TDW: Income Statement Analysis for the September 2009 Quarter

Tidewater (NYSE: TDW) earned $1.90 per share in the second quarter of fiscal 2010, which ended 30 September 2009, up from $1.85 in the same quarter of last year.  The recent quarter included a $34.4 million favorable resolution to tax litigation; earnings would have been $0.66 less, or a disappointing $1.24, without the tax benefit.

This post examines the Income Statement in the earnings announcement and the accompanying 10-Q and compares the entries for the quarter to our "look-ahead" estimates.  Our target for Tidewater's Net Income in the latest quarter was $1.56 per share.

In a second article, we will report Tidewater's scores as measured by the GCFR financial gauges. The follow-up post will also provide the latest figures for the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.

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PG: Income Statement Analysis for the September 2009 Quarter

Procter & Gamble (NYSE: PG) surpassed expectations by earning $1.06 per diluted share in the three months that ended 30 September 2009, which was the first quarter of fiscal 2010.  Net income was $1.03 per share in the same quarter last year.

This post examines the Income Statement in the earnings announcement and the accompanying 10-Q, and it compares the entries on each line to our "look-ahead" estimates.

In a second article, we will report P&G's scores as measured by the GCFR financial gauges.  The follow-up post will provide the latest figures for the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.

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COP: Income Statement Analysis for the September 2009 Quarter

ConocoPhillips (NYSE: COP) earned $1.00 per share during the third quarter of 2009, down sharply from $3.40 in the same period of 2008.  The latest results surpassed the expectations of many analysts, but we were disappointed.  Our target for Conoco's Net Income in the latest quarter was $1.17 per share.

Since the shares fell almost 3 percent in value after the results were released, other investors must also have thought Conoco's earnings would be higher.

This post examines the Income Statement for the quarter in the earnings announcement, and it compares the entries on each line to our "look-ahead" estimates.  We've also garnered some insights from the conference call transcript made available by Seeking Alpha.

In a second article, we will report Conoco's scores as measured by the GCFR financial gauges. The follow-up post will also provide the latest figures for the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.

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BP: Financial Gauge Analysis through the September 2009 Quarter

In a previous article, we examined BP's (NYSE: BP and LON:BP) Income Statement for the September quarter and compared the figures on each line to our "look-ahead" estimates.  Earnings in the third quarter fell from $2.58 per ADR to $1.69.

Using the financial statements in BP's earnings announcement, we have now updated a set of Cash Management, Growth, Profitability and Value metrics.  This post reports on the metrics and the associated financial gauge scores.

Some background information about BP and the business environment in which it is currently operating can be found in the beginning of our look-ahead.  BP prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as adopted for use by the European Union.  Reports prior to 2006 complied with UK Generally Accepted Accounting Principles. 

In summary, BP's latest quarterly results has produced the following changes to the gauge scores:

• Cash Management: 6 of 25 (down from 10 in June)
  
• Growth: 0 of 25 (down from 3)
  
• Profitability: 4 of 25 (down from 5)
  
• Value: 4 of 25 (down from 10)
  

• Overall: 16 of 100 (down from 31)
  

The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.

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BP: Income Statement Analysis for the September 2009 Quarter

BP (NYSE: BP) surpassed expectations by achieving a $1.69 per ADR profit attributable to shareholders in the third quarter of 2009, which ended 30 September.  The profit in the same period last year was $2.58/ADR.

This post examines the Group Income Statement for the quarter in the earnings announcement, and it compares the entries on each line to our "look-ahead" estimates.   Our target for BP's Net Income in the quarter was $1.31 per share.

In a second article, we will report BP's scores as measured by the GCFR financial gauges. The follow-up post will also provide the latest figures for the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.

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MSFT: Financial Gauge Analysis for the September 2009 Quarter

In a previous article, we examined Microsoft's (NASDAQ: MSFT) Income Statement for the September quarter and compared the figures on each line to our "look-ahead" estimates.  Earnings fell from $0.48 per share to $0.40 in this first quarter of fiscal 2010 but greatly surpassed expectations.

Using the financial statements in Microsoft's 10-Q, we have now updated a set of Cash Management, Growth, Profitability and Value metrics.  This post reports on the metrics and the associated financial gauge scores.

