75.23 0.00 (0.00%)
After hours: 4:37PM EDT
|Bid||0.00 x 800|
|Ask||0.00 x 40000|
|Day's Range||74.94 - 75.53|
|52 Week Range||66.95 - 80.96|
|PE Ratio (TTM)||337.35|
|Expense Ratio (net)||0.14%|
Previously, we discussed Berkshire Hathaway’s (BRK.B) BNSF (Burlington Northern Santa Fe) Consumer Products segment. Now, we’ll assess the Industrial Products segment. In the second quarter, the segment’s revenues rose 16.3% YoY (year-over-year) to ~$1.5 billion from $1.2 billion in the same period last year.
In the previous part of this series, we looked at Expeditors International of Washington’s (EXPD) Ocean Freight and Ocean Services segment. Now we’ll evaluate the performance of its Customs Brokerage and Other Services segment. In the quarter, the segment’s gross revenue rose 32.6% to $625.7 million, from $471.8 million in Q2 2017.
MARKET PULSE Shares of General Electric Co. (ge) fell 1% in midday trade Friday, after Bloomberg reported the industrial conglomerate is preparing to sell its power-conversion business for a lot less than what it paid for it.
Canadian National Railway (CNI) reported a 2.0% YoY (year-over-year) carload traffic gain in Week 30. The railroad moved 64,000 railcars excluding intermodal units in the week, compared to 62,700 railcars in the same period of the previous year. CNI’s total combined rail freight traffic was up 1.0% YoY in Week 30, whereas the US railroad (XLI) companies posted a 3.0% YoY increase.
The US (IVV)(QQQ) employment data for July was released on August 3. The job additions in July reached only 157,000, lower than the expectations of 190,000 job additions. Business and professional services gained 51,000 jobs, and the manufacturing (XLI)(CARZ) sector added a healthy 37,000 jobs.
On August 7, Canadian National Railway (CNI) closed at $88.31 on the NYSE. The stock’s 52-week high was $90.57, which was also a new all-time high. Among all Class I railroad companies, CNI has the highest investment by percentage in growth-driven capex.
In Week 30, Western US major railroad Union Pacific (UNP) witnessed 2.3% YoY (year-over-year) carload traffic growth. The railroad moved ~98,100 railcars excluding intermodal units in the week compared to ~95,900 in the corresponding week of 2017.
The second-quarter earnings releases of major US railroad companies concluded with Genesee & Wyoming’s (GWR) earnings results, which it released on July 27. A quick look into these companies’ earnings reveals a vivid YoY (year-over-year) rise in rail freight volumes. For railroad companies, top line growth is primarily driven by volumes and pricing gains.
The Dow Jones Industrial Average climbed over 150 points to start Tuesday's market session as construction and mining equipment manufacturer Caterpillar led the way, gaining 2.5%. Despite facing challenges related to the tariff battle between the United States and China, Caterpillar increased its adjusted earnings per share forecast to a range of $11 to $12 from $10.25 to $11.25--adjusted profit range of $6.6 billion to $7.2 billion. Industrial ETFs rose on Caterpillar's gain, such as Fidelity MSCI Industrials ETF (FIDU) --up 0.66%, Vanguard Industrials ETF (VIS) --up 0.71% and Industrial Select Sector SPDR ETF (XLI) --up 0.74%.
On August 3, Illinois Tool Works (ITW) announced that its board authorized a 28% increase to its quarterly cash dividend—an increase of $0.22 per share or $0.88 per share annually. As a result, the new quarterly dividend rate will reflect $1.00 per share or $4.00 per year. The new rate will be effective for the next dividend that’s expected to be paid on October 9. Based on the current stock price, Illinois Tool Works’ forward dividend yield would be ~2.86%.
Machinery stocks haven't had it easy lately, between earnings reports and ongoing worries that a trade war will hit their profits. It's been a tough year for industrial stocks, due to downbeat earnings, as well as ongoing trade worries (among other problems), even with a $12 billion proposal to alleviate farmers' pain. Melius Research's Rob Wertheimer has argued previously that the worst of machinery's pain is over, and on Thursday he doubled down on that thesis, upgrading the industry to Positive.
In this final article in the series, we’ll turn to analysts polled by Thomson Reuters for their recommendations on United Parcel Service (UPS) after its second-quarter results. Of the 27 analysts covering UPS, six analysts (22.2%) recommended a “strong buy” for UPS stock.
What Will Financial Markets Look for in July's Jobs Report? For the first half of the year, the job growth has averaged 215,000—compared to 182,000 during the same period last year. The job growth in June was broad-based with the private sector adding 202,000 jobs and governments adding 11,000.
In the previous part, we assessed United Parcel Service’s (UPS) US Domestic Package segment. Here, we’ll review the parcel delivery giant’s International Package segment’s performance in the second quarter.
The world’s largest express courier service provider, United Parcel Service (UPS) announced its second-quarter results on July 25. The logistics giant surpassed Thomson Reuters–surveyed analysts’ adjusted earnings estimate of $1.93 by $0.01.
With an eye on the huge after-sale market, Boeing (BA) created the Global Services segment out of two existing verticals last year. In the second quarter, the company’s Global Services revenue was $4.0 billion, up 15% from $3.5 billion in the same period last year. The segment’s share in Boeing’s second-quarter revenue rose 160 basis points to 17% from 15.4% in the second quarter of 2017.
Norfolk Southern (NSC), a prominent Eastern US railroad, announced an 11% rise in its quarterly cash dividend on July 27. The first increase was in the first quarter when it raised its quarterly cash dividend by 18%. The increased cash dividend is payable on September 10 to stockholders of record on August 6.
Boeing’s (BA) total revenue in the second quarter was $24.2 billion, up 6.7% from $22.7 billion in the same period last year. Higher deliveries in the Commercial Airplanes segment along with increased volumes in the Defense and Global Services segments drove the company’s second-quarter revenue higher. Boeing operates in three reportable divisions: the Commercial Airplanes segment, the Defense, Space & Security segment, and the Global Services segment.
Caterpillar (CAT) reported revenue of $14.01 billion for Q2 2018 today, reflecting growth of 23.7% over Q2 2017. The company easily beat Wall Street analysts’ estimate of $13.88 billion. Continued demand across its primary reporting sector resulted in a higher sales volume, and favorable foreign currency on the back of the strong euro and Chinese yuan drove CAT’s overall revenue growth. Resource Industries recorded the highest revenue growth at 38%, followed by Construction Industries at 24% and Energy & Transportation at 20%.
Caterpillar (CAT) is expected to post adjusted EPS of $2.73 in the second quarter, a rise of 83.2% compared to the corresponding quarter of the previous year. CAT’s projected adjusted EPS growth is expected to be driven by higher revenue growth, benefits from restructuring costs (which would be reflected in its operating expenses), and share buybacks. Similarly, CAT’s cost of goods sold (or COGS) as a percentage of its sales is also expected to fall.
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close.
3M (MMM) reported revenues of $8.39 billion in Q2 2018, an increase of 7.4% on a year-over-year basis. In 2Q 2017, 3M reported revenue of $7.81 billion. 3M revenues managed to beat the Wall Street analysts’ estimate of $8.37 billion. 3M’s revenue has grown at a compound annual growth rate (or CAGR) of 1.6% for the second quarter since 2013.
JP Morgan's Marko Kolanovic sees a rotation out of growth and into value. With CNBC's Phil LeBeau and Scott Wapner, and the Fast Money traders, Pete Najarian, Karen Finerman, Steve Grasso and Guy Adami.