PRGN: Income Statement Analysis for the December 2010 Quarter

Paragon Shipping, Inc., (NYSE: PRGN) earned $0.04 per diluted share on a GAAP basis in the December-ending fourth quarter of 2010, down more than 80 percent from $0.26 in the same three months of the previous year.

Adjusted earnings, a non-GAAP measure that excludes various non-cash items, sank from $0.17 to $0.08 per share in the fourth quarter.

This post reviews Paragon Shipping's Income Statement for the quarter.  We did not issue any advance estimates of the results.  The principal sources for the analysis were the earnings announcement and the accompanying slide presentation.

In a second article, we will provide updated figures for the 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.

Paragon Shipping owns and charters ships that carry dry bulk cargoes and, now, containers.  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.  Paragon has already secured charters for 98 percent of its fleet capacity in 2011.

Read the rest of this article

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. 

Read the rest of this article

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.

Read the rest of this article

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.

Read the rest of this article

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. 

Read the rest of this article

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.

Read the rest of this article

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.

Read the rest of this article

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.

Read the rest of this article

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.

Read the rest of this article

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.

Read the rest of this article

PG: Income Statement Analysis for the December 2010 Quarter

Procter & Gamble (NYSE: PG) earned $1.11 per diluted share on a GAAP basis in the December-ending second quarter of fiscal 2011, down 26 percent from $1.49 in the same three months of the previous year.

A better view of P&G's results can be gained from Core earnings, which is a non-GAAP measure that excludes certain items and discontinued operations.  In the December quarter, Core earnings per share rose from $1.10 to $1.13. Note that the December 2009 quarter included $1.5 billion in earnings from discontinued operations, primarily the pharmaceuticals business that P&G sold to Warner Chilcott (NASDAQ: WCRX).

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 were $0.02 more than our $1.09 EPS estimate.  (This small number masks some significant item-by-item differences.)


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

In a second article, we will report P&G'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.

Procter & Gamble creates and markets many well-known Household and Personal products to customers around the world.  The company, based in Cincinnati, traces its roots back to 1837.

P&G reported Net Income of $12.7 billion ($10.9 billion from continuing operations) on Net Sales of $78.9 billion in fiscal 2010, which ended in June.

The company's market value is currently close to $200 billion on a fully diluted basis, which makes P&G one of the ten most-valuable U.S. corporations.

Read the rest of this article

COP: Income Statement Analysis for the December 2010 Quarter

ConocoPhillips (NYSE: COP) earned $1.39 per diluted share on a GAAP basis in the December-ending fourth quarter of 2010, up 63 percent from $0.86 in the same three months of 2009. 

Adjusted earnings rose from $1.20 to $1.32 per share, a 10 percent increase.   Adjusted earnings exclude gains on asset sales, impairment charges, and other special items.

This post examines ConocoPhillips' Income Statement for the latest quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were 15 percent below our $1.64 EPS estimate.

The principal sources for this income statement analysis were the earnings announcement, the ensuing conference call presentation [pdf], and transcript (the latter provided by Seeking Alpha).

In a second article, we will report ConocoPhillips' 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.

ConocoPhillips is one of the ten biggest Integrated Oil and Gas companies, which produce, refine, transport, and market energy products.  The company was formed in 2002 when Conoco, Inc., merged with Phillips Petroleum.  It added Burlington Resources, with its extensive natural gas operations, in March 2006 (when gas prices were much higher than they are now).

The market value of the company is now around $100 billion, double its low in March 2009 but still well below the all-time high of $150 billion.

ConocoPhillips has business interests in 26 countries around the world, from Algeria to Vietnam.

For financial data reporting, ConocoPhillips has six operating segments:  Exploration & Production, Midstream, Refining & Marketing, Lukoil Investment, Chemicals, and Emerging Businesses.  The Chemical segment consists of a joint venture with Chevron (NYSE: CVX).

Read the rest of this article

MSFT: Income Statement 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. 

The year-earlier results were boosted by the release of Windows 7, which became available in October 2009.

This post examines Microsoft's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were a substantial $0.10 per share better than our $0.67 EPS estimate.

The principal sources for the income statement analysis were the earnings announcement, the ensuing conference call presentation [pptx] and transcript [docx], 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.


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

First, we present some background information about Microsoft and the business environment in which it is currently operating.

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.  For many years, the company's shares have generally traded at a price between $20 and $30, with occasional excursions outside the range.  The company's market value is now about $250 billion on a fully diluted basis.

Read the rest of this article

NOK: Income Statement 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.

This post examines Nokia's Income Statement for the most recent quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were €0.08 less than our €0.28 EPS estimate.

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.


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.  The financial crisis that also began in 2007 eventually led to a worldwide decline in the number of mobile phones sold, which compounded Nokia's difficulties. 

Smartphones based on the Android architecture and Blackberry products sold by Research in Motion (NASDAQ: RIMM) have also become popular at Nokia's expense. 

Read the rest of this article

IBM: Income Statement Analysis for the December 2010 Quarter

IBM (NYSE: IBM) earned $4.18 per diluted share on a GAAP basis in the December-ending fourth quarter of fiscal 2010, up 16 percent from $3.59 in the same three months of 2009.

This post examines IBM's Income Statement for the quarter.  Please note we did not issue "look-ahead" estimates in advance of the earnings release.

The principal sources for this income statement analysis were the earnings announcement and the Chief Financial Officer's prepared remarks for the ensuing conference call.

In a second article, we will report IBM'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.

