price to sales ratio
BRIGGS & STRATTON CORP. $18 (New York symbol BGG; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 49.8 million; Market cap: $896.4 million; Price-to-sales ratio: 0.4; Dividend yield: 2.4%; TSINetwork Rating: Above Average; www.briggsandstratton.com) is closing plants in Tennessee and the Czech Republic due to declining sales of lawn mowers and snow blowers. It will shift some the production from these plants to other facilities in the U.S. The company expects to complete these closures by May 2012.
These moves will cost Briggs between $50 million and $55 million. To put that in context, it earned $63.2 million, or $0.48 a share, in the fiscal year ended June 30, 2011. However, the closures should cut Briggs’ yearly costs by $18 million to $20 million.
Briggs & Stratton is a hold.
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These moves will cost Briggs between $50 million and $55 million. To put that in context, it earned $63.2 million, or $0.48 a share, in the fiscal year ended June 30, 2011. However, the closures should cut Briggs’ yearly costs by $18 million to $20 million.
Briggs & Stratton is a hold.
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FRONTIER COMMUNICATIONS CORP. $4.59 (Nasdaq symbol FTR; Income Portfolio, Utilities sector; Shares outstanding: 995.1 million; Market cap: $4.6 billion; Price-to-sales ratio: 0.9; Dividend yield: 8.7%; TSINetwork Rating: Average; www.frontier.com) sells telephone, high-speed Internet and video services to 5.3 million customers in 27 states.
The company has cut its quarterly dividend by 46.7%, to $0.10 a share from $0.1875. The new annual rate of $0.40 yields 8.7%. The cut should free up cash that Frontier can use to lower its $8.2-billion long-term debt, which is a high 1.8 times its market cap. It also needs to keep investing in its network upgrades.
Frontier is still a hold.
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The company has cut its quarterly dividend by 46.7%, to $0.10 a share from $0.1875. The new annual rate of $0.40 yields 8.7%. The cut should free up cash that Frontier can use to lower its $8.2-billion long-term debt, which is a high 1.8 times its market cap. It also needs to keep investing in its network upgrades.
Frontier is still a hold.
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VERIZON COMMUNICATIONS INC. $38 (New York symbol VZ, Conservative Growth Portfolio, Utilities sector; Shares outstanding: 2.8 billion; Market cap: $106.4 billion; Price-to-sales ratio: 1.0; Dividend yield: 5.3%; TSINetwork Rating: Average; www.verizon.com) is the largest provider of wireless
services in the U.S., with 108.7 million subscribers. Wireless accounts for 63% of its revenue. It also has 24.1 million phone and Internet customers.
In 2011, Verizon added 6.3 million new wireless subscribers (net of deactivations) and 278,000 new high-speed Internet customers. These gains offset the loss of 1.9 million phone customers.
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services in the U.S., with 108.7 million subscribers. Wireless accounts for 63% of its revenue. It also has 24.1 million phone and Internet customers.
In 2011, Verizon added 6.3 million new wireless subscribers (net of deactivations) and 278,000 new high-speed Internet customers. These gains offset the loss of 1.9 million phone customers.
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AT&T INC. $30 (New York symbol T; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 5.9 billion; Market cap: $177.0 billion; Price-to-sales ratio: 1.4; Dividend yield: 5.9%; TSINetwork Rating: Average; www.att.com) gets 50% of its revenue from its 103.2 million wireless customers. The other 50% mainly comes from its 39.0 million telephone clients and 16.4 million high-speed Internet users.
The company recently cancelled its plan to buy rival wireless carrier T-Mobile from Germany’s Deutsche Telekom AG; AT&T felt that competition regulators would have blocked the deal.
As a result, AT&T will pay Deutsche Telekom a $4-billion breakup fee, consisting of $3 billion in cash and $1 billion of wireless spectrum. That’s partly why AT&T’s earnings fell 80.1% in 2011, to $3.9 billion, or $0.66 a share. In 2010, it earned $19.9 billion, or $3.35 a share. Without unusual items, earnings per share would have fallen 3.9%, to $2.20 from $2.29.
