Four Buy List Earnings Reports this Morning

It’s been a busy morning for us; we had four Buy List stocks report their earnings.

First up is Danaher (DHR). The diversified manufacturer said they made 99 cents per share for Q2. Danaher previously told us to expect earnings to range between 95 and 98 cents per share.

Thomas P. Joyce, Jr., President and Chief Executive Officer, stated, “During the second quarter, we delivered double-digit adjusted earnings per share growth, generated strong cash flow, and our two most recent large acquisitions – Pall and Cepheid – continued to perform very well.”

Joyce continued, “As we look to the second half of the year, we expect our core growth rate to accelerate compared to first half levels off of improving order trends and as recent acquisitions become part of our core revenue. We believe that the power of the Danaher Business System, significant opportunities across our portfolio, and a strengthening balance sheet position us well for the remainder of 2017 and beyond.”

Now for guidance. For Q3, Danaher said to expect earnings between 92 and 96 cents per share. Wall Street had been expecting 97 cents per share. Danaher also raised their full-year range. The old range was $3.85 to $3.95 per share. The new range is $3.90 to $3.97 per share.

The shares dropped at today’s open. I’m not sure why. This is a fine report. The shares are basically back to where they were during much of last week.

Snap-on (SNA) said they made $2.60 per share for Q2. That was five cents better than expectations. Net sales rose 5.6% to $921.4 million. Diluted EPS rose by 10.2% over last year’s Q2.

The CEO said, “Our year-over-year improvement in operating margin before financial services reflects ongoing progress through our Snap-on Value Creation Processes. At the same time, these results also demonstrate continued advancement along our strategic runways for growth, as indicated by the notable increase in activity in the quarter. Despite some sales headwinds in the quarter for the Snap-on Tools Group, we believe the vehicle repair markets in which we operate remain robust and afford significant ongoing opportunity. Furthermore, our acquisition of Norbar Torque Tools in the second quarter adds to our expanding product offering to customers in critical industries. Finally, these results would not have been possible without the dedication and capability of our franchisees and associates worldwide; I thank them for their extraordinary commitment and ongoing contributions.”

Shares of SNA initially gapped up but then fell back down.

Alliance Data Systems (ADS), the loyalty solutions people, said they pulled in $3.84 per share for Q2. That was 11 cents more than expectations. Quarterly revenue rose 4% to $1.8 billion.

However, the big news is that ADS is lowering their full-year guidance from $18.50 to $18.10 per share. ADS said their BrandLoyalty business “produced soft results.” But ADS is actually bumping up their revenue guidance from $7.7 billion to $7.8 billion.

The company also said they’re “comfortable” in giving initial 2018 guidance of $21.50 per share in core earnings. Still, Wall Street was not pleased with today’s report. The shares are currently off by about 10%.

Sherwin-Williams (SHW) had a big earnings miss. The company only made $3.80 per share last quarter. Wall Street had been expecting $4.57 per share. The reason for the earnings shortfall was costs assoicated with the recent merger with Valspar.

Sherwin said they see Q3 earnings coming in between $3.70 and $4.10 per share. That includes a charge of $1.10 per share related to the acquisition. Wall Street had been expecting Q3 earnings of $4.91 per share.

For all of 2017, Sherwin now expects earnings to range between $12.30 and $12.70 per share. That will include $2.50 in charges related to the acquisition. Wall Street had been expecting $14.76 per share.

Shares of SHW got clobbered early Thursday.

Microsoft‘s (MSFT) report will come out after the close.

Posted by on July 20th, 2017 at 11:25 am


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