CSCO: Financial Gauge Analysis for the April 2010 Quarter

Cisco Systems (NASDAQ: CSCO) earned $0.37 per diluted share on a GAAP basis in fiscal 2010's 14-week third quarter, which ended on 1 May 2010.  Reported earnings were 61 percent more than the $0.23 per share Cisco earned in the comparable 13-week quarter of 2009.

The latest quarter included a one-time $158 million ($0.03 per share) tax benefit.  Non-GAAP earnings, which exclude tax and various other special items, rose from $0.30 to $0.42 per share.

In our earlier review of Cisco's Income Statement, we compared the actual results to our "look-ahead" estimates.  Reported earnings were $0.02 better than the $0.35 per share we had forecast. 

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value for Cisco Systems.  This post reports on the metrics and the associated financial gauge scores.  The metrics were calculated using data from Cisco's current and historical financial statements, including the latest 10-Q report.


Cisco Systems, Inc. (NASDAQ: CSCO), the proud plumber of the Internet, has a dominant role in markets for enterprise networking products (routers, switches, and advanced technologies) and services.  Additional background information about Cisco can be found in the look-ahead.

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

• Cash Management: 6 of 25 (down from 9 in January)
• Growth: 2 of 25 (up from 0)
• Profitability: 12 of 25 (unchanged)
• Value: 0 of 25 (down from 1)

• Overall: 20 of 100 (down from 23)

Current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.  Readers are encouraged to verify these figures and calculate others as they see fit using the filings available at the SEC's web site and elsewhere.

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BR: Financial Gauge Analysis for the March 2010 Quarter

Broadridge Financial (NYSE: BR) earned $0.18 per share on a GAAP basis in fiscal 2010's third quarter, which ended 31 March.  Reported earnings were 38 percent less than the $0.29 per share Broadridge earned in the same quarter of 2009.

Earnings from continuing operations fell from $0.29 per share to $0.22 in the latest quarter. 

In our earlier review of Broadridge's Income Statement, we compared the actual results to our "look-ahead" estimates.

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.  This post reports on the metrics for Broadridge and the associated financial gauge scores.  The metrics were calculated using data from Broadridge's current and historical financial statements, including the latest 10-Q report.


Broadridge Financial Solutions, Inc., provides brokerage and other services to financial companies.  The Investor Communication Solutions business, which distributes and processes proxies for public companies and mutual funds, contributed more than 70 percent of Broadridge's revenue and pre-tax earnings in fiscal 2009.  Broadridge's Securities Processing business in fiscal 2009 "processed on average over 1.6 million equity trades and over $3 trillion in trades of United States (U.S.) fixed income securities per day."  Additional background information about Broadridge and the business environment in which it is currently operating can be found in the look-ahead.


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

• Cash Management: 8 of 25 (unchanged from December)
• Growth: 18 of 25 (up from 12)
• Profitability: 16 of 25 (unchanged)
• Value: 0 of 25 (down from 1)

• Overall: 32 of 100 (unchanged)

Broadridge's relatively short existence as an independent entity, plus the ongoing turmoil in the financial industry, has caused its scores to vary more from quarter to quarter than most other companies.  Automatic Data Processing, Inc. (NASDAQ: ADP) spun off Broadridge on 30 March 2007. 

The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.  Readers are encouraged to verify these figures and calculate others as they see fit using the filings available at the SEC's web site and elsewhere.

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PRGN: Financial Gauge Analysis for the March 2010 Quarter

Paragon Shipping, Inc., (NYSE: PRGN) earned $0.185 per share on a GAAP basis in 2010's first quarter, which ended on 31 March 2010.  Reported earnings per share were 74 percent less than the $0.71 Paragon made in 2009's first quarter. 

Adjusted Net Income, which excludes various non-cash items, fell from $0.54 per share to $0.16.  An 83-percent increase in the weighted average number of diluted Class A common shares steepened the per-share declines.

