inc. (Nasdaq: URBN), and Agilent Technologies Inc. (NYSE: A).
Oil Prices Today: Oil prices look to continue their rise after the sector just completed its ninth-straight week of gains. Geopolitical concerns in Iraq and Yemen were pushing prices higher. WTI crude futures for June were up 1.4% this morning at $60.53 per barrel. Meanwhile, Brent oil was up nearly 0.5% at $67.33 per barrel.
Pre-Market Movers in the Stock Market Today: JASO, POM, EXC, HTZ
Pre-Market Movers 1, JASO: Shares of JA Solar Holding (Nasdaq: JASO) are down more than 2% even after the company released positive March-ending earnings. As our energy expert Dr. Kent Moors explains, the decline of oil prices from record highs in June 2014 hasn't affected the renewable energy sector as much as experts previous thought. And it all comes down to one simple metric that could make investors wealthy...
Pre-Market Movers 2,POM: Shares of Pepco Holdings Inc. ( POM ) and Exelon Corp. ( EXC ) were on the move this morning on news that the State of Maryland has formally approved their $6.9 billion merger. The deal was held up by critics in the Delmarva region who argued that the consolidation of the two companies would lead to higher electricity rates for customers.
Pre-Market Movers 3, HTZ: Shares of Hertz Global Holdings Inc . ( HTZ ) continue to move on news that the car-rental agency plans to hike its fees. In June, the company said it will boost U.S. airport retail car-rental fees by $5 per day and $20 a week. At non-airport locations it will increase rates by $3 per day and $10 a week.
Stocks to Watch Today: SYS, DE, JPM, BRK.A, IBM, WFC, KO, AXP
Stocks to Watch No. 1, SYS: U.S. food distributor SYSCO Corp. ( SYY ) could face a $1 billion bill if the company's proposed merger with private rival U.S. Foods fails to obtain regulatory approval over antitrust concerns. A combination of legal, integration, and termination fees would nearly top ten figures, but the addition of capital costs pushed it over the top. Before its formal announcement, the deal seemed highly risky due to its nature of combining the two largest companies in the food distribution industry, a sector that already lacks significant competition.
Stocks to Watch No.2, DE: Shares of Deere & Co. ( DE ) are in focus as the company plans to report earnings on Friday. Last Thursday, J.P. Morgan Chase & Co. (JPM) downgraded DE shares over new concerns regarding financing in the agricultural sector. The investment bank expects a credit crunch in the coming year that could affect investment in the agricultural technology industry.
Stocks to Watch No. 3, BRK.A: It's Warren Buffett's market, and we're just investing in it. On Friday, the iconic investor's Berkshire Hathaway Inc. (NYSE: BRK.A) announced in a 13-F that it has hiked its stakes in International Business Machines (IBM), Wells Fargo Co. (WFC) and Visa Inc. (V), while slashing its holdings in Mastercard Inc. (M), Charter Communications Inc. (Nasdaq: CHTR), and Viacom Inc. (Nadsaq: VIAB). Despite IBM's recent struggles, Buffett says he's standing behind Big Blue as part of his "Big Four" investments that also includes Wells Fargo, The Coca Cola Co. (KO), and American Express Co. (AXP).
Today's U.S. Economic Calendar (all times EST)
Housing Market Index at 10 a.m.
4-Week Bill Announcement at 11 a.m.
3-Month Bill Auction at 11:30 a.m.
6-Month Bill Auction at 11:30 a.m.
What Investors Must Know This Week
How to Grab Profits During a Stock Market Crash
M&A: Invest in the Next Tech Takeover Targets
How to Profit from the Keystone Pipeline Debate
To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free . Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. MoneyMorning.com Report - For May 18, 2015, here is the top stock market news, pre-market movers, and stocks to watch , and stock futures today ... Stock Futures Today U.S. stock futures for Monday, May 18, forecast a decline of 23 points from Friday's close. The DJIA Index limped across the finish on Friday, adding 20 points, after mixed economic data suggested that the U.S. economy is not growing as quickly as economists had anticipated.
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MoneyMorning.com Report - For May 18, 2015, here is the top stock market news, pre-market movers, and stocks to watch , and stock futures today ... Stock Futures Today U.S. stock futures for Monday, May 18, forecast a decline of 23 points from Friday's close. Stocks to Watch Today: SYS, DE, JPM, BRK.A, IBM, WFC, KO, AXP Stocks to Watch No. The DJIA Index limped across the finish on Friday, adding 20 points, after mixed economic data suggested that the U.S. economy is not growing as quickly as economists had anticipated.
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MoneyMorning.com Report - For May 18, 2015, here is the top stock market news, pre-market movers, and stocks to watch , and stock futures today ... Stock Futures Today U.S. stock futures for Monday, May 18, forecast a decline of 23 points from Friday's close. Today's U.S. Economic Calendar (all times EST) Housing Market Index at 10 a.m. 4-Week Bill Announcement at 11 a.m. 3-Month Bill Auction at 11:30 a.m. 6-Month Bill Auction at 11:30 a.m. What Investors Must Know This Week How to Grab Profits During a Stock Market Crash M&A: Invest in the Next Tech Takeover Targets How to Profit from the Keystone Pipeline Debate To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free . The DJIA Index limped across the finish on Friday, adding 20 points, after mixed economic data suggested that the U.S. economy is not growing as quickly as economists had anticipated.
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Stocks to Watch Today: SYS, DE, JPM, BRK.A, IBM, WFC, KO, AXP Stocks to Watch No. Stocks to Watch No.2, DE: Shares of Deere & Co. ( DE ) are in focus as the company plans to report earnings on Friday. MoneyMorning.com Report - For May 18, 2015, here is the top stock market news, pre-market movers, and stocks to watch , and stock futures today ... Stock Futures Today U.S. stock futures for Monday, May 18, forecast a decline of 23 points from Friday's close.
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2015-05-15 00:00:00 UTC
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Bulls fighting downgrade in Deere
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https://www.nasdaq.com/articles/bulls-fighting-downgrade-deere-2015-05-15
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The bulls are braving a selloff in Deere after JP Morgan downgraded the tractor maker today.
optionMONSTER's Heat Seeker monitoring program detected heavy volume in the Weekly calls expiring next Friday, May 22. Earnings are due the morning of the same day.
At least two basic strategies were employed. First, they snapped up the 91.50 calls for $1.05 early in the session. Owning those contracts locks in the price where they can buy shares, helping to manage risk and creating the opportunity for significant leverage if the stock advances.
About 30 minutes later traders bought 2,000 of the 90 calls for $1.32 and sold 2,000 of the 91.50s for $0.73. Known as a bullish vertical spread , that trade cost $0.59 and will expand to $1.50 on a move to $91.50 or higher on expiration. (See our Education section)
DE is down 3.92 percent to $88.59 in afternoon trading, making it the second-worst performing member of the S&P 500 in the session. "The industry is in dire straits," JP Morgan analyst Ann Duignan wrote as she lowered the stock to "underweight." Her note cited high inventory levels for used machinery and the risk of farmers losing access to credit in 2016.
The stock has been trapped between $80 and $95 for several years as management tries to deal with slowing demand.
Total option volume was 5 times greater than average in the name. There was also selling in the Weekly 95 puts expiring on May 22 for about $0.50, which reflects downside will be limited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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optionMONSTER's Heat Seeker monitoring program detected heavy volume in the Weekly calls expiring next Friday, May 22. "The industry is in dire straits," JP Morgan analyst Ann Duignan wrote as she lowered the stock to "underweight." The bulls are braving a selloff in Deere after JP Morgan downgraded the tractor maker today.
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optionMONSTER's Heat Seeker monitoring program detected heavy volume in the Weekly calls expiring next Friday, May 22. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The bulls are braving a selloff in Deere after JP Morgan downgraded the tractor maker today.
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optionMONSTER's Heat Seeker monitoring program detected heavy volume in the Weekly calls expiring next Friday, May 22. The bulls are braving a selloff in Deere after JP Morgan downgraded the tractor maker today. About 30 minutes later traders bought 2,000 of the 90 calls for $1.32 and sold 2,000 of the 91.50s for $0.73.
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The bulls are braving a selloff in Deere after JP Morgan downgraded the tractor maker today. optionMONSTER's Heat Seeker monitoring program detected heavy volume in the Weekly calls expiring next Friday, May 22. About 30 minutes later traders bought 2,000 of the 90 calls for $1.32 and sold 2,000 of the 91.50s for $0.73.
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2015-05-15 00:00:00 UTC
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Pre-Market Movers LOCO, GMCR Falling Fast Early Friday
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https://www.nasdaq.com/articles/pre-market-movers-loco-gmcr-falling-fast-early-friday-2015-05-15
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MoneyMorning.com Report - Good morning! For May 14, 2015, here are your stock futures, topmarket news earnings reports, and pre-market movers to watch in thestock market today..
Stock Futures Today
U.S. stock futures forecasted a 30-point increase from Thursday's close as continued weakness in the dollar squeezes out even more from the markets' bull run.
The S&P 500 soared to a new high on Thursday and the DJIA Index rose 191 points on news that weekly jobless claims remained near a 15-year-low. A falling U.S. dollar fueled optimism about the possibility of stronger international sales for domestic-based companies.
Top News in the Stock Market Today
Stock Market Today: Investors will look to reports on industrial production and consumer sentiment. Companies reporting earnings include hhgregg Inc. (NYSE: HGG), General Steel Holdings Inc. (NYSE: GSI), Petroleo Brasileiro Petrobras SA (NYSE ADR: PBR), and Acorn Energy Inc. (Nasdaq: ACFN).
European Rally: Markets in Europe were on this rise this morning after European Central Bank head Mario Draghi announced plans to continue loose monetary policy. Draghi said that its version of quantitative easing will continue "as long as needed."
Looking Abroad: American companies are attempting to shield themselves from a collapsing currency in Venezuela. Firms with a presence in the nation are beginning to remove their operations from financial statements thanks to exposure to the collapsing bolivar.
Oil Prices Today: Oil prices are heading for a weekly gain today despite traders' continued concerns over the ample state of crude supplies. WTI crude futures for June down 0.4% this morning at $59.62 per barrel. Meanwhile, Brent oil was flat at $66.69 per barrel.
Pre-Market Movers in the Stock Market Today: LOCO, EBAY, AMZN, PYPL, GMCR
Pre-Market Movers 1, LOCO: Shares of El Pollo LoCo Holdings Inc. (Nasdaq: LOCO) cratered by more than 12% this morning after the company issued a 2015 profit forecast well below analyst estimates. The company did beat Wall Street quarterly earnings and quarterly sales expectations by 1.9%. However, concerns about its outlook overshadowed the good.
Pre-Market Movers 2,EBAY: Shares of eBay Inc. (Nasdaq: EBAY) were up more than 1.2% this morning as optimism grows about the pending spin-off of PayPal, the transaction processing business it purchased in 2002. Yesterday, PayPal said it will list shares on the Nasdaq, under the ticker PYPL. This is the same ticker the company used when it originally joined the Nasdaq in February 2001. The independence will allow the firm to partner with other online merchants like Amazon.com Inc. (Nasdaq: AMZN).
Pre-Market Movers 3, GMCR: Shares of Keurig Green Mountain Inc. (Nasdaq: GMCR) slipped nearly 6% in pre-market hours after a report indicated the company would release its new cold brewing system later than analysts expected. Bloomberg reports that the new system will not hit retail outlets until sometime in 2016.
Stocks to Watch Today: AVP, BABA, NFLX,
Stocks to Watch No. 1, DE: Shares of Deere & Co. ( DE ) were down 1.7% this morning after the company received a downgrade from investment bank JPMorgan Chase & Co. ( JPM ). The bank slashed its price target from $90 to $84 per share, citing concerns in the farming equipment market that include a pending liquidity crunch for purchasers in the coming year.
Stocks to Watch No.2, AVP: The mystery continues. Yesterday, shares of Avon Products ( AVP ) surged as many as 20 points after a supposedly non-existent company listed on a remote Indian Ocean island offered to pay three times the market value for the cosmetics giant. The stock was down roughly 1% in pre-market hours, and the SEC will likely investigate possible stock price manipulation.
Stocks to Watch No. 3, BABA: Shares of Alibaba Group Holding Ltd. (NYSE: BABA) continued to rise pre-market this morning on Thursday's news that the company is working with Wal-Mart Stores Inc. ( WMT ) to accept mobile payment system Alipay at 400 stores in southern China. The company is also exploring expansion plans with online-streaming giant Netflix Inc. (Nasdaq: NFLX), in a video market worth roughly $5.9 billion each year. Don't miss our expert analysis on why Alibaba stock is rising -and what you should do now.
Today's U.S. Economic Calendar (all times EST)
Empire State Manufacturing Survey at 8:30 a.m.
Industrial Production at 9:15 a.m.
Consumer Sentiment at 10 a.m.
E-Commerce Retail Sales at 10 a.m.
Treasury International Capital at 4 p.m.
What Investors Must Know This Week
How to Grab Profits During a Stock Market Crash
M&A: Invest in the Next Tech Takeover Targets
How to Profit from the Keystone Pipeline Debate
To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free . Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. The S&P 500 soared to a new high on Thursday and the DJIA Index rose 191 points on news that weekly jobless claims remained near a 15-year-low.
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The S&P 500 soared to a new high on Thursday and the DJIA Index rose 191 points on news that weekly jobless claims remained near a 15-year-low. Companies reporting earnings include hhgregg Inc. (NYSE: HGG), General Steel Holdings Inc. (NYSE: GSI), Petroleo Brasileiro Petrobras SA (NYSE ADR: PBR), and Acorn Energy Inc. (Nasdaq: ACFN). Draghi said that its version of quantitative easing will continue "as long as needed."
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Today's U.S. Economic Calendar (all times EST) Empire State Manufacturing Survey at 8:30 a.m. Industrial Production at 9:15 a.m. Consumer Sentiment at 10 a.m. E-Commerce Retail Sales at 10 a.m. Treasury International Capital at 4 p.m. What Investors Must Know This Week How to Grab Profits During a Stock Market Crash M&A: Invest in the Next Tech Takeover Targets How to Profit from the Keystone Pipeline Debate To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free . The S&P 500 soared to a new high on Thursday and the DJIA Index rose 191 points on news that weekly jobless claims remained near a 15-year-low. Companies reporting earnings include hhgregg Inc. (NYSE: HGG), General Steel Holdings Inc. (NYSE: GSI), Petroleo Brasileiro Petrobras SA (NYSE ADR: PBR), and Acorn Energy Inc. (Nasdaq: ACFN).
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Yesterday, PayPal said it will list shares on the Nasdaq, under the ticker PYPL. Today's U.S. Economic Calendar (all times EST) Empire State Manufacturing Survey at 8:30 a.m. Industrial Production at 9:15 a.m. Consumer Sentiment at 10 a.m. E-Commerce Retail Sales at 10 a.m. Treasury International Capital at 4 p.m. What Investors Must Know This Week How to Grab Profits During a Stock Market Crash M&A: Invest in the Next Tech Takeover Targets How to Profit from the Keystone Pipeline Debate To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free . The S&P 500 soared to a new high on Thursday and the DJIA Index rose 191 points on news that weekly jobless claims remained near a 15-year-low.
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2015-05-15 00:00:00 UTC
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S&P 500 Movers: GMCR, NFLX
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https://www.nasdaq.com/articles/sp-500-movers-gmcr-nflx-2015-05-15
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In early trading on Friday, shares of Netflix ( NFLX ) topped the list of the day's best performing components of the S&P 500 index, trading up 3.1%. Year to date, Netflix registers a 77.2% gain.
And the worst performing S&P 500 component thus far on the day is Keurig Green Mountain ( GMCR ), trading down 9.1%. Keurig Green Mountain is lower by about 29.2% looking at the year to date performance.
Two other components making moves today are Deere & Co. ( DE ), trading down 2.7%, and Vertex Pharmaceuticals ( VRTX ), trading up 2.6% on the day.
VIDEO: S&P 500 Movers: GMCR, NFLX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: S&P 500 Movers: GMCR, NFLX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Netflix ( NFLX ) topped the list of the day's best performing components of the S&P 500 index, trading up 3.1%. Two other components making moves today are Deere & Co. ( DE ), trading down 2.7%, and Vertex Pharmaceuticals ( VRTX ), trading up 2.6% on the day.
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VIDEO: S&P 500 Movers: GMCR, NFLX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Netflix ( NFLX ) topped the list of the day's best performing components of the S&P 500 index, trading up 3.1%. Two other components making moves today are Deere & Co. ( DE ), trading down 2.7%, and Vertex Pharmaceuticals ( VRTX ), trading up 2.6% on the day.
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In early trading on Friday, shares of Netflix ( NFLX ) topped the list of the day's best performing components of the S&P 500 index, trading up 3.1%. VIDEO: S&P 500 Movers: GMCR, NFLX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Two other components making moves today are Deere & Co. ( DE ), trading down 2.7%, and Vertex Pharmaceuticals ( VRTX ), trading up 2.6% on the day.
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VIDEO: S&P 500 Movers: GMCR, NFLX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Netflix ( NFLX ) topped the list of the day's best performing components of the S&P 500 index, trading up 3.1%. Two other components making moves today are Deere & Co. ( DE ), trading down 2.7%, and Vertex Pharmaceuticals ( VRTX ), trading up 2.6% on the day.
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2015-05-13 00:00:00 UTC
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Zacks Industry Outlook Highlights: AO Smith, Caterpillar, Deere, Illinois Tool Works and Lincoln Electric Holdings - Press Releases
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Chicago, IL - May 13, 2015 - Today, Zacks Equity Research discusses the Industrial Machinery, including AO Smith Corp. ( AOS ), Caterpillar Inc. ( CAT ), Deere & Company ( DE ), Illinois Tool Works, Inc. ( ITW ) and Lincoln Electric Holdings Inc. ( LECO ).
Industry: Industrial Machinery
Link: http://www.zacks.com/commentary/45709/industrial-machinery-stock-outlook---may-2015
Economic activities around the globe have been jittery in the March quarter, with uncertainties prevalent in a number of developed as well as developing countries. In the emerging world, questions remain about China's growth outlook, Brazil's economy has lost momentum and oil exporting nations are forced to deal with the effects of lower oil prices . Lower oil prices are having an impact on the demand for industrial machinery as well, both directly as well indirectly.
In Apr 2015, the World Economic Outlook, published by the International Monetary Fund (IMF), highlighted the worsening operating conditions in some developed and emerging nations. This, consequently, will hurt industrial activities, thus posing a major headwind for the machinery industry. The world economy is predicted to grow 3.5% in 2015 and 3.8% in 2016. Advanced economies are projected to grow 2.4% in both 2015 and 2016, while emerging nations will likely grow by 4.3% in 2015 and 4.7% in 2016.
Across nations, the level of industrial activities is measured in terms of industrial production -- output of the manufacturing, mining and utilities sectors. A brief discussion on the prospects of the machinery industry in different nations has been provided below.
Prospects in the United States
As per the Federal Reserve reports, operating environment for the U.S.-based machinery makers was difficult in first-quarter 2015. Industrial production declined 1% year over year due to weakness in the mining and utilities industries.
Also, export demands for the U.S. machinery were weak in the quarter. According to the U.S. Census Bureau report published in May 2015, machinery shipments decreased by 2.2% in the quarter. Shipments for farm, mining and industrial machineries fell 48%, 13.9% and 0.7%, respectively. New machinery orders were down 9.3%, while order backlog inched up 0.1%.
The job market, however, showed signs of recovery. As per the Bureau of Labor Statistics report, new job additions averaged 197,000 for first-quarter 2015 while unemployment rate stood at 5.5% at the end of the quarter.
Presently, market sentiments are shaky in the U.S. as fluctuating currency movements and uncertain global growth will likely hurt the country's export businesses. Lower oil prices add to the woes by adversely impacting oil and gas drilling activities of the oil producing companies. This, in turn, has lowered capital spending on purchase of machinery and equipments.
According to the IMF, the U.S. economy is projected to grow by 3.1% in both 2015 and 2016.
Japan
The latest report by Japan's Cabinet Office shows that total machinery orders in Feb 2015 declined 1.4% over the previous month. Private-sector machinery orders fell 10.4%, while the same excluding volatile orders edged down 0.4%, raising concerns over the future of capital investments by companies. Orders from government clients decreased 21.9%. The agency predicts a 2.5% decline in total machinery orders for first-quarter 2015.
In Nov 2014, the government had delayed its second sales tax hike of 2% by 18 months, primarily on account of the shrinking economy. The IMF predicts the economy to grow by a meagre 1% in 2015 and 1.2% in 2016.
Emerging Nations
China: The country's industrial production growth rate declined to 5.6% in Mar 2015 from 6.8% recorded in both February and January. The weakness was triggered by soft domestic demands during the period.
Gross Domestic Product (GDP) growth rate also slowed to 7% in Jan-Mar quarter as against the year-ago quarter. Exports growth was a paltry 5%, while imports shrank 17%. The IMF projects the Chinese economy to grow by 6.8% in 2015 and 6.3% in 2016.
India: The country's industrial production in Feb 2015 increased 5% from the year-ago month on the back of a 5.2% increase in manufacturing and 2.5% in the mining sector. Industrial production growth in January was 2.8%. GDP growth in the December-ending quarter was 7.5%.
Expectations of strong demand, policy improvements and better monsoon conditions will act as the primary growth drivers for the country, going forward. The new government has already taken certain measures to successfully boost the country's foreign capital inflow. According to the IMF, the country is projected to grow by 7.5% in both 2015 and 2016.
Brazil: The country's industrial production in Mar 2015 declined 3.5% from the year-ago quarter. The fall was worse in February at 9.4% while being down 5.2% in January.
For 2015, the country projects a gloomy outlook as a result of low private investments, inadequate infrastructure and high labor costs. The IMF predicts the country's output to decline by 1% in 2015, and grow by 1% in 2016. The recovery is dependent on foreign direct investments and expansion of industries like tourism, steel and electricity.
Eurozone
The Eurozone's industrial production (excluding construction) in Feb 2015 managed to rise 1.1% over the prior month, while increasing 1.6% year over year, as per Eurostat's data released in Apr 2015.
According to the VDMA Machine Makers' Association, German machine tool orders in the Jan-Mar period grew 2%. Domestic orders were down 2%, while international orders climbed 3%. The IMF projects the Euro Area to grow by 1.5% in 2015 and 1.6% in 2016.
Zacks Industry Rank
According to the Zacks Industry classification, Machinery is broadly grouped under the Industrial Products sector, one of the 16 broad Zacks sectors. More than 260 industries are ranked under the 16 Zacks sectors based on the earnings outlook of constituent companies in each industry. To learn more visit: About Zacks Industry Rank .
As a guideline, industries with Zacks Industry Rank of #88 and lower are considered to have a positive outlook; those between #89 and #176 have a neutral outlook, while the ones with #177 and higher possess a negative outlook.
The machinery industry is further sub-divided into five industries at the expanded level: machine tools and related products (with Zacks Industry Rank #94), machinery - construction and mining (#95), machinery - electrical (#97), machinery - farm (#98) and machinery - general industries (#99). Considering the Zacks Industry Ranks of all the machinery-related industries, it can be deduced that sub segments of the machinery industry hold a neutral outlook.
Earnings Trend of the Sector
The Industrial Products sector accounts for 2.2% of the S&P 500 index's total market capitalization and is expected to bring in 2.1% of the index's estimated total earnings this year.
As of May 8, 2015, roughly 84% of the total Industrial Products companies in the S&P 500 group reported their results for the Jan-Mar quarter. Earnings inched up 0.1% year over year with a beat ratio of 66.7%, while revenues declined 4.4%.
Taking into consideration the prevalent headwinds, earnings for the Industrial Products sector are anticipated to decline by 8.2% in the quarter, while revenues are predicted to fall by 6.9%.
Key Players in the Machinery Industry
A brief discussion on few billion-dollar machinery companies:
AO Smith Corp. ( AOS ): The company, with a market capitalization of $6.1 billion, operates in the electrical machinery industry. This Zacks Rank # 2 (Buy) company manufactures and markets residential and commercial water heating equipment.
Caterpillar Inc. ( CAT ): The company operates in the construction and mining machinery industry with a current market capitalization of $52.7 billion. It manufactures construction and mining equipment, diesel and natural gas engines and industrial gas turbines.
Deere & Company ( DE ): The company, with a $30.5 billion business, operates in the farm machinery industry. It produces and distributes agricultural and forestry equipment, construction equipment and engines.
Illinois Tool Works, Inc. ( ITW ): The company, with a $35.8 billion market capitalization, operates in the general machinery industry. It is a worldwide manufacturer of highly engineered products and specialty systems.
Lincoln Electric Holdings Inc. ( LECO ): With a market capitalization of $5.1 billion, the company operates in the machine tools and related products industry. It specializes in manufacturing and selling welding and cutting products. Lincoln Electric has Zacks Rank # 3 (Hold) and Style Scores of 'B' for Growth and Value.
Going Forward
Effective governmental policies as well as huge investments in infrastructure development will improve industrial products demand and also create new jobs, going forward. Such measures, along with emphasis on growing trade relations, will prove to be a boon for the machinery industry.
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SMITH (AO) CORP (AOS): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
ILL TOOL WORKS (ITW): Free Stock Analysis Report
LINCOLN ELECTRC (LECO): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In Apr 2015, the World Economic Outlook, published by the International Monetary Fund (IMF), highlighted the worsening operating conditions in some developed and emerging nations. Chicago, IL - May 13, 2015 - Today, Zacks Equity Research discusses the Industrial Machinery, including AO Smith Corp. ( AOS ), Caterpillar Inc. ( CAT ), Deere & Company ( DE ), Illinois Tool Works, Inc. ( ITW ) and Lincoln Electric Holdings Inc. ( LECO ). Industry: Industrial Machinery Link: http://www.zacks.com/commentary/45709/industrial-machinery-stock-outlook---may-2015 Economic activities around the globe have been jittery in the March quarter, with uncertainties prevalent in a number of developed as well as developing countries.
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Chicago, IL - May 13, 2015 - Today, Zacks Equity Research discusses the Industrial Machinery, including AO Smith Corp. ( AOS ), Caterpillar Inc. ( CAT ), Deere & Company ( DE ), Illinois Tool Works, Inc. ( ITW ) and Lincoln Electric Holdings Inc. ( LECO ). The machinery industry is further sub-divided into five industries at the expanded level: machine tools and related products (with Zacks Industry Rank #94), machinery - construction and mining (#95), machinery - electrical (#97), machinery - farm (#98) and machinery - general industries (#99). Click to get this free report SMITH (AO) CORP (AOS): Free Stock Analysis Report CATERPILLAR INC (CAT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report ILL TOOL WORKS (ITW): Free Stock Analysis Report LINCOLN ELECTRC (LECO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Industry Rank According to the Zacks Industry classification, Machinery is broadly grouped under the Industrial Products sector, one of the 16 broad Zacks sectors. The machinery industry is further sub-divided into five industries at the expanded level: machine tools and related products (with Zacks Industry Rank #94), machinery - construction and mining (#95), machinery - electrical (#97), machinery - farm (#98) and machinery - general industries (#99). Chicago, IL - May 13, 2015 - Today, Zacks Equity Research discusses the Industrial Machinery, including AO Smith Corp. ( AOS ), Caterpillar Inc. ( CAT ), Deere & Company ( DE ), Illinois Tool Works, Inc. ( ITW ) and Lincoln Electric Holdings Inc. ( LECO ).
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Also, export demands for the U.S. machinery were weak in the quarter. The machinery industry is further sub-divided into five industries at the expanded level: machine tools and related products (with Zacks Industry Rank #94), machinery - construction and mining (#95), machinery - electrical (#97), machinery - farm (#98) and machinery - general industries (#99). Chicago, IL - May 13, 2015 - Today, Zacks Equity Research discusses the Industrial Machinery, including AO Smith Corp. ( AOS ), Caterpillar Inc. ( CAT ), Deere & Company ( DE ), Illinois Tool Works, Inc. ( ITW ) and Lincoln Electric Holdings Inc. ( LECO ).
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2015-04-28 00:00:00 UTC
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Will GrafTech International (GTI) Earnings Disappoint in Q1? - Analyst Blog
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https://www.nasdaq.com/articles/will-graftech-international-gti-earnings-disappoint-in-q1-analyst-blog-2015-04-28
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Industrial electrical equipment maker GrafTech International Ltd.GTI is scheduled to report first-quarter 2015 results on Apr 30 before the market opens. The Zacks Consensus Estimate for the quarter is pegged at a loss of 5 cents per share.
GrafTech International reported lower-than-expected results in two of the last four trailing quarters and better-than-expected in the other two, resulting in a negative average earnings surprise of 106.25%. Last quarter, the company reported earnings of 6 cents per share, comparing favorably with the Zacks Consensus Estimate of 4 cents of loss per share. Let's see how things are shaping up for this quarter.
Factors to Influence Q1 Results
GrafTech International's segmental business as well as its overall profitability is largely influenced by economic activities in the U.S. and the foreign countries served. In first-quarter 2015, global economic conditions were jittery, with uncertainties prevailing in certain advanced countries as well as major emerging nations.
While China struggled to revive its financial markets, Brazil faced the adversities of drought. Industrial production in the U.S. declined 1% over the year-ago comparable period, due primarily to weakness in the mining and utilities industries.
Difficult operating conditions are anticipated to hamper the product demand for GrafTech International, both domestically and internationally. Also, the company anticipates lower prices for graphite electrodes to negatively impact its top line in 2015. Further, it continues to face headwinds from adverse foreign currency movements.
Earnings Whispers
Our proven model does not conclusively show that GrafTech International is likely to miss earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Expected Surprise Prediction or ESP for the stock is currently 0.0%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 5 cents per share.
Zacks Rank: GrafTech International currently carries a Zacks Rank #4 (Sell).
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Stocks to Consider
Here are some companies you may want to consider in the machinery industry as our model shows they have the right combination of elements to post an earnings beat this quarter:
Deere & Co. DE , with an Earnings ESP of +3.80% and a Zacks Rank #3.
Xylem Inc. XYL , with an Earnings ESP of +3.23% and a Zacks Rank #3.
Zebra Technologies Corp. ZBRA , with an Earnings ESP of +7.41% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GRAFTECH INTL (GTI): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
XYLEM INC (XYL): Free Stock Analysis Report
ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also, the company anticipates lower prices for graphite electrodes to negatively impact its top line in 2015. Industrial production in the U.S. declined 1% over the year-ago comparable period, due primarily to weakness in the mining and utilities industries. Difficult operating conditions are anticipated to hamper the product demand for GrafTech International, both domestically and internationally.
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Click to get this free report GRAFTECH INTL (GTI): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report XYLEM INC (XYL): Free Stock Analysis Report ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here. Industrial production in the U.S. declined 1% over the year-ago comparable period, due primarily to weakness in the mining and utilities industries. Difficult operating conditions are anticipated to hamper the product demand for GrafTech International, both domestically and internationally.
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Stocks to Consider Here are some companies you may want to consider in the machinery industry as our model shows they have the right combination of elements to post an earnings beat this quarter: Deere & Co. DE , with an Earnings ESP of +3.80% and a Zacks Rank #3. Click to get this free report GRAFTECH INTL (GTI): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report XYLEM INC (XYL): Free Stock Analysis Report ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here. Industrial production in the U.S. declined 1% over the year-ago comparable period, due primarily to weakness in the mining and utilities industries.
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Stocks to Consider Here are some companies you may want to consider in the machinery industry as our model shows they have the right combination of elements to post an earnings beat this quarter: Deere & Co. DE , with an Earnings ESP of +3.80% and a Zacks Rank #3. Industrial production in the U.S. declined 1% over the year-ago comparable period, due primarily to weakness in the mining and utilities industries. Difficult operating conditions are anticipated to hamper the product demand for GrafTech International, both domestically and internationally.
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2015-04-28 00:00:00 UTC
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Will Allegion (ALLE) Beat Q1 Earnings on Higher Revenues? - Analyst Blog
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https://www.nasdaq.com/articles/will-allegion-alle-beat-q1-earnings-on-higher-revenues-analyst-blog-2015-04-28
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Allegion plcALLE , a provider of security solutions for homes and businesses, is set to report first-quarter 2015 results on Apr 30, before the opening bell.
Last quarter, the company posted a positive earnings surprise of 8.57%, primarily due to higher-than-expected revenues in the North America segment and strong margins. Let's see how things are shaping up for the upcoming announcement.
Factors to Consider
Allegion primarily relies on the commercial and residential construction and remodeling markets for its revenues. Although in the beginning of 2015, the recovery was somewhat stalled due to inclement weather, the housing market currently in U.S. has been picking up momentum of late.
The resurgence in the job market and low mortgage rates are the key factors which are continuing to support the housing recovery. Softer mortgage rates are reducing the cost of homes for a considerable number of households. Therefore, Allegion's revenues are expected to increase in the to-be-reported quarter, mainly due to the recovery in the housing market in the U.S.
Further, the company should benefit from strategic acquisitions and investments in new technology, as the demand for electronic security products are growing.
Nevertheless, we are concerned about the economic slowdown in certain pockets of the globe, where Allegion has considerable presence. With the economy in Eurozone still sluggish and China's continued slowdown affecting global economy, Allegion's profits in the first quarter might be under pressure.
Earnings Whispers
Our proven model does not conclusively show that Allegion is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here, as you will see below.
Zacks ESP : The Earnings ESP for Allegion is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 70 cents.
Zacks Rank : Allegion has a Zacks Rank #3 (Hold), which when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some companies in the broader industrial products sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
The Babcock & Wilcox Co. BWC , with an Earnings ESP of +2.27% and a Zacks Rank #3.
Deere & Co. DE , with an Earnings ESP of +3.80% and a Zacks Rank #3.
Xylem Inc. XYL , with an Earnings ESP of +3.23% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ALLEGION PLC (ALLE): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
BABCOCK&WILCOX (BWC): Free Stock Analysis Report
XYLEM INC (XYL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Allegion plcALLE , a provider of security solutions for homes and businesses, is set to report first-quarter 2015 results on Apr 30, before the opening bell. Therefore, Allegion's revenues are expected to increase in the to-be-reported quarter, mainly due to the recovery in the housing market in the U.S. Further, the company should benefit from strategic acquisitions and investments in new technology, as the demand for electronic security products are growing. Factors to Consider Allegion primarily relies on the commercial and residential construction and remodeling markets for its revenues.
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Stocks to Consider Here are some companies in the broader industrial products sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter: The Babcock & Wilcox Co. BWC , with an Earnings ESP of +2.27% and a Zacks Rank #3. Click to get this free report ALLEGION PLC (ALLE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BABCOCK&WILCOX (BWC): Free Stock Analysis Report XYLEM INC (XYL): Free Stock Analysis Report To read this article on Zacks.com click here. Allegion plcALLE , a provider of security solutions for homes and businesses, is set to report first-quarter 2015 results on Apr 30, before the opening bell.
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Stocks to Consider Here are some companies in the broader industrial products sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter: The Babcock & Wilcox Co. BWC , with an Earnings ESP of +2.27% and a Zacks Rank #3. Click to get this free report ALLEGION PLC (ALLE): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report BABCOCK&WILCOX (BWC): Free Stock Analysis Report XYLEM INC (XYL): Free Stock Analysis Report To read this article on Zacks.com click here. Allegion plcALLE , a provider of security solutions for homes and businesses, is set to report first-quarter 2015 results on Apr 30, before the opening bell.
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Stocks to Consider Here are some companies in the broader industrial products sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter: The Babcock & Wilcox Co. BWC , with an Earnings ESP of +2.27% and a Zacks Rank #3. Allegion plcALLE , a provider of security solutions for homes and businesses, is set to report first-quarter 2015 results on Apr 30, before the opening bell. Factors to Consider Allegion primarily relies on the commercial and residential construction and remodeling markets for its revenues.
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2015-04-27 00:00:00 UTC
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Will Eaton (ETN) Q1 Earnings Miss Estimates on Seasonality? - Analyst Blog
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https://www.nasdaq.com/articles/will-eaton-etn-q1-earnings-miss-estimates-on-seasonality-analyst-blog-2015-04-27
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Eaton Corporation plcETN is scheduled to report first-quarter 2015 results before the opening bell on Apr 29. Last quarter, Eaton posted a positive earnings surprise of 5.8%. Let's see how things are holding up for the first quarter.
Factors Affecting This Quarter
Dublin, Ireland-based Eaton Corporation has consistently invested in R&D programs to produce new products and enhance the quality of existing ones. The company is introducing a new line of products, which is expanding its product offerings and helping customers to complete difficult tasks efficiently.
First-quarter results are also expected to be boosted by synergies from the Cooper integration which has partly been materialized and is expected to continue for some more quarters.
However, the first quarter tends to be seasonally the weakest quarter for the company. Moreover, the expected weakness in its Electrical Systems and Services business is not going to help Eaton's cause.
Earnings Whispers?
Our proven model does not conclusively show that Eaton Corporation will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat consensus estimates. That is not the case here as you will see below.
Zacks ESP : Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is at 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are at 98 cents per share.
Zacks Rank : Eaton Corporation's Zacks Rank #3 when combined with a 0.00% ESP makes an earnings beat difficult to predict.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks in the industrial goods sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:
Codexis, Inc. CDXS has an earnings ESP of +15.38% and a Zacks Rank #2 (Buy).
Deere & Co. DE has an earnings ESP of +3.8% and a Zacks Rank #3.
Xylem Inc. XYL has an earnings ESP of +3.23% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
EATON CORP PLC (ETN): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
XYLEM INC (XYL): Free Stock Analysis Report
CODEXIS INC (CDXS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our proven model does not conclusively show that Eaton Corporation will beat earnings this quarter. Stocks to Consider Here are some stocks in the industrial goods sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season: Codexis, Inc. CDXS has an earnings ESP of +15.38% and a Zacks Rank #2 (Buy). Deere & Co. DE has an earnings ESP of +3.8% and a Zacks Rank #3.
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Stocks to Consider Here are some stocks in the industrial goods sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season: Codexis, Inc. CDXS has an earnings ESP of +15.38% and a Zacks Rank #2 (Buy). Click to get this free report EATON CORP PLC (ETN): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report XYLEM INC (XYL): Free Stock Analysis Report CODEXIS INC (CDXS): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model does not conclusively show that Eaton Corporation will beat earnings this quarter.
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Stocks to Consider Here are some stocks in the industrial goods sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season: Codexis, Inc. CDXS has an earnings ESP of +15.38% and a Zacks Rank #2 (Buy). Click to get this free report EATON CORP PLC (ETN): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report XYLEM INC (XYL): Free Stock Analysis Report CODEXIS INC (CDXS): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model does not conclusively show that Eaton Corporation will beat earnings this quarter.
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Stocks to Consider Here are some stocks in the industrial goods sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season: Codexis, Inc. CDXS has an earnings ESP of +15.38% and a Zacks Rank #2 (Buy). Our proven model does not conclusively show that Eaton Corporation will beat earnings this quarter. Deere & Co. DE has an earnings ESP of +3.8% and a Zacks Rank #3.
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2015-04-21 00:00:00 UTC
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3 Industrial Stocks to Surprise this Earnings Season - Earnings ESP
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https://www.nasdaq.com/articles/3-industrial-stocks-to-surprise-this-earnings-season-earnings-esp-2015-04-21
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Headwinds that plagued fourth-quarter 2014 results are anticipated to hurt the results for first-quarter 2015 as well. Economic activities around the globe have been jittery in the quarter, with uncertainties prevailing in some advanced countries as well as major emerging nations. While China is still struggling to revive its financial markets, Brazil continues to face the adversities of drought.
As regard to oil-exporting nations, drilling activities have been severely hit by lower oil prices . Moreover, lower oil prices have weakened the demand in industries that directly or indirectly source businesses from the energy sector.
Now, with the onset of first-quarter 2015 earnings season, all eyes are on this week's earnings releases, especially that of the finance sector. As on Apr 17, roughly 12% of all the S&P 500 companies have released their results for the Jan-Mar quarter. Earnings have grown nearly 13.6% year over year, while revenues have inched up 1.7%.
Despite the initial numbers suggesting improvement over the year-ago tallies, overall expectations from the S&P 500 companies are not very bright this quarter. Currently, earnings are projected to decrease 2% in the first quarter, way below growth of 6.7% recorded in the previous quarter. Revenue is predicted to decline 4.8%, worse than 0.1% fall in the last quarter of 2014. However, with many oil/energy as well as industrial products stocks yet to report earnings, results can vary from the projected figures.
Industrial Products Sector: Performance So Far and Outlook
Presently, market sentiments are shaky in the U.S. as fluctuating currency movements and dampered global growth are likely to hurt the country's export businesses. Lower oil prices add to the woes, curtailing the capital expenditure on purchase of machinery and equipments.
In first-quarter 2015, operating environment for the U.S.-based industrial equipment makers was difficult. Industrial production in the quarter declined 1% over the year-ago comparable period due primarily to weakness in the mining and utilities industries.
Let us take a look at the performance of Industrial Products sector so far in first-quarter 2015. Roughly 8% of the total Industrial Products companies in the S&P 500 group reported their results as of Apr 17. Earnings managed 4.1% year-over-year growth with a beat ratio of 50%, while revenues edged up 0.9%.
Taking into consideration the prevalent headwinds, earnings for the Industrial Products sector are anticipated to decline by 12.3% in the quarter, while revenues are predicted to fall by 6%.
How to Pick?
Amid such a gloomy environment, choosing the right stocks with a potential to beat earnings estimates can be a daunting task. However, we are providing below simple guidelines to pick such stocks.
The Industrial Products sector includes machinery, pollution control, industrial products-services, construction building services, and containers and glass industries. In this diversified sector, selecting stocks with a favorable Zacks Rank of #1 (Strong Buy), #2 (Buy) or #3 (Hold) - and a positive Zacks Earnings ESP can help.
Earnings ESP is our proprietary methodology to determine which stocks have the best chance to surprise in their next earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination, the chances of positive earnings surprise are as high as 70%.
Here are three Industrial Products stocks currently equipped with the right combination of elements to post an earnings beat:
Deere & Company ( DE ): The company, with a $30.2 billion business, operates in the farm machinery industry. It is engaged in the worldwide production and distribution of agricultural and forestry equipment, construction equipment and engines.
The industrial equipment maker is well-positioned to leverage benefits from recovery in the U.S. construction sector. Also, the company's cost-reduction efforts and share buyback plans will ultimately improve shareholders' wealth. However, the company is not immune to adverse impact from falling crop prices, which affects farm income. This will impact the rate of purchase of agricultural equipment by farmers.
Deere & Company currently carries a Zacks Rank #3. Earnings ESP for second-quarter fiscal 2015 is +3.80%, with the Zacks Consensus Estimate pegged at $1.58 per share and the Most Accurate Estimate at $1.64 per share.
The stock is currently valued at a forward P/E multiple of 16.65 versus 16.97 for the industry. The company offers a solid 29.5% return on equity above the industry return of 21.1%. Earnings are estimated to grow by 8.6% in the next 5 years.
Deere & Company is slated to release second-quarter fiscal 2015 results on May 22, 2015 before the market opens.
Xylem Inc. ( XYL ): The company, with a market capitalization of $6.5 billion, operates in the machinery-general industry. It is one of the leading global providers of water solutions. The company is involved in the full water-process cycle, including collection, distribution and returning of water to the environment.
The company, with strong presence in the North American markets, also reaps benefits from growing demand for water solutions in Europe and Asia Pacific. Moreover, the company remains committed to rewarding its shareholders handsomely through dividends and share buybacks.
Xylem carries a Zacks Rank #3. Earnings ESP for first-quarter 2015 is +3.23%, with the Zacks Consensus Estimate pegged at 31 cents per share and the Most Accurate Estimate at 32 cents.
The stock is currently valued at a forward P/E multiple of 18.89. The company offers return of 16.5% on equity and 10.7% on investments. Earnings are expected to grow 9.1% over the next 5 years.
Xylem Inc. will release first-quarter 2015 results on Apr 30, 2015 before the market opens.
Zebra Technologies Corp. ( ZBRA ): The company, operating in the machinery industry, is a leading manufacturer and seller of printers and related products. Well-known products of the company include thermal printers, radio frequency identification products and real-time locating systems. The company has a diversified customer base which includes governments, retailers, manufacturers, transportation companies and healthcare institutions, among others. The company currently has a $5 billion market capitalization.
Zebra Technologies currently carries a Zacks Rank #3. Earnings ESP for first-quarter 2015 is +7.41, with the Zacks Consensus Estimate pegged at $1.08 per share and the Most Accurate Estimate at $1.16 per share.
The company's return profile is quite impressive, with return on equity being 17.9% and on investments 10.2%. It is currently valued at a forward P/E multiple of 17.20. Earnings are estimated to grow 8.5% in the next 5 years.
Zebra Technologies is expected to release first-quarter 2015 results on May 5, 2015.
Going Forward
Effective governmental policies as well as huge investments in infrastructure development can improve industrial products demand and also create new jobs. Until we ride through the difficult economic environment, choosing some possible winners on the basis of a solid Zacks Rank and a positive Zacks Earnings ESP might work wonders for some interested investors this earnings season.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
XYLEM INC (XYL): Free Stock Analysis Report
ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company, with strong presence in the North American markets, also reaps benefits from growing demand for water solutions in Europe and Asia Pacific. Going Forward Effective governmental policies as well as huge investments in infrastructure development can improve industrial products demand and also create new jobs. Moreover, lower oil prices have weakened the demand in industries that directly or indirectly source businesses from the energy sector.
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Here are three Industrial Products stocks currently equipped with the right combination of elements to post an earnings beat: Deere & Company ( DE ): The company, with a $30.2 billion business, operates in the farm machinery industry. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report XYLEM INC (XYL): Free Stock Analysis Report ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, lower oil prices have weakened the demand in industries that directly or indirectly source businesses from the energy sector.
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Here are three Industrial Products stocks currently equipped with the right combination of elements to post an earnings beat: Deere & Company ( DE ): The company, with a $30.2 billion business, operates in the farm machinery industry. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report XYLEM INC (XYL): Free Stock Analysis Report ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, lower oil prices have weakened the demand in industries that directly or indirectly source businesses from the energy sector.
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Here are three Industrial Products stocks currently equipped with the right combination of elements to post an earnings beat: Deere & Company ( DE ): The company, with a $30.2 billion business, operates in the farm machinery industry. Moreover, lower oil prices have weakened the demand in industries that directly or indirectly source businesses from the energy sector. Despite the initial numbers suggesting improvement over the year-ago tallies, overall expectations from the S&P 500 companies are not very bright this quarter.
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2015-04-21 00:00:00 UTC
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Can Proto Labs (PRLB) Surprise Earnings Estimates in Q1? - Analyst Blog
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https://www.nasdaq.com/articles/can-proto-labs-prlb-surprise-earnings-estimates-in-q1-analyst-blog-2015-04-21
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Proto Labs, Inc.PRLB is scheduled to report first-quarter 2015 results on Apr 23, before the market opens. The Zacks Consensus Estimate for the quarter is pegged at 42 cents per share.
Proto Labs performed well in three out of four trailing quarters, with a positive average earnings surprise of 4.32%. In the last reported quarter, the company's earnings of 39 cents per share surpassed the Zacks Consensus Estimate of 37 cents by 5.41%. Let us see how things are shaping up for Proto Labs this quarter.
Factors to Influence Q1 Results
In first-quarter 2015, economic activities across the globe have been jittery, with uncertainties prevailing in certain advance countries as well as major emerging nations. While China struggled to revive its financial markets, oil-exporting nations were severely hit by lower oil prices . In the U.S., industrial production in the quarter declined 1% over the year-ago tally due primarily to weakness in the mining and utilities industries.
Such negatives are likely to influence demand for Proto Labs' custom parts used for prototyping and in short-run production. In addition, the company's huge international exposure gives rise to severe headwinds in the form of foreign currency translations. Also, stiff competition from other prototype makers, both domestic and international, poses serious threat to the company's growth.
However, an efficient management and marketing team, along with a unique ability to develop custom-made products, is expected to prove beneficial for Proto Labs. Moreover, benefits from the acquired assets of Fineline will enhance the company's revenue-generation capabilities.
Earnings Whispers
Our proven model does not conclusively show that Proto Labs is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Expected Surprise Prediction or ESP of Proto Labs is currently 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 42 cents per share.
Zacks Rank: Proto Labs currently carries a Zacks Rank #3 (Hold). This rank, when combined with a 0.00% ESP, makes surprise predictions difficult.
We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Stocks to Consider
Here are some companies in the sector that you may want to consider instead as our model shows they have the right combination of elements to post an earnings beat this quarter:
Deere & Company DE , with an Earnings ESP of +3.80% and a Zacks Rank #3.
Xylem Inc. XYL , with an Earnings ESP of +3.23% and a Zacks Rank #3.
Zebra Technologies Corporation ZBRA , with an Earnings ESP of +7.41% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
XYLEM INC (XYL): Free Stock Analysis Report
PROTO LABS INC (PRLB): Free Stock Analysis Report
ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, an efficient management and marketing team, along with a unique ability to develop custom-made products, is expected to prove beneficial for Proto Labs. In the U.S., industrial production in the quarter declined 1% over the year-ago tally due primarily to weakness in the mining and utilities industries. Such negatives are likely to influence demand for Proto Labs' custom parts used for prototyping and in short-run production.
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Click to get this free report DEERE & CO (DE): Free Stock Analysis Report XYLEM INC (XYL): Free Stock Analysis Report PROTO LABS INC (PRLB): Free Stock Analysis Report ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here. In the U.S., industrial production in the quarter declined 1% over the year-ago tally due primarily to weakness in the mining and utilities industries. Such negatives are likely to influence demand for Proto Labs' custom parts used for prototyping and in short-run production.
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Stocks to Consider Here are some companies in the sector that you may want to consider instead as our model shows they have the right combination of elements to post an earnings beat this quarter: Deere & Company DE , with an Earnings ESP of +3.80% and a Zacks Rank #3. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report XYLEM INC (XYL): Free Stock Analysis Report PROTO LABS INC (PRLB): Free Stock Analysis Report ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here. In the U.S., industrial production in the quarter declined 1% over the year-ago tally due primarily to weakness in the mining and utilities industries.
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Stocks to Consider Here are some companies in the sector that you may want to consider instead as our model shows they have the right combination of elements to post an earnings beat this quarter: Deere & Company DE , with an Earnings ESP of +3.80% and a Zacks Rank #3. In the U.S., industrial production in the quarter declined 1% over the year-ago tally due primarily to weakness in the mining and utilities industries. Such negatives are likely to influence demand for Proto Labs' custom parts used for prototyping and in short-run production.
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0c6069d4-c134-4e12-9883-949e32d1de74
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722815.0
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2015-04-21 00:00:00 UTC
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Will Stanley Black & Decker (SWK) Surprise Earnings in Q1? - Analyst Blog
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DE
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https://www.nasdaq.com/articles/will-stanley-black-decker-swk-surprise-earnings-in-q1-analyst-blog-2015-04-21
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nan
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nan
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Industrial tool maker, Stanley Black & Decker, Inc.SWK is scheduled to report first-quarter 2015 results on Apr 23 before the market opens. The Zacks Consensus Estimate for the quarter is pegged at $1.07 per share.
Stanley Black & Decker performed well in the last four trailing quarters, with an average positive earnings surprise of 6.07%. In the last reported quarter, the company's earnings of $1.56 per share surpassed the Zacks Consensus Estimate of $1.53 by 1.96%. Let us see how things are shaping up for this quarter.
Factors to Influence Q1 Results
Operating environment for the U.S.-based industrial tool makers, like Stanley Black & Decker, was difficult in first-quarter 2015. The country's industrial production fell 1% over the year-ago quarter due primarily to weakness in the mining and utilities industries. Lower oil prices acted as a major headwind, limiting oil and gas well-drilling activities in the quarter. This resulted in weak demand for industries that directly or indirectly source businesses from the energy sector.
In addition, Stanley Black & Decker's top-and bottom-line results are likely to be hurt by unfavorable foreign currency movements. For first-quarter 2015, the company anticipates foreign currency translation to adversely impact revenue growth by 4−5% and earnings by 70−75 cents per share. Also, rising cost of sales and interest expenses remain major concerns.
However, Stanley Black & Decker's strategy of shifting its business portfolio toward better growth markets as well as its commitment to reward shareholders handsomely will work in its favor in the coming quarters.
Earnings Whispers
Our proven model does not conclusively show that Stanley Black & Decker is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: Expected Surprise Prediction or ESP for the stock is currently 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.07.
Zacks Rank: Stanley Black & Decker carries a Zacks Rank #3 (Hold). This rank, when combined with 0.00% ESP, makes earnings surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Stocks to Consider
Here are some companies you may want to consider in the machinery industry as our model shows they have the right combination of elements to post an earnings beat this quarter:
Deere & Company DE , with an Earnings ESP of +3.80% and a Zacks Rank #3.
Xylem Inc. XYL , with an Earnings ESP of +3.23% and a Zacks Rank #3.
Zebra Technologies Corporation ZBRA , with an Earnings ESP of +7.41% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
STANLEY B&D INC (SWK): Free Stock Analysis Report
XYLEM INC (XYL): Free Stock Analysis Report
ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Industrial tool maker, Stanley Black & Decker, Inc.SWK is scheduled to report first-quarter 2015 results on Apr 23 before the market opens. Factors to Influence Q1 Results Operating environment for the U.S.-based industrial tool makers, like Stanley Black & Decker, was difficult in first-quarter 2015. However, Stanley Black & Decker's strategy of shifting its business portfolio toward better growth markets as well as its commitment to reward shareholders handsomely will work in its favor in the coming quarters.
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Industrial tool maker, Stanley Black & Decker, Inc.SWK is scheduled to report first-quarter 2015 results on Apr 23 before the market opens. Stocks to Consider Here are some companies you may want to consider in the machinery industry as our model shows they have the right combination of elements to post an earnings beat this quarter: Deere & Company DE , with an Earnings ESP of +3.80% and a Zacks Rank #3. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report STANLEY B&D INC (SWK): Free Stock Analysis Report XYLEM INC (XYL): Free Stock Analysis Report ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank: Stanley Black & Decker carries a Zacks Rank #3 (Hold). Stocks to Consider Here are some companies you may want to consider in the machinery industry as our model shows they have the right combination of elements to post an earnings beat this quarter: Deere & Company DE , with an Earnings ESP of +3.80% and a Zacks Rank #3. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report STANLEY B&D INC (SWK): Free Stock Analysis Report XYLEM INC (XYL): Free Stock Analysis Report ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here.
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Industrial tool maker, Stanley Black & Decker, Inc.SWK is scheduled to report first-quarter 2015 results on Apr 23 before the market opens. Zacks Rank: Stanley Black & Decker carries a Zacks Rank #3 (Hold). Stanley Black & Decker performed well in the last four trailing quarters, with an average positive earnings surprise of 6.07%.
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fa70d8db-7c73-4f47-961f-82bdde9f0927
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722816.0
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2015-04-11 00:00:00 UTC
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The Best Stocks to Invest in Companies Buffett Would Love
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https://www.nasdaq.com/articles/best-stocks-invest-companies-buffett-would-love-2015-04-11
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nan
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nan
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People like to follow Warren Buffett's investments, and for good reason . Berkshire Hathaway 's stock portfolio has produced fantastic gains over the years, and it continues to perform well.
But what if you don't want to buy any of Buffett's current stocks? Maybe you think they're too expensive, or don't pay sufficient dividends. By using the same criteria Buffett uses to pick stocks, you can find companies the Oracle of Omaha would love.
What does Warren Buffett look for when picking stocks?
Buffett looks for a few things when valuing stocks. First, the companies he invests in must have a solid track record of performance. They must have produced a solid return on equity, or ROE, for a number of years, have a good profit margin, and have an acceptable history of growth. This pretty much rules out new or speculative companies, which are noticeably absent from Berkshire's portfolio.
Another thing Buffett look at is a company's debt -- specifically the lack of debt. Avoiding debt is one reason Buffett's portfolio has performed so well in bad economic conditions, so a company with an "unacceptable" or risky level of debt would likely be excluded from consideration.
Perhaps most importantly, Buffett looks for companies with a "wide moat," or a distinct business advantage that will keep them profitable for years to come. This could mean the company has a unique or superior product, which can be said of Berkshire stocks such as Deere & Co. , Coca-Cola , and American Express . Or the company could have a way of doing business more efficiently than its competition, like Wal-Mart or ExxonMobil .
A few examples
It's tough to definitively say Buffett would love any companies he doesn't already own, because certain criteria like an "acceptable ROE," "good profitability", and "reasonable debt" are open to interpretation. Having said that, here are a few companies that I believe Warren Buffett would love.
Google : Google has little long-term debt, and has grown its earnings and revenue by a 26% average annual rate over the past 10 years. Google's "wide moat" is its dominant position in its primary business (Internet search), which sits at about 65% of all search traffic worldwide, with an extremely dominant 85% share of mobile search.
Whole Foods (NASDAQ: WFM): No long-term debt and fantastic revenue growth averaging about 13% per year for the past decade. Also, the company has remained profitable no matter what the economy is doing. Whole Foods' competitive advantage is that it sells superior products for which its customers are willing to pay top dollar.
Dick's Sporting Goods : The sporting goods giant has done a great job of increasing revenue and carries no long-term debt whatsoever. Its size gives it a distinct competitive advantage over smaller sporting goods retailers, and its "store-within-a-store" concept is unique among large sporting goods stores.
Can you find some more?
These are just a few examples, and plenty of other stocks could fit into Buffett's investment strategy. And, of course, this discussion is a simplification, as the process Buffett uses before investing billions of dollars is more complex than the one listed here. However, these basic rules still apply.
By finding these types of companies, and using them to build a diverse, low-risk portfolio, you could produce incredible long-term performance without leaving your portfolio susceptible to recessions, market crashes, and other headwinds.
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.
The article The Best Stocks to Invest in Companies Buffett Would Love originally appeared on Fool.com.
John Mackey, co-CEO of Whole Foods Market, is a member of The Motley Fool's board of directors. Matthew Frankel owns shares of American Express, Berkshire Hathaway, Google (C shares), and Whole Foods Market. The Motley Fool recommends American Express, Berkshire Hathaway, Coca-Cola, Google (A shares), Google (C shares), and Whole Foods Market. The Motley Fool owns shares of Berkshire Hathaway, ExxonMobil, Google (A shares), Google (C shares), and Whole Foods Market and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few examples It's tough to definitively say Buffett would love any companies he doesn't already own, because certain criteria like an "acceptable ROE," "good profitability", and "reasonable debt" are open to interpretation. Whole Foods (NASDAQ: WFM): No long-term debt and fantastic revenue growth averaging about 13% per year for the past decade. Maybe you think they're too expensive, or don't pay sufficient dividends.
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Maybe you think they're too expensive, or don't pay sufficient dividends. Another thing Buffett look at is a company's debt -- specifically the lack of debt. Avoiding debt is one reason Buffett's portfolio has performed so well in bad economic conditions, so a company with an "unacceptable" or risky level of debt would likely be excluded from consideration.
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A few examples It's tough to definitively say Buffett would love any companies he doesn't already own, because certain criteria like an "acceptable ROE," "good profitability", and "reasonable debt" are open to interpretation. Maybe you think they're too expensive, or don't pay sufficient dividends. Another thing Buffett look at is a company's debt -- specifically the lack of debt.
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A few examples It's tough to definitively say Buffett would love any companies he doesn't already own, because certain criteria like an "acceptable ROE," "good profitability", and "reasonable debt" are open to interpretation. Maybe you think they're too expensive, or don't pay sufficient dividends. Another thing Buffett look at is a company's debt -- specifically the lack of debt.
