Today - Tuesday, January 27, 2015
- Q4 income from continuing operations of $252M or $1.37 per share vs. $123M and $0.61 one year ago. Income this quarter was boosted by $44M or $0.24 per share from the partial reversal of the DTA.
- Net finance revenue of $373M vs. $325M a year ago. Average earning assets of $34.3B vs. $30.8B.
- Operating expenses of $249M vs. $284M a year ago. Excluding restructuring costs, operating expenses of $242M were 2.82% of average earning assets vs. 2.87% a year ago.
- Credit metrics remain at or near cycle lows. Non-accrual loans of $161M or 0.82% of finance receivables vs. 1.29% a year ago.
- Net charge-offs of $23M or 0.47% of average finance receivables vs. 0.32% a year ago.
- Tier 1 Capital ratio of 14.5% vs. 16.7% a year ago.
- Tangible book value per share of $46.83 rises from $45.87 thanks to the partial reversal of the DTA.
- 2.5 M share repurchased during Q for a total of $117M.
- Previously: CIT beats by $0.42, beats on revenue
- CIT +1.64% PM.
9:19 AM| 1 Comment
- Adaptive Medias (OTCQB:ADTM) has terminated CEO Qayed Shareef and removed him as director, following his arrest last week on sexual assault and child pornography charges. Shareef could face 752 years in prison.
- The company also named Beanstock Media CEO Jim Waltz as its acting COO. Waltz has been head of sales at DoubleClick and will retain his role at Beanstock, an ad-tech company.
- A five-person committee will begin a search for a new CEO.
- OTCQB:ADTM fell 46.4% yesterday and is down another 2.7% premarket.
- Freeport McMoRan (NYSE:FCX) -5.5% premarket after missing expectations for Q4 earnings and saying that it has cut 2015 capital spending by $2B with the possibility of further cuts ahead.
- Says it is taking "aggressive actions" to defer or reduce capital spending, and is seeking third-party funding for much of its oil and gas expenditures "to maintain financial strength and flexibility" in response to the drop in oil prices.
- FCX says its Q4 copper sales fell to 972M lbs. from 1.14B lbs. in the year-ago quarter, primarily reflecting the sale of Candelaria in Nov. 2014 and lower sales from Cerro Verde and Indonesia, while gold sales fell to 377K oz. from 512K oz.
- Q4 average realized prices for copper fell 10.9% Y/Y, gold prices fell 2.2%, and oil prices declined 15.8% from a year earlier.
- Net income of $450M, up from $408M, a year ago. EPS from continuing operations of $1.18, 28% higher than the year-ago period.
- Organic revenue growth was up 2.3%, with North American and international growth of 3% and 2%, respectively. Organic revenue by segment: Automotive OEM +7%; Food Equipment +5%; Welding +4%.
- For the first quarter 2015, the company expects EPS to be in a range of $1.13-$1.21, with 2%-3% percent organic revenue growth.
- The company also confirmed its 2015 full-year EPS guidance range of $5.15-$5.35, with organic revenue growth of 2.5%-3.5%.
- Q4 results
- The read from Redbook on retail sales through a good portion of the month indicates sales might decline around 3% M/M from December after the impact of auto and gas are backed out.
- The December retail sales showed a small decline from November.
- The Weekly Retail Chain Store Sales Index released today fell 0.6% W/W in another indication of softness in the retail sector, although on a year-over-year comparison the reading was up 2.6%.
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- "With the spring home buying season, and spring training, still a month or two away, the housing recovery is barely on first base," says S&P Dow Jones' David Blitzer, after U.S. home prices edged lower in November. "Prospects for a home run in 2015 aren't good."
- On a year-over-year basis, the 20-city composite index was higher by 4.3% vs. 4.5% in October.
- Blitzer notes most of the strong home price gains are concentrated in California, Florida, the Pacific Northwest, Denver, and Dallas.
- Full report
- Previously: S&P Case-Shiller Home Price Index (Jan. 27)
9:03 AM| Comment!
- Morgan Stanley has pushed back the timing of its expected first Fed rate hike to March 2016, reports Bloomberg.
- Earlier, the Caterpillar CEO - after his company dour 2015 forecast - urged the Fed to hold off this year, and over the weekend Felix Zulauf suggested disappointing economic growth will force the Fed to postpone tighter policy this year, and maybe the next.
- Meanwhile, Fed members from all sides of the dove/hawk split continue to promise a mid-year rate hike. The FOMC begins a 2-day meeting today.
- Earlier: Durable goods orders for December missed estimates by a mile
- The 10-year Treasury yield is lower by six basis points to 1.77%.
- TLT +0.8%, TBT -1.6%
- ETFs: TBT, TLT, TMV, TBF, EDV, TMF, TTT, ZROZ, SBND, TLH, VGLT, DLBS, UBT, TLO, TENZ, LBND, TYBS, DLBL
- Operating margin rate increased 60 bps to 12.1%, primarily driven by operating leverage from revenue growth, lower motor fuel costs, and lower bad debt expense.
- ROIC rose 130 bps to 11.5%.
- FY2015 Guidance: Revenue: $930M to $950M; Diluted EPS: $3.20 to $3.30.
- Lockheed Martin (NYSE:LMT) reports a Q4 net profit of $904M, or $2.82 per share vs. $488M, or $1.50 per share a year ago.
- The company ended 2014 with a backlog of $80.5B.
- Lockheed projects 2015 earnings per share of $10.80-$11.10, compared with $11.46 a share estimated by analysts, on revenues of $43.5B–$45B.
- LMT -1.4% premarket
- Q4 results
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