Tuesday, December 12, 2017

Focus on GE's Power Segment

It's hard to understate the importance of General Electric Co.'s (NYSE:GE) power segment for investors. It's long been the company's core business, and given that CEO John Flannery's plans are to focus GE on power, healthcare, and aviation, it's clear his ability to return the ailing segment to form will be a key factor in any investment thesis around the stock. GE may well get power back on track, but if so, it's still going to take time, and it might not be as easy as many people think. Here's what you need to know.

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Friday, December 8, 2017

Is General Electric's Dividend Safe

General Electric Company's (NYSE:GE) previous annual dividend of $0.96 per share has been reduced to $0.48, but is even this payout sustainable? The reason for the cut was that earnings and cash flow fell well short of expectations in 2017 and management needs to improve performance going forward. That said, let's take a look at the plans CEO John Flannery recently outlined at the investor update, and whether they make GE's new dividend truly sustainable or not. 

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Monday, December 4, 2017

Can Caterpillar's Stock Keep Soaring

The nearly 48% increase in Caterpillar Inc.'s (NYSE:CAT) stock price over the past year has taken the stock up to heady-looking valuations that can only be justified if the company keeps raising earnings guidance. That kind of statement usually leads to concluding that the stock's priced to perfection and significant downside risk exists. That may well be a valid conclusion, but Caterpillar did raise guidance again on its third-quarter earnings report, and its end markets continue to strengthen. Can the stock's run continue?

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Danaher Corporation Stock Research

Danaher Corporation's (NYSE:DHR) third-quarter earnings saw the company return to form by generating core margin expansion and 3% core revenue growth. On a reported basis, revenue increased 9.5% and adjusted diluted EPS increased 15% in the quarter. Moreover, Danaher shrugged off the negative impact of hurricanes in reporting its strongest quarter of the year. Let's look at the quarter and what it's changed about the investment thesis for the stock.

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Friday, December 1, 2017

Key Conclusions From GE's Investor Update

On Monday, General Electric Company (NYSE:GE) CEO John Flannery finally updated investors on his strategic plan for the company, and by now, most investors will know that it involves cutting the annual dividend yield in half to $0.48. The dividend cut is painful, but if it helps get the company back on track and the stock price appreciates accordingly, most investors would be happy. Indeed, Flannery took center stage during the update conference call in order to convince shareholders that he is the man for the job. However, in analyzing the presentation, it becomes clear that the person responsible for executing the plan is probably going to be someone else. Let's take a look at the key takeaways from the update and find out who that person is.

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Wednesday, November 29, 2017

Time to Buy Dover Corporation Stock

In a stock market in which it's getting harder to and harder to find good value stocks, diversified industrial manufacturer Dover Corporation(NYSE:DOV) might just fit the bill. It's a dividend investor favorite, and management has exciting plans to release value for shareholders in the future. Let's take a closer look at what makes Dover attractive for investors. 

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Tuesday, November 28, 2017

GE Power business

Power is General Electric Company's (NYSE:GE) core strength, and its gas turbines are usually seen as its single most important product. As such, it's concerning that the power segment is the main source of the company's recent troubles. In my view, if you're considering an investment in GE's stock, then you need to know what's going on with its power segment. So here's the lowdown on GE Power.

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Monday, November 27, 2017

AgroFresh Earnings Review

Superficially, the third-quarter earnings from AgroFresh Solutions, Inc.(NASDAQ:AGFS) weren't anything to write home about, but a closer look reveals some underlying positivity. Management has been busy diversifying the company's revenue streams and cutting costs, and some of the benefits are starting to come through. Let's take a look at the results in more detail.

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Tuesday, November 21, 2017

Cognex Corporation Earnings Review

On the face of it, the record third-quarter earnings report from machine vision company Cognex (NASDAQ:CGNX) was little short of sensational. A combination of nearly 80% revenue growth and an around 90% increase in net income from continuing operations would normally be enough to thrill investors, but Cognex's management had already prepared them for a "monster" quarter.
In reality, the takeaways from the quarter are more nuanced than just the headline numbers, so let's take a closer look at them.

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Monday, November 20, 2017

Roper Technologies Earnings Review

Multi-industry industrial company Roper Technologies, Inc (NYSE:ROP)on Monday reported strong third-quarter earnings that helped illustrate the benefits of its asset-light business model and ongoing transition toward more software-based revenue streams. While the quarter wasn't without blemishes, the results reveal a company making strong progress following a difficult 2016.

