Today it was announced that industrial production in the U.S. declined last quarter for the first time since 2009. In addition, the dollar is rallying today. For EMR to be up today, is impressive, especially since EMR earlier warned that sales are slowing. Making sense of the gyrations of this stock, which often does the opposite of conventional thinking, is difficult.
Within the last week, large block sales of LGF have occurred. If LGF was set to announce a couple of quarters of good earnings, I believe these sales would have been postponed.
Now that EMR admitted sales are declining, the overpriced analyst community has finally projected that this years earnings will be below last years. What a joke. Had they figured this out six or three months ago and informed everyone, they might have deserved their pay. But to wait until the company speaks, and the stock price has declined, makes them less than irrelevant. They are a waste of money.
Perhaps a seven per cent decline in sales for the next quarter is actually better than an estimate for an eleven per cent decline that some may have been predicting.
EMR sales declined 10 per cent in Feb. The company is suggesting a 7 per cent decline in sales for the next quarter. Oil and the dollar are the culprits. 2015 will not be a stellar year for EMR.
Lionsgate should drop the word "Lionsgate" from its new"Premiere" motion pictures. They should just be labeled "Premier". Putting out B grade movies with "Lionsgate" in the title is bad policy. Viewers seeing these less than stellar "Lionsgate" movies will equate the brand as substandard. It's not too late to change this. If not changed, it will do damage to the "Lionsgate " brand.
Estimates for EMR's first quarter sales are for 5.60 billion, down from last years 5.81 billion. Estimates aren't looking any better for quarter two. The strong dollar and heavy sales to the oil patch are doing EMR no favors.