CSCO: Look Ahead to April 2010 Quarterly Results

This post describes our model of Cisco Systems (NASDAQ: CSCO) Income Statement for fiscal 2010's third quarter, which ended on 1 May.   This quarter includes a rare 14th week.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report on 12 May.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

We begin by reviewing background information about Cisco and the business environment in which it is currently operating.

Cisco Systems, Inc. (NASDAQ: CSCO), the proud plumber of the Internet, has a dominant role in markets for enterprise networking products and services.  Cisco categorizes its products as routers, switches, and advanced technologies.

Earnings fell 24 percent in fiscal 2009, which ended last July, from $8.05 billion to $6.13 billion.  Revenue declined 8.7 percent, from $39.5 billion to $36.1 billion.  Services provided 19 percent of total Revenue in 2009.

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COP: Income Statement Analysis for the March 2010 Quarter

ConocoPhillips (NYSE: COP) earned $1.40 per diluted share, on a GAAP basis, in the first quarter of 2010, which ended 31 March.  Earnings per share were 2.6 times the (restated) $0.54 ConocoPhillips made in the March 2009 quarter.

Adjusted earnings per share were $1.47 in the latest quarter.  This figure excludes $110 million of after-tax charges related to ConocoPhillips' withdrawal from the Shah gas project in Abu Dhabi and the Yanbu refinery project in Saudi Arabia.

This post examines ConocoPhillips' Income Statement for the latest quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings fell $0.01 short of the $1.41 per share we had forecast, but the results would have surpassed our estimate if there had not been special charges.

The principal sources for this income statement analysis were the earnings announcement and the conference call presentation [pdf] and transcript -- the latter is 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.


ConocoPhillips is a large Integrated Oil and Gas company with global reach.  Its market capitalization is now approaching $90 billion, and its Revenue was almost $150 billion in 2009.  The company was formed in 2002 when Conoco, Inc., merged with Phillips Petroleum.  Additional background information about ConocoPhillips and the business environment in which it is currently operating can be found in the look-ahead.


Please click here to see a full-sized, normalized depiction of the actual and projected results for the just-concluded quarter, as well as the quarterly Income Statements for the last couple of years.  Please note that our organization of revenues, expenses, gains, and losses, which we use for all analyses, can and often does differ in material respects from company-used formats.  The standardization facilitates cross-company comparisons.
Beginning with the first quarter of 2010, Conoco changed how it accounts for its investment in Lukoil (OTC: LUKOY).  Instead of a quarterly estimate of equity earnings, Conoco now records Lukoil's actual results with a one-quarter lag.  Conoco's financial statements for each quarter in 2009 were revised to conform to the current set of accounting principles, and we have made the necessary adjustments to our spreadsheet.

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PG: Income Statement Analysis for the March 2010 Quarter

Procter & Gamble (NYSE: PG) earned $0.83 per diluted share in the third quarter of fiscal 2010, which ended 31 March.  Earnings per share were $0.01 less than the $0.84 P&G made in the March 2009 quarter. 

Earnings from continuing operations increased from $0.78 to $0.83 per diluted share.  Core EPS, a non-GAAP measure, rose from $0.81 to $0.89.

This post examines P&G's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings fell $0.04 short of the $0.87 per share we had forecast, mainly because of a one-time tax item.

Our principal sources for the income statement analysis were the earnings announcement and the conference call.

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.

Procter & Gamble, which traces its roots back to 1837, sells well-known personal and household products to consumers worldwide from its Cincinnati headquarters.  Additional background information about P&G and the business environment in which it is currently operating can be found in the beginning of the look-ahead. 

Please click here  to see a full-sized, normalized depiction of the actual and projected results for the just-concluded quarter, as well as restated quarterly Income Statements for the last couple of years.  After selling its pharmaceuticals business to Warner Chilcott (NASDAQ: WCRX), P&G restated some historical financial statements to depict the pharmaceutical results as a discontinued operation.

Also note that our organization of revenues, expenses, gains, and losses, which we use for all analyses, can and often does differ in material respects from company-used formats.  The standardization facilitates cross-company comparisons.

