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Earnings Wrap: Here’s How These 5 Companies Did Last Quarter

There’s been a slew of earnings reports come in over the past 24 hours, with Procter & Gamble Co (NYSE:PG), 3M Co (NYSE:MMM), E I Du Pont De Nemours And Co (NYSE:DD), Coach Inc (NYSE:COH), and Eli Lilly and Co (NYSE:LLY) being five of the most prominent companies that have reported their financial results for their latest fiscal quarters. Given that earnings are one of the key indicators of future performance, let’s take a closer look at each report. Let’s also examine what the smart money thinks of each stock based on the latest 13F filings with the SEC.

Our research determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).

P&G Turns in Mixed Quarter

Procter & Gamble Co (NYSE:PG) is trending after turning in a mixed third quarter of fiscal year 2016. For the January 1 to March 31 period, the consumer staples giant earned $0.86 per share on sales of $15.76 billion, beating earnings estimates by $0.04 per share but missing sales expectations by $50 million. Organic sales inched up by 1% while total sales dropped by 6.9% year-over-year due to the strong dollar. Full 2016 fiscal year guidance anticipates core EPS declining by 3%-to-6% from the company’s 2015 fiscal year earnings of $3.76 per share. Warren Buffett‘s Berkshire Hathaway owned 52.79 million shares of Procter & Gamble Co (NYSE:PG) at the end of December.

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3M Beats Expectations

3M Co (NYSE:MMM) reported an excellent first quarter this morning, which beat both top and bottom-line estimates. For the first three months of the year, the diversified industrial conglomerate earned $2.05 per share on revenue of $7.41 billion, above the estimates of $1.92 per share and $7.33 billion respectively. While some of the earnings beat was due to 3M adopting a new FASB accounting standard, which added a net $0.10 to EPS, the company’s fundamentals still improved. Operating margin rose by 1.3% while free cash flow jumped by 20% year-over-year to $946 million. The company also increased its first quarter dividend payment by 8%, marking the 58th consecutive year of dividend increases. For full year 2016, management maintained its EPS estimate of $8.10-to-$8.45 and organic local currency sales growth of 1%-to-3%. Cliff Asness‘ AQR Capital Management was one of the top shareholders of 3M Co (NYSE:MMM) at the end of 2015.

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On the next page we examine the first quarter performance of E I Du Pont De Nemours And Co, Coach Inc, and Eli Lilly and Co.

Chemicals Are Still in Demand

Although the company’s stock is off slightly in early morning trading, E I Du Pont De Nemours And Co (NYSE:DD) shareholders don’t have much to complain about today, as the chemicals giant beat EPS estimates by $0.22 with earnings per share of $1.26 as the company’s sales exceeded estimates by $230 million with revenue of $7.41 billion for the first quarter. Guidance was also high, mostly due to the weaker dollar. Management now expects fiscal year 2016 EPS to be between $3.05 and $3.20, up from the previous EPS guidance of $2.95-to-$3.10. 35 top funds that Insider Monkey tracks in its database of 786 savvy investors owned E I Du Pont De Nemours And Co (NYSE:DD) as of December 31.

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Coach Reports Flat North American Comps 

Coach Inc (NYSE:COH) reported earnings of $0.44 per share on revenue of $1.03 billion, beating estimates by $0.03 per share and $10 million respectively for its third quarter of fiscal year 2016. Sales jumped by 10.8% year-over-year, in part due to the North American segment’s comparable store sales improving to flat growth after several quarters of negative growth. Guidance was for positive comparable store sales growth in North America in the fiscal fourth quarter. Coach Inc (NYSE:COH) was held by 37 top funds in our database at the end of December, up by ten from the end of September. Shares of Coach Inc are up by 1.44% this morning.

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Eli Lilly Down on Earnings Miss

Eli Lilly and Co (NYSE:LLY) shares are off by around 2% out of the gate after the drug giant reported first quarter earnings of $0.83 per share on sales of $4.87 billion. Analysts were expecting $0.85 per share in earnings on $4.82 billion in revenue instead. Full year 2016 guidance was hiked to revenue expectations of $20.6 billion-to-$21.1 billion and non-GAAP EPS of $3.50-to-$3.60, up from the previous guidance of $20.2 billion-to-$20.7 billion in revenue and $3.45-to-$3.55 per share in earnings. The number of elite funds in our system with shares of Eli Lilly and Co (NYSE:LLY) rose by seven quarter-over-quarter to 54 as of the end of the fourth quarter.

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Disclosure: None