Citius Pharmaceuticals (CTXR) posted a 24Q4 loss of $11.8 million or $1.64 per share. Excluding an estimated $6 million milestone payment, which I had incorrectly expensed rather than capitalized, I had projected a $12.5 million or $1.73 per share loss. During the quarter, the company reported in August that the FDA has approved LYMPHIR, a treatment for relapsed and refractory cutaneous T-cell lymphoma (CTCL) for patients who have received at least one prior systemic therapy. Also in August, it completed the acquisition of TenX Acquisition, now known as Citius Oncology (CTOR), in which it held a 92.3% equity stake immediately after the closing. In November, Citius completed a 1-for-25 reverse stock split in order to maintain its NASDAQ listing. It also raised $3 million from the sale of common stock and warrants under its at-the-market equity offering agreement with H.C. Wainwright & Co.
Continue readingToll Brothers (TOL) 24Q4 Update
Toll Brothers’ 24Q4 EPS was $4.63, up 12.6% from 23Q4’s $4.11. My estimate was $4.24. Consensus was $4.34. Deliveries of 3,431 units increased 24.5% YOY. The average sales price per unit fell 11.3% to $950,000, mostly on sales mix. Adjusted gross margin of 27.9% was 150 bp below 23Q4. The home SG&A expense ratio rose 10 bp to 8.3%. New orders increased 30.4% YOY to 2,658 units, 12.6% above my estimate. Ending backlog was down 5.1% in units and 3.2% in dollar value.
Continue readingHewlett Packard Enterprise Co (HPE) 24Q4 Update
HPE reported 24Q4 GAAP diluted EPS of $0.99 vs. 23Q4’s $0.49. Non-GAAP EPS was $0.58 vs. $0.52. Net revenue of $8.46 billion rose 15.1% vs. last year and exceeded my estimate of $8.25 billion. GAAP EPS was above my estimate of $0.82, but non-GAAP EPS was below my $0.65 estimate. Most of the differences were due to a higher gain on the sale of the H3C stake than I had projected, which was excluded from non-GAAP EPS. Operating earnings were 4% below my projections. Free cash flow of $1.5 billion was double 23Q4’s $669 million and exceeded my estimate of $1.2 billion.
Continue readingThe Campbell’s Company 25Q1 Update
The Campbell’s Company (CPB) reported 25Q1 diluted GAAP EPS of $0.72, compared with last year’s $0.78. Non-GAAP EPS of $0.89 was below last year’s $0.91, but ahead of my estimate of $0.82. Net sales were $2.77 billion, up 10.1% from 24Q1, due to the Sovos Brands acquisition, but 3.3% below my estimate of $2.87 billion. Organic net sales declined 1% YOY. The primary reason for the earnings beat vs. my estimate was lower than expected administrative expenses. The company reported that its cost cutting initiative, including the integration of Sovos, is ahead of plan.
Continue readingNew Jersey Resources Corp (NJR) 24Q4 Update
24Q4 GAAP diluted loss per share was $0.91 and net financial earnings per basic share (NFEPS), a non-GAAP measure, was $0.89. That compares with 23Q4 GAAP EPS of $0.38 and NFEPS of $0.30. I had projected GAAP EPS of $0.94 and NFEPS or $0.92.
Continue readingSpire (SR) 24Q4 Update
Spire reported a 24Q4 GAAP loss of $0.51 per share, better than 23Q4’s $0.66 loss. Its non-GAAP, net economic loss per share (NEEPS) was $0.54, also improved over 23Q4’s $0.78 loss, but worse than my $0.41 loss estimate. Operating revenues of $293.8 million were down 5.3% YOY and 8.0% below my estimate.
Continue readingMistras Group (MG) 24Q3 Update
Mistras Group reported 24Q3 EPS of $0.20 vs. 23Q3’s loss of $0.34 and my estimate of $0.24. Revenues of $182.7 million were up 1.9%, as a 3.6% decline in Mistras’s largest segment, Oil & Gas, was more than offset by gains in most other segments. Gross profit rose 0.4% to $54.6 million, with gross margin declining 40 bp to 29.9%. SG&A costs declined $0.5 million to $38.9 million. Reorganization costs were $2.1 million, down from $2.7 million. The company recorded $0.9 million of legal settlement income and $1.5 million of non-recurring other income. Thus, Mistras’s non-GAAP EPS was $0.20, compared with $0.18 a year ago and my estimate of $0.23. Adjusted EBITDA of $23.3 million was up 7.7% over 23Q3 but below my estimate of $26.2 million. Free cash flow of $13.2 reversed last year’s negative free cash flow of $13.3 million, but fell short of my estimate of $19.0 million.
Continue readingMerck & Co (MRK) 24Q3 Update
24Q3 sales rose 4.3% to $16.7 billion. Excluding currency, sales rose 7%. Once again, a double-digit gain in KEYTRUDA sales more than offset declining sales in the rest of the portfolio. GAAP diluted EPS was $1.24, below 23Q3’s $1.87 and my estimate of $1.43. Non-GAAP diluted EPS was $1.57 vs. last year’s $2.13 and my $1.68 estimate. All of the shortfall against my estimate (and more) was due to a $750 million ($0.28 per share) charge taken for the acquisition of MK-1045, an investigational bispecific antibody for the treatment of B-cell associated cancers, partially offset by $170 million ($0.05 per share) of collaboration income from Daiichi Sankyo. That MK-1045 acquisition was announced on October 1; so it was not included in Merck’s guidance or my projections.
Continue readingPfizer (PFE) 24Q3 Update
Pfizer (PFE) reported 24Q3 revenues of $17.7 billion, up 33.8% from 23Q3, and 13% above my estimate. The key driver of the revenue beat came from Paxlovid, which posted sales of $2.7 billion, beating my estimate of $400 million. GAAP EPS was $0.78, reversing last year’s loss of $0.42 and trouncing my estimate of $0.25. Non-GAAP EPS of $1.06 compared with last year’s loss of $0.42, and was well above my estimate of $0.61.
