Halfway through Q1 earnings, there's already a clear pattern emerging: 1) revenues sometimes a tad light, 2) rising fuel/commodity costs and poor weather are widely cited as an impact on margins and the bottom line, and 3) sales outside the U.S., particularly to developing countries, continue to become a more important part of topline growth.
Look at UPS , which this morning reported diluted earnings per share of $0.88, slightly better than the $0.85 consensus, better than the $0.71 from a year earlier. Revenues of $12.58 billion were slightly lighter than consensus. The company cited rapidly rising fuel costs, and the challenging weather condition as headwinds. Despite the revenue miss, they're at $4.15-$4.40, prior guidance was $4.12-$4.35, consensus $4.25.
Silver: a correction, of sorts. I noted yesterday that silver stocks were down 3 percent or more, on a day when silver hit new highs...but Monday night silver too came down as the CME reportedly raised margin calls on silver. BMO made a very good valuation call on Silver Wheaton , downgrading it yesterday purely on valuation.
1) 3M beats ($1.49 vs. $1.45 consensus) and raises guidance for the full year, to $6.05-$6.25 from prior guidance of $5.95-$6.20 (consensus $6.22). Organic volume was up 8.9 percent.
2) If you want to see the impact of overseas sales on U.S. companies, look at truck engine producer Cummins up 3 percent pre-open, reported a blow-out quarter: $1.75 vs. $1.44 consensus, on strong international sales, and even the North American truck market appeared stronger. Sales were up 56 percent (!): up 66 percent in China, 39 percent in Brazil. Sales outside the U.S. are now almost two-thirds of revenue.
3) Ford rises 2 percent after reporting much better-than-expected earnings($0.61 vs. $0.50 consensus). The automaker got a boost from "strong performance in North America and solid improvement in Europe" as volumes and pricing improved. Full-year industry volumes are seen between 13-13.5 million vehicles. CEO Alan Mulally expects the firm's annual volumes to continue growing "substantially" and the automaker expects to sustain or improve its market share.
4) Illinois Tool Works rises 6 percent after earnings easily beat estimates ($0.91 vs. $0.84 consensus). The industrial product manufacturer saw stronger-than-expected revenues on solid double-digit gains in organic sales. Demand continued to pick up, and CEO David Speer expects most of its end markets "will remain relatively strong throughout the remainder of 2011." The company raises its full-year earnings outlook and expects mid-to-high double-digit revenue growth.