Lower Copper and Gold Prices Weigh on Freeport-McMoRan’s Quarter
Stronger-than-expected oil and gas volume highlighted Freeport-McMoRan’s third quarter on the operating front. However, lower copper and gold prices pressured cash flow and net debt rose in the quarter. We expect still-lower prices and continue to doubt Freeport can meaningfully deleverage unless it undertakes significant asset sales and cuts its dividend. Production and cost figures were solid. Strong output in the Eagle Ford and Gulf … Continue reading Lower Copper and Gold Prices Weigh on Freeport-McMoRan’s Quarter
Kimberly-Clark Withstands Pressure, Posts Adequate Earnings Results in Quarter
With a portfolio of leading brands and an expansive global distribution network, Kimberly-Clark continues to withstand the challenges resulting from intense competitive activity and lackluster macro conditions. Management raised the lower end of its full-year adjusted earnings per share expectations to $5.65-$5.75 (from $5.60 and compared with our forecast of $5.71), partly reflecting a lower tax rate and share count. Our $93 fair value estimate … Continue reading Kimberly-Clark Withstands Pressure, Posts Adequate Earnings Results in Quarter
Anixter Posts Disappointing Q3 Revenue
Anixter reported third-quarter revenue and net income that imply 2013 results will be below street expectations, primarily because of emerging-market customer (13% of quarterly sales) project delays into the fourth quarter and early 2014. Additionally, heavy-truck manufacturing customers have delayed their anticipated business improvement into 2014, relative to prior expectations for strong sales in late 2013. We have modestly reduced our 2013 operating income and … Continue reading Anixter Posts Disappointing Q3 Revenue
KPN Meets Street Expectations in Third Quarter
KPN reported third-quarter results that were generally in line with our expectations, and we are maintaining our fair value estimate and moat rating for now. While the firm has chosen to classify E-Plus, the German operation it agreed to sell to Telefonica, as a discontinued operation, we are including the division as we think there is still a significant chance that European regulators will not … Continue reading KPN Meets Street Expectations in Third Quarter
Roche’s Top-line Results on Track to Meet Guidance
Roche reported top-line results for the third quarter that put it on track to meet our expectations for the full year. Roche’s oncology drug portfolio and diagnostics segment form the basis of its personalized medicine strategy, feeding into the firm’s strong intangible assets and wide economic moat. At constant currencies, Roche’s sales were up 8% in the third quarter, with 9% pharmaceutical growth and 7% … Continue reading Roche’s Top-line Results on Track to Meet Guidance
Banco Bradesco Lowers Guidance on Slow Loan Growth
Banco Bradesco reported net income of BRL 3 billion (about $1.4 billion) for the third quarter. This was a 3.5% increase sequentially and 6.5% on a year-over-year basis. We are maintaining our narrow-moat rating and our fundamental outlook for the company at this time. Net interest income was BRL 11.7 billion, up 17% sequentially from BRL 10 billion and down 15% from BRL 13.8 billion … Continue reading Banco Bradesco Lowers Guidance on Slow Loan Growth
