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This is Part IV of earnings being reported on Tuesday. There are quite a few market moving stocks reporting earnings. It is not hard to tell we are right in the middle of earnings season. Due to the quantity of companies reporting I am focusing on the highest volume traded stocks. There is more than one stock that I would buy and more than one I would short. I really get excited looking at all the opportunities that earnings week offers.

United Parcel Service Inc. (NYSE:UPS) is a $73.14 billion market cap package delivery company. The company operates in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations. U.S. Domestic Package operations include the delivery of letters, documents, and packages throughout the United States.
The company reported (basic) $0.89 per share in earnings for the quarter ending March 31, 2011. The Quick Ratio is 1.96(generally the higher the better). The next reporting quarter estimated mean earnings are $1.04 per share. Analyst estimates range between $0.98 and $1.1 per share.

The current trailing twelve months (ttm) P/E ratio is 19.363 and the forward P/E ratio is 14.83. The falling P/E ratio is the result of future earnings increasing relative to the current price and suggests bullishness in the company by analysts. The stock has a price to book ratio (ttm) of 9.12. The price to sales ratio is 1.47.

In the last month the stock has moved in price 4.27%, with a one year change of 17.43%. Comparing to the S&P 500 price change, United Parcel Service Inc's performance is -1.67% vs. the S&P 500 from a month ago, and the one year difference is -4.51% vs. S&P 500 price change. The charts look good with the moving averages looking good as well. I believe there is real value with UPS and it can be bought on any weakness in the stock price, absent some material change in the company.



The annual growth rate of revenue is 9.38%. The last fiscal year had accounts receivable to sales percentage of 0.1235% compared to the same period a year earlier of 0.1307%. For the trailing twelve months investors received $1.82 in dividends for a yield of 2.8%.

Click to enlarge


United Parcel Service Inc. has rising revenue year-over-year of $49.55 billion for 2010 vs. $45.30 billion for 2009. The bottom line has rising earnings year-over-year of $3.49 billion for 2010 vs. $2.15 billion for 2009. The company's earnings before income and taxes are rising with an EBIT year-over-year of $5.87 billion for 2010 vs. $3.80 billion for 2009.

Here is a look at reported earnings (some one time items are often excluded in reported EPS) compared to the mean estimate. Dollar differences are rounded to the nearest penny and percentage differences are rounded based on rounded dollar differences.

Fiscal Quarter Ending Month-YR Estimate Actual Difference Difference %
Mar-110.850.880.034.12%
Dec-101.051.080.032.61%
Sep-100.880.930.055.61%
Jun-100.770.840.079.59%
Mar-100.570.710.1424.61%

Occidental Petroleum Corp. (NYSE:OXY) is a $87.69 billion market cap company. Occidental Petroleum Corporation (Occidental) conducts its operations through various subsidiaries and affiliates. Occidental operates in three segments: oil and gas segment, chemical segment, and midstream, marketing and other segment.
The company reported (basic) $1.9 per share in earnings for the quarter ending March 31, 2011. The Quick Ratio is 1.54. The next reporting quarter estimated mean earnings are $2.19 per share. Analyst estimates range between $1.96 and $2.35 per share.

The current trailing twelve months (ttm) P/E ratio is 18.04 and the forward P/E ratio is 11.01. The stock has a price to book ratio (ttm) of 2.46. The price to sales ratio is 4.2. The chart looks very solid, and while the yield is not the highest, I would be willing to invest in this company even going into earnings. I may consider writing some put options for premium.

In the last month the stock has moved in price 9.57%, with a one year change of 31.37%. Comparing to the S&P500 price change, Occidental Petroleum/'s performance is 3.33% vs. the S&P 500 from a month ago, and the one year difference is 6.82% vs. S&P 500 price change.

The annual growth rate of revenue is 28.56%. The last fiscal year had accounts receivable to sales percentage of 0.2642% compared to the same period a year earlier of 0.2762%. For the trailing twelve months investors received $1.47 in dividends for a yield of 1.71%.

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Occidental Petroleum has rising revenue year-over-year of $19.05 billion for 2010 vs. $14.81 billion for 2009. The bottom line has rising earnings year-over-year of $4.53 billion for 2010 vs. $2.92 billion for 2009. The company's earnings before income and taxes are rising with an EBIT year-over-year of $7.36 billion for 2010 vs. $5.04 billion for 2009.

