Optimistic Company: W.W. GraingerKey Attributes
- Raised the bottom end of its fiscal year earnings guidance, and left top end unchanged.
- Conveniently overlooked any relevant comments on Europe in its 8-K and 10-Q SEC forms -- positive spin.
- Supported claims by pointing out double-digit percentage sales gains by month. However, the final month of the quarter was June, before a coordinated global economic slowdown ensued, especially in manufacturing. (This is an important sector for company, and has been an earnings driver.)
- Sales in the second half have been planned up 10% to 13%, with flat sequential gross margins. In English: Good luck with these targets, given global macro trends.
- Soz Says: Head for the hills. This is not worth losing sleep over the next three days.
Seemingly Realistic Company: Texas InstrumentsKey Attributes
- Orders slowed in June.
- Backlog coverage for September was lower than normal.
- Quarter-over-quarter revenue variance was worse vs. typical seasonality.
- Investment in research and development pared back a bit for the full year.
- Soz Says: Stock price is supported by QE expectations, but fundamentals don't support the valuation.