Now versus Then

Specific investments recommended by advisers on pages 6 through 9 (in each issue, you’ll find them highlighted in blue) are tracked below for one year, until the adviser no longer would buy the investment or until he or she no longer covers it–whichever comes first. It is our hope, however, that many of the investments on this page will prove to be profitable long-term performers, so investors need not sell a holding simply because a year has passed since its original recommendation.

-Despite a plunge in earnings, shares of T. Rowe Price Group (NSDQ: TROW) have seen a huge rally on what appear to be signs of both macro- and micro-level improvement. First quarter earnings fell to $48.2 million from $151.5 million a year ago. The company is cutting almost 300 jobs and instituting more stringent cost control measures, though there are signs of possible improvement in coming quarters. In the fourth quarter the company saw investors pulling funds out of the market–net outflows for the quarter totaled $2.4 billion–but in the first quarter flows turned positive with net inflows of $4.5 billion.

O’Reilly Automotive (NSDQ: ORLY) reported an impressive spike in first quarter revenues as sales jumped 80 percent. Total revenues increased $1.2 billion compared to a year ago, and sales at stores open for at least a year were up 5.7 percent. What drove this outperformance? Drivers are spending more money to keep older cars on the road, and the company’s acquisition of CSK Automotive last year became accretive to earnings. Management expects second quarter earnings per share to be between 50 and 54 cents.

Western Union (WU) has rallied after reporting that net income increased by 8 percent, though revenues were hampered by a strengthened dollar. Consumer-to-consumer transactions rose by 7 percent and consumer-to-business transactions were up 2 percent. Nevertheless, unfavorable currency fluctuations reduced first-quarter revenues to $1.2 billion, a 5 percent decline from the first quarter of 2008. Western Union has also announced a deal to purchase Custom House Ltd, a Canadian outfit that processes payments for 40,000 small business customers in Canada, the US, Italy and New Zealand. The purchase will expand Western Union’s payment services offerings for businesses and is expected to add approximately $100 million to its annual revenues.

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