Penny Morgan
Disclosure: I am in full compliance with all ethics and other policies for Market Realist research analysts. I am not invested in securities that I cover on Market Realist.
More From Penny Morgan
Macroeconomic AnalysisLowering 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.
Macroeconomic AnalysisAnalyzing 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.
Macroeconomic AnalysisWill 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.
ConsumerTarget’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.
ConsumerTarget’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.
ConsumerTarget’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.
ConsumerLower 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.
ConsumerAnalyzing 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).
ConsumerCoty’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.
ConsumerWhy 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.
ConsumerWhy 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.
ConsumerWhy 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.
ConsumerAltria’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).
ConsumerWill Higher Pricing Increase Altria’s 2Q16 Operating Margin?
Altria’s (MO) 1Q16 gross margin rose to 58.6% compared to 57.9% in 1Q15.
ConsumerBeauty Companies Saw Mixed Inventory Levels in 1Q16
Estée Lauder (EL) ended calendar 1Q16 with a 3.5% rise in inventory.
ConsumerBeauty 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.
ConsumerWill 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.
ConsumerWill Beauty Companies’ 2Q16 Earnings Beat Estimates?
Like revenue, beauty companies’ calendar 1Q16 earnings gave out mixed signals to investors.
ConsumerValuation 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.
ConsumerCan 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.
ConsumerCan ~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.
ConsumerWill 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.
ConsumerCan 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.
ConsumerCan 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.
ConsumerExploring 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).
ConsumerAnalyzing Tobacco Companies’ 1Q16 Inventory Levels
1Q16 inventory levels were lower for tobacco companies due to falling cigarette shipment volumes.
ConsumerWhy Tobacco Companies Are Shifting to Innovative Products
Due to increased health consciousness, most of the tobacco companies’ 1Q16 cigarette shipment volumes have seen falls.
ConsumerCould Acquisitions Mean Opportunities for the Tobacco Industry?
The US tobacco industry is highly concentrated Its three leading players accounted for a combined retail (XRT) volume share of 86% in 2014.
Macroeconomic AnalysisValuation Multiples Higher for Consumer Packaged Goods in 1Q16
Consumer packaged goods (or CPG) companies are trading at higher valuations compared to the S&P 500 Index (IVV) (SPY) (VOO) and the Dow Jones Industrial Average (DIA).
Macroeconomic AnalysisStock Performances of Consumer Packaged Goods Companies in 1Q16
From January 2, 2015, to June 16, 2016, the stock prices of all consumer packaged goods (or CPG) companies have seen volatile movements.
Macroeconomic AnalysisWeak 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.
Macroeconomic AnalysisWill Innovation Drive 2Q16 Revenues for Consumer Packaged Goods?
In its fiscal 3Q16 earnings release, Procter & Gamble (PG) announced continued investment in innovation, new user trials, and improved consumer value.
Macroeconomic AnalysisMixed 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.
Company & Industry OverviewsHow 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.
Company & Industry OverviewsCoty Faces Fragrance Market Trend Deterioration in Fiscal 3Q16
Coty (COTY) operates under three reportable segments: Fragrance, Color Cosmetics, and Skin & Body Care.
Company & Industry OverviewsWhat 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.
Company & Industry OverviewsWhat 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.
Company & Industry OverviewsWhy Coty’s Stock Price Isn’t Showing Much Momentum
On June 13, 2016, Coty’s (COTY) stock price was trading at $26.36. The stock price has risen 5.7% year-to-date (or YTD) and 29.0% since January 2015.
Company & Industry OverviewsRobust Gains in Clorox’s Lifestyle Segment Driven by Burt’s Bees
Clorox is focusing on Brita’s water filtration product via a partnership between Brita and Stephen Curry, the Golden State Warriors’ point guard who is the NBA’s first unanimous MVP.
Company & Industry OverviewsClorox’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.
Company & Industry OverviewsCost Savings and Price Increase Helped Clorox’s Margin Growth
Clorox’s (CLX) fiscal year-to-date cash flow generation came in at $0.3 billion, compared to $0.4 billion in the same period in 2015.
Company & Industry OverviewsClorox’s International Segment Dips Due to Weakening Currencies
Apart from the other segments’ brands, Clorox’s International segment’s brands include PinoLuz, Limpido, Bon Bril, Agua Jane, and Chux.
Company & Industry OverviewsClorox’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.
Company & Industry OverviewsClorox’s Stock Touched a 2-Year Peak in May 2016
On May 31, 2016, Clorox (CLX) was trading at $128.54, a fall of 0.7% since its fiscal 3Q16 earnings were released. The company’s stock was trading at its two-year peak of $132.88 on May 12, 2016.
Company & Industry OverviewsReynolds American’s Vuse E-Vapor: 1Q16 Performance
Operating income for the All Other segment decreased by 44.3% to $30 million in 1Q16. Despite a weak top line, Vuse Digital Vapor Cigarette continued to deliver robust results in 1Q16.
