Earnings Preview: CAT, FCX, HAS, STI, BTU, VFC, YHOO, TXN, WDC, ZION

Earnings Preview: CAT, FCX, HAS, STI, BTU, VFC, YHOO, TXN, WDC, ZION

Several major companies are reporting earnings today. We have a calendar/preview of the companies reporting (mostly third quarter) below. We highlight the companies reporting before and after the market close. The companies include, Caterpillar Inc. (NYSE:CAT), Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), Hasbro, Inc. (NASDAQ:HAS), SunTrust Banks, Inc. (NYSE:STI), Peabody Energy Corporation (NYSE:BTU), V.F. Corporation (NYSE:VFC), Yahoo! Inc. (NASDAQ:YHOO), Texas Instruments Incorporated (NASDAQ:TXN), Western Digital Corp. (NASDAQ:WDC), and Zions Bancorporation (NASDAQ:ZION)

Earnings Preview: CAT, FCX, HAS, STI, BTU, VFC, YHOO, TXN, WDC, ZION

  • Caterpillar Inc. (NYSE:CAT) is reporting third quarter earnings on Monday Morning before the open. Analysts expect Caterpillar Inc. (NYSE:CAT) to report EPS of $2.23. Morgan Stanley analysts believe that  investor focus may next shift from mining exposure, largely priced in at 9x EPS, toward the increasingly evident construction upside and potential economic bottoming in China. For the six months ended 30 June 2012, Caterpillar Inc. (NYSE:CAT). revenues increased 23% to $33.36B. Net income increased 47% to $3.29B. Revenues reflect Resource Industries segment increase of 70% to $10.17B, Power Systems segment increase of 12% to $10.5B, Construction Industries segment increase of 11% to $10.4B.
  • Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) is reporting earnings on October 22nd before the opening bell. Consensus estimates is for Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) to report quarterly earnings of $0.73 Investors will be looking for an update on Indonesian issues- smelter, royalties, divestiture, an update on 2013 capex outlook, updates on Chino and Climax ramp-up, El Abra pre feasibility, and Cerro Verde permitting/Tenke expansionFor the six months ended 30 June 2012, Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) revenues decreased 21% to $9.08B. Net income decreased 49% to $1.47B. Revenues reflect Indonesia segment decrease of 36% to $1.83B, South America Copper Mines segment decrease of 26% to $1.85B, Copper, Avg. Price per Met. Tonne, Total decrease of 14% to $8039 per metric ton, Copper Production (Metric T)-Indonesia decrease of 45% to 136K metric tons.
  • Hasbro, Inc. (NASDAQ:HAS)  will report Q3 on October 22nd. Analysts are projecting EPS of $1.20.  While Hasbro, Inc. (NASDAQ:HAS) has several toys on top lists including Furby, the firm faces tough comparisons in Q4 especially in boy’s toys against a 29.3% increase last year fueled by Transformers and Beyblades. For the 27 weeks ended 01 July 2012, Hasbro, Inc. (NASDAQ:HAS) revenues decreased 8% to $1.46B. Net income decreased 46% to $40.8M. Revenues reflect U.S. & Canada Toys segment decrease of 18% to $735.6M, Global Operations segment decrease of 47% to $2M. Net income also reflects U.S. & Canada Toys segment income decrease of 24% to $75.3M, Global Operations segment loss increase of 63% to $21.7M, International segment income decrease of 23% to $24.8M.
  • SunTrust Banks, Inc. (NYSE:STI) is expected to release third quarter earnings before the market open today. Analysts expect SunTrust Banks, Inc. (NYSE:STI) to report 3Q12 EPS of $1.83. Investors  expect SunTrust Banks, Inc. (NYSE:STI) to provide an update on its announced balance sheet repositioning, especially as it relates to future mortgage repurchase provisions and OREO expense, net interest margins will also be a key focus. For the six months ended 30 June 2012, SunTrust Banks, Inc. (NYSE:STI) interest income decreased 2% to $3.03B. Net interest income after loan loss provision increased 18% to $1.97B. Net income applicable to common stockholders increased from $212M to $515M. Net interest income after loan loss provision reflects Wholesale Banking segment increase of 47% to $726M, Consumer banking & Private Wealth Management segment increase of 15% to $991M.
  • Peabody Energy Corporation (NYSE:BTU) is expected to announce third quarter earnings on Monday. Street consensus is $0.34 EPS for Peabody Energy Corporation (NYSE:BTU).  Key questions in the quarter include operating plans for 4Q in light of weak markets, asset sale progress (ex Working capital), ’13 capex & project plans, Australia costs & FX impacts, buyback activity, contract movements for ’13, seaborne & PRB coal growth outlook, global met production trends, Mongolia strategy, recent US coal burn trends and the US inventory situation. For the six months ended 30 June 2012, Peabody Energy Corporation (NYSE:BTU) revenues increased 8% to $4.04B. Net income applicable to common stockholders excluding extraordinary items decreased 21% to $386.3M. Revenues reflect Australian Mining segment increase of 21% to $1.74B, Western U.S. Mining segment increase of 5% to $1.43B. Net income was offset by Interest Expense increase from $99.9M to $208.9M (expense).
  • V.F. Corporation (NYSE:VFC)  plans to report Q3’12 results on Monday, Oct. 22nd before market open. Conference call for V.F. Corporation (NYSE:VFC) will be at 8:30am EST. Consensus forecast is for V.F. Corporation (NYSE:VFC) to report $3.48 EPS. Investors will be looking at  updates to 2012 guidance, European macro impact, commentary on pricing strategy & lower cotton costs in 2H, inventory trends going into winter/holiday, outdoor growth, progress on the integration of Timberland and its incremental distribution, and currency impact. For the 26 weeks ended 30 June 2012, V.F. Corporation (NYSE:VFC) revenues increased 24% to $4.7B. Net income increased 12% to $370.5M. Revenues reflect Outdoor and Action Sports segment increase of 53% to $2.3B, Jeanswear segment increase of 3% to $1.34B, Imagewear segment increase of 8% to $529M. Net income was partially offset by Jeanswear segment income decrease of 6% to $204.1M, Imagewear segment income decrease of 5% to $73.3M.

