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Recent Articles
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Philip Morris’ Smoke-Free Portfolio Continues to Deliver
Feb 10, 2025
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Image: Philip Morris' stock has performed well of late.
Looking to 2025, Philip Morris’ reported diluted earnings per share is forecast to be in the range of $6.55-$6.68 versus reported diluted earnings per share of $4.52 in 2024. Excluding amortization of intangibles, adjusted diluted earnings per share is targeted in the range of $7.04-$7.17, reflecting 7.2%-9.1% growth versus adjusted diluted earnings per share of $6.57 in 2024. Also excluding adverse currency impacts, management’s 2025 guidance represents a projected increase of 10.5%-12.5%, to the range of $7.26-$7.39, versus adjusted diluted earnings per share of $6.57 in 2024. For 2025, operating cash flow is expected around $11 billion, while capital spending is expected at approximately $1.5 billion, revealing expected free cash flow of $9.5 billion on the year. We continue to like Philip Morris in the High Yield Dividend Newsletter portfolio.
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Amazon Expects Elevated Capital Spending in 2025
Feb 10, 2025
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Image: Amazon's stock has done quite well in recent months.
Amazon’s operating cash flow increased 36%, to $115.9 billion for the trailing twelve months, while free cash flow for the trailing twelve months was $38.2 billion compared to $36.8 billion for the trailing twelve months ended December 31, 2023. Purchases of propery and equipment were $27.8 billion in the fourth quarter of 2024, up from $14.6 billion in the same quarter last year. Capital spending is expected to be north of $100 billion in 2025. Looking to the first quarter of 2025, Amazon’s net sales are expected to be between $151-$155.5 billion (below the consensus forecast of $158.3 billion), or to grow between 5%-9%, while operating income is expected to be between $14-$18 billion, compared with $15.3 billion in the first quarter of 2024. Cash and marketable securities at the end of the calendar year totaled $101.2 billion, while long-term debt was $52.6 billion. We continue to like Amazon as a holding in the Best Ideas Newsletter portfolio.
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Dividend Increases/Decreases for the Week of February 7
Feb 7, 2025
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Let's take a look at firms raising/lowering their dividends this week.
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Chipotle's Long-term Growth Prospects Are Impressive
Feb 6, 2025
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Image Source: Valuentum.
During the fourth quarter of 2024, Chipotle bought back ~$330 million of stock, and as of the end of last year, the company had $1 billion remaining available under share repurchase authorizations. Looking to 2025, management expects full year comparable restaurant sales growth in the low to mid-single digit range and plans for 315-345 new company-owned restaurant openings with over 80% having a Chipotlane. At the end of 2024, Chipotle had 3,746 total restaurants, and the firm is targeting as many as 7,000 restaurants in North America alone. We like Chipotle’s long-term growth potential, and the firm remains a holding in the Best Ideas Newsletter portfolio.
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