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AbbVie

3/16: AbbVie is doing great things but the entire pharmaceutical industry is likely to go nowhere this year because the market expects Hillary to take steps to rein in drug prices.

Expected FY 12/2016 EPS Growth: 17%  CF Payout Ratio: 37%

Background
A January 2013 spin-off from Abbott Laboratories, AbbVie develops and markets treatments for infectious diseases, kidney disease, cancer, and others. Currently, its main product is arthritis drug Humira, however its new Hepatitis C treatment could be another big seller. In July 2014, AbbVie reached a deal to acquire U.K.-based Shire, and move its headquarters to the U.K. However, in October 2014, responding to changes in U.S. tax laws, AbbVie backed out of the deal. 

Quarterly Reports 

December '15: EPS (adjusted) $1.13, up 27% vs. year-ago. Revenues (adjusted currency) up 24% to $6.36 billion. Arthritis drug Humira sales up 16% to $3.717 billion. New hepatitis therapy Viekira sales $554 million, up 18% from September Q. Gross margin 77.0% of sales vs. year-ago 79.5% (higher is better). Expected 16% earnings growth in 2016. In October, dividend up 12% to $0.57.

September '15: EPS (adjusted) $1.13, up 27%. Revenues (adjusted) up 26% to $5.944 billion. Arthritis drug Humira sales (adjusted) up 20% to $3.647 billion. New hepatitis therapy Viekira sales $469 million.

June '15: EPS (adjusted) $1.08  up 32%. Revenues up 11% to $5.475 billion (excluding currency +19%). Arthritis drug Humira sales up 8% to $3.537 billion (ex-currency +16%). New hepatitis therapy Viekira sales $385 million.

March '15: EPS (adjusted) $0.94, up 32%. Revenues up 10% to $5.040 billion (excluding currency +18%). Arthritis drug Humira sales flat at $3.111 billion (ex-currency +18%). New respiratory drug Synagis sales $335 million. New hepatitis therapy Viekira $231 million. FDA approved DUOPA for treatment of advanced Parkinson's disease, and classified DUOPA as an orphan drug. FDA approved new hepatitis C treatment, Viekira. Agreed to pay $21 billion (cash & stock) for cancer drug maker Pharmacyclics, maker of Imbruvica, a blood cancer treatment that Pharmacyclics co-markets with Johnson & Johnson. Deal would cut 2015 EPS by $0.20, but "highly accretive to revenue and earnings by 2017."  In February, dividend up 4% to $0.51. 

December '14: EPS (adjusted) $0.89, up 9%. Revenues up 5% to $5.371 billion. Expected 2015 EPS (adjusted) $4.35, on high teens revenue growth. In October, dividend up 17% to $0.49.

September '14: EPS (adjusted) $0.89, up 9%. Revenues up 8% to $5.019 billion. Arthritis drug Humira sales up 18% to $3.255 billion. HIV drug Kaletra sales up 8% to $256 million. Agreed to acquire U.K.-based pharmaceutical maker Shire and move its headquarters to the U.K. However, later, responding to changes in U.S. tax laws, AbbVie backed out of the deal. 

June '14: EPS $0.82, even. Revenues up 5% to $4.926 million. Humira sales up 26% to $3.228 billion.

Albemarle

6/1/18: We added Albemarle to the portfolio because it is a major lithium producer and lithium is required to produce high-energy batteries used in cell phones as well as many other applications, not the least of which are the batteries needed to power electric cars, which could account for a major share of all autos sold within a few years. Lithium prices had already moved up when we added Albemarle to the portfolio and we expected that trend to continue.

However, Albemarle's share price took a big hit two month's ago after an analyst predicted that increasing lithium production would overwhelm supply, driving its prices down to about half the current level sometime in the 2020 to 2022 timeframe. There are many divergent opinions on the topic. While no consensus has evolved, additional experts have recently supported the "prices are headed down" argument. Also, Albemarle's 8% revenue and 15% EPS growth forecasts for full-year 2018 weakened the bull case. Albemarle's share price could remain under pressure indefinitely. We're taking a big loss by selling Albemarle, but we don't see any easy way out.

Albemarle reported March quarter earnings (adjusted) of $1.30 per share, $0.09 above analyst forecasts, and up 24% vs. year-ago. Revenues up 14% to $821.6 million. Lithium sales up 38% to $298 million, bromine sales up 3% to $225.6 million, refining catalyst sales up 3% to $260.7 million, and other sales up 15% to $37.2 million. Operating income (EBITDA): lithium up 31% to $131.0 million, bromine up 2% to $70.04 million, refining catalyst down 3%% to $67.8 million, and other down 25% to $5.2 million. Expects around 8% revenue growth and 15% EPS growth for full year 2018. Good year-over-year Lithium sales and earnings growth, which is the main story for Albemarle

Albemarle's future growth hinges on demand for self-driving autos, which are expected to be big users of lithium, ALBS's major product. In March, news about accidents involving self-driving cars made investors question prevailing assumptions about how fast self-driving autos would gain market share, thereby driving ALB's share price down. 

In February, Albemarle raised its quarterly dividend by 5% to $0.335 per share.

Expected FY 12/2018 EPS Growth: 13%  CF Payout Ratio: 19%

Background
Albemarle is the world’s largest and among the lowest cost producers of lithium, which is required to build high-capacity batteries, including those used in electric-powered autos. Albemarle also produces chemicals for a variety of applications including catalysts used by oil refineries and fire retardants used in electronics devices. In 2018, Albemarle sold its chemical catalysts business to focus on its lithium production and refining catalyst businesses.

Quarterly Reports   

December '17: EPS (adjusted) $1.34, up 72% vs. year-ago. Revenues up 23% to $857.8 million. Lithium sales up 39% to $289.6 million, bromine sales up 13% to $219.1 million, and refining catalyst sales up 23% to $238.4 million. Operating income: lithium up 33% to $118.7 million, bromine up 37% to $64.4 million, refining catalyst up 21%% to $69.2 million. In December, sold a portion of its performance catalysts business, which accounted for around $200 million in annual sales (around 12%), for $416 million. Deal, was in line with ALB's strategy of focusing on its lithium production and refining catalyst business.  

September '17: EPS (continuing) $1.08 per share, up 19%. Hurricane Harvey damage cut EPS by $0.07. Revenues up 15% to $754.9 million. Lithium sales up 62% to $269.2 million, bromine sales up 9% to $212.9 million, refining catalyst sales down 11% to $170.3 million, advanced materials sales flat at $74.3 million. Operating income: lithium up 65% to $112.9 million, bromine up 23% to $63.9 million, catalyst down 34% to $43.1 million, advanced materials down 25% to $17.3 million. Lithium accounted for 36% of sales, 54% of operating income. 

June '17: EPS (adjusted) up 23% to $1.13. Revenues up 10% to $737.3 million. Lithium sales up 55% to $243.8 million, bromine sales down 1% to $212.9 million, catalyst sales up 3% to $184.2 million, advanced materials sales down 2% to $74.0 million. Operating income: lithium up 80% to $115.2 million, bromine down 7% to $62.1 million, catalyst down 19% to $50.1 million, advanced materials down 6% to $17.4 million.

March '17: EPS (adjusted) up 11% to $1.05. Revenues up 10% to $722.1. million. Lithium sales up 58% to $216.3 million, bromine sales up 12% to $219.2 million, catalyst sales up 9% to $185.4 million, advanced materials sales down 14% to $68.1 million. Operating income: lithium up 56% to $99.9 million, bromine up 11% to $68.5 million, catalyst down 10% to $49.6 million, advanced materials down 11% to $20.2 million.

Altria 

1/2/12:  Buy Philip Morris - Sell Altria

Background
Altria, formerly Philip Morris Companies, produces Marlboro, Parliament, Virginia Slims, and Basic brand cigarettes. Acquired cigar maker John Middleton, maker of Black & Mild, in 2007. Acquired smokeless tobacco maker UST, maker of Copenhagen and Skol, in 2009. Also owns 29% of brewer SABMiller. Spun off food maker Kraft Foods in 2007 and its international tobacco unit, Philip Morris International, in 2008. International Trade Commission ruled that the Customs and Border Protection Agency must block entry into the U.S. of illegally imported Marlboro, Virginia Slims, and Parliament brand cigarettes. The ruling was aimed at foreign sellers taking Internet orders from the U.S. 

Quarterly Reports 

1/27/12:  Altria reported December quarter earnings (adjusted) of $0.50 per share, $0.01 above analysts' forecasts and 14% above the year-ago quarter. Revenues (all excluding excise taxes) rose 5% to $4.35 billion. Cigarette sales rose 4% vs. year-ago to $3.63 billion. Smokeless tobacco products sales up 7% to $391 million. Cigar sales up 27% to $90 million. Wine sales up 10% to $160 million. Financial services income down 86% to $10 million.

September '11: EPS $0.57, up 6% vs. year-ago. Revenues (all excluding excise taxes) down 3% to $4.33 billion. Cigarette sales down 6% vs. year-ago to $3.64 billion. Smokeless tobacco products sales up 10% to $398 million. Cigar sales up 21% to $109 million. Wine sales up 25% to $127 million. Financial services income up 100% to $83 million. In August, dividend up 8% to $0.41.

June '11: EPS (adjusted) $0.53, up 6%. Revenues (excluding taxes) $3.88 billion, up 4%. Cigarette sales up 4% to $3.88 billion. Smokeless tobacco products up 4% to $377 million. Cigar sales down 5% to $95 million. Wine sales up 10% to $112 million. Financial services income $27 million, down 31%. Earnings call transcript. The FDA initiated a requirement that cigarette makers must display grisly images depicting the dire results of smoking on cigarette packages as part of a campaign to discourage smoking.

March '11: EPS (adjusted) $0.45, up 5% Revenues (excludin taxes) even at $3.94 billion. Cigarette sales even at $3.41 billion. Smokeless tobacco products down 1% to $353 million. Cigar sales down 24% to $66 million. Wine up 7% to $97 million. Financial services income $21 million, even. 

December '10: EPS (adjusted) $0.44, up 13%. Revenues (excl. taxes) down 1% to $4.04 billion. Cigarette sales down 2% vs. to $3.49 billion. Smokeless tobacco products up 16% to $366 million. Cigars down 17% to $71 million. Wine up 16% to $146 million. Financial services income $70 million vs. $10 million. Earnings call transcript. 

September '10: EPS $0.54, up 13%. Revenues up 3% to $4.46 billion. Cigarette sales up 4% to $3.88 billion. Smokeless tobacco products up 11% to $363 million. Cigar sales down 9% to $90 million. Wine up 3% to $102 million. Financial services income $27 million. vs. $57 million. Earnings call transcript. In August, dividend up 9% to $0.38.   

June '10: EPS (adjusted) $0.50, even. Excluding non-recurring, EPS $0.50 vs. $0.49. Revenues down 7% vs. to $6.27 billion. Cigarette sales down 6% to $3.74 billion. Smokeless tobacco products up 4% to $363 million. Cigars up 35% to $100 million. Wine up 15% to $102 million. Financial services income $39 million. vs. $83 million. Earnings call transcript. Raised $800 million by selling 4.125% notes due in 2015.  

March '10: EPS (adjusted) $0.42, up 8%. Revenues up 32% to $5.12 billion. Cigarette sales up 6% to $3.39 billion. Smokeless tobacco products up 24% to $355 million. Cigars down 12% to $87 million. Wine up 26% to $91 million. Financial services income $21 million. Earnings call transcript. Filed lawsuits against retailers in New York and New Jersey for selling counterfeit Marlboro brand cigarettes. Raised dividend payout target from 75% to 80% of adjusted EPS. In February, dividend up 3% to $0.35.

December '09: EPS (continuing) $0.39, up 5%. Including non-recurring, EPS $0.09 vs. $0.37. Revenues up 7% to $4.10 billion. Cigarette sales down 5% to $3.54 billion. Smokeless tobacco products $317 million vs. zero. Cigars up 6% to $86 million. Wine sales $132 million and financial services income $10 million. Earnings call transcript. Sued 10 retailers selling counterfeit versions of Marlboro brand cigarettes in New York and New Jersey.

September '09: EPS (adjusted) $0.48, up 4%. Revenues up 9% to $3.73 billion. Cigarette sales up 11% to $3.73 billion. Smokeless tobacco products $326 million vs. zero. Cigars up 18% to $99 million. Wine $102 million and financial services income $57 million. Earnings call transcript. In August, dividend up 6% to $0.34. 

June '09: EPS $0.49, up 9%. Revenues +33% to $6.72 billion. Cigarette sales +23% to $6.02 billion. Smokeless tobacco products $373 million vs. zero. Cigars +17% to $11.8 million. Wine $94 million and financial services $110 million. Federal appeals court upheld requirements that ban terms such as "low tar," "light," "ultra light" or "mild" on cigarette labels.   

March '09: EPS Continuing $0.28 vs. $0.29. Revenues +3% to $4.52 billion. Cigarette sales -8% to $3.90 billion. Smokeless products $298 million vs. zero. Cigars +25% to $115 million. Completed acquisition of UST, which made smokeless tobacco products under Copenhagen and Skol brands. As part of the transaction, also acquired Ste. Michelle Wine Estates, a premium wine business.  

December '08: EPS (continuing) $0.33, down 15%. Revenues +3% to $4.65 billion. In August, dividend up 10% to $0.32. US Supreme Court ruled that cigarette companies can be sued in state lawsuits for deceptive advertising in the marketing of "light" cigarettes.

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AT&T

1/1/21:  AT&T has underperformed and we don't see a turnaround coming. 

In November, AT&T's Warner Media unit said it would release its entire 2021 slate of films directly on its HBO Max streaming service at the same time they hit theaters. 

Background
AT&T, the largest U.S. telecom company, offers wireless and wireline services to retail, enterprise and wholesale customers. In June 2018, AT&T acquired Time Warner, adding diversified media and entertainment services to its offerings. Major business units now include Mobiity (wireless phone) 39% of revenues, Entertainment Group (DirectTV, cable & fiber TV, residential landline phone) 25%, Warner Media (HBO, Turner, Warner Bros) 19%, and Business Wireline 14%. 

Quarterly Reports   

September '20: EPS $0.76, down 19% vs. year-ago. Total revenues down 9% vs. year-ago to $42.3 billion. Mobility revenues up 1% to $17.9 billion. Entertainment Group revenues down 10% to $10.1 billion. Business wireline revenues down 3% to $6.3 billion. Warner Media revenues down 10% to $7.5 billion.

June '20: EPS (adjusted) $0.83, down 7%. Total revenues down 9% to $41.0 billion. Mobility revenues down 1% to $17.2 billion. Entertainment Group revenues down 11% to $10.1 billion. Business wireline revenues down 4% to $6.4 billion. Warner Media revenues down 23% to $6.8 billion. In April, CEO Randall Stephenson said he would retire effective 6/30. John Stankey, then COO, replaced Stephenson. 

March '20: EPS $0.84, down $0.02. Total revenues down 5% to $42.779 billion. Mobility revenues even at $14.4 billion. Entertainment Group revenues down 7% to $10.5 billion. Business wireline revenues down 2% to $6.3 billion. Warner Media revenues down 11% to $7.4 billion.

December '19: EPS (adjusted) $0.89, up 4%. Total revenues down 2% to $46.82 billion. Mobility revenues up 1% to $18.7 billion. Entertainment Group revenues down 7% to $11.2 billion. Business wireline revenues down 1% to $6.6 billion. Warner Media revenues down 7% to $7.1 billion. In December, dividend up 2% to $0.52. Sold Puerto Rican and U.S. Virgin Islands businesses to Liberty Latin America for $1.95 billion in cash.

September '19: EPS (adjusted) $0.94, up 4%. Total revenues down 2% to $44.6 billion. Mobility revenues flat at $17.7 billion. Entertainment Group revenues down 3% to $11.2 billion. Business wireline revenues down 3% to $6.5 billion. Warner Media revenues down 4% to $7.8 billion. Activist investor Elliott Management Corp said it held $3.2 billion of AT&T stock and urged AT&T to end its acquisition spree and focus on improving its business.

June '19: EPS (adjusted) $0.89, down $0.02. Total revenues up 15% to $45.0 billion (including Time Warner acquisition). Mobility revenues up 1% to $17.5 billion. Entertainment Group revenues down 1% to $11.4 billion. Business wireline revenues flat at $6.6 billion. Warner Media revenues $8.35 billion. In April, AT&T said that it was offering 5G Internet service in 19 U.S. cities, and was the only carrier offering 5G service in those cities.

March '19: EPS (adjusted) $0.86, up $0.01. Total revenues up 18% to $44.83 billion (including Time Warner acquisition). Mobility revenues up 1% to $17.6 billion. Entertainment Group revenues down 1% to $11.3 billion. Business wireline revenues down 4% to $6.5 billion. Warner Media revenues $8.4 billion. 

December '18: EPS (adjusted) $0.86, up 10%. Total revenues up 15% to $47.993 billion. Mobility revenues down 1% to $19.1 billion. Entertainment Group revenues down 3% to $12.1 billion. Business wireline revenues down 4% to $7.1 billion. Warner Media revenues up 6% to $9.2 billion. In December, dividend up 2% to $0.51 per share.

September '18: EPS (adjusted) up 22% to $0.90. Total revenues flat to $45.7 billion. (proforma including Time Warner). Mobility revenues up 5% to $18.2 billion. Entertainment Group revenues down 1% to $11.8 billion. Business wireline revenues down 4% to $6.7 billion. Warner Media revenues up 7% to $8.2 billion.

B&G Foods  

Starting with its March 2012 quarter, all of B&G Food's revenue growth has come from recently acquired products, not from sales of existing products.  For instance, in its most recent (September 2013) quarter, excluding recent acquisitions, sales dropped 4% vs. the year-ago quarter. Relying on acquisitions to keep revenues up is risky business. We're selling. 

In October, B&G raised its quarterly dividend by 3% to $0.33 per share, which was 14% above its year-ago payout.

In October, B&G agreed to pay $57.5 million in cash and stock to acquire Rickland Orchards. Formed in March 2012, Rickland, whose products include Greek yogurt coated granola bars and bites, does around $50 million in annual sales. 

Expected FY 12/2013 EPS Growth: 10%  Div/EPS Ratio:  86%

Background
In business for more than 115 years, B&G manufactures a diverse portfolio of packaged foods that it markets via independent brokers and distributors to supermarket chains, mass merchants, warehouse clubs and specialty food distributors in the U.S., Puerto Rico, and Canada. Wal-Mart, its biggest customer, accounts for 14% of sales. Brands include Ac'cent, B&G, Emerils, Trappey, Ortega, Grandma's, Brer Rabbit and Underwood. In 2007, B&G bought Kraft's hot cereal business, including the Cream of Wheat and Cream of Rice brands. In 2011, acquired Mrs. Dash, Molly McButter, Sugar Twin, Baker’s Joy, Static Guard and Kleen Guard brands from Unilever. B&G said 70% of dividends paid in 2011 were taxable (qualified: 15% max) and 30% were return of capital.    

Quarterly Reports 

September '13: EPS (excluding non-recurring) $0.35, even with year-ago. Revenues up 18% to $181.35 million. Excluding recent acquisitions, revenues down 4% vs. year-ago . Gross profit margin 33.8% of sales vs. year-ago 35.9%. Operating cash flow $27.217 million ($0.51/share) vs. year-ago $20.815 million ($0.24/share). Completed acquisition of Robert's American Gourmet Food, which marketed all-natural snack food products under the "Pirate Brands" label. In July, dividend up 10% to $0.32.    

June '13: EPS (adjusted) $0.33, even. Counting non-recurring, EPS -$0.03 loss. Revenues up 8% to $160.9 million. Excluding recent acquisitions, revenues down 1%. Gross profit margin 34.6% vs. 34.8%. Operating cash flow $18.569 million ($0.35/share) vs. $20.815 million ($0.43/share). Raised $688 million selling 4.625% senior notes, which it planed to use to pay off existing 7.625% notes. Acquired TrueNorth nut cluster brand of snack foods from DeMet`s Candy Company.

March '13: EPS $0.37, up 6%. Revenues up 9% to $171.2 million. Excluding recent acquisitions, revenues up 2%. Gross profit margin 34.4% of sales vs. 36.1%. Operating cash flow $23.107 million ($0.44/share) vs. $20.985 million ($0.44/share).   

December '12: EPS (adjusted) $0.32, up 7%. Revenues up 16% to $173.7 million. Excluding recent acquisitions, sales even vs. year-ago (Lower sales volumes offset unit price increases). Gross profit margin 34.2% vs. 32.9%. Operating cash flow $47.032 million ($0.89/share) vs. $32.740 million ($0.67/share). Completed acquisition of New York Style (Bagel Crisps) and Old London brands (Melba Toasts, etc.), including manufacturing plant in Yadkinville, North Carolina. Sold 4.2 million new shares at $30.25. In October, dividend up 7% to $0.29. 

September '12: EPS $0.35, up 40%. Revenues up 16% to $154.1 million. Recent acquisitions accounted for 99% of revenue growth. Gross profit margin 35.9% vs. 31.2%. Operating cash flow $11.696 million ($0.24/share) vs. $13.112 million ($0.27/share). 

June '12: EPS $0.33, up 27%. Revenues up 15% to $148.6 million. Recent acquisitions accounted for 100% of revenue growth. Gross margin 34.8% vs. 32.6%. Operating cash flow $20.815 million ($0.43/share) vs. $14.515 million ($0.30/share). Earnings call transcript. 

March '12: EPS $0.35, up 26%. Revenues up 20% to $157.3 million. Recent acquisitions accounted for 99% of revenue growth. Gross margin 36.1% vs. 34.1%. Operating cash flow $20.985 million ($0.43/share) vs. $11.666 million ($0.24/share). In February, dividend up 17% to $0.27.  

December '11: EPS (adjusted) $0.30, up 7%. Revenues up 6% to $150.0 million. Gross margin 32.9% vs. 33.2%. Operating cash flow $32.740 million ($0.67/share) vs. $37.736 million ($0.78/share). In October, dividend up 10% to $0.23.

September '11: EPS (adjusted) $0.25, up 25%. Revenues up 6% to $133.0 million. Gross margin 31.2% vs. 31.3%. Operating cash flow $13.112 million ($0.27/share) vs. $17.646 million ($0.36/share).

June '11: EPS $0.26, up 44%. Revenues up 7% to $129.4 million. Gross profit margin 32.6% vs. 32.5%. Operating cash flow $14.515 million ($0.30/share) vs. $21.619 million ($0.45/share).

March '11: EPS (adjusted) $0.27, up 23%. Revenues up 5% to $131.4 million. Gross profit margin 34.1% vs. 33.6%. Operating cash flow $11.7 million ($0.24/share) vs. $21.9 million ($0.46/share). In February, dividend up 24% to $0.21.

December '10: EPS (adjusted) $0.28 vs. 0.14. Excluding non-recurring, EPS $0.29 vs. $0.03. Revenues up 5% to $141.9 million. Gross profit margin 33.2% vs. 27.2%. Operating cash flow $37.7 million ($0.78/share) vs. $28.6 million ($0.60/share). Acquired Violet Packing fresh packed tomato products business, including the Sclafani, Don Pepino and Violet brands. Products include pizza and spaghetti sauces, crushed tomatoes, tomato puree and whole peeled tomatoes.

September '10: EPS (adjusted) $0.20, up 43%. Revenues up 1% to $125.1 million. Gross profit margin 31.3% vs. 29.2%. Operating cash flow $17.6 million ($0.36/share) vs. $17.0 million ($0.45/share).

June '10: EPS (adjusted) $0.19, up 27%. Counting non-recurring, EPS $0.18 vs. $0.17. Revenues down 1% to $121.1 million. Gross profit margin 32.5% of sales vs. 30.0%. Operating cash flow $21.6 million ($0.45/share) vs. $6.7 million ($0.19/share).    

March '10: EPS $0.22, up 22%. Gross profit margin 33.5% vs. 32.6%. Revenues up 6% to $125.2 million. Raised $339 million by selling 7.625% notes due in 2018. Redeemed $90 million of high interest debt (12% senior subordinated notes). 

December '09: EPS (continuing) $0.14, up 27%. Including debt retirement charges and other non-recurring, EPS $0.03 vs. -$0.03 loss. Gross margin 27.2% of sales vs. 25.7%. Revenues up 1% to $135.6 million. 

September '09: EPS $0.11, up 38%. Excluding non-recurring, EPS $0.14 vs. $0.05. Revenues +6% to $123.9 million. Gross margin 29.2% vs. 26.3%. Raised $86.9 million (net) by selling 11.5 million shares at $8.

June '09: EPS $0.17, up 70%. Excluding non-recurring, EPS $0.15, +50%. Revenues u+3% to $122.9 million.

March '09: EPS $0.16, up 33%. Excluding non-recurring, EPS $0.18, +50%. Revenues +2% to $116.6 million.

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Carnival

7/1/18:  Last month, Carnival report strong May quarter growth numbers, but warned that slowing demand would result in below year-ago numbers for the balance of the year. Industry reports also point to a slowdown demand for in cruise bookings, especially in the Caribbean. The increasing number of available cruise ships doesn't help. All that taken together points to further disappointing results from Carnival.

Carnival reported May quarter earnings (adjusted) of $0.68 per share, $0.08 above analyst forecasts, and up 31% vs. year-ago. Revenues up 13% to $4.4 billion. Operating cash flow $2,023 million ($2.83/share) vs. year-ago $1,917 million ($2.64/share). CCL expects August quarter EPS around $2.27 per share, down from year-ago $2.29 and below analyst's $2.47 forecast. For the full year 2018, CCL expects EPS around $4.20 per share, up 10% vs. year-ago, but below the $4.35 that analysts had been expecting. Lackluster bookings growth, higher fuel prices, and changes in currency exchange rates were blamed for the shortfalls. Of those, weak bookings growth is the only long-term issue..

6/7:  Carnival's Holland America Princess Alaska Tours unit is buying the White Pass & Yukon Route operations in Skagway, Alaska. Assets include the White Pass' port, and railroad and retail operations.

In April, Carnival increased its quarterly dividend by 11% to $0.50 per share, which was 25% above its year-ago payout.

Expected FY 2/2018 EPS Growth: 12%  CF Payout Ratio: 23%

Background
The largest company in the cruise industry, Carnival operates more than 100 cruise ships under 10 brands including Carnival, Princess, Costa, Aida, Holland America and Cunard. Carnival is actually two companies, Carnival Corporation listed in the NYSE, and Carnival plc, listed on the London Stock Exchange. However, the two operate as one entity, basically a general partnership between the two.

Quarterly Reports   

February '18: $0.52, up 37% vs. year-ago. Revenues up 12% to $4.232 billion. Operating cash flow $1,064 million ($1.48/share) vs. year-ago $912 million ($1.25/share).

November '17: (adjusted) $0.63 vs. $0.67. Revenues up 8% to $4.259 billion. Operating cash flow $1.42/share vs. $1.40. Hurricane disruptions cut EPS by $0.11.  Without hurricanes, EPS would have been up 10% vs. year-ago,.  In October, dividend up 12% to $0.45.

August '17: (adjusted) $2.29, up 19%. Revenues up 8% to $5.515 billion. Net occupancy 111.3% vs. 111.4%. Passengers carried up 5% to 3.441 million. Operating cash flow $1,449 million ($2.00/share) vs. $1,429 million ($1.93/share).

May '17: (adjusted) $0.52, up 6%. Revenues up 6% to $3.945 billion. Net occupancy 104.1% vs. 104.1%. Passengers carried up 4% to 2.906 million. Operating cash flow $1,917 million ($2.64/share) vs. $1,883 million ($2.50/share). In April, dividend up 14% to $0.40.

February '17: (adjusted) $0.38, down $0.01. Revenues up 4% to $3.791 billion. Net occupancy 104.6% vs. 104.0%. Passengers carried up 8% to 2.77 million. Operating cash flow $932 million ($1.28/share) vs. $798 million ($1.04/share). Fathom unit received approval from Cuba to add stops to Santiago de Cuba on upcoming cruises to the Dominican Republic. 

November '16: (adjusted) $0.67, up 34%. Revenues up 6% to $3.935 billion. Net occupancy 103.8% vs. 102.5%. Passengers carried up 12% to 2.92 million. Operating cash flow $1,024 million ($1.40/share) vs. $978 million ($1.16/share). Signed agreements to more than double size of CCL's Los Angeles, California area terminal. Among other advantages, the expansion would allow Carnival to operate larger ships from the terminal.