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BorgWarner Earnings Review

The global auto market is slowing, but you wouldn't know it from the latest results from vehicle technology company BorgWarner, Inc (NYSE:BWA). The company has consistently demonstrated an ability to outgrow its end markets. As a consequence, its strong set of third-quarter results encouraged management to raise full-year guidance and left analysts wondering if BorgWarner's earnings growth could accelerate. Let's take a look at what happened in the third quarter.

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Tuesday, November 14, 2017

WESCO International Earnings Review

Despite having a tough year WESCO International, Inc. (NYSE:WCC) stock is only down single digits on the year so far. After a difficult first half, the supply chain solutions provider finally reported the kind of revenue growth commensurate with a strengthening industrial economy.
That said, the margin performance and earnings guidance may have disappointed some investors. Let's take a look at a mixed set of earnings for the company.

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What John Flannery Wants to Change at GE

General Electric Company (NYSE:GE) CEO John Flannery will outline his strategy for the company at the GE Investor Update event on Nov. 13. There's plenty of anticipation about the event from beleaguered investors hoping he can set the company, and the stock price, on the right path. While Flannery's exact plans will be outlined in a few weeks, his comments on the recent, and tumultuous, third-quarter earnings call offered a broad-based overview of what to expect.
So let's look at what was said and how it differs from Jeff Immelt's running of the company

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Sunday, November 12, 2017

Is Rockwell Automation a Buy?

Rockwell Automation (NYSE:ROK) is well known as a backdoor way to play growth in the industrial internet of things (IIOT). However, its 50% stock-price surge in the past year is probably more a matter of having its string of earnings upgrades come largely from improving capital spending trends in industrial automation.
The company heads into its fourth-quarter earnings on Nov. 8 with a lot of momentum, but given its high valuation on a current and forward basis, management probably needs to demonstrate its strong run can continue. In this context, let's look at the three things to focus on in the results presentations.

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Thursday, November 9, 2017

Dassault Systemes Earnings Analysis

Engineering design software company Dassault Systemes (NASDAQOTH:DASTY) reported a mixed set of third-quarter results. The underlying earnings are strong and the company is strategically setting itself up for long-term growth with its new licenses sales and exciting deals with large companies like Boeing and Scania. However, there was some near-term weakness in services revenue, and management was forced to lower full-year margin and earnings expectations due to adverse currency movements. Let's take a closer look at the quarter.

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Wednesday, November 8, 2017

Robert Half Earnings Review

Leading staffing company Robert Half International Inc. (NYSE:RHI) always gives good color on employment trends, and if its latest third-quarter results are anything to go by, the job market in the U.S. is definitely improving. Meanwhile, the company's international revenue growth remains strong. That said, there were still a couple of weak areas in the company's earnings report.

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Tuesday, November 7, 2017

General Electric Earnings Review: A Stock to Buy?

By now, most investors know that General Electric Company's (NYSE:GE) third-quarter earnings fell way short of expectations. Furthermore, the reduction in full-year guidance signals ongoing weakness in the overall business -- issues that are unlikely to be resolved in a quarter or two.
Let's look at the key issues that long-term investors need to understand from the earnings report.
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Caterpillar Earnings Preview

Caterpillar Inc. (NYSE:CAT) stock has soared in 2017, on the back of a string of consensus-busting earnings and analyst upgrades. The main reason has been its improving construction, mining, and energy industry verticals. Moreover, analysts have recently raised price targets for the stock in anticipation of a strong set of third-quarter earnings.
Clearly, the company has a lot of good momentum behind it, but can it continue? Let's preview the earnings report that comes out on Oct. 24 to see what investors need to keep an eye out for.

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3M Earnings Preview

Given that 3M Co (NYSE:MMM) and its fellow multi-industrial company Illinois Tool Works Inc. (NYSE:ITW) trade at a premium compared to earnings multiples in the last decade (see below) there will be increased pressure on both companies to deliver in the coming quarters. Focusing on 3M, let's take a look at the three things investors need to look out for when the company reports earnings on Oct 24th. 

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Monday, November 6, 2017

GE CFO Jeff Bornstein Leaving

The news that General Electric Company (NYSE:GE) CFO Jeff Bornstein will leave at the end of the year caught the market by surprise. But how much should investors really worry about the news? After all, Bornstein is an industry veteran with 28 years of service to GE, so his departure could be a completely natural move.  
However, I happen to think his departure could be something deserving close attention from investors. Here's why.

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