Realty Income: A Dividend Powerhouse With Growth Potential
Realty Income Corporation O, known as “The Monthly Dividend Company,” is a Real Estate Investment Trust (REIT) with a unique approach to commercial real estate. Unlike many of its peers, Realty Income focuses exclusively on free-standing properties, securing them under long-term net lease agreements.
This strategy provides investors with a dependable stream of passive income generated by a diversified portfolio of high-quality tenants. This business model, combined with a commitment to consistent dividend payouts and strategic acquisitions, has fueled Realty Income’s impressive growth and positioned it as a favorite among investors seeking reliable income and long-term growth potential.
The Triple-Net Lease Advantage
Realty Income’s triple-net lease model is a cornerstone of its business strategy, further reinforcing the company’s commitment to efficient operations and predictable cash flows. This model, where tenants shoulder the responsibility for property taxes, maintenance, and utilities, minimizes Realty Income’s operational expenses, making it easier to forecast earnings and plan for future dividend payments.
This structure also offers tenants significant flexibility, allowing them to focus on their core business operations while securing long-term occupancy of their facilities. For example, Realty Income’s portfolio includes properties leased to a diverse range of tenants, from national retailers like Walgreens WBA and Dollar General DG to regional and local businesses. This strategy has enabled Realty Income to generate a steady stream of passive income, which has fueled its consistent dividend payments and impressive long-term growth.
The Monthly Dividend Advantage
Realty Income is known as “The Monthly Dividend Company,” representing its commitment to paying consistent dividends every month.
This approach has differentiated the company in the REIT market, appealing to investors who prefer a regular, steady income stream.
Since its initial public offering (IPO) in 1994, Realty Income has consistently increased its dividend payment 127 times, a testament to its commitment to shareholder value.
Realty Income’s dividend history has solidified its reputation as a reliable income source, drawing investors seeking dependable and growing dividend income.
Realty Income’s Growth and Financial Performance
Realty Income’s earnings report for the second quarter of 2024 underscores its ability to deliver consistent growth. Realty Income reported earnings per share (EPS) of $0.29, slightly missing analysts’ consensus estimates of $0.36. However, it’s crucial to look at the bigger picture. While the EPS did not meet Realty Income’s analyst community’s expectations, the company’s revenue reached $1.34 billion, representing a robust 31.4% increase year-over-year. This solid revenue growth reflects Realty Income’s ability to acquire high-quality properties and maintain consistent occupancy rates.
This recent performance also saw Realty Income declare a monthly dividend increase, raising the payment to $0.2635 per share from $0.2630 per share. This increase, representing an annualized dividend amount of $3.162 per share, further highlights the company’s commitment to rewarding its shareholders with growing dividend income.
Realty Income’s Diversification Strategy
Realty Income’s diversification strategy is a key factor in its long-term growth. The company has expanded its portfolio to include properties in the US, UK, and Spain, spreading its geographic reach and mitigating risk. This proactive risk management offers several advantages for investors, reducing portfolio volatility and increasing returns. By diversifying across multiple markets, Realty Income is better positioned to withstand potential economic downturns and maintain steady growth regardless of local market conditions.
Realty Income’s Secret Sauce
Realty Income’s success is driven by a combination of factors that give the company a significant competitive advantage. The company’s focus on triple-net leases minimizes its operational expenses, providing a more predictable cash flow for investors. Realty Income’s diversification strategy, extending its reach across industries and geographies, further enhances its ability to weather economic fluctuations.
Furthermore, Realty Income’s strong balance sheet and deep industry experience allow it to attract high-quality tenants. These tenants are willing to commit to long-term lease agreements, providing the company with a steady stream of rental income that supports its consistent dividend payments.
Strategies for Different Investors
Investing in Realty Income requires careful consideration of personal investment goals and risk tolerance. While the company is attractive to a wide range of investors, two primary strategies stand out for different investor profiles:
Income-Focused Investors
Realty Income is an attractive option for those seeking a dependable stream of dividend income. The company’s commitment to shareholder value and history of consistent dividend payments, including a track record of 652 consecutive monthly dividend payments, make it a strong contender for investors seeking a reliable source of income. This consistent payout, combined with its triple-net lease model, which minimizes operating expenses for Realty Income, creates a stable and predictable cash flow stream that supports these dividends.
