Week in Review 43/23

 

Welcome and thanks for reading!

In this review, I will make a summary of important and interesting news and events over the last week related to my portfolio holdings. Also, I will put together some interesting articles from other websites that caught my attention during the past week.

Received Dividends:

October 25, 2023

• €53.64– Cisco Systems, Inc. (CSCO)

Week 43: Total net dividends €53.64

Dividend income is reported after the deduction of taxes. Check more at my Monthly Dividend sheet.

Portfolio Holdings News:

October 23, 2023

• Chevron Corporation (CVX) Announces Agreement to Acquire Hess; CVX announced that it has entered into a definitive agreement with Hess Corporation (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The total enterprise value, including debt, of the transaction is $60 billion.

October 24, 2023

• UPM-Kymmene Corporation (UPM) Reports Third-Quarter Results 2023; UPM reports comparable EPS €0.28, decreasing 75.9% year-over-year. Revenue of €2,584 million misses analyst estimates by €137 million and decreased 24.4% versus the same quarter last year. Management guides full-year 2023 comparable EBIT to decrease from 2022.

• Verizon Communications Inc. (VZ) Reports 3Q Results; VZ reports Non-GAAP EPS of $1.22, beating analyst estimates by $0.04 but decreasing 7.6% year-over-year. Revenue fell 2.7% to $33.33 billion, which was in line with expectations. For FY2023 Management guides cash flow from operations in the range of $36.25 billion to $37.25 billion and adjusted EPS of $4.55 to $4.85.

• Texas Instruments Incorporated (TXN) Reports Third Quarter 2023 Financial Results; TXN reports GAAP EPS of $1.85, beating analyst estimates by $0.03 but decreasing 25% year-over-year. Revenue fell 13.5% to $4.53 billion, missing estimates by $60 million. Management guides fourth quarter revenue in the range of $3.93 billion to $4.27 billion and earnings per share between $1.35 and $1.57.

• NextEra Energy, Inc. (NEE) Reports Third-Quarter 2023 Financial Results; NEE reports Non-GAAP EPS of $0.94, beating analyst estimates by $0.06 and increased 10.6% year-over-year. Revenue of $7.17 billion misses analyst estimates by $10 million but increased 6.7% versus the same quarter last year. For 2023 and 2024, Managemnet continues to expect adjusted earnings per share to be in the ranges of $2.98 to $3.13 and $3.23 to $3.43 respectively.

• Kimberly-Clark Corporation (KMB) Announces Third Quarter 2023 Results; KMB reports third quarter Non-GAAP EPS of $1.74, 24% above from last year and $0.15ahead of estimates. Revenue of $5.1 billion misses analyst estimates by $60 million but increased 2.0% versus the same quarter last year. Management raised 2023 outlook for organic growth to 4% - 5%, and for adjusted earnings per share growth of 15% - 17%.

• The Coca-Cola Company (KO) Reports Third Quarter 2023 Results; KO reports Non-GAAP EPS of $0.74, beating analyst estimates by $0.05 and increased 7.0% year-over-year. Revenue of $12 billion beats analyst estimates by $580 million and increased 8.1% versus the same quarter last year. For FY2023 Management guides organic revenue (non-GAAP) growth of 10% to 11% and comparable currency neutral EPS (non-GAAP) growth of 13% to 14% and comparable EPS (non-GAAP) growth of 7% to 8%, versus $2.48 in 2022.

• Illinois Tool Works Inc. (ITW) Reports Third Quarter 2023 Results; ITW reports GAAP EPS of $2.55, beating analyst estimates by $0.10 and increased 9% year-over-year. Revenue of $4 billion misses analyst estimates by $100 million but increased 0.5% versus the same quarter last year. Management is narrowing full year GAAP EPS guidance range to $9.65 to $9.85 per share.

• RTX Corporation (RTX) Reports Q3 2023 Results; RTX reports third quarter Non-GAAP EPS of $1.25, 3% above from last year and $0.03 ahead of estimates. Adjusted revenue grew 11.8% to $19 billion, topping estimates by $800 million. Reported sales of $13.5 billion, down 21 percent versus prior year, reflecting the impact of the previously disclosed Pratt powder metal matter. For for full year 2023 Management guides reported sales of approximately $68.5 billion, up from $67.5 - $68.5 billion and adjusted EPS of $4.98 - $5.02. Management has approved a $10 billion accelerated share repurchase program commencing almost immediately.