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4de8988b-7b8b-44c4-b2b3-a7dffcdd9ed2
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722817.0
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2015-04-02 00:00:00 UTC
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Investment Strategies: Caterpillar Inc. vs. Deere & Company
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DE
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https://www.nasdaq.com/articles/investment-strategies-caterpillar-inc-vs-deere-company-2015-04-02
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nan
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nan
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Ask any investor or hedge-fund manager what his favorite stock pairs are and Caterpillar and Deere & Company are likely to feature near the top of the list. The two are oft discussed in the same breath as their investment propositions are believed to have had much in common during the last decade. However, on closer inspection the two stocks actually have notably different drivers. Let's take a look at them and, in doing so, assess what will guide their stock performance in 2015.
CAT data by YCharts
Caterpillar and Deere & Company, not quite a perfect pair
The chart above shows how both stocks underperformed the S&P 500 in the last five years, and how Deere has outperformed Caterpillar. More insight is gained by looking at a breakout of segmental profit for the two companies, starting with Deere.
The chart demonstrates that Deere is primarily an agricultural company while, whose growth prospects are largely dependent on a combination of farmers income and their propensity to spend on agricultural machinery -- historically the two things are closely correlated. In turn, farmers income Deere prospects are governed by the outlook for key crop prices such as corn, wheat and soybeans. The following article on Warren Buffett's position building in the company helps to explain the investment thesis for the stock.
In comparison, the following chart shows how Caterpillar generated profit during the last few years. You should note the significant fall in profitability in the Resource Industries segment -- a consequence of falling hard mining commodity prices. It's clear that the two companies have an industry overlap in construction, but it represents a relatively small part of Deere's profits. As for Caterpillar, interested readers can find a more in depth analysis of its current trading prospects in the article linked.
Specific end market drivers
In order to illustrate the point further, I've prepared a tabulated outline of each segment for the two companies (excluding their financial arms).
Source: Caterpillar 10k filing, Deere & Company 10k filing
Putting aside the overlap in construction, the table above outlines how different the two companies' end market drivers are. With that said, why have they been traditionally seen as pairs?
In one word, the answer is China. The idea is that the emerging middle classes in China -- and to a lesser extent India, too -- are believed to be creating a long-term upward demand trend for both mining and agricultural commodities. In other words, both hard (base mining) and soft (agricultural) commodities have a common end-demand driver.
When middle classes emerge in developing countries -- particularly when accompanied by a shift toward urbanization -- the result is usually an increase in protein consumption. The oft-quoted factoid that it takes 7kg of grain to produce 1kg of meat is subject to debate , but the argument relates to the amount of grain needed, not that grain demand will increase disproportionately when people eat more protein. The end result of increased demand should be higher crop prices -- great news for Deere.
Similarly, the trend toward urbanization in developing countries is believed to create long-term demand for mining commodities, via infrastructure built out to support the growing urban population -- good news for Caterpillar's construction, resources and energy interests.
Four reasons why the theory doesn't work
First, although hard and soft commodity prices have moved seemingly in tandem during the last few years, there is no good reason why they should remain so.
U.S. Corn Farm Price Received data by YCharts
In fact, a longer-term view shows some significant divergence.
U.S. Corn Farm Price Received data by YCharts
Second, China actually imported record volumes of commodities last year, but it still wasn't enough to pull key commodity prices (hard and soft) out of their slump. Commodity end demand (hard or soft) isn't just about China.
Third, China's growth in industrial production is slowing anyway.
Fourth, the supply of crop prices is contingent upon weather conditions and their effect on crop yields , rather than purely economic factors.
Forget about pairing
All told, the two stocks do have much in common, but not enough to pair them together unconditionally. If you want to buy Deere or Caterpillar, or both, you will need to look at prospects for each company separately. They are not interchangeable, and anyone devising a pair-based investing strategy needs to consider this carefully.
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.
The article Investment Strategies: Caterpillar Inc. vs. Deere & Company originally appeared on Fool.com.
Lee Samaha has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In turn, farmers income Deere prospects are governed by the outlook for key crop prices such as corn, wheat and soybeans. Specific end market drivers In order to illustrate the point further, I've prepared a tabulated outline of each segment for the two companies (excluding their financial arms). The idea is that the emerging middle classes in China -- and to a lesser extent India, too -- are believed to be creating a long-term upward demand trend for both mining and agricultural commodities.
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Similarly, the trend toward urbanization in developing countries is believed to create long-term demand for mining commodities, via infrastructure built out to support the growing urban population -- good news for Caterpillar's construction, resources and energy interests. The article Investment Strategies: Caterpillar Inc. vs. Deere & Company originally appeared on Fool.com. Ask any investor or hedge-fund manager what his favorite stock pairs are and Caterpillar and Deere & Company are likely to feature near the top of the list.
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CAT data by YCharts Caterpillar and Deere & Company, not quite a perfect pair The chart above shows how both stocks underperformed the S&P 500 in the last five years, and how Deere has outperformed Caterpillar. Source: Caterpillar 10k filing, Deere & Company 10k filing Putting aside the overlap in construction, the table above outlines how different the two companies' end market drivers are. Ask any investor or hedge-fund manager what his favorite stock pairs are and Caterpillar and Deere & Company are likely to feature near the top of the list.
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In other words, both hard (base mining) and soft (agricultural) commodities have a common end-demand driver. Commodity end demand (hard or soft) isn't just about China. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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722818.0
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2015-04-01 00:00:00 UTC
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Deere (DE) Divests Crop Insurance Unit to Farmers Mutual - Analyst Blog
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DE
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https://www.nasdaq.com/articles/deere-de-divests-crop-insurance-unit-to-farmers-mutual-analyst-blog-2015-04-01
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nan
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Deere & CompanyDE has divested its crop insurance unit to West Des Moines, IA-based Farmers Mutual Hail Insurance Company (FMH), as agreed upon in Dec 2014. The sale includes both John Deere Insurance Company and John Deere Risk Protection, Inc., which together made up the business unit.
Deere has been involved in the crop insurance business for nine years. The business underwrites policies through John Deere Insurance Company, a business unit within John Deere Financial. In Sep 2014, Deere planned to review strategic options for the crop insurance unit to focus on its core businesses owing to price declines and falling demand which made the business less profitable.
Deere will continue to design, manufacture and offer technology, equipment and services in its precision agriculture offerings. Notably, effective risk management remains an important factor for the company's operations.
In order to strengthen its core business Deere announced workforce adjustments at several factories in Iowa and Illinois in Jan 2015. The actions include indefinite layoffs at five locations as well as an extended inventory adjustment shutdown at a factory. In addition, the company declared that it has added new jobs at two locations that build construction and forestry equipment.
Deere has been persistently shedding its non-core assets in order to become a more focused and profitable company and has completed the sale of its irrigation unit and a majority interest in its landscape operations. Simultaneously, the company has been prudent in its manufacturing operations as it continues to adjust production levels according to demand.
The company also announced an expansion of its product engineering center in Iowa as it has always been committed to research and development of new and improved technologies and products. Deere spent $2.5 billion on R&D and capital projects in 2014. The company introduced some agricultural products in 2014 including four wheel drive tractors and planters that can double field speeds and maintain accurate planting.
Long-term outlook for Deere remains strong on the back of increased global demand for food, shelter and infrastructure. While, in the near term, even though net farm income remains at high levels, farmer sentiments regarding capital goods purchases are becoming more conservative due to lower commodity prices.
Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada through branch offices as well as through distributors and operates through dealers to resell products internationally.
Deere currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include AO Smith Corp. AOS , Astec Industries, Inc. ASTE and Bemis Company, Inc. BMS . All of these stocks carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
BEMIS (BMS): Free Stock Analysis Report
SMITH (AO) CORP (AOS): Free Stock Analysis Report
ASTEC INDS INC (ASTE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere has been persistently shedding its non-core assets in order to become a more focused and profitable company and has completed the sale of its irrigation unit and a majority interest in its landscape operations. Deere & CompanyDE has divested its crop insurance unit to West Des Moines, IA-based Farmers Mutual Hail Insurance Company (FMH), as agreed upon in Dec 2014. The sale includes both John Deere Insurance Company and John Deere Risk Protection, Inc., which together made up the business unit.
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The sale includes both John Deere Insurance Company and John Deere Risk Protection, Inc., which together made up the business unit. Some better-ranked stocks in the sector include AO Smith Corp. AOS , Astec Industries, Inc. ASTE and Bemis Company, Inc. BMS . Click to get this free report DEERE & CO (DE): Free Stock Analysis Report BEMIS (BMS): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report ASTEC INDS INC (ASTE): Free Stock Analysis Report To read this article on Zacks.com click here.
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The sale includes both John Deere Insurance Company and John Deere Risk Protection, Inc., which together made up the business unit. The business underwrites policies through John Deere Insurance Company, a business unit within John Deere Financial. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report BEMIS (BMS): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report ASTEC INDS INC (ASTE): Free Stock Analysis Report To read this article on Zacks.com click here.
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The sale includes both John Deere Insurance Company and John Deere Risk Protection, Inc., which together made up the business unit. In Sep 2014, Deere planned to review strategic options for the crop insurance unit to focus on its core businesses owing to price declines and falling demand which made the business less profitable. Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide.
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878f7ef9-3565-4180-ae4c-7c22a62988fa
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722819.0
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2015-03-27 00:00:00 UTC
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DE Crosses Below Key Moving Average Level
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DE
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https://www.nasdaq.com/articles/de-crosses-below-key-moving-average-level-2015-03-27
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nan
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nan
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.16, changing hands as low as $86.91 per share. Deere & Co. shares are currently trading off about 0.4% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $87.06.
According to the ETF Finder at ETF Channel, DE makes up 7.80% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.2% on the day Friday.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.16, changing hands as low as $86.91 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $87.06. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.16, changing hands as low as $86.91 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $87.06. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.16, changing hands as low as $86.91 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $87.06. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.16, changing hands as low as $86.91 per share. According to the ETF Finder at ETF Channel, DE makes up 7.80% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.2% on the day Friday. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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722820.0
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2015-03-27 00:00:00 UTC
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The Warren Buffett Portfolio: 5 Most Recent Stock Buys
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https://www.nasdaq.com/articles/warren-buffett-portfolio-5-most-recent-stock-buys-2015-03-27
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By John Divine, InvestorPlace Assistant Editor
Warren Buffett has made billions of dollars by simply buying stocks and holding them for the long term.
In fact, he’s made more than $70 billion through his buy-and-hold investing style, and ranks as the third-richest person in the world according to Forbes.
While you may not be able to become a multibillionaire like the Oracle of Omaha, replicating his strategy isn’t hard to do. When he bets, he bets big — more than 63% of Warren Buffett’s portfolio is allocated to just four stocks — and he usually wagers correctly.
PLUS: 5 Bargain Buys to Make in Europe Now
Luckily for us common folk, the acquisitions that Buffett makes through his holding company, Berkshire Hathaway Inc. (BRK-A, BRK-B), are disclosed to the SEC and become public knowledge the quarter after their purchase.
Last quarter, Buffett snapped up the following five stocks at a blistering pace. Two stocks were already owned by Berkshire, while three of them were entirely new additions to the portfolio.
Restaurant Brands International Inc (QSR)
Market Capitalization:$7.8 billion
Position: New
Restaurant Brands International Inc (QSR), the parent company of the fast food chain Burger King and the Canada-based restaurant Tim Horton’s, saw Buffett snap up $3 billion worth of preferred shares as well as common stock valued at $330 million. But the specific terms of the deal are what make Buffett the legend that he is.
First of all, his preferred shares pay a 9% dividend annually, a rate that’s essentially impossible to find in investments with a similar risk profile, especially in today’s low interest rate environment. Through his $3 billion investment, Berkshire controls 13% of the voting shares in the company.
But what’s far more interesting is the $330 million in QSR common stock Buffett now owns. As part of his agreement with QSR, Berkshire was given warrants to buy 8.4 million shares of common stock for 1 cent per share. With the QSR stock price trading around $32 at the time, Berkshire exercised its warrants for a cost of about $84,000, making $275 million overnight.
While retail investors will never be able to swing these type of sweetheart deals, it could bode well for QSR stock. Back in 2011, Bank of America Corp (BAC) turned to Buffett for a $5 billion capital injection. At the time its shares traded for $7.55 a pop, and less than four years later they have more than doubled.
Precision Castparts Corp. (PCP)
Market Capitalization: $30 billion
Position: Increased
Buffett’s Berkshire already owned a few million shares of Precision Castparts Corp. (PCP), but it increased its holdings by 37% last quarter. Buffett likes large, predictable businesses that won’t go out of style any time soon, and PCP certainly fits that mold.
The company makes castings, fasteners and other parts that are widely used by industrial and power companies to make end products of their own. The large majority of PCP’s customers hail from the aerospace industry, with Boeing Co (BA) and Airbus Group (OTCMKTS:EADSY) registering as some of the company’s largest clients in the commercial space.
PCP also sells to the military, with 11% of total sales coming from that division last year. PCP stock is down 16% in the last year, so investors have a rare chance to buy the stock at a cheaper price than Buffett himself did with his most recent purchase.
Charter Communications, Inc. (CHTR)
Market Capitalization: $20 billion
Position: Increased
Warren Buffett also hiked his investment in cable company Charter Communications, Inc. (CHTR) considerably last quarter, upping his stake by 25%.
CHTR competes with a handful of large-cap rivals in the area, such as Time Warner Cable Inc (TWC), DirecTV (DTV), Dish Network Corp (DISH) and others. (Buffett also owns DirecTV stock and increased that position by 4.5% last quarter.)
While Charter isn’t currently profitable, it’s growing. Revenue growth has actually been accelerating for the last three fiscal years, increasing from 2% per annum in 2011 to more than 11% annually in 2014.
In a cutthroat industry that’s increasingly consolidating, I wouldn’t be shocked to see a CHTR stock buyout in the next few years. Unless the cord-cutting trend swiftly upends cable as we know it, Charter should be a safe stock pick going forward — Buffett’s favorite.
Twenty-First Century Fox Inc (FOXA)
Market Capitalization: $73 billion
Position: New
Warren Buffett continues to go long on the media industry. Through Berkshire, Buffett purchased 4.7 million shares of Twenty-First Century Fox Inc (FOXA) stock in the fourth quarter.
On top of initiating a position in FOXA and increasing his take in CHTR and DTV stock, he also boosted his investment in Liberty Global (LBTYA) — a cable provider in Europe, Chile, Puerto Rico and other countries across the globe.
Ironically, it’s not news that Buffett is crazy for media companies; Berkshire owns 30 daily print newspapers in 11 states. FOXA owns Fox-branded networks including Fox News and Fox Sports, and also produces TV shows and movies.
Although FOXA is expected to see slumping revenues this year, EPS is projected to jump 9.6% in fiscal 2015 and 21% in fiscal 2016. Trading at 8 times earnings and dishing out a 0.8% dividend, the stock looks like a steal at current levels.
Deere & Company (DE)
Market Capitalization: $30 billion
Position: New
Last and most certainly not least, Buffett made a major addition to his portfolio, accumulating 4.5% of all outstanding shares in Deere & Company (DE), the business behind the iconic John Deere brand.
DE stock is now one of the 15 largest positions in Berkshire’s portfolio and it’s already starting to pay off. Not only does DE stock boast a 2.7% annual dividend that Berkshire will be enjoying for years to come, but Berkshire’s already seen more than $100 million in capital gains since its purchase last quarter.
As InvestorPlace feature writer Dan Burrows notes, Deere is in many ways a classic Buffett investment. With crop prices suffering, farmers have less money to spend on equipment, so Deere hasn’t been doing so hot recently. But agriculture is a notoriously cyclical area, and Buffett loves to buy at the bottom.
Plus, the company is managing this pullback better than it has previously:
“Deere & Company is forecasting a much better performance in 2015 versus prior downturns in the agricultural market. From 1990 to 1992, Deere & Company’s net income fell about 90%. In the downturn of 1998 to 1999, net income tumbled roughly 77%.
But as for this latest round of retrenchment — from 2013 through 2015 — Deere & Company expects net income to fall less than 50%.”
So, there you have it. The five newest additions to Warren Buffett’s portfolio. What do you think about the Oracle of Omaha’s most recent buys? Leave your thoughts in the “comments” section below.
As of this writing John Divine held no positions in any of the stocks mentioned. You can follow him on Twitter at @divinebizkid or email him at editor@investorplace.com.
Plus:
Are Wall Street’s 10 Biggest Stocks Also the 10 Best Stocks?
Urban Outfitters: Off-Beat But On Track for Success
5 Blue-Chip Stocks Poised for a Turnaround
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By John Divine, InvestorPlace Assistant Editor Warren Buffett has made billions of dollars by simply buying stocks and holding them for the long term. On top of initiating a position in FOXA and increasing his take in CHTR and DTV stock, he also boosted his investment in Liberty Global (LBTYA) — a cable provider in Europe, Chile, Puerto Rico and other countries across the globe. In fact, he’s made more than $70 billion through his buy-and-hold investing style, and ranks as the third-richest person in the world according to Forbes.
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Charter Communications, Inc. (CHTR) Market Capitalization: $20 billion Position: Increased Warren Buffett also hiked his investment in cable company Charter Communications, Inc. (CHTR) considerably last quarter, upping his stake by 25%. By John Divine, InvestorPlace Assistant Editor Warren Buffett has made billions of dollars by simply buying stocks and holding them for the long term. In fact, he’s made more than $70 billion through his buy-and-hold investing style, and ranks as the third-richest person in the world according to Forbes.
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Deere & Company (DE) Market Capitalization: $30 billion Position: New Last and most certainly not least, Buffett made a major addition to his portfolio, accumulating 4.5% of all outstanding shares in Deere & Company (DE), the business behind the iconic John Deere brand. By John Divine, InvestorPlace Assistant Editor Warren Buffett has made billions of dollars by simply buying stocks and holding them for the long term. In fact, he’s made more than $70 billion through his buy-and-hold investing style, and ranks as the third-richest person in the world according to Forbes.
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Charter Communications, Inc. (CHTR) Market Capitalization: $20 billion Position: Increased Warren Buffett also hiked his investment in cable company Charter Communications, Inc. (CHTR) considerably last quarter, upping his stake by 25%. Deere & Company (DE) Market Capitalization: $30 billion Position: New Last and most certainly not least, Buffett made a major addition to his portfolio, accumulating 4.5% of all outstanding shares in Deere & Company (DE), the business behind the iconic John Deere brand. By John Divine, InvestorPlace Assistant Editor Warren Buffett has made billions of dollars by simply buying stocks and holding them for the long term.
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722821.0
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2015-03-26 00:00:00 UTC
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10 Warren Buffett Stocks to Watch in 2015
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https://www.nasdaq.com/articles/10-warren-buffett-stocks-watch-2015-2015-03-26
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MoneyMorning.com Report - As of March 25, Warren Buffett's net worth is $70.9 billion. According to Forbes , he's the third-wealthiest billionaire and 12th most powerful person on the planet.
That's because Warren Buffett stocks are profit gold mines - and the " Oracle of Omaha " just made another gold mine out of the two most recognizable food brands in the world.
Yesterday Buffett 's Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B), along with Brazil's 3G Capital Inc., oversaw the merger of the H.J. Heinz Company and Kraft Foods Group Inc. (Nasdaq: KRFT). It will be called the Kraft Heinz Company and become the fifth largest food and beverage company in the world.
Berkshire owned 192,666 Kraft shares as of Dec. 31. After KRFT jumped 36% or $21.87 in pre-market trade yesterday, that stake grew $4.2 million more valuable.
Buffett said he's liked the Kraft and Heinz brands for over 30 years and believes he'll like them 30 years from now.
"I am delighted to play a part in bringing these two winning companies and their iconic brands together," said Warren Buffett in a statement. "This is my kind of transaction, uniting two world-class organizations and delivering shareholder value."
That's just one of his stocks set for an interesting year. Here are 10 more Warren Buffett stocks to watch in 2015 for big gains...
Warren Buffett Stocks to Watch in 2015
Warren Buffett Stocks, No. 1: Deere & Co. ( DE ) manufactures and distributes agriculture equipment worldwide. It's commonly known by brand name, John Deere, and sells tractors, excavators, bulldozers, and lawn mowers, among other products. Berkshire Hathaway purchased 17.1 million shares last quarter. DE stock now constitutes 1.4% of Buffett's portfolio. Its share price is slightly down, losing 0.2% so far this year.
Money Morning Members: Keep reading for nine more Warren Buffett stocks to follow in 2015. For those new to Money Morning , sign up to keep reading - it's completely free...
Warren Buffett Stocks, No. 2: Restaurant Brands International Inc. ( QSR ) is a fast food company formed during the 2014 merger of American chain Burger King and Canadian chain Tim Hortons. Last fall, Buffett added QSR to his fast food empire - which also includes 100% ownership of Dairy Queen and 9.2% of The Coca-Cola Co. ( KO ). Berkshire bought 8.4 million shares of QSR last quarter, comprising 0.3% of the company's portfolio. Restaurant Brands has dropped 0.7% this year.
Warren Buffett Stocks, No. 3: Twenty-First Century Fox Inc. (Nasdaq: FOXA) is a global media conglomerate that owns assets such as Fox Broadcasting Company and National Geographic. According to 13F filings, Buffett bought 4.7 million FOXA shares in Q4 2014. It now makes up 0.2% of Berkshire's portfolio. FOXA stock has tumbled 10.8% since Dec. 31 despite a 10.3% revenue increase from Q4 2013 to Q4 2014.
Warren Buffett Stocks, No. 4: International Business Machines Corp. ( IBM ) provides hardware, software, infrastructure, and IT support across a range of computer systems. In 2014, it was ranked the fourth largest tech company in the world by market cap. Berkshire Hathaway upped its stake in the stock to 11.3% by acquiring 6.5 million more shares. That brings Buffett's total shares to 77 million. The tech titan represents 11.3% of Berkshire Hathaway's portfolio. IBM stock has lost 1.24% this year.
Warren Buffett Stocks, No. 5: Suncor Energy Inc. ( SU ) specializes in developing petroleum basins in Canada's Athabasca oil sands. It explores, acquires, and produces crude oil and natural gas. In the fourth quarter, Buffett increased his stake in Suncor by 21%. That's an additional 3.9 million shares, bringing Berkshire's SU holdings to 22.4 million. It comprises 0.7% of Berkshire's portfolio. Suncor's stock has plummeted 8.8% this year alongside oil prices .
Warren Buffett Stocks, No. 6: DIRECTV (Nasdaq: DTV) is an American television service provider. The company sells and distributes digital entertainment programming to residential and commercial subscribers. Berkshire bought 1.4 million more shares of DTV last fall. The transaction boosted Buffett's ownership 4.5% to 31.4 million shares. DIRECTV's stock has dropped 1.4% so far in 2015.
Warren Buffett Stocks, No. 7: Charter Communications Inc. (Nasdaq: CHTR) provides cable, Internet, and telephone services. As of Dec. 31, it served about 4.8 million residential Internet customers. Charter constitutes 0.9% of Berkshire's holdings after Buffett bought 1.2 million more shares last quarter. The purchase brought Buffett's total CHTR shares to 6.2 million. CHTR has been on a tear, gaining 9.8% so far this year.
Warren Buffett Stocks, No. 8: General Motors Co. (GM) has become known more for taking its products back than selling them. The company issued 34 recalls last year and just recalled 92,000 Chevrolet Malibu sedans with faulty sunroof controls. General Motors produces vehicles in 37 countries under 13 brands. Buffett purchased 1 million more GM shares in Q4. The transaction increased his stake in the company by 2.5% and brought his total ownership to 41 million shares. Despite the bad press, GM stock has risen 7.1% since Dec. 31.
Warren Buffett Stocks, No. 9: DaVita HealthCare Partners Inc. (DVA) offers healthcare services for patients with chronic kidney diseases. As of last year, DaVita operates in 46 states and serves approximately 173,000 patients. Berkshire boosted its number of DVA shares by 2.5%, adding 944,418 and bringing its total shares to 38.6 million. The company is up 7% in 2015.
Warren Buffett Stocks, No. 10: Viacom Inc. (Nasdaq: VIAB) is a mass media company that creates TV programs, movies, games, consumer products, and other content. It's the fifth-largest American media conglomerate by revenue. Buffett increased his stake in the company's Class-B stock by 12% last quarter, bringing his total ownership to 8.6 million shares. Viacom makes up 0.6% of his portfolio. VIAB stock has fallen 10% so far this year.
To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free . Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. That's because Warren Buffett stocks are profit gold mines - and the " Oracle of Omaha " just made another gold mine out of the two most recognizable food brands in the world.
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That's because Warren Buffett stocks are profit gold mines - and the " Oracle of Omaha " just made another gold mine out of the two most recognizable food brands in the world. Berkshire owned 192,666 Kraft shares as of Dec. 31. After KRFT jumped 36% or $21.87 in pre-market trade yesterday, that stake grew $4.2 million more valuable.
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That's because Warren Buffett stocks are profit gold mines - and the " Oracle of Omaha " just made another gold mine out of the two most recognizable food brands in the world. Berkshire owned 192,666 Kraft shares as of Dec. 31. After KRFT jumped 36% or $21.87 in pre-market trade yesterday, that stake grew $4.2 million more valuable.
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That's because Warren Buffett stocks are profit gold mines - and the " Oracle of Omaha " just made another gold mine out of the two most recognizable food brands in the world. Berkshire owned 192,666 Kraft shares as of Dec. 31. After KRFT jumped 36% or $21.87 in pre-market trade yesterday, that stake grew $4.2 million more valuable.
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722822.0
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2015-03-26 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for March 27, 2015
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-march-27-2015-2015-03-26
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Deere & Company ( DE ) will begin trading ex-dividend on March 27, 2015. A cash dividend payment of $0.6 per share is scheduled to be paid on May 01, 2015. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that DE has paid the same dividend.
The previous trading day's last sale of DE was $88.3, representing a -6.94% decrease from the 52 week high of $94.89 and a 11.94% increase over the 52 week low of $78.88.
DE is a part of the Capital Goods sector, which includes companies such as Danaher Corporation ( DHR ) and Thermo Fisher Scientific Inc ( TMO ). DE's current earnings per share, an indicator of a company's profitability, is $7.93. Zacks Investment Research reports DE's forecasted earnings growth in 2015 as -38.2%, compared to an industry average of 8.5%.
For more information on the declaration, record and payment dates, visit the DE Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DE through an Exchange Traded Fund [ETF]?
The following ETF(s) have DE as a top-10 holding:
Market Vectors Agribusiness ETF ( MOO )
PowerShares DWA Industrials Momentum Portfolio ( PRN )
iShares iBonds Mar Bond Corporate ex-Financials Term ETF ( IBCE )
iShares iBonds Mar 2020 Corporate Term ETF ( IBDC ).
The top-performing ETF of this group is PRN with an increase of 4.71% over the last 100 days. MOO has the highest percent weighting of DE at 6.95%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DE is a part of the Capital Goods sector, which includes companies such as Danaher Corporation ( DHR ) and Thermo Fisher Scientific Inc ( TMO ). Zacks Investment Research reports DE's forecasted earnings growth in 2015 as -38.2%, compared to an industry average of 8.5%. For more information on the declaration, record and payment dates, visit the DE Dividend History page.
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The following ETF(s) have DE as a top-10 holding: Market Vectors Agribusiness ETF ( MOO ) PowerShares DWA Industrials Momentum Portfolio ( PRN ) iShares iBonds Mar Bond Corporate ex-Financials Term ETF ( IBCE ) iShares iBonds Mar 2020 Corporate Term ETF ( IBDC ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere & Company ( DE ) will begin trading ex-dividend on March 27, 2015.
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the DE Dividend History page. The following ETF(s) have DE as a top-10 holding: Market Vectors Agribusiness ETF ( MOO ) PowerShares DWA Industrials Momentum Portfolio ( PRN ) iShares iBonds Mar Bond Corporate ex-Financials Term ETF ( IBCE ) iShares iBonds Mar 2020 Corporate Term ETF ( IBDC ).
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A cash dividend payment of $0.6 per share is scheduled to be paid on May 01, 2015. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. DE's current earnings per share, an indicator of a company's profitability, is $7.93.
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2015-03-11 00:00:00 UTC
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Caterpillar Revised To $85 On Oil Prices, Continued Mining Weakness
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https://www.nasdaq.com/articles/caterpillar-revised-85-oil-prices-continued-mining-weakness-2015-03-11
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Caterpillar's ( CAT ) revenue been suffering from a decline in its Resource Industries segment due to weak demand for machinery and equipment in the global mining sector since the end of 2012. To add to its woes, crude oil prices have declined to a level where Caterpillar's (CAT's) Energy and Transportation segment will feel the pinch. This is a cause for concern for the company, since Energy and Transportation was the segment that it was relying on for growth in the short term, as the company's Construction Industries segment also took a dive in the third quarter of 2014. The strong U.S. dollar is also likely to have an impact on the company's revenues. Given these headwinds, we have revised our price estimate for Caterpillar to $85.
See our complete analysis of CAT here
Low Crude Oil Prices To Impact Sales
Things aren't looking good for crude oil prices in the near future. According to the February release of the U.S. Energy Information Administration's ( EIA ) Short Term Energy Outlook report, global crude oil inventories are likely to remain high. Global crude oil production is expected to be 93.8 million barrels per day in 2015, while consumption will remain considerably lower at 93.1 million barrels per day.
Apart from growth in production in the U.S., global crude oil supply is also receiving a boost due to the unwillingness of the Organization of the Petroleum Exporting Countries to lower their output, fearing that it will negatively impact their market share. On the demand side, China, the largest oil importer in the world, is likely to import less in the near term given that its GDP growth is expected to decline from 7.4% in 2014 to 7.0% in 2015.
With a demand-supply mismatch, crude oil prices will likely remain low. The EIA forecasts an average price of $58/bbl for Brent crude oil and $55/bbl for WTI crude oil in 2015. This sparks a concern for Caterpillar, whose sales to the oil and gas industry account for around a third of its Energy and Transportation revenue. According to Caterpillar and its customers, crude oil prices within the range of $80-90 were acceptable for sustained production. However, management mentioned that prices in the low 70s "would bring a chill across the market" and will likely impact Caterpillar's business. Given that crude oil prices are presently significantly lower than Caterpillar and its customers' threshold, its Energy and Transportation sales are likely to decline.
Caterpillar's Machine Retail Statistics Remain Weak
Huge asset write-offs and declining commodity prices have forced mining companies to reduce their capital spending in terms of purchasing new equipment or spare parts. As a result, the revenue for Caterpillar's Resource Industries segment, which sells mining equipment, declined 37% and 33% year-on-year in 2013 and 2014, respectively.
Retail statistics released by Caterpillar for the three month rolling period ended January 2015 shows that mining equipment sales remain weak. For the better part of 2014, the decline in Resource Industries retail sales was moderating. However, the trend broke in November, with retail sales declining 23%, compared to a 20% decline in the three months ended October. Retail sales continued to fall in the next two months, declining 22% in December and 27% in January. With most oil and gas exploration and production companies reducing their capital spending budgets for the year, it is likely that mining equipment sales will remain low, leading to continued decline in Caterpillar's Resource Industries sales in 2015.
Caterpillar's Construction Industries retail sales also continued to fall, with the declines becoming heavier every month. Retail sales declined 10% in the three months ended January, compared to 9% in the three months ended December and 6% in the three months ended November. The Brazilian economy, tough year-on-year comparison with Latin American markets, and a slowdown in construction activity in China will continue to take a toll on Caterpillar's Construction Industries segment. Also, the segment is likely to suffer due to its indirect reliance on oil and gas industry. A considerable portion of Construction Industries sales is tied to frac pads, roads to drilling sites or pipelines, which could decline as a result of the weak crude oil prices.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apart from growth in production in the U.S., global crude oil supply is also receiving a boost due to the unwillingness of the Organization of the Petroleum Exporting Countries to lower their output, fearing that it will negatively impact their market share. Caterpillar's Machine Retail Statistics Remain Weak Huge asset write-offs and declining commodity prices have forced mining companies to reduce their capital spending in terms of purchasing new equipment or spare parts. A considerable portion of Construction Industries sales is tied to frac pads, roads to drilling sites or pipelines, which could decline as a result of the weak crude oil prices.
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Caterpillar's ( CAT ) revenue been suffering from a decline in its Resource Industries segment due to weak demand for machinery and equipment in the global mining sector since the end of 2012. With most oil and gas exploration and production companies reducing their capital spending budgets for the year, it is likely that mining equipment sales will remain low, leading to continued decline in Caterpillar's Resource Industries sales in 2015. To add to its woes, crude oil prices have declined to a level where Caterpillar's (CAT's) Energy and Transportation segment will feel the pinch.
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See our complete analysis of CAT here Low Crude Oil Prices To Impact Sales Things aren't looking good for crude oil prices in the near future. Given that crude oil prices are presently significantly lower than Caterpillar and its customers' threshold, its Energy and Transportation sales are likely to decline. With most oil and gas exploration and production companies reducing their capital spending budgets for the year, it is likely that mining equipment sales will remain low, leading to continued decline in Caterpillar's Resource Industries sales in 2015.
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As a result, the revenue for Caterpillar's Resource Industries segment, which sells mining equipment, declined 37% and 33% year-on-year in 2013 and 2014, respectively. Caterpillar's Construction Industries retail sales also continued to fall, with the declines becoming heavier every month. Caterpillar's ( CAT ) revenue been suffering from a decline in its Resource Industries segment due to weak demand for machinery and equipment in the global mining sector since the end of 2012.
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2015-03-02 00:00:00 UTC
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Noteworthy ETF Outflows: MOO, SYT, MON, DE
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https://www.nasdaq.com/articles/noteworthy-etf-outflows-moo-syt-mon-de-2015-03-02
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $22.3 million dollar outflow -- that's a 1.5% decrease week over week (from 26,450,000 to 26,050,000). Among the largest underlying components of MOO, in trading today Syngenta AG (Symbol: SYT) is down about 1.5%, Monsanto Co. (Symbol: MON) is up about 0.1%, and Deere & Co. (Symbol: DE) is up by about 0.4%. For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average:
Looking at the chart above, MOO's low point in its 52 week range is $49.21 per share, with $56.32 as the 52 week high point - that compares with a last trade of $55.63. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $49.21 per share, with $56.32 as the 52 week high point - that compares with a last trade of $55.63. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $49.21 per share, with $56.32 as the 52 week high point - that compares with a last trade of $55.63. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $22.3 million dollar outflow -- that's a 1.5% decrease week over week (from 26,450,000 to 26,050,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $22.3 million dollar outflow -- that's a 1.5% decrease week over week (from 26,450,000 to 26,050,000). For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $49.21 per share, with $56.32 as the 52 week high point - that compares with a last trade of $55.63. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $49.21 per share, with $56.32 as the 52 week high point - that compares with a last trade of $55.63. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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a21f9d1d-7b60-41c9-ae92-8832053c6bb9
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722825.0
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2015-03-02 00:00:00 UTC
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Fortress Investment Beats on Q4 Earnings, AUM Up 9% - Analyst Blog
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https://www.nasdaq.com/articles/fortress-investment-beats-on-q4-earnings-aum-up-9-analyst-blog-2015-03-02
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Higher revenues drove Fortress Investment Group LLCFIG to deliver a positive earnings surprise of 40% in the final quarter of 2014. On Thursday, the New York- based investment manager reported fourth quarter 2014 pre-tax distributable earnings (DE) of 28 cents per share, outpacing the Zacks Consensus Estimate of 20 cents. Also, the reported figure came ahead of the prior-year quarter figure of 24 cents per share.
With this earnings beat, the company delivered positive earning surprises in three of the four quarters of 2014 while it missed in the remaining quarter.
Fortress Investment Group LLC - Earnings Surprise | FindTheCompany
Results were primarily aided by higher revenues, which came on the back of higher management fees and incentive income. Also, the company witnessed enhanced management fee paying assets under management (AUM). However, on the downside, the quarter experience elevated expenses.
Segment wise, compared with the prior-year quarter, Credit business recorded higher pre-tax DE while Private Equity business and Liquid Hedge Funds recorded lower pre-tax DE. Logan circle reported breakeven pre-tax DE, compared with pre-tax DE loss in the prior-year quarter.
Pre-tax distributable earnings of Fortress Investment stood at $123 million, up 2% year over year. On a GAAP basis, net income came in at $148 million, down significantly from the prior-year quarter net income of $318 million.
For 2014, the company reported pre-tax distributable earnings of 99 cents per share, outpacing the Zacks Consensus Estimate of 92 cents. Also, the reported figure increased 13% year over year. Pre-tax distributable earnings for 2014 increased 3% year over year to $446 million. On a GAAP basis, net income came in at $233 million, down 52% year over year.
Business Highlights
For 2014, total segment revenue increased 3% year over year to $1.1 billion. Also, it surpassed the Zacks Consensus Estimate of $918 million.
Total segment revenue surged 23% year over year to $344 million in the fourth quarter. Further, it beat the Zacks Consensus Estimate of $249 million.
Management fees summed $153 million in the quarter, up 7% from the prior-year quarter. The rise was mainly driven by increased management fees from the Credit Hedge Funds, Logan Circle, Liquid Hedge Funds and Permanent Capital Vehicles. However, lower management fees from the Private Equity Funds partially offset the increase.
Incentive income was $191 million, up 40% from the prior-year quarter. The increase was primarily attributable to higher incentive income from the Credit PE Funds and Permanent Capital Vehicles. The increase was partially offset by decline in incentive income from Liquid Hedge Funds, Credit Hedge Funds and Private Equity Funds.
Total segment expenses increased 40% year over year to $222 million. This upswing was primarily driven by higher operating expenses as well as profit sharing compensation expenses.
As of Dec 31, 2014, management fee paying AUM rose 9% year over year to $67.5 billion. Notably, the Logan Circle division witnessed net client inflows of $1.0 billion. Management noted that the quarter marked "an all-time high" AUM.
Balance Sheet
As of Dec 31, 2014, total uncalled capital totaled $7.8 billion out of which approximately $5.5 billion is available for common investment purposes.
As of Dec 31, 2014, cash and cash equivalents were $391.1 million, compared with $364.6 million as of Dec 31, 2013. Debt obligation stood at $75 million in the quarter. Notably, there was no debt obligation outstanding as of Dec 31, 2013.
Special Dividend
Concurrent with the earnings release, management declared fourth quarter cash dividend of 38 cents per share, which consists of a special cash dividend of 30 cents per share and quarterly cash dividend of 8 cents per share. The dividend will be paid on Mar 17, 2015 to Class A shareholders of record as of Mar 12, 2015.
Our Viewpoint
Results reflect a strong quarter for Fortress Investment. The company's steady organic growth keeps us optimistic. However, the company's mounting expenses and the persistent macroeconomic headwinds across the industry keep us apprehensive.
Currently, Fortress Investment carries a Zacks Rank #4 (Sell).
Performance of Other Investment Management Firms
Among other investment management firms, Invesco Ltd. IVZ , Affiliated Managers Group Inc. AMG and Ameriprise Financial Inc. AMP outpaced the Zacks Consensus Estimate in their latest earnings releases. Their results were driven by revenue growth, partially offset by elevated expenses. Further, all three firms have recorded impressive AUM growth.
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AMERIPRISE FINL (AMP): Free Stock Analysis Report
FORTRESS INVEST (FIG): Free Stock Analysis Report
AFFIL MANAGERS (AMG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Higher revenues drove Fortress Investment Group LLCFIG to deliver a positive earnings surprise of 40% in the final quarter of 2014. Segment wise, compared with the prior-year quarter, Credit business recorded higher pre-tax DE while Private Equity business and Liquid Hedge Funds recorded lower pre-tax DE. On Thursday, the New York- based investment manager reported fourth quarter 2014 pre-tax distributable earnings (DE) of 28 cents per share, outpacing the Zacks Consensus Estimate of 20 cents.
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Segment wise, compared with the prior-year quarter, Credit business recorded higher pre-tax DE while Private Equity business and Liquid Hedge Funds recorded lower pre-tax DE. Higher revenues drove Fortress Investment Group LLCFIG to deliver a positive earnings surprise of 40% in the final quarter of 2014. On Thursday, the New York- based investment manager reported fourth quarter 2014 pre-tax distributable earnings (DE) of 28 cents per share, outpacing the Zacks Consensus Estimate of 20 cents.
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On Thursday, the New York- based investment manager reported fourth quarter 2014 pre-tax distributable earnings (DE) of 28 cents per share, outpacing the Zacks Consensus Estimate of 20 cents. Special Dividend Concurrent with the earnings release, management declared fourth quarter cash dividend of 38 cents per share, which consists of a special cash dividend of 30 cents per share and quarterly cash dividend of 8 cents per share. Higher revenues drove Fortress Investment Group LLCFIG to deliver a positive earnings surprise of 40% in the final quarter of 2014.
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As of Dec 31, 2014, management fee paying AUM rose 9% year over year to $67.5 billion. Higher revenues drove Fortress Investment Group LLCFIG to deliver a positive earnings surprise of 40% in the final quarter of 2014. On Thursday, the New York- based investment manager reported fourth quarter 2014 pre-tax distributable earnings (DE) of 28 cents per share, outpacing the Zacks Consensus Estimate of 20 cents.
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83b47d8f-9df6-4c85-82f2-49f3e2c84e7d
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722826.0
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2015-02-27 00:00:00 UTC
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Warren Buffett's Best Dividend Stocks
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https://www.nasdaq.com/articles/warren-buffetts-best-dividend-stocks-2015-02-27
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When it comes to dividends, Warren Buffett is happy to collect them but not to pay them. His holding company, Berkshire Hathaway (symbol BRK-B ), has never paid out any of its profits to shareholders. But when the Oracle of Omaha looks for companies to invest in, he often focuses on businesses that repurchase shares or issue dividends, or both. "Buffett likes companies that return cash to shareholders," says David Kass, a finance professor at the University of Maryland who owns Berkshire shares and follows Buffett's moves closely. Investors could do worse than to follow the master's lead. And if you're looking for current income, you might want to consider some of Buffett's favorite dividend-paying stocks.
Quiz: How Well Do You Really Know Warren Buffett?
In his latest letter to Berkshire shareholders , released February 28, Buffett does hold out hope that Berkshire might pay a dividend someday. He suggests that in 10 to 20 years, the company may have grown so large that it will be hard for it to allocate its capital efficiently. In that case, he says, its leaders will have to choose between paying dividends or, more preferably in Buffett's view, buying back shares if the stock is cheap enough. In either case, given Buffett's age, 84, someone else is likely to be making those decisions.
Regardless of how Buffett feels about paying dividends, you might want to consider some of Buffett's favorite dividend-paying stocks if you're looking for current income. But you have to be judicious. We don't normally second-guess the master, but we have doubts about some of his holdings. Berkshire, for example, has continued to hold shares of Coca-Cola ( KO ), Buffett's largest position, even though U.S. consumers are drinking less soda and analysts have been lowering their 2015 earnings forecasts. Last year, Buffett added to an already sizable position in International Business Machines ( IBM ), a stock that we suggested selling in December because the tech giant had failed to keep up with industry changes . Around the same time, Berkshire increased its stake in Deere & Company ( DE ), even though the maker of farm equipment has warned that sales for the fiscal year that ends in October could fall 17% as the agriculture sector experiences a temporary slowdown.
All three stocks may end up performing brilliantly in the months and years ahead. But Buffett holds plenty of other dividend payers that we think are more attractive. The following four companies have solid earnings and sales outlooks for 2015. The stocks yield nearly 3% or more, well above the 2% yield of Standard & Poor's 500-stock index. And all but one of the firms recently announced a dividend hike. (The stocks are listed in alphabetical order. Prices and related figures are as of February 26.)
Start with General Electric ( GE , $25.89, yield 3.6%). During the 2008 financial crisis, Buffett pumped $3 billion into GE in the form of preferred stock with a 10% annual dividend to keep the company afloat. The industrial conglomerate has since recovered, and Buffett walked away with a sizable profit, plus about $260 million worth of GE common stock. Today, CEO Jeffrey Immelt is shrinking GE's financial-services business, which tripped up the company in 2008, and focusing instead on GE's core industrial segments, which produce everything from jet engines to gas turbines. Because of plummeting oil prices , sales to energy firms are dragging down results; they fell 6% in the fourth quarter compared with the same period in 2013. But industrial revenues jumped 9% for the same period. GE announced a 5% dividend hike in December. Analysts expect earnings to increase by an equal amount, to $1.73 per share, in 2015. The stock trades at 15 times that figure, compared with 17 for the S&P 500.
From bankruptcy to a recall crisis, General Motors ( GM , $37.56, 3.2%) has also faced its share of troubles. But the automaker is on the road to recovery. Buffett must certainly think so. In the fourth quarter, he upped his stake in GM by 3%, to 41 million shares, which are now worth $1.4 billion. S&P Capital IQ analyst Efraim Levy says U.S. auto sales should rise 2.7% in 2015. That, plus fewer recall expenses and a growing perception that GM cars are getting better and can hold their own against those from foreign manufacturers, will boost GM's results. Consumer Reports on February 24 named the Chevrolet Impala and Buick Regal among the magazine's top 10 picks for 2015. Analysts see the automaker's earnings surging 49% in 2015. With things looking up, GM execs have announced plans to increase the dividend 20% in coming months. And the stock is cheap, trading at just 8 times estimated 2015 profits.
This past holiday shopping season wasn't a windfall for United Parcel Service ( UPS , $101.86, 2.9%). Fourth-quarter profits came in at $1.25 per share, well below analyst expectations of $1.42. Higher costs were largely to blame as Big Brown boosted staff and invested in technology to make sure packages were delivered on time. The stock, meanwhile, has slumped 11% since reaching a record closing high on January 22, the day before fourth-quarter results were released. But Nate Brochmann, an analyst at investment bank William Blair & Company, says he doesn't think the selloff will last long. He says UPS will learn from the experience and become more efficient. Moreover, growth of e-commerce in the U.S. and Europe should help drive profits. Analysts think earnings will increase 9% this year, to $5.17 per share, giving the stock a price-earnings ratio of 20. As if to show they're not fazed about the recent earnings disappointment, UPS directors raised the payout by 9% in February.
The biggest yielder in Berkshire's portfolio is Verizon Communications ( VZ , $49.37, 4.5%). The wireless giant's payout is more than twice that of the S&P 500. Verizon is something of a contrarian play. It is being hurt as more consumers sign up for wireless-service plans with lower monthly fees and, in some cases, no contracts (at the cost of forgoing a subsidized phone). That in turn has made it tougher for wireless companies to hang onto customers. But Verizon maintains one of the leading networks, and although the number of subscribers cutting ties has increased, Verizon's churn rate--the percentage of subscribers ditching their wireless plans--is comparatively good: 1.14% in the fourth quarter of 2014, compared with 1.22% at AT&T and 1.7% at T- Mobile. Although Verizon is contending with more price-conscious customers, analysts estimate that its earnings will increase by a robust 9% this year, to $3.66 per share. The stock trades at a modest 13 times earnings.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last year, Buffett added to an already sizable position in International Business Machines ( IBM ), a stock that we suggested selling in December because the tech giant had failed to keep up with industry changes . Around the same time, Berkshire increased its stake in Deere & Company ( DE ), even though the maker of farm equipment has warned that sales for the fiscal year that ends in October could fall 17% as the agriculture sector experiences a temporary slowdown. When it comes to dividends, Warren Buffett is happy to collect them but not to pay them.
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In his latest letter to Berkshire shareholders , released February 28, Buffett does hold out hope that Berkshire might pay a dividend someday. And all but one of the firms recently announced a dividend hike. When it comes to dividends, Warren Buffett is happy to collect them but not to pay them.
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In that case, he says, its leaders will have to choose between paying dividends or, more preferably in Buffett's view, buying back shares if the stock is cheap enough. Regardless of how Buffett feels about paying dividends, you might want to consider some of Buffett's favorite dividend-paying stocks if you're looking for current income. When it comes to dividends, Warren Buffett is happy to collect them but not to pay them.
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In his latest letter to Berkshire shareholders , released February 28, Buffett does hold out hope that Berkshire might pay a dividend someday. When it comes to dividends, Warren Buffett is happy to collect them but not to pay them. His holding company, Berkshire Hathaway (symbol BRK-B ), has never paid out any of its profits to shareholders.
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5b62a8b1-c342-49bc-855b-1d6283e573a3
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722827.0
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2015-02-23 00:00:00 UTC
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Deere (DE) Earnings: Better Than You Might Think
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https://www.nasdaq.com/articles/deere-de-earnings-better-you-might-think-2015-02-23
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nan
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Following the news that Warren Buffett has added to his stake in Deere & Company , it's highly likely that large numbers of Buffett followers will be excited to look at the company's first-quarter earnings. In short, there were more negatives than pluses, particularly on the headline numbers.
Let's take a closer look at the numbers and underlying trends from the first quarter.
Deere & Company reports first-quarter results
In a nutshell, Deere reported a whopping 19% decrease in net sales in the first quarter and lowered full-year estimates for net income and equipment sales.
At the time of its fourth-quarter results in November, management outlined full-year 2015 guidance for net income of $1.9 billion and predicted net sales would decrease 15% from 2014. Fast forward to the first quarter, and these estimates were reduced to $1.8 billion and 17%, respectively.
Fortunately, you don't have to invest using nutshells, and the underlying trends are somewhat more positive than the headline data suggest.
First, Deere's net sales decrease of 19% was better than the 21% decline management had previously forecast. In addition, recall that the U.S. dollar has strengthened significantly since the end of November. Indeed, currency translation took 2 percentage points of equipment operations' net sales in the first quarter. Ultimately, Deere's first-quarter net sales of $5.6 billion were ahead of analysts' estimate of $5.53 billion.
U.S. Dollar to Euro Exchange Rate data by YCharts .
Currency effects and crop prices
Second, much of the downgrade to full-year estimates is due to the stronger dollar. For example, the previous full-year net sales forecast of a 15% decline included 2 percentage points of loss due to currency, therefore the ex-currency decline forecast was 13%. The current forecast of a 17% decline includes 3 percentage points of currency loss, indicating a decline of 14%.
Moreover, breaking out the data by operations indicates an underlying improvement in its construction and forestry and financial services operations. However, let's recall that agriculture and turf operations typically contribute more than 80% of net income.
Source: Deere conference call presentations. Net income data is in millions of U.S. dollars.
Third, Deere's guidance for crop prices remains largely unchanged, despite a recent uptick in prices for key crops such as corn, wheat, and soybeans.
U.S. Corn Farm Price Received data by YCharts .
If crop prices turn out to be better than Deere forecasts, then farmers' income is likely to be higher than expected, and its equipment sales could be better than forecast, too.
Two things to look out for
On a more negative note, there are a couple of things to look out for in the results.
First, worldwide financial services saw a provision for credit losses of just 0.02% -- a figure significantly lower than its 15-year average of closer to 0.5%. While this is good news -- it indicates that credit quality is good in the farming industry -- it's also a concern because this kind of level doesn't look sustainable on a historical basis. In other words, the financial services division might not see the benefit of such low credit loss provisions in future.
Second, this is the second quarter in a row that Deere has reported price realization of 1%. However, its full-year forecast is for 2% price realization. In other words, it might not be able to increase prices in the manner management thinks.
A decent quarter
All told, the earnings report is better than the headline numbers suggest, but it's still a net negative. The slight reduction in the ex-currency forecast for full-year agriculture and turf net sales is not a major issue. In addition, if the crop price outlook improves and the dollar weakens, then Deere could yet surprise on the upside in 2015.
1 great stock to buy for 2015 and beyond
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The article Deere ( DE ) Earnings: Better Than You Might Think originally appeared on Fool.com.
Lee Samaha has no position in any stocks mentioned. (It would be great to hear what farmers/readers think about where crop prices will go this year. Also, are you guys cutting back on acreage planted in response to lower prices?)
The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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First, worldwide financial services saw a provision for credit losses of just 0.02% -- a figure significantly lower than its 15-year average of closer to 0.5%. Following the news that Warren Buffett has added to his stake in Deere & Company , it's highly likely that large numbers of Buffett followers will be excited to look at the company's first-quarter earnings. Let's take a closer look at the numbers and underlying trends from the first quarter.
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Deere & Company reports first-quarter results In a nutshell, Deere reported a whopping 19% decrease in net sales in the first quarter and lowered full-year estimates for net income and equipment sales. At the time of its fourth-quarter results in November, management outlined full-year 2015 guidance for net income of $1.9 billion and predicted net sales would decrease 15% from 2014. For example, the previous full-year net sales forecast of a 15% decline included 2 percentage points of loss due to currency, therefore the ex-currency decline forecast was 13%.
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Deere & Company reports first-quarter results In a nutshell, Deere reported a whopping 19% decrease in net sales in the first quarter and lowered full-year estimates for net income and equipment sales. For example, the previous full-year net sales forecast of a 15% decline included 2 percentage points of loss due to currency, therefore the ex-currency decline forecast was 13%. If crop prices turn out to be better than Deere forecasts, then farmers' income is likely to be higher than expected, and its equipment sales could be better than forecast, too.
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Deere & Company reports first-quarter results In a nutshell, Deere reported a whopping 19% decrease in net sales in the first quarter and lowered full-year estimates for net income and equipment sales. A decent quarter All told, the earnings report is better than the headline numbers suggest, but it's still a net negative. Following the news that Warren Buffett has added to his stake in Deere & Company , it's highly likely that large numbers of Buffett followers will be excited to look at the company's first-quarter earnings.
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2015-02-23 00:00:00 UTC
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Did Warren Buffett Really Eject ExxonMobil From His Portfolio?
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https://www.nasdaq.com/articles/did-warren-buffett-really-eject-exxonmobil-his-portfolio-2015-02-23
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The latest numbers are in for Berkshire Hathaway , revealing what stocks Warren Buffett bought and sold during the last few months of 2014. But the biggest news and move may not be news or a move at all.
The unknown unload
Last Tuesday, Buffett's company filed its 13-F form, which shows what stocks it held as of Dec. 31. As previously discussed , the biggest news on the buying front was the additional purchase of roughly $1 billion more of both IBM and Deere & Company .
Source: Flickr / Minale Tattersfield Roadside Retail.
Yet the most noteworthy news was the nonexistence of ExxonMobil from the Berkshire filing. A cursory glance reveals that it went from being the seventh largest position in the $110 billion stock portfolio, with a market value of nearly $4 billion at the end of September, to entirely absent in just three months' time.
As a result, we were met with headlines such as " Warren Buffett Sells Entire Exxon Stake " from Bloomberg, and " With Oil Prices Plunging, Warren Buffett's Berkshire Dumped Exxon Stake " from Forbes .
But what if I told you none of that may be true?
The key distinction
You see, all we truly know is that a position in Exxon wasn't disclosed in the 13F filing. But that doesn't mean Berkshire didn't have a position in it.
As wonderfully discussed in the paper Do Institutional Investors Have an Ace up Their Sleeves? by Dr. Wei Jiang of the Columbia Business School and others, just because a position is absent from a 13F filing doesn't mean it's actually absent from a company's portfolio. The authors note (emphasis added):
In other words, so long as Buffett, Charlie Munger, CFO Marc Hamburg, investment lieutenants Todd Combs and Ted Weschler, or anyone else at Berkshire notify the SEC that Berkshire didn't feel comfortable disclosing where its Exxon position stood because of how the market might react, then there is freedom to wait up to a year to say exactly what that position was.
This is critical, because Berkshire did this very thing with Deere & Company in the third quarter. In the 13F filing from Nov. 11, for the period ending Sept. 30, no position in Deere was disclosed. As a result, many -- myself included -- said the $360 million Berkshire Hathaway position in Deere had been sold off in its entirety.
But because of an amended third-quarter 13F filing released last week, we now know that Berkshire didn't decrease its stake in Deere by 100%, but it actually grew its stake by 90% -- a complete reversal from what was first reported:
Buffett and his fellow managers know how closely Berkshire's stock moves are monitored, so it's entirely sensible that if they wanted to grow their stake in Deere, they wouldn't want anyone to know about it because others may follow suit and inflate the price of the stock.
The Exxon exception
To bring it full circle, investors also must know that when Buffett first began buying Exxon in the second quarter of 2013, it wasn't disclosed until November 2013, through -- you guessed it -- an amended 13F filing .
Two of Buffett's best-known quotes are "Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years," and "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
With those in mind, knowing Buffett owned Exxon for all of 15 months and energy stocks are taking a beating because of falling oil prices -- Exxon is down 10% over the past six months -- is it more likely he sold his stake entirely, or is it actually more likely he's just buying more and just doesn't want you to know?
That's up for you to decide, because ultimately, we shouldn't make our investment decisions by blindly following one example, even if that example is Warren Buffett.
Personally, I'd go with the later, and in three months' time, we'll probably know for sure.
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As the price of oil plummets, savvy investors -- like Warren Buffett -- are looking for a way to invest in this new energy dynamic. And there's one high-caliber company in the oil-services sector using advanced technology to profit from the U.S. oil boom. Given the country's ongoing quest to extract more and more oil, I strongly urge you to claim your copy of our brand-new investigative report on this company helping fuel its boom. Simply click here for access .
The article Did Warren Buffett Really Eject ExxonMobil From His Portfolio? originally appeared on Fool.com.
Patrick Morris owns shares of Berkshire Hathaway and ExxonMobil. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway and International Business Machines. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As previously discussed , the biggest news on the buying front was the additional purchase of roughly $1 billion more of both IBM and Deere & Company . The authors note (emphasis added): In other words, so long as Buffett, Charlie Munger, CFO Marc Hamburg, investment lieutenants Todd Combs and Ted Weschler, or anyone else at Berkshire notify the SEC that Berkshire didn't feel comfortable disclosing where its Exxon position stood because of how the market might react, then there is freedom to wait up to a year to say exactly what that position was. The unknown unload Last Tuesday, Buffett's company filed its 13-F form, which shows what stocks it held as of Dec. 31.
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The unknown unload Last Tuesday, Buffett's company filed its 13-F form, which shows what stocks it held as of Dec. 31. As previously discussed , the biggest news on the buying front was the additional purchase of roughly $1 billion more of both IBM and Deere & Company . Source: Flickr / Minale Tattersfield Roadside Retail.
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The authors note (emphasis added): In other words, so long as Buffett, Charlie Munger, CFO Marc Hamburg, investment lieutenants Todd Combs and Ted Weschler, or anyone else at Berkshire notify the SEC that Berkshire didn't feel comfortable disclosing where its Exxon position stood because of how the market might react, then there is freedom to wait up to a year to say exactly what that position was. But because of an amended third-quarter 13F filing released last week, we now know that Berkshire didn't decrease its stake in Deere by 100%, but it actually grew its stake by 90% -- a complete reversal from what was first reported: Buffett and his fellow managers know how closely Berkshire's stock moves are monitored, so it's entirely sensible that if they wanted to grow their stake in Deere, they wouldn't want anyone to know about it because others may follow suit and inflate the price of the stock. The unknown unload Last Tuesday, Buffett's company filed its 13-F form, which shows what stocks it held as of Dec. 31.
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In the 13F filing from Nov. 11, for the period ending Sept. 30, no position in Deere was disclosed. The unknown unload Last Tuesday, Buffett's company filed its 13-F form, which shows what stocks it held as of Dec. 31. As previously discussed , the biggest news on the buying front was the additional purchase of roughly $1 billion more of both IBM and Deere & Company .
