Brian Nelson

FedEx’s Cost Initiatives Drive Strong Fiscal 2025 Guidance

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Image Source: FedEx By Brian Nelson, CFA On June 25, FedEx (FDX) reported better than expected fourth quarter results for fiscal 2024. Revenue advanced 0.9% on a year-over-year basis in the fourth quarter, while adjusted operating income expanded to $1.87 billion from $1.77 billion in the same period a year ago. Net income increased to $1.34 billion in the fiscal fourth quarter from $1.25 billion in last year’s quarter. Adjusted diluted earnings per share came in at $5.41, up from $4.94 in the same period a year ago. Management had the following to say about the quarterly performance: We made significant progress in fiscal 2024 and ended the year strong, delivering four consecutive quarters of expanding operating income and margin … Read more

Carnival Corp. Experiencing Strong Demand Trends

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Image: Carnival Corp.’s shares have bounced from its 2022 lows, but the company has yet to return to new highs, despite strong bookings demand. By Brian Nelson, CFA On June 25, Carnival Corp. (CCL) reported better-than-expected second quarter results for fiscal 2024. Total revenue advanced to $5.78 billion from $4.91 billion in the same period a year ago, while operating income expanded to $560 million from $120 million in last year’s quarter. Net income swung to a profit of $92 million from a net loss of $407 million in the second quarter of fiscal 2023. Management commentary was upbeat in the press release: We have made incredible strides in improving our commercial operations, strategically reallocating our portfolio composition and formulating … Read more

FactSet Research Reveals Softness on Top Line

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Image: FactSet’s shares have been choppy the past couple years. By Brian Nelson, CFA On June 21, FactSet Research (FDS) reported mixed third-quarter fiscal 2024 results that showed revenue increasing 4.3%, in-line with expectations, and adjusted diluted earnings per share of $4.37, up 15.3% from last year’s quarter and better than what the Street was looking for. The bottom line benefitted from higher revenues, margin expansion, as well as a reduced share count, offset in part by higher income taxes. Organic revenue grew 4.5% on a year-over-year basis, while organic Annual Subscription Value (ASV), which “represents the forward-looking revenues for the next 12 months from all subscription services,” increased 5% on a year-over-year basis, to $2.22 billion. The company’s adjusted … Read more

CarMax Dealing with Vehicle Affordability Issues

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Image: CarMax’s shares have yet to recover from prior year highs. By Brian Nelson, CFA CarMax (KMX) reported better than expected first quarter fiscal 2024 results on June 21. Net sales declined ~7.5%, modestly better than the consensus estimate, while GAAP earnings per share of $0.97 edged out what the Street was looking for. Retail used unit sales decreased 3.1% from the same period a year ago, while comparable store used unit sales fell 3.8% and wholesale units dropped 8.3% on a year-over-year basis. Gross profit per retail used unit was $2,347, roughly in line with last year’s mark. CarMax Auto Finance (CAF) income grew 7% from last year’s quarter. Management had the following to say about the quarter: I … Read more

Dividend Increases/Decreases for the Week of June 21

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Below we provide a list of firms that raised their dividends during the week ending June 21. 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                          3i Group plc (TGOPY): now $0.1936 per share semi-annual dividend, was $0.1426. Asseco Poland S.A. (ASOZY): now $0.687 per share annual dividend, was $0.633. blueharbor bank (BLHK): now $0.20 per share special dividend, was $0.10. Canadian Banc (CNDCF): now CAD 0.1393 per share monthly dividend, was CAD 0.1354. China Foods Limited (CHFHY): now $0.324 per share annual dividend, was $0.268. Darden Restaurants (DRI): now … Read more

Kroger’s Identical Store Sales Beat Consensus

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Image: Kroger’s shares have been choppy during the past couple years. By Brian Nelson, CFA On June 20, Kroger (KR) reported solid first-quarter fiscal 2024 results for the period ended May 25, 2024. Identical-store sales without fuel increased 0.5%, better than the consensus forecast, while adjusted earnings per share came in at $1.43, down from a year ago, but better than what the Street was looking for. Digital sales advanced 8%, while Delivery and Pickup combined for a double-digit increase. Adjusted FIFO operating profit was $1.499 billion in the quarter. Management had the following to say about the quarter: Kroger is off to a solid start in 2024 led by better-than-expected performance of our grocery business.   Kroger is delivering exceptional … Read more

Lennar Navigating Fluctuating Interest Rate Environment Well

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Image: Lennar has been a strong performer since the beginning of 2023. By Brian Nelson, CFA On June 17, homebuilder Lennar (LEN) reported better than expected second quarter results for fiscal 2024. Total revenues increased 9%, while diluted earnings per share leapt to $3.45 in the quarter from $3.01 in the same period a year ago. New orders jumped 19%, to 21,293 homes, while the firm’s backlog stood at 17,873 homes with a dollar value of $8.2 billion. Deliveries in the quarter increased 15%, to 19,690 homes. Its average sales price, net of incentives, per home delivered came in at $426,000 in the second quarter, while its homebuilding gross margin was up 10 basis points from last year, to 22.6%. … Read more

Adobe’s Outlook Doesn’t Disappoint

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Image: Adobe’s shares are getting back on track after it issued a strong outlook for fiscal 2024. By Brian Nelson, CFA On June 13, Adobe (ADBE) reported better than expected second quarter results for fiscal 2024. Revenue grew 10% on a year-over-year basis (11% in constant currency), while diluted earnings per share came in at $4.48 on a non-GAAP basis. Non-GAAP operating income was $2.44 billion in the quarter, while the firm exited the period with $17.86 billion in remaining performance obligations. Management had the following to say about the quarter in the press release: Adobe achieved record revenue of $5.31 billion driven by strong growth across Creative Cloud, Document Cloud and Experience Cloud. Our highly differentiated approach to AI … Read more

Broadcom Issues Strong Guidance, Announces Stock Split

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Image: Broadcom’s shares have done quite well in the past couple of years. We liked its fiscal second quarter results and outlook. By Brian Nelson, CFA On June 12, Broadcom (AVGO) reported second quarter fiscal 2024 results for the period ended May 5. The company beat revenue on both the top and bottom lines in the quarter. Revenue increased 43% from the year-ago period, while adjusted EBITDA increased from $5.7 billion to $7.4 billion in the quarter (59% of total revenue), making for some continued strong levels of profitability. Non-GAAP diluted earnings per share were $10.96 in the fiscal second quarter, up from $10.32 in the same quarter a year ago. Management’s commentary was positive in the press release: Broadcom’s … Read more

Oracle Misses in Q4 But Bookings Performance and Outlook Strong

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Image: Oracle’s shares have done quite well since the beginning of 2023, and management’s outlook speaks to continued strength. By Brian Nelson, CFA On June 11, Oracle (ORCL) reported fourth quarter fiscal 2024 results that missed expectations on the top and bottom line, but the company’s total remaining performance obligations increased a whopping 44% on a year-over-year basis, to $98 billion–up $18 billion from the fiscal third quarter. Total quarterly revenue advanced 4% in constant currency, while non-GAAP operating income jumped 9% in constant currency. Management commented positively in the quarterly earnings press release about the pace of orders and the visibility it provides into the coming fiscal years: In Q3 and Q4, Oracle signed the largest sales contracts in … Read more