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The company recently cancelled its plan to buy rival wireless carrier T-Mobile from Germany’s Deutsche Telekom AG; AT&T felt that competition regulators would have blocked the deal.
As a result, AT&T will pay Deutsche Telekom a $4-billion breakup fee, consisting of $3 billion in cash and $1 billion of wireless spectrum. That’s partly why AT&T’s earnings fell 80.1% in 2011, to $3.9 billion, or $0.66 a share. In 2010, it earned $19.9 billion, or $3.35 a share. Without unusual items, earnings per share would have fallen 3.9%, to $2.20 from $2.29.
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APACHE CORP. $110 (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 384.0 million; Market cap: $42.2 billion; Price-to-sales ratio: 2.5; Dividend yield: 0.6%; TSINetwork Rating: Average; www.apachecorp.com) saw its revenue rise 39.7% in 2011, to $16.9 billion from $12.1 billion in 2010, due to higher oil prices and a 13.8% production increase. Earnings jumped 46.6%, to $4.7 billion from $3.2 billion.
Earnings per share rose 32.3%, to $11.83 from $8.94, on more shares outstanding. Apache also raised its dividend by 13.3%. The new annual rate of $0.68 yields 0.6%.
Apache is a buy.
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Earnings per share rose 32.3%, to $11.83 from $8.94, on more shares outstanding. Apache also raised its dividend by 13.3%. The new annual rate of $0.68 yields 0.6%.
Apache is a buy.
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AGILENT TECHNOLOGIES INC. $43 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 347.5 million; Market cap: $14.9 billion; Price-to-sales ratio: 2.2; Dividend yield: 0.9%; TSINetwork Rating: Average; www.agilent.com) makes testing systems that improve electronic products, such as cellphones. It also makes medical equipment that detects and measures substances in blood and other patient samples.
Agilent was a subsidiary of Hewlett-Packard Co. until 1999, when Hewlett spun it off as a separate company.
In its 2012 first quarter, which ended January 31, 2012, Agilent’s revenue rose 7.6%, to $1.64 billion from $1.5 billion a year earlier. Strong gains from its life sciences division offset weaker demand for testing equipment. Agilent received $1.6 billion of new orders in the quarter, unchanged from a year ago.
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Agilent was a subsidiary of Hewlett-Packard Co. until 1999, when Hewlett spun it off as a separate company.
In its 2012 first quarter, which ended January 31, 2012, Agilent’s revenue rose 7.6%, to $1.64 billion from $1.5 billion a year earlier. Strong gains from its life sciences division offset weaker demand for testing equipment. Agilent received $1.6 billion of new orders in the quarter, unchanged from a year ago.
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MOTOROLA SOLUTIONS INC. $50 (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 325.5 million; Market cap: $16.3 billion; Price-to-sales ratio: 1.9; Dividend yield: 1.8%; TSINetwork Rating: Average; www.motorolasolutions.com) took its current form on January 4, 2011, following the breakup of the old Motorola Inc. The company makes specialized equipment, including bar-code scanners and radios for emergency vehicles. Governments supply 65% of its revenue; the remaining 35% comes from businesses.
In 2011, Motorola Solutions earned $888 million, or $2.61 a share. That’s up 42.5% from $623 million, or $1.84 a share, in 2010. These figures exclude several unusual items, mainly costs related to the spinoff from Motorola Inc. Sales rose 7.7%, to $8.2 billion from $7.6 billion.
The company’s sales will likely rise by just 5% in 2012, due to slowing demand for its current wireless networking equipment and government budget cuts. However, Motorola Solutions continues to devote nearly 13% of its sales to research. This is helping it develop new products that take advantage of faster wireless technologies.
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In 2011, Motorola Solutions earned $888 million, or $2.61 a share. That’s up 42.5% from $623 million, or $1.84 a share, in 2010. These figures exclude several unusual items, mainly costs related to the spinoff from Motorola Inc. Sales rose 7.7%, to $8.2 billion from $7.6 billion.
The company’s sales will likely rise by just 5% in 2012, due to slowing demand for its current wireless networking equipment and government budget cuts. However, Motorola Solutions continues to devote nearly 13% of its sales to research. This is helping it develop new products that take advantage of faster wireless technologies.
