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Recent Articles
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Boeing to Acquire Spirit AeroSystems
Jul 1, 2024
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Image: Boeing’s shares have traded sideways the past few years as it works to fix safety issues.
Boeing benefits from its global oligopoly with Airbus, but the company is in a world of hurt at the moment. Looking at its first-quarter results shows a sizable core non-GAAP net loss per share, operating cash flow burn of $3.4 billion, as well as free cash flow burn of $3.9 billion. We think the near term will continue to be difficult for Boeing as it struggles to right the ship, but a more bullish take will point to its total company backlog of $539 billion, which includes 5,600+ commercial airplanes, as one reason to be optimistic. To us, however, Boeing continues to be a show-me story, and we remain on the sidelines with respect to shares.
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Nike’s Revenue Under Pressure
Jun 28, 2024
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Image: Nike’s shares have languished of late, and a comeback will take some time.
Nike retains one of the strongest brand names across our coverage universe, and customer loyalty remains a key attribute to a bull case for shares. However, the company’s fiscal 2025 will be challenging, with considerable weakness during the first quarter of fiscal 2025. We like Nike’s business model, but we remain on the sidelines as we adjust our valuation model to reflect the lower-than-expected fiscal 2025 performance.
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Dividend Increases/Decreases for the Week of June 28
Jun 28, 2024
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Let's take a look at firms raising/lowering their dividends this week.
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Shares of Walgreens Boots Alliance Collapse
Jun 27, 2024
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Image: Walgreens’ shares have been under constant pressure for some time now.
On June 27, Walgreens Boots Alliance reported mixed third quarter results for fiscal 2024. Though net cash provided by operating activities and free cash flow improved in the fiscal third quarter, the better cash management was overshadowed by lowered guidance. The company lowered its fiscal 2024 adjusted earnings per share guidance to the range of $2.80-$2.95 “reflecting challenging pharmacy industry trends and a worse-than-expected U.S. consumer environment.” Consensus had been looking for $3.22 per share in adjusted earnings for the fiscal year. We’re not interested in Walgreens at all and think the worst may still be ahead for the company. Shares yield ~8.5% at the time of this writing.
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