Brian Nelson

Vertex Reports Strong Q2, Trial Setback Punishes Shares

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Image Source: TradingView By Brian Nelson, CFA On August 4, Vertex Pharma (VRTX) reported strong second quarter results with both revenue and non-GAAP earnings per share coming in better than expected. The solid performance, however, was overshadowed by a disappointment in its pipeline for pain management: Vertex announced results from its Phase 2 placebo-controlled dose-ranging study evaluating the safety and efficacy of VX-993, an investigational selective NaV1.8 pain signal inhibitor, in treating acute pain after bunionectomy surgery. Treatment with VX-993 did not result in a statistically significant improvement on the primary endpoint of the time-weighted sum of the pain intensity difference from 0 to 48 hours (SPID48) compared to placebo. VX-993 was generally safe and well-tolerated. Based on these results, … Read more

Amazon’s Third Quarter Operating Income Guidance Conservative

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Image Source: TradingView By Brian Nelson, CFA Amazon (AMZN) reported better than expected second quarter results on July 31 that came in ahead of the consensus forecasts on both the top and bottom lines. Net sales increased 12%, excluding foreign exchange impacts, as North America segment sales increased 11%, international segment sales increased 11% (excluding foreign exchange), while AWS segment sales increased 17.5%, to $30.9 billion, the latter modestly better than expected. On a reported basis, net sales totaled $167.7 billion, beating the consensus forecast by nearly $5.6 billion. Operating income increased to $19.2 billion in the second quarter compared to $14.7 billion in the second quarter of 2024, better than the company’s guidance range of $13-$17.5 billion and consensus … Read more

The Risks to Apple Are Increasing

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Image Source: TradingView By Brian Nelson, CFA On July 31, Apple (AAPL) reported better than expected fiscal third quarter results with revenue and GAAP earnings per share coming in ahead of the consensus forecast. The iPhone maker reported quarterly revenue of $94 billion, up 10% year-over-year and better than the Street’s forecast of $89.16 billion, while operating income jumped to $28.2 billion from $25.4 billion in last year’s quarter. Quarterly diluted earnings per share came in at $1.57, up 12% year-over-year and better than consensus of $1.43. Management was upbeat in the press release: Today Apple is proud to report a June quarter revenue record with double-digit growth in iPhone, Mac and Services and growth around the world, in every … Read more

Meta Platforms Issues Third Quarter Revenue Guidance Well Above Consensus

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Image: Meta’s free cash flow remains robust despite higher capital spending. By Brian Nelson, CFA On July 30, Meta Platforms (META) reported blockbuster second quarter results with revenue and GAAP earnings per share exceeding the consensus forecast. Revenue grew 22% on a year-over-year basis, to $47.5 billion (consensus was $44.8 billion) while costs and expenses rose at a more modest 12% rate in the quarter, driving a 38% increase in income from operations. Meta’s operating margin rose roughly 5 percentage points, to 43%. Net income increased 36% in the quarter, while diluted earnings per share rose 38%, to $7.14 (consensus was $5.90). Meta’s family daily active people (DAP) on average for June 2025 increased 6%. Ad impressions delivered across its … Read more

Microsoft Puts Up Awesome Fiscal Fourth Quarter Results

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Image Source: TradingView By Brian Nelson, CFA On July 30, Microsoft (MSFT) reported awesome fiscal fourth quarter results with both revenue and GAAP earnings per share exceeding the consensus forecast. Revenue of $76.4 billion increased 18% (up 17% in constant currency), better than consensus of $73.8 billion, while operating income increased 23% (up 22% in constant currency). Net income increased 24% (up 22% in constant currency), while diluted earnings per share was $3.65, up 24% and 22% in constant currency, and better than consensus of $3.38 per share. Management had the following to say about the quarter: Cloud and AI is the driving force of business transformation across every industry and sector. We’re innovating across the tech stack to help … Read more

Visa’s Fiscal Third Quarter Results Reveal Consumer Remains Resilient

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Image: Visa’s free cash flow generation remains phenomenal. By Brian Nelson, CFA On July 29, Visa (V) reported better than expected fiscal third quarter results with both revenue and GAAP earnings per share exceeding the consensus forecast. Net revenue increased 14%, while GAAP net income advanced 8% and GAAP earnings per share jumped 12%. Non-GAAP net income increased 19%, to $5.8 billion, while non-GAAP earnings per share increased 23%, to $2.98. Management had the following to say about the results: Visa delivered another strong quarter, with 14% net revenue growth, 12% GAAP EPS growth and 23% non-GAAP EPS growth. Healthy business driver trends continued through the quarter and into the first few weeks of July. Consumer spending remains resilient, with … Read more

Enterprise Products Partners’ DCF Coverage of Its Distribution Is Healthy

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Image Source: TradingView By Brian Nelson, CFA On July 28, Enterprise Products Partners (EPD) reported mixed second quarter results with revenue missing the consensus forecast, but GAAP earnings per share edging out what the Street was looking for. Enterprise reported net income of $1.4 billion and $0.66 per common unit, an increase of 3% compared to $0.64 per common unit in the second quarter of 2024. Distributable cash flow (DCF) was $1.9 billion in the second quarter, up 7% from the same period a year ago, and provided 1.6x coverage of the distribution declared for the second quarter of this year. Management had a lot to say about the results: In a seasonally weaker quarter challenged with macroeconomic, geopolitical, and … Read more

Altria Narrows 2025 Full-Year Adjusted Diluted EPS Guidance

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Image Source: TradingView By Brian Nelson, CFA On July 30, Altria (MO) posted better than expected second quarter results that beat the consensus forecast on both the top and bottom lines. Net revenues dropped 1.7% on a year-over-year basis due to lower net revenues in its smokeable products segment, but the company’s adjusted diluted earnings per share advanced 8.3% year-over-year, to $1.44, primarily driven by higher operating income and fewer shares outstanding. Altria repurchased 4.7 million shares in the quarter, and as of June 30, had $400 million remaining under its current share repurchase program. The company paid dividends of $1.7 billion in the second quarter. Management had the following to say about the results: In the second quarter, we … Read more

UnitedHealth Group’s Restored 2025 Outlook Falls Below Consensus Estimates

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Image Source: TradingView By Brian Nelson, CFA UnitedHealth Group (UNH) reported disappointing second quarter results and issued an outlook for 2025 that came in below expectations. The firm’s second-quarter 2025 revenue grew $12.8 billion year-over-year to $111.6 billion thanks to growth at both UnitedHealthcare and Optum. Second-quarter earnings from operations, however, came in at $5.2 billion, down from $7.9 billion in the same period a year ago. Net earnings were $4.08 per share, below the consensus estimate of $4.45 per share. UnitedHealth Group’s second quarter consolidated medical care ratio of 89.4% was up 430 basis points year-over-year. Management had the following to say about the results: UnitedHealth Group has embarked on a rigorous path back to being a high-performing company … Read more

Waste Management Grows Adjusted Operating EBITDA Double Digits in Second Quarter

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Image Source: TradingView By Brian Nelson, CFA On July 28, Waste Management (WM) reported second quarter results that came in better than expected on both the top and bottom lines. Adjusted revenue increased 19% year-over-year, to $6.43 billion, while adjusted income from operations came in at $1.215 billion, up from $1.075 billion in the same quarter a year ago. Adjusted operating EBITDA increased 18.9%, to $1.923 billion. Adjusted net income came in at $777 million, up from $732 million in the second quarter of 2024, while adjusted diluted earnings per share of $1.92 was 6% higher than the quarterly mark last year. Management had the following to say about the results: As we described at our recent Investor Day, WM … Read more