We previously reviewed Paragon's Income Statement for the quarter in some detail.

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.  This post reports on the metrics for Paragon Shipping, which were calculated using data from Paragon's current and historical financial statements, including the latest formal submission for the March 2010 quarter.

Paragon does not have a long enough financial record for us to calculate meaningful financial gauge scores.

Paragon Shipping owns and charters ships that carry dry bulk cargoes.  The company is headquartered in Greece and has been operating since December 2006.  Paragon generally seeks to secure one-to-five year, fixed-rate charters for its vessels; this strategy dampens the effect of industry volatility on the company.  In 2010, charter arrangements have been made for all vessels throughout the year.

The Baltic Dry index of shipping rates, shown in the diagram below from StockCharts.com, plunged in 2009.  The index has been slowly recovering, with a few fits and starts, during the last 18 months.

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EIX: Financial Gauge Analysis for the March 2010 Quarter

Edison International (NYSE: EIX) earned $0.72 per share on a GAAP basis in 2010's first quarter, which ended on 31 March 2010.  Reported earnings were $0.04 less per share than the $0.76 Edison made in the same quarter of 2009.  Excluding special items, Edison's "Core" earnings, a non-GAAP measure, rose from $0.79 to $0.82 per share.

In our earlier review of Edison's Income Statement, we compared the actual results to our "look-ahead" estimates. 

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.  This post reports on the metrics for Edison and the associated financial gauge scores.  The metrics were calculated using data from Edison's current and historical financial statements, including the latest 10-Q report.


Edison International owns Southern California Edison and Edison Mission Group.  SCE is a regulated utility that generates and acquires electricity and delivers it to customers in parts of Southern California.  Edison Mission Energy owns, or has interests in, various independent power-generation facilities.  Additional background information about Edison International and the business environment in which it is now operating can be found in the look-ahead.

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

• Cash Management: 12 of 25 (up from 3 in December)
• Growth: 5 of 25 (unchanged)
• Profitability: 2 of 25 (down from 5)
• Value: 5 of 25 (down from 7)

• Overall: 24 of 100 (up from 21)

The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.  Readers are encouraged to verify these figures and calculate others as they see fit using the filings available at the SEC's web site and elsewhere.

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WPI: Financial Gauge Analysis for the March 2010 Quarter

Watson Pharmaceuticals, Inc. (NYSE: WPI) earned $0.57 per share on a GAAP basis in 2010's first quarter, which ended 31 March.  Reported earnings were 36 percent more than the $0.42 per share Watson made in the same quarter of 2009.

Adjusted earnings, which exclude certain non-cash items, increased from $0.69 to $0.81 per share.

In our earlier review of Watson's Income Statement, we compared the actual results to our "look-ahead" estimates.

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.  This post reports on the metrics for Watson Pharmaceuticals and the associated financial gauge scores.  The metrics were calculated using data from Watson's current and historical financial statements, including the latest 10-Q report.


Watson Pharmaceuticals develops, manufactures, and sells generic and, to a lesser extent, branded pharmaceutical products.  Additional background information about Watson and the business environment in which it is currently operating can be found in the look-ahead.

Watson completed its acquisition of Arrow Group on 2 December 2009 for about $1.75 billion in cash and stock. 

After a big corporate deal, it is important to keep in mind that a company's financial metrics can change considerably.  A transaction can lead to immediate accounting gains/losses plus restructuring and refinancing activities that span several quarters or longer.  Assets acquired might be quickly divested, either to raise cash or because they don't fit into the new organization.  Customers relationships might be affected. 

For these and other reasons, extra caution has to be taken when evaluating a company after a deal.  Comparing current data with historical results, which is a key part of the GCFR process, might produce misleading results.  It is often a good idea to "let the dust settle" before drawing any conclusions.

