Two companies from different sectors posted their earnings today; one reported strong results while others results were not so impressive. Let’s take a look, who reported what:
Philip Morris International Inc. (NYSE:PM) posted its first quarter 2013 earnings today, which saw a decline in profit by 1.7 percent due to increased costs and the stronger dollar that affected the bottom line. The volume for Marlboro and L&M cigarettes also declined by 6.5 percent due to low demands in almost every market. The major impact was seen in Asia and the European Union. All sales of Philips are generated outside the United States.
Profit for Philip Morris International Inc. (NYSE:PM) came in at $2.13 billion, a decline from $2.16 billion from the previous year. The earnings for the company came in at $1.28, an increase over $1.25. Earnings were recorded at $1.29 per share after excluding certain tax and other impacts.
The share price of the company came down 1.1 percent to $93 in pre-market. The earnings for the first quarter were less than the expectations, and Philip Morris International Inc. (NYSE:PM) lowered its estimates for the full fiscal 2013.
The strong dollar has affected the bottom-line growth of the company for quite a few times and did so again. The sales for the company came in at $1.5 billion in 2012. The net revenue for the first quarter improved 1.8 percent but would have been 3.2 percent if the negative effect of currency would not have been included.
The company trimmed its estimates for fiscal 2013 due to a stronger dollar. The earnings per share estimated by the company is in the range of $5.55 to $5.65, a decline from the previous estimate of $5.68 to $5.78 in February.
The company is, however, expecting that the earnings per share may increase in the range of 10 percent to 12 percent excluding currency impacts, which reflect that the fundamentals are according to the expectations.
AutoNation, Inc. (NYSE:AN) outperformed the expectations surrounding profit and posted its best quarterly results till date backed by surging demand for new as well as old cars. The net income for the company came in at $83 million or 67 cents a share, an increase of 14 percent over $73 million, or 55 cents a share, in the previous fiscal.
The earnings from the continuing operation were at 68 cents per share, which is more than the expectations of analysts by 4 cents. The company earned revenue of $4.1 billion, an increase of 12 percent over $4.03 billion estimated by analysts. New-vehicle sales were up 9 percent overall and 6 percent on a same-store basis. The sales for used vehicles grew by 10 percent overall and 7 percent on a same-store basis.
The largest U.S. auto dealer group said that it has completed 30 percent of its re-branding strategy under which it is renaming its stores to the parent company’s name and will be completed in the second quarter.
The Auto major reaffirmed its forecast for new-vehicle sales in U.S. this year to around mid-15 million up from 14.5 million last year.