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BP: Income Statement Analysis for the March 2010 Quarter

BP (NYSE: BP) earned $1.92 per diluted ADS in the first quarter of 2010, which ended 31 March.  The profit attributable to BP's shareholders more than doubled the $0.81 earned in 2009's first quarter.

This post examines BP's Income Statement for the latest quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings exceeded the $1.58 per share we had forecast by $0.34, about 22 percent.

The principal sources for the income statement analysis were the earnings announcement, the financial statements (parts one and two), and the conference call presentation [pdf].

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.


BP p.l.c., the former British Petroleum, is one of the largest Integrated Oil and Gas firms in the world.  It has a market capitalization over $170 billion, and its Revenue was almost $240 billion in 2009.   Additional background information about BP and the business environment in which it is currently operating can be found in the look-ahead.

Please click here to see a full-sized, normalized depiction of the actual and projected results for the just-concluded quarter, as well as the quarterly Income Statements for the last couple of years.  Please note that our organization of revenues, expenses, gains, and losses, which we use for all analyses, can and often does differ in material respects from company-used formats.  The standardization facilitates cross-company comparisons.

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ADP: Income Statement Analysis for the March 2010 Quarter

Automatic Data Processing (NASDAQ: ADP) earned $0.80 per share in the third quarter of fiscal 2010, which ended 31 March 2010.  Earnings per share were unchanged from the March 2009 quarter.

Earnings from continuing operations were slightly less than the comparable result in the year-earlier quarter, but overall net earnings were a shade higher.

This post examines ADP's Income Statement for the latest quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings exceeded the $0.76 per share we had forecast by $0.04.

The principal sources for the income statement analysis were the earnings announcement, the webcast presentation [pdf], and the transcript (available from Seeking Alpha).

In a second article, we will report ADP'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.


Automatic Data Processing performs payroll, tax, and other personnel-related Business Services for over 500,000 clients, large and small.  ADP pays one of every six private sector employees in the United States.  Additional background information about ADP and the business environment in which it is currently operating can be found in the look-ahead.


Please click here to see a full-sized, normalized depiction of the actual and projected results for the just-concluded quarter, as well as the quarterly Income Statements for the last couple of years.  Please note that our organization of revenues, expenses, gains, and losses, which we use for all analyses, can and often does differ in material respects from company-used formats.  The standardization facilitates cross-company comparisons.

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HD: Look Ahead to April 2010 Quarterly Results

This post describes our model of Home Depot's (NYSE: HD) Income Statement for fiscal 2010's first quarter, which will end on 2 May.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report in mid May.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

We begin by reviewing background information about Home Depot and the business environment in which it is currently operating.


The Home Depot, Inc. (NYSE: HD) is the largest retailer of do-it-yourself merchandise, which includes building materials, home improvement supplies, and lawn and garden products.  It has a market capitalization of about $60 billion.  The company operated 2,244 retail stores at last count, of which 1,976 (88 percent) were in U.S. states or territories.

Home Depot earned nearly $2.7 billion in fiscal 2009, which ended on 31 January 2010, nearly 18 percent more than in 2008.  Revenue slipped 7 percent to $66.2 billion.

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PEP: Income Statement Analysis for the March 2010 Quarter

This post examines PepsiCo's (NYSE: PEP) Income Statement for the 12-week quarter that ended 20 March 2010 and compares the entries on each line to our "look-ahead" estimates. 

The principal sources for this review were the earnings announcement, the formal 10-Q report, and the conference call with analysts (transcript made available by Seeking Alpha).

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 various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.

Because PepsiCo's  acquisition of Pepsi Bottling Group and PepsiAmericas occurred during the March 2010 quarter, the financial statements for this period include numerous special items that affect the comparability of the results. 

On a GAAP basis, PepsiCo earned $0.89 per diluted share in the latest quarter.  GAAP earnings were 23 percent above the $0.72 PepsiCo made in the same quarter of 2009.

"Core" earnings is a non-GAAP measure that provides better insight into the company's fundamental financial performance, especially in an unusual quarter such as the last one.   Core earnings exclude the acquisition-related gains and expenses, inventory valuation adjustments, the effect of Venezuela's currency devaluation, and several other special gains and losses.