Growth-Oriented Investors
While Realty Income’s primary focus is on dividends, the company has also demonstrated consistent growth in its portfolio and share price. Growth-oriented investors can consider Realty Income as a core holding within a diversified portfolio. The company’s strategic acquisitions, expansion into new markets, and strong tenant relationships provide a solid foundation for continued growth, offering investors the potential for income and capital appreciation. Realty Income’s global diversification strategy, with a presence in the US, UK, and Spain, further mitigates risk and creates opportunities for growth in various markets.
Realty Income has carved a unique niche in the REIT sector by focusing on triple-net leases and offering investors dependable monthly dividend payments. The company’s consistent growth, diversification strategy, and competitive advantages have solidified its reputation as a reliable income source. Investors seeking a dependable dividend stream and potential for long-term growth may find Realty Income an attractive investment opportunity.
The article “Realty Income: A Dividend Powerhouse With Growth Potential” first appeared on MarketBeat.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Aluminum Door and Window Market to Reach $82.1 billion, Globally, by 2031 at 3.8% CAGR: Allied Market Research
Wilmington, Delaware, Oct. 17, 2024 (GLOBE NEWSWIRE) — Allied Market Research published a report, titled, “Aluminum Door and Window Market by Product Type (Window and Door), Mechanism (Swinging, Sliding, Folding and Revolving), And End User Industry (Residential, Non-Residential): Global Opportunity Analysis and Industry Forecast, 2022-2031“. The global aluminum door and window market was valued at $55.8 billion in 2021 and is estimated to reach $82.1 billion by 2031, exhibiting a CAGR of` 3.8% from 2022 to 2031.
Prime determinants of growth
The aluminum door and window market is primarily driven by the increasing consumer preference for energy-efficient and sustainable building materials. Aluminum’s lightweight yet durable properties, with its resistance to corrosion, make it an ideal choice for both residential and non-residential applications. In addition, advancements in manufacturing techniques have improved design flexibility and reduced costs. The growing trend towards modern architecture, which often emphasizes large glass areas and minimalistic designs, further boosts demand for aluminum frames. Moreover, government initiatives promoting eco-friendly construction practices and energy conservation continue to support the expansion of this market segment.
Download PDF Sample Copy: https://www.alliedmarketresearch.com/request-sample/A16982
Report coverage & details:
| Report Coverage | Details |
| Forecast Period | 2021–2031 |
| Base Year | 2021 |
| Market Size in 2023 | $55.8 billion |
| Market Size in 2032 | $82.1 billion |
| CAGR | 3.8% |
| No. of Pages in Report | 240 |
| Segments Covered | Product Type, Mechanism, End User Industry and Region. |
| Drivers |
|
| Opportunities |
|
| Restraint |
|
The window is expected to exhibit fastest growth throughout the forecast period
By product type, the window is anticipated to experience faster growth in the aluminum door and window market due to the rise in construction of residential building which is expected to positively influence the demand of aluminum windows. Moreover, improving lifestyle of people in general and rise in trend of saving energy by letting in more and more ambient light is expected to drive the demand for aluminum windows. Moreover, manufacturers such as Andersen Corporation, Apogee Enterprises, Inc., and Bradnam’s Windows & Doors offer a wide range of aluminum windows.
Buy This Research Report (210 Pages PDF with Insights, Charts, Tables, Figures) https://bit.ly/3YjZyRN
The sliding segment are expected to exhibit fastest growth throughout the forecast period
By mechanism, the sliding segment is anticipated to experience faster growth in the aluminum door and window market. The sliding mechanism is suitable for residential buildings, hotels, offices, apartments, big retail outlets, airports, and other building projects. Some of the benefits associated with this mechanism include, substantial cost savings and do not take up a larger space. Moreover, increase in popularity of this mechanism among consumers, and rise in new construction and home improvement activities are expected to further boost the market expansion.
The non-residential segment is expected to exhibit fastest growth throughout the forecast period
By end user, the non-residential segment is anticipated to experience faster growth in the aluminum door and window market due to the rapid rise in urbanization. Moreover, rise in global population has also positively affected the global non-residential building construction. Aluminum doors and windows are widely used in non-residential buildings, owing to their highly desirable features for places witnessing high foot fall of people. Aluminum doors and windows are strong, durable, and easy to maintain. All such features are required by a door and window installed in non-residential buildings, as they are constantly opened and closed. Hence, an increase in investments in non-residential construction projects is expected to drive the growth of the aluminum door and window market.
