This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dividend Stock Advisor

 Dividend Stock Advisor

Digging Into Earnings Season

BY David Peltier | 07/17/14 - 02:53 PM EDT
Action: MAT, SON, APD, MO, T, COP, GD, KLAC, PFE, SO, CPB

The second-quarter earnings season is under way and the following issue has two earnings reviews and eight earnings previews for the model portfolio names. Trading volatility typically increases during this period and we will continue to scour the universe of dividend-paying stocks for potential trading opportunities.

Earnings Reviews

Mattel (MAT:NYSE) announced quarterly results on July 17 that missed the consensus analyst estimates. The company earned $0.03 a share in the second quarter, which was $0.15 less than expected. Revenue fell 9%, year-over-year, to $1.06 billion. Despite the headline miss, management did say on the conference call that they are seeing better retail sales trends. It’s also worth noting that Mattel repurchased $100 million worth of stock last quarter.

We believe that the 4.2% dividend yield is secure and remain confident that the shares are attractive to purchase with new money at their recent price of $36.15.

Sonoco Products (SON:NYSE) also posted quarterly results on July 17 that fell short of expectations. The company earned $0.63 a share in the second quarter, which was $0.03 below the consensus analyst estimate. Revenue grew 2% from the previous year to $1.25 billion.

Strong performance from the converted products and display and packaging segments during the period, were offset by weakness in consumer packaging. Increased productivity in the quarter also mitigated the effect of rising operating costs.

There were few surprises from management on the conference call and we believe that Sonoco is attractive to purchase at its current price of $41.68, for the 3.1% dividend yield.

Earnings Previews

Air Products (APD:NYSE) is set to announce earnings on Wednesday morning. The consensus analyst estimates call for the company to earn $1.45 a share in the fiscal third quarter (ended June), up from $1.36 a year ago, on $2.67 billion of revenue.

Air Products will host a conference call at 10 a.m. EDT that investors can access at 719-325-2312, using the passcode 3267299. A replay will also be available for a week at 888- 203-1112, using the same passcode. Both the live call and a replay can be accessed at the company’s website: www.airproducts.com. On the call, we’ll be listening for guidance from the company’s new chief executive officer, Seifi Ghasemi.

Ahead of the numbers, we maintain the stock is attractive to hold at $129.50, for the 2.4% dividend yield.

Altria (MO:NYSE) is scheduled to announce earnings on Tuesday morning. The consensus analyst estimates are calling for the company to earn $0.66 a share in the second quarter, up from $0.62 a year ago, on $4.6 billion of revenue.

Altria will host a conference call at 9 a.m. EDT that investors can access at the company’s website: www.altria.com. A replay will also be available online. On the call, we’ll be listening for any comments from management regarding the proposed combination of Reynolds American (RAI:NYSE) and Lorillard (LO:NYSE).

Into the print, we continue to find the shares attractively valued at $41.71, for the 4.6% dividend yield. We believe that management will boost the quarterly dividend in August.

AT&T (T:NYSE) is scheduled to report quarterly results after the close of trading on Wednesday. The company is expected to earn $0.64 a share in the second quarter, down from $0.67 in the previous year, on $33.31 billion of revenue. Management has exceeded the consensus analyst earnings estimates for three straight quarters.

AT&T plans to host a conference call at 4:30 p.m. EDT that investors can access at the company’s website: www.att.com. A replay will also be available online. On the call, we’ll be listening for an update on price competition in the wireless business.

Ahead of the numbers, we consider the stock attractive to purchase at $36.32, for the 5.1% dividend yield.

ConocoPhillips (COP:NYSE) is scheduled to report its quarterly results on the morning of July 31. The company is expected to earn $1.60 a share in the second quarter, up from $1.41 in the previous year, on $15.4 billion of revenue. Management has exceeded the consensus analyst profit estimates for each of the past eight quarters.

ConocoPhillips will host a conference call at 12 p.m. EDT that shareholders can access at the company’s website: www.conocophillips.com/investor. A replay will also be available online. On the call, we’ll be looking for any changes in management’s production growth guidance. Into the print, we believe the shares are attractively valued at $85.24, for the 3.4% dividend yield.

General Dynamics (GD:NYSE) will announce earnings on Wednesday morning. The consensus analyst estimates are calling for the company to earn $1.77 a share in the second quarter, down from $1.81 a year ago, on $7.53 billion of revenue. Management has exceeded profit expectations five straight quarters.

