EIX: Income Statement Analysis for the December 2010 Quarter

Edison International (NYSE: EIX) earned $0.51 per diluted share on a GAAP basis in the December-ending fourth quarter of 2010, down 22 percent from $0.65 in the same three months of the previous year. 

"Core" earnings, a non-GAAP measure that excludes special items, fell from $0.59 to $0.58 per share.  The latest quarter included a $0.07 per share non-core write-off charge, whereas the year-earlier quarter had a $0.06 per share non-core benefit.

This post examines Edison's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported and core earnings both missed our EPS estimate of $0.63.

The principal sources for this income statement analysis were the earnings announcement, the formal 10-K, the conference call presentation, and the call transcript.  The latter is made available by Seeking Alpha.

In a second article, we will report Edison'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.


Before getting into the details, we will take a step back to introduce the subject of today's analysis.

Edison International is the parent of Southern California Edison and Edison Mission Group.  SCE, which traces its roots back to 1886, operates a regulated electric utility serving a population of about 13 million people in central, coastal and southern California.  SCE contributed more than 80 percent of Edison's revenue in 2009.  

Edison Mission Energy owns, or has interests in, various independent power-generation facilities. 

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INTC: Financial Gauge Analysis for the December 2010 Quarter

We have updated the various financial metrics we use to analyze Intel's (NASDAQ: INTC) Cash Management, Growth, Profitability and Value.  This post reports on the metrics and the associated financial gauge scores. 

The metrics were calculated using data from Intel's current and historical financial statements, including those in the new 10-K for fiscal 2010.

When Intel reported its results for the fourth quarter of fiscal 2010, the company announced earnings of $3.388 billion ($0.59 per diluted share).  Later, after a flaw was discovered in a new chipset, Intel added a $300+ million charge ($208 million after tax) to its Cost of Goods Sold.  This change reduced fourth-quarter earnings to $3.180 billion ($0.56 per share).

A previous GCFR article examined in some detail Intel's Income Statement for the December quarter, using the originally reported data.  The retroactive reinstatement of U.S. R&D tax credits helped boost earnings above our estimate.


Before getting into the details, we will take one step back to introduce the subject of today's analysis.

Intel is the most prominent manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products.  The company is included in the Dow Jones Industrial Average and the S&P 500.  It has a market value of about $125 billion.

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HD: Income Statement Analysis for the January 2011 Quarter

Home Depot (NYSE: HD) earned $0.36 per diluted share on a GAAP basis in the January-ending fourth quarter of fiscal 2010, up 78.5 percent from $0.20 in the same three months of the previous year. 

The earnings growth rate was unusually strong because the year-earlier results were depressed by a $163 million charge.  Excluding special items, earnings increased from $0.26 per share to $0.36.

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 $0.06 better than the $0.30 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.


Before getting into the details, we will take a step back to introduce the subject of today's analysis.

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 at last count has 2,244 retail stores, 88 percent in U.S. states or territories.  Home Depot also operates in Canada, China, and Mexico.

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WMT: Income Statement Analysis for the January 2011 Quarter

Wal-Mart Stores (NYSE: WMT) earned $1.70 per diluted share on a GAAP basis in the January-ending fourth quarter of fiscal 2011, up 36 percent from $1.25 in the same three months of the previous year.

It might be more meaningful to consider "underlying" earnings from continuing operations, which is a non-GAAP measure that excludes restructuring charges, certain tax benefits, and the results of non-continuing operations.  Walmart's underlying earnings from continuing operations rose 11 percent in the January 2011 quarter, from $1.21 in the previous year to $1.34 per share. 

This post examines Walmart's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Underlying earnings were $0.03 better than the $1.31 per share we had forecast.

The principal sources for this income statement analysis were the earnings announcement and the transcript [pdf] of management's pre-recorded 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.

Before getting into the details, we will take a step back to introduce the subject of today's analysis.

Retailing behemoth Wal-Mart Stores, Inc., operates 4434 stores in the U.S. (including Sam's Club) and 8838 worldwide, at last count.