Continue readingPublic Service Enterprise Group (PEG) 24Q3 Update
Public Service Enterprise Group (PEG) reported 24Q3 operating revenues of $2.64 billion, up 7.6% from 23Q3. Diluted GAAP EPS was $1.03 vs. $0.27 last year. 24Q3 operating income rose 16%, but most of the gain vs. the prior year was due to positive swings in pension costs and gains on trust investments. Non-GAAP operating EPS was $0.90 vs. $0.85 in 23Q3 and below my estimate of $0.93.
Continue readingBristol-Myers Squibb (BMY) 24Q3 Update
24Q3 net revenue rose 8.4% to $11.9 billion, with gains in Eliquis, Reblozyl, Breyanzi and Opdivo as well as other medicines from BMY’s growth portfolio more than offsetting an LOE-related decline in Sprycel. Growth portfolio net revenues rose 4% sequentially and were up 25% YOY. GAAP EPS of $0.60 was below 23Q3’s $0.93 and also below my estimate of $0.73. The decline in earnings was due mostly to a $492 million negative swing in other (income)/expense and a higher acquired in-process R&D charge. Non-GAAP EPS of $1.80 was below last year’s $2.00 but above my estimate of $1.58.
Continue readingOrganon & Co (OGN) 24Q3 Update
24Q3 revenues were $1.58 billion, up 4.1% year-over-year and up 5% at constant currency. GAAP diluted EPS was $1.38, compared with 23Q3’s $0.23, but above my estimate of $0.63. Non-GAAP EPS of $0.87 was even with last year, but below my estimate of $1.06. The consensus estimate was $0.90.
Continue readingAmerican Water Works (AWK) 24Q3 Update
AWK reported 24Q3 EPS of $1.80, up from $1.66 in 23Q3 and above my estimate of $1.67. Operating revenues rose 13.4% to $1.32 billion. Water and wastewater revenues increased 11.3%, with billed water service volumes up 2.8% and estimated average prices up 7.6%. Military and contract services revenues jumped 44%, due to the timing of capital projects. Consolidated operating and maintenance expenses increased 13.8%, mostly due to higher purchased water cost and usage, increased employee-related costs and higher project-related costs. Operating income rose 13.6% to $543 million; but the increase was partially offset by higher interest costs. Thus, net income increased 8.4%.
Continue readingGE Healthcare Technologies (GEHC) 24Q3 Update
GEHC reported 24Q3 revenues of $4.86 billion, up 0.9% YOY and matching my estimate of $4.90 billion. Revenues were flat, except Life Support Solutions (within the PCS segment), where sales rose 16.8%, and the PDx segment, up 12.5%. Sales in China fell 22%. Excluding China, sales grew 4.8%, led by gains of 8% in the U.S. and 5% in the rest of the world (excluding EMEA). Orders increased 1%, but were up mid-single digits excluding China.
Continue readingAT&T (T) 24Q3 Update
AT&T reported a 24Q3 GAAP loss of $0.03 per share, reversing last year’s $0.48 profit and falling short of my $0.56 estimate. The loss was entirely due to a $4.4 billion impairment charge taken against its Business Wireline segment. Non-GAAP EPS was $0.60, below last year’s $0.64, but a penny ahead of my $0.59 estimate. Revenues of $30.2 billion were down slightly from 23Q3’s $30.4 billion and lower than my estimate of $30.7 billion. Free cash flow was $3.1 billion in the quarter, a sliver below 23Q3’s $3.2 billion but more than twice my estimate of $1.3 billion.
Continue readingBaker Hughes (BKR) 24Q3 Update
BKR reported 24Q3 GAAP diluted EPS of $0.77 vs. 23Q3’s $0.51 and my estimate of $0.63. Non-GAAP EPS was $0.67, compared with $0.42 last year and my estimate of $0.65. Revenues of $6.9 billion rose 4.0% vs. 23Q3, but was 4.3% below my projections due to lower than expected services sales. Orders of $6.68 billion fell 21.6% YOY, against an especially tough prior year comparison. Adjusted EBITDA was $1.21 billion, up from $983 million in 23Q3, as adjusted EBITDA margin increased by 270 bp to 17.5%. Free cash flow (CFOA minus capex plus dispositions) was $754 million vs. $592 million in 23Q3.
Continue readingGE Vernova (GEV) 24Q3 Update
GE Vernova (GEV) reported a 24Q3 GAAP diluted loss per share of $0.35 compared with 23Q3’s pro forma loss of $0.62. This quarter saw a big increase in SG&A from standalone corporate and higher restructuring costs. Excluding those and other exceptional items, I estimate that non-GAAP EPS (which is not defined by the company) was $0.07, compared with a loss of $0.94 in 23Q3. The Power and Electrification segments reported higher adjusted EBITDA, but Wind’s negative EBITDA increased. Free cash flow jumped from zero to $1.0 billion, due to working capital management and other non-operating factors.
Continue readingGE Aerospace (GE) 24Q3 Update
GE Aerospace reported 24Q3 revenues of $9.8 billion, up 5.8% vs. the prior year; GAAP EPS from continuing operations was $1.56, compared with 23Q3’s $0.20; and non-GAAP EPS was $1.15 vs $0.92. Results exceeded my estimates of $1.18 for GAAP EPS and $1.09 for non-GAAP adjusted EPS.
Continue readingInitiating Coverage on Spire Inc (SR)
Spire Inc. (NYSE:SR) is a public utility holding company based in St. Louis, MO. The company operates in three segments: Gas Utility, Gas Marketing and Midstream. Its Gas Utility segment accounts for 93% of Spire’s operating revenues and 80% of its operating income. The segment includes (a) Spire Missouri, which is the largest natural gas distribution utility system in Missouri; (b) Spire Alabama, a gas distribution utility that was acquired in 2014 and operates in central and northern Alabama and serves the city of Birmingham; (c) Spire Gulf, which serves the city of Mobile AL; and (d) Spire Mississippi, which serves south-central Mississippi.
