Member Articles

Lockheed Martin’s Earnings Impacted by Classified Program Losses

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Image Source: Lockheed Martin By Brian Nelson, CFA On January 28, Lockheed Martin (LMT) reported lower than expected fourth quarter results with revenue and GAAP earnings per share missing the consensus forecasts. Quarterly revenue dropped 1.3%, while net earnings for the fourth quarter came in at $527 million, or $2.22 per share, a level that includes $1.7 billion of charges for classified programs in its Aeronautics and Missiles and Fire Control (MFC) business segments. Net earnings were $1.9 billion, or $7.58 per share in the fourth quarter of 2023. Cash flow from operations was $1.0 billion in the fourth quarter of 2024, after a pension contribution of $990 million, compared to $2.4 billion in the fourth quarter of 2023. Free … Read more

NextEra Energy Reaffirms Earnings Outlook for Next Couple Years

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Image Source: NextEra Energy By Brian Nelson, CFA On January 24, NextEra Energy (NEE) reported mixed fourth quarter results with revenue missing the consensus forecast, but non-GAAP earnings per share coming in line. For the fourth quarter, net income attributable to NextEra Energy came in at $1.203 billion, or $0.58 per share, compared to $1.21 billion, or $0.59 per share, for the fourth quarter of 2023. On an adjusted basis, NextEra reported fourth-quarter earnings of $1.095 billion, or $0.53 per share, compared to $1.067 billion, or $0.52 per share, in the same period last year. Management had a lot to say about the quarter: NextEra Energy had an excellent year of execution in 2024, growing full-year adjusted earnings per share … Read more

Johnson & Johnson Issues Fourth Quarter Results

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Image Source: J&J By Brian Nelson, CFA On January 22, Johnson & Johnson (JNJ) reported better than expected fourth quarter results with both revenue and non-GAAP earnings per share exceeding the consensus forecasts. Fourth quarter sales growth came in at 5.3%, with operational growth of 6.7% and adjusted operational growth of 5.7%. Fourth quarter earnings per share came in at $1.41, while adjusted earnings per share came in at $2.04, both measures impacted by IPR&D charges related to the V-Wave acquisition. Adjusted diluted earnings per share was down 10.9% from the prior year period. Management had the following to say about the quarter: 2024 was a transformative year for Johnson & Johnson, marked by strong growth, an accelerating pipeline and industry-leading … Read more

Procter & Gamble on Track to Deliver on Fiscal Year Guidance

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Image Source: Procter & Gamble By Brian Nelson, CFA Procter & Gamble (PG) reported better than expected second quarter results for fiscal 2025 on January 22, with revenue and non-GAAP earnings per share coming in ahead of the consensus forecasts. Net sales increased 2% in the quarter, while organic sales, which excludes M&A and foreign exchange impacts, advanced 3%. Organic sales growth was led by its “Baby, Feminine, and Family Care” unit, where organic sales increased 4%. Organic sales growth in its “Beauty” and “Grooming” segments was 2%, while organic sales in its “Health Care” and “Fabric & Home Care” divisions increased 3%. Core earnings per share were $1.88, an increase of 2% compared to the year-ago period. Management had … Read more

Kinder Morgan Is Now Covering Cash Dividends Paid with Free Cash Flow

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Image: Kinder Morgan’s shares have been on a tear after the midstream energy giant reports healthier free cash flow that covers cash dividends paid. By Brian Nelson, CFA On January 22, Kinder Morgan (KMI) reported fourth quarter results that missed the consensus forecast for both the top and bottom lines. Adjusted EBITDA in the quarter of $2.1 billion was 7% higher on a year-over-year basis, while net income attributable to Kinder Morgan came in at $667 million, up from $594 million in the year-ago period. Adjusted earnings per share was $0.32 in the quarter, up 14% compared to the fourth quarter of 2023. The company approved a cash dividend of $0.2875 per share for the fourth quarter, which is a … Read more

Netflix Records Biggest Quarter of Net Adds in Its History

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Image Source: Netflix By Brian Nelson, CFA On January 21, Netflix (NFLX) reported better than expected fourth quarter results with revenue and GAAP earnings per share coming in ahead of the consensus forecasts. In the quarter, revenue advanced 16% on a year-over-year basis (19% on a foreign exchange neutral basis), while the firm leveraged that top-line growth into a 52% increase in operating income. Its operating margin expanded 5 percentage points to 22% in the quarter. Diluted earnings per share came in at $4.27 versus $2.11 in last year’s period. Netflix added 19 million global streaming paid memberships in the quarter, the biggest quarter of net adds in its history, and finished 2024 with 302 million memberships. Netflix continues to … Read more

UnitedHealth Group’s 2025 Outlook Remains Robust

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Image: UnitedHealth Group’s shares have been choppy the past couple years. By Brian Nelson, CFA UnitedHealth Group (UNH) reported mixed fourth quarter results on January 16 with revenue coming in a bit light of consensus and non-GAAP earnings per share beating what the Street was looking for. UnitedHealth Group’s 2024 revenues grew 8% year-over-year to $400.3 billion, while full year 2024 earnings from operations came in at $32.3 billion. Adjusted earnings from operations of $34.4 billion exclude cyberattack direct response costs and South American impacts. The company’s full year medical care ratio was 85.5% compared to 83.2% in 2023. The higher medical care ratio was due to revenue effects of CMS’s Medicare funding restrictions, member mix, and the timing of … Read more

Dividend Increases/Decreases for the Week of January 17

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Below we provide a list of firms that raised their dividends during the week ending January 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                          Abbvie (ABBV): now $1.64 per share quarterly dividend, was $1.55. Algoma Central (ALC:CA): now CAD 0.20 per share quarterly dividend, was CAD 0.19. Alpine Banks of Colorado (ALPIB): now $0.21 per share quarterly dividend, was $0.20. Autoscope Technologies (AATC): now $1.05 per share special dividend, was $0.15. BSR Real Estate Investment Trust (HOM.U:CA): now CAD 0.0468 per share monthly dividend, was CAD 0.0467. CI … Read more

Taiwan Semiconductor’s Results Showcase Strong Growth

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Image Source: TSM By Brian Nelson, CFA Taiwan Semiconductor (TSM) reported better than expected fourth quarter results January 16, with revenue and GAAP earnings per share coming in above the consensus forecast. The company reported consolidated revenue of NT$868.46 billion, net income of NT$374.68 billion, and diluted earnings per share of NT$14.45 (US$2.24 per ADR unit) in the fourth quarter of 2024. On a year-over-year basis, fourth quarter revenue increased 38.8%, while net income and diluted earnings per share both increased 57%. In U.S. dollars, fourth quarter revenue was $26.88 billion, up 37% on a year-over-year basis and at the high end of management’s guidance. TSM’s foundry operations continue to put up elevated levels of profitability. Gross margin for the … Read more

Bank Earnings Roundup: C, WFC, GS, JPM

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Image Source: Hakan Dahlstrom By Brian Nelson, CFA Citigroup Authorizes New $20 Billion Buyback Program On January 15, Citigroup (C) reported better than expected fourth quarter results with revenue and GAAP earnings per share coming in higher than the consensus forecast. Revenue increased 12% from the prior year, to $19.6 billion, while net income for the fourth quarter of 2024 came in at $2.9 billion, or $1.34 per diluted share. Its CET1 Capital ratio was 13.6% at the end of the period versus 13.7% at the end of the prior quarter last year. Citigroup’s book value per share came in at $101.62 at the end of the quarter, increasing 3% versus the prior-year period, while tangible book value per share was … Read more