Dow went up 26, advancers over decliners about 5-4 & NAZ gained 12. The MLP index traded higher in the 222s & the REIT index was flattish in the 417s (record levels) territory. Junk bond funds fluctuated & Treasuries were a little higher. Oil climbed in the 53s & gold inched up 1 to 1489.
AMJ (Alerian MLP Index tracking fund)
McDonald's (MCD), a Dow stock & Dividend Aristocrat, reported disappointing Q3 results, sending shares lower. The fast-food chain reported its EPS fell to $2.11. It was its first profit miss in 2 years. Revenue was up 1% to $5.43B. The estimate called for EPS of $2.21 revenue of $5.5B. “Our third quarter performance was strong, and broad-based momentum continued with our 17th consecutive quarter of global comparable sales growth," said CEO Steve Easterbrook. "Globally, our customers are rewarding our commitment of running better restaurants and executing our Velocity Growth Plan by visiting more often." Global comparable sales climbed 5.9% year over year as US sales rose 4.8%. MCD said promotions & menu-price increases were behind the increased domestic sales growth, but that traffic continued to decline. The burger chain has been slow to roll out plant-based meat offerings, potentially losing business to rivals. MCDonald’s is in the process of remodeling 14K US restaurants to make them more digital-friendly with the hope that it will improve traffic. The company raised its annual div 8% to $1.25. The stock sank 7.16 (3%).
If you would like to learn more about MCD, click on this link:
club.ino.com/trend/analysis/stock/MCD?a_aid=CD3289&a_bid=6ae5b6f7
Procter & Gamble (PG), another Dow stock & Dividend Aristocrat, again posted strong quarterly earnings, beating expectations on the top & bottom line, allowing it to raise its sales & earnings outlook for the year. The consumer giant has consistently been growing its sales, propelled by its innovation, marketing & a simplified organizational structure that has improved its speed to market. CEO David Taylor said that the company continues to see healthy competition in countries like China, though is not seeing any particular uptick in rivalry. Meantime, he expressed confidence in the sustainability of the company's growth, pointing to an equal focus it is putting on growing both sales & profit. It is also focused on creating new products & businesses thru innovation, rather than simply stealing from existing markets, Taylor said. “We are creating business, not taking business from others,” Taylor said. Across the board, the company sees “continued consumer strength,” he added. Should that strength weaken, though, Taylor said the company is well prepared to handle an economic downturn. He pointed to the company's innovation, as well as the categories it is in, like detergent, that consumers tend to view as essential. Fiscal EPS rose to $1.36, up from $1.22 a year earlier. Excluding items, EPS was $1.37, beating the estimate of $1.24. Net sales rose 7% to $17.8B, topping expectations of $17.42B. The company raised its outlook for fiscal 2020 all-in sales growth from 3-4% to 3-5% growth compared with the prior fiscal year. It also said it now expects its core EPS to grow 4-10% in fiscal 2020, from original expectations of 4-9% growth. The stock rose 3.53.
If you would like to learn more about PG, click on this link:
club.ino.com/trend/analysis/stock/PG?a_aid=CD3289&a_bid=6ae5b6f7
Procter & Gamble earnings and sales top estimates, sending shares higher
Lockheed Martin (LMT) raised its estimate for 2019 earnings as quarterly profit climbed 9.2% amid improved sales of its F-35 fighter jets. The company also said the “preliminary outlook for 2020 assumes there is no impact from U.S. Government actions related to Turkey.” The US & Turkey are embroiled in a dispute over a Russian missile defense system & its impact on Turkish defense purchases. LMT estimated 2020 cash flow of $7.2B, lower than its 2019 year-end estimate of $7.6B, which disappointed investors & sent the stock lower. LMT raised its profit EPS for 2019 by 1.9% to $21.55 from $21.15, the high point of its previous guidance, amid an improved performance in its aeronautics business. The company said 2020 sales would increase 5% to $62B from the current year-end 2019 estimate of $59.1B. Business unit profit margins in 2020 were estimated to be 10.5-10.8%, lower than the 11.2% margin so far this year. Turkey had agreed to buy 100 stealthy F-35 jets, LM's biggest program, but the Pentagon removed the NATO ally from the program & the jet's supply chain. To be sure, other countries have expressed an interest in buying the F-35 & in Sep, the State Dept approved a proposed sale of 32 F-35 fighter jets worth as much as $6.5B to Poland. The Pentagon has said the US is spending $500-600M in non-recurring engineering in order to shift the supply chain away from Turkey. There was some operating segment wins for LMT during the qtr. EPS rose to $5.66 in Q3 from $5.14 a year earlier. Net sales rose to $15.17B from $14.32B. The company delivered 28 F-35 combat jets in the qtr, compared with 20 a year earlier. So far this year, the company has delivered 83 of the jets, out of a total expected for the year of 131. The stock went up 2.84.