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LAMEA is expected to exhibit fastest growth throughout the forecast period
Asia-Pacific accounted for the highest market share in 2021. However, LAMEA is expected to grow with a highest CAGR during the forecast period. Latin America and Middle East have a large number of developing countries with a huge potential to grow. Many countries in the Middle East are focusing on rapid development of infrastructure for boosting the tourism industry. This creates a demand for hotels, resorts, and other guests’ accommodation; thereby increasing the demand for doors and windows.
Players: –
- Apogee Enterprises Inc.
- Bradnam’s Windows & Doors
- Contractors Wardrobe, Inc.
- Fenesta Building Systems
- Fletcher Building Limited
- Geeta Aluminum Co. Pvt. Ltd.
- Hume Doors & Timber Pty Ltd.
- Marvin Windows and Doors
Key Strategies
- In December 2021- Alumil launched three new products, namely SΜΑΡΤΙΑ P100 Slim, SMARTIA P200 Slim, and SMARTIA P150 Urban to enhance working circumstances such as privacy, natural sunlight, and overall appearance.
- In July 2021- Alumil developed an advanced sliding aluminum window (S650e-Motion) that operates with electric motion.
The report provides a detailed analysis of these key players in the global aluminum door and window. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.
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About us:
Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high quality of data and help clients in every way possible to achieve success. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
Contact us:
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Corporation Trust Center,
Wilmington, New Castle, Delaware 19801 USA.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ask an Advisor: I'm Facing a Massive Tax Bill from Investment Gains – What Are My Options?
My investment accounts don’t withhold taxes from my capital gains, which is causing me to owe large amounts when I file my returns. How can I mitigate this situation?
-David
As capital gains distributions are unpredictable and usually unknown until the end of the year, it can be difficult to properly plan for them. Taking proactive steps to anticipate and “prepay” your tax bill can help you avoid an unmanageable balance due in April.
Read on for more information on how to manage your tax liability throughout the year. (Looking for help with a financial question? This tool can help match you with potential advisors.)
Options to ‘Prepay’ Your Tax Bill
You have two main options for paying taxes throughout the year rather than dealing with a huge tax bill in April: adding or increasing withholding taxes from another income source, or making quarterly estimated tax payments.
A third possible option would be to contact the mutual fund generating the capital gains distributions directly and ask it about withholding. It’s possible that the company would facilitate that but not likely. As for your investment account, those institutions typically only offer withholding when you sell securities or take retirement account distributions.
Be aware that using these strategies will reduce the balance you have to pay when you file your taxes. But they won’t reduce your actual tax bill. (Looking for help with a financial question? This tool can help match you with potential advisors.)
What Are Capital Gains Distributions?
Mutual funds and exchange-traded funds (ETFs) hold lots of underlying investments like stocks and bonds. During the year, they may sell some of those investments, resulting in capital gains or losses inside the fund. At the end of the year, the fund distributes a proportional share of those sale proceeds to each investor – that’s a capital gains distribution.
As an investor, you generally won’t know what to expect in terms of capital gain distribution income until late in the year. Funds typically post information about estimated distributions and expected payout dates on their websites in November or December.
Unlike regular capital gains, which come into play when you sell an investment for more than its purchase price, you haven’t taken any action here. Your capital gains distribution is purely the result of trades that the fund itself made. So even though you haven’t sold any shares of your mutual fund, you’ll have taxable income from those capital gains distributions.
This income will be taxed like long-term capital gains, no matter how long you’ve actually owned your fund shares. Long-term capital gains tax rates are based on your overall taxable income and filing status, so this income will be taxed at either 0%, 15% or 20%.
How Can I Deal With These Taxes?
Since you won’t know until late in the year how much you might receive in capital gains distributions, it can be tough to estimate the tax bill exactly – but you can get close enough to at least avoid IRS underpayment penalties. The IRS has safe harbor guidelines: As long as you pay at least 90% of your current tax bill or 100% of the prior year’s tax bill, or owe less than $1,000, you can avoid being charged underpayment penalties even if you end up owing.
Both methods ask you to have a good sense of what your annual income will be early in the year, which isn’t always practical. You can start with your best estimate and make adjustments during the year if needed. (Looking for help with a financial question? This tool can help match you with potential advisors.)
