Author Archives: Stephen Percoco
Hewlett Packard Enterprise (HPE) 23Q3 Update
HPE reported 23Q3 GAAP diluted EPS of $0.35 vs. 22Q2’s $0.31 and my estimate of $0.35. Non-GAAP EPS of $0.49 was a penny above last year and two pennies above my estimate of $0.47. Net revenue of $7.00 billion was … Continue reading
Diversified Healthcare Trust (DHC) 23Q2 Update
23Q2 GAAP loss was $0.30 per share and normalized FFO was $0.05 per share, an improvement over 22Q2’s loss of $0.46 and FFO of -$0.14. The GAAP net loss was higher than the $0.24 loss that I projected, but normalized … Continue reading
New Jersey Resources (NJR) 23Q3 Update
23Q3 GAAP EPS was $0.02 and net financial earnings per share (NFEPS), a non-GAAP measure, was $0.10 per basic share. That compares with 22Q3 GAAP EPS of $0.14 and NFEPS of –$0.04. I had anticipated a GAAP loss of $0.07 … Continue reading
Bluegreen Vacations Holding Corp. (BVH) 23Q2 Update
23Q2 net income attributable to BVH was $21.9 million or $1.07 per diluted share compared with 22Q2’s $17.8 million or $0.87. Revenues grew 10.7% to $260.6 million, and costs and expenses rose 9.0% to $226.1 million. SG&A expenses, a key … Continue reading
Citius Pharmaceuticals (CTXR) 23Q3 Update
Citius Pharmaceuticals (CTXR) posted a 23Q3 loss of $8.5 million or $0.06 per share, $0.01 less than my estimate, mostly because of a $1.1 million decrease in R&D spending associated with all of its clinical programs (except for Halo-Lido, a … Continue reading
Organon & Co. (OGN) 23Q2 Update
23Q2 revenues were $1.61 billion, up 1.5% YOY and up 4% at constant currency. GAAP diluted EPS was $0.95, better than 22Q2’s $0.92 and above my estimate of $0.87. Non-GAAP EPS of $1.31 was higher than last year’s $1.25 and … Continue reading
Mistras Group (MG) 23Q2 Update
Mistras Group reported 23Q2 EPS of $0.01, below 22Q2’s $0.15 and my estimate of $0.18. Revenues of $176.0 million were down 1.7% vs. 22Q2’s $179.0 million and also below my estimate of $186.1 million. The shortfall was attributed to a … Continue reading
Public Service Enterprise Group (PEG) 23Q2 Update
Public Service Enterprise Group (PEG) reported 23Q2 operating revenues of $2.42 billion, up 16.6% from $2.08 billion in 22Q2. PSE&G’s operating revenues were flat at $1.66 billion. PSEG Power & Other’s revenues increased 40% $0.9 billion, due to a large … Continue reading
Merck & Co. (MRK) 23Q2 Update
23Q2 sales increased 4.2% to $14.5 billion, but rose 11% excluding Lagevrio, a COVID-19 medicine. The sales gain ex-Lagevrio was due to sales increases of $1 billion in Keytruda and $800 million in Gardasil.
American Water Works 23Q2 Update
AWK reported 23Q2 EPS of $1.44, up from $1.20 in 22Q2 and my estimate of $1.18. This quarter’s results included a $0.07 benefit from warm, dry weather. Operating revenues increased 17.1% to $1.1 billion. Billed water service volumes increased 3.7%, … Continue reading
Bristol-Myers Squibb (BMY) 23Q2 Update
23Q2 net revenue dipped 5.6% to $11.2 billion, more than expected, mostly on a faster sales decline for Revlimid, which has lost exclusivity. Opdivo sales rose at the slowest YOY pace since the early pandemic. Revenues from newly launched products … Continue reading
GE Healthcare Technologies (GEHC) 23Q2 Update
GEHC reported 23Q2 revenues of $4.82 billion, up 7.4% YOY. Revenues increased 9% organically. Orders were also up 6% organically. Equipment revenues grew 11%; while services rose 1%. The strong growth in equipment augurs well for services revenue growth over … Continue reading
General Electric (GE) 23Q2 Update
GE reported 23Q2 revenues of $16.7 billion, up 18.2% year-over-year; GAAP EPS from continuing operations of $0.91, compared with 22Q2’s $1.09 loss; and non-GAAP EPS of $0.68 vs 22Q2’s $1.14. I had anticipated GAAP EPS of $0.23 per share and … Continue reading
Baker Hughes (BKR) 23Q2 Update
BKR reported 23Q2 GAAP diluted EPS of $0.40 vs. a loss of $0.84 a year ago and my estimate of $0.27. Non-GAAP EPS was $0.39 compared with $0.11 last year and my estimate of $0.33. Revenues of $6.3 billion rose … Continue reading
Initiating Coverage on AT&T (T)
AT&T reported 23Q2 results that slightly exceeded guidance and consensus estimates. The results also raised confidence that the company can achieve its 2023 free cash flow target of $16 billion.
