JNJ reported Q4 2017 results beating consensus expectations, however most of the beat came from non-operational items (currency and lower tax rate). 2018 revenue guidance came below expectations, and the US appeals court ruled JNJ patent on Remicade invalid, causing the stock to consolidate today. Our long-term thesis is intact and we raise our price target to $163. Continue reading “JNJ 4Q17 earnings results good but 2018 revenue guidance disappoints”
Category: Equity Earnings
Resmed 2Q18 earnings results: strength continues for FY18
ResMed released strong Q2 2018 sales +11% y/y and adjusted EPS +37%. Our patience in Resmed early last year paid off, as the prior production issues have been resolved, lifting mask sales in the double digit range. The company will benefit from the US tax reform this year, lifting EPS by 13%. However this is a one-time event as FY19 will be impacted by the Australian taxation. We are raising our price target to $97 and maintaining our position in the stock. Continue reading “Resmed 2Q18 earnings results: strength continues for FY18”
SLB 2017 earnings recap: positive outlook for 2018
SLB reported strong 4Q17 revenue at +15%y/y and adjusted EPS +57%, above consensus expectation. This was driven by a better pricing environment and growth in North America activity. The management team is targeting to return to its prior cycle margins and ROIC, if not above. We are maintaining our position size and price target. Continue reading “SLB 2017 earnings recap: positive outlook for 2018”
Aramark (ARMK) Q4 Results
Aramark (ARMK) reported Q4 2017 earnings of $.54 up 9% y/y. Sales were up 2% organically, missing analysts’ expectations of 3%+. Hurricanes dragged down results, especially uniform operations in Puerto Rico. Dividend was increased modestly. Price Target unchanged at $43. Continue reading “Aramark (ARMK) Q4 Results”
Medtronic 2Q18 results: relief rally yesterday as management showed optimism for the rest of the year
Medtronic reported improving results yesterday, and reiterated its FY18 revenue and EPS outlook despite production disruptions. This was well perceived by the market, as MDT had become a low expectation story in the recent quarters. Price target unchanged at $88. Continue reading “Medtronic 2Q18 results: relief rally yesterday as management showed optimism for the rest of the year”
Fairfax (FRFHF) Q3 2017 Results
Fairfax’s Q3 2017 operating earnings of $16.42 were slightly below street expectations of $16.74 due to general softness in insurance underwriting and weak investment results. Despite these issues, results were solid with combined ratio of 91.6% (excluding storm losses), improving year over year from 94.5%. Including storm losses of $791m (after taxes), Fairfax still made a profit of $476.9m. Book value grew 15.4% YoY before investment results, mainly due to the acquisition of Allied completed earlier this year. Continue reading “Fairfax (FRFHF) Q3 2017 Results”
CVS Health Q3 2017 Results
CVS reported 3Q17 adjusted EPS of $1.50, above $1.49 consensus. Management raised guidance for 2017 to $5.87-$5.91 from $5.83-$5.93. For Q3 net revenues increased 3.5% driven by 8.1% sales gains in PBM business. Hurricanes disrupted retail operations – sales were down -2.7 and same store sales growth was negative -3.2%, which has put the stock under pressure today -$2.4. Continue reading “CVS Health Q3 2017 Results”
Berkshire Hathaway (BRK/B) q3 2017 Results
On Friday, Berkshire Hathaway (BRK/B) reported Q3 earning $1.40 versus consensus of $1.56. The gap was driven by hurricane losses of $3b or only 1% of book value which is impressive given the severity of losses for the season. Book value grew by 8.9% y/y, with shareholder equity totaling $311.8m and BRK/B holds over $65Bn of cash. BRK/B’s collection of high quality businesses continue to generate significant cash flow. Price target raised to $200. Continue reading “Berkshire Hathaway (BRK/B) q3 2017 Results”
Sherwin-Williams (SHW) Q3 2017 results
Sherwin-Williams (SHW) reported Q3 2017 results of $4.75, excluding one-time charges relating to the acquisition of Valspar. Results were ahead of street estimate of $4.68. SHW had strong same store growth of 5.2% driven by growth in sales and pricing. Lots of moving parts in the quarter given the Valspar merger, reordering of business into new segments and impact of hurricanes (-$.49 ). Overall organic growth was strong up 4.6%. Continue reading “Sherwin-Williams (SHW) Q3 2017 results”
Colgate-Palmolive Q3 2017 results
Colgate-Palmolive (CL) Q3 2017 results were relatively soft with weak sales growth of 3.0% and weaker organic sales growth of 1.5%. Colgate lowered 2017 margin guidance to 20-50bps (increase from last year) from 75-125bps. Even with disappointing results, we believe Colgate is maintaining its leadership position worldwide, and will weather this current lukewarm consumer environment. We maintain our price target and position size. Continue reading “Colgate-Palmolive Q3 2017 results”