Showing posts with label Top Performing Stocks 2012. Show all posts
Showing posts with label Top Performing Stocks 2012. Show all posts

Apple: Sterne Agee Ups iPad Estimate, Dismisses Rumors of Cuts

Sterne Agee’s Shaw Wu this morning writes that he’s been receiving questions from some Apple (AAPL) investors about rumored cuts in iPad production, inquiries he believes are “misplaced” given that the issue for the iPad appears to be supply of the “Retina Display” being limited, not anything about declines in demand.
“What we are picking up are strong follow-up demand trends for the new iPad despite a very strong start of 3 million units sold in the first few days,” writes Wu.
Wu thinks display supplies may improve, and he’s also unfazed by reports there may have been cuts in work hours at supplier Foxconn:
we anticipate supply to improve over the course of the next few quarters as additional production lines and suppliers are added. In addition, what could also be causing concern is news that Hon Hai Foxconn employees have had their individual working hours cut. This is not due to a slowdown in production but rather conforming to more sound labor practices where there will be a cap on overtime hours per month per employee. This is in an effort to improve working conditions. From our understanding, the irony is that many employees prefer to work more overtime.
Wu actually raised his estimate for iPad sales for fiscal Q2 that ended last month to 12.3 million from a prior 11.5 million. He sees the company selling 63 million units this calendar year, up from a prior 60 million estimate. That should produce revenue of $161.2 billion and EPS of $44.50 this fiscal year, up from a prior $160 billion and $43.80.
Apple shares today are down $1.45 at $626.99.

ResMed Inc. Earnings: Keeping the Profitability Streak Alive

ResMed Inc. (NYSE:RMD) reported net income above Wall Street’s expectations for the second quarter. ResMed is a developer, manufacturer and distributor of medical equipment for treating, diagnosing and managing sleep-disordered breathing and other respiratory disorders.
ResMed Earnings Cheat Sheet for the Second Quarter
Results: Net income for ResMed Inc. rose to $62.9 million (42 cents per share) vs. $58.5 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 7.6% from the year earlier quarter.
Revenue: Rose 8.7% to $332.7 million from the year earlier quarter.
Actual vs. Wall St. Expectations: RMD beat the mean analyst estimate of 38 cents per share. It fell short of the average revenue estimate of $339.6 million.
Quoting Management: Peter C. Farrell Ph.D, chairman and chief executive officer, commented, “On a regional basis, revenue in the Americas increased by 12% to $182.5 million over the prior year’s quarter. Revenue outside the Americas was $150.2 million, an increase of 5% over the prior year’s quarter, on both a GAAP and constant currency basis. Our global operating profit for the December quarter was $67.3 million and cash flow from operations was a record $110.6 million, demonstrating excellent operating performance. During the quarter, we also repurchased 4.1 million shares, at a cost of $110.5 million, as part of our ongoing capital management program.”
Key Stats:
Gross margin shrank 1.1 percentage points to 59.7%. The contraction appeared to be driven by increased costs, which rose 11.7% from the year earlier quarter while revenue rose 8.7%.
Revenue has risen the past four quarters. Revenue increased 11.6% to $314.8 million in the first quarter. The figure rose 17.3% in the fourth quarter of the last fiscal year from the year earlier and climbed 12.4% in the thi! rd quart er of the last fiscal year from the year-ago quarter.
The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 33 cents versus a mean estimate of net income of 35 cents per share.
The increase in profit last quarter comes after net income fell in the previous quarter. In the first quarter, net income declined 10.9% to $50.5 million.
Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for third quarter has fallen from 40 cents per share to 39 cents. In the past month, the average estimate for the fiscal year has fallen from $1.55 per share to $1.54 abs.
Competitors to Watch: Allied Healthcare Product (NASDAQ:AHPI), Masimo Corporation (NASDAQ:MASI), Electromed, Inc. (NASDAQ:ELMD), Medtronic, Inc. (NYSE:MDT), Dynatronics Corporation (NASDAQ:DYNT), Thermo Fisher Scientific Inc. (NYSE:TMO), Covidien plc (NYSE:COV), Dehaier Medical Systems Ltd (NASDAQ:DHRM), and CareFusion Corporation (NYSE:CFN).

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