The Press Room @ OutsideIn Research

Thursday
Feb232012

Where are corporate profit margins in the economic recovery cycle? 

I have often believed that when corporate show $1.00 EPS, investors will find their stock. Now on the case of the ENTIRE stock market, we are beginning to see that come true and this article at Motley Fool covers it:

"While the economy might be in the early stages of recovery, corporate profits could be in the final, dying days of their own rebound. They point to profit margins, or the ratio of net income to sales. Since 1947, corporate profits have averaged about 6% of gross domestic product. Today, they're 9.8% of GDP. And as my colleague Alex Dumortier has shown, margins tend to be mean-reverting. If current profit margins shrink back to their historical norm, it could whack corporate profits -- and stocks.

Fearing a decline in profit margins is a fair point that shouldn't be ignored. But I think it's overblown. The connection between profit margins and profit growth is probably smaller than most assume. And the connection between profit margins and actual stock returns is virtually nonexistent.

Since 1950, here's how real (inflation-adjusted) corporate profit growth stacks up against corporate profit margins:

Period

Real Corporate Profit Growth

Profit Margin at Beginning of Period

1950-60                   1.8%                          9.8%
1960-70                   2.1%                          5.5%
1970-80                   6.9%                          4.2%
1980-90                   (1.9%)                          5.6%
1990-00                   5%                          4.6%
2000-10                   7.7%                          5.1%
Current                   --                           9.8%

 

This article at Business Insider talks about how "phantom corporate profits generated by a devaluing dollar will vanish":

"One of the dirty little secrets of the stock market rally is that the rising corporate profits that powered it are largely phantom profits. Why are they phantom? Because they are artifacts of currency devaluation, not an increase in efficiency or production of goods and services.

Though few domestic observers make mention of it, the large, global U.S.-based corporations are now dependent on non-U.S. sales for about 40% of their revenues (50% and up for many companies) and virtually all their profit growth. Overseas sales are made in the local currency: the euro, yen, renminbi, Australian dollar, Canadian dollar and so on, and the profits are stated in U.S. dollars on corporate profit and loss statements."

Clearly corporates are doing much more spending as we are seeing many companies doing early in the year qualitative research projects in comparison to recent years. More to come.
Wednesday
Feb222012

GP Strategies Corporation to Report Fourth Quarter and Fiscal Year 2011 Results on February 29, 2012

GP StrategiesElkridge, MD. February 23, 2012 - GP Strategies Corporation (NYSE: GPX), a global performance improvement solutions provider of sales and technical training, e-Learning solutions, management consulting and engineering services, will release its fourth quarter and fiscal year 2011 results on Wednesday, February 29, 2012.

The Company has scheduled an investor conference call for 10:00 a.m. ET on February 29, 2012. In addition to prepared remarks from management, there will be a question and answer session on the call. The dial-in number for the live conference call will be 888-227-6492 or 303-223-2683 using conference ID number 21580547. A telephone replay of the call will also be available beginning at 12:00 p.m. on February 29th and will be available until 12:00 p.m. on March 14th. To listen to the replay, dial 800-633-8284 or 402-977-9140, using conference ID number 21580547. A replay will also be available on GP Strategies’ website shortly after the conclusion of the call.

About GP Strategies

GP Strategies, a NYSE-listed company (GPX), is a global performance improvement solutions provider of sales and technical training, e-Learning solutions, management consulting and engineering services. GP Strategies’ solutions improve the effectiveness of organizations by delivering innovative and superior training, consulting and business improvement services, customized to meet the specific needs of its clients. Clients include Fortune 500 companies, manufacturing, process and energy industries, and other commercial and government customers. Additional information may be found at www.gpstrategies.com.

Contacts

Scott N. Greenberg            Sharon Esposito-Mayer              Ann M. Blank

Chief Executive Officer         Chief Financial Officer                    Investor Relations        

410-379-3640                     410-379-3636                             (410) 379-3725

Thursday
Feb162012

Bringing back the jobs to the U.S.A. - Alan Shortall of Unilife Corp on Fox Business; $UNIS

In this video at FOX Business, Unilife Corp's CEO Alan Shortall talks about the decision to move Unilife's production facility to the United States, leaving China for Pennsylvania. Unilife will be visiting The White House tomorrow:

Unilife Corp. (NASDAQ: UNIS; Stock Twits: $UNIS) is a U.S. based developer, manufacturer and supplier of advanced drug delivery systems with state-of-the-art facilities in Pennsylvania. Established in 2002, Unilife works with pharmaceutical and biotechnology companies seeking innovative devices for use with their parenteral drugs and vaccines. Unilife has developed a broad, differentiated proprietary portfolio of its own injectable drug delivery products, including the Unifill® and Unitract® product lines of safety syringes with automatic, operator controlled needle retraction. Unifill represents the world's first prefilled syringe technology integrating safety within the primary drug container. The products are ideally positioned to help pharmaceutical companies maximize the lifecycle of their injectable drugs and enhance patient care. Unifill syringes, together with other devices that are part of the Unilife technology platform, can either be supplied to pharmaceutical customers ready for use, or customized to address the specific requirements of targeted novel drugs.

Monday
Feb132012

Nuance Communications (NASDAQ: NUAN) misses 

Nuance Communications (NASDAQ: NUAN) fell short of last week's analyst expectations. For the first quarter of fiscal 2012 company earned its GAAP-based revenue near $360.6 million, depicting an increment of 18.7% as compared to GAAP revenue of $303.8 million in the first quarter of fiscal 2011. Analyst had predicted 28.5%.

However on other side company’s non-GAAP revenue recorded $382.0 million, including about $21.4 million of lost of revenue to accounting treatment in collaboration with acquisitions.

Meantime. Nuance’s non-GAAP revenue surged 20.4% for first quarter fiscal 2012 as compared to non-GAAP revenue of $317.3 million in the same quarter last year.

More to come.

Thursday
Feb092012

Update on the Energy Services Group @ GP Strategies Call ($GPX)

GP Strategies' Energy Services Group provides engineering services, products and training primarily to electric power utilities. Its proprietary EtaPRO Performance and Condition Monitoring System helps power plants in 32 countries meet their goals for reliability, capacity and efficiency. In addition, the Group provides web-based training through its GPiLEARN portal to over 30,000 power plant personnel across the globe.

Today, the company put out a press release that stated:

"GP Strategies Energy Services group will hold its 9th Annual Users' Workshops for its EtaPRO and GPiLEARN flagship products at the Tempe Mission Palms from April 30-May 3 in Phoenix, AZ.

The GPiLEARN and EtaPRO Workshops are co-located for keynote addresses and social networking events. The Workshops are an opportunity for Technical Leaders, System Administrators and Plant Managers to benchmark their programs, stay abreast of the latest technology developments and provide input to GP Strategies for future development activities.

"Attending these workshops is a cost-effective way for our customers to stay current with the latest improvements in our technologies as well as share best practices with their peers. The combination of hands-on workshops, seminars and networking opportunities is a high-value experience for our customers and has always been well received. Our goal is to help our customers maximize performance of their key assets -- their people and equipment -- and these workshops are a great way to accomplish this," said Rich DesJardins, Vice President of Energy Services.

Registration is currently available through www.EtaPRO.com or www.GPiLEARN.com; group and early registration discounts are available through February 29, 2012."

GP Strategies (NYSE: GPX) also provides the following global performance improvement services: sales and technical training, eLearning solutions, management consulting and engineering services. Clients include Fortune 500 companies, manufacturing, process and energy industries, and other commercial and government customers.