In the latest quarter, Core earnings increased from $0.71 to $0.76 per share.  Core earnings exceeded the $0.70 per share we had forecast for the EPS.


Let's take a step back before diving into the Income Statement

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MSFT: Income Statement Analysis for the March 2010 Quarter

Microsoft (NASDAQ: MSFT) earned $0.45 per diluted share in fiscal 2010's third quarter, which ended on 31 March 2010.  Earnings per share were 36 percent greater than the $0.33 Microsoft made in the March 2009 quarter.

This post examines Microsoft's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Our EPS target for the latest quarter was $0.45 per share, which is the figure the company reported.

The principal sources for the income statement analysis were the earnings announcement, the conference call presentation [ppt], and the formal 10-Q report.

In a second article, we will report Microsoft'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.

Microsoft is best known for operating system and application software, but the company also sells video game consoles, music players, and computer peripherals.  Additional background information about Microsoft and the business environment in which it is currently operating can be found in the beginning of the look-ahead.


Please click here to see a full-sized, normalized depiction of the actual and projected results for the just-concluded quarter, as well as the quarterly Income Statements for the last couple of years.  Please note that our organization of revenues, expenses, gains, and losses, which we use for all analyses, can and often does differ in material respects from company-used formats.  The standardization facilitates cross-company comparisons.

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NOK: Income Statement Analysis for the March 2010 Quarter

Nokia Corp. (NYSE: NOK) earned €0.09 per diluted share, as determined in accordance with International Financial Reporting Standards, in the first quarter of 2010, which ended on 31 March.  Earnings by this measure tripled the €0.03 made by Nokia in the same quarter of 2009.

On an non-IFRS basis, Nokia's earnings per share increased from €0.10 to €0.14.  Non-IFRS results exclude special items and accounting expenses such as intangible asset amortization.

This post examines Nokia's Income Statement for the latest quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings fell short of the €0.13 per share we had forecast by €0.04 per share.

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.

Headquartered in Espoo, Finland, Nokia shipped 432 million mobile phones in 2009.  The company's hand-held product line runs the gamut from modest entry-level devices to high-end smartphones.   Nokia also sells network infrastructure.  Additional background information about Nokia and the business environment in which it is currently operating can be found in the beginning of the look-ahead.

Please click here to see a full-sized, normalized depiction of the actual and projected results for the just-concluded quarter, as well as the quarterly Income Statements for the last couple of years.  Please note that our organization of revenues, expenses, gains, and losses, which we use for all analyses, can and often does differ in material respects from company-used formats.  The standardization facilitates cross-company comparisons.

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AAPL: Income Statement Analysis for the March 2010 Quarter

Apple (NASDAQ: AAPL) reported earnings of $3.33 per diluted share in the second quarter of fiscal 2010, which ended on 27 March.  Earnings rose an extraordinary 86 percent above the $1.79 Apple made in the same quarter of 2009.

This post examines Apple's Income Statement for the latest quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings exceeded the $2.36 per share we had forecast by a humbling $0.97.

The principal sources for this review were the earnings announcement and the conference call with analysts (transcript made available by Seeking Alpha).

In a second article, we will report Apple'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.


Apple Inc. has been recognized by Fortune as the world's most admired company for the last three years.  The company is known for elegant product design, innovation, customer loyalty, secrecy, and the cult-like status afforded CEO (and savior) Steve Jobs.  Additional background information about Apple and the business environment in which it is currently operating can be found in the beginning of the look-ahead.

In fiscal 2010, Apple changed from subscription accounting of iPhone™ (and the less important Apple TV) sales that required revenues and costs to be spread over each delivered item's estimated two-year economic life.  The company now, in compliance with the latest standards issued by the Financial Accounting Standards Board, recognizes "substantially all" revenue and costs when a product is sold to a consumer.  Apple has restated earlier results to conform to current accounting principles. 

Please click here to see a full-sized, normalized depiction of the actual results for the just-concluded quarter, as well as the restated quarterly Income Statements for the last couple of years.  Please note that our organization of revenues, expenses, gains, and losses, which we use for all analyses, can and often does differ in material respects from company-used formats.  The standardization facilitates cross-company comparisons.