If you would like to learn more about LMT, click on this link:
club.ino.com/trend/analysis/stock/LMT?a_aid=CD3289&a_bid=6ae5b6f7
Lockheed Martin profit up but forecasts lower cash flow in 2020; shares slip
Earnings season is kicking into high gear. This week they are coming in mixed to favorable. Today buyers are taking a rest with no major news on the trade front.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 53.93 | +0.62 | +1.2% |
| GC=F | Gold | 1,490.80 | +2.70 | +0.2% |
McDonald's (MCD), a Dow stock & Dividend Aristocrat, reported disappointing Q3 results, sending shares lower. The fast-food chain reported its EPS fell to $2.11. It was its first profit miss in 2 years. Revenue was up 1% to $5.43B. The estimate called for EPS of $2.21 revenue of $5.5B. “Our third quarter performance was strong, and broad-based momentum continued with our 17th consecutive quarter of global comparable sales growth," said CEO Steve Easterbrook. "Globally, our customers are rewarding our commitment of running better restaurants and executing our Velocity Growth Plan by visiting more often." Global comparable sales climbed 5.9% year over year as US sales rose 4.8%. MCD said promotions & menu-price increases were behind the increased domestic sales growth, but that traffic continued to decline. The burger chain has been slow to roll out plant-based meat offerings, potentially losing business to rivals. MCDonald’s is in the process of remodeling 14K US restaurants to make them more digital-friendly with the hope that it will improve traffic. The company raised its annual div 8% to $1.25. The stock sank 7.16 (3%).
If you would like to learn more about MCD, click on this link:
club.ino.com/trend/analysis/stock/MCD?a_aid=CD3289&a_bid=6ae5b6f7
McDonald's profit misses for first time in 2 years
Procter & Gamble (PG), another Dow stock & Dividend Aristocrat, again posted strong quarterly earnings, beating expectations on the top & bottom line, allowing it to raise its sales & earnings outlook for the year. The consumer giant has consistently been growing its sales, propelled by its innovation, marketing & a simplified organizational structure that has improved its speed to market. CEO David Taylor said that the company continues to see healthy competition in countries like China, though is not seeing any particular uptick in rivalry. Meantime, he expressed confidence in the sustainability of the company's growth, pointing to an equal focus it is putting on growing both sales & profit. It is also focused on creating new products & businesses thru innovation, rather than simply stealing from existing markets, Taylor said. “We are creating business, not taking business from others,” Taylor said. Across the board, the company sees “continued consumer strength,” he added. Should that strength weaken, though, Taylor said the company is well prepared to handle an economic downturn. He pointed to the company's innovation, as well as the categories it is in, like detergent, that consumers tend to view as essential. Fiscal EPS rose to $1.36, up from $1.22 a year earlier. Excluding items, EPS was $1.37, beating the estimate of $1.24. Net sales rose 7% to $17.8B, topping expectations of $17.42B. The company raised its outlook for fiscal 2020 all-in sales growth from 3-4% to 3-5% growth compared with the prior fiscal year. It also said it now expects its core EPS to grow 4-10% in fiscal 2020, from original expectations of 4-9% growth. The stock rose 3.53.
If you would like to learn more about PG, click on this link:
club.ino.com/trend/analysis/stock/PG?a_aid=CD3289&a_bid=6ae5b6f7
Procter & Gamble earnings and sales top estimates, sending shares higher
Lockheed Martin (LMT) raised its estimate for 2019 earnings as quarterly profit climbed 9.2% amid improved sales of its F-35 fighter jets. The company also said the “preliminary outlook for 2020 assumes there is no impact from U.S. Government actions related to Turkey.” The US & Turkey are embroiled in a dispute over a Russian missile defense system & its impact on Turkish defense purchases. LMT estimated 2020 cash flow of $7.2B, lower than its 2019 year-end estimate of $7.6B, which disappointed investors & sent the stock lower. LMT raised its profit EPS for 2019 by 1.9% to $21.55 from $21.15, the high point of its previous guidance, amid an improved performance in its aeronautics business. The company said 2020 sales would increase 5% to $62B from the current year-end 2019 estimate of $59.1B. Business unit profit margins in 2020 were estimated to be 10.5-10.8%, lower than the 11.2% margin so far this year. Turkey had agreed to buy 100 stealthy F-35 jets, LM's biggest program, but the Pentagon removed the NATO ally from the program & the jet's supply chain. To be sure, other countries have expressed an interest in buying the F-35 & in Sep, the State Dept approved a proposed sale of 32 F-35 fighter jets worth as much as $6.5B to Poland. The Pentagon has said the US is spending $500-600M in non-recurring engineering in order to shift the supply chain away from Turkey. There was some operating segment wins for LMT during the qtr. EPS rose to $5.66 in Q3 from $5.14 a year earlier. Net sales rose to $15.17B from $14.32B. The company delivered 28 F-35 combat jets in the qtr, compared with 20 a year earlier. So far this year, the company has delivered 83 of the jets, out of a total expected for the year of 131. The stock went up 2.84.
If you would like to learn more about LMT, click on this link:
club.ino.com/trend/analysis/stock/LMT?a_aid=CD3289&a_bid=6ae5b6f7
Lockheed Martin profit up but forecasts lower cash flow in 2020; shares slip
Earnings season is kicking into high gear. This week they are coming in mixed to favorable. Today buyers are taking a rest with no major news on the trade front.
Dow Jones Industrials
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