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d659403c-1026-42aa-a1fc-487532f3c18d
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722829.0
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2015-02-23 00:00:00 UTC
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Company News for February 23, 2015 - Corporate Summary
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DE
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https://www.nasdaq.com/articles/company-news-for-february-23-2015-corporate-summary-2015-02-23
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• Cabot Oil & Gas Corporation's ( COG ) shares gained 1.3% after announcing fourth quarter revenues of $618 million, beating the Zacks Consensus Estimate of $558 million
• Shares of Deere & Company ( DE ) rose 0.8% after declaring first quarter fiscal 2015 earnings per share to $1.12, outpacing the Zacks Consensus Estimate of $0.83
• Public Service Enterprise Group Inc.'s ( PEG ) shares climbed 3.4% after reporting fourth quarter earnings per share of $0.49, a cent higher than the Zacks Consensus Estimate
• Shares of Cheniere Energy, Inc. ( LNG ) declined 1.3% after posting fourth quarter loss per share of $0.50, wider than the Zacks Consensus Estimate of a loss per share of $0.29
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CABOT OIL & GAS (COG): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
PUBLIC SV ENTRP (PEG): Free Stock Analysis Report
CHENIERE ENERGY (LNG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• Cabot Oil & Gas Corporation's ( COG ) shares gained 1.3% after announcing fourth quarter revenues of $618 million, beating the Zacks Consensus Estimate of $558 million • Shares of Deere & Company ( DE ) rose 0.8% after declaring first quarter fiscal 2015 earnings per share to $1.12, outpacing the Zacks Consensus Estimate of $0.83 • Public Service Enterprise Group Inc.'s ( PEG ) shares climbed 3.4% after reporting fourth quarter earnings per share of $0.49, a cent higher than the Zacks Consensus Estimate • Shares of Cheniere Energy, Inc. ( LNG ) declined 1.3% after posting fourth quarter loss per share of $0.50, wider than the Zacks Consensus Estimate of a loss per share of $0.29 Want the latest recommendations from Zacks Investment Research? Click to get this free report CABOT OIL & GAS (COG): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report PUBLIC SV ENTRP (PEG): Free Stock Analysis Report CHENIERE ENERGY (LNG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• Cabot Oil & Gas Corporation's ( COG ) shares gained 1.3% after announcing fourth quarter revenues of $618 million, beating the Zacks Consensus Estimate of $558 million • Shares of Deere & Company ( DE ) rose 0.8% after declaring first quarter fiscal 2015 earnings per share to $1.12, outpacing the Zacks Consensus Estimate of $0.83 • Public Service Enterprise Group Inc.'s ( PEG ) shares climbed 3.4% after reporting fourth quarter earnings per share of $0.49, a cent higher than the Zacks Consensus Estimate • Shares of Cheniere Energy, Inc. ( LNG ) declined 1.3% after posting fourth quarter loss per share of $0.50, wider than the Zacks Consensus Estimate of a loss per share of $0.29 Want the latest recommendations from Zacks Investment Research? Click to get this free report CABOT OIL & GAS (COG): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report PUBLIC SV ENTRP (PEG): Free Stock Analysis Report CHENIERE ENERGY (LNG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• Cabot Oil & Gas Corporation's ( COG ) shares gained 1.3% after announcing fourth quarter revenues of $618 million, beating the Zacks Consensus Estimate of $558 million • Shares of Deere & Company ( DE ) rose 0.8% after declaring first quarter fiscal 2015 earnings per share to $1.12, outpacing the Zacks Consensus Estimate of $0.83 • Public Service Enterprise Group Inc.'s ( PEG ) shares climbed 3.4% after reporting fourth quarter earnings per share of $0.49, a cent higher than the Zacks Consensus Estimate • Shares of Cheniere Energy, Inc. ( LNG ) declined 1.3% after posting fourth quarter loss per share of $0.50, wider than the Zacks Consensus Estimate of a loss per share of $0.29 Want the latest recommendations from Zacks Investment Research? Click to get this free report CABOT OIL & GAS (COG): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report PUBLIC SV ENTRP (PEG): Free Stock Analysis Report CHENIERE ENERGY (LNG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• Cabot Oil & Gas Corporation's ( COG ) shares gained 1.3% after announcing fourth quarter revenues of $618 million, beating the Zacks Consensus Estimate of $558 million • Shares of Deere & Company ( DE ) rose 0.8% after declaring first quarter fiscal 2015 earnings per share to $1.12, outpacing the Zacks Consensus Estimate of $0.83 • Public Service Enterprise Group Inc.'s ( PEG ) shares climbed 3.4% after reporting fourth quarter earnings per share of $0.49, a cent higher than the Zacks Consensus Estimate • Shares of Cheniere Energy, Inc. ( LNG ) declined 1.3% after posting fourth quarter loss per share of $0.50, wider than the Zacks Consensus Estimate of a loss per share of $0.29 Want the latest recommendations from Zacks Investment Research? Click to get this free report CABOT OIL & GAS (COG): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report PUBLIC SV ENTRP (PEG): Free Stock Analysis Report CHENIERE ENERGY (LNG): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
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ea4154b9-9634-40b4-bae4-1132e3a78f3b
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722830.0
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2015-02-21 00:00:00 UTC
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Warren Buffett Makes 2 Major Stock Buys
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DE
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https://www.nasdaq.com/articles/warren-buffett-makes-2-major-stock-buys-2015-02-21
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The latest stock holdings from Warren Buffett and Berkshire Hathaway are in for the fourth quarter, and there were two giant moves that should grab the attention of investors everywhere.
The new position?
Companies are required to file a 13F filing with the SEC, which reveals what stocks they held at the end of the quarter. This week, Berkshire had to file two: one for the fourth quarter, as well as an amended version of its third-quarter report.
Curiously, in the third quarter it was widely reported ( here at The Motley Fool and elsewhere ) that Berkshire sold its entire stake in in Deere & Company , parent company of John Deere.
But in an interesting twist, it turns out the amended third-quarter filing reveals that the stake was there all along, and in the third and fourth quarters Buffett and company weren't selling it, but instead buying it. At the end of the third quarter, Berkshire held nearly $600 million of the company's stock, and it more than doubled its stake in the fourth quarter, bringing its total position to more than $1.5 billion.
This serves a valuable lesson to investors. As previously noted , 13F filings may or may not present the entire picture of what a company owns, as a result of the various nuances and eccentricities that accompany SEC filings. So it's always best to make your own investment decisions based on the investment prospects of the companies themselves, not just what others may -- or in this instance, may not -- be doing.
But having said that, it's important to see that Deere presents a number of reasons Buffett -- and either Todd Combs or Ted Weschler, who also manage a sizable portion of the Berkshire portfolio (nearly $9 billion each, according to TheWall Street Journal ) -- would want to buy it.
First, it operates in a stable agricultural business that isn't going anywhere, anytime soon. Next, as fellow Fool Lee Samaha suggests in his article outlining three reasons the stock could rise , since crop prices will probably be falling in the U.S., demand for Deere's machinery will grow.
Throw in the fact that it trades at an incredibly reasonable trailing-12-month P/E ratio of 10.7 and offers a 2.7% dividend yield -- two things Buffett also loves -- and it makes much more sense that Deere is on pace to become a staple position in the Berkshire Hathaway stock portfolio.
Buying more and more
In addition to purchasing more Deere & Company, Buffett has once again added to his stake in IBM , buying an additional 6.5 million shares (roughly 10% more) at a cost of a little over $1 billion.
As I discussed last quarter, from the market's perspective, the performance of IBM has been abysmal since Buffett first bought into the technology giant in 2011.
But that's true only when you gauge it only based on the performance of its stock, not the actual performance of its earnings attributable to Berkshire. And a little back-of-the-envelope math reveals that -- based on Buffett's continued commitment to buy IBM stock, while the company itself has been repurchasing its own shares -- his ownership of the company has grown substantially through the years:
This, too, reminds us of the reality that Buffett always considers his stock positions in companies not as numbers that move up and down on a screen, but instead tangible interests in operating businesses. So while the performance of IBM as a stock has left something to be desired, since Berkshire's stake in IBM has been rising more quickly than its earnings have been falling, Buffett probably couldn't be more pleased with the outcome.
The Foolish bottom line
Should we blindly follow Buffett and go out to buy stakes in IBM and John Deere based on the latest moves of Berkshire Hathaway? Of course not.
But in each case, we can learn a valuable lesson on how we should view investments and also get two more stocks to put on our radars.
The $60K Social Security bonus most retirees completely overlook
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The article Warren Buffett Makes 2 Major Stock Buys originally appeared on Fool.com.
Patrick Morris owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway and International Business Machines. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But having said that, it's important to see that Deere presents a number of reasons Buffett -- and either Todd Combs or Ted Weschler, who also manage a sizable portion of the Berkshire portfolio (nearly $9 billion each, according to TheWall Street Journal ) -- would want to buy it. Next, as fellow Fool Lee Samaha suggests in his article outlining three reasons the stock could rise , since crop prices will probably be falling in the U.S., demand for Deere's machinery will grow. Throw in the fact that it trades at an incredibly reasonable trailing-12-month P/E ratio of 10.7 and offers a 2.7% dividend yield -- two things Buffett also loves -- and it makes much more sense that Deere is on pace to become a staple position in the Berkshire Hathaway stock portfolio.
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Curiously, in the third quarter it was widely reported ( here at The Motley Fool and elsewhere ) that Berkshire sold its entire stake in in Deere & Company , parent company of John Deere. The Foolish bottom line Should we blindly follow Buffett and go out to buy stakes in IBM and John Deere based on the latest moves of Berkshire Hathaway? This week, Berkshire had to file two: one for the fourth quarter, as well as an amended version of its third-quarter report.
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Curiously, in the third quarter it was widely reported ( here at The Motley Fool and elsewhere ) that Berkshire sold its entire stake in in Deere & Company , parent company of John Deere. And a little back-of-the-envelope math reveals that -- based on Buffett's continued commitment to buy IBM stock, while the company itself has been repurchasing its own shares -- his ownership of the company has grown substantially through the years: This, too, reminds us of the reality that Buffett always considers his stock positions in companies not as numbers that move up and down on a screen, but instead tangible interests in operating businesses. This week, Berkshire had to file two: one for the fourth quarter, as well as an amended version of its third-quarter report.
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Curiously, in the third quarter it was widely reported ( here at The Motley Fool and elsewhere ) that Berkshire sold its entire stake in in Deere & Company , parent company of John Deere. This week, Berkshire had to file two: one for the fourth quarter, as well as an amended version of its third-quarter report. But in an interesting twist, it turns out the amended third-quarter filing reveals that the stake was there all along, and in the third and fourth quarters Buffett and company weren't selling it, but instead buying it.
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4b291492-a530-4ed5-925b-5e30365df945
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722831.0
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2015-02-20 00:00:00 UTC
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Pre-Market Most Active for Feb 20, 2015 : STO, CRC, TVIX, FUEL, TOT, VOD, AAPL, NDLS, PBR, XIV, DE, ALU
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https://www.nasdaq.com/articles/pre-market-most-active-feb-20-2015-sto-crc-tvix-fuel-tot-vod-aapl-ndls-pbr-xiv-de-alu-2015
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The NASDAQ 100 Pre-Market Indicator is down -.08 to 4,411.78. The total Pre-Market volume is currently 2,317,943 shares traded.
The following are the most active stocks for the pre-market session :
Statoil ASA ( STO ) is +0.17 at $18.86, with 453,999 shares traded. STO's current last sale is 92% of the target price of $20.5.
California Resources Corporation ( CRC ) is +0.5 at $7.20, with 352,503 shares traded. CRC's current last sale is 96% of the target price of $7.5.
VelocityShares Daily 2x VIX Short Term ETN ( TVIX ) is +0.06 at $2.48, with 333,948 shares traded. This represents a 23.38% increase from its 52 Week Low.
Rocket Fuel Inc. ( FUEL ) is -3.92 at $10.85, with 304,993 shares traded. As reported in the last short interest update the days to cover for FUEL is 10.18925; this calculation is based on the average trading volume of the stock.
TotalFinaElf, S.A. ( TOT ) is -0.25 at $51.91, with 219,238 shares traded. As reported by Zacks, the current mean recommendation for TOT is in the "buy range".
Vodafone Group Plc ( VOD ) is +0.18 at $35.40, with 208,810 shares traded. VOD's current last sale is 95.16% of the target price of $37.2.
Apple Inc. ( AAPL ) is +0.22 at $128.67, with 203,829 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2015. The consensus EPS forecast is $2.1. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Noodles & Company ( NDLS ) is -6.98 at $20.76, with 197,731 shares traded. As reported in the last short interest update the days to cover for NDLS is 14.982029; this calculation is based on the average trading volume of the stock.
Petroleo Brasileiro S.A.- Petrobras ( PBR ) is -0.04 at $6.60, with 180,395 shares traded.PBR is scheduled to provide an earnings report on 2/24/2015, for the fiscal quarter ending Dec2014. The consensus earnings per share forecast is 0.28 per share, which represents a 42 percent increase over the EPS one Year Ago
VelocityShares Daily Inverse VIX Short Term ETN ( XIV ) is -0.365 at $29.83, with 166,034 shares traded. This represents a 20.92% increase from its 52 Week Low.
Deere & Company ( DE ) is -0.84 at $90.87, with 164,640 shares traded. RTT News Reports: Deere Q1 Profit Down 43%, But Results Beat View; Lowers 2015 Outlook
Alcatel Lucent ( ALU ) is -0.05 at $3.84, with 150,671 shares traded. ALU's current last sale is 96% of the target price of $4.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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RTT News Reports: Deere Q1 Profit Down 43%, But Results Beat View; Lowers 2015 Outlook Alcatel Lucent ( ALU ) is -0.05 at $3.84, with 150,671 shares traded. The total Pre-Market volume is currently 2,317,943 shares traded. The following are the most active stocks for the pre-market session : Statoil ASA ( STO ) is +0.17 at $18.86, with 453,999 shares traded.
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The consensus earnings per share forecast is 0.28 per share, which represents a 42 percent increase over the EPS one Year Ago VelocityShares Daily Inverse VIX Short Term ETN ( XIV ) is -0.365 at $29.83, with 166,034 shares traded. The total Pre-Market volume is currently 2,317,943 shares traded. The following are the most active stocks for the pre-market session : Statoil ASA ( STO ) is +0.17 at $18.86, with 453,999 shares traded.
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The total Pre-Market volume is currently 2,317,943 shares traded. The consensus earnings per share forecast is 0.28 per share, which represents a 42 percent increase over the EPS one Year Ago VelocityShares Daily Inverse VIX Short Term ETN ( XIV ) is -0.365 at $29.83, with 166,034 shares traded. RTT News Reports: Deere Q1 Profit Down 43%, But Results Beat View; Lowers 2015 Outlook Alcatel Lucent ( ALU ) is -0.05 at $3.84, with 150,671 shares traded.
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The consensus earnings per share forecast is 0.28 per share, which represents a 42 percent increase over the EPS one Year Ago VelocityShares Daily Inverse VIX Short Term ETN ( XIV ) is -0.365 at $29.83, with 166,034 shares traded. The total Pre-Market volume is currently 2,317,943 shares traded. The following are the most active stocks for the pre-market session : Statoil ASA ( STO ) is +0.17 at $18.86, with 453,999 shares traded.
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e0dcff68-ba50-41ea-84ea-da3a91a5d0b3
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722832.0
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2015-02-20 00:00:00 UTC
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Deere & Company (DE) Beats Q1 Earnings, Lowers 2015 Outlook - Tale of the Tape
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DE
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https://www.nasdaq.com/articles/deere-company-de-beats-q1-earnings-lowers-2015-outlook-tale-of-the-tape-2015-02-20
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nan
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Deere & Company ( DE ) is the world's leading manufacturer of agricultural machinery with a market capitalization of $31.6 billion. It also produces a variety of commercial and consumer equipment; and a broad range of construction and forestry equipment. Deere's financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations.
The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices take their toll on the U.S farm income. Deere has thus resorted to production cutbacks, lay-offs, along with seasonal plant shutdowns to remain profitable in the wake of lower sales. On the contrary, Construction & Forestry equipment sales are expected to grow as the leading indicators for construction activity continue to trend up, boding well for Deere. However, considering that the segment contributed 18% to Deere's revenues in fiscal 2014, pitted against the 73% contribution from Agriculture and Turf segment, the improvement will not be adequate to offset the latter's weakness.
Investors have thus been eagerly awaiting the company's latest earnings report. Let's have a quick look at the Illinois-based company's first quarter fiscal 2015 earnings release.
Upward Estimate Trend & Surprise History
Investors should note that the earnings estimate for Deere for the fiscal 2015 first quarter has been stationary over the past week and month. The Zacks Consensus Estimate has remained static at 83 cents over these periods.
Deere has outpaced the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of around 13.13%. Investors have been eagerly awaiting Deere's latest earnings report to see whether it maintains its momentum, starting fiscal 2015 with another positive earnings beat..
Earnings Ahead of Estimates
Deere raked in earnings of $1.12 per share, outpacing the Zacks Consensus Estimate of 83 cents by a wide margin of 35%. Strength in the construction and forestry business helped offset weakness in its agricultural business.
Revenues Came Ahead
Deere also beat on revenues. It reported first quarter revenues of $6.383 billion, surpassing the Zacks Consensus Estimate of $5.432 million.
Key Stats/Developments to Note
Deere projects total equipment sales to decline 17% year over year in fiscal 2015, down from the previous projection of a 15% dip. The company expects a 19% decline in equipment sales in the second quarter of 2015. Despite the effect of the continued weakness in the agricultural sector on its sales, Deere expects to remain solidly profitable in 2015 and projects net income of around $1.8 billion, lower than its previous guidance of $1.9 billion.
Zacks Rank
Currently, Deere has a Zacks Rank #3 (Hold) depicting the weak demand for agricultural equipment. However, this could change following Deere's earnings report which was just released.
Market Reaction
Deere shares were down almost 0.71% in pre-market trading.
Check back later for our full write up on this Deere earnings report later!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company ( DE ) is the world's leading manufacturer of agricultural machinery with a market capitalization of $31.6 billion. The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices take their toll on the U.S farm income. Deere has thus resorted to production cutbacks, lay-offs, along with seasonal plant shutdowns to remain profitable in the wake of lower sales.
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Investors have been eagerly awaiting Deere's latest earnings report to see whether it maintains its momentum, starting fiscal 2015 with another positive earnings beat.. Earnings Ahead of Estimates Deere raked in earnings of $1.12 per share, outpacing the Zacks Consensus Estimate of 83 cents by a wide margin of 35%. Key Stats/Developments to Note Deere projects total equipment sales to decline 17% year over year in fiscal 2015, down from the previous projection of a 15% dip. Despite the effect of the continued weakness in the agricultural sector on its sales, Deere expects to remain solidly profitable in 2015 and projects net income of around $1.8 billion, lower than its previous guidance of $1.9 billion.
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Deere's financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations. Investors have been eagerly awaiting Deere's latest earnings report to see whether it maintains its momentum, starting fiscal 2015 with another positive earnings beat.. Earnings Ahead of Estimates Deere raked in earnings of $1.12 per share, outpacing the Zacks Consensus Estimate of 83 cents by a wide margin of 35%. Zacks Rank Currently, Deere has a Zacks Rank #3 (Hold) depicting the weak demand for agricultural equipment.
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Investors have been eagerly awaiting Deere's latest earnings report to see whether it maintains its momentum, starting fiscal 2015 with another positive earnings beat.. Earnings Ahead of Estimates Deere raked in earnings of $1.12 per share, outpacing the Zacks Consensus Estimate of 83 cents by a wide margin of 35%. The company expects a 19% decline in equipment sales in the second quarter of 2015. Despite the effect of the continued weakness in the agricultural sector on its sales, Deere expects to remain solidly profitable in 2015 and projects net income of around $1.8 billion, lower than its previous guidance of $1.9 billion.
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8483ad91-6d7a-4b48-9b98-04819ae13aa2
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722833.0
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2015-02-20 00:00:00 UTC
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Eurozone Holding Up Despite Greece - Ahead of Wall Street
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https://www.nasdaq.com/articles/eurozone-holding-despite-greece-ahead-wall-street-2015-02-20
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Friday, February 20, 2015
Lingering Greece-related questions appear to be weighing on market sentiment, offsetting favorable economic data from the region and expectations of a constructive resolution to that country's monetary issues. Stocks were modestly in the red on Thursday and will start today's session no better.
European data has held up reasonably well lately despite the Greek situation. Today's better-than-expected composite PMI data from Markit reconfirms what we saw in the Q4 GDP report a few days back. Most of the gains are concentrated in Germany, with German composite PMI reaching a 7-month high of 54.3 in February from the prior month's final 53.5 reading. But Germany isn't alone - even France is starting to show signs of life.
All of this is before the ECB's confidence-boosting QE program gets going next month, which will flush the region with fresh liquidity and help prop growth as it did this side of the pond. The ECB move is a key driver of what's happening to the exchange value of the common currency as well, which itself is a boon for the export-centric German economy. Given this, it is all the more puzzling for the German government to be taking a tough stand against Greece's 6-month extension request. Everyone expects a deal to come through before the existing credit facility runs out by the end of next week, but German behavior is causing the negotiations to linger longer than they need to be.
On the earnings front, the reporting cycle has effectively ended for most sectors in the S&P 500, with Retail as the only one at this stage with a plurality of reports still to come (18 of the 42 retailers in the index have yet to report results). Including this morning's reports from Deere & Company ( DE ), Laboratory Corp. ( LH ) and others, we now have Q4 results from 440 S&P 500 members. Total earnings for these companies are up +6.3% on +1.5% higher revenues, with 68.6% beating EPS estimates and 55.9% coming ahead of revenue estimates.
Adjusting for a few unusual factors like the extremely weak Energy sector results and the very strong report from Apple ( AAPL ), Q4 results are broadly comparable to what we have been seeing in other recent periods. But the pace and magnitude of negative revisions for the current and following quarters is unlike anything we have seen in the recent past, with the entire growth expected in the first half of the year now replaced by a decline. Energy is a big reason for the sharp declines, but estimates have been coming down beyond the Energy sector as well.
Sheraz Mian
Director of Research
Note: In order to get an email alert each time this author publishes a new article, click on the 'Follow Author' link at the bottom of the top-right box of links.
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DEERE & CO (DE): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Everyone expects a deal to come through before the existing credit facility runs out by the end of next week, but German behavior is causing the negotiations to linger longer than they need to be. But the pace and magnitude of negative revisions for the current and following quarters is unlike anything we have seen in the recent past, with the entire growth expected in the first half of the year now replaced by a decline. Stocks were modestly in the red on Thursday and will start today's session no better.
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Including this morning's reports from Deere & Company ( DE ), Laboratory Corp. ( LH ) and others, we now have Q4 results from 440 S&P 500 members. Click to get this free report LABORATORY CP (LH): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks were modestly in the red on Thursday and will start today's session no better.
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On the earnings front, the reporting cycle has effectively ended for most sectors in the S&P 500, with Retail as the only one at this stage with a plurality of reports still to come (18 of the 42 retailers in the index have yet to report results). Click to get this free report LABORATORY CP (LH): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks were modestly in the red on Thursday and will start today's session no better.
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Click to get this free report LABORATORY CP (LH): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks were modestly in the red on Thursday and will start today's session no better. European data has held up reasonably well lately despite the Greek situation.
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722834.0
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2015-02-20 00:00:00 UTC
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Futures Flat to Lower as Markets Wait for Greece Deal
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DE
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https://www.nasdaq.com/articles/futures-flat-lower-markets-wait-greece-deal-2015-02-20
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U.S. stock futures took a cue from European markets Friday, trading near unchanged to lower as investors sit on the fence while waiting for a possible deal to be reached between Greece and its creditors.
In economic data out Friday, the PMI Manufacturing Index flash indicator at 9:45 a.m. E.T. is expected to have edged up to 53.8 in February from 53.7 in January. The consensus range is between 53.0 and 54.9, according to data compiled by Econoday.
In equities, Deere & Company ( DE ), the maker of construction, construction, earthmoving and forestry equipment, reported a drop in earnings and sales amid "sluggish" market conditions. DE shares were lower 0.3% in recent pre-market trade even as results exceeded estimates.
The National Bank of Greece (NBV), which has taken a beating on the uncertainty surrounding Greece's debts and funding options, saw its American Depository Receipts trade higher over 3% in recent pre-market trade.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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U.S. stock futures took a cue from European markets Friday, trading near unchanged to lower as investors sit on the fence while waiting for a possible deal to be reached between Greece and its creditors. In economic data out Friday, the PMI Manufacturing Index flash indicator at 9:45 a.m. E.T. DE shares were lower 0.3% in recent pre-market trade even as results exceeded estimates.
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DE shares were lower 0.3% in recent pre-market trade even as results exceeded estimates. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. U.S. stock futures took a cue from European markets Friday, trading near unchanged to lower as investors sit on the fence while waiting for a possible deal to be reached between Greece and its creditors.
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U.S. stock futures took a cue from European markets Friday, trading near unchanged to lower as investors sit on the fence while waiting for a possible deal to be reached between Greece and its creditors. The National Bank of Greece (NBV), which has taken a beating on the uncertainty surrounding Greece's debts and funding options, saw its American Depository Receipts trade higher over 3% in recent pre-market trade. In economic data out Friday, the PMI Manufacturing Index flash indicator at 9:45 a.m. E.T.
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In economic data out Friday, the PMI Manufacturing Index flash indicator at 9:45 a.m. E.T. The National Bank of Greece (NBV), which has taken a beating on the uncertainty surrounding Greece's debts and funding options, saw its American Depository Receipts trade higher over 3% in recent pre-market trade. U.S. stock futures took a cue from European markets Friday, trading near unchanged to lower as investors sit on the fence while waiting for a possible deal to be reached between Greece and its creditors.
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2015-02-20 00:00:00 UTC
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Stocks Eye Lower Open Ahead of Manufacturing Data; European Finance Ministers Meet on Greece Debt
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https://www.nasdaq.com/articles/stocks-eye-lower-open-ahead-manufacturing-data-european-finance-ministers-meet-greece-debt
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U.S. stocks were poised to open lower on Friday ahead of the little change expected in manufacturing data and as Eurozone finance ministers were set to meet again to discuss the precarious situation in Greece.
On Thursday, Germany rejected Greece's request to borrow more money because the proposal didn't fulfill terms for budget cuts and other austerity measures. Markets aren't expecting a deal to be reached Friday. Meanwhile, Malta's finance minister Edward Scicluna was cited by Bloomberg as saying that a European bloc led by Germany is willing to let Greece exit the Eurozone.
In economic data out Friday, the PMI Manufacturing Index flash indicator at 9:45 a.m. E.T. is expected to have edged down to 53.8 in February from a revised 53.9 in January. The consensus range is between 53.0 and 54.9, according to data compiled by Econoday.
In equities, Deere & Company ( DE ), the maker of construction, construction, earthmoving and forestry equipment, reported a drop in earnings and sales amid "sluggish" market conditions. DE shares were lower 1.3% in recent pre-market trade even as results exceeded estimates.
The National Bank of Greece ( NBG ), which has taken a beating on the uncertainty surrounding Greece's debts and funding options, saw its American Depository Receipts trade higher over 2% in recent pre-market trade.
U.S. PRE-MARKET INDICATORS
-Dow Jones Industrial down 0.13%
-S&P 500 futures down 0.19%
-Nasdaq 100 futures down 0.03%
-Nasdaq-100 Pre-Market Indicator up 0.03%
GLOBAL SENTIMENT
Nikkei up 0.37%
Hang Seng up 0.19%
Shanghai Composite up 0.65%
FTSE-100 up 0.20%
DAX-30 down 0.18%
PRE-MARKET SECTOR WATCH
(+/-) Large cap tech: mixed
(-) Chip stocks: unchanged to lower
(-) Software stocks: unchanged to lower
(+/-) Hardware stocks: mixed
(+/-) Internet stocks: mixed
(+/-) Drug stocks: mixed
(-) Financial stocks: unchanged to lower
(+/-) Retail stocks: mixed
(-) Industrial stocks: unchanged to lower
(+/-) Airlines: mixed
(+/-) Autos: mixed
UPSIDE MOVERS
(+) ANET (+10.6%) Q4 tops estimates, issues Q1 guidance
(+) CRC (+6.7%) Reports Q4 results
(+) SAAS (+7.1%) Reports narrower-than-expected Q4 loss
(+) CELG (+0.9%) Gets EU OK for blood cancer drug
(+) ERF (+3.2%) Reports strong Q4; cuts capital budget 40%
(+) CLSN (+14.3%) Reports encouraging ovarian cancer drug data
DOWNSIDE MOVERS
(-) FUEL (-24.2%) Reports Q4 revenue well below estimates
(-) PNW (-5.7%) Reports mixed Q4
(-) CLRX (-36.0%) Prices sale of stocks, warrants
(-) NDLS (-26.5%) Misses Q4 estimates, Janney Capital Downgrades to neutral vs buy
(-) IVAN (-62.1%) Files For bankruptcy protection in Canada
(-) MRVL (-1.5%) Misses Q4 sales estimates
(-) OESX (-6.5%) Prices share sale at 12.7% discount
(-) WMT (-1.3%) Barclays downgrades to equal weight vs overweight
(-) SNY (-2.0%) Names Bayer HealthCare chairman Olivier Brandicourt as CEO
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(-) FUEL (-24.2%) Reports Q4 revenue well below estimates (-) PNW (-5.7%) Reports mixed Q4 (-) CLRX (-36.0%) Prices sale of stocks, warrants (-) NDLS (-26.5%) Misses Q4 estimates, Janney Capital Downgrades to neutral vs buy (-) IVAN (-62.1%) Files For bankruptcy protection in Canada (-) MRVL (-1.5%) Misses Q4 sales estimates (-) OESX (-6.5%) Prices share sale at 12.7% discount (-) WMT (-1.3%) Barclays downgrades to equal weight vs overweight (-) SNY (-2.0%) Names Bayer HealthCare chairman Olivier Brandicourt as CEO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Markets aren't expecting a deal to be reached Friday. In economic data out Friday, the PMI Manufacturing Index flash indicator at 9:45 a.m. E.T.
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(-) FUEL (-24.2%) Reports Q4 revenue well below estimates (-) PNW (-5.7%) Reports mixed Q4 (-) CLRX (-36.0%) Prices sale of stocks, warrants (-) NDLS (-26.5%) Misses Q4 estimates, Janney Capital Downgrades to neutral vs buy (-) IVAN (-62.1%) Files For bankruptcy protection in Canada (-) MRVL (-1.5%) Misses Q4 sales estimates (-) OESX (-6.5%) Prices share sale at 12.7% discount (-) WMT (-1.3%) Barclays downgrades to equal weight vs overweight (-) SNY (-2.0%) Names Bayer HealthCare chairman Olivier Brandicourt as CEO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Markets aren't expecting a deal to be reached Friday. In economic data out Friday, the PMI Manufacturing Index flash indicator at 9:45 a.m. E.T.
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(-) FUEL (-24.2%) Reports Q4 revenue well below estimates (-) PNW (-5.7%) Reports mixed Q4 (-) CLRX (-36.0%) Prices sale of stocks, warrants (-) NDLS (-26.5%) Misses Q4 estimates, Janney Capital Downgrades to neutral vs buy (-) IVAN (-62.1%) Files For bankruptcy protection in Canada (-) MRVL (-1.5%) Misses Q4 sales estimates (-) OESX (-6.5%) Prices share sale at 12.7% discount (-) WMT (-1.3%) Barclays downgrades to equal weight vs overweight (-) SNY (-2.0%) Names Bayer HealthCare chairman Olivier Brandicourt as CEO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Markets aren't expecting a deal to be reached Friday. In economic data out Friday, the PMI Manufacturing Index flash indicator at 9:45 a.m. E.T.
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Markets aren't expecting a deal to be reached Friday. (-) FUEL (-24.2%) Reports Q4 revenue well below estimates (-) PNW (-5.7%) Reports mixed Q4 (-) CLRX (-36.0%) Prices sale of stocks, warrants (-) NDLS (-26.5%) Misses Q4 estimates, Janney Capital Downgrades to neutral vs buy (-) IVAN (-62.1%) Files For bankruptcy protection in Canada (-) MRVL (-1.5%) Misses Q4 sales estimates (-) OESX (-6.5%) Prices share sale at 12.7% discount (-) WMT (-1.3%) Barclays downgrades to equal weight vs overweight (-) SNY (-2.0%) Names Bayer HealthCare chairman Olivier Brandicourt as CEO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In economic data out Friday, the PMI Manufacturing Index flash indicator at 9:45 a.m. E.T.
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2015-02-20 00:00:00 UTC
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Dow Jones Today Hits New Record on Greek Deal News
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https://www.nasdaq.com/articles/dow-jones-today-hits-new-record-greek-deal-news-2015-02-20
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The Dow Jones today gained 154 points to close at a new record high. The S&P 500 Index also hit a new record.
What fueled the surge? Greece and Eurozone officials reached an agreement to extend the country's bailout for another four months.
Today's Scorecard:
Dow: 18,140.44, +154.67,+0.86%
S&P 500: 2,110.30, +12.85,+0.61%
Nasdaq: 4,955.97, +31.27,+0.63%
The S&P 500 Volatility Index ( VIX ), the market's fear gauge, dipped 6% on the day.
What Moved the Markets Today: Eurozone and Greek officials met for five hours this afternoon and emerged with an agreement to extend the nation's financial rescue for another four months. The deal was approved by all 19 governments of the European Union on the condition that Greece provide an initial list of reform measures by Monday. The Global X FTSE Greece 20 ETF (NYSE Arca: GREK ) jumped more than 10%, while shares of the National Bank of Greece (NYSE ADR: NBG ) jumped more than 21%.
Now, check out the other top market stories - plus get our new profit tip for investors:
Oil Prices Today:Crude oil prices yo-yoed on Friday, before finishing down on the day. The oil markets had their first weekly loss in roughly one month and pulled down domestic producers on the day. Shares of Nabors Industries Ltd. (NYSE: NBR ) and EOG Resources Inc. (NYSE: EOG ) both slipped more than 2.5% on the day. March 2015 futures for U.S. crude, priced at the NYMEX in New York City, dipped another 1.6% to hit $50.34 per barrel. Brent crude, priced in London, added 0.25% to hit $60.36 per barrel.
Earnings Beat: Shares of farm-equipment manufacturer Deere & Co. (NYSE: DE ) were up marginally after the company beat first-quarter earnings. The company reported better than expected sales of $5.61 billion, outpacing Wall Street expectations of $5.59 billion. Despite the positive news, the company slashed its earnings outlook. The stock received a boost this week after Warren Buffett revealed he had taken a new stake in the firm.
Pimco's Woes: Another big exit has struck Pacific Investment Management Company (PIMCO). The company announced its managing director and chief economist, Paul McCulley, will step down at the end of the month. However, if this sounds familiar, it is. McCulley has already left the company two times in his career. In 2014, McCulley returned as a favor to Bill Gross after Mohamed A. El-Erian stepped down. Despite the news, Money Map Report staple PIMCO Strategic Income Fund Inc. (NYSE: RCS ) gained 0.2%.
Tax Time: Shares of Intuit Inc. (Nasdaq: INTU ) jumped more than 6% today after the company's CFO said the firm has found no evidence that its financial systems have been hacked. The company concluded that fraudulent tax returns filed last month did not indicate any vulnerability in its TurboTax software. Avoid getting scammed out of your tax refund with these five tips...
An Apple a Day: Shares of Apple Inc. (Nasdaq: AAPL ) hit new all-time intraday high this afternoon before finishing up on the day by 0.8%. Apple stock continues to surge after the company's recent announcement of its electric vehicle and news it received two upgrades from analysts. Investors have made some lofty predictions for Apple stock in the future, but as we explained yesterday, these predictions might actually be too low.
Money MorningTip of the Day:You can make any investment virtually risk-free under the right circumstances by using a strategy called the "free trade."
Today's tip comes from Money Morning Chief Investment Strategist Keith Fitz-Gerald:
Markets are now at new record highs. Many investors are sitting on solid profits and, in doing so, taking on a lot more risk than they should.
So now is a perfect time to discuss one of my favorite tactics: the free trade.
This strategy lets you do three things at once:
Capture profits of at least 100%
Pay for your initial investment
Reduce the risk on your remaining position to almost nothing
It's simple. Here's how it works:
Once an investment delivers at least 100% returns, sell half your position to capture profits. Then redeploy those profits into other investments, and let the remaining shares of the first investment run.
So you get back your original investment, and you maintain all the upside you can handle, essentially "for free." Even better, since you've now "paid" for your investment, you can stay in the game with not another dollar at risk, even if the stock you've just harvested has a reversal in fortune and goes from hero to zero.
A free trade works in all market conditions, on any investment, and can be set up well in advance. No other technique I know of comes close in terms of simplicity or effectiveness.
Keith Fitz-Gerald is a seasoned market analyst and professional trader with more than 30 years of experience. Forbes.com recently hailed him as a "market visionary."For more investing tips and stock picks from Fitz-Gerald, go here...
To get full access to all Money Morning content including our latest Premium Report, "How to Make 2015 Your Wealthiest Year Ever," click here
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience - for free . Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer: © 2014 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our experts - who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV - deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. The S&P 500 Index also hit a new record.
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Now, check out the other top market stories - plus get our new profit tip for investors: Oil Prices Today:Crude oil prices yo-yoed on Friday, before finishing down on the day. The S&P 500 Index also hit a new record. Nasdaq: 4,955.97, +31.27,+0.63% The S&P 500 Volatility Index ( VIX ), the market's fear gauge, dipped 6% on the day.
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Now, check out the other top market stories - plus get our new profit tip for investors: Oil Prices Today:Crude oil prices yo-yoed on Friday, before finishing down on the day. The S&P 500 Index also hit a new record. Nasdaq: 4,955.97, +31.27,+0.63% The S&P 500 Volatility Index ( VIX ), the market's fear gauge, dipped 6% on the day.
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Apple stock continues to surge after the company's recent announcement of its electric vehicle and news it received two upgrades from analysts. The S&P 500 Index also hit a new record. Nasdaq: 4,955.97, +31.27,+0.63% The S&P 500 Volatility Index ( VIX ), the market's fear gauge, dipped 6% on the day.
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2015-02-20 00:00:00 UTC
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Earnings Reaction History: Deere & Company, 60.0% Follow-Through Indicator, 2.7% Sensitive
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https://www.nasdaq.com/articles/earnings-reaction-history-deere-company-600-follow-through-indicator-27-sensitive-2015-02
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Expected Earnings Release: 02/20/2015, Premarket
Avg. Extended-Hours Dollar Volume: $14,795,550
Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close.
Last 12 Qtrs Positive Only Price Reactions
Percent of time added to extended-hours gains: 0%
Average next regular session additional gain: 0%
There have not been any meaningful extended-hours earnings related price reactions over the previous 3 years (12 quarters) in this direction.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 85.7%
Average next regular session additional loss: 1.6%
Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 85.7% of the time (6 events) the stock dropped further, adding to the extended-hours losses by an average of 1.6% by the following regular session close.
Data provided by the MT Pro service at MTNewswires.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 0% Average next regular session additional gain: 0% There have not been any meaningful extended-hours earnings related price reactions over the previous 3 years (12 quarters) in this direction. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 85.7% Average next regular session additional loss: 1.6% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 85.7% of the time (6 events) the stock dropped further, adding to the extended-hours losses by an average of 1.6% by the following regular session close.
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Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 0% Average next regular session additional gain: 0% There have not been any meaningful extended-hours earnings related price reactions over the previous 3 years (12 quarters) in this direction. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 85.7% Average next regular session additional loss: 1.6% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 85.7% of the time (6 events) the stock dropped further, adding to the extended-hours losses by an average of 1.6% by the following regular session close.
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Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 0% Average next regular session additional gain: 0% There have not been any meaningful extended-hours earnings related price reactions over the previous 3 years (12 quarters) in this direction. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 85.7% Average next regular session additional loss: 1.6% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 85.7% of the time (6 events) the stock dropped further, adding to the extended-hours losses by an average of 1.6% by the following regular session close. Extended-Hours Dollar Volume: $14,795,550 Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session.
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Extended-Hours Dollar Volume: $14,795,550 Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close.
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2015-02-19 00:00:00 UTC
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Will Deere & Company (DE) Surprise this Earnings Season? - Analyst Blog
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https://www.nasdaq.com/articles/will-deere-company-de-surprise-this-earnings-season-analyst-blog-2015-02-19
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Deere & Company ( DE ), the worldwide producer and distributor of agricultural and forestry equipment, construction equipment and engines, is slated to report first-quarter fiscal 2015 results before the market opens on Feb 20, 2015. In the last quarter, it posted a positive earnings surprise of 15.82%. Deere has outpaced the Zacks Consensus Estimate in all the previous four quarters, with an average beat of 13.13%. Let's see how things are shaping up for this announcement.
Factors Influencing this Quarter
For the first quarter of fiscal 2015, Deere projected a 21% decline in equipment sales compared with the year-ago period. Agricultural equipment sales are expected to be lower due to weak farm income. Recently, USDA (U.S. Department of Agriculture) released its forecast for U.S. farm income in 2015 of $73.6 billion, the lowest since 2009 and a 32% drop from 2014. This is mainly because of falling crop prices such as corn and soybean, which in turn will affect farm income. This will restrain farmers from purchasing new agricultural equipment, thereby impacting Deere.
On the contrary, Construction & Forestry equipment sales are expected to grow as the leading indicators for construction activity continue to trend up, boding well for Deere. However, considering that the segment contributed 18% to Deere's revenues in fiscal 2014, pitted against the 73% contribution from Agriculture and Turf segment, the improvement will not be adequate to offset the latter's weakness.
Nevertheless, Deere will benefit from its acquisitions of Bauer Built Manufacturing and Sao Paulo, Brazil-based Auteq Telematica, which will support further growth and add to the company's highly successful product lineup in the country. Deere announced workforce adjustments at several factories in Iowa and Illinois as the company continues to align the size of its manufacturing workforce to market demand for its products. This will help boost margins.
Earnings Whispers?
Our proven model does not conclusively show that Deere is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below.
Zacks ESP : Deere has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 83 cents, resulting in 0.00% ESP.
Zacks Rank: Deere has a Zacks Rank #2 (Buy) which increases the predictive power of the ESP. However, a 0.00% ESP makes surprise prediction difficult.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings surprise:
Century Aluminum Co. ( CENX ) has an Earnings ESP of +7.58% and a Zacks Rank #3 (Hold).
TRI Pointe Homes, Inc. ( TPH ) has an earnings ESP of +12.50% and a Zacks Rank #1 (Strong Buy).
HudBay Minerals, Inc. ( HBM ) has an earnings ESP of +50.00% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
HUDBAY MINERALS (HBM): Free Stock Analysis Report
CENTURY ALUM CO (CENX): Free Stock Analysis Report
TRI POINTE HOME (TPH): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recently, USDA (U.S. Department of Agriculture) released its forecast for U.S. farm income in 2015 of $73.6 billion, the lowest since 2009 and a 32% drop from 2014. Nevertheless, Deere will benefit from its acquisitions of Bauer Built Manufacturing and Sao Paulo, Brazil-based Auteq Telematica, which will support further growth and add to the company's highly successful product lineup in the country. Deere & Company ( DE ), the worldwide producer and distributor of agricultural and forestry equipment, construction equipment and engines, is slated to report first-quarter fiscal 2015 results before the market opens on Feb 20, 2015.
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Click to get this free report DEERE & CO (DE): Free Stock Analysis Report HUDBAY MINERALS (HBM): Free Stock Analysis Report CENTURY ALUM CO (CENX): Free Stock Analysis Report TRI POINTE HOME (TPH): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company ( DE ), the worldwide producer and distributor of agricultural and forestry equipment, construction equipment and engines, is slated to report first-quarter fiscal 2015 results before the market opens on Feb 20, 2015. Deere has outpaced the Zacks Consensus Estimate in all the previous four quarters, with an average beat of 13.13%.
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Zacks ESP : Deere has an Earnings ESP of 0.00%. Stocks that Warrant a Look Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings surprise: Century Aluminum Co. ( CENX ) has an Earnings ESP of +7.58% and a Zacks Rank #3 (Hold). Click to get this free report DEERE & CO (DE): Free Stock Analysis Report HUDBAY MINERALS (HBM): Free Stock Analysis Report CENTURY ALUM CO (CENX): Free Stock Analysis Report TRI POINTE HOME (TPH): Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks ESP : Deere has an Earnings ESP of 0.00%. Stocks that Warrant a Look Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings surprise: Century Aluminum Co. ( CENX ) has an Earnings ESP of +7.58% and a Zacks Rank #3 (Hold). Deere & Company ( DE ), the worldwide producer and distributor of agricultural and forestry equipment, construction equipment and engines, is slated to report first-quarter fiscal 2015 results before the market opens on Feb 20, 2015.
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722839.0
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2015-02-19 00:00:00 UTC
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Pre-Market Earnings Report for February 20, 2015 : ENB, DE, HCN, PEG, COG, LH, IRM, PNW, COMM, TFX, IPGP, CHH
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https://www.nasdaq.com/articles/pre-market-earnings-report-february-20-2015-enb-de-hcn-peg-cog-lh-irm-pnw-comm-tfx-ipgp
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The following companies are expected to report earnings prior to market open on 02/20/2015. Visit our Earnings Calendar for a full list of expected earnings releases.
Enbridge Inc ( ENB ) is reporting for the quarter ending December 31, 2014. The oil (production/pipeline) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.50. This value represents a 25.00% increase compared to the same quarter last year. ENB missed the consensus earnings per share in the 4th calendar quarter of 2013 by -6.98%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for ENB is 29.52 vs. an industry ratio of 40.80.
Deere & Company ( DE ) is reporting for the quarter ending January 31, 2015. The farm machinery company's consensus earnings per share forecast from the 12 analysts that follow the stock is $0.83. This value represents a 54.14% decrease compared to the same quarter last year. In the past year DE has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 15.82%. The "days to cover" for this stock exceeds 10 days. Zacks Investment Research reports that the 2015 Price to Earnings ratio for DE is 16.83 vs. an industry ratio of -45.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Health Care REIT, Inc. ( HCN ) is reporting for the quarter ending December 31, 2014. The reit company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.02. This value represents a 3.03% increase compared to the same quarter last year. In the past year HCN has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 0.97%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for HCN is 18.96 vs. an industry ratio of 16.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Public Service Enterprise Group Incorporated ( PEG ) is reporting for the quarter ending December 31, 2014. The electric power utilities company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.48. This value represents a 2.04% decrease compared to the same quarter last year. PEG missed the consensus earnings per share in the 2nd calendar quarter of 2014 by -7.55%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for PEG is 14.85 vs. an industry ratio of 15.70.
Cabot Oil & Gas Corporation ( COG ) is reporting for the quarter ending December 31, 2014. The oil (us exp & production) company's consensus earnings per share forecast from the 20 analysts that follow the stock is $0.23. This value represents a 35.29% increase compared to the same quarter last year. Zacks Investment Research reports that the 2014 Price to Earnings ratio for COG is 28.37 vs. an industry ratio of 1.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Laboratory Corporation of America Holdings ( LH ) is reporting for the quarter ending December 31, 2014. The medical/dental supplies company's consensus earnings per share forecast from the 14 analysts that follow the stock is $1.63. This value represents a 1.24% increase compared to the same quarter last year. Zacks Investment Research reports that the 2014 Price to Earnings ratio for LH is 17.26 vs. an industry ratio of 12.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Iron Mountain Incorporated ( IRM ) is reporting for the quarter ending December 31, 2014. The business services company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.31. This value represents a 106.67% increase compared to the same quarter last year. Zacks Investment Research reports that the 2014 Price to Earnings ratio for IRM is 28.64 vs. an industry ratio of 75.20.
Pinnacle West Capital Corporation ( PNW ) is reporting for the quarter ending December 31, 2014. The electric power utilities company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.17. This value represents a 22.73% decrease compared to the same quarter last year. In the past year PNW has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 1.38%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for PNW is 17.97 vs. an industry ratio of 15.70, implying that they will have a higher earnings growth than their competitors in the same industry.
CommScope Holding Company, Inc. ( COMM ) is reporting for the quarter ending December 31, 2014. The infrastructure company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.35. This value represents a 25.00% increase compared to the same quarter last year. In the past year COMM has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 7.02%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for COMM is 14.55 vs. an industry ratio of 169.20.
Teleflex Incorporated ( TFX ) is reporting for the quarter ending December 31, 2014. The medical instruments company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.38. This value represents a 1.47% increase compared to the same quarter last year. In the past year TFX has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 14.6%. The "days to cover" for this stock exceeds 11 days. Zacks Investment Research reports that the 2014 Price to Earnings ratio for TFX is 20.43 vs. an industry ratio of -6.80, implying that they will have a higher earnings growth than their competitors in the same industry.
IPG Photonics Corporation ( IPGP ) is reporting for the quarter ending December 31, 2014. The laser systems company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.07. This value represents a 52.86% increase compared to the same quarter last year. The "days to cover" for this stock exceeds 22 days. Zacks Investment Research reports that the 2014 Price to Earnings ratio for IPGP is 23.43 vs. an industry ratio of -20.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Choice Hotels International, Inc. ( CHH ) is reporting for the quarter ending December 31, 2014. The hotel company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.38. This value represents a 17.39% decrease compared to the same quarter last year. In the past year CHH has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2014 Price to Earnings ratio for CHH is 30.69 vs. an industry ratio of 44.30.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Enbridge Inc ( ENB ) is reporting for the quarter ending December 31, 2014. Deere & Company ( DE ) is reporting for the quarter ending January 31, 2015. This value represents a 54.14% decrease compared to the same quarter last year.
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Zacks Investment Research reports that the 2015 Price to Earnings ratio for DE is 16.83 vs. an industry ratio of -45.90, implying that they will have a higher earnings growth than their competitors in the same industry. Enbridge Inc ( ENB ) is reporting for the quarter ending December 31, 2014. Deere & Company ( DE ) is reporting for the quarter ending January 31, 2015.
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Zacks Investment Research reports that the 2015 Price to Earnings ratio for DE is 16.83 vs. an industry ratio of -45.90, implying that they will have a higher earnings growth than their competitors in the same industry. Enbridge Inc ( ENB ) is reporting for the quarter ending December 31, 2014. Deere & Company ( DE ) is reporting for the quarter ending January 31, 2015.
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In the past year DE has beat the expectations every quarter. Enbridge Inc ( ENB ) is reporting for the quarter ending December 31, 2014. Deere & Company ( DE ) is reporting for the quarter ending January 31, 2015.
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2015-02-18 00:00:00 UTC
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2 Stocks That Felt the Warren Buffett Effect Wednesday (and 1 That Ignored It)
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https://www.nasdaq.com/articles/2-stocks-felt-warren-buffett-effect-wednesday-and-1-ignored-it-2015-02-18
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When Warren Buffett moves, people watch.
For the most part, Wednesday was a lackluster day for the stock markets, which pulled back slightly after yesterday's record run above 2,100 for the S&P 500 . As of 11:15 a.m. EST, the Dow Jones Industrials were down 41 points, while the S&P 500 had seen a similar percentage drop of about 0.25%. Yet despite the relative quiet in the broader market benchmarks, several stocks saw big moves as a result of the latest SEC filings from Berkshire Hathaway : Warren Buffett's most recent switches in his portfolio revealed some mistakes by the Oracle of Omaha, as well as his proposed fixes for those mistakes.
Source: ExxonMobil.
Within the Dow, the biggest impact from the Berkshire moves showed up in ExxonMobil , which fell 1.7%. Oil prices did decline slightly on Wednesday, and fellow oil giant Chevron also dropped by more than 1%. But Berkshire made the aggressive move of selling off all of its 41 million-share stake in ExxonMobil at some point between last October and December, likely reaping between $3.5 billion and $4 billion in proceeds. Exxon was an unusually short-term holding for Buffett, with Berkshire having just acquired shares in 2013. The about-face was the latest in a series of questionable forays into the energy market for Berkshire, including its ill-timed purchase of ConocoPhillips stock and losses stemming from its purchase of Energy Future Holdings bonds.
On the other side of the ledger, farm equipment maker Deere jumped almost 2%. Berkshire has owned shares of the company for a while, but it publically disclosed its Deere holdings for the first time in its fourth-quarter SEC filing. As of the end of 2014, the stake was worth $1.5 billion, and the stock has avoided the fate of some of its fellow heavy-equipment makers in part because of its agricultural focus. Unlike many of its peers, Deere has relatively little exposure to the energy and materials industries, and that has limited the fallout from plunging oil and metals prices recently.
Source: John Deere.
Finally, not all of Berkshire's new picks celebrated the Buffett news. Twenty-First Century Fox dropped slightly despite Buffett's having reported a 4.7 million-share stake in the multimedia company. Berkshire has emphasized media-industry companies recently, with positions in cable and satellite television providers as well as network and content production companies. Fox shares have been stuck in a holding pattern for much of the past two years, but Buffett clearly hopes that his timing will be good to see a future rise in the importance of media generally and Fox in particular.
Just because Buffett makes a move doesn't mean that you should automatically follow. Yet looking at the impact Berkshire positions can have on the market, it's worth staying up to date on what the Oracle of Omaha is doing with his portfolio.
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The article 2 Stocks That Felt the Warren Buffett Effect Wednesday (and 1 That Ignored It) originally appeared on Fool.com.
Dan Caplinger owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway and Chevron. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As of the end of 2014, the stake was worth $1.5 billion, and the stock has avoided the fate of some of its fellow heavy-equipment makers in part because of its agricultural focus. Unlike many of its peers, Deere has relatively little exposure to the energy and materials industries, and that has limited the fallout from plunging oil and metals prices recently. Yet despite the relative quiet in the broader market benchmarks, several stocks saw big moves as a result of the latest SEC filings from Berkshire Hathaway : Warren Buffett's most recent switches in his portfolio revealed some mistakes by the Oracle of Omaha, as well as his proposed fixes for those mistakes.
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Yet despite the relative quiet in the broader market benchmarks, several stocks saw big moves as a result of the latest SEC filings from Berkshire Hathaway : Warren Buffett's most recent switches in his portfolio revealed some mistakes by the Oracle of Omaha, as well as his proposed fixes for those mistakes. Oil prices did decline slightly on Wednesday, and fellow oil giant Chevron also dropped by more than 1%. But Berkshire made the aggressive move of selling off all of its 41 million-share stake in ExxonMobil at some point between last October and December, likely reaping between $3.5 billion and $4 billion in proceeds.
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Yet despite the relative quiet in the broader market benchmarks, several stocks saw big moves as a result of the latest SEC filings from Berkshire Hathaway : Warren Buffett's most recent switches in his portfolio revealed some mistakes by the Oracle of Omaha, as well as his proposed fixes for those mistakes. But Berkshire made the aggressive move of selling off all of its 41 million-share stake in ExxonMobil at some point between last October and December, likely reaping between $3.5 billion and $4 billion in proceeds. Oil prices did decline slightly on Wednesday, and fellow oil giant Chevron also dropped by more than 1%.
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But Berkshire made the aggressive move of selling off all of its 41 million-share stake in ExxonMobil at some point between last October and December, likely reaping between $3.5 billion and $4 billion in proceeds. Berkshire has owned shares of the company for a while, but it publically disclosed its Deere holdings for the first time in its fourth-quarter SEC filing. Yet despite the relative quiet in the broader market benchmarks, several stocks saw big moves as a result of the latest SEC filings from Berkshire Hathaway : Warren Buffett's most recent switches in his portfolio revealed some mistakes by the Oracle of Omaha, as well as his proposed fixes for those mistakes.
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2015-02-17 00:00:00 UTC
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Grainger's Growth Story Intact, Canada a Near-Term Headwind - Analyst Blog
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https://www.nasdaq.com/articles/graingers-growth-story-intact-canada-a-near-term-headwind-analyst-blog-2015-02-17
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On Feb 13, 2015, we issued an updated research report on W.W. Grainger Inc. ( GWW ). This leading broad-line supplier of maintenance, repair and operating (MRO) products reported fourth-quarter 2014 earnings per share of $2.80, up 8% year over year.
Grainger, however, lowered its 2015 guidance and now expects sales growth of 3% to 7% and earnings per share to come in at $12.60 to $13.60 in 2015. This reflects negative impact of foreign currency translation due to further weakening of the Canadian and Japanese currencies, as well as a soft macroeconomic backdrop in Canada.
The devaluation of the Canadian dollar in the quarter along with a deteriorating macroeconomic environment has pressured the Canadian business. Even though sales growth has improved in the fourth quarter in the country, currency headwinds and increased investments in supply chain and SAP implementation costs will continue to weigh on margins going forward. Moreover, the recent plunge in oil prices will affect the segment's results as about 20% of the Canadian business is directly tied to the oil and gas markets.
Grainger's gross margin continues to be under pressure due to large account customer growth and a continued low inflationary environment. Management expects gross margin in 2015 to remain essentially flat with that in 2014. It is to be noted that large customers and single-channel online business, carry lower gross margins.
Nevertheless, Grainger is focused on expanding its product offerings, sales force and the share of its private label products, which will lead to long-term growth. Acquisitions will also remain a key growth driver.
We believe Grainger is poised to benefit from its new strategy in key international markets. The company announced the exit of its business in Brazil which was incurring losses. In Europe, it restructured its Fabory business and launched a single channel Zoro model, replicating its earlier success.
As a result of the restructuring program, Grainger shut down 26 branches in Europe during the quarter. Fabory is expected to breakeven in 2015 before becoming profitable in 2016. Europe is an attractive market considering its size, economic maturity and market dynamics.
Grainger also continues to invest in eCommerce and expects increment in the number of customers utilizing this channel as well as its percentage of overall sales. Grainger crossed the $3 billion mark in eCommerce sales in 2013, representing 33% of the company's total sales, and now targets to increase it to 50% by 2015. E-commerce is one of Grainger's most efficient channels as it is reportedly growing twice as fast as other channels and is deemed the company's most profitable channel.
Grainger currently carries a Zacks Rank #3 (Hold).
Key Picks from the Sector
Some better-ranked stocks within this sector include Briggs & Stratton Corp. ( BGG ), Kadant Inc. ( KAI ) and Deere & Co. ( DE ). While Briggs & Stratton sports a Zank #1 (Strong Buy), Kadant and Deere carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GRAINGER W W (GWW): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
KADANT INC (KAI): Free Stock Analysis Report
BRIGGS & STRATT (BGG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In Europe, it restructured its Fabory business and launched a single channel Zoro model, replicating its earlier success. The devaluation of the Canadian dollar in the quarter along with a deteriorating macroeconomic environment has pressured the Canadian business. Grainger's gross margin continues to be under pressure due to large account customer growth and a continued low inflationary environment.
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Grainger's gross margin continues to be under pressure due to large account customer growth and a continued low inflationary environment. Key Picks from the Sector Some better-ranked stocks within this sector include Briggs & Stratton Corp. ( BGG ), Kadant Inc. ( KAI ) and Deere & Co. ( DE ). Click to get this free report GRAINGER W W (GWW): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report KADANT INC (KAI): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report To read this article on Zacks.com click here.
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Grainger's gross margin continues to be under pressure due to large account customer growth and a continued low inflationary environment. Click to get this free report GRAINGER W W (GWW): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report KADANT INC (KAI): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report To read this article on Zacks.com click here. The devaluation of the Canadian dollar in the quarter along with a deteriorating macroeconomic environment has pressured the Canadian business.
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The devaluation of the Canadian dollar in the quarter along with a deteriorating macroeconomic environment has pressured the Canadian business. Click to get this free report GRAINGER W W (GWW): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report KADANT INC (KAI): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report To read this article on Zacks.com click here. Grainger's gross margin continues to be under pressure due to large account customer growth and a continued low inflationary environment.
