Brian Nelson

Kinder Morgan Is Now Covering Cash Dividends Paid with Free Cash Flow

by

Image: Kinder Morgan’s shares have been on a tear after the midstream energy giant reports healthier free cash flow that covers cash dividends paid. By Brian Nelson, CFA On January 22, Kinder Morgan (KMI) reported fourth quarter results that missed the consensus forecast for both the top and bottom lines. Adjusted EBITDA in the quarter of $2.1 billion was 7% higher on a year-over-year basis, while net income attributable to Kinder Morgan came in at $667 million, up from $594 million in the year-ago period. Adjusted earnings per share was $0.32 in the quarter, up 14% compared to the fourth quarter of 2023. The company approved a cash dividend of $0.2875 per share for the fourth quarter, which is a … Read more

Netflix Records Biggest Quarter of Net Adds in Its History

by

Image Source: Netflix By Brian Nelson, CFA On January 21, Netflix (NFLX) reported better than expected fourth quarter results with revenue and GAAP earnings per share coming in ahead of the consensus forecasts. In the quarter, revenue advanced 16% on a year-over-year basis (19% on a foreign exchange neutral basis), while the firm leveraged that top-line growth into a 52% increase in operating income. Its operating margin expanded 5 percentage points to 22% in the quarter. Diluted earnings per share came in at $4.27 versus $2.11 in last year’s period. Netflix added 19 million global streaming paid memberships in the quarter, the biggest quarter of net adds in its history, and finished 2024 with 302 million memberships. Netflix continues to … Read more

UnitedHealth Group’s 2025 Outlook Remains Robust

by

Image: UnitedHealth Group’s shares have been choppy the past couple years. By Brian Nelson, CFA UnitedHealth Group (UNH) reported mixed fourth quarter results on January 16 with revenue coming in a bit light of consensus and non-GAAP earnings per share beating what the Street was looking for. UnitedHealth Group’s 2024 revenues grew 8% year-over-year to $400.3 billion, while full year 2024 earnings from operations came in at $32.3 billion. Adjusted earnings from operations of $34.4 billion exclude cyberattack direct response costs and South American impacts. The company’s full year medical care ratio was 85.5% compared to 83.2% in 2023. The higher medical care ratio was due to revenue effects of CMS’s Medicare funding restrictions, member mix, and the timing of … Read more

Dividend Increases/Decreases for the Week of January 17

by

Below we provide a list of firms that raised their dividends during the week ending January 17. 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                          Abbvie (ABBV): now $1.64 per share quarterly dividend, was $1.55. Algoma Central (ALC:CA): now CAD 0.20 per share quarterly dividend, was CAD 0.19. Alpine Banks of Colorado (ALPIB): now $0.21 per share quarterly dividend, was $0.20. Autoscope Technologies (AATC): now $1.05 per share special dividend, was $0.15. BSR Real Estate Investment Trust (HOM.U:CA): now CAD 0.0468 per share monthly dividend, was CAD 0.0467. CI … Read more

Taiwan Semiconductor’s Results Showcase Strong Growth

by

Image Source: TSM By Brian Nelson, CFA Taiwan Semiconductor (TSM) reported better than expected fourth quarter results January 16, with revenue and GAAP earnings per share coming in above the consensus forecast. The company reported consolidated revenue of NT$868.46 billion, net income of NT$374.68 billion, and diluted earnings per share of NT$14.45 (US$2.24 per ADR unit) in the fourth quarter of 2024. On a year-over-year basis, fourth quarter revenue increased 38.8%, while net income and diluted earnings per share both increased 57%. In U.S. dollars, fourth quarter revenue was $26.88 billion, up 37% on a year-over-year basis and at the high end of management’s guidance. TSM’s foundry operations continue to put up elevated levels of profitability. Gross margin for the … Read more

Bank Earnings Roundup: C, WFC, GS, JPM

by

Image Source: Hakan Dahlstrom By Brian Nelson, CFA Citigroup Authorizes New $20 Billion Buyback Program On January 15, Citigroup (C) reported better than expected fourth quarter results with revenue and GAAP earnings per share coming in higher than the consensus forecast. Revenue increased 12% from the prior year, to $19.6 billion, while net income for the fourth quarter of 2024 came in at $2.9 billion, or $1.34 per diluted share. Its CET1 Capital ratio was 13.6% at the end of the period versus 13.7% at the end of the prior quarter last year. Citigroup’s book value per share came in at $101.62 at the end of the quarter, increasing 3% versus the prior-year period, while tangible book value per share was … Read more

KB Home’s Outlook for 2025 Better Than Expected

by

Image: KB Home’s shares have done well since the beginning of 2023. By Brian Nelson, CFA KB Home (KBH) reported fourth quarter results on January 13 that beat expectations on both the top and bottom lines. Year-over-year, revenues were up 19%, to $2 billion, above consensus of $1.98 billion, while homes delivered increased 17% and average selling price advanced 3%, to $501,000. Homebuilding operating income increased 27% in the quarter thanks in part to a 60 basis-point improvement in its homebuilding operating income margin. KB Home’s housing gross profit margin increased to 20.9% from 20.7% in the same period last year. Financial services pretax income grew 8% in the quarter. Net income rose 27%, while diluted earnings per share increased … Read more

Walgreens Reports Better Than Feared Results, Shares Yield 8.5%

by

Image Source: Walgreens By Brian Nelson, CFA On January 10, Walgreens (WBA) reported better than feared first quarter results of fiscal 2025 with revenue and non-GAAP earnings per share coming in higher than the consensus forecast. Fiscal first quarter sales increased 7.5% from the year-ago quarter and 6.9% on a constant currency basis. Adjusted operating income was $593 million in the quarter compared to adjusted operating income of $687 million in the year-ago period. Adjusted earnings per share came in at $0.51 versus adjusted earnings per share of $0.66 in the year-ago quarter. Management had the following to say about the quarterly results: Our first quarter results reflect our disciplined execution against our 2025 priorities: stabilizing the retail pharmacy by … Read more

Delta Delivers Most Profitable December Quarter in Its History

by

Image Source: Colin Brown By Brian Nelson, CFA On January 10, Delta Air Lines (DAL) posted fourth quarter 2024 results that beat on both the top and bottom lines. Adjusted operating revenue increased 5.7% in the fourth quarter, and the firm leveraged the top line growth into 30.4% expansion in adjusted operating income. Its adjusted operating margin in the quarter hit 12% compared with 9.7% in the same period a year ago. Adjusted pre-tax income was 47% higher on a year over year basis, while its adjusted pre-tax margin reached 10.8% versus 7.8% in last year’s quarter. Adjusted net income increased 45.6%, while adjusted diluted earnings per share expanded to $1.85 in the quarter versus $1.74 consensus and $1.28 in last … Read more

Dividend Increases/Decreases for the Week of January 10

by

Below we provide a list of firms that raised their dividends during the week ending January 10. 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                          Albertsons Companies (ACI): now $0.15 per share quarterly dividend, was $0.12. Alpine Banks of Colorado (ALPIB): now $0.21 per share quarterly dividend, was $0.20. Apogee (APOG): now $0.26 per share quarterly dividend, was $0.25. ATCO (ACO.X:CA): now CAD 0.5045 per share quarterly dividend, was CAD 0.4898. ATCO Ltd. (ACO.Y:CA): now CAD 0.5045 per share quarterly dividend, was CAD 0.4898. Barry Callebaut AG (BRRLY): now … Read more