Apple and Caterpillar Results

I did my research over the past few days and this is what I came up with. First let’s start with the tech giant Apple (AAPL).

Apple (AAPL) reported record revenue and had the highest earnings in company history. They reported revenue of $20.34 Billion and net quarterly earnings of $4.31 billion. That comes out to $4.64 per diluted share. This time last year Apple made $12.21 Billion with earnings of $2.53 Billion or $2.77 a share. They earned 67.5% more a share from a year ago. $4.64 vs. $2.77. That’s works out to be $1.87 more a share. That is a phenomenal number! Apple sold 3.89 million macs, 14.1 million iPhones (Up 91% from last year), 9.05 million iPods, and 4.19 million iPads. All products were up in unit growth – the iPod which was down 11% from a year ago. International growth continues to drive sales.

The numbers are very promising for Apple in the near future. As of today Verizon is now offering the iPad in stores. I’m interested to see next quarter numbers with the addition of Verizon. The iPhone is the largest revenue driver for Apple and with the new release of the white iPhone (Different Color) in the coming months, there should be a nice spike in iPhone sales. Also, the introduction of Apple TV should add another line of revenue to the company.

The Holiday is always a great time for tech gadgets and Apple should benefit nicely from the Christmas season. Apple continues to improve the strength of their business and I don’t see this company letting up anytime soon. This is still a strong buy for me. I can’t even explain what Apple has in store next as the conference call was full of exciting up and coming business. You have to listen for yourself to understand the positive outlook for Apple’s future. Check it out!

Conference Call

http://www.apple.com/quicktime/qtv/earningsq410/

Next let’s move onto the Peoria Powerhouse! Better known as Caterpillar (CAT)

Caterpillar (CAT) had a great number as I mentioned last week. Compared to last year Caterpillar is on a roll! They earned $1.22 vs. $0.64 this is a $0.58 a share increase from 2009 3rd quarter earnings. That’s an increase of 90.6% in earnings per share. Now here is my take on the earnings. CAT is doing extremely well! The increase in sales volume, favorable pricing, and an improvement in manufacturing costs helped Caterpillar rise to the top for the 3Q 2010 earnings. Other positives include an increase in 2010 sales and revenue from a range of $39 to $42 Billion to a revised number of $41 to $42 Billion. This is slightly higher, but definitely an improvement. The 2011 outlook continues the upward trend at a projection close to $50 Billion. The potential for an $8 Billion increase in sales and revenue should attract new investors. Caterpillar continues to increase their exposure internationally, which should drive sales for 2011.

From browsing over the numbers all sales and revenue were up in all geographical regions compared to the 3rd quarter last year (2009). Much of the growth has come from the machinery side of the business. Machinery sales and revenues were up 89% in North America, 121% in Latin American, 60% in EAME, and 81% in Asia/Pacific. Over 60% of sales and revenue was generated internationally. Engine sales were up 21% from 2009, but I see the bulk of the money being made in machinery. The outlook for 2011 is promising due to the favorable growth rates of the developing countries. The standout for growth has Asia/Pacific in the lead projected to grow at 7.5%.

With increased pricing in commodities into 2011 the demand for Caterpillar’s products should strengthen. The last thing I would like to say is even in hard times Caterpillar was still able to add 6,200 Full time jobs and 9,000 agency/part-time workers in 2010. The Peoria Powerhouse makes money and creates jobs! It’s flat out beautiful to see a company make tremendous strides from a year ago. My take (CAT is a strong BUY!) The story of the Peoria Powerhouse continues on! Yeah Buddy!


P.S. Westport Innovations (WPRT) just received a big purchase order for 180 Peterbilt liquefied natural gas (LNG) trucks including Westport HD Systems. The purchasing company is Robert Transport out of Boucherville, Quebec. Looks like this natural gas thing may be catching on. Hmm! My take (WPRT goes higher!)

Have a great night. I will be back in action on Thursday!

Clay-

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