Citius Pharmaceuticals (CTXR) 23Q2 Update Report
Citius Pharmaceuticals (CTXR) posted a 23Q2 loss of $0.07 per share, $0.02 more than I had anticipated, mostly because of higher R&D spending associated with the ongoing clinical trials of Mino-Lok and Halo-Lido and also due to pre-launch and market … Continue reading
Bluegreen Vacations Holding Corp. (BVH) 23Q1 Update
23Q1 net income attributable to shareholders was $11.5 million or $0.71 per diluted share, compared with 22Q1’s $16.0 million or $0.76 per share. Revenues grew 12.3% to $219.1 million, but operating expenses rose 17.4% to $199.2 million, with double-digit increases … Continue reading
GE Healthcare Technologies (GEHC) 23Q1 Update
GEHC reported 23Q1 revenues of $4.71 billion, up 8.4% YOY. Excluding currency, revenue increased 12.4%. Operating income rose 9.8% to $559 million. Incremental interest expense from debt taken on in the spin-off plus an increase in the effective tax rate … Continue reading
Campbell Soup Co. (CPB) 23Q3 Update
Campbell Soup Company (CPB) reported 22Q3 EPS of $0.53 below last year’s $0.62 and my estimate of $0.61. Net sales were $2.23 billion, 4.6% above 22Q3 and in line with my estimate. Diluted Non-GAAP EPS was $0.68, down 3.1% YOY … Continue reading
Hewlett Packard Enterprise (HPE) 23Q2 Update
HPE reported 23Q2 GAAP diluted EPS of $0.32 vs. 22Q2’s $0.19 and my estimate of $0.31. Non-GAAP EPS of $0.52 increased 18% over last year’s figure and my estimate of $0.45. Net revenue of $6.97 billion was up 3.9% over … Continue reading
Toll Brothers (TOL) 23Q2 Update
Toll Brothers’ 23Q2 EPS was $2.85, up 54% from 22Q2’s $1.85 and above my estimate of $1.87. Revenues increased 10.1% to $2.51 billion and exceeded my estimate of $2.17 billion. Deliveries of 2,492 units increased 3.5% exceeding management’s guidance. The … Continue reading
Mistras Group (MG) 23Q1 Update
Mistras Group reported a 23Q1 loss of $0.17, slightly better than 22Q1’s $0.18 loss, but wider than my estimate of a $0.08 loss. Revenues of $168.0 million were 3.9% above 22Q1’s $161.7 million and also above my estimate of $166.0. … Continue reading
New Jersey Resources (NJR) 23Q2 Update
NJR reported 23Q2 GAAP net income of $1.13 per diluted share and net financial earnings (NFE), a non-GAAP measure, of $1.16 per basic share. That compares with 22Q2 GAAP net income of $1.00 per share and NFE per basic share … Continue reading
Organon & Co. 23Q1 Update
23Q1 revenues were $1.538 billion, down 1.9% year-over-year, but up 3% at constant currency. GAAP diluted EPS was $0.69, below 22Q1’s $1.36 and below my estimate of $0.88. Non-GAAP EPS of $1.08 was below last year’s $1.65 and also below … Continue reading
Merck (MRK) 23Q1 Update
23Q1 sales fell 9.8% to $14.5 billion, but rose 13.5% excluding Lagevrio, a COVID-19 medicine whose sales have fallen sharply as the pandemic has receded. The sales gain ex-Lagevrio was due entirely to a $1 billion increase in Keytruda sales … Continue reading
General Electric (GE) 23Q1 Update
GE reported 23Q1 revenues of $14.5 billion, up 14.3% year-over-year; GAAP EPS from continuing operations of $5.61, compared with 22Q1’s $1.17 loss; and non-GAAP EPS of $0.27, reversing 22Q1’s $0.09 loss. I had anticipated a GAAP loss of $0.14 per … Continue reading
Baker Hughes (BKR) 23Q1 Update Report
BKR reported 23Q1 GAAP EPS of $0.57 vs. $0.08 a year ago and my estimate of $0.19. Non-GAAP EPS was $0.28 compared with $0.15 last year and my estimate of $0.29. Revenues of $5.7 billion rose 18.2% vs. 22Q1, 4% … Continue reading