August '16: (adjusted) $1.92, up 10%. Revenues up 4% to $5.097 billion. Net occupancy 111.4% vs. 110.9%. Passengers carried up 6% to 3.3 million. Operating cash flow $1,429 million ($1.93/share) vs. $1,281 million ($1.64/share).

May '16: EPS $0.49, up 96%. Revenues up 3% to $3.705 billion. Operating cash flow $1,883 million ($2.50/share) vs. $1,515 million ($1.94/share).  Inaugurated service to Cuba. In April, dividend up 17% to $0.35. 

February '16: EPS (adjusted) $0.39, up 95%. Revenues up 6% to $3.651 billion. Operating cash flow $798 million ($1.04/share) vs. $771 million ($0.99/share).

November '15: EPS (adjusted) $0.50, up 85%. Revenues even at $3.711 billion. Operating cash flow $1,281 million ($1.26 per share) vs. $637 million ($0.82/share).

August '15: EPS (adjusted) $1.75, up 11%. Revenues down 1% to $34.883 billion. Operating cash flow totaled $1,281 million ($1.64/share) vs. $1,120 million ($1.44/share).

Caterpillar

June '21: EPS (adjusted )$2.60, up 104%. Revenues up 29% to $12.9 billion. Construction Industries revenues up 40% to $5,656 million. Resource Industries revenues up 41% to $2,579 million. Energy & Transportation revenues up 20% to$4,975 million. Dividend up 8% to $1.11.

March '21: EPS (adjusted) $2.77, up 40%. Revenues up 12% to $11.9 billion. Construction Industries revenues up 27% to $5,460 million. Resource Industries revenues up 6% to $2,220 million. Energy & Transportation revenues up 4% to$4,510 million.

Chemours

June '21: EPS 1.20 vs. $0.18. Revenues up 51% to $1.7 billion.  Titanium Technologies revenues up 76% to $859 million. Thermal & Specialized Solutions up 47% to $340 million. Advanced Performance Materials up 70% to $356 million. Chemical Solutions up 15% to $94 million. Free cash flow $189 million ($1.11/share) vs. $50 million ($0.30/share).

March '21: EPS (adjusted) $0.71, even with year-ago. Revenues up 10% to $1.44 billion. Titanium Technologies revenues up 18% to $723 million. Thermal & Specialized Solutions down 1% to $304 million. Advance Performance Materials up 14% to $333 million. Chemical Solutions down 17% to $76 million. Free cash flow -$21 million vs. -$62 million.

December '20: EPS (adjusted) $0.61, up 11%. Revenues down 1% to $1.337 billion. Free cash flow down 1% to $300 million. Titanium Technologies revenues up 13% to $691 million. Thermal & Specialized Solutions down 6% to $272 million. Advanced Performance Materials down 13% to $279 million. Chemical Solutions down 26% to $95 million.

Cinemark

9/1/17: Comcast, Apple and Amazon are reportedly jointly developing a premium video-on-demand (PVOD) service that would allow consumers to pay $30 to download movies only 30 to 45 days after a film has opened in theaters. Currently, movie theaters have exclusive rights for 90 days. The target date for the new PVOD service is January or February of 2018.  Whether that happens on schedule, and whether consumers are willing to pay $30 is unknown. Nevertheless, news headlines about PVOD will further sink movie theater stocks, including Cinemark.

Expected FY 12/2017 EPS Growth: -3% CF Payout Ratio: 26%

Background
Cinemark operates more than 330 movie theaters in the U.S. and more than 170 theaters in Latin America, which is a faster growing market. For instance, from 2007-2102, U.S. box office revenues grew only 2% annually compared to 15% growth in Latin America. Further, Cinemark, averaging 5% annual growth in the U.S. and 18% in Latin America, is gaining market share in both areas.

Quarterly Reports   

June '17: EPS $0.44, down $0.02 vs. year-ago. Revenues up 1% to $751.2 million. Admissions revenues down 1% to $449.9 million. Concession revenues up 3% to $262.3 million. U.S. revenues down 1% vs. year-ago to $554.9 million. International revenues up 7% to $199.9 million. Okay quarter considering the shortage of popular movies.

March '17: EPS $0.68, up 36%. Total revenues up 11% to $779.6 million. Admissions revenues up 9% to $476.5 million. Concession revenues up 13% to $268.2 million. U.S. revenues up 7% to $581.2 million. International revenues up 23% to $202.1 million. In February, dividend up 7% to $0.29.

December '16: EPS (adjusted) $0.65, up 30%. Revenues down 1% to $700.9 million. Admissions revenues down 1% to $424.4 million. Concession revenues up 2% to $237.3 million. U.S. revenues down 2% to $553.3 million. International revenues up 1% to $150.4 million.

September '16: EPS $0.56, up 40%. Revenues up 10% to $768.6 million. Admissions revenues up 9% to $472.9 million. Concession revenues up 14% to $261.4 million. U.S. attendance up 10% to 48.0 million. International attendance up 4% to 28.2 million.

June '16: EPS $0.46, down 25%. Revenues down 7% to $744.4 million. Admissions revenues down 9% to $446.1 million. Concession revenues down 2% to $253.6 million. U.S. attendance down 7% to 45.5 million. International attendance down 1% to 27.5 million.  

March '16: EPS $0.50, up 35%. Revenues up 9% to $704.9 million. Admissions revenues up 9% to $435.8 million. Concession revenues up 11% to $237.8 million. U.S. attendance up 7% to 44.5 million. International attendance up 17% to 28.0 million. In February, dividend up 8% to $0.27.

December '15: EPS $0.50, up 22%. Revenues up 7% to $707.2 million. Admissions revenues up 6% to $429.8 million. Concession revenues up 8% to $232.8 million. U.S. attendance up 3% to 45.3 million. International attendance down 1% to 21.6 million. 

September '15: EPS $0.40, up 21%. Revenues up 8% to $700.1 million. Admissions revenues up 7% to $432.2 million. Concession revenues up 9% to $230.2 million. U.S. attendance up 2% to 43.8 million. International attendance up 16% to 27.2 million.  

June '15: EPS $0.61, down $0.01. Revenues up 11% to $799.9 million. Admissions revenues up 10% to $503.0 million. Concession revenues up 15% to $259.5 million. U.S. attendance up 5% to 49.0 million. International attendance up 15% to 27.7 million.

March '15: EPS $0.37, up 19%. Revenues up 7% to $645.4 million. Admissions up 5% to $400.7 million. Concession up 11% to $214.4 million. U.S. attendance up 2% to 41.0436 million. International attendance up 15% vs. to 24.0 million.

December '14: EPS $0.41 vs. $0.13. Revenues up 1% to $659.9 million. Admissions down 2% to $404.7 million. Concessions up 6% to $214.8 million. U.S. attendance down 2% to 173.9 million. International attendance down 10% to 90.0 million.  

September '14: EPS $0.33 vs. $0.69. Revenues down 15% to $646.9 million. Admissions down 16% to $402.8 million. Concessions down 13% to $211.1 million. U.S. attendance down 15% to 42.9 million. International attendance down 23% to 23.3 million.

June '14: EPS $0.62 vs. $0.81 (operating). Revenues down 1% to $717.9 million. Admissions down 2% to $455.7 million. Concessions down 1% to $226.4 million. U.S. attendance down 1% to 46.5 million. International attendance down 9% to 24.0 million.

March '14: EPS $0.31, up 11%. Revenues up 10% to $602.3 million. Admissions up 9% to $380.9 million. Concessions up 12% to $193.0 million. U.S. attendance up 17% to 40.8 million. International attendance down 8% to 20.9 million. Excluding theaters in Mexico, which were sold, international attendance up 12%. At March 31, operated 486 theatres with 5,595 screens and had commitments to open 15 new theatres with 132 screens during the remainder of 2014.

December '13: EPS $0.13 vs. $0.24. Revenues up 7% to $651.9 million. Admissions up 7% to $412.6 million. Concessions up 6% to $201.8 million. U.S. attendance up 11% to 45.0 million, but international attendance down 14% vs. year-ago to 19.8 million.

September '13: EPS $0.69, up 68%. Revenues up 20% to $757.6 million. Admissions up up 19% to $479.65 million and concessions up 21% to $242.3 million. U.S. attendance up 23% to 50.604 million and international attendance up 7% to 28.508 million. Opened 12-screen theater in Spring, Texas, a combination restaurant and six-screen theater in Edinburg, Texas, and a 14-screen theater in Cincinnati, Ohio. Completed sale of three theaters to comply with Justice Department requirements arising from acquisition of Rave Cinemas chain. In August, dividend up 19% to $0.25.

June '13: EPS (continuing) up 82% to $0.82. Revenues up 12% to $725.6 million. Admissions up 11% to $464.5 million and concessions up 14% to $228.7 million. U.S. attendance up 12% to 46.889 million, but international attendance down 1% vs. year-ago to 26.463 million. Acquired 32 theaters from Rave Cinemas for $240 million. Opened a 10-screen theater in Louisville, Kentucky. Raised $530 million in a note sale. 

March '13: EPS $0.28, down 24%. Revenues down 5% to $547.8 million. Admissions revenues down 7% to $349.4 million. Concession revenues down 4% to $172.4 million. U.S. attendance down 13% to 34.668 million, but international attendance up 5% to 22.751 million.

Covanta Holdings

3/1/15:  Covanta Holdings (CVA) expects to report below year-ago earnings and cash flow numbers this year, which translates to no dividend growth and weak share price action. We're selling Covanta.

Covanta reported December quarter earnings (adjusted) of $0.06 per share, $0.06 below analyst forecasts and down from $0.18 in the year-ago quarter. Total revenues rose 3% to $435 million. Waste & service revenues up 2% to $272 million. Energy revenues up 1% to $110 million. Recycled metals revenues flat at $21 million. Operating cash flow $76 million ($0.58/share) vs. year-ago $49 million ($0.38/share). Covanta is forecasting below year-ago cash flow numbers for 2015. Blames lower energy and scrap metal prices.

Expected FY 12/2015 EPS Growth: 0%  Div/CF Ratio: 51%

Background
Covanta contracts with municipalities to collect waste materials and then converts the collected waste to electricity via an incineration process. It currently operates 45 such facilities. Although public since 1992, Covanta only started paying regular dividends in March 2011. Since then, however, Covanta has embraced the concept. It doubled its payout in 2012, increased it by 10% in 2013, hiked it by 9% in March 2014 and then announced a 36% hike to take effect in September 2014.

Quarterly Reports 

September '14: EPS  (adjusted) $0.26 vs. year-ago $0.28. Total revenues down 5% to $425 million. Waste & service revenues down 1% to $252 million. Energy revenues up 3% to $120 million. Recycled metals revenues up 32% to $26 million. Operating cash flow $121 million ($0.92/share) vs. year-ago $178 million ($1.36/share). Finalized deal to construct, own, and operate an "Energy-from-Waste" facility in Dublin, Ireland. In September, dividend up 39% to $0.25.

June '14: EPS (adjusted) $0.06 vs. $0.12. Total revenues up 5% to $432 million. Waste & service revenues up 4% to $267 million. Energy revenues up 7% to $110 million. Recycled metals revenues up 47% to $25 million. Operating cash flow $40 million ($0.31/share) vs. $33 million ($0.25/share). Announced cost savings initiatives that it expected to cut expenses by around $30 million ($0.23/share) in 2015. Agreed with City of Indianapolis to build recycling center. In June, dividend up 36% to $0.25 starting with September quarter payout.

March '14: EPS (adjusted) -$0.03 vs. -$0.19. Total revenues up 8% to $401 million. Waste & service revenues up 5% to $241 million. Energy revenues up 18% to $120 million. Recycled metals revenues up 31% to 21 million. Operating cash flow $103 million ($0.80/share) vs. $64 million ($0.49/share). In February, dividend up 9% to $0.18.

December '13: EPS (adjusted) $0.21 vs. $0.64. Total revenues down 2% to $422 million. Waste & service revenues up 1% to $266 million. Energy revenues up 12% to $109 million. Recycled metals revenues up 23% to 21 million. Operating cash flow $316 million ($2.43/share) vs. year-ago $342 million ($2.59/share).

Cracker Barrel

4/1/17:  For reasons unclear, restaurant sales, industry wide, are declining and no turnaround is in sight. Consequently, Cracker Barrel, despite great management, will likely report disappointing results until that trend reverses.  It's time to sell Cracker Barrel.

Sign of the times: Cracker Barrel, as old fashioned as you can get in terms of ambience and menu, is rolling out an online ordering system so that customers will be able to order and pay for takeout orders through their cell phones. 

Expected FY 1/2018 EPS Growth: 5%  CF Payout Ratio: 40%

Background
Cracker Barrel Old Country Store operates more than 600 restaurants with attached gift stores designed to look like old-fashioned general stores in 26 states. Restaurants serve traditional Southern style breakfasts, lunches and dinners. In recent years, CBRL has been raising dividends around 30% annually.

Quarterly Reports 

January '17: EPS $2.19, up 15% vs. year-ago (adjusted). Total revenues up 1% to $772.7 million. Restaurant sales up 1.8% to $573.7 million. Retail store sales down 0.8% to $181.6 million. Same store restaurant sales up 0.6% vs. year-ago, but retail sales down 2.2%.

October '16: EPS $2.01, up 18%. Total revenues up 1% to $710.0 million. Restaurant sales up 2.0% to $573.7 million. Retail store sales down 2.9% to $136.3 million. Same store restaurant sales up 1.3%, but store sales down 4.0%. Operating cash flow (OCF) $34.938 million ($1.03/share) vs. loss.

July '16: EPS $2.12,up 8%. Total revenues up 4% to $745.6 million. Restaurant sales up 3.6% to $609.5 million. Retail store sales up 3.9% to $136.1 million. Same store restaurant and store sales up 3.2% and 3.5%. Operating cash flow (OCF) $137.135 million ($5.69/share) vs. $117.375 million ($4.87/share). In May, dividend up 5% to $1.15. Also declared special $3.25 dividend, below year-ago $4.10 special payout.

April '16: EPS (adjusted) $1.82, up 22%. Total revenues up 2% to $700.142 million. Restaurant sales up 2.4% to $570.5 million. Retail store sales up 1.0% to $129.7 million. Same store restaurant and store sales up 2.3% and 2.2%. Operating cash flow (OCF) $53.630 million ($3.74/share) vs. $63.614 million ($1.59/share). Planned to open new chain of fast casual restaurants, "Holler & Dash Biscuit House." The first H&B store opened in March.

January '16: EPS (adjusted) $1.91, down $0.02. Total revenues up 1% to $764.0 million. Restaurant sales up 0.6% to $580.9 million. Retail store sales up 2.6% to $183.1 million. Same store restaurant and store sales up 0.6% and 2.6%. OCF $89.968 million ($3.74/share) vs. $116.337 million ($4.83/share).

October '15: EPS $1.70, up 20%. Total revenues up 3% to $702.6 million. Restaurant sales up 3% to $562.3 million. Retail store sales up 3% to $136.7 million. Same store restaurant and store sales up 2.5% and 2.4%. OCF -$4.355 million (-$0.18/share) vs. $36.729 million ($1.53/share).

July '15:  EPS $1.98, up 21%. Total revenues up 4% to $719.2 million. Restaurant sales up 4% to $588.2 million. Store sales up 1% to $130.9 million. Same store restaurant and store sales up 3.8% and 0.6%. OCF  $117.375 million ($4.87/share) vs. $90.687 million ($3.78/share).  Added to S&P SmallCap 600 Index on July 1. In May, dividend up 10% to $1.10, plus declared $3.00 special dividend.

April '15: EPS (adjusted) $1.49, up 21%. Total revenues up 6% to $683.7 million. Restaurant sales up 6% to $577.1 million. Store sales up 6% to $126.6 million. Same store restaurant and store sales up 5.2% and 4.5%. OCF  $63.614 million ($2.64/share) vs. $24.033 million ($1.59/share).

January '15: EPS (adjusted) $1.93, up 24% . Total revenues up 8% to $756.0 million. Restaurant sales up 9% to $577.6 million. Store sales up 5% to $178.4 million. Same store restaurant and store sales up 7.9% and 3.2%. OCF  $116.337 million ($4.84/share) vs. $72.136 million ($3.00/share).

October '14: EPS (adjusted) $1.42, up 16%. Total revenues up 5% to $683.4 million. Restaurant sales up 5% to $546.7 million. Gift store sales up 7% to $136.7 million. Same store restaurant and store sales up 3.3% and 6.1%. OCF $36.729 million ($1.53/share) vs. -$9.231 million (-$0.39/share).

Cummins

7/1/18:  Although based in Columbus, Indiana, Cummins imports small diesel engines and engine components from its own plants in China to sell in the U.S. for use at its domestic plants. Surprisingly, according to the Wall Street Journal, beginning July 6, those products will be subject to a 25% tariff at the U.S. border. But that's just the beginning. Cummins, which sells products in 190 countries, is likely to see its products subjected to additional tariffs if the "trade war" escalates. .

Cummins said it is acquiring Silicon Valley-based Efficient  Drivetrains, Inc., which develops and markets drivetrains (connects engines to wheels) for hybrid and fully-electric trucks and other commercial vehicles. Cummins didn't disclose any financial details. 

Expected FY 12/2018 EPS Growth: 25%  CF Payout Ratio: 32%

Background
Cummins manufactures, distributes and services diesel and natural gas engines and related items, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Its Engine unit produces diesel and natural gas powered engines.  Its Distribution unit distributes parts, engines, and power generation products. Its Components offers custom engineering systems. Its Power Generation unit offers components for power generators and related products.

Quarterly Reports   

March '18: EPS (adjusted) $2.43, up 3% vs. year-ago. Revenues up 21% to $5.57 billion. Engine sales up 21% to $2.4 billion. Distribution sales up 13% to $1.9 billion. Component sales up 30% to $1.8 billion. Power Systems sales up 22% to $1.1 billion. Gross margin 21.5% of sales vs. year-ago 24.7% (higher is better). Messy quarter but sales growth was impressive. Acquired Johnson Matthey’s UK automotive battery systems business, that specialized in high-voltage automotive grade battery systems for electric and hybrid vehicles. Agreed to collaborate with Johnson Matthey on development of high energy battery materials for commercial heavy duty applications.

December '17: EPS (adjusted) $3.03, up 35%. Revenues up 22% to $5.5 billion. Engine sales up 16% to $2.3 billion. Distribution sales up 16% to $1.9 billion. Component sales up 32% to $1.6 billion. Power Systems sales up 18% to $1.1 billion. Gross margin 25.1% of sales vs. 24.9%. Lower income tax rate boosted EPS (adjusted) by unknown amount.

September '17: EPS $2.71,June up 58%. Revenues up 26% to $5.285 billion. Engine sales up 26% to $2.3 billion. Distribution sales up 17% to $1.6 billion. Component sales up 34% to $1.5 billion. Power Systems sales up 23% to $1.1 billion. Gross margin 25.3% vs. 25.8%. Entered a joint venture with Eaton Corporation that will produce medium-duty and heavy-duty automated transmissions for commercial vehicles.

June '17: EPS $2.53, up 5%. Revenues up 12% to $5.078 billion. Engine sales up 15% to $2.3 billion. Distribution sales up 12% to $1.7 billion. Component sales up 14% to $1.5 billion. Power Systems sales up 10% to $1.0 billion. Gross margin 24.6% of sales vs. 26.4%.

CVS Health

About the only thing that Republicans and Democrats agree on is that prescription drug prices are too high. Thus, a week or so ago, shares of  CVS Health as well as most health insurers dropped on word that the U.S. Senate is considering a plan to reform the industry-wide system of rebates that benefit pharmacy benefit managers and health insurers. CVS operates a big pharmacy benefit manager business. If for no other reason than the political season is approaching, this issue isn't going away anytime soon.  

June '21: EPS $2.42, down $0.22. Total revenues up 11% to $72.62 billion. Pharmacy Services revenues up 10% to $38.314 billion. Retail revenues up 14% to $24.728 billion. Health care benefits revenues up 11% to $20.525 billion. Formed a new business unit, CVS Health Clinical Trial Services, which would manage certain aspects of clinical trials, such as volunteer recruitment, for pharmaceutical companies. Kentucky's attorney general sued CVS Health, accusing it of flooding the state with prescription opioids.

March '21: EPS (adjusted) $2.04, up 7%. Total revenues up 3.5% to $69.10 billion. Pharmacy Services revenues up 4% to $36.321 billion. Retail revenues up 2% to $23.274 billion. Health care benefits revenues up 7% to $20.483 billion.

December '20: EPS (adjusted) $1.30, down 27%. Total revenues up 4% to $69.55 billion. Pharmacy Services revenues down 2% to $36,355 billion. Retail revenues up 7% to $24.0625 billion. Health care benefits revenues up 11% to $19.103 billion.

September '20: EPS (adjusted) $1.66, down 10%. Total revenues up 4% to $67.1 billion. Pharmacy Services revenues down 1% to $35,711 billion. Retail revenues up 6% to $22.725 billion. Health care benefits revenues up 9% to $18.698 billion.

June '20: EPS $2.64, up 56%. Total revenues up 3% to $65.34 billion. Pharmacy Services revenues flat at $34.889 billion. Retail revenues up 1% to $21.662 billion. Health care benefits revenues up 6% to $18.468 billion.

March '20: EPS (adjusted) $1.91, up 18%. Total revenues up 8% to $66.8 billion. Pharmacy Services revenues up 4% to $34.983 billion. Retail revenues up 12% to $22.749 billion. Health care benefits revenues up 7% to $19.198 billion. Operating cash flow $3,305 million vs. year-ago $1,948 million.

CVS reported December quarter earnings (adjusted) of $2.14 per share, $0.09 above analyst forecasts, and up 11% vs. year-ago. Revenues up 13% to $54.42 billion. Pharmacy Services revenues up 2% to $34.89 million. Expects full year 2019 EPS around $6.78, down 4% vs. 2018. 

In November, CVS completed its acquisition of Aetna, the U.S.’ third largest health insurer. The acquisition is consistent with CVS’ strategy to morph from a drugstore chain to a full-service healthcare provider. However, the federal judge who had been asked to sign off on the government's decision to approve the acquisition indicated that he may ask integration of the companies be halted pending his decision.

In November, CVS said that it planned to roll out a few pilot stores early next year that will offer healthcare services such as blood draws, nutrition and exercise counseling, CVS will dedicate at least 20% of the floor space currently occupied by "front of the store" health and beauty items to the healthcare services.

Expected FY 12/2019 EPS Growth: -3%  FY 2019 P/E: 8

Background
Operates more than 9,800 retail stores and 1,100 walk-in health clinics. CVS also operates a major pharmacy benefits manager with 94 million members. In November 2017, CVS agreed to acquire Aetna, the U.S.’ third largest health insurer. The acquisition is consistent with CVS’ strategy to morph from a drugstore chain to a full-service healthcare provider.

Quarterly Reports   

September '18: EPS (adjusted) $1.73, up 15% vs. year-ago. Revenues up 2% to $47.3 billion. Same store sales up 7%, pharmacy same store sales up 9%. Aetna acquisition expected to close in November.

June '18: EPS (adjusted) $1.69 per share, $0.08 above analyst forecasts, and up x% vs. year-ago. Revenues up 2% to $46.7 billion. . Same store sales up 6%, pharmacy same store sales up 8%.

Dow Inc.

We're advising selling Dow, Inc. See write-up at top for details.

Dow reported March quarter earnings (adjusted) of $0.59 per share, $0.01 above analyst forecasts, and down 40% vs. year-ago (pro forma). Revenues down 11% to $9.77 billion. Performance Materials & Coatings sales down 11% to $2.065 billion. Industrial & Infrastructure sales down 13% to $3,045 billion. Packaging & Specialty sales down 10% to $4.609 billion. Operating cash flow (adjusted) $1,236 million ($2.59 per share) vs. $1,043. Mixed but mostly disappointing report to begin with, plus expects 8% June Q revenue drop vs. March.

Conglomerate DowDupont completed its spinoff of Dow, Inc. on 4/2/19.

Background
Dow, Inc. was spun-off in April 2019 from DowDupont, which itself was formed by the 2017 merger of Dow and DuPont. Dow Inc. manufactures three categories of chemical products; performance materials, industrial intermediates, and plastics. Dow operates 113 manufacturing sites in 31 countries and employs approximately 37,000 people. Dow delivered pro forma sales of $49 billion in 2018.

Quarterly Reports 

March '20: EPS (adjusted)

December '19: EPS (operating) $0.78, $0.04 above analyst forecasts. Revenues down 15% vs. year-ago (pro-forma) to $10.204 billion. Performance Materials & Coatings sales down 10% to $2.035 billion. Industrial & Infrastructure sales down 14% to $3.523 billion. Packaging & Specialty sales down 18% to $4.840 billion. Operating cash flow (adjusted) $1,920 million ($2.59 per share).  

September '19: EPS (operating) $0.91, down 32% (pro forma). Revenues down 15% vs. year-ago (pro-forma) to $10.764 billion. Performance Materials & Coatings sales down 12% to $2.250 billion. Industrial & Infrastructure sales down 14% to $3.365 billion. Packaging & Specialty sales down 18% to $5.062 billion. Operating cash flow (adjusted) $1,790 million ($2.41 per share).

June '19: EPS (operating) $0.86, $0.02 above analyst forecasts. Revenues down 14% vs. year-ago (pro-forma) to $11.01 billion. Performance Materials & Coatings sales down 12% vs. year-ago to $2.356 billion. Industrial & Infrastructure sales down 16% to $2.342 billion. Packaging & Specialty sales down 15% to $5.205 billion. Operating cash flow $960 million ($1.28 per share). In April, Declared first quarterly dividend at $0.70.

March '19: EBITDA of $481 million, down 18% vs. year-ago. Revenues down 10% to $10.8 billion. Performance Materials & Coatings sales down 2% to $2.255 billion, Industrial & Infrastructure sales down 8% to $3.402 billion, Packaging & Specialty sales down 15% to $5.110 billion. Numbers reflect results while still part of DowDupont, so aren't relevant.

E.I. DuPont de Nemours   

7/14:  These days, agriculture (seeds and associated products) is DuPont's main growth driver. Monsanto is its main competitor in this business. Until recently, DuPont was regularly stealing market share from Monsanto. But no more. Monsanto has got its act together, and as its recent forecast cut demonstrates, DuPont's sales are suffering. Time to sell DuPont. 

Blaming lower than expected corn seed and other agricultural product sales, DuPont cut its June quarter and full year operating profit forecasts.

In May, DuPont said it was considering alternatives, such as an outright sale, to its previously announced plan to spin-off its Performance Chemicals business.

Expected FY 12/2014 EPS Growth: 6%  Div/CF Ratio: 35%

Background
DuPont, a diversified chemical company, operates in five business segments; agriculture and nutrition, coating and color technologies, electronic and communications technologies, performance materials, and safety and protection. Its brands include Pioneer Hi-Bred, Tyvek, Kevlar, and Corian. Although it sold its pharmaceutical product line in 2001, DuPont still receives major royalty income from two hypertension drugs Cozaar and Hyzaar.

Quarterly Reports 

March '14: EPS (operating) $1.58, up $0.02 vs. year-ago. Revenues down 3% to $10.145 billion. Agriculture sales down 6% vs. year-ago to $4.394 billion. Performance Materials up 2% to $1.593 billion. Performance Chemicals down 3% to $1.532 billion. Safety & Protection up 4% to $947 million. Nutrition & Health down 1% to $861 million. Electronic & Communications down 6% to $580 million. Industrial Biosciences up 4% to $301 million. Operating cash flow -$2.421 million ($2.60/share) vs. year-ago -$2.667 million (-$2.85/share).

December '13: EPS (continuing) $0.19 vs. breakeven. Revenues up 3% to $7.836 billion. Agriculture sales up 18% to $1.806 billion. Electronic & Communications up 3% to $642 million. Industrial Biosciences up 9% to $326 million. Nutrition & Health up 2% to $872 million. Performance Chemicals up 2% to $1.616 billion. Performance Materials up 3% to $1.576 billion. Safety & Protection up 1% to $975 million. Operating cash flow $5,514 million ($5.90/share) vs. $5,275 million ($5.57/share). Sold glass-laminating products business for $543 million.

September '13: EPS (operating) $0.45, up 5%. Revenues up 5% to $7.735 billion. Agriculture sales up 15% to $1.633 billion. Electronic & Communications up 5% to $638 million. Industrial Biosciences up 4% to $305 million. Nutrition & Health sales down 1% to $868 million. Performance Chemicals down 1% to $1.720 billion. Performance Materials up 3% to $1.663 billion. Safety & Protection up 5% to $985 million. Operating cash flow $291 million ($0.31/share) vs. $691 million ($0.73/share). Entered joint venture with BP to retrofit an ethanol plant in Minnesota to produce "biobutanol," which, like ethanol, is made from corn, but has lower greenhouse gas emissions and can be blended into gasoline at twice the percentage of ethanol without negative impact. 

