Dividend.com analyzes the search patterns of our visitors each week. By sharing these trends with our readers, we hope to provide insights into what the financial world is concerned about and how to position your portfolio.
Beverage giant Coca Cola has taken the first place in the list after the company posted mixed earnings. Second in the list is courier company UPS, which has reported strong results. Third in the list is business development company Prospect Capital, which recently announced shareholder distributions. Last in the list is payments giant Visa, which has reported solid results on strong volumes.
Don’t forget to read our previous edition of trends here.
Coca Cola Reports Mixed Results
Beverage and snacks giant Coca Cola (KO) has taken the first position in the list this week with an advance in viewership of 456%.
The company has recently reported a mixed bag of financial results. Both revenues and earnings per share beat analysts’ expectations, but this was largely thanks to higher prices rather than strong demand, which remained weak. Coca Cola reported earnings per share of 77 cents compared with 74 cents forecasted by analysts, while revenue of $11.95 billion was $350 million higher than expected.
Demand has declined as a host of consumers are looking for alternatives that are cheaper amid a move toward value.
Despite the mixed environments, Coca Cola has been outperforming arch competitor Pepsico. Coke’s shares are up 6.4% year-to-date, while Pepsi has declined 5%. Coke stock is down 12% from an all-time high hit earlier this year.
Coca Cola pays a quarterly dividend of 49 cents, resulting in an annual dividend yield of more than 3%.
Source: Barchart
UPS Reports Strong Results
United Parcel Service (UPS) has placed second in the list with an increase in traffic of 57%.
The package delivery company may have finally turned a corner after two years of missed revenue and profits. In the third quarter of 2024, UPS announced an adjusted profit per share of $1.76 versus analysts’ estimates of $1.63. Meanwhile, revenue of $22.25 billion beat estimates of $22.14 billion.
Just like Coca Cola, UPS has been suffering from customers moving to low-price shopping experiences like Temu. UPS hands most of these packages to low-cost U.S. Postal Service for final delivery.
The company has been making strides to improve its situation in a challenging market. It now expects a full-year operating margin of 9.6% compared with 9.4% in July.
Source: Barchart
Prospect Capital Sees Sequential Improvement in Income
Prospect Capital (PSEC) has taken the third position this week, with an increase in traffic of 35%.
Prospect Capital, a business development company lending to middle-market and real estate companies, has reported improving sequential results in the quarter ended June, with net investment income of $103 million higher than the previous quarter’s $94.3 million.
Prospect Capital has historically been a good vehicle for income investors. Since its inception in 2004, it has returned four times the stock price in cash distributions to shareholders and more than two times its net asset value.
Source: Barchart
Visa Is Up on Strong Results
Payments giant Visa (V) has placed last in the list, seeing its viewership rise 34%.
Visa shares are trading at a record high after it reported strong financial results that beat analysts’ estimates. Net income was up 14% to $5.3 billion, higher than analysts’ estimates of $5.16 billion. Meanwhile, revenue of $9.6 billion was up 12% from a year ago.
The strong results were thanks to growth in payments volume in the U.S. and abroad. However, Visa is now facing a lawsuit brought up by the U.S. Department of Justice, which has accused the company of operating an illegal monopoly.
Source: Barchart
The Bottom Line
Coca Cola has reported mixed results with earnings stronger due to higher prices for its products rather than strong demand. UPS has finally reported a good quarter, after two years of misses. Business development company Prospect Capital has seen sequential improvement in net investment income. Visa has reported strong results, but faces a lawsuit from the Department of Justice accusing it of operating an illegal monopoly.
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