When you write about Apple (AAPL), you inevitably hear from some naive person informing you that, "You just don't get it; Apple is different."
There are certainly many things about Apple that are very different, but in the context of the "you just don't get it" crowd, it is absolutely not. The same was said about Google (GOOG) only a short while ago, Xerox (XRX) three decades ago and Winchester -- now part of Olin Corp. (OLN) -- rifles 125 years ago.
Continue reading Chasing Value: Apple's Cash Is Different
Humble copier company Xerox (XRX) is suddenly the toast of Wall Street. In addition to a bullish Barron's feature earlier this week, the stock garnered a rush of attention from optimistic options players Thursday. Although the security has yet to establish a firm foothold in double-digit territory, it seems that hopes are running pretty high for Xerox.
On Thursday, call volume on XRX surged to 28 times the norm, with roughly 103,000 contracts crossing the tape. Most of the volume was focused on the January 2011 series of options, as one trader closed out a block of 35,000 January 7.50 calls and exchanged them for 35,000 contracts of the January 9 call. By rolling these calls up to a higher strike, the speculator is indicating that he expects additional upside from XRX during the intermediate term.
Continue reading Should You Buy the Bullish Hype on Xerox?
Over the weekend, Barron's published a very favorable cover story on Xerox (XRX), noting that the company is branching out to "recast" itself as a service company. The article points out that Xerox has seen steady increases in earnings, which have repeatedly topped the Street's expectations. In fact, Xerox CEO Ursula Burns went as far as to say that "Shareholders clearly love us because we can deliver predictable earnings growth."
The article also notes that the Street is a bit behind as far as coming to terms with how Xerox's new businesses will perform. This leads some to believe that the shares could trade at a "reasonable 8.6x estimated earnings for the year ahead." Yes, 8.6 times the estimated earnings in the coming year. The article also states that although Xerox stock is trading "well below" its five-year price-earnings ratio of 13x, a move to 12x would result in a "jump of at least 50%." So, just a move toward the five-year P/E ratio could result in a 50% jump -- good numbers, but let's take a look at XRX's technical performance to see what technical hurdles lie in the road.
Continue reading Xerox Rallies Thanks to Positive Barron's Mention
Copier-and-printer firm Xerox (XRX) released first-quarter results Friday morning, topping the consensus estimate despite posting a loss of four cents per share.
The results were pulled lower by one-time charges related to layoffs and the company's acquisition of Affiliated Computer Services. Excluding one-time costs, Xerox earned 18 cents per share, a nickel better than the Street expected. Revenue increased 33% compared to a year ago, coming in at $4.7 billion. The revenue increase is credited to the addition of Affiliated's business outsourcing segment.
Continue reading One-Time Charges Force Xerox to a Quarterly Loss
It's been a busy week in the equities market. Earnings reports are coming fast and furious. I thought I would catch up on a few companies with a brief look at their numbers.
First up is an entity from the consumer products sector. Kimberly-Clark (KMB), a colleague of Procter & Gamble (PG), issued fourth-quarter data on Friday. Sales increased over 8%, with a better currency environment helping things out. Organic sales powered up almost 3%, driven in part by higher prices. Per-share profit went up over 15% to $1.17.
Continue reading A Look at Three Quarterly Reports: Kimberly-Clark, Xerox, American Express
Out of the chute this morning, the S&P/Case-Shiller index rose 1.2% in July and gave the market a nice uptick for a while. Then came the report from the Conference Board that its consumer confidence index for September fell to 53.1 from 54.5 in August. What was worse is that economists had estimated a rise to 57 for the month. The soft confidence number is almost certainly due to people worried about losing their jobs. Right now, it could be that traders are waiting for Friday's unemployment report before jumping one way or the other. The negative news won out and the indexes traded down most of the day.
Continue reading Closing Bell: Housing, consumer confidence deliver lukewarm trading (CIT, C, BAC, ACS, XRX, SQNM & RIMM)
Traders had on their rally caps today, and the DJIA moved as high as 9,823 as it renewed its ascent toward 10,000. The index moved back down a bit at the end of the day as traders got lazy during a session in which most of the news came before the bell.
