McDonald’s, Verizon Highlight Big Morning of Earnings Reports

McDonald's (NYSE: MCD ) was the shining star on a Tuesday morning chock full
of earnings report, growing earnings in double-digits for the 10th consecutive
quarter. McDonald's reported earnings of $1.38 billion ($1.33 per share),
trumping last year's $1.24 billion ($1.16) by 10%. Its EPS were 3 cents more
than Thomson Reuters I/B/E/S analyst expectations. Same-store sales were up more
than 7%, with the biggest increases coming in the U.S. and Europe, though
McDonald's also saw same-store sales increase 6.9% in the Asia/Pacific region,
the Middle East and Africa. The company also reported full-year EPS of $5.27, up
15% from the year-ago period. McDonald's was the top Dow Jones stock of 2011 ,
and MCD shares are up 35% in the past 52 weeks. Verizon (NYSE: VZ ) was on the
opposite end of the spectrum, posting a fourth-quarter loss of $2 billion, or 71
cents per share, mostly thanks to a pension charge. Strong sales of the Apple
(NASDAQ: AAPL ) iPhone Verizon subsidizes the price for consumers also bore
into earnings. The loss is in stark contrast to earnings of 93 cents per share
in the year-ago period. Excluding the one-time charges, Verizon earned 52 cents
per share, a penny short of analysts' expectations and down 2 cents from Q4
2010, though revenue of $28.4 billion was on par. VZ stock is up 10% in the past
52 weeks but down 4% year-to-date. Other big companies reporting earnings
Tuesday morning: DuPont (NYSE: DD ) beat Wall Street estimates by 2 cents with
adjusted EPS of 35 cents per share. Its total earnings were down just slightly,
from $376 million in Q4 2010 to $373 million this year. However, DuPont's
$8.43 billion in sales were short of expectations for $8.53 billion, though
still up 14% from the year-ago period. Johnson & Johnson (NYSE: JNJ ) reported
adjusted earnings of $1.13 per share, beating expectations for $1.09. However,
an almost $3 billion charge for product recalls put total earnings at $218
million, down from $1.9 billion in Q4 2010. However, JNJ disappointed Wall
Street with full-year forecasts of $5.05 to $5.15 EPS, below expectations of
$5.21. The Travelers Companies (NYSE: TRV ) matched analyst expectations with a
large earnings drop from the year-ago period. TRV reported earnings of $618
million ($1.51 per share), down 31% from 2010. Slightly higher revenues of $6.37
billion beat estimates of $5.47 billion. Kyle Woodley, InvestorPlace.com
Assistant Editor