Latest news with #Dividend
Yahoo
3 days ago
- Business
- Yahoo
Buy Microsoft Stock Now, or Wait for a Pullback?
Key Points Revenue growth accelerated in the company's most recently reported quarter. Microsoft is scheduled to report its fiscal fourth-quarter earnings later this month. The company pays a dividend, which should grow on an annual basis for the foreseeable future. 10 stocks we like better than Microsoft › Ahead of Microsoft's (NASDAQ: MSFT) quarterly earnings release on July 30, many investors are likely looking closely at their shares of the software giant. After all, the stock has seen an incredible run recently. Shares are up 42% from April 21 to July 17. Not only has the stock benefited from a sharp V-shaped recovery following a tariff-related sell-off that impacted much of the market, but it has also risen to a new all-time high. The problem? The valuation is now questionably rich. To the company's credit, it's seeing impressive business momentum. Revenue and profit are both rising at double-digit rates, and the company appears well positioned to benefit from tailwinds in artificial intelligence (AI) -- both in terms of increased demand for its AI-related services and cost efficiencies as AI boosts employee productivity. But the big question is whether the stock has risen too far, too fast. Clearly, the company has great momentum. But has a sky-high valuation already priced in the bull case for this stock? Accelerating growth Microsoft's fiscal third-quarter results from late April (its most recently reported quarter) capture how well the company is doing -- and why investors are bidding shares higher. Revenue rose 13% year over year -- an acceleration from 12% growth in fiscal Q2. Notably, when adjusting for foreign exchange, fiscal third-quarter revenue actually rose 15% year over year. Additionally, operating income grew even faster, rising 16%, or 19% in constant currency. "Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth," said Microsoft CEO Satya Nadella in the company's fiscal third-quarter earnings release. "From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers." Driving the quarter's results was a 21% year-over-year increase in revenue from the company's intelligent cloud segment. Included in this segment is the company's cloud-computing business, Azure. The cloud-powering infrastructure systems and software segment contributed 33% year-over-year revenue growth. But slower-growing segments still did well. For instance, Microsoft's revenue from its productivity and business processes segment rose 10% year over year, helped by growing Microsoft 365 subscriptions. High expectations Such broad-based strength, driven by lucrative software and services, makes a compelling case for the company's long-term growth potential. But with shares now trading at a price-to-earnings multiple of nearly 40, is the valuation simply too high? Given the stock's recent run-up, investors shouldn't get too excited. On the one hand, Microsoft's balanced business clearly deserves a high valuation multiple. After all, the company has a healthy balance sheet, a strong suite of products, and is seeing double-digit top- and bottom-line growth. However, a price-to-earnings ratio of 40 seems to price in plenty of optimism. Altogether, I'd lean more toward calling the stock a hold instead of a buy at the stock's current price. One reason I'm comfortable with this view, despite the stock's high valuation, is that the company takes some risk off the table every quarter by paying investors a quarterly dividend. Microsoft is a great dividend stock. Though its dividend yield is just 0.7%, there's plenty of room for this dividend payment to grow over time. This is evident by the fact that the company is paying out less than 25% of its earnings in dividends. Additionally, if history is any indication of the future, more dividend increases are likely. The company has increased its dividend every year for 23 years straight. Also helping the bull case is Microsoft's share repurchase program. With plenty of excess cash, the company is aggressively buying back its stock. Combining its dividends and repurchases, the company spent $9.7 billion returning capital to shareholders in fiscal Q3, up 15% year over year. Overall, Microsoft shares may not be a great buy at their current price. On the other hand, the company is giving shareholders plenty of reasons to hold onto their shares. But given the stock's premium valuation, shareholders should expect a bumpy ride. Should you invest $1,000 in Microsoft right now? Before you buy stock in Microsoft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Microsoft wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Buy Microsoft Stock Now, or Wait for a Pullback? was originally published by The Motley Fool
Yahoo
5 days ago
- Business
- Yahoo
Banner Corp (BANR) Q2 2025 Earnings Call Highlights: Strong Loan Growth and Core Earnings Boost ...
