Author Archives: Stephen Percoco

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

Posted in Health Care, MRK | Tagged , | Comments Off on Merck (MRK) 23Q1 Update

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

Posted in GE, Industrials | Tagged , | Comments Off on General Electric (GE) 23Q1 Update

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

Posted in BKR, Energy | Tagged , | Comments Off on Baker Hughes (BKR) 23Q1 Update Report

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

Posted in PEG, Utilities | Tagged | Comments Off on Public Service Enterprise Group (PEG) 23Q1 Update

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

Posted in CTXR, Health Care | Tagged | Comments Off on Citius Pharma (CTXR) Completes $15 Million Direct Registered Offering

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

Posted in BMY, Health Care | Tagged | Comments Off on Bristol-Myers Squibb (BMY) 23Q1 Update

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

Posted in AWK, Utilities | Tagged , | Comments Off on American Water Works (AWK) 23Q1 Update

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

Posted in HPE, Technology | Tagged | Comments Off on Hewlett Packard Enterprise (HPE) 23Q1 Update

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

Posted in Consumer Staples, CPB | Tagged , | Comments Off on Campbell Soup Company (CPB) 23Q2 Update

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

Posted in NJR, Utilities | Tagged , | Comments Off on New Jersey Resources (NJR) 23Q1 Update

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

Posted in Consumer Discretionary, Housing, TOL | Tagged | Comments Off on Toll Brothers (TOL) 23Q1 Update

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

Posted in Industrials, MG | Tagged | Comments Off on Mistras Group (MG) 22Q4 Update

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

Posted in CTXR, Health Care | Tagged | Comments Off on Citius Pharmaceuticals (CTXR) 23Q1 Update

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

Posted in Health Care, OGN | Tagged , | Comments Off on Organon & Co (OGN) 22Q4 Update

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

Posted in Health Care, MRK | Tagged , | Comments Off on Merck & Co., Inc. 22Q4 Update

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

Posted in BMY, Health Care | Tagged | Comments Off on Bristol-Myers Squibb (BMY) 22Q4 Update

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

Posted in Consumer Discretionary, Housing, Market Commentary, TOL | Tagged , | Comments Off on Housing Market Update – March 2023

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

Posted in AWK, Utilities | Tagged , | Comments Off on American Water Works (AWK) 22Q4 Update

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

Posted in GE, Industrials | Tagged | Comments Off on General Electric (GE) 22Q4 Update

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

Posted in GEHC, Health Care | Tagged , | Comments Off on GE Healthcare Technologies (GEHC) 22Q4 Update

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

Posted in BKR, Energy | Tagged , | Comments Off on Baker Hughes (BKR) 22Q4 Update

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

Posted in CTXR, Health Care | Tagged | Comments Off on Citius (CTXR) at Sidoti

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

Posted in Communication Services, Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care, Industrials, Materials, Real Estate, Sectors, Technology, Utilities | Tagged | Comments Off on 2022 Large Cap Performance Analysis

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

Posted in CTXR, Health Care | Tagged | Comments Off on Citius Pharmaceuticals (CTXR) 22Q4 Update

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

Posted in Consumer Discretionary, Housing, TOL | Tagged | Comments Off on Toll Brothers (TOL) 22Q4 Update

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

Posted in GE, GEHC, Health Care | Tagged , , , | Comments Off on GE Healthcare Technologies (GEHC)

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

Posted in HPE, Technology | Tagged | Comments Off on Hewlett Packard Enterprise (HPE) 22Q4 Update

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

Posted in Consumer Staples, CPB | Tagged , | Comments Off on Campbell Soup (CPB) 23Q1 Update

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

Posted in Consumer Discretionary, Housing, TOL | Tagged , , | Comments Off on November Housing Market Update

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

Posted in NJR, Utilities | Tagged , | Comments Off on New Jersey Resources (NJR) 22Q4 Update

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

Posted in Industrials, MG | Tagged | Comments Off on Mistras Group, Inc. (MG) 22Q3 Update