With this important caveat, Watson's latest quarterly results produced the following changes to the gauge scores:

• Cash Management: 6 of 25 (up from 5 in December)
• Growth: 6 of 25 (up from 5)
• Profitability: 4 of 25 (unchanged)
• Value: 1 of 25 (down from 2)

• Overall: 14 of 100 (unchanged)

The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.  Readers are encouraged to verify these figures and calculate others as they see fit using the filings available at the SEC's web site and elsewhere.

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KG: Financial Gauge Analysis for the March 2010 Quarter

King Pharmaceuticals, Inc. (NYSE: KG) earned $0.02 per diluted share on a GAAP basis in 2010's first quarter, a result which improved on a loss of $0.04 per share in the same quarter of 2009.  Non-GAAP "adjusted" earnings fell from $0.26 to $0.14 per share.

In our earlier review of King's Income Statement, we compared the actual results to our "look-ahead" estimates.

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.  This post reports on the metrics for King Pharmaceuticals and the associated financial gauge scores.  The metrics were calculated using data from King's current and historical financial statements, including the latest 10-Q report.

King Pharmaceuticals develops and sells various brand-name prescription pharmaceuticals and other products.  In a $1.6 billion deal completed in December 2008, King obtained new pain-relief medicines and animal-health products by acquiring Alpharma.  Additional background information about King and the business environment in which it is currently operating can be found in the look-ahead.

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

• Cash Management: 14 of 25 (up from 7 in December)
• Growth: 15 of 25 (up from 14)
• Profitability: 8 of 25 (up from 7)
• Value: 0 of 25 (unchanged)

• Overall: 27 of 100 (up from 21)

 The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.  Readers are encouraged to verify these figures and calculate others as they see fit using the filings available at the SEC's web site and elsewhere.

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TDW: Income Statement Analysis for the March 2010 Quarter

Tidewater (NYSE: TDW) earned $1.10 per diluted share on a GAAP basis in fiscal 2010's fourth quarter.  Earnings were 48 percent less than the $2.13 per share Tidewater made in the same quarter of 2009.

Special items added about $0.06 per share to earnings in the quarter, which ended 31 March 2010.

This post examines Tidewater's Income Statement for the latest quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were, as luck would have it, only $0.02 more than the $1.08 per share we had forecast.

The principal sources for this income statement analysis were the earnings announcement, the conference call, and the formal 10-K report.

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.


Tidewater owns the world's largest fleet of vessels serving the global offshore energy industry.  Headquartered in New Orleans for more than 50 years, Tidewater first serviced drillers in the Gulf of Mexico.  Additional background information about Tidewater and the business environment in which it is currently operating can be found in the look-ahead.

A Tidewater supply vessel, the Damon B. Bankston, was tethered to the Deepwater Horizon oil rig that exploded in April.  A story by Paul Purpura in the Times-Picayune describes the heroic actions of the Bankston's captain and crew in the first moments after the disaster to save the lives of rig workers.

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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COP: Financial Gauge Analysis for the March 2010 Quarter

ConocoPhillips (NYSE: COP) earned $1.40 per diluted share on a GAAP basis in 2010's first quarter, which ended 31 March.  Conoco's latest EPS was 2.6 times the $0.54 it made in the same quarter of 2009.

In our earlier review of Conoco's Income Statement, we compared the actual results to our "look-ahead" estimates.

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.  This post reports on the metrics for ConocoPhillips and the associated financial gauge scores.  The metrics were calculated using data from Conoco's current and historical financial statements, including the latest 10-Q report.


ConocoPhillips is a large Integrated Oil and Gas company with global reach.  Its market capitalization is over $80 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.

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

• Cash Management: 14 of 25 (unchanged from December)
• Growth: 4 of 25 (up from 3)
• Profitability: 4 of 25 (up from 2)
• Value: 2 of 25 (up from 1)

• Overall: 21 of 100 (up from 16)

The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.  Readers are encouraged to verify these figures and calculate others as they see fit using the filings available at the SEC's web site and elsewhere.