June '13: EPS (operating) $1.28 vs. $1.50. Revenues down 2% to $10.003 billion. Agriculture up 7% to $3.631 billion. Electronic & Communications down 18% to $653 million. Industrial Biosciences up 1% to $304 million. Nutrition & Health down 2% to $865 million. Performance Chemicals down 9% to $1.782 billion. Performance Materials down 2% to $1.670 billion. Safety & Protection up 3% to $1.017 billion. Operating cash flow $36 million ($0.04/share) vs. $760 million ($0.81/share). DuPont and OCP Group formed a joint venture, DuPont OCP Operations Consulting, to offer consulting and training services to firms in Africa. In April, dividend up 5% to $0.45.

March '13: EPS (operating) $1.56 vs. $1.64. Revenues up 2% to $10.408 billion. Agriculture  up 14% to $4.669 billion. Electronic & Communications Technologies down 9% to $616 million. Industrial Biosciences $289 million, even. Nutrition & Health up 7% to $868 million. Performance Chemicals down 17% to $1.585 billion. Performance Materials down 3% to $1.559 billion. Safety & Protection down 4% to $907 million. Operating cash flow -$2,667 million (-$2.85/share) vs. -$1,877 million (-$1.99/share). Completed sale of performance coatings unit (see September '12).

December '12: EPS (continuing, excluding significant items) $0.11 vs. 0.26. Revenues down 1% to $7.572 billion. Agriculture up 22% to $1.54 billion. Electronic & Communications Technologies down 1% to $622 million. Industrial Biosciences up 4% to $300 million. Nutrition & Health up 6% to $853 million. Performance Chemicals down 15% to $1.59 billion. Performance Materials down 5% to $1.53 billion. Safety & Protection up 2% to $984 million. Operating cash flow $5,320 million ($5.65/share) vs. $4,721 million ($5.04/share).

September '12: EPS (continuing, excluding significant items) $0.32 vs. $0.60. Revenues (continuing) down 9% to $7.4 billion. Agriculture  up 4% to $1.42 billion. Electronic & Communications Technologies down 28% to $607 million. Industrial Biosciences $292 million, even. Nutrition & Health up 4% to $876 million. Performance Chemicals down 19% to $1.73 billion. Performance Materials down 3% to $1.61 billion. Safety & Protection down 7% to $934 million. Operating cash flow $641 million ($0.68/share) vs. $1,075 million ($1.14/share). Sold performance coatings unit for $4.9 billion. A relatively slow grower, DuPont had the unit, which generated around $4 billion in annual revenues, on the market for some time.

June '12: EPS (continuing) $1.48, up 8%. Counting non-recurring, EPS $1.25 vs. $1.29. Revenues up 7% to $11.0 billion. Agriculture sales up 13% to $3.39 billion. Electronic & Communications Technologies sales down 11% to $795 million. Industrial Biosciences $300 million. Nutrition & Health $885 million. Performance Chemicals down 1% to $1.97 billion. Performance Coatings down 1% to $1.09 billion. Performance Materials down 3% to $1.70 billion. Safety & Protection down 4% to $986 million. Operating cash flow $760 million ($0.81/share) vs. $840 million ($0.89/share). Earnings call transcript. Acquired full ownership of the Solae, LLC joint venture, a soy-based ingredients leader. DuPont previously owned 72%. In April, dividend up 5% to $0.43. 

March '12: EPS (operating) $1.61, up 6%. Revenues up 12% to $11.23 billion. Agriculture sales up 16%. Electronic & Communications Technologies down 17%. Industrial Biosciences $288 million. Nutrition & Health $808 million. Performance Chemicals up 6%. Performance Coatings up 6%. Performance Materials down 6%. Safety & Protection down 2%. Operating cash flow minus -$1,877 million (-$1.99/share) vs. minus -$1,484 million (-$1.58/share). Earnings call transcript.

December '11: EPS (continuing) $0.35 vs. $0.50. Higher taxes cut EPS $0.23. Revenues up 14% to $8.425 billion. Gross margin 20.7% vs. 20.0%. Agriculture sales up 8%. Electronic & Communications Technologies down 11%. Industrial Biosciences $289 million. Nutrition & Health up 138%. Performance Chemicals up 12%. Performance Coatings up 8%. Performance Materials up 1%. Safety & Protection up 10%. Operating cash flow $4,721 million ($5.04/share) vs. $4,424 million ($4.76/share). Earnings call transcript. 

September '11: EPS (adjusted) $0.69, up 72%. Revenues up 32% to $9.238 billion. Gross margin 23.1% vs. 22.2%. Operating cash flow $1.14/share vs. $0.50/share. Acquired startup that makes silicon inks and process technologies that increase efficiency of silicon solar cells. Earnings call transcript.  

June '11: EPS (excluding non-recurring) $1.37, up 17%. Revenues up 19% to $10.26 billion. Gross margin 29.9% vs. 30.5%. Agriculture & Nutrition sales up 10% to $3.00 billion. Performance Materials up 11% to $1.75 billion. Performance Chemicals up 27% to $2.00 billion. Performance Coatings up 15% to $1.11 billion. Safety & Protection up 21% to $1.03 billion. Electronic & Communications Technologies up 36% to $891 million. Operating cash flow $840 million ($0.89/share) vs. $741 million ($0.81/share). Earnings call transcript. Completed takeover of Danish specialty food ingredients maker Danisco.

March '11: EPS $1.52, up 23%. Revenues up 18% to $10.06 billion. Gross margin 32.1% vs. 34.5%. Agriculture & Nutrition sales up 18% vs. year-ago to $3.83 billion. Performance Materials up 11% to $1.71 billion. Performance Chemicals up 27% to $1.80 billion. Performance Coatings up 10% to $993 million. Safety & Protection up 22% to $965 million. Electronic & Communications Technologies up 29% to $811 million. Operating cash flow negative -$1,484 million vs. -$1,065 million. Earnings call transcript.

December '10: EPS (continuing) $0.50, up 14%. Revenues up 15% to $7.40 billion. Gross margin 20.0% vs. 22.8%. Income tax credit boosted earnings, which otherwise would have come in below year-ago. Agriculture & Nutrition up 13% to $1.54 billion. Performance Materials up 11% to $1.60 billion. Performance Chemicals up 26% to $1.66 billion. Performance Coatings up 3% to $1.01 billion. Safety & Protection up 13% to $859 million. Electronic & Communications Technologies up 33% to $773 million. Operating cash flow $4,524 million ($4.87/share) vs. $3,818 million ($4.19/share). Dividends 33.7% of operating cash flow. Earnings call transcript. Agreed to acquire supplier of process technology, equipment, and technical services to the sulfuric acid industry. Said deal would enhance clean technologies offerings, particularly in the Asia Pacific and Middle East markets.  

September '10: EPS $0.40, down $0.05. Revenues up 15% to $7.07 billion. Gross margin 22.3% vs. 23.5%. Agriculture & Nutrition sales up 2% to $1.27 billion. Performance Materials up 21% to $1.58 billion. Performance Chemicals up 26% to $1.68 billion. Performance Coatings up 6% to $937 million. Safety & Protection up 30% to $871 million. Electronic & Communications Technologies up 30% to $703 million. Operating cash flow $459 million ($0.50/share) vs. $878 million ($0.96/share). Earnings call transcript. Raised $2 billion via note sales. Pioneer Hi-Bred unit agreed to acquire majority interest in South African seed company.

June '10: EPS (excluding non-operating) $1.17 vs. $0.61. Including non-operating, EPS $1.26 vs. $0.46. Revenues up 26% to $8.62 billion. Agriculture & Nutrition sales up 16% to $3.0 billion. Performance Materials up 45% to $1.6 billion. Performance Chemicals up 26% to $1.6 billion. Performance Coatings up 15% to $962 million. Safety & Protection up 27% to $845 million. Electronic & Communications Technologies up 53% to $657 million. Operating cash flow $641 million vs. $787 million. Earnings call transcript. Planned to buy minority stake in Chinese chemical maker Changshu 3F Zhonghao New Chemical Materials.

March '10: EPS $1.24, up 129%. Revenues up 23% to $8.5 billion. Agriculture & Nutrition sales up 6% to $3.2 billion. Performance Materials sales up 63% to $1.5 billion. Performance Chemicals up 31% to $1.4 billion. Coatings & Color Technology up 23% to $902 million. Safety & Protection up 10% to $789 million. Electronic & Communications Technologies up 273% to $632 million. Operating cash flow -$1,065 million vs. -$832 million.

December '09: EPS (continuing) $0.44 vs. -$0.28 loss. Including non-recurring, EPS $0.48 vs. -$0.70 loss. Revenues up 10% to $6.4 billion. Agriculture & Nutrition sales up 12% to $1.4 billion. Performance Materials up 20% to $1.4 billion. Performance Chemicals up 9% to $1.3 billion. Coatings & Color Technology up 8% to $975 million. Safety & Protection down 9% to $759 million. Electronic & Communications Technologies up 22% to $582 million. For the year, dividends paid were 31% of operating cash flow.   

September '09: EPS 0.45, up 13%. Excluding non-recurring, EPS $0.45 vs. $0.56. Revenues down 20% to $6.16 billion. Agriculture & Nutrition sales down 5% to $1.2 billion. Coatings & Color Technologies down 16% to $1.5 billion. Electronic & Communications Technologies down 13% to $919 million. Performance Materials down 24% to $1.3 billion. Safety & Protection sales down 32% to $1.0 billion. Dividends paid 42% of operating cash flow ($878 million). Earnings call transcript.   

June '09: EPS $0.61 (continuing) vs. $1.18. Revenues -24% to $7.088 billion. Agriculture & Nutrition +3% to $2.6 billion. Coatings & Color Technologies -26% to $1.4 billion. Electronic & Communications Technologies -26% to $795 million. Performance Materials -40% to $1.1 billion. Safety & Protection -37% to $1.0 billion.

March '09: EPS $0.654 (continuing) vs. $1.31. Revenues -17% to $7.270 billion. Agriculture & Nutrition +6% to $3.1 billion. Coatings & Color Technologies -30% to $1.2 billion. Electronic & Communications Technologies -32% to $696 million. Performance Materials -45% to $942 million. Safety & Protection sales -24% to $1.0 billion.

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Emerson Electric

June '21: EPS (adjusted) $0.97, up 9%. Revenues up 6% to $4.43 billion. Automation Solutions revenues up 3% to $4.4 billion. Commercial & Residential revenues up 13% to $737 million. Free cash flow $707 million ($1.17/share) vs. $477 million ($0.78/share). Sold Daniel Measurement and Control Business to private investment firm. Sale didn't include Daniel’s ultrasonic flowmeter and fiscal transfer system businesses.

March '21: EPS $0.93, up 11%. Revenues up 6% to $4.43 billion. Automation Solutions revenues up 3%. Commercial & Residential revenues up 13%. Operating cash flow $807 million share) vs. $588 million.

December '20: EPS (adjusted) $0.83, up 24%. Revenues (adjusted) down 2% to $4.151 billion. Automation Solutions revenues down 9% to $2.69 billion. Commercial & Residential revenues up 12% to $1.48 billion. Operating cash flow $808 million ($1.34 per share) vs $424 million ($0.67 per share). Completed acquisitions of 7AC Technologies, a startup offering new technologies for controlling air conditioning equipment, Progea Group, a provider based in Italy of plant analytics, human/machine interface, and data acquisition equipment, and Open Systems International, which produces software targeted to the global power industry.  

September '20: EPS (adjusted) $1.10, down 4%. Revenues down 8% to $4.558 billion. Automation Solutions revenues down 11% to $3.01 billion. Commercial & Residential revenues down 3% to $1.55 billion. Operating cash flow up 2% to $1.23 billion ($2.04 per share).

June '20: EPS (adjusted) $0.80 vs. year-ago $0.60.  Revenues down 16% to $2.296 billion. Automation Solutions revenues down 14% to $2.59 billion. Commercial & Residential revenues down 20% to $1.33 billion. Operating cash flow down 11% to $842 million.

9/19:  Emerson's growth story is not developing as we expected when we added it to the portfolio in April 2018. We're selling.

Emerson reported June quarter earnings (adjusted) of $0.94 per share, even with analyst forecasts, and up 7% vs. year-ago. Revenues up 5% to $4.456 billion. Automation revenues up 5% to $3.025 billion. Commercial & Residential Solutions revenues up 4% to $1.592 billion. Operating cash flow $946 million ($1.53 per share) vs. year-ago $924 million ($1.46 per share). Emerson said June quarter new orders were only even with year-ago, below earlier forecasts.

In April, Emerson acquired Bioproduction Group (Bio-G), a maker of simulation, modeling, and scheduling software used by producers of therapies for cancer, diabetes, and other illnesses. No financial information, not even Bio-G's annual sales, were revealed.

Background
Founded in 1890, in 2017, Emerson transformed itself by restructuring and divesting many of its product lines. The new and much smaller Emerson focuses on producing process control and measurement equipment, and offering systems and software globally for 1) industrial automation applications, and 2) commercial and residential applications. With these changes, Emerson is targeting around 22% EPS growth on a 12% sales gain for 2018.

Quarterly Reports   

March '19: EPS $0.84, up 11% vs. year-ago. Revenues up 8% to $4.57 billion. Automation revenues up 9% to $3.010 billion. Commercial & Residential Solutions revenues up 5% to $1.561 billion. Operating cash flow $533 million ($0.86 per share) vs. year-ago $414 million ($0.65 per share).

December '18: EPS $0.74, up 21%. Revenues up 9% to $4.15 billion. Automation revenues up 9% to $2.799 billion. Commercial & Residential Solutions revenues up 7% to $1.338 billion. Operating cash flow $323 million ($0.51 per share) vs. $447 million ($0.70 per share). Acquired Advanced Engineering Valves, a maker of advanced LNG valves. In November, dividend up 1% to $0.49.

September '18: EPS (adjusted)$0.97, up 24%. Revenues (adjusted) up 8% to $4.888 billion. Automation revenues (adjusted) up 11% to $3.228 billion. Commercial & Residential Solutions revenues (adjusted) up 5% to $1.655 billion. Operating cash flow $1,000 million ($1.58 per share) vs. $885 million ($1.38 per share). Acquired General Electric's 'Intelligent Platforms' unit that made programmable logic controllers used in factory automation applications, with around $200 million in annual sales.  

June '18: EPS (adjusted) $0.88, up 40%. Revenues (adjusted) up 8% to $4.456 billion. Automation revenues (adjusted) up 12% to $2.870 billion. Commercial & Residential Solutions revenues (adjusted) up 2% to $1.592 billion. Operating cash flow $924 million ($1.43 per share) vs. $774 million ($1.22 per share). Paid $622 million to acquire factory automation software maker Aventics with $425 million of annual sales. Paid $810 million to acquire Textron's Tools & Test Equipment business which produced test and measurement equipment used by mechanical, electrical and plumbing contractors.

March '18: EPS (adjusted) $0.76, up 31%. Revenues (adjusted) up 8% to $4.25 billion. Automation revenues up 10% to $2.771 billion. Commercial & Residential Solutions revenues up 4% to $1.483 billion. Operating cash flow $497 million ($0.78 per share) vs. $172 million ($0.27 per share). Announced joint venture with AspenTech to deliver manufacturing software and consulting services. Acquired ProSys Inc., a global supplier of software and services that increase production and safety for the chemical, oil and gas, pulp and paper, and refining industries. Acquired Cooper-Atkins, a maker of temperature management and environmental measurement devices and wireless monitoring solutions for foodservice, healthcare and industrial markets.

December ’17: EPS $0.58, up 18%. Revenues up 7% to $3.82 billion. Automation revenues up 9% to $2.572 billion. Commercial & Residential Solutions revenues up 5% to $1.252 billion. Operating cash flow $447 million  ($0.70 per share) vs. $238 million ($2.37 per share). Completed acquisition of Paradigm, a maker of software products for the oil and gas industry.

September ’17: EPS $0.58 per share, up 18%. Revenues up 3% to $4..44 billion. Automation revenues up 3% to $2.8942 billion. Commercial & Residential Solutions revenues up 3% at $1.543 billion.

Foot Locker 

5/1/16: Most of Foot Locker's stores are in malls, and malls are becoming ghost towns. Sell Foot Locker.

Foot Locker was added to S&P 500 after the market close on April 1.

In February, Foot Locker raised its quarterly dividend by 10% to $0.275 per share.

Expected FY 1/2016 EPS Growth: 11%   CF Payout Ratio: 17%

Background
Foot Locker operates or franchisees more than 1700 Foot Locker, 150 Lady Foot Locker, 30 SIX 02, 370 Kids Foot Locker, 250 Footaction, 500 Champs Sports, 120 Runners Point and 80 Sidestep retail stores in 28 countries specializing in athletic footwear and apparel. Footlocker was in decline until former J.C. Penney Chief Merchandising Officer, Ken Hicks, was hired as CEO in August 2009. However, Hicks retired on December 1, 2014.

Quarterly Reports 

January '16: EPS (adjusted) of $1.16, up 16% compared vs. year-ago. Revenues up 5% to $2.007 billion. Gross margin (GM) 33.6% of sales vs. year-ago 32.9% (higher is better). Same store sales (SSS) up 8% vs. year-ago. As of January 30, FL operated 3,383 stores in 28 countries. Also, 64 franchised stores were operating in the Middle East, South Korea, and in Germany.

October '15: EPS (adj) $1.00, up 20%. Revenues up 4% to $1.794 billion. GM 33.8% vs. 33.2%. Same store sales (SSS) up 9%. Opened 30 new stores, remodeled or relocated 48 stores, and closed 16 stores.

July '15: EPS $0.84, up 33%. Revenues up 3% to $1.695 billion. GM 32.6% vs. 32.0%. Same store sales up 9%.

April '15: EPS $1.29, up 17%. Revenues up 2.6% to $1.916 billion. GM 35.0% vs. 34.6%. SSS up 8%. At May 2, operated 3,419 stores in 23 countries. Also had 55 franchised stores operating in the Middle East and South Korea, and 27 franchised Runners Point and Sidestep stores in Germany and Switzerland.  In February, dividend up 14% to $0.25.  

January '15: EPS 1.01, up 25%. Revenues up 7% to $1.911 billion. GM 32.9% vs. 32.5%. SSS up 10%. CEO, Ken Hicks, retired on December 1 and was replaced by the Chief Operating Officer, Richard Johnson, who had been with Foot Locker for 17 years.   

October '14: EPS (adjusted) $0.83, up 22%. Revenues up 7% to $1.731 billion. Gross margin (GM) 33.2% vs. 33.1%. Same store sales (SSS) up 7%.

July '14: EPS $0.63, up 43%. Revenues up 13% to $1.641 billion. GM 32.0% vs. 31.1%. SSS up 8%.

April '14: EPS $1.10, up 22%. Revenues up 14% to $1.868 billion. GM 34.6% vs. 34.2%. SSS up 8%, a strong number. In February, dividend up 10% to $0.22.

January '14 EPS $0.81, up 19%. Revenues up 5% to $1.791 billion. GM 32.5% vs. 32.9%. SSS up 5%.

October '13: EPS (adjusted) $0.68, up 8%. Revenues up 6% to $1.622 billion. GM 33.1% vs. 33.1%. SSS +4%, down from 10%.

July '13: EPS (adjusted) of $0.46, up 21%. Revenues up 6% to $1.454 billion. GM 31.2% vs. 31.3%. SSS  +2%. Completed acquisition of German footwear retailer Runners Point Warenhandelsges, which operated more than 200 stores, mostly in Germany, under the Runners Point and Sidestep brands.  

April '13: EPS (continuing) $0.91, up 10%. Revenues up 4% to $1.638 billion. GM 34.2% vs. 34.0%. SSS up 5%. Opened 25 new stores, remodeled/relocated 64 stores and closed 39 stores. In February, dividend up 11% to $0.20. 

January '13: EPS (continuing and adjusted for additional week) $0.64, up 21%. Revenues up 14% to $1.713 billion. GM 32.9% vs. 32.0%. SSS  up 8%. Converting CCS skateboards, etc. operation to online only, and is closing its 22 existing CCS retail stores. 

October '12: EPS (continuing) $0.63, up 47%. Revenues up 9% to $1.524 billion. GM 33.1% vs. 32.5%. SSS  up 10%. Made deal with Macy's to open 450 leased departments in Macy's stores beginning Spring 2013. Will also fulfill Macy's online orders for athletic products.

July '12: EPS $0.39, up 63%. Revenues up 7% to $1.367 billion. GM 31.3% vs. 30.4%. Operated 3,354 stores vs. 3,407. Outside U.S. 836 vs. 771. Same store sales up 10%.

April '12: EPS $0.83, up 38%. Revenues up 9% to $1.578 billion. GM 34.0% vs. 32.7%. Operated 3,360 stores vs. 3,420. Outside U.S. 793 vs. 764. Newly acquired skateboard culture chain, CCS, with 22 stores vs. year-ago 12 stores, was fastest grower. Same store sales up 10%. In February, dividend up 9% to $0.18.  

January '12: EPS (adjusted) $0.55, up 41%. Revenues up 8% to $1.502 billion. GM 32.0% vs. 30.9%. Operated 3,369 stores vs. 3,426. Outside the U.S. 783 vs. 751. Same store sales up 8%.

October '11: EPS $0.43, up 30%. Revenues up 9% to $1.394 billion. Operating margin 7.5% vs. 5.7%. Operated 3,402 stores vs. 3,474. Outside U.S. 776 vs. 750. Same store sales up 7%. Earnings call transcript. 

July '11: EPS $0.24 vs. $0.04. Revenues up 16% to $1.275 billion. OM 4.5% vs. 0.9%. At July 30, 3,407 stores vs. 3,476. Stores outside U.S. 771 vs. 744. Same store sales up 12%. Earnings call transcript.

April '11: EPS $0.60, up 76%. Revenues up 13% to $1.452 billion. Operating margin 10.3% vs. 6.6%. At March 31, operated 3,420 stores vs. 3,485. SSS up 13%. In February, dividend up 10% to $0.165. 

January '11: EPS (continuing) $0.39, up 63%. Revenues up 5% to $1.39 billion. Operating margin 7.0% of sales vs. 4.4%. At 12/31, operated 3,426 stores vs. 3,500. Same store sales up 7%.

October '10: EPS $0.33 vs. $0.10 (continuing). Revenues up 4% to $1.28 billion. Operating margin 5.7% vs. loss. At 10/30, operated 3,474 stores vs. 3,601.    

July '10: EPS $0.04, up $0.04. Revenues even at $1.10 billion. Operating margin 0.9% of sales vs. loss. At 7/31, operated 3,476 stores vs. 3,615. Same store sales up 1%.  

April '10: EPS $0.34, up 70%. Revenues up 5% to $1.28 billion. Operating margin 6.6% vs. 4.0%. Opened 14 new stores, remodeled or relocated 42 stores and closed 29 stores. At 5/1, operating 3,485 stores vs. 3,633.

January '10: EPS (continuing)$0.24, down $0.01. Counting non-recurring, EPS $0.14 vs. -$0.81 loss. Revenues up 1% to $1.33 billion. Excluding currency, revenues down 3%. Same store sales down 2%.  Closed 117 underperforming stores (out of 3,600 total stores). Eliminated 120 home office and management positions.  

January '10: EPS (continuing)$0.24, down $0.01. Counting non-recurring, EPS $0.14 vs. -$0.81 loss. Revenues up 1% to $1.33 billion. Excluding currency, revenues down 3%. SSS down 2%.  Closed 117 underperforming stores (out of 3,600 total stores). Eliminated 120 home office and management positions.  

October '09: EPS (continuing) $0.10, vs. $0.16. Including asset write-down, EPS -$0.04. Revenues down 7% to $1.21 billion. Same store sales down 8%.  

July '09: EPS breakeven vs. $0.11. Revenues down 16% to $1.10 billion. Excluding currency, revenues down 12%. Same store sales down 12%. At 8/1, operated 3,615 stores in 21 countries in North America, Europe and Australia vs. 3,728. Also, 19 franchised stores (up from 14) were operating in the Middle East and South Korea. Appointed former J.C. Penny Co. president and chief merchandising officer, Ken Hicks to CEO position, replacing Matthew Serra, who retired. Hicks credited for Penny's transformation from "dowdy" to "hip."   

April '09: EPS $0.20 vs. $0.14 (continuing). Revenues -7% to $1.216 billion. Opened 16 new stores; remodeled or relocated 47 stores and closed 24 stores.    

January '09: EPS (operating) $0.24 vs. $0.15. Revenues -11% to $1.32 billion. Excluding currency, revenues -7%. SSS -7%.

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Ford Motor Company 

2/1/16:  Ford's turnaround seems to be petering out. It's time to move on.

Sales down 2.6% in January vs. year-ago. Auto sales down 12%, truck sales even with year-ago. F-Series truck sales down 5%.

In January, announced a special $0.25 per share dividend to be paid concurrently with regular $0.15 per share. Did not raise regular dividend which it had done in January for the past three years.

In January, said closing all operations in Japan and Indonesia: manufacturing, dealerships, sales of imported products, everything. Ford said it sees "no reasonable path to profitability" in those areas.

In January,  said that it is the first auto maker to test self-driving cars in snow-covered environments. It said that other major automakers have only tested their self-driving cars in dry, mostly sunny climates. Ford said it is doing its winter weather testing at Mcity - a 32-acre, full-scale simulated real-world urban environment at the University of Michigan.

Said it planned to invest $1.8 billion over the next five years on research and development in China. Ford also plans to introduce a plug-in hybrid and conventional hybrid to the China market next year. Ford is is the fifth-biggest foreign automaker in China, after General Motors, Volkswagen, Hyundai Motor and Nissan.

Expected FY 12/2016 EPS Growth: 1%   CF Payout Ratio: 20%

Background
Headquartered in Dearborn, Michigan, Ford was founded by Henry Ford in 1903 and went public in 1956. However, the Ford family still retains a controlling interest. Ford sells automobiles and commercial vehicles under the Ford and Lincoln brands in the U.S. Global investments include SUV maker Troller in Brazil, Australian performance car maker PFV, and minority stakes in Mazda in Japan, Aston Martin in the UK, three Chinese car makers, as well as operations in Thailand, Turkey and Russia. In 2008, Ford sold its Jaguar and Land Rover units to an Indian firm, and sold Swedish manufacturer Volvo in 2010. In 2011, it shut down its Mercury car unit.

Quarterly Reports 

December '15: EPS (adjusted) $0.58, up 93% vs. year-ago. Revenues up 15% to $40.3 billion. Automotive sales up 12% to $37.9 billion. Automotive operating margin 6.1% vs. 3.4%. Operating cash flow $3.6 billion ($0.90/share) vs. $2.1 billion ($0.55/share). Ford forecast 2016 numbers more or less equal with 2016.

September '15: EPS (continuing) $0.45, up 88%. Revenues up 9% to $38.144 billion. Automotive sales up 9% to $35.82 billion. Automotive gross margin 12.1% vs. year-ago 7.9%. Operating cash flow $6.455 billion ($1.61/share) vs. $4.010 billion ($1.31/share). Said introducing its first car targeted to the Indian market. Would retail for $7,600 (US). Said planned to start assembling Ford Ranger pickup truck in Nigeria before year's end.

June '15: EPS (adjusted) of $0.47, up 47%. Revenues flat at $37.3 billion. Automotive sales down 1% to $35.11 billion. Automotive gross margin 12.8% vs 11.6%. Operating cash flow $5.210 billion ($1.30/share) vs. $4.750 billion ($1.16/share).

March '15: EPS $0.23 vs. $0.24. Revenues down 6% to $37.9 billion. Automotive sales down 6% to $31.80 billion. Automotive gross margin 9.7% vs. 8.4%. Operating cash flow $2.413 billion ($0.60/share) vs. $2.220 billion ($0.54/share).

Genuine Parts

8/16:  We have enjoyed a 200% return since we added auto and industrial parts distributor Genuine Parts to this portfolio in January 2009. But now, growth has stalled and we don't see a turnaround happening any time soon.