Company & Industry OverviewsStrong Segment Growth Helps RAI’s 1Q16 Operating Margin
Operating income Reynolds American’s (RAI) reported operating income increased by 786.3% to ~$6.1 billion in 1Q16 versus $0.7 billion in 1Q15. This includes charges for implementation costs, asset impairment, and exit costs. It also includes transaction-related and financing costs for the Lorillard acquisition and related divestitures to Imperial Tobacco Group (ITYBY), as well as other […]
Company & Industry OverviewsReynolds American’s American Snuff: Higher Pricing for 1Q16
Reynolds American’s (RAI) 1Q16 revenue for the American Snuff Co. increased by 7.5% to $0.22 billion compared to $0.20 billion in 1Q15. The increase was primarily due to higher pricing.
Company & Industry OverviewsReynolds American in 1Q16: Natural American Spirit Helped
Natural American Spirit’s retail market share increased by 0.3% to 2% in 1Q16 in the US, on a volume growth of 22.1%. Natural American Spirit’s volume grew by double digits, increasing by 22% in 1Q16.
Company & Industry OverviewsReynolds American: Reported Earnings Up by 591.7% in 1Q16
Reynolds American (RAI) released its 1Q16 earnings on April 26, 2016. The company’s adjusted diluted earnings per share rose by 16.3% to $0.50 per share in 1Q16.
Company & Industry OverviewsReynolds American’s Stock Price Has Risen by 9.8% Year-to-Date
During 1Q16, Reynolds American’s board approved an increase of 16.7% in its quarterly cash dividend to $0.42 per share, or an annualized $1.68.
Company & Industry OverviewsRAI’s Innovation Transformation, No Ban on Flavors from FDA
Reynolds American’s (RAI) key to transformation is robust results and an active innovation pipeline. The company formed RAI Innovation Company to seek alternatives to traditional cigarettes.
Earnings ReportRAI’s Awareness Campaign for Its Natural American Spirit Brand
Reynolds American’s (RAI) Santa Fe Natural Tobacco Company’s Natural American Spirit brand aligns with consumers seeking authentic products. The company notes that Natural American Spirit brand is made of natural, additive-free tobacco.
Company & Industry OverviewsReynolds American’s Camel Brand Ranked Number 3 in the US
Reynolds American (RAI) redesigned Camel’s website in January 2016. The website features a bold, simple design optimized for mobile devices.
Company & Industry OverviewsReynolds American’s Drive Brands Comprise 93% of Its Portfolio
Reynolds American’s (RAI) acquisition transaction with Lorillard and its related divestitures to Imperial Tobacco (ITYBY) occurred in order to shift cigarette volumes into RAI’s drive brands.
Company & Industry OverviewsReynolds American: Demography of Adult Tobacco Consumers in the US
Reynolds American (RAI) expects cigarette volumes to be down, closer to the -2% range for the year. RAI noted that consumers are moving into premium brands at the expense of value or discount brands in the US.
Company & Industry OverviewsEstée 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.
Company & Industry OverviewsHow 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).
Company & Industry OverviewsEstée Lauder’s Fragrance Segment’s Brands Saw Mixed Results
Estée Lauder’s (EL) fragrance segment’s reported revenue rose 4.6% in reported terms and 7% on a constant-currency basis to $0.3 billion in fiscal 3Q16.
Company & Industry OverviewsEstée Lauder’s Makeup Segment Boosted Its Operating Income
Estée Lauder’s makeup segment’s net revenue rose 7.3% in reported terms and 11% in constant currency terms to $1.2 billion in fiscal 3Q16.
Company & Industry OverviewsHow EL’s Fiscal 3Q16 Revenue Compared to Analysts’ Expectations
After beating revenue estimates last quarter, Estée Lauder came in line with consensus Wall Street Estimates on revenue in fiscal 3Q16.
Company & Industry OverviewsWhy Estée Lauder’s Stock Has Risen 6.2% Year-to-Date
On May 16, 2016, Estée Lauder’s stock price was trading at $92.79. Its stock price has risen 6.4% year-to-date (or YTD) and 22.8% since January 2015.
Company & Industry OverviewsHow Colgate Improved Market Share in Its Asia Segment in 1Q16
Colgate’s (CL) Asia segment’s net revenue decreased 2.3% to $0.6 billion in 1Q16.
Company & Industry OverviewsColgate’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).
Company & Industry OverviewsHow Colgate Increased Operating Income in Africa/Eurasia Region
Colgate’s (CL) Africa/Eurasia segment’s net revenue decreased 9.1% to $0.2 billion in 1Q16.
Earnings ReportAltria’s 1Q16 Gross Margin Rose—What about Its Operating Margin?
Altria Group’s (MO) 1Q16 gross margin rose to 58.6% compared to 57.9% in 1Q15. The rise resulted from higher pricing.
Earnings ReportHow Did Altria’s Smokeless Products Segment Perform in 1Q16?
