Below we look at potential upside and downside scenarios for The Hartford given shifts in two important components of its value: market share and operating margin.
With global demand recovering and increasing chemical demand from emerging markets such as China, we expect that additional capacity expansions and economies of scale advantages should lead to market share and EBITDA margin growth for this division.
Example: If General Motors wants to slap down Web juggernauts like AOL, Yahoo, Microsoft, Amazon.com, RealNetworks and MP3.com in the race to own the car portal, it will have to do what a Web company does: price for market share, not margin, and then try hard as heck to scale up rapidly.
Local banks appear to share the confidence, extending margin loans for up to 90% of the initial share price.
ECONOMIST: The booming supply of new Chinese shares is about to peak
The profit beat the analyst estimate for 76 cents per share by a wide margin.
FORBES: Wynn Shares Gain After Hotel Revenues Bring Solid Q1 Profit Beat
While Apple continues to increase iPhone sales and gain more smartphone market share, its gross margin is something to watch out for.
As shown in the table below, Apple remains number 1 in tablet market share by a large margin, though its lead is narrowing.
FORBES: Clash Of The Tech Titans: Apple, Google And Amazon Duke It Out
Over the last several quarters, the company has gained market share and delivered robust margin expansion year over year, which resulted in significant earnings growth.
FORBES: Smartphones, Tablets, The Cloud And Guns - All Growth Markets
And yet the article does not mention to the reader that they are estimates and therefore any extrapolation of market share has an unknown margin of error is just wrong.
In short, if the Nokia expert is right about the low labor cost component in its products, Apple could easily raise its prices to pay those Foxconn workers a higher wage without losing market share or its gross margin.
Nokia stayed on their own course, appearing to trade profit margin for market share.
FORBES: A Single Misstep With Symbian Eviscerated Nokia - Will Samsung Suffer A Similar Fate?
The combination of margin erosion and market share loses has turned us Neutral on the stock.
FORBES: Cisco: Some Analysts Abandon Ship After Disappointing Quarter
Instead the company focused on maintaining its market share targets with its lower-margin sales of ordinary cellphones.
Visa anticipates revenue growth staying in the low double digits for fiscal 2013, with a 60% operating margin and earnings per share growth in the high teens.
But the strategy came under the scrutiny after the company saw continuous operating margin declines and market share losses in its core and most profitable markets while its competitors like Unilever fared better amid the same challenging market conditions.
FORBES: P&G Worth $70 As It Slows Emerging Markets Expansion
It does not make sense to sacrifice profit margin just for a greater market share.
The main reason why margin requirements make little difference to share prices is that most prices are set by institutional investors, and not, as popular myth suggests, by crazy day traders.
This press release includes information about non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per share (collectively with non-GAAP gross margin and non-GAAP operating expenses, the "non-GAAP financial measures"), which are not measurements of financial performance prepared in accordance with U.S. generally accepted accounting principles.
Residential air conditioners, for which LG has the world's highest market share at 18%, earn a 5% margin.
Operating income, operating margin, net income, and earnings per share (EPS) are reported on a GAAP and non-GAAP basis.
Google reports operating income, operating margin, net income, and earnings per share (EPS) on a GAAP and non-GAAP basis.
ENGADGET: Google announces Q2 earnings: $9.02 billion in revenue, $2.51 billion in net income
Roper reports results, including revenue, operating margin, net income and diluted earnings per share, on a GAAP and non-GAAP basis.
Android widened its margin to control a whopping 69.7 percent share of the smartphone OS market compared to 20.9 percent for iOS, a bump of 87.8 percent over the quarter.
Government data show that the proportion of people who leave a job because they quit is growing, and now exceeds the share who leave because they are sacked, by a widening margin.
However, news of that lower margin was one of the key reasons for the share price fall as it led investors to fear it would take even longer for the company to become profitable.
Its criteria include: a better than average price-earnings ratio over the past five years, a positive growth rate in earnings per share over the past 12 months, and a positive operating margin over the past 12 months.
The margin Nokia made on handset sales fell, while market share was also down.
However, this number excludes any residual downside to market share from price-conscious consumers, nor does it incorporate the margin pressures described above.
In particular, why does EMC do so well, with a 35% market share in its line of business and a 19% net profit margin?
None of these changes impacts Dell's previously reported consolidated net revenue, gross margin, operating income, net income, or earnings per share.
应用推荐