Earnings Preview: CVS, NewsCorp, NYSE, VIVUS, DISH, MLM And OfficeMax

Earnings Preview: CVS, NewsCorp, NYSE, VIVUS, DISH, MLM And OfficeMax

Tomorrow is a big earnings day as dozens of companies report Q3 earnings. We will be doing a post analysis on companies not covered, such as Oaktree, BMW, TransOcean, and other notable prominent corporations. The companies we preview in this article include, CVS Caremark Corporation (NYSE:CVS), News Corp (NASDAQ:NWSA) (NASDAQ:NWS), NYSE Euronext (NYSE:NYX), VIVUS, Inc. (NASDAQ:VVUS), DISH Network Corp. (NASDAQ:DISH), Martin Marietta Materials, Inc. (NYSE:MLM) and OfficeMax Incorporated (NYSE:OMX).

Earnings Preview: CVS, NewsCorp, NYSE, VIVUS, DISH, MLM And OfficeMax

  • CVS Caremark Corporation (NYSE:CVS) will report its 3Q results pre-market on Tuesday, Nov. 6 followed by a conference call at 8:30 am. Analysts expect CVS Caremark Corporation (NYSE:CVS) to report GAAP EPS of $0.75-0.77.  Heading into the 3Q print, investors expect the main areas of scrutiny will be in relation to the current PBM selling season, the status of on-going streamlining initiatives for the PBM business, and any update from management regarding customer retention based on the recent Walgreen Company (NYSE:WAG)/Express Scripts Holding Company (NASDAQ:ESRX) developments. For the 26 weeks ended 30 June 2012, CVS Caremark Corporation (NYSE:CVS) revenues increased 18% to $61.51B. Net income before extraordinary items increased 14% to $1.74B. Revenues reflect Pharmacy Services segment increase of 30% to $36.72B, Retail Pharmacy Segment increase of 8% to $31.87B. Net income was partially offset by Inter segment Elimination loss increase from $75M to $172M, Corporate Segment loss increase of 10% to $343M.
  • News Corp (NASDAQ:NWSA) (NASDAQ:NWS) will report earnings after the closing bell. Analysts expect News Corp (NASDAQ:NWSA) (NASDAQ:NWS) to report 1Q13 revenue of approximately $8.14 billion and EPS of $0.38. What to Look For — 1) Potential update to FY13 guidance; 2) Update on timing of split of Entertainment and Publishing assets; 3) Commentary on Consolidated Media acquisition; 4) Ratings trends at Cable and Broadcast; 5) Advertising outlook; 6) Commentary on pace of share buybacks. For the fiscal year ended 30 June 2012, News Corp (NASDAQ:NWSA) (NASDAQ:NWS) revenues increased 1% to $33.71B. Net income before extraordinary items decreased 61% to $1.18B. Revenues reflect Cable Network Programming segment increase of 14% to $9.13B, Filmed Entertainment segment increase of 6% to $7.3B, United States/Canada segment increase of 2% to $18.93B, Australia segment increase of 5% to $6.09B, Number of Page Views – IGN increase of 64% to 399M.
  • NYSE Euronext (NYSE:NYX) reports earnings tomorrow before the opening bell. FactSet consensus estimates of $1.94/$2.44 for FY12 and FY13 respectively.  NYSE Euronext (NYSE: NYX) is a global leader in transaction and listing services, collectively operating the most active capital markets and largest listing venue in terms of market capitalization of any exchange in the world. NYX’s markets offer trading in a wide range of securities and derivatives, including equities, futures, options, bonds, warrants, and ETFs.  For the six months ended 30 June 2012, NYSE Euronext (NYSE:NYX) revenues decreased 13% to $1.94B. Net income decreased 31% to $212M. Revenues reflect Cash Trading and Listing segment decrease of 14% to $1.23B, Derivatives segment decrease of 20% to $469M. Net income also reflects Derivatives segment income decrease of 39% to $156M, Information Services and Technology Solutions segment income decrease of 27% to $45M, Cash Trading and Listing segment income decreased 6%.
  • VIVUS, Inc. (NASDAQ:VVUS) will report 3Q12 earnings before the opening bell.  VIVUS, Inc. (NASDAQ: VVUS), headquartered in Mountain View, CA, is a biopharmaceutical company that engages in research, development, and commercialization of products to treat obesity and to restore sexual function in women and men. The key compound in the company’s pipeline is Qsymia (previously referred to as Qnexa), a combination therapy (low dose phentermine and low dose topiramate) for the treatment of obesity and diabetes. The company received a Complete Response Letter from the FDA for Qsymia in October 2010 and in our view the primary outstanding issue was better characterizing the risk of birth defects with topiramate. The company re-submitted the Qnexa NDA in October 2011 and the FDA approved the drug on July 17, 2012. Vivus’ product pipeline includes avanafil, for the treatment of male erectile dysfunction, which was approved by the FDA in April 2012. For the six months ended 30 June 2012, VIVUS, Inc. revenues remained flat at $0K. Net loss before extraordinary items increased 64% to $43M. Revenues reflect market conditions. Higher net loss reflects Interest and other income, net decrease of 9% to $74K (income). Basic Earnings per Share excluding Extraordinary Items decreased from -$0.32 to -$0.45. John Burbank’s Passport Capital, is the largest shareholder of the company, and recently increased its holding to 8.5% of outstanding shares.