Here is a look at reported earnings (some one time items are often excluded in reported EPS) compared to the mean estimate. Dollar differences are rounded to the nearest penny and percentage differences are rounded based on rounded dollar differences.

Fiscal Quarter Ending Month-YR Estimate Actual Difference Difference %
Mar-111.791.960.179.52%
Dec-101.541.580.042.71%
Sep-101.351.470.128.62%
Jun-101.331.31-0.02-1.21%
Mar-101.371.32-0.05-3.46%

3m Co. (NYSE:MMM) is a $67.77 billion market cap diversified technology company with a presence in industrial and transportation, health care, display and graphics, consumer and office, safety, security and protection services, and electro and communications. 3M manages its operations in six operating business segments: industrial and transportation, health care, display and graphics, consumer and office, safety, security and protection services, and electro and communications.
The company reported (basic) $1.52 per share in earnings for the quarter ending March 31, 2011. The Quick Ratio is 1.49. The next reporting quarter estimated mean earnings are $1.6 per share. Analyst estimates range between $1.5 and $1.67 per share.

The current trailing twelve months (ttm) P/E ratio is 16.36 and the forward P/E ratio is 13.41. The falling P/E ratio is the result of future earnings increasing relative to the current price and suggests bullishness in the company by analysts. The stock has a price to book ratio (ttm) of 4. The price to sales ratio is 2.35. This is another stock that I believe can be a great investment when bought on weakness. Selling put options would be my primary method of gaining exposure to 3M.

In the last month the stock has moved in price 4.94%, with a one year change of 12.54%. Comparing to the S&P500 price change, 3m Co's performance is -1.04% vs. the S&P 500 from a month ago, and the one year difference is -8.49% vs. S&P 500 price change.

The annual growth rate of revenue is 15.31%. The last fiscal year had accounts receivable to sales percentage of 0.1356% compared to the same period a year earlier of 0.1406%. For the trailing twelve months investors received $2.1 in dividends for a yield of 2.31%.

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3m Co. has rising revenue year-over-year of $26.66 billion for 2010 vs. $23.12 billion for 2009. The bottom line has rising earnings year-over-year of $4.09 billion for 2010 vs. $3.19 billion for 2009. The company's earnings before income and taxes are rising with an EBIT year-over-year of $5.92 billion for 2010 vs. $4.81 billion for 2009.

Here is a look at reported earnings (some one time items are often excluded in reported EPS) compared to the mean estimate. Dollar differences are rounded to the nearest penny and percentage differences are rounded based on rounded dollar differences.

Fiscal Quarter Ending Month-YR Estimate Actual Difference Difference %
Mar-111.441.490.053.81%
Dec-101.271.280.010.95%
Sep-101.511.530.021.08%
Jun-101.471.540.074.66%
Mar-101.201.40.216.29%

Covidien Plc (NYSE:COV) is a $25.72 billion market cap company. Covidien Public Limited Company, formerly Covidien Ltd. is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. The company operates its businesses through three segments: Medical Devices, Pharmaceuticals and Medical Supplies.
The company reported (basic) $0.92 per share in earnings for the quarter ending March 25, 2011. The Quick Ratio is 1.39. The next reporting quarter estimated mean earnings are $0.95 per share. Analyst estimates range between $0.91 and $0.97 per share.

The current trailing twelve months (ttm) P/E ratio is 15.917 and the forward P/E ratio is 12.24. The falling P/E ratio is the result of future earnings increasing relative to the current price and suggests bullishness in the company by analysts. The stock has a price to book ratio (ttm) of 2.22. The price to sales ratio is 1.91.


The annual growth rate of revenue is 1.62%. The last fiscal year had accounts receivable to sales percentage of 0.1638% compared to the same period a year earlier of 0.1626%. For the trailing twelve months investors received $0.71 in dividends for a yield of 1.54%.


Covidien Plc has rising revenue year-over-year of $10.43 billion for 2010 vs. $10.26 billion for 2009. The bottom line has rising earnings year-over-year of $1.63 billion for 2010 vs. $907.00 million for 2009. The company's earnings before income and taxes are rising with an EBIT year-over-year of $2.06 billion for 2010 vs. $1.81 billion for 2009.

Here is a look at reported earnings (some one time items are often excluded in reported EPS) compared to the mean estimate. Dollar differences are rounded to the nearest penny and percentage differences are rounded based on rounded dollar differences.

