|
|
Recent Articles
-
Toll Brothers Ends Strongest Year Ever
Dec 11, 2024
-
Image Source: Toll Brothers.
Looking to fiscal 2025, Toll Brothers' deliveries are expected in the range of 11,200-11,600 units with an average delivered price per home of $945,000-$965,000 and adjusted home sales gross margin expected at 27.25%. The company’s pace of deliveries is expected to be strong, but the company’s gross margin isn’t as strong as we would like, facing pressure from last year’s adjusted mark. SG&A, as a percentage of home sales revenue is expected in the range of 9.4%-9.5%, up from last year’s measure of 9.3%. Toll Brothers ended its fiscal fourth quarter with $1.3 billion in cash and cash equivalents and $2.7 billion in loans payable and senior notes. The company continues to return cash to shareholders in the form of buybacks and dividends. Though we don’t include Toll Brothers in any newsletter portfolio, the bellwether’s fiscal fourth quarter report indicates the housing market remains healthy.
-
Oracle’s Remaining Performance Obligations (RPO) Growth Speaks to Accelerated Expansion
Dec 10, 2024
-
Image Source: Oracle.
We particularly liked Oracle’s growth in total remaining performance obligations (RPO) in the quarter, which were up 49% in USD and 50% in constant currency year-over-year. During the past twelve months, Oracle’s operating cash flow came in at $20.3 billion, while free cash flow was $9.5 billion. The company ended the quarter with $11.3 billion in cash and marketable securities and $88.6 billion in notes payable and other borrowings. Though Oracle has a hefty net debt position and capital spending is expected to double in fiscal 2025, we still like the company’s cloud opportunity, and it remains a key holding in both the simulated Dividend Growth Newsletter portfolio and simulated ESG Newsletter portfolio.
-
Dollar General Hit By Hurricane-Related Expenses
Dec 8, 2024
-
Image Source: Valuentum.
Looking to fiscal 2024, Dollar General’s net sales growth is expected in the range of 4.8%-5.1% compared to prior expectations of 4.7%-5.3%. Same-store sales growth for the year is targeted in the range of 1.1%-1.4% compared with prior expectations in the range of 1%-1.6%. Diluted earnings per share for the year is now anticipated in the range of $5.50-$5.90 compared to prior expectations of $5.50-$6.20. For fiscal 2025, Dollar General plans to execute 4,885 real estate projects, including opening roughly 575 new stores in the U.S., up to 15 new stores in Mexico, fully renovating approximately 2,000 stores, remodeling roughly 2,250 stores, and relocating approximately 45 stores. Though its same-store sales growth and store expansion initiatives are noteworthy, Dollar General no longer makes the cut for inclusion in any of the newsletter portfolios.
-
Lululemon’s International Business Powers Results, Tweaks 2024 Guidance
Dec 8, 2024
-
Image Source: Lululemon.
For fiscal 2024, Lululemon now expects net revenue in the range of $10.452-$10.487 billion (was $10.375-$10.475 billion), representing growth of 9%, or 7% when excluding the extra week in 2024. The outlook was above the consensus forecast of $10.43 billion. Its diluted earnings per share is now expected in the range of $14.08-$14.16 (was $13.95-$14.15 per share) for the year. Thanks in part to strength of its International business, Lululemon’s Power of Three x2, which calls for a doubling of net revenue by 2026 from 2021 levels, to $12.5 billion, remains in the ballpark. The high end of our fair value estimate range stands at $400 per share.
|