Genuine reported June quarter earnings of $1.28 per share, $0.02 below analyst forecasts, and only even with year-ago. Revenues down 1% to $3.90 billion. Automotive sales down 1% vs. year-ago to $2.088 billion. Industrial sales down 2% to $1.107 billion. Office products up 1% to $482 million. Electrical/Electronic materials down 5% to $185 million. Operating cash flow (OCF) $398.5 million ($2.66/share) vs. year-ago $300.5 million ($1.96/share). Except for cash flow, all around disappointing numbers.

In May, Genuine acquired Safety Zone, a Guilford, Connecticut based importer of supplies and devices for safety, janitorial, medical, food service, and food processing applications. Genuine expects the deal to add about 1% to annual revenues.

Expected FY 12/2016 EPS Growth: 3%  CF Payout Ratio: 43%

Background
Genuine Parts Company distributes automotive replacement parts through its 58 NAPA distribution centers and 1,100 company owned stores in the U.S. It also has operations in Canada and Mexico. Its NAPA unit accounts for 50% of sales. Genuine’s Motion Industries unit (30% of sales) distributes industrial parts via 315 locations. Its S.P. Richards unit (16%) distributes business products from 44 distribution centers, and its EIS unit (4%) distributes electronic materials.

Quarterly Reports 

March '16: EPS $1.05, even with year ago. Revenues down 1% to $3.72 billion. Automotive sales up 2% vs. year-ago to $1.932 billion. Industrial sales down 3% to $1.152 billion. Office products down 3% to $477 million. Electrical/Electronic materials down 3% to $176 million. Operating cash flow (OCF) $135.0 million ($0.90/share) vs. year-ago $153.6 million ($0.80/share). In February, dividend up 7% to $0.6575.

December '15: EPS 1.07. Revenues down 4% to $3.682 billion. Automotive sales down 1% to $1.949 billion. Industrial sales down 8% to $1.107 billion. Office products down 2% to $458.8 million. Electrical/Electronic materials flat at $177 million. Operating cash flow (OCF) $262 million ($1.73/share) vs. $159 million ($1.30/share).

September '15: EPS $1.24, even. Total revenues down 2% to $3.922 billion. Automotive sales down 2% to $2.064 billion. Industrial sales down 4% to $1.170 billion. Office products up 3% to $510.8 million. Electrical/Electronic materials up 2% to $197 million. OCF $441.9 million ($2.90/share) vs. $222.2 million ($1.44/share). Agreed to acquire automotive parts distributor in Welshpool, Australia with US$90 million annual revenues. 

June '15: EPS $1.28, even. Total revenues up 1% to $3.940 billion. Automotive sales even at $2.103 billion. Industrial sales down 2% to $1.188 billion. Office products sales up 14% to $478 million. Electrical/Electronic materials up 4% to $195 million. OCF $331.596 million ($2.17/share) vs. $307.323 million ($1.99/share).

March '15: EPS 1.05, up 3%. Total revenues up 3% to $3.736 billion. Automotive sales even at $1.899 billion. Industrial sales up 3% to $1.182 billion. Office products sales up 17% to $490 million. Electrical/Electronic materials up 1% to $182 million. OCF $122.512 million ($0.80/share) vs. $59.779 million ($0.39/share). In February, dividend up 7% to $0.615.

December '14: EPS $1.07, up 10%. Revenues up 9% to $3.822 billion. Automotive sales up 4% to $1.988 billion. Industrial sales up 10% to $1.198 billion. Office products sales up 22% to $469 million. Electrical/Electronic materials up 23% to $177 million. OCF $192.2 million ($1.25/share) vs. $219.2 million ($1.41/share).

September '14: EPS $1.24, up 11%. Revenues up 8% to $3.986 billion. Automotive sales up 4% to $2.100 billion. Industrial sales up 10% to $1.221 billion. Office products sales up 15% to $497 million. Electrical/Electronic materials up 35% to $180 million. OCF $235.221 million ($1.53/share) vs. $369.807 million ($2.38/share).

June '14: EPS $1.28, up 9% (adjusted). Revenues up 6% to $3.908 billion. Automotive sales up 5.8% to $2.11 billion. Industrial sales up 7% to $1.209 billion. Office products sales up 4% to $419 million. Electrical/Electronic materials up 32% to $180 million. Operating cash flow $303.323 million ($1.96/share) vs. year-ago $351.300 million ($2.25/share). Completed  acquisition of janitorial supply company with $85 million in annual revenues.

March '14: EPS $1.02, up 10%. Revenues up 13% to $3.625 billion. Automotive sales up 23% to $1.90 billion. Industrial sales up 4% to $1.143 billion. Office products sales down 1% to $418 million. Electrical/Electronic materials up 30% to $180 million. Operating cash flow $59.779 million ($0.39/share) vs. $116.378 million ($0.75/share). Acquired  a U.S. contract manufacturer and distributor of specialty wire and cable products with annual sales of $100 million, and a regional distributor of food service disposables and cleaning supplies with annual sales of $35 million. In February, dividend up 7% to $0.575.  

December '13: EPS $1.03, up 4%. Revenues up 13% to $3.518 billion. Automotive sales up 25% vs. to $1.92 billion. Industrial sales up 3% to $1.09 billion. Office products sales down 4% to $386 million. Electrical/Electronic materials up 6% to $144 million. Operating cash flow $219.2 million ($1.41/share) vs. year-ago $141.6 million ($0.91/share). Acquired industrial parts distributors Commercial Solutions, with $100 million of annual sales and based in Alberta, Canada, and Paragon Service & Supply with around $15 million in annual sales and based in Lima, Ohio.  

September '13: EPS $1.12, up $0.01. Revenues up 9% to $3.685 billion. Automotive sales up 22% to $2.02 billion. Industrial sales down 3% to $1.11 billion. Office products down 3% to $431 million. Electrical/Electronic materials down 5% to $143 million. Operating cash flow $370.4 million ($2.36/share) vs. $343.5 million ($2.20/share).

June '13: EPS (continuing) $1.17, up 8%. Counting non-recurring, EPS $1.39. Revenues up 10% to $3.676 billion. Automotive sales up 22% to $2.01 billion. Industrial down 1% to $1.13 billion. Office products down 1% to $403 million. Electrical/Electronic materials down 4% to $143 million. Operating cash flow $350.7 million ($2.26/share) vs. $249.0 million ($1.60/share).

March '13: EPS $0.93, even. Revenues up 1% to $3.199 billion. Automotive sales up 3% to $1.54 billion. Industrial sales down 2% to $1.10 billion. Office products down 1% to $420 million. Electrical/Electronic materials down 5% to $139 million. Operating cash flow $116.4 million ($0.75/share) vs. $172.3 million ($1.10/share). Exercised option to acquire 70% interest in Australian auto parts distributor Exego Group it didn't already own for $800 million. In February, dividend up 9% to $0.5375.

December '12: EPS $1.03, up 20%. Revenues up 3% to $3.119 billion. Automotive sales up 5% to $1.53 billion. Industrial sales up 2% to $1.05 billion. Office products up 3% to $403 million. Electrical/Electronic materials down 2% to $135 million. Operating cash flow $141.6 million ($0.91/share) vs. $127.4 million ($0.81/share).  

September '12: EPS, up 14%. Revenues up 3% to $3.376 billion. Automotive sales up 2% to $1.65 billion. Industrial sales up 4% to $1.14 billion. Office products down 1% to $444 million. Electrical/Electronic materials up 5% to $151 million. Operating cash flow $436.8 million ($2.80/share) vs. $247.4 million ($1.57/share).

June '12: EPS $1.08, up 13%. Revenues up 5% to $3.338 billion. Automotive sales up 5% to $1.65 billion. Industrial sales up 8% to $1.14 billion. Office products down 1% to $413 million. Electrical/Electronic materials up 9% to $149 million. Operating cash flow $155.7 million ($1.55/share) vs. $196.6 million ($1.25/share). 

March '12: EPS $0.93, up 16%. Revenues up 7% to $3.181 billion. Automotive sales up 6% to $1.49 billion. Industrial up 12% to $1.12 billion. Office products down 2% to $426 million. Electrical/Electronic materials up 5% to $147 million. Operating cash flow $172.3 million ($1.10/share) vs. $53.4 million ($0.34/share). Completed acquisition of 30% stake in Australian auto parts distributor Exego Group Has option for remaining 70%. Agreed to acquire Quaker City Motor Parts, which operated 271 NAPA stores in mid-Atlantic region. In February, dividend up 10% to $0.495. 

December '11: EPS $0.86, up 15%. Revenues up 7% to $3.014 million. Automotive sales up 6%. Industrial sales up 13%. Office products down 1%. Electrical/Electronic materials up 10%. Operating cash flow $127.5 million ($0.81/share) vs. $89.7 million ($0.57/share).

September '11: EPS $0.97, up 17%. Revenues up 11% to $3.29 billion. Automotive sales up 9%. Industrial sales up 18%. Office products up 3%. Electrical/Electronic materials up 22%. Operating cash flow $247.4 million ($1.57/share) vs. $213.8 million ($1.35/share).  Acquired a specialty wire and cable distributor with $43 million annual revenues.

June '11: EPS $0.96, up 23%. Revenues up 12% to $3.18 billion. Automotive sales up 9% to $1.59 billion. Industrial sales up 19% to $1.05 billion. Office products up 4% to $418 million. Electrical/Electronic materials up 28% to $137 million. Operating cash flow $196.6 million ($1.25/share) vs. $215.0 million ($1.36/share). 

March '11: EPS $0.80, up 27%. Revenues up 14% to $2.97 billion. Automotive sales up 9% to $1.40 billion. Industrial up 24% to $1.00 billion. Office products up 5% to $433 million. Electrical/Electronic materials up 39% to $140 million. Operating cash flow $53.4 million ($0.34/share) vs. $139.6 million ($0.88/share). In February, dividend up 10% to $0.45. 

December '10: EPS $0.75, up 21%. Revenues up 14% to $2.81 billion. Automotive sales up 9% to $1.38 billion. Industrial up 24% to $915 million. Office products up 3% to $395 million. Electrical/Electronic materials up 40% to $126 million. Operating cash flow for 2010 $678.7 million ($4.29/share), down 20%.

September '10: EPS $0.83, up 24%. Revenues up 13% to $2.95 billion. Automotive sales up 7% to $1.48 billion. Industrial up 29% to $921 million. Office products flat at $435 million. Electrical/Electronic materials up 31% to $117.3 million. Year-to-date operating cash flow $568.4 million ($3.60/share), down 26%.  

June '10: EPS $0.78, up 20%. Revenues up 12% to $2.85 billion. Automotive sales up 7% to $1.46 billion. Industrial up 26% to $882 million. Office products down 1% to $402 million. Electrical/Electronic materials up 32% to $106.6 million. Operating cash flow $215.0 million ($1.36/share), down 25%.   

March '10: EPS $0.63, up 13%. Revenues up 6% to $2.60 billion. Automotive sales up 11% to $1.29 billion. Industrial up 9% to $803 million. Office products down 1% to $411 million. Electrical/Electronic materials up 16% to $100.3 million. Operating cash flow down 30% to 139.6 million ($0.88/share). Changes in inventory and accounts receivable figures accounted for cash flow drop.  Completed acquisition of BC Bearing, a Canadian maker of bearings and power transmission components. Expected deal to add 2% to annual revenues. In February, dividend up 2.5% to $0.41. 

December '09: EPS $0.62, up 13%. Revenues down 2% to $2.47 billion. Automotive sales up 6% to $1.27 billion. Industrial down 11% to $737 million. Office products down 4% to $384 million. Electrical/Electronic materials down 12% to $89.7 million. Operating cash flow for year up 59% to 845.3 million ($5.30/share).    

September '09: EPS $0.67 vs. $0.81. Revenues down 10% to $2.61 billion. Automotive sales down 1% vs. to $1.38 billion. Industrial sales down 22% to $711 million. Office products down 5% to $436 million. Electrical/Electronic materials down 29% to $89.4 million.

June '09: EPS $0.65 vs. $0.81. Revenues -12% to $2.54 billion. Automotive sales -5% to $1.36 billion. Industrial -22% to $701 million. Office products -6% to $406 million. Electrical/Electronic materials -34% to $80.6 million.

March '09: EPS $0.56, down 25%. Sales -10% to 2.44 billion. Operating cash flow +2% to $147.5 million. Automobile parts sales -7% to $1.219 billion. Industrial parts -16% to $737 million. Office products -7% to $413 million and electrical materials -25% to $86.1 million.

December '08: EPS $0.55, -27%. Sales -4% to 2.52 billion. Automobile parts -6% to $1.194 billion. Industrial parts flat at $828 million. Office products -5% to $400 million and electrical materials -4% to $102 million. In January, dividend up 2.6% to $0.40.

September '08: EPS $0.81, +7%. Sales +3% to $2.88 billion. Electrical sales +13%, industrial sales +7%, automotive sales +1%, and office product sales flat.  

June '08: EPS $0.81, +7%, Revenues +4% to $2,87 bullion. Electrical sales +11%, industrial sales +7%, automotive sales +2%, and office product sales flat.

Back to Mfg & Services

H&E Equipment Services

7/1/22:  We're expecting a construction industry downturn, consequently, we're advising selling H&E Equipment Services. 

Background
With 78 facilities located throughout the U.S., H&E rents, sells and provides parts and services support for hi-lift or aerial work platform equipment, cranes, earthmoving equipment, and industrial lift trucks. Customers include industrial and commercial companies, construction contractors, manufacturers, public utilities, municipalities, and maintenance contractors. Already a big player, H&E has embarked on an ambitious expansion program. How ambitious? Analysts are forecasting over 30% year-over-year EPS growth this year, and they're looking for that number to more than double in 2023. 

Quarterly Reports   

March '22: EPS $0.45 vs. year-ago $0.05. Total revenues down 3% to $272.5 million. Equipment rentals up 30% to $199.2 million. New equipment sales up 12% to $26.0 million. Used equipment sales down 45% to $21.5 million.

December '21: EPS $0.59 (continuing) vs. -$0.59 loss. Total revenues up 5% to $281.3 million. Equipment rentals up 25% to $203.7 million. New equipment sales down 33% to $22.5 million. Used equipment sales down 34% to $29.5 million.

12/18:  We're selling H&E Equipment Services. It has proven too volatile to continue holding in this rough market.

Expected FY 12/2018 EPS Growth: 10%  FY 2019 P/E: 11

Background
With 78 facilities located throughout the U.S., H&E rents, sells and provides parts and services support for hi-lift or aerial work platform equipment, cranes, earthmoving equipment, and industrial lift trucks. Customers include industrial and commercial companies, construction contractors, manufacturers, public utilities, municipalities, and maintenance contractors.

Quarterly Reports   

September '18: EPS (adjusted) $0.76 per share, even with year-ago. Total revenues up 24% to $322.1 million. Equipment rentals up 24% to $156.0 million. New equipment sales up 39% to $68.2 million. Used equipment sales up 36% to $30.3 million. Gross margin 35.6% of sales vs. year-ago 36.3% (higher is better). Strong revenue growth numbers. Failure to beat year-ago EPS was due to a large year-ago tax credit (tax rate was 26.4% vs. year-ago 11.7%).

June '18: EPS $0.58, up 107%. Total revenues up 25% to $310.4 million. About 6% of that gain was due to recent acquisitions. Equipment rentals up 22% to $143.8 million. New equipment sales up 50% to $68.5 million. Used equipment sales up 33% to $32.1 million. Gross margin 34.8% of sales vs. year-ago 35.0%. 

March '18: EPS $0.26, up 73%. Total revenues up 15% to $260.5 million. Equipment rentals up 21% to $129.4 million. New equipment sales up 36% to $46.5 million. Used equipment sales down 14% to $24.9 million. Gross margin 35.5% of sales vs. year-ago 34.2%. Paid $68.6 million to acquire Rental Inc., a non-residential construction-equipment rental company with branches in Alabama and Florida.

December '17: EPS (adjusted) $0.79, up 126%. Total revenues up 21% to $294.7 million. Equipment rentals up 11% to $127.7 million. New equipment sales up 66% to $74.4 million. Used equipment sales up 29% to $32.11 million. Gross margin 34.2% of sales vs. 34.6%.  Paid $122 million to acquire Contractors Equipment Center, which operated three non-residential contraction equipment rental centers in Denver, Colorado area.

September '17: EPS (adjusted) $0.76, up 130%. Total revenues up 6% to $259.2 million. Equipment rentals up 6% to $125.6 million. Equipment sales up 9% to $71.2 million. Gross margin 36.4% vs. 36.0%.

June '17: EPS $0.28, up 33%. Total revenues up 3% to $249.4 million. Equipment rentals up 9% to $118.4 million. Equipment sales down 5% to $69.8 million. Gross margin 35.0% vs. 33.8%.

March '17: EPS $0.15, down $0.01 vs. year-ago. Total revenues down 8% to $226.8 million. Equipment rentals up 4% to $107.3 million. Equipment sales down 26% to $63.14 million. Gross margin 34.2% vs. 32.9%.

HanesBrands

12/1/20:   HanesBrands (HBI) reported weak September quarter results and expects even lower December quarter numbers. 

HanesBrands reported September quarter earnings (adjusted) of $0.42 per share, $0.03 above analyst forecasts, but down 11% vs. year-ago. Revenues down 3% to $1.81 billion. Innerwear sales up 41% to $792.6 million. Activewear sales down 27% to $324.9 million. International sales down 5% to $632.1 million. Operating cash flow $249.0 million ($0.71/share) vs. year-ago $302.1 million ($0.83/share). Not a good quarter. Even worse, expects December quarter revenues around 10% below the September quarter.

In June, HanesBrands appointed Stephen Bratspies as its new CEO, replacing replacing retiring CEO Gerald W. Evans Jr. Bratspies previously was Walmart's chief merchandising officer.

Background
Hanesbrands makes and markets basic apparel worldwide. Brands include Hanes, Champion, Bonds, DIM, Maidenform, Bali, Playtex, Lovable, Bras N Things, Nur Die/Nur Der, Alternative, L’eggs, JMS/Just My Size, Wonderbra, Berlei, and Gear for Sports. Products divide into three categories; innerwear (underwear and intimate apparel), outerwear (T-shirts, performance apparel, sport shirts, etc.) and international (all products sold outside the U.S.).

Quarterly Reports   

June '20: EPS (adjusted) $0.60, up 58% vs. year-ago. Revenues up 6% to $1.739 billion. Innerwear sales up 67% to $1,094 million. Activewear sales down 52% to $168.4 million. International sales down 20% to $457 million. Operating cash flow $65.423 million ($0.19/share) vs. year-ago $136.928 million ($0.37/share).

Hasbro

4/19:  Things aren't happening as we expected when we added Hasbro to the portfolio about six months ago. One problem is Europe, where a persistent recession is taking a big chunk out of retail sales there. But Hasbro's U.S. business is also lagging estimates. We don't see any signs of a turnaround at hand.

Hasbro reports March quarter results before the bell on April 23. Analysts expect loss of -$0.08 per share vs. year-ago +$0.10. The conference call is set for 8:30 am Eastern on April 23.

In February, Hasbro raised its quarterly dividend by 5% to $0.68 per share.

Expected FY 12/2019 EPS Growth: 10% FY 2020 P/E: 17 

Background
Hasbro is arguably the world leading producer of toys, games, and entertainment products for both  children and adults. Products include Monopoly, Nerf, GI Joe, Play-Doh, etc. International sales account for more than 40% of revenues. Spurred by continuous new product introductions, both sales and earnings were growing at double-digit rates until September 2017, when Toys "R" Us, one of Hasbro's biggest customers, filed for bankruptcy. The continuing liquidation of Toys "R" Us inventories, and to a lesser extent, a retail slowdown in Europe, sunk this year's sales and earnings numbers. Currently, the Toys "R" Us liquidation is nearing an end, but Europe is still having problems. Nevertheless, analysts are forecasting a return to growth for Hasbro in 2019, both in terms of sales and earnings.

Quarterly Reports   

December '18: EPS (adjusted) $1.33, down 42% vs. year ago. Total revenues down 13% to $1.39 billion. U.S. and Canada revenues down 10% to $2.433 billion. International revenues down 17% to $1.848 billion. Entertainment and licensing revenues up 5% to $285.6 million.

September '18: EPS (adjusted) $1.93, down $0.03 vs. year-ago. Total revenues down 12% to $1.57 billion. U.S. and Canada revenues down 7% to $924.2 million. International revenues down 24% to $560.7 million. Entertainment and licensing revenues up 45% to $84.8 million. Due to logistics issues, $50 million (5%) of U.S. & Canada sales slipped into December Q. Despite the weak September Q numbers, Hasbro has a lot of new products in the pipeline that should fuel growth in upcoming quarters.

June '18: EPS 0.48, down 9% vs. year-ago. Total revenues down 7% to $904.5 million. U.S. and Canada revenues down 7% to $904.5 million. International revenues down 11% to $380.4 million. Completed  acquisition of Power Rangers from Saban Properties.

March '18: EPS (adjusted) $0.10 vs. year-ago $0.54. Total revenues down 16% to $716.3 billion. U.S. and Canada revenues down 19% to $364.3 million.. International revenues down 17% to $287.9 million. 

Home Depot

9/18: A year-ago, Home Depot was growing sales around 8% year-over-year.  However, in its most recent quarter, sales growth slowed to 4%. To us, that’s a red flag.  

Home Depot reported April quarter earnings of $2.08 per share, $0.02 above analyst forecasts, and up 25% vs. year-ago. Revenues up 4% to $24.9 billion. Comparable store sales (sales at stores open at least one-year) up 4% vs. year-ago. Expects full year 2018 EPS up 28% to $9.31 and sales up 7% (comp sales up 5%).

In February, Home Depot increased its quarterly dividend by 16% to $1.03 per share.

Expected FY 12/2018 EPS Growth: 26%  CF Payout Ratio: 30%

Background
Operates more than 2,200 retail warehouse stores selling home improvement products for the do-it-yourself and remodeling contractor markets.

Quarterly Reports   

January '18: EPS 1.52, up 6% vs. year-ago. Revenues up 8% to $23.9 billion. Comparable store sales up 8% vs. year-ago. Acquired "The Company Store," a producer and online retailer of bedding and bath textile items.

October '17: EPS 1.84, up 15%. Revenues up 8% to $25.03 billion. Paid $265 million to acquire Compact Power Equipment, which had been offering equipment rental and maintenance services in 1,000 Home Depot stores.

July '17: EPS $2.25, up 14%. Revenues up 6% to $28.108 billion. Operating margin 15.9% of sales vs. 15.5%.

April '17: EPS $1.67, up 16%. Revenues up 5% to $23.887 billion. Operating margin 14.0% of sales vs. 13.5%.In February, dividend up 29% to $0.89.

H.J. Heinz

In February 2013, Heinz agreed to be acquired by Warren Buffett's Berkshire Hathaway for $72.50 per share. Heinz expects its acquisition by Berkshire Hathaway to be completed late in its April quarter, if not then, in the next quarter.

Background
H.J. Heinz makes ketchup, condiments, sauces, frozen foods, soups, beans and pasta meals, infant food, and many other packaged food products. Brands include Lea & Perrins, Ore-Ida, Weight Watchers, Boston Market and T.G.I. Friday’s. 

Quarterly Reports   

January '12: EPS (continuing) $0.99, up 3% vs. year-ago. Revenues up 2% to $2.93 billion.

October '12: EPS (continuing) $0.90, up 11%. Revenues up 0.5% to $2.827 billion. Excluding currency, revenues up 2.9%. North American consumer products sales flat at $795 million. Europe sales down 4% to $808 million. Asia/Pacific up 2% to $606 million. U.S. Foodservice up 4% to $348 million. Other geographic areas up 9% to $270 million. Ketchup and sauces 47% of sales. Meals and snacks 38%. Operating cash flow $242.2 million ($0.75/share) vs. $232.7 million ($0.72/share).   

July '12: EPS (continuing) $0.87, up 10%. Revenues down 1.5% to $2.791 billion. Excluding currency, revenues up 4.2%. North American consumer products sales down 2% to $758 million. Europe down 7% to $778 million. Asia/Pacific down 2% to $673 million. U.S. Foodservice up 2% to $325 million. Other geographic areas up 16% to $281 million.  Operating cash flow $49.04 million ($0.15/share) vs. $164.8 million ($0.51/share). In May, dividend up 7% to $0.515.    

April '12: EPS (continuing) of $0.81, up 16%. Revenues up 6% to $3.050 billion. North American consumer products sales down 2% to $843 million. Europe up 1% to $905 million. Asia/Pacific up 4% to $673 million. U.S. Foodservice up 4% to $352 million. Other geographic areas up 111% to $247 million. Operating cash flow $749.6 million ($2.34/share) vs. $442.1 million ($1.37).  

January '12: EPS (continuing) $0.95, up 13%. Counting non-recurring, EPS $0.88, up 5%. Revenues up 7% to $2.918 billion. North American consumer products sales down 1%. Europe up 3%. Asia/Pacific up 8%. U.S. Foodservice up 2%. Other geographic area up 112%. Operating cash flow $346.0 million ($1.07/share) vs. $509 million ($1.59).

October '11: EPS (continuing) $0.81, up 4%. Revenues up 8% to $2.83 billion. North American consumer product sales down 1%. Europe up 6%. Asia/Pacific up 12%. U.S. Foodservice down 3%. Other geographic area up 107%. Operating cash flow $232.7 million ($0.72/share) vs. $359.7 million ($1.13/share). Special charges to improve manufacturing efficiency cut cash flow by $0.40.    

July '11: EPS (excluding special charges) $0.78, up $0.02. Including charges for factory closings, EPS $0.70. Revenues up 15% to $2.85 billion. Excluding currency changes, revenues up 8%. North American consumer products sales up 2% to $775 million. Europe up 17% to $838 million. Asia/Pacific up 20% to $671 million. U.S. Foodservice down 1% to $325 million. Other geographic areas up 103% to $241 million. Operating cash flow $167.8 million ($0.52/share) vs. $272.4 million ($0.86/share). In May, dividend up 7% to $0.48.

April '11: EPS $0.70, up 15%. Revenues up 6% to $2.89 billion. Excluding currency, revenues up 3%. North American consumer products sales flat at $862 million. Europe up 6% to $893 million. Asia/Pacific up 19% to $647 million. U.S. Foodservice up 1% to $369 million. Other geographic areas up 1% to $117 million. For fiscal year ending April, operating cash flow $442.1 million ($1.37 per share). Earnings call transcript. Completed acquisition of 80% stake in Brazil-based Coniexpress S.A. Industrias Alimenticias, which made Quero brand tomato-based sauces, tomato paste, ketchup, etc. Quero did $325 million in annual sales.

January '11: EPS $0.85, up $0.02 (continuing). Revenues up 1% to $2.72 billion. Excluding currency, revenues up 3%. Operating cash flow up 3% to $509 million ($1.59 per share). North American consumer products sales up 3% vs. to $839 million. Europe  down 5% to $832 million. Asia/Pacific up 17% to $584 million. U.S. Foodservice down 1% to $353 million. Other geographic areas down 15% to $114 million. Earnings call transcript.

October '10: EPS (continuing) $0.78, up $0.02. Revenues down 1% to $2.615 billion. Operating cash flow up 1% to $297 million ($0.92 per share). North American consumer products sales up 1% to $803 million. Europe down 5% to $798 million. Asia/Pacific up 8% to $531 million. U.S. Foodservice down 3% to $362 million. Other geographic areas down 19% to $120 million. Ketchup and sauces  43% of sales. Meals and snacks 41%. Earnings call transcript.  

July '10: EPS $0.75, up 10% vs. year-ago (continuing). Revenues up 2% to $2.48 billion. July Q operating cash flow up 61% to $272 million ($0.69 per share). North American consumer products sales up 5% to $762 million. Europe down 8% to $713 million. Asia/Pacific up 19% to $558 million. U.S. Foodservice down 2% to $329 million. other geographic areas down 13% to $119 million. Earnings call transcript. Bought China soy sauce and bean curd maker for $165 million. Deal boosts China annual sales to $300 million. In May, dividend up 7% to $0.45.  

April '10: EPS $0.60, up 9%. Revenues up 8% to $2.72 billion. For fiscal 4/10, operating cash flow up 8% to $1.26 billion ($3.94 per share). North American consumer products sales up 7% to $858 million. Europe up 7% to $840 million. Asia/Pacific up 27% to $546 million. U.S. Foodservice down 2% to $365 million. In other areas, down 5% to $116 million.  

