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Recent Articles
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Nike’s Fiscal Fourth Quarter Better Than Feared
Jun 28, 2025
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Image: Nike’s shares have been pummeled of late.
On June 26, Nike reported better than expected fourth quarter fiscal 2025 results with revenue and GAAP earnings per share exceeding the consensus forecasts. Fiscal fourth quarter revenues were $11.1 billion, down 12% on a reported basis and 11% on a currency-neutral basis. Nike Direct revenues were down 14% on a reported and currency-neutral basis in the quarter, while wholesale revenues fell 9% on a reported and currency-neutral basis in the period. Quarterly revenues for Converse fell 26%. Gross margin declined 440 basis points in the fiscal fourth quarter, to 40.3%, while diluted earnings per share fell 86% in the quarter, to $0.14.
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Clorox Misses Consensus Estimates in Its Fiscal Third Quarter
Jun 28, 2025
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Image: Clorox’s shares have been under pressure more recently.
Year-to-date, Clorox’s net cash provided by operations was $687 million compared to $355 million in the year-ago period, representing a 94% increase. For fiscal 2025, Clorox expects net sales to be down 1% to flat and adjusted organic sales to be up about 2%. Gross margin is now expected to be up about 150 basis points, with margin enhancement efforts more than offsetting cost inflation, high trade promotion spending, and higher costs from recently implemented tariffs. Adjusted earnings per share is expected to be between $6.95-$7.35, up 13% and 19%, respectively, and the midpoint slightly higher than consensus. Clorox ended the quarter with $2.5 billion in debt and $226 million in cash. We’re steering clear of Clorox due in part to its weak revenue performance and large net debt position. Shares yield 4.1% at the time of this writing.
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Disney Expects Strong Earnings Growth in Fiscal 2025
Jun 25, 2025
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Image Source: Valuentum.
Looking to all of fiscal 2025, Disney expects adjusted earnings per share of $5.75, a 16% increase over 2024 levels. Cash provided by operations is targeted at $17 billion, benefiting from a $2 billion increase from the deferral of tax payments. Disney is targeting a double-digit increase in operating income for its Entertainment segment for the year, while Sports is expected to increase 18% with respect to segment operating income in fiscal 2025. Its Experiences segment is targeted for 6%-8% operating income growth for the year. We like Disney, but view shares as fairly valued at the moment. Shares yield 0.9% at the time of this writing.
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Exxon Mobil’s Shares Have Been Choppy of Late
Jun 25, 2025
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Image: Exxon Mobil’s shares have been choppy of late.
Exxon Mobil continues to be shareholder friendly while it exercises cost discipline. Shareholder distributions in the quarter totaled $9.1 billion, consisting of $4.3 billion of dividends and $4.8 billion of share repurchases. The oil and gas giant has now achieved $12.7 billion of cumulative structural cost savings versus 2019, with $0.6 billion of cost savings achieved during the quarter. Management expects to deliver $18 billion of cumulative savings through the end of 2030 versus 2019. Free cash flow in the quarter was $8.84 billion, and the company ended the quarter with industry-leading debt-to-capital and net-debt-to-capital ratios. We like Exxon Mobil as energy exposure in a diversified portfolio, but we don’t include shares in any newsletter portfolio at this time. Shares yield 3.5% at the time of this writing.
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