Here’s a look at Wednesday morning’s earnings reports. This includes Caterpillar Inc. (NYSE:CAT), T. Rowe Price Group, Inc. (NASDAQ:TROW) and Wyndham Worldwide Corporation (NYSE:WYN).
Caterpillar Inc. (NYSE:CAT):The company had a great second quarter with its profit rising to $1.70 billion ($2.54 a share) as compared to $1.02 billion ($1.57 a share) in the previous year. This represented a staggering 67 percent increase. Revenue also jumped to $17.37 billion from $14.23 billion. Analysts had estimated Caterpillar would earn $2.26 a share from $16.98 billion in revenues.
Chairman and Chief Executive Doug Oberhelman said via Forbes that the company’s success comes “despite U.S. construction activity that remains depressed and well below the prior peak, the problems facing Eurozone economies and economic concerns in China.”
The company foresees 2012 as a record year but it did cut its revenue outlook for the full year to $68-$70 billion while increasing its profit outlook by $0.10 to $9.60.
Continuing with the positive vibe, Oberhelman added on Wednesday, “The good news is, this doesn’t feel like 2008, interest rates are low, central banks are prepared to inject more liquidity if needed, and housing is coming off lows, not a peak, and seems to be improving.”
T. Rowe Price Group, Inc. (NASDAQ:TROW): In the second quarter, the company reported a slight increase in its profit thanks to a rise from its assets under management generating greater fees and its mutual funds seeing $6.3 billion in net inflows from retail investors. Net outflows were $1.6 billion from other portfolios by institutional investors, reported Reuters, predominately coming from outside the country.
Chief Executive James Kennedy said via Reuters, “How you perform for clients is everything. If you stop performing, flows will slow down and reverse.”
Earnings rose 0.9 percent but came in below expectations with its net income of $206.8 million ($0.79 per share), up from $204.7 million ($0.76 per share) from the previous year. Analysts had estimated $0.81 per share.
Wyndham Worldwide Corporation (NYSE:WYN): The company saw a rise in its second quarter profits as its adjusted net income was $128 million ($0.87 per share) as compared to the previous year’s $108 million ($0.64 per share). This rise came from healthy operating results in the company’s Lodging and Vacation Ownership businesses and for the earnings per share rise, its share repurchase program.
Second quarter revenues were $1.1 billion, representing a 4% rise from the previous year.
Analysts had estimated earnings at $0.84 per share on $1.16 billion in revenues.
Stephen P. Holmes, chairman and CEO, Wyndham Worldwide said via Wall Street Cheat Sheet, “In the first half of 2012 we achieved back-to-back 36% increases in quarterly adjusted EPS growth in an economic environment that remains uncertain. Underlying this growth is strong execution from each of our businesses and diversified product offerings well positioned to capitalize on consumers’ desire to travel. In addition, we benefited from capital allocation that included the return of capital to shareholders.”