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WMT: Look Ahead to April 2010 Quarterly Results

This post describes our model of Wal-Mart's (NYSE: WMT) Income Statement for fiscal 2011's first quarter, which will end on 30 April.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

We begin by reviewing background information about Walmart and the business environment in which it is currently operating.

A retailing behemoth, Wal-Mart Stores, Inc., earned over $14 billion on net sales of $405 billion in the fiscal year that concluded last January.  The Revenue figure enabled Walmart to regain from Exxon Mobil (NYSE: XOM) the top position on the Fortune 500 list of America's largest corporations. 

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NVDA: Look Ahead to April 2010 Quarterly Results

This post describes our model of NVIDIA's (NASDAQ: NVDA) Income Statement for the first quarter of fiscal 2011, which will end on 2 May.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

We begin by reviewing background information about NVIDIA and the business environment in which it is currently operating.

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INTC: Income Statement Analysis for the March 2010 Quarter

Intel Corporation (NASDAQ: INTC) earned $0.43 per diluted share in the first quarter of fiscal 2010, which ended on 27 March.  Earnings per share were nearly four times the $0.11 Intel made in the first quarter of 2009.

The EPS on a non-GAAP basis was also $0.43.

This post examines Intel's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Our EPS target was $0.39 per share, $0.04 less than the reported and non-GAAP amounts.

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

In a second article, we will report Intel'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.


Intel is the foremost manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products   Additional background information about Intel and the business environment in which it is currently operating can be found in the look-ahead.

Please click here to see a full-sized, normalized depiction of the actual and projected results for the just-concluded quarter, as well as the quarterly Income Statements for the last couple of years.  Please note that our organization of revenues, expenses, gains, and losses, which we use for all analyses, can and often does differ in material respects from company-used formats.  The standardization facilitates cross-company comparisons.

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EIX: Look Ahead to March 2010 Quarterly Results

This post describes our model of Edison International's (NYSE: EIX) Income Statement for the first quarter of 2010, which ended on 31 March.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report on 7 May.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

We begin by reviewing background information about Edison and the business environment in which it is currently operating.

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AAPL: Look Ahead to March 2010 Quarterly Results

This post describes our model of Apple's (NASDAQ: AAPL) Income Statement for the second quarter of fiscal 2010, which ended on 27 March.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report on 20 April 2010.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

There are an extraordinary number of analysts, both amateurs and professionals, that dig into every aspect of Apple's product line and its finances.  For this post, we have tapped into many information sources and synthesized the information as best we could. Readers won't have any difficulty finding more authoritative information about Apple.

We begin by reviewing background information about Apple and the business environment in which it is currently operating.

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WPI: Look Ahead to March 2010 Quarterly Results

This post describes our model of Watson Pharmaceuticals' (NYSE: WPI) Income Statement for the first quarter of 2010, which ended on 31 March.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

We begin by reviewing background information about Watson and the business environment in which it is currently operating.

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KG: Look Ahead to March 2009 Quarterly Results

This post describes our model of King Pharmaceuticals' (NYSE: KG) Income Statement for the first quarter of 2010, which ended on 31 March.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

We begin by reviewing background information about King and the business environment in which it is currently operating.

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BR: Look Ahead to March 2010 Quarterly Results

This post describes our model of Broadridge Financial's (NYSE: BR) Income Statement for the third quarter of fiscal 2010, which ended on 31 March 2010.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

We begin by reviewing background information about Broadridge and the business environment in which it is currently operating.

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ADP: Look Ahead to March 2010 Quarterly Results

This post describes our model of Automatic Data Processing's (NASDAQ: ADP) Income Statement for the third quarter of fiscal 2010, which ended on 31 March 2010.

The purpose of the model is to establish a baseline for identifying surprises, positive or negative, in the quarterly results the company will report.  Estimates for each line of the Income Statement are derived from management's guidance, the company's historical financial results, and other publicly available data.

We begin by reviewing background information about ADP and the business environment in which it is currently operating.

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