We’re more than halfway finished with first-quarter earnings, and that means that most big blue chip companies have already released earnings. Although the second act of earnings season is usually reserved for small- and mid-cap companies, we still had a number of large-cap companies announce their quarterly operating results.
Now, as you know, I consider earnings season the ultimate litmus test for whether a company is fundamentally sound, so today I wanted to take a deeper look at three companies that have been the subject of a few recent emails and Facebook messages.
The Good
Tyson Foods Inc (NYSE:TSN) announced stronger-than-expected bottom-line growth thanks to higher beef and chicken prices. Compared with the same quarter last year, net income climbed 4% to $166 million, or 44 cents per share. Meanwhile, analysts forecast earnings of 39 cents per share, so the company posted a healthy 13% earnings surprise.
Over the same period, sales inched up 3% to $8.27 billion; this slightly missed the $8.49 billion consensus estimate. Management was pleased that the company pulled off this growth despite a challenging market environment, so the company expects $34 billion in sales for 2012.
This is largely in line with the Street view. Shares of TSN opened up modestly after this solid earnings report.
The So-So
Dish Network
(NASDAQ:DISH) announced lackluster operating results for the first quarter, so shares remained flat. This time last year, the company benefited from a litigation-related windfall, so the company’s bottom-line declined 34% year-over-year to $360.3 million.
Nonetheless the company’s adjusted earnings of 80 cents per share topped the 70 cents per share consensus estimate by 14%.
Over the same period, sales climbed 11% to $3.58 billion; this slightly missed the $3.62 billion consensus estimate. In the first quarter, the company added 104,000 subscribers and also completed its acquisition of Blockbuster Inc.
The Ugly
Shares of Cognizant Technology Solutions (NASDAQ:CTSH) plunged during trading hours on Monday after the company cut its 2012 forecast.
Compared with Q1 2011, net income climbed 17% to $243.7 million. Adjusted earnings weighed in at 71 cents per share, which missed the 79 cents consensus estimate by 11%. Over the same period, sales jumped 24% to $1.71 billion; this came in line with analysts’ estimates.
Looking ahead to 2012, management expects adjusted earnings of $3.62 per share on $7.34 billion in sales. Although earnings topped the Street view of $3.45 per share, this revised sales guidance comes in below the $7.54 billion consensus estimate. Even though the company announced a hefty $400 million stock buyback program, investors weren’t pleased with the earnings miss and lackluster forecast, so shares gapped down.