Continue readingCampbell Soup (CPB) 24Q4 Update
Campbell Soup Company (CPB) reported 24Q4 diluted GAAP loss per share of $0.01, compared with last year’s profit of $0.41. Non-GAAP EPS of $0.63, above last year’s $0.50, and matching my estimate of $0.63. Net sales were $2.39 billion, up 10.9% from 23Q4, due entirely to the acquisition of Sovos Brands. Organic net sales declined 1% vs. the prior year. The 24Q4 GAAP loss was due mostly to impairment charges of $129 million ($0.33 per share) associated with the sale of the Pop Secret popcorn business and also with certain salty snacks and cookie trademarks, collectively known as Allied Brands.
Continue readingHewlett Packard Enterprise (HPE) 24Q3 Update
HPE reported 24Q3 GAAP diluted EPS of $0.38, above 23Q3’s $0.35. Non-GAAP EPS was $0.50 vs. $0.49 last year. Net revenue of $7.71 billion rose 10.1% vs. the previous year. Results exceeded my estimates of $7.60 billion in revenue, $0.32 for GAAP EPS and $0.47 for non-GAAP EPS. Revenue growth was near the high end of management’s guidance, while both GAAP and non-GAAP EPS exceeded the high end of management’s guidance.
Continue readingRecent Trends in the Economy and Financial Markets
Stocks logged another month of gains in August, but once again September, it has started off with a sharp sell-off.
Continue readingGE Aerospace (GE) 24Q2 Update
GE Aerospace reported 24Q2 revenues of $9.1 billion, up 3.9% year-over-year; GAAP EPS from continuing operations was $1.20, compared with 23Q2’s $1.09; and non-GAAP EPS was $1.20 vs $0.74. The mean estimates of analysts were $8.6 billion for revenues and non-GAAP EPS of $0.99.
Continue readingToll Brothers (TOL) 24Q3 Update
Toll Brothers’ 24Q3 EPS was $3.60, down 3.5% from 23Q3’s $3.73. My estimate was $3.18. Consensus was $3.31. Deliveries of 2,814 units increased 11.5% YOY. The average sales price per unit fell 8.6% to $968,200. Adjusted gross margin of 28.8% was 50 bp below 23Q3. The home SG&A expense ratio rose 40 bp to 9.0%. New contracts increased 10.9% YOY to 2,490 units, 2.5% below my estimate. Ending backlog was down 7.2% in units and 10.3% in dollar value. Based upon 24Q3 results and management’s guidance, I now project fiscal 2024 EPS of $14.62, 18.3% above fiscal 2023’s EPS of $12.36.
Continue readingDiversified Healthcare Trust (DHC) Follow Up
Last year at this time, when I last wrote about DHC, the Trust had proposed to merge with another RMR Group affiliate, Office Properties Income Trust (OPI). That merger proposal was scuttled by opposing DHC shareholders.
Continue readingCitius Pharmaceuticals (CTXR) 24Q3 Update
Citius Pharmaceuticals (CTXR) posted a 24Q3 loss of $10.9 million or $0.06 per share, matching my estimate. R&D expense fell by $1.0 million or 26.6% vs. the prior year, while general & administrative expense increased $1.1 million or 28.8%. The company is reducing its clinical development activity and gearing up for the launch of LYMPHIR.
Continue readingNew Jersey Resources (NJR) 24Q3 Update
24Q3 GAAP diluted loss per share was $0.12 and net financial loss per basic share, a non-GAAP measure, was $0.09. That compares with 23Q3 GAAP EPS of $0.02 and net financial earnings per share (NFEPS) of $0.10. I had projected positive EPS and NFEPS. The consensus estimate predicted a net financial loss per share of $0.05.
Continue readingOrganon (OGN) 24Q2 Update
24Q2 revenues were $1.607 billion, down 0.1% year-over-year, but up 2% at constant currency. GAAP diluted EPS was $0.76, below 23Q2’s $0.95, but above my estimate of $0.67. Non-GAAP EPS of $1.12 was behind last year’s $1.31, but a penny ahead of my estimate of $1.11. The consensus estimate was $1.08.
Continue readingGE Healthcare (GEHC) 24Q2 Update
GE Healthcare Technologies (GEHC) reported 24Q2 revenues of $4.84 billion, up 0.5% YOY and but 1.9% below my estimate. Excluding currency and acquisitions, revenue increased 1%. Revenues declined in all segments, except PDx, which rose 12.5%. Sales in China fell 15%. Excluding China, global sales growth was 4%. Orders increased 3% (or 6%, excluding China).
Continue readingPfizer (PFE) 24Q2 Update
Pfizer (PFE) reported 24Q2 revenues of $13.3 billion, up 4% from 23Q2, but 4.5% below my estimate. The shortfall from projections was due mostly to lower than expected sales of Comirnaty, Prevnar, Paxlovid and Abrysvo. Pfizer’s GAAP EPS was $0.01, down from $0.41 in 23Q2 and below my estimate of $0.14. The decline in GAAP earnings was caused by a $1.3 billion charge related to the company’s Manufacturing Optimization Program and a $230 million IPRD asset impairment charge associated with discontinuing a product development program. Non-GAAP EPS of $0.60 was below last year’s $0.67, but better than my estimate of $0.48.
Continue readingMistras Group (MG) 24Q2 Update
Mistras Group reported 24Q2 EPS of $0.20 vs. 23Q2’s $0.01 and my estimate of $0.11. Revenues of $189.8 million were up 7.8%, with all industry segments posting gains, including double-digit gains in segments that had been experiencing steady declines. Gross profit rose 12.9% to $56.1 million, with gross margin rising 140 bp to 29.6%. SG&A costs declined $0.5 million to $41.0 million. Reorganization costs were $0.5 million, down from $1.2 million. Excluding those and other exceptional items, Mistras’s non-GAAP EPS was $0.21, compared with $0.05 a year ago and my estimate of $0.13. Adjusted EBITDA was $22.1 million, up 45% over 23Q2 and above my estimate of $16.9 million.