General Dynamics will host a conference call at 9 a.m. EDT that investors can access at the company’s website: www.generaldynamics.com. A replay will also be available online. On the call, we’ll be listening for an update from management about the pipeline of government contracts. Ahead of the results, we maintain the stock is attractive to hold at $117.01, for the 2.1% dividend yield.

KLA-Tencor (KLAC:Nasdaq) is scheduled to report quarterly results after the close of trading on July 24. The company is expected to earn $0.86 a share in the fiscal fourth quarter (ended June), up from $0.82 in the previous year, on $733.7 million of revenue. Management has exceeded the consensus analyst profit estimate six straight quarters.

KLA-Tencor will host a conference call at 5 p.m. EDT that shareholders can access at the company’s website: www.ir.kla-tencor.com. A replay will also be available online for a year. On the call, we’ll be listening for fiscal 2015 (ending June) guidance from management. Ahead of the numbers, we believe the shares are attractively valued at their recent price of $74.23, for the 2.7% dividend yield.

Pfizer (PFE:NYSE) is scheduled to report quarterly results on the morning of July 29. The company is expected to earn $0.57 a share in the second quarter, up from $0.56 in the previous year, on $12.48 billion of revenue. Management has exceeded the consensus analyst profit estimate four straight quarters.

Pfizer will host a conference call at 10 a.m. EDT that shareholders can access at 866-246-2545, using the password “second quarter earnings.” Both the live call and a replay will also be available at the company’s website: www.pfizer.com. On the call, we’ll be listening for an update on the company’s clinical pipeline.

Into the print, we assert that the stock is attractive to purchase at its recent price of $30.81, for the 3.4% dividend yield.

Southern (SO:NYSE) will announce its earnings on the morning of July 30. The consensus analyst estimates are calling for the company to earn $0.67 a share in the second quarter, up from $0.66 a year ago, on $4.32 billion of revenue.

Southern will host a conference call at 1 p.m. EDT that investors can access at the company’s website: www.southerncompany.com. A replay will also be available online for a year. On the call, we’ll be listening for an update from management about the capital expenditure budget. Ahead of the results, we believe the shares are attractively valued at $44.69, for the 4.7% dividend yield.

Company Updates

Campbell Soup (CPB:NYSE) lost more than 4% over the past two weeks and the shares were recently changing hands around $43.91. Goldman Sachs downgraded the stock from Neutral to Sell on July 15,. Even so, the company has been the subject of some recent takeover speculation. In the meantime, we believe that the shares remain attractively valued for the 2.8% dividend yield.

Dividend Reminders

Mattel announced its next quarterly dividend of $0.38 a share (4.1% yield) on July 17. Investors at the close of trading on Aug. 22 will qualify for the payment on Sept. 19. Pfizer investors at the close of trading on July 29 will qualify for the next quarterly dividend of $0.26 a share (3.4% yield), payable on Sept. 3.

Sonoco declared its latest quarterly dividend of $0.32 a share (3.1% yield) on July 16. Investors at the close of trading on Aug. 12 will qualify for the payment on Sept. 10.

Regards,

David S. Peltier

Hot Summer Stock Pick: MO
Action: MO

The stock has gained 9%, year-to-date, and Altria will likely boost its payout for the 45th consecutive year in August.

07/16/14 - 11:33 AM EDT
More User-Friendly Website Coming

We are pleased to announce the upcoming release of a new and improved Dividend Stock Advisor website!

07/14/14 - 02:42 PM EDT

Special Subscription Bundles

Want more than one service?
Sign up to one of our packaged services and take advantage of amazing savings!

Portfolio Plus Real Money Pro
Portfolio
Chairman's Club
Action Alerts PLUS checkmark | Portfolio Plus checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
Stocks Under $10 checkmark | Portfolio Plus checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
Breakout Stocks checkmark | Portfolio Plus checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
Dividend Stock
Advisor
checkmark | Portfolio Plus checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
TheStreet
Quant Ratings
checkmark | Portfolio Plus checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
Real Money checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
Real Money Pro checkmark | Real Money Pro Portfolio checkmark | Chairman's Club
Trifecta Stocks checkmark | Chairman's Club
Reality Check checkmark | Chairman's Club
Action Alerts
OPTIONS
checkmark | Chairman's Club
Options Profits checkmark | Chairman's Club
Daily Swing Trade checkmark | Chairman's Club
Top Stocks checkmark | Chairman's Club
TheStreet
Big Gold
checkmark | Chairman's Club
Quarterly Call
with Jim Cramer
and Stephanie Link
checkmark | Chairman's Club
Started Now Started Now Started Now
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners