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Last week earnings

The earnings season started with two big disappointments. UPS slumped 4.6% for the week after the world’s largest package-delivery company reduced its first quarter earnings’ estimates from the 94 – 98 cents range to 86-87 cents per share. The consensus estimate of the 14 analysts following the company was 94 cents. UPS is considered a leading indicator of the American economy health. The company warned back in February that it might not be able to meet the first quarter estimates due to raising gas prices and slowing economy. The CEO Scott Davis said the main source of growth will be international.

Another barometer of the American economy –GE, reported one of its worst quarters ever. The stock dropped 13% after the industrial giant didn’t meet the estimates and cut the forecast. GE reported EPS of 44 cents vs. 48 cents for the same quarter last year and 51 cents consensus estimate. Revenue rose 8% to 42.2 bill, but missed the expectations of 44 bill.

Some of the companies that bugged the trend and reported better than expected earnings include:

LAYN reported EPS of 50 cents vs. the consensus of 37 cents. The revenue for the provider of drilling and construction services rose15.8% to 223.6 mill, which exceeded the analysts’ consensus of 214.5 mill. The stock is up 13.5% for the week.

APOG rose 26.5% for the week after
the glassmaker reported EPS of 50 cents vs. 34 cents for the same quarter last year and 45 cents consensus estimate. Sales grew 18% to 243 mill, margin rose to 22.7%. Target price was increased to $28.


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