Fiscal Quarter Ending Month-YR Estimate Actual Difference Difference %
Mar-110.890.930.044.55%
Dec-100.810.950.1417.82%
Sep-100.740.840.113.15%
Jun-100.800.850.055.91%
Mar-100.830.880.055.72%

Cummins Inc. (NYSE:CMI) is a $20.95 billion market cap company. Cummins Inc. designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products, including filtration, exhaust aftertreatment, fuel systems, controls and air handling systems.
The company reported (basic) $1.75 per share in earnings for the quarter ending March 27, 2011. The Quick Ratio is 1.32. The next reporting quarter estimated mean earnings are $2.01 per share. Analyst estimates range between $1.83 and $2.36 per share.

The current trailing twelve months (ttm) P/E ratio is 17.003 and the forward P/E ratio is 10.87. The falling P/E ratio is the result of future earnings increasing relative to the current price and suggests bullishness in the company by analysts. The stock has a price to book ratio (ttm) of 4.64. The price to sales ratio is 1.64.

In the last month the stock has moved in price 10.46%, with a one year change of 40.69%. Comparing to the S&P 500 price change, Cummins Inc's performance is 4.17% vs. the S&P 500 from a month ago, and the one year difference is 14.4% vs. S&P 500 price change.

The annual growth rate of revenue is 22.46%. The last fiscal year had accounts receivable to sales percentage of 0.1463% compared to the same period a year earlier of 0.1602%. For the trailing twelve months investors received $1.02 in dividends for a yield of 1.5%.
Cummins Inc has rising revenue year-over-year of $13.23 billion for 2010 vs. $10.80 billion for 2009. The bottom line has rising earnings year-over-year of $1.04 billion for 2010 vs. $428.00 million for 2009. The company's earnings before income and taxes are falling with an EBIT year-over-year of $1.60 billion for 2010 vs. $682.00 million for 2009.

Here is a look at reported earnings (some one time items are often excluded in reported EPS) compared to the mean estimate. Dollar differences are rounded to the nearest penny and percentage differences are rounded based on rounded dollar differences.

Fiscal Quarter Ending Month-YR Estimate Actual Difference Difference %
Mar-111.441.750.3121.53%
Dec-101.721.840.126.83%
Sep-101.401.33-0.07-4.74%
Jun-100.891.250.3640.47%
Mar-100.350.750.4115.27%

Illinois Tool Works Inc. (NYSE:ITW) is a $28.49 billion market cap multinational manufacturer of a diversified range of industrial products and equipment with operations in 57 countries. The company has eight segments: Transportation, Industrial Packaging, Power Systems & Electronics, Food Equipment, Construction Products, Polymers & Fluids, Decorative Surfaces, and Other.
The company reported (basic) $1.25 per share in earnings for the quarter ending March 31, 2011. The Quick Ratio is 1.43. The next reporting quarter estimated mean earnings are $1.02 per share. Analyst estimates range between $0.98 and $1.05 per share.

The current trailing twelve months (ttm) P/E ratio is 15.781 and the forward P/E ratio is 12.44. The stock has a price to book ratio (ttm) of 2.87. The price to sales ratio is 1.7.

In the last month the stock has moved in price 4.82%, with a one year change of 35.03%. Comparing to the S&P 500 price change, Illinois Tool Works Inc's performance is -1.15% vs. the S&P 500 from a month ago, and the one year difference is 9.8% vs. S&P 500 price change.

The annual growth rate of revenue is 14.36%. The last fiscal year had accounts receivable to sales percentage of 0.1687% compared to the same period a year earlier of 0.1795%. For the trailing twelve months investors received $1.26 in dividends for a yield of 2.39%.

Illinois Tool Works Inc has rising revenue year-over-year of $15.87 billion for 2010 vs. $13.88 billion for 2009. The bottom line has rising earnings year-over-year of $1.53 billion for 2010 vs. $947.01 million for 2009. The company's earnings before income and taxes are rising with an EBIT year-over-year of $2.36 billion for 2010 vs. $1.39 billion for 2009.

Here is a look at reported earnings (some one time items are often excluded in reported EPS) compared to the mean estimate. Dollar differences are rounded to the nearest penny and percentage differences are rounded based on rounded dollar differences.