Some background information about Microsoft and the business environment in which it is currently operating can be found in the beginning of our look-ahead.  Windows 7 became available on 22 October.

In summary, Microsoft's latest quarterly results has produced the following changes to the gauge scores:

• Cash Management: 21 of 25 (unchanged from June)
  
• Growth: 5 of 25 (up from 1)
• Profitability: 13 of 25 (up from 12)
• Value: 14 of 25 (down from 18)

• Overall: 57 of 100 (down from 61)

The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.

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MSFT: Income Statement Analysis for the September 2009 Quarter

Microsoft (NASDAQ: MSFT) greatly surpassed estimates by earning $0.40 per share in the three months that ended on 30 September 2009, which was the first quarter of fiscal 2010.  Net income was $0.48 per share in the same quarter last year.

Windows 7, which replaces the disappointing Windows Vista, became available one day before the release of earnings for the September quarter.  Many are wondering if the new operating system will trigger a new cycle of personal computer sales.

This post examines the Income Statement in the earnings announcement and the accompanying 10-Q, and it compares the entries on each line to our "look-ahead" estimates.

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AAPL: Financial Gauge Analysis for the September 2009 Quarter

In a previous article, we examined Apple's (NASDAQ: AAPL) Income Statement for the quarter that ended 26 September, which was the fourth quarter of fiscal 2009.  Apple's quarterly earnings increased from $1.26 to $1.82 per diluted share. 

Using the financial statements in Apple's earnings announcement, we have now updated a set of Cash Management, Growth, Profitability and Value metrics.  This post reports on the metrics and the associated financial gauge scores.

In summary, Apple's latest quarterly results has produced the following changes to the gauge scores:

• Cash Management: 13 of 25 (unchanged from June)
• Growth: 8 of 25 (down from 10)
• Profitability: 12 of 25 (down from 13)
• Value: 8 of 25 (down from 11)

• Overall: 41 of 100 (down from 48)

We were certainly surprised that the scores fell after a clearly spectacular quarter.  The reasons why are discussed below with the financial metrics that determine the gauge scores.

If necessary, we will adjust the gauge scores after Apple files a 10-K report with the SEC.

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AAPL: Income Statement Analysis for the September 2009 Quarter

Apple (NASDAQ: AAPL) earned $1.82 per diluted share in the quarter that ended 26 September, which was the fourth quarter of Apple's fiscal 2009.  This result far surpassed the $1.26 earned last year and recent estimates of $1.42 to $1.44. 

This post examines the Income Statement for the quarter and compares the entries on each line with guidance provided by Apple after the June quarter.  We did not write a look-ahead post prior to the release of the earnings announcement.

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NOK: Financial Gauge Analysis for the September 2009 Quarter

In previous article, we examined Nokia's (NYSE: NOK) Income Statement for the third quarter of 2009 and compared the figures on each line to our "look-ahead" estimates.  Nokia wrote off €900 million of intangible assets during the quarter, which resulted in a loss of €0.15 per share.

Using the financial statements in Nokia's earnings announcement [pdf], we have now updated a set of Cash Management, Growth, Profitability and Value metrics.  This post reports on the metrics and the associated financial gauge scores.

Some background information about Nokia and the business environment in which it is currently operating can be found in the beginning of our look-ahead.  We can update this description with news that the U.S. International Trade Commission on 16 October affirmed an earlier decision that "Nokia products do not infringe InterDigital's [NASDAQ: IDCC] patents."  Coincidentally, on the same day, Nokia announced that its Chief Financial Officer will take over management of the company's Mobile Phones division and the current global sales boss will switch to the CFO position.

We recommend this recent article in the NY Times on what Nokia is doing to improve its weak sales in the U.S.

Getting back to the business at hand, Nokia's latest quarterly results has produced the following changes to the gauge scores:

• Cash Management: 7 of 25 (up from 4 in June)
  
• Growth: 0 of 25 (down from 1)
• Profitability: 4 of 25 (down from 10)
• Value: 7 of 25 (down from 9)

• Overall: 23 of 100 (down from 29)

U.S. readers should be aware that the Euro (€) is the currency used in Nokia's financial statements, which are prepared in accordance with International Financial Reporting Standards (IFRS).  Also, Nokia isn't required to file 10-Q and 10-K reports with the SEC.