January '10: EPS (continuing) $0.83, up 9%. Counting discontinued, EPS $0.72 vs. $0.76. Operating cash flow up 69% to $493 million ($1.55 per share). Revenues up 13% to $2.68 billion. North American consumer products sales up 7% to $815 million. Europe up 12% to $878 million. Asia/Pacific up 41% to $500 million. U.S. Foodservice down 3% to $355 million. In other areas, sales up 17% to $133 million. Sold "Appetizers And" unit, a frozen hors d’oeuvres business that had $38 million in sales in fiscal 2009. Took $11 million related charge ($0.12/share).

October '09: EPS (continuing) $0.76, vs. 0.86. Operating cash flow up 49% to $340 million. Revenues up 3% to $2.67 billion. North American consumer products sales down 4% to $791.5 million. Europe down 3% to $859 million. Asia/Pacific up 27% to $492 million. U.S. Foodservice sales down 1% to $382 million. Earnings call transcript.

July '09: EPS  $0.67 vs. $0.72. Operating cash flow $120.8 million vs. loss. Revenues down 4% to $2.47 billion. North American sales down 2% to $727.2 million, European sales down 14% to $788.8 million, Asia/Pacific sales up 2% to $469.2 million. Excluding currency exchange effects, total revenues up 5%. Earnings call transcript. In May, dividend up 1% to $0.42.    

April '09: EPS 0.55 vs. $0.62. Revenues down 6% to $2.538 billion. Excluding currency exchange, North America sales down 6%, Europe up 6%. Asia/Pacific up 5%. Ketchup and sauces were 42% of sales, meals and snacks 42%, and infant/nutrition products 11%. Free cash flow down 11% to $556.3 million ($1.75 per share). Earnings call transcript.   

January '09: EPS $0.76, +12%. Revenues -8% to $2.41 billion. Excluding currency, revenues +4%. Earnings call transcript.

October '08: EPS $0.867, +23%. Revenues +4% to $2.61 billion. 

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Johnson & Johnson

9/1/21:  Analysts have been cutting forecasts and now expect Johnson & Johnson to report around 4% revenue growth next year. That’s not enough to qualify for a growth stock “buy” rating.

J&J is moving its talc products, including baby powder, into a separate unit that would then file for bankruptcy. Thousands of claims related to alleged asbestos in J&J's baby powder causing cancer have been filed.

J&J's CEO since 2012, Alex Gorsky, stepped down as CEO, but will continue to serve as J&J's executive chairman. Gorsky was replaced by Joaquin Duato, currently vice chair of J&J's executive committee. Analysts don't expect the change to have much effect on J&J's future outlook.

In July, major retailers including Target, CVS Health and Wal-Mart removed J&J's Neutrogena sunscreens from their shelves after JNJ detected low levels of cancer causing chemical benzene in Neutrogena.

In May, the U.S. Supreme Court rejected Johnson & Johnson's appeal of a $2 billion verdict in favor of women who claim they developed ovarian cancer from using Johnson & Johnson's talc products. A Missouri jury had initially awarded the women $4.7 billion, but a state appeals court cut the award to $2 billion. The jury found that the company’s talc products contain asbestos and asbestos-laced talc can cause ovarian cancer. 

In April, J&J raised its quarterly dividend by 5% to $1.06 per share.

In February, J&J's COVID single-shot vaccine, which it found to be  66% effective at preventing moderate to severe illness, and 85% protective against the most serious symptoms, was approved by the U.S. government for emergency use. J&J also entered into an agreement with Merck, whereby Merck will produce J&J's COVID vaccine in its own factories.

Background
Johnson & Johnson, a global healthcare company, develops and manufactures pharmaceuticals, medical devices, and consumer health products. 

Quarterly Reports 

June '21: EPS (adjusted) $2.48, up 49% vs. year-ago. Revenues up 27% to $23.3 billion.  Consumer Health revenues up 10% to $3.74 billion. Pharmaceuticals sales up 14% to $12.60 billion. Medical Devices up 63% to $6.98 billion.

March '21: EPS (adjusted) $2.59, up 13%. Revenues up 8% to $22.32 billion. Consumer Health revenues down 3% to $3.54 billion. Pharmaceuticals sales up 7% to $12.20 billion. Medical Devices up 9% to $6.58 billion.

December '20: EPS (adjusted) $1.86, down 1%. Revenues up 7% to $22.5 billion. Consumer Health revenues up 2% to $3.62 billion. Pharmaceuticals sales up 15% to $12.27 billion. Medical Devices down 2% to $6.59 billion. In November, A New York state judge ordered Johnson & Johnson to pay $120 million in damages to a Brooklyn woman after she blamed her cancer on asbestos exposure from using the company's baby powder. 

September '20: (adjusted) $2.20 per share, up 4%. Revenues up 2% to $21.1 billion. Consumer Health revenues up 3% to $3.51 billion. Pharmaceuticals sales up 5% to $11.42 billion. Medical Devices down 3% to $21.1 billion. Agreed to pay $6.5 billion to acquire Momenta Pharmaceuticals, which specializes in developing drugs to treat rare autoimmune diseases.

June '20: EPS (adjusted) $1.67, down 35%. Revenues down 11% to $18.34 billion. Consumer Health revenues down 3% to $3.30 billion. Pharmaceuticals sales up 4% to $10.75 billion. Medical Devices down 33% to $4.29 billion. In April, dividend up 6% to $1.01.

March '20: EPS (adjusted) $2.30, up 10%. Revenues up 6% to $20.7 billion. Consumer Health revenues up 11% to $3.63 billion. Pharmaceuticals sales up 10% to $11.13 billion. Medical Devices down 5% to $5.93 billion. 

Background
A diversified healthcare products maker, J&J consists of more than 250 operating companies in 60 countries. Its Consumer segment includes products for use in the baby care, skin care, oral care, wound care, and women’s health fields, nutritional and over-the-counter pharmaceutical products. Pharmaceuticals include a wide range of products including Remicade for the treatment of immune mediated inflammatory diseases; Procrit/Eprex to stimulate red blood cell production; Risperdal ConstaI for the management of bipolar I disorder, and many more. Medical devices and diagnostics includes products for orthopaedic joint reconstruction, spinal care, etc.  

Quarterly Reports  

September '14: EPS (continuing) of $1.50 per share, $0.06 above analyst forecasts and up 10% vs. the year-ago quarter. Total revenues up 5% to $18.467 billion. Consumer sales down 1% vs. year-ago to $3.589 billion. Pharmaceutical sales up 18% to $8.307 billion. Medical device and diagnostic sales down 5% to $6.571 billion.June '14: EPS (continuing) $1.66, up 12% vs. year-ago. Total revenues up 9% to $17.575 billion. Consumer sales up 2% vs. year-ago to $3.744 billion. Pharmaceutical sales up 21% to $8.509 billion. Medical device and diagnostic sales up 1% to $7.242 billion. Completed sale of Ortho Clinical Diagnostics unit, which makes blood screening devices and tests, to the Carlyle Group for $4.15 billion. In April, dividend up 6% to $0.70. In September, agreed to pay $1.75 billion to acquire privately held Alios BioPharma, a developer of therapies for viral infections.

March '14: EPS (continuing) $1.54, up 7%. Total revenues up 4% to $18.115 billion (up 5% excluding currency). Consumer sales down 3% to $3.557 billion. Pharmaceutical sales up 11% (12% ex-currency) to $7.498 billion. Medical device and diagnostic sales were flat at $7.060 billion. Agreed to sell Ortho Clinical Diagnostics unit, which made blood screening devices and tests, for $4.15 billion.

December '13: EPS (adjusted) $1.24, up 4% (gain due to income tax credit). Pre-tax EPS (adjusted) $1.36 vs. year-ago $1.45. Total revenues up 5% to $18.355 billion. Consumer sales up 3% to $3.753 billion. Pharmaceutical sales up 12% to $7.296 billion. Medical device and diagnostic sales down 1% vs. year-ago to $7.306 billion. Agreed to pay $2 billion to U.S. Justice Dept. and 45 states to settle claims about misrepresentations related to antipsychotic drug RISPERDAL from 1999 through 2005.

September '13: EPS (continuing) $1.36, up 9%. Including non-recurring, EPS $1.04. Total revenues up 3% to $17.575 billion. Consumer sales up 2% to $3.611 billion. Pharmaceutical sales up 11% to $7.036 billion. Medical device and diagnostic sales even at $6.928 billion.  Completed acquisition of treatment for advanced prostate cancer for $650 million. Sold o.b. tampon, Stayfree pad and Carefree liner feminine care brands in the U.S., Canada and the Caribbean to Energizer for $185 million.

June '13: EPS (adjusted) $1.48, up 14%. Total revenues up 9% to $17.877 billion. Recently acquired Synthes accounted for more than half of the revenue growth. Consumer sales up 1% to $3.658 billion. Pharmaceutical sales up 12% to $7.025 billion. Medical device and diagnostic sales up 10% to $7.194 billion. In April, dividend up 8% to $0.66.

March '13: EPS (continuing) $1.44, up 2%. Total sales up 9% to $17.505 billion. Consumer sales up 2% to $3.675 billion. Pharmaceutical sales up 10% to $6.768 billion. Recently acquired Synthes accounted for more than half of revenue growth. Medical Device and Diagnostics sales up 10% to $7.062 billion. Started recalling and replacing more than 2 million meters used to measure blood glucose levels in diabetics due to a failure to operate properly at extremely high glucose readings.  

December '12: (continuing) $1.19, up 5%. Total sales up 8% to $17.558 billion. Recently acquired Synthes accounted for most of the sales growth. Consumer sales up 0.4% to $3.652 billion. Pharmaceutical sales grew 7% to $6.525 billion. Medical Device and Diagnostics sales up 14% to $7.381 billion.

September '12: EPS (continuing) $1.25, up $0.01. Total sales up 7% to $17.052 billion. Consumer sales down 4% to $3.581 billion. Pharmaceutical sales up 7% to $6.402 billion. Medical Device and Diagnostics up 13% to $7.069 billion. Said an experimental treatment for type 2 diabetes proved effective at reducing blood sugar in patients on long-term insulin therapy and at high risk for heart problems. If approved, would be JNJ's first diabetes drug.

June '12: EPS (continuing) $1.30, up 2%. Effective tax rate 21.6% vs. 19.6%. Pre-tax earnings up 5%. Total sales down 1% to $16.475 billion. Consumer sales down 5% to $3.619 billion. Pharmaceutical sales up 1% to $6.291 billion. Medical Device and Diagnostics sales even at $6.565 billion. Completed acquisitions of orthopedics device maker Synthes, Corimmun GmbH, a privately held drug development company in Germany, Guangzhou Bioseal Biotech, and a privately held biopharmaceutical company based in China. In April, dividend up 7% to $0.61.  

March '12: EPS $1.41, up 13%. EPS (adjusted) $1.37, up 2%. Total sales even at $16.139 billion. Consumer sales down 2%. Pharmaceutical sales up 1%. Medical Device and Diagnostics sales even.  

December '11: EPS $0.08 vs. $0.70. EPS (adjusted) $1.13, up 10%. Total sales up 4% to $16.255 billion. Consumer sales up 2%. Pharmaceutical sales up 7%. Medical Device and Diagnostics sales up 3%.

Kraft Heinz

7/1/17: Kraft Heinz is king of the packaged food business, but consumers are opting instead for locally grown, organic products. We don't see that changing anytime soon and Kraft Heinz isn't changing fast enough.

Expected FY 12/2017 EPS Growth: 10%  CF Payout Ratio: 55%

Background
In October 2012, Kraft Foods spun off its North American consumer packaged food and beverage business into Kraft Foods Group and renamed its international business; Mondelez International (MDLZ). In July, 2015 Kraft Foods merged with H.J. Heinz, which was taken private by 3G Capital and Warren Buffet's Berkshire Hathaway in 2013. Berkshire Hathaway and 3G Capital invested an additional $10 billion in Kraft Heinz. 3G Capital, an investment group founded by a trio of Brazilian billionaires, partnered with Berkshire to take Heinz private in 2013 in a $23 billion deal.

Quarterly Reports   

March '17: EPS (adjusted) of $0.84, up 15% vs. year-ago. Total revenues down 3% to $6.364 billion. U.S. sales down 4% vs. year-ago, Canadian sales down 12%, European sales down 7%, rest of world up 8%.

December '16: EPS (adjusted) $0.91, up 47%. Revenues down 2% to $6.857 billion. U.S. sales down 3% vs. year-ago, Canadian sales down 2%, and European sales down 13%. Year-ago quarter was 14 weeks vs. this year's 13 weeks.

September '16: EPS (adjusted) up 89%. Pro forma (as if Kraft and Heinz had already merged) revenues down 2% to $6.267 billion. U.S. sales down 1%, Canadian sales up 2%, and European sales down 8%.  In August, dividend up 4% to $0.60.

June '16: EPS (adjusted) $0.85, up 39%. Pro forma revenues down 5% to $6.793 billion. U.S. sales down 2%, Canadian sales up 1%, and European sales down 2%. 

March '16: EPS (adjusted) $0.73, up 38%. Pro forma revenues down 4% to $6.570 billion.  U.S. sales flat, but Canadian sales down 9%, and European sales down 12% (comparisons "pro forma").

December '15: EPS (adjusted) $0.62, up 11%. Revenues (pro forma) down 5% to $7.124 billion. U.S. sales flat, Canadian sales down 16%, and European sales down 14%. In November, dividend up 4.5% to $0.575.

September '15: EPS (pro forma) $0.44, down $0.02. Revenues (pro forma) down 9% to $6.363 billion.

June '15: KHC reported June quarter numbers, when Kraft and Heinz were still separate companies. Kraft reported EPS of $0.92 on revenues of $4.515 billion and Heinz reported $739 million EBITDA (adjusted) on revenues of $2.616 billion.

March '15: EPS $0.72 vs. $0.86. Revenues flat at $4.352 billion. Cheese products sales up 1% to $1.020 billion. Refrigerated food sales up 2% to $833 million. Beverage product sales up 4% to $702 million. Operating cash flow $334 million ($0.56/share) vs. $251 million ($0.42/share). In January, CEO, Tony Vernon retired, possibly at the Board's suggestion. He was replaced by Board Chairman John Cahill.

December '14: EPS loss of -$0.68. Excluding non-cash loss related to employee benefit plans, EPS $0.75 vs. year-ago $1.54. Revenues up 2% to $4.696 billion. Cheese products sales up 8% to $1.158 billion. Refrigerated food sales up 6% to $793 million. Beverage product sales down 3% to $577 million. Operating cash flow totaled $1,140 million ($1.94/share) vs. year-ago $924 million ($1.54/share). In October, dividend up 5% to $0.55.  

September '14: EPS (continuing) $0.78, up 22%. Revenues flat at $4.400 billion. Cheese products sales up 2% to $937 million. Refrigerated food sales up 3% to $908 million. Beverage product sales up 1% to $628 million. Operating cash flow $426 million ($0.71/share) vs. $720 million ($1.20/share).

June '14: EPS $0.80 vs. $0.76 (operating). Revenues up 1% to $4.747 billion. Cheese products sales up 2% to $952 million. Refrigerated food sales up 3% to $816 million. Beverage product sales even at $748 million. Operating cash flow $203 million ($0.34/share) vs. $167 million ($0.28/share).

March '14: EPS (continuing) $0.78, up $0.02. Revenues down 3% to $4.362 billion. Cheese products sales up 2% to $996 million. Refrigerated food sales even at $816 million. Beverage product sales down 5% to $674 million. Operating cash flow $251 million ($0.42/share) vs. $232 million ($0.39/share).

December '13: EPS $1.54. Revenues up 2% to $4.595 billion. Cheese products sales down 1% to $1,069 million. Refrigerated food sales up 7% to $746 million, and Beverage product sales up 6% to $597 million. Operating cash flow (12-months) $2,043 million ($3.44/share).

Leggett & Platt 

This maker of furniture and bed components, among other products, is facing headwinds due to a swing to premium beds and mattresses as well as a continued slow housing market. We're selling Leggett & Platt so that we can focus on stocks with stronger growth prospects.

Expected FY 12/2012 EPS Growth: 10%  Div/CF Ratio:  

Background
Founded in 1883, by late 2007 Leggett had 13,000 employees at 300 or so plants in more than 20 countries. LEG produces components used to make a variety of products found in homes, offices, retail stores and automobiles. Until late 2007, acquisitions accounted for most of LEG's growth. However, in November 2007, LEG increased its dividend by 39% and announced a change in strategy, emphasizing shareholder return rather than sales growth. To achieve that goal, LEG planned to focus on businesses where it has a competitive advantage and can enjoy healthy profit margins. It planned to divest existing product lines that didn't meet those requirements.

Quarterly Reports   

March '12: EPS $0.30, even with year-ago. Revenues up 6% to $946.3 million. Residential furnishing sales up 7% to $491 million. Commercial fixturing down 11% to $113 million. Industrial materials up 15% to $168 million. Specialized products up 6% to $176 million. Gross margin 18.8% of sales vs. year-ago 19.0%. Operating cash flow $65.1 million ($0.45/share) vs. year-ago $46.8 million ($0.31/share). Completed acquisition of a fabricator of titanium, nickel, and other specialty materials for the aerospace industry.  

December '11: EPS (adjusted) $0.22, up $0.01 vs. year-ago. Including restructuring, EPS $0.06. Revenues up 7% to $854.1 million. Residential furnishing sales up 6% to $434 million. Commercial fixturing down 4% to $96.9 million. Industrial materials up 20% to $148 million. Specialized products up 4% to $175 million. Gross margin 16.7% of sales vs. year-ago 17.6%. Operating cash flow $126.9 million ($0.88/share) vs. year-ago $154.1 million ($1.01/share). Earnings call transcript. 

September '11: EPS $0.31, even. Revenues (continuing) up 9% to $940.9 million. Residential furnishing sales up 6% to $470 million. Commercial fixturing sales down 5% to $141 million. Industrial materials up 24% to $157 million. Specialized products up 16% to $173 million. Gross margin 18.1% vs. 19.5%. Operating cash flow $101.0 million ($0.70/share) vs. $90.5 million ($0.59/share). Earnings call transcript. In July, dividend up 4% to $0.28.

June '11: EPS (continuing) $0.35, up $0.01. Revenues up 8% to $945 million. Residential furnishing sales up 2% to $465 million. Commercial fixturing sales down 2% to $137 million. Industrial materials up 26% to $166 million. Specialized products up 21% to $176 million. Gross margin 19.2% vs. 20.6%. Operating cash flow $44.2 million ($0.30/share) vs. $66.8 million ($0.43/share). Earnings call transcript.

March '11: EPS $0.30, up $0.01. Revenues up 10% to $895.8 million. Residential furnishing sales up 1% to $458 million. Commercial fixturing sales down 9% to $128 million. Industrial materials up 26% to $146 million. Specialized products up 29% to $165 million. Gross margin 19.0% vs. 20.3%. Operating cash flow $46.8 million ($0.31/share) vs. $51.1 million ($0.33/share). Earnings call transcript.

December '10: EPS (continuing) $0.21 vs. $0.26. Revenues up 4% to $801.9 million. Residential furnishing sales up 1% to $411 million. Commercial fixturing up 1% to $102 million. Industrial materials up 8% to $170 million. Specialized products up 17% to $177 million. Gross margin 17.6% vs. 22.1%. Operating cash flow $154.5 million ($1.01/share) vs. $134.9 million ($0.86/share). Earnings call transcript. In October, dividend up 4% to $0.27.

September '10: EPS $0.31 vs. $0.34. Revenues up 7% to $866.5 million. Gross margin 19.5% vs. 23.1%. Operating cash flow $90.5 million ($0.59/share) vs. $142.0 million ($0.88/share). Earnings call transcript. Sold Storage Products business, completing divesture program announced in November 2007 to implement strategy of focusing on businesses with competitive advantages, value-added engineering and manufacturing operations, and significant barriers to entry. In July, dividend up 4% ($0.01) to $0.27.  

June '10: EPS $0.34 vs. $0.12. Revenues up 15% to $874.3 million. Gross margin 20.6% of sales vs. 19.4%. Operating cash flow $66.8 million ($0.43/share) vs. $173.6 million ($1.07/share). Repurchased 2.3 million shares, cutting shares out to 146.6 million. Earnings call transcript. 

March '10: EPS (continuing) $0.29 vs. $0.02. Revenues up 14% to $816.4 million. Gross margin 20.3% vs. 17.4%. Operating cash flow $51.1 million ($0.33/share) vs. $114.8 million ($0.71/share). Earnings call transcript.

December '09: EPS (continuing) $0.30, vs. $0.03. Counting non-recurring, EPS $0.23. Revenues down 13% to $770 million. Operating cash flow down 42% to $135 million. Residential furnishings sales down 9% to $414 million. Commercial fixture sales down 21% to $100 million. Industrial materials down 21% to $115 million. Specialized products down 4% to $141 million. Earnings call transcript.  

September '09: EPS (continuing) $0.34, +17%. Counting discontinued, EPS $0.34 vs. $0.20. Operating cash flow +85% to $142.0 million. Revenues -28% to $810 million. Residential furnishings sales -23% to $441 million. Commercial fixtures -27% to $142 million. Industrial materials -43% to $115 million. Specialized products -29% to $112 million. Earnings call transcript. In August, dividend up 4% to $0.26.    

June '09: EPS $0.12 vs. $0.25. Revenues (continuing) -29% to $757 million. Operating cash flow +137% to $173.6 million. Earnings call transcript.   

March '09: EPS (continuing) $0.06, -28%. Operating cash flow +110% to $115 million. Revenues -28% to $718.1 million.

Back to Mfg & Services

Lockheed Martin

1/1/21:  Lockheed has underperformed and we don't see a turnaround coming.

Lockheed agreed to acquire space and missile defense specialist Aerojet Rocketdyne Holdings Inc. for around $4.6 billion in cash. The deal would make LMT one of the largest makers of rocket motors for space launch vehicles and missiles. Aerojet Rocketdyne is making the propulsion systems for the Orion deep-space capsule that Lockheed is building for NASA.

In October, Lockheed raised its quarterly dividend by 8% to $2.60 per share. 

Background
Mainly sells defense systems to the U.S. and other governments, an industry expected to experience rapid growth this year. Aerospace products, which includes all varieties of fixed-wing military aircraft, accounts for 40% of sales. Rotary (helicopter) systems, at 30% of sales, comes next. Lately, Lockheed has been raising its dividend around 10% annually.

Quarterly Reports   

September '20: EPS (continuing), up 10% vs. year-ago. Revenues up 9% to $16.495 billion. Operating margin 13.0% of sales vs. 13.9% (higher is better). Aeronautics, with sales up 6% to $6,680 million, accounted for 41% of sales and 40% of operating earnings. Operating cash flow $1,880 million ($6.70/share) vs. $2,490 million ($8.77/share).

June '20: EPS $5.79, up 16%. Revenues up 13% to $16.22 billion. Operating margin 12.4% vs. 13.9%. Aeronautics, with sales up 1% to $6,503 million, accounted for 40% of sales and 41% of operating earnings. Operating cash flow $2,182 million ($7.77/share) vs. $1,668 million ($5.88/share).

March '20: EPS (adjusted) $6.88, up 2%. Revenues up 10% to $15.65 billion. Operating margin 11.6% of sales vs. 12.0%. Aeronautics, with sales up 14% to $6,369 million, accounted for 41% of sales and 39% of operating earnings. Operating cash flow $2,314 million ($8.19/share) vs. $1,663 million ($5.85/share).  

December '19: EPS $5.29, up 21%. Revenues up 10% to $15.878 billion. Operating margin 13.5% of sales vs. 12.8%. Aeronautics, with sales up 9% to $6,381 million, accounted for 40% of sales and 41% of operating earnings. Operating cash flow $1,490 million ($5.26/share) vs. $2,217 million ($7.77/share). In October, dividend up 9% to $2.40.

September '19: EPS $5.66, up 10%. Revenues up 6% to $15.17 billion. Operating margin 13.9% vs. 13.7%. Aeronautics, with sales up 10% to $6,178 million, accounted for 41% of sales and 41% of operating earnings. Operating cash flow $2,490 million ($8.77/share) vs. $361 million ($1.26/share).

June '19: EPS (adjusted) $4.95, up 15%. Revenues up 8% to $14.427 billion. Operating margin 13.9% vs. 13.4%. Aeronautics, with sales up 4% to $5,550 million, accounted for 39% of sales and 38% of operating earnings. Operating cash flow $1,668 million ($5.88/share) vs. -$72 million (-$0.25/share).

March '19: EPS $5.99, up 49%. Revenues up 23% to $14.34 billion. Operating margin 15.9% vs. 14.8%. Aeronautics, with sales up 27% to $5,584 million, accounted for 39% of sales and 34% of operating earnings. Operating cash flow $1,663 million ($5.85/share) vs. $632 million ($2.23/share).

December '18: EPS (continuing) $4.39 vs. -$2.85 loss. Revenues up 4% to $14.41 billion. Operating margin 12.8% vs. 14.1%. Aeronautics, with sales up 4% to $5,881 million, accounted for 41% of sales and 41% of operating earnings. Operating cash flow $2,217 million ($7.77/share) vs. $1,512 million ($5.29/share).

September '18: EPS $5.14,up 55%. Revenues up 16% to $14.32 billion. Operating margin 13.7% vs. 13.6%. Aeronautics sales up 20% to $5,642 million, accounted for 39% of sales and 38% of operating earnings. Operating cash flow $361 million ($1.26/share) vs. $1,800 million ($6.21/share). In September, dividend up 10% to $2.20. 

June '18: EPS $4.05, up 23%. Non-recurring charges cut EPS by $0.26. Revenues up 7% to $13.398 billion. Operating margin 13.4% vs. 13.7%. Aeronautics sales up 8% to $5,321 million, accounted for 40% of sales and 39% of operating earnings. Operating cash flow -$72 million (-$0.25/share) vs. $1,544 million ($5.30/share).

March '18: EPS $4.02, 19%. Revenues up 4% to $11.64 billion. Aeronautics sales up 7% to $4,398 million, accounted for 38% of sales and 36% of operating earnings. Operating cash flow $632 million ($2.20/share) vs. $1,666 million ($5.69/share).

December '17: EPS (adjusted) $4.30, up 32%. Revenues up 10% to $15.137 billion. Aeronautics sales up 12% to $6,046 million, accounted for 40% of sales and 44% of operating earnings. Operating cash flow $1,512 million ($5.29/share) vs. $729 million.

September '17: EPS (continuing) $3.24 vs. $3.61. Revenues up 5% to $12.169 billion. Aeronautics sales up 14% to $4,771 million, accounted for 39% of sales and 41% of operating earnings. Operating cash flow $1,754 million ($6.05/share) vs. $1,320 million ($4.37/share). Order backlog $103.6 billion. Dividend up 10% to $2.00.

June '17: EPS (continuing) $3.23 vs. $2.93. Revenues up 10% to $12.685 billion. Aeronautics sales up 19% to $5,225 million, accounted for 41% of sales and 41% of operating earnings. Operating cash flow $1,544 million ($5.30/share) vs. $1,473 million ($4.80/share). Order backlog $92.1 billion.

McDonald's  

June '21: EPS (adjusted) $2.37 vs. $0.66. Revenues up 57% to $5.888 billion. Global comparable store sales up 6.9% vs. 2019. Said would close hundreds of restaurants located in Wal-Mart (WMT) stores, the result of more online shopping and the rising dependence of fast-food restaurants on drive-through windows for sales, which Wal-Mart did not offer. 

March '21: EPS $1.92 per share, up 31%. Revenues up 9% to $5.12 billion. Global comparable store sales up 7.5%. U.S. comparable store sales up 13.6%.

December '20: EPS $1.70, per share, down 14%. Revenues down 2% to $5.31 billion. Global comparable store sales down 1.3%. U.S. comparable store sales up 5.5%. In November, dividend up 3% to $1.29. 

September '20: EPS (adjusted) $2.22, up 5%. Revenues down 2% to $5.418 billion. Global comparable store sales down 2.2%. U.S. comparable store sales up 4.6%.

June '20: EPS (adjusted) $0.66 per share vs. $2.05. Revenues down 30% to $3.762 billion. Adjusted earnings included a $0.08 per share charge related to the sale of its business in the India Delhi market. Also, McDonald’s gave away more than 10 million free meals to frontline workers during the quarter.

March '20: EPS $1.47 per share, down 15% vs. year-ago. Revenues down 6% to $4.714 billion.

Sold 8/1/13

Thanks to a string of successful new product introductions spanning several years, McDonald's enjoyed strong sales growth, at least for a company of its size. Recently though, McDonald's new products haven't done much for sales and growth has stalled. 