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

Posted in BVH, Consumer Discretionary | Comments Off on Bluegreen Vacations Holding Corp. (BVH) 22Q3 Update

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

Posted in ALR, DHC, Health Care | Tagged | Comments Off on AlerisLife Inc. (ALR) 22Q3 Update

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

Posted in ALR, DHC, Real Estate | Tagged | Comments Off on Diversified Healthcare Trust (DHC) 22Q3 Update

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

Posted in Health Care, OGN | Tagged , | Comments Off on Organon & Co. (OGN) 22Q3 Update

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

Posted in Health Care, MRK | Tagged , | Comments Off on Merck & Co (MRK) 22Q3 Update

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

Posted in AWK, Utilities | Tagged | Comments Off on American Water Works (AWK) 22Q3 Update

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

Posted in PEG, Utilities | Tagged | Comments Off on Public Service Enterprise Group (PEG) 22Q3 Update

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

Posted in BMY, Health Care | Tagged | Comments Off on Bristol-Myers Squibb (BMY) 22Q3 Update

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

Posted in GE, Industrials | Tagged , | Comments Off on General Electric (GE) 22Q3 Update

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

Posted in BKR, Energy | Tagged , | Comments Off on Baker Hughes (BKR) 22Q3 Update

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

Posted in NJR, Utilities | Tagged , | Comments Off on Initiating Coverage of New Jersey Resources Corp (NJR)

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

Posted in Consumer Discretionary, Housing, Market Commentary, Real Estate, TOL | Tagged , | Comments Off on September Housing Market Update

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

Posted in BKR | Tagged | Comments Off on Baker Hughes (BKR): Initiating Coverage

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.

Posted in Consumer Staples, CPB | Tagged | Comments Off on Campbell Soup (CPB) 22Q4 Update

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

Posted in HPE, Technology | Tagged | Comments Off on Hewlett Packard Enterprise (HPE) 22Q3 Update

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

Posted in Federal Reserve | Comments Off on Nice Speech, Mr. Powell, But Please Pay Attention to Housing

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

Posted in Consumer Discretionary, Housing, TOL | Tagged | Comments Off on Toll Brothers (TOL) 22Q3 Update

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

Posted in Consumer Discretionary, Housing, Market Commentary, TOL | Tagged , | Comments Off on 22Q2 Housing Market Update

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

Posted in CTXR, Health Care | Tagged | Comments Off on Citius Pharmaceuticals (CTXR) 22Q3 Update

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.

Posted in ALR, DHC, Real Estate | Tagged | Comments Off on Diversified Healthcare Trust (DHC) 22Q2 Update

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

Posted in ALR, DHC, Health Care | Tagged | Comments Off on AlerisLife (ALR) 22Q2 Update

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.

Posted in BVH, Real Estate | Tagged , | Comments Off on Bluegreen Vacations Holding (BVH) 22Q2 Update

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

Posted in Industrials, MG | Tagged | Comments Off on Mistras Group (MG) 22Q2 Update

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

Posted in Health Care, OGN | Tagged , | Comments Off on Organon & Co (OGN) 22Q2 Update

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

Posted in PEG, Utilities | Tagged | Comments Off on Public Service Enterprise Group (PEG) 22Q2 Update

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

Posted in Health Care, MRK | Tagged , | Comments Off on Merck & Co (MRK) 22Q2 Update

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

Posted in AWK, Utilities | Tagged , | Comments Off on American Water Works (AWK) 22Q2 Update

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

Posted in BMY, Health Care | Tagged | Comments Off on Bristol-Myers Squibb (BMY) 22Q2 Update

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

Posted in GE, Industrials | Tagged , | Comments Off on GE 22Q2 Update

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

Posted in HPE, Technology | Tagged | Comments Off on Hewlett Packard Enterprise Company (HPE) 22Q2 Update

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.

