McDonald’s, Verizon Highlight Big Morning of Earnings Reports

by InvestorPlace Staff | January 24, 2012 9:31 am

McDonald’s (NYSE:MCD[1]) was the shining star on a Tuesday morning chock full of earnings report, growing earnings in double-digits for the 10th consecutive quarter.

McDonald’s reported earnings of $1.38 billion ($1.33 per share), trumping last year’s $1.24 billion ($1.16) by 10%. Its EPS were 3 cents more than Thomson Reuters I/B/E/S analyst expectations. Same-store sales were up more than 7%, with the biggest increases coming in the U.S. and Europe, though McDonald’s also saw same-store sales increase 6.9% in the Asia/Pacific region, the Middle East and Africa. The company also reported full-year EPS of $5.27, up 15% from the year-ago period.

McDonald’s was the top Dow Jones stock of 2011[2], and MCD shares are up 35% in the past 52 weeks.

Verizon (NYSE:VZ[3]) was on the opposite end of the spectrum, posting a fourth-quarter loss of $2 billion, or 71 cents per share, mostly thanks to a pension charge. Strong sales of the Apple (NASDAQ:AAPL[4]) iPhone — Verizon subsidizes the price for consumers — also bore into earnings. The loss is in stark contrast to earnings of 93 cents per share in the year-ago period.

Excluding the one-time charges, Verizon earned 52 cents per share, a penny short of analysts’ expectations and down 2 cents from Q4 2010, though revenue of $28.4 billion was on par. VZ stock is up 10% in the past 52 weeks but down 4% year-to-date.

Other big companies reporting earnings Tuesday morning:

DuPont (NYSE:DD[5]) beat Wall Street estimates by 2 cents with adjusted EPS of 35 cents per share. Its total earnings were down just slightly, from $376 million in Q4 2010 to $373 million this year. However, DuPont’s $8.43 billion in sales were short of expectations for $8.53 billion, though still up 14% from the year-ago period.

Johnson & Johnson (NYSE:JNJ[6]) reported adjusted earnings of $1.13 per share, beating expectations for $1.09. However, an almost $3 billion charge for product recalls put total earnings at $218 million, down from $1.9 billion in Q4 2010. However, JNJ disappointed Wall Street with full-year forecasts of $5.05 to $5.15 EPS, below expectations of $5.21.

The Travelers Companies (NYSE:TRV[7]) matched analyst expectations with a large earnings drop from the year-ago period. TRV reported earnings of $618 million ($1.51 per share), down 31% from 2010. Slightly higher revenues of $6.37 billion beat estimates of $5.47 billion.

– Kyle Woodley, InvestorPlace.com Assistant Editor

Endnotes:
  1. MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
  2. top Dow Jones stock of 2011: http://investorplace.com/2011/12/best-worst-dow-stocks-201/
  3. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  4. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  5. DD: http://studio-5.financialcontent.com/investplace/quote?Symbol=DD
  6. JNJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=JNJ
  7. TRV: http://studio-5.financialcontent.com/investplace/quote?Symbol=TRV

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