Brian Nelson

Vertex Raises Bottom End of 2025 Revenue Guidance Range

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Image Source: Vertex Pharma By Brian Nelson, CFA Vertex Pharmaceuticals (VRTX) reported mixed first quarter results on May 5, with revenue and non-GAAP earnings per share coming in lower than forecast, but the company raised the low end of its revenue guidance range for 2025. Total revenue increased 3% compared to the first quarter of 2024 thanks to continued performance of TRIKAFTA/KAFTRIO and an early contribution from the U.S. launch of ALYFTREK. U.S. total revenue increased 9%, while non-U.S. revenue fell 5% due in part to a violation of its intellectual property rights in Russia, of which it notes to be a “limited and isolated matter.” Management had the following to say about the quarter: Vertex delivered a strong start … Read more

Booking Holdings’ Free Cash Remains Robust

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Image Source: Booking Holdings By Brian Nelson, CFA On April 29, Best Ideas Newsletter portfolio idea Booking Holdings (BKNG) reported better than expected first quarter results with both revenue and non-GAAP earnings per share coming in higher than expected. Room nights grew 7% year-over-year, while gross bookings advanced 10% on a constant currency basis. Revenue grew 8% compared to the first quarter of 2024 and was up 10% on a currency neutral basis. Adjusted earnings per share increased 22% in the quarter on a year-over-year basis, to $24.81. Management had the following to say about the quarter: I (CEO Glenn Fogel) am pleased to report a good start to 2025 where healthy growth of room nights and gross bookings in … Read more

Amazon Guides to Strong Second Quarter Revenue Growth

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Image: Amazon’s shares are trading near technical support levels. By Brian Nelson, CFA Amazon (AMZN) reported solid first quarter results May 1, with revenue and GAAP earnings per share coming in ahead of consensus expectations. Net sales jumped 9%, to $155.7 billion in the first quarter and advanced 10% after adjusting for currency movements. North America segment sales increased 8% year-over-year, International segment sales increased 5% (8% excluding currency movements), while AWS segment sales increased 17%, the latter a very healthy showing despite trailing the 33% growth rate that Microsoft (MSFT) put up in its quarter with respect to Azure. Amazon’s operating income increased 20.2%, to $18.4 billion in the first quarter, up from $15.3 billion in the same period … Read more

Apple’s Earnings Set March Quarter Record; Services Revenue Hits All-Time High

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Image: Apple’s shares remain resilient despite tariff pressures. By Brian Nelson, CFA On May 1, Apple (AAPL) reported better than expected second quarter results for fiscal 2025 with both revenue and GAAP earnings per share coming in ahead of the consensus forecasts. The iPhone giant reported quarterly revenue of $95.4 billion, up 5% year-over-year, while quarterly diluted earnings per share came in at $1.65, up 8% year-over-year. The board raised its dividend 4% and authorized an additional buyback program to the tune of $100 billion. Management had the following to say about its fiscal second quarter showing: Today Apple is reporting strong quarterly results, including double-digit growth in Services. We were happy to welcome iPhone 16e to our lineup, and … Read more

Microsoft’s Cloud Business Performing Better Than Expected

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Image: Microsoft’s shares have held up well in this volatile market environment. By Brian Nelson, CFA On April 30, Microsoft (MSFT) reported solid third quarter fiscal 2025 results with revenue and GAAP earnings per share coming in higher than what the Street was looking for. Revenue increased 13% (15% in constant currency), and the cloud computing giant leveraged that increase in the top line to a 16% increase in operating income (19% in constant currency). In the quarter, net income increased 18% (19% in constant currency), while diluted earnings per share also increased 18% (19% in constant currency). Management had the following to say about the results: Cloud and AI are the essential inputs for every business to expand output, … Read more

Meta Platforms Posts Excellent First Quarter Results

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Image: Meta’s free cash flow remains robust. By Brian Nelson, CFA On April 30, Meta Platforms (META) reported excellent first quarter results with revenue and GAAP earnings per share coming in ahead of consensus estimates. Revenue increased 16% in the quarter, while income from operations advanced 27%. Meta’s operating margin expanded 3 percentage points in the quarter, to 41%, beating estimates. Net income leapt 35%, while diluted earnings per share increased 37% from last year’s quarter. CEO Mark Zuckerberg had the following to say about the quarter: We’ve had a strong start to an important year, our community continues to grow and our business is performing very well. We’re making good progress on AI glasses and Meta AI, which now … Read more

Enterprise Products Partners DCF Coverage of Its Distribution Remains Solid

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Image: Enterprise Products Partners’ units have done well of late. By Brian Nelson, CFA On April 29, Enterprise Products Partners (EPD) reported financial results for the three months ended March 31, 2025. The pipeline giant reported net income of $1.4 billion, or $0.64 per common unit on a diluted basis. Distributable cash flow (DCF) was $2 billion for the first quarter of 2025, a 5% increase compared to $1.9 billion in the first quarter of last year. DCF covered distributions declared for the first quarter by 1.7 times, with Enterprise retaining $842 million of DCF. Management had the following to say in the press release: During the first quarter of 2025, Enterprise continued to benefit from Permian driven volume growth … Read more

Altria Continues to Expect Adjusted Earnings Per Share Expansion

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Image: Altria’s shares have recovered nicely since the beginning of 2024. By Brian Nelson, CFA On April 29, tobacco giant Altria (MO) reported mixed first quarter results with non-GAAP earnings per share exceeding the consensus forecast, but revenue coming in a bit light relative to the Street forecast. Net revenues fell 5.7% in the quarter due to weaker performance in its smokeable products segment. However, adjusted diluted earnings per share increased 6% from last year’s quarter, to $1.23. The bottom line was bolstered by fewer shares outstanding, higher adjusted operating companies income (OCI), and a lower adjusted tax rate. Management had the following to say about the quarter: Our highly profitable traditional tobacco businesses performed well in a challenging environment … Read more

Visa’s Free Cash Flow Generation Remains Phenomenal

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Image: Visa continues to translate a high percentage of revenue into free cash flow generation. By Brian Nelson, CFA On April 29, Visa (V) reported better than expected second quarter fiscal 2025 results with non-GAAP earnings per share and revenue coming in higher than expected. Net revenue increased 9% in the quarter, or 11% on a constant dollar basis, while non-GAAP net income came in at $5.4 billion or $2.76 per share, the latter up 10% from the same quarter a year ago. The board of directors authorized a new $30 billion multi-year share repurchase program. Management had the following to say about the quarter: Visa’s strong 9% fiscal second quarter net revenue growth was driven by healthy trends in … Read more

Republic Services Continues to Price Ahead of Inflation

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Image: Republic Services’ shares have done quite well the past few years. By Brian Nelson, CFA On April 24, trash taker Republic Services (RSG) reported mixed first quarter results with non-GAAP earnings per share outpacing the consensus forecast, but revenue coming in a bit light compared to what the Street was looking for. Total revenue growth was 3.8%, including 2.9 percentage points of organic growth and the balance coming from acquisitions. Revenue growth from average yield increased 4.5%, above the rate of cost inflation, while volume decreased revenue by 1.2%. Management had the following to say about the quarter: We are off to a solid start to the year, and our business continues to perform well even with increased volatility … Read more