>>> Fortinet: Color on Quarter

Fortinet: Color on Quarter

  • FBR & Co notes that FTNT provided Q1 topline guidance above expectations, with billings guidance essentially in line while a pickup in spending on its sales force initiatives is expected to pressure margins. While it has been a roller coaster ride for FTNT over the past yr, it finally appears FTNT is on a smoother growth path for 2014 and beyond. With the backdrop of a strong cyber security spending environment & a strong product cycle in its back pocket, firm thinks FTNT has now set the stage to capitalize on an expanding total addressable mkt opportunity, given the pronounced threats facing enterprises/governments in the field. Firm maintains Outperform and raises tgt to $27 from $26.
  • RBC Capital says FTNT executed well with results ahead of expectations as billings and product revenue growth were the highest since Q4/12. The company feels it has under-invested for growth, however, and intends to invest more, which impacts margins and EPS. Firm believes investors are likely to remain more focused on the growth opportunity, particularly should the investments begin to pay dividends. Firm maintains Sector Perform rating and raises tgt to $25 from $24.
  • Needham comments that FTNT reported strong Q4 results, but despite the rebound in Q4, guidance was limited to Q1, indicating limited visibility after a difficult CY13. Management is encouraged by the 2H rebound in FTNT's business, which they attribute directly to Sales & Marketing investments; thus, the company is investing heavily in CY14 for growth, dropping operating margins from nearly 19% in CY13 to 17% in CY14. The combination of limited guidance, an "investment year" and a fair valuation keeps firm with a Hold rating.
  • Stock is trading at about $22.22 in pre-market trade, up about 4% from yesterday's close.

(BFW) *DEUTSCHE TELEKOM: GOAL IS ’PAN-EUROPEAN’ FIXED/MOBILE NETWORK

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BN 01/30 12:43 *DEUTSCHE TELEKOM: GOAL IS 'PAN-EUROPEAN' FIXED/MOBILE NETWORK BN 01/30 12:42 *DEUTSCHE TELEKOM CEO HOETTGES COMMENTS IN E-MAILED STATEMENT BN 01/30 12:42 *DEUTSCHE TELEKOM SAYS OTE IS 'STRONG CORNER STONE' OF GROUP

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*DEUTSCHE TELEKOM: GOAL IS ’PAN-EUROPEAN’ FIXED/MOBILE NETWORK 2014-01-30 12:45:19.778 GMT

--GAURAV PANCHAL

-0- Jan/30/2014 12:45 GMT

(BFW) *WILD FLAVORS OWNERS INCLUDING KKR SAID TO MULL $2 BILLION SALE

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BN 01/30 12:41 *WILD FLAVORS OWNERS INCLUDING KKR SAID TO MULL $2 BILLION SALE

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*WILD FLAVORS OWNERS INCLUDING KKR SAID TO MULL $2 BILLION SALE 2014-01-30 12:41:53.277 GMT

--LARRY DITORE

-0- Jan/30/2014 12:41 GMT

>>> Sherwin-Williams misses by $0.13, beats on revs; guides Q1 EPS below consens

Sherwin-Williams misses by $0.13, beats on revs; guides Q1 EPS below consensus; guides FY14 EPS below consensus

Reports Q4 (Dec) earnings of $1.14 per share, $0.13 worse than the Capital IQ Consensus Estimate of $1.27; revenues rose 10.6% year/year to $2.46 bln vs the $2.43 bln consensus. Co issues downside guidance for Q1, sees EPS of $0.95-1.15 vs. $1.27 Capital IQ Consensus Estimate. Co issues mixed guidance for FY14, sees EPS of $8.12-8.32 vs. $9.09 Capital IQ Consensus Estimate.

"In the first quarter of 2014, we anticipate our consolidated net sales will increase seven to twelve percent compared to the first quarter of 2013. At that anticipated sales level, we estimate diluted net income per common share in the first quarter of 2014 will be in the range of $.95 to $1.15 per share compared to $1.11 per share earned in the first quarter of 2013. This guidance includes our expectation that the Comex stores in the U.S. and Canada will contribute $97 million to $107 million to net sales and negatively impact diluted net income per common share $.15 to $.25 per share in the first quarter. For the full year 2014, we expect consolidated net sales to increase eight to thirteen percent (Briefing.com note: Approx $10.99-11.50 bln, Capital IQ consensus $11.21 bln) compared to full year 2013. With annual sales at that level, we anticipate diluted net income per common share for 2014 will be in the range of $8.12 to $8.32 per share compared to $7.26 per share earned in 2013. This annual guidance includes our expectation that the Comex acquisition will increase net sales by a low single digit percentage in the year and negatively impact diluted net income per common share $.45 to $.55 per share in 2014."

