Dividend Growth Gem P&G Increases Dividend for 56th Consecutive Year; Ups Payout 7%
April 14, 2012
P&G’s dividend increase of 7% was roughly in line with our expectations of high-single-digit growth. — Business Wire (Friday, April 13) “The Procter & Gamble Company (NYSE: PG – News) announced that its Board of Directors declared an increase in the quarterly dividend from $0.525 to $0.562 per share on its Common Stock and on the Series A and Series B ESOP Convertible Class A Preferred Stock of the Company, payable on or after May 15, 2012 to Common Stock shareholders of record at the close of business on April 27, 2012 and to Series A and Series B Preferred Stock shareholders of record at the start of business on April 27, 2012. This represents a 7% increase compared to the
A Stock Split Steals the Headlines from Google’s Quarterly Results
April 13, 2012
Google (GOOG) posted another solid first quarter after the close Thursday, with revenues growing 24% from the same period a year ago and adjusted earnings per share coming in at $10.08 — ahead of consensus estimates. Our thesis on Google (click here) remains unchanged, and we think shares continue to be fairly valued at current levels. We’d grow more interested in adding Google to our Best Ideas portfolio if it registered a higher score on our Valuentum Buying Index. At this time, we’re also quite comfortable with our current technology exposure in the portfolio: Apple (AAPL), Intel (INTC), and eBay (EBAY). Aggregate paid-clicks were up a whopping 39% compared to the first quarter of 2011 (and up 7% sequentially), suggesting Google
JP Morgan’s First-Quarter Results Support Our Small Financials Exposure; Credit Quality Continues to Improve
April 13, 2012
JP Morgan (JPM) reported strong first-quarter results Friday that revealed a strengthening balance sheet and positive credit trends in its consumer real estate and credit card portfolios. The firm’s net income fell $172 million (3%) from the same period a year ago, though earnings per share advanced modestly, to $1.31 (consensus expectations were at $1.18 per share). Though we expect the earnings environment to continue to be challenging for banks, we do expect the group as a whole to fetch better valuations in the years ahead as the outsize risk premium associated with ongoing concerns about the domestic housing market and European sovereign debt ease. We continue to hold small, diversified financial positions in the portfolio of our Best Ideas Newsletter,
Coinstar Pre-announces a Huge Earnings Beat; Chanos Blushes
April 13, 2012
Coinstar (CSTR) pre-announced solid first-quarter results after the close Thursday. The owner of Redbox self-service movie rental kiosks said that it now expects consolidated revenue for its first quarter to come in over $569 million at the high end and core diluted earnings per share to come in the range of $1.36 to $1.40 per share for the period (consensus was at only $0.89 per diluted share). Coinstar noted strong consumer demand at Redbox in the quarter, particularly during February and March. The firm also witnessed strength in turns of the following titles: Moneyball, Puss and Boots, 50/50, In Time, Abduction, and Mr. Popper’s Penguins. Specifically, Coinstar cited lower than expected card processing fees and direct operating costs at Redbox as the main reasons for the
Travelzoo Shares Advancing Significantly This Morning
April 11, 2012
<< Travelzoo shares soar on sale report, Reuters
Stay the Course: Alcoa’s 1Q Results Support the Overweight Aerospace Position in Our Best Ideas Portfolio
April 11, 2012
Alcoa kicked off first-quarter earnings season with a solid report. Despite views that first-quarter earnings growth will be meager and almost negligible absent Apple (AAPL), we strongly disagree. We expect continued strong performance out of the cyclical aerospace sector coupled with improving earnings from the energy firms levered to oil. Alcoa, for example, posted $0.09 in earnings per share during the period versus consensus expectations of a $0.04 per share loss. But we had been expecting the earnings beat from the aluminum giant, and our fair value estimate for Alcoa remains unchanged following the report. We view Alcoa’s report more important for interpreting how certain end markets are performing than anything else. With that said, Alcoa reported year-over-year revenue growth
Apple and eBay Bucking Market Trend Today
April 9, 2012
Apple (AAPL) << Our 16-page Equity Research Report on Apple (AAPL) eBay (EBAY) << Our 16-page Equity Research Report on eBay (EBAY)
March Retail Sales Speak to Strength in the US Economy
April 6, 2012
Retail sales numbers issued Thursday by the International Council of Shopping Centers (ICSC), which tracks 22 retailers, reinforced what we’ve been saying for some time: the US economy continues to grow and the pace of expansion may even be accelerating, even in the face of domestic political uncertainty, concerns about a slowdown in Chinese growth, and a recession in the Eurozone. According to ICSC data, retail sales rose 4.1% for March, with strong growth across all segments. We think the strong March retail sales performance and improving employment trends bode well for the US economy as we head into the second quarter. Though we liked the underlying March performance, we’re not making any changes to our fair value estimates for
Strong March Auto Sales Support Our Bullish Take on Ford
April 4, 2012
Preliminary monthly data showed that March auto sales in the US increased 12.7% and that Ford’s (F) performance was its best showing for the month in five years. The industry-wide seasonally-adjusted rate came in at a whopping 14.4 million vehicles. Although Ford’s growth rate trailed other car manufacturers, many peers were lapping easy comparisons due to last year’s production setbacks, and we’re not reading too much into it. We continue to believe Ford is a core position in the portfolio of our Best Ideas Newsletter. Though the increase in Ford’s sales was lower than peers’ during the month, we can’t find too much fault in the company’s monthly performance and are excited about what the numbers may mean with respect to profitability. As
SanDisk Cuts First-Quarter Outlook; We Continue to Steer Clear of the Shares
April 3, 2012
Flash-memory maker SanDisk (SNDK) issued a weak business update after the close Tuesday. The firm blamed weaker-than-expected pricing and demand, as it now forecasts total revenue to be approximately $1.2 billion in the first quarter, down from its previously expected $1.35 billion at the high end of the range and well below consensus expectations of $1.34 billion. SanDisk also said that its gross margin would be less than the 39% to 42% range it had previously expected in the period. We’ll be expecting more information from the chip maker when it reports quarterly results April 19. At this time, however, we’re sticking with our fair value estimate for SanDisk and continue to steer clear of the firm’s shares.
