Boston Scientific Corporation (NYSE: BSX): Q4 Earnings Preview 2010

Boston Scientific Corporation (NYSE: BSX), the world’s second-largest heart-device maker, is scheduled to release its fourth-quarter financial results after the closing bell on Tuesday, February 1, 2011. Analysts, on average, expect the company to report earnings of 10 cents per share on revenue of $1.99 billion. In the year ago quarter, the company reported earnings of 13 cents per share on revenue of $2.08 billion.

Boston Scientific Corporation develops, manufactures, and markets medical devices used in various interventional medical specialties worldwide.

In the preceding third quarter, the Natick, Massachusetts-based company's net income was  $190 million, or 12 cents a share, compared to a loss of $94 million, or 6 cents a share, in the year-earlier period. On an adjusted basis, the company earned 19 cents a share in the latest quarter. Revenue dropped 5% to $1.92 billion from $2.03 billion. Analysts, on average, expected the company to report earnings of 6 cents per share on revenue of $1.91 billion. 

At its last earnings call in October, the company said that it expects fourth-quarter adjusted earnings of 15 cents to 18 cents a share and revenue of $1.93 billion to $2 billion.

Boston Scientific also raised the lower end of its fiscal 2010 revenue guidance. The company msaid that it now expects sales and adjusted EPS of $7.7−$7.8 billion (previous guidance: $7.6−$7.9 billion) and 63–66 cents (54–62 cents), respectively.

Early in January, the company said that a legal settlement will boost fourth-quarter earnings by 5 cents per share. The company said Medinol paid about $104 million pretax in the settlement in December. After tax, the settlement amounts to $77 million, or 5 cents per share. In the lawsuit, Medinol had argued that its patents were infringed by Boston Scientific's Liberte and Taxus stents, which are used to prop open clogged arteries. 

Boston Scientific had been witnessing declining revenues from two of its largest segments – Cardiovascular and Cardiac Rhythm management. However, the company has laid down several strategies such as expanding its product portfolio, selectively reinvesting in the business and concentrating more on non-DES and non-CRM areas to reposition the business. The company has announced several acquisitions and one divestiture in recent month in an effort to reposition its portfolio to drive growth.

Late in October, the company agreed to sell its neurovascular business to Stryker Corp. for $1.5 billion in cash. Proceeds from the sale will be invested in opportunities to expand the company's portfolio in medical devices that are less invasive and reduce refractory drug regimes, said Boston Scientific Chief Executive Ray Elliott, in a statement. The transaction is expected to close before the end of the year. As a result, Boston Scientific said 2011 earnings are expected to be diluted by 4 cents to 6 cents a share. 

Recently, The U.S. Justice Department sued Boston Scientific Corp. and its Guidant units for allegedly knowingly selling defective implantable electronic heartbeat- regulating defibrillators. The department said it alleged that Guidant knew as early as April 2002 that an implantable cardiac device it manufactured and sold contained a potentially life-threatening defect and it knew as early as November 2003 that another device contained a similar defect.

Full Disclosure: None.

Apollo Group (NASDAQ: APOL): Q1 Earnings Preview 2011

Apollo Group, Inc. (NASDAQ: APOL) is scheduled to release its fiscal first-quarter financial results after the closing bell on January 10, 2011. Analysts, on average, expect the company to report earnings of $1.35 per share on revenue of $1.26 billion. In the year ago quarter, the company reported earnings of $1.47 per share on revenue of $1.27 billion.

Apollo Group, Inc. provides educational programs and services at the undergraduate, master?s, and doctoral levels. The Company offers educational programs and services both online and on-campus at the undergraduate, master’s and doctoral levels through its wholly owned subsidiaries, The University of Phoenix, Inc. (University of Phoenix); Institute for Professional Development (IPD); The College for Financial Planning Institutes Corporation (CFFP), and Meritus University, Inc. (Meritus).