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2015-02-17 00:00:00 UTC
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Deere (DE) Grows on Strategic Initiatives, Risks Remain - Analyst Blog
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https://www.nasdaq.com/articles/deere-de-grows-on-strategic-initiatives-risks-remain-analyst-blog-2015-02-17
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On Feb 13, 2015, we issued an updated research report on Deere & Company ( DE ). While acquisitions, workforce adjustments and improvement in nonresidential market are the positive attributes of the stock, weak global farming economy along with economic and social uncertainty remain headwinds.
On Jan 2015, Deere announced workforce adjustments at several factories in Iowa and Illinois as the company continues to align the size of its manufacturing workforce to market demand for products. The actions include indefinite layoffs at five locations as well as an extended inventory adjustment shutdown at another factory.
In addition, Deere declared that it has added new jobs at two locations that build construction and forestry equipment. The action will help the company to boost margins.
Further, Deere entered into an agreement to sell its crop insurance unit to West Des Moines, IA-based Farmers Mutual Hail Insurance Co. on Dec 18, 2014, as price declines and falling demand have made the business less profitable in recent years. Notably, effective risk management remains an important factor for the company's operations. The transaction is expected to close in the first quarter of 2015.
On the acquisition front, Deere purchased Bauer Built Manufacturing in Sep 2014, in order to expand its portfolio of agricultural equipment and enhance its ability to serve larger farms in key markets globally. Further, in Dec 2014, the company acquired Sao Paulo, Brazil-based Auteq Telematica, which will provide the company with additional specialization in the sugarcane market. These steps supports further growth and add to its highly successful product lineup.
In fiscal 2015, Deere expects sales growth of turf and utility equipment in the U.S. and Canada to range from flat to up 5%, benefiting from general economic growth. The company foresees global sales for Construction & Forestry equipment to advance about 5% in the fiscal. The gain reflects further economic recovery and higher housing starts in the U.S. as well as sales increases outside the U.S. and Canada.
On the flipside, Deere expects equipment sales to decrease around 15% year over year in fiscal 2015. For the first quarter of fiscal 2015, Deere projected a 21% decline from the year-ago period. The company anticipates its net income to be $1.9 billion for fiscal 2015. Segment-wise, Deere estimated Agriculture and Turf equipment sales to decline 20% for fiscal 2015 as a result of weaker conditions in the global farming economy.
Additionally, industry farm machinery sales in the U.S. and Canada are expected to be down 25% to 30% for fiscal 2015. In Europe, sales are projected to be down 10% due to lower commodity prices and farm income as well as potential pressure on the dairy sector.
Sales in the Commonwealth of Independent States are expected to deteriorate further, in part due to tight credit conditions. Sales in Asia are projected to be down slightly, with most of the decline centered in China. In South America, industry sales of tractors and combines are expected to decline by 10% year over year due to headwinds affecting agricultural producers.
Although Deere is expanding its business globally, growth opportunities might get affected by greater political, economic and social uncertainty. Further, Deere operates in a variety of highly competitive global and regional markets. Aggressive pricing or other strategies pursued by competitors, unanticipated product or manufacturing delays could adversely affect Deere's business, results of operations and financial condition.
Furthermore, the estimates for Deere have moved downward in the past 90 days. The Zacks Consensus Estimate for 2015 decreased nearly 15.6% to $5.51 per share and for 2016 the same reduced 9.3% to $5.34 per share.
Deere currently carries a Zacks Rank #2 (Buy).
Other StocksThat Warrant a Look
Other better-ranked stocks in the sector include Briggs & Stratton Corp. ( BGG ), Abengoa SA ( ABGB ) and Kubota Corp. ( KUBTY ). While Briggs & Stratton and Abengoa sport a Zacks Rank #1 (Strong Buy), Kubota holds a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
KUBOTA CORP ADR (KUBTY): Get Free Report
BRIGGS & STRATT (BGG): Free Stock Analysis Report
ABENGOA SA (ABGB): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While acquisitions, workforce adjustments and improvement in nonresidential market are the positive attributes of the stock, weak global farming economy along with economic and social uncertainty remain headwinds. On the acquisition front, Deere purchased Bauer Built Manufacturing in Sep 2014, in order to expand its portfolio of agricultural equipment and enhance its ability to serve larger farms in key markets globally. Aggressive pricing or other strategies pursued by competitors, unanticipated product or manufacturing delays could adversely affect Deere's business, results of operations and financial condition.
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Segment-wise, Deere estimated Agriculture and Turf equipment sales to decline 20% for fiscal 2015 as a result of weaker conditions in the global farming economy. Other StocksThat Warrant a Look Other better-ranked stocks in the sector include Briggs & Stratton Corp. ( BGG ), Abengoa SA ( ABGB ) and Kubota Corp. ( KUBTY ). Click to get this free report DEERE & CO (DE): Free Stock Analysis Report KUBOTA CORP ADR (KUBTY): Get Free Report BRIGGS & STRATT (BGG): Free Stock Analysis Report ABENGOA SA (ABGB): Get Free Report To read this article on Zacks.com click here.
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In fiscal 2015, Deere expects sales growth of turf and utility equipment in the U.S. and Canada to range from flat to up 5%, benefiting from general economic growth. Segment-wise, Deere estimated Agriculture and Turf equipment sales to decline 20% for fiscal 2015 as a result of weaker conditions in the global farming economy. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report KUBOTA CORP ADR (KUBTY): Get Free Report BRIGGS & STRATT (BGG): Free Stock Analysis Report ABENGOA SA (ABGB): Get Free Report To read this article on Zacks.com click here.
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In fiscal 2015, Deere expects sales growth of turf and utility equipment in the U.S. and Canada to range from flat to up 5%, benefiting from general economic growth. On the flipside, Deere expects equipment sales to decrease around 15% year over year in fiscal 2015. Segment-wise, Deere estimated Agriculture and Turf equipment sales to decline 20% for fiscal 2015 as a result of weaker conditions in the global farming economy.
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2015-02-15 00:00:00 UTC
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How Did a Janitor Amass $8 Million? The Same Way You Can
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https://www.nasdaq.com/articles/how-did-janitor-amass-8-million-same-way-you-can-2015-02-15
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Brattleboro, Vermont, will be even nicer than it already is, thanks to Ronald Read. Photo: Ken Gallager
The name Ronald Read might not mean too much to you -- yet -- but it certainly does to Vermont's Brooks Memorial Library and Brattleboro Memorial Hospital, which received gifts totaling $6 million. They came not from a titan of industry or big-name philanthropist, but from the estate of Ronald Read, who worked as a janitor and gas station attendant. Read died last year at the age of 92, with an estate valued near $8 million.
Stories like this are actually not unheard of -- I've written of them many times before. For those who pay attention, they offer a hugely valuable lesson -- that we can probably amass far more money than we would ever expect.
Many thought Read's only hobby was chopping wood. (Photo: Merzperson, via Wikimedia Commons)
How he did it
Of course, there's more to amassing $8 million, or any other large sum, than merely wishing for it and socking away extra dollars now and then. Let's review how Read did it, and what lessons we can learn from him:
He took a long time. Wealth like that generally doesn't happen quickly. We, too, need to be patient once we set our goals and set in motion a plan to reach them. You might play around with a calculator to see how you could reach your goal. If you wanted to get to Read's $8 million, you might, for example, invest $6,300 per year for 50 years. If you earned the stock market's long-term average annual gain of about 10%, you'd hit $8 million.
He lived frugally. There's frugal, taking advantage of sale prices for your vacation tickets or buying a new car with the mid-level trim package, and then there's really frugal. Read reportedly would park in inconvenient spots in order to avoid parking meters. He drove a second-hand Toyota Yaris. He also searched for and cut his own firewood. It's worth noting that he didn't take his frugality to the most extreme level, as he treated himself to coffee-shop breakfasts instead of preparing his own eggs and coffee. Being disciplined about pursuing a goal is great, but we should enjoy life, too.
Mr. Read was very frugal, but treated himself to diner breakfasts. (Photo: Jim G., Silicon Valley, California, via Wikimedia Commons)
He kept learning. Read, true to his name, regularly read The Wall Street Journal , where he could learn about companies far and wide and keep up with happenings in the business world. Note, too, that he graduated from high school -- the first in his family to do so -- but didn't graduate from college, which reinforces that we don't need fancy degrees in order to invest well. Indeed, we can invest in a low-cost broad market index fund, such as one based on the S&P 500, and will likely outperform most Wall Street money managers -- as has happened over many long periods.
He invested in familiar companies. We're often drawn to high-flying stocks we've barely heard of, but Read's success reminds us that old, familiar blue chip stocks can be high-flyers, too -- over the long run. His attorney noted, "He only invested in what he knew and what paid dividends." Some of his holdings were AT&T , Bank of America , CVS , Deere , General Electric , and General Motors . I suspect you've heard of every one of those. Here are their average annual gains over several time frames (excluding General Motors due to its bankruptcy):
*over 28 years
He favored dividend-paying stocks. His preference for dividend payers is worth calling out, as dividends can really turbocharge a stock's performance. The folks at Ave Maria Funds recently offered a great example of the power of dividends, noting that the S&P 500's average annual gain from the beginning of 1970 to the end of 2014 was about 7.2% without dividends, but 10.5% with them. Over many years, that's a huge difference, turning $1,000 invested in 1970 into $22,382 (just prices) or $88,593 (including dividends) at the end of 2014.
Regular, disciplined investing can build a lot of money. (Photo: Jeff Belmonte , Flickr)
He was a buy-to-hold investor. Read kept stock certificates in a safety deposit box, which means he most likely didn't trade very often. These days it's most common to let your brokerage hold your stocks in "street name," keeping you on record as the owner, but not bothering to send out certificates. That makes selling shares very easy, as you don't have to find certificates and mail them in. But it also makes it very easy to buy and sell frequently, which has been shown to lower returns.
Read is no longer with us, but his investments funded gifts that will make it hard for him to be forgotten anytime soon. We, too, can surprise ourselves and others with our investing success -- if we take many of his lessons to heart.
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The article How Did a Janitor Amass $8 Million? The Same Way You Can originally appeared on Fool.com.
Longtime Fool specialist Selena Maranjian,whom you canfollow on Twitter , owns shares of General Electric Company. The Motley Fool recommends Bank of America, CVS Health, and General Motors. The Motley Fool owns shares of Bank of America and General Electric Company. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Indeed, we can invest in a low-cost broad market index fund, such as one based on the S&P 500, and will likely outperform most Wall Street money managers -- as has happened over many long periods. Here are their average annual gains over several time frames (excluding General Motors due to its bankruptcy): *over 28 years He favored dividend-paying stocks. Read reportedly would park in inconvenient spots in order to avoid parking meters.
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Some of his holdings were AT&T , Bank of America , CVS , Deere , General Electric , and General Motors . Read reportedly would park in inconvenient spots in order to avoid parking meters. Read, true to his name, regularly read The Wall Street Journal , where he could learn about companies far and wide and keep up with happenings in the business world.
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Read, true to his name, regularly read The Wall Street Journal , where he could learn about companies far and wide and keep up with happenings in the business world. Read reportedly would park in inconvenient spots in order to avoid parking meters. Note, too, that he graduated from high school -- the first in his family to do so -- but didn't graduate from college, which reinforces that we don't need fancy degrees in order to invest well.
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We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Read reportedly would park in inconvenient spots in order to avoid parking meters. Read, true to his name, regularly read The Wall Street Journal , where he could learn about companies far and wide and keep up with happenings in the business world.
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722844.0
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2015-02-13 00:00:00 UTC
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Grainger Shares Fall as January Sales Rise a Meager 3% - Analyst Blog
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https://www.nasdaq.com/articles/grainger-shares-fall-as-january-sales-rise-a-meager-3-analyst-blog-2015-02-13
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W.W. Grainger, Inc. ( GWW ) reported a mere 3% year-over-year increase in its Jan 2015 sales, reflecting a weak start to the year. This led to a 1.38% drop in Grainger's shares.
This January had 21 selling days, one less than last year. The gain in January sales included a one percentage point positive contribution from acquisitions and a two percentage point negative impact from foreign currency fluctuations, mainly due to a weak Canadian dollar.
On an organic basis, sales improved 4% driven by volume growth of 4 percentage points and a 2 percentage point comparison benefit, as extreme weather had affected its business in January last year. However, a 2 percentage point decline due to lower sales of seasonal products had a deterring effect.
Geographically, daily sales in the U.S. during January rose 4%, aided by higher volume (three percentage points) and favorable comparisons due to the business disruptions last year (three percentage points), partially offset by a 2 percentage point decline from lower sales of seasonal products.
Among the end markets, commercial was up in the high single digits driven by sales of Ebola related safety products to health care customers. Heavy and Light Manufacturing, Government and Retail were up in the mid single digits. Natural Resources was flat, while reseller and contractor were down in the mid single digits. All the customer end markets, barring oil and gas prices, had a dampening effect on Natural Resources.
Canada saw a 4% decline in sales. Daily sales in Canada gained 6% in local currency, which included a 7 percentage point contribution from the recent WFS Enterprises acquisition, a 2 percentage point benefit from favorable comparability to the weather-related business disruptions last year and 1 percentage point from price. However, a 3 percentage point decline in volume and a 1 percentage point decline from lower sales of seasonal products led to the overall decline.
Volumes were hurt as growth in the Government, Light Manufacturing, Utilities, Forestry and Transportation customer end markets were offset by lower sales to the Contractor, Oil & Gas, Commercial, Retail and Heavy Manufacturing markets.
Daily sales at Grainger's other businesses, including operations in Asia, Europe and Latin America, climbed 14% as higher volume (26 percentage points) was offset by negative foreign currency translation (12 percentage points), mainly due to weakness in the Japanese yen, euro and Mexican peso versus the U.S. dollar.
In local currency, sales for the business in Japan grew more than 30%, while sales for the business in Mexico grew in the mid teens. Grainger's single channel online model in the United States, Zoro, continued its triple-digit growth trend.
According to Grainger, daily sales gain in February is trending in the low single digits, citing lower organic growth in Canada, foreign exchange headwinds and disruptions from snow storms in northeast United States.
The company expects unfavorable foreign exchange to remain a significant headwind through the rest of the year. Moreover, approximately 20% of its Canadian sales are directly related to the oil and gas industry. This will have an impact on its results. Nevertheless, Grainger will benefit from expansion of product offerings and acquisitions. Continued investment in eCommerce and single channel sales channel will also drive growth.
Lake Forest, IL-based Grainger is a leading North American distributor of material-handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, forestry and agriculture equipment, building and home inspection supplies, vehicle and fleet components, and various aftermarket components.
Grainger currently holds a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector are Abengoa SA ( ABGB ), Briggs & Stratton Corporation ( BGG ) and Deere & company ( DE ). While Abengoa SA sports a Zacks Rank #1 (Strong Buy), Briggs & Stratton and Deere carry a Zacks Rank #2 (Buy).
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GRAINGER W W (GWW): Free Stock Analysis Report
BRIGGS & STRATT (BGG): Free Stock Analysis Report
ABENGOA SA (ABGB): Get Free Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better-ranked stocks in the same sector are Abengoa SA ( ABGB ), Briggs & Stratton Corporation ( BGG ) and Deere & company ( DE ). The gain in January sales included a one percentage point positive contribution from acquisitions and a two percentage point negative impact from foreign currency fluctuations, mainly due to a weak Canadian dollar. However, a 2 percentage point decline due to lower sales of seasonal products had a deterring effect.
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Geographically, daily sales in the U.S. during January rose 4%, aided by higher volume (three percentage points) and favorable comparisons due to the business disruptions last year (three percentage points), partially offset by a 2 percentage point decline from lower sales of seasonal products. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report GRAINGER W W (GWW): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report ABENGOA SA (ABGB): Get Free Report To read this article on Zacks.com click here. The gain in January sales included a one percentage point positive contribution from acquisitions and a two percentage point negative impact from foreign currency fluctuations, mainly due to a weak Canadian dollar.
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Geographically, daily sales in the U.S. during January rose 4%, aided by higher volume (three percentage points) and favorable comparisons due to the business disruptions last year (three percentage points), partially offset by a 2 percentage point decline from lower sales of seasonal products. Daily sales in Canada gained 6% in local currency, which included a 7 percentage point contribution from the recent WFS Enterprises acquisition, a 2 percentage point benefit from favorable comparability to the weather-related business disruptions last year and 1 percentage point from price. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report GRAINGER W W (GWW): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report ABENGOA SA (ABGB): Get Free Report To read this article on Zacks.com click here.
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Daily sales in Canada gained 6% in local currency, which included a 7 percentage point contribution from the recent WFS Enterprises acquisition, a 2 percentage point benefit from favorable comparability to the weather-related business disruptions last year and 1 percentage point from price. However, a 3 percentage point decline in volume and a 1 percentage point decline from lower sales of seasonal products led to the overall decline. The gain in January sales included a one percentage point positive contribution from acquisitions and a two percentage point negative impact from foreign currency fluctuations, mainly due to a weak Canadian dollar.
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2015-02-05 00:00:00 UTC
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3 Industrial Stocks to Surprise this Earnings Season - Earnings ESP
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https://www.nasdaq.com/articles/3-industrial-stocks-to-surprise-this-earnings-season-earnings-esp-2015-02-05
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Midway through the fourth-quarter 2014 earnings season, we can safely point out a few important economic factors which have influenced the results so far. The macro factors included plunging crude oil prices, decelerating economic activities in Japan and China, and political unrest in the Eurozone, among others.
Market sentiments were weak following the release of lower-than-expected results from major finance companies. This was aggravated by falling oil prices, which hurt the results of oil/energy stocks. However, the huge profits reported by the tech giant, Apple Inc. (AAPL) grabbed everyone's attention.
As of Feb 4, nearly 55% of all the S&P 500 companies have released their results for the Oct-Dec quarter. Earnings have grown nearly 6.7% year over year, while revenues have inched up 0.2%.
Currently, earnings of S&P 500 companies are expected to grow by 6% in the fourth quarter versus 6.9% recorded in the preceding quarter. Revenue is predicted to edge up by 0.4%. However, with the prevailing nervousness in the market and many oil/energy as well as industrial products stocks yet to report earnings, results can vary from the projected figures.
Performance So Far and Outlook
For Industrial Products sector, the picture is not very bright. Industrial activities, measured in terms of industrial production in the U.S., were flat in October, while declining 0.1% in December. A 1.3% monthly gain in November came as the only breather.
Let us take a look at the performance of Industrial Products sector so far in fourth-quarter 2014. Almost 68% of the total Industrial Products companies in the S&P 500 group reported their results as of Feb 4. Earnings managed 4.9% year-over-year growth with a beat ratio of 76.5%, while revenues slipped 0.6%.
Taking into account the results till now, earnings for the Industrial Products sector are anticipated to decline by 2.4% in the quarter, while revenues are predicted to decrease by 3.6%.
Amid such a gloomy environment, choosing the right stocks with a potential to beat earnings estimates can be a daunting task. However, we are providing below simple guidelines to pick such stocks.
How to Pick?
The Industrial Products sector includes machinery, pollution control, industrial products-services, construction building services, and containers and glass industries. In this diversified sector, selecting stocks with a favorable Zacks Rank of #1 (Strong Buy), #2 (Buy) or #3 (Hold) - and a positive Zacks Earnings ESP can help.
Earnings ESP is our proprietary methodology to determine which stocks have the best chance to surprise in their next earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination, the chances of positive earnings surprise are as high as 70%.
Here are three Industrial Products stocks currently equipped with the right combination of elements to post an earnings beat:
Noranda Aluminum Holding Corporation ( NOR ): The company is one of the leading producers of primary aluminum and aluminum coils in North America. Its upstream business concentrates on bauxite mine, and also operates an alumina refinery and an aluminum smelter; while its downstream business produces high-quality aluminium foils and light gauge sheets. With a $224 million market capitalization, the company serves a well-diversified customer base in various end markets.
Noranda Aluminum Holding currently sports a Zacks Rank #1. Earnings ESP for fourth-quarter 2014 is +30%, with the Zacks Consensus Estimate pegged at 10 cents per share and the Most Accurate Estimate at 13 cents per share.
The stock is currently valued at a forward P/E multiple of 8.23 versus 13.59 for the industry. Earnings are estimated to grow 10% in the next five years.
Noranda Aluminum Holding is slated to release fourth-quarter 2014 results on Feb 18.
Century Aluminum Company ( CENX ): The company is a hard-core producer of primary aluminum for sale in the U.S. and Iceland. Also, it produces and supplies standard grade and value-added primary aluminum products, including anodes and cathodes. Investments in upstream businesses, like bauxite mining and aluminium refinery, have boosted the company's growth opportunities. The company currently has a $2.3 billion market capitalization.
Century Aluminum Company carries a Zacks Rank #2. Earnings ESP for fourth-quarter 2014 is +7.69%, with the Zacks Consensus Estimate pegged at 65 cents per share and the Most Accurate Estimate at 70 cents.
The stock is currently valued at a forward P/E multiple of 8.78 versus 13.59 for the industry. The company offers return of 2.6% on equity and 2.1% on investments. Earnings are expected to grow 7% over the next 5 years.
Century Aluminum Company is estimated to release fourth-quarter 2014 financial results on Feb 19.
Deere & Company ( DE ): The company has a $30.5 billion business, operating in the farm machinery industry. It is engaged in the worldwide production and distribution of agricultural and forestry equipment, construction equipment and engines. Long-term growth prospects of the company are influenced by global demand for food, shelter and infrastructure. In the next 5 years, earnings are predicted to grow 8.6%.
Deere & Company presently carries a Zacks Rank #3. Earnings ESP for first-quarter fiscal 2015 (ended Jan 2015) is +12.05%, with the Zacks Consensus Estimate pegged at 83 cents per share and the Most Accurate Estimate at 93 cents per share.
The company's return profile is quite impressive, with return on equity being 31% and on investments 9.4%, higher than the industry returns of 20.8% and 2.4% respectively. It is currently valued at a forward P/E multiple of 16.08.
Deere & Company is scheduled to release first-quarter fiscal 2015 results on Feb 20 before the market opens.
Going Forward
Given the current scenario, fiscal government expenditures will play a counter-cyclical role by curbing the ill effects of slower economic development. Huge investments in infrastructure projects will boost industrial products demand as well as create new jobs. Such measures, along with emphasis on growing trade relations and implementation of better policies, will prove to be a boon for the industrial products sector.
Until we ride through the difficult economic environment, choosing some possible winners on the basis of a solid Zacks Rank and a positive Zacks Earnings ESP this earnings season might work wonders for some interested investors.
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NORANDA ALUMINM (NOR): Free Stock Analysis Report
CENTURY ALUM CO (CENX): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The macro factors included plunging crude oil prices, decelerating economic activities in Japan and China, and political unrest in the Eurozone, among others. Taking into account the results till now, earnings for the Industrial Products sector are anticipated to decline by 2.4% in the quarter, while revenues are predicted to decrease by 3.6%. Going Forward Given the current scenario, fiscal government expenditures will play a counter-cyclical role by curbing the ill effects of slower economic development.
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Click to get this free report NORANDA ALUMINM (NOR): Free Stock Analysis Report CENTURY ALUM CO (CENX): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. The macro factors included plunging crude oil prices, decelerating economic activities in Japan and China, and political unrest in the Eurozone, among others. As of Feb 4, nearly 55% of all the S&P 500 companies have released their results for the Oct-Dec quarter.
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Click to get this free report NORANDA ALUMINM (NOR): Free Stock Analysis Report CENTURY ALUM CO (CENX): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. The macro factors included plunging crude oil prices, decelerating economic activities in Japan and China, and political unrest in the Eurozone, among others. As of Feb 4, nearly 55% of all the S&P 500 companies have released their results for the Oct-Dec quarter.
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The macro factors included plunging crude oil prices, decelerating economic activities in Japan and China, and political unrest in the Eurozone, among others. As of Feb 4, nearly 55% of all the S&P 500 companies have released their results for the Oct-Dec quarter. Currently, earnings of S&P 500 companies are expected to grow by 6% in the fourth quarter versus 6.9% recorded in the preceding quarter.
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2015-02-03 00:00:00 UTC
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Will Ball Corporation (BLL) Earnings Surprise in Q4? - Analyst Blog
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https://www.nasdaq.com/articles/will-ball-corporation-bll-earnings-surprise-in-q4-analyst-blog-2015-02-03
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Ball Corporation ( BLL ) is scheduled to report fourth-quarter 2014 results before the opening bell on Feb 5. Last quarter, the company posted a positive earnings surprise of 4.76%. Let's see how things are molding for the fourth quarter.
Factors Affecting This Quarter
Ball Corporation will continue to benefit from expansion in developing regions like Brazil, where demand in the can market is expected to remain strong. The company's joint venture metal beverage can plant in Alagoinhas completed installation of a second can line that will manufacture multiple can sizes, enabling it to capitalize on higher demand. Even though Ball Corporation witnessed weaker-than-expected beverage can demand in the third quarter following the soccer World Cup, it expects volumes to bounce back in the fourth quarter on entering the summer selling season.
Ball Corporation's Aerospace business continues to perform well. Backlog at the end of the third quarter was $846 million. During the third quarter, the company successfully participated in the launch of the WorldView-3 satellite from the Vandenberg Air Force Base. The WorldView-3 satellite is the first multi-payload, super-spectral, high-resolution commercial satellite for earth observations and advanced geospatial data. Management expects the segment to benefit from potential government and privately sponsored contracts as well.
In the fourth quarter, Ball Aerospace & Technologies announced that it is providing the phased array antennas and flight test cameras to prime contractor Lockheed Martin Corporation ( LMT ) for Orion's Exploration Flight Test-1 (EFT-1), an unmanned test flight.
However, the LME (London Metal Exchange) aluminum premium in Europe has remained historically high. Ball Corporation does not have pass-through arrangements in the region, which will likely affect results. In the Asia segment, pricing continues to be an issue because of pricing pressure in China due to excess capacity and intense competition from domestic can producers.
Earnings Whispers?
Our proven model does not conclusively show that Ball Corporation will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Ball Corporation's Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate both are at 85 cents per share.
Zacks Rank: Ball Corporation's Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks in the industrial goods sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:
ABB Ltd. ( ABB ) has an earnings ESP of +14.29% and a Zacks Rank #3.
Deere & Co. ( DE ) has an earnings ESP of +12.05% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
BALL CORP (BLL): Free Stock Analysis Report
ABB LTD-ADR (ABB): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factors Affecting This Quarter Ball Corporation will continue to benefit from expansion in developing regions like Brazil, where demand in the can market is expected to remain strong. The company's joint venture metal beverage can plant in Alagoinhas completed installation of a second can line that will manufacture multiple can sizes, enabling it to capitalize on higher demand. Even though Ball Corporation witnessed weaker-than-expected beverage can demand in the third quarter following the soccer World Cup, it expects volumes to bounce back in the fourth quarter on entering the summer selling season.
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Click to get this free report DEERE & CO (DE): Free Stock Analysis Report BALL CORP (BLL): Free Stock Analysis Report ABB LTD-ADR (ABB): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. Factors Affecting This Quarter Ball Corporation will continue to benefit from expansion in developing regions like Brazil, where demand in the can market is expected to remain strong. The company's joint venture metal beverage can plant in Alagoinhas completed installation of a second can line that will manufacture multiple can sizes, enabling it to capitalize on higher demand.
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Stocks to Consider Here are some stocks in the industrial goods sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season: ABB Ltd. ( ABB ) has an earnings ESP of +14.29% and a Zacks Rank #3. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report BALL CORP (BLL): Free Stock Analysis Report ABB LTD-ADR (ABB): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. Factors Affecting This Quarter Ball Corporation will continue to benefit from expansion in developing regions like Brazil, where demand in the can market is expected to remain strong.
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Factors Affecting This Quarter Ball Corporation will continue to benefit from expansion in developing regions like Brazil, where demand in the can market is expected to remain strong. Stocks to Consider Here are some stocks in the industrial goods sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season: ABB Ltd. ( ABB ) has an earnings ESP of +14.29% and a Zacks Rank #3. The company's joint venture metal beverage can plant in Alagoinhas completed installation of a second can line that will manufacture multiple can sizes, enabling it to capitalize on higher demand.
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2015-02-03 00:00:00 UTC
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Will Proto Labs (PRLB) Surprise Earnings Estimates in Q4? - Analyst Blog
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https://www.nasdaq.com/articles/will-proto-labs-prlb-surprise-earnings-estimates-in-q4-analyst-blog-2015-02-03
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Proto Labs, Inc. ( PRLB ) is scheduled to report fourth-quarter 2014 results on Feb 5, before the market opens. The Zacks Consensus Estimate for the quarter is pegged at 37 cents per share.
The company's earnings track record has been impressive, with positive earnings surprises in three out of trailing four quarters. In the last reported quarter, however, the company failed to meet expectations, as earnings of 40 cents per share came in 6.98% below the Zacks Consensus Estimate of 43 cents. Let us see how things are shaping up for Proto Labs this quarter.
Factors to Influence Q4 Results
Proto Labs' overall profitability depends on the demand of custom parts for prototyping and short-run production as well as how successfully the company develops the product. Of this, the demand for prototypes is largely influenced by economic activities in the countries served. The fourth quarter of 2014 was a difficult quarter, as uncertainties loomed globally and impacted industrial activities severely in many countries.
In addition, Proto Labs' huge international exposure creates severe headwinds related to foreign currency movements. Also, the company faces stiff competition from other prototype makers, both domestic and international.
However, Proto Labs' efficient management and marketing team, along with its ability to develop custom-made products, are expected to act as breathers. Moreover, benefits from the acquired assets of Fineline will enhance the company's revenue-generation capabilities.
Earnings Whispers?
Our proven model does not conclusively show that Proto Labs is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: ESP of Proto Labs is currently 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 37 cents per share.
Zacks Rank: Proto Labs currently carries a Zacks Rank #3 (Hold). This rank, when combined with a 0.00% ESP, makes surprise predictions difficult.
We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Stocks to Consider
Here are some companies in the sector that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Century Aluminum Co. ( CENX ), with an Earnings ESP of +7.69% and a Zacks Rank #2 (Buy).
Deere & Company ( DE ), with an Earnings ESP of +12.05% and a Zacks Rank #3.
ABB Ltd. ( ABB ), with an Earnings ESP of +14.29% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
ABB LTD-ADR (ABB): Free Stock Analysis Report
CENTURY ALUM CO (CENX): Free Stock Analysis Report
PROTO LABS INC (PRLB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, Proto Labs' efficient management and marketing team, along with its ability to develop custom-made products, are expected to act as breathers. Factors to Influence Q4 Results Proto Labs' overall profitability depends on the demand of custom parts for prototyping and short-run production as well as how successfully the company develops the product. Of this, the demand for prototypes is largely influenced by economic activities in the countries served.
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Stocks to Consider Here are some companies in the sector that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter: Century Aluminum Co. ( CENX ), with an Earnings ESP of +7.69% and a Zacks Rank #2 (Buy). Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ABB LTD-ADR (ABB): Free Stock Analysis Report CENTURY ALUM CO (CENX): Free Stock Analysis Report PROTO LABS INC (PRLB): Free Stock Analysis Report To read this article on Zacks.com click here. Factors to Influence Q4 Results Proto Labs' overall profitability depends on the demand of custom parts for prototyping and short-run production as well as how successfully the company develops the product.
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Stocks to Consider Here are some companies in the sector that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter: Century Aluminum Co. ( CENX ), with an Earnings ESP of +7.69% and a Zacks Rank #2 (Buy). Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ABB LTD-ADR (ABB): Free Stock Analysis Report CENTURY ALUM CO (CENX): Free Stock Analysis Report PROTO LABS INC (PRLB): Free Stock Analysis Report To read this article on Zacks.com click here. Factors to Influence Q4 Results Proto Labs' overall profitability depends on the demand of custom parts for prototyping and short-run production as well as how successfully the company develops the product.
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Factors to Influence Q4 Results Proto Labs' overall profitability depends on the demand of custom parts for prototyping and short-run production as well as how successfully the company develops the product. Of this, the demand for prototypes is largely influenced by economic activities in the countries served. However, Proto Labs' efficient management and marketing team, along with its ability to develop custom-made products, are expected to act as breathers.
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0997a0d6-e426-45da-a5ae-b1b30c6b5a3c
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722848.0
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2015-02-02 00:00:00 UTC
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Will Eaton Corp (ETN) Earnings Surprise This Season? - Analyst Blog
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DE
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https://www.nasdaq.com/articles/will-eaton-corp-etn-earnings-surprise-this-season-analyst-blog-2015-02-02
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nan
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nan
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Eaton Corporation plc ( ETN ) is scheduled to report fourth-quarter 2014 results before the opening bell on Feb 3. Last quarter, Eaton posted a positive earnings surprise of 4.88%. Let's see how things are molding for the fourth quarter.
Factors Affecting This Quarter
Dublin, Ireland-based Eaton Corporation has consistently invested in R&D programs to produce new products and enhance quality of existing ones. The company is introducing a new line of products, which promotes fuel efficiency and offers efficient power management solutions. The company launched a few products in the fourth quarter to simplify light commercial construction and enhance safety control solutions.
Fourth-quarter results are also expected to be boosted by synergies from the Cooper integration which is being materialized part by part and is expected to continue for some more quarters.
The company expects a solid performance from its Electrical Product segment on strong demand for industrial products. On the other hand, the Hydraulics segment may continue to face challenges owing to weakness in construction equipment demand from China.
Eaton derives a large part of its revenues from international sales.The fourth quarter is also comparatively softer than the third in terms of business activity. In addition, Eaton's dependence on suppliers for various raw materials and components can negatively impact its operational results, as prices of logistics are expected to continue to rise.
Earnings Whispers?
Our proven model does not conclusively show that Eaton Corporation will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat consensus estimates. That is not the case here as you will see below.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is at 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are at $1.20 per share.
Zacks Rank: Eaton Corporation's Zacks Rank #3 when combined with a 0.00% ESP makes an earnings beat difficult to predict.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks in the industrial goods sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:
ABB Ltd. ( ABB ) has an earnings ESP of +14.29% and a Zacks Rank #3.
Deere & Co. ( DE ) has an earnings ESP of +12.05% and a Zacks Rank #3.
TriMas Corp. ( TRS ) has an earnings ESP of +2.70% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
EATON CORP PLC (ETN): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
ABB LTD-ADR (ABB): Free Stock Analysis Report
TRIMAS CORP (TRS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eaton derives a large part of its revenues from international sales.The fourth quarter is also comparatively softer than the third in terms of business activity. In addition, Eaton's dependence on suppliers for various raw materials and components can negatively impact its operational results, as prices of logistics are expected to continue to rise. The company expects a solid performance from its Electrical Product segment on strong demand for industrial products.
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Click to get this free report EATON CORP PLC (ETN): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report ABB LTD-ADR (ABB): Free Stock Analysis Report TRIMAS CORP (TRS): Free Stock Analysis Report To read this article on Zacks.com click here. The company expects a solid performance from its Electrical Product segment on strong demand for industrial products. On the other hand, the Hydraulics segment may continue to face challenges owing to weakness in construction equipment demand from China.
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Stocks to Consider Here are some stocks in the industrial goods sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season: ABB Ltd. ( ABB ) has an earnings ESP of +14.29% and a Zacks Rank #3. Click to get this free report EATON CORP PLC (ETN): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report ABB LTD-ADR (ABB): Free Stock Analysis Report TRIMAS CORP (TRS): Free Stock Analysis Report To read this article on Zacks.com click here. The company expects a solid performance from its Electrical Product segment on strong demand for industrial products.
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Stocks to Consider Here are some stocks in the industrial goods sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season: ABB Ltd. ( ABB ) has an earnings ESP of +14.29% and a Zacks Rank #3. The company expects a solid performance from its Electrical Product segment on strong demand for industrial products. On the other hand, the Hydraulics segment may continue to face challenges owing to weakness in construction equipment demand from China.
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8763a563-a91f-4bc6-bd2a-beac4219f4ab
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722849.0
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2015-01-27 00:00:00 UTC
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Deere (DE) Shares Cross Below 200 DMA
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DE
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https://www.nasdaq.com/articles/deere-de-shares-cross-below-200-dma-2015-01-27
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nan
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nan
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.71, changing hands as low as $85.35 per share. Deere & Co. shares are currently trading off about 3% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $85.90.
According to the ETF Finder at ETF Channel, DE makes up 7.37% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.3% on the day Tuesday.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.71, changing hands as low as $85.35 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $85.90. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.71, changing hands as low as $85.35 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $85.90. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.71, changing hands as low as $85.35 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $85.90. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.71, changing hands as low as $85.35 per share. According to the ETF Finder at ETF Channel, DE makes up 7.37% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.3% on the day Tuesday. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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31721bb9-ca29-4478-bdf4-660f128869cf
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722850.0
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2015-01-24 00:00:00 UTC
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Is Deere & Company's (DE) Guidance Too Conservative?
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DE
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https://www.nasdaq.com/articles/deere-companys-de-guidance-too-conservative-2015-01-24
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nan
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nan
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Investors in farming machinery giant Deere & Company will be interested in the latest crop production and price forecasts from the United States Department of Agriculture. Let's dig into the numbers from the USDA crop production report and, in doing so, compare its forecasts with Deere & Company's expectations. Might Deere's guidance for 2015 have been conservative?
US Corn Farm Price Received data by YCharts .
However, Deere's forecasts may prove to be conservative. For example, AGCO Corporation forecasts a sales decline of only 12%-14% in 2015. Moreover, the recent USDA reports suggest that Deere's forecasts might prove to be a little too pessimistic -- suggesting some upside for Deere in 2015. After all, Deere's management is surely basing its sales forecasts on its assumptions for crop pricing and farmers' income in 2015.
Acres harvested, yield per acre, and price
First, let's compare Deere's forecast for acres harvested versus the most recent USDA forecast. Simply put, a large amount of harvested acreage usually means a large supply -- bearish for crop prices and bad for Deere.
Sources: Deere & Company presentations , National Agricultural Statistics Service, USDA . All figures are in millions of acres harvested for 2014/2015.
In general, the USDA's forecasts look a little more bullish (the numbers are lower, suggesting lower supply) than Deere's estimates. Of course, harvested acreage is only part of the story. Crop yields have been very strong (helping create high supply) in recent years, partly because of exceptional weather. However, Deere's management believes that just "normal" weather in 2015/2016 could see crop prices rise, as crop yields might not be as strong as in recent years.
Here is Deere's 2014/2015 crop yield forecasts versus the current USDA estimates. A lower number implies lower supply, so crop prices might be expected to rise -- usually good news for Deere if accompanied by a rise in farmers' income.
Source: Deere & Co presentations, National Agriculture Statistics Service, USDA. Bushels per acre, except cotton, which is pounds per acre.
Deere's forecasts for corn and wheat yields are a bit higher than the current USDA estimates -- indicating that Deere expects more corn and wheat supply than the USDA does. So, what does it all mean for the (all-important) price forecasts?
Price forecasting is a complex mix of factors such as acreage harvested, yield, demand, stocks in storage, end demand, etc. -- much of which is contingent on the weather. Indeed, predicting crop prices has never been easy, and it's definitely not an exact science. With that said, the latest USDA crop price forecasts suggest an improving outlook for crop prices. The USDA increased its U.S. price forecast for each crop, with the exception of cotton (flat).
Source: Deere & Co Presentations, National Agriculture Statistics Service, USDA. Dollars per bushel, except cotton, which is dollars per pound
Moreover, readers should note that Deere's corn price forecast is at the low end of the USDA range. Meanwhile, Deere's wheat and soybeans price forecasts are below the bottom end of the USDA ranges, with only Deere's cotton price forecast exceeding the USDA figure.
What does it mean for Deere investors?
All told, the latest USDA data looks positive across the board for Deere investors. First, the USDA increased its U.S. price predictions for corn, wheat, and soybeans -- good news for farmers and Deere. Second, Deere's U.S. crop pricing assumptions look light compared to the USDA's. Since Deere's management is almost certainly using its price assumptions to produce its agricultural machinery forecast, investors have cause to think that Deere's sales assumptions for 2015 could be a little too conservative.
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The article Is Deere & Company's ( DE ) Guidance Too Conservative? originally appeared on Fool.com.
Lee Samaha has no position in any stocks mentioned, but having recently inherited an orchard, he is learning an awful lot about farming. As such, any bright spark emailing/commenting with a good idea on what he can do with 10 tons of apples might just win themselves a bottle of apple brandy/rakija/palinka. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in farming machinery giant Deere & Company will be interested in the latest crop production and price forecasts from the United States Department of Agriculture. Let's dig into the numbers from the USDA crop production report and, in doing so, compare its forecasts with Deere & Company's expectations. Might Deere's guidance for 2015 have been conservative?
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Acres harvested, yield per acre, and price First, let's compare Deere's forecast for acres harvested versus the most recent USDA forecast. Sources: Deere & Company presentations , National Agricultural Statistics Service, USDA . First, the USDA increased its U.S. price predictions for corn, wheat, and soybeans -- good news for farmers and Deere.
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Acres harvested, yield per acre, and price First, let's compare Deere's forecast for acres harvested versus the most recent USDA forecast. Deere's forecasts for corn and wheat yields are a bit higher than the current USDA estimates -- indicating that Deere expects more corn and wheat supply than the USDA does. Meanwhile, Deere's wheat and soybeans price forecasts are below the bottom end of the USDA ranges, with only Deere's cotton price forecast exceeding the USDA figure.
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Since Deere's management is almost certainly using its price assumptions to produce its agricultural machinery forecast, investors have cause to think that Deere's sales assumptions for 2015 could be a little too conservative. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Investors in farming machinery giant Deere & Company will be interested in the latest crop production and price forecasts from the United States Department of Agriculture.
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af5a8922-62d4-4fdc-82f9-0b915b6a1551
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722851.0
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2015-01-23 00:00:00 UTC
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Will Illinois Tool Works (ITW) Surprise Earnings in Q4? - Analyst Blog
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DE
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https://www.nasdaq.com/articles/will-illinois-tool-works-itw-surprise-earnings-in-q4-analyst-blog-2015-01-23
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nan
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nan
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Industrial products and equipments manufacturer, Illinois Tool Works Inc. ( ITW ), is scheduled to report fourth-quarter 2014 results on Jan 27, 2015, before the market opens. The Zacks Consensus Estimate for the quarter is pegged at $1.13.
The company reported better-than-expected results in the preceding quarter, with earnings of $1.28 per share surpassing the Zacks Consensus Estimate of $1.23 by 4.07%. Let us see how things are shaping up prior to this announcement.
Factors LIkely to Influence Q4 Results
In fourth-quarter 2014, the global economy suffered the adverse impact of plunging crude oil prices as well as decelerating economic activities in Japan and China. Eurozone faced political uncertainties. Also, industrial activities in the U.S. were flat in October, while declining 0.1% in December. A 1.3% monthly gain in November came as the only breather.
Profitability in some businesses of Illinois Tool Works is directly or indirectly dependent on the construction, general industrial, automotive or food institutional/restaurant and service end-markets. In turn, demand from these end markets are influenced by the domestic and international economic conditions.
Additionally, Illinois Tool Works faces certain near-term risks from foreign currency translation and competitive pressure, which might prove to be headwinds for its growth.
However, Illinois Tool Works' preference toward bolt-on acquisitions, for development of core segments as well as creation of new platforms for expanding long-term growth opportunities, will work in its favor.
Earnings Whispers?
Our proven model does not conclusively show that Illinois Tool Works will surprise earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for a likely earnings beat. That is not the case here as you will see below.
Zacks ESP: Illinois Tool Works has an earnings ESP of 0.00% for fourth-quarter 2014. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.13.
Zacks Rank: Illinois Tool Works currently carries a Zacks Rank #3 (Hold). This rank, when combined with a 0.00% ESP, makes earnings surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some machinery companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Zebra Technologies Corp. ( ZBRA ), with an Earnings ESP of +65.63% and a Zacks Rank #3.
Deere & Company ( DE ), with an Earnings ESP of +12.05% and a Zacks Rank #3.
ABB Ltd. ( ABB ), with an Earnings ESP of +14.29% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
ABB LTD-ADR (ABB): Free Stock Analysis Report
ILL TOOL WORKS (ITW): Free Stock Analysis Report
ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factors LIkely to Influence Q4 Results In fourth-quarter 2014, the global economy suffered the adverse impact of plunging crude oil prices as well as decelerating economic activities in Japan and China. Profitability in some businesses of Illinois Tool Works is directly or indirectly dependent on the construction, general industrial, automotive or food institutional/restaurant and service end-markets. Also, industrial activities in the U.S. were flat in October, while declining 0.1% in December.
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Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ABB LTD-ADR (ABB): Free Stock Analysis Report ILL TOOL WORKS (ITW): Free Stock Analysis Report ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here. Factors LIkely to Influence Q4 Results In fourth-quarter 2014, the global economy suffered the adverse impact of plunging crude oil prices as well as decelerating economic activities in Japan and China. Also, industrial activities in the U.S. were flat in October, while declining 0.1% in December.
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Stocks to Consider Here are some machinery companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter: Zebra Technologies Corp. ( ZBRA ), with an Earnings ESP of +65.63% and a Zacks Rank #3. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ABB LTD-ADR (ABB): Free Stock Analysis Report ILL TOOL WORKS (ITW): Free Stock Analysis Report ZEBRA TECH CL A (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here. Factors LIkely to Influence Q4 Results In fourth-quarter 2014, the global economy suffered the adverse impact of plunging crude oil prices as well as decelerating economic activities in Japan and China.
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Factors LIkely to Influence Q4 Results In fourth-quarter 2014, the global economy suffered the adverse impact of plunging crude oil prices as well as decelerating economic activities in Japan and China. Also, industrial activities in the U.S. were flat in October, while declining 0.1% in December. Profitability in some businesses of Illinois Tool Works is directly or indirectly dependent on the construction, general industrial, automotive or food institutional/restaurant and service end-markets.
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49059466-70a3-4eaf-ae06-7710812c706e
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722852.0
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2015-01-02 00:00:00 UTC
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Notable Two Hundred Day Moving Average Cross - DE
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DE
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https://www.nasdaq.com/articles/notable-two-hundred-day-moving-average-cross-de-2015-01-02
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nan
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nan
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.95, changing hands as low as $87.85 per share. Deere & Co. shares are currently trading down about 0.7% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $87.73.
According to the ETF Finder at ETF Channel, DE makes up 7.69% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.2% on the day Friday.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.95, changing hands as low as $87.85 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $87.73. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.95, changing hands as low as $87.85 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $87.73. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.95, changing hands as low as $87.85 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $87.73. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $87.95, changing hands as low as $87.85 per share. According to the ETF Finder at ETF Channel, DE makes up 7.69% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.2% on the day Friday. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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df0fce23-2d62-4b14-ab02-bdb384c168cc
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722853.0
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2014-12-26 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for December 29, 2014
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DE
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-december-29-2014-2014-12-26
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nan
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nan
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Deere & Company ( DE ) will begin trading ex-dividend on December 29, 2014. A cash dividend payment of $0.6 per share is scheduled to be paid on February 02, 2015. Shareholders who purchased DE stock prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that DE has paid the same dividend. At the current stock price of $90.26, the dividend yield is 2.66%.
The previous trading day's last sale of DE was $90.26, representing a -4.88% decrease from the 52 week high of $94.89 and a 14.43% increase over the 52 week low of $78.88.
DE is a part of the Capital Goods sector, which includes companies such as Danaher Corporation ( DHR ) and Thermo Fisher Scientific Inc ( TMO ). DE's current earnings per share, an indicator of a company's profitability, is $8.62. Zacks Investment Research reports DE's forecasted earnings growth in 2015 as -36.29%, compared to an industry average of 5.2%.
For more information on the declaration, record and payment dates, visit the DE Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DE through an Exchange Traded Fund [ETF]?
The following ETF(s) have DE as a top-10 holding:
iShares MSCI Agriculture Producers Fund ( VEGI )
Market Vectors Agribusiness ETF ( MOO )
Market Vectors Natural Resources ETF ( HAP )
PowerShares DWA Industrials Momentum Portfolio ( PRN ).
The top-performing ETF of this group is PRN with an increase of 6.19% over the last 100 days. VEGI has the highest percent weighting of DE at 7.9%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased DE stock prior to the ex-dividend date are eligible for the cash dividend payment. DE is a part of the Capital Goods sector, which includes companies such as Danaher Corporation ( DHR ) and Thermo Fisher Scientific Inc ( TMO ). Zacks Investment Research reports DE's forecasted earnings growth in 2015 as -36.29%, compared to an industry average of 5.2%.
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The following ETF(s) have DE as a top-10 holding: iShares MSCI Agriculture Producers Fund ( VEGI ) Market Vectors Agribusiness ETF ( MOO ) Market Vectors Natural Resources ETF ( HAP ) PowerShares DWA Industrials Momentum Portfolio ( PRN ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere & Company ( DE ) will begin trading ex-dividend on December 29, 2014.
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Shareholders who purchased DE stock prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the DE Dividend History page. The following ETF(s) have DE as a top-10 holding: iShares MSCI Agriculture Producers Fund ( VEGI ) Market Vectors Agribusiness ETF ( MOO ) Market Vectors Natural Resources ETF ( HAP ) PowerShares DWA Industrials Momentum Portfolio ( PRN ).
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A cash dividend payment of $0.6 per share is scheduled to be paid on February 02, 2015. Shareholders who purchased DE stock prior to the ex-dividend date are eligible for the cash dividend payment. DE's current earnings per share, an indicator of a company's profitability, is $8.62.
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ab6ae93e-5b7e-4bfd-872d-3005e5a25b45
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722854.0
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2014-12-22 00:00:00 UTC
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Deere Sells Crop Insurance Unit to Focus on Core Businesses - Analyst Blog
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DE
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https://www.nasdaq.com/articles/deere-sells-crop-insurance-unit-to-focus-on-core-businesses-analyst-blog-2014-12-22
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nan
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nan
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In order to focus on its core businesses, Deere & Company ( DE ) announced that it has entered into an agreement to sell its crop insurance unit to West Des Moines, Iowa-based Farmers Mutual Hail Insurance Company. This does not come as a surprise as the company had earlier, in September, had announced that it was reviewing strategic options for the unit. Share of Deere thus edged up 0.6% on the news.
The crop insurance business unit of John Deere Financial comprises John Deere Insurance Company and John Deere Risk Protection, Inc. Deere has been involved in the crop insurance business for nine years. The business underwrites policies through John Deere Insurance Company, a business unit within John Deere Financial. However, price declines and falling demand have made the business less profitable in recent years.
The transaction is expected to close in the first quarter of thecalendar 2015 calendar year. Deere will continue to design, manufacture and offer technology, equipment and services in its precision agriculture offerings. Notably, effective risk management remains an important factor for the company's operations.
Founded in 1893, Farmers Mutual Hail Insurance Company, is a provider of comprehensive risk management solutions for America's heartland, including private and federal crop insurance, reinsurance products and services, as well as farm and ranch insurance that includes auto, property, and liability coverage.
Deere's fourth-quarter earnings per share declined 13% year over year to $2.11. Deere's while worldwide total sales also dipped 5% year over year to $8.97 billion. The manufacturer provided a bearish fiscal 2015 outlook due to falling crop prices and farm income. Deere expects equipment sales to decrease around 21% in the first quarter and 15% year over year in fiscal 2015 because of weak demand for agricultural machineries. The company projects net income of $1.9 billion for fiscal 2015, down from $3.16 billion in 2014 and $3.54 billion in 2013.
Segment-wise, Deere estimated Agriculture and Turf equipment sales for fiscal 2015 to decline 20% for fiscal 2015 as a result ofowing to weaker conditions in the global farming economy. On the contrary, global sales for Construction & Forestry equipment is expected to advance about 5% for 2015.
Long-term outlook for Deere remains strong on the back of increased global demand for food, shelter and infrastructure. While, in the near term, even though net farm income remains at high levels, farmer sentiments regarding capital goods purchases are becoming more conservative due to lower commodity prices.
Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada through branch offices as well as through distributors and operates through dealers to resell products internationally.
Deere currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Alamo Group, Inc. ( ALG ), Lindsay Corporation ( LNN ) and Blount International Inc, ( BLT ). All of these stocks sport a Zacks Rank #1 (Strong Buy).
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DEERE & CO (DE): Free Stock Analysis Report
LINDSAY CORP (LNN): Free Stock Analysis Report
ALAMO GROUP INC (ALG): Free Stock Analysis Report
BLOUNT INTL (BLT): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Long-term outlook for Deere remains strong on the back of increased global demand for food, shelter and infrastructure. Some better-ranked stocks in the sector include Alamo Group, Inc. ( ALG ), Lindsay Corporation ( LNN ) and Blount International Inc, ( BLT ). In order to focus on its core businesses, Deere & Company ( DE ) announced that it has entered into an agreement to sell its crop insurance unit to West Des Moines, Iowa-based Farmers Mutual Hail Insurance Company.
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The crop insurance business unit of John Deere Financial comprises John Deere Insurance Company and John Deere Risk Protection, Inc. Deere has been involved in the crop insurance business for nine years. The manufacturer provided a bearish fiscal 2015 outlook due to falling crop prices and farm income. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report LINDSAY CORP (LNN): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report BLOUNT INTL (BLT): Free Stock Analysis Report To read this article on Zacks.com click here.
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The crop insurance business unit of John Deere Financial comprises John Deere Insurance Company and John Deere Risk Protection, Inc. Deere has been involved in the crop insurance business for nine years. The business underwrites policies through John Deere Insurance Company, a business unit within John Deere Financial. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report LINDSAY CORP (LNN): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report BLOUNT INTL (BLT): Free Stock Analysis Report To read this article on Zacks.com click here.
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In order to focus on its core businesses, Deere & Company ( DE ) announced that it has entered into an agreement to sell its crop insurance unit to West Des Moines, Iowa-based Farmers Mutual Hail Insurance Company. Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. Share of Deere thus edged up 0.6% on the news.
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b8ff5649-96c2-4161-80bf-f0b7fc5d0372
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722855.0
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2014-12-17 00:00:00 UTC
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Is Caterpillar’s Mining Equipment Business Turnaround In Sight?
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DE
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https://www.nasdaq.com/articles/caterpillars-mining-equipment-business-turnaround-sight-2014-12-17
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nan
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nan
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Caterpillar ( CAT ) has been suffering from weak mining equipment sales, as mining companies have reduced capital spending in terms of purchasing new equipment or spare parts as a result of huge asset write-offs and declining commodity prices. Caterpillar's Resource Industries revenue declined 37.3% year-on-year in 2013 and 27% in the first nine months ended September 30, 2014. However, Caterpillar seems to be optimistic regarding the near future. At a recent conference, the company stated that it was working towards building up 'strategic inventory' of its mining equipment. Does this mean that it's Resource Industries business will turn around soon?
See our complete analysis of CAT here
What is Strategic Inventory?
Caterpillar is building an inventory of components and machines that are more likely to see high demand once the mining equipment market turns around. Given that in the past, demand for equipment and machinery from the mining industry has been quite volatile, building up an inventory of components and machines that generally have higher lead times will help Caterpillar cater to the rejuvenated demand at the earliest. The reason why Caterpillar decided to build up 'strategic inventory' now is because of indications that the mining equipment market will likely turn around soon.
Aftermarket Parts Regaining Strength
In order to keep short term operating costs low, mining companies have been working their newer machines for longer durations. This is because older machines demand higher upkeep costs through frequent part replacements and repairs. But now, mining companies have had to undertake aftermarket machine part purchases in order to prevent their machines from downtime. This has led to a turnaround in the mining equipment aftermarket. Caterpillar believes that "the aftermarket piece has stabilized and probably turned the corner and probably has some room to strengthen."
Resource Industries Retail Sales Decline Has Been Moderating
According to Caterpillar's retail statistics for the 3-month rolling period ended October, global Resource Industries sales have declined throughout the year. However, it is important to note that the sales decline has been moderating.
Since its peak in April at 49%, the decline in retail sales of Caterpillar's Resource Industries products has slowed down to 20% in October. It is possible that mining equipment sales have bottomed out or are likely to bottom out soon, both situations presenting an encouraging future outlook.
However, it is important for Caterpillar to have timed its strategic inventory buildup accurately. If Caterpillar has moved too early, it will likely be sitting on idle inventory while having incurred manufacturing costs, which may impact margins. However, the past few quarters have proved Caterpillar's ability to manage its profitability despite flattish or even declining sales. For example, the company's earnings increased 8% year-on-year in the third quarter, despite sluggish revenues. Also encouraging is Caterpillar's revision of its earnings per share guidance to $6.00 for 2014, up from $5.75.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Caterpillar is building an inventory of components and machines that are more likely to see high demand once the mining equipment market turns around. Aftermarket Parts Regaining Strength In order to keep short term operating costs low, mining companies have been working their newer machines for longer durations. Caterpillar ( CAT ) has been suffering from weak mining equipment sales, as mining companies have reduced capital spending in terms of purchasing new equipment or spare parts as a result of huge asset write-offs and declining commodity prices.
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Caterpillar's Resource Industries revenue declined 37.3% year-on-year in 2013 and 27% in the first nine months ended September 30, 2014. Resource Industries Retail Sales Decline Has Been Moderating According to Caterpillar's retail statistics for the 3-month rolling period ended October, global Resource Industries sales have declined throughout the year. Caterpillar ( CAT ) has been suffering from weak mining equipment sales, as mining companies have reduced capital spending in terms of purchasing new equipment or spare parts as a result of huge asset write-offs and declining commodity prices.
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Caterpillar ( CAT ) has been suffering from weak mining equipment sales, as mining companies have reduced capital spending in terms of purchasing new equipment or spare parts as a result of huge asset write-offs and declining commodity prices. Given that in the past, demand for equipment and machinery from the mining industry has been quite volatile, building up an inventory of components and machines that generally have higher lead times will help Caterpillar cater to the rejuvenated demand at the earliest. Resource Industries Retail Sales Decline Has Been Moderating According to Caterpillar's retail statistics for the 3-month rolling period ended October, global Resource Industries sales have declined throughout the year.
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Caterpillar is building an inventory of components and machines that are more likely to see high demand once the mining equipment market turns around. But now, mining companies have had to undertake aftermarket machine part purchases in order to prevent their machines from downtime. Caterpillar ( CAT ) has been suffering from weak mining equipment sales, as mining companies have reduced capital spending in terms of purchasing new equipment or spare parts as a result of huge asset write-offs and declining commodity prices.
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fb3cef13-855a-4f34-9333-049512fbd7ca
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722856.0
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2014-12-16 00:00:00 UTC
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3 Reasons Deere & Company Stock (DE) Could Fall
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DE
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https://www.nasdaq.com/articles/3-reasons-deere-company-stock-de-could-fall-2014-12-16
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nan
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nan
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Analysts and investors are hoping for a trough in demand for Deere & Company in 2015. If it occurs, the stock will likely move higher. On the other hand, there are no guarantees that a bottom will form, and the downside risk is significant if conditions don't improve. I've already examined the bullish case for the stock ; now it's time to look at the reasons Deere's stock could fall.
Data source: United States Department of Agriculture .
The inference is that any assumptions for trend yield may turn out to be an underestimate.
All told, it's going to be a difficult year for Deere. The company has given conservative-looking guidance, but the downside risk is rising as lower sales start to eat into its margins. Moreover, it's hard to predict what Deere's competitors will do, or what farmer behavior and crop yields will be like in 2015. If you really believe that crop prices will rise in 2016, then buying commodity futures might be a better way to invest.
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The article 3 Reasons Deere & Company Stock ( DE ) Could Fall originally appeared on Fool.com.
