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Showing posts from October, 2016

Earnings Analysis: Honeywell (HON)

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Notes:
Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash.  Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.

OK, before I begin on Honeywell's third quarter call, it's best that I retrace some other events I didn't have a chance to talk about.  About 3 weeks prior to their results, Honeywell released information noting that the third quarter didn't do as well as they had expected and they lowered the top end of their earnings and sales targets for the year.  The market took swift action, hacking off over 8% off of the news.  A lot of this had to do with the fact that it looked like all progress within the company was slowing and things were quickly turning for the worse.  The stock responded so strongly that a couple days later, CEO Dave Cote came back with an…

Earnings Analysis: Citigroup (C)

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Notes:
Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash.  Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.

Catching up on earnings reports, Citigroup announced their results a couple weeks ago.  Citi delivered earnings of $1.24 on revenues of $17.76B.  The TBV rose to $64.71.  This compares to earnings expectations of $1.16 on $17.37B.  Last quarter, the TBV was $63.53.  The quarterly results were solid both in general and in comparison to other money center banks.  Not the best results, but very solid nonetheless.  Since interest rates continue to stay at their record lows, they were not a factor to this quarter's results.  The major factors resulted in gains from money market investments and gains finally being realized from the acquisition of the Costco credit card d…

Earnings Analysis: Pepsico (PEP)

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Notes:
Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash.  Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.

Last week Pepsico kicked off the earnings season for my portfolio with the announcement of their third quarter earnings for 2016.  The results and quarter were rather impressive, with earnings of $1.37 on revenues of $16.03B.  Both numbers beat respective estimates of $1.32 and $15.83B.  In addition to these solid beats, we witnessed organic growth of 4.2% and core constant earnings growth of 7%.  Both excellent numbers given the global economic conditions we're seeing and has resulted in the company also increasing their core constant earnings growth for the year to $4.78.  

The management team continues to do an excellent job.  They're continuing to get more e…