Expected FY 12/2013 EPS Growth: 5%  Div/CF Ratio: 42%

Background 

Founded in 1954, McDonald's sold its billionth burger in 1962 and opened its first non-U.S. store in Canada in 1967. It opened in Russia in 1990 an in China in 1992. Business and profits lagged during the early 2000s until McDonald's overhauled its menu with an emphasis on healthier items in 2003. In 2008, McDonald's began offering premium coffees in some of its outlets. Although paying annual dividends since 1976, McDonald's paid its first quarterly dividend, $0.375 per share, in February 2008, and increased that payout by 33% in September 2008. In September, dividend up 10% to $0.77.

Quarterly Reports    

MCD reported June 2013 quarter earnings of $1.38 per share, $0.02 below analysts' forecasts, but 5% above the year-ago quarter. Excluding currency effects, EPS was up 6%. Total revenues rose 2% vs. year-ago to $7.084 billion. Sales at company-operated stores rose 2% vs. year-ago to $4.761 billion. Franchised store revenues up 4% to $3.222 billion. The operating margin totaled 31.0% of sales vs. year-ago 31.2% (higher is better).  

March '13: EPS $1.26, up 2% vs. year-ago. Excluding currency effects, EPS up 3%. Total revenues up 1% vs. year-ago to $6.605 billion. Sales at company-operated stores flat at $4.445 billion. Franchised store revenues up 2% to $2.160 billion. Operating margin 29.5% of sales vs. year-ago 30.0%.

December '12: EPS of $1.38, up 4%. Total revenues up 2% to $6.952 billion. Sales at company-operated stores up 2% to $4.658 billion. Franchised store revenues up 3% to $2.294 billion. Operating margin 31.6% vs. 31.1%.

September '12: EPS $1.43, down 1%. Excluding currency exchange, EPS $1.51. Total revenues flat at $7.152 billion. Excluding currency, revenues up 4%. Company-operated store sales flat at $4.838 billion. Franchised store revenues flat at $2.314 billion. Operating margin 39.0% vs. 33.4%.

June '12: EPS $1.32, down 0.03. Total revenues flat at $6.916 billion. Excluding currency effects, EPS up 3% and revenues up 5%. Company-operated store sales down 1% to $4.674 billion. Franchised store revenues up 2% to $2.242 billion. Operating margin 31.2% vs. 31.7%. Earnings call transcript. CEO retired on June 30. Chief Operating Officer Don Thompson became CEO.

January '12: EPS $1.23, up 7%. Total revenues up 7% to $6.547 billion. Company-operated store revenues up 7%. Franchised revenues up 8%. Operating margin 30.0% vs. 29.9%. 

December '11: EPS $1.33, up 15%. Total revenues up 10% to $6.823 billion. Company-operated store revenues up 10%. Franchised stores up 9%. Operating margin 31.1% vs. 29.9%. Earnings call transcript.  

September '11: EPS $1.45, up 12%. Total revenues up 8% to $7.166 billion. Company-operated store revenues up 14%. Franchised store revenues up 12%. Operating margin 33.4% vs. 33.3%. In September, dividend up 15% to $0.70.

June '11: EPS $1.35, up 19%. Excluding currency, EPS up 11%. Total revenues up 16% to $6.905 billion. Company-operated store revenues up 17% to $4.697 billion. Franchised stores up 14% to $2.208 billion. Operating margin 31.5% of sales vs. 31.0%.  

March '11: EPS $1.15, up 15%. Total revenues up 9% to $6.112 billion. Company-operated stores up 9% to $4.153 billion. Franchised stores up 8% to $1.959 billion. Operating margin 29.9% vs. 29.8%.

December '10: EPS $1.16, up 5%. Revenues up 4% to $6.214 billion. Company-operated stores revenues up 3% to $4.170 billion. Franchised stores up 5% to $2.044 billion. Operating margin 29.9% vs. 30.6%.

September '10: EPS $1.29, up 12%. Revenues up 4% to $6.305 billion. Excluding currency, revenues up 6%. Company-operated stores revenues up 4% to $4.247 billion. Franchised stores up 5% to $2.058 billion. Operating margin 33.3% vs. 32.0%. Earnings call transcript. In September, dividend up 11% to $0.61.   

June '10: EPS 1.13, up 15%.  Revenues up 5% to $5.946 billion. Company-operated stores up 4% to $4.013 billion. Franchised stores up 8% to $1.932 billion. Operating margin 31.0% vs. 29.8%. Earnings call transcript.  

March '10: EPS $0.95 (excluding currency), up 9%. Revenues up 4% (excluding currency) to $5.610 billion. Operating margin quarter 29.8% of vs. 27.6%. Earnings call transcript. McDonald's Japan (50%-owned affiliate) planned to close 430 restaurants (out of 3,700 total) over 12-18 months.

December '09: EPS (continuing) $0.96, +10%. Operating margin 30.6% vs. 27.0%. Revenues +7% to $5.973 billion. Earnings call transcript.

September '09: EPS $1.15, +10%. Revenues -4% to $6.05 billion. Operating margin 29.9% vs. 27.5%. New line of $4 burgers made with one-third pound of Angus beef targeted at customers looking for an alternative to pricier burgers at sit-down restaurants. In September, dividend +10% to $0.55.  

June '09: EPS (continuing) $0.97, +3%. Including non-recurring, EPS $0.98 vs. $1.04. Currency cut EPS $0.09. Revenues -7% to $5.65 billion. Excluding currency, sales +5% in U.S., +7% in Europe, and +4% in Middle East and Africa. Planned to open 40 more units in India, bringing total to 200.

March '09: EPS (continuing) $0.83, +$0.02. Currency cut EPS $0.08. Revenues d-10% to $5.08 billion. Excluding currency, revenues +2%. Earnings call transcript. 

December '08: EPS $0.87 vs. $0.73 (excluding non-recurring tax benefits). Revenues -3% to $5.565 billion. Operating margin 27.0% vs. 23.5%. Opened 1,000th store in China.

September '08: EPS $1.05, up 18%. Revenues +6% to $6.27 billion. Same store sales +5% in U.S. and +7% overall. Earnings call transcript. In September, dividend +33% to $0.50.

June '08: EPS (continuing) $1.04, +44%. Revenues +4% to $6.075 billion. U.S. same store sales +3.4%, Europe +7.4%. Global same store sales +6.1%. Bought back 13.3 million shares.

March '08: EPS (continuing) $0.81, +31%. Revenues +6% to $5.615 billion. U.S. same store sales +2.9%. Global same store sales +7.4%.

Back to Mfg & Services 

Meridian Bioscience

6/1/14:  Since added last December, Meridian Bioscience reported disappointing December quarter numbers and then followed up with an equally disappointing March quarter. We're giving up on Meridian. 

In March, Meridian said that the FDA approved its new test for whooping cough, which takes less than 60 minutes to produce results compared to one week for existing tests.

In January, Meridian raised its quarterly dividend by 5% to $0.20 per share.

Expected FY 12/2014 EPS Growth: 0%  Div/CF Ratio: 75%

Background
Makes diagnostic test kits to analyze blood, urine, and other body fluid and tissue samples to diagnose such maladies as respiratory illness, gastrointestinal disease, viruses, and parasitic diseases. Also makes biological supplies used by research labs. Sales growth stalled in recent years, but it has recently developed new products that are stimulating growth. The most important is its “illumigene” test for “C.difficile,” which can create a toxin during hospital antibiotic therapy. Unlike competing products that require expensive processors, illumigene can produce readable results in less than one hour using an inexpensive instrument.

Quarterly Reports 

March '14: EPS $0.24, even with year-ago. Revenues up 6% to $50.13 million. Diagnostics sales up 2% to $37.06 million. Life Science sales up 20% to $13.07 million. Revenues up, but lower gross margins smashed earnings. 

December '13: EPS $0.18, down 10%. Revenues down 1% to $44.794 million. Diagnostics sales down 2% to $34.84 million. Life Science sales up 3% to $9.96 million. In November, dividend up 5% to $0.20, starting with February 2014 payout.

September '13: EPS (adjusted) $0.22, up $0.01. Revenues up 13% to $48.96 million. Diagnostics sales up 15% to $37.25 million. Life Science sales up 5% to $11.71 million.  

June '13: EPS (adjusted) $0.24, up 14%. Revenues up 12% to $47.11 million. Diagnostics sales up 11% to $35.31 million. Life Science sales up 18% to $11.80 million.

March '13: EPS (adjusted) $0.24, up 4%. Revenues flat at $47.27 million. Diagnostics sales up 3% to $36.40 million. Life Science sales down 8% to $10.86 million.

Motorola Solutions

1/20:  Up 46% in six months, Motorola started the year off with a bang. However, it has been in the loss column ever since. We're selling.

In November, Motorola increased its quarterly dividend by 12% to $0.64 per share.

In August, Motorola acquired WatchGuard, Inc., a maker of in-car video systems, body-worn cameras, evidence management systems and software targeted to the law enforcement market.  

Background
Split off from Motorola Inc. in 2011, Motorola Solutions (MSI) provides communications services to government and police agencies and other large enterprises. Products include two-way radios, and other voice and data communications products. However, public safety communications systems requirements are rapidly evolving. Instead of operating stand-alone communications systems, the federal government will soon require public safety agencies to be interconnected via its FirstNet broadband network, and Motorola Solutions intends to be a major player.

Quarterly Reports   

September '19: EPS (adjusted) $2.04, up 5% vs. year-ago. Revenues up 7% to $2.0 billion. Operating margin 20.7% of sales vs. year-ago 15.8% (higher is better). Products & Systems Integration (mobile radios, video surveillance cameras, etc.) revenues up 5% to $1.349 billion. Services & Software (communications networks) revenues up 12% to $645 million.

June '19: EPS (adjusted) $1.69, up 16%. Revenues up 6% to $1.86 billion. Operating margin (adjusted) 23.9% vs. 21.5%. Products & Systems Integration (mobile radios, video surveillance cameras, etc.) revenues up 4% to $1.238 billion. Services & Software (communications networks) revenues up 19% to $622 million.

March '19: EPS (adjusted) $1.28, up 16%. Revenues up 13% to $1.7 billion. Products & Systems Integration revenues up 12% to $1.069 billion. Services & Software revenues up 14% to $588 million. Operating margin 19.0% vs. 17.7%. Acquired Avtec, Inc., which provided dispatching communications systems utilizing Internet and other broadband networks. Also acquired VaaS International Holdings which provided data and image analytical systems to provide vehicle location data to law enforcement agencies. 

December '18: EPS (adjusted) $2.63, up 25%. Revenues up 15% to $2.254 billion. Products & Systems Integration revenues up 16% to $1.670 billion. Services & Software revenues up 12% to $584 million. Operating cash flow $812 million ($4.68/share) vs. $761 million ($4.71/share). In November, dividend up 10% to $0.57.

September ’18: EPS (adjusted) 1.94, up 27%. Revenues up 13% to $1.86 billion. Products & Systems Integration revenues up 10% to $1.288 billion. Services & Software revenues up 22% to $574 million. Operating cash flow $338 million ($1.96/share) vs. $270 million ($1.60/share).

Proctor & Gamble 

1/23:  P&G reported December quarter earnings (core) of $1.42 per share, $0.05 above analyst forecasts, and up 14% vs. year-ago. Revenues up 5% to $18.2  billion. Baby, feminine & Family Care sales up 1% to $4.582 billion. Beauty sales up 7% to $3.598 billion. Healthcare sales up 14% to $2.530 billion. Grooming up 2% to $1.648 billion. Operating cash flow $4.364 billion (1.77/share) vs. year-ago $4,007 billion ($1.53 per share). Good growth numbers from P&G.

Background
Manufactures beauty, grooming, health care, home care and personal care products including Pampers, Tide, Bounty, Mr. Clean, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy & Dawn. Along with most of its competitors, P&G has been losing market share as consumers moved away from familiar packaged goods in favor of lower cost, "better for you," and "better for the environment" products.

Quarterly Reports   

September '19: EPS (core) $1.37, up 22% vs. year-ago. Revenues up 7% to $17.80 billion. Excluding foreign exchange, acquisitions & divestures, organic sales up 7%. Fabric & Homecare sales up 6% to $5.832 billion. Baby, feminine & Family care up 5% to $4.567 billion. Beauty sales up 8% to $3.552 billion. Healthcare sales up 20% to $2.221 billion. Grooming down 2% to $1.531 billion. Operating cash flow $4.169 billion (1.57/share) vs. year-ago $3.567 billion ($1.37 per share).

June '19: EPS (core) $1.10, up 17%. Revenues up 4% to $17.1 billion. Excluding foreign exchange, acquisitions & divestures, organic sales up 7%. Beauty sales up 8% to $3.190 billion. Grooming up 4% to $1.596 billion. Healthcare sales up 10% to $2.038 billion. Fabric & Homecare up 10% to $5.653 billion. Baby, feminine & Family care up 5% to $4.501 billion. Operating cash flow $4.151 billion ($1.56per share). Gross margin 47.7% vs.  45.0% (higher is better). Paid a rumored $100 million for startup feminine hygiene product maker "This is L." In April, dividend up 4% to $0.7459 per share.

March '19: EPS (core) $1.06, up 6%. Revenues up 1% to $16.462 billion Excluding foreign exchange, acquisitions & divestures, organic sales up 5%. Beauty sales up 4% to $3.061 billion. Grooming down 8% to $1.424 billion. Healthcare sales up 9% to $2.115 billion. Fabric & Homecare up 2% to $5.382 billion. Baby, feminine & Family care down 2% to $4.357 billion. Operating cas vs. ye 48.5%.

December '18: EPS (core) $1.25, up 8% (13% excl currency). Revenues up 4% (excl currency) to $17.438 billion. Beauty sales up 4% to $3.357 billion. Grooming down 3% to $1.617 billion. Healthcare sales up 5% to $2.220 billion. Fabric & Homecare up 6% to $5.557 billion. Baby, feminine & Family care up 3% to $4.558 billion. Operating cash flow $4.007 billion ($1.53 per share) vs. $3.684 billion ($1.38 per share). Gross margin 48.9% vs. 49.9%. Acquired Walker & Company, which markets products tailored for people of color. Products include Bevel, designed for the needs of men with coarse or curly hair, and FORM Beauty, a hair care collection developed to meet the needs of women with textured hair.

September '18: EPS (core) $1.12, up 3%. Revenues flat at $16.69 billion. Beauty sales up 5% to $3.289 billion. Grooming. down 1% to $1.562 billion. Healthcare sales down 3% to $1.845 billion. Fabric & Homecare up 2% to $5.488 billion. Baby, feminine & Family care down 3% to $6.439 billion. Operating cash flow $3.567 billion ($1.37 per share) vs. year-ago $3.631 billion ($1.35 per share). Gross margin 49.2% vs. 50.3%.

June ’18: EPS (adjusted) 1.46, up 30%. Revenues up 18% to $1.8 billion. Products & Systems Integration revenues up 14% to $1.189 billion. Services & Software revenues up 27% to $571 million. Operating cash flow $425 million ($2.48/share) vs. $173 million ($1.02/share).

March ’18: EPS (adjusted) 1.10, up 55%. Revenues up 15% to $1.46 billion. Operating cash flow -$500 million (-$2.93/share) vs. year-ago $142 million ($0.84/share). Acquired video surveillance and analytics system maker Avigilon, and emergency call handling systems maker Airbus DS Communications.

Orchids Paper Products

8/16:  Orchids Paper Products' disappointing June quarter results could have been triggered by non-recurring issues as the company suggested. However, it's also possible that Orchid's fast growth phase is behind it, and intensifying competition is taking a toll. That's our bet. We're selling.

Orchids reported June quarter earnings of $0.25 per share, $0.14 below analyst forecasts, and down 36% vs. year-ago quarter. Revenues down 7% to $39.414 million. Gross margin 17.4% of sales vs. year-ago 18.3% (higher is better). Operating cash flow $7.546 million ($0.73/share) vs. year-ago -$0.617 million (-$0.06). A bad quarter, for sure.

Expected FY 12/2016 EPS Growth: 20%   EPS Payout Ratio:  85%

Background
Headquartered in Oklahoma, Orchids is a regional manufacturer of paper products such as bathroom tissues, paper towels, napkins and other paper products that it markets to dollar stores and other discount outlets. In June 2014, Orchids entered an agreement with Mexicali, Mexico based Fabrica de Papal whereby Fabrica will produce products that Orchids markets to its U.S. west coast customers. Orchids is in fast growth mode. Analysts expect Orchids to grow revenues by 17% in 2015 and by 25% in 2016. Its growth strategy involves upgrading its assortment to include mid-tier and premium products. Upgrading its equipment to support expected growth has stifled earnings growth, but will pay off in the long run. Orchids' three largest customers, Dollar General, Family Dollar and Wal-Mart, account for 72% of revenues.

Quarterly Reports   

March '16: EPS (adjusted) $0.56, up 195% vs. year-ago. Revenues up 28% to $47.743 million. Gross margin 23.8% of sales vs. year-ago 12.8%. Operating cash flow $8.863 million ($0.86/share) vs. year-ago $5.551 million ($0.63/share).

December '15: EPS (adjusted) $0.38, up 23%. Revenues up 1% to $41.904 million. Operating cash flow $5.608 million ($0.54/share) vs. $4.281 million ($0.49/share). Revenues and EPS depressed by equipment malfunction. 

September '15: EPS (adjusted) $0.46, down $0.03. Revenues up 5% to $46.832 million. Converted paper (finished products) shipped up 7% to 23,001 tons. Operating cash flow $8.249 million ($0.79/share) vs. $12.778 million ($1.49/share).

June '15: EPS $0.37, up 48%. Revenues up 45% to $42.3 million. Converted paper (finished products) shipped up 54%to 20,334 tons. Operating cash flow -$0.617 million vs. year-ago -$1.720 million. Sold 1.7325 million new shares at $23.00. Said plans to build new paper mill capable of producing 35,000 to 40,000 tons of paper per year in Barnwell, South Carolina, could add around $75 million to annual revenues.

March '15: EPS $0.14 vs. $0.32. Revenues up 35% to $37.415 million. Converted paper shipped up 54% to 18,837 tons. Operating cash flow $5.551 million ($0.63 per share) vs. $4.813 million ($0.59 per share).

December '14: EPS (adjusted) $0.31 vs. $0.41. Revenues up 34% to $41.340 million. Converted paper shipped up 53% to 20,864 tons. Operating cash flow $4.281 million ($0.48 per share) vs. $9.078 million ($1.12 per share).

Penske Automotive

2/1/24:  Penske's growth appears to be slowing. We're advising selling.

Penske reports December quarter results after the bell on February 7. Analysts expect earnings of $3.66 per share vs. year-ago $4.21. The conference call is set for 2 pm Eastern on February 7.

Penske raised its quarterly dividend by 10% to $0.87 per share with was 43% above its year-ago payout.

In December, Penske acquired Don Allen Auto Service, a Massachusetts-based auto dealership for $12.4 million, and Rybrook Group, which owns 15 premium auto dealerships in the UK.

Background
Penske operates more than 300 automobile and truck commercial truck dealerships, primarily in the U.S. and the U.K. More than 90% of Penske's auto and light truck revenues come from import and luxury brands, a segment less sensitive to economic downturns than the overall industry. Growth is coming from an increased focus on online marketing, as well as expansion of its used vehicle and heavy truck retail operations. Also, Penske Transportation Solutions, a relatively new business, offers supply chain management and logistics services. On 10/14/20, Penske reinstated its $0.42 per share quarterly dividend starting with its December 1 payout.

Quarterly Reports   

September '22: EPS  $3.92, down 15% vs. year-ago. Revenues up 8% to $7.4 billion. Retail automotive revenues up 10% to $6.3 billion. Retail trucks revenues down 5%% to $965 million. Acquired BMW and Porsche dealerships in Wilmington, North Carolina. Penske expects the deal to add around $140 million to annual revenues. In July, Dividend up 9% to $0.72,up 36% vs. year-ago.

June '23: EPS $4.41 down 11%. Revenues up 8% to $7.47 billion. Retail automotive revenues up 7% to $6.4 billion. Retail trucks revenues up 20% to $919 million. Penske acquired Transolutions Truck Centres, a retailer of medium and heavy-duty commercial trucks and buses, located in Winnipeg, Manitoba, Canada. In June, dividend up 8% to $0.66 per share 32% above year-ago payout.

March '23: EPS $4.31, down 9%. Revenues up 5% to $7.34 billion. Retail automotive revenues up 4% to $6.3 billion. Retail trucks revenues up 13% to $896 million. In March, dividend up 7% to $0.61. 

December '22: EPS $4.21, up 6%. Revenues up 11% to $4.0 billion. Retail automotive revenues up 8% to $5.9 billion. Retail trucks revenues up 40% to $961 million. In October, dividend up 8% to $0.57.

September '22: EPS (adjusted) $4.61, up 3%. Revenues up 7% to $6.92 billion. Retail automotive revenues up 2% to $5,758 million. CarShop used vehicle sales down 7% to $406 million. Retail trucks revenues up 14% to $1,020 million. In July, dividend up 6% to $0.53. 

June '22: EPS (adjusted) $4.93, up 17%. Revenues down 1% to $6.91 billion. Retail automotive revenues down 3% to $5,997 million. CarShop used vehicle sales up 15% to $468 million. Retail trucks revenues up 23% to $769 million. In May, dividend up 6% to $0.50, which was 14% above its year-ago payout. 

March '22: EPS (adjusted) $4.76, up 111%. Revenues up 21% to $7.98 billion. Retail automotive revenues up 16% to $6,029 million. CarShop used vehicle sales up 113% to $516 million. Retail trucks revenues up 82% to $792 million. Acquired three BMW dealerships and a collision center in the U.K. In January, dividend up $0.01 (2%) to $0.47, up 9% vs. year-ago payout.

December '21: EPS (adjusted) $4.10, up 65%. Revenues up 8% to $6.3 billion. Retail automotive revenues up 7% to $5,474 million. CarShop used vehicle sales up 61% to $394 million. Retail trucks revenues up 19% to $688 million. Commercial vehicles Australia up 1% to $134 million. Acquired Oregon based medium and heavy-duty truck retailer McCoy Freightliner for undisclosed sum, expected deal to add around $200 million to annual revenues. In October, dividend up 2% ($0.01) to $0.46, 10% above year-ago.  

September '21: EPS $4.46, up 45%. Revenues up 9% to $6.5 billion. Retail automotive revenues up 7% to $5,635 million. CarShop used vehicle sales up 24% to $438 million. Retail trucks revenues up 21% to $717 million. Commercial vehicles Australia up 18% to $145 million.

June '21: EPS (adjusted) of $4.47 up 698%. Revenues up 91% to $6.99 billion. Retail automotive revenues up 97% to $6,198 million. Retail trucks revenues up 57% to $625 million. Commercial vehicles Australia up 67% to 165 million. In May, dividend up 2% to $0.44. In July, dividend up 2% to $0.45.

March '21: EPS $2.26, up 253%. Revenues up 15% to $5.774 billion. Gross profit up 18% to $913.2 million. Operating cash flow $239.3 million ($2.97 per share) vs. year-ago $211.9 million ($2.61 per share). Acquired Kansas City Freightliner, a retailer of medium and heavy-duty commercial trucks. Expects deal to add $450 million to annual sales. In January, dividend up 2% to $0.43. 

December '20: EPS (adjusted) $2.49, up 99%. Revenues down 1% to $5.812 billion. Gross profit up 4% to $898.4 million. Year 2020 operating cash flow $1,202 million ($14.95 per share) vs. $518.3 million ($6.39 per share).

September '20: EPS (adjusted) $2.87, up 116%. Revenues even at $5.97 billion. Gross profit up 10% to $956.5 million. Year-to-date operating cash flow $849.5 million ($10.57 per share) vs. $660.8 million ($8.09 per share).

Philip Morris International

Sold 8/1/13

Phillip Morris markets cigarettes outside the U.S. In many of those areas, cigarette smoking is more acceptable than it is here. However that is changing. In 2012, Australia became the first country in the world to require plain packaging of cigarettes. Now, Ireland is poised to be the first in the European Union to follow that path. All trademarks, logos, colors and graphics would be banned from cigarette packaging. Such plain packaging would likely hurt sales of name brands, including Phillip Morris products.

In June, Philip Morris agreed to acquire the 20% stake of its Mexican unit that was controlled by billionaire Carlos Slim, for $700 million. Philip Morris expects the deal to add to earnings starting with its December quarter. 

Expected FY 12/2013 EPS Growth: 4% Div/CF Ratio:  56%

Background
Spun-off from Altria in March 2008, Philip Morris makes and markets major cigarette brands such as Marlboro, L&M, Bond Street, Philip Morris, Chesterfield and Parliament in 180 countries outside the U.S. Since the spin-off, Philip Morris has made several acquisitions including cigar and smokeless tobacco product makers. Germany, accounting for one-third of revenues, is PM's largest market.

Quarterly Reports

Philip Morris reported June 2013 quarter earnings (adjusted) of $1.30 per share, $0.11 below analysts' forecasts and $0.06 below the year-ago quarter. Excluding currency, EPS was $1.31. Total net revenues (excluding excise taxes) down 3% vs. year-ago to $7.917 billion. Excluding currency, revenues up 1%. European Union revenues down 2% to $2.21 billion. Eastern Europe, Middle East & Africa revenues up 1% to $2.18 billion. Asia down 6% to $2.79 billion. Latin America & Canada up 1% vs. year-ago to $838 million. Operating cash flow $3.137 billion ($1.91.share) vs. $3.480 billion ($2.04 per share). PM expects a better second half and forecasts 2013 full-year EPS around $5.48, up 6% vs. 2012. Disappointing numbers. 

March '13: EPS (adjusted) $1.29, up 3% vs. year-ago. Excluding currency affects, EPS up 9%. Total net revenues (excluding excise taxes) up 2% to $7.589 billion. Excluding currency, revenues up 3%. European Union revenues down 4% to $1.97 billion. Eastern Europe, Middle East & Africa revenues up 11% to $2.04 billion. Asia up 1% to $2.79 billion. Latin America & Canada even vs. year-ago at $781 million. Operating cash flow $1.363 billion ($0.82.share) vs. $1.898 billion ($1.10 per share). 

December '12: EPS 1.25, up 16%. Excluding currency effects, EPS $1.24, up 13%. Total net revenues (excluding excise taxes) up 3% to $7.9 billion. Excluding currency, revenues up 6%. European Union revenues down 1% to $2.06 billion. Eastern Europe, Middle East & Africa up 11% to $2.14 billion. Asia up 8% to $2.81 billion. Latin America & Canada up 7% to $882 million. Shipment volumes: Europe down 6%, Eastern Europe, Middle East & Africa up 7%, Asia up 6%, and Latin America & Canada down 1%. Operating cash flow $1.650 billion ($0.99.share) vs. $961 million ($0.55 per share). 

September '12: EPS (adjusted) $1.38, up $0.01. Excluding currency effects, EPS $1.45 vs. $1.37. Total net revenues (excluding excise taxes) down 5% to $7.92 billion. Excluding currency effects, revenues up 3%. European Union revenues down 15% to $2.13 billion. Eastern Europe, Middle East & Africa flat at $2.21 billion. Asia down 1% to $2.76 billion. Latin America & Canada down 2% to $827 million. Shipment volumes: Europe down 8%, Eastern Europe, Middle East & Africa up 5%, Asia up 1%, and Latin America & Canada down 2%. Operating cash flow $2.393 billion ($1.42.share) vs. $1.749 billion ($1.75 per share). Sold $750 million of notes due 2017 paying 1.125%, $750 million of notes due 2022 paying 2.5% and $750 million of notes due 2042 paying 3.875%. In September, dividend up 10% to $0.85.  

June '12: EPS (adjusted) $1.36, up $0.02. Excluding non-recurring and currency, EPS up 17%. Total net revenues (excluding excise taxes) down 2% to $8.12 billion. European Union revenues down 1% to $2.29 billion. Eastern Europe, Middle East & Africa up 7% to $2.15 billion. Asia down 3% to $2.86 billion. Latin America & Canada even vs. year-ago at $829 million. Shipment volumes: Europe down 9% vs. year-ago, Eastern Europe, Middle East & Africa up 5%, Asia down 1%, and Latin America & Canada down 3%. Operating cash flow down 15% to $3.480 billion ($2.05.share vs. year-ago $2.33). Earnings call transcript.