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HD: Income Statement Analysis for the April 2010 Quarter

The Home Depot, Inc. (NYSE: HD) earned $0.43 per diluted share on a GAAP basis in fiscal 2010's first quarter, which ended on 2 May 2010.  Home Depot's latest EPS was 41 percent more than the $0.30 it made in the same quarter last year.

On a non-GAAP "adjusted" basis, earnings increased from $0.35 to $0.45 per share, 29 percent.  The non-GAAP numbers exclude store closing charges, business termination expenses, restructuring costs, and the results of discontinued operations.

This post examines Home Depot's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were $0.04 better than the $0.39 per share we had forecast.

The principal sources for this income statement analysis were the earnings announcement and the ensuing conference call (transcript available from Seeking Alpha).

In a second article, we will report Home Depot'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.


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.  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 competes with Lowe's (NYSE: LOW), cooperatives such as Ace and True Value, and a multitude of smaller hardware stores.  Additional background information about Home Depot 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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WMT: Income Statement Analysis for the April 2010 Quarter

Wal-Mart Stores (NYSE: WMT) earned $0.88 per diluted share on a GAAP basis in fiscal 2011's first quarter, which ended on 30 April 2010.  Walmart's latest EPS was 14 percent more than the $0.77 it made in the same quarter last year.

This post examines Walmart's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were $0.02 better than the $0.86 per share we had forecast.

The principal sources for this income statement analysis were the earnings announcement and the transcript [pdf] of management's audio review of the quarter.

In a second article, we will report Walmart'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.

A retailing behemoth, Wal-Mart Stores, Inc., earned $14 billion on net sales greater than $400 billion in the fiscal year that concluded January 2010.  Walmart regained from Exxon Mobil (NYSE: XOM) the top position on the Fortune 500 list of America's largest corporations.    Additional background information about Walmart 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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PG: Financial Gauge Analysis for the March 2010 Quarter

Procter & Gamble (NYSE: PG) earned $0.83 per diluted share in fiscal 2010's third quarter, which ended 31 March.  P&G made $0.01 less per share than it earned in the March 2009 quarter.  Core earnings, more favorably, shot up from $0.81 per share to $0.89.

In our earlier review of P&G's Income Statement, we compared the actual results to our "look-ahead" estimates.

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.  This post reports on the metrics for P&G and the associated financial gauge scores.  The metrics were calculated using data from P&G's current and historical financial statements, including the latest 10-Q report.

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


In summary, P&G's latest quarterly results produced the following changes to the gauge scores:

• Cash Management: 15 of 25 (unchanged from December)
• Growth: 7 of 25 (up from 6)
• Profitability: 13 of 25 (up from 11)
• Value: 12 of 25 (down from 14)

• Overall: 49 of 100 (unchanged)

The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.  Readers are encouraged to verify these figures and calculate others as they see fit using the filings available at the SEC's web site and elsewhere.

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.  We used the latest numbers when computing the financial metrics listed below.

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BP: Financial Gauge Analysis for the (Pre-Disaster) March 2010 Quarter

The drilling rig explosion and oil spill in the Gulf of Mexico on 20 April 2010, which brought tragic loss of life and the potential for horrific environmental damage, overshadows everything else about BP (NYSE: BP). 

The focus for the foreseeable future is going to be stopping the flow of oil, cleaning up the damage it has caused, and mitigating the harmful effects to people and wildlife in the area.

A backward-looking snapshot of BP's financial data ratios might not seem relevant.  And, maybe it isn't.  However, we decided to go ahead and post this article because data on BP's pre-disaster finances might help put the damage costs (once they are better quantified) in context and be a starting point for assessing the value of the company going forward.


In our earlier review of BP's latest Income Statement, we compared the actual results to our "look-ahead" estimates.   BP earned $6.1 billion ($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 $2.6 billion ($0.81/ADS) earned in 2009's first quarter.

