Brian Nelson

Philip Morris’ Smoke-Free Portfolio Continues to Gain Traction

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Image Source: TradingView By Brian Nelson, CFA Philip Morris (PM) reported mixed second quarter results July 22, with revenue coming in slightly below expectations, but non-GAAP earnings per share exceeding the consensus forecast. Net revenues increased 7.1% on a reported basis and 6.8% on an organic basis. Its smoke-free business experienced a 15.2% increase in revenue, with 14.5% of that organic. Its combustible portfolio showed a 2.1% increase in revenue, with 2% of that organic. Operating income increased 7.8% on a reported basis in the quarter, while it expanded 14.9% on an organic basis versus the second quarter of 2024. Adjusted diluted earnings per share, excluding currency, increased 18.9% in the quarter. Management had the following to say about the … Read more

Lockheed Martin Announces Program Losses

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Image Source: TradingView By Brian Nelson, CFA Lockheed Martin (LMT) recently reported disappointing second quarter results that showed a miss on the top line versus consensus and pre-tax losses on programs of $1.6 billion and other charges of $169 million, combining to impact earnings per share by $5.83. Second quarter sales came in at $18.2 billion, up from $18.1 billion in the second quarter of 2024. Net earnings of $1.46 per share compared to $6.85 per share in last year’s quarter. Cash from operations was $201 million compared to $1.9 billion in last year’s quarter, while free cash flow dipped into negative territory, compared to $1.5 billion in the second quarter of 2024. Management had the following to say about … Read more

Domino’s Same Store Sales Growth Beats Expectations

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Image Source: Domino’s By Brian Nelson, CFA On July 21, Domino’s (DPZ) reported mixed second quarter results with revenue beating the consensus forecast but GAAP earnings per share coming in lower than expectations. Revenue increased 4.3% in the quarter due to higher supply chain revenues, higher U.S. franchise royalties and fees and higher U.S. franchise advertising revenues. U.S. same store sales growth was 3.4% in the quarter, beating expectations calling for a 2.2% advance. International same store sales growth was 2.4%, beating expectations calling for a 1.6% increase. Adjusted income from operations increased 14.9% due to higher U.S. franchise royalties and fees, as well as gross margin dollar growth within supply chain. Management had the following to say about the … Read more

Kinder Morgan Expected to Capitalize on Natural Gas Demand

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Image Source: TradingView By Brian Nelson, CFA On July 16, Kinder Morgan (KMI) reported mixed second quarter results with revenue beating the consensus forecast, but non-GAAP earnings per share coming in line with expectations. Second quarter net income attributable to KMI was $715 million, up 24% from the same period a year ago. Adjusted EBITDA advanced 6%, to $1.97 billion from the same period last year. Management had a lot to say about the quarterly results and outlook: With historic growing natural gas demand forecasts, a positive federal regulatory environment, and highly supportive federal permitting agencies, the future for our company is very bright. We will continue to reap the benefit of a business model structured around long-term take-or-pay, fee-based … Read more

Johnson & Johnson Raises 2025 Guidance

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Image Source: J&J By Brian Nelson, CFA On July 16, Johnson & Johnson (JNJ) reported better than expected second quarter results with both revenue and non-GAAP earnings per share exceeding the consensus forecast. The healthcare giant reported adjusted operational sales growth of 3% in the quarter (2.4% growth in Innovative Medicine and 4.1% growth in MedTech) and adjusted earnings per share of $2.77, down modestly on a year-over-year basis. Free cash flow was ~$6.2 billion in the quarter, also down from $7.5 billion that it registered in the second quarter of last year. Management had the following to say about the results: Today’s strong results reflect the depth and strength of Johnson & Johnson’s uniquely diversified business operating across both … Read more

Netflix Raises 2025 Revenue and Margin Guidance

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Image Source: Netflix By Brian Nelson, CFA On July 17, Netflix (NFLX) reported better than expected second quarter results with revenue and GAAP earnings per share beating the consensus forecast. The company grew revenue 15.9% in the quarter on a year-over-year basis, and its operating margin was 34.1%, up roughly seven percentage points on a year-over-year basis. Both revenue and operating income came in above its guidance due to foreign exchange and the timing of certain expenses. Net income came in at $3.1 billion in the quarter, up from $2.1 billion in last year’s quarter, while diluted earnings per share came in at $7.19, up from $4.88 in the second quarter of 2024 (+47% year-over-year). Netflix’s top line continues to … Read more

Taiwan Semiconductor’s Revenue Performance Is Fantastic

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Image Source: Taiwan Semi By Brian Nelson, CFA On July 17, Taiwan Semiconductor Manufacturing (TSM) reported mixed second quarter results with earnings per ADR exceeding the consensus estimate, but revenue falling a bit short relative to the consensus forecast. In the quarter, consolidated revenue came in at NT$933.79 billion, net income was NT$398.27 billion, and diluted earnings per share was NT$15.36 (US$2.47 per ADR unit). On a year-over-year basis, second quarter revenue increased 38.6%, while net income and diluted earnings per share both increased 60.7%. On a sequential basis, second quarter results showcased a 11.3% increase in revenue and a 10.2% increase in net income. In US dollars, second quarter revenue was $30.07 billion, beating guidance of $28.4-$29.2 billion, and … Read more

Dividend Increases/Decreases for the Week of July 18

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Below we provide a list of firms that raised their dividends during the week ending July 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                          Banco Santander (Brasil) S.A. (BSBR): now $0.0655 per share quarterly dividend, was $0.0463. Bank of New York Mellon (BK): now $0.53 per share quarterly dividend, was $0.47. Citigroup (C): now $0.60 per share quarterly dividend, was $0.56. Community Financial System (CBU): now $0.47 per share quarterly dividend, was $0.46. Cummins (CMI): now $2.00 per share quarterly dividend, was $1.82. Duke Energy (DUK): now $1.065 … Read more

ASML Cannot Confirm Growth in 2026 at This Stage

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Image: ASML’s shares fell under pressure following uncertainty regarding expected 2026 performance. By Brian Nelson, CFA ASML Holding (ASML) reported solid second quarter results July 16 with revenue and earnings per share coming in ahead of the consensus forecast. Second quarter net sales were €7.7 billion on a gross margin of 53.7%. Net income was €2.3 billion. Quarterly net bookings in the second quarter were €5.5 billion, of which €2.3 billion was EUV. The company ended the quarter with €7.25 billion in cash and short-term investments. Here is what management had to say about the results: Our second-quarter total net sales came in at €7.7 billion, at the top end of our guidance. The gross margin was 53.7%, above guidance, … Read more

Fastenal’s Second Quarter Results a Positive Read Through for the Broader Economy

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Image Source: TradingView By Brian Nelson, CFA On July 14, Fastenal (FAST) reported better than expected second quarter results with revenue and GAAP earnings coming in ahead of the consensus forecasts. The wholesale distributor of industrial and construction supplies recorded net sales growth of 8.6% in the quarter, with gross profit expanding 9.2% and operating income jumping 12.7%. Income before income taxes advanced 13%, while net income and diluted net income per share increased 12.8% and 12.7%, respectively. The strength in sales in the quarter was “due to a growth in the number of customer sites spending $10k or more per month with Fastenal and, to a lesser degree, growth in average monthly sales per customer site across all customer … Read more