Valuentum Exclusive Analysis for the Discerning Investor

Symbol Keyword

May 15, 2025

Dick’s Sporting Goods to Acquire Foot Locker
Image: Dick’s Sporting Goods’ shares sold off on its announcement that it would acquire Foot Locker. On May 15, Dick’s Sporting Goods announced that it would acquire Foot Locker in a transaction that implies an equity value of $2.4 billion and enterprise value of $2.5 billion. Dick’s intends to finance the acquisition through a combination of cash on hand and new debt and is expected to close in the second half of 2025. Dick’s intends to operate Foot Locker as a standalone business unit within its portfolio, while it maintains the Foot Locker brands. Dick’s also released preliminary first quarter results, showcasing comparable store sales growth of 4.5% and non-GAAP earnings per diluted share of $3.37. The ongoing strength in its business positions it well to gobble up Foot Locker. The deal will allow Dick’s to serve consumers in new locations in the U.S., while also expanding internationally for the first time. The combined entity will benefit from learnings from Dick’s House of Sport and Foot Locker’s Reimagined Concept stores and serve as a stronger partner for key brands, offering multiple platforms for both established and emerging partners. Dick’s expects the transaction to be accretive to EPS in the first full fiscal year post-close and to deliver between $100-$125 million in cost synergies. Our $229 per share fair value estimate for Dick’s remains unchanged at this time.

May 15, 2025

Cisco Raises Fiscal 2025 Outlook Again
Image: Cisco put up excellent fiscal third quarter results. Looking to the fourth quarter of fiscal 2025, Cisco’s revenue is expected to be between $14.5-$14.7 billion, with non-GAAP earnings per share targeted in the range of $0.96-$0.98. For all of fiscal 2025, revenue is expected to be in the range of $56.5-$56.7 billion (was $56-$56.5 billion) and non-GAAP earnings per share in the range of $3.77-$3.79 (was $3.68-$3.74). We continue to like Cisco as a holding in both the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio. The high end of our fair value estimate range stands at $74 per share.

May 12, 2025

Albemarle Continues to Navigate a Low Lithium Price Environment
Image Source: TradingView. Albemarle’s cash flow from operations in the quarter came in at $545 million, which included a $350 million customer prepayment. The firm reiterated its view that it has line of sight to breakeven free cash flow assuming current lithium pricing. Albemarle also maintained its full-year 2025 outlook considerations. At year-end 2024 average lithium market price of $9/kg LCE, net sales are targeted in the range of $4.9-$5.2 billion, with adjusted EBITDA in the range of $0.8-$1.0 billion. Though Albemarle continues to struggle with a low lithium price environment, we were encouraged by commentary regarding free cash flow, and the stock remains an idea in the ESG Newsletter portfolio.

May 6, 2025

Vertex Raises Bottom End of 2025 Revenue Guidance Range
Image Source: Vertex Pharma. Vertex’s reported results were impacted by an intangible asset impairment charge of $379 million associated with VX-264, but the company’s non-GAAP net income still fell to $1.1 billion in the first quarter compared to $1.2 billion in last year’s quarter as a result of higher operating expenses. Looking to the balance of 2025, however, Vertex raised the low end of its revenue guidance range to be between $11.85-$12 billion, up from $11.75-$12 billion previously. The company ended the quarter with $11.4 billion in cash and cash equivalents and no traditional debt. Though Vertex’s first quarter results came in lower than expected, we continue to like the long term story at the company, particularly in pain management, and the stock remains key biotech exposure in the Best Ideas Newsletter portfolio.

May 6, 2025

Booking Holdings' Free Cash Remains Robust
Image Source: Booking Holdings. Looking to the second quarter of 2025, Booking Holdings expects revenue growth of 10%-12% and adjusted EBITDA growth of 13%-16%. For full year 2025, on a constant currency basis, management expects gross bookings growth in the mid to high-single digits, with revenue advancing by the mid to high-single digits, too. Adjusted EBITDA is targeted for high-single-digits to low-double-digits growth, while adjusted earnings per share is targeted in the low to mid-teens. We continue to like Booking Holdings as an idea in the Best Ideas Newsletter portfolio.

May 4, 2025

Amazon Guides to Strong Second Quarter Revenue Growth
Image: Amazon’s shares are trading near technical support levels. Looking to the second quarter, Amazon expects sales to be between $159-$164 billion, or to grow 7%-11% compared with the second quarter of last year. The midpoint was above the consensus forecast of $161.1 billion. Operating income is targeted to be between $13-$17.5 billion in the second quarter, compared with $14.7 billion in the second quarter of 2024, with the midpoint of the range coming in below the consensus forecast. Though the operating income guide for the second quarter wasn’t great, we like the momentum behind AWS and Amazon’s strong balance sheet, which houses $41.2 billion in net cash.

May 4, 2025

Apple’s Earnings Set March Quarter Record; Services Revenue Hits All-Time High
Image: Apple’s shares remain resilient despite tariff pressures. On May 1, Apple reported better than expected second quarter results for fiscal 2025 with both revenue and GAAP earnings per share coming in ahead of the consensus forecasts. The iPhone giant reported quarterly revenue of $95.4 billion, up 5% year-over-year, while quarterly diluted earnings per share came in at $1.65, up 8% year-over-year. The board raised its dividend 4% and authorized an additional buyback program to the tune of $100 billion.

May 2, 2025

Dividend Increases/Decreases for the Week of May 2
Let's take a look at firms raising/lowering their dividends this week.

May 1, 2025

Microsoft’s Cloud Business Performing Better Than Expected
Image: Microsoft’s shares have held up well in this volatile market environment. In the quarter, Microsoft returned $9.7 billion to shareholders in the form of dividends and share repurchases. Total cash, cash equivalents, and short-term investments totaled $79.6 billion at the end of the quarter, while debt totaled $42.9 billion. Cash flow from operations increased to $37 billion from $31.9 billion in the three months ended March 31, while capital expenditures were $16.7 billion, up from $11 billion in the prior-year quarter. We continue to be huge fans of Microsoft, and the company delivered in its fiscal third quarter results.

May 1, 2025

Meta Platforms Posts Excellent First Quarter Results
Image: Meta’s free cash flow remains robust. Looking to the second quarter of 2025, Meta Platforms expects total revenue to be in the range of $42.5-$45.5 billion (consensus was $43.8 billion) and total expenses to be in the range of $113-$118 billion, down from its prior outlook of $114-$119 billion. Full year 2025 capital expenditures, including principal payments on finance leases, are targeted at $64-$72 billion, raised from its prior outlook of $60-$65 billion. Management noted that the updated outlook in part reflects additional data center investments to support artificial intelligence efforts. Though Meta is not a large dividend payer, we think its dividend growth prospects are stellar, and the company is included in the Dividend Growth Newsletter portfolio.