Public Service Enterprise Group (PEG) 23Q1 Update
Public Service Enterprise Group (PEG) reported 23Q1 operating revenues of $3.76 billion, up 62.3% from $2.31 billion in 22Q1. The increase was due to a $1.64 billion surge in net mark-to-market gains on derivatives at PSEG Power, which more than … Continue reading
Citius Pharma (CTXR) Completes $15 Million Direct Registered Offering
Last night, Citius Pharmaceuticals (CTXR) reported that it had completed its 12.5 million share direct offering, issuing 12.5 million shares at $1.20 per share with attached warrants exercisable at $1.50 per share. In total, the offering generated gross proceeds of … Continue reading
Bristol-Myers Squibb (BMY) 23Q1 Update
23Q1 revenues declined 2.7% to $11.3 billion, less than 22Q4’s decline, but were 3% higher than projected. Sales of Eliquis rose 27.3% sequentially and 6.6% YOY to $3.4 billion. Revlimid sales fell 22.6% and 37.4%, respectively, due to patent expiry. … Continue reading
American Water Works (AWK) 23Q1 Update
AWK reported 23Q1 EPS of $0.91, compared with $0.87 in 22Q1 and my estimate of $0.83. Operating revenues increased 11.4% to $938 million. Billed water service volumes increased 0.4%, with gains among industrial and commercial customers more than offsetting a … Continue reading
Hewlett Packard Enterprise (HPE) 23Q1 Update
HPE reported 23Q1 GAAP diluted EPS of $0.38 vs. 22Q1’s $0.39 and my estimate of $0.37. Net revenue of $7.81 billion was up 12.2% over 22Q1’s $6.96 billion and my estimate of $7.33 billion. All of HPE’s business segments recorded … Continue reading
Campbell Soup Company (CPB) 23Q2 Update
Campbell Soup Company (CPB) reported stronger than expected 23Q2 net sales and profits (vs. my estimates). Net sales were $2.49 billion, 12.5% above 22Q1 and 7% above my estimate. Diluted Non-GAAP EPS was $0.80, up 6% YOY and better than … Continue reading
New Jersey Resources (NJR) 23Q1 Update
NJR reported 23Q1 GAAP net income of $1.19 per diluted share and net financial earnings (NFE), a non-GAAP measure, of $1.14 per basic share. That compares with 22Q1 GAAP net income of $1.16 per share and NFE per basic share … Continue reading
Toll Brothers (TOL) 23Q1 Update
Toll Brothers’ 23Q1 EPS was $1.70, up 38% from 22Q1’s $1.24 and above my estimate of $1.37. Revenues decreased 0.6% to $1.78 billion, below my $1.80 billion. Deliveries of 1,826 units fell 5.3%, but topped my estimate. The average sales … Continue reading
Mistras Group (MG) 22Q4 Update
Mistras Group reported 22Q4 EPS of $0.09, above 21Q4’s $0.00 and my estimate of $0.02. Revenues of $168.2 million were 1.7% below 21Q4’s $171.2 million and also below my estimate of $171.4. The results met management’s top line and exceeded … Continue reading
Citius Pharmaceuticals (CTXR) 23Q1 Update
Citius Pharmaceuticals (CTXR) posted a 23Q1 loss of $0.02 per share, better than I had anticipated, mostly because of a $3.6 gain on the sale of net operating loss carryforwards (equivalent to $0.02 per share) from the State of New … Continue reading
Organon & Co (OGN) 22Q4 Update
22Q4 revenues were $1.485 billion, down 7.4% year-over-year, but up 1% at constant currency. GAAP diluted EPS was $0.43, below 21Q4’s $0.80 and below my estimate of $0.54. Non-GAAP EPS of $0.82 was below last year’s $1.18 and a penny … Continue reading
Merck & Co., Inc. 22Q4 Update
22Q4 sales rose 2.2% to $13.8 billion, as a 19.6% gain in KEYTRUDA was mostly offset by declines in Gardasil, Lagevrio and Januvia/Janumet, among others. GAAP diluted EPS declined 21.3% to $1.19 and non-GAAP diluted EPS declined 15.0% to $1.53. … Continue reading
