Brian Nelson

Clorox Misses Consensus Estimates in Its Fiscal Third Quarter

by

Image: Clorox’s shares have been under pressure more recently. By Brian Nelson, CFA Clorox (CLX) recently reported disappointing third quarter fiscal 2025 results, with both revenue and non-GAAP earnings per share missing the consensus forecast. Net sales declined 8% primarily due to the divestitures of the VMS and Argentina businesses. Organic sales fell 2% due primarily to unfavorable price mix. Organic volume was flat driven by a consumption slowdown across most of its businesses. Gross margin increased 240 basis points, while adjusted earnings per share declined 15% to $1.45 from $1.71 in the year-ago period. Management had the following to say about the results: In the third quarter, heightened macroeconomic uncertainties drove changes in shopping behaviors, resulting in temporary category … Read more

Dividend Increases/Decreases for the Week of June 27

by

Below we provide a list of firms that raised their dividends during the week ending June 27. 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                          AZZ (AZZ): now $0.20 per share quarterly dividend, was $0.17. Bank of South Carolina (BKSC): now $0.21 per share quarterly dividend, was $0.19. Cadiz Inc. 8.875% DEP PFD A (CDZIP): now $0.56 per share quarterly dividend, was $0.55. Chorus Aviation (CHR:CA): now CAD 0.08 per share quarterly dividend, was CAD 0.07. Euroholdings Ltd. (EHLD): now $0.14 per share quarterly dividend. First Bancorp (FNLC): now … Read more

Disney Expects Strong Earnings Growth in Fiscal 2025

by

Image Source: Valuentum By Brian Nelson, CFA Disney (DIS) recently reported better than expected second quarter fiscal 2025 results, with both revenue and non-GAAP earnings per share beating the consensus forecast. Revenue increased 7% to $23.6 billion, while income before income taxes increased $2.4 billion, to $3.1 billion. Total segment operating income increased 15%, to $4.4 billion in the quarter. Adjusted earnings per share increased 20%, to $1.45 from $1.21 in the second quarter of fiscal 2024. Management had the following to say about the results: Our outstanding performance this quarter—with adjusted EPS up 20% from the prior year driven by our Entertainment and Experiences businesses—underscores our continued success building for growth and executing across our strategic priorities. Following an … Read more

Exxon Mobil’s Shares Have Been Choppy of Late

by

Image: Exxon Mobil’s shares have been choppy of late. By Brian Nelson, CFA Exxon Mobil (XOM) recently reported mixed first quarter results with revenue coming in a bit light, but non-GAAP earnings beating the consensus forecast. Revenue edged up modestly to $83.13 billion from $83.08 billion in the quarter, while first quarter earnings came in at $7.7 billion, or $1.76 per share, beating consensus by $0.03. Earnings, however, declined from $8.22 billion in the year-ago period. Management had the following to say about the results: In this uncertain market, our shareholders can be confident in knowing that we’re built for this. The work we’ve done to transform our company over the past eight years positions us to excel in any … Read more

J.M. Smucker Sets Fiscal 2026 Earnings Outlook Below Consensus

by

Image: J.M. Smucker’s shares have been under pressure of late. By Brian Nelson, CFA J.M. Smucker (SJM) recently reported fourth quarter fiscal 2025 results with revenue missing the mark, while non-GAAP earnings per share beat expectations. In the quarter, net sales for the quarter excluding divestitures and foreign currency exchange fell 1%, while adjusted earnings per share came in at $2.31, better than $2.25 consensus but representing a decline of 13% versus the same period a year ago. Cash provided by operations for the quarter was $393.9 million compared to $428.1 million in the prior-year period. Free cash flow was $298.9 million for the quarter. Management had the following to say about the results: Our fourth quarter and full-year results … Read more

Realty Income’s Monthly Dividend Is Durable

by

Image Source: Realty Income By Brian Nelson, CFA Realty Income (O) recently reported mixed first quarter results that showed revenue beating the consensus estimate but funds from operations coming up a bit short relative to forecasts. Adjusted funds from operations increased 2.9%, to $1.06 per share, in the quarter, up from $1.03 per share in last year’s period, while the company invested $1.4 billion at an initial weighted average cash yield of 7.5% in the first quarter. Net debt to annualized proforma adjusted EBITDAre was 5.4x at the end of the quarter. Management had the following to say about the results: Realty Income’s ability to deliver reliable and stable performance through varying market conditions continues to be a hallmark of … Read more

Johnson & Johnson Remains an Innovation Powerhouse

by

Image Source: Johnson & Johnson By Brian Nelson, CFA Johnson & Johnson (JNJ) recently reported first quarter results that showed revenue and non-GAAP earnings per share exceeding the consensus forecast. First quarter reported sales growth was 2.4%, with operational growth of 4.2% and adjusted operational growth of 3.3%. First quarter earnings per share increased to $4.54, while adjusted earnings per share advanced 2.2%, to $2.77. Management had the following to say about the results: The power of Johnson & Johnson’s uniquely diversified portfolio was on full display this quarter, with strong operational sales growth reinforcing our confidence in 2025 guidance. During the quarter, we fortified our position as an innovation powerhouse with major advancements across our pipeline, including TREMFYA in … Read more

Dividend Increases/Decreases for the Week of June 20

by

Below we provide a list of firms that raised their dividends during the week ending June 20. 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                          Acme United (ACU): now $0.16 per share quarterly dividend, was $0.15. AG Mortgage Investment Trust (MITT): now $0.21 per share quarterly dividend, was $0.20. Artis Real Estate Investment Trust PFD SER E (AX.PR.E:CA): now CAD 0.4498 per share quarterly dividend, was CAD 0.0450. ATN International (ATNI): now $0.275 per share quarterly dividend, was $0.240. Canlan Ice Sports (ICE:CA): now $0.50 per share special dividend, … Read more

Lennar Sees Softness in Housing Market

by

Image Source: TradingView By Brian Nelson, CFA On June 16, Lennar Corp. (LEN) reported mixed fiscal second quarter results with revenue beating the consensus forecast but non-GAAP earnings per share missing the consensus mark. Total revenues fell to $8.4 billion in the quarter from $8.8 billion in the year-ago period, while second quarter net earnings, excluding mark-to-market losses on technology investments were $499 million, or $1.90 per share, compared to $3.38 per share in the same period a year ago. Management had the following to say about the results: While we continue to see softness in the housing market due to affordability challenges and a decline in consumer confidence, we adhered to our strategy of driving starts, sales, and closings … Read more

Adobe Raises Guidance Due to AI Strength

by

Image: Adobe’s stock has been choppy the past few years. By Brian Nelson, CFA Adobe Inc. (ADBE) recently reported strong second quarter fiscal 2025 results. The company posted record revenue of $5.87 billion in the fiscal second quarter, representing 11% year-over-year growth in reported and in constant currency and better than the consensus forecast of $5.8 billion. Non-GAAP operating income was $2.67 billion, up from $2.44 billion in last year’s quarter, while non-GAAP net income was $2.17 billion, up from $2.02 billion in the same period a year ago. On a non-GAAP basis, diluted earnings per share was $5.06 versus $4.48 per share in last year’s period and better than the consensus forecast of $4.97 per share. Management had the … Read more