More From Penny Morgan
What Drove PM’s EU Segment’s Operating Income to Fall?
Philip Morris’s (PM) European Union region’s reported net revenue fell 6.8% to $1.9 billion in 4Q15 compared to $2.1 billion in 4Q14.
Growth Initiatives and Outlook for Consumer Goods Companies
In order to drive growth, Colgate-Palmolive and other companies reinvested savings. They targeted innovation, technology, digital engagement, and emerging markets.
RAI’s Operating Margin Grew 41.2% on Strong Segment Results
RJR Tobacco’s adjusted operating margin increased 4.1 percentage points to 44.6% in 4Q15.
Why P&G’s Fabric Care Business Earnings Grew in Fiscal 2Q16
Procter & Gamble’s (PG) fabric care and home care segment includes some leading products in the global market.
Philip Morris’s Low 2014 Volumes in Latin America and Canada Segments
In 2014, Philip Morris’s Latin America and Canada segment reported a 2.3% decline in net revenues. The region had the company’s lowest revenues, at 11%.
Clorox’s Fiscal 2Q16 Revenue Is Estimated to Be $1.3 Billion
For fiscal 2Q16, Wall Street analysts’ consensus revenue estimate for Clorox is ~$1.3 billion, a 3.4% rise from the same quarter last year.
Mixed Revenue Results for Consumer Packaged Goods in 1Q16
Revenue results for consumer packaged goods (or CPG) companies for 1Q16 were mixed. Procter & Gamble (PG) and Colgate-Palmolive (CL) started the quarter on a disappointing note.
How Did Reynolds American’s ‘All Other’ Segment Perform in 4Q15?
RAI’s increase in revenue was driven by the continued strong performance of Vuse Digital Vapor Cigarette in 4Q15.
Will Philip Morris Beat Wall Street Revenue Estimates in 4Q15?
For 4Q15, the Wall Street consensus revenue estimate for Phillip Morris is $6.5 billion, an 8.8% decrease from the revenue in the corresponding quarter last year.
Reynolds American’s Santa Fe Business Sees Strong 3Q15 Results
Reynolds American’s Santa Fe subsidiary’s 3Q15 revenue rose 21.8% to $0.21 billion in 3Q15 compared to $0.18 billion in 3Q14.
Altria’s Valuation Is Higher than Peers ahead of 2Q16 Results
Altria Group (MO) and Philip Morris International (PM) are trading at higher valuations relative to the S&P 500 Index (SPY) (IVV) (VOO) and the Dow Jones Industrial Average (DIA).
Philip Morris’s 2015 Stock Price in Perspective
Philip Morris’s stock over the last twelve months showed a ~9.2% decrease in August 2015. But its higher returns on invested capital indicate efficiency.
How Estée Lauder’s Valuation Justifies Its Defensive Nature
Estée Lauder (EL) is trading at a higher valuation relative to the S&P 500 Index (IVV) (SPY) (VOO) and the Dow Jones Industrial Average (DIA).
Price Increases and Colgate’s 1Q16 Operating Margins
Colgate said it will continue to raise prices in moderation in emerging markets to counter unfavorable foreign exchange and protect its margins.
P&G’s Higher Valuation Makes Sense Given Its Defensive Nature
Procter & Gamble is trading at a PE (price-to-earnings) multiple of 20.6x forward earnings.
Clorox’s Household Segment Saw a Rise in Operating Income in Fiscal 2Q16
Clorox’s Household segment delivered flat volume growth and 1% sales growth in fiscal 2Q16, so the company’s sales outpaced volume during the quarter.
Estée Lauder Sees Positive Outlook in China
International brands such as Estée Lauder (EL), L’Oréal (LRLCY), Procter & Gamble (PG), Shiseido (SSDOY), and Nivea (BDRFF) dominate the cosmetics market in China.
What Drove Coty’s Fiscal 3Q16 Revenue Rise?
In fiscal 3Q16, Coty missed Wall Street analysts’ consensus expectation for revenue after beating the expectation in the previous quarter.
How Does Coty’s Valuation Compare to Its Peers’?
Coty is trading at a higher valuation relative to the S&P 500 Index and the Dow Jones Industrial Average. Coty is trading at a forward PE multiple of 30.3x.
What Could Philip Morris’s 1Q16 Results Do to Its High Valuation?
As of April 6, Philip Morris and Altria were trading at higher valuations relative to the S&P 500 Index and the Dow Jones Industrial Average.