Continue readingMerck & Co (MRK) 24Q2 Update
24Q2 sales increased 7.2% to $16.1 billion. Excluding currency, sales rose 11%. The sales gain came almost entirely from an increase of $1.0 billion in Keytruda. However, a few recently launched medicines posted solid sales, including Wellireg, Winrevair and Reblozyl
Continue readingAmerican Water Works (AWK) 24Q2 Update
AWK reported 24Q2 EPS of $1.42, down from $1.44 in 23Q2 and below my estimate of $1.48. Operating revenues rose 4.7% to $1.14 billion. Billed water service volumes declined 0.4%, but this was more than offset by an estimated 5.3% increase in average prices. Operating and maintenance expenses increased 3.2%, mostly due to higher purchased water cost and usage, increased employee-related costs and higher other operating expenses. Operating income rose 3.9% to $449 million; but the increase was offset by higher interest costs and a higher effective tax rate. Net income decreased 1.1%.
Continue readingPublic Service Enterprise Group (PEG) 24Q2 Update
Public Service Enterprise Group (PEG) reported 24Q2 operating revenues of $2.42 billion, unchanged from 23Q2. PSE&G’s operating revenues rose 26.2% to $1.86 billion. PSEG Power & Other’s net revenues, excluding sales to affiliates, fell 24.2% to $0.68 billion. 24Q2 diluted GAAP EPS was $0.87 vs. $1.18 last year. Non-GAAP operating EPS was $0.63 vs. $0.70. 24Q2 Non-GAAP EPS was below my estimate of $0.75. Compared to my projections, the shortfall in non-GAAP earnings was due entirely to proportionately higher mark-to-market gains (which are excluded from non-GAAP earnings).
Continue readingAT&T (T) 24Q2 Update
AT&T reported 24Q2 GAAP EPS of $0.49, below last year’s $0.62 and my estimate was $0.58. Non-GAAP EPS was $0.57, below last year’s $0.63 and my estimate of $0.62. Free cash flow was $4.6 billion in the quarter, above 23Q2’s $4.2 billion and my estimate of $3.6 billion.
Continue readingBristol-Myers Squibb (BMY) 24Q2 Update
24Q2 net revenue rose 8.7% to $12.2 billion, with a solid gains in Opdivo, Eliquis and a bevy of medicines from BMY’s growth portfolio, more than offsetting an LOE-related decline in Revlimid. Growth portfolio net revenues rose 17% sequentially and 26% YOY, with triple-digit gains in Camzyos and Sotyktu and 50% gains in Opdualag, Zeposia and Breyanzi. GAAP EPS of $0.83 was 16% below 23Q2, but in line with my estimate. The decline in earnings was due to impairment charges taken against two products and higher acquisition-related costs. Non-GAAP EPS of $2.07 was better than last year’s $1.75 and above my estimate of $1.88.
Continue readingBaker Hughes (BKR) 24Q2 Update
BKR reported 24Q2 GAAP diluted EPS of $0.58 vs. 23Q2’s $0.40 and my estimate of $0.47. Non-GAAP EPS was $0.57 compared with $0.39 last year and my estimate of $0.48. Revenues of $7.5 billion rose 13.1% vs. 23Q2, and were 4.8% above my projections. Orders of $7.53 billion rose 0.7% YOY, with a doubling of Climate Technology Solutions orders (off of a low base) offsetting slight declines in OFSE and Gas Technology. Adjusted EBITDA was $1.13 billion, up from $907 million in 23Q2. Adjusted EBITDA margin improved by 140 bp to 15.8%. Free cash flow was $106 million vs. $623 million in 23Q2.
Continue readingGE Vernova (GEV) 24Q2 Update
In its first quarter since being spun off by General Electric on April 2, GE Vernova (GEV) reported GAAP diluted EPS of $4.69 compared with a pro forma loss of $0.55 in 23Q2. This quarter’s results included an $847 million pretax gain from the sale of a portion of its Steam Power business (estimated $3.07 per share) and a $254 million benefit ($0.92 per share) from an arbitration refund in its dispute with a multiemployer pension plan Excluding those and other exceptional items, I estimate that non-GAAP EPS was $0.09, compared with a loss of $0.50 in 23Q2. Revenues rose 3% to $8.2 billion. All segments reported higher adjusted EBITDA. Free cash flow, according to my calculations, jumped from $1.1 billion to $2.0 billion.
Continue readingNew Jersey Resources (NJR) 24Q2 Update
24Q2 GAAP diluted EPS was $1.22 and net financial earnings per basic share (NFEPS), a non-GAAP measure, was $1.40. That compares with 23Q2 GAAP EPS of $1.13 and NFEPS of $1.15. The results exceed my expectations. The consensus NFEPS estimate was $1.22.
Continue readingToll Brothers (TOL) 24Q2 Update
Toll Brothers’ 24Q2 EPS was $4.55, up 60% from 23Q2’s $2.85. Excluding a $1.17 profit from a land sale, 24Q2 EPS was $3.38. My estimate was $3.06. Deliveries of 2,641 units increased 6% YOY. The average sales price per unit rose 0.3% to $1.0 million. Adjusted gross margin of 28.2% was 10 bp below 23Q2. The SG&A expense ratio fell 10 bp to 9.0%. New contracts jumped 30% YOY to 3,041 units, far exceeding my estimate. Ending backlog was down 6.4% in units and 18.8% in dollar value. Based upon 24Q2 results and management’s guidance, I now project fiscal 2024 EPS of $13.93, up from 2023’s $12.36.
Continue readingPublic Service Enterprise (PEG) 24Q1 Update
Public Service Enterprise Group (PEG) reported 24Q1 operating revenues of $2.76 billion, down 26.5% from $3.76 billion in 23Q1. PSE&G’s operating revenues rose 1.7% to $2.33 billion. PSEG Power & Other’s net revenues, excluding sales to affiliates, decreased 70.8% $0.43 billion, due mostly to a decline in mark-to-market gains on derivative contracts. 24Q1 diluted GAAP EPS was $1.06 vs. $2.57 last year. Non-GAAP operating EPS was $1.31 vs. $1.39. 24Q1 Non-GAAP EPS was below my estimate of $1.34.