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INTC: Financial Gauge Analysis for the September 2009 Quarter

In a previous article, we examined Intel Corporation's (NASDAQ: INTC) Income Statement for the third quarter of 2009 and compared the figures on each line to our "look-ahead" estimates.  Intel earned $0.33 per share in the quarter, down from $0.35 last year.

Using the financial statements in Intel's earnings announcement, we have now updated a set of Cash Management, Growth, Profitability and Value metrics.  This post reports on the results and the associated financial gauge scores. 

Some background information about Intel and the business environment in which it is currently operating can be found in the beginning of the look-ahead.

In summary, Intel's latest quarterly results has produced the following changes to the gauge scores:

• Cash Management: 13 of 25 (unchanged from June)
  
• Growth: 1 of 25 (up from 0)
• Profitability: 11 of 25 (up from 10)
• Value: 0 of 25 (down from 3)

• Overall: 24 of 100 (down from 27)

Because the press release did not include a complete Cash Flow statement, we had to estimate certain values.  We will adjust the gauge scores after Intel files a 10-Q report with the SEC.

The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.

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NOK: Income Statement Analysis for the September 2009 Quarter

Nokia Corp. (NYSE: NOK) lost €0.15 per share in the third quarter of 2009, down from earnings of €0.29 last year.  If Nokia had not written off €900 million of intangible assets, the company would have earned €0.17 per share.

This post examines the Income Statement and compares the entries on each line to our "look-ahead" estimates.   The earnings announcement [pdf] was our principal source for this analysis.

In a second article, we will report Nokia's scores as measured by the GCFR financial gauges.  The follow-up post will also provide the latest figures for the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.

Some background information about Nokia and the business environment in which it is currently operating can be found in the beginning of the look-ahead.

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INTC: Income Statement Analysis for the September 2009 Quarter

Intel Corporation (NASDAQ: INTC) earned $0.33 per share in the third quarter of 2009, compared to Net Income of $0.35 last year and our overly pessimistic target of $0.27.  This post examines the Income Statement for the quarter, and it compares the entries on each line to our "look-ahead" estimates. 

In a second article, we will report Intel's scores as measured by the GCFR financial gauges.  The follow-up post will provide the latest figures for the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.

Some background information about Intel and the business environment in which it is currently operating can be found in the beginning of the look-ahead.

Our principal sources for the income statement analysis were the earnings announcement, the CFO's commentary [pdf], and the Seeking Alpha conference call transcript.

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PEP: Financial Gauge Analysis for the September 2009 Quarter

In a previous article, we examined PepsiCo's (NYSE: PEP) Income Statement for the 12 weeks that ended 5 September 2009, and we compared the figures on each line to our "look-ahead" estimates.  PepsiCo's GAAP earnings increased from $0.99 to $1.09 per diluted share in the third quarter of the fiscal year. 

We have since analyzed the financial statements in PepsiCo's 10-Q for the quarter to update the metrics we use to assess Cash Management, Growth, Profitability and Value.  This post reports on these metrics and the associated financial gauge scores. 

Some background information about PepsiCo and the business environment in which it is currently operating can be found in the beginning of our look-ahead.

In summary, PepsiCo's latest GCFR gauge scores are as follows:

• Cash Management: 15 of 25 (up from 12 in June)
  
• Growth: 4 of 25 (up from 1)
• Profitability: 14 of 25 (up from 11)
• Value: 12 of 25 (down from 14)

• Overall: 50 of 100 (up from 44)

The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.

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HD: Look Ahead to October 2009 Quarterly Results

The GCFR Overall Gauge of Home Depot (NYSE: HD) inched up from 27 to 29 of the 100 possible points in early August, when the second quarter ended.  Our income statement, financial gauge, and gauge update analyses explained in some detail how the score was attained.

Home Depot earned $0.66 per share in the second quarter, down from $0.71 in the comparable period last year.  Revenue was 9.1 percent lower; sales to professional contractors were especially weak.  More encouragingly, the company claimed "total customer transactions were positive for the first time in two years" and "We also had the largest gain in total market share that we have seen in five years."