Net Profit: $45.5 million or $1.31 per diluted share for Q2 2025. Core Earnings: $62 million for Q2 2025, up from $52 million in Q2 2024. Revenue from Core Operations: $163 million for Q2 2025, compared to $150 million in Q2 2024. Return on Average Assets: 1.13% for Q2 2025. Core Deposits: 89% of total deposits. Loan Growth: Loans increased 5% year-over-year; $252 million increase in Q2 2025. Core Deposits Growth: Increased 4% year-over-year. Tangible Common Equity Per Share: Increased 13% year-over-year. Dividend: Core dividend of $0.48 per common share. Loan Originations: Increased 80% compared to the linked quarter. Commercial Real Estate Originations: Up 484% compared to the linked quarter. C&I Originations: Up 96% compared to the linked quarter. Construction and Land Development Originations: Up 43% compared to the linked quarter. Delinquent Loans: 0.41% of total loans, down from 0.63% last quarter. Non-performing Assets: 0.30% of total assets. Net Provision for Credit Losses: $4.8 million for Q2 2025. Net Interest Margin: 3.92% for Q2 2025. Deposit Costs: 1.47% for Q2 2025. Non-interest Income: Decreased by $1.4 million from the prior quarter. Warning! GuruFocus has detected 4 Warning Sign with FRA:871. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Banner Corp (NASDAQ:BANR) reported a net profit of $45.5 million or $1.31 per diluted share for Q2 2025, an increase from $1.15 per share in Q2 2024. Core earnings for Q2 2025 were $62 million, up from $52 million in Q2 2024, showcasing strong operational performance. The company achieved a 5% increase in loans and a 4% increase in core deposits year-over-year, indicating solid organic growth. Banner Corp (NASDAQ:BANR) maintained a strong core deposit base, representing 89% of total deposits, which supports financial stability. The company received multiple accolades, including being named one of America's 100 Best Banks by Forbes and one of the most trustworthy companies by Newsweek. Negative Points Non-performing assets increased to 0.30% of total assets, with non-performing loans totaling $43 million, primarily in residential mortgages. Loan losses for the quarter were $1.7 million, with a net provision for credit losses of $4.8 million, indicating some credit quality concerns. The agricultural sector experienced downgrades due to pressure on commodity prices and input costs, affecting credit metrics. Total deposits decreased by $66 million during the quarter, partly due to seasonal activity and a decrease in broker deposits. The company faced higher non-interest expenses related to back office space consolidation and IT system upgrades, impacting overall cost management. Q & A Highlights Q: Could you elaborate on the impressive increase in loan originations and whether it reflects a change in customer confidence or timing issues? How are the pipelines holding up? A: Jill Rice, Executive Vice President, Chief Credit Officer of Banner Bank, explained that the increase in originations pulled some of the pipeline forward, which is now rebuilding. Historically, Q1 and Q3 are slower than Q2 and Q4. The tariff noise at the end of Q1 slowed things down, but it opened back up in Q2. She expects mid-single-digit growth for the year, with a slight pullback in Q3. Q: With increased competition for deposits, what initiatives does Banner have to drive core deposits and fund additional loan growth? A: Robert Butterfield, Executive Vice President, Chief Financial Officer, noted that while deposit competition is always present, it hasn't intensified recently. Banner focuses on relationship banking, expecting new clients to bring both loans and deposits. Small businesses, which are deposit-rich, are a key focus. If loan growth outpaces deposits, FHLB advances may be used as a temporary funding source. Q: What was the cost of the subordinated debt that was redeemed, and how does it affect funding costs? A: Robert Butterfield stated that the subordinated debt had a cost of about 5.5%. By replacing it with FHLB advances, which are around 4.5%, Banner expects to reduce funding costs by approximately 100 basis points. Q: How does Banner view the current M&A environment, and how does it fit into the company's strategy? A: Mark Grescovich, President and CEO, acknowledged increased M&A activity but emphasized Banner's focus on organic growth. While open to opportunistic M&A, the company is not compelled to pursue it, as their organic business model is performing well. Q: Are there any regional differences in loan growth opportunities, and what markets are showing better activity? A: Jill Rice noted that recent growth was more Pacific Northwest-driven, particularly in the middle market space. Small business originations were broad-based across the footprint. She expects more growth from California, where Banner has added seasoned relationship managers. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Alcoa Corp (AA) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic Moves
Revenue: Decreased 10% sequentially to $3 billion. Net Income: $164 million, down from $548 million in the prior quarter. Earnings Per Share (EPS): Decreased to $0.62 per share; adjusted EPS was $0.39. Adjusted EBITDA: $313 million, a sequential decrease of $542 million. Alumina Segment Revenue: Third-party revenue decreased 28% due to lower prices. Aluminum Segment Revenue: Third-party revenue increased 3% due to increased shipments and favorable currency impacts. Cash Flow from Operations: $488 million, with a working capital release of $251 million. Cash Balance: Ended the quarter with $1.5 billion in cash. Free Cash Flow: Positive at $357 million for the quarter. Return on Equity: Year-to-date positive at 22.5%. Dividend: Second-quarter dividend added $27 million to stockholder capital returns. Aluminum Shipments Outlook: Adjusted to 2.5 million to 2.6 million metric tons, down from 2.6 million to 2.8 million metric tons. Interest Expense Outlook: Increased to $180 million from $165 million. Return-Seeking CapEx Outlook: Adjusted to $50 million, down from $75 million. Warning! GuruFocus has detected 8 Warning Signs with AA. Release Date: July 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Alcoa