Begin or Increase Withholding on Other Income
If you have other income sources, such as a regular W-2 job or federal retirement income, you can request that they enough withhold taxes to cover this additional income. You can even request withholding on Social Security payments.
If you have an online account for your other income source, you can probably request or change withholding taxes right there. You’ll complete a Form W-4 (or the equivalent) and enter the amount you want withheld on the line that says “extra withholding.” For government payments like Social Security, you’ll use Form W-4V and choose the percent you want withheld. You can also stop this withholding at any time by updating your choices.
Make Quarterly Estimated Tax Payments
Once you know approximately how much tax you’ll owe, you can divide that by four and make equal estimated tax payments every quarter. You can either complete IRS Form 1040-ES and mail that with a check to your designated IRS mailing center or make your payment online at the IRS website. If you pay online, make sure you choose “Estimated Tax” for the reason and the correct current tax year.
Pro tip: When making estimated tax payments for a jointly filed tax return, make sure to use the Social Security number of whichever of you appears first on the tax return (as “taxpayer” rather than as “spouse”). The IRS system sometimes misapplies or does not apply payments properly if the other SSN is used.
Estimated tax due date payments are:
Estimated Tax Payments vs. Withholding Taxes
Be aware that there are more potential penalties associated with estimated tax payments than withholding taxes. It’s also a lot easier to manage withholding as you can set it and forget it, as opposed to remembering to proactively make a payment every quarter. (Looking for help with a financial question? This tool can help match you with potential advisors.)
Next Steps
There are two ways to avoid paying a large tax bill in April. You can withhold extra taxes on another source of income or make quarterly estimated tax payments. Either way, you’ll be spreading out your taxes over the whole year instead of coming up with a lump sum when you file your tax return.
Find a Financial Advisor
-
If you have questions specific to your investing and taxation situation, a financial advisor can help. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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Understanding your tax bill can help you make plans for your money. Whether you plan on saving for retirement, paying off college or credit card debt, or investing your money differently, SmartAsset’s tax return calculator can help you figure out how much you will get back from the government so you can plan ahead.
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Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.
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Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with leads and offers marketing automation solutions so you can spend more time making conversions. Learn more about SmartAsset AMP.
Michele Cagan, CPA, is a SmartAsset financial planning columnist and answers reader questions on personal finance and tax topics. Got a question you’d like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column.
Please note that Michele is not a participant in the SmartAsset AMP platform, is not an employee of SmartAsset, and she has been compensated for this article.
Photo credits: ©iStock.com/Milan_Jovic, ©iStock.com/AmnajKhetsamtip
The post Ask an Advisor: ‘How Can I Mitigate This Situation?’ My Tax Bill Is Huge Because My Investment Accounts Don’t Withhold Capital Gains appeared first on SmartAsset Blog.
Automotive Plastics Market to Reach $51.1 Billion, Globally, by 2033 at 5.4% CAGR: Allied Market Research
Wilmington, Delaware , Oct. 17, 2024 (GLOBE NEWSWIRE) — Allied Market Research published a report, titled, “Automotive Plastics Market by Type (Polypropylene (PP), Polyurethane (PU), Polyvinyl Chloride (PVC), Acrylonitrile Butadiene Styrene (ABS), Polyamide (PA), Polystyrene (PS), Polyethylene (PE), Others), by Application (Dashboards, Engine Covers, Door Handles, Wheel Covers, Bumpers, Plug Connectors, Knobs and Fittings and Others): Global Opportunity Analysis and Industry Forecast, 2024-2033″. According to the report, the automotive plastics market was valued at $30.4 billion in 2023, and is estimated to reach $51.1 billion by 2033, growing at a CAGR of 5.4% from 2024 to 2033.
Prime determinants of growth
The automotive plastics market has benefited from advancements in manufacturing processes and technologies. Improved injection molding, blow molding, and thermoforming techniques have enabled the production of complex and intricate plastic components with precise dimensions and enhanced surface finishes. These advancements have allowed automakers to incorporate plastic components in various applications, from exterior body panels and interior trim to under-the-hood components and safety systems, thereby expected to boost the demand for automotive plastics throughout the forecast period.