Philip Morris Let Down Investors with 1Q16 Earnings
Philip Morris International (PM) released its 1Q16 earnings on April 19, 2016. The company’s adjusted diluted EPS fell 15.5% to $0.98 compared to $1.15 in 1Q15.
Procter & Gamble: Global Giant in Household, Personal Products
The Procter & Gamble Company, or P&G, is the largest household and personal products company in the world. It was established in 1837 by William Procter and James Gamble.
Estée Lauder’s Marketing Strategies to Reach New Consumers
Estée Lauder aims to partner with key brick-and-mortar retailers to strengthen their prestige beauty shopping e-commerce websites to better meet consumer online shopping preferences.
Reynolds American Collaborates with British American Tobacco
On September 22, 2015, Reynolds American’s (RAI) indirect subsidiary, R.J. Reynolds Tobacco Company, signed a technology-sharing term sheet with British American Tobacco (BTI).
Estée Lauder’s Makeup Segment Reports Highest 4Q15 Revenue
Net revenue in 4Q15 for The Estée Lauder Companies’ (EL) makeup segment came in at $1.02 billion. It was the highest among all product categories.
Can Progressive Growth Help Colgate’s 1Q16 Valuation Multiple?
Colgate-Palmolive (CL) and Clorox (CLX) are trading at a higher valuation relative to the S&P 500 Index (IVV) (SPY) (VOO) and the Dow Jones Industrial Average (DIA).
Why Estée Lauder’s Margins and Profitability Are Rising
Despite currency headwinds, Estée Lauder’s (EL) worldwide gross profit margin increased to 80.3% in fiscal 2014 from 80.1% in fiscal 2013.
Can Favorable Pricing and iQOS Help Philip Morris’s 2Q16 Revenue?
Philip Morris (PM) is set to release its 2Q16 earnings results before the Market opens on July 19, 2016. PM’s earnings and revenue missed the consensus Wall Street analyst expectations in 1Q16.
How Is Procter & Gamble Trying to Improve Local Profit Margin?
Procter & Gamble (PG) reported a slight improvement in its core gross margin in 2Q16. Its reported gross profit margin increased 170 basis points that quarter.
Analyzing Coty’s Valuation Multiple after Fiscal 2016 Results
Coty (COTY) and L’Oréal (LRLCY) are trading at higher valuation multiples relative to the S&P 500 Index (IVV)(SPY)(VOO) and the Dow Jones Industrial Average (DIA).
Will Colgate’s Geographic Segments See Improvement in 1Q16?
Colgate-Palmolive (CL) is geographically diverse and derives 77% of its total revenue from outside the United States.
Why Coty’s Capital Expenditure Could Rise
Coty Inc.’s capital expenditure decreased 15.2% to $0.17 billion in fiscal 2015, compared to $0.20 billion in fiscal 2014.
Estée Lauder’s Growth Initiative: Leading Beauty Forward
With increasing competition from L’Oréal, Shiseido, and Coty, Estée Lauder continues to expand its position in Western Europe and emerging markets.
Estée Lauder’s Strategies to Improve Supply Chain Performance
To improve its supply chain efficiency, Estée Lauder aims to utilize a network of third-party manufacturers on a global basis, including in the Asia Pacific region.
Growth Initiatives and Outlook for Tobacco Companies in 4Q15
Philip Morris has been capitalizing on the growth potential of iQOS and plans to commercialize its expansion in additional cities in Italy and Japan by 4Q15.
Business Overview of Estée Lauder
Estée Lauder’s sales growth was ranked third-highest globally among leading cosmetic companies between the years 2012 to 2015, with net revenue of $11 billion in fiscal year 2014.
Clorox’s Fiscal 2Q16 Gross Margin: Highest in More than Five Years
Clorox reported a slight improvement in gross margin in fiscal 2Q16, and its operating margin increased to 18.5%, compared to 16.4% in fiscal 2Q15.
Beauty Companies’ Calendar 4Q15 Outlook and Growth Initiatives
During the calendar 2Q15 earnings results, Estée Lauder announced that it is continuing to target 1% of sales growth from acquisitions and is open to further acquisition opportunities.
Estée Lauder’s 4Q15 Geographic Results
The Estée Lauder Companies’ (EL) Americas revenue for 4Q14 came in at $1.1 billion. The revenue decreased 1% in reported terms but increased 12% in constant currency terms.
Will the Old Spice Lawsuit Hurt P&G’s Margin in Fiscal 3Q16?
