Earnings Preview: WWE, Valeant, Vulcan, HCA Holdings, Iridium


Earnings Preview: WWE, Valeant, Vulcan, HCA Holdings, Iridium

World Wrestling Entertainment Inc. (WWE):

I can’t be the only person who views WWE’s four decade stay as an indictment of the United States, but it remains a potent force in “entertainment.” It’s not only still here, but growing. WrestleMania 29, held Sunday, April 7, 2013 at MetLife Stadium in New Jersey, and they show signs of immense strength for the WWE and Wrestlemania brands. According to WWE, WrestleMania 29 brought in an excess of $72 million, establishing it as the highest grossing event in WWE history.

Here’s a round up of hedge funds’ May returns

InvestTyro Absolute Return Fund was down 1.5% for May. The fund's main contributors in May were Super Micro Computer, which gained 1.6%, Shyft Group, which was up 1%, and GCI Liberty, which gained 1%. Detractors in May include Recro Pharma, which fell 2.6%, index shorts and hedges, which declined 2%, and DXC Technology, which was Read More

Analysts are expecting WWE to report earnings of $0.07 tomorrow, down considerably from year-over-year numbers of $0.20. Earnings per share for the year are expected at $0.35 down from $0.42 a year ago.

Revenues are expected to come in at $121.96 million for the quarter and $503.36 million for the year. These numbers would represent a loss of 0.90% and a gain of 4% respectively.

Whatever your personal feelings on “professional” “wrestling” might be the WWE will be around for decades to come given its wherewithal.

Valeant Pharmaceuticals International,  (VRX):

Valeant Pharmaceuticals International, Inc., a specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products and medical devices in the areas of neurology, dermatology, and branded generics. Valeant nearly reached its 52-week high yesterday before being pegged back today. The drug maker also announced today that it had sold one of its products to Activus for $55 million.

The consensus estimate hasn’t moved in recent months with analysts expecting Valeant to come in with earnings of $0.81 per share tomorrow. Revenue is expected to reach $297.08 million for the quarter and $1.09 billion for the year. These numbers represent a gain of 34.8% and 30.9% respectively.

Vulcan Materials Company (VMC):

Vulcan Materials Company engages in the production and sale of construction aggregates, as well as asphalt mix, ready-mixed concrete, and cement primarily in the United States. The Street can’t help but wonder if Vulcan will have a repeat of last quarters earnings miss, though Sterne Agee suggests that the stock should be bought ahead of tomorrow’s report.

The consensus estimate is looking for a loss $0.35 up from a  year-over-year loss of $0.42. For the fiscal year, analysts expect a return to profitability with EPS numbers of $0.12. This represents a significant uptick from losses last year of $0.46 per share.

A year after being $535.9 million, analysts expect revenue to fall year-over-year to $535.7 million for the quarter. For the year, revenue is expected to come in at $2.72 billion.

The company’s reported revenue has declined in each of the last three quarters. In fourth quarter of the last fiscal year, revenue declined 1% to $608.4 million while the figure fell 4.2% in third quarter of the last fiscal year from the year earlier and 1.1% in the second quarter of the last fiscal year.

HCA Holdings, Inc. (HCA):

HCA Holdings, Inc., through its subsidiaries, provides health care services in the United States. The company owns, manages, or operates hospitals, freestanding surgery centers, diagnostic and imaging centers, radiation and oncology therapy centers amongst other holdings. The company has been responsible along with its competitors for driving the industry down as a whole, ironically while trading at close to  levels nearly unseen for a year.

Consensus estimates are calling for HCA to report earnings of $0.82 per share for the quarter, compared to year-over-year earnings of $1.12. For the fiscal year analysts are calling for earnings of $3.13 compared to $3.73 the year prior. Just 90 days ago, consensus estimates expected earnings of $0.96 for the quarter.

HCA anticipates revenues for the first quarter of 2013 will be approximately $8.440 billion compared to $8.405 billion in the first quarter of 2012. Fiscal year revenue is expected to reach $34.6 billion for the year, down over 7% from the year prior.

Iridium Communications Inc. (IRDM):

Iridium Communications Inc. provides mobile voice and data communications services through satellites to businesses, the U.S. and foreign governments, non-governmental organizations, and consumers worldwide. This includes a recent long-term contract that Iridium signed with NAV CANADA early this week.

A recent Forbes article titled “How And When To Buy A Satellite Phone” details why satellite phones are increasingly going mainstream and why Iridium is “now thriving.” The article states that…”Traditional sat phones buyers are government and public safety agencies, energy companies, shippers, and search and rescue organizations. But an increasing number of private individuals are buying sat phones as an insurance policy against losing their capability to communicate with the world.” Things like the Boston bombing only reenforces this case.

The consensus estimate suggests that Iridium will report earnings of $0.19 per share up from $0.16 in the same quarter last year. For the fiscal year, the consensus has Iridium returning $0.93 up from $0.83 a year ago.

Revenue is expected to reach $97.63 million for the quarter up 4.4% on last year’s sales of $93.47 million. For the fiscal year, the consensus anticipates revenues to be up over 5% with sales reaching $403.65 million.