(BFW) *WEATHERFORD SHARES SUSPENDED IN ZURICH

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BN 01/30 12:16 *WEATHERFORD SHARES SUSPENDED IN ZURICH

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*WEATHERFORD SHARES SUSPENDED IN ZURICH 2014-01-30 12:17:06.326 GMT

--LARRY DITORE

-0- Jan/30/2014 12:17 GMT

>>> Occidental Petro beats by $0.04, misses on revs

Occidental Petro beats by $0.04, misses on revs

Reports Q4 (Dec) earnings of $1.72 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.68; revenues were unchanged from the year-ago period at $6.17 bln.
  • The fourth quarter of 2013 includes an after-tax gain of $665 million ($0.83 per diluted share) from the sale of a portion of an investment in the General Partner of Plains All American Pipeline, L.P., and an after-tax charge of $395 million ($0.49 per diluted share) related to the impairment of certain non-producing domestic oil and gas acreage.
Reserves
  • "Based on our preliminary reserve estimates, we added about 470 million barrels of reserves, resulting in a reserve replacement ratio of 169 percent for the total company. Of the total reserve additions, 156 percent, or about 433 million barrels, resulted from our development program.
Capital
  • "Our focus on capital and operating efficiencies helped us generate $12.9 billion of cash flow from operations during the twelve months of 2013. We spent $8.8 billion of our cash flow on capital expenditures, repurchased almost 11 million shares and reduced our debt by 9 percent. Our year-end cash balance was $3.4 billion compared to the 2012 year-end level of $1.6 billion."

>>> Raytheon beats by $0.23, misses on revs; guides FY14 EPS below consensus, re

Raytheon beats by $0.23, misses on revs; guides FY14 EPS below consensus, revs below consensus

Reports Q4 (Dec) earnings of $1.58 per share, excluding non-recurring items, $0.23 better than the Capital IQ Consensus Estimate of $1.35; revenues fell 8.8% year/year to $5.87 bln vs the $5.96 bln consensus.
  • Co issues downside guidance for FY14, sees EPS of $5.76-5.91, excluding non-recurring items, vs. $6.29 Capital IQ Consensus Estimate; sees FY14 revs of $22.5-23.0 bln vs. $23.09 bln Capital IQ Consensus Estimate.
  • The Company had bookings of $7.5 billion in the fourth quarter 2013 and ended 2013 with a backlog of $33.7 billion.
  • Integrated Defense Systems (IDS) had fourth quarter 2013 net sales of $1,569 million compared to $1,730 million in the fourth quarter 2012. The change in net sales was primarily due to an international Patriot program nearing completion and lower volume on a tactical radar program. IDS had full-year 2013 net sales of $6,489 million compared to $6,492 million in 2012.
  • Missile Systems had fourth quarter 2013 net sales of $1,638 million compared to $1,781 million in the fourth quarter 2012. The change in net sales was primarily driven by lower sales on U.S. Army sensor programs. MS had full-year 2013 net sales of $6,599 million compared to $6,639 million in 2012.

>>> Colgate-Palmolive beats by $0.01, reports revs in-line

Colgate-Palmolive beats by $0.01, reports revs in-line

Reports Q4 (Dec) earnings of $0.75 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.74; revenues rose 1.7% year/year to $4.36 bln vs the $4.39 bln consensus.

Net income in fourth quarter 2013 excluded $0.15 per diluted share of after tax charges resulting from the implementation of the previously disclosed four-year Global Growth and Efficiency Program, a charge associated with an existing European competition law matter and costs associated with the sale of land in Mexico.

Key metrics:
  • Global unit volume grew 6.5%, pricing was even with the year ago quarter and foreign exchange was negative 4.5%.
  • Organic sales (Net sales excluding foreign exchange, acquisitions and divestments) grew 6.5%.
  • Gross profit margin was 59.1% in fourth quarter 2013, an increase of 50 basis points versus the year ago quarter, as cost savings from the Company's funding-the-growth initiatives more than offset higher raw and packaging material costs which included the impact of foreign exchange transaction costs.
Regional
North America (18% of Company Sales)
  • North America Net sales increased 2.5% in fourth quarter 2013. Unit volume increased 4.0% with 1.0% lower pricing and 0.5% negative foreign exchange. Organic sales increased 3.0% during the quarter.
Latin America (29% of Company Sales)
  • Latin America Net sales increased 1.0% in fourth quarter 2013. Unit volume increased 10.0% with 2.5% higher pricing and 11.5% negative foreign exchange. Volume gains were led by Venezuela, Brazil, Mexico and Colombia. Organic sales for Latin America increased 12.5% during the quarter.
Europe/South Pacific (19% of Company Sales)
  • Europe/South Pacific Net sales decreased 0.5% in fourth quarter 2013. Unit volume increased 2.5% with 4.5% lower pricing and 1.5% positive foreign exchange. Excluding divested businesses, unit volume increased 3.0%. Volume gains in the United Kingdom, Australia and Poland more than offset volume declines in France and Germany. Organic sales for Europe/South Pacific decreased 1.5%.
Asia (14% of Company Sales)
  • Asia Net sales increased 4.5% during fourth quarter 2013. Unit volume increased 10.5% with 1.5% lower pricing and 4.5% negative foreign exchange. Volume gains were led by the Greater China region, India and the Philippines. Organic sales for Asia increased 9.0%.
Hill's Pet Nutrition (13% of Company Sales)
  • Hill's Net sales increased 4.5% during fourth quarter 2013. Unit volume increased 4.0% with 3.0% higher pricing and 2.5% negative foreign exchange. Volume gains in the U.S., Russia and Canada were partially offset by volume declines in Japan. Hill's organic sales increased 7.0%.
Outlook:
"As we look ahead to 2014, based on the Company's current growth momentum and our confidence in the strength of our global growth and efficiency program, we are planning for a year of gross margin expansion and strong earnings per share growth in line with the consensus of external analyst estimates, excluding charges related to the 2012 Restructuring Program. This takes into account recent movements in foreign exchange rates but excludes the impact of the recent economic announcements in Venezuela, which we are still evaluating."