Lee Samaha and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the other hand, there are no guarantees that a bottom will form, and the downside risk is significant if conditions don't improve. The company has given conservative-looking guidance, but the downside risk is rising as lower sales start to eat into its margins. Analysts and investors are hoping for a trough in demand for Deere & Company in 2015.
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The article 3 Reasons Deere & Company Stock ( DE ) Could Fall originally appeared on Fool.com. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Analysts and investors are hoping for a trough in demand for Deere & Company in 2015.
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I've already examined the bullish case for the stock ; now it's time to look at the reasons Deere's stock could fall. Analysts and investors are hoping for a trough in demand for Deere & Company in 2015. On the other hand, there are no guarantees that a bottom will form, and the downside risk is significant if conditions don't improve.
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We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Analysts and investors are hoping for a trough in demand for Deere & Company in 2015. On the other hand, there are no guarantees that a bottom will form, and the downside risk is significant if conditions don't improve.
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9bcadb95-d103-4a8d-b235-8e6bab12a9b1
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722857.0
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2014-12-15 00:00:00 UTC
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Puma Biotechnology Reveals Positive Interim PB272 Data - Analyst Blog
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DE
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https://www.nasdaq.com/articles/puma-biotechnology-reveals-positive-interim-pb272-data-analyst-blog-2014-12-15
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nan
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nan
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Puma Biotechnology, Inc. ( PBYI ) announced the presentation of interim safety and efficacy data from an ongoing phase II study on its oncology candidate, PB272 (neratinib), at the CTRC-AACR San Antonio Breast Cancer Symposium.
In this study, PB272 is being evaluated in combination with Pfizer's ( PFE ) Torisel in a heavily pre-treated patient population suffering from HER2-positive metastatic breast cancer.
The study is being conducted in two phases, with phase I data being reported earlier. The phase II portion of the study has two cohorts. In the maximum tolerated dose (MTD) cohort, patients were administered 240 mg of PB272 daily with 8 mg of Torisel weekly. In the dose escalation (DE) cohort, patients received 240 mg of PB272 daily with 8 mg of Torisel weekly during the first cycle of treatment. Patients with no tolerability issues in the DE cohort in the first treatment cycle were escalated to 15 mg dose of Torisel per week for the rest of the study.
Interim efficacy results from the study showed that 30% patients in each of the MTD and DE cohorts achieved a partial response. While the median duration of response for the MTD cohort was 3 months with median progression free survival (PFS) of 4.8 months, the median duration of response for the DE cohort was 7.4 months. The median PFS data for the DE cohort is not yet mature.
Puma Biotech expects to complete the ongoing study and advance the PB272/temsirolimus combination to phase III studies in 2015.
In addition to HER2-positive breast cancer, Puma Biotech is studying PB272 for the treatment of advanced cancer patients who have tumors with HER2-mutations including non-small cell lung cancer and other types of solid tumor.
Puma Biotech carries a Zacks Rank #2 (Buy). Some better-ranked stocks in the health care sector are Biogen Idec Inc ( BIIB ) and Amgen Inc. ( AMGN ). Both carry a Zacks Rank #1 (Strong Buy).
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Patients with no tolerability issues in the DE cohort in the first treatment cycle were escalated to 15 mg dose of Torisel per week for the rest of the study. In the dose escalation (DE) cohort, patients received 240 mg of PB272 daily with 8 mg of Torisel weekly during the first cycle of treatment. Interim efficacy results from the study showed that 30% patients in each of the MTD and DE cohorts achieved a partial response.
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In the dose escalation (DE) cohort, patients received 240 mg of PB272 daily with 8 mg of Torisel weekly during the first cycle of treatment. While the median duration of response for the MTD cohort was 3 months with median progression free survival (PFS) of 4.8 months, the median duration of response for the DE cohort was 7.4 months. Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report PUMA BIOTECHNLG (PBYI): Free Stock Analysis Report To read this article on Zacks.com click here.
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While the median duration of response for the MTD cohort was 3 months with median progression free survival (PFS) of 4.8 months, the median duration of response for the DE cohort was 7.4 months. Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report PUMA BIOTECHNLG (PBYI): Free Stock Analysis Report To read this article on Zacks.com click here. In the dose escalation (DE) cohort, patients received 240 mg of PB272 daily with 8 mg of Torisel weekly during the first cycle of treatment.
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Click to get this free report PFIZER INC (PFE): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report PUMA BIOTECHNLG (PBYI): Free Stock Analysis Report To read this article on Zacks.com click here. In the dose escalation (DE) cohort, patients received 240 mg of PB272 daily with 8 mg of Torisel weekly during the first cycle of treatment. Patients with no tolerability issues in the DE cohort in the first treatment cycle were escalated to 15 mg dose of Torisel per week for the rest of the study.
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e9ed49b5-efee-4515-9e4f-0e9f7424c2b8
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722858.0
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2014-12-12 00:00:00 UTC
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The Internet of Things Is Changing How Your Food Is Grown -- and That's a Good Thing
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DE
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https://www.nasdaq.com/articles/internet-things-changing-how-your-food-grown-and-thats-good-thing-2014-12-12
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nan
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nan
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The company uses a program called FieldScript to analyze each farmer's unique field characteristics, and then provides a specific prescription-planting plan. Farmers download the plan to an iPad app called FieldView to see real-time maps of their planting.
Monsanto says this system results in less seed being planted in low-potential areas and more seed in high-potential areas. Once the crop is harvested, the data are submitted to Monsanto to help create an even better prescription for the next year. This "precision agriculture" market is valued at $1.3 billion in the U.S. right now and is expected to grow at more than 6% annually through 2017, according to IBISWorld.
It's not just crop-growing that benefits from IoT tech. A company called SemiosBIO uses sensors in trees to create a better system of orchard pest control. The company makes boxes with sensors, cameras, and insect pheromones that are hung in orchards and connected by a cellular network.
A company called TempuTech uses its own sensors and General Electric 's IoT software to monitor grain silos, conveyor belts, and grain elevators. The system allows farmers to find issues with equipment before they become major problems, and to receive real-time notifications when something does go wrong. For example, the sensors and software can tell when a part of a grain conveyor belt is heating up, and make changes before a potential fire starts.
GE says IoT sensors can even be used on tree branches to detect how much a branch is sagging, and thus predict yield.
John Deere has its hand in the Internet of Things as well. The company's Field Connect system monitors air and soil temperature, wind speed, humidity, solar radiation, rainfall, and even leaf wetness, and then sends wireless notifications farmers can view on their computers or mobile devices.
The serious benefits of IoT agriculture
Making agriculture processes more efficient isn't just about helping farmers and making companies more money. These technologies can have serious benefits for feeding the world and conserving water as well.
"Agricultural technologies could increase global crop yields as much as 67% and cut food prices nearly in half by 2050," according to the International Food Policy Research Institute. That's important, because food prices are expected to increase in coming decades due to climate change and increased global population. These efficient agricultural technologies could help reduce food scarcity by as much as 36%, according to IFPRI.
Something as straightforward as using connected technology to help farmers irrigate effectively could reduce water used for agriculture, savingfarmers money and helping protect one or the world's most valuable resources.
It appears, then, that Internet of Things technologies are doing much more than just connecting our wrists and cars to the Internet. And this is only the beginning.
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The article The Internet of Things Is Changing How Your Food Is Grown -- and That's a Good Thing originally appeared on Fool.com.
Chris Neiger has no position in any stocks mentioned. The Motley Fool owns shares of General Electric Company. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company's Field Connect system monitors air and soil temperature, wind speed, humidity, solar radiation, rainfall, and even leaf wetness, and then sends wireless notifications farmers can view on their computers or mobile devices. The company uses a program called FieldScript to analyze each farmer's unique field characteristics, and then provides a specific prescription-planting plan. GE says IoT sensors can even be used on tree branches to detect how much a branch is sagging, and thus predict yield.
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The company uses a program called FieldScript to analyze each farmer's unique field characteristics, and then provides a specific prescription-planting plan. GE says IoT sensors can even be used on tree branches to detect how much a branch is sagging, and thus predict yield. John Deere has its hand in the Internet of Things as well.
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The company uses a program called FieldScript to analyze each farmer's unique field characteristics, and then provides a specific prescription-planting plan. GE says IoT sensors can even be used on tree branches to detect how much a branch is sagging, and thus predict yield. John Deere has its hand in the Internet of Things as well.
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We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The company uses a program called FieldScript to analyze each farmer's unique field characteristics, and then provides a specific prescription-planting plan. GE says IoT sensors can even be used on tree branches to detect how much a branch is sagging, and thus predict yield.
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ca372a7c-f6f8-4743-b327-db6104bc8b27
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722859.0
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2014-12-05 00:00:00 UTC
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Deere Buys Auteq to Enhance Presence in Sugarcane Market - Analyst Blog
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DE
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https://www.nasdaq.com/articles/deere-buys-auteq-to-enhance-presence-in-sugarcane-market-analyst-blog-2014-12-05
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nan
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nan
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In line with its strategic focus on the sugarcane industry, Deere & Company ( DE ) has acquired Sao Paulo, Brazil-based Auteq Telematica. Auteq is an onboard software and computer company that also specializes in hardware support.
The Deere-Auteq association goes back to 2009, when they had created a joint venture to provide integrated, innovative technologies and solutions for sugarcane production. The acquisition will provide Deere additional specialization in the sugarcane market. The data produced by onboard computers will help customers enhance the performance and productivity of sugarcane plantations.
Even though Deere has fully acquired Auteq, the latter will continue to operate under the Auteq brand name. In Brazil, John Deere offers the sugarcane market two harvester models recognized as market leaders for high performance, savings, durability and harvesting quality.
Deere's fiscal 2014 earnings per share declined 13.3% year over year to $1.83 impacted by less favorable product mix, lower shipment and production volumes as well as higher production costs. In spite of continued pullback in the global agricultural sector John Deere expects to remain solidly profitable in 2015, reflecting its efforts to establish a more resilient business model.
Deere expects equipment sales to decrease around 15% year over year in fiscal 2015. For the first quarter of 2015, Deere projected a 21% decline compared with the year-ago period. Deere estimates its net income to be $1.9 billion for fiscal 2015.
Given the increased global demand for food, shelter and infrastructure, we believe that the long-term outlook for Deere remains strong. Global trends based on population growth and rising living standards remain intact and are largely unaffected by periodic swings in the farming economy. Meanwhile, Deere's plans for serving a larger global customer base are making progress.
Deere currently holds a Zacks Rank #4 (Sell). Better-ranked stocks in the same industry include Alamo Group, Inc. ( ALG ), Blount International Inc. ( BLT ) and Briggs & Stratton Corporation ( BGG ). All of these carry a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
ALAMO GROUP INC (ALG): Free Stock Analysis Report
BRIGGS & STRATT (BGG): Free Stock Analysis Report
BLOUNT INTL (BLT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In line with its strategic focus on the sugarcane industry, Deere & Company ( DE ) has acquired Sao Paulo, Brazil-based Auteq Telematica. In spite of continued pullback in the global agricultural sector John Deere expects to remain solidly profitable in 2015, reflecting its efforts to establish a more resilient business model. The Deere-Auteq association goes back to 2009, when they had created a joint venture to provide integrated, innovative technologies and solutions for sugarcane production.
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Better-ranked stocks in the same industry include Alamo Group, Inc. ( ALG ), Blount International Inc. ( BLT ) and Briggs & Stratton Corporation ( BGG ). Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report BLOUNT INTL (BLT): Free Stock Analysis Report To read this article on Zacks.com click here. In line with its strategic focus on the sugarcane industry, Deere & Company ( DE ) has acquired Sao Paulo, Brazil-based Auteq Telematica.
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Deere's fiscal 2014 earnings per share declined 13.3% year over year to $1.83 impacted by less favorable product mix, lower shipment and production volumes as well as higher production costs. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report BLOUNT INTL (BLT): Free Stock Analysis Report To read this article on Zacks.com click here. In line with its strategic focus on the sugarcane industry, Deere & Company ( DE ) has acquired Sao Paulo, Brazil-based Auteq Telematica.
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Deere's fiscal 2014 earnings per share declined 13.3% year over year to $1.83 impacted by less favorable product mix, lower shipment and production volumes as well as higher production costs. In line with its strategic focus on the sugarcane industry, Deere & Company ( DE ) has acquired Sao Paulo, Brazil-based Auteq Telematica. The Deere-Auteq association goes back to 2009, when they had created a joint venture to provide integrated, innovative technologies and solutions for sugarcane production.
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9c7dedc5-9cbd-4231-b2a0-7188f3777e85
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722860.0
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2014-12-02 00:00:00 UTC
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Deere Downgraded to Strong Sell on Weak Agricultural Outlook - Analyst Blog
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DE
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https://www.nasdaq.com/articles/deere-downgraded-to-strong-sell-on-weak-agricultural-outlook-analyst-blog-2014-12-02
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nan
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On Dec 2, Zacks Investment Research downgraded The Deere & Company ( DE ), the world's largest agricultural equipment maker, to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
Deere's share price and estimates underwent negative revisions following the announcement of its fourth-quarter fiscal 2014 results on Nov 26. The manufacturer also provided a bearish fiscal 2015 outlook due to falling crop prices and farm income. Earnings per share in the quarter declined 13.3% yoy to $1.83 impacted by less favorable product mix, lower shipment and production volumes as well as higher production costs.
Deere expects equipment sales to decrease around 21% in the first quarter and 15% year over year in fiscal 2015 because of weak demand for agricultural machineries. The company projects net income of $1.9 billion for fiscal 2015, down from $3.16 billion in 2014 and $3.54 billion in 2013.
Segment-wise, Deere estimated Agriculture and Turf equipment sales to decline 20% for fiscal 2015 as a result of weaker conditions in the global farming economy. On the contrary, global sales for Construction & Forestry equipment is expected to advance about 5% for 2015.
Region-wise, industry farm machinery sales in the U.S. and Canada are expected to be down 25% to 30% for 2015. In Europe, sales are projected to be down 10% due to lower commodity prices and farm income as well as potential pressure on the dairy sector. Sales in the Commonwealth of Independent States are expected to deteriorate further, in part due to tight credit conditions. Sales in Asia are projected to be down slightly, with most of the decline centered in China. In South America, industry sales of tractors and combines are expected to decline 10% year over year due to headwinds affecting agricultural producers.
Over the past 7 days, the Zacks Consensus Estimate for Deere dropped 4% to $6.28 per share for fiscal 2015 and 2% to $5.79 a share for fiscal 2016.
Other Stocks to Consider
Better-ranked stocks in the same industry include Alamo Group, Inc. ( ALG ), Blount International Inc. ( BLT ) and Briggs & Stratton Corporation ( BGG ). All of these carry a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
ALAMO GROUP INC (ALG): Free Stock Analysis Report
BRIGGS & STRATT (BGG): Free Stock Analysis Report
BLOUNT INTL (BLT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere's share price and estimates underwent negative revisions following the announcement of its fourth-quarter fiscal 2014 results on Nov 26. Segment-wise, Deere estimated Agriculture and Turf equipment sales to decline 20% for fiscal 2015 as a result of weaker conditions in the global farming economy. On Dec 2, Zacks Investment Research downgraded The Deere & Company ( DE ), the world's largest agricultural equipment maker, to a Zacks Rank #5 (Strong Sell).
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On Dec 2, Zacks Investment Research downgraded The Deere & Company ( DE ), the world's largest agricultural equipment maker, to a Zacks Rank #5 (Strong Sell). Segment-wise, Deere estimated Agriculture and Turf equipment sales to decline 20% for fiscal 2015 as a result of weaker conditions in the global farming economy. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report BLOUNT INTL (BLT): Free Stock Analysis Report To read this article on Zacks.com click here.
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On Dec 2, Zacks Investment Research downgraded The Deere & Company ( DE ), the world's largest agricultural equipment maker, to a Zacks Rank #5 (Strong Sell). Deere expects equipment sales to decrease around 21% in the first quarter and 15% year over year in fiscal 2015 because of weak demand for agricultural machineries. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report BLOUNT INTL (BLT): Free Stock Analysis Report To read this article on Zacks.com click here.
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On Dec 2, Zacks Investment Research downgraded The Deere & Company ( DE ), the world's largest agricultural equipment maker, to a Zacks Rank #5 (Strong Sell). Deere expects equipment sales to decrease around 21% in the first quarter and 15% year over year in fiscal 2015 because of weak demand for agricultural machineries. Segment-wise, Deere estimated Agriculture and Turf equipment sales to decline 20% for fiscal 2015 as a result of weaker conditions in the global farming economy.
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722861.0
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2014-12-02 00:00:00 UTC
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5 Things Deere & Company (DE) Management Wants You to Know
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DE
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https://www.nasdaq.com/articles/5-things-deere-company-de-management-wants-you-know-2014-12-02
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nan
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Deere & Company recently beat fourth-quarter estimates, but served notice that 2015 is likely to be a tough year. It's hardly surprising given the price weakness in key crops like corn, wheat, soybeans, and cotton. Ultimately the company's fortunes will be tied to the cyclicality of the farming sector, and investors should follow events closely because a potential turnaround in crop prices will likely lead to the stock moving higher. However, before you rush to take a view, here are five things management thinks you should know.
DE data by YCharts
Deere & Company guidance disappoints; farmers' cash receipts seen as key
In a nutshell, management guided toward a decline in net sales of 15% mainly due to a forecast 20% net sales decline in its agriculture and turf segment.
First, how did Deere's management come up with this forecast? In answering a question from a Barclays analyst, Deere's director of investor relations, Tony Huegel, stated:
In other words, its sales forecast is largely based on farmers' income, which in turn, largely depends on crop prices. This tells you that the internal management of the business will be managed on the basis of where Deere's management sees crop prices going. As outlined in its recent earnings , Deere's expectations for its key crop prices in 2015 were all lowered recently. So, let's look at what Deere is doing to manage the downturn.
Deere will face challenges with its large machinery sales in 2015. Source: Deere and Company
Inventory management
Second, management outlined how they are reducing inventory in order to prepare for lower sales. David Raso of Evercore asked a question relating to dealer inventory, and Huegel replied:
Cutting receivables is important because it helps increase cash flow, and reducing inventory ahead of a slowdown can help to keep sales margin up (and increase cash flow), because the company will not be forced to slash prices to sell unwanted inventory.
Here's how Deere's inventory metrics compare to farming machinery rivals, AGCO Corporation and CNH Industrial . In general companies would prefer to have a lower inventory figure.
Source: Company Presentations, Yahoo Finance, author's analysis, 2014 inventory figures are the latest quarterly numbers for AGCO and CNH Industrial
All three forecast sales to fall next year, but Deere appears to be better prepared. Whether, AGCO and CNH Industrial will cut prices in order to reduce inventory in North America -- an event that could hurt Deere -- remains to be seen.
Cost cutting
Third, manager of investor communications, Susan Karlix outlined how Deere is cutting output in preparation for falling sales.
A note of caution?
Fourth, Deere's management statements appeared to issue a cautionary note. With regards to agriculture and turf segment sales, Karlix said:
Huegel (in answering a question from a JPMorgan analyst) went on to clarify that the agriculture and turf segment forecast 'would not be at 80%. That should be below 80% in our forecast'.
Essentially,management is saying that the company is structured to produce at 80%-120% of "normal" levels. This implies that if management sees sales as likely to consistently fall below 80% then there maybe some need for restructuring.
Price increases
Fifth, Deere plans to increase prices. According to Karlix's:
Huegel confirmed that both segments should positively contribute to pricing. In other words, despite lower sales, Deere is expecting price increases next year.
Deere'searnings callsummary
All told, Deere's outlook isn't good, but the company is preparing for a tough environment next year. Cutting production and reducing inventory levels are a fine thing, but ultimately crop prices and farmers' cash receipts will decide the fate of its stock price. Deere's planned price increases will help, but it's hard to know how its competition will act given their inventory positions.
1 great stock to buy for 2015 and beyond
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The article 5 Things Deere & Company ( DE ) Management Wants You to Know originally appeared on Fool.com.
Lee Samaha has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Source: Company Presentations, Yahoo Finance, author's analysis, 2014 inventory figures are the latest quarterly numbers for AGCO and CNH Industrial All three forecast sales to fall next year, but Deere appears to be better prepared. Whether, AGCO and CNH Industrial will cut prices in order to reduce inventory in North America -- an event that could hurt Deere -- remains to be seen. Deere & Company recently beat fourth-quarter estimates, but served notice that 2015 is likely to be a tough year.
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Source: Deere and Company Inventory management Second, management outlined how they are reducing inventory in order to prepare for lower sales. In other words, despite lower sales, Deere is expecting price increases next year. Cutting production and reducing inventory levels are a fine thing, but ultimately crop prices and farmers' cash receipts will decide the fate of its stock price.
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DE data by YCharts Deere & Company guidance disappoints; farmers' cash receipts seen as key In a nutshell, management guided toward a decline in net sales of 15% mainly due to a forecast 20% net sales decline in its agriculture and turf segment. Source: Deere and Company Inventory management Second, management outlined how they are reducing inventory in order to prepare for lower sales. David Raso of Evercore asked a question relating to dealer inventory, and Huegel replied: Cutting receivables is important because it helps increase cash flow, and reducing inventory ahead of a slowdown can help to keep sales margin up (and increase cash flow), because the company will not be forced to slash prices to sell unwanted inventory.
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First, how did Deere's management come up with this forecast? Source: Deere and Company Inventory management Second, management outlined how they are reducing inventory in order to prepare for lower sales. Cutting production and reducing inventory levels are a fine thing, but ultimately crop prices and farmers' cash receipts will decide the fate of its stock price.
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722862.0
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2014-12-01 00:00:00 UTC
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Deere & Co. (DE) Shares Cross Above 200 DMA
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DE
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https://www.nasdaq.com/articles/deere-co-de-shares-cross-above-200-dma-2014-12-01
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nan
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In trading on Monday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $87.68, changing hands as high as $89.30 per share. Deere & Co. shares are currently trading up about 2.4% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $88.77.
According to the ETF Finder at ETF Channel, DE makes up 7.74% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.6% on the day Monday.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $87.68, changing hands as high as $89.30 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $88.77. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $87.68, changing hands as high as $89.30 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $88.77. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $87.68, changing hands as high as $89.30 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $88.77. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $87.68, changing hands as high as $89.30 per share. According to the ETF Finder at ETF Channel, DE makes up 7.74% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.6% on the day Monday. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7bd999c8-4183-4d53-8cc3-a08b70822fa5
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722863.0
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2014-12-01 00:00:00 UTC
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S&P 500 Movers: PWR, NEM
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DE
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https://www.nasdaq.com/articles/sp-500-movers-pwr-nem-2014-12-01
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In early trading on Monday, shares of Newmont Mining ( NEM ) topped the list of the day's best performing components of the S&P 500 index, trading up 5.4%. Year to date, Newmont Mining has lost about 15.8% of its value.
And the worst performing S&P 500 component thus far on the day is Quanta Services ( PWR ), trading down 7.6%. Quanta Services is lower by about 10.7% looking at the year to date performance.
Two other components making moves today are Newfield Exploration ( NFX ), trading down 5.3%, and Deere & Co. ( DE ), trading up 2.5% on the day.
VIDEO: S&P 500 Movers: PWR, NEM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Monday, shares of Newmont Mining ( NEM ) topped the list of the day's best performing components of the S&P 500 index, trading up 5.4%. Two other components making moves today are Newfield Exploration ( NFX ), trading down 5.3%, and Deere & Co. ( DE ), trading up 2.5% on the day. VIDEO: S&P 500 Movers: PWR, NEM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: S&P 500 Movers: PWR, NEM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Newmont Mining ( NEM ) topped the list of the day's best performing components of the S&P 500 index, trading up 5.4%. Two other components making moves today are Newfield Exploration ( NFX ), trading down 5.3%, and Deere & Co. ( DE ), trading up 2.5% on the day.
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In early trading on Monday, shares of Newmont Mining ( NEM ) topped the list of the day's best performing components of the S&P 500 index, trading up 5.4%. VIDEO: S&P 500 Movers: PWR, NEM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Two other components making moves today are Newfield Exploration ( NFX ), trading down 5.3%, and Deere & Co. ( DE ), trading up 2.5% on the day.
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In early trading on Monday, shares of Newmont Mining ( NEM ) topped the list of the day's best performing components of the S&P 500 index, trading up 5.4%. VIDEO: S&P 500 Movers: PWR, NEM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Two other components making moves today are Newfield Exploration ( NFX ), trading down 5.3%, and Deere & Co. ( DE ), trading up 2.5% on the day.
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722864.0
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2014-11-29 00:00:00 UTC
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Deere and Company (DE) Stock Earnings: No Bottom Seen Yet
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DE
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https://www.nasdaq.com/articles/deere-and-company-de-stock-earnings-no-bottom-seen-yet-2014-11-29
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nan
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Farm equipment manufacturer, Deere & Company 'sfourth-quarter earnings beat analyst estimates, but its outlook was probably weak enough to shake out a few of the value hunters that have been buying the stock. There is no question Deere is a profitable company that looks like a good value on a long-term basis, -- after all, crop prices won't go down forever -- but what do these results say about its current trends and prospects?
Deere & Company gives fourth-quarter earnings
A brief summary of its fourth-quarter results and guidance
Fourth-quarter net sales decreased 7% to $8.04 billion versus analyst consensus of $7.75 billion
Fourth-quarter diluted EPS fell 13% to $1.83 versus analyst consensus of $1.57
Full-year net income of $3.16 billion versus internal guidance of $3.1 billion
So far, so good, but the problem is with the guidance. Anyone hoping for a quick bounce back in Deere's fortunes would have been disappointed with management's guidance for net income of $1.9 billion in 2015. Moreover, net sales are forecast to decline by 15% in 2015 -- Deere and Company's management are definitely not predicting a trough in fortunes just yet.
Deere's crop price outlook worsens
I will get to a more detailed appraisal of company guidance in a moment, but first a look at its outlook for U.S. farm commodity prices. Despite a resurgence in its construction and forestry segment (operating profit increased 71% in the segment in 2014), Deere's prospects are still governed by its agriculture and turf segment.
Source: Deere & Company Presentations
Unfortunately, at each quarterly earnings, Deere has lowered its forecasts for future U.S. farm commodity prices, with notable weakness being seen in corn and wheat prices.
Source: Deere and Company presentations, dollars per bushel except cotton which is dollars per pound
Indeed, in the earnings press release, CEO, Samuel Allen disclosed that its sales slowdown,
Deere gives weak guidance
A break out of its guidance for 2015 reveals that the tale of two segments looks set to continue next year.
Net sales expected to decline by 15%
Net income is forecast to decline from $3.16 billion to $1.9 billion
Agriculture and turf segment net sales expected to decline by 20%
Construction and forestry net sales forecast to increase by 5%
In a sense, none of this should surprise investors, because another farming equipment manufacturer, ACGO Corporation lowered its full-year forecasts in October. ACGO's management cited softening demand, and informed investors that the company's "priority" will be to lower its dealer and company inventories in order to "better align us with current market demand." Readers should not be surprised if this leads to some increased price competition in the industry -- something else for Deere investors to worry about.
Where next for Deere and Company?
All told, the outlook wasn't good, but then Fools couldn't have expected too much from the company in the present environment of falling crop prices. Ultimately, Deere is a highly cyclical company, and the key conclusion from the report is that the bottom of the current cycle isn't in sight just yet.
Of course, this doesn't mean the stock isn't a good value, -- I will address the value proposition in future articles -- but the recent earnings gave Fools more cause for concern in the near-term. It could get worse before it gets better.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Deere and Company ( DE ) Stock Earnings: No Bottom Seen Yet originally appeared on Fool.com.
Lee Samaha has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Farm equipment manufacturer, Deere & Company 'sfourth-quarter earnings beat analyst estimates, but its outlook was probably weak enough to shake out a few of the value hunters that have been buying the stock. There is no question Deere is a profitable company that looks like a good value on a long-term basis, -- after all, crop prices won't go down forever -- but what do these results say about its current trends and prospects? Deere & Company gives fourth-quarter earnings A brief summary of its fourth-quarter results and guidance Fourth-quarter net sales decreased 7% to $8.04 billion versus analyst consensus of $7.75 billion Fourth-quarter diluted EPS fell 13% to $1.83 versus analyst consensus of $1.57 Full-year net income of $3.16 billion versus internal guidance of $3.1 billion So far, so good, but the problem is with the guidance.
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Deere & Company gives fourth-quarter earnings A brief summary of its fourth-quarter results and guidance Fourth-quarter net sales decreased 7% to $8.04 billion versus analyst consensus of $7.75 billion Fourth-quarter diluted EPS fell 13% to $1.83 versus analyst consensus of $1.57 Full-year net income of $3.16 billion versus internal guidance of $3.1 billion So far, so good, but the problem is with the guidance. Source: Deere & Company Presentations Unfortunately, at each quarterly earnings, Deere has lowered its forecasts for future U.S. farm commodity prices, with notable weakness being seen in corn and wheat prices. Net sales expected to decline by 15% Net income is forecast to decline from $3.16 billion to $1.9 billion Agriculture and turf segment net sales expected to decline by 20% Construction and forestry net sales forecast to increase by 5% In a sense, none of this should surprise investors, because another farming equipment manufacturer, ACGO Corporation lowered its full-year forecasts in October.
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Deere & Company gives fourth-quarter earnings A brief summary of its fourth-quarter results and guidance Fourth-quarter net sales decreased 7% to $8.04 billion versus analyst consensus of $7.75 billion Fourth-quarter diluted EPS fell 13% to $1.83 versus analyst consensus of $1.57 Full-year net income of $3.16 billion versus internal guidance of $3.1 billion So far, so good, but the problem is with the guidance. Source: Deere and Company presentations, dollars per bushel except cotton which is dollars per pound Indeed, in the earnings press release, CEO, Samuel Allen disclosed that its sales slowdown, Deere gives weak guidance A break out of its guidance for 2015 reveals that the tale of two segments looks set to continue next year. Net sales expected to decline by 15% Net income is forecast to decline from $3.16 billion to $1.9 billion Agriculture and turf segment net sales expected to decline by 20% Construction and forestry net sales forecast to increase by 5% In a sense, none of this should surprise investors, because another farming equipment manufacturer, ACGO Corporation lowered its full-year forecasts in October.
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Source: Deere & Company Presentations Unfortunately, at each quarterly earnings, Deere has lowered its forecasts for future U.S. farm commodity prices, with notable weakness being seen in corn and wheat prices. Where next for Deere and Company? Farm equipment manufacturer, Deere & Company 'sfourth-quarter earnings beat analyst estimates, but its outlook was probably weak enough to shake out a few of the value hunters that have been buying the stock.
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2014-11-28 00:00:00 UTC
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Company News for November 28, 2014 - Corporate Summary
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DE
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https://www.nasdaq.com/articles/company-news-for-november-28-2014-corporate-summary-2014-11-28
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• Shares of Deere & Company ( DE ) dropped 0.9% after reporting fourth quarter earnings per share of $1.83, declining 13.3% year-over-year
• Cubic Corporation's ( CUB ) shares jumped 8.2% after announcing fourth quarter earnings per share of $1.22. exceeding the Zacks Consensus Estimate of $0.93
• Shares of Infoblox Inc. ( BLOX ) gained 6.3% after declaring fiscal first quarter revenues of $67 million, beating the Zacks Consensus Estimate of $64 million
• TiVo Inc.'s ( TIVO ) shares declined 7.5% after posting third quarter earnings per share of $0.06, missing the Zacks Consensus Estimate by a cent
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
CUBIC CORP (CUB): Free Stock Analysis Report
INFOBLOX INC (BLOX): Free Stock Analysis Report
TIVO INC (TIVO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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exceeding the Zacks Consensus Estimate of $0.93 • Shares of Infoblox Inc. ( BLOX ) gained 6.3% after declaring fiscal first quarter revenues of $67 million, beating the Zacks Consensus Estimate of $64 million • TiVo Inc.'s ( TIVO ) shares declined 7.5% after posting third quarter earnings per share of $0.06, missing the Zacks Consensus Estimate by a cent Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CUBIC CORP (CUB): Free Stock Analysis Report INFOBLOX INC (BLOX): Free Stock Analysis Report TIVO INC (TIVO): Free Stock Analysis Report To read this article on Zacks.com click here. • Shares of Deere & Company ( DE ) dropped 0.9% after reporting fourth quarter earnings per share of $1.83, declining 13.3% year-over-year • Cubic Corporation's ( CUB ) shares jumped 8.2% after announcing fourth quarter earnings per share of $1.22.
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• Shares of Deere & Company ( DE ) dropped 0.9% after reporting fourth quarter earnings per share of $1.83, declining 13.3% year-over-year • Cubic Corporation's ( CUB ) shares jumped 8.2% after announcing fourth quarter earnings per share of $1.22. exceeding the Zacks Consensus Estimate of $0.93 • Shares of Infoblox Inc. ( BLOX ) gained 6.3% after declaring fiscal first quarter revenues of $67 million, beating the Zacks Consensus Estimate of $64 million • TiVo Inc.'s ( TIVO ) shares declined 7.5% after posting third quarter earnings per share of $0.06, missing the Zacks Consensus Estimate by a cent Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CUBIC CORP (CUB): Free Stock Analysis Report INFOBLOX INC (BLOX): Free Stock Analysis Report TIVO INC (TIVO): Free Stock Analysis Report To read this article on Zacks.com click here.
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• Shares of Deere & Company ( DE ) dropped 0.9% after reporting fourth quarter earnings per share of $1.83, declining 13.3% year-over-year • Cubic Corporation's ( CUB ) shares jumped 8.2% after announcing fourth quarter earnings per share of $1.22. exceeding the Zacks Consensus Estimate of $0.93 • Shares of Infoblox Inc. ( BLOX ) gained 6.3% after declaring fiscal first quarter revenues of $67 million, beating the Zacks Consensus Estimate of $64 million • TiVo Inc.'s ( TIVO ) shares declined 7.5% after posting third quarter earnings per share of $0.06, missing the Zacks Consensus Estimate by a cent Want the latest recommendations from Zacks Investment Research? Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CUBIC CORP (CUB): Free Stock Analysis Report INFOBLOX INC (BLOX): Free Stock Analysis Report TIVO INC (TIVO): Free Stock Analysis Report To read this article on Zacks.com click here.
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exceeding the Zacks Consensus Estimate of $0.93 • Shares of Infoblox Inc. ( BLOX ) gained 6.3% after declaring fiscal first quarter revenues of $67 million, beating the Zacks Consensus Estimate of $64 million • TiVo Inc.'s ( TIVO ) shares declined 7.5% after posting third quarter earnings per share of $0.06, missing the Zacks Consensus Estimate by a cent Want the latest recommendations from Zacks Investment Research? • Shares of Deere & Company ( DE ) dropped 0.9% after reporting fourth quarter earnings per share of $1.83, declining 13.3% year-over-year • Cubic Corporation's ( CUB ) shares jumped 8.2% after announcing fourth quarter earnings per share of $1.22. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CUBIC CORP (CUB): Free Stock Analysis Report INFOBLOX INC (BLOX): Free Stock Analysis Report TIVO INC (TIVO): Free Stock Analysis Report To read this article on Zacks.com click here.
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722866.0
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2014-11-26 00:00:00 UTC
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Mid-Afternoon Market Update: Ctrip.com Drops On Downbeat Q4 Outlook; Analog Devices Shares Spike Higher; TiVo Tumbles ~7%
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https://www.nasdaq.com/articles/mid-afternoon-market-update-ctripcom-drops-downbeat-q4-outlook-analog-devices-shares-spike
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Toward the end of trading Wednesday, the Dow traded down 0.01 percent to 17,813.13 while the NASDAQ gained 0.47 percent to 4,780.57. The S&P also rose, gaining 0.17 percent to 2,070.49.
Leading and Lagging Sectors
In trading on Wednesday, technology shares were relative leaders, up on the day by about 0.64 percent. Top gainers in the sector included Bitauto Holdings (NYSE: BITA ), up 6.8 percent, and Analog Devices (NASDAQ: ADI ), up 5.5 percent.
Energy sector was the top decliner in the US market on Wednesday. Top losers in the sector included SeaDrill (NYSE: SDRL ), Diamond Offshore Drilling (NYSE: DO ), and Goodrich Petroleum (NYSE: GDP ).
Top Headline
Deere & Co (NYSE: DE ) reported better-than-expected fiscal fourth-quarter results. However, the company expected a drop in equipment sales.
The Moline, Illinois-based company reported quarterly earnings of $649.2 million, or $1.83 per share, compared to $806.8 million, or $2.11 per share, in the year-ago quarter.
Its revenue declined 5 percent to $8.97 billion, while equipment sales slipped 7 percent. However, analysts were expecting earnings of $1.57 per share on revenue of $7.68 billion.
Equities Trading UP
Infoblox (NYSE: BLOX ) shares shot up 5.98 percent to $17.90 after the company reported upbeat financial results for its first fiscal quarter.
Shares of Veeva Systems (NYSE: VEEV ) got a boost, shooting up 11.51 percent to $32.16 after the company reported better-than-expected Q3 results and issued a strong Q4 forecast.
Analog Devices (NASDAQ: ADI ) shares were also up, gaining 5.40 percent to $54.50 after the company announced better-than-expected financial results for its fourth quarter.
Equities Trading DOWN
Shares of SeaDrill (NYSE: SDRL ) were down 21.39 percent to $16.28 on weak earnings and suspension of dividend.
Ctrip.com International (NASDAQ: CTRP ) shares tumbled 10.08 percent to $52.57 after the company reported upbeat Q3 earnings, but issued a weak Q4 revenue forecast. Brean Capital lowered the price target on the stock from $74.00 to $64.00.
TiVo (NASDAQ: TIVO ) was down, falling 4.53 percent to $12.32 after the company reported downbeat third-quarter earnings.
Commodities
In commodity news, oil traded down 0.50 percent to $73.72, while gold traded up 0.02 percent to $1,198.00.
Silver traded down 0.10 percent Wednesday to $16.60, while copper fell 0.69 percent to $2.96.
Eurozone
European shares closed mostly lower today. The Spanish Ibex Index dropped 0.49 percent, while Italy's FTSE MIB Index slipped 0.36 percent. Meanwhile, the German DAX rose 0.55 percent and the French CAC 40 fell 0.20 percent while UK shares fell 0.03 percent.
Economics
The MBA reported that its index of mortgage application activity fell 4.30 percent in the week ended November 21, 2014.
US consumer spending rose 0.20% in October, versus economists' expectations for a 0.40 percent growth.
Initial jobless claims rose 21,000 to 313,000 in the week ended November 22. However, economists were projecting claims to reach 287,000 in the week.
US durable goods orders gained 0.40 percent in October, versus economists' expectations for a 0.60 percent decline.
The Chicago PMI fell to 60.80 in November, versus a prior reading of 66.20. However, economists were expecting a reading of 63.10.
The final reading of Reuter's/University of Michigan's consumer sentiment index slipped to 88.80 in November, versus a prior reading of 89.40. However, economists were expecting a reading of 90.00.
Sales of new homes rose 0.7 percent to an annual rate of 458,000 in October. However, economists were estimating a rate of 471,000.
The pending home sales index declined 1.1% to 104.1 in October, from 105.3 in September.
US crude inventories increased by 1.9 million barrels last week, according to the Energy Information Administration. However, analysts were expecting stocks to decline by 100,000 in the week.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Free Trading Education - Check out the free events taking place on Marketfy this week. Spaces are limited. Sign up today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Toward the end of trading Wednesday, the Dow traded down 0.01 percent to 17,813.13 while the NASDAQ gained 0.47 percent to 4,780.57. Leading and Lagging Sectors In trading on Wednesday, technology shares were relative leaders, up on the day by about 0.64 percent. Top gainers in the sector included Bitauto Holdings (NYSE: BITA ), up 6.8 percent, and Analog Devices (NASDAQ: ADI ), up 5.5 percent.
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Its revenue declined 5 percent to $8.97 billion, while equipment sales slipped 7 percent. Analog Devices (NASDAQ: ADI ) shares were also up, gaining 5.40 percent to $54.50 after the company announced better-than-expected financial results for its fourth quarter. Toward the end of trading Wednesday, the Dow traded down 0.01 percent to 17,813.13 while the NASDAQ gained 0.47 percent to 4,780.57.
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Toward the end of trading Wednesday, the Dow traded down 0.01 percent to 17,813.13 while the NASDAQ gained 0.47 percent to 4,780.57. US durable goods orders gained 0.40 percent in October, versus economists' expectations for a 0.60 percent decline. Leading and Lagging Sectors In trading on Wednesday, technology shares were relative leaders, up on the day by about 0.64 percent.
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Toward the end of trading Wednesday, the Dow traded down 0.01 percent to 17,813.13 while the NASDAQ gained 0.47 percent to 4,780.57. Energy sector was the top decliner in the US market on Wednesday. However, analysts were expecting stocks to decline by 100,000 in the week.
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8936e442-3123-442f-8677-5077f809fb10
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722867.0
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2014-11-26 00:00:00 UTC
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Deere Beats Q4 Earnings, Down Y/Y on Slowdown in Farming - Analyst Blog
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DE
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https://www.nasdaq.com/articles/deere-beats-q4-earnings-down-y-y-on-slowdown-in-farming-analyst-blog-2014-11-26
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Deere & Company's ( DE ) earnings per share in the fourth quarter of fiscal 2014 (ended Oct 31, 2014) declined 13.3% to $1.83 from $2.11 earned in the prior-year quarter impacted by less favorable product mix, lower shipment and production volumes and higher production costs. Earnings, however, beat the Zacks Consensus Estimate of $1.58, delivering an earnings surprise of 15.8%.
Operational Update
Deere's worldwide total sales dipped 5% year over year to $8.97 billion. However, revenues surpassed the Zacks Consensus Estimate of $7.76 billion. Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) were $8 billion, down 7% year over year, including a price realization of 1%, offset by a 1% unfavorable impact from currency translation. Region-wise, equipment net sales were down 10% in the U.S. and Canada, and 2% in rest of the world.
Cost of sales in the quarter decreased 3.7% year over year to $6.1 billion. Gross profit during the quarter was $2.87 billion, down 8% year over year. Selling, administrative and general expenses dipped 10% to $851 million. Operating profit declined 14% year over year to $1.17 billion.
Operating income from equipment operations plunged 18% year over year to $910 million due to less favorable product mix, lower shipment and production volumes and higher production costs.
Segment Performance
The Agriculture & Turf segment sales decreased 13% year over year to $6.2 billion, as lower shipment volumes, sale of John Deere Landscapes and water operations and unfavorable currency translation partially offset price realization. Operating profit of the segment slumped 32% year over year to $682 million due to lower shipment and production volumes, less favorable product mix, higher production costs primarily related to engine emission programs, increased warranty costs and an impairment charge for Chinese operations.
Construction & Forestry sales improved 23% year over year to $1.87 billion aided by higher shipment volumes and price realization, partially offset by unfavorable currency translation. Operating profit in the segment surged 93% year over year to $228 million, driven by higher shipment volumes and lower selling, administrative and general expenses.
Net revenues at Deere's Financial Services operations were $762 million in the reported quarter, up 9% year over year. The segment's operating profit was $261 million, compared with $241 million in the prior-year quarter. Net income in this segment was $172 million compared with $157 million in the year-ago quarter. The improvement stemmed from growth in credit portfolio, partially offset by lower crop insurance margin, higher provision for credit losses and higher selling, administrative and general expenses.
Fiscal 2014 Performance
Deere posted earnings of $8.63 per share for fiscal 2014, down 5.1% from $9.09 a share in fiscal 2013. However, it came ahead of the Zacks Consensus Estimate of $8.38. Revenues for the full year decreased 5% year over year to $36.07 billion. However, it surpassed the Zacks Consensus Estimate of $33.07 billion. Weaker conditions in the global farming sector caused sales and earnings to decline in fiscal 2014 from the record results of 2013.
Financials
As of Oct 31, 2014, Deere had cash and cash equivalents of $3.8 billion versus $3.5 billion as of Oct 31, 2013. As of Oct 31, 2014, long-term borrowings were $24.4 million, compared with $21.6 billion as of Oct 31, 2013.
Cash from operations for the twelve-month period ended Oct 31, 2014, were $3.53 billion, up 8% from $3.25 billion in the year-ago comparable period. Dividends and buybacks in 2014 totaled a record $3.5 billion.
Looking Ahead
In spite of continued pullback in the global agricultural sector John Deere expects to remain solidly profitable in 2015, reflecting its efforts to establish a more resilient business model.
Deere expects equipment sales to decrease around 15% year over year in fiscal 2015. For the first quarter of 2015, Deere projected a 21% decline compared with the year-ago period. Deere projected its net income to be $1.9 billion for fiscal 2015.
Segment-wise, Deere estimated Agriculture and Turf equipment sales to decline 20% for fiscal 2015 as a result of weaker conditions in the global farming economy.
Region-wise, industry farm machinery sales in the U.S. and Canada are expected to be to be down 25 to 30% for 2015. In Europe, sales are projected to be down 10% due to lower commodity prices and farm income as well as potential pressure on the dairy sector. Sales in the Commonwealth of Independent States are expected to deteriorate further, in part due to tight credit conditions. Sales in Asia are projected to be down slightly, with most of the decline centered in China. In South America, industry sales of tractors and combines are expected to decline by 10% year over year due to headwinds affecting agricultural producers.
Deere expects sales growth of turf and utility equipment in the U.S. and Canada to range from flat to up 5% benefiting from general economic growth. The company foresees global sales for Construction & Forestry equipment to advance about 5% for 2015. The gain reflects further economic recovery and higher housing starts in the U.S. as well as sales increases outside the U.S. and Canada. Global forestry sales are expected to hold steady with the attractive levels of 2014. Net income from Financial Services is estimated at around $610 million for the full year.
Our View
Given the increased global demand for food, shelter and infrastructure, we believe that the long-term outlook for Deere remains strong. Global trends based on population growth and rising living standards remain intact and are largely unaffected by periodic swings in the farming economy. Meanwhile Deere's plans for serving a larger global customer base are making progress which will drive growth.
Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada through branch offices as well as through distributors and operates through dealers to resell products internationally.
Deere currently holds a Zacks Rank #4 (Sell).
One of Deere's peers, Lindsay Corporation ( LNN ) reported a 10% year-over-year rise in earnings to 89 cents per share in the fourth-quarter fiscal 2014. Earnings also beat the Zacks Consensus Estimate of 56 cents per share.
Some stocks that are worth considering within this industry include Alamo Group, Inc. ( ALG ) and Briggs & Stratton Corporation ( BGG ), both carrying a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
LINDSAY CORP (LNN): Free Stock Analysis Report
ALAMO GROUP INC (ALG): Free Stock Analysis Report
BRIGGS & STRATT (BGG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking Ahead In spite of continued pullback in the global agricultural sector John Deere expects to remain solidly profitable in 2015, reflecting its efforts to establish a more resilient business model. Some stocks that are worth considering within this industry include Alamo Group, Inc. ( ALG ) and Briggs & Stratton Corporation ( BGG ), both carrying a Zacks Rank #1 (Strong Buy). Deere & Company's ( DE ) earnings per share in the fourth quarter of fiscal 2014 (ended Oct 31, 2014) declined 13.3% to $1.83 from $2.11 earned in the prior-year quarter impacted by less favorable product mix, lower shipment and production volumes and higher production costs.
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Deere & Company's ( DE ) earnings per share in the fourth quarter of fiscal 2014 (ended Oct 31, 2014) declined 13.3% to $1.83 from $2.11 earned in the prior-year quarter impacted by less favorable product mix, lower shipment and production volumes and higher production costs. Segment Performance The Agriculture & Turf segment sales decreased 13% year over year to $6.2 billion, as lower shipment volumes, sale of John Deere Landscapes and water operations and unfavorable currency translation partially offset price realization. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report LINDSAY CORP (LNN): Free Stock Analysis Report ALAMO GROUP INC (ALG): Free Stock Analysis Report BRIGGS & STRATT (BGG): Free Stock Analysis Report To read this article on Zacks.com click here.
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Segment Performance The Agriculture & Turf segment sales decreased 13% year over year to $6.2 billion, as lower shipment volumes, sale of John Deere Landscapes and water operations and unfavorable currency translation partially offset price realization. Deere & Company's ( DE ) earnings per share in the fourth quarter of fiscal 2014 (ended Oct 31, 2014) declined 13.3% to $1.83 from $2.11 earned in the prior-year quarter impacted by less favorable product mix, lower shipment and production volumes and higher production costs. Earnings, however, beat the Zacks Consensus Estimate of $1.58, delivering an earnings surprise of 15.8%.
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Net revenues at Deere's Financial Services operations were $762 million in the reported quarter, up 9% year over year. Deere expects equipment sales to decrease around 15% year over year in fiscal 2015. Deere & Company's ( DE ) earnings per share in the fourth quarter of fiscal 2014 (ended Oct 31, 2014) declined 13.3% to $1.83 from $2.11 earned in the prior-year quarter impacted by less favorable product mix, lower shipment and production volumes and higher production costs.
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722868.0
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2014-11-26 00:00:00 UTC
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Mid-Morning Market Update: Markets Mixed; Deere Projects Drop In Equipment Sales
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DE
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https://www.nasdaq.com/articles/mid-morning-market-update-markets-mixed-deere-projects-drop-equipment-sales-2014-11-26
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Following the market opening Wednesday, the Dow traded down 0.07 percent to 17,801.78 while the NASDAQ gained 0.15 percent to 4,765.25. The S&P also rose, gaining 0.01 percent to 2,067.27.
Leading and Lagging Sectors
In trading on Wednesday, utilities shares were relative leaders, up on the day by about 0.24 percent. Top gainers in the sector included Companhia Energética de Minas Gerais (NYSE: CIG ), up 2.6 percent, and Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE: SBS ), up 1.3 percent.
Energy sector was the top decliner in the US market on Wednesday. Top losers in the sector included SeaDrill (NYSE: SDRL ), Diamond Offshore Drilling (NYSE: DO ), and Transocean (NYSE: RIG ).
Top Headline
Deere & Co (NYSE: DE ) reported better-than-expected fiscal fourth-quarter results. However, the company expected a drop in equipment sales.
The Moline, Illinois-based company reported quarterly earnings of $649.2 million, or $1.83 per share, compared to $806.8 million, or $2.11 per share, in the year-ago quarter.
Its revenue declined 5 percent to $8.97 billion, while equipment sales slipped 7 percent. However, analysts were expecting earnings of $1.57 per share on revenue of $7.68 billion.
Equities Trading Up
Infoblox (NYSE: BLOX ) shares shot up 6.57 percent to $18.00 after the company reported upbeat financial results for its first fiscal quarter.
Shares of Veeva Systems (NYSE: VEEV ) got a boost, shooting up 6.05 percent to $30.58 after the company reported better-than-expected Q3 results and issued a strong Q4 forecast.
DreamWorks Animation SKG (NASDAQ: DWA ) shares were also up, gaining 4.51 percent to $24.15. Analysts at Morgan Stanley upgraded Dreamworks from Equal-weight to Overweight and raised the price target from $22 to $27.
Equities Trading Down
Shares of SeaDrill (NYSE: SDRL ) were down 17.72 percent to $17.04 on weak earnings and suspension of dividend.
Ctrip.com International (NASDAQ: CTRP ) shares tumbled 9.08 percent to $53.15 after the company reported upbeat Q3 earnings, but issued a weak Q4 revenue forecast. Brean Capital lowered the price target on the stock from $74.00 to $64.00.
21Vianet Group (NASDAQ: VNET ) was down, falling 7.39 percent to $19.23 after the company reported Q3 earnings of $0.04 per ADS on revenue of $126.80 million. Canaccord Genuity downgraded 21Vianet from Buy to Hold.
Commodities
In commodity news, oil traded down 0.40 percent to $73.79, while gold traded up 0.02 percent to $1,198.00.
Silver traded up 0.17 percent Wednesday to $16.64, while copper fell 0.54 percent to $2.96.
Eurozone
European shares were mostly lower today. The eurozone's STOXX 600 slipped 0.01 percent, the Spanish Ibex Index dropped 0.45 percent, while Italy's FTSE MIB Index slipped 0.45 percent. Meanwhile, the German DAX rose 0.29 percent and the French CAC 40 fell 0.21 percent while UK shares rose 0.04 percent.
Economics
The MBA reported that its index of mortgage application activity fell 4.30 percent in the week ended November 21, 2014.
US consumer spending rose 0.20 percent in October, versus economists' expectations for a 0.40 percent growth.
Initial jobless claims rose 21,000 to 313,000 in the week ended November 22. However, economists were projecting claims to reach 287,000 in the week.
U.S. durable goods orders gained 0.40 percent in October, versus economists' expectations for a 0.60 percent decline.
The Chicago PMI fell to 60.80 in November, versus a prior reading of 66.20. However, economists were expecting a reading of 63.10.
The final reading of Reuter's/University of Michigan's consumer sentiment index slipped to 88.80 in November, versus a prior reading of 89.40. However, economists were expecting a reading of 90.00.
Sales of new homes rose 0.7% to an annual rate of 458,000 in October. However, economists were estimating a rate of 471,000.
The pending home sales index declined 1.1 percent to 104.1 in October, from 105.3 in September.
Data on farm prices for November will be released at 3:00 p.m. ET.
The Treasury is set to auction 3-and 6-month bills.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Free Trading Education - Check out the free events taking place on Marketfy this week. Spaces are limited. Sign up today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Following the market opening Wednesday, the Dow traded down 0.07 percent to 17,801.78 while the NASDAQ gained 0.15 percent to 4,765.25. Leading and Lagging Sectors In trading on Wednesday, utilities shares were relative leaders, up on the day by about 0.24 percent. Top gainers in the sector included Companhia Energética de Minas Gerais (NYSE: CIG ), up 2.6 percent, and Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE: SBS ), up 1.3 percent.
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Its revenue declined 5 percent to $8.97 billion, while equipment sales slipped 7 percent. U.S. durable goods orders gained 0.40 percent in October, versus economists' expectations for a 0.60 percent decline. Following the market opening Wednesday, the Dow traded down 0.07 percent to 17,801.78 while the NASDAQ gained 0.15 percent to 4,765.25.
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The eurozone's STOXX 600 slipped 0.01 percent, the Spanish Ibex Index dropped 0.45 percent, while Italy's FTSE MIB Index slipped 0.45 percent. Following the market opening Wednesday, the Dow traded down 0.07 percent to 17,801.78 while the NASDAQ gained 0.15 percent to 4,765.25. Leading and Lagging Sectors In trading on Wednesday, utilities shares were relative leaders, up on the day by about 0.24 percent.
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U.S. durable goods orders gained 0.40 percent in October, versus economists' expectations for a 0.60 percent decline. Following the market opening Wednesday, the Dow traded down 0.07 percent to 17,801.78 while the NASDAQ gained 0.15 percent to 4,765.25. Leading and Lagging Sectors In trading on Wednesday, utilities shares were relative leaders, up on the day by about 0.24 percent.
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9594e40b-3ce0-4336-bf81-f6279b042131
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722869.0
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2014-11-26 00:00:00 UTC
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Mid-Day Market Update: Infoblox Rises On Upbeat Results; SeaDrill Shares Slide
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DE
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https://www.nasdaq.com/articles/mid-day-market-update-infoblox-rises-upbeat-results-seadrill-shares-slide-2014-11-26
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Midway through trading Wednesday, the Dow traded down 0.09 percent to 17,798.95 while the NASDAQ gained 0.36 percent to 4,775.17. The S&P also rose, gaining 0.08 percent to 2,068.61.
Leading and Lagging Sectors
In trading on Wednesday, telecommunications services shares were relative leaders, up on the day by about 0.58 percent. Top gainers in the sector included CalAmp (NASDAQ: CAMP ), up 3.4 percent, and BT Group plc (NYSE: BT ), up 2.7 percent.
v Energy sector was the top decliner in the US market on Wednesday. Top losers in the sector included SeaDrill (NYSE: SDRL ), Diamond Offshore Drilling (NYSE: DO ), and Pacific Drilling S.A. (NYSE: PACD ).
Top Headline
Deere & Co (NYSE: DE ) reported better-than-expected fiscal fourth-quarter results. However, the company expected a drop in equipment sales.
The Moline, Illinois-based company reported quarterly earnings of $649.2 million, or $1.83 per share, compared to $806.8 million, or $2.11 per share, in the year-ago quarter.
Its revenue declined 5 percent to $8.97 billion, while equipment sales slipped 7 percent. However, analysts were expecting earnings of $1.57 per share on revenue of $7.68 billion.
Equities Trading UP
Infoblox (NYSE: BLOX ) shares shot up 5.39 percent to $17.80 after the company reported upbeat financial results for its first fiscal quarter.
Shares of Veeva Systems (NYSE: VEEV ) got a boost, shooting up 9.64 percent to $31.62 after the company reported better-than-expected Q3 results and issued a strong Q4 forecast.
DreamWorks Animation SKG (NASDAQ: DWA ) shares were also up, gaining 3.46 percent to $23.91. Analysts at Morgan Stanley upgraded Dreamworks from Equal-weight to Overweight and raised the price target from $22 to $27.
Equities Trading DOWN
Shares of SeaDrill (NYSE: SDRL ) were down 21.13 percent to $16.33 on weak earnings and suspension of dividend.
Ctrip.com International (NASDAQ: CTRP ) shares tumbled 10.66 percent to $52.23 after the company reported upbeat Q3 earnings, but issued a weak Q4 revenue forecast. Brean Capital lowered the price target on the stock from $74.00 to $64.00.
21Vianet Group (NASDAQ: VNET ) was down, falling 7.08 percent to $19.29 after the company reported Q3 earnings of $0.04 per ADS on revenue of $126.80 million. Canaccord Genuity downgraded 21Vianet from Buy to Hold.
Commodities
In commodity news, oil traded down 0.08 percent to $74.03, while gold traded down 0.08 percent to $1,196.80.
Silver traded up 0.02 percent Wednesday to $16.62, while copper fell 0.91 percent to $2.95.
Eurozone
European shares were mixed today. The eurozone's STOXX 600 rose 0.03 percent, the Spanish Ibex Index dropped 0.48 percent, while Italy's FTSE MIB Index slipped 0.36 percent. Meanwhile, the German DAX rose 0.55 percent and the French CAC 40 fell 0.17 percent while UK shares rose 0.07 percent.
Economics
The MBA reported that its index of mortgage application activity fell 4.30% in the week ended November 21, 2014.
US consumer spending rose 0.20 percent in October, versus economists' expectations for a 0.40 percent growth.
Initial jobless claims rose 21,000 to 313,000 in the week ended November 22. However, economists were projecting claims to reach 287,000 in the week.
U.S. durable goods orders gained 0.40% in October, versus economists' expectations for a 0.60 percent decline.
The Chicago PMI fell to 60.80 in November, versus a prior reading of 66.20. However, economists were expecting a reading of 63.10.
The final reading of Reuter's/University of Michigan's consumer sentiment index slipped to 88.80 in November, versus a prior reading of 89.40. However, economists were expecting a reading of 90.00.
Sales of new homes rose 0.7 percent to an annual rate of 458,000 in October. However, economists were estimating a rate of 471,000.
The pending home sales index declined 1.1 percent to 104.1 in October, from 105.3 in September.
U.S. crude inventories increased by 1.9 million barrels last week, according to the Energy Information Administration. However, analysts were expecting stocks to decline by 100,000 in the week.
Data on farm prices for November will be released at 3:00 p.m. ET.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Free Trading Education - Check out the free events taking place on Marketfy this week. Spaces are limited. Sign up today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Midway through trading Wednesday, the Dow traded down 0.09 percent to 17,798.95 while the NASDAQ gained 0.36 percent to 4,775.17. Leading and Lagging Sectors In trading on Wednesday, telecommunications services shares were relative leaders, up on the day by about 0.58 percent. Top gainers in the sector included CalAmp (NASDAQ: CAMP ), up 3.4 percent, and BT Group plc (NYSE: BT ), up 2.7 percent.
