|
|
Recent Articles
-
Alphabet’s Free Cash Flow Faces Pressure in Second Quarter
Jul 24, 2024
-
Image: Alphabet’s shares have performed well so far in 2024.
Alphabet reported solid second quarter results with strong performance across its operating segments. In the quarter, Google Cloud revenue came in better than expectations, while YouTube ads missed only slightly. Alphabet now pays a dividend, and it continues to aggressively buy back stock. The company’s free cash flow faced pressure in the quarter due to investments to drive innovation, and while this may pressure ROICs in the coming periods, we still like Alphabet as an idea in the Best Ideas Newsletter portfolio.
-
Coca-Cola’s Organic Growth Surprises to the Upside
Jul 23, 2024
-
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.
-
Lockheed Martin Issues Strong Second Quarter Results, Raises Outlook
Jul 23, 2024
-
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.
-
Philip Morris Puts Up Excellent Second Quarter Results, Raises 2024 Guidance
Jul 23, 2024
-
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.
|
