Research Alerts Archive

PepsiCo Inc. reported Q1 EPS of $0.89 versus $0.71 on a 13% increase in revenues to $9.4 billion. The numbers were positively impacted by the acquisition of the two bottling companies, PepsiAmericas Inc. (PAS) and The Pepsi Bottling Group Inc. (PBG). Excluding the 22-day contribution of the bottling assets, the EPS figure was $0.76 and was one penny better than consensus estimates. The indication on the conference call was that the beginning of Q2 is seeing results trend higher.

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Apple reported record Q2 f2010 results with revenue, EPS and gross margin all beating Street estimates. Revenue of $13.5 billion grew 48.6% Y/Y, while EPS of $3.33 rose 57.1% Y/Y.


 

The company reported adjusted earnings (excluding asset gains and other one time items) of $0.35 a share versus street expectations of $0.48 a share.  The first quarter is the weakest of the quarters. We believe the miss in the estimate is analysts over-estimating the volume of coal that would be shipped in the first quarter. The company is still forecasting a range of coal shipments between 23.5 to 25 million metric tonnes. It is the timing of shipments we believe that caused the miss not the volume to be shipped. The volume of coal shipped for the quarter was up from 3.7 million tonnes to 5.2 million. One of the reasons metallurgical coal prices remain strong is the infrastructure build out in China, citing the building of several railways, which requires steel. Metallurgical coal is a raw material for the production of steel.

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 Q4 2010: Dollarama reported a very strong Q4. Driven by a 9.3% increase in same-store sales, total sales rose 15.4%. Net earnings amounted to $34 million or $0.45 per share. Excluding an unrealized forex charge of $5.5 million, Q4 EPS amounted to $0.52. Adjusted EPS for the year (excluding IPO and forex charges) amounted to $1.15, which was above our $1.10 estimate.

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New Ontario Regulations: The new regulations have proven to be highly negative for the Ontario pharmacy industry. The government proposals effectively move virtually all of the cost of reducing the price of generic drugs to the retail pharmacy industry rather than splitting it with manufacturers. Industry spokesmen estimate that the proposals, when fully enacted, will remove about $1 billion in funding from the industry.

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TLM is selling 42,500 boe/d of production (120 million bbls of reserves) for $1.9 billion. The assets are largely conventional natural gas assets located in western Canada and Ontario. They have been deemed 'non-core' under the company's new strategy of focusing on long-life, unconventional plays.

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Fiscal 2010 Results: Despite a challenging Q4 in the international operations, consolidated results for the fiscal year ended January 31, 2010 were highly satisfactory. Consolidated sales rose 3.7% to $1.44 billion and diluted earnings per unit rose 8.3% to $1.69 from $1.56. This was marginally below our $1.72 estimate, but represented the 11th consecutive year of higher earnings.

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Q4 2010 Results: Investors reacted positively to Reitman’s latest quarterly results which reflected a turning point in both same-store sales and net earnings. Sales for the quarter ended January 30, 2010 rose 2.4% and diluted EPS rose to $0.21 from $0.13. This reversed the declining trend which had existed since mid-2008 and resulted in EPS for the year of $0.98 down from $1.21 in the prior year.

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Bombardier reported Q4 EPS of $0.10 versus $0.17 on a slight decrease in revenues. The EPS figure was one cent below expectations while the revenue number was in line with forecast. For the year, EPS came in at $0.39 versus $0.56 on $19.4 billion in revenue, a decline from $19.7 billion the year earlier. It is clear that the Transportation division was doing the heavy lifting in the quarter and year.

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RIM reported generally negative Q4 f2010 results this evening with both revenue and EPS below Street expectations. Revenue of $4.08 billion (+17.8% Y/Y) was below both analysts’ forecasts of $4.31 billion and the low-end of management’s guidance at $4.20 billion. Lower than expected handset shipments in the quarter (10.5 million units) were the primary reason for the lower than anticipated revenue and EPS.

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