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NVDA: Income Statement Analysis for the January 2011 Quarter

NVIDIA (NASDAQ: NVDA) earned $0.29 per diluted share on a GAAP basis in the January-ending fourth quarter of fiscal 2011, up 27 percent from $0.23 in the same three months of the previous year. 

The latest quarter included a $57 million ($37 million after taxes) benefit related to a legal settlement.  Non-GAAP earnings, which exclude special items, were $0.23 per share.  Non-GAAP earnings per share were also $0.23 in the year-earlier quarter.

This post examines NVIDIA's Income Statement for the latest quarter and compares the entries on each line to our "look-ahead" estimates.  Because of the legal settlement, tax matters, and other reasons discussed below, reported earnings surpassed our forecast of $0.17 per share. 

The principal sources for the income statement analysis were the earnings announcement, the Chief Financial Officer's commentary [pdf], and the conference call transcript (available from Seeking Alpha).

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.


Before getting into the details, we will take a step back to introduce the subject of today's analysis.

NVIDIA is best known for its powerful Graphics Processing Units that rapidly perform the complex calculations required to produce hyper-realistic images for computers and video games.

The company's share price shot up earlier this year in a favorable response to announcements NVIDIA made in conjunction with the Consumer Electronics Show in Las Vegas.  NVIDIA proclaimed its latest chips for mobile devices, such as the dual-core Tegra 2, are being used in increasing numbers of notebook computers, tablets, and smartphones. 

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WPI: Income Statement Analysis for the December 2010 Quarter

Watson Pharmaceuticals (NYSE: WPI) earned $0.15 per diluted share on a GAAP basis in the December-ending fourth quarter of 2010, down 71 percent from $0.51 in the same three months of 2009. 

Perhaps more significantly, non-GAAP earnings rose 23 percent, from $0.85 to $0.93 per share.  The non-GAAP results exclude various special and non-cash items, including restructuring charges, asset impairments, and legal settlements.

Please note that Watson's acquisition of Arrow Group in December 2009 complicates year-to-year comparisons of the company's 2009 and 2010 results.

This post examines Watson's Income Statement for the latest quarter and compares the entries on each line to our "look-ahead" estimates.  Reported GAAP earnings were far less than the $0.55 per share we had forecast.  Non-GAAP results beat our $0.81 estimate for adjusted cash earnings by $0.12 per share.

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 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.


Before getting into the details, we will take a step back to introduce the subject of today's analysis.

Watson Pharmaceuticals, Inc., produces and distributes generic and, to a lesser extent, branded pharmaceuticals.  Watson earned $184 million in 2010, down from $222 million in 2009.  Revenue increased from $2.8 billion to $3.6 billion.

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ADP: Financial Gauge Analysis for the December 2010 Quarter

Automatic Data Processing (NASDAQ: ADP) earned $0.62 per diluted share on a GAAP basis in the December-ending second quarter of fiscal 2011, unchanged from the same three months of 2009. 

A previous article examined ADP's Income Statement for the September quarter.  Reported earnings were $0.02 more than our $0.60 EPS estimate.

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 those in the latest 10-Q.


Before getting into the details, we will take a step back to introduce the subject of today's analysis.

Automatic Data Processing performs payroll, human resource, data processing, and outsourcing Business Services for well over 500,000 clients, large and small, in the United States and other countries.  ADP pays one of every six private sector employees in the U.S.

ADP is one of four remaining U.S. companies with a AAA bond rating.  An S&P 500 Dividend Aristocrat, ADP recently announced its 36th-consecutive annual dividend increase. 

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NOK: Financial Gauge Analysis for the December 2010 Quarter

Nokia Corp. (NYSE: NOK and HEL:NOK1V) earned €0.20 per diluted share on an IFRS basis in the December-ending fourth quarter of 2010, down 21 percent from €0.26 per share in the same three months of 2009. 

On a non-IFRS basis, which excludes special items, fourth-quarter earnings fell from €0.25 to €0.22 per share.

A previous GCFR article examined in some detail Nokia's Income Statement for the September quarter.  Reported earnings were €0.08 less than our €0.28 EPS estimate.


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 Nokia and the associated financial gauge scores.  The metrics were calculated using data from Nokia's current and historical financial statements.

