Brian Nelson

Netflix’s Operating Margin Continues to Delight

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Image: Netflix has a long runway of growth given market share opportunities. By Brian Nelson, CFA On April 17, Netflix (NFLX) reported strong first quarter results with revenue and GAAP earnings coming in ahead of the consensus estimates. Revenue and operating income advanced 12.5% (16% on a foreign exchange neutral basis) and 27.1% on a year-over-year basis, respectively. Netflix’s operating margin increased to 31.7% from 28.1% in the year-ago period, while net income leapt to $2.89 billion from $2.33 billion in last year’s quarter. Diluted earnings per share increased 25.2% to $6.61 from $5.28 in the same period last year. Netflix’s performance was in part propelled by membership growth and higher pricing. Management continues to execute on its 2025 priorities: … Read more

Dividend Increases/Decreases for the Week of April 18

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Below we provide a list of firms that raised their dividends during the week ending April 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                          ASML (ASML): now $1.92 per share quarterly dividend, was $1.57. Bar Harbor Bankshares (BHB): now $0.32 per share quarterly dividend, was $0.30. Choice Properties Real Estate Investment Trust (CHP.UN:CA): now CAD 0.0642 per share monthly dividend, was CAD 0.0641. Coca-Cola FEMSA (KOF): now $0.8830 per share quarterly dividend, was $0.7811. Companhia Paranaense de Energia – COPEL (ELPC): now $0.1172 per share quarterly dividend, was … Read more

Key Comments from the Banks This Earnings Season

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Image: The big banks have done well recently. By Valuentum Analysts JP Morgan’s (JPM) CEO Jamie Dimon: “The Firm reported strong underlying business and financial results in the first quarter, producing net income of $14.6 billion.” “In the CIB, Investment Banking fees rose 12% in the first quarter, although clients have become more cautious amid an increase in market volatility driven by geopolitical and trade-related tensions. Meanwhile, we saw increased activity in the Markets business. Markets revenue rose to $9.7 billion, an exceptionally strong quarter with record revenue in Equities. In CCB, the franchise continued to acquire new customers at a robust pace, opening 500,000 net new checking accounts and adding record first-time investors in wealth management. Finally, AWM had … Read more

UnitedHealth Group Lowers 2025 Outlook

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Image: UnitedHealth’s shares were pummeled after it lowered its 2025 earnings outlook. By Brian Nelson, CFA UnitedHealth Group (UNH) reported dismal first-quarter 2025 results that came in lower than expected on both the top and bottom lines. Revenues of $109.6 billion grew $9.1 billion year-over-year, while first quarter earnings were $6.95 per share, with adjusted earnings coming in at $7.20 per share. Management shared its disappointment in the commentary in the press release: UnitedHealth Group grew to serve more people more comprehensively but did not perform up to our expectations, and we are aggressively addressing those challenges to position us well for the years ahead, and return to our long-term earnings growth rate target of 13 to 16%. UnitedHealth Group … Read more

Dividend Increases/Decreases for the Week of April 11

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Below we provide a list of firms that raised their dividends during the week ending April 11. 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                          ADF Group (DRX:CA): now CAD 0.02 per share semi-annual dividend, was CAD 0.01. Aerovate Therapeutics (AVTE): now $2.40 per share special dividend. Agree Realty (ADC): now $0.256 per share monthly dividend, was $0.253. Alcon (ALC): now CHF 0.28 per share dividend. Aon (AON): now $0.745 per share quarterly dividend, was $0.675. Bank of America Corporation 4.750% DP PFD SS (BAC.PR.S): now $0.2970 per share … Read more

Trump Tariffs Higher than Expected; What We’re Doing

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By Brian Nelson, CFA The Trump tariff increases came in larger than what we were expecting, and it remains to be seen how they will flow through the global economy, as we monitor potential retaliatory tariffs from other countries. As it relates to the equity markets, we’re taking a wait and see approach at the moment as we monitor new policy changes related to trade, immigration, fiscal (tax), and regulations. In short, we’re not overreacting to the sell off as we won’t have a great handle on the tariff impact to companies for a few quarters when they report results post-tariff increases. That said, we’re expecting continued market volatility, with meaningful risk to the downside, before trade uncertainty alleviates in … Read more

Dividend Increases/Decreases for the Week of April 4

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Below we provide a list of firms that raised their dividends during the week ending April 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                          Adecoagro (AGRO): now $0.175 per share semi-annual dividend, was $0.174. Banco Santander (SAN): now EUR 0.1100 per share final dividend, was $0.1152. Bank OZK (OZK): now $0.43 per share quarterly dividend, was $0.42. Brookfield Renewable Power Preferred Equity Inc. PREF SHS CL A 2 (BRF.PR.B:CA): now CAD 0.3318 per share quarterly dividend. Compass Diversified Holdings Non-Cum Red Pfd Registered Series A (CODI.PR.A): now $0.4532 … Read more

Lululemon Continues to Execute on Its Growth Strategy

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Image Source: TradingView By Brian Nelson, CFA On March 27, Lululemon (LULU) reported better than expected fourth quarter results with revenue and GAAP earnings per share coming in ahead of what the Street was looking for. Net revenue advanced 13% (14% on a constant dollar basis), with Americas net revenue up 7% (8% on a constant dollar basis) and international net revenue advancing 38% (40% on a constant dollar basis). Comparable sales, which excludes net revenue from the 53rd week of 2024, increased 3%, or 4% on a constant dollar basis. Management had the following to say about the quarter: Our fourth quarter results exceeded our expectations as we continued to introduce more newness and innovation into our product assortment. … Read more

Adobe’s Outlook Falls Short of Expectations

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Image Source: TradingView By Brian Nelson, CFA On March 12, Adobe (ADBE) reported better than expected first quarter fiscal 2025 results with both revenue and non-GAAP earnings per share coming in ahead of expectations. The company achieved record revenue in the fiscal first quarter, showcasing 10% year-over-year growth (11% in constant currency). Non-GAAP operating income and non-GAAP net income came in at $2.72 billion and $2.22 billion, respectively. In the quarter, the company reported record operating cash flows of $2.48 billion. Adobe repurchased approximately 7.0 million shares in the quarter. Management had the following to say about the quarter: Adobe’s success over the next decade will be driven by customer-focused innovation and new offerings for creators, marketing professionals, business professionals … Read more

FedEx Lowers Outlook Again

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Image Source: TradingView By Brian Nelson, CFA On March 20, FedEx (FDX) reported mixed third quarter results for fiscal 2025, with revenue edging out the consensus forecast and non-GAAP earnings per share missing the mark. Revenue increased 2.3%, while operating income expanded to $1.29 billion from $1.24 billion in last year’s quarter. FedEx’s operating margin edged up to 5.8% from 5.7% in the year-ago quarter. Net income increased to $0.91 billion from $0.88 billion, while diluted earnings per share came in at $3.76 from $3.51 in last year’s quarter. Management had the following to say about the quarter: The FedEx team delivered improved profitability, while navigating a very challenging operating environment, including a compressed Peak season and severe weather events. … Read more