Continue readingMistras Group (MG) 24Q1 Update
Mistras Group reported 24Q1 EPS of $0.03 vs. 23Q1’s loss of $0.17 and my estimate of $0.00. Revenues of $184.4 million were up 9.8%, due mostly to strong maintenance turnaround activity in the Oil & Gas sector. Gross profit rose 10.9% to $51.1 million, with gross margin rising 30 bp to 27.7%. SG&A costs declined $1.6 million to $41.2 million, but less than the $3 million or so anticipated benefit from Project Phoenix. Reorganization costs were $1.6 million, down from $2.1 million. Excluding those and other exceptional items, Mistras’s non-GAAP EPS was $0.07, compared with ($0.12) a year ago and my estimate of $0.01. Adjusted EBITDA was $16.2 million, up 55% over 23Q1, above my estimate of $13.6 million.
Continue readingRecent Trends in the Economy and Financial Markets
Stocks advanced again in May, but the rally may be running out of steam. The S&P Composite 1500 rose 3.0%.
Continue readingCampbell Soup (CPB) 24Q3 Update
Campbell Soup Company (CPB) reported 24Q3 diluted GAAP EPS of $0.44, below last year’s $0.53. Non-GAAP EPS was $0.76, above last year’s $0.68, and in line with my estimate of $0.75. Net sales were $2.37 billion, 6.3% above 23Q3. The company completed the $2.6 billion acquisition of Sovos Brands on March 12.
Continue readingCitius Pharmaceuticals (CTXR) 24Q2 Update
Citius Pharmaceuticals (CTXR) posted a 24Q2 loss of $8.5 million or $0.05 per share, $0.02 below my estimate, mostly because of an unexpected $2.3 million gain on the sale of NOLs. R&D expense declined by about $1.1 million vs. the prior year and administrative expenses by $0.5 million, as the company focuses on the upcoming launch of LYMPHIR.
Continue readingAmerican Water Works (24Q1) Update
AWK reported 24Q1 EPS of $0.95, up from $0.91 in 23Q1. Consensus was $0.97. This quarter’s results included a $0.02 benefit from an increase in interest income on the Home Services Group seller note. Operating revenues rose 7.8% to $1.01 billion. Billed water service volumes were flat. Operating and maintenance expenses increased 5.9%, mostly due to higher purchased water usage and fuel, power and chemicals costs. Operating income rose 10.5% to $326 million. Other expense, including interest expense, rose, while the effective tax rate increased 300 bp to 23.6%. Net income increased 8.8% and EPS rose 3.8%, due to a higher share count from last year’s equity offering.
Continue readingMerck & Co (MRK) 24Q1 Update
24Q1 sales increased 8.9% to $15.8 billion. Excluding currency, sales rose 12%. The sales gain came from an increase of $1.15 billion in Keytruda and $277 million in Gardasil. GAAP diluted EPS was $1.87 per share vs. last year’s $1.11, and non-GAAP diluted EPS was $2.07 vs. last year’s $1.40. GAAP gross margin improved by 470 bp to 77.6%, largely due to the expiration of certain royalty payments on Keytruda and Gardasil. SG&A expense was flat in dollars but declined by 130 bp as a percent of sales to 15.7%. R&D costs declined by $300 million to $4.0 billion and by 420 bp as a percent of sales to 25.3%. All of the decline in R&D was due to lower charges for business development transactions, partially offset by higher compensation costs and increased clinical development spending and investments.
Continue readingHewlett Packard Enterprise (HPE) 24Q2 Update
HPE reported 24Q2 GAAP diluted EPS of $0.24, below 23Q4’s $0.32. Non-GAAP EPS was $0.42 vs. $0.52 last year. Net revenue of $7.20 billion rose 3.3%. Results beat the consensus estimates of $6.83 billion for revenue and $0.39 for EPS. Both came in above the high end of management’s guidance.
Continue readingOrganon (OGN) 24Q1 Update
24Q1 revenues were $1.622 billion, up 5.5% year-over-year, but up 7% at constant currency. GAAP diluted EPS was $0.78, above 23Q1’s $0.69 and my estimate of $0.77. Non-GAAP EPS of $1.22 was above last year’s $1.08 and also above my estimate of $1.14. The consensus estimate was $0.93.
Continue readingPfizer (PFE) 24Q1 Update
Pfizer (PFE) reported 24Q1 revenues of $14.9 billion, down 19% from 23Q1, but 7% above my estimate. Its GAAP EPS was $0.55 and non-GAAP EPS $0.82, down from $0.97 and $1.23 last year, but well ahead of my estimates of $0.22 and $0.49, respectively. The consensus non-GAAP estimate was $0.51.
Continue readingGE Healthcare (GEHC) 24Q1 Update
GEHC reported 24Q1 revenues of $4.65 billion, down 1.2% YOY and 4.1% below my estimate. Excluding currency, revenue was flat. Revenues declined in Imaging, Ultrasound and PCS, but PDx revenue increased 7.3%. Sales in China fell 11%. The company faced a tough prior year comparison, as 23Q1 revenues had gained from improved supply chain fulfillment and China’s regional stimulus program.
Continue readingBristol-Myers Squibb (BMY) 24Q1 Update
Bristol-Myers Squibb (BMY) reported 24Q1 revenues of $11.9 billion, up 5% from 23Q1. Its GAAP loss per share was $5.89 and non-GAAP loss $4.40, reversing last years earnings of $1.07 GAAP and $2.05 non-GAAP. 24Q1’s revenues were $330 million or 3.6% above the consensus estimate and non-GAAP loss was two cents better than the consensus estimate.
Continue readingRecent Trends in the Economy and Fixed Income Markets
The Economy. On balance, the economic data over the past few weeks point to slower growth ahead. According to the latest GDP Now report from FRB Atlanta, 24Q2 real GDP is expected to rise 3.3%. That’s down from nearly 4.0% two weeks ago. FRB New York’s Fed Now tracker pegs 24Q2 real GDP growth at 2.2% as of May 3, down from 2.7% as of April 26. The consensus of Blue Chip forecasters (via the Atlanta Fed) projects 24Q2 GDP growth of 1.4% to 2.9%.