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Top losers in the sector included SeaDrill (NYSE: SDRL ), Diamond Offshore Drilling (NYSE: DO ), and Pacific Drilling S.A. (NYSE: PACD ). Its revenue declined 5 percent to $8.97 billion, while equipment sales slipped 7 percent. Midway through trading Wednesday, the Dow traded down 0.09 percent to 17,798.95 while the NASDAQ gained 0.36 percent to 4,775.17.
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The eurozone's STOXX 600 rose 0.03 percent, the Spanish Ibex Index dropped 0.48 percent, while Italy's FTSE MIB Index slipped 0.36 percent. Midway through trading Wednesday, the Dow traded down 0.09 percent to 17,798.95 while the NASDAQ gained 0.36 percent to 4,775.17. Leading and Lagging Sectors In trading on Wednesday, telecommunications services shares were relative leaders, up on the day by about 0.58 percent.
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Midway through trading Wednesday, the Dow traded down 0.09 percent to 17,798.95 while the NASDAQ gained 0.36 percent to 4,775.17. v Energy sector was the top decliner in the US market on Wednesday. However, analysts were expecting stocks to decline by 100,000 in the week.
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722870.0
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2014-11-26 00:00:00 UTC
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Consumer Sector Update for 11/26/2014: HTZ, DE
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https://www.nasdaq.com/articles/consumer-sector-update-11262014-htz-de-2014-11-26
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Top Consumer Shares:
WMT: +0.2%
MCD: -1.1%
DIS: +0.1%
CVS: +0.8%
KO: -0.7%
GE: +0.2%
Consumer shares were generally higher ahead of the opening bell Wednesday.
Deere ( DE ) was down 2.3% at $85.76 after the agricultural-equipment maker reported Q4 net income was $1.83 per share, above the Thomson Reuters mean $1.57. Sales were $8.965 billion, above estimates for $7.75 billion. Shares of the equipment maker were last up 0.24% in pre-market trade.
Hertz Global Holdings ( HTZ ) edged up after a regulatory filing late Tuesday revealed investor Carl Icahn raised his stake in the rental-car company to 10.77% from 8.48%. The billionaire was already HTZ's largest shareholder and in the past few months had successfully pushed for management changes and won board seats on the company. HTZ was recently up 1.6% in pre-market trading .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere ( DE ) was down 2.3% at $85.76 after the agricultural-equipment maker reported Q4 net income was $1.83 per share, above the Thomson Reuters mean $1.57. The billionaire was already HTZ's largest shareholder and in the past few months had successfully pushed for management changes and won board seats on the company. Shares of the equipment maker were last up 0.24% in pre-market trade.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere ( DE ) was down 2.3% at $85.76 after the agricultural-equipment maker reported Q4 net income was $1.83 per share, above the Thomson Reuters mean $1.57. Shares of the equipment maker were last up 0.24% in pre-market trade.
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Deere ( DE ) was down 2.3% at $85.76 after the agricultural-equipment maker reported Q4 net income was $1.83 per share, above the Thomson Reuters mean $1.57. Shares of the equipment maker were last up 0.24% in pre-market trade. The billionaire was already HTZ's largest shareholder and in the past few months had successfully pushed for management changes and won board seats on the company.
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Shares of the equipment maker were last up 0.24% in pre-market trade. Deere ( DE ) was down 2.3% at $85.76 after the agricultural-equipment maker reported Q4 net income was $1.83 per share, above the Thomson Reuters mean $1.57. The billionaire was already HTZ's largest shareholder and in the past few months had successfully pushed for management changes and won board seats on the company.
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64efa0ff-bfeb-4fe6-87da-ddc5efab6e2f
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722871.0
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2014-11-25 00:00:00 UTC
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Pre-Market Earnings Report for November 26, 2014 : DE, SDRL, SDLP, SOL, NPD
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-november-26-2014-de-sdrl-sdlp-sol-npd-2014-11-25
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nan
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nan
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The following companies are expected to report earnings prior to market open on 11/26/2014. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company ( DE ) is reporting for the quarter ending October 31, 2014. The farm machinery company's consensus earnings per share forecast from the 13 analysts that follow the stock is $1.58. This value represents a 25.12% decrease compared to the same quarter last year. In the past year DE has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 6.39%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for DE is 10.44 vs. an industry ratio of 6.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Seadrill Limited ( SDRL ) is reporting for the quarter ending September 30, 2014. The oil & gas drilling company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.68. This value represents a 13.33% increase compared to the same quarter last year. Zacks Investment Research reports that the 2014 Price to Earnings ratio for SDRL is 7.08 vs. an industry ratio of 5.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Seadrill Partners LLC ( SDLP ) is reporting for the quarter ending September 30, 2014. The oil & gas drilling company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.69. This value represents a 43.75% increase compared to the same quarter last year. SDLP missed the consensus earnings per share in the 1st calendar quarter of 2014 by -20.93%. Zacks Investment Research reports that the 2014 Price to Earnings ratio for SDLP is 8.72 vs. an industry ratio of 5.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Renesola Ltd. ( SOL ) is reporting for the quarter ending September 30, 2014. The solar company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.05. This value represents a 16.67% decrease compared to the same quarter last year. SOL missed the consensus earnings per share in the 1st calendar quarter of 2014 by -180%. Zacks Investment Research reports that the Price to Earnings ratio for SOL is 0.00 vs. an industry ratio of 1.60.
China Nepstar Chain Drugstore Ltd ( NPD ) is reporting for the quarter ending September 30, 2014. The drug store company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.02. This value represents a 100.00% decrease compared to the same quarter last year. In the past year NPDThe days to cover, as reported in the 10/31/2014 short interest update, increased 127.04% from previous report on 10/15/2014. Zacks Investment Research reports that the 2014 Price to Earnings ratio for NPD is -22.88 vs. an industry ratio of 15.00.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company ( DE ) is reporting for the quarter ending October 31, 2014. This value represents a 25.12% decrease compared to the same quarter last year. In the past year DE has beat the expectations every quarter.
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Zacks Investment Research reports that the 2014 Price to Earnings ratio for DE is 10.44 vs. an industry ratio of 6.60, implying that they will have a higher earnings growth than their competitors in the same industry. Deere & Company ( DE ) is reporting for the quarter ending October 31, 2014. This value represents a 25.12% decrease compared to the same quarter last year.
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Zacks Investment Research reports that the 2014 Price to Earnings ratio for DE is 10.44 vs. an industry ratio of 6.60, implying that they will have a higher earnings growth than their competitors in the same industry. Deere & Company ( DE ) is reporting for the quarter ending October 31, 2014. This value represents a 25.12% decrease compared to the same quarter last year.
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In the past year DE has beat the expectations every quarter. Deere & Company ( DE ) is reporting for the quarter ending October 31, 2014. This value represents a 25.12% decrease compared to the same quarter last year.
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d376d3c5-a99c-4cbc-9a88-ebb88baaea8c
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722872.0
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2014-11-24 00:00:00 UTC
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Will Deere & Company (DE) Disappoint this Earnings Season? - Analyst Blog
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DE
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https://www.nasdaq.com/articles/will-deere-company-de-disappoint-this-earnings-season-analyst-blog-2014-11-24
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nan
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nan
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Deere & Company ( DE ), the worldwide producer and distributor of agricultural and forestry equipment, construction equipment and engines, is slated to report fourth-quarter fiscal 2014 results before the market opens on Nov 26, 2014. In the last quarter, it posted a positive surprise of 6.39%. On an average, Deere has posted a 12.08% positive surprise in the last four quarters. Let's see how things are shaping up for the fourth quarter.
Factors Influencing this Quarter
Deere reported third-quarter fiscal 2014 earnings of $2.33 a share, down 9% due to lower shipment volumes, higher production costs primarily related to engine-emission requirements and unfavorable effects of foreign-currency exchange, partially offset by benefits from price realization.
Deere expects equipment sales to decrease around 8% year over year in the fourth quarter of fiscal 2014. For the full year, Deere trimmed its forecast to a 6% drop from the previous expectation of a 4% dip. Deere also lowered its net income projection to $3.1 billion from $3.3 billion for fiscal 2014.
Segment-wise, Deere expects Agriculture and Turf equipment sales to decline 10% during fiscal 2014, down from the previous expectation of a 7% drop. Region-wise, it anticipates that industry farm machinery sales in the U.S. and Canada will decline around 10% year over year in fiscal 2014. In Europe, sales are projected to be down 5% due to lower commodity prices and farm income. Sales in the Commonwealth of Independent States are expected to be significantly lower, while in Asia sales are expected to be flat year over year. In South America, industry sales of tractors and combines are expected to decline by 15% year over year.
Deere expects sales growth of turf and utility equipment in the U.S. and Canada to range from flat to up 5%. The company foresees global sales for Construction & Forestry equipment to advance about 10%, partly because of the recovery in the U.S. economy and a rise in housing starts. Global forestry sales are expected to be higher, driven by economic growth and higher sales in the European markets. Net income from Financial Services is estimated at around $600 million.
Moreover, the U.S. Department of Agriculture (USDA) estimated U.S. 2014 net farm income to be $113.2 billion, down about 14% from 2013 forecast of $131.3 billion. Lower crop prices and farm income will negatively impact agriculture equipment demand during the rest of the year in turn affecting earnings of the company. Deere will nevertheless benefit from recovery in the construction sector.
Earnings Whispers?
Our proven model does not conclusively show that Deere is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below.
Zacks ESP: Deere has an Earnings ESP (Expected Surprise Prediction) of 13.21%. This is because the Most Accurate estimate stands at $1.80 per share, higher than the Zacks Consensus Estimate of $1.59, resulting in 13.21% ESP.
Zacks Rank: Note that stocks with Zacks Rank #1, 2 and 3 have a significantly higher chance of beating earnings estimates. We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially if the company is seeing negative estimate revisions. Deere's Zacks Rank #4 (Sell) combined with a 13.21% ESP makes surprise prediction difficult.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings surprise:
Park-Ohio Holdings Corp. ( PKOH ) has an earnings ESP of +1.57% and a Zacks Rank #3 (Hold).
Pall Corporation ( PLL ) has an earnings ESP of +2.50% and a Zacks Rank #3.
Crown Holdings Inc. ( CCK ) has an earnings ESP of +4.17% and a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
PALL CORP (PLL): Free Stock Analysis Report
CROWN HLDGS INC (CCK): Free Stock Analysis Report
PARK OHIO HLDNG (PKOH): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factors Influencing this Quarter Deere reported third-quarter fiscal 2014 earnings of $2.33 a share, down 9% due to lower shipment volumes, higher production costs primarily related to engine-emission requirements and unfavorable effects of foreign-currency exchange, partially offset by benefits from price realization. Lower crop prices and farm income will negatively impact agriculture equipment demand during the rest of the year in turn affecting earnings of the company. Deere & Company ( DE ), the worldwide producer and distributor of agricultural and forestry equipment, construction equipment and engines, is slated to report fourth-quarter fiscal 2014 results before the market opens on Nov 26, 2014.
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Segment-wise, Deere expects Agriculture and Turf equipment sales to decline 10% during fiscal 2014, down from the previous expectation of a 7% drop. Zacks ESP: Deere has an Earnings ESP (Expected Surprise Prediction) of 13.21%. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report PALL CORP (PLL): Free Stock Analysis Report CROWN HLDGS INC (CCK): Free Stock Analysis Report PARK OHIO HLDNG (PKOH): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks that Warrant a Look Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings surprise: Park-Ohio Holdings Corp. ( PKOH ) has an earnings ESP of +1.57% and a Zacks Rank #3 (Hold). Click to get this free report DEERE & CO (DE): Free Stock Analysis Report PALL CORP (PLL): Free Stock Analysis Report CROWN HLDGS INC (CCK): Free Stock Analysis Report PARK OHIO HLDNG (PKOH): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company ( DE ), the worldwide producer and distributor of agricultural and forestry equipment, construction equipment and engines, is slated to report fourth-quarter fiscal 2014 results before the market opens on Nov 26, 2014.
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Deere & Company ( DE ), the worldwide producer and distributor of agricultural and forestry equipment, construction equipment and engines, is slated to report fourth-quarter fiscal 2014 results before the market opens on Nov 26, 2014. Deere expects equipment sales to decrease around 8% year over year in the fourth quarter of fiscal 2014. On an average, Deere has posted a 12.08% positive surprise in the last four quarters.
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e5da1f81-aa78-47f1-a8e4-27f760ec6d1c
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722873.0
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2014-11-15 00:00:00 UTC
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Warren Buffett’s Berkshire Hathaway Sells Stake in John Deere and Buys More DirecTV Stock
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DE
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https://www.nasdaq.com/articles/warren-buffetts-berkshire-hathaway-sells-stake-john-deere-and-buys-more-directv-stock-2014
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nan
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nan
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After the market closed today Warren Buffett's Berkshire Hathaway disclosed its latest stock holdings as of September 30, 2014 with the SEC.
While the value of its portfolio was unchanged at $108 billion relative to the end of June and it continued told hold 46 stocks, there were still a number of changes to take note of.
The buying and selling
In terms of selling entire positions in companies it formerly held, and making investments in new ones, there were two primary moves made by Berkshire. The biggest was that investors learned Berkshire Hathaway sold its entire $360 million stake in Deere & Company , the manufacturer of John Deere tractors.
The continued closing of a chapter
As you can see in the table to the right outlining all the moves made by Berkshire Hathaway, apart from the complete unloading of Deere & Co., Berkshire's biggest sell off came from it continuing to unload its stake in energy and oil company ConocoPhillips .
In December of 2008 Berkshire's stake in the firm was valued at $7 billion, but the value of the stock began to plummet, and Buffett once noted "the terrible timing of my purchase [of ConocoPhillips] has cost Berkshire several billion dollars."
He has noted the decision to purchase a stake in the firm when he did was one of his biggest mistakes . But soon enough, that decision will be behind him.
The final thing to note
As previously mentioned, it's also important to remember in the case of many of these smaller moves, Buffett may not have been the one who made the final decision on whether or not Berkshire should buy or sell its investment in any of these businesses.
Just this morning the Wall Street Journal reported Todd Combs and Ted Weschler each now manage a portfolio worth roughly $9 billion for Berkshire Hathaway.
But no matter who makes the moves, they're important to watch, because as Buffett noted in this year's letter to shareholders:
In most circumstances following the crowd is never a good thing, but if you were ever going to mimic one in the investing world, this one would likely be it.
Warren Buffett: This new technology is a "real threat"
While we know what Berkshire Hathaway is buying and selling, we also know what it is afraid of. You see, at the annual meeting, Warren Buffett admitted this emerging technology is threatening his biggest cash-cow. Buffett's fear can be your gain. Only a few investors are embracing this new market, which experts say will be worth over $2 trillion . Find out how you can cash in on this technology before the crowd catches on, by jumping onto one company that could get you the biggest piece of the action. Click here to access a free investor alert on the company we're calling the brains behind the technology.
The article Warren Buffett's Berkshire Hathaway Sells Stake in John Deere and Buys More DirecTV Stock originally appeared on Fool.com.
Patrick Morris owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway and Express Scripts. The Motley Fool owns shares of Berkshire Hathaway and Express Scripts. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But no matter who makes the moves, they're important to watch, because as Buffett noted in this year's letter to shareholders: In most circumstances following the crowd is never a good thing, but if you were ever going to mimic one in the investing world, this one would likely be it. The article Warren Buffett's Berkshire Hathaway Sells Stake in John Deere and Buys More DirecTV Stock originally appeared on Fool.com. The buying and selling In terms of selling entire positions in companies it formerly held, and making investments in new ones, there were two primary moves made by Berkshire.
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The article Warren Buffett's Berkshire Hathaway Sells Stake in John Deere and Buys More DirecTV Stock originally appeared on Fool.com. The buying and selling In terms of selling entire positions in companies it formerly held, and making investments in new ones, there were two primary moves made by Berkshire. The biggest was that investors learned Berkshire Hathaway sold its entire $360 million stake in Deere & Company , the manufacturer of John Deere tractors.
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The continued closing of a chapter As you can see in the table to the right outlining all the moves made by Berkshire Hathaway, apart from the complete unloading of Deere & Co., Berkshire's biggest sell off came from it continuing to unload its stake in energy and oil company ConocoPhillips . In December of 2008 Berkshire's stake in the firm was valued at $7 billion, but the value of the stock began to plummet, and Buffett once noted "the terrible timing of my purchase [of ConocoPhillips] has cost Berkshire several billion dollars." The article Warren Buffett's Berkshire Hathaway Sells Stake in John Deere and Buys More DirecTV Stock originally appeared on Fool.com.
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The buying and selling In terms of selling entire positions in companies it formerly held, and making investments in new ones, there were two primary moves made by Berkshire. The biggest was that investors learned Berkshire Hathaway sold its entire $360 million stake in Deere & Company , the manufacturer of John Deere tractors. The continued closing of a chapter As you can see in the table to the right outlining all the moves made by Berkshire Hathaway, apart from the complete unloading of Deere & Co., Berkshire's biggest sell off came from it continuing to unload its stake in energy and oil company ConocoPhillips .
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e5e3b8a1-70d2-458b-9ae6-5d93771d94e1
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722874.0
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2014-11-06 00:00:00 UTC
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Deere (DE) Shares Cross Above 200 DMA
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DE
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https://www.nasdaq.com/articles/deere-de-shares-cross-above-200-dma-2014-11-06
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nan
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In trading on Thursday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $87.58, changing hands as high as $87.92 per share. Deere & Co. shares are currently trading up about 3.4% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $87.87.
According to the ETF Finder at ETF Channel, DE makes up 7.73% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.3% on the day Thursday.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $87.58, changing hands as high as $87.92 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $87.87. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $87.58, changing hands as high as $87.92 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $87.87. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $87.58, changing hands as high as $87.92 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $78.88 per share, with $94.89 as the 52 week high point - that compares with a last trade of $87.87. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $87.58, changing hands as high as $87.92 per share. According to the ETF Finder at ETF Channel, DE makes up 7.73% of the iShares MSCI Global Agriculture Producers ETF (Symbol: VEGI) which is trading lower by about 0.3% on the day Thursday. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2054e676-fc4e-43ed-9c4e-b2da2680902d
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722875.0
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2014-10-18 00:00:00 UTC
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Is Now the Time to Buy Caterpillar Inc. Stock?
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DE
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https://www.nasdaq.com/articles/now-time-buy-caterpillar-inc-stock-2014-10-18
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nan
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nan
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It's turning out to be a disappointing second half for Caterpillar investors. After a strong start to the year, the stock has given up 12% over just the past month, leaving some investors jittery.
But those who have followed Caterpillar for years will also know that despite major headwinds in recent times, the stock has handily beaten the Dow Jones Industrials over the past decade.
CAT Total Return Price data by YCharts
Given Caterpillar's solid performance over the years, doesn't the recent dip in the stock price then look like a good opportunity? Before jumping to a conclusion, you need to find out whether the stock's a better bargain than peers right now; and if yes, why.
Poised to reach new heights
Notwithstanding the challenging times that Caterpillar has had to face over the past couple of years, it considers itself a compelling story for long-term investors. To convince them about its growth potential, Caterpillar stressed on the following strengths in one of its recent presentations.
Global leadership is perhaps the biggest reason why investors should pay attention to Caterpillar. The company runs three primary businesses - Resource Industries (mining equipment), Construction Industries, and Energy & Transportation. Today, Caterpillar is not only the world's largest construction and mining-equipment maker, but is also the leading producer of engines (diesel and natural gas), gas turbines, and diesel-electric rail locomotives.
Considering the diverse nature of Caterpillar's business, volatility in sales and earnings is inevitable. Caterpillar gave an excellent insight into how cyclicality has affected its sales over the years in the following graph.
Source: Caterpillar presentation at ConExpo 2014
Knowing how unpredictable things can get, Caterpillar is now strengthening several areas of its business to equip itself better to handle future cyclical downswings. One of them is an initiative to revamp its massive dealership network.
Caterpillar has chalked out a series of steps to improve its dealers' performances. The potential looks huge - Caterpillar expects to add an extra $9 billion to its top line if dealers hit median quartile performance and nearly $18 billion if they hit top quartile, all within the next four years. That additional revenue should provide excellent support to the company if economic conditions were to weaken in coming years. Moreover, considering that its dealership network is one of Caterpillar's strongest competitive advantages, any efforts to strengthen it further is a step in the right direction.
In its drive to grow, Caterpillar isn't forgetting its shareholders. It aspires to be in the top quartile of S&P 500 in terms of total shareholder returns. And the company has identified achieving 15% compounded average growth in its profits as a key step toward that goal. In other words, Caterpillar is striving to boost its bottom line, and wants to return a lot more to its investors in the years to come.
But while all of that sounds good enough to have Caterpillar on your radar, the question is whether this is the right time to buy the stock. Let's dig deeper into its valuation to get the answer.
Caterpillar or peers?
Caterpillar primarily competes with Joy Global in its mining-equipment business, John Deere in construction equipment, and Cummins in its engines business. Let's take a look at how Caterpillar's stock stacks up next to these peers:
Source: Yahoo! Finance
Caterpillar looks like a fairly good bargain going by the earnings multiples. While it shares have a similar valuation with Cummins, it certainly is a better buy compared to Joy Global, given Caterpillar's diversity vis-à-vis Joy's huge exposure to the struggling mining industry.
Deere may look like a grab at such a low trailing earnings multiple, but its double-digit forward P/E suggests that the Street expects its earnings to weaken in the near future. That isn't surprising, given the looming fears that the farm-equipment (which is Deere's primary business) industry could be entering a downcycle . In contrast, analysts are hopeful about Caterpillar's future earnings, as evidenced by its lower forward earnings multiple. Much of the optimism is backed by the ongoing strength in the U.S. construction industry and the resilience shown by the company's high-margin energy and transportation business.
But you can't rely on one metric when it's a question of investing your hard-earned money. So let's test Caterpillar based on price-to-book value, an extremely useful measure for capital-intensive companies that carry heavy assets on their books.
At first blush, Caterpillar looks like one of the expensive stocks out there, trading at nearly thrice its book value. But the stock may not necessarily be overvalued.
With the mining slowdown taking a toll on Caterpillar's earnings over the past couple of years, the company's return on equity, or simply the return that it generates to shareholders, dropped substantially - Its current ROE stands at 20%, compared to near 41% in 2011. At the same time, Caterpillar's P/B (where "B" is nearly the same as "E" in ROE) also fell sharply from nearly 4.6 in 2011 to 2.8 in 2013. In other words, the market timely factored in the slowdown in the company's earnings and accordingly bid its stock price (which is simply the "P" in P/B) lower. That, coupled with the fact that Caterpillar is also trading much below its five-year average P/B of 4.1, suggests that the stock is anything but overvalued today.
So should you add Caterpillar to your radar?
Yes, by all means, if you believe in the buy-and-hold strategy. Caterpillar is strong from several aspects , which makes it a great company to invest in. But as a cyclical company, its earnings, and hence its share price, are bound to be volatile. If you can stomach that volatility, Caterpillar is worth a look.
If you love regular income, you'll love this
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The article Is Now the Time to Buy Caterpillar Inc. Stock? originally appeared on Fool.com.
Neha Chamaria has no position in any stocks mentioned. The Motley Fool recommends Cummins. The Motley Fool owns shares of Cummins. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But those who have followed Caterpillar for years will also know that despite major headwinds in recent times, the stock has handily beaten the Dow Jones Industrials over the past decade. Poised to reach new heights Notwithstanding the challenging times that Caterpillar has had to face over the past couple of years, it considers itself a compelling story for long-term investors. Global leadership is perhaps the biggest reason why investors should pay attention to Caterpillar.
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The potential looks huge - Caterpillar expects to add an extra $9 billion to its top line if dealers hit median quartile performance and nearly $18 billion if they hit top quartile, all within the next four years. But those who have followed Caterpillar for years will also know that despite major headwinds in recent times, the stock has handily beaten the Dow Jones Industrials over the past decade. Poised to reach new heights Notwithstanding the challenging times that Caterpillar has had to face over the past couple of years, it considers itself a compelling story for long-term investors.
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With the mining slowdown taking a toll on Caterpillar's earnings over the past couple of years, the company's return on equity, or simply the return that it generates to shareholders, dropped substantially - Its current ROE stands at 20%, compared to near 41% in 2011. But those who have followed Caterpillar for years will also know that despite major headwinds in recent times, the stock has handily beaten the Dow Jones Industrials over the past decade. Poised to reach new heights Notwithstanding the challenging times that Caterpillar has had to face over the past couple of years, it considers itself a compelling story for long-term investors.
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Caterpillar primarily competes with Joy Global in its mining-equipment business, John Deere in construction equipment, and Cummins in its engines business. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. But those who have followed Caterpillar for years will also know that despite major headwinds in recent times, the stock has handily beaten the Dow Jones Industrials over the past decade.
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54883250-29c1-4918-8739-17db1ce8f34c
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722876.0
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2014-10-17 00:00:00 UTC
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Better Dividend Stock: Caterpillar Inc. or Deere & Company?
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DE
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https://www.nasdaq.com/articles/better-dividend-stock-caterpillar-inc-or-deere-company-2014-10-17
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nan
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nan
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To proclaim that dividend stocks are a critical component of every portfolio is probably a huge understatement. Dividends, and the ability to reinvest those dividend payments over time, can be the difference between simply retiring and retiring comfortably, the way you want.
Of course, not all dividends are created equally. Some dividends are simply so small you'll need a microscope to analyze them, while others might be unsustainable due to either an overzealous payout ratio or a deeper flaw in the underlying business model. In order to decipher whether or not a dividend is truly investment-worthy we need to be able to dig beneath the surface and examine the growth, value, and sustainability of not only the dividend itself, but the business behind the dividend.
The farm and heavy construction industry, for example, is a haven for dividend investors, with all 12 companies valued over $400 million paying a dividend, including Caterpillar with its 3% yield and Deere with an equally impressive 2.8% yield. Yet yield alone doesn't tell us much. That's why we'll take a closer look at the growth, value, and sustainability of the payout and business model of these two companies to determine which truly is the better dividend stock.
Growth
I know what you're probably thinking, and you're correct: "Growth" is sort of a misleading term for both Caterpillar and Deere at the moment.
CAT Dividend data by YCharts .
Both companies, as we've established above, also have size and geographic diversification on their side, which means both present favorable long-term business outlooks.
The differentiating factor here, as I see it, is the dividend payout ratio, which in plainer terms tells us how much profit the company is willing to return to shareholders. Though Deere has delivered more impressive dividend growth in recent years, Caterpillar has consistently paid out a greater portion of its profits to shareholders, which I find far more appealing. Projected to pay out just 39% of its 2015 EPS, Caterpillar has plenty of room to further boost this payout, especially considering that Caterpillar has averaged nearly $2.8 billion in free cash flow since 2005.
The better dividend stocks is...
After carefully weighing both heavy-duty machine manufacturers, and noting the extreme similarities between the two with regard to their valuations and growth prospects, I'm willing to declare Caterpillar the better dividend stock. Caterpillar offers a slightly higher yield than Deere and shares more of its profits with its shareholders, and management has done a fantastic job of proactively managing expenses during the downturn.
Want more high-yield dividend ideas? They're just one click away!
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here .
The article Better Dividend Stock: Caterpillar Inc. or Deere & Company? originally appeared on Fool.com.
Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insights makes us better investors. The Motley Fool has adisclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some dividends are simply so small you'll need a microscope to analyze them, while others might be unsustainable due to either an overzealous payout ratio or a deeper flaw in the underlying business model. The differentiating factor here, as I see it, is the dividend payout ratio, which in plainer terms tells us how much profit the company is willing to return to shareholders. Though Deere has delivered more impressive dividend growth in recent years, Caterpillar has consistently paid out a greater portion of its profits to shareholders, which I find far more appealing.
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The farm and heavy construction industry, for example, is a haven for dividend investors, with all 12 companies valued over $400 million paying a dividend, including Caterpillar with its 3% yield and Deere with an equally impressive 2.8% yield. The article Better Dividend Stock: Caterpillar Inc. or Deere & Company? To proclaim that dividend stocks are a critical component of every portfolio is probably a huge understatement.
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In order to decipher whether or not a dividend is truly investment-worthy we need to be able to dig beneath the surface and examine the growth, value, and sustainability of not only the dividend itself, but the business behind the dividend. The farm and heavy construction industry, for example, is a haven for dividend investors, with all 12 companies valued over $400 million paying a dividend, including Caterpillar with its 3% yield and Deere with an equally impressive 2.8% yield. The better dividend stocks is... After carefully weighing both heavy-duty machine manufacturers, and noting the extreme similarities between the two with regard to their valuations and growth prospects, I'm willing to declare Caterpillar the better dividend stock.
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That's why we'll take a closer look at the growth, value, and sustainability of the payout and business model of these two companies to determine which truly is the better dividend stock. The article Better Dividend Stock: Caterpillar Inc. or Deere & Company? To proclaim that dividend stocks are a critical component of every portfolio is probably a huge understatement.
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d756c101-5291-4804-9ebb-cabfd92d9c9f
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722877.0
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2014-10-16 00:00:00 UTC
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Contributor Call: Short John Deere, Says BluePac's Chris Sommers
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DE
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https://www.nasdaq.com/articles/contributor-call-short-john-deere-says-bluepacs-chris-sommers-2014-10-16
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nan
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nan
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By BluePac Partners :
Hedgeye CEO Keith McCullough talks to Seeking Alpha Contributor and BluePac managing partner Chris Sommers about Sommers' high conviction short idea, John Deere. It's the latest from Seeking Alpha's video series with Hedgeye Risk Management. You can access BluePac's full presentation on Deere here .
Disclosure : BluePac Partners is short DE.
See also AmerisourceBergen Must Maintain It Growth Rate on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By BluePac Partners : Hedgeye CEO Keith McCullough talks to Seeking Alpha Contributor and BluePac managing partner Chris Sommers about Sommers' high conviction short idea, John Deere. It's the latest from Seeking Alpha's video series with Hedgeye Risk Management. You can access BluePac's full presentation on Deere here .
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By BluePac Partners : Hedgeye CEO Keith McCullough talks to Seeking Alpha Contributor and BluePac managing partner Chris Sommers about Sommers' high conviction short idea, John Deere. It's the latest from Seeking Alpha's video series with Hedgeye Risk Management. You can access BluePac's full presentation on Deere here .
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By BluePac Partners : Hedgeye CEO Keith McCullough talks to Seeking Alpha Contributor and BluePac managing partner Chris Sommers about Sommers' high conviction short idea, John Deere. It's the latest from Seeking Alpha's video series with Hedgeye Risk Management. You can access BluePac's full presentation on Deere here .
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By BluePac Partners : Hedgeye CEO Keith McCullough talks to Seeking Alpha Contributor and BluePac managing partner Chris Sommers about Sommers' high conviction short idea, John Deere. You can access BluePac's full presentation on Deere here . It's the latest from Seeking Alpha's video series with Hedgeye Risk Management.
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bc174e51-fbbf-4139-8a1d-628a769c9c3d
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722878.0
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2014-10-09 00:00:00 UTC
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Closing Update: Carnage on Wall Street as Investors Fret Over Europe, Earnings
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DE
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https://www.nasdaq.com/articles/closing-update-carnage-wall-street-investors-fret-over-europe-earnings-2014-10-09
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nan
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nan
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Heavy profit-taking pressure coupled with lingering worries surrounding the global economy sent stocks into a freefall on Thursday, erasing all of Wednesday's gains that resulted from the most recent FOMC minutes. The carnage on Wall Street was heaviest in the energy sector, but losses were widespread especially for industrial, financial and consumer discretionary stocks. The Dow Jones Industrial Average fell dangerously close to its 200-day moving average, while the S&P 500 slipped below key support at 1930.
More negative economic data out of Germany, disappointing comments from ECB President Draghi and yesterday's exaggerated FOMC-fueled run-up in prices also had a hand in one of the biggest declines on Wall Street this year. And while equities were drifting lower from the open, selling pressure rapidly accelerated after Draghi pointed the finger at the lack of structural reforms for Europe's economic woes, magnifying jitters over a possible recession across most of the continent.
Although most of today's earnings were upbeat, including results from Alcoa ( AA ), Pepsi ( PEP ) and Ruby Tuesday ( RT ), investors are growing uneasy that upcoming earnings from multi-nationals like Deere ( DE ) and Visa ( V ) which rely heavily on a cheap dollar could be adversely impacted from the U.S. currency's meteoric rise. The FOMC September minutes warned that both the global economy and rising dollar could have an impact on Fed policy.
Here's where the markets stand at the close:
US MARKETS
Dow Jones Industrial Index was down 335 (-1.97%) at 16,659
S&P 500 was down 41 (-2.1%) at 1,928
Nasdaq Composite Index was down 91 (-2%) at 4,378
GLOBAL SENTIMENT
FTSE 100 was down 0.78%
Nikkei 225 was down 0.75%
Hang Seng Index was up 1.17%
Shanghai China Composite Index was up 0.28%
UPSIDE MOVERS
(+) RT Reported better-than-expected earnings and improvement in same-restaurant sales
(+) IPXL Buys Tower Holdings and Lineage Therapeutics for $700 mln
(+) AUXL To be acquired by Endo International (ENDP) for $2.6 billion
DOWNSIDE MOVERS
(-) ORBT Plans voluntary de-listing citing cost of compliance
(-) DEST Expects Q4 loss
(-) KFX Missed Q1 forecasts, FY 15 guidance lowered
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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More negative economic data out of Germany, disappointing comments from ECB President Draghi and yesterday's exaggerated FOMC-fueled run-up in prices also had a hand in one of the biggest declines on Wall Street this year. The carnage on Wall Street was heaviest in the energy sector, but losses were widespread especially for industrial, financial and consumer discretionary stocks. Although most of today's earnings were upbeat, including results from Alcoa ( AA ), Pepsi ( PEP ) and Ruby Tuesday ( RT ), investors are growing uneasy that upcoming earnings from multi-nationals like Deere ( DE ) and Visa ( V ) which rely heavily on a cheap dollar could be adversely impacted from the U.S. currency's meteoric rise.
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Dow Jones Industrial Index was down 335 (-1.97%) at 16,659 S&P 500 was down 41 (-2.1%) at 1,928 Nasdaq Composite Index was down 91 (-2%) at 4,378 (-) ORBT Plans voluntary de-listing citing cost of compliance (-) DEST Expects Q4 loss (-) KFX Missed Q1 forecasts, FY 15 guidance lowered The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The carnage on Wall Street was heaviest in the energy sector, but losses were widespread especially for industrial, financial and consumer discretionary stocks.
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Although most of today's earnings were upbeat, including results from Alcoa ( AA ), Pepsi ( PEP ) and Ruby Tuesday ( RT ), investors are growing uneasy that upcoming earnings from multi-nationals like Deere ( DE ) and Visa ( V ) which rely heavily on a cheap dollar could be adversely impacted from the U.S. currency's meteoric rise. Dow Jones Industrial Index was down 335 (-1.97%) at 16,659 S&P 500 was down 41 (-2.1%) at 1,928 Nasdaq Composite Index was down 91 (-2%) at 4,378 (-) ORBT Plans voluntary de-listing citing cost of compliance (-) DEST Expects Q4 loss (-) KFX Missed Q1 forecasts, FY 15 guidance lowered The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dow Jones Industrial Index was down 335 (-1.97%) at 16,659 S&P 500 was down 41 (-2.1%) at 1,928 Nasdaq Composite Index was down 91 (-2%) at 4,378 The carnage on Wall Street was heaviest in the energy sector, but losses were widespread especially for industrial, financial and consumer discretionary stocks. More negative economic data out of Germany, disappointing comments from ECB President Draghi and yesterday's exaggerated FOMC-fueled run-up in prices also had a hand in one of the biggest declines on Wall Street this year.
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5a17b8ad-753b-4916-8ac4-5676c03dec42
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722879.0
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2014-09-29 00:00:00 UTC
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Sector Update: Consumer Shares Mixed in Pre-Market Trade
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DE
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https://www.nasdaq.com/articles/sector-update-consumer-shares-mixed-pre-market-trade-2014-09-29
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nan
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nan
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Top Consumer Shares:
WMT: flat
MCD: flat
DIS: -0.61%
CVS: flat
KO: -0.62%
GE: -0.86%
Consumer shares were mixed ahead of the opening bell Monday.
In consumer stocks news, Deere & Company ( DE ), a manufacturer of agricultural, construction, and forestry machinery, has had its price target lowered by analysts at Credit Suisse to $95 from $98 a share. The firm maintained its outperform rating on the stock.
Shares of DE were down 0.49% to $82.42 in Monday's pre-market activity, trading within a 52-week range of $80.76 - $94.89.
And, footwear, apparel and athletic equipment maker Nike, Inc. ( NKE ) has been upgraded by analysts at Credit Suisse to an outperform rating from neutral. Price target information was not available.
In Monday's pre-market activity, shares of NKE were down 0.58% to $88.98, trading within a 52-week range of $69.85 - $89.99.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In consumer stocks news, Deere & Company ( DE ), a manufacturer of agricultural, construction, and forestry machinery, has had its price target lowered by analysts at Credit Suisse to $95 from $98 a share. And, footwear, apparel and athletic equipment maker Nike, Inc. ( NKE ) has been upgraded by analysts at Credit Suisse to an outperform rating from neutral. Shares of DE were down 0.49% to $82.42 in Monday's pre-market activity, trading within a 52-week range of $80.76 - $94.89.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In consumer stocks news, Deere & Company ( DE ), a manufacturer of agricultural, construction, and forestry machinery, has had its price target lowered by analysts at Credit Suisse to $95 from $98 a share. Shares of DE were down 0.49% to $82.42 in Monday's pre-market activity, trading within a 52-week range of $80.76 - $94.89.
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In consumer stocks news, Deere & Company ( DE ), a manufacturer of agricultural, construction, and forestry machinery, has had its price target lowered by analysts at Credit Suisse to $95 from $98 a share. Shares of DE were down 0.49% to $82.42 in Monday's pre-market activity, trading within a 52-week range of $80.76 - $94.89. And, footwear, apparel and athletic equipment maker Nike, Inc. ( NKE ) has been upgraded by analysts at Credit Suisse to an outperform rating from neutral.
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In consumer stocks news, Deere & Company ( DE ), a manufacturer of agricultural, construction, and forestry machinery, has had its price target lowered by analysts at Credit Suisse to $95 from $98 a share. Shares of DE were down 0.49% to $82.42 in Monday's pre-market activity, trading within a 52-week range of $80.76 - $94.89. And, footwear, apparel and athletic equipment maker Nike, Inc. ( NKE ) has been upgraded by analysts at Credit Suisse to an outperform rating from neutral.
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48c81b7a-c350-46d2-93b9-d6a2de007582
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722880.0
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2014-09-25 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for September 26, 2014
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DE
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-september-26-2014-2014-09-25
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nan
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nan
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Deere & Company ( DE ) will begin trading ex-dividend on September 26, 2014. A cash dividend payment of $0.6 per share is scheduled to be paid on November 03, 2014. Shareholders who purchased DE stock prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 17.65% increase over the same period a year ago. At the current stock price of $83.77, the dividend yield is 2.86%.
The previous trading day's last sale of DE was $83.77, representing a -11.72% decrease from the 52 week high of $94.89 and a 3.73% increase over the 52 week low of $80.76.
DE is a part of the Capital Goods sector, which includes companies such as Danaher Corporation ( DHR ) and Thermo Fisher Scientific Inc ( TMO ). DE's current earnings per share, an indicator of a company's profitability, is $8.9. Zacks Investment Research reports DE's forecasted earnings growth in 2014 as -7.74%, compared to an industry average of 10%.
For more information on the declaration, record and payment dates, visit the DE Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DE through an Exchange Traded Fund [ETF]?
The following ETF(s) have DE as a top-10 holding:
iShares MSCI Agriculture Producers Fund ( VEGI )
Market Vectors Agribusiness ETF ( MOO )
Market Vectors Natural Resources ETF ( HAP )
PowerShares DWA Industrials Momentum Portfolio ( PRN ).
The top-performing ETF of this group is PRN with an increase of 0.56% over the last 100 days. VEGI has the highest percent weighting of DE at 7.9%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased DE stock prior to the ex-dividend date are eligible for the cash dividend payment. DE is a part of the Capital Goods sector, which includes companies such as Danaher Corporation ( DHR ) and Thermo Fisher Scientific Inc ( TMO ). Zacks Investment Research reports DE's forecasted earnings growth in 2014 as -7.74%, compared to an industry average of 10%.
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The following ETF(s) have DE as a top-10 holding: iShares MSCI Agriculture Producers Fund ( VEGI ) Market Vectors Agribusiness ETF ( MOO ) Market Vectors Natural Resources ETF ( HAP ) PowerShares DWA Industrials Momentum Portfolio ( PRN ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere & Company ( DE ) will begin trading ex-dividend on September 26, 2014.
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Shareholders who purchased DE stock prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of DE was $83.77, representing a -11.72% decrease from the 52 week high of $94.89 and a 3.73% increase over the 52 week low of $80.76. The following ETF(s) have DE as a top-10 holding: iShares MSCI Agriculture Producers Fund ( VEGI ) Market Vectors Agribusiness ETF ( MOO ) Market Vectors Natural Resources ETF ( HAP ) PowerShares DWA Industrials Momentum Portfolio ( PRN ).
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Shareholders who purchased DE stock prior to the ex-dividend date are eligible for the cash dividend payment. DE's current earnings per share, an indicator of a company's profitability, is $8.9. Deere & Company ( DE ) will begin trading ex-dividend on September 26, 2014.
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279c5de3-210a-4b4d-af6d-b56bd4c1202b
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722881.0
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2014-09-24 00:00:00 UTC
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Deere Reviews Strategic Options for Crop Insurance Unit - Analyst Blog
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DE
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https://www.nasdaq.com/articles/deere-reviews-strategic-options-for-crop-insurance-unit-analyst-blog-2014-09-24
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nan
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nan
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Shares of Deere & Company ( DE ) fell 0.5% yesterday after it announced plans to review strategic options for its crop insurance unit to focus on its core businesses. However, no formal decisions had been made and no agreements had been reached yet. Deere hired Citigroup Inc. ( C ) as exclusive financial advisor to assist in the initiative.
Deere has been involved in the crop insurance business for 8 years. The business underwrites policies through John Deere Insurance Company, a business unit within John Deere Financial. However, price declines and falling demand have made the business less profitable in recent years.
Deere will continue to design, manufacture and offer technology, equipment and services in its precision agriculture offerings. Notably, effective risk management remains an important factor for the company's operations.
Deere's earnings per share declined 9% year over year to $2.33. Deere's worldwide total sales also dipped 5% year over year to $9.50 billion.
Additionally, Deere provided a bearish outlook for fiscal 2014. The company expects equipment sales to drop 8% in the ongoing quarter and 6% in fiscal 2014 on weak demand for agricultural machineries. The full-year forecast is down from the previous expectation of a 4% drop.
The company expects global construction and forestry equipment sales to grow about 10% in fiscal 2014 but global sales of agriculture and turf equipment to drop by 10%. Additionally, Deere will scale back its production for the rest of fiscal 2014 in line with demand for agricultural products.
Further, the company reduced its net income guidance for the full year to $3.1 billion from $3.3 billion on falling farm incomes resulting from bumper crop harvest and falling grain prices.
In order to scale back its agricultural equipment production in the wake of weak market demand for its products Deere announced 460 job cuts from its Waterloo plant, after laying off 600 employees in August.
In order to remain competitive, Deere continuously strives to align the size of its manufacturing workforce with market demand for products. Deere has also implemented a seasonal shutdown affecting most of the manufacturing workforce at the John Deere Ottumwa Works in Ottumwa, IA.
Long-term outlook for Deere remains strong on the back of increased global demand for food, shelter and infrastructure. While, in the near term even though net farm income remains at high levels, farmer sentiments regarding capital goods purchases are becoming more conservative due to lower commodity prices.
Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada through branch offices as well as through distributors and operates through dealers to resell products internationally.
Deere currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include ACCO Brands Corp. ( ACCO ) and ARC Document Solutions, Inc. ( ARC ). Both carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
ACCO BRANDS CP (ACCO): Free Stock Analysis Report
ARC DOC SOLUT (ARC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Deere & Company ( DE ) fell 0.5% yesterday after it announced plans to review strategic options for its crop insurance unit to focus on its core businesses. In order to remain competitive, Deere continuously strives to align the size of its manufacturing workforce with market demand for products. However, no formal decisions had been made and no agreements had been reached yet.
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The business underwrites policies through John Deere Insurance Company, a business unit within John Deere Financial. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report ARC DOC SOLUT (ARC): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Deere & Company ( DE ) fell 0.5% yesterday after it announced plans to review strategic options for its crop insurance unit to focus on its core businesses.
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The business underwrites policies through John Deere Insurance Company, a business unit within John Deere Financial. In order to scale back its agricultural equipment production in the wake of weak market demand for its products Deere announced 460 job cuts from its Waterloo plant, after laying off 600 employees in August. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report CITIGROUP INC (C): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report ARC DOC SOLUT (ARC): Free Stock Analysis Report To read this article on Zacks.com click here.
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The business underwrites policies through John Deere Insurance Company, a business unit within John Deere Financial. However, price declines and falling demand have made the business less profitable in recent years. Additionally, Deere will scale back its production for the rest of fiscal 2014 in line with demand for agricultural products.
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fb1288a1-f307-4e19-9ef9-9eb956bb7930
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722882.0
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2014-09-23 00:00:00 UTC
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3 Warren Buffett Stocks Dip to One-Year Lows
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DE
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https://www.nasdaq.com/articles/3-warren-buffett-stocks-dip-one-year-lows-2014-09-23
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nan
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nan
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The S&P 500 index has risen more than 7% year to date. Some of the stocks in Warren Buffett ( Trades , Portfolio )'s portfolio have dropped to their lowest share price in a year. Buffett has mentioned that he first only buys companies that have undeniably good prospects and also looks for good prices.
As he mentioned in his last year's letter to Berkshire Hathaway ( BRK.A )(BRK.B) shareholders: "We first have to decide whether we can sensibly estimate an earnings range for five years out, or more. If the answer is yes, we will buy the stock (or business) if it sells at a reasonable price in relation to the bottom boundary of our estimate. If, however, we lack the ability to estimate future earnings - which is usually the case - we simply move on to other prospects."
Jim Simons Undervalued Stocks
Jim Simons Top Growth Companies
Jim Simons High Yield stocks
Warren Buffett Undervalued Stocks
Warren Buffett Top Growth Companies
Warren Buffett High Yield stocks
Three of his stocks are trading on Tuesday at notably low prices: Viacom Inc. ( VIAB ), Deere & Co. ( DE ) and Chicago Bridge & Iron Company ( CBI ).
Viacom Inc. ( VIAB )
Viacom is trading at 0.7% above its 52-week low share price, closing at $77.97 per share on Tuesday. Viacom had a 52-week share price of $89.76 and has declined by 11% since the start of the year.
The relatively low price, however, is still well above what Buffett paid for his shares - an average of $48. He last bought stock in the company in third quarter 2012.
Buffett in total holds 7,602,200 shares of Viacom Inc., making it 0.61% of his portfolio.
Viacom Inc. was organized in Delaware in 2005. The company is a entertainment content company that connects with audiences through compelling content across television, motion picture, online and mobile platforms in more than 160 countries and territories. Viacom Inc. has a market cap of $32.98 billion; its shares were traded at around $77.97 with a P/E ratio of 14.40 and P/S ratio of 2.63. The dividend yield of Viacom Inc. stocks is 1.60%.
Deere & Co. ( DE )
Deere & Co. has fallen to within 3.1% of its 52-week low, closing at $83.32 per share on Tuesday after declining by almost 9% year to date.
Buffett last bought share of the company in second quarter 2013, when the price averaged $78. He holds 3,978,767 shares of the company, a 0.33% holding.
Deere & Co. was incorporated under the laws of Delaware in 1958. Deere & Co. has a market cap of $29.88 billion; its shares were traded at around $83.37 with a P/E ratio of 9.40 and P/S ratio of 0.85. The dividend yield of Deere & Co. stocks is 2.50%. Deere & Co. had an annual average earnings growth of 11.40% over the past 10 years. GuruFocus rated Deere & Co. the business predictability rank of 5-star.
Chicago Bridge & Iron Company ( CBI )
Chicago Bridge & Iron was 4.9% off its one-year low, closing at $60.07 per share. The stock reached $89.22 as a one-year high and has declined by 28% year to date.
Buffett in the second quarter added 1,150,355 shares to his holding of the company at an average price of $80. He holds 10,701,110 shares in total, making the company 0.68% of his portfolio.
Chicago Bridge & Iron Company was founded in 1889. It provides conceptual design, technology, engineering, procurement, fabrication, construction and commissioning services to customers in the energy, petrochemical and natural resource industries. Chicago Bridge & Iron Company has a market cap of $6.55 billion; its shares were traded at around $60.53 with a P/E ratio of 12.90 and P/S ratio of 0.56. The dividend yield of Chicago Bridge & Iron Company stocks is 0.40%. Chicago Bridge & Iron Company had an annual average earnings growth of 24.30% over the past 10 years. GuruFocus rated Chicago Bridge & Iron Company the business predictability rank of 2.5-star.
See more Warren Buffett (Trades, Portfolio) stocks at his portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days here.
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This article first appeared on GuruFocus .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It provides conceptual design, technology, engineering, procurement, fabrication, construction and commissioning services to customers in the energy, petrochemical and natural resource industries. The S&P 500 index has risen more than 7% year to date. Some of the stocks in Warren Buffett ( Trades , Portfolio )'s portfolio have dropped to their lowest share price in a year.
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Jim Simons Undervalued Stocks Jim Simons Top Growth Companies Jim Simons High Yield stocks Warren Buffett Undervalued Stocks Warren Buffett Top Growth Companies Warren Buffett High Yield stocks Three of his stocks are trading on Tuesday at notably low prices: Viacom Inc. ( VIAB ), Deere & Co. ( DE ) and Chicago Bridge & Iron Company ( CBI ). The S&P 500 index has risen more than 7% year to date. Some of the stocks in Warren Buffett ( Trades , Portfolio )'s portfolio have dropped to their lowest share price in a year.
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Some of the stocks in Warren Buffett ( Trades , Portfolio )'s portfolio have dropped to their lowest share price in a year. Jim Simons Undervalued Stocks Jim Simons Top Growth Companies Jim Simons High Yield stocks Warren Buffett Undervalued Stocks Warren Buffett Top Growth Companies Warren Buffett High Yield stocks Three of his stocks are trading on Tuesday at notably low prices: Viacom Inc. ( VIAB ), Deere & Co. ( DE ) and Chicago Bridge & Iron Company ( CBI ). The S&P 500 index has risen more than 7% year to date.
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Jim Simons Undervalued Stocks Jim Simons Top Growth Companies Jim Simons High Yield stocks Warren Buffett Undervalued Stocks Warren Buffett Top Growth Companies Warren Buffett High Yield stocks Three of his stocks are trading on Tuesday at notably low prices: Viacom Inc. ( VIAB ), Deere & Co. ( DE ) and Chicago Bridge & Iron Company ( CBI ). Deere & Co. ( DE ) Deere & Co. has fallen to within 3.1% of its 52-week low, closing at $83.32 per share on Tuesday after declining by almost 9% year to date. Buffett in the second quarter added 1,150,355 shares to his holding of the company at an average price of $80.
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872ab6ed-d25e-4ca8-af05-358722cb2b1c
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722883.0
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2014-09-12 00:00:00 UTC
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3 Reasons Emerson Electric Co.'s Stock Could Fall
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https://www.nasdaq.com/articles/3-reasons-emerson-electric-cos-stock-could-fall-2014-09-12
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nan
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Industrial equipment manufacturer Emerson Electric 's stock price is down more than 8% year to date, and investors must be wondering when the company will join the broader market rally. By management's own admission, sales growth has been lower than hoped for this year. Moreover, there are a number of reasons the company could continue todisappoint investors in the near term. Let's look at three of them.
Source: Emerson Electric Presentations.
For example, in the third quarter the commercial and residential and climate technologies segments recorded respective underlying growth of 4% and 6%. However, process management and industrial automation grew underlying sales by only 2% and 0%. Process management's underlying sales growth in the Middle East and Asia was down 11% and 2%, respectively. In other words, geopolitical events are hurting its most important segments of process management and industrial automation. This certainly could continue.
China set to disappoint?
So far this year, the company's performance in China has been strong. However, given signs of a slowdown in growth in the country, how much longer can that continue?
A quick look at its China sales by segment in the third quarter reveals how well Emerson Electric is doing there.
Source: Emerson Electric Presentations.
Still, construction machinery stalwart Deere recently argued that conditions were slowing in China , and Caterpillar (a significant customer of Emerson Electric) has also reported a weakening outlook in the country.
Putting this into context, China made up 12.9% of Emerson's sales in 2013. Looking forward, CEO David Farr expects 5%-8% growth in China next year, so things look positive for now. However, this outlook would have to be reduced should China's economy slow further in 2015.
Emerson Electric might miss estimates
The company has missed analyst estimates for the last two quarters, and underlying sales growth is trending at the lower end of management's forecast for 3%-5% for the full year. So investors have reason to worry about the fourth quarter. The company has an opportunity to generate growth by reducing its growing backlog in the quarter, but this is somewhat dependent on the spending plans of its customers. All told, internal guidance is for full-year earnings per share of $3.68-$3.80, but analysts forecast $3.70 -- toward the low end of management's figures.
The takeaway
All told, these three concerns combine a near-term risk (missing earnings) and two medium- to long-term risks (China's economy slowing and geopolitical concerns). Unfortunately, management can do little about global GDP growth or customers' sentiment toward geopolitical risk: Emerson Electric remains at the mercy of global political and economical considerations. Throw in the potential for some disappointing earnings and there is sufficient cause for concern with the stock.
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The article 3 Reasons Emerson Electric Co.'s Stock Could Fall originally appeared on Fool.com.
Lee Samaha has no position in any stocks mentioned. The Motley Fool recommends Emerson Electric. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Industrial equipment manufacturer Emerson Electric 's stock price is down more than 8% year to date, and investors must be wondering when the company will join the broader market rally. Still, construction machinery stalwart Deere recently argued that conditions were slowing in China , and Caterpillar (a significant customer of Emerson Electric) has also reported a weakening outlook in the country. The company has an opportunity to generate growth by reducing its growing backlog in the quarter, but this is somewhat dependent on the spending plans of its customers.
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Process management's underlying sales growth in the Middle East and Asia was down 11% and 2%, respectively. Emerson Electric might miss estimates The company has missed analyst estimates for the last two quarters, and underlying sales growth is trending at the lower end of management's forecast for 3%-5% for the full year. Industrial equipment manufacturer Emerson Electric 's stock price is down more than 8% year to date, and investors must be wondering when the company will join the broader market rally.
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Industrial equipment manufacturer Emerson Electric 's stock price is down more than 8% year to date, and investors must be wondering when the company will join the broader market rally. Emerson Electric might miss estimates The company has missed analyst estimates for the last two quarters, and underlying sales growth is trending at the lower end of management's forecast for 3%-5% for the full year. For example, in the third quarter the commercial and residential and climate technologies segments recorded respective underlying growth of 4% and 6%.
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Industrial equipment manufacturer Emerson Electric 's stock price is down more than 8% year to date, and investors must be wondering when the company will join the broader market rally. For example, in the third quarter the commercial and residential and climate technologies segments recorded respective underlying growth of 4% and 6%. However, process management and industrial automation grew underlying sales by only 2% and 0%.
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28934ded-07d2-40e8-b1cf-9789650bfad5
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722884.0
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2014-09-10 00:00:00 UTC
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After Hours Most Active for Sep 10, 2014 : BAC, ANR, VNET, GM, RH, QQQ, COP, YHOO, INTC, DE, VRSN, MU
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https://www.nasdaq.com/articles/after-hours-most-active-sep-10-2014-bac-anr-vnet-gm-rh-qqq-cop-yhoo-intc-de-vrsn-mu-2014
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The NASDAQ 100 After Hours Indicator is down -1.05 to 4,093.92. The total After hours volume is currently 26,829,902 shares traded.
The following are the most active stocks for the after hours session :
Bank of America Corporation ( BAC ) is -0.01 at $16.35, with 3,583,354 shares traded. BAC's current last sale is 90.83% of the target price of $18.
Alpha Natural Resources, inc. ( ANR ) is unchanged at $3.41, with 2,442,892 shares traded. ANR's current last sale is 75.78% of the target price of $4.5.
21Vianet Group, Inc. ( VNET ) is +0.0201 at $20.15, with 2,011,720 shares traded. As reported by Zacks, the current mean recommendation for VNET is in the "buy range".
General Motors Company ( GM ) is unchanged at $33.29, with 1,227,454 shares traded. As reported by Zacks, the current mean recommendation for GM is in the "buy range".
Restoration Hardware Holdings Inc. ( RH ) is -4.42 at $77.63, with 1,161,203 shares traded. RTT News Reports: Restoration Hardware Swings To Q2 Profit
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.01 at $100.06, with 1,039,113 shares traded. This represents a 31.05% increase from its 52 Week Low.
ConocoPhillips ( COP ) is -0.659 at $78.33, with 932,851 shares traded. COP's current last sale is 87.03% of the target price of $90.
Yahoo! Inc. ( YHOO ) is unchanged at $41.14, with 919,161 shares traded. As reported by Zacks, the current mean recommendation for YHOO is in the "buy range".
Intel Corporation ( INTC ) is -0.064 at $34.96, with 912,143 shares traded. INTC's current last sale is 101.32% of the target price of $34.5.
Deere & Company ( DE ) is unchanged at $81.98, with 900,937 shares traded. DE's current last sale is 97.02% of the target price of $84.5.
VeriSign, Inc. ( VRSN ) is unchanged at $56.46, with 822,528 shares traded. As reported in the last short interest update the days to cover for VRSN is 23.327047; this calculation is based on the average trading volume of the stock.
Micron Technology, Inc. ( MU ) is -0.178 at $31.91, with 546,148 shares traded. As reported by Zacks, the current mean recommendation for MU is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The following are the most active stocks for the after hours session : Bank of America Corporation ( BAC ) is -0.01 at $16.35, with 3,583,354 shares traded. Alpha Natural Resources, inc. ( ANR ) is unchanged at $3.41, with 2,442,892 shares traded. The total After hours volume is currently 26,829,902 shares traded.
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The total After hours volume is currently 26,829,902 shares traded. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The following are the most active stocks for the after hours session : Bank of America Corporation ( BAC ) is -0.01 at $16.35, with 3,583,354 shares traded.
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RTT News Reports: Restoration Hardware Swings To Q2 Profit PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.01 at $100.06, with 1,039,113 shares traded. Inc. ( YHOO ) is unchanged at $41.14, with 919,161 shares traded. Deere & Company ( DE ) is unchanged at $81.98, with 900,937 shares traded.
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The total After hours volume is currently 26,829,902 shares traded. The following are the most active stocks for the after hours session : Bank of America Corporation ( BAC ) is -0.01 at $16.35, with 3,583,354 shares traded. Alpha Natural Resources, inc. ( ANR ) is unchanged at $3.41, with 2,442,892 shares traded.
