Weak Hospital Spending Hurts Varian Medical Systems Q4 Results
Varian Medical Systems reported fairly weak fiscal fourth-quarter results. The company’s performance continues to be affected by tightening U.S. radiology reimbursement for freestanding clinics and the generally weak hospital spending environment. Our narrow moat and positive moat trend ratings remain intact; we continue to believe Varian is well positioned to capitalize on its strong technological platform and produce strong results over the next decade. We’re … Continue reading Weak Hospital Spending Hurts Varian Medical Systems Q4 Results
Winnebago Industries Reports Another Excellent Quarter
Winnebago Industries reported another excellent quarter to close out fiscal 2013. We plan to modestly increase our fair value estimate to reflect more expense leverage and a higher mid-cycle margin than previously modeled. Revenue for the quarter increased 31.8% year over year thanks to a 43.1% rise in motor home deliveries to 1,890 units. For the full fiscal year, deliveries were the highest in five … Continue reading Winnebago Industries Reports Another Excellent Quarter
Precision Castparts Posts Record Sales in Second Quarter
Precision Castparts reported record sales of $2.36 billion in the second quarter of fiscal 2014, a 23% increase including 6% organic. The surprise, once again, was the 170-basis-point increase in operating margins to 27.5%, as the company has quickly brought Titanium Metals’ midteens operating margins closer to Precision’s mid-20s levels, leaving no doubt regarding the execution ability. Solid commercial aerospace build rates, strong spares, the shipment … Continue reading Precision Castparts Posts Record Sales in Second Quarter
Western Digital Surpasses Expectations in Fiscal Q3
Western Digital posted third quarter results that surpassed our expectations and management’s quarterly guidance, making it clear that the market hasn’t forgotten about hard disk drives (HDDs). While Western Digital’s near-term prospects are better than we had anticipated, we are maintaining our stable moat rating as these opportunities are balanced by adverse secular trends that will likely limit the company’s long-term performance. Sales in the … Continue reading Western Digital Surpasses Expectations in Fiscal Q3
Deutsche Bank Announces Capital Raise, Previews 1Q Earnings
It has been long said that Deutsche Bank looks undercapitalized, so it was no surprise today when the bank announced plans to raise EUR 2.8 billion of fresh equity capital through private placements. It plans to issue as many as 90 million new shares, which imply an issuance price of EUR 31.11. At the same time, the bank gave a brief overview of its better-than-expected … Continue reading Deutsche Bank Announces Capital Raise, Previews 1Q Earnings
PetroChina Sees Improvement in Refining Segment in Q3
PetroChina reported third-quarter results that included decreasing refining losses, which we attribute to China’s adjusted refined product pricing mechanism. Exploration and production operating profit for the quarter was roughly even with the same period last year, but broke a sequential downtrend in 2013 over the first six months of this year. On the whole, PetroChina’s quarterly results were reasonably close to our expectations, and we … Continue reading PetroChina Sees Improvement in Refining Segment in Q3