  • DISH Network Corp. (NASDAQ:DISH)  reports Q3 earnings before the opening bell. The street expects DISH to report Q3 EPS of $0.55. There remains a broad debate on what DISH’s ultimate wireless strategy will be. A large majority of investors believe Mr Ergen’s pitch that he is enamored with the prospect of entering the wireless business and will soon begin building out a network in some form. Co-Founder Charlie Ergen was disruptive in pay TV in the U.S., why not wireless as well? A few still view Mr. Ergen’s commentary as a convenient mirage as part of an outreach effort to increase the perceived strategic value of DISH to DirecTV and AT&T Inc. (NYSE:T). With the (1) Voom litigation settled at an attractive $700mm, (2) DISH’s balance sheet flush with cash (~$4.8b at end of 2Q12) + another $1b of debt issued in July, and (3) the potential for unattractive dividend tax changes in 2013, Credit Suisse believes there is an approximately 50% chance that DISH will announce a 1x dividend when it releases 3Q12 results, as the company did in Nov 2009 and in Nov 2011. For the six months ended 30 June 2012, DISH Network Corp. (NASDAQ:DISH) revenues increased 5% to $7.15B. Net income decreased 34% to $586M. Revenues reflect Blockbuster segment increase from $254M to $587.3M, DISH Network segment increase of less than 1% to $6.58B, Wireless Spectrum segment increase from $0K to $329K, United States segment increase of 3% to $6.91B, United Kingdom segment increase from $63.7M to $140.2M.
  • Martin Marietta Materials, Inc. (NYSE:MLM) is reporting earnings before the market opens today. Analysts expect Martin Marietta Materials, Inc. (NYSE:MLM) to report Q3 EPS of $1.24. The CEO recently highlighted the change in the new federal highway bill (MAP-21) which increased the available funding under the Transportation Infrastructure Financing and Innovation Act (TIFIA). The amount of this federal credit increases under MAP-21 from $122m a year to $750m in FY2013 and $1bn in FY2014. The associated lending capacity that this will support is about ten times this amount i.e. $17.5bn. The maximum share of the project funding that it can account for also increases from 33% to 49%. Therefore the total amount of work that could be funded exceeds $35bn, which is more than the $27.5bn highway stimulus package in 2009 and could be almost a 50% increase in the level of highway funding over the next two years. Martin Marietta reduced its workforce from 6,400 in 2003 to 4,700 in 2011. 800 of the reduction occurred between 2003 and 2006 when volumes were still increasing. For the six months ended 30 June 2012, Martin Marietta Materials, Inc. (NYSE:MLM) revenues increased 19% to $939.7M. Net income before extraordinary items decreased 99% to $296K. Revenues reflect Aggregates Business segment increase of 21% to $828.1M, Speciality Products segment increase of 3% to $111.6M. Net income was offset by Corporate Expense segment loss increase from $8.2M to $43.9M. MLM got Einhorned several months ago, after the famous hedge fund manager said that the company has “problems on many levels.”
  • OfficeMax Incorporated (NYSE:OMX) will report 3Q12 earnings today before the market open, November 6th. The street expects OfficeMax Incorporated (NYSE:OMX) to report EPS of $0.26.  Potential stock catalysts include: 1) comments on market share dynamics, 2) indication of stabilization in SSS, 3) trajectory of comp trends in higher margin service offerings, 4) promotional cadence during the quarter and 5) the potential impact of higher gas prices on GPMs. For the 26 weeks ended 30 June 2012, OfficeMax Incorporated (NYSE:OMX) revenues decreased 1% to $3.48B. Net income applicable to common stockholders increased 87% to $15.6M. Revenues reflect Retail segment decrease of 4% to $1.64B, International segment decrease of 3% to $717.4M, United States segment decrease of 1% to $2.76B, Comp. Store Sales (Growth – %) – Mexico decrease of 91% to 2.1%, Value of Retail Sales decrease of 4% to $1.64B.

Disclosure: No position in any securities mentioned

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