• Visa Inc. (V) Reports Fourth Quarter 2023 Financial Results; V reports fourth quarter Non-GAAP EPS of $2.33, 21% above last year's result and $0.09 more than expected. Revenue grew 10.3% to $8.6 billion, topping estimates $50 million.

• Visa Inc. (V) Increased Quarterly Dividend; The board of directors of V increased quarterly cash dividend 16% from $0.45 to $0.52 per share thats payable on December 1, 2023, to all holders of record as of November 9, 2023. and authorized a new $25.0B multi-year share repurchase program.

• Ares Capital Corporation (ARCC) Announces September 30, 2023 Financial Results; ARCC reports third quarter Non-GAAP EPS of $0.59, 18% above last year's result and $0.01 more than expected. Total investment income grew 22% to $655 million, misses estimates by $$4.14 million.

• Archer-Daniels-Midland Company (ADM) Reports Third Quarter Earnings; ADM reports third quarter Non-GAAP EPS of $1.63, 12.4% below last year's result but $0.09 more than expected. Revenue decreased 12.1% to $21.7 billion, which was 1.94 billion less than expected.

• Canadian National Railway Company (TSE:CNR) Announces Third Quarter Results; CNR reports Non-GAAP EPS of C$1.69, missing analyst estimates by C$0.03 and decreasing 21% year-over-year. Revenue of C$4.0 billion misses analyst estimates by C$60 million and decreased 12% versus the same quarter last year. Management continues to expect flat to slightly negative year-over-year growth in adjusted diluted EPS in 2023. CN reiterates its longer-term financial perspective and continues to target compounded annual diluted EPS growth in the range of 10%-15% over the 2024-2026 period.

October 25, 2023

• General Dynamics Corporation (GD) Reports Third-Quarter 2023 Financial Results; GD reports third quarter GAAP EPS of $3.04, 6.7% below last year's result but $0.12 more than expected. Revenue of $10.6 billion beats analyst estimates by $520 million and increased 6.0% versus the same quarter last year. Company-wide backlog of $95.6 billion was the highest in the company’s history.

October 26, 2023

• Neste Corporation (NESTE) Reports Third-Quarter Results 2023; NESTE reports comparable EPS €0.88, decreasing 19.2% year-over-year and €0.13 above estimates. Revenue of €5,973 million misses analyst estimates by €950 million and decreased 9.3% versus the same quarter last year.

• Orion Corporation (ORNBV) Reports Third-Quarter Results 2023; ORNBV reports comparable EPS €0.44, decreasing 68.4% year-over-year and €0.08 above estimates. Revenue of €301.1 million beating analyst estimates by €7 million but decreased 38.8% versus the same quarter last year. Management estimates that net sales in 2023 will be slightly higher than in 2022 without the EUR 228 million impact from the ODM-208 upfront payment.

• Kesko Corporation (KESKO) Reports Third-Quarter Results 2023; KESKO reports comparable EPS €0.37, decreasing 19.2% year-over-year and was in-line with estimates. Revenue of €2,949 million misses analyst estimates by €40 million and decreased 2% versus the same quarter last year. For 2023 Management estimates that its comparable operating profit in 2023 will be in the range of €680–730 million.

• Unilever PLC (UL) Announced Results for Third Quarter of 2023; UL reported turnover of €15.2B that fell 3.8% year-over-year and underlying sales growth of 5.2% with 5.8% price growth and 0.6% volume decline. Managements 2023 outlook remains unchanged with underlying sales growth above 5% and a modest improvement in underlying operating margin.

• Intel Corporation (INTC) Reports Third-Quarter 2023 Financial Results; INTC reports Non-GAAP EPS of $0.41, beating analyst estimates by $0.19 and increased 11% year-over-year. Revenue of $14.16 billion beating analyst estimates by $560 million but decreased 7.7% versus the same quarter last year. Management guiding fourth-quarter revenue of $14.6 billion to $15.6 billion and EPS attributable to Intel of $0.23 and non-GAAP EPS attributable to Intel of $0.44.

• Bristol-Myers Squibb Company (BMY) Reports Third Quarter Financial Results for 2023; BMY reports third quarter Non-GAAP EPS of $2.00, 1% above from last year and $0.23 ahead of estimates. Revenue decreased 2.2% to $10.97 billion, which in-line with estimates. Management are adjusting 2023 GAAP diluted EPS range to $3.68-$3.83 and raising midpoint of Non-GAAP diluted EPS range, with the new range being $7.50-$7.65.

