Notable Earnings: Ericsson (ERIC), Caterpillar (CAT), AbbVie (ABBV), General Motors (GM), Dunkin’ Brands (DNKN)

Ericsson (ERIC) shares are down $1.64, or 12.91%, to $11.06 in pre-market trading Thursday after the company reported its first quarter earnings results.

The telecoms equipment maker reported earnings of 0.77 kronor ($0.08) per share on revenues of 53.50 billion kronor ($6.2 billion), up 12.6% from a year ago. Analysts were expecting EPS of 1.12 kronor ($0.12) on revenues of 53.59 billion kronor ($6.17 billion). First-quarter net income fell 14% to 1.5 billion kronor ($173 million), or 0.40 kronor ($0.04), from 1.7 billion kronor ($195 million), or 0.65 kronor ($0.07),  despite a rise in global sales.

CEO Hans Vestberg said in a press release the company would continue to save costs, announcing 850 new job cuts in Sweden. He also said the company would continue “to proactively identify efficiency opportunities,” with a 9 billion kronor ($1.3 billion) savings program. The savings are targeted to take full effect in 2017.

Profitability-wise, ERIC has a t-12 profit and operating margin of 5.07% and 9.34%, respectively. The $41.17 billion market cap company currently prints a one year return of 0.77% and a year-to-date return of around 8.30%.

The chart below shows where the equity has traded over the last 52 weeks.

Caterpillar Inc. (CAT) reported first quarter non-GAAP EPS of $1.72 before the opening bell Thursday, compared to the consensus estimate of $1.36. Revenues decreased 4.1% from last year to $12.70 billion. Analysts expected revenues of $12.49 billion. For the current quarter, profit was 20% higher to $1.11 billion, or $1.81 per share. That compares with $922 million, or $1.44 per share, last year.

“We delivered solid results for the first quarter of this year, including higher profit than in the first quarter of 2014. Our focus on operational improvement, including lean manufacturing and cost management, is helping in what is a tough time for some of our important cyclical businesses. We continue to execute on improving safety, quality, inventory turns, delivery performance and market position,” stated Caterpillar Chairman and Chief Executive Officer Doug Oberhelman.

For FY/15, the construction and mining equipment maker provided EPS guidance of $5.00 versus consensus of $4.75 per share. The company also issued revenue projection of $50 billion, compared to the consensus revenue estimate of $49.63 billion.

Profitability-wise, CAT has a t-12 profit and operating margin of 6.70% and 10.52%, respectively. The $51.45 billion market cap company currently prints a one year loss of about 15.60% and a year-to-date loss of around 6%.

The stock is currently up $3.23 to $88.10.

Shares of AbbVie Inc. (ABBV) rallied $1.43 to $65.95 after the pharmaceutical company released its earnings results on Thursday. The firm reported non-GAAP Q1’15 EPS of $0.94 per share vs. $0.85 consensus on $5.04 billion in revenue, up 10.5% from a year ago.
For the current quarter, net income was $1.02 billion, or $0.63 per share, compared with net income of $980 million, or $0.61 per share in the first quarter of 2014.

“AbbVie had an exceptional first quarter, delivering on our projection of top-tier EPS growth, as well as robust sales growth and significant margin expansion,” said in a statement Richard A. Gonzalez, chairman and chief executive officer, AbbVie.

For FY/15, ABBV provided EPS guidance of $4.10 – $4.30 versus consensus of $4.29 per share.

On valuation measures, AbbVie Inc. shares, which currently have an average 3-month trading volume of 11.64 million shares, trade at a trailing-12 P/E of 58.65, a forward P/E of 12.80 and a P/E to growth ratio of 0.94. The median Wall Street price target on the name is $70.00 with a high target of $86.00. Currently ticker boasts 11 ‘Buy’ endorsements, compared to 4 ’Holds’ and 1 ‘Sell’.

Profitability-wise, ABBV has a t-12 profit and operating margin of 8.89% and 29.67%, respectively. The $102.84 billion market cap company currently prints a one year return of about 33% and a year-to-date return of less than one percent.

The chart below shows where the equity has traded over the last 52 weeks.

General Motors Company (GM) dropped $1.15 to $36.01 in pre-market trading after it reported fiscal-first quarter earnings.

The automaker handed in non-GAAP earnings of $0.86 per share on revenue of $35.70 billion, missing Wall Street estimates of $0.96 per share on revenue of $36.91 billion. First-quarter net income was $900 million, or $0.56 per diluted share, up $800 billion from first quarter 2014.

“Our results in the first quarter provide a solid foundation to achieve our financial commitments for the year,” said in a statement GM CEO Mary Barra. “Continued execution of our plan, including our capital allocation framework, will drive profitable growth, return on invested capital and shareholder value.”

GM currently prints a one year return of 12.32% and a year-to-date return of 7.32%.

The chart below shows where the equity has traded over the last 52 weeks.

Dunkin’ Brands Group, Inc. (DNKN) rallied $4.09, or 9%, to $51.81 in pre-market trading after it reported fiscal results for the first quarter.

In its quarterly report, the Canton, Massachusetts-based company said it earned $0.40 per share, well above the $0.35 per share analysts were expecting. Revenue rose 8.1% to $185.9 million, above views for $180.71 million. Net income came in 11.7% higher to $25.6 million, or 25 cents per share, from $23 million, or 21 cents per share, a year earlier.

Same-store sales, a key measure of a retailer’s health, rose 2.7 percent.

“This was a really strong quarter and we are delighted with the performance of our product and marketing programs given the severe weather that we experienced in many of the markets where our restaurants are located. Our Dunkin’ Donuts U.S. franchisees got the year off to a strong start by demonstrating great flexibility and resiliency in dealing with the challenging circumstances,” said in a statement Dunkin’ Brands Chairman and Chief Executive Officer Nigel Travis

For FY/15, DNKN provided EPS guidance of $1.87 – $1.91 versus consensus of $1.86 per share.

Profitability-wise, DNKN has a t-12 profit and operating margin of 23.56% and 42.48%, respectively. The $4.66 billion market cap company reported $340.39 million in cash vs. $2.47 billion in debt in its most recent quarter.

DNKN currently prints a one year loss of about 0.68% compared with an 12.21% gain in the S&P 500.

The chart below shows where the equity has traded over the last 52 weeks.

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