Penny Morgan

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.

In order to drive growth, Colgate-Palmolive and other companies reinvested savings. They targeted innovation, technology, digital engagement, and emerging markets.

RJR Tobacco’s adjusted operating margin increased 4.1 percentage points to 44.6% in 4Q15.

Procter & Gamble’s (PG) fabric care and home care segment includes some leading products in the global market.

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%.

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.

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.

RAI’s increase in revenue was driven by the continued strong performance of Vuse Digital Vapor Cigarette 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 subsidiary’s 3Q15 revenue rose 21.8% to $0.21 billion in 3Q15 compared to $0.18 billion in 3Q14.

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 stock over the last twelve months showed a ~9.2% decrease in August 2015. But its higher returns on invested capital indicate efficiency.

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).

Colgate said it will continue to raise prices in moderation in emerging markets to counter unfavorable foreign exchange and protect its margins.

Procter & Gamble is trading at a PE (price-to-earnings) multiple of 20.6x forward earnings.

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.

International brands such as Estée Lauder (EL), L’Oréal (LRLCY), Procter & Gamble (PG), Shiseido (SSDOY), and Nivea (BDRFF) dominate the cosmetics market in China.

In fiscal 3Q16, Coty missed Wall Street analysts’ consensus expectation for revenue after beating the expectation in the previous quarter.

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.

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 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.

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 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.

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).

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.

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).

Despite currency headwinds, Estée Lauder’s (EL) worldwide gross profit margin increased to 80.3% in fiscal 2014 from 80.1% in fiscal 2013.

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.

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.

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).

Colgate-Palmolive (CL) is geographically diverse and derives 77% of its total revenue from outside the United States.

Coty Inc.’s capital expenditure decreased 15.2% to $0.17 billion in fiscal 2015, compared to $0.20 billion in fiscal 2014.

With increasing competition from L’Oréal, Shiseido, and Coty, Estée Lauder continues to expand its position in Western Europe and emerging markets.

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.

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.

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 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.

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.

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.

With the lawsuit filed against P&G’s Old Spice, margins could contract in the coming quarter as revenue would be affected.

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 (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.

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.

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 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.

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 Group’s (MO) wine segment’s 1Q16 net revenue rose 8.2% to $0.15 billion compared to $0.13 billion in 1Q15.

Philip Morris’s future growth depends on investments in new capabilities, brands, distribution channels, technologies, and emerging and mature geographic markets.

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.

Like revenue, beauty companies’ calendar 1Q16 earnings gave out mixed signals to investors.

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 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.

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.

During its 1Q16 earnings call, Procter & Gamble reported a slight improvement in its margins.

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.

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.

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.

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.

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.

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.

Estée Lauder is trading at higher valuations relative to the S&P 500 Index, with a PE multiple of 29.0x forward earnings.

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).

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.

On February 29, 2016, Procter & Gamble (PG) announced the completion of the transfer of its Duracell business to Berkshire Hathaway (BRK-B).

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.

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 (MO) fiscal 4Q15 net revenue for its wine segment increased 7.4%. Full-year 2015 revenue increased 7.6% to $0.2 billion.

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).

Philip Morris is planning to implement price increases in retail (XRT) markets that include Russia, Argentina, Germany, and Indonesia.

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.

The 2016 US presidential election is scheduled for November 8, 2016. This election will mark the 58th quadrennial US presidential election.

Procter & Gamble’s stock has consistently fallen since the beginning of 2015. However, the stock was able to sustain some gains until September.

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.

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.

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.

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.

Colgate’s worldwide gross profit margin fell to 58.5% in 2014 from 58.6% in 2013.

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’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.

Both Donald Trump and Hillary Clinton have expressed a desire to reshape the tax code to make substantive changes in fiscal policy.

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 (TGT) stock price fell 6.4% to $70.63 on August 17, 2016, after the company released its fiscal 2Q16 earnings.

Target’s (TGT) gross margin improved by ~50 basis points to 31.3% in fiscal 2Q16 from 30.9% in fiscal 2Q15.

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.

Target’s (TGT) revenue declined 7.2% to $16.2 billion in fiscal 2Q16 from $17.4 billion in fiscal 2Q15.

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.

Fragrances net revenue rose 1.9% in fiscal 4Q16 and fell 7.6% to $2.0 billion for fiscal 2016 in reported terms.

After missing estimates last quarter, Coty came in ahead of Wall Street analysts’ estimates for revenue in fiscal 4Q16.

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.

Altria’s (MO) 1Q16 gross margin rose to 58.6% compared to 57.9% in 1Q15.

Estée Lauder (EL) ended calendar 1Q16 with a 3.5% rise in inventory.

Beauty companies continue to expand into a multi-pronged digital strategy that encompasses e-commerce, m-commerce, as well as digital and social media.

The beauty and personal care sectors have seen a high level of merger and acquisition (or M&A) activity in the last two years.

Philip Morris’s stock price fell by 1.3% to $99.28 after it released its 1Q16 earnings.

As a result of decreased operating income, Philip Morris’s (PM) operating margin fell by 2.8% to 41.9% in 1Q16.

After the Brexit referendum, Philip Morris’s risk exposure increased compared to other tobacco companies.

The Wall Street consensus analyst expectation for Philip Morris’s adjusted diluted EPS in 2Q16 is $1.19 per share.

Tobacco companies are trading at higher valuations compared to the S&P 500 Index (SPY) (IVV) (VOO) and the Dow Jones Industrial Average (DIA).

1Q16 inventory levels were lower for tobacco companies due to falling cigarette shipment volumes.

Due to increased health consciousness, most of the tobacco companies’ 1Q16 cigarette shipment volumes have seen falls.