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d00c4a5b-f6e9-45e8-8014-c0f49e81eaeb
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722885.0
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2014-09-03 00:00:00 UTC
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Terex: Great Prospects, Better Target
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DE
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https://www.nasdaq.com/articles/terex-great-prospects-better-target-2014-09-03
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By Francis Lynch :
Key Developments
Positive:
Global infrastructure growth is expected to grow by $9 trillion annually by 2025, up from $4.2 trillion today.
Emerging markets countries such as China will eclipse spending of developed countries by 2030.
By 2050 E7 countries will have a collective GDP of $138.2 trillion versus $69.3 trillion for the G7.
AWP growth continues to be robust.
Backlog has increased 20.2% since December 2013 and 2.2% year over year.
Overall sales grew 10.4% in Q2 versus prior year period.
Management continues to cut costs and realign company departments efficiencies throughout the company, currently 70% of the company operates on the same platform, goal is to increase this.
In 2013 gross margins increased to 21% from 10% in 2009.
Company is focusing on its core products while staying away or shedding assets in areas that are crowded.
Management believes the trend in Europe will continue.
-Tower and Crawler crane demand remain promising as the backlog continues to grow (higher margin and less competitive and is very bullish in my view).
Rough Terrain cranes were also strong in the quarter.
Management says that they are out of the woods in terms of under-utilization.
Government funding for the "Highway" Bill should get additional funding.
Repurchased $31 million worth of stock during the quarter.
Negative:
While the EPS forecast remains unchanged for the year, the company lowered revenue guidance slightly to $7.5 billion from $7.7 billion.
Increased competition/lack of product differentiation in certain "Non-core" segments.
Though we mentioned that the Crane segment should rebound, it has fallen short of expectations for the second straight quarter and the company has pushed it to be a second half story and even out to 2015 (September should be a good month for cranes).
Drama with Russia could hamper future growth out of Europe.
High currency regions such as the UK have put a curb on competitive sales with rivals able to produce at lower costs.
Management's goal of $5 in EPS has been pushed back one year to 2016.
$30-$40 million from the Rotterdam Gateway Project still remains at risk and the company could see an additional $50 million in revenue pushed back to next year.
With competitors such as Manitowoc and Oshkosh falling short of expectations, this could possibly signal that macro demand is weaker then analyst projections.
Further, many large publicly traded infrastructure construction companies have suffered significant losses of late which could foretell a drop off in private sector CAPEX spending.
Margins at AWP slipped slightly due to product mix and start-up costs.
Management has guided operating margins slightly lower by .25% (7.25%-8.25%).
In order to maintain EPS guidance, management expects the tax rate to drop to between 30-33% from 33-35% at the end of the first quarter.
Without the divestiture of truck business, FCF would have been negative for the quarter.
Note to the reader:
Despite posting solid first half results, Terex ( TEX ) fell short of some analysts' expectations and an uncertain outlook has sent shares down 16% YTD with most of the losses occurring over the last month alone. The Crane division continues to be a drag as it struggles to live up to expectations and drown out any positive news from other core segments such as AWP and MHPS. However, given the severe weather we experienced in North America and expectations for a continued rebound in construction related activity, my estimates call for the company to earn 94 cents in Q3 and $2.21-$2.45 for all of 2014 (10 cents above analysts' estimates for the quarter but well below the company's guidance of between $2.50 and $2.80 for the year).
Based on continued infrastructure spending in the United States along with a rebound in Asian, LATAM, Middle Eastern and Western European global markets, it is possible that Terex will exceed the high-end of its $7.5 billion (10.1% Year over Year increase) revenue guidance. While external contributions will continue to come from cheaper material and labor costs, my expectations are for Terex to benefit from a weaker euro resulting in a more favorable cost competitive environment versus competitors. Management's ability to reduce overhead costs in order to improve profitability has yet to be seen as evident with its MHPS segment which reported great top line growth but SG&A expenses negated any significant profit.
I am initiating a strong buy rating on Terex with a $50 end of year share price target that could still be conservative based on future growth opportunities.
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Company Overview:
Headquartered in Westport Connecticut, Terex sells heavy machinery equipment to the construction, infrastructure, quarrying, mining, manufacturing, shipping, transportation, energy, and utility industries worldwide, operating five diverse segments through its Terex, Genie, Powerscreen and Demag brands.
Through its Genie brand, Terex provides material lifts, Portable Aerial Work Platforms (AWPs), Boom Lifts, Scissor Lifts, Telehandlers, Trailer-Mounted Light Towers. At the end of the first quarter, 62% of AWP sales originated from the United States with 21% coming from Western Europe, 7% each for Asia/Oceania and LATAM and 4% from the rest of the world. This remains in line with historical trends and my expectations are for North America to remain 2/3rds of overall sales going forward with 15%-20% annual growth through 2018 as rental companies upgrade existing product mixes and expand their fleets to meet growing demand (Rental companies such as United Rentals ( URI ) and Sunbelt make up roughly 35% of overall segment sales). Double-digit growth has resulted in a consistent backlog for AWP and in my view is a positive sign for the overall health of future sales.
Terex is the worldwide leader in light crane systems and commands a market leading and superior product position across the rest of the Material Handling and Port Solutions ((MHPS)) business. Through the Material Handling segment Terex offers customers multiple solutions to handle intra-logistics concepts for manufacturers of all sizes. Products include Process Cranes, Universal Cranes, Modular Cranes, Hoists and Accessories, and Drives. Through the company's Port Solutions segment it offers products that give customers the capacity to load and unload, transport, storage and handling of containers, bulk material, general cargo and project cargo in maritime and river ports. Material Handing manufacturing facilities are located in six countries around the world with three located in emerging market countries of Brazil, China and India. Primarily MHPS relies on global demand for industrial production as well as transcontinental trade. As I have detailed in the company and global outlook sections, MHPS should continue to remain strong delivering sales growth between 15%-25% annually through 2018 driven by infrastructure upgrades and capacity expansion in major key ports.
Terex's construction segment primarily sells compact equipment for the development of non-residential construction and infrastructure projects such as bridges, roads, and public work undertakings. Products include Mini & Midi Excavators, Crawler Excavators, Loader Backhoes, Compact Track Loaders, Skid Steer Loaders, Articulated & Rigid Frame Dump Trucks, Material Handlers, Concrete Mixer Trucks, and Concrete Roller Pavers. Distribution for these products is through a network of dealers. Recently Terex completed the sale of its off-highway truck business to Volvo AB for $160 million in cash. This allows management to continue to focus on slimming down its product offering and keep to a core mix that will deliver on long-term growth and further cost cutting efficiency goals. While first quarter sales came in at $198 million, down slightly from the previous quarter and 7% lower than the same period a year ago, management remains upbeat. Additionally, despite stronger gross margins around 10%, net margins suffered primarily from higher SG&A expenses which ultimately contributed to a loss of $5 million for the quarter. Management expectations are for construction to break even for 2014. Overall for 2013, 43% of sales came from Western Europe, 35% from the United States, 9% from Asia/Oceania, 1% LATAM, and 12% ROW. Despite the improving outlook for the construction segment, sales have continued to trend down since 2011 (driven by a decrease in Western European sales) and while we should see a rebound, I have pushed back a return to profitability to midway through 2015 thanks in part to the construction segment's over-reliance towards Western Europe as growth is likely to slow in the near term.
*Sale of its off-high business to Volvo for $160 million should reduce net income by 6% (Sale represented 11X 2013 earnings according to analyst at Morningstar). The sale also includes a manufacturing facility in Scotland, United Kingdom. As part of the deal Volvo will retain the Terex name on future trucks for up to 5 years. The proceeds will be used to pay down debt.
Through its Powerscreen division Terex sells Material Processing equipment to various customers all over the world. In terms of overall sales, it remains company's smallest segment by sales but profitable in terms of overall gross (23.9%) and net margin basis (12.9%). Demand for material processing is driven by commercial construction, road building, infrastructure, and recycling demand for minerals. Products include Powerscreen Crushers, Mobile Processing Equipment, Minerals Processing Systems, Terex Environmental Equipment, and Washing Systems. Manufacturing facilities are located in Ireland, India, China, Australia, Malaysia, and the United States with Ireland and India producing 50% of worldwide equipment.
The Crane segment continues to remain a disappointment for the company but any potential upside could be significantly material to earnings. Demand is driven by energy, infrastructure projects, non-residential construction and global trade that impacts port and railroad shipment volumes. Products include Road Mobile Cranes, Truck Mounted Cranes, Rough Terrain Cranes, Tower Cranes, Specialized Cranes (Pick & Carry, Cab Down, Military and Pedestal Cranes), and Utility Truck Products. With $503 million in second quarter sales, this segment is the second largest contributor to overall sales and my analysis suggests that it will be 25% of 2014 estimated sales. Despite sales being up 27% Q/Q, demand remains relatively weak with Q1 sales falling 16% from the same period a year ago and 18% from the 4th quarter. Operating and net margins continue to remain weak but have shown a slight improvement over 1st quarter with gross margins of 18% and net margins of 5.9% (Crane operating margins were flat versus last quarter with net margins of 0% and have continued to erode over the past year with higher operating and SG&A expenses). During the past 3 years we have seen a major shift in geographical orders and this is in line with infrastructure spending picking up in North America versus slower growth in Western Europe. From 2011 through 2013 North American sales moved from 19% to 44% and the trend is likely to continue due to strong natural gas drilling spurring demand for Rough Terrain Cranes. Management highlighted that Crawler and Tower crane demand appears to be stabilizing and that we should see a lift in sales over the next 12 months driven by strong demand in the Middle East. Similar to the MHPS segment, cranes are manufactured across six countries. The majority of the smaller margin cranes such as Rough Terrain and Utilities are produced in the United States (Production has moved to one facility from two at the end of the first quarter). Road, Crawler, Towers are manufactured primarily in Germany, Italy and France with small road crane manufacturing in the United States and China. While Europe may continue to struggle to net sales, the weaker Euro may prove to be beneficial as Terex cranes could possibly gain from being more competitively priced against inferior manufacturers.
Company Backlog/Future demand:
Though the backlog at the end of the second quarter stood at $2.19 billion and was down slightly from the 1st quarter, it remains near record highs and investors should remain optimistic. Going forward execution will be key, especially in the Crane and MHPS segments. In terms of individual segment breakdown, we can clearly see that MHPS continues to remain the lion share (40% of the overall backlog at the end of Q2) and remains in line with my expectations that MHPS will be the most significant contributor to future earnings, outpacing both Crane and AWP demand. While management expects high to low double digit sales growth in its MHPS segment this year, my analysis suggests that we could see substantial growth in the mid to high double digit teens over the coming years driven by US and Asian port infrastructure growth with the backlog growing to over $1 billion in 2016.
Though management continues to push crane demand further out, the steady backlog is at least a sign that demand has not significantly deteriorated ($661 million in Q2 versus $673 million at the end of Q1). With that said, if sales do not pick up in the third quarter, management will likely not hit their earnings forecast for the year (An additional quarter of lackluster crane sales will continue to weigh on the stock).
As I mentioned earlier, management has highlighted a shift in the way customers order in the AWP segment and the shift has been towards "On Time" purchases rather than for future anticipation. This makes it harder for management to guess which products will be desired and may prove challenging for investors to gauge future demand, as a potential for an unexpected slowdown in sales could occur without warning. However, sales should continue to remain robust and my estimates call for 16.3% annual growth through 2017 driven by Terex's strong market position.
Material Processing should remain steady with the segment backlog remaining in the $60-$70 million range with sales growing 5% in 2014 and 11% on average over the next 3 years. This segment remains minimal in terms of overall sales but does contribute to net income so it should not be discounted.
Despite the construction segment's backlog hovering around a two year high of $188 million, it is likely that we'll see negative sales growth for this year. With a majority of construction segment sales coming from Western Europe, continued tensions with Russia will undoubtedly hinder growth and may have a material effect on the backlog. Construction spending will likely remain steady across the ROW but won't be substantial to offset weakness across Europe. My expectations call for 0% growth in sales this year and 7% annualized sales through 2017, but could be significantly lower due to increased competition and higher operating expenses.
In order to keep up with my projected sales growth over the next three years, the backlog will have to grow at least at the same pace if not higher. Therefore, I see comparable increases of 16% annualized backlog growth through 2017 with roughly 40% continuing to come from the MHPS segment.
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Income Statement:
Looking over the company's second quarter income statement, sales came in 25% higher Q/Q and 7.8% higher from the same period a year ago (unaudited). However, EPS fell short of analyst estimates primarily due to what management called an unanticipated shift in product mix in its AWP division. Overall gross profit remained stable and management continues to find operating and cost cutting synergies. Expectations across Wall Street are for this to continue and I'm anticipating gross profit margins increasing to 22% by Q1 of next year as Terex integrates manufacturing facilities and capital utilization returns to more appropriate levels (For example, moving a manufacturing facility to Texas is projected to cut costs and increase productivity substantially). Nevertheless for the second straight quarter I remain disappointed with management's ability to improve on company-wide sales. While revenue is near a two year high, and has increased 10.4% from Q2 of 2013, it's remained relatively flat over the past two years (measured quarterly). Terex's diverse product offering has been able to offset one bad segment with an improving one (For example, AWP continues to outperform while cranes lag) but it never seems that the company is hitting on all cylinders. Management cannot solely rely on cost cutting or share buybacks to boost EPS. Ultimately investors need and want to see top line growth that exceeds industry averages for this niche market player. In order to achieve this top line growth, we would need to see a turnaround in some key markets as well as continued growth out of North America and Western Europe. In addition, if the Euro continues to weaken against the dollar and or the Yen strengthens versus the dollar I believe that Terex could see favorable currency translations through hedging activity.
My earnings estimate air on the more conservative side of things. While management expects operating margins to be in the range of 7.25% and 8.25% for the year, I have used 6.55% using historical figures for Q3 and Q4 but more or less appropriate operating margin rate as I believe that continued product mix concerns in its crane and AWP segments could potential carry over until inventory is sold off.
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SECOND QUARTER SEGMENT DEMAND DRIVERS:
Second quarter sales were driven by strong demand in the AWP and MHPS segments. Cranes, construction and MP all were relatively flat with crane sales dropping slightly Q/Q but up 27% from Q1 of last year. Looking over the sales chart we can see that the AWP, cranes and MHPS were all significant contributors to overall revenue while on the other hand AWP, cranes, and MP contributed the greatest to net income. My expectations are for a turnaround in MHPS expenses going forward with net income doubling on further cost cutting in SG&A.
As a side note, management lowered the top end of its sales guidance to $7.5 billion for the year from $7.7 billion. Given that historically 3rd quarters have been the second best performing period for the year, it's not out of the question that Terex will hit its target. However, given both political and economic instability I wouldn't be surprised to see future sales pressed out to the 4th quarter or even the first half of 2015 (orders and construction projects will be delayed rather than canceled completely).
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Management Overstretch?
Investors should note that management still expects to earn between $2.50 -$2.80 a share, excluding earnings from discontinued operations which accounted for $54.4 million during the first half. Withholding DO income, the company would need to earn $1.46 a share for the second half to reach the low end of its guidance (using diluted EPS figures). While I expect 3rd quarter financials to come in strong, Terex would need to have a blowout half. Using the same top line figure of $7.4 billion for the year, Terex is forecasting a 13.12% increase in operating income growth over my estimates, which means that if sales figures come in the middle of their range, management is expecting EPS to be driven by its ability to substantially cut costs and find synergies.
Additionally the sale of its truck business to Volvo will put additional pressure on the rest of the company's construction segment to cover revenue shortfalls. According to Volvo AB, the manufacturer who bought the truck unit, Terex's truck segment had $172 million in sales for the first 3 quarters of 2013 with operating income of $33 million during the same time period. If we can assess that the unit reported revenue of $230 million for the year and $45 million in operating income, we would have to discount these cash flows while adding in the proceeds from the sale. The lowering of the top end of guidance is in line with the reduction from the discontinued operations. While management could have simply turned more cautious, I believe that the reduction in top line estimates are due to discontinued operations.
Investors should also note that Chief Executive Officer Ronald Defeo takes a very conservative view when it comes to giving financial guidance. He tells investors how it is no matter how ugly results may be. It is probable that one reason the stock price has been such a laggard this year is because Ron has been unwilling to drum up a more upbeat outlook for certain segments such as cranes. Luckily for investors and management, the backlog has given us a clearer picture into the insight of future sales.
FORWARD LOOKING FINANCIAL PROJECTIONS (2015 AND BEYOND):
My Financial Projections:
Based on my pro-forma calculations and detailed analysis provided, Terex should see substantial growth across all business segments in which we should see top line growth in excess of 15% annually through 2017. I am anticipating gross margins to slightly decrease to 20.10% before rebounding to 20.50% and 21.5% by 2017. While operating margins should increase 1% annually from 8.1% in 2015. Given its current debt load and management's commitment for no significant M&A activity, I do not expect any significant issuances of additional debt that would be substantially material on earnings. With nearly $300 million in principal coming due in 2017, I expect the company to refinance the debt at more favorable interest rates. Moving on, I have also factored in a tax rate of 35% which in my view is quite high as I see a major shift in customer demand coming from emerging market low tax countries over the next five years. Based on a recent convertible note issuance, as well as consistent stock grants awarded to management over the years, I am forecasting both the basic and diluted share count to increase by roughly 15 million to 125 and 131 million by 2017 respectively. Based on my forecast Terex should earn $3.12 in 2015, $4.13 in 2016, and $5.34 in 2017. Using a P/E multiple of 16 Terex should be fairly valued at $50 (35%), but should see substantial upside to $66 (78%) by 2016 and $85 (129%) in 2017. In comparison management still expects EPS of $5.00 in 2016. My analysis is slightly more conservative and should be viewed by investors that anything above my estimates would be substantially more favorable. But I should also highlight to potential investors that even if the company comes close to my projected EPS of $4.13 (difference of 18% from its POV), the company will remain solidly profitable and at current levels represents an attractive investment opportunity.
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My Projections For Terex Management's Goal of $5 in EPS by 2016:
Turning to Terex management's forward looking income statement for 2014, I have projected financials using updated company guidance provided during its 2nd Quarter conference call. As I mentioned earlier, I have taken a very conservative approach using the mid-range for sales and lower margins and higher tax and share count levels. Looking at the comparison we can see that management could conceivably reach their projected guidance if they can execute flawlessly on reducing product and SG&A costs. If management can achieve operating margins of 7.75% versus my 6.55% estimate, it will increase operating income by $88.4 million (enough to earn 58 cents more in EPS to reach $2.79). Again, I have assumed the middle range of guidance for sales at $7.4 billion. However, using my earnings forecast and a PE multiple of 16, Terex is fairly valued at $35.36 a share based on 2014 expected basic earnings per share of $2.21. Using that same multiple and management's $2.50 and $2.80, Terex would be fairly valued between $40 and $44.80 (8%-18% increase compared to current trading levels).
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What to do with Excess Cash?
Terex should either return cash to shareholders via dividends (Not my desire), or reduce long-term debt in order to boost the long term solvency of the firm. A share repurchase program would not be material enough in my view and would only boost both basic and diluted EPS by 4 cents if the company were to use the proceeds from the truck division divestiture to repurchase 3.02 million shares at an average price of $36.
($160 million in proceeds, after tax amount $108.8 (Tax rate of 32%), share price of $108.8/$36=3.022).
BALANCE SHEET:
Turning to the balance sheet a few key accounts immediately grabbed my attention. Retained earnings have shown a steady increase over the previous two years as the company recovers from the global recession. Another positive sign is that long-term debt continues to decline and I believe that this will make the company more attractive to a buyer (a portion of long-term debt has been moved to current debt as it will come due in the next 12 months). Withholding any additional debt issuance, Terex would add a paltry $7.6 million in EBIT from its current debt reduction. With that said, Terex still has a sizable $1.73 billion in debt on its books with $300 million and $850 million in principal coming due in 2020 and 2021, respectively. The primary concern will be if the company has the appropriate liquidity at the time to settle the repayment or has the ability to issue additional debt to service those obligations. Currently, the company has 1.91 X cash to settle upcoming principal payments so investors should not be concerned about near term solvency issues. Yet the company announced on July 17th of a 4% convertible senior subordinated note due 2015 to settle the debt coming due, and depending on the premium to the conversion price, the company will issue additional shares. For example, at a price of $40 a share the company would have to issue 4.7 million additional shares while at $55 it would have to issue nearly 5.58 million. The future dilution would have an approximate 2 cent impact on diluted earnings and a 3 cent charge to basic EPS using 2014 earnings estimates if we were to add the latter amount.
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Anything that involves raising debt and issuing a dividend to shareholders would be too short sighted and a negative for long-term shareholders.
There are a few additional points of caution. Cash and equivalents continue to decrease on a quarterly basis. Despite solid earnings we will need to inspect the statement of cash flow to get a better understanding of where money is coming and going. Secondly inventories remain elevated and management has alluded that this was due primarily to a mix-up in product demand in the AWP segment. Yet I am also concerned that the company may be building up inventory of cranes that customers want less of. Accounts receivables increased 19.89% Q/Q. But further inspection may be warranted to see if there were any special terms given in order to increase sales for the quarter (This will also increase doubtful accounts). Accounts payable may be another point of interest as it too has increased steadily but remains manageable.
When analyzing a company one of the least favorite items of mine is goodwill and intangible assets. With $1.267 billion in goodwill and $430.5 million in intangibles, it makes up almost 25.31% of the company's assets. While certain intangible assets do carry value, especially for names like Coke, Microsoft, General Electric, it's hard to argue that so much of a company's asset should be carried in this area.
STATEMENT OF CASH FLOW:
Turning to the statement of cash flow, investors should note that while positive over the last 2 years (minus last quarter's $19 million reduction) they haven't been consistent and management's objective of $200-$250 million in free cash flow is hard to see happening. With that said, further debt issuance or a pullback in CAPEX and investment activity could have us hitting those numbers. My analysis suggests that we will likely see $160 million in Free Cash Flow (Operating Activity minus Capital Expenditures).
OPERATING ACTIVITY:
The principal contributors to operating cash flow for the quarter were changes in net income, inventory, accounts receivables and accounts payables (excluding depreciation and amortization). Second quarter operating cash flow was primarily affected by changes in accounts receivable while the first quarter was primarily affected by changes in inventory. Together these two changes affected operating cash flow by -$440 million. While I do not expect any significant changes in these levels during the second half of the year, forecasting future changes can be rather unpredictable as Terex may need to boost inventory or increase receivables to attract additional sales. Historically, if we look back at 2012, operating cash flow for the third and fourth quarters combined was $270 million. Adjusting for similar changes and given our adjusted net income, Terex could feasibly bring in $236 million in operating cash flow according to my estimates.
INVESTMENT ACTIVITY:
The sale of its off-highway truck division last quarter boosted investment cash flow by $146 million after adjusting for changes made in property, plant and equipment. For the second half I am not anticipating any significant changes (acquisitions or sales) or factory build outs. My expectations are for -$19 million and -$22 million for the third and fourth quarters respectively and are in line with quarterly changes over the past 2 years. While Terex moved one of its crane manufacturing facilities to a new location, I do not expect any material charges from this move.
FINANCING ACTIVITY:
Terex should continue to use excess cash to pay down debt as well as repurchase treasury stock. My analysis suggests that we could see a further reduction of $60 million in debt and $41.5 million in stock during the second half. Another possible scenario is that Terex issues additional debt or restructures current debt in order to take advantage of more favorable interest rates. As I mentioned in the balance sheet section regarding long-term debt, I'm in favor of paying down commitments as I believe the cost of debt outweigh the benefits to stockholders in the form of additional interest payments and could also make the company more attractive to an acquirer.
MANAGEMENT CASH FLOW EXPECTATIONS UNREALISTIC?
While management maintains their outlook of $200-$250 million in Free Cash Flow for 2014, my forecast calls for $160 million for the year (a shortfall of between $40-$90 million). Looking over the chart, investors can see that operating cash flow looks to be robust with $103 million and $108 million in Q3 and Q4, respectively, while CAPEX should average $40 million for the second half. If however management does hit the high end of their earnings guidance it's projected that they would see $224 million in Free Cash Flow (middle of their expected range). Nevertheless, as mentioned earlier, my analysis suggests that management may be too optimistic and is not factoring in a shortfall in earnings that I see happening for the year. Overall, I expect Terex to report Total FCF of -$8 million for the year due to strong financial cash flow activity (a positive view in my opinion as cash flow from operating activity will continue to remain strong).
NOTE: Management's definition of FCF = Operating Cash Flow minus Capital Expenditures. While Total FCF of -$8 million results by OCF+ICF+FCF=FCF.
COMPANY SEGMENT OUTLOOK (ADDITIONAL NOTES FROM THE FUTURE DEMAND SECTION):
As a diversified player in the "compact construction" segment, Terex stands to remain and gain across all geographical markets and equipment segments. While we have seen a boost from developed countries in North America and Western Europe, I believe that long-term growth will have to come from developing nations such as Brazil, China, Turkey, and India. With 73% of sales of overall Q2 sales coming from North America and Western Europe, Terex has been able to rely on strong stable countries as its primary revenue drivers. However, while these markets should continue to remain strong for Terex, continued political stability among the Arab Gulf countries, growth in South East Asia and Latin American countries will be needed if Terex wants to earn its target goal of $5.00 in EPS by 2016.
Putting together Terex's five segments and you have a company that operates in a very compelling space. The company's AWP shares a significant amount of the Arial segment with Oshkosh Trucks (OSH) and are both by far the dominant leaders in the marketplace and I expect this to continue. In fact there has been so much growth in this space both companies don't have to sacrifice margins in order to gain market share. Construction projects, specifically commercial, should continue to show robust growth in North America and Western Europe and that AWP should continue to outperform. Despite the "dire" need for infrastructure spending, crane spending has been more cautious. Terex is not alone, as MTW, one of their closest competitors, recently reported earnings that missed analyst forecasts and gave a downbeat view for the rest of the year.
This past weekend Barron's noted that MHPS should do well as the company's automated stacking equipment could be used in new port project around the world growing from 10 today to more than 50 by the end of the decade. I have detailed a more thorough note in the global outlook section and have pointed out that many US and Asian ports are overdue for major upgrades. With the MHPS backlog the greatest percentage of the total backlog, MHPS could easily outpace growth in the AWP over the coming years.
On the company's most recent conference call, management highlighted that construction related equipment should continue to improve; however, due to certain project funding issues in North America and political instability in Eastern Europe effecting business activity, I would not be surprised to see this segment show a decrease for the second half of the year before rebounding in 2015. Products that have been showing the greatest signs of sales improvement include concrete mixers and role pavers, mini excavators, and loader backhoes, and they could see lower margins depending on the deterioration of the utilization/sales ratio.
Terex's management has continued to emphasize cost cutting and other measures to boost operating margins as the company consolidates nearly 70 different departments into 8; as of Q1 the company has approximately 70% of its business streamlined to where it should be. While further streamlining will help boost SG&A margins, the company should continue to shed non-core product lines.
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REGIONAL OUTLOOK:
Outlook:
According to many analysts and industry leaders the global outlook for infrastructure spending will continue to remain robust totaling over $57 billion from now until 2030 (McKinsey & Company), driven by emerging market rapid expansion/urbanization and developed markets such as the United States that will need to upgrade aging buildings, roads, highways and bridges.
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TURKEY:
While investors are becoming quietly optimistic about Brazil, Turkey remains the one country I remain excitedly bullish on in terms of infrastructure spending. Turkey has some of the most ambitious projects for its size and includes 10,000 kilometers of new high-speed rail lines, 5,000 km of conventional rail lines, and 15,000 km of new divided highways which are earmarked for completion over the next 10 years. Furthermore, the Turkish government has made it a priority to have at least one of its ports be in the top ten largest globally by 2023 according to PWC. While Terex Cranes and construction could be potential winners, the MHPS segment will most certainly grab market share from any port expansion. The country's long-term goal is to have one of the top ten largest economies by 2023 up from 17th overall today ($820 billion in 2013 GDP at an annual growth rate of 4.3%).
LATIN AMERICA:
It's projected that Latin American infrastructure spending will total $98 billion in 2014 with an increase to $114 billion in 2018 with the majority of the total coming from Brazil and Mexico. With that said the region remains challenging. Terex last quarter overhauled its sales and management team as regional sales fell 27% Quarter over Quarter. It is evident that a more "boots on the ground" approach will be needed if things are to turn around. Despite the fact that Brazil has shown signs of improvement, off of a potential presidential election shakeup, growth remains tepid at best.
Despite the Brazilian economy ranking the 7th largest measured by GDP in 2013, it ranks 114th of 148 countries in terms of its overall infrastructure quality. While the World Cup concluded without a major issue, it is estimated that only half of the planned projects were completed. Unfortunately, this wasn't an unusual occurrence as the country has historically been unable to properly invest and manage infrastructure projects. However, with social unrest on the rise, the government has begun to implement initiatives to create jobs and increase the quality of life. Earlier this year, the federal government unveiled a nearly $50 billion package that includes money for highway, railway, port, telecommunication and electric projects. Investor excitement should be focused on port infrastructure. Though the country has 34 publicly and privately run seaports, it ranks a dismal 131st of 148 countries. With nearly 90% of all Brazilian goods moving through ports (most of it being perishable produce), it is not only vital that ports remain at optimal operating levels in order to handle export and import fluctuations but future economic growth as well. Overall it is estimated that Brazil will spend over $900 billion in infrastructure projects over the next five to seven years. Yet with economists forecasting 2014 GDP to grow 1.24% and 1.73% in 2015, it looks like it could be a long time before we see any impactful turnaround from Brazil.
Mexico is another area of excitement as the country begins a major overhaul of its state run energy sector. At the beginning of the year, pro-business President Enrique Nieto unveiled a $590 billion national infrastructure plan that will involve over 750 projects in the transportation, energy, communication, and water sectors that will take place over the next five years (With more than half of these funds slated to spend on the energy sector, Terex should see a potential lift in crane related sales).
As Barron's noted earlier this month, Terex should see gains in its Port Solutions segment as the Panama Canal gets a major upgrade over the next couple of years (Pending financial delays do not persist). If successful this could be a blueprint for other countries in the LATAM region.
Though Latin America is slated for tremendous growth, there is one mounting issue for Terex. Firstly, unlike the United States and Western Europe, Latin American machinery customers have shown to favor ordering more competitively priced products from Japanese and Chinese equipment manufacturers despite their inferiority according to management (a quantity versus quality scenario). This is driven by weaker domestic currencies against the Euro or US dollar. Since 2011 the US Dollar and the Euro have gained 43% and 33%, respectively, against the Brazilian Real making it more expensive for Brazilians to purchase Western made goods. During that same timeframe the Yen has strengthened only 13% and the Chinese Reminibi 32%. This trend is likely to continue as interest rates in the United States are likely to start increasing over the next couple of years.
EUROPE:
As European economies continue to struggle, government sponsored infrastructure projects remain underfunded. In particular Portugal, Ireland, Italy, Greece, and Spain (PIIGS) have all experienced the most significant reductions in project spending as austerity measures have taken hold. Despite Terex experiencing a 35% increase in second quarter regional sales compared to the same period in 2013, recent economic data could signal a dramatic slowdown if not reversal going forward. Ultimately project and infrastructure growth will rely on Public/Private Partnerships (PPPs) and many governments may be forced to concede more than they are willing to in order to achieve mediocre growth (examples include increased tax break incentives and government backed infrastructure bonds). However, with empty coffers and rising pension and health-care related costs, many do not have an option to simple say no. In total, Reuters projects that spending will rise over the next four years to 4.3%, from a slight increase of 1.5% experienced last year, to $741 billion.
In what is being described as the most radical overhaul in European infrastructure policy since its inception, the EU commission late last year detailed a new transportation road map that will connect nine major corridors across the continent that will create a more unified and efficient network system. Over the next six years (by 2020) financing for this transport infrastructure undertaking is expected to triple to $26 billion. The goal is to connect 94 main European ports and 38 airports seamlessly to a new rail network. An additional 15,000 km of new and upgraded high speed rail lines and 35 major projects to help prevent cross border road and highway congestion are also expected to take hold.
Recently, European GDP figures for the most current quarter were announced and to the surprise of many were worse than anticipated. Though growth in the EU28 remains stable at .2%, this was down from .3% reported in the first quarter. Germany and Italy both suffered small contractions of -.2% from a first quarter increase of .7% and -.1%, respectively. France remained flat quarter over quarter while both the United Kingdom and Spain led the block with .8% and .6% gains. Unfortunately, investors continue to remain risk averse as German yields hit new post-crisis lows. If current trends persist, private funds may remain on the sidelines.
Germany remains Europe's strong man and made up roughly 15% of total European infrastructure spending for the years 2011 through 2015. However, while 41.5 billion euros worth of projects were announced this was down from a projected budget of 57 billion Euros (27% decrease).
Presently, however, my fears may have been confirmed as political gridlock between the EU and Russia appear to have taken a turn for the worse. Recent expansion into Eastern Europe by Terex may suffer as a newly authorized dealer in Poland is sure to see a decrease in business activity.
North America: "Conflicting Reports?"
In March the ENR Confidence Index showed a dramatic rise in confidence among the 414 executives of construction and design firms that participated in the survey. This was 3 points higher than the 4th quarter's survey of 69. Most participants in the poll anticipate a dramatic rebound in construction related activity towards the end of the year and going into 2015. Further index figures such as the CFMA's Confidence Index showed little change from Q1 (Dropping from 130 to 129) but remains above 2013 levels (Positive sign). The downshift and cautious optimism in my view was the result of the lack of clarity from Washington regarding additional funds for the Highway Trust Fund in addition to a continued lack of public spending on construction related projects that continue to persist. According the St. Louis Federal Reserve, public construction spending is down roughly 16.6% from its March 2009 high reading of $325,481 million (we saw a roughly 6.8% spike from February 2010 through September as the US tried to "dig" its way out of a severe recession, but funding has since decreased dramatically). Additionally public infrastructure spending is about half of what Europe spends as a percentage of GDP. A long-term government solution will certainly boost confidence and activity almost immediately as firms and financial lenders start putting the nearly $2 trillion sitting on the sidelines to work. Certain government funding solutions that have been suggested are an additional state or federal gas-tax that has not been changed in the last 30 years and is tied to inflation and a tax-free repatriation for firms that bring back money from overseas and are invested in infrastructure bonds. As noted earlier the federal government should fully support infrastructure projects that have the ability to create jobs, increase efficiency, and contribute to a cleaner environment. But in order to do this Washington will need to be more open and support private spending because ultimately it's all about confidence and without the support of the federal government business confidence is likely to eventually wane.
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With that said North American construction activity should continue to remain strong across many major metropolitan areas as construction projects get underway. Private construction spending, though well off its March 2006 high, has rebounded nicely since bottoming in January 2011 and is up 48.2% since then but has stalled over the past 6 months likely to due to severe weather experienced over the first quarter.
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Within the private sector, both power and office construction spending stand out. Along with commercial activity these are the likely sectors that will give a boost to Terex's top line going forward. As noted earlier, AWP equipment are used for commercial and office related construction activity (non-residential construction). With a boost from government spending out of Washington, growing confidence could easily jolt these markets towards pre-recession spending levels. Continued spending on power related infrastructure activity should bode well for Terex boom, utility, and rough terrain cranes.
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American Society of Civil Engineers Report Card
According to the most recent ASCE report, it is estimated that $3.6 trillion will be needed for investment by 2020 just to replace deteriorating infrastructure. US ports should see a major injection of funds as 95% of all goods produced or consumed by the US move through ports. While $46 billion has been pledged by port authorities and private companies through 2016, it may not be enough to upgrade its current 2013 rating of C. Post-Panamax ports are likely to see a boom in activity, and according to ASCE trade volume is expected to more than double between 2012 and 2021 and double again after 2030. This increase in activity will require more efficient handling equipment.
My analysis suggests that near-term upgrading activity will surround West Coast ports while longer dated projects should come from the gulf and East coast ports. The reason is because only 5 ports could accommodate moderately large vessels at the end of 2010 because of their naturally shallower berths versus that of West Coast ports which has deeper compartments.
The report concludes by saying that 75% of capital investment needed by US ports will be for port expansion while 25% is likely to be spent on rehabilitation of existing substructures from 2012-2020. Strong domestic growth is the primary reason why I see MHPS achieving accretive double digit annual growth going forward.
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Another area of major concern is the age of bridges across the United States. With 1 in 9 bridges rated as structurally deficient, and the overall average age at 42 years, US bridges are in dire need of an upgrade. Terex should see continued improvement. Another area of major concern is the age of bridges across the United States. With 1 in 9 bridges rated as structurally deficient, and the overall average age at 42 years, US bridges are in dire need of an upgrade. Terex should see continued improvement.
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(Chart from the American Society of Civil Engineers)
ASIA/OCEANIA:
According to a recent Pricewaterhouse Coopers report the Asia-Pacific market will be driven by China's continued growth, and will represent 60% of global infrastructure spending by 2025. Over that same time frame Western Europe's share will shrink to less than 10% from just over 20% today.
Rapid urbanization will fuel the need for more efficient cities with better access to facilities such as schools, hospitals and other public facilities. China alone is projected to spend twice as much on highway construction as the United States by 2020. Further, my analysis suggests that South East Asian countries will require significant upgrades to their ports in order to deal with increasing economic activity, and will be essential in order for them to maintain their economic competitiveness. This is evident with the recent purchase of non-automated port solution products for one of Vietnam's largest ports. A clear correlation has been shown that for every 1% increase in infrastructure spending on transportation and communications on a sustained basis increases the GDP per capita growth rate by .6%. (PWC Report).
China by far spends the most of any major company on infrastructure as a percentage of GDP. As a result what you have is a continued massive expansion of buildings, highways, bridges, railways, amongst other things. For example, the length of expressways are expected to increase by 157% and container terminal capacity by 132% from 2010 to 2020.
India also remains a bright spot for future infrastructure spending. It is estimated that more than 70% of people still lack access to basic services such as clean water and reliable energy. While government regulation on foreign investment continues to hinder growth, infrastructure spending is projected to grow to $130 billion by 2025 from $27 billion in 2013. However, more needs to be done as the population is expected to grow dramatically within that time frame. Privatization of under-utilized public systems and further pro-business initiatives should be a major priority for the government.
AUSTRALIA:
Australia is another important market for construction related spending, especially for processing raw material such as coal, natural gas, and iron ore. Much of Australia's future spending on commodity projects will depend on the world's appetite for growth. Australia is fortunate, as the worst seems to be behind despite recent economic figures suggesting otherwise (signs of a slowing housing market should not however affect global consumption but may in fact facilitate an increase in government spending). Exports remain slightly off their all-time highs reached earlier this year. The country's close proximity and vast natural resource reserves should bode well for the country as Asian countries outpace the developed world in terms of GDP growth. However, risks do remain and management gave a cautious outlook for the country as big ticket items such as crane sales slowed dramatically. Long-term cranes, materials processing and in particular MHPS should have their growth prospects remain intact.
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*Australian government Department of Infrastructure and Regional Development.
Strong activity related to transportation as ports have seen a major boom in spending from the private sector despite government spending remaining little changed over the past few years.
THE MIDDLE EAST:
Terex management recently highlighted that certain countries in the Middle East were showing signs of improvement (particularly gulf countries such as Kuwait, UAE, Qatar and Bahrain). Previously TEX only saw growth from large countries such as Saudi Arabia and with activity picking up in regional neighbors signs are pointing to a more budding outlook (The value of projects in Saudi Arabia grew 29% from 2009 through 2013, while project spending dropped 51% in neighboring UAE). Growth however is likely to continue depending on regional stability. With Iraq pushed to the brink of collapse, and tensions in Israel flaring out yet again, we could see future projects put on hold. Growth would likely benefit the crane segment as much it will come from skyscraper and commercial activity as well as the power and utility sectors. Predicting exact figures would be speculative at best, but if we don't see a negative decrease in sales in second half compared to last year, I would consider that a positive sign. Management also noted that the company should see a lift in the crane segment as sales rebound from a slow second quarter period due to a religious holiday.
Competitive Landscape:
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There is no scarcity of heavy equipment manufacturers around the world. Growing competition from Chinese and Korean firms are putting stress on long-term incumbents Caterpillar and Komatsu. As a niche player, Terex has the distinct advantage of quickly shifting its product work capabilities but at the same time does not have the large scale abilities to fend off competitors and suppliers in the long run.
Does Terex have a competitive edge or economic moat?
According to management, 80% of first quarter sales originated in markets where Terex is a top 3 player (AWP, MHPS, and Cranes). Cranes, however, are the only segment in my view that could potentially come under significant competitive pressure from the likes of Liebherr, Manitowoc and Tadano. MHPS and AWP segments are clearly market leaders for the company in which they enjoy significant product superiority (evident by increasing operating margins). The company's greatest weakness is evident in its compact construction segment where the company earns only single digit operating margins and lacks a complementary product line. While certain products such cement mixers will continue to improve, they are coming off very low productivity levels and are in a crowded and highly cyclical market.
Currently, Terex produces its equipment across five different continents. As mentioned above, I would like to see continued consolidation at underutilized facilities and further expansion into emerging markets such as Brazil, which currently only has one manufacturing facility that produces Demag gear. Further expansion of industrial factories in India and China would also be beneficial for long-term growth. In conclusion Terex remains a strong niche market leader, yet operates in a highly cyclical sector, growth and sustainability rely on the global economy remaining robust.
ANALYST COVERAGE:
Of the 23 analysts covering the company, 3 rate it a strong buy, 9 outperform, and 11 holds, giving it a mean rating of 2.35 and puts it in the buy/hold category. This is slightly up from 2.43 reported last quarter. Sentiment is improving for the entire construction machinery sector and analysts have highlighted Terex for future growth.
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M&A Activity:
Terex certainly looks like an attractive takeover candidate for large capitalization equipment manufacturers such as Caterpillar or Komatsu and a potential bidder may want to take the opportunity with the recent pullback in shares to offer a fair premium to shareholders. Most notable however Kubota, another Japanese equipment manufacturer, has built a sizable war chest and has made it no secret that they are interested in purchasing a company outside of their home market of Japan. I have detailed below what a potential deal could look like.
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Recently Deere ( DE ) has commanded my attention as a possible suitor. Farming equipment sales are likely to fall dramatically as commodity prices from cotton to corn have dropped in price which will likely have a knock on effect as CAPEX declines. Deere does operate marginally in the construction equipment space but could benefit from Terex's product portfolio. With a market capitalization of over $30 billion and over $4.5 billion in cash and equivalents, a deal is very possible.
I should note that while I believe that Terex is an attractive takeover candidate, investors should not purchase shares solely on merger and acquisition speculation. The fundamental case for Terex remains the primary selling point.
Questions for Management?
-Are further divestitures possible? A sale of its construction business, which contributes roughly 10%-11% in operating margins, may be beneficial as management would be able to focus its energy and resources on core product offerings.
-Would management be receptive to combining Manitowoc's crane division with its own operation? With Relational Investors pushing Manitowoc to split the company into two, the crane division may be valued at $1.4 billion. A merger may be mutually beneficial for both companies.
-What have the effects of the RM-Terex JV been since Russia/West trade sanctions? Have we seen a dip in Terex related products? Is the JV in danger of falling apart?
-What is the long-term strategy for the company in Latin America where sales continue to be a huge disappointment?
-With majority of global infrastructure growth coming from Asia over the coming decades, what is Terex's strategy for the region?
-What is the company's tactic to deal with growing Chinese competition?
FINAL REMARKS/CONCLUSION:
Though political and now economic instability across Europe and business confidence waning in North America, there remains a slight risk of a slowdown in cyclical related stocks, especially for capital equipment industry. Existing infrastructure in North America is in need of a dire upgrade and it's estimated that $9 trillion will be spent annually by 2025, up from $4 trillion today, on everything from roads to power plants globally (Though many argue that more needs to be done).
Terex is likely to benefit from much of this global growth as the company dominates the AWP segment and its cranes remain some of the highest quality in the world. Though management has pushed back its $5 in EPS to 2016, anything close to that would be a clear win for the company and investors. A reacceleration of growth in Australia and continued strong growth from select Asian countries, primarily China, should also boost emerging market sales and should drive sales over the next decade. North American commercial construction should continue to remain strong with continued private investment well into 2017. Further as the company continues to streamline its various departments inherited through past acquisitions, margins should continue to improve. Though near-term pressure has been placed on the stock as the result of its lack of robust sales in its crane segment, the company is a clear winner and should see its shares appreciate to $50 over the next 12 months (35% premium based on my 2015 EPS estimate of roughly $3.20 and P/E of 16).
Disclosure: The author is long TEX. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.
See also There's Only One Way For 3D Systems To Overcome Weakness on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the company's most recent conference call, management highlighted that construction related equipment should continue to improve; however, due to certain project funding issues in North America and political instability in Eastern Europe effecting business activity, I would not be surprised to see this segment show a decrease for the second half of the year before rebounding in 2015. Firstly, unlike the United States and Western Europe, Latin American machinery customers have shown to favor ordering more competitively priced products from Japanese and Chinese equipment manufacturers despite their inferiority according to management (a quantity versus quality scenario). In what is being described as the most radical overhaul in European infrastructure policy since its inception, the EU commission late last year detailed a new transportation road map that will connect nine major corridors across the continent that will create a more unified and efficient network system.
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(click to enlarge) (click to enlarge) Company Overview: Headquartered in Westport Connecticut, Terex sells heavy machinery equipment to the construction, infrastructure, quarrying, mining, manufacturing, shipping, transportation, energy, and utility industries worldwide, operating five diverse segments through its Terex, Genie, Powerscreen and Demag brands. Products include Road Mobile Cranes, Truck Mounted Cranes, Rough Terrain Cranes, Tower Cranes, Specialized Cranes (Pick & Carry, Cab Down, Military and Pedestal Cranes), and Utility Truck Products. On the company's most recent conference call, management highlighted that construction related equipment should continue to improve; however, due to certain project funding issues in North America and political instability in Eastern Europe effecting business activity, I would not be surprised to see this segment show a decrease for the second half of the year before rebounding in 2015.
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Operating and net margins continue to remain weak but have shown a slight improvement over 1st quarter with gross margins of 18% and net margins of 5.9% (Crane operating margins were flat versus last quarter with net margins of 0% and have continued to erode over the past year with higher operating and SG&A expenses). (click to enlarge) (click to enlarge) (click to enlarge) My Projections For Terex Management's Goal of $5 in EPS by 2016: Turning to Terex management's forward looking income statement for 2014, I have projected financials using updated company guidance provided during its 2nd Quarter conference call. With 1 in 9 bridges rated as structurally deficient, and the overall average age at 42 years, US bridges are in dire need of an upgrade.
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With 1 in 9 bridges rated as structurally deficient, and the overall average age at 42 years, US bridges are in dire need of an upgrade. Strong activity related to transportation as ports have seen a major boom in spending from the private sector despite government spending remaining little changed over the past few years. By Francis Lynch : Key Developments Positive: Global infrastructure growth is expected to grow by $9 trillion annually by 2025, up from $4.2 trillion today.
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2014-09-03 00:00:00 UTC
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Is Deere & Company Stock Headed for a Freefall After Losing 8% This Year?
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https://www.nasdaq.com/articles/deere-company-stock-headed-freefall-after-losing-8-year-2014-09-03
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John Deere investors have had to put up with a bumpy ride this year. Just when the stock rekindled investors' hopes by hitting its 52-week high in April after a soft start to the year, unfavorable news from the industry pulled the plug on its run. Deere shares are down nearly 8% year-to-date, as of this writing.
DE data by YCharts
Even as I write this, the United States Department of Agriculture, or USDA's latest report has confirmed some of the fears that have been weighing heavily on John Deere's stock price. Does that mean the stock is headed even lower?
What's ailing John Deere tractors?
Deere shares lost heavily over the past four months after the market got a whiff of softening farm conditions. One of the major factors that have caught Deere unaware this year is a drop in demand for large farm equipment. Anticipation of bumper crop production has sent prices of key crops tumbling to lows not seen in four years: Corn and soybean is down nearly 20% and 30%, respectively, since May.
So how do crop prices affect Deere? While I'd urge you to read an earlier post to understand the entire cycle, to quickly reiterate, farmers' decisions to purchase equipment are closely linked to their income, or more specifically, to the cash that they receive from sale of crops and through government subsidies. Naturally, farm cash receipts take a hit when crop prices fall, thus compelling farmers to postpone large purchases, especially that of high-horsepower tractors and combines.
The following chart from the USDA's just-released Farm Sector Income Forecast report shows how net cash and farm incomes are projected to fall this year.
This bodes ill for Deere, especially since large equipment makes up more than half of the company's agriculture sales, and is typically high-premium and high-margin product. That explains why Deere's agriculture equipment sales slipped 8% year-over-year during the nine months ended July 31. What's more, the outlook for the farm-equipment industry has weakened further, as shown in the chart below.
Note the dour projections for two of Deere's most important markets - U.S. and Canada, and South America. Investors may recall how Deere launched more than 60 new machines in Latin America this past April. That aggressive expansion may appear ill-timed , going by the above projections and the ongoing economic challenges in the nation. These warning signals, coupled with Deere's weak numbers in the past couple of quarters were enough to make investors jittery.
More trouble ahead?
What's worrisome is that if Morgan Stanley is to be believed, the farm-equipment industry may be entering a downcycle . In other words, the industry could be headed for a downturn, which will be terrible news for Deere, and its investors.
I'm not trying to scare investors, but Deere's recent actions also raise some concerns. For instance, the company plans to scale back agriculture equipment production for the rest of the year, indicating weak demand expectations. More importantly, Deere has announced two major layoffs so far this month that will affect more than 1,000 workers at four of its plants. The company made it clear why it was taking the bold step: "To align the size of its manufacturing workforce with market demand for products." That doesn't sound good.
There's a strong side to Deere's business, but...
Perhaps the only silver lining for Deere investors is that the company also sells construction equipment, the market for which has strengthened considerably in recent months. Construction-equipment leader Caterpillar , for instance, reported 11% higher year-over-year construction machinery sales during its last quarter. Deere is reaping the benefits as well - While it expects farm equipment sales to fall 10% this year , it sees its construction equipment sales grow 10%.
A Deere wheel loader. Source: Deere
Unfortunately, construction business contributes less than 20% to Deere's total sales, so it can barely offset any slowdown on the company's agriculture side. Moreover, Caterpillar sounded the warning bell for some of the developing markets during its last earnings release, and even tightened its own full-year sales guidance as a result. Any weakness in global construction markets will prove double whammy for Deere.
So what should you do with your Deere shares now?
Deere expects to close 2014 with 6% and 12% lower sales and net income, respectively. Its cash from operations is also projected to fall by nearly $1 billion this year. In other words, 2014 is turning out to be a challenging year for Deere.
Nevertheless, Deere should still emerge financially strong despite the headwinds, going by its projection of roughly $3.7 billion in cash from operations for the full year. It's also worth noting that the company held cash and equivalents worth $3 billion as at the end of its last quarter.
A good portion of that cash could go into shareholder pockets if capital spending takes a backseat in the wake of weak market conditions. Deere already raised its quarterly dividend by 18% this past May, thus taking its total dividend increase since 2010 to 114%. That should give Deere investors a good reason to stick around, even if it gets hard to be bullish about the stock in the near-term.
Top dividend stocks for the next decade (Hint: John Deere isn't on the list)
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now .
The article Is Deere & Company Stock Headed for a Freefall After Losing 8% This Year? originally appeared on Fool.com.
Neha Chamaria has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DE data by YCharts Even as I write this, the United States Department of Agriculture, or USDA's latest report has confirmed some of the fears that have been weighing heavily on John Deere's stock price. While I'd urge you to read an earlier post to understand the entire cycle, to quickly reiterate, farmers' decisions to purchase equipment are closely linked to their income, or more specifically, to the cash that they receive from sale of crops and through government subsidies. John Deere investors have had to put up with a bumpy ride this year.
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Deere is reaping the benefits as well - While it expects farm equipment sales to fall 10% this year , it sees its construction equipment sales grow 10%. John Deere investors have had to put up with a bumpy ride this year. Deere shares are down nearly 8% year-to-date, as of this writing.
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There's a strong side to Deere's business, but... Perhaps the only silver lining for Deere investors is that the company also sells construction equipment, the market for which has strengthened considerably in recent months. Deere is reaping the benefits as well - While it expects farm equipment sales to fall 10% this year , it sees its construction equipment sales grow 10%. Source: Deere Unfortunately, construction business contributes less than 20% to Deere's total sales, so it can barely offset any slowdown on the company's agriculture side.
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In other words, the industry could be headed for a downturn, which will be terrible news for Deere, and its investors. Deere is reaping the benefits as well - While it expects farm equipment sales to fall 10% this year , it sees its construction equipment sales grow 10%. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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2014-08-27 00:00:00 UTC
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Daily Dividend Report: BBY, SLH, CSCO, DE, BDC, GEF
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https://www.nasdaq.com/articles/daily-dividend-report-bby-slh-csco-de-bdc-gef-2014-08-27
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Best Buy ( BBY ) has authorized the payment of a regular quarterly cash dividend of $0.19 per common share. The quarterly dividend is payable on October 2, 2014, to shareholders of record as of the close of business on September 11, 2014.
Solera Holdings ( SLH ) announced that it increased of its quarterly dividend per share of outstanding common stock and per outstanding restricted stock unit. The increase will be effective for Solera's fiscal year 2015 and translates into an annual rate of $0.78 cents per share of outstanding common stock and per outstanding restricted stock unit, up from Solera's fiscal 2014 annual rate of $0.68.
Cisco ( CSCO ) declared a quarterly dividend of $0.19 per common share to be paid on October 22, 2014 to all shareholders of record as of the close of business on October 2, 2014.
The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 a share on common stock, payable November 3, 2014, to stockholders of record on September 30, 2014.
Belden ( BDC ) declared a regular quarterly dividend of five cents per share payable on October 2, 2014 to all shareholders of record as of September 12, 2014.
Greif (GEF) declared quarterly cash dividends of $0.42 per share of Class A Common Stock and $0.63 per share of Class B Common Stock. The dividends are payable on October 1, 2014 to shareholders of record at close of business on September 19, 2014.
VIDEO: Daily Dividend Report: BBY, SLH, CSCO, DE, BDC, GEF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Best Buy ( BBY ) has authorized the payment of a regular quarterly cash dividend of $0.19 per common share. The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 a share on common stock, payable November 3, 2014, to stockholders of record on September 30, 2014. Belden ( BDC ) declared a regular quarterly dividend of five cents per share payable on October 2, 2014 to all shareholders of record as of September 12, 2014.
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Greif (GEF) declared quarterly cash dividends of $0.42 per share of Class A Common Stock and $0.63 per share of Class B Common Stock. VIDEO: Daily Dividend Report: BBY, SLH, CSCO, DE, BDC, GEF The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Best Buy ( BBY ) has authorized the payment of a regular quarterly cash dividend of $0.19 per common share.
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Cisco ( CSCO ) declared a quarterly dividend of $0.19 per common share to be paid on October 22, 2014 to all shareholders of record as of the close of business on October 2, 2014. The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 a share on common stock, payable November 3, 2014, to stockholders of record on September 30, 2014. Greif (GEF) declared quarterly cash dividends of $0.42 per share of Class A Common Stock and $0.63 per share of Class B Common Stock.
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Best Buy ( BBY ) has authorized the payment of a regular quarterly cash dividend of $0.19 per common share. The Deere & Company ( DE ) declared a regular quarterly dividend of $.60 a share on common stock, payable November 3, 2014, to stockholders of record on September 30, 2014. Belden ( BDC ) declared a regular quarterly dividend of five cents per share payable on October 2, 2014 to all shareholders of record as of September 12, 2014.
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2014-08-25 00:00:00 UTC
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Deere Adds Waterloo to List of Job Cut Sites, Shares Fall - Analyst Blog
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https://www.nasdaq.com/articles/deere-adds-waterloo-to-list-of-job-cut-sites-shares-fall-analyst-blog-2014-08-25
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In another attempt to scale back its agricultural equipment production in the wake of weak market demand for agricultural products, Deere & Company ( DE ) announced its plans to retrench 460 employees at its Waterloo, IA operations, scheduled on Oct 20, 2014. Shares of Deere slipped 1.7% following the news.
This news comes on the heels of Deere's announcement a week ago of laying off over 600 factory employees at four of its plants. The locations concerned include John Deere Harvester Works, East Moline, Ill.; John Deere Seeding and Cylinder, Moline, Ill.; John Deere Des Moines Works, Ankeny, IA; and John Deere Coffeyville, Coffeyville, KS.
None of these however come as a surprise as Deere, during its third-quarterearnings callon Aug 14, had stated its intentions to cut back on agricultural equipment production in the ensuing quarter.
In order to remain competitive, Deere continuously strives to align the size of its manufacturing workforce with market demand for products. In the recent past, Deere hired several manufacturing employees to meet increased demand for products manufactured in its Midwest U.S. factories. Thus, the current weak demand calls for production cut down across several plants. In July this year, Deere informed employees at its Ankeny facility of an extended shutdown. Further, Deere has implemented a seasonal shutdown at the John Deere Ottumwa Works, Ottumwa, IA.
Notably, news of these layoffs follows Deere's lackluster earnings. The company reported a decline in both its top and bottom line for the third quarter of fiscal 2014 (ended Jul 31, 2014). Lower shipment volumes, higher production costs primarily related to engine-emission requirements and unfavorable effects of foreign-currency exchange partially offset benefits from price realization.
Meanwhile, Deere provided a bearish outlook for fiscal 2014, expecting equipment sales to decrease around 8% year over year in the fourth quarter of fiscal 2014 and full-year sales to drop 6%. Deere also lowered its net income projection to $3.1 billion from $3.3 billion in fiscal 2014.
Given the increased global demand for food, shelter and infrastructure, we believe that the long-term outlook for Deere remains strong. Meanwhile, in the near term, even though net farm income remains at high levels, farmer sentiments regarding capital goods purchases are becoming more conservative due to lower commodity prices.
Deere will nevertheless benefit from recovery in the construction sector and stabilization in the European economy. Furthermore, banking on its strong balance sheet, the company has the leverage to hike dividends and execute share repurchases.
Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada through branch offices as well as through distributors and operates through dealers to resell products internationally.
Deere currently holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include ACCO Brands Corporation ( ACCO ), AO Smith Corp. ( AOS ) and ARC Document Solutions, Inc. ( ARC ). All of these carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
SMITH (AO) CORP (AOS): Free Stock Analysis Report
ACCO BRANDS CP (ACCO): Free Stock Analysis Report
ARC DOC SOLUT (ARC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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None of these however come as a surprise as Deere, during its third-quarterearnings callon Aug 14, had stated its intentions to cut back on agricultural equipment production in the ensuing quarter. In another attempt to scale back its agricultural equipment production in the wake of weak market demand for agricultural products, Deere & Company ( DE ) announced its plans to retrench 460 employees at its Waterloo, IA operations, scheduled on Oct 20, 2014. Shares of Deere slipped 1.7% following the news.
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The locations concerned include John Deere Harvester Works, East Moline, Ill.; John Deere Seeding and Cylinder, Moline, Ill.; John Deere Des Moines Works, Ankeny, IA; and John Deere Coffeyville, Coffeyville, KS. Some better-ranked stocks in the sector include ACCO Brands Corporation ( ACCO ), AO Smith Corp. ( AOS ) and ARC Document Solutions, Inc. ( ARC ). Click to get this free report DEERE & CO (DE): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report ARC DOC SOLUT (ARC): Free Stock Analysis Report To read this article on Zacks.com click here.
