EP #168 | 3rd Quarter Earnings Season in Full Swing | & is Walgreen's dividend safe?
Oct 21, 2023
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Explore the 3rd Quarter Earnings Season and Walgreens' settlement with Rite Aid investors. Discover Amazon's drone delivery expansion plans. Delve into the sales update and growth strategy of L'Oreal. Discuss the usefulness of smart glasses and the importance of innovation in various industries. Highlight Snap-on's growth and strong business performance. Learn about managing expenses and budgeting for investing. Understand Home Depot's growth rates and the impact of COVID-19 on other companies' earnings.
Investors should carefully analyze earnings reports and balance sheets to make informed investment decisions.
Interest rate increases are causing market turbulence, but present buying opportunities for long-term growth.
ASML and LVMH have shown strong performance and potential, making them intriguing investment opportunities.
Deep dives
Key Point 1: European stock market is facing a downturn
The European stock market is experiencing a downturn, with many stocks in portfolios decreasing in value. However, this presents buying opportunities for investors who believe in the long-term growth potential of certain companies.
Key Point 2: Turbulence in the market due to interest rate increases
The current market turbulence is not triggered by a black swan event, but rather due to interest rate increases. With interest rates on the rise, investors are exploring alternative income opportunities and reevaluating their investment strategies.
Key Point 3: Importance of analyzing earnings and balance sheets
During this earnings season, it is crucial for investors to carefully analyze earnings reports and balance sheets of the companies they are interested in. By doing a double check on the growth and financial health of these companies, investors can make informed investment decisions and buy with conviction.
ASML's Positive Outlook for 2024
ASML, a semiconductor industry leader, is confident about the future. Despite a challenging quarter, they anticipate the inflection point in the semiconductor market to be visible by the end of the year. ASML expects 2024 to be a transition year, preparing for the recovery and increased demand. Their transparency and outlook build trust among investors. With consistent sales growth and a significant increase in earnings per share of 50%, ASML shows strong performance and potential. The current share price does not reflect these positive prospects, making it an intriguing opportunity for investors.
LVMH's Strong Growth and Slight Slowdown
LVMH, a high-quality luxury goods company, has achieved remarkable sales growth of 10% in the first nine months. While the growth has slightly moderated compared to analysts' expectations, LVMH's fashion and leather goods divisions have contributed significantly to their success. Despite concerns about the uncertain global economy and geopolitical factors, LVMH remains a solid investment. The share price has declined recently, and if it reaches around 400 euros, it could become more attractive for investors looking for long-term growth potential.
Welcome to Episode 168 of our podcast, where we dive into the latest developments in the world of dividend investing. In this episode, we explore the exciting landscape of the 3rd Quarter Earnings Season, delving into the financial performances and strategic moves of major companies.
But first, we pose a critical question to our listeners in our Podcast Question of the Week: "Do you read/listen to some of the earnings of the companies in your portfolio?"
Share your insights with us by voting "Yes" or "No." in the poll related to this episode.
News of the Week:
Walgreens Boots Alliance (WBA) Settles Rite Aid Investors' Merger Claims: Discover the details of Walgreens' $192.5 million settlement to resolve a class action lawsuit involving Rite Aid investors. Learn how this legal dispute originated from allegations of misleading information regarding a pending merger and the subsequent impact on both companies.
Amazon's Drone Delivery Expansion: Amazon is taking delivery services to new heights by announcing its plans to launch drone deliveries in Italy, the UK, and another location in the United States starting in late 2024. Understand how this expansion will revolutionize the delivery landscape and integrate with Amazon's existing network.
Main Topic: earnings from
L'Oreal
EssilorLuxottica (Ticker: ESLOF) - Insights into their Real Internal Growth (RIG) measurement.
Nestlé (Ticker: NSRGF) - A deep dive into Nestlé's CEO's perspective and their commitment to responsible marketing and product improvement.
Johnson & Johnson (Ticker: JNJ) - Analyzing J&J's 2023 Third-Quarter reported sales growth and earnings.
ASML (Ticker: ASML) - Updates on ASML's expectations for 2023.
SAP - Stay tuned for insights into SAP's latest developments.
Snap-On - An overview of Snap-On's net sales growth, segmented into different groups, and their CEO's insights on the company's performance.
Listener Questions:
We also tackle a variety of listener questions related to investing strategies, stock choices, and financial decisions. Join us as we address your inquiries and provide expert insights.
Stay informed and engaged in the world of finance and investing with our latest episode. Don't forget to cast your vote in our Podcast Question of the Week.
Thank you for tuning in, and remember to stay updated with the latest financial news and insights. Happy investing!
Companies Mentioned:
Walgreens Boots Alliance (Ticker: WBA)
Amazon $AMZN
L'Oréal $OR.PA
EssilorLuxottica (Ticker: ESLOF)
Nestlé (Ticker: NSRGF)
Johnson & Johnson (Ticker: JNJ)
ASML (Ticker: ASML)
SAP $SAP
Snap-On $SNA
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