Summary Hershey recently released its Q4 and FY 2017 results which were not received well by the investment community. The stock has dropped ~$12 from its mid-December ~$115 level. HSY’s FY2017 revenue results are far short from the ambitious ‘$10B by 2017’ goal set in 2013. Revenue and diluted EPS in FY2017 were not that [...]
Summary On February 1, 2018, V reported Q1 2018 results and indicated that factoring in tax reform benefits it expected earnings per share (EPS) growth in the high end of the mid-20s range versus its previous forecast in the mid-teens. V provided guidance for higher operating expenses in 2018 (high end of mid single-digits vs. [...]
Summary MasterCard released its Q4 and FY2017 results February 1, 2018. Shareholders have been richly rewarded since MasterCard became a publicly listed entity in 2006. MA is one of my highest conviction stocks but I am of the opinion its price has risen beyond levels that are deemed reasonable. [...]
Summary UPS reported its Q4 and FY2017 results on February 1, 2018. UPS was trading at a lofty valuation and investors were disappointed to see UPS was once again negatively impacted by the surge in pre-Christmas volume. The retracement in UPS’ stock price to the ~$119.50 level and the growth in earnings have now restored [...]
Summary ADP released its Q2 2018 results January 31, 2018 making further positive revisions to its FY2018 Outlook. While ADP’s forecasts for FY2018 keep being revised upward, the stock price has risen significantly in recent months. This has resulted in ADP being even more overvalued than when I last analyzed the company in August 2017. [...]
Summary Stanley Black & Decker has grown dramatically in recent years through a strategy of organic growth and acquisition. It possesses a portfolio of well known brands and its two most significant recent acquisitions are Newell Brands and Craftsman. It is one of a handful of companies which has increased its dividend uninterrupted annually for [...]
Summary Rockwell Collins recently approved its $30B takeover by United Technologies. The transaction is expected to close later in 2018. The acquisition is a shrewd move although United Technologies appears to be paying slightly more than full price. The recently introduced US tax changes will enable United Technologies to repatriate funds held overseas which will [...]
Summary UNP is North America’s largest publicly traded railroad. Its extensive rail network places it in an advantageous position. It continues to make progress in reducing its Operating Ratio (OR). In FY2017 its OR was 63%. Its 2019 target is ~60%. UNP rewarded shareholders with dividend payments and share repurchases totalling $5.995B in 2017. I [...]
Events Subsequent to January 10, 2018 Post The following is an update to my January 10, 2018 Becton Dickinson (NYSE: BDX) article. On January 23, 2018, BDX held its Annual Meeting of Shareholders and reaffirmed its guidance. Details are as follows: [...]
Summary On January 23, 2018, CNR reported diluted EPS of C$7.24 for 2017, up 55% over 2016 diluted EPS of C$4.67 and adjusted diluted EPS of C$4.99, up 9% over 2016 adjusted diluted EPS of C$4.59. Q4 results were impacted by challenging operating conditions, including harsh early winter weather across the network which increased the [...]
