Member Articles

Philip Morris Hits Record High!

by

Image Source: TradingView By Brian Nelson, CFA On April 23, Philip Morris (PM) reported excellent first quarter results with revenue and non-GAAP earnings per share coming in higher than the consensus forecasts. Total net revenues advanced to $9.3 billion, which was up 5.8% on a reported basis and 10.2% on an organic basis. Gross profit increased to $6.3 billion, up 11.8% on a reported basis and 16% on an organic basis. Operating income increased to $3.5 billion, up 16.4% on a reported basis and 16% organically. Adjusted diluted earnings per share increased 12.7%, to $1.69, in the quarter. Management was optimistic in the earnings report: We achieved exceptionally strong performance in the first quarter, with continued volume growth supporting an … Read more

Tesla’s Revenue Falls in First Quarter, Pulls 2025 Outlook

by

Image Source: Tesla By Brian Nelson, CFA On April 22, Tesla (TSLA) reported dismal first quarter results with revenue and non-GAAP earnings per share coming in below expectations. Total revenue fell 9% in the period, as total automotive revenues dropped 20%, while energy generation and storage revenue increased 67%. Services and other revenue increased 15%. Income from operations fell 66%, while adjusted EBITDA slid 17%. Adjusted EBITDA fell 17% in the quarter on a year-over-year basis. Management spoke of uncertainty in the quarterly update: In Q1, we accomplished an industry first: simultaneously changing over production lines across all factories for the world’s best-selling vehicle4 – the Model Y. The Tesla team successfully ramped our production lines across four factories while … Read more

Verizon’s Dividend Is Nice But Its Debt Keeps Us on the Sidelines

by

Image Source: TradingView By Brian Nelson, CFA On April 22, Verizon (VZ) reported mixed first quarter results that showed revenue and non-GAAP earnings per share exceeding the consensus forecast, but total postpaid phone net losses coming in at 289,000 in the period. Total operating revenue increased 1.5% in the quarter year-over-year, while adjusted earnings per share excluding special items advanced to $1.19 compared to $1.15 in the first quarter of 2024. Cash flow from operations totaled $7.8 billion, up from $7.1 billion in last year’s quarter, while free cash flow came in at $3.6 billion, up from $2.7 billion in the first-quarter 2024. Management had the following to say about the quarter: Verizon plays an essential role in our customers’ … Read more

Lockheed Martin Reaffirms 2025 Outlook

by

Image: Lockheed Martin’s shares have been on a wild ride the past few years. By Brian Nelson, CFA On April 22, Lockheed Martin (LMT) reported better than expected first quarter results with revenue and GAAP earnings per share exceeding the consensus forecast. Sales increased 4%, while net earnings came in at $1.7 billion, or $7.28 per share, compared to $1.5 billion, or $6.39 per share, in the same period a year ago. Cash flow from operations came in at $1.4 billion compared to $1.6 billion in last year’s quarter, while free cash flow dipped to $955 million from $1.3 billion in the year-ago period. Management was optimistic in the press release: The momentum we created last year continued into the … Read more

Netflix’s Operating Margin Continues to Delight

by

Image: Netflix has a long runway of growth given market share opportunities. By Brian Nelson, CFA On April 17, Netflix (NFLX) reported strong first quarter results with revenue and GAAP earnings coming in ahead of the consensus estimates. Revenue and operating income advanced 12.5% (16% on a foreign exchange neutral basis) and 27.1% on a year-over-year basis, respectively. Netflix’s operating margin increased to 31.7% from 28.1% in the year-ago period, while net income leapt to $2.89 billion from $2.33 billion in last year’s quarter. Diluted earnings per share increased 25.2% to $6.61 from $5.28 in the same period last year. Netflix’s performance was in part propelled by membership growth and higher pricing. Management continues to execute on its 2025 priorities: … Read more

Dividend Increases/Decreases for the Week of April 18

by

Below we provide a list of firms that raised their dividends during the week ending April 18. 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                          ASML (ASML): now $1.92 per share quarterly dividend, was $1.57. Bar Harbor Bankshares (BHB): now $0.32 per share quarterly dividend, was $0.30. Choice Properties Real Estate Investment Trust (CHP.UN:CA): now CAD 0.0642 per share monthly dividend, was CAD 0.0641. Coca-Cola FEMSA (KOF): now $0.8830 per share quarterly dividend, was $0.7811. Companhia Paranaense de Energia – COPEL (ELPC): now $0.1172 per share quarterly dividend, was … Read more

Key Comments from the Banks This Earnings Season

by

Image: The big banks have done well recently. By Valuentum Analysts JP Morgan’s (JPM) CEO Jamie Dimon: “The Firm reported strong underlying business and financial results in the first quarter, producing net income of $14.6 billion.” “In the CIB, Investment Banking fees rose 12% in the first quarter, although clients have become more cautious amid an increase in market volatility driven by geopolitical and trade-related tensions. Meanwhile, we saw increased activity in the Markets business. Markets revenue rose to $9.7 billion, an exceptionally strong quarter with record revenue in Equities. In CCB, the franchise continued to acquire new customers at a robust pace, opening 500,000 net new checking accounts and adding record first-time investors in wealth management. Finally, AWM had … Read more

UnitedHealth Group Lowers 2025 Outlook

by

Image: UnitedHealth’s shares were pummeled after it lowered its 2025 earnings outlook. By Brian Nelson, CFA UnitedHealth Group (UNH) reported dismal first-quarter 2025 results that came in lower than expected on both the top and bottom lines. Revenues of $109.6 billion grew $9.1 billion year-over-year, while first quarter earnings were $6.95 per share, with adjusted earnings coming in at $7.20 per share. Management shared its disappointment in the commentary in the press release: UnitedHealth Group grew to serve more people more comprehensively but did not perform up to our expectations, and we are aggressively addressing those challenges to position us well for the years ahead, and return to our long-term earnings growth rate target of 13 to 16%. UnitedHealth Group … Read more

Dividend Increases/Decreases for the Week of April 11

by

Below we provide a list of firms that raised their dividends during the week ending April 11. 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                          ADF Group (DRX:CA): now CAD 0.02 per share semi-annual dividend, was CAD 0.01. Aerovate Therapeutics (AVTE): now $2.40 per share special dividend. Agree Realty (ADC): now $0.256 per share monthly dividend, was $0.253. Alcon (ALC): now CHF 0.28 per share dividend. Aon (AON): now $0.745 per share quarterly dividend, was $0.675. Bank of America Corporation 4.750% DP PFD SS (BAC.PR.S): now $0.2970 per share … Read more

Trump Tariffs Higher than Expected; What We’re Doing

by

By Brian Nelson, CFA The Trump tariff increases came in larger than what we were expecting, and it remains to be seen how they will flow through the global economy, as we monitor potential retaliatory tariffs from other countries. As it relates to the equity markets, we’re taking a wait and see approach at the moment as we monitor new policy changes related to trade, immigration, fiscal (tax), and regulations. In short, we’re not overreacting to the sell off as we won’t have a great handle on the tariff impact to companies for a few quarters when they report results post-tariff increases. That said, we’re expecting continued market volatility, with meaningful risk to the downside, before trade uncertainty alleviates in … Read more