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SNAP-ON INC. $61 (New York symbol SNA; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 58.4 million; Market cap: $3.6 billion; Price-to-sales ratio: 1.3; Dividend yield: 2.2%; TSINetwork Rating: Average; www.snapon.com) makes tools for auto mechanics. That puts the company in a great position to gain from rising car sales. Snap-On sells its products through a fleet of franchised vans that visit garages. It also makes specialized tools for mining companies, electrical power utilities and other industrial customers.
Snap-On’s revenue rose 11.1% in 2011, to $3.0 billion from $2.7 billion in 2010. Earnings rose 42.2%, to $265.2 million, or $4.52 a share, from $186.5 million, or $3.19 a share.
The company will spend $60 million to $70 million to expand and upgrade its operations in 2012. It’s particularly interested in growing in developing countries. Right now, it gets 59% of its revenue from North America.
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Snap-On’s revenue rose 11.1% in 2011, to $3.0 billion from $2.7 billion in 2010. Earnings rose 42.2%, to $265.2 million, or $4.52 a share, from $186.5 million, or $3.19 a share.
The company will spend $60 million to $70 million to expand and upgrade its operations in 2012. It’s particularly interested in growing in developing countries. Right now, it gets 59% of its revenue from North America.
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FORD MOTOR CO. $12 (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 3.8 billion; Market cap: $45.6 billion; Price-to-sales ratio: 0.4; Dividend yield: 1.7%; TSINetwork Rating: Extra Risk; www.ford.com) is the second-biggest carmaker in the U.S., and the world’s fifth-largest.
The company continues to benefit from its restructuring plan, which it implemented in 2005 to deal with its falling sales and market share. In the years since, Ford has sold its Jaguar and Land Rover luxury car divisions, closed factories and laid off workers.
In 2011, the company sold 5.7 million vehicles, up 7.2% from 5.3 million in 2010. Sales rose 11.3% in North America, 7.5% in Asia, 3.5% in South America and 1.8% in Europe. Ford now accounts for 16.5% of all car sales in the U.S., up from 16.4% in 2010. It also has 8.3% of the European market, down from 8.4% in 2010.
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The company continues to benefit from its restructuring plan, which it implemented in 2005 to deal with its falling sales and market share. In the years since, Ford has sold its Jaguar and Land Rover luxury car divisions, closed factories and laid off workers.
In 2011, the company sold 5.7 million vehicles, up 7.2% from 5.3 million in 2010. Sales rose 11.3% in North America, 7.5% in Asia, 3.5% in South America and 1.8% in Europe. Ford now accounts for 16.5% of all car sales in the U.S., up from 16.4% in 2010. It also has 8.3% of the European market, down from 8.4% in 2010.
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HONDA MOTOR CO. LTD. ADRs $37 (New York symbol HMC; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.8 billion; Market cap: $66.6 billion; Price-to-sales ratio: 0.7; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.honda.com) is Japan’s second-largest carmaker, and the world’s largest motorcycle manufacturer.
Like Toyota, Honda has suffered setbacks due to the natural disasters in Japan and Thailand. In Honda’s fiscal 2012 third quarter, which ended December 31, 2011, its sales fell 3.5%, to $25.0 billion from $25.9 billion a year earlier. Honda sold 830,000 cars and trucks in the quarter, down 2.9% from 855,000 a year earlier. However, motorcycle sales rose 6.3%, to 3.1 million from 2.9 million.
Earnings fell 38.4%, to $613 million, or $0.34 per ADR, from $995 million, or $0.55 per ADR (each American Depositary Receipt represents one Honda common share).
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Like Toyota, Honda has suffered setbacks due to the natural disasters in Japan and Thailand. In Honda’s fiscal 2012 third quarter, which ended December 31, 2011, its sales fell 3.5%, to $25.0 billion from $25.9 billion a year earlier. Honda sold 830,000 cars and trucks in the quarter, down 2.9% from 855,000 a year earlier. However, motorcycle sales rose 6.3%, to 3.1 million from 2.9 million.
Earnings fell 38.4%, to $613 million, or $0.34 per ADR, from $995 million, or $0.55 per ADR (each American Depositary Receipt represents one Honda common share).
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