Google posted second-quarter financial results that were modestly below forecasts for both revenues and earnings. The share price was beginning to bake in some overly optimistic expectations and it is no surprise that the market paused following the results. Given the relatively conservative view and after comparing our long-term discounted cash flow model to the…
Dunkin’ Brands offers investors one of the more compelling domestic and international growth stories in consumer cyclicals with an exceptionally strong free cash flow profile. Dunkin’ can extend its brand reach beyond its core markets, as management has improved franchisee cash-on-cash returns in more nascent Western and Midwest markets through better site selection, national advertising,…
Media reports over the weekend suggested Valeant Pharmaceuticals VRX held merger discussions with Actavis ACT , which may now have stalled on financial considerations. Valeant had been signaling that it was seeking to pursue a large acquisition or a merger of equals, so the magnitude of the deal was not surprising, but we were a…
Positive momentum in the long-suffering wood products business led improved results in Weyerhaeuser’s WY first quarter, as the segment benefited from improved housing demand and a cautious lumber industry that hasn’t fully recalibrated supply to meet the new demand reality. Results were more tepid in Weyerhaeuser’s other segments, as log prices haven’t enjoyed the kind…
International Game Technology IGT reported solid secondquarter results in line with our expectations. Revenue increased 11% to $600 million (compared with consensus of $572 million) and EBITDA increased 6% to $247 million (consensus of $200 million). The increase in revenue was driven by a 16% rise in product sales, primarily due to strong sales of…
We are maintaining our fair value estimate and economic moat rating for Ingram Micro IM after the company reported solid first-quarter results that indicated consumers across the globe are spending more on IT. Ingram Micro’s sales grew 19% year-over-year to $10.6 billion, with the 2012 BrightPoints and Aptec acquisitions adding $1.85 billion, or 13%, to…
