Anila Prakash has contributed to this note
Oil producing companies are in a sweetspot – their crude oil realization per barrel i) has risen at a pace faster than the increase in WTI price over the last two years, and ii) has narrowed the discount to WTI price over the same period. We think growing demand of heavy & sour crude from refiners would keep the average realization differential vis-à-vis WTI benchmark attractive for the oil producers. read more…
Apple, while reporting a strong December quarter, disappointed the market with a weak March-08 guidance. Revenue guidance of $6.8 B for 2Q08 was lower than consensus estimate, and EPS guidance of ~$0.94 was 15% lower than the then estimate of $1.10. The Apple stock is now trading at a 14% low from its January 22 closing price.
We think that the season of disappointing guidance is not over. I pulled out the actual QE Dec-07 results and the management guidance & consensus numbers for the March-08 quarter from the Gridstone platform, for the companies who have reported on January 23. LSI, Symantec and eBAY are the big names where consensus EPS estimates for QE March-08 have been more aggressive than what the management now believe they can deliver during the next quarter. read more…
Himali Madye and Bhushan Khushalani also contributed to this Note
Gridstone Research consistently covers press releases filed by more than 80 Consumer Non Durables companies listed in the US, tracking important developments like corporate restructuring, strategic alliance, product launch, brand / product portfolio rationalization etc. In this note we have analyzed the events reported across different industries within Consumer Non Durables and found that each industry has its own undercurrent theme. The sector witnessed new product launches with added features and functionalities, instances of product recalls, efforts to enhance core businesses, market leadership, brand portfolios and investment in capacity expansion across geographies. Food and non-alcoholic companies continued their focus on wellness and nutrition products while tobacco players enhanced their focus on other tobacco products.
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Satyam Kumar also contributed to this note
The communications equipment industry has experienced solid market growth over the past several years, after recovering from sharp spending cutbacks in 2001 and 2002 by the service providers. Over the years the growth in communication equipments industry has been led by its primary customers, the telecommunications service providers. However, if one takes a look at the recently concluded Sep07 quarter there are some interesting trends to watch for. Current growth in the industry is being fueled by the enterprise/government customers (Exhibit 1) as enterprises look to embrace more web-based business models and upgrade their existing networks.
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Hemina Mehta and Vishal Kapse also contributed to this Note
Decline in traffic along with difficult year-on-year comparisons due to shift of one pre-holiday shopping week to November from December, led to poor December ’07 comparable store sales performance among retailers. Customers continue to be cautious in their buying and seem to be shopping at stores where they can avail good bargains resulting in better performance for warehouse clubs.
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Richa Mohindroo and Bhushan Khushalani also contributed to this Note
Gridstone Research [GSR] consistently covers press releases filed by more than 90 Consumer Durables companies listed in the US, tracking important developments like corporate restructuring, strategic alliance, product launch, brand / product portfolio rationalization etc. In this note we have analysed the events reported across different sub-industries within Consumer Durables and found that each industry has its own undercurrent theme. Overall the sector was marked by business portfolio restructuring, brand/product portfolio rationalization, new product launches, inter-company technological tie-ups and strategic alliances for capability building initiatives both in domestic and overseas markets.
This is Part III of a three part note based on study of such events leading to identified industry undercurrents which are not only relevant for the past quarter but also for the foreseeable quarters.
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Richa Mohindroo and Bhushan Khushalani also contributed to this Note
Gridstone Research [GSR] consistently covers press releases filed by more than 90 Consumer Durables companies listed in the
US, tracking important developments like corporate restructuring, strategic alliance, product launch, brand / product portfolio rationalization etc. In this note we have analysed the events reported across different sub-industries within Consumer Durables and found that each industry has its own undercurrent theme. Overall the sector was marked by business portfolio restructuring, brand/product portfolio rationalization, new product launches, inter-company technological tie-ups and strategic alliances for capability building initiatives both in domestic and overseas markets.
This is Part II of a three part note based on study of such events leading to identified industry undercurrents which are not
only relevant for the past quarter but also for the foreseeable quarters.
read more…
Richa Mohindroo and Bhushan Khushalani also contributed to this Note
Gridstone Research [GSR] consistently covers press releases filed by more than 90 Consumer Durables companies listed in the US, tracking important developments like corporate restructuring, strategic alliance, product launch, brand / product portfolio rationalization etc. In this note we have analyzed the events reported across different sub-industries within Consumer Durables and found that each industry has its own undercurrent theme. Overall the sector was marked by business portfolio restructuring, brand/product portfolio rationalization, new product launches, inter-company technological tie-ups and strategic alliances for capability building initiatives both in domestic and overseas markets.
This is Part I of a three part note based on study of such events leading to identified industry undercurrents which are not only relevant for the past quarter but also for the foreseeable quarters.
read more…
Sandeep Mukherjee and Sneha Khatri also contributed to this Note
U.S. auto sales in December 07 continued its declining y/y trend amidst tight consumer spend environment as illustrated by housing market downturn marked by price correction and lowest number of home starts in more than a decade, and increasing gasoline prices, with crude oil futures touching $100 per barrel.
Among the U.S. automakers, GM recorded sales decline due to lower fleet sales, while Ford sales declined primarily due to lower retail sales, even as they ended with lower inventory levels. Sales of Japanese automakers also declined as TM recorded sales decline due to reduced passenger car and light truck sales. Nissan Motor reported sales decline of truck segment and car segment went down marginally. Honda Motor recorded increase in sales volume for its car segment while truck sales declined. The month closed with an estimated seasonal adjusted annual rate (SAAR) of 16.6 M unit vehicles sold. read more…
