Philip Morris Raises 2024 Guidance, Shares Catapult to All-Time Highs
October 22, 2024
Image: Shares of Philip Morris catapult to all-time highs. By Brian Nelson, CFA On October 22, Philip Morris (PM) reported better than expected third quarter results that showed a beat on both the top and bottom lines. Reported net revenue advanced 8.4% on 11.6% organic growth in the quarter. Gross profit increased 9.5% on reported basis and 13% organically. Operating income was up 8.4% on a reported basis and 13.8% organically versus the prior year’s quarter. Adjusted diluted earnings per share, excluding currency, came in 18% higher versus last year’s quarter, to $1.97 per share. Management was pleased with the performance: In the third quarter, we delivered exceptionally strong performance, with record quarterly net revenues and earnings per share. This
Procter & Gamble Maintains Outlook for Fiscal 2025
October 21, 2024
Image: P&G maintained its outlook for fiscal 2025, as shares flirt with all-time highs. By Brian Nelson, CFA On October 18, Procter & Gamble (PG) reported mixed first-quarter fiscal 2025 results with revenue coming in lower than the consensus forecast, while non-GAAP earnings per share edged out what the Street was looking for. Fiscal first quarter revenue fell 1% versus the prior year’s quarter, while organic sales advanced 2%, lapping 7% growth in the prior year period. A one percent increase from higher pricing and a one percent increase in organic volume drove the organic sales increase. Organic sales were strong in its Grooming (+3%), Health Care (+4%), and Fabric & Home Care (+3%) segments, while Beauty (-2%) weighed on
Netflix Continues to Deliver on Content and Engagement, Free Cash Flow Robust
October 19, 2024
Image: Netflix’s shares are trading at all-time highs. By Brian Nelson, CFA On October 17, Netflix (NFLX) reported better than expected third quarter results with both revenue and GAAP earnings per share coming ahead of the consensus forecast. In the quarter revenue grew 15% on a year-over-year basis (21% on an F/X neutral basis), while the firm put up an operating margin of 29.6% versus 22.4% in the year-ago period. Global streaming paid memberships advanced 14.4%, to 282.72 million, as the firm recorded 5.07 million global streaming paid net additions on a sequential basis. Third quarter operating income advanced 52% year-over-year in the quarter. Net cash provided by operating activities was $2.32 billion in the quarter, while the firm hauled
Dividend Increases/Decreases for the Week of October 18
October 18, 2024
Below we provide a list of firms that raised their dividends during the week ending October 18. 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 AVI Limited (AVSFY): now $0.8942 per share semi-annual dividend, was $0.3815. Avnet (AVT): now $0.55 per share quarterly dividend, was $0.33. Blackstone (BX): now $0.86 per share quarterly dividend, was $0.82. Discovery Limited (DCYHY): now $0.1585 per share semi-annual dividend, was $0.0733. Dorchester Minerals (DMLP): now $0.9957 per share quarterly dividend, was $0.7020. dormakaba Holding AG (DRMKY): now $0.0812 per share semi-annual dividend, was
Kinder Morgan’s Dividend Is Much Healthier These Days
October 17, 2024
Image: Kinder Morgan’s shares have done quite well thanks to improved free cash flow performance. By Brian Nelson, CFA On October 16, pipeline giant Kinder Morgan (KMI) reported weaker than expected third quarter results, with both revenue and non-GAAP earnings per share coming in lower than what the Street was looking for. Adjusted EBITDA expanded 2% in the third quarter on a year-over-year basis, while net income attributable to KMI came in at $625 million, higher than the $532 million mark it posted in the year-ago quarter. Third quarter earnings per share was up 17% compared to the same period last year, but adjusted earnings per share of $0.25 and distributable cash flow of $0.49 per share were flat on
Taiwan Semiconductor Benefiting from Strong Smartphone and AI Demand
October 17, 2024
Image: Taiwan Semiconductor released better than expected results. By Brian Nelson, CFA Taiwan Semiconductor (TSM) reported excellent third quarter results on October 17. In the quarter, consolidated revenue came in at NT$759.69 billion, net income was NT$325.26 billion while diluted earnings per share was NT$12.54 (US$1.94 per ADR unit), all coming in ahead of expectations. On a year over year basis, revenue grew 39%, while net income and diluted earnings per share increased 54.2%. On a sequential basis, revenue advanced 12.8%, while net income leapt 31.2% higher. Return on equity was 33.4% in the quarter, up 7.6 percentage points on a year-over-year basis. On a US-dollar basis, third quarter revenue of $23.5 billion advanced 36% year-over-year, ahead of guidance calling
ASML Holding Lowers 2025 Outlook
October 16, 2024
Image: ASML Holding is falling from recent highs as its third quarter report and outlook disappointed investors. By Brian Nelson, CFA On October 15, ASML Holding (ASML) reported disappointing results for the third quarter of 2024, as the firm’s quarterly net bookings were weaker than the market was expecting. Third quarter total net sales were €7.5 billion (better than consensus of €7.17 billion), while it put up a gross margin of 50.8%, resulting in net income of €2.1 billion in the quarter (better than consensus of €1.91 billion). The big news, however, was that net bookings in the third quarter were €2.6 billion versus consensus expectations of €5.39 billion. Management had the following to say about the quarter, adjusting its
Goldman Sachs Beats Third Quarter Estimates, Puts Up Strong Economic Returns
October 16, 2024
Image: Goldman Sachs’ shares have done well the past couple years. By Brian Nelson, CFA On October 15, Goldman Sachs (GS) reported better than expected third-quarter results with revenue and GAAP earnings per share topping the consensus forecast. Net revenue and net earnings in the quarter came in at $12.7 billion and $2.99 billion, respectively, while diluted earnings per common share was $8.40 for the third quarter of 2024, better than the consensus forecast of $6.92 per share. Net revenues were up 7% year-over-year thanks to higher net revenues in Global Banking & Markets and Asset & Wealth Management, offset in part by lower net revenues in Platform Solutions, while diluted earnings per share was modestly lower on a year-over-year
Johnson & Johnson’s Shares Look Fairly Valued
October 16, 2024
By Brian Nelson, CFA Johnson & Johnson (JNJ) reported third-quarter results on October 15 that beat the consensus forecast for both revenue and non-GAAP earnings per share. The company posted adjusted operational sales growth of 5.4% thanks to 6.4% expansion in Innovative Medicine and 3.7% growth in MedTech, while adjusted earnings per share came in at $2.42 in the quarter, down 9% as acquired IPR&D impacted results. Year-to-date free cash flow came in approximately $14 billion, up from $12 billion in the year ago period. J&J noted that it continues to advance its pipeline, including approvals for TREMFYA in ulcerative colitis and RYBREVANT + LAZCLUZE in non-small cell lung cancer. Management commentary was upbeat in the quarter: Johnson & Johnson’s
UnitedHealth Remains a Free Cash Flow Generating Powerhouse
October 15, 2024
Image: UnitedHealth’s shares have done well the past few years, but a gloomy outlook for 2025 has prompted a selloff. By Brian Nelson, CFA United Health (UNH) reported better than expected third quarter results on October 15. Third quarter revenue grew $8.5 billion, to $100.8 billion, thanks to growth in people served at Optum and UnitedHealthcare. Adjusted earnings from operations came in at $9 billion, which includes the Change Healthcare business disruption impacts, but excludes the cyberattack and direct response costs. Adjusted earnings per share was $7.15 in the quarter. The big concern in the quarter was the firm’s medical care ratio: The third quarter 2024 medical care ratio was 85.2% compared to 82.3% last year. Among factors contributing to
