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Recent Articles
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Coca-Cola’s Organic Growth Surprises to the Upside
Jul 23, 2024
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Image: Coca-Cola’s shares are trading near all-time highs.
Coca-Cola reported solid second quarter results on July 23, with net revenues up 3% and organic non-GAAP revenues advancing an impressive and better-than-expected 15% thanks to a 9% increase in price/mix and 6% growth in concentrate sales. Looking to the full year 2024, Coca-Cola expects to generate organic non-GAAP revenue growth in the range of 9%-10%. For 2024, management is targeting comparable non-GAAP earnings per share growth of 5%-6% relative to $2.69 per share in 2023, while it expects to deliver comparable currency-neutral non-GAAP earnings per share growth of 13%-15% on the year. Free cash flow is expected to be $9.2 billion for the year. Shares of Coca-Cola yield 3% at the time of this writing.
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Lockheed Martin Issues Strong Second Quarter Results, Raises Outlook
Jul 23, 2024
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Image: Lockheed Martin’s shares have recovered nicely since their October 2023 bottom.
Performance across Lockheed Martin’s Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space divisions continue to move in the right direction, with all four segments showcasing improved revenue and operating profit performance during the second quarter and for the first half of the year. We like that Lockheed Martin’s free cash flow covers its dividend nicely, and while the company has a net debt position, we’re not worried about the company meeting its obligations. We continue to like Lockheed Martin as a dividend growth idea, with shares yielding ~2.6% at the time of this writing.
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Philip Morris Puts Up Excellent Second Quarter Results, Raises 2024 Guidance
Jul 23, 2024
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Image: Philip Morris’ stock has done quite well over the past few months.
Philip Morris put up excellent second quarter results showcasing strong organic performance across key financial measures. The company continues to have traction with its nicotine pouch product ZYN, with impressive growth rates attained despite supply constraints. The company raised its 2024 guidance for revenue, adjusted operating income and adjusted earnings, and we continue to like the firm’s transition to becoming a smoke-free company. Shares of Philip Morris yield 4.9% at the time of this writing.
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Verizon’s First Half 2024 Operating Cash Flow Declines, Adjusted Earnings Fall
Jul 22, 2024
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Image Source: Verizon.
On July 22, Verizon reported mixed second-quarter results with revenue missing the consensus expectation but non-GAAP earnings per share coming in line. Earnings per share, excluding special items, was $1.15 in the quarter, worse than the $1.21 mark in the second quarter a year ago. Cash flow from operations during the first half of 2024 was $16.6 billion, down from $18 billion in the same period a year ago. Free cash flow did improve to $8.5 billion in the first half of 2024 versus $8 billion in the first half of last year, but the improvement came in the form of lower capital expenditures, which were $8.1 billion in the first half versus $10.1 billion in the same period a year ago. Dividends paid for the first half of 2024 totaled $5.6 billion, so Verizon is doing a good job covering dividends with free cash flow, despite pressure on operating cash flow. Verizon ended the quarter with total debt of $149.3 billion and an unsecured debt to consolidated adjusted EBITDA ratio of 2.5x. Shares of Verizon yield ~6.4% at the time of this writing.
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