In the preceding fiscal fourth-quarter, the Phoenix, Arizona-based company's net income was $41 million, or 28 cents a share, compared with $91.5 million, or 59 cents a share, in the year-earlier quarter. On an adjusted basis, the company earned $1.31 a share in the latest quarter. Revenue climbed to 17.4% to $1.26 billion from $1.07 billion. Analysts, on average, expected the company to report earnings of $1.30 per share on revenue of $1.26 billion. 

Apollo and the for profit education at large have been in the news quite often following the U.S. Department of Education release of a notice or proposed rulemaking on gainful employment. For-profit colleges are resisting a U.S. Department of Education proposal to restrict funding and objecting to a law that limits their revenue from government sources. The proposed restriction, called “gainful employment,” would tie eligibility for federal student-aid programs to graduates’ incomes and loan repayment rates. The company have taken steps to steps to position itself in an environment of increased regulation, a move that will lower defaults. Recently, the University of Phoenix began an orientation program designed to lower dropout and default rates. At The University of Phoenix’s parent company, Apollo Group, federal dollars constitute more than 90% of revenue.

At its last earnings call in October, the company withdrew its prior preliminary business outlook for fiscal 2011, citing the transitional state of the business and the uncertain regulatory environment. The company said that it expects that the implementation of these initiatives, together with the effect of other challenges the proprietary education industry is facing will adversely impact its operating metrics and financial results. Apollo Group Inc. also cautioned that enrollment in its first-quarter 2011 would drop by more than 40%.

Apollo has been the target of many significant lawsuits involving in essence its alleged improper use & classification of federal student financial aid & its methods of attracting students. The government is investigating the possibility of insider trading and other violations, and some investors have filed a class-action lawsuit alleging false statements by company execs. Apollo says it did nothing wrong and is fighting the suit, but bad publicity has led to falling enrollments, and the company recently laid off 700 workers.Apollo Group said it expects to incur charges of $5 million in its quarter ending Nov. 30, in connection with the cuts. It also said it expects to realize related employee compensation expense reductions of $8 million per quarter, commencing in the second quarter of fiscal year 2011. Apollo said the personnel reductions are designed to streamline its operations and better align operations with its refined business model and outlook. 

In terms of stock performance, Apollo shares have lost more than 35% over the past year.

Full Disclosure: None.

Evergreen Solar (NASDAQ: ESLR): Q3 Earnings Preview 2010

Evergreen Solar Inc. (NASDAQ: ESLR) is scheduled to release its third quarter after the closing bell on Monday, November 1, 2010. Analysts, on average, expect the company to report a loss of 11 cents a share on revenue of $87.48 million. In the year ago quarter, the company posted a loss of 40 cents per share on revenue of $77.66 million.

Evergreen Solar, Inc. engages in the development, manufacture, and marketing of solar power products primarily in the United States and Europe. It utilizes its proprietary String Ribbon technology process to produce multi-crystalline silicon wafers by growing thin strips of multi-crystalline silicon that are then cut into wafers.

In the preceding second quarter, the Marlborough, Massachusetts based-company's net loss was $3.3 million or 2 cents per share, compared to a loss of $20.59 million or 11 cents per share in the year-earlier quarter. Revenue jumped 24% to $84.5 million from $62.70 million. Analysts, on average, expected the company to post a loss of 11 cents per share on revenue of $7, to Wuhan, China.

The company is likely to benefit from geographically diversified contractual backlog, improving operating efficiencies, ongoing expansion programs and shifting a part of its manufacturing process to China. 

The company is shifting production of solar fabrication and assembly from its factory in Devens, Masachussets, to  China in order to lower manufacturing costs. The company expects to achieve a cost of about $1.20 per watt by the end of 2011 with a hybrid Devens/China model.  Improvements from oits current cost of $1.94 per watt will come through further operating efficiencies, additional reductions in material costs, including silicon, and the transition of its Devens panel assembly to China. During the second quarter, small quantities of cells produced in Devens were shipped to China to begin fabricating panels. The company expects to gradually increase the number of cells sent to China through the rest of this year and into next year and complete the transition of Devens’ panel fab to China by mid-2011. Evergreen Solar expects to reach a manufacturing cost of sub-$1 per watt by the end of 2012.

In near-term, the company faces significant headwinds due to start-up costs, capital expenditures and subsidy cuts in Germany, the world's largest market. The company generates bulk of its revenue from key European markets like Germany and Spain. In the second quarter, Evergreen Solar sold approximately 84% of its product in Europe, 14% in U.S. and 2% in Asia.

In September, the company announced the appointment of Michael El-Hillow as President and Chief Executive Officer. He replaced Richard Feldt, who accepted the position of Chief Executive Officer with a privately-held company.

In terms of stock performance, Evergreen Solar shares have lost almost 47 percent over the past year.

Full Disclosure: None.

Wynn Resorts (NASDAQ: WYNN): Q3 Earnings Preview 2010

Wynn Resorts Ltd. (NASDAQ: WYNN) is scheduled to release its third quarter earnings after the closing bell on Tuesday, November 2, 2010. Analysts, on average, expect the company to report earnings of 39 cents per share on revenue of $990.83 million. In the year ago period, the company reported earnings of 33 cents per share on revenue of $773.07 million.

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes 22 food and beverage outlets comprising 6 dining restaurants, 2 nightclubs, 1 spa and salon, 1 Ferrari and Maserati automobile dealership, wedding chapels, an 18-hole golf course, meeting space, and foot retail promenade featuring boutiques.

In the preceding second quarter, the Las Vegas, Nevada-based company's net income was $52.4 million, or 42 cents a share, from $25.5 million, or 21 cents a share, in the year-ago quarter. On an adjusted basis, the company earned 52 per share in the latest quarter. Revenue surged to $1 billion from $723.3. Analysts, on average, expected the company to report earnings of 42 cents per share on revenue of $992.29 million. 

Wynn is also seeing success in Asia with its Wynn Macau operation. Wynn's best news came from Macau, the Chinese gambling enclave, where revenue spiked to $714.4 million from $410.4 million. Wynn Macau's average daily room rate spiked to $287 in the second quarter, up from $263 even as occupancy fell to 81.3% from 86.7% largely due to the addition of hundreds of new rooms and villas. Revenue per available room, a key industry metric known as RevPAR, was $234, up 2.5% above 2009 levels of $228. 

Macau's August gambling revenue rose 40% from a year earlier, slowing from July's 70% because of a higher base effect. August revenue totaled MOP15.8 (US$2.0 billion), nearly flat from July's MOP16.3 billion, but up significantly from MOP11.3 billion a year earlier, according to data from Macau's Gaming Inspection and Coordination Bureau. August's revenue figure is the third highest so far this year after the record MOP17.1 billion hit in May and July's total.

Las Vegas Strip — which accounts for more than half the total — gambling revenue spiked a whopping 21% to $544 million on brisk table volumes and stabilizing slot-machine play.

Revenue collected on Las Vegas' main strip of casinos surged 21% to $544.4 mil in Aug., and revenue for all Nev. casinos climbed 12% to $944.5 mil, signaling a possible rebound from a two-year slump. 

We hope for continued improvement in Las Vegas or -- let me put it different, we hope that we'll get smarter in Las Vegas in dealing with the peculiarities of this market, and this very, very mercurial, national economic market we're living wit

In terms of stock performance, Wynn shares have gained nearly 81 percent since the beginning of the year.

Full Disclosure: None.

Anadarko Petroleum Corporation (NYSE: APC): Q3 Earnings Preview 2010

Anadarko Petroleum Corporation (NYSE: APC) is scheduled to release its third quarter earnings after the closing bell on Monday, November 1, 2010. Analysts, on average, expect the company to report earnings of 30 cents per share on revenue of $2.65 billion. In the year ago period, the company reported a loss of 11 cents per share on revenue of $2.74 billion.