Corp (NYSE:AA) delivered strong operational performance with no fatal or serious injuries reported in the second quarter. The company successfully closed the sale of its 25.1% stake in the Ma'aden joint ventures for $1.35 billion. Alcoa Corp (NYSE:AA) concluded a favorable five-year tax dispute in Australia, affirming no additional tax was owed. The company extended its supply agreement with Prysmian and completed its first North American sale of EcoLum, a low-carbon product. Alcoa Corp (NYSE:AA) ended the quarter with a strong cash position of $1.5 billion and positive free cash flow of $357 million. Negative Points Revenue decreased by 10% sequentially to $3 billion, with significant declines in the Alumina segment. Net income attributable to Alcoa Corp (NYSE:AA) dropped to $164 million from $548 million in the prior quarter. The company faced increased US Section 232 tariff costs, impacting the Aluminum segment's adjusted EBITDA. Alcoa Corp (NYSE:AA) lowered its annual outlook for aluminum shipments due to disruptions at the San Ciprian smelter. The company anticipates higher tariff costs in the third quarter, with an expected $250 million impact from increased US Section 232 tariffs. Q & A Highlights Q: How might potential 50% tariffs on Brazil impact Alcoa? A: Molly Beerman, CFO, explained that if alumina is excluded, Alcoa might not be impacted. However, if included, Alcoa could redirect supply from Western Australia, though this would incur additional time and shipping costs. Q: What are the contingency plans for Western Australia if mine approvals are delayed? A: William Oplinger, CEO, stated that they do not anticipate cost impacts in 2025 or 2026. They have contingency plans to mine different areas or go deeper in existing pits, allowing for a 15-month delay if necessary. Q: How are tariffs affecting Alcoa's financials, and is the Midwest Premium offsetting these costs? A: Molly Beerman noted that in Q2, tariffs cost $115 million, with only a $60 million offset from the Midwest Premium, resulting in a $55 million margin compression. Current pricing suggests a near-neutral or slightly positive impact overall. Q: What is the status of the San Ciprian smelter restart, and its financial implications? A: Molly Beerman indicated that the smelter is expected to be profitable after full ramp-up in 2026, despite current challenges. The refinery will face losses due to current market prices. Q: What prevents Alcoa from restarting spare capacity at Warrick given the increased Midwest Premium? A: William Oplinger explained that restarting the fourth line at Warrick would require a $100 million investment and about a year to complete. They need assurance that tariffs will remain to justify this investment. Q: How is Alcoa managing the impact of tariffs on its Canadian operations? A: William Oplinger stated that Alcoa has redirected 100,000 tons of Canadian metal to non-US customers and will continue to do so if netbacks favor other destinations. They are also passing on tariff costs through higher Midwest Premiums. Q: What is the status of the Alumar smelter restart in Brazil? A: William Oplinger reported that the Alumar smelter is at 92% capacity, with challenges in patch pot failures. They aim for full restart this year but acknowledge previous target misses. Q: What are Alcoa's plans regarding the Ma'aden shares received from the joint venture sale? A: Molly Beerman mentioned that while they have the option to monetize shares, it would be complex and classified as debt. They plan to hold shares until lock-up periods expire and do not intend to monetize them in advance. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-07-2025
- Business
- Yahoo
Is Vanguard High Dividend Yield ETF (VYM) a Strong ETF Right Now?
A smart beta exchange traded fund, the Vanguard High Dividend Yield ETF (VYM) debuted on 11/10/2006, and offers broad exposure to the Style Box - Large Cap Value category of the market. Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy. Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns. There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies. Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance. While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results. Because the fund has amassed over $61.49 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Value. VYM is managed by Vanguard. This particular fund, before fees and expenses, seeks to match the performance of the FTSE High Dividend Yield Index. The FTSE High Dividend Yield Index which is consists of common stocks of companies that pay dividends that generally are higher than average. When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal. Annual operating expenses for this ETF are 0.06%, making it one of the least expensive products in the space. It's 12-month trailing dividend yield comes in at 2.62%. Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings. This ETF has heaviest allocation in the Financials sector - about 21.9% of the portfolio. Information Technology and Healthcare round out the top three. Taking into account individual holdings, Broadcom Inc (AVGO) accounts for about 5.82% of the fund's total assets, followed by Jpmorgan Chase & Co (JPM) and Exxon Mobil Corp (XOM). The ETF has added roughly 6.8% and is up roughly 16.69% so far this year and in the past one year (as of 07/02/2025), respectively. VYM has traded between $114.78 and $135.06 during this last 52-week period. The fund has a beta of 0.78 and standard deviation of 14.26% for the trailing three-year period, which makes VYM a medium risk choice in this particular space. With about 591 holdings, it effectively diversifies company-specific risk . Vanguard High Dividend Yield ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well. Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $70.59 billion in assets, Vanguard Value ETF has $139.02 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.04%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vanguard High Dividend Yield ETF (VYM): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
22-05-2025
- Business
- Yahoo
Golden Ocean Group Ltd (GOGL) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...
