Brian Nelson

Constellation Brands Maintains Comparable Earnings Per Share Outlook

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Image Source: Constellation Brands By Brian Nelson, CFA On July 1, beer, wine and spirits producer Constellation Brands (STZ) reported disappointing first quarter fiscal 2026 results with revenue and non-GAAP earnings per share missing the consensus forecast. Comparable net sales dropped 6%, while comparable organic net sales fell 4%. Comparable operating income tumbled 11%, while comparable net income attributable to the company fell 12%. Comparable adjusted earnings before interest and taxes fell 13%, while comparable diluted net income per share dropped 10%, to $3.22. Management had the following to say about the results: While we continued to face softer consumer demand largely driven by what we believe to be non-structural socioeconomic factors, our teams remain focused on executing the key … Read more

Dividend Increases/Decreases for the Week of July 4

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Below we provide a list of firms that raised their dividends during the week ending July 4. 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                          CF Bankshares (CFBK): now $0.08 per share quarterly dividend, was $0.07. Diversified Royalty (DIV:CA): now CAD 0.0229 per share monthly dividend, was CAD 0.0208. Itau Unibanco (ITUB): now $0.0029 per share monthly dividend, was $0.0020. Trican Well Service Ltd. (TCW:CA): now $0.055 per share quarterly dividend, was $0.050. PNC Financial (PNC): now $1.70 per share quarterly dividend, was $1.60. Firms Lowering Their Dividends This … Read more

General Mills’ Top Priority Is to Restore Volume-Driven Organic Sales Growth

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Image: General Mills’ shares have been under pressure as of late. By Brian Nelson, CFA On June 25, General Mills (GIS) reported mixed fiscal fourth quarter results with revenue coming up short of forecasts, but non-GAAP earnings per share exceeding the consensus estimate. In the fourth quarter, net sales dropped 3% driven by lower pound volume and unfavorable net price realization and mix, while organic sales were also down 3%, in line with expectations. Adjusted gross margin was down 220 basis points. Adjusted operating profit of $622 million was down 22% in constant currency, while its adjusted operating profit margin fell 330 basis points year-over-year. Adjusted diluted earnings per share came in at $0.74, which was down 27% in constant … Read more

Nike’s Fiscal Fourth Quarter Better Than Feared

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Image: Nike’s shares have been pummeled of late. By Brian Nelson, CFA On June 26, Nike (NKE) reported better than expected fourth quarter fiscal 2025 results with revenue and GAAP earnings per share exceeding the consensus forecasts. Fiscal fourth quarter revenues were $11.1 billion, down 12% on a reported basis and 11% on a currency-neutral basis. Nike Direct revenues were down 14% on a reported and currency-neutral basis in the quarter, while wholesale revenues fell 9% on a reported and currency-neutral basis in the period. Quarterly revenues for Converse fell 26%. Gross margin declined 440 basis points in the fiscal fourth quarter, to 40.3%, while diluted earnings per share fell 86% in the quarter, to $0.14. Management had the following … Read more

Clorox Misses Consensus Estimates in Its Fiscal Third Quarter

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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

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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

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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

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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

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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

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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