Continue readingStocks Recover Quickly From April Lows
Stocks reversed course in April, with the S&P Composite 1500 declining 4.3%. Among its components, the S&P 500 lost 4.1%; the Mid-Cap 400 fell 6.1% and the SmallCap 600 dropped 5.7%.
Continue readingAT&T (T) 24Q1 Update
AT&T reported 24Q1 GAAP EPS of $0.47, compared with last year’s loss of $0.57. My estimate was $0.47. Non-GAAP EPS was $0.55, below last year’s $0.50, but above my estimate of $0.53. Free cash flow was $3.1 billion in the quarter, above 23Q1’s $1.0 billion and my estimate of $1.8 billion.
Continue readingBaker Hughes (BKR) 24Q1 Update
BKR reported 23Q4 GAAP diluted EPS of $0.45 vs. 23Q1’s $0.57 and my estimate of $0.34. Non-GAAP EPS was $0.43 compared with $0.28 last year and my estimate of $0.35. Revenues of $6.42 billion rose 12.3% vs. 23Q1, and matched my projections. Orders of $6.5 billion fell 14.3% YOY, due to declines across all segments. Adjusted EBITDA was $943 million, up from $782 million in 23Q1. Adjusted EBITDA margin improved by 100 bp to 14.7%. Free cash flow was $498 million vs. $177 million in 23Q1.
Continue readingCitius Pharma Raises $15M in Registered Direct Equity Offering
Earlier today, Citius Pharmaceuticals Inc. (CTXR) announced that it had entered into definitive agreements for the issuance of 21.4 million shares of its common stock and accompanying warrants to purchase up to the same number of common shares at a purchase price of $0.70 per unit (consisting of one share of common stock and one warrant). The warrants have an exercise price of $0.75 per share, exercisable six months from the date of issuance, and expire in five years (presumably from the date of issuance). Closing of the offering is expected to occur on or about April 30, 2024.
Continue readingInitiating Coverage of Pfizer (PFE)
Buy Rating. Price Target of $30.
As the COVID-19 pandemic receded, Pfizer’s sales and profits fell sharply. Combined sales and alliance revenues of COMIRNATY, the COVID vaccine, and PAXLOVID, the COVID oral antiviral, fell 78% to $12.5 billion in 2023. Some of the declines were due to one-time inventory management issues associated with the transition from governmental emergency use authorization to commercial use. Nevertheless, the sales drop had a big impact on Pfizer’s bottom line. 2023 GAAP diluted EPS was $0.37, down from $5.47 in 2022 and adjusted (non-GAAP) diluted EPS was $1.84, down from $6.58.
Continue readingAT&T (T) 23Q4 Update
AT&T reported 23Q4 GAAP EPS of $0.30, compared with last year’s loss of $3.20. My estimate was $0.55. The shortfall vs. my estimate was due to a $589 million impairment charge, lower gross margin, higher SG&A expense and a $1.7 billion actuarial loss on pensions. These negative factors were partially offset by a lower than anticipated tax rate. Non-GAAP EPS was $0.54, below last year’s and my estimate of $0.61. Free cash flow was $6.4 billion in the quarter, topping my estimate of $6.2 billion.
Continue readingNotes and Analysis from EEI’s 2024 Wall Street Briefing
The Edison Electric Institute’s 2024 Wall Street Briefing was held on February 20, 2024. The meeting came after the electric utility sector’s disappointing performance in 2023. The EEI Index, a composite total return measure for all 39 EEI member companies, declined 8.7% in 2023, much worse than the total returns of 26.3% for the S&P 500 and 16.4% for the S&P Mid-Cap 400. Utilities was the best performing S&P 500 sector in 2022 (even though it posted a low-single digit loss); but it was the worst performing by far in 2023.
Continue readingBaker Hughes (BKR) 23Q4 Update
BKR reported 23Q4 GAAP diluted EPS of $0.43 vs. 22Q4’s $0.18 and my estimate of $0.43. Non-GAAP EPS was $0.51 compared with $0.18 last year and my estimate of $0.47. Revenues of $6.84 billion rose 15.7% vs. 22Q4, in line with my projections. Orders of $6.9 billion fell 13.8% YOY, due to a 47% drop in Gas Technology Equipment (GTE) orders. Free cash flow was $633 million vs. $657 million in 22Q4.
Continue readingCitius Pharmaceuticals 23Q4 Update
Citius Pharmaceuticals (CTXR) posted a 23Q4 loss of $11.1 million or $0.07 per share, $0.01 more than my estimate, mostly because of higher than expected stock-based compensation and $1.15 million for a deemed dividend associated with the one-year extension of the exercise period for certain outstanding warrants. Both are non-cash charges. R&D expense declined by about $1 million sequentially and YOY, but administrative expenses increased. With the completion of the Mino-Lok Phase 3 trial, Citius’s expenses are shifting more to activities associated with the launches the LYMPHIR and Mino-Lok.
Continue readingHewlett Packard Enterprise (HPE) 23Q4 Update
HPE reported 23Q4 GAAP diluted EPS of $0.49 vs. 22Q4’s loss of $0.23 and my estimate of $0.38. Non-GAAP EPS of $0.52 was a nickel below last year and three cents above my estimate of $0.49. Net revenue of $7.35 billion was down 6.6% from 22Q4 but down only 0.3% from my estimate of $7.38 billion.
Continue readingNew Jersey Resources (NJR) 23Q4 Update
23Q4 GAAP EPS was $0.38 and net financial earnings per share (NFEPS), a non-GAAP measure, was $0.30 per basic share. That compares with 22Q4 GAAP EPS of $0.56 and NFEPS of $0.50. I had anticipated GAAP EPS of $0.30 and NFEPS of $0.31. The consensus estimate was $0.35.
Continue readingMistras Group (MG) 23Q3 Update
Mistras Group reported 23Q3 EPS of ($0.34) vs. 22Q3’s $0.14 and my estimate of $0.19. The net loss was due to a $13.8 million goodwill impairment charge taken against its International business and $2.7 million of reorganization charges associated with Project Phoenix. On an after-tax basis, these charges reduced EPS by $0.52. Excluding the charges, Mistras’s adjusted EPS was $0.18.