After Market Close:

Mohnish Pabrai On Value Investing, Missed Opportunities and Autobiographies

Mohnish PabraiIn August, Mohnish Pabrai took part in Brown University's Value Investing Speaker Series, answering a series of questions from students. Q3 2021 hedge fund letters, conferences and more One of the topics he covered was the issue of finding cheap equities, a process the value investor has plenty of experience with. Cheap Stocks In the Read More

  • Yahoo! Inc. (NASDAQ:YHOO) is Expected To Report Q3 Results On Monday, October 22nd.  Analysts are looking for Yahoo! Inc. (NASDAQ:YHOO) to report GAAP EPS of $0.26. Investors  expect Yahoo to 1. improve user engagement and growth via product innovation; 2. Fend off Display Ad pricing pressure from the likes of Facebook and Google; 3. Develop a Mobile presence; 4. Wring out more organizational efficiencies; 5. Negotiate Asia Assets solutions (Alibaba will purchase up to one-half of Yahoo! Inc. (NASDAQ:YHOO)’s stake in Alibaba.com Limited (HKG:1688) for a minimum of $7.1B, composed of at least $6.3B in cash & at most $800MM in newly-issued  Alibaba.com Limited (HKG:1688) preferred stock); & 6. Continue to return cash to shareholders. Yahoo! Inc (YHOO) is a leading global Internet brand and one of the most trafficked internet destinations worldwide. Yahoo! Inc. (NASDAQ:YHOO) provides users with a broad range of (mostly free) information, productivity, entertainment, and communications tools. Yahoo! Inc. (NASDAQ:YHOO) then provides businesses with a range of marketing solutions to reach those users. The company, which provides services in more than 15 languages in over 20 countries, was founded in 1994 and is headquartered in Sunnyvale, California. For the six months ended 30 June 2012, Yahoo! Inc. (NASDAQ:YHOO)  revenues remained flat at $2.44B. Net income increased 12% to $513M. Revenues reflect Search segment increase of 1% to $931.4M, Display Revenue segment remaining flat at $1.05B, United States segment increase of 2% to $1.66B, Asia Pacific segment increase of 4% to $519.2M, also reflect Other segment decrease of 3% to $461.5M, EMEA segment decrease of 17% to $262.1M.
  • Texas Instruments Incorporated (NASDAQ:TXN)  will report Q3 earnings after the market close on Monday, October 22. Analysts expect TXN to report  pro forma EPS of  $0.47.  Investors provide sub-seasonal Q4 guidance, given the macro uncertainty impact on customer demand. Investors will be looking at gross margins, and cost controls.  Texas Instruments’ (TI) is leading developer, designer and manufacturer of analog, digital signal processing, RF and DLP semiconductor technologies supporting the consumer electronics, computing, industrial, automotive, networking, and communications end markets. For the six months ended 30 June 2012, Texas Instruments Incorporated revenues decreased 6% to $6.46B. Net income applicable to common stockholders decreased 47% to $699M. Revenues reflect Wireless segment decrease of 41% to $715M, Embedded Processing segment decrease of 13% to $982M, Other segment decrease of 8% to $1.27B. Net income also reflects Wireless segment loss totaling $76M vs. income of $223M.
  • Western Digital Corp. (NASDAQ:WDC) is expected to report earnings after the closing bell. On September 14th, Western Digital Corp. (NASDAQ:WDC) held an Investor Day in Orange County, CA. Management laid out a well-thought-out market analysis and company strategy, but the highlights of the Investor Day were: 1) a huge increase in the company’s longterm gross margin target, 2) introduction of a dividend policy, and 3) a reduction in TAM and revenue outlook for the September quarter.  Analysts expect Western Digital Corp. (NASDAQ:WDC) to report Q1 earnings of 2.29 today. For the fiscal year ended 29 June 2012, Western Digital Corp. (NASDAQ:WDC) revenues increased 31% to $12.48B. Net income increased from $726M to $1.61B. Revenues reflect Asia segment increase of 33% to $7.22B, United States segment increase of 49% to $2.37B. Net income benefited from Litigation accruals decrease of 72% to $7M (expense), Interest income increase of 33% to $12M (income).
  • Zions Bancorporation (NASDAQ:ZION) is expected to report third quarter EPS of $0.33 after the closing bell.   Investor attention will be focused on Zions Bancorporation (NASDAQ:ZION)’s potential loan growth and its net interest margin in light of its elevated asset sensitivity. Credit trends are expected tov continue improving in 2012, resulting in additional reserve releases although at a moderating rate. For the six months ended 30 June 2012, Zions Bancorporation (NASDAQ:ZION) interest income decreased 6% to $1.04B. Net interest income after loan loss provision increased 9% to $847.8M. Net income applicable to common stockholders increased 84% to $80.7M. Net interest income after loan loss provision reflects Amegy segment increase of 15% to $216.9M, The Commerce Bank of Washington segment increase of 30% to $13.1M, Net Interest Spread.

Disclosure: No position in any securities mentioned

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