AT&T Is Targeting $16+ Billion in Free Cash Flow in 2025
May 28, 2025
Image: AT&T’s shares have performed well of late. By Brian Nelson, CFA AT&T (T) recently reported mixed first quarter results with revenue exceeding the consensus forecast, but non-GAAP earnings per share coming in slightly short of expectations. Revenue came in at $30.6 billion versus $30.0 billion in the year-ago period, while adjusted diluted earnings per share advanced to $0.51 from $0.48 in the year-ago period. Adjusted operating income was $6.4 billion versus $6.0 billion in the year-ago quarter, while operating cash flow totaled $9.0 billion, up from $7.5 billion a year ago. Free cash flow was $3.1 billion versus $2.8 billion a year ago. Management had the following to say about the quarter: Our business fundamentals remain strong, and we
IBM Continues to Target $13.5 Billion in Free Cash Flow for 2025
May 28, 2025
Image: IBM’s shares have done quite well the past few years. By Brian Nelson, CFA IBM (IBM) recently reported first quarter results that beat the consensus estimate for both revenue and non-GAAP earnings per share. Revenue increased 2% at constant currency, with software revenue up 9% in constant currency and consulting revenue flat at constant currency. Infrastructure revenue was down 4% at constant currency. IBM’s profitability improved 190 basis points at the non-GAAP gross margin level, while it was up 50 basis points at the non-GAAP pre-tax margin level. In the quarter, IBM hauled in $4.4 billion in operating cash flow and $2 billion in free cash flow. Management had the following to say about the quarter: We exceeded expectations
ASML Delivers Despite Tariff Uncertainty
May 27, 2025
Image: ASML Holding’s shares have been choppy during the past couple years. By Brian Nelson, CFA ASML Holding NV (ASML) recently reported mixed first quarter results with net sales missing the consensus forecast, but GAAP earnings per share coming in better than expected. First quarter total net sales were €7.7 billion on a gross margin of 54%. Net income came in at €2.4 billion, while total quarterly net bookings were a healthy €3.9 billion. Management had the following to say about the quarterly performance: Our first-quarter total net sales came in at €7.7 billion, in line with our guidance. The gross margin was 54.0%, above guidance, driven by a favorable EUV product mix and the achievement of performance milestones. In
Dividend Increases/Decreases for the Week of May 23
May 23, 2025
Below we provide a list of firms that raised their dividends during the week ending May 23. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Alerus Financial (ALRS): now $0.21 per share quarterly dividend, was $0.20. Bay Commercial Bank (BCML): now $0.20 per share quarterly dividend, was $0.15. Cross Timbers Royalty Trust (CRT): now $0.0808 per share monthly dividend, was $0.0321. dLocal (DLO): now $0.0521 per share quarterly dividend. Equitable Holdings (EQH): now $0.27 per share quarterly dividend, was $0.24. Flowers Foods (FLO): now $0.2475 per share quarterly dividend,
Target Navigating a Highly Challenging Environment
May 22, 2025
Image Source: TradingView By Brian Nelson, CFA On May 21, Target Corporation (TGT) reported weak first quarter results with both revenue and non-GAAP earnings per share coming in lower than expectations. Net sales dropped 2.8% on a comparable sales decline of 3.8%, while adjusted earnings per share of $1.30 compared to adjusted earnings per share of $2.03 in the first quarter of 2024. Management had the following to say about the retail environment: In the first quarter, our team navigated a highly challenging environment and focused on delivering the outstanding assortment, experience and value guests expect from Target. While our sales fell short of our expectations, we saw several bright spots in the quarter, including healthy digital growth, led by
Walmart Talks of Higher Prices Due to Tariffs; Trump Takes Exception
May 19, 2025
By Brian Nelson, CFA On May 15, Walmart (WMT) released first quarter fiscal 2026 results that showed revenue and non-GAAP earnings per share coming in ahead of expectations. Revenue grew 2.5%, up 4% in constant currency, while operating income advanced 4.3%, or 3% when adjusted for constant currency. Walmart U.S. comp sales increased 4.5% with particular strength in health & wellness and grocery. E-commerce grew 22% thanks in part to store fulfilled pickup & delivery and marketplace and achieved profitability in the U.S. and globally in the first quarter for the first time. Though Walmart’s performance was solid in the fiscal first quarter, the Street focused on the executive team’s commentary regarding tariffs on the conference call: We will do
Dividend Increases/Decreases for the Week of May 16
May 16, 2025
Below we provide a list of firms that raised their dividends during the week ending May 16. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Advanced Drainage Systems (WMS): now $0.18 per share quarterly dividend, was $0.16. Aimia Inc. PFD-1 (AIM.PR.A:CA): now CAD 0.3926 per share quarterly dividend, was CAD 0.3001. Bunge (BG): now $0.70 per share quarterly dividend, was $0.68. Caribbean Utilities (CUPUF): now $0.190 per share quarterly dividend, was $0.185. Chubb (CB): now $0.97 per share quarterly dividend, was $0.91. Curtiss-Wright (CW): now $0.24 per share quarterly
Dick’s Sporting Goods to Acquire Foot Locker
May 15, 2025
Image: Dick’s Sporting Goods’ shares sold off on its announcement that it would acquire Foot Locker. By Brian Nelson, CFA On May 15, Dick’s Sporting Goods (DKS) announced that it would acquire Foot Locker (FL) in a transaction that implies an equity value of $2.4 billion and enterprise value of $2.5 billion. Foot Locker shareholders can elect to receive either $24.00 in cash or 0.1168 shares of Dick’s Sporting Goods common stock for each share of Foot Locker stock they own. Dick’s intends to finance the acquisition through a combination of cash on hand and new debt and is expected to close in the second half of 2025. Dick’s intends to operate Foot Locker as a standalone business unit within
Cisco Raises Fiscal 2025 Outlook Again
May 15, 2025
Image: Cisco put up excellent fiscal third quarter results. By Brian Nelson, CFA On May 14, Cisco Systems (CSCO) reported better than expected third quarter fiscal 2025 results, with both revenue and non-GAAP earnings per share coming in higher than the consensus forecast. Revenue increased 11% year-over-year, while non-GAAP earnings per share increased 9% year-over-year, to $0.96 per share, above the high end of its guidance range ($0.90-$0.92). Product orders expanded 20% from the same period a year ago (9% excluding Splunk), while AI infrastructure orders taken from webscale customers exceeded $600 million. Management had the following to say about the quarter: Cisco once again had strong quarterly results with clear demand for our technologies. The momentum we are seeing
