Johnson & Johnson Finetunes 2024 Bottom Line Guidance
July 17, 2024
Image: J&J’s shares have faced pressure since the beginning of 2023. By Brian Nelson, CFA Johnson & Johnson (JNJ) reported better-than-expected second quarter results on July 17. The company put up adjusted operational growth excluding the COVID-19 vaccine of 7.1%, while adjusted earnings per share was $2.82, up 10.2% on a year-over-year basis. The company’s Innovative Medicine division experienced an 8.8% worldwide operational revenue increase, excluding the COVID-19 vaccine, thanks to strength in DARZALEX, ERLEADA, TREMFYA, STELARA, SPRAVATO, and its Other Oncology segment. Its MedTech worldwide operational revenue advanced 4.4% thanks to strength in electrophysiology products and Abiomed in its Cardiovascular segment. Management had the following to say about the quarter: Johnson & Johnson’s second quarter performance reflects our relentless
ASML Holding Reports Strong Bookings in Second Quarter
July 17, 2024
Image: ASML Holding has been a strong stock performer since the beginning of 2023. By Brian Nelson, CFA On July 17, ASML Holding (ASML) reported disappointing second quarter 2024 results where revenue fell 10% and operating income dropped 18.9% from the same period a year ago. Net income fell 18.7% in the quarter on a year-over-year basis, with diluted net income per share falling to €4.01 from €4.93 in the same period a year ago. Though the firm’s second quarter performance left a lot to be desired, its bookings number of €5.6 billion (€2.5 billion were EUV) in the quarter was strong, coming in better than the €4.5 billion in bookings won in the same period last year. Management had
UnitedHealth Group Reports Messy Second Quarter Results
July 16, 2024
Image: UnitedHealth Group’s shares have been choppy since the beginning of 2023. By Brian Nelson, CFA UnitedHealth Group (UNH) reported messy second quarter results on July 16 that showed a beat on the bottom line, but in-line performance on the top line. The healthcare giant reported revenue of $98.9 billion, up $6 billion from the same period a year ago thanks to “strong expansion in people served domestically at its Optum and UnitedHealthcare” divisions. Second quarter earnings from operations came in at $7.9 billion, which included a $1.1 billion headwind from “unfavorable cyberattack effects.” Adjusted earnings from operations, which include business disruption impacts but exclude cyberattack direct response costs and the reclassification of its remaining South American operations as held
Fastenal’s Revenue Beat a Positive Read Through to the Broader Economy
July 12, 2024
Image: Fastenal’s second quarter results were a positive read through to the broader economy. By Brian Nelson, CFA On July 12, Fastenal Company (FAST) reported mixed second quarter results where revenue modestly exceeded the consensus forecast, while the company’s GAAP earnings per share was in-line. For the first six months of 2024, net sales advanced 1.8%, while operating income fell 1.4% and net income dropped 0.5%. Diluted earnings per share of $1.03 for the first six months of the year was 0.7% lower than the mark achieved over the same period a year ago. During the second quarter, the company “experienced higher unit sales…primarily due to growth with larger customers and Onsite locations opened in the last two years.” Fastenal
JPMorgan Chase’s Return on Capital Shines in Second Quarter
July 12, 2024
Image Source: Hakan Dahlstrom By Brian Nelson, CFA On July 12, JPMorgan Chase (JPM) reported second quarter results that beat expectations on the top line, but came up a bit short on the bottom line. Managed net revenue came in at $51.0 billion, up 20%, while the company’s provision for credit losses swelled to $3.05 billion. Net income was $18.15 billion in the quarter, resulting in earnings per share of $6.12. Net income excluding significant items of $13.1 billion was $4.40 per share. Return on common equity was 23% in the quarter, while return on common equity was 28%. CEO Jamie Dimon’s commentary on the quarter is found below: The Firm performed well in the second quarter, generating net income of
Dividend Increases/Decreases for the Week of July 12
July 12, 2024
Below we provide a list of firms that raised their dividends during the week ending July 12. 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 Almacenes Exito S.A. American Depositary Share (EXTO): now $0.0113 per share quarterly dividend, was $0.0112. América Móvil (AMX): now $0.2608 per share annual dividend, was $0.2560. Ameren Illinois Company PFD 4.92% (AILLM): now $1.232 per share quarterly dividend, was $1.175. Amerigo Resources Ltd. (ARREF): now CAD 0.04 per share quarterly dividend, was CAD 0.03. AptarGroup (ATR): now $0.45 per share quarterly dividend, was $0.41.
Delta Air Lines Speaks of Industry Fare Pressures
July 11, 2024
Image Source: Colin Brown By Brian Nelson, CFA Delta Air Lines (DAL) reported disappointing second-quarter results on July 11 with both revenue and non-GAAP earnings per share coming in lower than expected. The company put up record June quarter revenue, which reached $15.4 billion on an adjusted operating basis, up 5.4% from the same period a year ago, but the Street was looking for more. Earnings per share of $2.36 also missed the consensus forecast. Though airlines have largely rationalized capacity in recent years, fare pressures are starting to weigh on performance. We maintain our view that airlines are not long-term investments given their leverage to a cyclical economy and volatile jet fuel prices. Management had the following to say about
PepsiCo Adjusts Organic Revenue Growth Guidance
July 11, 2024
Image: PepsiCo’s shares have been choppy since the beginning of 2022. By Brian Nelson, CFA On July 11, PepsiCo (PEP) reported mixed second quarter results with the firm missing estimates slightly on the top line, but exceeding the consensus forecast on the bottom line. Net revenue growth in the second quarter came in at 0.8%, while organic revenue expansion was 1.9%, below the 3% the Street had been expecting. Core earnings per share was $2.28 versus the consensus estimate of $2.16, while core constant currency earnings per share leapt 10% on a year-over-year basis. PepsiCo’s volume was down 2% in the Convenient Foods segment, while it was flat in its Beverages division. Volume fell 4% in Frito-Lay North America, while
3 High Dividend Yielders for Consideration
July 8, 2024
Image: Energy Transfer, Philip Morris, and Altria have outperformed the SPDR S&P 500 Dividend ETF (SDY) since the beginning of 2024. By Brian Nelson, CFA The market remains laser-focused on inflation readings and employment trends – two of the main dynamics that influence policy at the Federal Reserve. Since the beginning of 2024, the market has ratcheted down expectations of rate cuts from as many as 5 or 6 to just 1 or 2 in 2024. With yields on risk-free instruments poised to go lower soon, a focus on high yielding equities may be appropriate for the income investor. Here are three high dividend yielders that we like for consideration. Energy Transfer (ET) Midstream pipeline operator Energy Transfer has come
Constellation Brands’ Beer Business Continues to Propel Results
July 6, 2024
Image Source: Constellation Brands By Brian Nelson, CFA On July 3, alcoholic beverages giant Constellation Brands (STZ) reported mixed first quarter fiscal 2025 results, where revenue came in a bit light relative to expectations, but non-GAAP earnings per share was better than the consensus forecast. Comparable net sales increased 6%, while comparable operating income jumped 12%. Comparable earnings per share advanced 17%, to $3.57. Shares yield ~1.6% at the time of this writing. Constellation’s Beer Business experienced an 8% increase in net sales thanks to a 7.6% advance in shipment volumes. Strength was prevalent across its Modelo Especial, Pacifico, and Modelo Chelada brands. Constellation’s Beer Business continues to gain share, with its “dollar sales and volume growth outpace(ing) the total
