After reviewing MeadWestvaco’s third-quarter results and the pending land sale with Plum Creek Timber, analysts do not expect to materially change the fair value estimate of $34 per share. Starting with third-quarter results, solid performance from MWV’s Industrial and Specialty Chemicals divisions again offset persistent weakness in the Food and Beverage and the Home, Health,…
Pengrowth Energy reported earnings after the market close Wednesday. Earnings and cash flow fell, and uncertainty over the sustainability of the dividend persisted. The firm is once again in the position of requiring additional divestitures or making a dividend cut within the upcoming year. The problem for Pengrowth is that the continued payment of the…
Forward Air’s third-quarter consolidated revenue increased 18.5%. Excluding the addition of its new temperature-controlled operation, TQI, which was acquired in March, revenue was up 10%. The core airport-to-airport business grew 4% from last year, driven by solid 5.5% tonnage growth, partly offset by a 1% fall in total yield. Forward Air Solutions (the pooled distribution…
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…
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…
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…
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