With the lawsuit filed against P&G’s Old Spice, margins could contract in the coming quarter as revenue would be affected.
No Sign of Improvement in Philip Morris’s 1Q16 Operational Margin
Gross margin and free cash flow Philip Morris’s (PM) gross margin decreased 0.7 points to 65.5% in 1Q16, compared to 66.3% in 1Q15. Despite the adverse currency impact, Philip Morris is focused on generating strong free cash flow in line with last year’s level. The company’s free cash flow (or FCF) increased by more than […]
Procter & Gamble: Can Focus on 10 Product Categories Help 3Q16?
Procter & Gamble (PG) is set to release its fiscal 3Q16 earnings before the Markets open on April 26, 2016. In fiscal 2Q16, P&G missed revenue estimates for the fifth consecutive quarter.
How Is Clorox Improving Product Distribution?
For distribution in the United States, Clorox (CLX) sells or markets its products primarily through mass retail outlets, e-commerce channels, wholesale distributors, and medical supply distributors.
Mega Brands Set to Dominate in P&G’s New Product Portfolio
P&G plans to focus on superior brands in the 10 product categories in its portfolio. It expects one-third of them to surpass $1 billion in annual sales.
Estée Lauder’s Efforts to Expand Its Geographical Presence
Estée Lauder aims to expand its geographical market share in China, the Middle East, Eastern Europe, Brazil, and South Africa by focusing on consumers who purchase in travel retail channels.
What Investors Expect from Coty’s Fiscal 3Q16 Earnings
Coty’s fiscal 3Q16 earnings will be announced on May 3, 2016. Analysts’ consensus estimate for adjusted diluted EPS in fiscal 3Q16 is $0.12 per share.
Altria’s Wine Segment Delivered Robust 1Q16 Results
Altria Group’s (MO) wine segment’s 1Q16 net revenue rose 8.2% to $0.15 billion compared to $0.13 billion in 1Q15.
The Future Growth of Philip Morris International
Philip Morris’s future growth depends on investments in new capabilities, brands, distribution channels, technologies, and emerging and mature geographic markets.
Clorox’s Sales Growth Justifies Its Valuation Multiple
Clorox (CLX) raised its sales outlook to 1%–2% growth. However, on a currency-neutral basis, Clorox expects sales growth of 4%–5% for fiscal 2016.
Will Beauty Companies’ 2Q16 Earnings Beat Estimates?
Like revenue, beauty companies’ calendar 1Q16 earnings gave out mixed signals to investors.
Venezuela’s Discontinuation: What Impact on Colgate’s Earnings?
During 4Q15, Colgate announced it will no longer include the results of its Venezuelan operations in its consolidated financial statements. This will impact diluted EPS in 2016.
Estée Lauder’s History of Paying Dividends
Estée Lauder has paid dividends ever since it went public in November 1995. EL’s cash dividends per common share fell 27.8% to $0.78 in fiscal 2014.
Weak Currencies, but Consumer Packaged Goods Margins Improved
The 1Q16 margins of consumer packaged goods (or CPG) companies sent strong signals. These companies have been investing heavily in innovative products and other growth initiatives.
Procter & Gamble’s Margins Saw an Improvement in 1Q16
During its 1Q16 earnings call, Procter & Gamble reported a slight improvement in its margins.
How Coty’s Brazilian Acquisition Impacted Its Operating Margin
Coty (COTY) reported a fall in its gross margin in fiscal 3Q16. Its reported gross margin came in at 61.2% in fiscal 3Q16 compared to 62.3% in fiscal 3Q15.
An Inside-Out Breakdskinown of Fragrance Giant Coty
Global cosmetics giant Coty’s consolidated revenue came in at ~$4.4 billion in fiscal 2015. Coty’s top ten power brands generated 72% of its net revenue in that period.
Procter & Gamble and Its Profitable Divestitures
P&G reported $0.15 billion in gains from divestitures in fiscal 2014 and $0.63 billion in 2013. The sale of Wella and Clairol could be the biggest divestments yet.
How FX Impacted Procter & Gamble’s Grooming Segment by 7% in Fiscal 3Q16
Net revenues from P&G’s Grooming segment in fiscal 3Q16 came in at $1.6 billion. But the segment’s net sales were 9.9% lower than in fiscal 3Q15.
How Did Beauty Companies’ Revenues Shape Up in 4Q15?