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.  This post reports on the metrics for BP and the associated financial gauge scores.  The metrics were calculated using data from BP's financial statements, both recent (but pre-disaster) and historical.

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

• Cash Management: 7 of 25 (unchanged from December)
• Growth: 7 of 25 (up from 1)
• Profitability: 8 of 25 (up from 4)
• Value: 9 of 25 (up from 4)

• Overall: 33 of 100 (up from 17)

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

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ADP: Financial Gauge Analysis for the March 2010 Quarter

Automatic Data Processing (NASDAQ: ADP) earned $0.80 per share in the fiscal 2010's third quarter, which ended 31 March 2010.  ADP made the same amount in the third quarter of 2009.

In our earlier review of ADP's Income Statement, we compared the actual results to our "look-ahead" estimates.

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.  This post reports on the metrics for ADP and the associated financial gauge scores.  The metrics were calculated using data from ADP's current and historical financial statements, including the latest 10-Q report.


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.

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

• Cash Management: 10 of 25 (unchanged from December)
• Growth: 7 of 25 (up from 5)
• Profitability: 15 of 25 (down from 17)
• Value: 4 of 25 (down from 7) [8 of 25 using the latest share price]

• Overall: 36 of 100 (down from 43)

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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PEP: Financial Gauge Analysis for the March 2010 Quarter

PepsiCo (NYSE: PEP) earned $0.89 per diluted share on a GAAP basis in the 12-week quarter that ended 20 March 2010.  PepsiCo made $0.17 more per share, 23 percent, than the $0.72 it earned in the March 2009 quarter.

Because PepsiCo's $7.8 billion acquisitions of Pepsi Bottling Group and PepsiAmericas occurred during the latest quarter, the financial statements for this period include many special items that affect the comparability of the results.  Core earnings, which exclude acquisition and other unusual gains and expenses, increased from $0.71 to $0.76 per share.


PepsiCo, Inc., is a leading global purveyor of beverages and snacks.  Additional background information about PepsiCo and the business environment in which it is currently operating can be found in the beginning of the look-ahead.


In our earlier review of PepsiCo's Income Statement, we compared the actual results to our "look-ahead" estimates. 

We have now updated the various financial metrics we use to analyze Cash Management, Growth, Profitability and Value.  This post reports on the metrics for PepsiCo and the associated financial gauge scores.  The metrics were calculated using data from PepsiCo's current and historical financial statements, including the latest 10-Q report.

After a major corporate reshaping, such as PepsiCo's bottler acquisitions, the gauge scores can be erratic and possibly misleading for several quarters or longer.  Caution (and patience) is warranted.  Until the transformed company establishes a new track record, we can't be certain of the extent, if it all, to which current and historical data can be compared and produce meaningful results.

With this important caveat, PepsiCo's latest quarterly results produced the following changes to the gauge scores:

• Cash Management: 10 of 25 (down from 14 in December)
• Growth: 12 of 25 (up from 7)
• Profitability: 9 of 25 (down from 15)
• Value: 5 of 25 (down from 11)

• Overall: 32 of 100 (down from 50)

The current and historical values for the financial metrics that determine the gauge scores are listed below, with some brief commentary.  Readers are encouraged to verify these figures and calculate others as they see fit using the filings available at the SEC's web site and elsewhere.

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NVDA: Income Statement Analysis for the April 2010 Quarter

NVIDIA (NASDAQ: NVDA) earned $0.23 per diluted share on a GAAP basis in fiscal 2011's first quarter, which ended on 2 May 2010.  In last year's comparable quarter, NVIDIA incurred a net loss of $0.37 per share.

Non-GAAP earnings per share rose from ($0.13) to $0.23.  The non-GAAP figure for the earlier quarter excludes special charges, after tax, of $132 million ($0.24 per share) related to stock option purchases.

This post examines NVIDIA's Income Statement for the latest quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were $0.02 per share better than the $0.21 per share we had forecast.