• Altria Group, Inc. (MO) Reports 2023 Third-Quarter Results; MO reports third quarter Non-GAAP EPS of $1.28, equal to the reference period but $0.02 less than expected. Revenue of $5.28 billion misses analyst estimates by $150 million and decreased 2.4% versus the same quarter last year. Management are narrowing full-year 2023 guidance and now expect to deliver adjusted diluted EPS in a range of $4.91 to $4.98. This range represents an adjusted diluted EPS growth rate of 1.5% to 3% from a base of $4.84 in 2022.

• Lockheed Martin Corporation (LMT) secured a $364.31M firm-fixed-price order (N0001924F5567) against a previously issued basic ordering agreement (N0001921G0017). This order is for the production and delivery of six MH-60R aircraft for the government of Norway.

• General Dynamics Corporation (GD) Awarded $450 Million Financial Systems Modernization Contract; General Dynamics Information Technology (GDIT), a business unit of GD, announced today that it was awarded a $450 million contract by the Centers for Medicare and Medicaid Services to continue operating and modernizing its Healthcare Integrated General Ledger Accounting System (HIGLAS). The contract has an eight-month base period with seven option years.

• L3Harris Technologies, Inc. (LHX) Reports Third-Quarter 2023 Financial Results; LHX reports third quarter Non-GAAP EPS of $3.19, 2.15% below from last year but $0.16 ahead of estimates. Revenue grew 15.8% to $4.92 billion, topping estimates $50 million. Management narrowed non-GAAP EPS range to $12.25 - $12.45 and reiterated adjusted FCF guidance of $2.0B.

• Eaton Corporation plc (ETN) Investing $85 Million; ETN announced additional manufacturing investments of $85 million to meet surging utility demand for its solutions supporting essential electric grid infrastructure projects. Eaton will increase manufacturing capacity in Queretaro, Mexico, for line installation and protective equipment vital to undergrounding power lines and bolstering energy resilience.

• United Parcel Service, Inc. (UPS) Releases 3Q 2023 Earnings; UPS reports third quarter Non-GAAP EPS of $1.57, 47.5% below last year's result but $0.01 more than expected. Revenue of $21.06 billion misses analyst estimates by $410 million and decreased 13.0% versus the same quarter last year. Management now expects full-year 2023 consolidated revenue to be between $91.3 billion and $92.3 billion and a consolidated adjusted operating margin of between 10.8% and 11.3%.

• Digital Realty Trust, Inc. (DLR) Reports Third Quarter 2023 Results; DLR reports third quarter FFO of $1.62, 3.0% below last year's result and in-line with estimates. Revenue of $1.4 billion beats analyst estimates by $10 million and increased 17.6% versus the same quarter last year. Management narrowed 2023 Core FFO per share outlook to $6.58 - $6.62.

• LTC Properties, Inc. (LTC) Reports 2023 Third Quarter Results; LTC reports third quarter FFO of $0.65, 8.3% above from last year and $0.01 ahead of estimates. Revenue revenue grew 13.3% to $49.3 million, topping estimates by $1.32 million.

• Medical Properties Trust, Inc. (MPW) Reports 2023 Third-Quarter Results; MPW reports FFO of $0.38, beating analyst estimates by $0.02 but decreased 15.6% year-over-year. Revenue of $306.58 million misses analyst estimates by $35.2 million and decreased 13.0% versus the same quarter last year. Management are narrowing its 2023 calendar estimate of per share net income to $0.36 to $0.38 to account for third quarter results and is also narrowing its estimate of per share NFFO to $1.56 to $1.58 vs. consensus of $1.55.

• Canadian Utilities Limited (TSE:CU) Reports Third Quarter 2023 Earnings; CU reports third quarter Non-GAAP EPS of C$0.32, 28.9% below last year's result and C$0.01 less than expected.

October 27, 2023

• Chevron Corporation (CVX) Reports Third Quarter 2023 Results; CVX reports third quarter Non-GAAP EPS of $3.05, 45.1% below last year's result and $0.64 less than expected. Revenue of $54.08 billion beats analyst estimates by $1.08 billion but decreased 18.8% versus the same quarter last year.