Bristol-Myers Squibb (BMY) 22Q4 Update
22Q4 revenue declined 4.8% to $11.4 billion, more than 22Q3’s decline, mostly because of a drop in Revlimid sales due to patent expiry. GAAP diluted EPS was $0.95, down from $1.07 last year but ahead of my estimate of $0.67, … Continue reading
Housing Market Update – March 2023
Housing market data from the U.S. Commerce Dept. and others show sales and production leveled off and even recovered a bit in the final months of 2022 and first two months of 2023. The seasonally-adjusted annualized rate (SAAR) of single-family … Continue reading
American Water Works (AWK) 22Q4 Update
AWK reported 22Q4 EPS of $0.81, compared with $3.56 in 21Q4 (or $0.86 excluding a $2.70 gain for the sale of the Homeowner Services (HOS) business). Operating revenues decreased 2.1% to $931 million. Besides the sale of HOS, 22Q4’s lower … Continue reading
General Electric (GE) 22Q4 Update
GE announced 22Q4 revenues of $21.8 billion, up 7.3% year-over-year, GAAP EPS of $1.93, compared with 21Q4’s $3.26 loss, and non-GAAP EPS of $1.24, up 52% over 21Q4’s $0.82. I had anticipated a GAAP EPS of $0.38 per share and … Continue reading
GE Healthcare Technologies (GEHC) 22Q4 Update
In its first earnings release since being spun off from General Electric, GEHC reported revenues of $4.9 billion, up 8% YOY (and up 13%, net of acquisitions and currency). Net income from continuing operations was flat at $567 million. GAAP … Continue reading
Baker Hughes (BKR) 22Q4 Update
On Jan. 23, BKR reported 22Q4 GAAP EPS of $0.18 vs. $0.32 a year ago and my estimate of $0.29. Non-GAAP EPS was $0.38 compared with $0.25 last year and my estimate of $0.41. Revenues of $5.9 billion increased 7.7% … Continue reading
Citius (CTXR) at Sidoti
I recently had the opportunity to view a presentation and ask questions of Leonard Mazur at the Sidoti MicroCap Conference on January 18. Mr. Mazur helped fill in some of the gaps in my knowledge about company and its plans … Continue reading
2022 Large Cap Performance Analysis
Large cap stocks, as measured by the Lark Research Large Cap Index (the “Index”)[1] which mirrors the S&P 500, posted a decline of 19.5% in 2022. As in previous years, most of the performance was driven by a handful of … Continue reading
Citius Pharmaceuticals (CTXR) 22Q4 Update
In 2022, Citius Pharmaceuticals completed its Phase 3 trial for I/ONTAK, indicated for the treatment of persistent or recurrent cutaneous T-cell lymphoma (CTCL) and submitted its Biologics Licensing Application to the FDA. It has a PDUFA target date of July … Continue reading
Toll Brothers (TOL) 22Q4 Update
Toll Brothers reported fiscal 22Q4 results that were much stronger than I anticipated. 22Q4 diluted earnings per share were $5.63 up 86% from $3.02 in 21Q4 and better than my estimate of $3.93. Excluding a $140 million (estimated $0.94 per … Continue reading
GE Healthcare Technologies (GEHC)
GE Healthcare Technologies (GEHC) will be spun-off from General Electric Company (GE) on January 4, 2023. Under the terms of the spin-off, GE shareholders will receive one share of GEHC for every three shares of GE that they own. In … Continue reading
Hewlett Packard Enterprise (HPE) 22Q4 Update
HPE reported a 22Q4 GAAP loss of $0.23 per diluted share vs. earnings of $0.31 in 21Q4. My estimate called for earnings of $0.37. All of the shortfall was due to a $905 million ($0.68 per share) goodwill impairment charge … Continue reading
Campbell Soup (CPB) 23Q1 Update