Continue readingCampbell Soup (CPB) 24Q1 Update
Campbell Soup Company (CPB) reported 24Q1 diluted GAAP EPS of $0.78, below last year’s $0.99 and also below my estimate of $0.82. Non-GAAP EPS was $0.91, below last year’s $1.02, but above my estimate of $0.85. Net sales were $2.52 billion, 2.2% below 23Q1 and below my estimate.
Continue readingGE Healthcare Technologies (GEHC) 23Q3 Update Report
GEHC reported 23Q3 revenues of $4.82 billion, up 5.4% YOY. Revenues increased 6% organically. Organic orders increased 1%. Product sales grew 5.8%; while services sales rose 4.6%. All segments posted revenue gains, except for Ultrasound, which was up against a tough prior year comparison.
Continue readingToll Brothers (TOL) 23Q4 Update Report
Toll Brothers’ 23Q4 EPS was $4.11, down 27% from 22Q4’s $5.63, but above my estimate of $3.51 (and the consensus of $3.72). 22Q4 included a $103 million ($0.91 per share) benefit from a litigation settlement. Revenues fell 18.6% to $3.02 billion, also exceeding my estimate of $2.75 billion. Deliveries of 2,755 units decreased 26.8% YOY. The average sales price per unit rose 12.6% to $1.07 million. Adjusted gross margin of 29.1% was 10 bp above 22Q4. The SG&A expense ratio of 8.2% rose 50 bp. New sales contracts surged 71.8% YOY to 2,038 units, exceeding my estimate of 1,939. Ending backlog was down 18.8% in units and 21.7% in dollar value. Based upon management’s guidance, I am projecting fiscal 2024 EPS of $12.03, down from 2023’s $12.36. Management’s guidance on the SG&A expense ratio seems conservative, but projected unit deliveries assume a hefty increase in the backlog conversion ratio.
Continue readingPublic Service Enterprise Group (PEG) 23Q3 Update
Public Service Enterprise Group (PEG) reported 23Q3 operating revenues of $2.46 billion, up 8.1% from $2.27 billion in 22Q3. PSE&G’s operating revenues rose 2.4% to $1.99 billion. PSEG Power & Other’s revenues increased 43.3% $0.5 billion, due to a decline in mark-to-market losses on derivative contracts. 23Q3 diluted GAAP EPS was $0.27 vs. $0.22 last year. Non-GAAP operating EPS was $0.85 vs. $0.86. 23Q3 Non-GAAP EPS exceeded my estimate of $0.78.
Continue readingMerck (MRK) 23Q3 Update
23Q3 sales increased 3.0% to $16.0 billion. Excluding currency and sales of Lagevrio, sales rose 8%. The sales gain came from an increase of $0.9 billion in Keytruda and $290 million in Gardasil.
Continue readingBristol-Myers Squibb (BMY) 23Q3 Update
23Q3 net revenue decreased 2.2% to $11.0 billion, as a 41% drop in Revlimid sales, due to LOE, was not entirely offset by growth across the rest of the portfolio. Revenues from newly launched products rose 79% YOY and 19% sequentially, but the sales trajectories for Camzyos, Sotyktu and Abecma remain disappointing. GAAP EPS of $0.93 was 25% above 22Q3 and better than my $0.85 estimate. Non-GAAP EPS of $2.00 was a penny better than last year and above my estimate of $1.85. The consensus non-GAAP estimate was $1.77.
Continue readingAT&T (T) 23Q3 Update
AT&T reported 23Q3 GAAP EPS of $0.48, below last year’s $0.79 and also below my estimate of $0.55. The primary cause of the shortfall vs. my estimate was a $604 million charge for impairments and restructuring that included a $450 million impairment charge against a satellite business in Latin America. Excluding this and other specified items, non-GAAP EPS was $0.64, better than my estimate of $0.59. Free cash flow was $5.2 billion in the quarter, slightly below my estimate of $5.3 billion.
Continue readingOrganon (OGN) 23Q3 Update
23Q3 revenues were $1.52 billion, down 1.2% YOY and also down 1% at constant currency. GAAP diluted EPS was $0.23, compared with 22Q3’s $0.90 and my estimate of $0.74. Non-GAAP EPS of $0.87 was below last year’s $1.32 and my estimate of $1.09. (The consensus estimate of $1.06.)
Continue readingAmerican Water Works (AWK) 23Q3 Update
AWK reported 23Q3 EPS of $1.44, up from $1.63 in 22Q3 and my estimate of $1.61. This quarter’s results included a $0.04 benefit from warm, dry weather. 22Q3’s weather benefit was $0.06. Operating revenues increased 7.9% to $1.17 billion. Billed water service volumes declined 2.5%. The implied average price of water service rose 10.7%, mostly because of rate cases and infrastructure charges that became effective after Jan. 1. Operating and maintenance expenses increased 3.7%, as the O&M cost ratio declined 100 bp to 32.6%. Operating income rose 8.9% to $478 million, with a similar increase in net income. As a result of the higher share count following March’s $1.7 billion equity issuance, EPS grew 1.5%.
Continue readingBaker Hughes (BKR) 23Q3 Update
BKR reported 23Q3 GAAP diluted EPS of $0.51 vs. a loss of $0.02 a year ago and my estimate of $0.35. Non-GAAP EPS was $0.42 compared with $0.26 last year and my estimate of $0.35. Revenues of $6.64 billion rose 23.7% vs. 22Q3, 3.3% better than my projections. Orders of $8.5 billion were up 13.9% sequentially and 40.4% YOY. The excess in GAAP earnings vs. my projections was due mostly to an increase in operating income and fair value gains on investments. BKR delivered $592 million of free cash flow in the quarter, compared with 22Q3’s $417 million.