Beauty companies’ revenues for 4Q15 conveyed mixed signals to investors. Although Procter & Gamble and Avon started the earnings season on a disappointing note with lower sales, Estée Lauder and Coty beat consensus Wall Street estimates.
What Benefited Coty’s 9-Month Fiscal 2016 Earnings?
Coty released its fiscal 3Q16 earnings on May 3, 2016. The quarter ended on March 31, 2016. The company’s adjusted diluted EPS fell 50.0% to $0.09.
Analyzing Estée Lauder’s Growth and Market Valuations
Estée Lauder is trading at higher valuations relative to the S&P 500 Index, with a PE multiple of 29.0x forward earnings.
Colgate’s Valuation Multiple Is Higher Compared to Most Peers
Colgate-Palmolive (CL) and Clorox (CLX) are trading at higher valuations relative to the S&P 500 Index (IVV) (SPY) (VOO) and the Dow Jones Industrial Average (DIA).
Can Procter & Gamble Expand Its Margins in 1Q16?
Procter & Gamble’s operating margin fell mainly due to the Venezuela charge of 11.4%. Excluding all of the charges, the core operating margin rose by 0.9% in 4Q15.
Why P&G Transferred Its Duracell Business to Berkshire Hathaway
On February 29, 2016, Procter & Gamble (PG) announced the completion of the transfer of its Duracell business to Berkshire Hathaway (BRK-B).
Markets React to P&G’s Dollar Shave Club Lawsuit
On December 17, 2015, Procter & Gamble’s, or P&G’s (PG), stock price fell 0.9% to $80.29 after it filed a lawsuit against Dollar Shave Club for unauthorized use of patented technology.
Clorox’s Fiscal 3Q16 Revenue and Organic Sales Benefit from Volume
In fiscal 3Q16, Clorox beat the consensus Wall Street analyst estimates on revenue after missing these estimates during the previous quarter. The consensus had projected revenue of $1.41 billion.
Altria’s 4Q15 Wine Segment Revenue Increased
Altria’s (MO) fiscal 4Q15 net revenue for its wine segment increased 7.4%. Full-year 2015 revenue increased 7.6% to $0.2 billion.
Coty Trades at Higher Valuations Relative to the S&P 500 Index
Coty (COTY) and L’Oréal (LRLCY) are trading at higher valuations relative to the S&P 500 Index (IVV) (SPY) (VOO) and the Dow Jones Industrial Average (DIA).
Valuation Growth of Philip Morris Before 2Q16 Results
Philip Morris is planning to implement price increases in retail (XRT) markets that include Russia, Argentina, Germany, and Indonesia.
Will Philip Morris See an Improvement in Margins in 4Q15?
Phillip Morris’s adjusted operating income margin increased 1.4% in 3Q15 and 1.6% for the nine months ending September 30, excluding negative currency impact changes and excise taxes.
Will the Presidential Election Shrink Financial Institutions?
The 2016 US presidential election is scheduled for November 8, 2016. This election will mark the 58th quadrennial US presidential election.
Can Procter & Gamble’s Stock Price Gain Momentum?
Procter & Gamble’s stock has consistently fallen since the beginning of 2015. However, the stock was able to sustain some gains until September.
Smokeless Tobacco Products Boost Altria’s 4Q15 Results
Altria’s (MO) smokeless tobacco product segment’s net revenue increased 4.7% in fiscal 4Q15 and 3.9% for the full year to $0.5 billion.
Why Philip Morris’s 1Q16 Market Share Declined in Asia
Net revenue for Philip Morris’s (PM) Asia region decreased 8.7% to ~$2 billion in 1Q16. This compares to $2.2 billion in 1Q15.
Philip Morris’s 3Q15 Market Valuation and the S&P 500 Index
As of October 16, Philip Morris is trading at a higher valuation than the S&P 500 and the Dow Jones Industrial, with a 18.6x forward earnings PE multiple.
What Can We Expect from Procter & Gamble’s Earnings?
Excluding the impact of negative foreign currencies, P&G’s core earnings increased in fiscal 2Q16. Diluted net EPS also increased, primarily driven by non-cash impairment charges.
How Colgate Is Maintaining Margins in the Face of Headwinds
Colgate’s worldwide gross profit margin fell to 58.5% in 2014 from 58.6% in 2013.
Could Colgate Stock Rise after 1Q16 Results?
Colgate stock has been volatile since the beginning of 2015. It fell almost 12.6% to $60.37 on August 25, 2015, from $69.08 on August 5, 2015.
