dividends paid
SYMANTEC CORP. $15.03 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (1-408-517-8000; www.symantec.com; Shares outstanding: 729.4 million; Market cap: $11.0 billion; No dividends paid) makes computersecurity software, including the popular Norton antivirus program. It also sells products and services for email filtering, data backup and other business-related uses. In addition, Symantec offers data-archiving software that helps its clients meet increasingly strict regulatory and compliance standards.
In the three months ended March 31, 2012, Symantec’s earnings per share excluding one-time items were unchanged at $0.38. That matched the consensus estimate. Sales rose slightly, to $1.68 billion from $1.67 billion. The company gets 52% of its sales from outside North America.
The main reason for the flat results was that the company is selling more of its products as ongoing subscriptions instead of one-time purchases. That gives Symantec steadier revenue streams but lower upfront sales. Sales of data-storage products are also down, mainly because the company completed several big contracts in the year-earlier quarter.
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In the three months ended March 31, 2012, Symantec’s earnings per share excluding one-time items were unchanged at $0.38. That matched the consensus estimate. Sales rose slightly, to $1.68 billion from $1.67 billion. The company gets 52% of its sales from outside North America.
The main reason for the flat results was that the company is selling more of its products as ongoing subscriptions instead of one-time purchases. That gives Symantec steadier revenue streams but lower upfront sales. Sales of data-storage products are also down, mainly because the company completed several big contracts in the year-earlier quarter.
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ACI WORLDWIDE $40.01 (Nasdaq symbol ACIW; TSINetwork Rating: Speculative) (402-334-5101; www.tsainc.com; Shares outstanding: 39.8 million; Market cap: $1.6 billion; No dividends paid) makes software that is used to process transactions involving credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank payments.
In mid-February 2012, ACI completed its purchase of S1 Corp. for $540 million in cash and stock. This acquisition is a good fit: S1 sells transaction software for banks, credit unions, retailers and other payment processors. It has over 3,000 clients worldwide.
In the first quarter of 2012, ACI’s revenue rose 31.6%, to $137.6 million from $104.5 million a year earlier. The gain was largely due to S1’s $22.5-million contribution. Without acquisition-related costs, earnings per share rose sharply, to $0.28 from $0.05.
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In mid-February 2012, ACI completed its purchase of S1 Corp. for $540 million in cash and stock. This acquisition is a good fit: S1 sells transaction software for banks, credit unions, retailers and other payment processors. It has over 3,000 clients worldwide.
In the first quarter of 2012, ACI’s revenue rose 31.6%, to $137.6 million from $104.5 million a year earlier. The gain was largely due to S1’s $22.5-million contribution. Without acquisition-related costs, earnings per share rose sharply, to $0.28 from $0.05.
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Intel and Nvidia have thrived as a result of the rapid growth of personal computers in the past two decades. Both companies now aim to duplicate that success with new chips for smartphones and tablet computers. INTEL CORP. $28 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.0 billion; Market cap: $140.0 billion; Price-to-sales ratio: 2.5; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.intel.com) is the world’s largest computer chip maker. About 80% of all computers use the company’s chips. In the first quarter of 2012, Intel’s revenue rose 0.5%, to $12.9 billion from $12.8 billion a year earlier. Recent flooding in Thailand caused a hard drive shortage that hurt computer sales. That cut demand for Intel’s chips and caused a 2.0% sales decline at the company’s PC Client Group (which supplies two-thirds of its total revenue). However, software sales jumped 137.9% following last year’s purchase of antivirus software specialist McAfee....
PRECISION DRILLING CORP. $8.91 (Toronto symbol PD; Aggressive Growth Portfolio, Resource sector; Shares outstanding: 276.1 million; Market cap: $2.5 billion; Price-to-sales ratio: 1.3; No dividends paid since February 2009; TSINetwork Rating: Extra Risk; www.precisiondrilling.com)
provides contract drilling services to land-based oil and gas producers, mainly in North America. It had 337 rigs in service at the end of 2011.
The company continues to gain as oil producers step up their drilling activity to take advantage of rising oil prices. In 2011, Precision’s revenue rose 36.5%, to $1.95 billion from $1.4 billion in 2010. Earnings soared 344.4%, to $193.5 million, or $0.67 a share, from $43.5 million, or $0.15 a share.
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provides contract drilling services to land-based oil and gas producers, mainly in North America. It had 337 rigs in service at the end of 2011.
The company continues to gain as oil producers step up their drilling activity to take advantage of rising oil prices. In 2011, Precision’s revenue rose 36.5%, to $1.95 billion from $1.4 billion in 2010. Earnings soared 344.4%, to $193.5 million, or $0.67 a share, from $43.5 million, or $0.15 a share.