Before getting into the details, we will take one step back to introduce the subject of today's analysis.

A Finnish company with a rich history, Nokia Corporation has been the leading global producer of mobile phones since 1998.  The company also sells the network infrastructure that supports these phones. 

Nokia's sales, earnings, and share price have fallen precipitously in recent years.  In 2007, Apple's (NASDAQ: AAPL) iPhone was launched and quickly became a runaway success, one that Nokia has been unable to stem.  Smartphones based on the Android architecture and Blackberries sold by Research in Motion (NASDAQ: RIMM) have also become popular at Nokia's expense. 

In the latest and most dramatic (desperate?) attempt to regain its competitive position, Nokia in February 2011 entered into a strategic alliance with Microsoft (NASDAQ: MSFT).  Nokia will build devices that use Windows Phone software, allowing the company to eventually retire its widely used but aging Symbian mobile operating system.  An earlier Nokia plan would have established MeeGo as the company's future OS.

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PEP: Income Statement Analysis for the December 2010 Quarter

PepsiCo (NYSE: PEP) earned $0.85 per diluted share on a GAAP basis in the 16-week, December-ending fourth quarter of fiscal 2010, down 6 percent from $0.91 in the same three months of 2009. 

Core earnings, which exclude certain items, increased from $0.90 to $1.05 per share.  The Core figures are intended to provide better insight than the reported GAAP results into the company's fundamental financial performance.  The differences between GAAP and Core results were significant in the latest quarter.  The most significant differences were a $0.13 per share charge for merger and integration costs and a $0.07 per share charge for debt repurchase expenses.

This post examines PepsiCo's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were $0.19 less than our $1.04 EPS estimate, but the truer comparison is that Core earnings surpassed our target by $0.01 per share

The principal sources for this review were the earnings announcement, the ensuing conference call presentation slides [pdf], and the transcript [pdf].

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.


Before getting into the details, we will take one step back to introduce the subject of today's analysis.

PepsiCo, Inc., is a leading global purveyor of beverages and snacks.  The company, which has a market value over $100 billion, is well regarded for good management, steady growth, and significant international exposure. 

Businesses, such as PepsiCo, that sell consumer staples are considered defensive investments because they are relatively less affected by economic slumps.  These firms also tend to pay generous dividends, and this is true for PepsiCo.  The company hiked its annual dividend in 2010 by 7 percent, from $1.80 to $1.92 per share.

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CSCO: Income Statement Analysis for the January 2011 Quarter

Cisco Systems (NASDAQ: CSCO) earned $0.27 per diluted share on a GAAP basis in the January-ending second quarter of fiscal 2011, down 14 percent from $0.32 in the same three months of the previous year. 

Non-GAAP earnings fell 7.5 percent, from $0.40 to $0.37 per share.  The non-GAAP results exclude items such as share-based compensation, amortization of acquisition-related intangible assets, and other acquisition-related expenses.  In the latest quarter, these non-GAAP items totaled $861 million pretax, $557 million ($0.10 per share) after-tax.

This post examines Cisco's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported GAAP earnings were $0.05 less than the $0.32 per share we had forecast. 

The principal sources for the income statement analysis were the earnings announcement and the ensuing conference call presentation [pdf].

In a second article, we will report Cisco Systems' 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.


Before getting into the details, we will take a step back to introduce the subject of today's analysis.

Cisco Systems, Inc., the proud plumber of the Internet, has a dominant role in markets for enterprise networking products and services. 

Cisco's earnings rose 27 percent in fiscal 2010, which ended in July, from $6.13 billion to $7.77 billion.  Revenue increased 11 percent, from $36.1 billion to $40.0 billion.  Fiscal 2010 included a 53rd week.

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BR: Income Statement Analysis for the December 2010 Quarter

Broadridge Financial (NYSE: BR) earned $0.08 per diluted share on a GAAP basis in the December-ending second quarter of fiscal 2011, down 66 percent from $0.24 in the same three months of last year. 

The year-earlier quarter included a $17.9 million ($0.13 per share) loss from discontinued operations.

This post examines Broadridge's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were a disappointing $0.13 per share lower than the $0.21 we had forecast.

