Brian Nelson – Page 500

The US Housing Market Is Back

July 30, 2012 by Brian Nelson

The housing market in the United States has regained its footing and looks poised to rebound even further. First, on Thursday, PulteGroup (click ticker for report: PHM) reported better-than-expected second-quarter earnings, generated 15% revenue growth, and showed that its backlog grew 31% year-over-year on a unit basis. Then, on Friday, D.R. Horton’s (click ticker for report: DHI) fiscal third-quarter results revealed its backlog advanced 25% year-over-year. Plus, the firm reversed a tax-asset write-down, indicating the company expects increased profitability down the road. The strong performance from these two builders was preceded by solid results from other builders including KB Home (click ticker for report: KBH) and Lennar (click ticker for report: LEN). Though conventional wisdom may suggest a weak economic … Read more

Strong Growth Continues at Whole Foods Market

July 30, 2012 by Brian Nelson

Whole Foods Market (click ticker for report: WFM) continues to stand out among grocers, reporting yet another stellar quarter. During its fiscal year 2012 third quarter, the grocery store chain, known for its healthier product offerings, saw same-store sales increase 8.2% in spite of the Easter and 4th of July shift. Total sales surged nearly 14% compared to the same period a year ago to $2.7 billion, which was in-line with expectations. Earnings per share grew 26% year-over-year to $0.63, which was slightly more than the Street expected. As a result of strong earnings growth, the firm generated $401.3 million in free cash flow during its third quarter. This is quite different from its older competitors—namely SuperValu (click ticker for … Read more

Decker’s Second Quarter Results Were Strong Despite the Headline Loss

July 30, 2012 by Brian Nelson

Footwear firm Deckers reported a strong second quarter. We think shares are undervalued and that the firm’s weakness was a result of seasonal factors.

Chevron Boasts Strong Downstream Performance in Second Quarter

July 27, 2012 by Brian Nelson

Though Chevron’s second-quarter net income fell, we were very pleased with performance in its downstream business. The firm remains a core holding in the portfolio of our Dividend Growth Newsletter.

Merck Reports Solid Second Quarter; Its Drug Pipeline Looks Promising

July 27, 2012 by Brian Nelson

Merck reported solid second quarter results and indicated that progress in its pipeline remains strong. Though the firm will face patent expiration of its blockbuster Singulair in coming weeks, we think shares remain fairly valued.

Dividend Growth Gem Republic Services Reports Strong Second Quarter; Raises Dividend

July 27, 2012 by Brian Nelson

Dividend growth gem Republic Services hiked its dividend 7% as it works to get its operations back on track. The garbage hauler’s second quarter was decent, and its debt refinancings suggest continued strong dividend growth for years to come.

Amazon’s Profits Fall Short in Its Second Quarter

July 27, 2012 by Brian Nelson

Amazon reported weak second-quarter results as profits plummeted and free cash flow dropped considerably. Though we have no qualms about the online retailer’s revenue expansion, we’d like to see more robust profit-generation before considering it in our Best Ideas portfolio.

Starbucks’ Fiscal Third Quarter Results and Outlook Disappoint

July 27, 2012 by Brian Nelson

Starbucks reported lower than expected fiscal third-quarter results, and its outlook fell short of consensus expectations. We continue to think the shares are overvalued.

Alert: Facebook Tumbles in After-Hours Trading

July 26, 2012 by Brian Nelson

Facebook posted disappointing second-quarter results in its first earnings report since going public. The firm continues to converge to our $20 per share fair value estimate.

Colgate and Kimberly Clark Post Strong Second Quarter Results

July 26, 2012 by Brian Nelson

Consumer products firms Colgate and Kimberly Clark posted strong second quarter results that showed solid organic growth and gross margin expansion. Though the share price of each firm falls within its respective fair value range, we’re keeping a close eye on both companies.