IHS Inc. (NYSE: IHS) provides documents, decision-support tools and related services to customers in a variety of technical fields. The firm's Energy division delivers oil and gas data on exploration, development, production, and transportation activities to energy producers and oil companies. Its Engineering division provides technical specifications and standards, regulations, parts data, design guides and other information to customers in the defense, aerospace, construction, energy, electronics and automotive industries. Customers include Amgen (NASDAQ: AMGN), Boeing (NYSE: BA) and DuPont (NYSE: DD).
The company surprised the Street last week, when it reported Q2 EPS of 46 cents and revenues of $207.2 million. Analysts had been expecting 44 cents and $200.5 million. According to the CFO, the underlying subscription-based business continued to perform very well, helping to generate top-line growth, margin expansion and a record quarterly cash flow from operations. As a result, the firm was able to re-pay money borrowed at the start of Q2 for three March acquisitions. Management also guided FY08 revenues to about $833.0-$846.7 million, versus consensus of $842.80 million.
Fluor Corporation (NYSE: FLR) provides engineering, procurement, construction management and project management services worldwide. Projects involve the design and construction of manufacturing facilities, transportation infrastructure, refineries, healthcare buildings, power plants and telecommunications infrastructure. The company also provides administrative and support services to the U.S. government. The oil and gas sector accounts for about 50% of sales. Commercial clients include Exxon Mobil (NYSE: XOM), General Motors (NYSE: GM) and DuPont (NYSE: DD).
Investors were pleased last week, when the company reported Q1 EPS of $1.50 and revenues of $4.81 billion. Analysts had been looking for $1.27 and $4.64 billion. Officials said that consolidated backlog rose to $31.5 billion, up 33% from the year ago period. Management also guided FY08 EPS to $6.25-$6.55, versus consensus of $5.63.
TheStreet.com's Jim Cramer says lots of companies now thrive with crude up here.
Oil's not a tax on everything -- it's a tax on the consumer. That's what I come down to when I see the charts this weekend and ponder what's happening in so much of industrial America.
Company after company that I examine -- the new techs, as I call them -- actually benefit from higher oil prices. Or they can pass them on with ease, because of the worldwide demand being so strong.
Take all of the companies involved with making a Boeing (NYSE: BA) (Cramer's Take): Boeing itself, Alcoa (NYSE: AA) (Cramer's Take), Honeywell (NYSE: HON) (Cramer's Take) and Precision Castparts (NYSE: PCP) (Cramer's Take) being good examples. Each of these is necessary because the new Dreamliner burns lots less fuel, and with fuel the biggest airline cost, it stands to reason that higher energy prices make the plane more desirable even at a higher price point.
Resource industry specialists Roger Conrad and Yiannis Mostrous are bullish on the agriculture and water sectors; in their model portfolio they already hold 6 stocks in these sectors.
The co-editors of Vital Resource Investor explain, "We see strong underpinnings for continued higher agricultural prices for many years to come." Here's their latest agrculture play: EI du Pont de Nemours (NYSE: DD).
"Recently the United Nations Food Agency warned of civil war in some countries because of global food shortages. With the rapid urbanization of Asian countries, we see a growing global dependence on a shrinking number of food producing nations, particularly with the world adding 78.5 million people each year.
"There will be ups and downs for prices along the way. A throttling back of America's efforts to develop ethanol so extensively or a move to use something besides corn to brew ethanol could take some of the upward pressure off corn prices.
"A real global recession could also cause food prices to back off for a time and it's also possible we'll see some form of US government intervention to curb food prices, particularly as the presidential election develops.
There were a lot of earnings reports this week -- if you weren't setting up some trades before the reports were released, you're probably digesting the numbers now. I had a look at 3M (NYSE: MMM) this morning. The famous Dow component, which competes with Johnson & Johnson (NYSE: JNJ) and DuPont (NYSE: DD), reported this past Thursday. Net sales increased 9%, but diluted earnings per share unfortunately took a whopping decline of 25%. However, you need to take a look at what caused this drop -- there was a gain in last year's quarter from the disposition of a European pharmaceutical business, as well as some other items. Excluding these elements, you'll find that earnings per share grew by 8%.
