Brian Nelson

Albemarle Is Getting Back on Track

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By Brian Nelson, CFA On November 5, Albemarle (ALB) reported better than feared third quarter results with both revenue and non-GAAP earnings per share exceeding the consensus forecasts. Net sales came of $1.3 billion declined modestly, while the company reported an adjusted loss of $0.19 per diluted share, up from an adjusted loss of $1.55 in the prior year period. Adjusted EBITDA came in at $226 million, up 7% due to improved fixed cost absorption and ongoing cost savings. Albemarle is on track to achieve full-year run-rate cost and productivity improvements of roughly $450 million, better than its initial target of $300-$400 million. Management had the following to say about the results: Our team delivered strong third quarter results, with … Read more

Cisco Puts Up Solid First Quarter Fiscal 2026 Results

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By Brian Nelson, CFA On November 12, Cisco (CSCO) reported better than expected first quarter fiscal 2026 results with revenue and non-GAAP earnings per share exceeding the consensus forecasts. Revenue increased 8% year-over-year, while non-GAAP earnings per share of $1.00 increased 10% year-over-year, above the high end of its guidance range. Non-GAAP gross margin of 68.1% and non-GAAP operating margin of 34.4% were both above the high end of its guidance ranges. Cash flow from operating activities fell to $3.2 billion in the first quarter of fiscal 2026, a decline of 12% compared to the mark in the same period last year. Management had the following to say about the quarter: We had a solid start to fiscal 2026, and … Read more

Altria Narrows Outlook While It Expands Its Buyback Program

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By Brian Nelson, CFA Altria (MO) recently reported mixed third quarter results with revenue missing the consensus mark, but non-GAAP earnings per share coming in line. Net revenues dropped 3% in the quarter year-over-year due to lower net revenues in the smokeable and oral tobacco products segments, while adjusted diluted earnings per share increased 3.6%, to $1.45. Adjusted operating companies income (OCI) totaled $2.96 billion in the period, up from $2.94 billion in last year’s quarter. The company narrowed its guidance for 2025 full-year adjusted diluted earnings per share, while it expanded its existing share repurchase program. Management expects fourth quarter earnings per share growth to moderate as it laps a lower share count associated with the completion of its … Read more

McDonald’s Sees Weakness from Lower-Income Consumers

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By Brian Nelson, CFA On November 5, McDonald’s (MCD) reported third quarter results that missed expectations on both the top and bottom lines. Global comparable sales came in better than expected at 3.6%, with broad-based growth across all segments. U.S. comps increased 2.4%, international operated markets increased 4.3%, while international developmental licensed markets increased 4.7%. Consolidated revenues increased 3% (1% in constant currencies), while global systemwide sales were over $36 billion for the quarter, an increase of 8% year-over-year (6% in constant currency). Management had the following to say about the quarter: We increased global Systemwide sales by 6% and grew comp sales across all segments, a testament to our ability to deliver sustainable growth even in a challenging environment. … Read more

Amazon’s Cloud Business Continues to Propel Results

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Image Source: TradingView By Brian Nelson, CFA Amazon (AMZN) recently reported third quarter results that beat expectations for both revenue and adjusted earnings per share. Net sales increased 13%, to $180.2 billion, in the third quarter, which compares to $158.9 billion in the same quarter a year ago and was nearly $3 billion more than expected. Excluding foreign exchange impacts, net sales increased 12% compared to the third quarter of last year. North America segment sales increased 11%, international segment sales increased 14%, while AWS segment sales advanced 20% year-over-year, to $33 billion. Adjusted operating income came in at $21.7 billion versus $17.4 billion in the same period a year ago. Net income increased to $21.2 billion in the quarter, … Read more

Apple Looks to Strong December Quarter

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Image Source: TradingView By Brian Nelson, CFA On October 30, Apple (AAPL) reported better than expected fiscal fourth quarter results, with both revenue and GAAP earnings per share exceeding the consensus forecast. Quarterly revenue of $102.5 billion was up 8% year-over-year, while adjusted diluted earnings per share of $1.85 was up 13% year-over-year. Management had the following to say about the results: Today, Apple is very proud to report a September quarter revenue record of $102.5 billion, including a September quarter revenue record for iPhone and an all-time revenue record for Services. In September, we were thrilled to launch our best iPhone lineup ever, including iPhone 17, iPhone 17 Pro and Pro Max, and iPhone Air. In addition, we launched … Read more

Chipotle Facing Consumer Spending Pressures

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Image Source: TradingView By Brian Nelson, CFA On October 29, Chipotle (CMG) reported disappointing third quarter results with revenue missing the mark and non-GAAP earnings per share coming in-line with expectations. In the quarter, total revenue increased 7.5%, to $3 billion, while comparable restaurant sales increased 0.3%, bolstered by a 1.1% increase in average check, partially offset by lower transactions of 0.8%. Chipotle’s operating margin was 15.9%, a decline from 16.9%, while its restaurant level operating margin also fell to 24.5% from 25.5% previously, as the company faced higher protein and labor costs as well as tariff pressures. Adjusted diluted earnings per share increased 7.4%, to $0.29, in the quarter. It opened 84 company-owned restaurants, with 64 locations including a … Read more

Alphabet Remains a Net-Cash-Rich, Free-Cash-Flow Generating Powerhouse

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Image: Alphabet’s revenues eclipsed $100 billion in the quarter. By Brian Nelson, CFA On October 29, Alphabet (GOOG) (GOOGL) reported solid third quarter results with revenue and GAAP earnings per share coming in better than expected. Consolidated revenues increased 16% (up 15% in constant currency) in the quarter, to $102.3 billion. Consensus was at $100.14 billion. Google Search & other, YouTube ads, Google subscriptions, platforms and devices, and Google Cloud all experienced double-digit growth in the third quarter. Google Services revenue increased 14%, while Google Cloud revenues jumped 34%. Adjusted operating income increased 22% on an operating margin of 33.9%. Net income increased 33%, while earnings per share increased 35%, to $2.87, better than consensus of $2.26. Management had the … Read more

Microsoft’s First Quarter Fiscal 2026 Results Solid

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Image Source: TradingView By Brian Nelson, CFA On October 29, Microsoft (MSFT) reported excellent first quarter fiscal 2026 results with revenue and non-GAAP earnings per share coming in ahead of expectations. Revenue increased 18% (up 17% in constant currency), while operating income jumped 24% (up 22% in constant currency). Non-GAAP net income was $30.8 billion, increasing 22% (up 21% in constant currency), while non-GAAP diluted earnings per share came in at $4.13, increasing 23% (up 21% in constant currency). Management had the following to say about the results: Our planet-scale cloud and AI factory, together with Copilots across high value domains, is driving broad diffusion and real-world impact. It’s why we continue to increase our investments in AI across both … Read more

Booking Holdings Looks to Robust Growth in Fourth Quarter

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Image Source: Booking Holdings By Brian Nelson, CFA On October 28, Booking Holdings (BKNG) reported better than expected third quarter results with both revenue and non-GAAP earnings per share exceeding the consensus forecast. Revenue grew 13% compared to the third quarter of 2024, or 8% on a constant currency basis. Room nights increased 8% compared to the third quarter of 2024, while gross bookings advanced 14% compared to the same period a year ago, or 10% on a constant currency basis. Adjusted earnings per share and adjusted EBITDA expanded 19% and 15% year-over-year, respectively. Management had the following to say about the results: We are pleased to report a strong third quarter, with 8% room night growth and double-digit gains … Read more