Earnings Report (May 3, 2023)

 Earnings Report: May 3, 2023

    I had two of my holdings report earnings today. I will summarize the earnings release and give you my opinions on the quarter.

The Kraft Heinz Company (KHC)- Kraft Heinz reported earnings before the market opened this morning. The company beat on both top and bottom line estimates. The company has a bunch of subsidiaries with brands you see on the shelves on a daily basis. This stock is also the 5th largest accumulator of dividends for Warren Buffett. The company saw a really impressive quarter with solid growth in both the US and International. The company is going through a transition and it is currently heading in the right direction. They don't want to declare victory, as they are still continuing to optimize the business. The outlook looks to be a solid and the business is definitely in a better position than it was a couple of quarters ago. Solid quarter by a solid company and the reinvestment into its businesses will propel this company to new heights.

My Thoughts: I don't think the stock price has been this high in the holding of my position. With the solid earnings report, the stock saw some decent gains compared to how it normally trades. I am impressed to see how the business is effectively handling the transformation. I think it looks to be in a better position. I did little research before investing in this one, as I selected it purely for diversity in the portfolio. I really like the subsidiaries and this company will be around for my lifetime. The dividend yield is also pretty solid and hopefully they get on a track of dividend growth. I couldn't be more satisfied with Kraft Heinz, they definitely exceeded my expectations. 

HubSpot, Inc. (HUBS)- HubSpot reported earnings after the market closes this afternoon. HubSpot saw a nice jump on beating estimates by a fair margin. The company is a CRM platform that provides software and support to help companies grow. The earnings looked really good and the growth rates for these metrics were also really solid. The CEO made some remarks about the strong start to the year. The execution was good and innovation is headed down the right track to keep customers happy. They have been working on a bi-modal marketing strategy that has also seen some pretty good successes. The outlook looks solid and the business looks to be in a good position.

My Thoughts: This is one of my recent additions to my Growth portfolio. The company looked to be in a good position and the optimism was high. I will say, it has not disappointed so far. The company blew earnings out of the water, and is not showing any signs of slowing down with a solid outlook for the next quarter. I am impressed with the execution and look for them to continue the high growth they are attaining. I want to see how they come about with their generative AI, so this one I will keep my eye on in the next few quarters. I am satisfied with the quarter and am happy with my position.

Realty Income Corporation (O)- Realty Income reported earnings after the market closed this afternoon. The company is ticking a tad bit higher as they beat estimates in both revenue and earnings. The company is a REIT and is known for its monthly dividends. In fact, the company raised its dividend payment for the 102nd consecutive quarter. The company invested $1.7 billion this quarter at a cap rate of 7%. The balance sheet is in a healthy position, so if they feel they need to make quality investments, they have the proper allocation to make it happen. Realty Income had a 99% occupancy rate and a rent recapture rate of 101.7%. The company had an impressive quarter and looks to stay on track with its solid record.

My Thoughts: I invested in this company within the last quarter, so this was my first quarterly report as a shareholder. I have always loved this company, I was just waiting for a solid inflection point to buy in. That mark was hit this quarter and I am very glad it did. This may be one of the best income generating stocks on the market. With the unique rules that REITs face in having to give out 90% of their income, this stock triggers green flags for income investors. The impressive part is how much they are able to reinvest and be effective in all of their transactions. They also have wonderful rates with occupancy and retention. This business does everything right and will be around for a while. 

Etsy, Inc. (ETSY)- Etsy reported earnings after the market closed this afternoon. The company saw a nice uptick in their share price as the company beat top and bottom line expectations. Etsy has been able to maintain their pandemic gains even with economic road blocks present. The CEO mentioned about some product development and marketing initiatives to drive customer experience. They see a lot of room to grow and are trying to grow the outreach to consumers. A main focus Etsy has is to make their product relevant and beneficial for customers. They want to gain the trust of the sellers to use their platform for transactions and make the marketplace a safe and comfortable environment. 

My Thoughts: Etsy was one of the first investments I made, and the pandemic humbled me real quick. This is a wonderful platform and I like the outlook the business has put forth. They are doing a wonderful job of executing a nice growth strategy. I want them to be able to make their platform safe and secure and hopefully make it a top marketplace for resale. The company still has some optimism and is still relatively young on the stock market. I think this company can come a long way, and will be able to take the e-commerce world we live in to new heights. I am happy with the results this quarter and look forward to some solid growth and innovation in the coming quarters. '

Thank you for reading.

All information comes from Earnings Releases.