Earnings Reports 04/19/07

Read between the lines and see the theme of waning demand, non durable economic activity and rising prices... After the bell: AMD & Google

"Nobody Home"... #1 US Homebuilder, DR Horton, reported an earnings plunge of 85%. Sales closures -22%; revenue -26%; net sales orders -37%; order value -41%; cancellations 32%.

"ET Phone Home".... Nokia, beating expectations while #2 Motorola posted a loss. The worlds top cell phone maker (33% market share), acheived a gross margin of 33.1%, saving the day.

Yoy phone sales +21%, but global sales only +4% on a 14% sequential decline in units shipped.

Revenue +3.7%, but Q1 net profit - 6.6% on +45% Yoy phone sales in China & India at lower prices. North America sales -43% Yoy and operating profit as a % of sales -1.5%.

Nokia projects a 10% increase in units shipped, while prices will continue to decline. Nokia & Siemens merged network units and plan to cut 9000 jobs to boost margins.

"The Pusher Man"..... Merck sales booming 7% on the AMA again lowering the "high" cholesterol and blood pressure thresholds.

Pill Pushers (Dr.s) had combined sales of Vytorin and Zetia up 47% and hypertension drugs Cozaar and Hyzaar up 14%.

"Money Shufflers and Loan Sharks".... Merrill Lynch, the world's largest brokerage, posted a 31% boost in Q1 profit on a surge in trading revenue. Net revenue +24%; stock & bonding trading revenue +42%.

BofA Q1 net profit +5% despite declines in lending margin and higher loan losses. Net charge offs, or loans that are NOT expected to be paid back, increased 74% to $1.43 Billion.

Loan sharking and money shuffling profits helped beat the number as net income from all main business activities (read banking) fell along with net interest income.

The #2 US Bank raised credit card fees 16% and investment banking revenue rose 35% on higher fees from merger advising and debt & equity underwriting.

"Missing a meal?".... Kraft (Altria Group) missed, net income -21%, net revenue +8% on higher cigarette prices.

"Easy Rider"... Harley Davidson, production down 15% on a plant strike, total sales down 1.3% as the US sales shrank 6% and Japan -7.7%. Harley beating the number on 4% higher selling prices.

"Fly me.".. #4 US Airline, Continental beating expectations and showing its 1st Q1 profit since 2001 on higher ticket prices, but falling yields indicate softer demand.

#6 US Airline, Southwest beating expectations with a rise in Q1 net income on higher ticket prices, but rising fuel costs and lower passenger volume cut earnings per share by 50%.

Comments