Tuesday, April 26, 2016

WAB, RAI, & PG Earnings

Wabtec reported Q1 earnings of $1.02 per share on revenues of $772 million. The company re-affirmed guidance for 2016 between $4.30-$4.50. So far the stock is about 2% today. Here is what the CEO Raymond Betler had to say.

“We continue to expect another record earnings year, even as we face challenges in some of our key markets. We are responding to these challenges with aggressive cost- and efficiency-improvement programs, while continuing to invest in growth opportunities around the world. We remain optimistic about our long-term prospects and expect to continue to benefit from our diversified business model, balanced growth strategies and rigorous application of the Wabtec Performance System.”

Reynolds American reported  Q1 earnings of $0.50 on revenues of $2.92 billion. The company re-affirmed guidance for 2016 at $2.25-$2.35. Many outlets are also reporting the dividend was increased by 16.7% today. That's actually not true as the dividend announcement came earlier in February. The stock has been fighting it's way off the lows all day but is still down about 0.5%. Here is what the CEO Susan Cameron had to say. 

“Reynolds American’s operating companies began the year with strong momentum out of the gate, driving additional growth in RAI’s profitability,” said Susan M. Cameron, president and chief executive officer of RAI. “All of our operating companies demonstrated excellent performance, benefiting from increased volumes and higher pricing on both cigarettes and moist snuff. “I’m very pleased to report that Newport’s manufacturing integration is progressing smoothly and is now expected to be completed by the middle of this year, well ahead of the initial projection for the end of 2016,”

I just added shares of RAI on April 15th. I posted that buy to Twitter which you can follow here.  I'm very happy that I chose to add shares in this company as they are doing well. I was expecting the stock to turn down and I wrote about that here. I did state I wanted to wait until the stock pulled back before I bought, which is what I did. It's possible RAI hits the 200 day line around $45, and I would be happy to add again if it goes that far.

In that same post I said that I was going to add to MO if it got below $60. Well it did for one day going as low as $59.48. I had actually set a buy order at $59.50 only to change my mind shortly after I set it to $59.35. I'm hoping to get one more shot as they report earnings on Thursday.

Procter & Gamble also reported it's fiscal Q3 earnings of $0.86 on revenues of $15.8 billion. The company re-affirmed it's guidance for the year at $3.53-$3.65. The stock has been down around 2% most the day. Here is what the CEO David Taylor had to say.

“We continue to make progress on the transformations we are undertaking to return P&G to balanced top and bottom-line growth and maintain strong cash generation,” said President and Chief Executive Officer David Taylor. “We achieved a significant milestone this quarter in the transformation of the product portfolio with the sale of the Duracell business. We delivered another strong quarter of productivity improvement and cost savings, and we increased investments in innovation, advertising and selling to enhance our long-term prospects for faster, sustainable top-line growth and value creation.”

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