Brian Nelson

Philip Morris’ Smoke-Free Portfolio Continues to Outperform

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Image Source: Philip Morris By Brian Nelson, CFA On October 21, Philip Morris (PM) reported better than expected third quarter results with both revenue and non-GAAP earnings per share exceeding the consensus forecasts. Third quarter net revenues increased 5.9% on an organic basis, reflecting higher combustible tobacco pricing and favorable volume/mix driven by higher smoke-free products volume, offset in part by lower volumes and unfavorable mix for cigarettes. Philip Morris’ shipment volume increased 0.7% with smoke-free product (SFP) volumes up 16.6%, with all SFP categories growing strongly. Cigarette volumes declined 3.2%, with weakness in all regions. Adjusted operating income increased 7.5% on an organic basis. Adjusted diluted earnings per share grew 17.3%, to $2.24, and by 13.1% excluding currency. Management … Read more

Lockheed Martin Raises 2025 Guidance

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Image Source: TradingView By Brian Nelson, CFA On October 21, Lockheed Martin (LMT) reported better than expected third quarter results, with revenue and GAAP earnings per share exceeding the consensus forecasts. Third quarter sales of $18.6 billion increased compared to $17.1 billion in the third quarter of 2024. Net earnings in the third quarter were $1.6 billion, or $6.95 per share, compared to $1.6 billion, or $6.80 per share in the third quarter of last year. Cash flow from operations was $3.7 billion in the third quarter, compared to $2.4 billion in the third quarter of 2024. Free cash flow was $3.3 billion in the third quarter, compared to $2.1 billion in the third quarter of last year. Management had … Read more

Taiwan Semiconductor Looks to Strong Q4

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Image Source: TSMC By Brian Nelson, CFA On October 16, Taiwan Semiconductor Manufacturing (TSM) reported better than expected third quarter results, with the top and bottom line exceeding the consensus forecasts. In U.S. dollars, third quarter revenue was $33.1 billion, which increased 40.8% year-over-year. Gross margin for the quarter was 59.5% (1.7 percentage points higher than 3Q24), operating margin was 50.6% (3.1 percentage points better than 3Q24), and net profit margin was 45.7%. Management was upbeat on the outlook: Our business in the third quarter was supported by strong demand for our leading-edge process technologies Moving into fourth quarter 2025, we expect our business to be supported by continued strong demand for our leading-edge process technologies. In the third quarter, … Read more

ASML Holding’s Net Bookings Beat Expectations

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Image Source: TradingView By Brian Nelson, CFA On October 15, ASML Holding (ASML) reported mixed third quarter results with revenue coming in a bit light relative to forecasts, but GAAP earnings per share exceeding the consensus estimate. Third quarter total net sales increased modestly year-over-year and totaled €7.5 billion on a gross margin of 51.6%. Net income came in at €2.1 billion. Quarterly net bookings in the quarter were €5.4 billion, better than the consensus estimate of €4.9 billion, of which €3.6 billion is EUV (extreme ultraviolet lithography). Management had the following to say about the results: Our third-quarter total net sales of €7.5 billion and gross margin of 51.6% were in line with our guidance, reflecting a good quarter … Read more

Dividend Increases/Decreases for the Week of October 17

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Below we provide a list of firms that raised their dividends during the week ending October 17. 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                          A.O. Smith Corporation (AOS): now $0.36 per share quarterly dividend, was $0.34. Agree Realty (ADC): now $0.262 per share monthly dividend, was $0.256. Banner (BANR): now $0.50 per share quarterly dividend, was $0.48. Canadian Apartment Properties Real Estate Investment Trust (CAR.UN:CA): now CAD 0.1292 per share monthly dividend, was CAD 0.1291. Citizens Financial Group (CFG): now $0.46 per share quarterly dividend, was $0.42. DBM … Read more

PepsiCo’s Earnings Stagnate While Organic Revenue Expands

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Image Source: TradingVIew By Brian Nelson, CFA On October 9, PepsiCo (PEP) reported third quarter results that came in better than expected on the top and bottom lines. Net revenue increased 2.6% thanks to a 1.3% increase in organic revenue performance. Earnings per share, however, fell 11%, to $1.90, while core earnings per share of $2.29. Core constant currency earnings per share dropped 2% in the quarter. PepsiCo Goods North America experienced a decline of 3% on an organic basis, while PepsiCo Beverages North America increased 2% organically. Organic revenue in its International Beverages Franchise fell 1%, while organic revenue increased nicely in the EMEA (+5.5%) and Latin America Foods (+4%) divisions. Organic revenue increased 1% in its Asia Pacific … Read more

Delta Air Lines Generates Record September Quarter Revenue

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Image Source: TradingVIew By Brian Nelson, CFA On October 9, Delta Air Lines (DAL) reported excellent third quarter fiscal 2025 results with adjusted revenue and non-GAAP earnings per share exceeding the consensus forecast. Total operating revenue increased 6%, as passenger revenue increased 3% and cargo revenue advanced 19%. Operating income increased 21%, to $1.68 billion, in the quarter. Income before income taxes jumped 14%, while net income increased 11% in the quarter. Diluted earnings per share of $2.17 increased from $1.97 in the year-ago period. Management had the following to say about the quarter: Delta’s competitive advantages and differentiation have never been more evident, and thanks to the hard work of our people, we continue to elevate the customer experience … Read more

Dividend Increases/Decreases for the Week of October 10

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Below we provide a list of firms that raised their dividends during the week ending October 10. 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                          Avient (AVNT): now $0.275 per share quarterly dividend, was $0.270. Lockheed Martin (LMT): now $3.45 per share quarterly dividend, was $3.30. MSC Industrial Direct (MSM): now $0.87 per share quarterly dividend, was $0.85. MV Oil Trust (MVO): now $0.205 per share quarterly dividend, was $0.185. Northwest Natural Holding (NWN): now $0.4925 per share quarterly dividend, was $0.4900. Riley Exploration Permian (REPX): now $0.40 per … Read more

Casey’s General Stores Executing Well

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Image Source: TradingView By Brian Nelson, CFA Casey’s General Stores (CASY) recently reported solid results for the first quarter of fiscal 2026. Revenue advanced 11.5% from the same period a year ago, while diluted earnings per share of $5.77 was up 19.5% from the same quarter last year. EBITDA of $414.3 million was up 19.8% from last year’s period. Inside same-store sales increased 4.3% compared to the prior year, and 6.7% on a two-year stacked basis, with an inside margin of 41.9%. Total inside gross profit increased 14.8%, while total fuel gross profit increased 18.8%. Management had the following to say about the results: Casey’s delivered an excellent first quarter highlighted by strong sales growth both inside and outside the … Read more

Lennar Continues to Navigate Weakness in the Housing Market

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Image Source: TradingView By Brian Nelson, CFA Lennar Corp. (LEN) recently reported third quarter fiscal 2025 results that missed expectations on both the top and bottom lines. Total revenues declined 6.4% as revenues from home sales decreased 9% primarily due to a decline in the average sales price of homes delivered. Deliveries of 21,584 homes were consistent with the prior year, and the company ended the quarter with a backlog of 16,953 homes with a dollar value of $6.6 billion. Management had the following to say about the results: Our third quarter results reflect both the continued pressures of today’s housing market and the consistency of Lennar’s operating strategy. This quarter, we delivered 21,584 homes and recorded 23,004 new orders. … Read more