Posted in BVH, Real Estate | Tagged | Comments Off on Bluegreen Vacations Holding Corp. (BVH) 22Q1 Update

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

Posted in CTXR, Health Care | Tagged | Comments Off on Citius Announces Its Intention to Spin-Off I/ONTAK

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

Posted in ALR, DHC, Real Estate | Tagged | Comments Off on DHC 22Q1 Update

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

Posted in ALR, DHC, Health Care | Tagged | Comments Off on AlerisLife (ALR) 22Q1 Update

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.

Posted in GE, Industrials | Tagged , | Comments Off on GE 22Q1 Update

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

Posted in CTXR, Health Care | Tagged | Comments Off on Citius Pharma 22Q1 Update

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

Posted in Industrials, MG | Tagged | Comments Off on Mistras Group, Inc. (MG) 21Q4 Update

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

Posted in Consumer Discretionary, Housing, TOL | Tagged , | Comments Off on Thoughts on the Outlook for Homebuilding Stocks

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

Posted in Health Care | Comments Off on Going to Neutral on Big Pharma

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

Posted in ALR, DHC, Health Care | Tagged , | Comments Off on AlerisLife (ALR) 21Q4 Update

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

Posted in Consumer Discretionary, Housing, TOL | Tagged | Comments Off on Toll Brothers (TOL) 22Q1 Update

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

Posted in Health Care, MRK | Tagged , | Comments Off on Merck & Co. (MRK) Update

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

Posted in DHC, Real Estate | Tagged | Comments Off on DHC 21Q4 Update

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

Posted in BMY, Health Care | Tagged | Comments Off on Bristol-Myers Squibb Update

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

Posted in Energy, Financials, Market Commentary, Real Estate, Sectors, Technology, Utilities | Tagged , , , | Comments Off on The Drivers of Large Cap Stock Performance in 2021

DHC Announces Sales of Joint Venture Interests in Certain Office Properties

Sales Raise Over $1 Billion, Giving the Trust the Means to Retire the 9.75% Senior Notes due 2025 When They Become Callable in June 2022. DHC announced on January 31 that it has entered into a joint venture with two … Continue reading

Posted in DHC, Real Estate | Tagged | Comments Off on DHC Announces Sales of Joint Venture Interests in Certain Office Properties

Notes and Analysis from Campbell Soup’s Fiscal 2022 Investor Day

Since 2019, Campbell Soup Company has jettisoned several businesses to focus on its core Meals and Beverage (M&B) and Snacks segments.  It has also acquired new growth platforms in Pacific Foods and Snyder’s-Lance.  Its $1 billion enterprise cost savings program … Continue reading

Posted in Consumer Staples, CPB | Tagged | Comments Off on Notes and Analysis from Campbell Soup’s Fiscal 2022 Investor Day

Mistras Group: Waiting for the Full Recovery

Mistras Group is a leading provider of non-destructive testing (NDT) and related asset protection services that monitor the condition of critical infrastructure and equipment to ensure safe and efficient operations and maximize uptime.  The company’s business has suffered during the … Continue reading

Posted in Industrials, MG | Tagged | Comments Off on Mistras Group: Waiting for the Full Recovery

Toll Brothers (TOL) 21Q4 Update

Toll Brothers reported stronger-than anticipated fiscal 21Q4 results that once again exceeded my and the consensus estimates.  Its diluted earnings per share were $3.02, up 95% from $1.55 in 20Q4.  My estimate was $2.51 and the consensus estimate was $2.50.

Posted in Consumer Discretionary, Housing, Real Estate, TOL | Tagged | Comments Off on Toll Brothers (TOL) 21Q4 Update

Organon 21Q3 Update

Organon reported 21Q3 GAAP EPS of $1.38 which exceeded my estimate of $1.31.  Revenues were in line with my estimates and operating costs were lower, except for a $25 million increase associated with the acquisition of in-process research & development.