Altria Missed Revenue Estimates in Fiscal 4Q15
Altria’s (MO) net revenue of excise taxes increased 2.5% to $4.7 billion in fiscal 4Q15. But it missed revenue estimates after beating them for five consecutive quarters.
Lowering Corporate Tax May Have Negative Effects in the Long Run
Both Donald Trump and Hillary Clinton have expressed a desire to reshape the tax code to make substantive changes in fiscal policy.
Analyzing Dodd–Frank’s Constraints in the US Financial Market
While Donald Trump wants to get rid of the Dodd–Frank Act, especially the Consumer Financial Protection Bureau, Hillary Clinton wants to retain it.
Target’s Stock Price Fell 6.4% after Fiscal 2Q16 Earnings
Target’s (TGT) stock price fell 6.4% to $70.63 on August 17, 2016, after the company released its fiscal 2Q16 earnings.
Target’s Fiscal 2Q16 Cost Savings Efforts Helped Margin Growth
Target’s (TGT) gross margin improved by ~50 basis points to 31.3% in fiscal 2Q16 from 30.9% in fiscal 2Q15.
Target’s Signature Categories Beat Overall Business in Fiscal 2Q
Target’s (TGT) Signature Categories include Style, Baby, Kids, and Wellness. Target’s Signature Categories outpaced the total business by 3 percentage points in fiscal 2Q16.
Lower Traffic Resulted in Target’s Fiscal 2Q16 Total Sales Dip
Target’s (TGT) revenue declined 7.2% to $16.2 billion in fiscal 2Q16 from $17.4 billion in fiscal 2Q15.
Coty’s Reported and Adjusted Operational Margins: What Happened?
Coty (COTY) reported a decline in its gross margin in 4Q16 as well as fiscal 2016. The reported gross margin came in at 56.7% for 4Q16.
Why Coty’s 4Q16 Fragrances Revenue Improved: Miu Miu
Fragrances net revenue rose 1.9% in fiscal 4Q16 and fell 7.6% to $2.0 billion for fiscal 2016 in reported terms.
Why Coty’s Revenue Rose 5.5% in 4Q16: Acquisitions
After missing estimates last quarter, Coty came in ahead of Wall Street analysts’ estimates for revenue in fiscal 4Q16.
Why Tax Benefits Helped Coty’s Full-Year Earnings Growth
Coty (COTY) released its fiscal 4Q16 and full-year earnings on August 16, 2016. The quarter ended on June 30. Here’s what you need to know.
Will Higher Pricing Increase Altria’s 2Q16 Operating Margin?
Altria’s (MO) 1Q16 gross margin rose to 58.6% compared to 57.9% in 1Q15.
Beauty Companies Saw Mixed Inventory Levels in 1Q16
Estée Lauder (EL) ended calendar 1Q16 with a 3.5% rise in inventory.
Beauty Companies Are Pursuing Digital Initiatives
Beauty companies continue to expand into a multi-pronged digital strategy that encompasses e-commerce, m-commerce, as well as digital and social media.
Will Beauty Companies’ Acquisition Activities Help in 2Q16?
The beauty and personal care sectors have seen a high level of merger and acquisition (or M&A) activity in the last two years.
Can Philip Morris’s Stock Maintain Its Peak after 2Q16 Results?
Philip Morris’s stock price fell by 1.3% to $99.28 after it released its 1Q16 earnings.
Can ~6% Pricing Variance Help Philip Morris’s Margin Rise in 2Q16?
As a result of decreased operating income, Philip Morris’s (PM) operating margin fell by 2.8% to 41.9% in 1Q16.
Will Brexit Vote Impact Philip Morris’s European Union 2Q16 Results?
After the Brexit referendum, Philip Morris’s risk exposure increased compared to other tobacco companies.
Can Philip Morris Beat Its 2Q16 Earnings Expectations?
The Wall Street consensus analyst expectation for Philip Morris’s adjusted diluted EPS in 2Q16 is $1.19 per share.
Exploring Tobacco Companies’ Valuation Drivers
Tobacco companies are trading at higher valuations compared to the S&P 500 Index (SPY) (IVV) (VOO) and the Dow Jones Industrial Average (DIA).
Analyzing Tobacco Companies’ 1Q16 Inventory Levels
1Q16 inventory levels were lower for tobacco companies due to falling cigarette shipment volumes.
Why Tobacco Companies Are Shifting to Innovative Products
Due to increased health consciousness, most of the tobacco companies’ 1Q16 cigarette shipment volumes have seen falls.