Adjusted EBITDA: $12.7 million in Q1 2025, down from $69.9 million in Q4 2024. Net Loss: $44.1 million in Q1 2025, compared to a net income of $39 million in Q4 2024. Loss Per Share: $0.22 in Q1 2025, compared to earnings per share of $0.20 in Q4 2024. Net TCE Rates: $16,800 per day for Capesizes, $10,400 per day for Panamax vessels, and fleet-wide net TCE of $14,400 per day in Q1 2025. Dry Docking Costs: $38.3 million for 380 dry docking days in Q1 2025. Net Revenue: $114.7 million in Q1 2025, down from $174.9 million in Q4 2024. Operating Expenses: $95.3 million in Q1 2025, compared to $95.6 million in Q4 2024. Cash Flow from Operations: Negative $3.3 million in Q1 2025, down from $71.7 million in Q4 2024. Dividend Declared: $0.05 per share for Q1 2025. Cash and Cash Equivalents: $112.6 million at the end of Q1 2025. Debt and Finance Lease Liabilities: $1.44 billion at the end of Q1 2025. Book Equity: $1.8 billion with a total equity to total assets ratio of approximately 54% at the end of Q1 2025. Warning! GuruFocus has detected 5 Warning Signs with GOGL. Release Date: May 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Golden Ocean Group Ltd (NASDAQ:GOGL) declared a dividend of $0.05 per share for the first quarter of 2025. The company has entered into agreements for the sale of two older Kamsarmax vessels at attractive prices, aligning with their fleet renewal strategy. For Q2, Golden Ocean Group Ltd (NASDAQ:GOGL) has fixed a net TCE of about $19,000 per day for 69% of Capesize days and about $11,100 per day for 81% of Panamax days, indicating improved earnings potential. The company has $100 million of undrawn available credit lines at quarter end, providing financial flexibility. Golden Ocean Group Ltd (NASDAQ:GOGL) is benefiting from infrastructure improvements in Brazil, which have positively impacted export volumes despite adverse weather conditions. Golden Ocean Group Ltd (NASDAQ:GOGL) recorded a net loss of $44.1 million and a loss per share of $0.22 in Q1 2025. The company's adjusted EBITDA significantly decreased to $12.7 million in Q1 2025 from $69.9 million in Q4 2024. The fleet-wide net TCE rate decreased to $14,400 per day in Q1 2025 from $20,800 in Q4 2024. Golden Ocean Group Ltd (NASDAQ:GOGL) incurred high dry-docking costs of $38.3 million for 380 dry docking days in Q1 2025. Cash flow from operations was negative $3.3 million in Q1 2025, down from $71.7 million in Q4 2024. Q: Can you provide specific dates for the contemplated merger between Golden Ocean and CMB Tech? A: Peder Simonsen, CFO of Golden Ocean Management AS, stated that it is difficult to provide specific dates as there are many work streams involved in the process. The company is working according to the plan announced in the press release. Q: There seems to be a detachment between market prices and the agreed 0.95 exchange ratio for the merger. How should this be interpreted? A: Peder Simonsen explained that the pricing is influenced by various factors, including stock liquidity, and left the interpretation to market analysts. Q: What are the near-term market expectations, and are there any significant catalysts expected before Simandou volumes come online? A: Peder Simonsen noted recent disruptions in Guinea and Peru affecting market sentiment but expects volumes to pick up in line with seasonality. He remains positive for the second half of the year, anticipating healthy volumes for Capesize vessels. Q: Given the current rates and asset prices, is there an expectation for asset prices to decrease if rates remain at mid-teen levels? A: Peder Simonsen highlighted that newbuilding prices are high due to supportive long-term fundamentals and limited yard capacity. He does not expect secondhand values to decrease and believes that positive demand fundamentals will eventually impact the freight market. Q: How do you view the current market conditions compared to last year, and what are the expectations for the rest of the year? A: Peder Simonsen acknowledged that Q1 was more in line with seasonality compared to an unusually good Q1 last year. He expects miners to ramp up exports significantly in the second half, supported by constrained shipyard capacity and a positive outlook for large vessels. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