Posted in Health Care, OGN | Tagged , | Comments Off on Organon 21Q3 Update

SJI 21Q3 Update

SJI reported a 21Q3 GAAP net loss of $25.8 million or $0.23 per share, wider than 20Q3’s net loss of $10.3 million or $0.10.  On an economic earnings basis, which adjusts for fluctuations in the fair market value of derivatives … Continue reading

Posted in SJI, Utilities | Tagged | Comments Off on SJI 21Q3 Update

Notes and Analysis from HPE’s 2021 SAM

At its 2021 Securities Analyst Meeting (SAM), the management of Hewlett Packard Enterprise Company (HPE) said that the workplace changes advanced by the pandemic are proving the validity of its edge-to-cloud strategy.  HPE has experienced stronger than anticipated growth in … Continue reading

Posted in HPE, Technology | Tagged | Comments Off on Notes and Analysis from HPE’s 2021 SAM

DHC 21Q3 Results

Diversified Healthcare Trust (DHC) reported 21Q3 normalized FFO of –$0.04 per share, compared with 21Q2’s $0.05.  The loss came despite a 40 bp improvement in SHOP occupancy.  Operating costs remain high and senior living operators are discounting resident rates more … Continue reading

Posted in DHC, Real Estate | Tagged | Comments Off on DHC 21Q3 Results

Five Star Senior Living 21Q3 Update

Again Lowering EPS Estimates; Reducing 6-12 Month PT and Maintaining Outperform Rating Five Star reported a third quarter net loss of $10.2 million or $0.32 per share, less than the second quarter’s loss of $12.3 million or $0.39 per share.  … Continue reading

Posted in ALR, DHC, Health Care | Tagged , | Comments Off on Five Star Senior Living 21Q3 Update

21Q3 Housing Market Update

The housing market has been quite strong since shortly after the onset of the pandemic, fueled by low interest rates, pent-up demand and a strong desire among urban apartment dwellers to escape the coronavirus.  New home sales from May 2020 … Continue reading

Posted in Housing, Real Estate | Tagged , , , | Comments Off on 21Q3 Housing Market Update

Toll Brothers 21Q3 Update

Toll Brothers reported stronger-than anticipated fiscal 21Q3 results that once again exceeded my estimates.  Its diluted earnings per share were $1.86, up 71% from $0.59 in 20Q2.  My estimate was $1.48 and the consensus estimate was $1.53.

Posted in Consumer Discretionary, Housing, TOL | Tagged | Comments Off on Toll Brothers 21Q3 Update

PSEG’s 2021 Investor Day

Public Service Enterprise Group held its 2021 Investor Day on Sept. 27, 2021.  At the meeting, management offered the following guidance:

Posted in PEG, Utilities | Tagged , | Comments Off on PSEG’s 2021 Investor Day

So. Jersey Industries: High Dividend Yield With Moderate Upside Price Potential

SJI’s utility businesses – South Jersey Gas Company (SJG) and Elizabethtown Gas Company (ETG) – are its core growth engines.  Representing 70%-80% of consolidated profits, they have grown by pursuing regulatory-approved infrastructure investment programs and gaining customers from new construction … Continue reading

Posted in SJI, Utilities | Tagged | Comments Off on So. Jersey Industries: High Dividend Yield With Moderate Upside Price Potential

Organon (OGN) 21Q2 Update

21Q2 Performance in Line with Expectations; Raising Performance Rating and Lowering Price Target 21Q2 GAAP EPS of $1.68 was lower than 20Q2’s $2.14.  Although sales increased 4.5% to $1.6 billion, costs were higher as a result of new tolling arrangements … Continue reading

Posted in Health Care, OGN | Tagged , | Comments Off on Organon (OGN) 21Q2 Update

DHC 21Q2 Update

Progress on Strategic Repositioning; Performance in Line with Expectations; Upgrading Performance Rating; Maintaining Price Target of ~$7.50. DHC reported 21Q2 normalized funds from operations (FFO) of $12.2 million or $0.05 per share, lower than 20Q2’s $0.25, due mostly to a … Continue reading