• AbbVie Inc. (ABBV) Reports Third-Quarter 2023 Financial Results; ABBV reports third quarter Non-GAAP EPS of $2.95, 19.4% below from last year but $0.08ahead of estimates. Revenue fell 5.9% to $13.93 billion, topping estimates $220 million. Management raises 2023 Adjusted Diluted EPS Guidance Range from $10.86 - $11.06 to $11.19 - $11.23 and raises 2024 Adjusted Diluted EPS Guidance Floor from $10.70 to $11.00.

• AbbVie Inc. (ABBV) Announces Dividend Increase; ABBV announed that its board of directors declared an increase in the company's quarterly cash dividend from $1.48 per share to $1.55 per share beginning with the dividend payable on February 15, 2024 to shareholders of record as of January 16, 2024. This reflects an increase of approximately 4.7 %. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by more than 285 percent.

• Kontoor Brands, Inc. (KTB) Increases Quarterly Dividend; KTB announced that its Board of Directors has declared a regular quarterly cash dividend of $0.50 per share of its common stock, an increase of $0.02 or 4 percent. The cash dividend will be payable on December 18, 2023, to shareholders of record at the close of business on December 8, 2023.

• WestRock Company (WRK) Increases Dividend; WRK reported that its board of directors declared a quarterly dividend of $0.3025 per share on its common stock, an increase of $0.0275 per share from its previous quarterly dividend which represents an annualized increase of $0.11 per share, or 10%. The quarterly dividend of $0.3025 per share will be paid to stockholders of record as of the close of business on November 13, 2023, and will be paid on November 21, 2023.

• T. Rowe Price Group, Inc. (TROW) Reports Third Quarter 2023 Results; TROW reports third quarter Non-GAAP EPS of $2.17, 16.7% above from last year and $0.40 ahead of estimates. Revenue grew 5.0% to $1.67 billion, topping estimates $20 million. At the end of quarter, AUM of $1.35T and net client outflows of $17.4B.

• LyondellBasell Industries N.V. (LYB) Reports Third Quarter 2023 Earnings; LYB reports Non-GAAP EPS of $2.46, beating analyst estimates by $0.47 and increased 25.5% year-over-year. Revenue of $10.63 billion beating analyst estimates by $570 million but decreased 13.2% versus the same quarter last year. In the fourth quarter, Management expects seasonally softer demand across most businesses.

• Fortis Inc. (FTS) Reports Third Quarter 2023 Results; FTS reports third quarter Non-GAAP EPS of C$0.84, 18.3% above last year's result and C$0.03 more than expected.

Articles that caught my attention:

• Undervalued Dividend Growth Stock of the Week: Abbott Laboratories (ABT) by Jason Fieber at Daily Trade Alert
• Canadians leave $17 billion on the table each year, in the Sunday Reads by Dale Roberts at Cut the Crap Investing
• Realty Income: Ridiculously Low Valuation Paves Way For >20% Annual Returns by Leo Nelissen at Seeking Alpha
• Goldman Sachs – Stumble Has Created a Buying Opportunity by Charles Fournier at Financial Freedom Is A Journey
• 10 Years Later, DSR Still Solves Investors’ Main Struggles [Podcast] by DivGuy at The Dividend Guy Blog
• British American And Brookfield Infrastructure: 7+% Yielding Buffett-Style Bargains by Dividend Sensei at Seeking Alpha
• AT&T Vs. Verizon: Which Stock Is A Better Buy After Q3? by Samuel Smith at Seeking Alpha
• Visa Is Currently Fairly Valued by Charles Fournier at Financial Freedom Is A Journey
• Dividend Stock Watch List: Lanny’s November 2023 Edition by Lanny at Dividend Diplomats
• The one lesson from the first "Lost Decade" of the 21st Century by Dividend Growth Investor
• Northwest Natural Holding Company: An Undervalued Utility by Felix Martinez at Dividend Power
• 10 Dividend Growth Stocks For October 2023 by FerdiS at Seeking Alpha
• Warren Buffett's Simple Path To Wealth: 'Just Sit And Think' by Samuel Smith at Seeking Alpha
• Why Ignore Low Yield Stocks when Planning Retirement? by DivGuy at The Dividend Guy Blog
• Top 5 Dividend Growth Stocks to Buy Now — November 2023 Edition by Jason Fieber at Daily Trade Alert

Thanks for stopping by, have a nice next week!

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