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Fundamental data is updated weekly, as of the prior weekend. Please download the Full Report and Dividend Report for any changes.
Dec 10, 2024
Oracle’s Remaining Performance Obligations (RPO) Growth Speaks to Accelerated Expansion
Image Source: Oracle. We particularly liked Oracle’s growth in total remaining performance obligations (RPO) in the quarter, which were up 49% in USD and 50% in constant currency year-over-year. During the past twelve months, Oracle’s operating cash flow came in at $20.3 billion, while free cash flow was $9.5 billion. The company ended the quarter with $11.3 billion in cash and marketable securities and $88.6 billion in notes payable and other borrowings. Though Oracle has a hefty net debt position and capital spending is expected to double in fiscal 2025, we still like the company’s cloud opportunity, and it remains a key holding in both the simulated Dividend Growth Newsletter portfolio and simulated ESG Newsletter portfolio.
Dec 8, 2024
Dollar General Hit By Hurricane-Related Expenses
Image Source: Valuentum. Looking to fiscal 2024, Dollar General’s net sales growth is expected in the range of 4.8%-5.1% compared to prior expectations of 4.7%-5.3%. Same-store sales growth for the year is targeted in the range of 1.1%-1.4% compared with prior expectations in the range of 1%-1.6%. Diluted earnings per share for the year is now anticipated in the range of $5.50-$5.90 compared to prior expectations of $5.50-$6.20. For fiscal 2025, Dollar General plans to execute 4,885 real estate projects, including opening roughly 575 new stores in the U.S., up to 15 new stores in Mexico, fully renovating approximately 2,000 stores, remodeling roughly 2,250 stores, and relocating approximately 45 stores. Though its same-store sales growth and store expansion initiatives are noteworthy, Dollar General no longer makes the cut for inclusion in any of the newsletter portfolios.
Dec 8, 2024
Lululemon’s International Business Powers Results, Tweaks 2024 Guidance
Image Source: Lululemon. For fiscal 2024, Lululemon now expects net revenue in the range of $10.452-$10.487 billion (was $10.375-$10.475 billion), representing growth of 9%, or 7% when excluding the extra week in 2024. The outlook was above the consensus forecast of $10.43 billion. Its diluted earnings per share is now expected in the range of $14.08-$14.16 (was $13.95-$14.15 per share) for the year. Thanks in part to strength of its International business, Lululemon’s Power of Three x2, which calls for a doubling of net revenue by 2026 from 2021 levels, to $12.5 billion, remains in the ballpark. The high end of our fair value estimate range stands at $400 per share.
Dec 5, 2024
Foot Locker Talks of a More Promotional Environment, Softening Consumer Spending
Image Source: Foot Locker. Looking to all of 2024, Foot Locker now expects sales growth to be -1.5% to -1% from -1% to +1% previously and comparable store sales growth of 1%-1.5%, down from the prior range of 1%-3%. It also lowered its EBIT margin outlook for the full year 2024 to the range of 2.3%-2.5% from 2.8%-3.2% previously. Non-GAAP earnings per share for the year is now targeted in the range of $1.20-$1.30 from $1.50-$1.70 previously. Given the disappointing outlook, we’re viewing Foot Locker as a put option idea candidate.
Dec 4, 2024
Exxon Mobil’s Permian Assets Performing Well, Structural Cost Reductions on Track
Image Source: Exxon Mobil. We like Exxon Mobil’s strong advantaged volume growth from Guyana and Permian assets, including Pioneer Natural Resources, and we view Exxon Mobil as one of our favorite ideas to gain energy exposure, given its strong dividend track record and excellent free cash flow generation. Exxon Mobil is also aggressively pursuing structural cost savings and is on track to deliver cumulative savings of $15 billion through the end of 2027 versus 2019. Our fair value estimate stands at $126 per share. Exxon Mobil yields 3.4% at the time of this writing.
