Brian Nelson

Kinder Morgan Delivers Highest Ever Fourth Quarter Net Income

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Image Source: TradingView By Brian Nelson, CFA On January 21, Kinder Morgan (KMI) reported better than expected fourth quarter results. Fourth quarter net income attributable to KMI came in at $996 million versus $667 million in the fourth quarter of 2024. Adjusted net income was 22% higher than the same period a year ago. Adjusted EBITDA was up 10%, to $2.27 billion, while earnings per share of $0.45 was up 50% versus the fourth quarter of 2024. Adjusted earnings per share was $0.39, up 22% versus the same period a year ago. Management had the following to say about the results: Led by record-setting performance in our Natural Gas Pipelines business segment, the company delivered its highest ever fourth quarter … Read more

Procter & Gamble Points to Challenging Consumer and Geopolitical Environment

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Image Source: TradingView By Brian Nelson, CFA On January 22, Procter & Gamble (PG) reported results for the second quarter of fiscal 2026 that were mixed. The company missed estimates on the top line but beat expectations on the bottom line. Net sales increased 1%, but organic sales were unchanged versus the prior year. Core earnings per share came in at $1.88, in-line versus the prior year. Operating cash flow was $5.0 billion, while net earnings were $4.3 billion for the quarter. Adjusted free cash flow productivity, as measured by operating cash flow less capital spending as a percentage of net earnings, was 88%. P&G returned $4.8 billion to shareholders, split between $2.5 billion in dividend payments and $2.3 billion … Read more

Netflix Continues Its Bid for Warner Bros. Discovery

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Image Source: Netflix By Brian Nelson, CFA On January 20, Netflix (NFLX) reported fourth quarter results that came in better than expected on both the top and bottom lines. In the period, revenue increased 17.6% year-over-year, while the firm crossed the 325 million paid membership milestone. Operating income increased 30% year-over-year, with its operating margin increasing roughly 230 basis points. Net income came in at $2.4 billion versus $1.9 billion in the year-ago period and diluted earnings per share came in at $0.56 versus $0.43 in the year-ago period. Free cash flow was $1.9 billion in the quarter, up from $1.4 billion in last year’s period. The results were driven by membership growth, higher pricing, and increased ad revenue. Management … Read more

Key Comments from the Banks This Earnings Season

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Image Source: TradingView By Valuentum Analysts JPMorgan’s (JPM) CEO Jamie Dimon: The Firm concluded the year with a strong fourth quarter, generating net income of $14.7 billion excluding a significant item. Each line of business performed well. In the CIB, revenue rose 10%. Markets continued to benefit from demand for financing and robust client activity, pushing revenue up 17%. Additionally, Payments revenue reached a record $5.1 billion due to ongoing deposit and fee growth. In CCB, revenue rose 6%, and the franchise continued to acquire new customers at a robust pace. This year, we opened 1.7 million net new checking accounts and 10.4 million new credit card accounts, and we also grew wealth management households to over 3 million. Looking … Read more

Oracle Has Turned Into a Net Debt Heavy, Free Cash Flow Burning Enterprise

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Image Source: TradingView By Brian Nelson, CFA On December 10, Oracle (ORCL) reported second quarter fiscal 2026 results that were mixed, with revenue missing the consensus forecast, but non-GAAP earnings per share exceeding expectations. Total quarterly revenues were up 14% in USD, and up 13% in constant currency. Second quarter remaining performance obligations (RPO) were $523 billion, up 438% in USD. Cloud revenue (IaaS plus SaaS) was up 34% in USD and 33% in constant currency. Cloud Infrastructure (IaaS) revenue was up 68% in USD and 66% in constant currency, while Cloud Application (SaaS) revenue was up 11% in both USD and constant currency. Non-GAAP earnings per share was up 54%, to $2.26. Management had the following to say about the … Read more

The TJX Companies Raises Fiscal 2026 Outlook

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Image Source: TradingView By Brian Nelson, CFA The TJX Companies (TJX) recently reported third quarter fiscal 2026 results that beat on both the top and bottom lines. The off-price apparel and home fashions retailer posted net sales for the third quarter of $15.1 billion, an increase of 7% versus the same period of fiscal 2025. Third quarter consolidated comparable sales increased 5%, well above the company’s plan and above consensus of 3.6%. Also above the company’s plan were third quarter pretax profit margin and diluted earnings per share of $1.28, up 12%. Management had the following to say about the results: I am extremely pleased with our third quarter performance and the excellent execution of our off-price business model by … Read more

Macy’s Raises Outlook for 2025

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Image Source: TradingView By Brian Nelson, CFA Macy’s (M) recently reported third quarter results that came in better than expected on both the top and bottom lines. The retailer achieved net sales of $4.7 billion, exceeding the company’s guidance range. Macy’s reported comparable sales were up 2.5% on an owned basis and up 3.2% on a comparable owned-plus-licensed-plus marketplace (O+L+M) basis, also exceeding the company’s guidance range. Adjusted diluted earnings per share was $0.09, above its prior guidance range thanks to better-than-expected net sales, gross margin, and overhead costs. Bloomingdale’s comparable store sales were up 8.8% on an owned basis and up 9.0% on an O+L+M basis, the highest in 13 quarters. Management had the following to say about the results: … Read more

NextEra Energy Expects Continued Dividend Growth

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Image Source: NextEra Energy By Brian Nelson, CFA NextEra Energy (NEE) recently reported mixed third quarter results with non-GAAP earnings per share beating the consensus forecast but revenue coming up short relative to expectations. On an adjusted basis, third-quarter earnings were $2.348 billion, or $1.13 per share, compared to $2.127 billion, or $1.03 per share, in the third quarter of last year. FPL grew regulatory capital employed by approximately 8% year-over-year, while NextEra Energy Resources achieved a strong quarter of new renewables and storage origination, adding 3 gigawatts to its backlog. Management had the following to say about the results: NextEra Energy delivered strong third-quarter results, with adjusted earnings per share increasing by 9.7% year-over-year. We believe the continued strong … Read more

Nvidia Says “Blackwell Sales Are Off the Charts”

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Image Source: TradingView By Brian Nelson, CFA On November 19, tech behemoth Nvidia (NVDA) reported better than expected third quarter results with both revenue and non-GAAP earnings per share exceeding the consensus forecasts. The company posted record revenue of $57 billion, up 62% from the same quarter a year ago, and record Data Center revenue of $51.2 billion, up 66% from the same period a year ago. Its non-GAAP gross margin was 73.6%, while non-GAAP diluted earnings per share was $1.30. At the end of the quarter, Nvidia had $60.6 billion in cash and marketable securities and $8.5 billion in short- and long-term debt. Management had the following to say about the results: Blackwell sales are off the charts, and cloud … Read more

Republic Services’ Pricing Strength Drives Results

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By Brian Nelson, CFA Trash taker Republic Services (RSG) recently reported third quarter results that were mixed. Revenue growth of 3.3% missed the consensus analyst estimate, while non-GAAP earnings per share exceeded the consensus mark by $0.12. Total revenue growth was driven by 1.7 percentage point organic growth and 1.6 percentage point growth from acquisitions. Adjusted earnings per share came in at $1.90 versus $1.81 per share in the prior-year period, while its adjusted EBITDA came in at $1.38 billion on a margin of 32.8%, up 80 basis points over the prior year quarter. Management had the following to say about the results: We delivered strong third-quarter results as we continue to execute our strategy for sustainable, profitable growth. Despite … Read more