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Fundamental data is updated weekly, as of the prior weekend. Please download the Full Report and Dividend Report for any changes.
Apr 17, 2020
Earnings Roundup for the Week Ended Sunday, April 19, Covering Companies Across the Board
Let's take a look at several earnings reports across numerous industries in this article as the ongoing coronavirus (‘COVID-19’) pandemic forces the global economy to a crawl. Please note that as these reports primarily cover the first quarter of calendar year 2020, the impact of the pandemic has yet to be truly reflected in corporate earnings. That said, these reports still provide an important glimpse into what to expect going forward and how companies are responding to the pandemic.
Apr 17, 2020
Bank of America Retains Earnings Power and Healthy Balance Sheet
Image Source: Bank of America 1Q2020 Earnings Presentation. Growing pressure from Fed officials on banks to cut dividends, and any extremely-adverse scenario, as outlined by JPMorgan in its latest annual note, coming to fruition may suggest that no banking dividend may be completely safe in this environment. That said, assuming the US economy is able to avoid a prolonged depression-type scenario, Bank of America has the earnings power and balance sheet to withstand most probable scenarios and come out the other side continuing to nip at JPMorgan’s heels for best in class US mega-bank. We are maintaining our recently reduced $28 fair value estimate of Bank of America.
Apr 17, 2020
JB Hunt Scales Back
Image Source: JB Hunt Transportation Services Inc – First Quarter 2020 Earnings IR Presentation. JB Hunt Transportation offers trucking freight and other logistics services to customers in North America, including intermodal services (which is the firm’s largest business segment by revenue). On April 14, the company reported first-quarter 2020 results, which showed its top-line beat consensus expectations while its bottom-line missed consensus expectations. Part of the reason why JB Hunt missed bottom-line expectations was due to incentive pay increases related to the ongoing coronavirus (‘COVID-19’) pandemic and the need to compensate frontline workers for the risks they are taking (and we appreciate all the work frontline workers are doing during these challenging times). Shares of JBHT yield ~1.1% as of this writing.
Apr 17, 2020
Dividend Increases/Decreases for the Week Ending April 17
Let's take a look at companies that raised/lowered their dividend this week.
Apr 16, 2020
Johnson & Johnson Beats Estimates, Adjusts Guidance in Light of COVID-19
Image Source: Johnson & Johnson – First Quarter 2020 Earnings IR Presentation. On April 14, Best Ideas Newsletter and Dividend Growth Newsletter portfolio holding Johnson & Johnson increased its quarterly dividend by over 6% sequentially to $1.01 per share which represents the firm’s 58th consecutive annual increase. We view this payout boost in the face of the ongoing coronavirus (‘COVID-19’) pandemic as a sign of management’s confidence in Johnson & Johnson’s future free cash flows, which we appreciate. Shares of JNJ now yield ~2.8% as of this writing at the new annualized payout rate.
Apr 16, 2020
JPMorgan Outlines Scenario Where Dividend Could Be Cut
Source: JPMorgan 1Q20 Earnings Presentation. JPMorgan posted a terrible first-quarter 2020 report April 14, missing analyst expectations (which are a wild guess in times like these) by a long shot. If the economy continues to worsen, JPMorgan’s results will get uglier from here. On the earnings call, management indicated that second-quarter provisioning might be incrementally worse if the economy worsens. There is also room for deterioration in its Markets segment if trading activity dies down and one would expect the Asset & Wealth Management segment results to worsen if the markets are flat-to-down from here. The government rescue programs might also prove to be a temporary fix and consumer and business debt might just go bad later after an initial fix from stimulus funds received from the government. In the firm’s annual letter, Chairman and CEO Jamie Dimon also painted the picture for how the dividend could possibly be cut if things turn out worse than the more adverse scenario that the firm is postulating as one potential outcome.
Apr 16, 2020
Wells Fargo Faces Regulatory Pressure Amid an Enormous Bad Debt Cycle
Image Source: Wells Fargo 1Q2020 Earnings Presentation. Wells Fargo is facing the same enormous bad debt cycle ahead just like its big bank peers, but it is also carrying a ton of its own baggage at just the wrong time. Earnings had already been under pressure before the bad debt cycle had hit, and the bank is facing a very difficult regulatory situation, with a cap on total assets that has been in place since 2018. This is causing the bank to forgo revenue growth opportunities and make difficult trade offs to help existing customers over new customers. This means that Wells is competing with one arm tied behind its back; it has also meant substantially higher costs as the bank has done a ton of hiring to help deal with the regulatory issues. Now Wells is under (optical) pressure to retain employees. All of this has resulted in sliding earnings over the past four quarters.
Apr 13, 2020
Historic Oil Deal Reached
Image Source: Chevron Corporation - March 2020 Security Analyst Meeting Presentation. Over the Easter holiday weekend, members from the Organization of Petroleum Exporting Countries (‘OPEC’), non-OPEC members that are part of the OPEC+ group (countries that in the recent past have joined forces with OPEC to curtail global oil supplies in a formal manner), and non-OPEC members outside of the OPEC+ group such as Brazil, Canada, and the United States came to an agreement to cut their collective oil output by north of 10 million barrels per day. Global oil and other raw energy resource prices have been simply demolished year-to-date due to a combination of demand destruction from the ongoing coronavirus (‘COVID-19’) pandemic and the emergence of a price war between Saudi Arabia and Russia. Please note that oil demand destruction due to the “cocooning” of households (and the related drop off in refined petroleum product demand from automobiles, airplanes, etc.) may be as high as 35 million barrels per day according to some analysts, an enormous figure that’s resulting in major stockpile buildups all over the world. Other analysts don’t necessarily see the level of demand destruction as that high (projections are being updated constantly); however, they are still calling for a drop off in demand that’s in the ten(s) of millions of oil barrels per day range (at least in the short-term, depending on how long the pandemic lasts). Even if this agreement is effectively implemented, that won’t result in oil prices (and other raw energy resource prices) returning to pre-COVID-19 levels in the short/medium-term, in our view, but will make emerging from this pandemic an easier task given that global oil storage capacity is nearing its limit. As of this writing on April 13, oil prices are trading up modestly but are still down by well over 50% year-to-date.
Apr 13, 2020
Pinterest Sees Interest in its Social Media Site Grow During COVID-19 Pandemic
Image Source: Pinterest Inc – Fourth Quarter of 2019 Earnings IR Presentation. Social media firm Pinterest published an operational and financial update after the market close April 7 that caught a lot of investor’s eyes. Pinterest reported that its user base, measured by monthly active users (‘MAUs’), had continued to grow sequentially in the first quarter of 2020 on both a domestic and international basis. While the ongoing coronavirus (‘COVID-19’) pandemic has likely negatively impacted its digital advertising business, Pinterest is communicating to investors that over the longer term, its social media offering is growing in popularity which supports growth down the road.
Apr 10, 2020
Dividend Increases/Decreases for the Week Ending April 10
Let's take a look at companies that raised/lowered their dividend this week.



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