Continue readingCampbell Soup (CPB) 23Q4 Update
23Q4 Results Exceed Expectations; Agrees to Acquire Sovos Brands; Maintaining Buy Rating; Lowering PT
Campbell Soup Company (CPB) reported 23Q4 diluted EPS of $0.56 above last year’s $0.32 and my estimate of $0.34. Non-GAAP EPS was $0.50, below last year’s $0.57, but above my estimate of $0.47. Net sales were $2.07 billion, 4.1% above 22Q4 and in line with my estimate.
Continue readingGeneral Electric (GE) 23Q3 Update
GE reported 23Q3 revenues of $17.3 billion, up 19.9% year-over-year; GAAP EPS from continuing operations of $0.08, compared with 22Q3’s $0.29 loss; and non-GAAP EPS of $0.82 vs 22Q3’s ($0.17). I had anticipated revenues of $15.4 billion, GAAP EPS of $0.49 and non-GAAP EPS of $0.60.
Continue readingA Quick Review of Economic Trends
Job Growth Rebounds; Wage Growth Slows. The pace of job creation rebounded in September. Payroll employment increased by 336,000, about twice the consensus estimate. Gains for August and July were both revised upward. This was the largest monthly increase in payrolls since January. Still, household employment rose by only 86,000, down from August’s 222,000 and the third straight month of smaller gains. The unemployment rate held steady at 3.8%, as did the labor force participation rate at 62.8%.
Continue readingA Quick Review of Interest Rates and Inflation
The FOMC Pauses Again. At its September meeting, as expected, the FOMC held the target range for the Fed Funds rate steady at 5.25%-5.50%. In the press release accompanying the statement, the Committee noted that while inflation remains elevated, tighter credit conditions for households and businesses will likely weigh on economic activity, hiring and inflation in the months ahead; but just how much is still uncertain. The Committee also reaffirmed its commitment to maximum employment and 2% inflation over the long-run.
Continue readingA Quick Review of September’s Stock Market Trends
Stocks lost more ground in September, the second consecutive month of decline. The losses appear to be driven by the evolving sentiment that interest rates will remain higher for longer. This caused valuation multiples to compress across almost all stocks. For the month, both the S&P Composite 1500 and S&P 500 declined 4.9%; the Mid-Cap 400 lost 5.4% and the Small Cap 600 fell 6.2%.
Continue readingHewlett 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 up 0.7% over 22Q3 and 1.5% above my estimate.
Continue readingDiversified 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 FFO was $0.02 better than my estimate of $0.03. The Office Portfolio posted a decline in operating income both sequentially and YOY due to higher property operating expenses and declining rental income. Senior Housing Operating Portfolio (SHOP) net operating income (NOI) was up sharply, due to gains in occupancy and rental rates.
Continue readingNew 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 and NFEPS of –$0.07. The consensus estimate was –$0.05. This was another solid quarter, according to management.
Continue readingBluegreen 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 focus of management, declined 0.7%. Compared with my projections, revenues came in 0.8% lower, but costs and expenses were 5.1% lower, with SG&A expenses 12.1% below forecast. BVH’s diluted EPS exceeded my estimate of $0.92 by 50%.
Continue readingCitius 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 proposed treatment for hemorrhoids, which was ramping up a Phase 2 clinical trial). The decline in R&D expense was partially offset by a $0.7 million increase in general and administrative costs associated with pre-launch and market research activities for Lymphir, its oncology immunotherapy for the treatment of cutaneous T-cell lymphoma. Interest income increased $0.2 million due to higher interest rates; but stock compensation expense rose by about the same amount.
Continue readingOrganon & 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 also above my estimate of $1.11 and the consensus estimate of $0.99.
Continue readingMistras 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 delay on a key defense contract.
Continue readingPublic 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 positive swing in mark-to-market profits on derivative contracts, which more than offset declines in third-party and intercompany sales.
Continue readingMerck & 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.
Continue readingAmerican 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%, with gains of 6.0% in residential and 9.2% in public more than offsetting a 9.4% decline in industrial. The implied average price of water service rose 10.5%, mostly because of $340 million in rate cases and infrastructure charges that became effective after Jan. 1. Operating and maintenance expenses increased 11.4%, slower than revenues, due to continuing inflationary pressures. The O&M cost ratio therefore declined by 190 bp to 38.2%. Operating income jumped 32.1% to $43 million, but a higher effective tax rate limited net income growth to a still strong 28.4%. With a higher share count from March’s $1.7 billion equity issuance, EPS grew 20%.
Continue readingBristol-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 grew 79% YOY and 19% sequentially, but the sales trajectory for Camzyos and Sotyktu remains disappointing. GAAP diluted EPS of $0.99, was up 49% over 22Q2 and in line with my estimate of $1.00; but non-GAAP EPS of $1.75 fell 9.5% YOY and was below my estimate of $2.04.
Continue readingGE 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 time. All segments posted revenue gains, led by Pharmaceutical Diagnostics (up 19%). Patient Care Solutions’ revenues increased 8%, Imaging was up 7% and Ultrasound eked out a 1% gain (up 3% excluding currency).
Continue readingGeneral 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 non-GAAP EPS of $0.46.
Continue readingBaker 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 25.1% vs. 22Q2, 1% better than my projections. Orders of $7.5 billion were down 2% sequentially but up 28% YOY. The excess in GAAP earnings vs. my projections was due entirely to gains on equity investments, as the company wrote up the value of some of its New Energy investments. BKR delivered $623 million of free cash flow in the quarter, compared with 22Q2’s $147 million.
Continue readingInitiating 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.
Continue readingCitius 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 research costs associated with I/ONTAK.
Continue readingBluegreen 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 in all expense categories. Interest expense more than doubled, due to additional debt taken on in the recent share tender and higher interest rates. The decline in EPS occurred despite a 22.5% decline in average shares outstanding.
Continue readingGE 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 from 25% to 30% more than offset a big increase in non-operating benefit income. Thus, net income declined 4.7% in the quarter to $372 million.
Continue readingCampbell 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 and a penny below my estimate of $0.69.
Continue readingHewlett 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 22Q2, but below the low end of $7.1 billion of management’s guidance.
Continue reading