Tuesday, 27 April 2010 17:41
With approximately 1/3 of S&P 500 companies having already reported 1st quarter earnings, Thomson Reuters reports that 83% of these companies have surpassed the consensus estimate by an amazing average of 21%. Since 1994, the long-term historical average is for 60% of S&P 500 companies to top the consensus by an average of 2%. Clearly, analysts have a long way to go in raising estimates to match the current strength of Corporate America. Here is an update on quarterly earnings reports from Osher Van de Voorde core equity investments:
LLTC: Linear's profits doubled YOY on a 55% increase in revenues. The company reported earnings of $.44 cents per share on revenues of $311.3 million of revenues, compared to the consensus estimate of $.39 cent earnings on revenues of $279.1 million.
JNJ: Led by international growth and strong results in its medical device unit, Johnson & Johnson reported quarterly earnings of $1.29, ahead of the $1.27 consensus estimate. The company maintained its forecast for the year, with favorable currency trends offsetting an approximate $.10 cent hit from new healthcare reform legislation. JNJ raised its dividend by 10.2%.
MCD: McDonald's reported an 11% increase in earnings on 10% revenue growth. Earnings came in at $1 per share on revenues of $5.61 billion. Wall Street expected earnings of $.96 cents on revenues of $5.53 billion.
ABT: Abbott's earnings came in at $.84 cents per share compared to the $.80 cent consensus estimate.
UTX: United Technologies reported earnings of $.93 cents per share, ahead of the $.90 cent average estimate. The company raised its full year guidance to $4.50 to $4.65 per share.
QCOM: Qualcomm reported earnings of $.59 cents per share, ahead of the $56.5 cent consensus, on revenue growth of 9%. While both earnings and revenues topped previous guidance, the company slightly lowered guidance for the coming quarter. Total 3G handsets surpassed 1 billion for the first time. With 3G coming onstream in India in the coming quarters, we again believe QCOM is being conservative with its guidance.
LLL: L-3 Communications delivered better than expected earnings of $1.83 per share and raised guidance for full year earnings to be $8.13 to $8.33 per share on revenues of $16.2 to $16.3 billion. Previous estimates were for annual earnings of $8 to $8.20 on revenues of $16 billion.
PEP: Pepsico reported a 26% increase ine earnings on a 13% rise in sales. The company expects full year profit growth of between 11% and 13%.
MMM: 3M trounced the Wall Street consensus with earnings of $1.47 per share, $.26 cents better than the average estimate of $1.21. Revenue rose 24.7% YOY to $6.35 billion versus the consensus of $5.93 billion. Further, the company raised its guidance to $5.40 to $5.60 per share, versus the $5.16 consensus and now expects sales to grow between 10 and 12%.
BP: BP's quarterly profits more than doubled YOY and the company's top line beat the consensus by just under $1 billion. The positive earnings news has been overshadowed by an oil spill in the Gulf of Mexico.
ADP: Automatic Data reported earnings of $.80 cents per share, ahead of the $.78 cent consensus, on a 3% increase in revenues.