March '12: EPS $1.25, up 18%. Total net revenues up 10% to $7.4 billion. European Union revenues up 3%. Eastern Europe, Middle East & Africa up 9%. Asia up 20%. Latin America & Canada sales. Shipment volumes: Europe down 2%, Eastern Europe, Middle East & Africa up 4%, Asia up 12%, and Latin America & Canada up 3%. Operating cash flow $1.898 billion vs. $2.395 billion. Earnings call transcript. 

December '11: EPS $1.08, up 13%. Total net revenues up 8% to $7.67 billion. European Union revenues up 1%. Eastern Europe, Middle East & Africa up 5%. Asia up 26%. Latin America & Canada down 2%. Shipment volumes: Europe down 7%, Eastern Europe, Middle East & Africa up 0%, Asia up 11%, and Latin America & Canada down 7%. Operating cash flow $961 million ($0.55/share) vs. $1,581 million ($0.87/share). 

September '11: EPS (adjusted) $1.37, up 33% (excluding currency). Total net revenues up 26% to $8.4 billion. European Union revenues up 2% to $2.51 billion. Eastern Europe, Middle East & Africa up 12%. Asia up 39%. Latin America & Canada up 8%. Shipment volumes: Europe down 3.5%, Eastern Europe, Middle East & Africa up 5%, Asia up 13%, and Latin America & Canada down 1%. Operating cash flow $1.75/share vs. $1.00/share. In September, dividend up 20% to $0.77.

June '11: EPS (adjusted) $1.35, up 14% (excluding currency). Total net revenues up 10% to $8.27 billion. European Union revenues up 1%. Eastern Europe, Middle East & Africa up 4%. Asia up 28%. Latin America & Canada up 6%. Shipment volumes: Europe down 3%, Eastern Europe, Middle East & Africa down 3%, Asia up 8%, and Latin America & Canada down 5%. Operating cash flow ($2.33/share vs. $1.88/share.

March '11: EPS (adjusted) $1.06, up 14% (excluding currency effects). Total net revenues up 4% to $6.79 billion. European Union revenues down 4%. Eastern Europe, Middle East & Africa down 2%. Asia up 17%. Latin America & Canada up 9%. Shipment volumes: Europe down 7%, Eastern Europe, Middle East & Africa down 1%, Asia up 14%, and Latin America & Canada down 6%. Operating cash flow $1.34/share) vs. $1.05/share.

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Proctor & Gamble

5/1/21:  We expect Procter & Gamble's sales and hence, earnings numbers to miss expectations as the pandemic subsides.

P&G reported March quarter earnings (core) of $1.26 per share, $0.07 above analyst forecasts, and up 8% vs. year-ago. Revenues (adjusted) up 4% to $18.1 billion. Fabric & Homecare sales up 8% to $6.28 billion. Baby, Feminine & Family sales flat at $4.60 billion. Beauty sales up 9% to $3.32 billion. Healthcare sales up 4% to $2.36 billion. Grooming up 4% to $1.44 billion. Operating cash flow $4.1 billion ($1.58/share) vs. $4.064 billion ($1.56/share). Beat estimates, otherwise nothing to shout about.

&G raised its quarterly dividend by 10% to $0.8698 per share. 

In January, PG called off its acquisition of women's razor maker Billie, Inc. after the FTC filed a lawsuit to block the deal.

Background
Produces and markets beauty, grooming, health care, home care and personal care products including Pampers, Tide, Bounty, Mr. Clean, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy & Dawn.  healthier products.

Quarterly Reports   

December '20: EPS (core) $1.64, up 15% vs. year-ago. Revenues up 8% to $19.75 billion. Fabric & Homecare sales up 12% to $6.50 billion. Baby, Feminine & Family sales up 6% to $4.86 billion. Beauty sales up 6% to $3.81 billion. Healthcare sales up 9% to $2.75 billion. Grooming up 5% to $1.74 billion. Operating cash flow $8.424 billion ($2.07/share) vs. $4.364 billion ($1.66 per share).

September '20: $1.63, up 19%. Revenues up 9% to $19.32 billion. Fabric & Homecare sales up 14% to $6.64 billion. Baby, Feminine & Family sales up 3% to $4.72 billion. Beauty sales up 7% to $3.79 billion. Healthcare sales up 11% to $2.47 billion. Grooming up 5% to $1.60 billion. Operating cash flow $4.739 billion ($1.81/share) vs. $4.169 billion $2.57.)

June '20: EPS (core) $1.16, up 5%. Revenues up 4% to $17.7 billion. Fabric & Homecare sales up 11% to $6.29 billion. Baby, Feminine & Family sales up 3% to $4.62 billion. Beauty sales flat at $3.18 billion. Healthcare sales down 1% to $2.02 billion. Grooming down 5% to $1.51 billion. Operating cash flow $4.806 billion ($1.84/share). In April, dividend up 5% to $0.7907.

March '20: EPS (core) $1.17, up 10%. Revenues up 5% to $17.2 billion. Excluding foreign exchange, acquisitions & divestures, organic sales up 6%. Fabric & Homecare sales up 8% to $5.823 billion. Baby, Feminine & Family sales up 6% to $4.597 billion. Beauty sales down 1% to $3.033 billion. Healthcare sales up 7% to $2.262 billion. Grooming down 2% to $1.380 billion. Operating cash flow $4.064 billion ($1.56/share).

December '19: EPS (core) $1.42, up 14% vs. Revenues up 5% to $18.2 billion. Operating cash flow 1.77/share vs. year-ago $1.53.

September '19: EPS (core) $1.37, up 21%. Revenues up 7% to$17.80 billion. Excluding foreign exchange, acquisitions & divestures, organic sales up 7%. Fabric & Homecare sales up Baby, feminine, & Family Care up 5% to 5% to $4.567 billion. Beauty sales up 8% to $3.552 billion. Healthcare sales up 20% to$2.221 billion. Grooming down 2% to $1.531 billion. Operating cash flow $4.169 billion ($1.57/share) vs. year-ago$3.567 billion, ($1.37 per share).

June '18: EPS (core) $0.94, up 11%. Revenues up 3% to $16.5 billion. Beauty sales up 10% to $3.101 billion. Grooming. down 1% to $1.648 billion. Healthcare up 4% to $1.809 billion. Fabric & Homecare up 3% to $5.488 billion. Baby, feminine & Family care down 2% to $4.464 billion. Gross margin 45.3% vs. 48.4%. In April, dividend up 4% to $0.7172.

SeaCube Container Leasing

In November '12, dividend up 3% to $0.30.

In August, dividend up 4% ($0.01) to $0.29.   

Background
SeaCube, a November 2010 IPO, operating under the Seacastle Container Leasing name, owns and leases refrigerated (reefers) and non-refrigerated (dry) steel shipping containers, and diesel-fueled generators (gensets) used to power reefers when transported by truck. Seacastle has been operating since 2006. Reefers are the fastest growing segment of the shipping container market, and SeaCube, with a 26% market share, is the biggest player.

Quarterly Reports

SeaCube agreed to be acquired by the Ontario Teachers's Pension Plan for $23 per share, a 13% premium over Friday's $20.30 per share closing price. SeaCube expects the deal to close by June 30. SeaCube will not pay any additional dividends. We are changing our rating on SeaCube to "Sell"

SeaCube reported December quarter earnings of $0.58 per share, down from $0.61 in the year-ago quarter. Revenues rose 9% to $50.96 million. Expenses related to SeaCube's pending acquisition accounted for the earnings drop.

September '12: EPS (adjusted) $0.63, up 15%. Revenues up 9% to $45.229 million. Equipment leasing revenues up 7% vs. year-ago to $30.7 million. Finance revenues up 16% to $16.2 million. Operating cash flow $18.442 million ($0.91/share) vs. year-ago $18.644 million ($0.92/share).

June '12: EPS (adjusted) $0.66, up 43%. Revenues up 21% to $49.4 million. Equipment leasing revenues up 20% to $30.0 million. Finance revenues up 21% to $16.6 million. Operating cash flow $32.616 million ($1.61/share) vs. year-ago $18.124 million ($0.90/share). A very strong quarter. Raised $225 million by selling notes paying 4.21%. In May, SeaCube dividend up 8% to $0.28. 

March '12: EPS $0.62, up 35%. Total revenues up 33% to $49.0 million. Equipment leasing revenues up 38% to $29.9 million. Finance revenues up 29% to $16.3 million. Operating cash flow $25.776 million ($1.28/share) vs. $28.151 ($1.40) million. In February, dividend up 8% to $0.26. 

December '11: EPS (adjusted) $0.66, up 32%. Total revenues up 30%. Equipment leasing revenues up 42%. Finance revenues up 11%. Operating cash flow $28.543 million ($1.42/share). 

September '11: EPS (adjusted) $0.55, up 6%. Total revenues up 31% to $45.2 million. Equipment leasing revenues up 55%. Finance revenues up 10%. Operating cash flow $18.64 million ($0.92/share). In August, dividend up 9% to $0.24.

June '11: EPS (adjusted) $0.51, up 4%. Total revenues up 21% to $40.8 million. Equipment leasing revenues up 42% to $25.0 million and finance revenues up 5% to $13.7 million. Operating cash flow $18.12 million ($0.90/share).

March '11: EPS (adjusted) $0.46, down 18%. Total revenues up 11% to $36.8 million. Equipment leasing revenues up 31% to $21.8 million and finance revenues down 5% to $12.6 million. Operating cash flow $28.15 million ($1.40/share).

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Simpson Mfg

4/1/19: Simpson has returned 11% so far this year and 24% since added to the portfolio about 18 months ago. But Simpson, like Hasbro, does significant business in Europe and the economic slowdown there could trip up Simpson. Let's take profits.

Expected FY 12/2019 EPS Growth: 12%  FY 2020 P/E: 16

Background
Founded by Barclay Simpson in 1956 and public since 1994, Simpson is a global supplier of screws and fasteners required to connect building components in almost all construction projects, both residential and commercial. Simpson operates 25 manufacturing locations and 24 warehouses and sales offices in the U.S. and Europe.

Quarterly Reports   

December '18: EPS $0.34, up 26% vs. year-ago. Revenues up 4% to $241.8 million. North America sales up 7% to $190.9 million. Europe sales down 9% to $34.9 million  Operating margin 9.4% of sales vs. year-ago 10.5% (higher is better).

September '18: EPS $0.95, up 61%. Revenues up 8% to $284.2 million. North America sales up 13% to $239.9 million. Europe sales down 11% to $42.0 million (2017 sale of operations in in Poland and Romania cut European sales by $5.3 million). Operating margin 21.4%  vs. 17.8%. 

June '18: EPS $0.94, up 59%. Revenues up 17% to $308.0 million. North America sales up 20% to $215.7 million. Europe sales up 1% to $45.8 million (late 2017 sale of operations in in Poland and Romania cut European sales by around 10%). Operating margin 19.7% vs. 17.2%. In April, dividend up 5% to #0.22. 

March '18: EPS $0.54, up 13%. Revenues up 11% to $244.8 million. North America sales up 12% to $206.2 million. Europe sales up 6% to $36.3 million. Operating margin 13.4% of sales vs. 10.3%.

December '17: EPS (adjusted) $0.31 vs. $0.36. Revenues up 16% to $231.7 million. North America sales up 10% to $190.9 million. Europe sales up 52% to $38.4 million. Operating margin 10.7% of sales vs. 13.1%.

September '17: EPS $0.59, down $0.03. Revenues up 14% to $262.5 million. North America sales up 8% to $213.3 million. Europe sales up 50% to $47.1 million. Operating margin 17.8% vs. 19.8%.

June '17: EPS $0.59, up 9%. Revenues up 15% to $263.0 million. North America accounted for 82% of sales and Europe for 17%. Operating margin 17.2%  vs. 17.8%. In April, dividend up 17% to $0.21.

March '17: EPS $0.48, up 41%. Revenues up 10% to $219.9 million. North America accounted for 84% of sales and Europe for 16%. Operating margin 10.3% vs. 13.4%. Acquired CG Visions, which produced software for estimating construction costs.

Six Flags Entertainment

4/19:  Citing lack of available financing, Six Flags' Dubai partner has canceled plans to build a Six Flags amusement park in Dubai. Also, for reasons unclear, the opening of at least two of the several Six Flags parks planned for China have been delayed for at least one-year. Global expansion is key to Six Flags growth story.

Six Flags reported December quarter earnings of $0.93 per share, down 18% vs. year-ago. Revenues up 5% to $269.5 million. Theme park admissions up 11% to $152.3 million. Food and merchandise sales up 7% to $102.3 million. Delays in opening a new theme park in China cut reported revenues by $15 million. Operating cash flow $71.121 million ($0.85 per share) vs. $65.411 million ($0.78 per share). Messy quarter.

Citing lack of available financing, Six Flags Dubai partner has canceled plans to build a Six Flags amusement park in Dubai.

In November, Six Flags raised its quarterly dividend by 5% to $0.82 per share.

Expected FY 12/2019 EPS Growth: 12%  FY 2020 P/E: 16   

Background
Six Flags owns and operates 20 regional theme, water, and zoological amusement parks in the U.S., Canada and Mexico. Six Flags filed for bankruptcy in June 2009, and emerged from bankruptcy in May 2010. Six Flags embarked on a program to grow revenues by enhancing existing rides and food services, regularly adding major new attractions, and instituting a season pass program that encourages repeated visits. More recently, Six Flags initiated an international expansion program. Working with local partners, in 2019, it plans on opening two new parks, one in China and the other in Dubai. Then, two more parks in China in 2020 and one in Saudi Arabia in 2022.

Quarterly Reports 

September '18: EPS $2.16, up 2% vs. year-ago. Revenues up 7% to $619.8 million. Theme park admissions up 6% to $351.0 million. Food and merchandise sales up 4% to $233.0 million. Operating cash flow $207.320 million ($2.42 per share) vs. $246.790 million ($2.87 per share). SIX blamed unfavorable weather for its disappointing numbers, which was probably true.

June '18: EPS $0.88, up 49%. Revenues up 5% to $445 million. Theme park admissions up 8% to $240.5 million. Food and merchandise sales up 1% to $176.1 million. Operating cash flow $157.498 million ($1.85 per share) vs. $193.454 million ($2.18 per share). Announced 11th theme park in China, Six Flags Kids World, in Nanjing, the second largest city in East China. Opens in 2021. Acquired lease rights to operate five additional independent U.S. theme parks. Announced plans to develop Six Flags-branded park in the city of Riyadh, Saudi Arabia, expected to open in 2022.

March '18: EPS -$0.74 vs. -$0.63. Revenues up 30% to $128.96 million. Theme park admissions up 30% to $66.3 million. Food and merchandise sales up 42% to $42.2 million. Operating cash flow -$22.807 million (-$0.72 per share) vs. -$60.588 million (-$0.66 per share). In February, dividend up 11% to $0.78.

December '17: EPS (adjusted) $0.15 vs. $0.02. Revenues up 7% to $256.8 million. Theme park admissions up 5% to $137.2 million. Food and merchandise sales up 2% to $93.9 million. Operating cash flow $65.411 million ($0.76 per share) vs. $88.481 million (0.97 per share). In November, dividend up 9% to $0.70.

September '17: EPS $2.11, up 1%. Revenues up 4% to $580 million. Admissions up 6% to $331.2 million. Food and merchandise sales up 1% to $223.9 million. Operating cash flow $246.381 million ($2.92 per share) vs. year-ago $248.533 million ($2.70 per share). In September, added to S&P 400 Midcap Index. Appointed Jim Reid-Anderson, who previously served as CEO and Board Chair from August 2010 through February 2016, to the CEO and Board Chair positions, replacing John Duffy, who unexpectedly retired after 17 months on the job. 

June '17: EPS 0.59, down 8%. Earnings shortfall "primarily due" to charge related to early debt retirement. Revenues up 4% to $422.4 million. Adjusted for Spring Vacation occurring April this year, vs. March in 2016, admissions up  1% to $221.9 million. Food and merchandise sales up 3% to $174.0 million. Operating cash flow $193.5 million ($2.22 per share) vs. $191.6 million ($2.06 per share). In April, opened new 60-acre water park in Oaxtepec, Mexico.

March '17: EPS loss -$0.63, vs. -$0.51 loss. Revenues down 14% to $99.53 million. Theme park admissions down 12% to $51.0 million. Food and merchandise sales down 19% to $31.2 million. Operating cash flow -$60.588 million (-$0.66 per share) vs. -$53.005 million (-$0.57 per share). Year-ago comparison not meaningful: Spring Vacation fell in April this vs. year-ago March.

December '16: EPS 0.02, even. Revenues up 10% to $239.3 million. Attendance up 22%. Theme park admissions up 14% to $130.1 million. Food and merchandise sales up 14% to $93.9 million. Operating cash flow $88.481 million ($0.96 per share) vs. year-ago $88.352 million ($0.96 per share). Agreed to build new water park adjacent to the new Six Flags park under development in Haiyan China. Plans to open both parks in 2019. In November, dividend up 10% to $0.64.

September '16: EPS $1.09, down 34%. Revenues down 3% to $558 million. Attendance down 2%. Theme park admissions down 4% to $311.4 million. Food and merchandise sales down 3% to $220.7 million. Operating cash flow $236.176 million ($2.56 per share) vs. $240.521 million ($2.56 per share). Bad weather triggered revenue drop and stock based compensation charge also cut EPS. Signed an agreement with Chinese partner to potentially develop a second Six Flags park in China, this time in Bishan, which has a surrounding population of 120 million people. Details of the development must still be negotiated.

June '16: EPS $0.64, down $0.03. Revenues up 5% to $407 million. Attendance up 2% to 9 million. Theme park admissions up 4% to $215.8 million. Food and merchandise sales up 4% to $168.3 million. Free cash flow $104.472 million ($1.12 per share) vs. $102.817 million ($1.11 per share). Lower EPS driven by higher income tax rate (34% vs. year-ago 24%). Announced plans to open new theme parks in Saudi Arabia and in Dubai. 

March '16: EPS loss -$0.51 vs. -$0.75 loss. Revenues up 36% to $115.4 million. Attendance (adjusted for Spring vacation timing) up 24% to 2.1 million. Theme park admissions up 14% to $58.1 million. Food and merchandise sales up 14% to $38.3 million. Free cash flow -$100.268 million (-$1.09 per share) vs. -$102.888 million (-$1.10 per share). Said construction started on first theme park in China, expected to open in 2019.

December '15: EPS $0.02 vs. -$0.32 loss. Revenues up 18% to $217.46 million. Attendance up 22% to 5.2 million guests. Theme park admissions up 20% to $114.5 million. Food and merchandise sales up 17% to $82.532 million. Free cash flow $25.174 million ($0.26 per share) vs. $23.262 million ($0.25 per share). In October, dividend up 12% to $0.58.

September '15: EPS $1.64, up 5% (excluding year-ago non-recurring). Revenues up 6% to $575.3 million. Excluding currency, revenues up 8%. Attendance up 9% to 12.9 million guests. Theme park admissions up 7% to $325.8 million. Food and merchandise sales up 8% to $228.0 million. Free cash flow (FCF) $254.637 million ($2.71 per share) vs. $243.152 million ($2.57 per share).

June '15: EPS $0.67, even. Revenues up 3% to $386.1 million. Excluding currency, revenues up 4%. Attendance up 9% to 8.9 million guests. Theme park admissions up 1% to $207.0 million. Food and merchandise sales up 6% to $161.4 million. FCF $104.817 million ($1.11 per share) to $95.295 million ($1.03 per share).

March '15: EPS loss -$0.75 vs. -$0.64 loss. Revenues up 16% to $85.155 million. Theme park admissions up 17% to $40.5 million. Food and merchandise sales up 9% to $28.5 million. FCF -$102.888 million (-$1.10 per share) vs. -$116.681 million (-$0.123 per share). 

December '14: EPS loss -$0.37 vs. +$0.13. Revenues up 19% to $183.7 million. Theme park admissions up 21% to $95.6 million. Food and merchandise sales up 13% to $70.5 million. FCF $23.262 million ($0.25 per share) vs. $13.955 million ($0.15 per share). In October, dividend up 11% to $0.52.

September '14: EPS (continuing) $1.56, up 28%. Revenues up 7% to $541.8 million. Theme park admissions up 8% to $305.8 million. Food and merchandise sales up 4% to $211.9 million. FCF $243.152 million ($2.57 per share) vs. $216.549 million ($2.28 per share). 

June '14: EPS $0.67, up 43%. Revenues up 4% to $376.6 million. Free cash flow $98.295 million ($1.03 per share) vs. $93.250 million ($0.97 per share). Entered into joint venture with Chinese real estate developer to build theme parks in China. Announced joint venture with Dubai-based real estate company to open theme park in Dubai in late 2017. 

March '14: EPS loss -$0.64 vs. -0.61. Revenues down 8% to $73.718 million. Free cash flow -$116.681 million (-$1.23 per share) vs. -$86.612 million (-$0.85 per share).

December '13: EPS (adjusted) $0.13 vs. -$0.85. Revenues up 7% to $154.2 million. Admissions up 8% vs. year-ago to $78.9 million. Food and merchandise up 7% to $62.2 million. Free cash flow $13.955 million ($0.15 per share) vs. -$2.108 million (-$0.02 per share). Executed agreement with lenders to reduce annual borrowing costs by $0.03 per share. In November, dividend up 4% to $0.47.  

September '13: EPS (continuing) $1.27 vs. $2.30. Excluding income taxes, EPS $2.15 vs. $2.40. Revenues up 4% to $504.5 million. September quarter admissions up 4% to $282.1 million. Food and merchandise up 4% to $203.8 million. Free cash flow $216.549 million ($2.28 per share) vs. $231.434 million ($2.16 per share). In July, a woman died after being thrown from a roller coaster at Texas park.

June '13: EPS $0.47 vs. $0.67. Excluding income taxes, EPS $0.79 vs. $0.68. Revenues down 3% to $363.7 million. June quarter admissions down 2% to $199.7 million. Food and merchandise down 5% to $149.7 million. Free cash flow down 2% to $0.97 per share.  

March '13: EPS loss -$1.23 vs. -$2.11. Revenues up 32% to $87.52 million. Admissions up 41% to $41.5 million. Food and merchandise up 41% to $32.8 million. Deferred revenue (season pass sales) up 74% to $91.7 million. Free cash flow -$1.70 per share vs. -$1.68. Revenue gains mostly due to Spring break timing.   

December '12: EPS $2.85 vs. -$1.85 loss. Revenues up 5% to $143.9 million. Admissions up 7% to $73.0 million. Food and merchandise up 5% to $58.2 million. Deferred revenue (season pass sales) up 38% to $53 million. Free cash flow -$0.04 per share vs. -$0.20. In October, dividend up 50% to $0.90.

September '12: EPS (continuing) $4.33, up 26%. Revenues up 2% to $485.1 million. Admissions up 1% to $271.1 million, food and merchandise up 1% to $196.6 million. Free cash flow $4.33 per share vs. $4.12. Slowdown in revenue growth triggered by emphasis on selling season passes which count as deferred revenue. Deferred revenue $60 million, up $11 million. Sold minority interest in "dick clark productions" for $70 million. Announced major new attraction at each park for 2013 season.

June '12: EPS (continuing) $1.34, up 109%. Revenues up 11% to $374.9 million. Admissions up 11% to $203.1 million and food and merchandise up 12% to $157.9 million. Free cash flow $1.78 per share vs. year-ago $1.11.

TAL International

10/1/14:  With Europe heading into recession, the need for overseas shipping containers is bound to take a hit. Sell TAL International.

Expected FY 12/2014 CF Growth: 11%  Div/CF Ratio: 27%

Background
TAL is one of the world's largest lessors of steel containers with 17 offices in 11 countries and more than 200 third-party container depot facilities in 39 countries. Operations include the acquisition, leasing, re-leasing and subsequent sale of dry and refrigerated containers. Fleet includes more than one million containers and related equipment. Formed in 1963, TAL has been owned by several different companies, most recently a private equity firm that acquired TAL in 2004, and took it public in November 2005. Driven by deteriorating market conditions, TAL cut its quarterly dividend from $0.41 to $0.01/share in March 2009, but it resumed paying significant dividends in March 2010.

Quarterly Reports 

June '14: EPS (adjusted) $0.87, down 22% vs. year-ago. Leasing revenues up 3% to $144.723 million. Equipment trading revenues down 41% to $18.794 million. Operating cash flow $103.777 million ($3.07/share) vs. year-ago $75.765 million ($2.25/share). Fleet utilization averaged 97.5%. A mixed bag. Strong cash flow growth, but not much revenue growth. You really need both. 

March '14: EPS (adjusted) $0.92, down 12%. Revenues up 4% to $139.3 million. Leasing revenues up 5% to $144.3 million. Equipment trading revenues down 32% to $12.49 million. Operating cash flow $74.431 million ($2.20/share) vs. $66.459 million ($1.98/share). Fleet utilization averaged 97.1%. Expects dividend to be treated as return OF capital (not taxable until sold) for U.S. tax purposes. Raised $291 million in note sales. In February, dividend up 3% to $0.72.

December '13: EPS (adjusted) $0.99, down $0.05. Revenues up 3% to $156.4 million. Leasing revenues up 6% vs. to $146.9 million. Equipment trading revenues down 27% to $8.95 million. Operating cash flow $108.229 million ($3.21/share) vs. $76.577 million ($2.28/share). TAL forecasted fewer future dividend hikes compared to recent history. In October, dividend up 3% to $0.70.  

September '13: EPS $1.03, up 11%. Revenues up 6% to $158.4 million. Leasing revenues up 6% to $143.9 million. Equipment trading revenues up 8% to $14.0 million. Operating cash flow $116.235 million ($3.45/share) vs. $83.245 million ($2.48/share). In July, dividend up 3% to $0.68.

June '13: EPS (adjusted) $1.07, up 7%. Revenues up 15% to $172.0 million. Leasing revenues up 9% to $139.5 million. Equipment trading revenues up 49% to $31.8 million. Operating cash flow $75.765 million ($2.25/share) vs. $88.663 million ($2.64/share). In April, dividend up 3% to $0.66.   

March '13: EPS $1.05, up 14%. Revenues up 13% to $156.1 million. Leasing revenues up 11% to $137.2 million. Equipment trading revenues up 26% to $18.3 million. Operating cash flow $66.459 million ($1.98/share) vs. $61.725 million ($1.84 per share). Raised $250 million in note sale. In February, dividend up 3% to $0.64.

December '12: EPS (adjusted) $1.60, up 2%. Revenues up 12% to $135.6 million. Leasing revenues up 13% to $135.6 million and equipment trading revenues up 38% to $12.2 million. Operating cash flow $76.6 million ($2.31 per share) vs. $99.5 million ($3.07 per share). In October, dividend up 3% to $0.62. 

September '12: EPS (adjusted) $0.95 vs. $1.01. Revenues up 8% to $149.0 million. Leasing revenues up 12% to $135.2 million, but equipment trading revenues down 19% to $13.0 million. Operating cash flow $83.9 million ($2.50 per share) vs. $69.5 million ($2.07 per share). In July, dividend up 3% to $0.60. 

June '12: EPS (adjusted) $1.00 vs. year-ago $0.99. Revenues rose 25% to $150.0 million. Leasing revenues up 20% to $127.9 million and equipment trading revenues up 65% to $21.3 million. Raised $250 million by selling notes paying 3.90%. In April, dividend up 5% to $0.58. Operating cash flow $88.0 million ($2.62 per share) vs. $46.3 million ($1.52 per share).

March '12: EPS (continuing) loss -$12.11  vs. -$2.67. Revenues up 8% to $66.4 million. Admissions up 12% to $29.5 million and food and merchandise up 7% to $24.6 million. Free cash flow -$1.67 per share vs. -$1.47.

September '11: EPS $0.54, up 42% vs. year-ago. Total revenues up 44% to $137.8 million. Leasing revenues up 41% vs. year-ago to $120.9 million. Equipment trading revenues up 74% to $16.1 million. Said expects December quarter results even with September.  In July, dividend up 4% to $0.52.   

June '11: EPS (adjusted) $0.99 vs. $0.15. Total revenues up 38% to $120.2 million. Leasing revenues up 41% to $141.1 million. Equipment trading revenues up 18% to $12.9 million. Sold 2.5 million new shares and current shareholders sold another 3.0 million existing shares, all at $36.00/share. In April, dividend up 11% to $0.50.

March '11: EPS $0.89, up 160%. Total revenues up 56% to $124.5 million. Leasing revenues up 37% to $99.6 million. Equipment trading revenues up 322% to $24.2 million. In February, dividend up 13% to $0.45.

December '10: EPS $0.76, up 121%. Revenues up 31% to $104.0 million. Leasing revenues up 30% to $94.5 million. Equipment trading revenues up 45% to $8.7 million. In October, dividend up 14% to $0.40. 