The principal sources for this income statement analysis were the earnings announcement and the ensuing webcast and conference call presentation.

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.


Before getting into the details, we will take a step back to introduce the subject of today's analysis.

Broadridge Financial Solutions, Inc., provides brokerage and other services to financial companies.  Broadridge has been ranked the top Brokerage Process Services Outsourcing Provider for the last three consecutive years in the Black Book of Outsourcing.

Automatic Data Processing (NASDAQ: ADP) spun off Broadridge on 30 March 2007.  (GCFR articles related to ADP can be found here.)

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MSFT: Financial Gauge Analysis for the December 2010 Quarter

Microsoft (NASDAQ: MSFT) earned $0.77 per diluted share on a GAAP basis in the December-ending second quarter of fiscal 2011, up 4 percent from $0.74 in the same three months of 2009. 

A previous GCFR article examined in some detail Microsoft's Income Statement for the December quarter.  Reported earnings were a substantial $0.10 per share better than our $0.67 EPS estimate.

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 Microsoft and the associated financial gauge scores.  The metrics were calculated using data from Microsoft's current and historical financial statements, including those in the company's latest 10-Q report.

Before getting into the details, we will take a step back to introduce the subject of today's analysis.

Microsoft develops and sells the operating system software that runs on more than 90 percent of personal computers.  It also has dominant application software and server software franchises.  In addition, the company provides various online services, such as the Bing search engine and online advertising.  Microsoft also sells video game consoles, entertainment devices, and computer peripherals.

Net Income in fiscal 2010 was $18.8 billion, up nearly 30 percent from the prior year.  Revenue increased 7 percent, from $58.4 billion in 2009 to $62.5 billion.

Microsoft is included in the Dow Jones Industrial Average and the S&P 500.  The company's share price has for many years been between $20 and $30, with occasional excursions outside the range.  The share price is now in the upper half of the range, which translates into a market value of approximately $240 billion on a fully diluted basis.

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TDW: Income Statement Analysis for the December 2010 Quarter

Tidewater (NYSE: TDW) earned $0.67 per diluted share on a GAAP basis in the December-ending third quarter of fiscal 2011, down 42 percent from $1.16 in the same three months of the previous year.

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 $0.04 less than our $0.71 EPS estimate.

The principal sources for this review were the earnings announcement, the conference call, and the formal 10-Q 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.


Before getting into the details, we will take a step back to introduce the subject of today's analysis.

Tidewater owns the world's largest fleet of vessels serving the global offshore energy industry in exploration, field development, and production.  Headquartered in New Orleans for more than 50 years, Tidewater first serviced drillers in the Gulf of Mexico.  It now conducts business on a global scale.

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BP: Income Statement Analysis for the December 2010 Quarter

BP (NYSE: BP) earned $1.76 per diluted ADS in the December-ending fourth quarter of 2010, up 29 percent from $1.36 in the same three months of 2009.

In the most recent quarter, BP recorded a charge of $1.01 billion ($753 million after taxes, $0.24 per share) for expenses related to the oil spill in the Gulf of Mexico on 20 April 2010.  In 2010 as a whole, the charge for this tragic event was $40.858 billion ($28 billion after taxes, $12.89 per share).

This post examines BP's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were $0.11 more than our $1.65 EPS estimate.

The principal sources for the income statement analysis were the earnings announcement and ensuing 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.


Before getting into the details, we will take a step back to introduce the subject of today's analysis.
BP p.l.c. is a major Integrated Oil and Gas firm with worldwide interests.  The company's many energy projects include Alaskan oil fields and pipelines and a 50-percent stake in the TNK-BP joint venture in Russia.

Headquartered in London, the former British Petroleum became a behemoth by merging with Amoco in 1998 and acquiring Arco and Burmah Castrol soon thereafter.

In 2010, BP lost $3.7 billion on revenue of $309 billion, with the loss due to charges associated with oil spill.  In 2009, BP achieved profits of $16.6 billion on sales and other operating revenues of $239 billion.

The company recently announced a new joint venture with Rosneft, including an $8 billion swap of equity shares, to develop energy resources in Russia's north.  This deal did not please BP's TNK-BP partners.

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