Anadarko Petroleum Corporation engages in the exploration and production of oil and gas properties primarily in the United States, the deepwater of the Gulf of Mexico, and Algeria. It markets natural gas, crude oil, condensate, and oil and natural gas liquids, as well as owns and operates natural-gas gathering, processing, treating, and transportation systems.

In the preceding second quarter, the Woodlands, Texas-based company's net loss was $40 million, or 8 cents a share, from a loss of $226 million, or 48 cents a share, in the year-earlier quarter. Excluding one-time items, adjusted net income was $244 million, or 49 cents a share, in the second quarter. Revenue climbed to $2.6 billion from $1.91 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of 36 cents per share on revenue of $2.75 billion. 

At its last earnings call in August, the company lifted its 2010 production outlook to 232 million to 236 million barrels of oil equivalent, up 5%-7% from 2009 output levels. 

For the third quarter, Anadarko anticipates total sales in the range of 55 MMBOE to 58 MMBOE.

The company is bracing for a tougher regulatory climate, and faces uncertainty over costs from a massive oil spill. Anadarko was part owner of the blown-out Macondo well, and could see significant liability, in addition to new restrictions following the largest offshore oil spill in U.S. history.

According to media reports, Cnooc (NYSE: CEO), China's largest offshore oil driller, reportedly submitted a $5 billion joint bid Ghana National Petroleum to acquire Kosmos Energy's stake in Ghana's Jubilee, an asset that Exxon Mobil (NYSE: XOM) has already offered $4 billion for. Shares of the company have rallied amid speculation that the Australian firm BHP Billiton Ltd. (NYSE: BHP) could be interested in buying the independent oil and gas exploration.

Among other developments,  Anadarko recently announced that the Barquentine exploration well in the Offshore Area 1 of Mozambique's Rovuma Basin encountered a total of more than 416 net feet of natural gas pay in multiple high-quality sands. Specifically, the discovery well encountered more than 308 net feet of pay in two Oligocene sands that are separate and distinct geologic features, but age-equivalent to those encountered in Anadarko's previously announced Windjammer discovery. The well also found an additional 108 net feet of natural gas pay in the Paleocene sands. This deeper pay appears to be part of the same accumulation as the 75 net feet of pay that was encountered at the Windjammer discovery, located 2 miles to the southwest.

Full Disclosure: None.

BP Plc (NYSE: BP): Q3 Earnings Preview 2010

BP Plc (NYSE: BP) is scheduled to release its third quarter earnings before the opening bell on Tuesday, November 2, 2010. Analysts, on average, expect the company to report adjusted earnings of $1.53 per share on revenue of $72.46 billion. In the year ago period, the company reported earnings of $1.50 per share on revenue of $67.86 billion.

BP Plc provides fuel for transportation, energy for heat and light, retail services, and petrochemicals products. The company operates through two segments: Exploration and Production, and Refining and Marketing.

In the preceding second quarter, the London, United Kingdom-based company's net loss was $17.15 billion, $5.42 per share, compared to a profit of $4.38 billion, or $1.01 per share, in the year-ago quarter. The company set aside $32.2 billion for costs related to the spill, including $20 billion for an escrow fund announced earlier. Adjusted profit rose to $5 billion from $2.9 billion in the same quarter last year. Revenue increased to $75.87 billion from $56.56 billion in the same quarter last year. 

BP is working hard to rebuild its shattered reputation. The company has been divesting assets to cover costs linked to the Gulf of Mexico oil spill, the worst in U.S. history. At its last earnings call in July, the company also announced its plans to sell assets for up to $30 billion over the next 18 months, primarily in the upstream business. So far, it has sold nearly $11.5 billion worth of assets including the $7 billion sale of onshore gas assets in the U.S., Canada and Egypt to Apache Corp. Earlier this month, Bob Dudley commented that the company is trying to reduce the number of operatorships it holds in the Gulf of Mexico. 