September '10: EPS (adjusted) $0.60, up 140%. Revenues up 16% to $95.8 million. Leasing revenues up 16% to $85.7 million. Equipment trading revenues up 18% to $9.3 million.     

June '10: EPS $0.15 vs. $1.15. Revenues down 3% to $87.4 million. Leasing revenues down 4% to $70.9 million. Equipment trading revenues up 12% to $11.0 million. Raised $197 million by selling notes paying 5.5%. In June, dividend up 17% to $0.35. 

March '10: EPS $0.53, down 18%. Revenues down 21% to $79.6 million. Leasing revenues down 12% to $72.9 million. Equipment trading revenues down 64% to $5.7 million. In March, dividend up 20% to $0.30.  

Tapestry

12/18:   We're selling Tapestry. It has proved too volatile for this market.

Expected FY 12/2018 EPS Growth: 6%  FY 2019 P/E: 14  

Background
Operates more than 225 full-price retail apparel and accessories stores, 200 discount outlets and 500 department store “shop-in-shops.” Until recently, Coach primarily sold mostly women’s leather handbags, footwear and other accessories. However, in 2014, facing falling sales, Coach appointed a new CEO tasked with the job of transforming its business model from selling mainly Coach branded merchandise to a collection of premium brands. The transformation began to take shape with the 2015 acquisition of women’s shoemaker Stuart Weitzman and the launch of “Coach 1941,” a new ready-to-wear apparel brand that same year, and culminated in 2017 with a deal to acquire Kate Spade, which markets a full line of women’s handbags, shoes, and apparel. Along the way, Coach upped the quality and styling of its own products, closed unprofitable stores, refurbished remaining locations, and minimized discounting.

Quarterly Reports   

September '18: EPS $0.48, up 14% vs. year-ago. Revenues up 7% to $1.38 billion. Gross margin (adjusted) 67.8% of sales vs. 66.1% (higher is better). Coach same store sales up 4% vs. year-ago. Coach brand sales up 4% (constant currency) to $961 million. Kate Spade same store sales down 5%. Kate Spade sales up 21% to $325 million. Stuart Weitzman sales down 1% to $95 million. 

June '18: EPS (adjusted) $0.60, up 20%. Revenues up 31% to $1.48 billion. Gross margin (adjusted) 68.0% of sales vs. 66.8%. Coach same store sales up 2% vs. year-ago. Coach brand sales up 3% (constant currency) to $1.10 billion. Kate Spade same store sales down 3%. Kate Spade sales $312 million. Stuart Weitzman sales down 17% to $84 million. Agreed to acquire Kate Spade’s operations in Singapore, Malaysia and Australia and the Stuart Weitzman’s business in Southern China.

March '18: EPS (adjusted) $0.54, up 17%. Revenues up 33% to $1.32 billion. Gross margin (adjusted) 69.0% vs. 70.9%. Coach same store sales up 3%. Coach brand sales up 3% (constant currency) to $969 million. Kate Spade same store sales down 9%. Kate Spade sales $269 million. Stuart Weitzman sales up 5% to $84 million.

December '17: EPS (adjusted) $1.07, up 43%. Revenues up 35% to $1.79 billion. Gross margin (adjusted) 67.0% of sales vs. 68.6%. Coach same store sales up 3%. Coach brand sales up 2% to $1.23 billion. Kate Spade same store sales down 7%. Kate Spade sales $435 million. Stuart Weitzman sales up 2% to $121 million. Coach changed corporate name to Tapestry Inc, and its ticker symbol to "TPR".

September '17: EPS (adjusted) $0.42, down $0.03. Revenues up 24% to $1.29 billion. Gross margin (adjusted) 66.2% vs. 68.9%. Coach same store sales down 2%. Coach brand sales (adjusted) down 2% to $950 million. Kate Spade same store sales down 9%. Stuart Weitzman sales up 9% to $96 million. Completed $2.4 billion acquisition of Kate Spade, which markets modestly priced women’s handbags, shoes, and apparel globally.

June '17: EPS (adjusted) $0.50, up 11%. Revenues (adjusted) up 6% to $1.13 billion. Coach same store sales (North America) up 4%. Coach brand sales (adjusted) up 5% to $1.05 billion. Stuart Weitzman sales (adjusted) up 15% to $88 million. Operating margin 17.0% vs. 10.1%. Paid $2.4 billion to acquire Kate Spade, which marketed modestly priced women’s handbags, shoes, and apparel through 300+ stores. Borrowed $400 million at 3.0% and $600 million at 4.125% via bond sales to help finance the acquisition.

March '17: EPS (adjusted) $0.46, up 5%. Revenues down 4% to $995.2 million. Same store sales (North America) up 3%. Operating margin was 15.2% 13.0%. Opened 15 new Coach stores in China and Europe and closed 20 existing Coach locations, primarily in the U.S. and Japan.

December '16: EPS (adjusted) $0.75  up 10%.  Revenues up 4% to $1.322  billion.  Same store sales (North America) up 3%. Operating margin was 21.0% of sales vs. 20.5%.

Quarterly Reports

September ' 16: EPS (adjusted) $0.45 up 10%. Revenues up 1% to $1.038 billion. Same store sales (North America) up 2%. Operating margin 11.3% vs. 13.7%.

Target

2/1/17:  Target's turnaround has run aground, sell Target. 

Target said that November/December same store sales (sales at stores open at least one-year) decreased by 1.3%. Taking into account the sale of its in-store pharmacy business to CVS, total sales dropped 4.9%. On line sales rose 30% but in-store sales dropped 3%. Target cut January quarter EPS guidance to $1.50 per share, down from $1.65.

Media reports say that Target is shutting down two new projects that were under development. One, the “Store of the Future” was a small-format Target store that would be part showroom and part warehouse, with robots picking items behind the scenes to have ready for customers as they checked out. The second was a software platform that would have the potential to an open marketplace where other retailers could list goods for sale.

In June, Target hired the former chief technology officer of sports news website Bleacher Report to play a leadership role at a secret project that Target has underway dubbed "Goldfish." According to media reports, Target is hiring around 20 engineers and project managers for the project which has been described as "ambitious and bent on disrupting the way people shop."

Expected FY 1/2017 EPS Growth: 11% CF Payout Ratio: 26%

Background
Operates 1,800 Target stores, 251 Super-Targets, and 8 smaller City Target stores in the U.S. Offers fashion apparel, electronics, home furnishings and general merchandise targeted to middle- and upper-income consumers. In 2008, began adding grocery items. In 2013, opened 124 stores in former Zellers's locations in Canada (Those stores produced disappointing results and Target closed then in April 2015). Meanwhile, in the U.S. sales growth stalled in the recent years as it lost its fashion cachet and did not have a competitive online offering. In December 2013, bad guys breeched Target's security and accessed credit card and other information of 40 million customers. In April 2014, Target fired its CEO and hired a replacement in July 2014.

Quarterly Reports 

October '16: EPS $1.04 per share, $0.27 above analyst forecasts, and up 21% vs. year-ago quarter. Revenues down 6% to $16.441 billion. Excluding pharmacy, sales were flat vs. year-ago. Online sales 3.5% of total vs. year-ago 2.7%. Gross margin (GM) 30.2% of sales vs. year-ago 29.4% (higher is better). Operating cash flow (OCF) (continuing ops) $1,393 million ($2.42/share) vs. $976 million ($1.55/share). Number of stores 1,800 vs. year-ago 1,792.

July '16: EPS (adjusted) of $1.23 per share, $0.11 above analyst forecasts, and up $0.01 vs. year-ago quarter. Total revenues down 7% to $16.2 billion (reflects sale of pharmacy and clinic business and 1% drop in same store sales). Online sales 3.3% of total vs. year-ago 2.7%. Gross margin (GM) 31.3% of sales vs. year-ago 30.8%. Operating cash flow (OCF) (continuing ops) $1,143 million ($1.95/share) vs. $1,263 million ($1.97/share). Number of stores 1,797 vs. year-ago 1,792. In June, dividend up 7% to $0.60.

April '16: EPS (adjusted) $1.29, up 17%. Total revenues down 5% to $16.2 billion (reflects sale of pharmacy and clinic business). Same store sales (SSS) up 1%. Online sales 3.5% of total vs. 2.8%. Gross margin 30.9% of sales vs. 30.4%. Operating cash flow (OCF) (continuing ops) $253 million ($0.42/share) vs. $777 million ($1.20/share). Number of stores 1,793 vs. 1,792.

January '16: EPS (adjusted) $1.52, up 2%. Revenues down 1% to $21.626 billion. SSS up 2%. Online sales 5.0% of total vs. 3.7%. GM 27.9% vs. 28.4%. OCF (continuing ops) $2.274 billion ($3.70/share) vs. $3.081 billion ($4.78/share). In December, CVS Health completed acquisition of Target's pharmacy and clinic businesses for $1.9 billion. The businesses will operate as a store within a store under the CVS/pharmacy brand.

October '15: EPS (adj) $0.86, up 9%. Revenues up 2% to $17.613 billion. SSS up 2%. Online sales 2.7% of total vs. 2.3%. G) 29.4% vs. 29.5% (higher is better). OCF (continuing ops) $990 million ($1.57/share) vs. $664 million ($1.04/share). Number of stores 1,805 vs. year-ago 1,801. Said testing delivering groceries to customers' homes in Minneapolis for $3.99 per order. Promoted CFO to the newly created role of chief operating officer (COO) where he is in charge of store operations, supply chain, and properties.

July '15: EPS (adj) $1.22, up 21%. Revenues up 3% to $17.427 billion. SSS up 2%. Online sales 2.7% of total vs. 2.2%. GM 30.8% vs. 30.5%. OCF (continuing ops) $1.249 billion ($1.95/share) vs. $1.12 billion ($1.76/share). CVS Health agreed to buy and run 1,700 Target in-store pharmacies. In June, dividend up 8% to $0.56.

April '15: EPS (adj) $1.10, up 20%. Revenues up 3% to $17.119 billion. SSS up 2%. Online sales 2.8% of total vs. 2.1%. GM) 30.4%  vs. 29.5%. OCF (continuing) $717 million ($1.11/share) vs. $815 million ($1.28/share). Appointed new Senior VP of Merchandising to reposition Target's food business. Closing its 133 Canadian stores. The Canadian units were opened in March 2013, when the firm was run by a different CEO, and were not expected to turn a profit until 2021.

January '15: EPS (adj) $1.50, up 15%. Counting write-offs from Canadian store closures, EPS -$5.59. Revenues up 4% to $21.751 billion. GM 28.4% vs. 27.6%. OM 4.4% vs. 3.7%. Operating cash flow (continuing) $3.081 billion ($4.78/share) vs. $2.766 billion ($4.33/share). SSS up 4%. 

October '14: EPS (adjusted) $0.54, down 3%. Revenues up 3% to $17.732 billion. GM 29.2% vs. 29.7%. OM 3.8% vs. 4.1%. OCF $536 million ($0.84/share) vs. $644 million ($1.01/share). SSS up 1%.

July '14: EPS (adj) $0.78, down 21%. Revenues up 2% to $17.406 billion. GM 30.1% vs. 31.4%. OM 4.7%  vs. 6.6%. OCF $994 million ($1.56/share) vs. $879 million ($1.37/share). SSS even. Hired new senior level executive from outside Target to run media and guest engagement efforts. Board replaced existing CEO, who had been with Target for 35 years, with a temporary CEO. Hired a "chief information security officer" from outside Target to run information security operations. In June, dividend up 20% to $0.52. 

April '14: EPS $0.66, down 15%. Sales up 2% to $17.05 billion. GM 29.2% vs. 30.8%. OM 4.8% of vs. 8.4%. Operating cash flow $520 million vs. $3,230 million. SSS even vs. year-ago. Hired new Chief Information Technology Officer from outside Target.

January '14: EPS $0.81, down 45%. Sales down 4%. GM 26.9% vs. 28.9%. OM 4.6% vs. 7.3%. SSS down 2.5%.

United Parcel Service

1/1/16:  The reports of Amazon's potential entry into the airfreight business and ground delivery business, not to mention the stories about Amazon's intention to use drones for package delivery may never become come to pass. But that doesn't matter. United Parcel Service shares will take a hit every time such rumors hit the news. This market is rough enough. We don't need that additional risk.

Media reports said Amazon.com is considering leasing up to 25 aircraft to create its own airfreight operation. Thus Amazon would be competing with United Parcel, FedEx, and other airfreight services. Other media reports said Amazon had purchased a fleet of trucks and trailer that could be used for ground delivery.

Expected FY 12/2015 EPS Growth: 11%  CF Payout Ratio: 35%

Background
Founded in 1907, but privately held until its November 1999 IPO, United Parcel Service is the world's largest express and package delivery company. UPS owns or leases around 650 aircraft and around 106,000 ground vehicles. In 2012, UPS agreed to acquire TNT Express, one of the largest package delivery companies in Europe, but the European Union blocked the acquisition. In 2014, UPS spent $2.37 billion on shareholder dividends and $2.42 billion on share buybacks.

Quarterly Reports   

September '15: EPS $1.39, up 5% compared vs. year-ago quarter. Total revenues flat vs. year-ago at $14.2 billion. U.S. Domestic package revenues up 2% to $8.86 billion, but international shipment revenues down 7% to $2.96 billion. Supply chain and freight revenues flat at $2.42 billion. Total company shipments rose 2% vs. year-ago to 1.1 billion packages. Completed $1.8 billion acquisition of Coyote Logistics, a technology-driven truckload freight brokerage company. Expected deal to add large scale full-truck-load and other transportation management services to its portfolio.

June '15: EPS $1.35, up 12% (adjusted). Total revenues down 1% to $14.1 billion. U.S. Domestic package revenues up 2% to $8.81 billion, international shipment revenues down 6% to $3.05 billion. Supply chain and freight revenues down 5% to $2.24 billion. Acquired Parcel Pro, an independent logistics provider to the jewelry, wristwatch and collectibles industries.

March '15: EPS $1.12, up 14%. Total revenues up 1% to $14.0 billion. U.S. Domestic package revenues up 4% to $8.81 billion, international shipment revenues down 5% to $2.97 billion. Supply chain and freight revenues down 1% to $2.19 billion. In February, dividend up 9% to $0.73.

Verizon Communications 

11/1/17:  So far this year, wireless revenues, Verizon's main growth engine, dropped 4% in its March quarter, and 2% in both its June and September quarters. What's more, wireless services price competition is fierce and, if anything, is likely to intensify. We don't see Verizon's new growth initiatives moving the needle much compared to its $20 billion or so annual wireless revenues.

Verizon reported September quarter earnings (adjusted) of $0.98 per share, even with analyst forecasts, but $0.03 below year-ago. Revenues up 3% to $31.717 billion. Wireless revenues down 2% to $21.6 billion. Wireless retail connections up 1% vs. year-ago to 115.3 million. Wireline revenues up 1% to $7.7 billion. Oath (Yahoo, AOL etc.) revenues totaled $2.0 billion. Revenues beat analyst forecasts, otherwise not much to shout about here.

In September, Verizon increased its quarterly dividend by 2% to $0.59 per share.

In September, Verizon shares were pressured on news that wireless telecom competitor T-Mobile is offering free Netflix subscriptions to lure new subscribers.

In July, Verizon paid $225 million for a fiber-optic network serving the Chicago area. The move is part of VZ's strategy to deploy 5G (advanced Internet) broadband Internet services.

Expected FY 1/2017 EPS Growth: -3%  CF Payout Ratio: 32%

Background
Verizon is the largest wireless phone service provider in the US and the second largest telecom services provider. Verizon has moved to expand its video and advertising capabilities with the acquisitions of AOL in 2015 and of Yahoo's assets in 2016.

Quarterly Reports 

June '17: EPS 0.96, up $0.02 vs. year-ago. Revenues even vs. year-ago at $30.548 billion. Wireless revenues down 2% to $21.3 billion. Driven by a 4% jump in Fios Internet subscribers, wireline revenues up 1% to $7.8 billion. Oath (Yahoo, AOL etc.) revenues even with year-ago.  Agreed to spend $1.05 billion over the next three years for 12.4 million miles of fiber optic cable and associated equipment. Began offering gigabit (940 megabits/second vs. 50 mb or so from cable networks) Internet connections for $70/mo to eight million homes and businesses in the Northeast.  Paid $3.1 billion (stock) for wireless spectrum holder Straight Path Communications (STRP). Straight Path has millimeter spectrum needed for 5G, the next big step in wireless communications. Completed acquisition of Yahoo! Verizon is combining Yahoo!, HuffPost and AOL to create Oath. Tim Armstrong, former CEO of AOL, now heads Oath.

March '17: EPS (adjusted) $0.95, down 10%. Total revenues (adjusted) down 5% to $29.814 billion. Wireless revenues down 4% to $20.9 billion. Wireline revenues down 1% to $7.9 billion. Digital Media (AOL etc.) revenues down 4% to $457 million. Internet of Things (IoT) revenues up 17% to $221 million. Acquired Skyward, which supplied software for management of commercial drone fleets.

December '16: EPS (adjusted) $0.86, down 3%. Total revenues (adjusted) down 2% to $32.340 billion. Wireless revenues down 2% to $23.377 billion. Wireline revenues down 3% to $7.812 billion. Digital Media (AOL etc.) revenues down 5% to $532 million. Internet of Things (IoT) revenues up 21% to $243 million. Acquired privately-held LQD WiFi, a New York-based startup that provides communications "street smart" kiosks.

September '16: EPS (adjusted) $1.01 vs. $1.04. Total revenues (continuing) down 3% to $30.937 billion. Wireless revenues down 4% to $22.101 billion. Wireline revenues down 2% to $7.787 billion. Formed joint venture with Hearst to acquire Complex, a digital video network targeting millennials. Agreed to acquire privately-held Sensity Systems, which provided communications, security, networking and other applications integrated with street lighting systems to cities and other communities. Paid $2.4 billion to acquire vehicle fleet management services provider Fleetmatics, and $4.8 billion to acquire Yahoo's operating businesses. In August, dividend up 2% to $0.5775.

June '16: EPS (adjusted) $0.94, down 7%. Total revenues down 5% to $30.532 billion. Wireless revenues down 4% to $21.704 billion. Wireline revenues down 2% to $7.8 billion. Acquired privately-held fleet management services provider Telogis. Completed sale of landline assets in California, Florida and Texas to Frontier Communications. 

March '16: EPS (adjusted) $1.06, up 4%. Revenues down 2% to $32.2 billion. Wireless revenue down 2% to $22.3 billion. Wireline revenue down 2% to $9.3 billion. Paid $1.8 billion to acquire a fiber-optic communications network from XO Communications. Also bought video broadcast monitoring and archiving company Volicon.

June '14: EPS (adjusted) $0.91, up 25% vs. year-ago. Revenues up 6% to $31.483 billion. Operating cash flow $7.665 billion ($1.85/share) vs. year-ago $9.617 billion ($3.36/share). Wireless revenues up 8% to $21.483 billion. Wireless operating income up 8% to $6.985 billion. Wireline revenues flat vs. year-ago at $9.76 billion. Wireline operating income $259 million vs. $74 million. Raised $2.0 billion selling 1.35% notes due in 2017 and another $1.3 billion by selling floating rate notes also due in 2017.

March '14: EPS (adjusted) $0.84, up 24%. Revenues up 5% to $30.818 billion. Operating cash flow $7.139 billion ($2.08/share) vs. $7.531 billion ($2.62/share). Wireless revenues up 7% to $20.879 billion. Wireless operating income up 14% to $7.32 billion. Wireline revenues flat at $9.79 billion. Wireline operating income $147 million vs. year-ago $13 million. Sold unused wireless airwaves licenses for $3.3 billion. Issued 1.274 billion Verizon shares to Vodafone Group shareholders to complete its acquisition of the 45% of Verizon Wireless that it didn't already own.

December '13: EPS (adjusted) $0.66, up 74%. Revenues up 3% to $31.065 billion. Operating cash flow $10.511 billion ($3.66/share) vs. $6.368 billion ($2.23/share). Wireless revenues up 6% to $21.125 billion. Wireless operating income up 30% to $6.23 billion. Wireline revenues down 2% to $9.8 billion. Wireline operating income $131 million vs. loss. Agreed to acquire EdgeCast Networks, which develops digital media content delivery systems.

September '13: EPS (adjusted) $0.77, up 20%. Revenues up 4% to $29.279 billion. Operating cash flow $11.159 billion ($3.88/share) vs. $9.847 billion ($3.31/share). Wireless revenues up 7% to $20.399 billion. Wireless operating income up 14% to $6.89 billion. Wireline revenues down 1% to $9.8 billion. Wireline operating income $141 million. Agreed to buy Vodafone Group's 45% interest in Verizon Wireless for $130 billion. Sold $49 billion of bonds at rates ranging from 2.5% to 6.4%. In August, dividend up 3% to $0.53.

June '13: EPS (adjusted) $0.73, up 14%. Revenues up 4% to $29.786 billion. Operating cash flow $9.617 billion ($3.36/share) vs. $9.314 billion ($3.27/share). Wireless revenues up 8% to $19.976 billion. Wireless operating income up 13% to $6.46 billion. Wireline revenues down 2% to $9.7 billion. Wireline operating income down 61% to $74 million.

March '13: EPS $0.68, up 15%. Revenues up 4% to $29.420 million. Operating cash flow $7.531 billion ($2.63/share) vs. $5.957 billion ($2.10/share). Wireless revenues up 7% to $19.523 billion. Wireless operating income up 23% to $6.42 billion. Wireline revenues down 1% to $9.8 billion. Wireline operating income down 92% to $13 million.

December '12: (operating) $0.52, even. Counting non-recurring, EPS -$1.48 vs. -$0.71. Revenues up 6% to $30.045 billion. Operating cash flow $6.782 billion ($2.35/share) vs. $8.268 billion ($2.92/share). Wireless revenues up 10% to $20.0 billion. Wireless operating income up 11% to $4.79 billion. Wireline revenues down 2% to $10.0 billion. Wireline operating loss -$326 million vs. +$300 million. Started trials of joint venture with Coinstar, operator of Redbox DVD rental kiosks, which offers combination of physical DVD rental and online streaming video content. Verizon owns 65% and Redbox 35%.

September '12: EPS $0.56, up 14%. Revenues up 4% to $29.407 billion. Operating cash flow $9.487 billion ($3.31/share) vs. $8.720 billion ($3.07/share). Wireless revenues up 7% to $19.02 billion. Wireless operating income up 17% to $6.05 billion. Wireline revenues down 2% to $9.91 billion. Wireline operating income down 23% to $41 million.  In September, dividend up 3% to $0.515.

June '12: EPS $0.64, up 12%. Revenues up 4% to $28.552 billion. Operating cash flow $9.314 billion ($3.27/share) vs. $7.757 billion ($2.74/share). Wireless revenues up 7% to $18.58 billion. Wireless operating income up 22% to $5.71 billion. Wireline revenues down 3% to $9.93 billion. Wireline operating income down 41% to $188 million. Earnings call transcript. Completed acquisition of Hughes Telematics, which provided communications services to the trucking industry.  

March '12: EPS $0.59, up 16%. Revenues up 5% to $28.24 billion. Operating cash flow $5.957 billion ($2.09/share) vs. $5.035 billion ($1.78/share). Wireless revenues up 8% to $18.27 billion. Wireless operating income up 20% to $13.1 billion. Wireline revenues down 2.0% to $9.95 billion. Wireline operating income down 46% to $157 million. Earnings call transcript. Formed joint venture with Coinstar, operator of Redbox DVD rental kiosks that will offer a combination of physical DVD rental and online streaming video content. Verizon owns 65% and Redbox 35%. 

December '11: EPS (adjusted) $0.52, down $0.02. Revenues up 8% to $28.44 billion. Operating cash flow $8.270 billion ($2.92/share) vs. $8.249 billion ($2.92/share). Wireless revenues up 13% to $18.3 billion. Wireless customers up 6% to 108.7 million. Wireline revenues down 1.5% to $10.1 billion. Earnings call transcript.   

September '11: EPS (adjusted) $0.56, up $0.01. Revenues up 5% to $27.91 billion. Operating cash flow $8.728 billion ($3.07/share) vs. $8.307 billion ($2.94/share). Wireless revenues up 9% to $17.7 billion. Wireless customers up 7% to 107.7 million. Wireline revenues down 1% to $10.1 billion. In August, dividend up 3% to $0.50.

June '11: EPS $0.57, up 12%. Revenues up 3% to $27.54 billion. Operating cash flow $7.747 billion ($2.74/share) vs. $9.723 billion ($3.44/share). Wireless revenues up 10% to $17.3 billion. Wireless customers up 7% to 106.3 million. Wireline revenues even at $10.2 billion. Completed acquisition of information technology infrastructure and "cloud" services provider Terremark Worldwide for $1.4 billion.

March '11: EPS 0.51, up 6% (adjusted). Revenues flat at $26.99 billion. Operating cash flow $5.035 billion ($1.78/share) vs. $7.084 billion ($2.50/share). Wireless revenues up 10% to $16.9 billion. Wireless customers up 6% to 104.0 million. Wireline revenues down 2% to $10.1 billion. Earnings call transcript. In February, began selling Apple's iPhone.

December '10: EPS (continuing) $0.54, up 8%. Operating cash flow $8.15 billion ($2.88/share). Revenues down 3% to $23.4 billion. Excluding divested wireline operations, revenues up 2%. Wireline revenues down 3% to $10.3 billion (excluding divested). Wireless revenues up 6% to $16.1 billion. Wireless customers up 6% to 94.1 million. Earnings call transcript. In October, began selling Apple's iPad tablet computer.

September '10: EPS (continuing) $0.56, up 37%. Counting non-recurring, EPS $0.31. Operating cash flow down 1% to $8.34 billion ($2.95/share). Revenues down 3% to $26.5 billion. Excluding divested wireline operations, revenues up 2%. Wireline revenues down 4% to $10.3 billion (excluding divested). Wireless revenues up 6% to $16.3 billion. Wireless customers up 7% to 93.2 million. Earnings call transcript. In August, dividend up 2.6% to $0.4875. 

June '10: EPS loss -$0.07 vs. $0.52 profit. Excluding non-recurring, EPS $0.58. Operating cash flow up 30% to $9.8 billion ($3.47/share). Total revenues flat at $26.8 billion. Wireline revenues down 3% to $11.1 billion. Wireless revenues up 3% to $16.0 billion. Wireless customers up 5% to 92.1 million. Earnings call transcript.  

March '10: EPS (continuing) $0.56, vs. $0.63. Including non-recurring (mostly healthcare) EPS $0.14. Operating cash flow up 7% to $7.12 billion ($2.50/share). Revenues up 1% to $26.9 billion. Wireline revenues down 3% to $11.2 billion. Wireless revenues up 4% to $15.8 billion. Wireless customers up 7% to 92.8 million. Earnings call transcript. 

December '09: EPS (adjusted) $0.54 vs. $0.61. Revenues +10% to $27.1 billion. For 2009, operating cash flow +15% to $31.57 billion. Wireline revenues d-4% to $11.5 billion. Wireless revenues +23% to $15.7 billion. Wireless customers +25% to 91.3 million.  

September '09: EPS (adjusted) $0.60 vs. $0.66. Revenues +10% to $27.3 billion. YTD operating cash flow $23.1 billion ($8.13 per share), +16%. Wireline revenues -5% to $11.6 billion. Wireless revenues +24% to $15.8 billion. Wireless customers +26% to 89.0 million. Earnings call transcript. Cancelled "Hub" service, an Internet-connected home phone with an iPhone-like touch screen, eight months after launch. In September, dividend +3% to $0.475.  

June '09: EPS $0.63 (adjusted) vs. $0.67. Revenues +11% to $26.9 billion. Domestic wireline revenues -5% to $11.49 billion. Wireless revenues +28% to $15.48 billion. Wireless customers +27% to 87.7 million. Wireline connections -10% to 34.3 million. Agreed to sell local wireline operations in 14 states to Frontier Communications for $8.6 billion.   

March '09: EPS EPS $0.63 (adjusted) vs. $0.61. Revenues +12% to $26.6 billion. Domestic wireline revenues -4% to $11.57 billion. Wireless revenues +30% to $15.412 billion. Wireless customers +29% to 86.5 million. Wireline connections -10% to 35.2 million. Completed acquisition of Alltel for $5.9 billion cash plus assumption of $22.2 billion debt. Deal added 12.9 million wireless customers, but required to divest 2.1 million customers.

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