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In another attempt to scale back its agricultural equipment production in the wake of weak market demand for agricultural products, Deere & Company ( DE ) announced its plans to retrench 460 employees at its Waterloo, IA operations, scheduled on Oct 20, 2014. The locations concerned include John Deere Harvester Works, East Moline, Ill.; John Deere Seeding and Cylinder, Moline, Ill.; John Deere Des Moines Works, Ankeny, IA; and John Deere Coffeyville, Coffeyville, KS. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report ARC DOC SOLUT (ARC): Free Stock Analysis Report To read this article on Zacks.com click here.
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In another attempt to scale back its agricultural equipment production in the wake of weak market demand for agricultural products, Deere & Company ( DE ) announced its plans to retrench 460 employees at its Waterloo, IA operations, scheduled on Oct 20, 2014. This news comes on the heels of Deere's announcement a week ago of laying off over 600 factory employees at four of its plants. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report ARC DOC SOLUT (ARC): Free Stock Analysis Report To read this article on Zacks.com click here.
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2014-08-22 00:00:00 UTC
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Markets Gain; Foot Locker Posts Upbeat Profit
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https://www.nasdaq.com/articles/markets-gain-foot-locker-posts-upbeat-profit-2014-08-22
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Following the market opening Friday, the Dow traded up 0.13 percent to 17,061.91 while the NASDAQ surged 0.13 percent to 4,537.97. The S&P also rose, gaining 0.05 percent to 1,993.31.
Leading and Lagging Sectors
Non-cyclical consumer goods & services shares gained 0.09 percent in trading on Friday. Leading the sector was strength from The Fresh Market (NASDAQ: TFM ) and Keurig Green Mountain (NASDAQ: GMCR ).
In trading on Friday, basic materials shares were relative laggards, down on the day by about 0.58 percent. Meanwhile, top decliners in the sector included Companhia Siderurgica Nacional (NYSE: SID ), down 2.5 percent, and BHP Billiton plc (NYSE: BBL ), off 1.5 percent.
Top Headline
Foot Locker (NYSE: FL ) reported stronger-than-expected fiscal second-quarter results. The New York-based company posted a quarterly profit of $92 million, or $0.63 per share, versus a year-ago profit of $66 million, or $0.44 per share. Excluding non-recurring items, Foot Locker's adjusted earnings came in at $0.64 per share.
Its sales climbed 13% to $1.64 billion. Excluding the effect of foreign currency fluctuations, Foot Locker's sales surged 11.7%. However, analysts were expecting earnings of $0.54 per share on revenue of $1.57 billion. Foot Locker's same-store sales surged 7% in the quarter.
Equities Trading UP
Dynegy (NYSE: DYN ) shares shot up 12.42 percent to $33.41 after the company announced its plans to acquire assets from Duke Energy (NYSE: DUK ) and Energy Capital Partners for a total consideration of $6.25 billion.
Shares of The Fresh Market (NASDAQ: TFM ) got a boost, shooting up 8.71 percent to $33.08 after the company reported better-than-expected Q2 earnings. Analysts at BB&T Capital upgraded Fresh Market from Hold to Buy.
GameStop (NYSE: GME ) shares were also up, gaining 6.73 percent to $43.21 after the company reported upbeat results for its fiscal second-quarter.
Equities Trading DOWN
Shares of Aeropostale (NYSE: ARO ) were down 8.18 percent to $3.59 after the company issued a downbeat third-quarter outlook. However, the company reported stronger-than-expected second-quarter results.
ANN (NYSE: ANN ) shares tumbled 5.41 percent to $36.71 after the company reported upbeat profit for its fiscal second quarter and lowered its FY15 revenue outlook.
Deere & Company (NYSE: DE ) was down, falling 1.04 percent to $85.31 after the company announced its plans to lay off around 460 Waterloo, Iowa employees. Macquarie downgraded Deere & Company from Neutral to Underperform and lowered the price target from $85.00 to $75.00.
Commodities
In commodity news, oil traded down 0.63 percent to $93.37, while gold traded up 0.27 percent to $1,278.90.
Silver traded up 0.04 percent Friday to $19.50, while copper rose 0.67 percent to $3.22.
Eurozone
European shares were lower today. The eurozone's STOXX 600 slipped 0.24 percent, the Spanish Ibex Index fell 0.40 percent, while Italy's FTSE MIB Index declined 0.33 percent. Meanwhile, the German DAX fell 0.45 percent and the French CAC 40 declined 0.80 percent while UK shares dropped 0.08 percent.
Economics
On the economics calendar Friday, there is no important data due out.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Following the market opening Friday, the Dow traded up 0.13 percent to 17,061.91 while the NASDAQ surged 0.13 percent to 4,537.97. Meanwhile, top decliners in the sector included Companhia Siderurgica Nacional (NYSE: SID ), down 2.5 percent, and BHP Billiton plc (NYSE: BBL ), off 1.5 percent. Equities Trading UP Dynegy (NYSE: DYN ) shares shot up 12.42 percent to $33.41 after the company announced its plans to acquire assets from Duke Energy (NYSE: DUK ) and Energy Capital Partners for a total consideration of $6.25 billion.
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Following the market opening Friday, the Dow traded up 0.13 percent to 17,061.91 while the NASDAQ surged 0.13 percent to 4,537.97. Meanwhile, top decliners in the sector included Companhia Siderurgica Nacional (NYSE: SID ), down 2.5 percent, and BHP Billiton plc (NYSE: BBL ), off 1.5 percent. Equities Trading UP Dynegy (NYSE: DYN ) shares shot up 12.42 percent to $33.41 after the company announced its plans to acquire assets from Duke Energy (NYSE: DUK ) and Energy Capital Partners for a total consideration of $6.25 billion.
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Following the market opening Friday, the Dow traded up 0.13 percent to 17,061.91 while the NASDAQ surged 0.13 percent to 4,537.97. Equities Trading UP Dynegy (NYSE: DYN ) shares shot up 12.42 percent to $33.41 after the company announced its plans to acquire assets from Duke Energy (NYSE: DUK ) and Energy Capital Partners for a total consideration of $6.25 billion. Meanwhile, the German DAX fell 0.45 percent and the French CAC 40 declined 0.80 percent while UK shares dropped 0.08 percent.
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Following the market opening Friday, the Dow traded up 0.13 percent to 17,061.91 while the NASDAQ surged 0.13 percent to 4,537.97. Meanwhile, top decliners in the sector included Companhia Siderurgica Nacional (NYSE: SID ), down 2.5 percent, and BHP Billiton plc (NYSE: BBL ), off 1.5 percent. Equities Trading UP Dynegy (NYSE: DYN ) shares shot up 12.42 percent to $33.41 after the company announced its plans to acquire assets from Duke Energy (NYSE: DUK ) and Energy Capital Partners for a total consideration of $6.25 billion.
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2014-08-22 00:00:00 UTC
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3 Reasons Deere's Stock Could Soar
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https://www.nasdaq.com/articles/3-reasons-deeres-stock-could-soar-2014-08-22
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Deere 's share price has struggled in the last couple years and is now almost flat from where it was in 2011. Essentially, Deere hasn't participated in the broader market rally because investors have been pricing in the effect of declining crop prices on demand for its agricultural equipment. In issuing its third-quarter results, Deere management downgraded expectations for equipment sales and net income for the full year. With that said, there are three key reasons why the stock could outperform going forward.
Deere faces challenges
This article will focus on outlining the upside potential for Deere. For some background, Fools can find out more about Deere's recent results here , and read about the five key takeaways from the company'searnings conference callhere .
Conditions are likely to get tougher in the near term for Deere, as the company and the U.S. Department of Agriculture have both lowered expectations for future key crop prices. Lower crop prices (principally for goods such as soybeans, cotton, corn, and wheat) affect farmers' income and therefore their willingness to pay for agricultural machinery.
The consensus may be wrong
Simply put, the single biggest driver of Deere's stock price is key crop prices, such as corn and wheat. In fact, the agriculture and turf made up more than 80% of revenue in the first nine months of Deere's fiscal year, and the following chart demonstrates the relationship between crop prices and Deere.
With that said, the consensus opinion (including the USDA and Deere's management) is that crop prices will be lower in 2014 & 2015, but ultimately who knows? Who can ultimately predict what the weather will be like?
Moreover, conditions are different from 2008. First, the same hedge fund speculative fervor does not appear to be built into commodity prices, so the fall in crop prices might not be so dramatic. Second, the last recession was about credit, and farmers found it hard to get financing to buy equipment. Indeed, Deere's own financial services arm recently reported that its provision for credit losses (a good credit quality indicator) was at a minuscule 0.1%.
China is likely to increase farming subsidies
The third reason for optimism on the stock is that one of Deere's key growth markets, China, looks set to increase farming subsidies. According to a Reuters article China is set to increase farming subsidies by 10% in 2014. Moreover, China's subsidies only make up 3% of farmer's income, whereas in Western economies the figure is generally around 40%.
China is under increasing pressure to ensure self-sufficiency in food as increasing urbanization and economic growth is creating a burgeoning middle class that is hungry for protein. Fools already know about Deere's exposure to China from an article linked here .
The takeaway
Deere's near-term prospects don't look great, but sometimes that is the best time to buy the stock. No one really knows what the weather will be, market conditions are not the same as they were in 2008, and emerging economies, like China, are keen on increasing farming subsidies. For these three reasons, Deere could be a stock to buy.
Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here !
The article 3 Reasons Deere's Stock Could Soar originally appeared on Fool.com.
Lee Samaha has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In issuing its third-quarter results, Deere management downgraded expectations for equipment sales and net income for the full year. Conditions are likely to get tougher in the near term for Deere, as the company and the U.S. Department of Agriculture have both lowered expectations for future key crop prices. Deere 's share price has struggled in the last couple years and is now almost flat from where it was in 2011.
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The consensus may be wrong Simply put, the single biggest driver of Deere's stock price is key crop prices, such as corn and wheat. China is likely to increase farming subsidies The third reason for optimism on the stock is that one of Deere's key growth markets, China, looks set to increase farming subsidies. Deere 's share price has struggled in the last couple years and is now almost flat from where it was in 2011.
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The consensus may be wrong Simply put, the single biggest driver of Deere's stock price is key crop prices, such as corn and wheat. In fact, the agriculture and turf made up more than 80% of revenue in the first nine months of Deere's fiscal year, and the following chart demonstrates the relationship between crop prices and Deere. China is likely to increase farming subsidies The third reason for optimism on the stock is that one of Deere's key growth markets, China, looks set to increase farming subsidies.
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Essentially, Deere hasn't participated in the broader market rally because investors have been pricing in the effect of declining crop prices on demand for its agricultural equipment. With that said, the consensus opinion (including the USDA and Deere's management) is that crop prices will be lower in 2014 & 2015, but ultimately who knows? Deere 's share price has struggled in the last couple years and is now almost flat from where it was in 2011.
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2014-08-20 00:00:00 UTC
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Deere Cuts 600 Jobs to Align Production with Weak Demand - Analyst Blog
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DE
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https://www.nasdaq.com/articles/deere-cuts-600-jobs-to-align-production-with-weak-demand-analyst-blog-2014-08-20
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Shares of Deere & Company ( DE ) slipped 0.46% after it announced that it will lay off more than 600 factory employees permanently at four of its plants to scale back its agricultural equipment production in the wake of weak market demand for its products. This however, does not come as a surprise as Deere during its third-quarterearnings callyesterday, stated that it is planning to reduce agricultural equipment production in the fourth quarter.
Moreover, Deere will also implement seasonal and inventory adjustment shutdowns and temporary layoffs at several of its affected factories. The locations concerned include John Deere Harvester Works, East Moline, Ill.; John Deere Seeding and Cylinder, Moline, Ill.; John Deere Des Moines Works, Ankeny, IA; and John Deere Coffeyville, Coffeyville, KS..
In order to remain competitive, Deere continuously strives to align the size of its manufacturing workforce with market demand for products. In the recent past, Deere had hired several hundred manufacturing employees to meet increased demand for products manufactured in its Midwest U.S. factories. Given the current weak demand, the cut down in production was necessary. In July, Deere informed employees at its Ankeny facility of an extended shutdown affecting most manufacturing employees at that location. Deere has also implemented a seasonal shutdown affecting most of the manufacturing workforce at the John Deere Ottumwa Works, Ottumwa, IA.
The company reported a decline in both its top and bottom lines for the third quarter of fiscal 2014 (ended Jul 31, 2014). Lower shipment volumes, higher production costs primarily related to engine-emission requirements and unfavorable effects of foreign-currency exchange, partially offset benefits from price realization.
Deere expects equipment sales to decrease around 8% year over year for the fourth quarter of fiscal 2014. For the full year, Deere trimmed its forecast to a 6% drop from the previous expectation of a 4% dip. Deere also lowered its net income projection to $3.1 billion from $3.3 billion for fiscal 2014.
Given the increased global demand for food, shelter and infrastructure, we believe that the long-term outlook for Deere remains strong. Meanwhile in the near term, even though net farm income remains at high levels, farmer sentiments regarding capital goods purchases are becoming more conservative due to lower commodity prices.
Deere will nevertheless benefit from recovery in the construction sector and stabilization in the European economy. Furthermore, given its strong balance sheet, the company can continue to increase dividends and repurchase shares.
Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada through branch offices as well as through distributors and operates through dealers to resell products internationally.
Deere currently holds a Zacks Rank #3 (Hold). Some better ranked stocks in the sector include ACCO Brands Corporation ( ACCO ), AO Smith Corp. ( AOS ) and ARC Document Solutions, Inc. ( ARC ). All of these carry a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In order to remain competitive, Deere continuously strives to align the size of its manufacturing workforce with market demand for products. Shares of Deere & Company ( DE ) slipped 0.46% after it announced that it will lay off more than 600 factory employees permanently at four of its plants to scale back its agricultural equipment production in the wake of weak market demand for its products. This however, does not come as a surprise as Deere during its third-quarterearnings callyesterday, stated that it is planning to reduce agricultural equipment production in the fourth quarter.
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The locations concerned include John Deere Harvester Works, East Moline, Ill.; John Deere Seeding and Cylinder, Moline, Ill.; John Deere Des Moines Works, Ankeny, IA; and John Deere Coffeyville, Coffeyville, KS.. Some better ranked stocks in the sector include ACCO Brands Corporation ( ACCO ), AO Smith Corp. ( AOS ) and ARC Document Solutions, Inc. ( ARC ). Click to get this free report DEERE & CO (DE): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report ARC DOC SOLUT (ARC): Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of Deere & Company ( DE ) slipped 0.46% after it announced that it will lay off more than 600 factory employees permanently at four of its plants to scale back its agricultural equipment production in the wake of weak market demand for its products. The locations concerned include John Deere Harvester Works, East Moline, Ill.; John Deere Seeding and Cylinder, Moline, Ill.; John Deere Des Moines Works, Ankeny, IA; and John Deere Coffeyville, Coffeyville, KS.. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report ARC DOC SOLUT (ARC): Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of Deere & Company ( DE ) slipped 0.46% after it announced that it will lay off more than 600 factory employees permanently at four of its plants to scale back its agricultural equipment production in the wake of weak market demand for its products. Deere expects equipment sales to decrease around 8% year over year for the fourth quarter of fiscal 2014. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report SMITH (AO) CORP (AOS): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report ARC DOC SOLUT (ARC): Free Stock Analysis Report To read this article on Zacks.com click here.
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2014-08-14 00:00:00 UTC
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#PreMarket Primer: Thursday, August 14: Investors Are Unfazed By Weak Retail Sales
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https://www.nasdaq.com/articles/premarket-primer-thursday-august-14-investors-are-unfazed-weak-retail-sales-2014-08-14
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Investors shrugged off weaker-than-expected retail sales on Wednesday, as most believe that the nation's robust economic growth will help boost spending activity in the future.
The Commerce Department said the nation's core retail sales increased just 0.1 percent in July, the lowest reading since January. Despite that, investors remained positive on the hopes that job growth will continue and in turn boost consumer spending.
Top News
In other news around the markets:
GDP figures out on Thursday from the eurozone were gloomy, as expected, setting expectations for the bloc's report as a whole quite low. France posted no growth from the first to the second quarter while Germany, the bloc's steam engine, announced a 0.2 percent contraction. The figures suggest that the eurozone's economy will have grown just 0.1 percent on the quarter. After reviewing Iliad SA's $15 billion acquisition offer, T-Mobile CEO Braxton Carter rejected the proposal, saying it was "inadequate." However, Braxton didn't close the door on negotiations. Instead, he hinted that T-Mobile might be open to the idea if the price is right. Following the release of disappointing second quarter earnings, Cisco Systems announced that it was planning to cut eight percent of its workforce, or 6,000 employees, in the coming months. This will be the company's second round of mass layoffs in as many years; last year, it reduced its workforce by five percent by eliminating 4,000 workers. After a U.S. military assessment team visited Mount Sinjar in Northern Iraq on Wednesday, the Pentagon released a statement saying there were far less people trapped than originally expected, and that they were in a more stable condition than U.S. officials had thought. With the situation on Mount Sinjar looking less dire, a U.S. rescue mission is much less likely as the White House is reluctant to send in more ground troops.
Asian Markets
Asian markets were mixed; the NIKKEI was up 0.66 percent but the Shanghai composite and Shenzhen composite were down 0.41 percent and 0.75 percent respectively. The KOSPI rose 0.04 percent, while the Hang Seng index fell 0.37 percent.
European Markets
European markets began the day on a low note with disappointing GDP data coming in slowly. The FTSE was down 0.15 percent, the STOXX 600 fell 0.26 percent, the CAC 40 lost 0.49 percent and Italy's MIB was down 0.68 percent.
Commodities
Energy futures were lower with most believing that the market is currently oversupplied. Brent futures lost 0.46 percent and WTI futures were down 0.43 percent. Gold lost 0.06 percent, but silver was up 0.15 percent, while industrial metals were mostly lower with the exception of copper, which gained 0.06 percent. Aluminum was down 1.15 percent, zinc lost 2.02 percent and tin fell 0.33 percent.
Currencies
Currency markets were quiet; the euro was steady at $1.3364 and gained 0.04 percent against the pound and 0.09 percent against the yen. The dollar rose 0.10 percent against the yen and 0.04 percent against the pound, but lost 0.02 percent against the franc.
Earnings
Notable earnings released on Wednesday included:
Cisco Systems (NASDAQ: CSCO ) reported fourth quarter EPS of $0.55 on revenue of $12.40 billion, compared to last year's EPS of $0.52 on revenue of $12.42 billion. Deere & Company (NYSE: DE ) reported third quarter EPS of $2.33 on revenue of $8.72 billion, compared to last year's EPS of $2.56 on revenue of $9.32 billion. Macy's (NYSE: M ) reported second quarter EPS of $0.80 on revenue of $6.27 billion, compared to last year's EPS of $0.72 on revenue of $6.07 billion. Pinnacle Foods (NYSE: PF ) reported second quarter EPS of $0.33 on revenue of $617.80 million, compared to last year's EPS of $0.29 on revenue of $569.04 million.
Stocks moving in the Premarket included:
United Technologies (NYSE: UTX ) gained 1.27 percent in premarket trade after rising 1.71 percent over the past week. Whole Foods Market (NASDAQ: WFM ) was up 0.76 percent in premarket trade after losing 1.38 percent over the past five days. Celgene (NASDAQ: CELG ) was up 0.67 percent in premarket trade after rising 2.27 percent on Wednesday. Freeport-McMoRan (NYSE: FCX ) was down 0.66 percent in premarket trade after losing 1.33 percent on Wednesday.
Notable earnings releases expected on Thursday include:
Wal-Mart Stores (NYSE: WMT ) is expected to report second quarter EPS of $1.21 on revenue of $118.98 billion, compared to last year's EPS of $1.24 on revenue of $116.94 billion. Kohl's (NYSE: KSS ) is expected to report second quarter EPS of $1.07 on revenue of $4.28 billion, compared to last year's EPS of $1.04 on revenue of $4.29 billion. Nordstrom (NYSE: JWN ) is expected to report second quarter EPS of $0.95 on revenue of $3.39 billion, compared to last year's EPS of $0.93 on revenue of $3.20 billion. J.C. Penney Company (NYSE: ) is expected to report a second quarter loss of $0.93 on revenue of $2.78 billion, compared to last year's loss of $2.20 on revenue of $2.66 billion.
Economics
Eurozone GDP data will be the star of Thursday'seconomic calendaras investors look for any indication that the bloc's struggles are at an end. The US will also put out several important economic indicators including consumer confidence, export prices and initial and continuing jobless claims.
For a recap of Wednesday's market action, click .
Tune into Benzinga's pre-market info show with Fari Hamzei, Dave Landry & JC Parets here .
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Commerce Department said the nation's core retail sales increased just 0.1 percent in July, the lowest reading since January. Despite that, investors remained positive on the hopes that job growth will continue and in turn boost consumer spending. After reviewing Iliad SA's $15 billion acquisition offer, T-Mobile CEO Braxton Carter rejected the proposal, saying it was "inadequate."
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Earnings Notable earnings released on Wednesday included: Cisco Systems (NASDAQ: CSCO ) reported fourth quarter EPS of $0.55 on revenue of $12.40 billion, compared to last year's EPS of $0.52 on revenue of $12.42 billion. Notable earnings releases expected on Thursday include: Wal-Mart Stores (NYSE: WMT ) is expected to report second quarter EPS of $1.21 on revenue of $118.98 billion, compared to last year's EPS of $1.24 on revenue of $116.94 billion. The Commerce Department said the nation's core retail sales increased just 0.1 percent in July, the lowest reading since January.
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Notable earnings releases expected on Thursday include: Wal-Mart Stores (NYSE: WMT ) is expected to report second quarter EPS of $1.21 on revenue of $118.98 billion, compared to last year's EPS of $1.24 on revenue of $116.94 billion. The Commerce Department said the nation's core retail sales increased just 0.1 percent in July, the lowest reading since January. Despite that, investors remained positive on the hopes that job growth will continue and in turn boost consumer spending.
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The Commerce Department said the nation's core retail sales increased just 0.1 percent in July, the lowest reading since January. Despite that, investors remained positive on the hopes that job growth will continue and in turn boost consumer spending. After reviewing Iliad SA's $15 billion acquisition offer, T-Mobile CEO Braxton Carter rejected the proposal, saying it was "inadequate."
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2014-08-14 00:00:00 UTC
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5 Things Deere's Management Wants You to Know
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https://www.nasdaq.com/articles/5-things-deeres-management-wants-you-know-2014-08-14
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After a disappointing earnings report that saw the company lowering its full-year income and equipment sales expectations, Deere & Company's management was obliged to outline how it would deal with weaker conditions. Current conditions are difficult in the farming machinery industry; but what is Deere doing about it? It's time to look at the five key takeaways from its third-quarter conference call.
Deere's end markets getting weaker
As Fools can read about here , Deere's latest earnings report produced a downgrade to sales expectations in its core agriculture and turf segment -- 81% of sales year to date. Essentially, the problem is that weak crop prices are lowering farmers' profits and encouraging them to hold back on purchasing farming equipment.
While lower crop prices are likely to impact farmers everywhere, the first takeaway relates to some specific commentary on China in both agriculture and construction. This is something that investors in Caterpillar should follow closely, too.
In other words, conditions are getting worse in China (construction included), and agricultural conditions are getting worse due to slowing of subsidies. It isn't just about crop prices.
Deere adjusts to weaker conditions
When end markets weaken, companies are usually forced to make adjustments, and Deere outlined some related initiatives, which make up the next two takeaways. First, management outlined that it would be "scaling back production" in line with lower end demand in agriculture. This is a realistic move that investors should welcome, as Deere also downgraded its expectations for U.S. Farm commodity prices for corn and wheat during the next two years.
The second adjustment, and the third key takeaway, is the introduction of a "John Deere certified pre-owned program," whereby products will be tested by certified technicians. This is a good move because it will enable its dealers to sell used equipment more easily. The benefit is that its dealers don't build up too much used inventory and, consequently, Deere can protect pricing on its new equipment.
What about margins?
While Deere is adjusting to the reality of negatively trending crop prices, the question of margin erosion is always likely to come up. In truth, management was noncommittal on the subject. Director of Investor Relations, Tony Huegel, outlined that margin guidance for 2015 would be discussed on the next conference call. This is something to look out for, and I will cover this issue in a future article.
On the one hand, Deere is clearly facing margin pressure from declining sales, and "many" of its small products are transitioning to Tier 4 -- a tighter emissions standard that requires investment. On the other, lower steel prices could reduce its material costs and, as outlined above, Deere is taking measures to scale back production.
Don't forget the weather
The final takeaway relates to the great known/unknown within the agricultural industry: the weather. Indeed, Huegel asked himself a question out loud on the subject: "Question is, what's going to happen with the crop that will get planted next year in terms of do you have yet a third year in a row of good growing conditions on a global basis, or do you have a year where those yields moderate a bit due to weather?"
This is a key point because predictions for crop prices have been reduced in expectation of bumper crops this year. For example, the United States Department of Agriculture, or USDA, recently predicted record U.S. corn and soybean production in 2014 -- something likely to put downward pressure on prices.
However, neither the USDA, Deere, nor anyone else, for that matter, can be completely confident of global weather conditions in 2015. In a sense, expectations are now so low for crop prices that any negative surprise from the weather, in any major crop-producing region of the world, could see sentiment toward the sector change rapidly.
The bottom line
All told, conditions are getting tougher. Deere's management is being proactive, and adjusting to it by scaling back production and helping its dealers to sell used equipment via its pre-owned program. On a more negative note, the information on China was slightly worrying, and the downtrend in crop prices was, too. However, the weather is likely to be an important factor and, if everyone is assuming some clement crop-growing weather in 2015, there could be some positive upside for Deere, given any poor weather.
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The article 5 Things Deere's Management Wants You to Know originally appeared on Fool.com.
Lee Samaha has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the one hand, Deere is clearly facing margin pressure from declining sales, and "many" of its small products are transitioning to Tier 4 -- a tighter emissions standard that requires investment. For example, the United States Department of Agriculture, or USDA, recently predicted record U.S. corn and soybean production in 2014 -- something likely to put downward pressure on prices. After a disappointing earnings report that saw the company lowering its full-year income and equipment sales expectations, Deere & Company's management was obliged to outline how it would deal with weaker conditions.
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After a disappointing earnings report that saw the company lowering its full-year income and equipment sales expectations, Deere & Company's management was obliged to outline how it would deal with weaker conditions. Deere adjusts to weaker conditions When end markets weaken, companies are usually forced to make adjustments, and Deere outlined some related initiatives, which make up the next two takeaways. First, management outlined that it would be "scaling back production" in line with lower end demand in agriculture.
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After a disappointing earnings report that saw the company lowering its full-year income and equipment sales expectations, Deere & Company's management was obliged to outline how it would deal with weaker conditions. Deere's end markets getting weaker As Fools can read about here , Deere's latest earnings report produced a downgrade to sales expectations in its core agriculture and turf segment -- 81% of sales year to date. Deere adjusts to weaker conditions When end markets weaken, companies are usually forced to make adjustments, and Deere outlined some related initiatives, which make up the next two takeaways.
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First, management outlined that it would be "scaling back production" in line with lower end demand in agriculture. After a disappointing earnings report that saw the company lowering its full-year income and equipment sales expectations, Deere & Company's management was obliged to outline how it would deal with weaker conditions. Current conditions are difficult in the farming machinery industry; but what is Deere doing about it?
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2014-08-13 00:00:00 UTC
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Data Informs Retail Earnings Season - Ahead of Wall Street
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https://www.nasdaq.com/articles/data-informs-retail-earnings-season-ahead-wall-street-2014-08-13
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Wednesday, August 13, 2014
Stocks are indicated to open in the positive, bucking the overwhelmingly negative tone of this morning's data - ranging from the soft U.S. retail sales report to a weak read from the Japanese economy and the surprising Macy's( M ) miss.
The contraction in the Japanese economy in Q2 didn't come as a surprise - the market expected it as a direct payback for the consumption-tax hike that took effect at the start of April. In fact, it came in modestly lower than expected, but that was primarily due to inventories. That said, the sharp pullback in the 3rd largest economy of the world - down -1.7% on a quarter-over-quarter basis and -6.8% on a year-over-year basis - is a reminder of the fragility of the global economic recovery.
Japan's economy is expected to bounce back in Q3 and beyond, but nobody can say something comparable about the Chinese and Euro-Zone economies, with recent data showing steady slides in the growth momentum of these two regions. In fact, it's hard to say much positive about any economic region beyond the U.S. and to some extent the U.K.
On economic data, the July Retail Sales read missed estimates on the 'headline' as well as the report's internals, with no major revisions to the prior month's numbers. The monthly Retail Sales report isn't a perfect proxy for the GDP report's consumer spending component as it only tracks nominal (or non-inflation-adjusted) merchandise sales at the retail and food service establishments, but it nevertheless gives us good sense of what is happening in this key part of the economy. What this report shows is that the bounce-back that we saw in Q2 consumer spending may not be carrying through to the current period.
Consumer spending has been OK, neither good nor bad. But the hopes has been that the recent signs of improvement in the labor market would give households enough buying power to start spending. We didn't see that in this report.
The Retail sector is in the spotlight on the earnings front as well, with a big part of the remaining Q2 earnings reports belonging to the sector. It hasn't been a good earnings season for the sector thus far, with most companies coming short of already-low estimates. This morning's weak report from Macy's, which has been a stand-out performer lately, will cause expectations for the sector to come down even further. Unlike Wal-Mart ( WMT ), which reports before the open on Thursday and isn't expected to show much strength, Macy's was expected to show better results. But it didn't.
Beyond Retail, we saw a weak report from Deere & Company ( DE ) this morning, with the farm-equipment giant beating estimates but lowering outlook. Including these reports, the scorecard now shows Q2 results from 459 S&P 500 companies, with total earnings up +8.8% on +4.5% higher revenues.
Sheraz Mian
Director of Research
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Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Beyond Retail, we saw a weak report from Deere & Company ( DE ) this morning, with the farm-equipment giant beating estimates but lowering outlook. In fact, it came in modestly lower than expected, but that was primarily due to inventories. That said, the sharp pullback in the 3rd largest economy of the world - down -1.7% on a quarter-over-quarter basis and -6.8% on a year-over-year basis - is a reminder of the fragility of the global economic recovery.
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Click to get this free report MACYS INC (M): Free Stock Analysis Report WAL-MART STORES (WMT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, it came in modestly lower than expected, but that was primarily due to inventories. That said, the sharp pullback in the 3rd largest economy of the world - down -1.7% on a quarter-over-quarter basis and -6.8% on a year-over-year basis - is a reminder of the fragility of the global economic recovery.
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Click to get this free report MACYS INC (M): Free Stock Analysis Report WAL-MART STORES (WMT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, it came in modestly lower than expected, but that was primarily due to inventories. That said, the sharp pullback in the 3rd largest economy of the world - down -1.7% on a quarter-over-quarter basis and -6.8% on a year-over-year basis - is a reminder of the fragility of the global economic recovery.
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Click to get this free report MACYS INC (M): Free Stock Analysis Report WAL-MART STORES (WMT): Free Stock Analysis Report DEERE & CO (DE): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, it came in modestly lower than expected, but that was primarily due to inventories. That said, the sharp pullback in the 3rd largest economy of the world - down -1.7% on a quarter-over-quarter basis and -6.8% on a year-over-year basis - is a reminder of the fragility of the global economic recovery.
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2014-08-13 00:00:00 UTC
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Deere Beats Q3 Earnings, Falls on Y/Y Decline & Weak View - Analyst Blog
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https://www.nasdaq.com/articles/deere-beats-q3-earnings-falls-on-y-y-decline-weak-view-analyst-blog-2014-08-13
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Shares of Deere & Company ( DE ) dipped 1.25% during the pre-market trading session today, Aug 13, on reporting a decline in both its top and bottom lines for the third quarter of fiscal 2014 (ended Jul 31, 2014). The company also trimmed its guidance for fiscal 2014 which dragged the share price to $85.40.
Earnings per share were reported at $2.33, down 9% from $2.56 earned in the prior-year quarter. Earnings, however, beat the Zacks Consensus Estimate of $2.19, delivering an earnings surprise of +6%.
Lower shipment volumes, higher production costs primarily related to engine-emission requirements and unfavorable effects of foreign-currency exchange, partially offset benefits from price realization.
Operational Update
Deere's worldwide total sales dipped 5% year over year to $9.50 billion, surpassing the Zacks Consensus Estimate of $8.77 billion. Net sales of equipment operations (which comprise of Agriculture and Turf, Construction and Forestry) were $8.7 billion, down 6% year over year, including a price realization of 2%, offset by a 1% unfavorable impact from currency translation. Region-wise, equipment net sales were down 8% in the U.S. and Canada and 4% in rest of the world.
Cost of sales in the quarter decreased 3% year over year to $6.61 billion. Gross profit during the quarter was $2.9 billion, down 8.9% year over year. Selling, administrative and general expenses dipped 11% to $820.7 million. Operating profit declined 17% year over year to $1.4 billion.
Operating income from equipment operations plunged 21% year over year to $1.13 billion due to lower shipment volumes, higher production costs and the unfavorable effects of foreign currency exchange.
Deere & Company - Earnings Surprise | FindTheBest
Segment Performance
The Agriculture & Turf segment sales decreased 11% year over year to $7 billion, as lower shipment volumes, sale of John Deere Landscapes and the unfavorable currency translation, partially offset price realization. Operating profit of the segment slumped 30% year over year to $941 million, also due to the above mentioned reasons.
Construction & Forestry sales improved 19% year over year to $1.75 billion, attributed to higher shipment volumes and price realization, partially offset by the unfavorable currency translation. Operating profit in the segment surged 81% year over year to $194 million, driven by higher shipment volumes and price realization, partially offset by a less favorable product mix.
Net revenues at Deere's Financial Services operations were $656 million in the reported quarter, up 12% year over year. The segment's operating profit was $249 million, compared with $234 million in the prior-year quarter. Net income in this segment was $162 million compared with $150 million in the year-ago quarter. The improvement stemmed from growth in credit portfolio, partially offset by higher provision for credit losses and higher selling, administrative and general expenses.
Financial Position
As of Jul 31, 2014, Deere had cash and cash equivalents of $3 billion, down from $3.1 billion as of Jul 31, 2013. Long-term borrowings were at $24 billion as of Jul 31, 2014 compared with $21.7 billion as of Jul 31, 2013. Cash flow from operating activities for the period of nine months ended Jul 31, 2014 was $682 million compared with $587.8 million in the year-ago period.
Looking Ahead
Deere expects equipment sales to decrease around 8% year over year for the fourth quarter of fiscal 2014. For the full year, Deere trimmed its forecast to a 6% drop from the previous expectation of a 4% dip. Deere also lowered its net income projection to $3.1 billion from $3.3 billion for fiscal 2014.
Segment-wise, Deere projects Agriculture and Turf equipment sales to decline 10% for fiscal 2014, down from the previous expectation of a 7% drop. This includes a negative currency translation effect of about 1%.
Region-wise, Deere expects that industry farm machinery sales in the U.S. and Canada will decline around 10% year over year in fiscal 2014. In Europe, sales are projected to be down 5% due to lower commodity prices and farm income. Sales in the Commonwealth of Independent States are expected to be significantly lower. Sales in Asia are expected to be flat year over year. In South America, industry sales of tractors and combines are expected to decline by 15% year over year.
Deere expects sales growth of turf and utility equipment in the U.S. and Canada to range from flat to up 5%. The company foresees global sales for Construction & Forestry equipment to advance about 10%, partly because of the recovery in the U.S. economy and a rise in housing starts. Global forestry sales are expected to be higher, driven by economic growth and higher sales in the European markets. Net income from Financial Services is estimated at around $600 million.
Our View
Given the increased global demand for food, shelter and infrastructure, we believe that the long-term outlook for Deere remains strong. Meanwhile in the near term, even though net farm income remains at high levels, farmer sentiments regarding capital goods purchases are becoming more conservative due to lower commodity prices.
Deere will nevertheless benefit from recovery in the construction sector and stabilization in the European economy. Furthermore, given its strong balance sheet, the company can continue to increase dividends and repurchase shares.
Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada through branch offices as well as through distributors and operates through dealers to resell products internationally.
Deere currently holds a Zacks Rank #3 (Hold). One of Deere's peers, Lindsay Corp. ( LNN ) reported a 36% year-over-year fall in earnings to $1.28 per share in third-quarter fiscal 2014, affected by lower crop prices and the elimination of enhanced Section 179 tax depreciation benefit. Earnings also lagged the Zacks Consensus Estimate of $1.39 per share.
Some stocks that are worth considering within this sector include Blount International Inc. ( BLT ) and Century Aluminum Co. ( CENX ), both carrying a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEERE & CO (DE): Free Stock Analysis Report
LINDSAY CORP (LNN): Free Stock Analysis Report
CENTURY ALUM CO (CENX): Free Stock Analysis Report
BLOUNT INTL (BLT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Deere & Company ( DE ) dipped 1.25% during the pre-market trading session today, Aug 13, on reporting a decline in both its top and bottom lines for the third quarter of fiscal 2014 (ended Jul 31, 2014). One of Deere's peers, Lindsay Corp. ( LNN ) reported a 36% year-over-year fall in earnings to $1.28 per share in third-quarter fiscal 2014, affected by lower crop prices and the elimination of enhanced Section 179 tax depreciation benefit. Earnings, however, beat the Zacks Consensus Estimate of $2.19, delivering an earnings surprise of +6%.
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Deere & Company - Earnings Surprise | FindTheBest Segment Performance The Agriculture & Turf segment sales decreased 11% year over year to $7 billion, as lower shipment volumes, sale of John Deere Landscapes and the unfavorable currency translation, partially offset price realization. Click to get this free report DEERE & CO (DE): Free Stock Analysis Report LINDSAY CORP (LNN): Free Stock Analysis Report CENTURY ALUM CO (CENX): Free Stock Analysis Report BLOUNT INTL (BLT): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Deere & Company ( DE ) dipped 1.25% during the pre-market trading session today, Aug 13, on reporting a decline in both its top and bottom lines for the third quarter of fiscal 2014 (ended Jul 31, 2014).
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Operational Update Deere's worldwide total sales dipped 5% year over year to $9.50 billion, surpassing the Zacks Consensus Estimate of $8.77 billion. Deere & Company - Earnings Surprise | FindTheBest Segment Performance The Agriculture & Turf segment sales decreased 11% year over year to $7 billion, as lower shipment volumes, sale of John Deere Landscapes and the unfavorable currency translation, partially offset price realization. Shares of Deere & Company ( DE ) dipped 1.25% during the pre-market trading session today, Aug 13, on reporting a decline in both its top and bottom lines for the third quarter of fiscal 2014 (ended Jul 31, 2014).
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Deere & Company - Earnings Surprise | FindTheBest Segment Performance The Agriculture & Turf segment sales decreased 11% year over year to $7 billion, as lower shipment volumes, sale of John Deere Landscapes and the unfavorable currency translation, partially offset price realization. Shares of Deere & Company ( DE ) dipped 1.25% during the pre-market trading session today, Aug 13, on reporting a decline in both its top and bottom lines for the third quarter of fiscal 2014 (ended Jul 31, 2014). Earnings, however, beat the Zacks Consensus Estimate of $2.19, delivering an earnings surprise of +6%.
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722896.0
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2014-08-13 00:00:00 UTC
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In the news: Deere beats estimates, King Digital declares a dividend and more
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https://www.nasdaq.com/articles/news-deere-beats-estimates-king-digital-declares-dividend-and-more-2014-08-13
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Wednesday headlines include an earnings beat from Deere, Amazon launching its own credit-card reader, King Digital reporting soft revenue, but declaring a big dividend, Target hoping supply chain fixes will help its Canadian operations and Boeing and Sikorsky building a helicopter prototype for the Army.
Deere & Co.
Agricultural equipment maker Deere & Co. ( DE ) said Wednesday that it earned $2.33 per share in the third quarter, on $9.5 billion in sales. Analysts had expected the company to earn $2.22 per share on $8.75 billion in sales. The company also lowered its full-year net income forecast for fiscal 2014 to $3.1 billion, from a prior forecast for $3.3 billion.
Amazon
Apparently not satisfied with just taking business from brick-and-mortar retailers, online giant Amazon ( AMZN ) is now offering a credit-card reader and mobile app that will give the company data about how customers shop in the real world. The new system costs $10, and will compete with companies like Square and eBay unit PayPal.
King Digital
The company behind "Candy Crush," King Digital ( KING ) said Tuesday that it earned 52 cents per share in the second quarter, or 59 cents per share on an adjusted basis. Revenue was $593.6 million. Analysts had expected adjusted earnings of 59 cents per share on $609 million in revenue. For the full year, the company said it expects gross bookings of $2.25 billion to $2.35 billion, compared to a prior forecast for $2.55 billion to $2.65 billion. The company also declared a special dividend of $150 million, or 46.9 cents per share payable to shareholders of record as of Sept. 30.
Target
Retailer Target ( TGT ) is fixing problems with its supply chain that it blames for its struggling expansion into Canada. The company lost close to $1 billion after it opened 124 stores and three distribution centers in the country in 2013. Sales north of the border were much lower than anticipated.
Boeing
A team consisting of Boeing ( BA ) and Sikorsky Aircraft has been chosen to build a prototype of anew vertical-lift aircraft that could be chosen by the Army to replace thousands of helicopters. Textron (TXT) unit Bell Helicopter, will also be building a prototype in hopes of ultimately winning a contract that could be worth more than $100 billion.
This article was originally published on MarketIntelligeneCenter.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wednesday headlines include an earnings beat from Deere, Amazon launching its own credit-card reader, King Digital reporting soft revenue, but declaring a big dividend, Target hoping supply chain fixes will help its Canadian operations and Boeing and Sikorsky building a helicopter prototype for the Army. Agricultural equipment maker Deere & Co. ( DE ) said Wednesday that it earned $2.33 per share in the third quarter, on $9.5 billion in sales. Deere & Co.
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Wednesday headlines include an earnings beat from Deere, Amazon launching its own credit-card reader, King Digital reporting soft revenue, but declaring a big dividend, Target hoping supply chain fixes will help its Canadian operations and Boeing and Sikorsky building a helicopter prototype for the Army. Deere & Co. Agricultural equipment maker Deere & Co. ( DE ) said Wednesday that it earned $2.33 per share in the third quarter, on $9.5 billion in sales.
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Wednesday headlines include an earnings beat from Deere, Amazon launching its own credit-card reader, King Digital reporting soft revenue, but declaring a big dividend, Target hoping supply chain fixes will help its Canadian operations and Boeing and Sikorsky building a helicopter prototype for the Army. Deere & Co. Agricultural equipment maker Deere & Co. ( DE ) said Wednesday that it earned $2.33 per share in the third quarter, on $9.5 billion in sales.
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Wednesday headlines include an earnings beat from Deere, Amazon launching its own credit-card reader, King Digital reporting soft revenue, but declaring a big dividend, Target hoping supply chain fixes will help its Canadian operations and Boeing and Sikorsky building a helicopter prototype for the Army. Agricultural equipment maker Deere & Co. ( DE ) said Wednesday that it earned $2.33 per share in the third quarter, on $9.5 billion in sales. Deere & Co.
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aa09947b-f815-4106-9a41-f97c57cbe88f
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722897.0
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2014-08-13 00:00:00 UTC
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#PreMarket Primer: Wednesday, August 13: Tension Spreads Through Baghdad As Maliki Refuses To Step Aside
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DE
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https://www.nasdaq.com/articles/premarket-primer-wednesday-august-13-tension-spreads-through-baghdad-maliki-refuses-step
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On Tuesday, the US sent 130 additional troops to Iraq to help free a group of Iraqi citizens who have been trapped on Mount Sinjar by Islamic State militants.
However, while the US worked to get the conflict in Northern Iraq under control, political turmoil has took hold in Baghdad, setting the stage for a dangerous political battle.
Though Haider al-Abadi has been named Iraq's new Prime Minister, Nouri al-Maliki has refused to step aside and let Abadi take over his role. The situation has created chaos in the capital with at least 17 people killed in car bombings on Tuesday and a suicide bomber near Abadi's home.
Top News
In other news around the markets:
FleetCor Technologies announced that it was planning to buy Comdata Inc from Ceridian LLC for $3.45 billion. The deal will allow FleetCor to expand its business into the virtual payments space as Comdata produces gift cards and payroll cards among other services. On Wednesday, China's National Bureau of Statistics released a report showing that industrial production met expectations with a 9 percent increase in July, but that retail sales missed the mark with just a 12.2 percent rise. The data compounded growing worries about the Chinese economy and added to speculation that Beijing would need to introduce further stimulus measures in the future. As the Ukrainian army tightened its ring around Donetsk, the last major separatist stronghold, rebel forces ambushed a military bus, killed twelve Ukrainian soldiers and took an unknown number captive. The incident marks the nationalist fighters' largest loss of life in a single day since the fighting began. Following April's sales tax hike, the Japanese economy struggled in the second quarter with a steep contraction. Real gross domestic product fell 6.8 percent from April to June, a bit better than the forecast 7.1 percent drop. Most expect that the sharp decline could prompt Japanese policymakers to provide new stimulus measures to help deal with the effects of a higher sales tax.
Asian Markets
Asian markets were higher; the NIKKEI gained 0.35 percent, the Shanghai composite was up 0.06 percent, the KOSPI gained 1.02 percent, the Shenzhen composite rose 0.10 percent and the Hang Seng index was up 0.81 percent.
European Markets
European markets were up across the board; the FTSE rose 0.04 percent, the STOXX 600 rose 0.44 percent, the DAX gained 0.95 percent and the CAC 40 was up 0.74 percent.
Commodities
Energy futures were lower after reports that OPEC's output had risen in July. Brent futures were down 0.41 percent and WTI futures lost 0.08 percent. Gold lost 0.13 percent, but silver was up 0.03 percent and industrial metals were also mixed. Copper lost 0.73 percent but aluminum and zinc gained 0.91 percent and 1.13 percent respectively.
Currencies
The dollar was higher on Wednesday, gaining 0.16 percent against the euro, 0.21 percent against the yen and 0.18 percent against the franc. The euro continued its slide and lost 0.11 percent against the pound and 0.40 percent against the Australian dollar.
Earnings
Notable earnings released on Tuesday included:
CST Brands (NYSE: CST ) reported second quarter EPS of $0.43 on revenue of $3.26 billion, compared to last year's EPS of $0.66 on revenue of $3.21 billion. Valspar (NYSE: VAL ) reported third quarter EPS of $1.21 on revenue of $1.20 billion, compared to last year's EPS of $1.07 on revenue of $1.09 billion. Flowers Foods (NYSE: FLO ) reported second quarter EPS of $0.21 on revenue of $877.40 million, compared to last year's EPS of $0.24 on revenue of $898.15 million. Fossil (NASDAQ: FOSL ) reported second quarter EPS of $0.98 on revenue of $773.80 million, compared to last year's EPS of $1.15 on revenue of $706.20 million.
Pre-Market Movers
Stocks moving in the Premarket included:
Carnival Corp (NYSE: CCL ) was up 1.16 percent in premarket trade after gaining 2.67 percent over the past five days. Ford Motor (NYSE: F ) gained 1.10 percent in premarket trade after rising 2.02 percent over the past week. Qualcomm (NASDAQ: QCOM ) was up 0.69 percent in premarket trade after losing 0.79 percent on Tuesday. Facebook (NASDAQ: FB ) was up 0.33 percent in premarket trade after falling 0.83 percent on Tuesday.
Notable earnings releases expected on Wednesday include:
Cisco Systems (NASDAQ: CSCO ) is expected to report fourth quarter EPS of $0.53 on revenue of $12.14 billion, compared to last year's EPS of $0.52 on revenue of $12.42 billion. Deere & Company (NYSE: DE ) is expected to report third quarter EPS of $2.20 on revenue of $8.75 billion, compared to last year's EPS of $2.56 on revenue of $9.32 billion. Macy's (NYSE: M ) is expected to report second quarter EPS of $0.86 on revenue of $6.30 billion, compared to last year's EPS of $0.72 on revenue of $6.07 billion. Pinnacle Foods (NYSE: PF ) is expected to report second quarter EPS of $0.33 on revenue of $629.33 million, compared to last year's EPS of $0.29 on revenue of $569.04 million.
Economics
Notable economic releases expected on Wednesday will include US retail sales, US oil inventory data, eurozone industrial production, the British unemployment rate, Spanish CPI, French CPI and German CPI.
For a recap of Tuesday's market action, click .
Tune into Benzinga's #PreMarket Prep today to hear Nic Chahine, William Decker & Rev. Emmanuel Lemelson by clicking here !
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Free Trading Education - Check out the free events taking place on Marketfy this week. Spaces are limited. Sign up today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Though Haider al-Abadi has been named Iraq's new Prime Minister, Nouri al-Maliki has refused to step aside and let Abadi take over his role. Most expect that the sharp decline could prompt Japanese policymakers to provide new stimulus measures to help deal with the effects of a higher sales tax. However, while the US worked to get the conflict in Northern Iraq under control, political turmoil has took hold in Baghdad, setting the stage for a dangerous political battle.
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Asian Markets Asian markets were higher; the NIKKEI gained 0.35 percent, the Shanghai composite was up 0.06 percent, the KOSPI gained 1.02 percent, the Shenzhen composite rose 0.10 percent and the Hang Seng index was up 0.81 percent. Earnings Notable earnings released on Tuesday included: CST Brands (NYSE: CST ) reported second quarter EPS of $0.43 on revenue of $3.26 billion, compared to last year's EPS of $0.66 on revenue of $3.21 billion. Notable earnings releases expected on Wednesday include: Cisco Systems (NASDAQ: CSCO ) is expected to report fourth quarter EPS of $0.53 on revenue of $12.14 billion, compared to last year's EPS of $0.52 on revenue of $12.42 billion.
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Asian Markets Asian markets were higher; the NIKKEI gained 0.35 percent, the Shanghai composite was up 0.06 percent, the KOSPI gained 1.02 percent, the Shenzhen composite rose 0.10 percent and the Hang Seng index was up 0.81 percent. Notable earnings releases expected on Wednesday include: Cisco Systems (NASDAQ: CSCO ) is expected to report fourth quarter EPS of $0.53 on revenue of $12.14 billion, compared to last year's EPS of $0.52 on revenue of $12.42 billion. However, while the US worked to get the conflict in Northern Iraq under control, political turmoil has took hold in Baghdad, setting the stage for a dangerous political battle.
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Notable earnings releases expected on Wednesday include: Cisco Systems (NASDAQ: CSCO ) is expected to report fourth quarter EPS of $0.53 on revenue of $12.14 billion, compared to last year's EPS of $0.52 on revenue of $12.42 billion. However, while the US worked to get the conflict in Northern Iraq under control, political turmoil has took hold in Baghdad, setting the stage for a dangerous political battle. Though Haider al-Abadi has been named Iraq's new Prime Minister, Nouri al-Maliki has refused to step aside and let Abadi take over his role.
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c693e086-4df5-44b3-bfe3-b398c1413e11
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722898.0
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2014-08-13 00:00:00 UTC
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Deere & Company Earnings: Weak Crop Prices Starting to Bite
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DE
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https://www.nasdaq.com/articles/deere-company-earnings-weak-crop-prices-starting-bite-2014-08-13
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Deere & Company delivered an acceptable set of third quarter results, but its guidance was disappointing and, on balance, the earnings report was a net negative. In common with many of its peers, Deere is seeing an ongoing divergence in prospects between its agricultural and construction based operations. The former is suffering due to falling agricultural prices, while the latter is gaining traction with an improving construction outlook.
Unfortunately, Deere's revenue and profit is heavily skewed toward the agricultural sector. For example, more than 81% of its equipment sales came from its agricultural and turf segment, with the remaining 19% coming from its construction and forestry segment. It's time to look more closely.
US Corn Farm Price Received data by YCharts
Furthermore, the United States Department of Agriculture, or USDA, recently predicted that this year's U.S. soybean harvest would be the largest in history -- therefore putting pressure on prices with another key crop. This is all bad news for Deere, because farmers tend to cut back on spending when crop prices are low.
The second takeaway is the slight surprise that Deere didn't upgrade expectations for its construction and forestry segment. In fact, the company's management cited a few economic indicators that suggested a better outlook for the construction industry. For example, total U.S. construction investment is expected to increase by 4.3% in 2014 vs. a previous forecast of just 1.7%.
However, the decline in the outlook for housing starts in 2014 from 1.07 million to 1.05 million appears to have created some caution. Fools already know that the housing market has slowed in the first half, but conditions remain good for long term growth. It will be interesting to see what Caterpillar says in its next set of results, because it's relying on a better outlook from construction in order to offset some ongoing weakness in mining.
The bottom line
I will discuss Deere in greater depth in future articles, but for now the key conclusion is that weakening crop prices are hurting its agricultural sales -- investors should keep an eye out for developments in crop prices. It's disappointing, but it's also a facet of the industry and it's not necessarily a long-term trend. However, the company is scaling back production in line with the reduction in its outlook for agricultural sales -- a sign that it sees conditions continuing to weaken.
As for construction, it appears to be a case of conditions being ripe for an improvement, but a combination of weather issues and a slowdown in housing has forestalled any improvement -- at least for now.
Top dividend stocks for the next decade
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The article Deere & Company Earnings: Weak Crop Prices Starting to Bite originally appeared on Fool.com.
Lee Samaha has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company delivered an acceptable set of third quarter results, but its guidance was disappointing and, on balance, the earnings report was a net negative. It will be interesting to see what Caterpillar says in its next set of results, because it's relying on a better outlook from construction in order to offset some ongoing weakness in mining. In common with many of its peers, Deere is seeing an ongoing divergence in prospects between its agricultural and construction based operations.
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The article Deere & Company Earnings: Weak Crop Prices Starting to Bite originally appeared on Fool.com. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere & Company delivered an acceptable set of third quarter results, but its guidance was disappointing and, on balance, the earnings report was a net negative.
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The bottom line I will discuss Deere in greater depth in future articles, but for now the key conclusion is that weakening crop prices are hurting its agricultural sales -- investors should keep an eye out for developments in crop prices. Top dividend stocks for the next decade The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. Deere & Company delivered an acceptable set of third quarter results, but its guidance was disappointing and, on balance, the earnings report was a net negative.
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The bottom line I will discuss Deere in greater depth in future articles, but for now the key conclusion is that weakening crop prices are hurting its agricultural sales -- investors should keep an eye out for developments in crop prices. Top dividend stocks for the next decade The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. Deere & Company delivered an acceptable set of third quarter results, but its guidance was disappointing and, on balance, the earnings report was a net negative.
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2014-08-13 00:00:00 UTC
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Closing Update: Stocks Regain Momentum as Geo-Political Pressures Recede
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https://www.nasdaq.com/articles/closing-update-stocks-regain-momentum-geo-political-pressures-recede-2014-08-13
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Wall Street went back on the offensive Wednesday, capitalizing on a calm in geopolitical pressures and easing rate hike jitters in both the U.S. and UK to push back into positive turf for 2014. Despite weak retail sales and lackluster earnings, all three major indices closed higher with the Nasdaq Composite outperforming due to strength in biotech and chipmaker stocks. Although weakness in the retail sector weighed on the S&P 500 and Dow Jones Industrial, both pushed through resistances at 1,940 and 16,600, respectively.
Led lower by sluggish car sales, retail sales were unchanged in July to its lowest level in 6 months, missing the street consensus for a gain of 0.2%. Excluding auto sales, retail sales were up 0.1% last month, but still well below estimates for a 0.4% gain.
Today's other economic data was overshadowed by the retail numbers as business inventories rose 0.4% in June, matching analyst estimates. Sales were up 0.3%, leaving the inventories/sales ratio unchanged at 1.29. Also, the Atlanta Federal Reserve reported that businesses expect inflation to increase to a 2.0% rate from 1.9% in July.
Overseas markets were also on the plus side Wednesday despite disappointing economic data on Chinese retail sales, EU industrial production and a contraction in Japan's GDP of 1.7%. Instead, investors were encouraged by easing tensions between Russia and Ukraine, as well as a downbeat forecast for UK wage growth by the Bank of England that most likely shelved any plans by the central bank to hike interest rates.
Disappointing earnings from Macy's ( M ), Deere & Co ( DE ), King Digital ( KING ) and Sea World Entertainment ( SEAS ) weighed on equities early in the day, but all managed to close fractionally above their worst levels as the broader markets crept higher throughout the day.
Here's where the markets stand at the close:
US MARKETS
Dow Jones Industrial Index was up 91 points (+0.6%) at 16,651
S&P 500 was up 12 points (+0.7%) at 1,946
Nasdaq Composite Index was up 44 points (+1%) at 4,434
GLOBAL SENTIMENT
FTSE 100 was up 0.37%
Nikkei 225 was up 0.35%
Hang Seng Index was up 0.81%
Shanghai China Composite Index was up 0.06%
UPSIDE MOVERS
(+) REED Swings to a profit in Q2 and beating street estimates
(+) CSIQ Reported strong Q2 results, with both earnings and revenue beating estimates
(+) ITMN Hired investment banks to explore strategic options
(+) P Stifel initiates coverage with Buy rating, $34 PT; Buyout rumors circulate
DOWNSIDE MOVERS
(-) KING Reported lower-than-expected Q2 revenue, cut full-year guidance, downgraded by RBC Capital to Sector Perform
(-) SEAS Q2 EPS and revenue miss street expectations
(-) JDSU Downgraded at Piper to Neutral from Overweight
(-) NLST Missed Q2 earnings and revenue estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite weak retail sales and lackluster earnings, all three major indices closed higher with the Nasdaq Composite outperforming due to strength in biotech and chipmaker stocks. Overseas markets were also on the plus side Wednesday despite disappointing economic data on Chinese retail sales, EU industrial production and a contraction in Japan's GDP of 1.7%. Also, the Atlanta Federal Reserve reported that businesses expect inflation to increase to a 2.0% rate from 1.9% in July.
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Overseas markets were also on the plus side Wednesday despite disappointing economic data on Chinese retail sales, EU industrial production and a contraction in Japan's GDP of 1.7%. (-) KING Reported lower-than-expected Q2 revenue, cut full-year guidance, downgraded by RBC Capital to Sector Perform (-) SEAS Q2 EPS and revenue miss street expectations (-) JDSU Downgraded at Piper to Neutral from Overweight (-) NLST Missed Q2 earnings and revenue estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Despite weak retail sales and lackluster earnings, all three major indices closed higher with the Nasdaq Composite outperforming due to strength in biotech and chipmaker stocks.
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(-) KING Reported lower-than-expected Q2 revenue, cut full-year guidance, downgraded by RBC Capital to Sector Perform (-) SEAS Q2 EPS and revenue miss street expectations (-) JDSU Downgraded at Piper to Neutral from Overweight (-) NLST Missed Q2 earnings and revenue estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Despite weak retail sales and lackluster earnings, all three major indices closed higher with the Nasdaq Composite outperforming due to strength in biotech and chipmaker stocks. Also, the Atlanta Federal Reserve reported that businesses expect inflation to increase to a 2.0% rate from 1.9% in July.
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Dow Jones Industrial Index was up 91 points (+0.6%) at 16,651 S&P 500 was up 12 points (+0.7%) at 1,946 Nasdaq Composite Index was up 44 points (+1%) at 4,434 (-) KING Reported lower-than-expected Q2 revenue, cut full-year guidance, downgraded by RBC Capital to Sector Perform (-) SEAS Q2 EPS and revenue miss street expectations (-) JDSU Downgraded at Piper to Neutral from Overweight (-) NLST Missed Q2 earnings and revenue estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Despite weak retail sales and lackluster earnings, all three major indices closed higher with the Nasdaq Composite outperforming due to strength in biotech and chipmaker stocks.
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212a367d-db5b-494c-9e4a-637ade1b5abc
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