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Thursday, April 30, 2009

XOM, PG, ESRX

S&P 500: -0.89 (-0.10%)


Exxon Mobil (XOM) -2.56%
Exxon missed earnings estimates as a result of sharply lower oil and gas prices as well as lower refining profits. The results were pretty much on par with other oil majors that have reported to this point.

What’s encouraging is Exxon’s superior balance sheet allowed them to increase spending on capital and exploration projects by 5 percent year-over-year. In addition, the company plans to spend $5 billion on share buybacks in the second quarter, which is down from $7 billion in the first quarter but still far more than its competitors.


Procter & Gamble (PG) -1.94%
P&G’s revenue fell 8 percent year-over-year to $18.4 billion, just shy of consensus estimates. Foreign exchange impact weighed on revenue, but organic sales were up 6 percent reflecting a 6 percent net benefit from pricing and mix, which offset lower volume.

Operating margins improved 30 basis points for the quarter as lower SG&A expenses more than offset a commodity cost-driven decline in gross margin.

Consumer goods makers have been hurt as retailers trim inventories and consumers trade down to less-expensive store brands. P&G is more exposed to such private labels and cuts to discretionary spending than some of its rivals.


Express Scripts (ESRX) +5.82%
Express Scripts reported better-than-expected earnings and issued an in-line earnings outlook for the full year.


Quick Hits

Peter Lazaroff, Junior Analyst

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