dividends paid
ACI WORLDWIDE $22.65 (Nasdaq symbol ACIW; TSINetwork Rating: Speculative) (402- 390-7600; www.tsainc.com; Shares outstanding: 117.8 million; Market cap: $2.7 billion; No dividends paid) reported revenue of $265.8 million in the three months ended June 30, 2015, up 4.3% from $254.8 million a year earlier. The company earned $0.26 a share, up sharply from $0.12. Cost-cutting measures helped improve the latest quarterly results. ACI’s growth by acquisition has increased its goodwill and intangible assets to $1.0 billion, or a high 37.0% of its market cap. The company is well positioned to benefit from the global shift toward online payments. However, the stock trades at a high 30.2 times ACI’s forecast 2015 earnings of $0.75 a share. Any major problems integrating its acquisitions could sharply cut that estimate....
MITEL NETWORKS $10.41 (Toronto symbol MNW; TSINetwork Rating: Extra Risk) (613-592-2122; www.mitel.ca; Shares outstanding: 120.0 million; Market cap: $1.2 billion; No dividends paid) develops and markets products centred on business telephone systems, including technology that integrates land lines and mobile phones. The company also offers call centre and videoconferencing products. In the three months ended June 30, 2015, Mitel’s revenue rose slightly, to $292.3 million from $291.7 million a year earlier (all figures except share price and market cap in U.S. dollars). Earnings per share fell 14.3%, to $0.18 from $0.21, as the stronger dollar lowered the value of the company’s international sales. However, the latest earnings matched the consensus estimate....
CHESAPEAKE ENERGY $7.34 (New York symbol CHK; TSINetwork Rating: Extra Risk) (405-848-8000; www.chk.com; Shares outstanding: 665.1 million; Market cap: $5.2 billion; No dividends paid) has eliminated its dividend to conserve cash in the face of low oil and gas prices. The company had been paying a quarterly dividend of $0.0875 a share. The cut will save it $240 million a year. As well, Chesapeake will spend $3.5 billion to $4.0 billion on exploration and development in 2015, down from its earlier estimate of $4.0 billion to $5.0 billion. It spent $5.8 billion in 2014. The stock now trades at just 1.3 times the company’s annual cash flow of $5.52 a share, based on the latest quarter....
AIMIA INC. $12.27 (Toronto symbol AIM; TSINetwork Rating: Extra Risk) (514-897-6800; www.aimia.com; Shares outstanding: 160.8 million; Market cap: $2.0 billion; Dividend yield: 6.2%) has announced that its members can now earn and redeem points for travel on Brazilian airline Avianca. This brings Aeroplan’s total number of airline partners to 34. Avianca offers 200 daily flights to 23 cities throughout Brazil, operating from its main hub at São Paulo-Guarulhos International Airport. Aimia is a buy....
TERADATA CORP. $29 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 141.6 million; Market cap: $4.1 billion; Price-to-sales ratio: 1.5; No dividends paid; TSINetwork Rating: Average; www.teradata.com) makes computers and software that capture and store large amounts of a business’s data. It then analyzes this information and identifies buying habits and other trends.
In the second quarter of 2015, Teradata’s earnings fell 33.3%, to $76 million from $114 million a year earlier. Per-share profits declined 26.4%, to $0.53 from $0.72, on fewer shares outstanding. Revenue slipped 7.8%, to $623 million from $676 million.
Strong competition from bigger firms like IBM and Oracle, as well as cloud-based analytics services, continue to hurt Teradata’s earnings. That’s why the stock trades at just 12.3 times the $2.35 a share the company will probably earn in 2015.
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In the second quarter of 2015, Teradata’s earnings fell 33.3%, to $76 million from $114 million a year earlier. Per-share profits declined 26.4%, to $0.53 from $0.72, on fewer shares outstanding. Revenue slipped 7.8%, to $623 million from $676 million.
Strong competition from bigger firms like IBM and Oracle, as well as cloud-based analytics services, continue to hurt Teradata’s earnings. That’s why the stock trades at just 12.3 times the $2.35 a share the company will probably earn in 2015.
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NCR CORP. $24 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 169.8 million; Market cap: $4.1 billion; Price-to-sales ratio: 0.6; No dividends paid; TSINetwork Rating: Average; www.ncr.com) makes automated teller machines, cash registers, self-serve checkouts and kiosks. The company set up Teradata (see right) as a separate firm in October 2007. It’s now conducting a strategic review, which could lead to more divisions being sold or spun off.
Meanwhile, NCR lost $344 million, or $2.03 a share, in the three months ended June 30, 2015. A year earlier, it earned $90 million, or $0.53 a share.
The loss mainly came from a one-time charge stemming from NCR’s transfer of an underfunded U.K. pension plan to an insurance company. Without unusual items, it earned $0.66 a share in the latest quarter, down 2.9% from $0.68.
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Meanwhile, NCR lost $344 million, or $2.03 a share, in the three months ended June 30, 2015. A year earlier, it earned $90 million, or $0.53 a share.
The loss mainly came from a one-time charge stemming from NCR’s transfer of an underfunded U.K. pension plan to an insurance company. Without unusual items, it earned $0.66 a share in the latest quarter, down 2.9% from $0.68.
