More From Penny Morgan
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.
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.
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.
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.
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.
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.
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.
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.
Will Beauty Companies’ 2Q16 Earnings Beat Estimates?
Like revenue, beauty companies’ calendar 1Q16 earnings gave out mixed signals to investors.
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.
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 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.
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).
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.
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.
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.
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 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 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 ~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.
Could 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.
Valuation 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).
Why 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.
Strong 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 […]
Estée 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.
RAI’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.
How 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.
Reynolds 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.
RAI’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.
How 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.
Why 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.
Why 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.
Productivity 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.
What 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.
How 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.
Altria 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.
By 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.
Will 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.
Philip 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.
Will 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.
The 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.
Colgate’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.
The 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.
Estée Lauder: 2Q16 Revenue Soars, but Operating Margin Falls
Estée Lauder reported a slight decrease in its 2Q16 gross margin, which remained virtually flat from the prior year at 81.2%.
P&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.
Favorable Valuation Multiples for Beauty Companies in 4Q15
Beauty companies are trading at higher valuations relative to the S&P 500 Index (SPY) and the Dow Jones Industrial Average (DIA).
Marlboro: The Star in Philip Morris’s Portfolio of Brands
Generally recognized as the world’s best-selling international cigarette, Marlboro accounted for 33.7% of the company’s total shipment volume in 2015.
Behind CPG Companies’ High Valuation Multiples in 4Q15
As of March 17, 2016, CPG companies were trading at higher valuations relative to the S&P 500 Index (SPY) and the Dow Jones Industrial Average (DIA).
How CPG Companies’ Inventory Levels Were Looking in 4Q15
Inventory levels in 4Q15 increased for most CPG companies YoY. The inventory turnover ratio for P&G in 4Q15 increased by 6.1% to 6.1x versus 5.7x in 4Q14.
Estée Lauder’s Aveda Haircare Brand’s Healthy Growth in 2Q16
Estée Lauder’s (EL) haircare segment’s revenue increased 8.7% in reported terms and 14% on a constant-currency basis to $0.15 billion in fiscal 2Q16.
Can Innovative Products Help Tobacco Companies?
The mounting increase in health consciousness poses a growing threat to the tobacco industry. Companies are investing heavily in innovative products.
P&G’s Stock Rose 1.6% after Hipoglós Sale to Johnson & Johnson
Procter & Gamble’s stock price rose 1.6% to $82.55 after it announced the sale of its Hipoglós diaper rash cream to Johnson & Johnson (JNJ) on March 2, 2016.
Why Procter & Gamble Is Selling Some of Its Brands
Procter & Gamble is on a mission to trim brands that are holding back its overall financial performance.
Why Does Colgate’s Revenue Keep Falling?
Colgate’s (CL) revenue declined 7.5% to $3.9 billion in 4Q15. The reported revenue was negatively impacted by foreign exchange and divestitures.
Coty Could See Greater Revenue and Hence Higher Margins
Let’s discuss Coty’s margins. It reported a slight improvement in the adjusted gross margin in fiscal 1Q16. This adjusted gross margin rose 70 basis points.
Clorox’s Stock Price Has Risen 20.4% since January 2015
Clorox was trading at $125.04 on January 25, 2016. Its stock price has risen 20.4% since January 2, 2015.
Consumer Packaged Goods Companies Saw Improved Margins
CPG companies’ 3Q15 margins sent strong signals. They have been investing in innovative products and other growth initiatives. This is impacting their margins.
CPG Companies Traded at Pricier Valuations in 2015
CPG (consumer packaged goods) companies are trading at higher valuations relative to the S&P 500 Index (IVV) (SPY) (VOO) and Dow Jones Industrial Average (DIA).
Gillette Seeks to Grow Online Market Share with Sales Initiatives
Gillette, which controls more than 60% of the US retail (XRT) market, has 20% of the online shaving market.
P&G’s Gillette Files a Lawsuit against Dollar Shave Club
P&G alleges that Dollar Shave Club is violating Gillette’s intellectual property by selling its razors.
Weighing Clorox’s Strengths and Opportunities
Clorox (CLX) has a strong research and development (or R&D) team and devotes significant resources and attention to product development.
Hurdles in Clorox’s Growth: Weaknesses and Threats
Advertising and promotional events from Unilever and PG’s home cleaners and a rise in the popularity of store brands pose threats to Clorox.
Understanding Clorox’s Lifestyle Product Segment
Clorox’s Lifestyle segment’s revenue increased 1.5% to $1 billion in fiscal 2015 compared to $0.9 billion in fiscal 2014. The increase was primarily due to higher shipments in natural personal care.
Clorox’s Largest Operating Segment: Cleaning
The Cleaning segment contributed 32.3% to the total consolidated sales of Clorox, the highest among all the segments. The increase was primarily due to higher volume growth.
Why Clorox’s Marketing Strategies Are Reaching More Households
Clorox’s (CLX) SG&A expenses increased 5.3% in fiscal 2015 compared to fiscal 2014. The increase was primarily due to increased advertising and marketing programs.
Why It’s Hard to Compete with Clorox
Due to Clorox’s diverse product portfolio and the competitive nature of the consumer products market, it’s difficult for a new company to compete with similar products.oducts.
Procter and Gamble’s Stock Gained Momentum after 1Q16 Results
Procter & Gamble’s stock price rose after it released earnings. The stock price rose 2.9% to $77.03 on October 23, 2015, after results were released.