Late in July, the company said that a probe by U.S. Attorney General Eric Holder may lead to suspension of well operating licenses and debarment from government contracts under U.S. pollution law. The ruling will determine the size of the fine under the Clean Water Act, which could run as high as $20 billion.

Bob Dudley, who became BP CEO on October 1, has unveiled a reorganization of BP’s business, announcing the departure of the head of the exploration and production unit, Andy Inglis, and splitting it into three. He also established an independent safety division. Meanwile, the stock has recovered 42 percent since June 29 when it touched a 14-year low of 302 pence in London trading.

BP is likely to benefit from higher crude oil prices. The price of crude in New York trading has gained 10 percent since the end of May to $81 a barrel. Dudley recenty said that if oil prices stay high, the company's performance remains strong and it satisfies obligations from the spill, then BP will be "heading in the right direction" to restore some level of dividend payout. 

Recently, a US Presidential panel appointed to probe the rig blast that led to the spill said  that its contractor Halliburton Co. (NYSE: HAL) knew the cement it was using to seal the oil well in the Gulf of Mexico was unstable. 

Full Disclosure: None.

First Solar Inc. (NASDAQ: FSLR): Q3 Earnings Preview 2010

First Solar Inc. (NASDAQ: FSLR), the world's largest maker of thin-film solar-power modules, is scheduled to release its third quarter earnings after the closing bell on Thursday, October 28, 2010. Analysts, on average, expect the company to report earnings of $1.94 a share on revenue of $778.20 million. In the year ago period, the company reported earnings of $1.79 per share on revenue of $480.85 million.

First Solar Inc. engages in the design, manufacture, and sale of solar electric power modules using a proprietary thin film semiconductor technology. The company's solar modules employ a thin layer of cadmium telluride semiconductor material to convert sunlight into electricity. First Solar has the lowest production costs in the industry for its thin film cadmium telluride panels.

In the preceding second quarter, the Tempe, Arizona-based company's net income was $159 million, or $1.84 a share, compared to $180.6 million, or $2.11 a share, in the comparable quarter a year ago. Revenue grew 12% to $587.9 million from $525.9 million. Analysts, on average, expected the company to report earnings of $1.61 a share on revenue of $549 million. PV module manufacturing cost was $0.76/watt in the second quarter, down 13% over a year earlier.

At its last earnings call in July, the company boosted its 2010 earnings outlook to a range of $7.00 to $7.40 a share from its prior forecast in the range of $6.80 to $7.30 per share. First Solar reduced its revenue outlook to a range of $2.5 billion to $2.6 illion from its previous forecast in the range of $2.6 billion to $2.7 billion. The company expects to generate $575 million to $625 million of operating cash flows in fiscal 2010.

Solar industry as a whole has benefited from continues strong demand thanks to growing awareness about global warming, skyrocketing oil prices, cheap financing and technological advances.

Early in October, First Solar, Inc. announced that it has signed agreements with seven key customers for a 380 megawatt increase in orders for 2011 over previously announced volumes. The expanded contracts are with existing customers and will serve predominantly European markets.

First Solar has been rapidly expanding its manufacturing capacity in order to better meet accelerating demand. Recently, the company announced that it will build new factories in US and Vietnam to help meet strong demand for its panels. The plants will raise the company's manufacturing capacity by nearly 500 megawatts when the factories are completed in 2012. The factories are in addition to previously announced additions in Kulim, Malaysia; Frankfurt an der Oder, Germany; and Blanquefort, France. The company finished expansion of its plant in Perrysburg, Ohio, near Toledo earlier this year.

The company's stock currently trades at a forward P/E (fye 26-Dec-11) of 17.83 and PEG Ratio (5 yr expected) of 0.85. In terms of stock performance, First Solar shares have gained nearly 9 percent since the beginning of the year.

Full Disclosure: None.