Brian Nelson

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

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