We have now modeled Home Depot's Income Statement for the quarter that will end on 1 November 2009.  The intent of this exercise was to produce a baseline for identifying deviations, positive or negative, in the actual data that the company is scheduled to announce on 17 November 2009.  GCFR estimates are derived from trends in the historical financial results and guidance provided by company management.

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PEP: Income Statement Analysis for the September 2009 Quarter

PepsiCo, Inc., (NYSE: PEP) earned $1.09 per share in the 12 weeks that ended 5 September, up from $0.99 last year.  This post examines the Income Statement and compares the figures on it to our "look-ahead" estimates.


In a second article, we will report PepsiCo's scores as measured by the GCFR Financial Gauges.  The follow-up post will also provide the latest figures for the financial metrics we use to analyze Cash Management, Growth, Profitability and Value.

Our principal sources were the earnings announcement, the 10-Q for the quarter, and the Seeking Alpha conference call transcript.  Some background information about PepsiCo and the business environment in which it is currently operating can be found in the look-ahead.

The company reported it is "on-track with its plans to acquire" Pepsi Bottling Group, Inc. (NYSE: PBG) and PepsiAmericas, Inc., (NYSE: PAS).  The proposed transactions are expected to close later this year or early in 2010.   Eric J. Foss, PBG's Chairman and CEO, will become CEO of the new PepsiCo Bottling North America (PBNA).

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WMT: Look Ahead to October 2009 Quarterly Results

The GCFR Overall Gauge of Wal-Mart (NYSE: WMT) fell from 36 to 29 of the 100 possible points in July when the second quarter of fiscal 2010 ended.  Our income statement, financial gauge, and gauge update analyses explained in some detail how the score was attained.

Walmart earned $0.88 per share in the July quarter.  Although Net Income did not change significantly from the comparable period last year, earnings per share increased by $0.01 because fewer shares were outstanding.

Sales at the company's eponymous U.S. stores increased just slightly, 0.3 percent, relative to the second quarter of last year.  Same-store sales fell 1.5 percent.  Reported Revenue at international stores declined 5.1 percent, but Revenue at these stores increased 11.5 percent on a constant currency basis.  Sam's Club sales slipped 3.2 percent.

We have now modeled Wal-Mart's Income Statement for the quarter that will end on 31 October 2009.  The intent of this exercise was to produce a baseline for identifying deviations, positive or negative, in the actual data that the company is scheduled to announce on 12 November 2009.  GCFR estimates are derived from trends in the historical financial results and guidance provided by company management.

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EIX: Look Ahead to September 2009 Quarterly Results

The GCFR Overall Gauge of Edison International (NYSE: EIX) fell from 34 to 28 points in the June quarter.  Our income statement and financial gauge analyses explained how the score was attained in some detail. 

In the second quarter, Edison lost $0.05 per share, compared to income of $0.79 per share in the same period last year.  However, on a non-GAAP, "Core" basis, earnings slipped merely to $0.78 per share.  Core results excluded a $262 million "charge from finalizing a global settlement with the Internal Revenue Service in May 2009 and the related termination of cross-border, leveraged leases."

Lower energy prices, especially for natural gas, cut electric utility revenue and costs.


We have now modeled Edison International's Income Statement for the September 2009 quarter.   The intent of this exercise was to produce a baseline for identifying deviations, positive or negative, in the actual data the company will announce in November.  GCFR estimates are derived from trends in the historical financial results and guidance provided by company management.

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BR: Look Ahead to September Quarterly Results

The GCFR Overall Gauge of Broadridge Financial (NYSE: BR) rebounded from 30 to 52 points in the June quarter, which ended fiscal 2009.  Our income statement and financial gauge analyses explained how the score was attained in some detail. 

Broadridge earned $0.83 per share in the quarter, up from $0.69 last year.  However, Revenue declined 7.1 percent.  An improved Gross Margin and lower operating expenses, partially offset by higher non-operating expenses, enabled Broadridge to beat expectations handily.

The company's relatively short existence as an independent entity has caused its scores to fluctuate widely from quarter to quarter


We have now modeled Broadridge's Income Statement for the September 2009 quarter.  The intent of this exercise was to produce a baseline for identifying deviations, positive or negative, in the actual data that the company will announce in November.  GCFR estimates are derived from trends in the historical financial results and guidance provided by company management.

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