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KEYSIGHT TECHNOLOGIES INC. $31 (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 169.0 million; Market cap: $5.2 billion; Price-to-sales ratio: 1.8; No dividends paid; TSINetwork Rating: Average; www.keysight.com) makes equipment for testing electronics. Clients include makers of computer chips (44% of total revenue) and communications gear (33%), as well as aerospace and defence firms (23%).
In its fiscal 2015 third quarter, which ended July 31, 2015, the company’s revenue fell 12.2%, to $665 million from $757 million a year earlier. Excluding unusual items, earnings declined 29.3%, to $94 million, or $0.55 a share, from $133 million, or $0.80. It spends 14% of its revenue on research.
As of July 31, 2015, Keysight held cash of $1.0 billion, or $5.92 a share. Its long-term debt of $1.1 billion is equal to 21% of its market cap. In August 2015, the company used $600 million of its cash to buy U.K.-based Anite, a software maker whose products will make Keysight’s testing equipment for wireless handsets perform better.
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In its fiscal 2015 third quarter, which ended July 31, 2015, the company’s revenue fell 12.2%, to $665 million from $757 million a year earlier. Excluding unusual items, earnings declined 29.3%, to $94 million, or $0.55 a share, from $133 million, or $0.80. It spends 14% of its revenue on research.
As of July 31, 2015, Keysight held cash of $1.0 billion, or $5.92 a share. Its long-term debt of $1.1 billion is equal to 21% of its market cap. In August 2015, the company used $600 million of its cash to buy U.K.-based Anite, a software maker whose products will make Keysight’s testing equipment for wireless handsets perform better.
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TEMPUR SEALY $78.04 (New York symbol TPX; TSINetwork Rating: Speculative) (800-878-8889; www.tempursealy.com; Shares outstanding: 61.9 million; Market cap: $4.8 billion; No dividends paid) has been forced to make changes to its management and board of directors after activist investor H Partners Management, which holds 10% of Tempur Sealy’s shares, won the support of enough investors at the company’s May 8, 2015, annual meeting.
H Partners believes Tempur Sealy has performed poorly compared to other mattress makers since it acquired rival Sealy in March 2013.
After the meeting, chief executive officer Marc Sarvaray, chairman P. Andrews McLane and board director Christopher Mastro resigned. H Partners executive Usman Nabi took Mastro’s spot on the board. Timothy Yaggi, Tempur Sealy’s current chief operating officer, became interim CEO as a search committee made up of Nabi and three independent directors looks for a replacement for Sarvaray. Board member Frank Doyle became chairman.
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H Partners believes Tempur Sealy has performed poorly compared to other mattress makers since it acquired rival Sealy in March 2013.
After the meeting, chief executive officer Marc Sarvaray, chairman P. Andrews McLane and board director Christopher Mastro resigned. H Partners executive Usman Nabi took Mastro’s spot on the board. Timothy Yaggi, Tempur Sealy’s current chief operating officer, became interim CEO as a search committee made up of Nabi and three independent directors looks for a replacement for Sarvaray. Board member Frank Doyle became chairman.
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CHESAPEAKE ENERGY $7.34 (New York symbol CHK; TSINetwork Rating: Extra Risk) (405-848-8000; www.chk.com; Shares outstanding: 665.1 million; Market cap: $5.2 billion; No dividends paid) has eliminated its dividend to conserve cash in the face of low oil and gas prices. The company had been paying a quarterly dividend of $0.0875 a share. The cut will save it $240 million a year.
As well, Chesapeake will spend $3.5 billion to $4.0 billion on exploration and development in 2015, down from its earlier estimate of $4.0 billion to $5.0 billion. It spent $5.8 billion in 2014.
The stock now trades at just 1.3 times the company’s annual cash flow of $5.52 a share, based on the latest quarter.
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As well, Chesapeake will spend $3.5 billion to $4.0 billion on exploration and development in 2015, down from its earlier estimate of $4.0 billion to $5.0 billion. It spent $5.8 billion in 2014.
The stock now trades at just 1.3 times the company’s annual cash flow of $5.52 a share, based on the latest quarter.
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MITEL NETWORKS $10.41 (Toronto symbol MNW; TSINetwork Rating: Extra Risk)(613-592-2122; www.mitel.ca; Shares outstanding: 120.0 million; Market cap: $1.2 billion; No dividends paid) develops and markets products centred on business telephone systems, including technology that integrates land lines and mobile phones. The company also offers call centre and videoconferencing products.
In the three months ended June 30, 2015, Mitel’s revenue rose slightly, to $292.3 million from $291.7 million a year earlier (all figures except share price and market cap in U.S. dollars).
Earnings per share fell 14.3%, to $0.18 from $0.21, as the stronger dollar lowered the value of the company’s international sales. However, the latest earnings matched the consensus estimate.
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In the three months ended June 30, 2015, Mitel’s revenue rose slightly, to $292.3 million from $291.7 million a year earlier (all figures except share price and market cap in U.S. dollars).
Earnings per share fell 14.3%, to $0.18 from $0.21, as the stronger dollar lowered the value of the company’s international sales. However, the latest earnings matched the consensus estimate.
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