Campbell Soup Company (CPB) reported much stronger than expected 23Q1 net sales and profits (vs. my estimates). Net sales were $2.58 billion, 15% above 22Q1 and 9% above my estimate. Diluted Non-GAAP EPS was $1.02, up 14% YOY and better … Continue reading
November Housing Market Update
Housing market data from the U.S. Commerce Dept. and others show sales and production falling at a rapid rate. The seasonally adjusted annualized rate (SAAR) of single-family housing starts and building permits has fallen for eight consecutive months by about … Continue reading
New Jersey Resources (NJR) 22Q4 Update
NJR reported 22Q4 GAAP net income of $0.56 per diluted share and net financial earnings (NFE), a non-GAAP measure, of $0.50 per basic share. That compares with the 21Q4 GAAP loss of $0.01 per share and NFE per basic share … Continue reading
Mistras Group, Inc. (MG) 22Q3 Update
Mistras Group reported 22Q3 EPS of $0.14, above 21Q3’s $0.11 and my estimate of $0.23. Revenues of $178.5 million were 2.2% above the year earlier period but also below my expectations. My projections were in line with the company’s implied … Continue reading
Bluegreen Vacations Holding Corp. (BVH) 22Q3 Update
22Q3 net income attributable to shareholders was $23.0 million or $1.19 per diluted share, compared with 21Q3’s $23.1 million or $01.06 per share. Revenues grew 17.0% to $250.8 million, but operating expenses rose 19.8% to $152.9 million. The increase in … Continue reading
AlerisLife Inc. (ALR) 22Q3 Update
AlerisLife reported a 22Q3 net loss of $8.5 million or $0.27 per share, better than the 22Q2 loss of $8.8 million or $0.28 per share and the 21Q3 loss of $10.2 million or $0.32 per share. I had estimated a … Continue reading
Diversified Healthcare Trust (DHC) 22Q3 Update
22Q3 GAAP loss was $0.34 per share and normalized FFO was –$0.06 per share, below my forecast of ‑$0.23 and +$0.01, respectively. The Office Portfolio met expectations, but Senior Housing Operating Portfolio (SHOP) results were disappointing as improved occupancy and … Continue reading
Organon & Co. (OGN) 22Q3 Update
22Q3 revenues were $1.537 billion, down 3.9% year-over-year, but up 3% at constant currency. GAAP diluted EPS was $0.92, below 21Q3’s $1.27, but above my estimate of $0.82. Non-GAAP EPS of $1.36 was below last year’s $1.61, but also above … Continue reading
Merck & Co (MRK) 22Q3 Update
22Q3 sales rose 13.7% to $15.0 billion with double-digit gains in KEYTRUDA and GARDASIL/GARDASIL 9. GAAP diluted EPS fell 29.0% to $1.28; but non-GAAP diluted EPS rose 5.6% to $1.85. The company recorded an $887 million ($0.27 per share) asset … Continue reading
American Water Works (AWK) 22Q3 Update
AWK reported 22Q3 EPS of $1.63, up 6.5% from $1.53 in 21Q3 and above my estimate of $1.52. Operating revenues decreased 0.9% to $1.08 billion, as regulatory rate increases were more than offset by lost revenues from the sales of … Continue reading
Public Service Enterprise Group (PEG) 22Q3 Update
Public Service Enterprise Group (PEG) reported 22Q3 operating revenues of $2.27 billion, up 19.4% from 21Q3. The increase in revenues was due mostly to higher gas supply sales to third parties at PEG Power and higher commodity revenues, including higher … Continue reading
Bristol-Myers Squibb (BMY) 22Q3 Update
22Q3 revenue declined 3.5% to $11.2 billion, mostly because of a drop in Revlimid sales due to patent expiry. GAAP EPS increased 8.5% to $0.75, but that was slightly below my estimate of $0.77, due mostly to a higher income … Continue reading