The principal sources for the income statement analysis were the earnings announcement, and the Chief Financial Officer's commentary.

In a second article, we will report NVIDIA'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.

NVIDIA is best known for the powerful Graphics Processing Units that rapidly perform the huge numbers of calculations required to produce hyper-realistic images for computers and video games.  Additional background information about NVIDIA 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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CSCO: Income Statement Analysis for the April 2010 Quarter

Cisco Systems (NASDAQ: CSCO) earned $0.37 per diluted share on a GAAP basis in fiscal 2010's third quarter, which ended on 1 May 2010.  Cisco made 61 percent more than the $0.23 per share it earned in the comparable quarter of 2009.

Non-GAAP earnings rose 40 percent, from $0.30 to $0.42 per share.  Share-based compensation, amortization of acquisition-related intangible assets, and other acquisition-related expenses are usually the main differences between the GAAP and non-GAAP results.  In the latest quarter, the GAAP results included a one-time $158 million tax benefit ($0.03 per share) that was excluded from non-GAAP earnings.

The latest quarter included a rare 14th week.

This post examines Cisco's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were $0.02 better than the $0.35 per share we had forecast.  Earnings were $0.01 less than our estimate if the special tax benefit is excluded.

The principal sources for the income statement analysis were the earnings announcement, Chief Financial Officer Frank Calderoni's discussion of the results, and the conference call presentation [pdf].

In a second article, we will report Cisco'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.

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.  Additional background information about Cisco 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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BR: Income Statement Analysis for the March 2010 Quarter

Broadridge Financial (NYSE: BR) earned $0.18 per diluted share on a GAAP basis in the third quarter of fiscal 2010, which ended 31 March.  Broadridge made 38 percent less than the $0.29 per share it earned in the same quarter of 2009.

Earnings from continuing operations were $0.22 in the latest quarter.  The securities clearing business, which is being treated as a discontinued operation, lost $0.04 per share.  The sale of this business, announced last November, to Penson Worldwide (NASDAQ: PNSN) is expected to close before the end of June 2010.

This post examines Broadridge's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings and earnings from continuing operations were both lower than the $0.26 per share we had forecast.

The principal sources for this income statement analysis were the earnings announcement, the conference call presentation, the call transcript (available from Seeking Alpha), and the formal 10-Q report.

In a second article, we will report Broadridge'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.

Broadridge Financial Solutions, Inc., provides brokerage and other services to financial companies.  The Investor Communication Solutions business, which distributes and processes proxies for public companies and mutual funds, contributed more than 70 percent of Broadridge's revenue and pre-tax earnings in fiscal 2009.  Broadridge's Securities Processing business in fiscal 2009 "processed on average over 1.6 million equity trades and over $3 trillion in trades of United States (U.S.) fixed income securities per day."  Additional background information about Broadridge 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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WPI: Income Statement Analysis for the March 2010 Quarter

Watson Pharmaceuticals, Inc. (NYSE: WPI) earned $0.57 per share in the first quarter of 2010, which ended 31 March.  Watson made 36 percent more than the $0.42 it earned per share in the same quarter of 2009.

Adjusted, non-GAAP earnings increased from $0.69 to $0.81 per share in the latest quarter.  The adjustments exclude non-cash items, such as amortization and asset impairments.

This was the first full quarter after Watson's acquisition of Arrow, which closed on 2 December 2009.  The deal added about 20 generic drugs to Watson's growing product line.

This post examines Watson's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported Net Income was just slightly greater than our estimate, but a larger-than-expected number of shares outstanding threw our earnings-per-share estimate off by $0.05.

The principal sources for this income statement analysis were the earnings announcement, the ensuing conference call (transcript available from Seeking Alpha), and the formal 10-Q report.

In a second article, we will report Watson'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.

Watson Pharmaceuticals develops, manufactures, and sells generic and, to a lesser extent, branded pharmaceutical products.  Additional background information about Watson 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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