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Clorox Faces Cash Flow Headwinds in Fiscal 1Q

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Our general takeaway after surveying calendar third-quarter results from peers Hershey (HSY), Colgate-Palmolive (CL), and Unilever (UN) was that performance in the consumer staples space was mostly positive during the third quarter and that emerging-market performance remains robust (even though Unilever toned down expectations a bit). Clorox’s (CLX) better-than-expected fiscal first-quarter results, released Thursday, did not deviate from the mostly positive newsflow. Sales expanded 2% (3.5% excluding the negative impact from currency), and the company recorded pretax profit growth of 7%. Volume for the fiscal first quarter advanced 1% thanks to gains from Professional Products, Charcoal, Laundry and Burt’s Bees offset by declines in Home Care. Gross margins were flat as cost savings and price increases mitigated higher manufacturing and logistics … Read more

Procter & Gamble’s Fourth Quarter Reveals Lafley’s Strategy

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Thursday morning, consumer products producer Procter & Gamble (click ticker for report: ) reported strong fourth quarter results. Revenue increased 2% (+4% excluding currency) year-over-year to $20.7 billion, exceeding consensus expectations. Core earnings per share fell 4% year-over-year to $0.79, which was still better than consensus estimates. For the full-year, the firm posted core earnings per share of $4.05 (up 5% year-over-year) and revenue of $84.2 billion (up 1% year-over-year). Free cash flow totaled $10.8 billion for fiscal year 2013, equal to 13% of total revenue and 17% higher than fiscal year 2012. Though fourth quarter results were decent, performance was not the most relevant story for P&G. New (and old) CEO A.G. Lafley took time to reveal his new strategy … Read more

Meet the New Boss; Same as the Old Boss

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Any time a major company completes a management change, a new business strategy or changes in operations tend to follow. After undergoing an aggressive cost-cutting campaign during the past year, Procter & Gamble (click ticker for report: ) CEO and Chairman Bob McDonald seemed secure in his job. Thus, we were shocked to see McDonald announce his retirement, and even more surprised to see that his replacement would be the man he replaced, A.G. Lafley. Other than JC Penney rehiring Mike Ullman, we haven’t seen many companies bring back the old CEO, unless he or she was the founder. Recent examples like Phil Knight, Howard Schulze, Michael Dell, and Steve Jobs were all founders that were passionate about returning their … Read more

Procter & Gamble’s Third Quarter Stalls

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After picking up momentum in the second quarter and raising its dividend in recent weeks, consumer products giant Procter & Gamble (click ticker for report: ) announced mediocre results. Revenue grew only 2% year-over-year to $20.6 billion, falling below consensus estimates. Earnings were slightly stronger than consensus expectations, with core earnings per share increasing 5% year-over-year to $0.99. The firm also announced it will increase its share buyback program to $6 billion—near the high end of the previously announced range. Core gross margins expanded 20 basis points year-over-year to 50% as initiatives in manufacturing and productivity yielded positive results. We’d like to see the firm push this number a bit higher, but it seems its price increases have been offset … Read more

Firms Raising Their Dividends In The Week Ending April 19

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Quite a few firms raised their dividends during the week ending April 19. Firms Raising Their Dividends This Week: Allison Transmission Holdings (ALSN): now $0.12 per share quarterly dividend, was $0.06. A.O. Smith (AOS): now $0.24 per share quarterly dividend, was $0.20. Cardinal Financial (CFNL): now $0.06 per share quarterly dividend, was $0.05. CSX (CSX): now $0.15 per share quarterly dividend, was $0.14. Discover Financial Services (DFS): now $0.20 per share quarterly dividend, was $0.14. Donegal Group (DGICA): now $0.1275 per share quarterly dividend, was $0.1225. El Paso Pipeline Partners (EPB): now $0.62 per share quarterly dividend, was $0.61. First Republic Bank (FRC): now $0.12 per share quarterly dividend, was $0.10. Kinder Morgan (KMI): now $0.38 per share quarterly dividend, … Read more

Procter & Gamble Raises Its Dividend

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Dividend Growth Newsletter portfolio holding Procter & Gamble (click ticker for report: ) boosted its dividend 7% sequentially to $0.6015 per share on a quarterly basis. We believe the firm’s dividend growth will continue.

P&G Delivers Fantastic Results

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After sputtering along for the past few years, consumer product giant Procter & Gamble (click ticker for report: ) has returned to solid growth, reporting strong second-quarter results for its 2013 fiscal year Friday. Revenue rose 3% year-over-year to $22.2 billion, handily beating consensus expectations. Earnings growth was also fantastic, with core earnings per share jumping 12% compared to the year-ago period to $1.22, a stark advance from its prior lackluster growth (Image Source: P&G Earnings Presentation). The firm’s gross margin in the quarter expanded 80 basis points year-over-year to 50.9% as the company benefits from relatively flat cost inflation and incremental price increases. SG&A grew about 2% year-over-year, but the cost item remained flat as a percentage of sales. … Read more

Fiscal Cliff Averted; Aerospace Rallying

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After a volatile December, two of our favorite aerospace names, Astronics (click ticker for report: ) and EDAC Technologies (click ticker for report: ), are rallying significantly after a deal was finally reached to avert the fiscal cliff. Precision Castparts (click ticker for report: ), which had steadily moved higher during the fiscal-cliff ordeal thanks to optimism surrounding its planned acquisition of Titanium Metals (TIE), is also seeing strength today. We assumed both profit taking and overblown fears of defense cuts were the culprit behind the increased volatility, and it seems as though that could be the case. We continue to see substantial upside at these firms thanks to the massive, multi-year commercial aerospace backlogs of the large airframe makers. Our Best Ideas portfolio … Read more

The Valuentum Dividend100 Publication; A Must-Have For Any Income Investor

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Dividend investors literally have thousands of income stocks to choose from. So what are they to do, and where can they go for the most trusted forward-looking opinions on dividend growth and safety? That’s the question we seek to answer with our ValuentumDividend100 publication. In this document, we showcase the top 100 high-quality, dividend growth gems within our coverage universe. Whether you’re looking to build a portfolio consisting of high-yielding, dividend-growers or simply seeking to augment it with a few income gems, the Valuentum Dividend100 is an essential resource for any income investor. We outline some of the key components of our Dividend100 publication below, and explain how you can get the most from each of one Sign Up for … Read more

Dividend Growth Portfolio Modeling Made Easy!

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Empowering Dividend Growth Investors Do you or your clients have a dividend growth portfolio? If so, this model is indispensable. It’s the best tool out there to account for the quarterly reinvestment of growing dividends after adjusting for future equity price growth in a portfolio setting. This model will allow you to better plan for your and your clients’ retirement needs and has unmatched functionality. Plus, this tool has easy-to-follow instructions and is customized to provide deliverable print outs for you or your clients. Your firm’s logo can be added, too. To purchase Valuentum’s Dividend Growth Retirement Portfolio Model (Calculator), please click here! The model, built by Brian Nelson, CFA, sets out to do much more than what other simple dividend … Read more