Yesterday Duncan Energy Partners (DEP: chart, web, Y!) posted its Q4 earnings results for 2008, highlighting a a 58 percent increase in net income to $10.8 million or $0.39 per common unit (diluted).  Compare this to $6.8 million (net), or $0.30 per common unit for Q4 ‘07.

For the quarter, distributable cash flow increased 63 percent to $15.4 million compared to $9.4 million in the same quarter of the previous year.  All told, this represents about a 12% return.

It appears that the distribution is stable on the heals of an increase on January 9th, whereby the board of directors of Duncan Energy Partners’ general partner declared an increase in the quarterly cash distribution rate to $0.4275 per unit for Q4 ‘08.

Unfortunately, the market didn’t appreciate the earnings like I did, as the shares slid another 3% on falling crude oil prices.

While the price action was frustrating, the strength of the business is still appealing, even with a heavy portfolio of oil and gas already.  The yield is still flirting with 10% and the prospects of an ever-increasing distribution look healthy.

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Investing, Stock Thoughts DEP, Duncan Energy Partners, earnings

Oracle (ORCL: chart, web, Y!) posted disappointing quarterly software sales today and hinted that its customers had become more cautious, dispelling the notion that the software sector would be immune to the economic turmoil that has roiled the rest of the tech sector.

As I mentioned last weekend, I suspect Oracles report could serve as a template for future earnings reports to come in the next month for the tech sector. In short, profits may continue to climb, but worries about our economic condition and consumer spending will place a target on revenues and sales. If those numbers don’t meet or exceed the Street’s expectations, look out!

It will be interesting to see how Oracle trades tomorrow. I suspect that shares will fall like a home-sick anvil at the market open, but will rebound a bit towards mid-day, and still close down, but up moderately from the days lows.

I can’t say that I’d buy tech right now, but I’d keep some money at the ready to pick up some shares of solid industry players over the next couple months.

What do you think? Does Oracle serve as a sector indicator? 

Investing earnings, ORCL, tech sector

Walgreen’s (WAG: chart, web, Y!) earnings came out today and they ended up beating Street estimates by 2 cents, and second quarter sales increased by 10.5% on comparable-store sales growth of 4.7%.

While the EPS was up, it didn’t match the sales growth, increasing just 6.5%.

So what’s the beef?

Walgreen’s earnings are commendable, but the fact that earnings aren’t out-growing sales leads me to believe margins are tightening. In fact, gross margins were down 14 basis points for a variety of reasons including mix shift and softer seasonal sales.

Expenses were up 11 basis points as a percentage of sales, however most of the expenses related to the opening of 121 new stores for the quarter.

I think there is still potential for Walgreen’s, but I think there is currently more downside risk than upside reward. There is a shift to generic drugs, with less margin still than the name-brand counterpart, and in these market conditions I think there are better opportunities waiting in the wings.

Stock Thoughts earnings, WAG