General Electric (GE) 22Q3 Update
GE announced 22Q3 revenues of $19.5 billion, up 0.5% year-over-year, a GAAP loss per share of $0.14, compared with 21Q3’s $0.54 profit, and non-GAAP EPS of $0.35, below 21Q3’s $0.53. I had anticipated a GAAP EPS of $0.44 per share … Continue reading
Baker Hughes (BKR) 22Q3 Update
BKR reported a 22Q3 GAAP net loss of $0.02 per share vs. 21Q3’s profit of $0.01. Non-GAAP adjusted EPS was $0.26 vs. $0.16. I had anticipated 22Q3 GAAP EPS of $0.18 and Non-GAAP EPS of $0.30. BKR’s 22Q3 non-GAAP EPS … Continue reading
Initiating Coverage of New Jersey Resources Corp (NJR)
NJR reported 22Q3 GAAP net income of $0.14 per diluted share and a net financial loss (a non-GAAP measure) of $0.04. That compares with the 21Q3 GAAP loss of $1.16, owing to an impairment charge on its investment in the … Continue reading
September Housing Market Update
The average rate on the 30-year mortgage has risen above 6.00% in response to the latest hike in the Fed Funds target rate. Freddie Mac’s Primary Mortgage Market Survey pegged the average rate at 6.29% this week. The CME’s Fed … Continue reading
Baker Hughes (BKR): Initiating Coverage
Five years after its merger with GE Oil & Gas, Baker Hughes Company (BKR) is adjusting to changes in its market environment, including the fallout from the war in Ukraine, supply chain disruptions, inflation and challenges and opportunities in the … Continue reading
Campbell Soup (CPB) 22Q4 Update
Fiscal 22Q4 net sales of $2.0 billion increased 6.1% YOY. GAAP diluted EPS was $0.32, below 21Q4’s $0.95. Non-GAAP adjusted EPS of $0.56 exceeded 21Q4’s $0.52. These results were generally in line with my expectations.
Hewlett Packard Enterprise (HPE) 22Q3 Update
HPE’s 22Q3 GAAP diluted EPS was $0.31 vs. $0.29 in 21Q3 and better than my estimate of $0.26. Non-GAAP EPS was $0.48, compared with $0.47 last year and my estimate of $0.46. Net revenue of $6.95 billion exceeded 21Q3’s $6.90 … Continue reading
Nice Speech, Mr. Powell, But Please Pay Attention to Housing
The stock market fell 3.3% on Friday, following Fed Chairman Jay Powell’s speech on monetary policy at the Jackson Hole Fed meeting. Mr. Powell affirmed the Federal Reserve’s commitment to bring inflation down, which will probably take some time and … Continue reading
Toll Brothers (TOL) 22Q3 Update
Toll Brothers’ 22Q3 EPS was $2.35, up 25.7% from 21Q3’s $1.87 and above my estimate of $2.22. Revenues increased 10.6% to $2.49 billion, slightly below my projections. Deliveries of 2,414 units fell 7.1%, more than expected, but the average sales … Continue reading
22Q2 Housing Market Update
Despite an accelerating slide in housing sales and production following this year’s rise in mortgage rates, my homebuilder stock price index has performed in line with its benchmarks since April. At current prices, homebuilding stocks trade at less than four … Continue reading
Citius Pharmaceuticals (CTXR) 22Q3 Update
Citius Pharmaceuticals reported a third quarter loss of $8.9 million or $0.06 per share, compared with last year’s loss of $7.3 million or $0.05 per share. As an early stage drug development company, Citius currently generates no revenues. The loss … Continue reading
Diversified Healthcare Trust (DHC) 22Q2 Update
22Q2 GAAP loss was $0.46 per share and normalized FFO -$0.04 per share, below my forecast of -$0.42 and +$0.01, respectively. The Office Portfolio disappointed again, raising concerns about declining occupancy. Senior Housing Operating Portfolio (SHOP) results met expectations.
