On July 27, Canon (NYSE:CAJ) released second-quarter earnings for the period ending June 30, 2006. Numbers below are U.S. dollar year-over-year comparisons. Some highlights:
- Local currency sales, operating income, and net income grew 12.8%, 32.6%, and 28.8% respectively.
- There were continued margin improvements.
- The first half saw strong free cash flow growth, but forecasted capital expenditures will curtail that growth in the second half.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$0 |
$8,948 |
$8,221 |
8.8% |
|
Net Profit |
-- |
$921 |
$741 |
24.3% |
|
EPS |
$0.00 |
$1.04 |
$0.83 |
25.3% |
|
Diluted Shares |
888 |
888 |
0.0% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
49.58% |
48.26% |
1.32 |
|
Operating Margin |
16.36% |
13.91% |
2.45 |
|
Net Margin |
10.29% |
9.01% |
1.28 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets | Q2 2006 | Q2 2005 | Change |
|---|---|---|---|
Cash + ST Invest. | $9,266 | $8,457 | 9.6% |
Accounts Rec. | $5,545 | $4,893 | 13.3% |
Inventory | $4,639 | $4,385 | 5.8% |
Liabilities | Q2 2006 | Q2 2005 | Change |
|---|---|---|---|
Accounts Payable | $4,187 | $3,946 | 6.1% |
Long-Term Debt | $141 | $226 | (37.7%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
YTD 2006 | YTD 2005 | Change | |
|---|---|---|---|
Cash From Ops. | $2,816 | $2,324 | 21.2% |
Capital Expenditures | $1,814 | $1,568 | 15.7% |
Free Cash Flow | $1,002 | $756 | 32.6% |
Find out why Fools always follow the money.
Related Companies:
- Sony (NYSE:SNE)
- Hewlett-Packard (NYSE:HPQ)
- Matsushita Electric Industrial (NYSE:MC)
- NEC (NASDAQ:NIPNY)
- Xerox (NYSE:XRX)
- Lexmark (NYSE:LXK)
Related Foolishness:
- Foolish Fundamentals: Enterprise Value
- Foolish Fundamentals: Valuation
- Foolish Fundamentals: Return on Invested Capital
- Foolish Fundamentals: GAAP
- Foolish Fundamentals: Cash Conversion Cycle
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication,Nathan Parmelee had a position in Canon but no positions in any of the other companies mentioned. Fool rules are here.