According to the company's release, 3M did rather well in the free-cash-flow department. Last year at this time, free cash flow came in at $276 million. This past quarter saw free cash flow grow to just under $700 million. I liked that; I also liked that most of the company's divisions reported double-digit profit growth. This is a healthy, blue-chip dividend player -- plus, 3M is comfortable with its previously stated forward guidance of at least $5.47 in adjusted earnings per share for 2008 (or, as the release put it, management believes net income will see an increase of "a minimum of 10% over 2007 earnings-per-share of $4.98"), and it beat the street this past quarter by three pennies, according to Briefing.com.
Here are some things to think about regarding 3M's stock. If it does earn close to $5.47 a share, then the company sports a forward P/E ratio of a little over 14. The yield on the shares is well over 2%. And, as of Friday's close, the price of the stock -- $77.82 -- is well off the 52-week high of $97 and a little ways off from the 52-week low of $72.05. Taken together, this 3M scenario seems like an interesting set-up for a decent trade. The stock looks like it will probably meander for a bit, but it nevertheless should be looked at.
Disclosure: I don't own shares in any of the companies mentioned here; positions can change at any time.
Shares ofchemical maker EI DuPont de Nemours & Co. (NYSE: DD) are trading slightly higher in the premarket after the company reported a rise of 26% in its first quarter. The chemical maker also affirmed its second-quarter and full-year earnings outlooks, but warned about a weak domestic demand that is likely to put pressure on growth outside the country through the rest of 2008.
For its most recent quarter, the giant chemicals maker said its profit climbed to $1.19 billion, or $1.31 a share, compared with $945 million, or $1.01 a share reported in the same period a year ago. Analysts had expected DuPont show earnings of $1.29 a share, according to Reuters Estimates.
Looking at revenue, DuPont saw a growth of 9% to $8.58 billion, inline with analysts' predictions. The third-biggest U.S. chemical maker had to face continued economic worries such as higher fuel prices and declining housing markets that put a curb on consumer spending. However, the company was able to successfully surpass those obstacles, helped by the weak dollar and higher selling prices that offset flat domestic sales.
Hottest Stocks of 2008 (so far) Some surprising names have performed well this year--and they have room to run. They include Allied Irish Banks, Home Depot, Lowe's, American Express, Time Warner Cable, Vulcan Materials and Verizon. The Hottest Stocks This Year - Morningstar Stock Strategist
Worst Places for Homeowner's Debt It's no secret that homeowners with subprime mortgages have taken a beating. Next up: those who have combined their mortgages with home equity loans, second loans or both. These combinations spell especially bad news for homeowners with the worst city being Sacramento. Other cities with high homeowner debt include San Diego, Washington DC and Colorado Springs. Worst Cities For Homeowner Debt - Forbes.com
Stock futures were mostly lower Tuesday morning after Texas Instruments gave a disappointing outlook and as investors awaited earnings from McDonald's, AT&T and other big caps as well as housing data.
U.S. stocks ended mixed Monday as oil prices hit new record highs and Bank of America reported a 77% profit decline. The Dow industrials losing 24 points, or 0.19%, and the S&P 500 down 2 points, or 0.16% while the the tech-heavy Nasdaq Composite rose 5 points, or 0.21%.
This morning investors will focus on March existing home sales reading. Economists forecast the pace of sales again fell in March despite showing a rise in February. That rise could have been attributed to the largest housing price drop and no one called a bottom to the housing crisis back then. The March data will show if indeed that was the beginning of a trend, but most likely it will show continued decline in the housing market.
With Texas Instruments' bleak outlook, much of today's trading will be swayed by the housing data, the outcome of earnings from the large companies as well as oil prices, which have already set a new record Tuesday of over $118 a barrel. Meanwhile retail gas prices reached over $3.50 a gallon.
Bunge Limited (NYSE: BG) is an integrated agribusiness, fertilizer and food products concern. The company is a leading global processor of soybeans and other grains, a leading provider of products and services to the South American farming community and a major U.S. food processor. Some of Bunge's agribusiness products are used for industrial purposes, including renewable fuels like biodiesel. Archer-Daniels-Midland (NYSE: ADM) is a major competitor.
Investors were pleased earlier in the month, when Bunge-DuPont (NYSE: DD) joint venture Solae Company said it would increase global prices for its soy protein ingredients by up to 30%. The firm said the increases were necessary, in order to maintain a consistent level of service, innovation and investment in research.
