CHICAGO, July 22, 2011 /PRNewswire/ -- Zacks.com announces
the list of stocks featured in the Analyst Blog. Every day the
Zacks Equity Research analysts discuss the latest news and events
impacting stocks and the financial markets. Stocks recently
featured in the blog include: Freeport-McMoRan Copper & Gold
Inc. (NYSE: FCX), Newmont Mining Corp. (NYSE: NEM),
Southern Copper Corp. (NYSE: SCCO), Danaher
Corporation (NYSE: DHR), General Electric Co. (NYSE: GE)
and SPX Corporation (NYSE: SPW)
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
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Here are highlights from Thursday's Analyst Blog:
Freeport's Profit More
than Doubles
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
reported a profit of $1.37 billion or
$1.43 per share in the second quarter
of 2011, which more than doubled from $649
million or 70 cents per share
in the same quarter of 2011. The profit exceeded the Zacks
Consensus Estimate by 9 cents per
share.
Revenues in the quarter surged 50% to $5.81 billion, surpassing the Zacks Consensus
Estimate of $5.63 billion.
Consolidated sales from mines totaled 1.0 billion pounds of copper,
356,000 ounces of gold and 21 million pounds of molybdenum compared
with 914 million pounds of copper, 298,000 ounces of gold and 16
million pounds of molybdenum in the second quarter of 2010.
Consolidated unit net cash costs (net of by-product credits)
averaged 93 cents per pound of copper
compared with 97 cents per pound for
the second quarter of 2010. Operating income almost doubled
to $2.76 billion from $1.42 billion a year ago.
Freeport-McMoRan had cash and cash equivalents of $4.38 billion as of June
30, 2011 compared with $3.74
billion as of December 31,
2010. As of June 30, 2011, the
company's long-term debt stood at $3.5
billion, translating into a long-term debt-to-capital ratio
of 19.6%.
Freeport-McMoRan had $43 million
of letters of credit issued under its revolving credit facility
resulting in total availability of approximately $1.5 billion as of June
30, 2011. Since January 1,
2009, the company has repaid $3.8
billion in debt resulting in estimated annual interest
savings of approximately $270 million
based on current interest rates.
In the first half of 2011, Freeport-McMoRan's operating cash
flows increased to $4.04 billion from
$2.88 billion in the year-ago period,
mainly driven by higher income. Capital expenditures, including
capitalized interest, increased to $1.03
billion from $527 million a
year ago.
Guidance
Freeport-McMoRan's consolidated unit net cash costs (net of
by-product credits) are estimated to average $1.01 per pound of copper for 2011 based on
average prices of $1,500 per ounce
for gold and $15 per pound for
molybdenum for the second half of 2011.
Based on the same parameters and assuming average prices of
$4.25 per pound of copper, the
company's consolidated operating cash flows are estimated to exceed
$8 billion for the year 2011.
The company's capital expenditures are expected to reach
$2.6 billion for 2011, including
$1.4 billion for major projects and
$1.2 billion for sustaining capital.
Major projects for 2011 primarily include underground development
activities at Grasberg, construction activities at the Climax
molybdenum mine and completion of the initial phase of the sulfide
ore project at El Abra.
Headquartered in Phoenix,
Arizona, Freeport-McMoRan Copper & Gold Inc. is engaged
in mineral exploration and development; mining and milling of
copper, gold, molybdenum and silver; as well as the smelting and
refining of copper concentrates.
The company conducts its operations primarily through its
principal operating subsidiaries, PT Freeport Indonesia,
Freeport-McMoRan Corporation (formerly Phelps Dodge) and Atlantic Copper. Its major
competitors include Newmont Mining Corp. (NYSE: NEM) and
Southern Copper Corp. (NYSE: SCCO). It currently retains
Zacks #3 Rank on its stock, which translates to short-term rating
of "Hold".
Danaher Underperforms
Danaher Corporation (NYSE: DHR) released its
second-quarter 2011 results before the opening bell today reporting
earnings from continuing operations of 65
cents, below the Zacks Consensus Estimate of 67 cents. Earnings for the quarter were up 23%
compared with the prior-year quarter.
Adjusted diluted earnings from continuing operations, which
excludes contribution from Beckman
Coulter, was 69 cents, an
increase of 28% year over year.
Revenue
The company generated sales from continuing operations for 2011
of $3.7 billion, an increase of 15.5%
year over year. Core revenue for the quarter was up 7.5%. Danaher
continues to benefit from product innovations and its go-to-market
initiatives. Efforts of Danaher are leading to organic growth and
expanding margins.
Test & Measurement revenue was $848.2
million compared with $682.2
million in the prior-year quarter, Environmental revenue was
$730.6 million compared with
$696.0 million, Life Sciences &
Diagnostics revenue was $704.8
million compared with $540.1
million, Dental revenue was $504.7
million compared with $428.3
million and Industrial Technologies revenue was $923.4 million compared with $698.5 million.
Margin
Operating profit in the quarter was $626.1 million compared with $517.8 million.
Operating margin in Test & Measurement was 22.4%,
Environmental was 21.7%, Life Sciences & Diagnostics was 4.9%,
Dental was 10.9% and Industrial Technologies was 21.7%.
Balance Sheet and Cash Flow
Cash and cash equivalents at the end of the quarter was
$551.6 million with long-term debt of
$6.5 billion and total shareholders
equity of $16.6 billion.
Net cash flows from operating activities were $1.1 billion compared with $931.8 million in prior-year quarter.
Outlook
The company expects to derive continued benefit from its new
product investments as well as its increased penetration in the
emerging markets. Further, Beckman
Coulter acquisition is also expected to be a major
contributor in 2011 and beyond.
Danaher Corporation is a diversified technology company that
designs, manufactures and markets innovative products and services,
which are typically characterized by strong brand names,
proprietary technology and major market positions. Major
Competitors of the company are General Electric Co. (NYSE:
GE) and SPX Corporation (NYSE: SPW).
We maintain a Zacks #1 Rank (short-term Strong Buy
recommendation) on Danaher Corporation.
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