Abbott Laboratories (NYSE: ABT) and Xerox Corporation (NYSE: XRX) both announced deals today that pumped some air into the M&A business. Financial shares are mostly moving higher because increased M&A activity generally means more fees for financial services companies. Trading volume was light, mostly due to the Yom Kippur holiday today.
Dow 9,789.44 +124.25 (1.29%)
S&P 500 1,062.88 +18.50 (1.77%)
Nasdaq 2,130.74 +39.82 (1.90%)
Continue reading Closing bell: M&A gives market a boost; Coffee also provides stimulus (C, BAC, ACS, DDRX & GMCR)
- Citigroup upgraded WebMD (NASDAQ: WBMD) shares to Buy from Hold on valuation following the company's Q4 results and outlook. The firm maintains a $25 target on the stock.
- Goldman upgraded Verizon (NYSE: VZ) and AT&T (NYSE: T) to Buy from Neutral based on valuation and expectations for 2010 earnings growth.
- Roth upgraded Maxwell Tech (NASDAQ: MXWL) to Buy from Hold following the company's Q4 results to reflect strong ultracapacitor sales growth and gross margin improvement. The firm maintains a $12 target on the stock.
- Nara Bancorp (NASDAQ: NARA) was raised to Market Perform from Underperform at Friedman Billings.
- Cubic (NYSE: CUB) was upgraded to Neutral from Overweight at JP Morgan.
- Terex (NYSE: TEX) was lifted to Outperform from Market Perform at Wachovia.
Continue reading Analyst upgrades, downgrades and initiations: VZ, T, GT, RIO, XRX, MA ...
U.S. stocks are poised to open lower as investors were spooked by bearish economic data
from the U.K. that showed the economy there is in its worst shape since 1980 when Margaret Thatcher was Prime Minister. Concerns continue to linger about the U.S. economy and the potential nationalization of banks.
Markets may be bolstered by the in-line earnings report from General Electric Co.
). Chief Executive Jeff Immelt reaffirmed the company's commitment to a "AAA" rating and its dividend. Investors were skeptical that either would be maintained. The conglomerate's results overall were poor.
Profit from continuing operations fell 43% to $3.87 billion, or 36 cents per share. Revenue fell 4.8% to $46.2 billion. Bloomberg News
notes that GE shares traded at their lowest level since 1996 as investors worried about the impact of the economic slowdown on the company, in particular GE Finance.
Other stocks that may move include Google Inc.
), which reported better-than-expected earnings allaying concerns that decliniing advertising spendnig would hurt the world's largest search engine. Whether the company will continue to weather the storm well remains to be seen. Google has been cutting costs as well, recently eliminating some recruiter postions and closing offices.
The litany of job cut announcements continue. Harley-Davidson Inc.
) plans to cut 1,100 over the next two years.
after reporting worse-than-expected earnings. Playboy Enterprises Inc.
) is firing an unspecified number of workers to cut costs
. There is no word if this move includes founder Hugh Hefner's former girlfriends from "The Girls Next Door." Xerox Corp.
) reported disappointing results
after taking a big writedown for layoffs.
This week's rough week is not going to get any easier.
I think it's fair to say that there's much trepidation about the earnings season that picks up steam this week. And for better or worse, numbers from the big financials have begun to roll in. Last week we saw profit sink for JPMorgan Chase (NYSE: JPM) and significant losses from Bank of American Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C), and Deutsche Bank (NYSE: DB).
Analysts surveyed by Thomson Reuters expect Bank of New York Mellon Corp. (NYSE: BK) to be among those financials reporting fourth-quarter earnings growth this week. They anticipate that Bank of New York will post a profit of $0.70 per share, compared to $0.67 per share a year ago and $0.72 in the previous quarter. Revenue is expected come to $3.8 billion, about the same as it was a year ago. Bank of New York has fallen short of earnings estimates in two of the past five quarters, by as much as 11.1%. For the full year, analysts are looking for $2.78 per share (+5.8%) on $14.8 billion (+4.2%). The consensus recommendation of analysts is to buy BK, and the long-term EPS growth rate forecast is 10.7%. Shares are 48.7% lower than a year ago. Other financials expected to report quarterly earnings growth this week include SunTrust Banks Inc. (NYSE: STI) and M&T Bank Corp. (NYSE: MTB).
Continue reading The week in preview: Financials, techs lead off earnings crunch
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