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DUNDEE CORP. $24 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 55.0 million; Market cap: $1.3 billion; Price-to-sales ratio: 6.6; No dividends paid; TSINetwork Rating: Average; www.dundeecorp.com) is a holding company with subsidiaries in wealth management, real estate, resources and agriculture.
Dundee is riskier than the big five banks. That’s because sales of individual investments can have a big impact on its earnings. For example, in 2011, it recorded an $870.8-million gain on the sale of subsidiary DundeeWealth. Without that gain, Dundee’s earnings fell 13.1%, to $173.2 million from $199.3 million in 2010. Earnings per share rose 5.9%, to $2.17 from $2.05, on fewer shares outstanding. Revenue fell 15.7%, to $574.0 million from $680.8 million.
Dundee is still a buy.
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Dundee is riskier than the big five banks. That’s because sales of individual investments can have a big impact on its earnings. For example, in 2011, it recorded an $870.8-million gain on the sale of subsidiary DundeeWealth. Without that gain, Dundee’s earnings fell 13.1%, to $173.2 million from $199.3 million in 2010. Earnings per share rose 5.9%, to $2.17 from $2.05, on fewer shares outstanding. Revenue fell 15.7%, to $574.0 million from $680.8 million.
Dundee is still a buy.
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NISSAN MOTOR CO. (ADR) $20.45 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissanmotors.com; Shares outstanding: 2.3 billion; Market cap: $47.0 billion; No dividends paid) reported record U.S. sales in March. Overall, the company sold 136,317 cars and trucks in the U.S. during the month. That’s up 12.5% from 121,141 vehicles in March 2011. The Nissan division’s sales jumped 14.8%, to a record 126,132 vehicles. Infiniti sales rose 9.8%, to 10,185 vehicles....
DOREL INDUSTRIES $29.34 (Toronto symbol DII.B; TSINetwork Rating: Extra Risk) (514-731-0000; www.dorel.com; Shares outstanding: 32.6 million; Market cap: $956.5 million; Dividend yield: 2.0%) makes a wide range of products, including ready-to-assemble home and office furniture; juvenile products, such as car seats, strollers, high chairs, toddler beds and cribs; recreational products, including bicycles; and home furnishings. It has 5,000 employees and plants in 22 countries. In the three months ended December 31, 2011, Dorel’s sales rose 4.1%, to $561.6 million from $539.5 million a year earlier (all figures except share price in U.S. dollars). Revenue at the company’s home furnishings division rose 22.8% on higher sales to U.S. retailers. That offset weaker revenue at the other divisions. Earnings per share rose 7.6%, to $0.85 from $0.79 a year earlier....
AMAZON.COM $191.07 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk) (206-266-1000; www.amazon.com; Shares outstanding: 455.1 million; Market cap: $87.0 billion; No dividends paid) has agreed to buy Kiva Systems for $775 million. Kiva makes small orange robots that help manage warehouse inventory. Amazon’s shipping volumes continue to rise. In response, the company plans to add 17 more warehouses, bringing its total to 69. The Kiva purchase will let Amazon better control its labour costs. Amazon can also sell the robots to other retailers. Kiva’s clients already include the Gap, Staples and Saks....
Long-time readers know that we are constantly reevaluating our stock picks. Here are three stocks that have only limited growth prospects for the foreseeable future. We now see them as sells. CASH STORE FINANCIAL SERVICES INC. $5.52 (Toronto symbol CSF; TSINetwork Rating: Speculative) (780-408-5110; www.csfinancial.ca; Shares outstanding: 17.4 million; Market cap: $96.0 million; Dividend yield: 8.7%) operates 573 stores under two banners: The Cash Store and Instaloans. Both chains offer consumer payday loans (advances on upcoming paycheques). The company faces increasing regulations in the payday loan industry. It has also been forced to pay a number of penalties, the latest being a March 2012 order from the B.C. government to refund its customers millions of dollars in overpaid interest and extra charges. These transactions date back to 2009....
ADOBE SYSTEMS $33.39 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536 -6000; www.adobe.com; Shares outstanding: 496.1 million; Market cap: $16.6 billion; No dividends paid) reports that in its fiscal 2012 first quarter, which ended March 2, 2012, its earnings fell 21.1%, to $185.2 million, or $0.37 a share. A year earlier, it earned $234.6 million, or $0.46 a share. Without unusual items, earnings per share fell 1.7%, to $0.57 from $0.58. Sales rose 1.7%, to $1.05 billion from $1.03 billion. Customers are waiting for the new version of Adobe’s Creative Suite of publishing programs, which it will release later this year. That was the main reason for the lower earnings and weak sales growth. The stock trades at 13.8 times the $2.42 a share that Adobe will probably earn in fiscal 2012. The company also holds cash and investments of $2.8 billion, or $5.53 a share. Its long-term debt of $1.5 billion is just 9% of its market cap....