For Immediate Release
Chicago, IL – August 09, 2010 – Zacks.com Analyst Blog features: CF Industries Holdings Inc. (CF), ValueClick Inc. (VCLK), Public Storage (PSA) Endo Pharmaceuticals Holdings Inc. (ENDP) and FTI Consulting Inc. (FCN ).
Here are highlights from Friday’s Analyst Blog:
CF Falls Far Short of Estimates
Fertilizer company CF Industries Holdings Inc. (CF) net earnings more than halved to $105.1 million or $1.54 per share in the second quarter of 2010 compared with $213 million or $4.33 per share in the year-ago period. The recent acquisition of Terra Industries ("TRA") weighed on the earnings of CF. Excluding a one-time charge related to the acquisition, the company earned $2.51 per share, significantly down from the Zacks Consensus Estimate of $3.16.
CF’s topline jumped 32% year over year to $1.3 billion (including Terra’s net sales of $526.3 million). CF Industries recorded revenues of $780.7 million on a stand-alone basis falling short of the Zacks Consensus Estimate of $1.2 billion. Lower average nitrogen selling prices and phosphate volumes offset the benefits of higher average phosphate selling prices and nitrogen volumes.
ValueClick Beats Zacks Consensus ValueClick Inc.'s (VCLK) second-quarter 2010 results (both earnings and revenue) beat the Zacks Consensus Estimates, demonstrating the company’s focus on driving growth. Results were boosted by prudent cost controls.
Revenue, adjusted EBITDA and earnings per share exceeded the high end of management’s guided range provided last quarter. The company also provided encouraging third quarter 2010 guidance.
Operating Performance
Second quarter earnings per share from continuing operations (excluding amortization of intangibles but including stock-based compensation expense) of 17 cents surpassed the Zacks Consensus Estimate of 12 cents per share. Profit rose 6.3% from the year-ago level of 16 cents per share.
Earnings on a non-GAAP basis (excluding both amortization of intangibles and stock-based compensation expense) came in at 20 cents per share, above management’s guidance of 16 cents to 17 cents per share. This was also 1 cent above last year’s EPS of 19 cents. Better-than-expected earnings in the quarter were primarily due to reduction in operating expenses, partially offset by a decline in revenue.
Gross margin slightly decreased to 72.5% in the quarter from 72.9% in the year-ago quarter due to higher cost of sales, as a percentage of revenue.
Public Storage Tops Estimates
Public Storage (PSA), a real estate investment trust (REIT) operating self-storage facilities, reported second quarter 2010 FFO (funds from operations) of $0.92 per share, compared with $1.40 in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
The decrease in year-over-year FFO was primarily due to several non-recurring items, excluding which FFO for second quarter 2010 was $1.27 per share compared with $1.25 in the year-ago quarter. The second quarter 2010 FFO beats the Zacks Consensus Estimate by 7 cents.During the reported quarter, Public Storage recorded an increase in total revenue to $408.0 million from $406.5 million in the year-earlier quarter. Total revenues for the reported quarter were well ahead of the Zacks Consensus Estimate of $384 million.
Same-store revenues decreased 0.2% year over year to $354.4 million during the quarter, while net operating income declined 1.5% to $233.0 million. The decrease in same-store revenues was primarily due to a 1.5% dip in realized rent per occupied square foot, partially offset by a 1.1% increase in average occupancy.
Overall occupancy in the same-store portfolio was 91.0% at quarter-end versus 90.0% in the prior-year period. Realized annual rent per occupied square foot decreased from $12.51 in the year-earlier quarter to $12.32 in the reported quarter. Endo Beats, Revs In Line
Endo Pharmaceuticals Holdings Inc. (ENDP) posted second-quarter earnings of 81 cents per share, a penny above the Zacks Consensus Estimate. The current quarter earnings were 11% above the year-ago figure of 73 cents per share.
Quarterly Details
Quarterly revenues increased 6% year over year to $396.5 million, in line with the Zacks Consensus Estimate. Robust performance across its branded business segment assisted the increase in total revenues.
Revenues from the branded segment went up 8%, reflecting a strong growth in the sales of key pain, urology and oncology products.
Revenues from the generics business declined 9% mainly due to an unfavorable year over year comparison. In the second quarter of 2009, there was a shortage of certain generic pain treatment products, which led to higher sales of Endo Pharma’s generic drugs.
Research and development (R&D) expenses increased 4.4% year over year to $28.7 million. However, selling, general and administrative (SG&A) expenses declined only slightly during the quarter to $129.2 million.
The increase in R&D expenses was primarily driven by the progress of Endo Pharma’s pipeline products.
The company repurchased $21 million worth of shares during the second quarter and about $50 million worth during the six-month ended June 30.
FTI Consulting Matches Estimates
FTI Consulting Inc.'s (FCN ) second-quarter operating earnings of 52 cents per share were in line with the Zacks Consensus Estimate and below the year-ago performance of 69 cents. Operating net income fell 32.7% year-over-year to $25.1 million.
Adjusted EBITDA was $65.5 million or 18.8% of revenues, compared to $84.6 million or 23.5% of revenues in the prior-year quarter.
Results reflected uncertainty about the economic recovery as the financial market remains volatile, litigation-driven activities remain soft and visibility on future taxation and regulatory policies remains unclear. Moreover, softer trends in bankruptcy work and a slowdown in the Merger & Acquisition environment also dragged the results. Additionally, declining revenues from Corporate Finance and Technology segments hampered growth.
FTI Consulting’s total revenues declined 3.2% year-over-year to $349.0 million in line with the Zacks Consensus Estimate. Total revenue-generating headcount dropped to 2,548 from 2,572 in the year-ago period.
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VALUECLICK INC (VCLK): Free Stock Analysis Report
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