Earnings Notes

There are two minor earnings notes I wanted to mention. Companies sometimes bury key data in earnings calls and not in their press releases.

In their earnings report, Becton, Dickinson (BDX) said they see full-year earnings ranging between $12.05 and $12.15 per share. On the earnings call, BDX added that Q1 earnings should range between $2.50 and $2.60 per share.

Cognizant Technology Solutions (CTSH) said they expect full-year earnings of at least $4.40 per share. However, the company has altered their accounting definitions slightly. From the earnings call:

Going forward, our adjusted operating margin and EPS will no longer exclude stock-based compensation expense and acquisition-related expenses. When calculated under the new methodology, the full year of 2018 adjusted operating margin was 18.1%, and adjusted EPS was $4.02.

So the estimate of $4.40 per share is a 10% increase.

Broadridge (BR) said they see earnings growth of 9% to 13% for this fiscal year which is already half over. Since they made $4.19 per share last year, the guidance works out to $4.57 to $4.73 per share this year. Wall Street expects $4.66 per share. Broadridge has already made $1.35 per share for the first half of this fiscal year.

We also have three Buy List stocks with quarters that end in January. Hormel Foods (HRL) will report on February 21. JM Smucker (SJM) is due to report on February 26. Ross Stores (ROST) hasn’t announced an earnings date yet but it should be in late February or early March.

Posted by on February 11th, 2019 at 3:14 pm


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