Altria Group’s (MO) smokeless tobacco product segment’s net revenue rose 11.4% in 1Q16 to $0.5 billion versus $0.4 billion in 1Q15.
Earnings ReportAltria’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.
Earnings ReportWhy Altria’s 1Q16 Smokeable Segment’s Shipment Volume Rose
Altria Group’s (MO) smokeable product segment’s net revenue rose 3.8% to $5.4 billion in 1Q16 compared to $5.2 billion in 1Q15.
Earnings ReportAltria Missed Estimates Last Quarter—How Was Its 1Q16?
After missing revenue expectations last quarter, Altria came in ahead of analysts’ estimates in 1Q16. Analysts had projected revenue of $4.4 billion.
Earnings ReportBy How Much Did Altria’s 1Q16 Earnings Outperform Estimates?
Altria Group (MO) released its 1Q16 earnings on April 28, 2016. Its adjusted diluted EPS (earnings per share) rose 14.3% to $0.72 in 1Q16.
Earnings ReportProductivity Savings Improved Procter & Gamble’s Operating Margin in Fiscal 3Q16
P&G reported a gross profit margin increase of 250 basis points to 49.8% in fiscal 3Q16, as compared to fiscal 3Q15.
Earnings ReportWhat Happened to Procter & Gamble’s Baby Care Segment in Fiscal 3Q16?
Net revenue from P&G’s Baby, Feminine, and Family Care segment came in at $4.5 billion in fiscal 3Q16. This was 7.9% lower than in fiscal 3Q15.
Earnings ReportHow 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.
Earnings ReportInside Procter & Gamble’s Beauty Segment Organic Sales Growth in Fiscal 3Q16
P&G’s Beauty, Hair, and Personal Care segment’s organic sales increased by 1% in fiscal 3Q16 due to the positive impact of pricing.
Earnings ReportHow 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.
Earnings ReportWill Coty’s Stock Price Rise after Its Fiscal 3Q16 Results?
Coty was trading at $29.80 on April 25, 2016. Its stock price has risen 45.9% since January 2, 2015, and 19.3% year-to-date.
Earnings ReportWhat 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.
Earnings ReportNo 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 […]
Earnings ReportWhy 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.
Earnings ReportPhilip Morris’s 1Q16 Shipment Volume Declined in Russia
PM’s increase in revenue on a constant currency basis was primarily due to favorable pricing of $0.1 billion, driven by Russia and Turkey, and partially offset by Ukraine.
Earnings ReportPhilip Morris’s Favorable Pricing in Germany
Philip Morris’s cigarette market share increased by 0.6 points to 38.7%, with gains notably in France, Germany, Poland, and Spain.
Earnings ReportPhilip 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.
Earnings ReportCan 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).
Earnings ReportCould 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.
Earnings ReportPrice 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.
Earnings ReportWill 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.
Earnings ReportVenezuela’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.
Earnings ReportHow 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.
Earnings ReportWill Negative Foreign Exchange Affect Procter & Gamble in 3Q16?
Since December 2015, FX (foreign exchange) headwinds have increased $0.3 billion after tax. That includes devaluations in Argentina, Russia, and Mexico.
Earnings ReportWhat 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.
Earnings ReportProcter & 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.
Earnings ReportWhat 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.
Fund ManagersColgate’s Notion of Consumer Engagement, Brand Penetration
Colgate is adding the greatest number of new shoppers among fast-moving consumer goods companies. Most are in India.
Fund ManagersThe Lowdown on Colgate’s Online Initiatives in Personal and Home Care
In Brazil, 70% of women are in the range of 18–49 years old, and Colgate has a lower CPM (cost per thousand) than TV for this group—60% of the cost.
Fund ManagersThe Story behind Colgate-Palmolive’s Commercial Strategies
Colgate-Palmolive’s global market share is ~45%. It is the leading toothpaste compared to Oral-B and Close-up, especially in emerging markets like India.
Fund ManagersInside Colgate’s Initiative to Expand Sanex in Europe
Colgate-Palmolive’s (CL) Hill’s business has been organically growing mid-single digits consistently, due to Hill’s innovation pipeline.
Fund ManagersColgate’s Clarity and Consistency of Strategy at the CAGNY Conference
Colgate continues to put an enormous emphasis on gross margin. The company is also working hard to put down overhead costs as a percentage of sales.
Fund ManagersColgate Announces Eventual Successors, Stock Reacts
Ian Cook has run Colgate-Palmolive for nine years and is expected to step down in five years. P. Justin Skala and Noel R. Wallace will assume CFO roles.
Macroeconomic AnalysisWill 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.
Macroeconomic AnalysisP&G’s Stock Price Reaction to the Old Spice Lawsuit
After a lawsuit was filed against Procter & Gamble (PG), or P&G, for its Old Spice deodorant, P&G’s stock price opened with a fall of 0.4% to $82.46 on March 24, 2016.