AlerisLife (ALR) 22Q2 Update
AlerisLife reported a 22Q2 net loss of $8.8 million or $0.28 per share, better than the 22Q1 loss of $9.7 million or $0.31 per share and the 21Q2 loss of $12.3 million or $0.39 per share. I had estimated a … Continue reading
Bluegreen Vacations Holding (BVH) 22Q2 Update
2022 second quarter net income attributable to shareholders was $17.8 million or $0.87 per diluted share, compared with 21Q2’s $19.5 million or $0.93 per share. The decline in EPS occurred despite a 21.8% increase in revenues to $235.6 million.
Mistras Group (MG) 22Q2 Update
Mistras Group reported 22Q2 EPS of $0.15, below 21Q2’s $0.20 and my estimate of $0.18. Revenues of $179.0 million were 0.8% above the year earlier period and also below my expectations. While revenues were essentially flat, gross margin was lower … Continue reading
Organon & Co (OGN) 22Q2 Update
22Q2 revenues of $1.585 billion were flat year-over-year, but up 5% at constant currency. GAAP EPS of $0.92, was below 21Q2’s $1.68 and also below my $1.11 estimate. Non-GAAP EPS of $1.25 was below last year’s $1.72 and also below … Continue reading
Public Service Enterprise Group (PEG) 22Q2 Update
Public Service Enterprise Group (PEG) reported 22Q2 operating revenues of $2.08 billion, up 10.8% from 21Q2. GAAP EPS was $0.26 vs. a loss of $0.35 a year ago. Most of last year’s loss was related to a net $457 million … Continue reading
Merck & Co (MRK) 22Q2 Update
22Q2 sales increased 28% to $14.6 billion, with LAGEVRIO sales of $1.2 billion, a 26% increase in KEYTRUDA sales to $5.3 billion and a 36% increase in GARDASIL/GARDASIL 9 sales to $1.7 billion. GAAP diluted EPS from continuing operations increased … Continue reading
American Water Works (AWK) 22Q2 Update
American Water Works Company (AWK) reported 22Q2 EPS of $1.20, up 5% from $1.14 in 21Q2. Operating revenues decreased 6.2% to $937 million, mostly due to the sale of the Homeowner Services (HOS) and New York American Water (NYAM) businesses, … Continue reading
Bristol-Myers Squibb (BMY) 22Q2 Update
22Q2 revenues were higher, GAAP earnings lower and non-GAAP earnings higher than anticipated. Management reduced its 2022 revenue guidance by $1 million to $46 billion due to foreign currency headwinds. It also lowered its GAAP EPS guidance, but left its … Continue reading
GE 22Q2 Update
General Electric Company (GE) announced 22Q2 revenues of $18.6 billion, up 2.4% year-over-year, a GAAP loss per share of $0.59, two cents worse than 21Q2’s $0.57 loss, and non-GAAP EPS of $0.78, above 21Q2’s $0.22. I had anticipated a GAAP … Continue reading
Hewlett Packard Enterprise Company (HPE) 22Q2 Update
Hewlett Packard Enterprise Company’s performance during the first half of fiscal 2022 was somewhat disappointing, due primarily to the residual disruptions from the pandemic and more recent developments, including the conflict between Russia and Ukraine. Although its order book increased … Continue reading
Bluegreen Vacations Holding Corp. (BVH) 22Q1 Update
2022 first quarter net income from continuing operations attributable to shareholders was $16.0 million or $0.76 per diluted share, compared with 21Q1’s $3.1 million or $0.16 per share. Revenues improved to $195.1 million from $146.4 million.