Posted in DHC, Real Estate | Tagged | Comments Off on DHC 21Q2 Update

Five Star Senior Living 21Q2 Update

Five Star reported a second quarter net loss of $12.3 million, reversing last year’s $3.0 million net profit.  On a per share basis, the loss was $0.39, compared to net income of $0.10 and below my estimate of a loss … Continue reading

Posted in ALR, DHC, Health Care | Tagged , | Comments Off on Five Star Senior Living 21Q2 Update

American Water Works 21Q2 Update

2021 Second Quarter Results in Line with Expectations. Maintaining Neutral Rating. AWK reported 21Q2 EPS of $1.14, up 17.5% from 20Q2.  Operating revenues increased  7.3% to $999 million.  Operating income rose 5.4% to $330 million.  Operating margin eased 60 bp … Continue reading

Posted in AWK, Utilities | Tagged , | Comments Off on American Water Works 21Q2 Update

Bristol-Myers Squibb: Initiating Coverage

Initiating Coverage with an Outperform Rating. Prospects Beyond 2022 are Favorable. With the acquisitions of Celgene in 2019 and MyoKardia in 2020, BMS has substantially transformed its business and repositioned for growth.  Drugs added to the portfolio from the two … Continue reading

Posted in BMY, Health Care | Tagged | Comments Off on Bristol-Myers Squibb: Initiating Coverage

PSEG: A Possible Rocky Transition to T&D

It has been a year since PSEG announced a strategic review to explore divesting its fossil fuel generating assets.  Since then, management has said that it is pleased with the interest shown by potential buyers in its 6,750+ MW portfolio … Continue reading

Posted in PEG, Utilities | Tagged , , | Comments Off on PSEG: A Possible Rocky Transition to T&D

Bluegreen Vacations Holding Corp. Stands to Gain as Domestic Travel Improves

On May 5, 2021, Bluegreen Vacations Holding Corporation (BVH), formerly known as BBX Capital Corporation, completed the acquisition of the 7% publicly-traded ownership stake of Bluegreen Vacations Corporation (BXG) that it did not already own through a statutory short-form merger … Continue reading

Posted in BVH, Real Estate | Tagged | Comments Off on Bluegreen Vacations Holding Corp. Stands to Gain as Domestic Travel Improves

HPE 21Q2 Results

The Company Reported Stronger Than Expected 21Q2 Results, But Its Upwardly Revised Guidance Was Somewhat Disappointing. HPE reported fiscal 2021 second quarter GAAP earnings of $0.19 per share, well above its most recent guidance of $0.02-$0.08 per share and ahead … Continue reading

Posted in HPE, Technology | Tagged | Comments Off on HPE 21Q2 Results

Update on Hewlett Packard Enterprise (HPE)

HPE has posted two consecutive quarters of stronger-than-expected results.  Although the quarterly figures still lag behind the prior year, the recent strength suggests that its business is rebounding strongly off the bottom.  As noted by management, HPE’s business portfolio, which … Continue reading

Posted in HPE, Technology | Tagged | Comments Off on Update on Hewlett Packard Enterprise (HPE)

Five Star Alters Strategy, Its Stock Gets Slammed

In early April, Five Star announced a change in its strategy whereby it will transition out of the management of 108 smaller senior living communities (SLCs) with 7,500 living units (with an average of 69.4 units per community), close and … Continue reading

Posted in ALR, Health Care | Tagged , | Comments Off on Five Star Alters Strategy, Its Stock Gets Slammed

Assessing the Impact of the Organon Spin-Off on Merck

Merck is progressing toward the spin-off of its subsidiary, Organon & Co., which is expected to be completed by the end of the June.  Organon will include Merck’s women’s health products, biosimilars and certain established brands, most of which have … Continue reading

Posted in Health Care, MRK, OGN | Tagged , , , | Comments Off on Assessing the Impact of the Organon Spin-Off on Merck