HP Inc. Sets Q1’25 Expectations Below Consensus, Dividend Looks Healthy
January 6, 2025
Image Source: HP Inc. By Brian Nelson, CFA HP Inc. (HPQ) recently reported fourth quarter results for its fiscal 2024. Fourth quarter net revenue was up 1.7% (2.3% in constant currency) from the prior-year period, while fourth quarter non-GAAP diluted earnings per share of $0.93 was roughly in-line with the company’s previously provided outlook between $0.89-$0.99. Net cash provided by operating activities was $1.6 billion, while free cash flow totaled $1.5 billion in the quarter. The company returned $1.2 billion to shareholders in the form of share purchases and dividends in the quarter, while it raised its dividend 5%. Management had the following to say about the quarterly results: We are pleased with our Q4 performance where we saw revenue
Dividend Increases/Decreases for the Week of January 3
January 3, 2025
Below we provide a list of firms that raised their dividends during the week ending January 3. 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 Agricultural Bank of China (ACGBY): now $0.4001 per share semi-annual dividend, was $0.3101. Alamo (ALG): now $0.30 per share quarterly dividend, was $0.26. B3 S.A. – Brasil, Bolsa, Balcão (BOLSY): now $0.0282 per share quarterly dividend, was $0.0183. Bank OZK (OZK): now $0.42 per share quarterly dividend, was $0.41. Barloworld Limited (BRRAY): now $0.1718 per share semi-annual dividend, was $0.0684. Benchmark Bankshares, Inc. (BMBN):
FedEx Lowers Fiscal 2025 Guidance Again, Plans to Separate FedEx Freight
January 1, 2025
Image: FedEx’s shares have come roaring back since its bottom in the back half of 2022. By Brian Nelson, CFA FedEx (FDX) recently reported mixed fiscal second quarter results with the company missing on the top line, but beating the consensus forecast for non-GAAP earnings per share. Non-GAAP adjusted revenue fell to $22 billion from $22.2 billion in the prior-year quarter, while adjusted operating income dropped to $1.38 billion from $1.42 billion in the same quarter of fiscal 2024. Its adjusted operating margin fell to 6.3% from 6.4%, while adjusted net income fell to $0.99 billion from $1.01 billion previously. Thanks to share buybacks, adjusted diluted earnings per share increased to $4.05 from $3.99 in the prior-year quarter. Here’s more
Costco’s Business Humming Along Nicely, But Stock Is Not Cheap
January 1, 2025
Image Source: Costco By Brian Nelson, CFA Costco Wholesale (COST) recently reported first quarter results for fiscal 2025, with revenue and non-GAAP earnings per share coming in ahead of expectations. Net sales for the first quarter advanced 7.5%, to $60.99 billion from $56.72 billion in the year ago period. Total comparable store sales, after adjusting for the impact of changes in gasoline prices and foreign exchange, increased 7.1% versus the consensus estimate of 6.3%. Comparable traffic rose 5.1%, while comparable ticket edged higher 0.1%. Costco experienced 13.2% adjusted e-commerce expansion in the period. Costco shared some fun facts about growth in its business on the conference call: Our U.S. bakery division has reached new records of 4.2 million pies being
How Does 37% Sound?
December 29, 2024
Image: The Schwab U.S. Large Cap Growth ETF (SCHG) is up more than 37% so far in 2024. By Brian Nelson, CFA How does 37% sound? That was the price-only performance of the Schwab U.S. Large Cap Growth ETF (SCHG) thus far in 2024. Over the preceding 5-year period, the SCHG is up over 140%. For years, I have pounded the table on the theory that there are not value or growth stocks, but rather undervalued, fairly valued, or overvalued stocks. It’s why many growth stocks can be undervalued. It’s the Theory of Universal Valuation found in Value Trap that ties myriad areas of finance to the well-known discounted cash-flow [DCF] model. Growth is a component of value. Hook, line,
Nike’s Revenue Under Considerable Pressure; Turnaround Will Take Time
December 27, 2024
Image: Nike’s shares have been under considerable pressure as sales results disappoint. By Brian Nelson, CFA Nike (NKE) reported second quarter earnings on December 19 that beat on both the top and bottom lines. However, quarterly revenues still fell 8% on a reported basis and were down 9% on a currency-neutral basis. NIKE Brand revenues fell 7% on a reported basis and 8% on a currency-neutral basis. NIKE Direct revenues dropped 13% on a reported basis and 14% on a currency-neutral basis, while wholesale revenues fell 3% on a reported basis and 4% when holding currency neutral. Converse revenues declined across all territories, falling 17% on a reported basis and 18% on a currency-neutral basis. Nike’s gross margin dropped 100
Dividend Increases/Decreases for the Week of December 27
December 27, 2024
Below we provide a list of firms that raised their dividends during the week ending December 27. 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 Cadiz Inc. 8.875% DEP PFD A (CDZIP): now $0.56 per share quarterly dividend, was $0.55. Centrais Elétricas Brasileiras S.A. – Eletrobrás (EBR): now $0.1414 per share annual dividend, was $0.0789. Crazy Woman Creek Bancorp (CRZY): now $0.32 per share annual dividend, was $0.31. Preferred Bank (PFBC): now $0.75 per share quarterly dividend, was $0.70. United Bancorporation of Alabama (UBAB): now $0.60 per share semi-annual
Shares of UnitedHealth Group and Vertex Pharma Sour
December 19, 2024
Image Source: Rodrigo Senna cc by 2.0. By Brian Nelson, CFA Over the past few weeks, UnitedHealth Group (UNH) has faced a plethora of negativity. First, UnitedHealthcare CEO was shot and killed – not UnitedHealth Group’s CEO Andrew Witty – but the CEO of its health benefits unit. The killing happened right before UnitedHealth’s plans for its annual Investor Day. The event sparked social media outrage against U.S. health insurers. There has also been new legislation introduced to potentially break up pharmacy benefit managers. President-elect Donald Trump has also made statements to the effect of breaking up the middlemen in reference to the pharmacy benefit managers. As of right now, we continue to monitor the situation, but the risks have substantially