Dec 4, 2024
Salesforce Posts Mixed Results, Agentforce Capitalizing on AI Demand
Image Source: Salesforce. Looking to full year 2025 guidance, Salesforce raised the low end of its revenue expectations to $37.8-$38 billion, up 8%-9% year-over-year, while it maintained its Subscription & Support revenue growth guidance of approximately 10% in constant currency. The company also raised its full-year GAAP operating margin guidance to 19.8% and its non-GAAP operating margin guidance to 32.9%. Salesforce raised its full year 2025 operating cash flow growth guidance to the range of 24%-26%. Non-GAAP diluted earnings per share is expected in the range of $9.98-$10.03 for the year (midpoint of $10.01), below the consensus estimate of $10.11. Salesforce is a net cash rich, free cash flow generating powerhouse, and the company continues to deliver for shareholders.
Dec 2, 2024
Union Pacific’s Free Cash Flow Generation Remains Robust
Image Source: Union Pacific. Union Pacific ended the third quarter with $947 million in cash and cash equivalents, while total debt stood at $31.4 billion. Year-to-date, cash provided by operating activities increased to $6.7 billion from $6 billion in the same period last year, while capital expenditures fell to $2.5 billion from $2.6 billion in the year-ago period. Year-to-date free cash flow was $4.2 billion, well in excess of cash dividends paid of $2.4 billion over the same time period. Management expects fourth quarter results to be “consistent sequentially from the third quarter, while improving year-over-year versus the fourth quarter 2023.” Shares yield 2.2%. The high end of our fair value estimate range for Union Pacific is $264 per share.
Dec 2, 2024
Verizon Covering Dividends with Free Cash Flow
Image Source: Verizon. Looking to 2024, Verizon expects total wireless service revenue growth in the range of 2%-3.5%, adjusted EBITDA growth of 1%-3% and adjusted earnings per share of $4.50-$4.70. The company’s total unsecured debt at the end of the third quarter was $126.4 billion, a $1.1 billion sequential increase, but a level that is lower compared to the end of the same period last year. Net unsecured debt to consolidated adjusted EBITDA was 2.5 times. Verizon’s Dividend Cushion ratio is weighed down by its massive net debt load, but the dividend is supported by free cash flow. Shares yield 6.1%. Our fair value estimate stands at $44 per share.
Dec 2, 2024
Dick’s Sporting Goods Raises 2024 Guidance
Image Source: Dick’s Sporting Goods. For the 39 weeks ended November 2, 2024, Dick’s Sporting Goods’ cash flow from operations was $680.3 million, while capital spending came in at $565.6 million, resulting in free cash flow of $114.7 million. Looking to all of 2024, management raised its guidance for comparable store sales growth to the range of 3.6%-4.2%, up from 2.5%-3.5% previously. Net sales are targeted at $13.2-$13.3 billion, up from $13.1-$13.2 billion previously. Dick’s Sporting Goods also raised its 2024 earnings per diluted share guidance to the range of $13.65-$13.95, up from $13.55-$13.90 previously. We liked Dick’s Sporting Goods’ quarterly performance and increased full year guidance, and the stock remains a key idea in the Dividend Growth Newsletter portfolio.
Nov 25, 2024
Yum Brands’ Taco Bell Division Remains Its Gem
Image Source: Yum Brands. Yum Brands recently reported third quarter results that came up a bit short relative to the market’s forecast. The owner of KFC, Taco Bell, Pizza Hut, and Habit Burger experienced worldwide system sales growth, excluding foreign currency translation, of 1%, which reflects 5% unit expansion, including 1,029 gross new units in the quarter. Same store sales fell 4% at KFC and Pizza Hut, while they expanded 4% at Taco Bell in the quarter. Unit growth was most prevalent in its KFC Division, where the number of units expanded by 7%. GAAP operating profit and core operating profit advanced 1% and 3% in the quarter, respectively, led by 11% expansion in its Taco Bell division.


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