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Recent Articles
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Nvidia Beats Second Quarter Estimates
Aug 28, 2024
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Image: Nvidia’s shares have been on a tear the past year.
On the heels of the strong second quarter fiscal 2025 report, Nvidia approved an additional $50 billion in share buybacks in addition to the $7.5 billion it still has remaining under its share repurchase authorization. Looking out to the third quarter of fiscal 2025, Nvidia expects revenue to be $32.5 billion, plus or minus 2%, while GAAP and non-GAAP gross margins are expected to be 74.4% and 75%, respectively, plus or minus 50 basis points. For the full year, management expects gross margins to be in the mid-70% range, which is a very healthy level of profitability. Our fair value estimate stands at $125 per share.
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The Difference Between Speculation and Investment
Aug 28, 2024
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In this edited video transcript, Brian Nelson, President of Investment Research at Valuentum, discusses the difference between speculation and investment.
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Foot Locker Burns Through Cash During First Half of Full Year 2024
Aug 28, 2024
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Image: Foot Locker’s shares have been quite volatile the past couple years.
Foot Locker reaffirmed its full-year 2024 non-GAAP earnings per share outlook of $1.50-$1.70 per share. For full year 2024, it also reiterated its sales guidance of -1% to 1% growth and comparable sales growth in the range of 1%-3%. For the twenty-six weeks ended August 3, 2024, cash flow from operations was $126 million, while capital spending was $132 million, resulting in a cash burn. Though Foot Locker has returned to top line growth, we’re not at all interested in shares given its cash-flow performance.
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Ralph Lauren’s Dividend Is Quite Healthy
Aug 27, 2024
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Image: Ralph Lauren’s shares have done quite well since the beginning of 2022.
For fiscal 2025, Ralph Lauren expects revenues to increase in the low-single digits on a constant currency basis, while it continues to expect its operating margin to increase 100-120 basis points in constant currency thanks to gross margin improvement and operating expense leverage. All told, we liked Ralph Lauren’s fiscal first quarter results and we’re particularly fans of its ability to drive strong free cash flow in excess of cash dividends paid. Our fair value estimate stands at $184 per share with the firm sporting a lofty Dividend Cushion ratio of 4.4.
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