International Business Machines, often called Big Blue, is an information technology powerhouse that sells hardware, software, and integration solutions and services to meet the needs of businesses and other large enterprises. 

With roots that can be traced back more than a century, IBM was in the vanguard of the computer industry.  Its mainframes dominated the business for decades and are still a profitable product line for IBM.  Of course, they now work alongside a varied array of personal computers and servers.  IBM successfully adapted to the new technologies enabled by Moore's Law, and it is still considered a bellwether for the sector.  It remains the top ranked Information Technology Services firm in Fortune Magazine's list of the World's Most Admired Companies.

A key element of IBM's strategy in recent years has been to divest low-margin businesses, such as the personal computer division it sold to Lenovo, to focus on high-value products and services that make use of the company's vaunted research and application expertise.  IBM has also grown by expanding into emerging markets and acquiring firms that provide complementary skills or technology.

For example, IBM obtained data warehousing capabilities that support business analytics when it purchased Netezza in 2010 for $1.7 billion.

Read the rest of this article

AAPL: Income Statement Analysis for the December 2010 Quarter

Apple (NASDAQ: AAPL) earned $6.43 per diluted share on a GAAP basis in the December-ending first quarter of fiscal 2011, up an astonishing 75 percent from $3.67 in the same three months of 2009.

This post examines Apple's Income Statement for the quarter. 

The results were overshadowed to some extent by the announcement CEO Steve Jobs, the leader of the Apple cult, would take a third medical leave of absence.

Reported earnings were $1.63 per share (34 percent) greater than Apple's guidance of $4.80.  Please note we did not issue our normal "look-ahead" estimates because detailed projections are available from the many professional and amateur analysts that follow Apple's every move.  (Andy Zaky's Bullish Cross is one excellent example.)


The principal sources for this income statement analysis were the earnings announcement, the accompanying data sheet, and the ensuing 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.


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

Apple Inc. has been recognized by Fortune as the world's most admired company for the last three years.  It is known for elegant product design, innovation, customer loyalty, brand-building marketing, and secrecy.

A soaring stock price has elevated Apple's market value to almost $320 billion, on a fully diluted basis, making Apple the second-most valuable U.S. company.  Only Exxon Mobil (NYSE: XOM) is worth more.

In fiscal 2010, which ended in September, Apple earned $14.0 billion ($15.15 per diluted share) on sales of $65.2 billion.  Earnings in fiscal 2009 were $8.2 billion ($9.08 per share) on sales of $42.9 billion.

Read the rest of this article

INTC: Income Statement Analysis for the December 2010 Quarter

Intel (NASDAQ: INTC) earned a record $0.59 per diluted share on a GAAP basis in the December-ending fourth quarter of fiscal 2010, up 47 percent from $0.40 in the same three months of 2009.

This post examines Intel's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Reported earnings were $0.07 more than our $0.52 EPS estimate, with a substantial amount of the difference attributable to legislation passed in late 2009 that reinstated and extended certain tax credits.

The principal sources for this income statement analysis were the earnings announcement, the CFO's commentary [pdf], and the ensuing conference call (transcript available from 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.


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

Intel is the foremost manufacturer of integrated circuits for computers, servers, hand-held devices, and communication products.  In fiscal 2009, Intel had Net Income of $4.37 billion ($0.77 per share), down 17 percent from $5.29 billion ($0.92 per share) in the previous year.  Revenue slipped 6.5 percent, from $37.6 billion to $35.1 billion.

Intel is included in the Dow Jones Industrial Average and the S&P 500.  It has a market value of about $120 billion.

The company's business is organized around nine product groups.  The two largest groups are PC Client and Data Center.  The PC Client Group sells microprocessors and related products for desktop, notebook, and netbook computers.  It also markets wireless connectivity products.  PC Client was responsible for $26.2 billion of Revenue in 2009, nearly 75 percent of Intel's total Revenue.

The Data Center Group sells microprocessors and related products for servers, workstations, and storage computing equipment.  It also has products for wired network connectivity.  The Data Center Group had Revenue of $6.45 billion in 2009, 18 percent of the company's total sales.

Read the rest of this article

HD: Income Statement Analysis for the October 2010 Quarter

The Home Depot, Inc. (NYSE: HD) earned $0.51 per diluted share on a GAAP basis in the October-ending third quarter of fiscal 2010, up 24.5 percent from $0.41 in the same three months of last year. 

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 $0.47 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 has 2,244 retail stores, of which 88 percent are in U.S. states or territories.  Home Depot also operates in Canada, China, and Mexico.

Read the rest of this article

WMT: Income Statement Analysis for the October 2010 Quarter

Wal-Mart Stores (NYSE: WMT) earned $0.95 per diluted share on a GAAP basis in the October-ending third quarter of fiscal 2011, up 16 percent from $0.81 in the same three months of last year. 

A special tax benefit of $0.05 per share lifted reported earnings.  With this benefit excluded, earnings were close to $0.90 per share and were consistent with Walmart's guidance, issued last August, to expect diluted EPS from continuing operations between $0.87 to $0.91.

This post examines Walmart's Income Statement for the quarter and compares the entries on each line to our "look-ahead" estimates.  Adjusted earnings nearly matched the $0.90 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., earned over $14 billion on net sales of $405 billion in fiscal 2010, which concluded last January.  The Revenue figure, along with a drop in energy prices, enabled Walmart to regain from Exxon Mobil (NYSE: XOM) the top position on the Fortune 500 list of America's largest corporations. 

Read the rest of this article