Citius Announces Its Intention to Spin-Off I/ONTAK
Earlier today, Citius Pharmaceuticals issued a press release announcing its intention to spin-off its late stage oncology candidate, I/ONTAK, to a new, standalone publicly-traded company. In making the announcement, the company said that it believed that the market has not … Continue reading
DHC 22Q1 Update
22Q1 In Line with Expectations. Maintaining Performance Rating and Price Target. 22Q1 GAAP earnings were $1.01 per share and normalized FFO –$0.09 per share, in line with my expectations of $1.04 and –$0.06. Excluding a $327.8 million gain on the … Continue reading
AlerisLife (ALR) 22Q1 Update
22Q1 Loss of $0.30 in Line with Expectations; Katie Potter Steps Down as CEO; ALR Hires Alvarez & Marsal to Conduct a Comprehensive Operational Review AlerisLife reported a 22Q1 net loss of $9.7 million or $0.31 per diluted share, slightly … Continue reading
GE 22Q1 Update
Since reporting disappoint 22Q1 results on April 26, GE’s stock has fallen sharply. Year-to-date, GE’s stock is down 22.6%, worse than the S&P 500 Industrial sector’s 11.7% decline.
Citius Pharma 22Q1 Update
Citius Pharmaceuticals (CXTR) is a specialty pharmaceutical company focused on the development of five potential products: (1) Mino-Lok, an antibiotic lock solution to treat and salvage infected central venous catheters (CVCs) in patients with catheter-related bloodstream infections (CRBSIs); (2) I/ONTAK, … Continue reading
Mistras Group, Inc. (MG) 21Q4 Update
21Q4 Results Below Expectations, Lowering 2022 Estimates, Reducing Rating and Price Target Mistras Group reported 21Q4 EPS of $0.00, slightly worse than 20Q4’s $0.01 and below my estimate of $0.06. Revenues of $171.2 million were 6.5% above the year earlier … Continue reading
Thoughts on the Outlook for Homebuilding Stocks
Homebuilding stocks have had a rough 2022. Year-to-date (through 4/12), my equal-weighted index of 11 publicly-traded U.S. homebuilders has fallen 34.8%. That compares with declines of 7.7% in the S&P 500 and 11.5% in the Russell 2000. Following a three-fold … Continue reading
Going to Neutral on Big Pharma
The stocks of large pharmaceutical companies, including Bristol-Myers Squibb (BMY) and Merck & Co. (MRK), which I follow, have outperformed the market significantly so far this year. The pharmaceuticals sector, as measured by the NYSE Arca Pharmaceuticals Index ($DRG) shows … Continue reading
AlerisLife (ALR) 21Q4 Update
Lowering Estimates and Safety Rating, Withdrawing Performance Rating and Price Target AlerisLife Inc. (ALR), formerly known as Five Star Senior Living, reported a fourth quarter net loss of $10.7 million or $0.34 per share, slightly worse than the third quarter’s … Continue reading
Toll Brothers (TOL) 22Q1 Update
Since my last report on December 9, 2021, Toll’s stock has fallen 26.3%, much more than the S&P Mid-Cap 400’s 2.6% decline. As I noted back then, shares of Toll and other homebuilders were ripe for a correction following their … Continue reading
Merck & Co. (MRK) Update
Establishing 2022 and 2023 Estimates, Maintaining Outperform Rating, Setting $85 Price Target Following the spin-off of Organon, Merck is focused on growing its pharmaceuticals business to offset the looming loss of exclusivity on its $5 billion Januvia/Janumet franchise and others … Continue reading
DHC 21Q4 Update
Lowering Estimates for 2022 and Adding 2023, Lowering Price Target to $5.00 DHC reported 21Q4 normalized FFO of –$0.09 per share, compared with 21Q3’s ‑$0.05 and 20Q4’s +$0.09. Although the Office portfolio posted another solid quarter and the Senior Housing … Continue reading
Bristol-Myers Squibb Update
Raising 2022 Estimate and Adding 2023, Maintaining Outperform Rating and Price Target of $73 Bristol-Myers Squibb Company (BMS) achieved many operational milestones in 2021, advancing its development pipeline through clinical trials, new drug applications and regulatory approvals. At its November … Continue reading
The Drivers of Large Cap Stock Performance in 2021
Estimated Returns by Sectors, Industry Groups and Industries Large cap stocks, as measured by the Lark Research Large Cap index (the “Index”) which currently mirrors the S&P 500, turned in another impressive performance in 2021. The Index posted a price … Continue reading