Brian Nelson

Boeing Burning Through Cash

by

  Image: Boeing’s shares have seen better days. By Brian Nelson, CFA Aerospace giant Boeing (BA) reported disappointing third quarter results on October 23, with revenue and non-GAAP earnings per share coming in lower than expected. Revenue fell 1% in the quarter, while the firm posted large operating and net losses, which reflected impacts from the IAM strike and previously announced charges on its commercial (777X, 767) and defense (T-7A, KC-46A Tanker, Commercial Crew, and MQ-25) programs. GAAP loss per share was $9.97, while core non-GAAP loss per share came in at $10.44. These numbers aren’t reflective of Boeing’s long-term earnings power, but they showcase the challenges the firm continues to face. Management acknowledged that the path ahead will be … Read more

Starbucks Posts Lower Than Expected Performance, Turnaround Will Take Time””

by

Image: Starbucks’ shares have been volatile the past couple years. By Brian Nelson, CFA Starbucks (SBUX) is in the midst of transition, and new CEO Brian Niccol will have his hands full getting the company back on track. On October 22, Starbucks announced preliminary results for its fiscal fourth quarter, and the outlook wasn’t rosy. For the fourth quarter of fiscal 2024, Starbucks’ global comparable store sales fell 7%, while consolidated net revenues declined 3%, to $9.1 billion. GAAP earnings per share came in at $0.80, down 25% on a year-over-year basis. Non-GAAP earnings per share fell 24% in the quarter. Here is a summary of its fiscal fourth quarter results: The company’s results were primarily driven by softness in … Read more

Lockheed Martin Raises 2024 Guidance, F-35 Program in Focus

by

Image: Lockheed Martin’s shares have done well of late. By Brian Nelson, CFA On October 22, Lockheed Martin (LMT) reported mixed third quarter results with revenue coming up short relative to the consensus forecast but non-GAAP earnings per share beating what the market had been expecting. Net sales advanced 1% on a year-over-year basis, while net earnings of $1.6 billion fell from $1.7 billion in the third quarter of last year. Net earnings per share came in at $6.80, up from $6.73 per share in the year-ago period. Cash flow from operations was $2.4 billion, down from $2.9 billion in the same period last year, while free cash flow was $2.1 billion in the third quarter of 2024, down from … Read more

Philip Morris Raises 2024 Guidance, Shares Catapult to All-Time Highs

by

Image: Shares of Philip Morris catapult to all-time highs. By Brian Nelson, CFA On October 22, Philip Morris (PM) reported better than expected third quarter results that showed a beat on both the top and bottom lines. Reported net revenue advanced 8.4% on 11.6% organic growth in the quarter. Gross profit increased 9.5% on reported basis and 13% organically. Operating income was up 8.4% on a reported basis and 13.8% organically versus the prior year’s quarter. Adjusted diluted earnings per share, excluding currency, came in 18% higher versus last year’s quarter, to $1.97 per share. Management was pleased with the performance: In the third quarter, we delivered exceptionally strong performance, with record quarterly net revenues and earnings per share. This … Read more

Procter & Gamble Maintains Outlook for Fiscal 2025

by

Image: P&G maintained its outlook for fiscal 2025, as shares flirt with all-time highs. By Brian Nelson, CFA On October 18, Procter & Gamble (PG) reported mixed first-quarter fiscal 2025 results with revenue coming in lower than the consensus forecast, while non-GAAP earnings per share edged out what the Street was looking for. Fiscal first quarter revenue fell 1% versus the prior year’s quarter, while organic sales advanced 2%, lapping 7% growth in the prior year period. A one percent increase from higher pricing and a one percent increase in organic volume drove the organic sales increase. Organic sales were strong in its Grooming (+3%), Health Care (+4%), and Fabric & Home Care (+3%) segments, while Beauty (-2%) weighed on … Read more

Netflix Continues to Deliver on Content and Engagement, Free Cash Flow Robust

by

Image: Netflix’s shares are trading at all-time highs. By Brian Nelson, CFA On October 17, Netflix (NFLX) reported better than expected third quarter results with both revenue and GAAP earnings per share coming ahead of the consensus forecast. In the quarter revenue grew 15% on a year-over-year basis (21% on an F/X neutral basis), while the firm put up an operating margin of 29.6% versus 22.4% in the year-ago period. Global streaming paid memberships advanced 14.4%, to 282.72 million, as the firm recorded 5.07 million global streaming paid net additions on a sequential basis. Third quarter operating income advanced 52% year-over-year in the quarter. Net cash provided by operating activities was $2.32 billion in the quarter, while the firm hauled … Read more

Dividend Increases/Decreases for the Week of October 18

by

Below we provide a list of firms that raised their dividends during the week ending October 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                          AVI Limited (AVSFY): now $0.8942 per share semi-annual dividend, was $0.3815. Avnet (AVT): now $0.55 per share quarterly dividend, was $0.33. Blackstone (BX): now $0.86 per share quarterly dividend, was $0.82. Discovery Limited (DCYHY): now $0.1585 per share semi-annual dividend, was $0.0733. Dorchester Minerals (DMLP): now $0.9957 per share quarterly dividend, was $0.7020. dormakaba Holding AG (DRMKY): now $0.0812 per share semi-annual dividend, was … Read more

Kinder Morgan’s Dividend Is Much Healthier These Days

by

Image: Kinder Morgan’s shares have done quite well thanks to improved free cash flow performance. By Brian Nelson, CFA On October 16, pipeline giant Kinder Morgan (KMI) reported weaker than expected third quarter results, with both revenue and non-GAAP earnings per share coming in lower than what the Street was looking for. Adjusted EBITDA expanded 2% in the third quarter on a year-over-year basis, while net income attributable to KMI came in at $625 million, higher than the $532 million mark it posted in the year-ago quarter. Third quarter earnings per share was up 17% compared to the same period last year, but adjusted earnings per share of $0.25 and distributable cash flow of $0.49 per share were flat on … Read more

Taiwan Semiconductor Benefiting from Strong Smartphone and AI Demand

by

Image: Taiwan Semiconductor released better than expected results. By Brian Nelson, CFA Taiwan Semiconductor (TSM) reported excellent third quarter results on October 17. In the quarter, consolidated revenue came in at NT$759.69 billion, net income was NT$325.26 billion while diluted earnings per share was NT$12.54 (US$1.94 per ADR unit), all coming in ahead of expectations. On a year over year basis, revenue grew 39%, while net income and diluted earnings per share increased 54.2%. On a sequential basis, revenue advanced 12.8%, while net income leapt 31.2% higher. Return on equity was 33.4% in the quarter, up 7.6 percentage points on a year-over-year basis. On a US-dollar basis, third quarter revenue of $23.5 billion advanced 36% year-over-year, ahead of guidance calling … Read more

ASML Holding Lowers 2025 Outlook

by

Image: ASML Holding is falling from recent highs as its third quarter report and outlook disappointed investors. By Brian Nelson, CFA On October 15, ASML Holding (ASML) reported disappointing results for the third quarter of 2024, as the firm’s quarterly net bookings were weaker than the market was expecting. Third quarter total net sales were €7.5 billion (better than consensus of €7.17 billion), while it put up a gross margin of 50.8%, resulting in net income of €2.1 billion in the quarter (better than consensus of €1.91 billion). The big news, however, was that net bookings in the third quarter were €2.6 billion versus consensus expectations of €5.39 billion. Management had the following to say about the quarter, adjusting its … Read more