Today was mostly a solid day until profit taking at the day's end took off some of the gains. Retail sales data was mixed to mostly poor, although the shares reacted as though the news was good as many retailers maintained or were at least close to earnings guidance. Today's equity volume was actually very light. As far as trying to figure out the huge internet merger, well that's just an obvious mess and one that all the parties will ultimately decide on.
Below was the unofficial close of major US index levels:
Wal-Mart Stores Inc. (NYSE: WMT) sees Q1 EPS 74 to 76 cents versus prior guidance of 70-74 cents. WMT over all option implied volatility of 24 is below its 26-week average of 26 according to Track Data, suggesting non-directional price risk.
DuPont (NYSE: DD) raised its Q1 2008 earnings outlook reflecting strong agriculture and emerging markets growth. DD over all option implied volatility of 29 is near its 26-week average according to Track Data, suggesting non-directional risk.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
5 Foreign Stocks to Love Concerned about your domestic investments in today's troubled economy? Consider these international companies, which can be easily purchased right here in the U.S. They include Finland's Nokia, China's CNOOC, Brazil's Embraer, U.K's InterContinental Hotels Group and Ireland's Allied Irish Banks. 5 foreign stocks we love - How we chose the stocks (1) - CNNMoney.com
Highest Paid CEOs Stocks may have fallen in 2007, but executive pay sure didn't. And if the multi-million dollar paydays for CEOs doesn't raise eyebrows, the 'perks' that go along with the money certainly will. These include corporate jets, special security, private cars with drivers to country club dues and vacations. Among the top paid CEOS including base pay, perks and other compensation are Merrill Lynch's new CEO John Thain, Oracle's Larry Ellison, Goldman Sachs' Lloyd Blankfein and American Express' Kenneth Chenault who each made over $50 million last year. List: Highest Paid CEOs Stocks may fall, but execs' pay doesn't - USATODAY.com CEO perks often include use of company jet, security - USATODAY.com
Retirees Turn to Communes With living costs spiraling upward and empty-nesters feeling a need for a greater sense of community in their lives, some baby boomers are reconsidering the concept of group living. This time around, the idea holds appeal as a cost-efficient, socially engaging way to spend their golden years. Baby boomers go back to the commune -Bankrate
12 Tips for Midnight Tax Filers These tips will help ensure that you get your return into Uncle Sam's hands on time while mailing at the last possible moment. Many happy, but last-minute, returns
Stock futures were lower this morning amid fears of weak earnings reports and jitters about oil prices, which continue to rise today.
Stocks fell Wednesday after a lowered outlook from UPS, seen as an economic bellwether, and oil briefly topping $112 a barrel, bringing the Dow industrials down 49 points or 0.4%, the Nasdaq Composite down 26 points or 1.1%; and the S&P 11 points or 0.8% lower.
On the economic calendar today, the weekly jobless claims data for the week ending April 5 is due out this morning at 8:30 a.m. EDT. According to Bloomberg, claims are expected to be around 386,000, and anything above 400,000 will fuel concerns about the weakening of the job market. Investors will also be watching March chain store sales reports. The day began with an upbeat report from Costco (NASDAQ: COST), whose sales rose 7%. Wal-Mart (NYSE: WMT) then reported its same-store sales rose 0.7%, which was below analysts' estimates of 1%, but said it expects better April figures. The company said its inventory in US stores is well managed.
Dupont (NYSE: DD) said in a statement today that its first quarter earnings topped forecasts.
documents, decision-support tools and related services to customers in a variety of technical fields. The firm's Energy division delivers oil and gas data on exploration, development, production, and transportation activities to energy producers and oil companies. Its Engineering division provides technical specifications and standards, regulations, parts data, design guides and other information to customers in the defense, aerospace, construction, energy, electronics and automotive industries. Customers include Amgen (NASDAQ: AMGN), Boeing (NYSE: BA) and DuPont (NYSE: DD).
Resource industry specialists 
Here are some highlights from this past week's 
There were a lot of earnings reports this week -- if you weren't setting up some trades before the reports were released, you're probably digesting the numbers now. I had a look at 
Shares of chemical maker 
Stock futures were mostly lower Tuesday morning after Texas Instruments gave a disappointing outlook and as investors awaited earnings from McDonald's, AT&T and other big caps as well as housing data.
Wal-Mart Stores Inc.
Mall vacancies and store closures at 28-year-high
Merrill seeks $6 billion from Bloomberg, Blackrock to finance asset write-downs
Cramer on BloggingStocks: 'Bailout' is not a dirty word
