Brian Nelson

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

IBM Expects to Generate $13.5+ Billion in Free Cash Flow in 2025

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Image Source: TradingView By Brian Nelson, CFA IBM (IBM) recently reported second quarter results that came in better than expected on both the top and bottom lines. Revenue of $17 billion was up 8% and up 5% at constant currency. Software revenue advanced 10%, up 8% at constant currency, while consulting revenue was up 3%, flat at constant currency. Infrastructure revenue was up 14%, up 11% at constant currency. Non-GAAP gross margin was up 230 basis points, while non-GAAP pre-tax income margin jumped 110 basis points. Management had the following to say about the results: We once again exceeded expectations for revenue, profit and free cash flow in the quarter. IBM remains highly differentiated in the market because of our … Read more

Chipotle Now Expects Flat Comps for 2025

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Image Source: Valuentum By Brian Nelson, CFA On July 23, Chipotle (CMG) reported disappointing second quarter results with non-GAAP earnings per share coming in line with the consensus forecast, but revenue missing what the Street was looking for. Total revenue increased 3% in the quarter thanks to new restaurant openings, but comparable restaurant sales fell 4% due to lower transactions, and its operating margin dropped to 18.2%, down from 19.7% in the prior-year period. The Street had been looking for a 2.9% decline in comp sales in the quarter. Restaurant level operating margins fell to 27.4% from 28.9% in last year’s quarter. Adjusted diluted earnings per share was $0.33 in the quarter, down 2.9% from the second quarter of last … Read more

Alphabet Puts Up Excellent Second Quarter Results

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Image Source: TradingView By Brian Nelson, CFA On July 23, Alphabet (GOOG) (GOOGL) reported excellent second quarter results with revenue and GAAP earnings per share coming in better than the consensus forecast. Consolidated Alphabet revenue in the second quarter increased 14%, or 13% in constant currency on a year-over-year basis. The company noted “robust momentum across the business,” with “Google Search & other, YouTube ads, Google subscriptions, platforms, and devices, and Google Cloud each deliver(ing) double-digit growth in Q2.” Google Services revenue increased 12% in the quarter, while Google Cloud revenues increased 32% in the period. Management had the following to say about the results: We had a standout quarter, with robust growth across the company. We are leading at … Read more

NextEra Energy’s Outlook for the Next Few Years Looks Solid

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Image Source: NextEra Energy By Brian Nelson, CFA NextEra Energy (NEE) reported mixed second quarter results July 23 with revenue coming in slightly lower than forecast, but non-GAAP earnings per share exceeding the consensus forecast. On an adjusted basis, NextEra Energy’s earnings in the quarter were $2.164 billion, or $1.05 per share, compared to $1.968 billion, or $0.96 per share in the second quarter, of 2024. Management had the following to say about the results: NextEra Energy delivered strong second-quarter results with adjusted earnings per share increasing by 9.4% year-over-year. We believe the continued strong financial and operational performance at both FPL and NextEra Energy Resources positions us well to meet our overall objectives for the year. During the quarter, … Read more