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Companies developing robotic technology could benefit from increased demand in the industrial, defense and services sectors.
Rockwell Automation Inc. reported sales and net income growth for its 2019 second quarter Thursday, but continued weakness in its automotive sector led it to slightly reduce its full-year earnings per share guidance.
The S&P 500 Industrials Sector Index fell as much as 2.4 percent on Thursday, the biggest intraday drop since Jan. 22, after diversified manufacturer 3M Co. lowered its profit expectations, announced a job cut to combat poor results, flagged softness in the automotive and electronics markets, and warned of headwinds in China. Some of that pessimism was echoed by Rockwell Automation Inc., which reported quarterly results below expectations, and said growth was tempered by weaker-than-expected automotive sales. With U.S. automotive production slowing during the first three months of the year, along with a deceleration in China and Europe markets, analysts have already been warning about ugly results during the first-quarter earnings season.
Advanced Micro's to gain from release of Radeon RX Vega family of GPUs and alliance with companies like Baidu, Amazon, Tencent, Microsoft and JD.com.
The S&P 500 Aerospace & Defense (Industry) and the Dow Jones U.S. Aerospace & Defense index gained 2% , in the trailing five trading sessions
The company slashed its 2019 guidance on Thursday amid declines in the automotive and electronics markets and weakness in China. 3M now expects to earn at most $9.75 a share this year after backing out environmental litigation charges, compared with a previous forecast for as much as $10.90. Industrial investors had seemingly decided worries about a peak in growth and profits were overblown, aided by impressively robust and well-rounded results out of Honeywell International Inc. and United Technologies Corp. Consider that 3M was up about 15 percent year to date heading into its earnings report despite lowering its outlook in January.
Raytheon wrapped up earnings from defense stocks with strong Q1 numbers after Northrop had mixed results and General Dynamics topped on profit and revenue.
Wahid Nawabi became the CEO of AeroVironment, Inc. (NASDAQ:AVAV) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider t...
Intuitive Surgical Inc (NASDAQ:ISRG) develops, manufactures and leases robotic surgery machines and accessories. Its da Vinci Surgical Systems brand is one of the biggest names in this fast-growing sector.Source: Jon Fingas via Flickr (Modified)The stock is off about 9% in the past month, and about half of that happened after it announced earnings last week. While ISRG revenues were in line with expectations, earnings missed by 3%. That was enough to send the stock sliding.But even after that hit, the stock still sports a trailing price-to-earnings ratio of 53, so it's cheaper now, but there's still plenty of faith left in its growth.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's apparent in its Q1 report, if you're interested in looking deeper into the numbers (which we are). First-quarter leases were down for the company, and that is what hamstrung earnings. But procedure growth was up by 18% and installations were around 235 units. ISRG Stock by the NumbersSo, let's break this down.ISRG sells robotic surgical machines that perform minimally invasive surgical (MIS) procedures as well as diagnostics. Basically, this is surgical procedures done with laparoscopy, which is a fair amount of common surgeries. And a surgeon is part of the team, but the da Vinci does a fair amount of the work.The machines are leased, so there's recurring income and there are also service contracts for parts and equipment and upkeep. These are the high-margin aspects of the business.These da Vinci machines had already performed more than 5 million MIS surgeries by 2017, and they're available in more than 4,400 hospitals worldwide. Because ISRG is one of the first pioneers in this sector, it has a significant competitive advantage since the barriers to entry are significant and it has built a reputation in a very conservative sector.Generally speaking, the medical profession is not one that jumps from shiny object to shiny object. Whether it is medicines, procedures or equipment, there is a lot to risk, especially in a surgical setting. Surgeons are not interested in getting sued for malpractice or losing hospital privileges.This is far from the dashcam videos of Tesla drivers throwing their car on Auto Pilot and letting it roll. Because ISRG stock has been around for more than two decades, it has the history and the relationships to show its value and reliability.There will certainly be competitors as tech advances and its potential market share may be challenged, but the potential market remains vast and can sustain a number of competitors without that eating into ISRG growth opportunities.And that is precisely where that procedure growth number comes in. That kind of growth shows that these machines are becoming accepted in their environments, which is a very bullish sign for the long term.My Portfolio Grader rates ISRG a B, and that means, any dip is a reason to buy.Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks That Could Double Over the Next Five Years * 6 S&P 500 Stocks Ready to Break Out * 5 Mining ETFs to Dig Into Compare Brokers The post Intuitive Surgical Is a Buy on This Dip appeared first on InvestorPlace.
Since 2014, Emerson has backed more than 30 startups, according to research firm PitchBook, investing in a range of novel companies making everything from floating data centers to supersonic aircraft. Started more than a decade ago, Emerson Collective may be the strangest entity in Silicon Valley: part charitable foundation, part venture capital firm, operating in near-total secrecy, despite being run by one of the most famous women in business. Like the philanthropic arm of Mark Zuckerberg, Emerson is a limited liability company. LLCs aren’t subject to the same reporting rules as nonprofits and can more easily invest in for-profit companies. Emerson does that—putting money into companies that it says fit within the parameters of its philanthropic mission—with some success.
On a per-share basis, the Milwaukee-based company said it had net income of $2.88. Earnings, adjusted for non-recurring gains, were $2.04 per share. The results fell short of Wall Street expectations. ...
The robotic cleaning-device specialist might lose money this quarter before earnings trends improve in the second half of the year.
is expected to report quarterly earnings of $2.08 a share on sales of $1.7 billion before the market opens Apr. 25, based on a FactSet survey of 20 analysts. Rockwell Automation is currently trading at a price-to-forward-earnings ratio of 20.2 based on the 12-month estimates of 23 analysts surveyed by FactSet. Introducing TheStreet Courses: Financial titans Jim Cramer and Robert Powell are bringing their market savvy and investing strategies to you.