Four Earnings Reports

This morning, Danaher (DHR) reported Q3 earnings of $1.10 per share. That’s a 10% increase over last year. Core revenues rose 6.5%. For Q4, Danaher expected earnings between $1.25 and $1.28 per share. The company again increased its full-year guidance. The old range was $4.43 to $4.50 per share. The new range is $4.49 to $4.52 per share.

Thomas P. Joyce, Jr., President and Chief Executive Officer, stated, “We are very pleased with our performance in the third quarter, as the team maintained strong momentum and delivered outstanding results. We achieved 6.5% core revenue growth, solid operating margin expansion and double-digit adjusted earnings per share growth. Four of our five platforms delivered mid-single digit or better core revenue growth, and we believe our investments in innovation and commercial execution are driving market share gains in many of our businesses.”

Joyce continued, “Our recent performance is a testament to the team’s execution and drive for continuous improvement. We believe the strength and differentiation of our portfolio – combined with the power of the Danaher Business System – provides us with the foundation to deliver sustainable, long-term shareholder value.”

Alliance Data Systems (ADS) reported Q3 core earnings of $6.26 per share. That’s five cents above expectations. Core earnings are up 20% this year to $15.70 per share. That puts ADS on track to hit its full-year target of $22.50 to $23.00 per share.

“There were three significant achievements during the third quarter. First, we are now seeing the benefits from shifting to in-house recovery of charged-off accounts in our Card Services segment as recovery rates moved from a multi-quarter drag toward a growing benefit. Second, also in the Card Services segment, we are trending to a record level of new client signings, which will add as much as $4 billion in card receivables growth over time. And third, our LoyaltyOne® segment had another solid quarter of pro forma revenue growth, coupled with momentum in our AIR MILES® Reward Program as evidenced by a nice step-up in AIR MILES issued.

“Shifting to our strategic direction, we have spent the better part of this year reviewing the portfolio of businesses that constitute Alliance Data. We are nearing the end of this process and feel it’s appropriate to share our current thinking.”

Heffernan continued: “Stated simply, we firmly believe that our current stock price does not reflect the intrinsic value of our portfolio of businesses across the enterprise. We are evaluating which assets would likely thrive under a different steward, while also unlocking value for our stockholders. We know that the right answer could involve significant realignment of our businesses and we are actively evaluating that optimal strategy. We expect to crystallize a game plan of precisely − what and how − before year end, and will continue to communicate our path forward when appropriate.”

Snap-On (SNA) earned $2.88 per share which beat estimates by thee cents per share. Sales fell to $898.1 million from $903.8 million in the year-earlier period. Wall Street had been expecting $931 million according to FactSet.

Chairman and Chief Executive Nick Pinchuk said: “While we experienced sales turbulence in our Repair Systems & Information Group this quarter, we believe the vehicle repair markets in which we operate remain robust and afford ongoing opportunity.”

The company said it expects capital expenditures in 2018 will be in the range of $90 million to $100 million, of which $68.5 million was incurred in the first nine months of the year.

Signature Bank (SBNY) reported Q3 earnings of $2.84 per share. That’s up from $2.29 per share from last year. It also beat Wall Street’s estimate by one penny per share.

Total Deposits increased by $1.10 billion to $36.09 billion. Loans increased by $979.7 million, or 2.9%, to $35.13 billion. Net Interest Margin was 2.88% compared with 2.94% for Q2.

Posted by on October 18th, 2018 at 8:26 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.