Fiscal Quarter Ending Month-YR Estimate Actual Difference Difference %
Mar-110.840.910.078.02%
Dec-100.800.79-0.01-1.68%
Sep-100.820.830.011.33%
Jun-100.840.83-0.01-0.62%
Mar-100.570.630.0611.35%

Paccar Inc. (NASDAQ:PCAR) is a $18.35 billion market cap company. PACCAR is engaged in the design, manufacture and customer support of light, medium and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also provides customized financial services, information technology and truck parts related to its principle business.

The company reported (basic) $0.53 per share in earnings for the quarter ending March 31, 2011. The Quick Ratio is 0.76. The next reporting quarter estimated mean earnings are $0.68 per share. Analyst estimates range between $0.6 and $0.82 per share.

The current trailing twelve months (ttm) P/E ratio is 31.585 and the forward P/E ratio is 13.01. The falling P/E ratio is the result of future earnings increasing relative to the current price and suggests bullishness in the company by investors. The stock has a price to book ratio (ttm) of 3.92. The price to sales ratio is 2.13. The stock is currently trading below the 200 day moving average, although it recently had a test of the average. The PE is cheap, but that may be for good reason.

In the last month the stock has moved in price 5.51%, with a one year change of 8.88%. Comparing to the S&P 500 price change, Paccar Inc's performance is 5.15% vs. the S&P 500 from a month ago, and the one year difference is 8.57% vs. S&P 500 price change.

The annual growth rate of revenue is 30.15%. The last fiscal year had accounts receivable to sales percentage of 0.0618% compared to the same period a year earlier of 0.0731%. For the trailing twelve months investors received $0.69 in dividends for a yield of 1.43%.

Paccar Inc has rising revenue year-over-year of $9.87 billion for 2010 vs. $7.58 billion for 2009. The bottom line has rising earnings year-over-year of $457.60 million for 2010 vs. $111.90 million for 2009. The company's earnings before income and taxes are rising with an EBIT year-over-year of $439.90 million for 2010 vs. $-13.70 million for 2009.

Here is a look at reported earnings (some one time items are often excluded in reported EPS) compared to the mean estimate. Dollar differences are rounded to the nearest penny and percentage differences are rounded based on rounded dollar differences.

Fiscal Quarter Ending Month-YR Estimate Actual Difference Difference %
Mar-110.490.530.047.9%
Dec-100.460.4600.00%
Sep-100.320.330.012.9%
Jun-100.200.270.0735.95%
Mar-100.150.190.0424.75%

Flagstar Bancorp Inc. (NYSE:FBC) is a $692.35 million market cap savings and loan holding company. The company’s business is primarily conducted through its principal subsidiary, Flagstar Bank, FSB (the Bank), a federally chartered stock savings bank. As of December 31, 2009, the Bank operated 165 banking centers (of which 30 were located in retail stores), including 114 located in Michigan, 24 located in Indiana and 27 located in Georgia.
The company reported (basic) $0.06 per share in earnings for the quarter ending March 31, 2011.

The forward P/E ratio is 25. The stock has a price to book ratio (ttm) of 0.2. The price to sales ratio is 1.23.

In the last month the stock has moved in price -3.1%, with a one year change of -60.06%. Comparing to the S&P 500 price change, Flagstar Bancorp Inc's performance is -8.62% vs. the S&P 500 from a month ago, and the one year difference is -67.52% vs. S&P 500 price change.

The annual growth rate of revenue is -11.94%.
Flagstar Bancorp Inc has falling revenue year-over-year of $202.95 million for 2010 vs. $230.46 million for 2009. The bottom line has rising earnings year-over-year of $-393.56 million for 2010 vs. $-513.80 million for 2009. It would appear that it will take more than just one good earnings report to put some life back into the stock price. If the bank would end up getting delisted, it would mean a further 20% or more discount in pricing. If you stayed away from this one this long, you might as well move on to the next one and continue to stay away.

Here is a look at reported earnings (some one time items are often excluded in reported EPS) compared to the mean estimate. Dollar differences are rounded to the nearest penny and percentage differences are rounded based on rounded dollar differences.

Fiscal Quarter Ending Month-YR Estimate Actual Difference Difference %
Mar-11-0.02-0.06-0.04NA%
Dec-10-0.07-0.060.01NA%
Sep-10-0.30-0.150.15NA%
Jun-10-0.47-0.63-0.16NA%
Mar-10-1.03-1.1-0.07NA%
Source: 8 Companies to Consider That Are Reporting Earnings on Tuesday, Part IV