Download Sample Pages of Research Overview: https://www.alliedmarketresearch.com/request-sample/1650
Report coverage & details:
| Report Coverage | Details |
| Forecast Period | 2024–2033 |
| Base Year | 2023 |
| Market Size in 2023 | $30.4 billion |
| Market Size in 2033 | $51.1 billion |
| CAGR | 5.4% |
| No. of Pages in Report | 320 |
| Segments Covered | Type, Application, and Region. |
| Drivers | Increasing demand for lightweight vehicles. Advancements in Material Properties. |
| Opportunity | Electric vehicle adoption. |
| Restraint | Volatile raw material prices. |
The polypropylene (PP) segment is expected to experience fastest growth throughout the forecast period.
By type, the polypropylene (PP) segment held the highest market share in 2023 and is estimated to maintain its leadership status throughout the forecast period. Polypropylene (PP) is a thermoplastic polymer that has gained widespread use in the automotive industry due to its favorable properties and versatility. This material its excellent balance of mechanical properties, chemical resistance, and cost-effectiveness, making it an attractive choice for various automotive applications.
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The bumper segment is expected to experience fastest growth throughout the forecast period.
By application, bumper segment held the highest market share in 2023 and is estimated to dominate during the forecast period. The bumper is a crucial component in modern vehicles, and the automotive plastics market has played a significant role in its evolution and widespread adoption. Plastics have largely replaced traditional materials such as steel and chrome in bumper manufacturing, offering numerous advantages in terms of cost, weight, and design flexibility.
Asia-Pacific is expected to experience fastest growth throughout the forecast period
Based on region, Asia-Pacific is the fastest growing region in terms of revenue in 2023. The use of automotive plastics in the Asia-Pacific region is integral to the automotive industry’s growth and sustainability. These materials offer numerous benefits such as weight reduction, cost efficiency, enhanced performance, and improved safety. As the region continues to evolve as a major hub for automotive manufacturing, the demand for automotive plastics is expected to rise, driven by technological advancements and increasing consumer expectations for quality and efficiency in vehicles.
Want to Access the Statistical Data and Graphs, Key Players’ Strategies: https://www.alliedmarketresearch.com/automotive-plastics-market/purchase-options
Leading Market Players: –
- Exxon Mobil Corporation.
- Asahi Kasei Corporation.
The report provides a detailed analysis of these key players in the global automotive plastics market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.
About Us
Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
Contact:
David Correa
United States
1209 Orange Street,
Corporation Trust Center,
Wilmington, New Castle,
Delaware 19801 USA.
Int’l: +1-503-894-6022
Toll Free: +1-800-792-5285
Fax: +1-800-792-5285
help@alliedmarketresearch.com
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Chipmakers Rally, Nvidia Smashes Records On TSMC Blowout Earnings, Gold Hits All-Time Highs: What's Driving Markets Thursday?
A semiconductor rally pushed the S&P 500 to new all-time highs on Thursday, with strong earnings from Taiwan Semiconductor Manufacturing Co. Ltd. TSM boosting tech sentiment after a weak report from ASML Holding N.V. ASML earlier in the week.
The iShares Semiconductor ETF SOXX jumped 2.3%, leading sector gains. NVIDIA Corp. NVDA hit fresh record highs, reaching $141 per share during the morning session.
The Nasdaq 100 outperformed major indices, while small caps underperformed as the Russell 2000 faced resistance at a key technical level. The Dow briefly touched a record high of 43,289 points before pulling back slightly.
On the macro front, September retail sales exceeded expectations, and jobless claims fell last week, reinforcing views of strong economic resilience. However, this also slightly hit hopes for Fed rate cuts as economists voiced doubts about the need for further easing in November.
The U.S. dollar strengthened, with the dollar index (DXY) climbing to levels last seen in early August. The euro fell 0.4% as the European Central Bank cut interest rates amid weak economic data and ongoing disinflation.
Gold prices, tracked by the SPDR Gold Trust GLD, rose 0.5%, setting new records despite rising Treasury yields. The 10-year Treasury yield gained 8 basis points to 4.10%, while the iShares 20+ Year Treasury Bond ETF TLT slid 1.6%, marking its worst session since early August.
Bitcoin BTC/USD eased 0.4%, taking a breather after four consecutive sessions of gains.
| Major Indices | Price | 1-day % change |
| Nasdaq 100 | 20,304.26 | 0.6% |
| S&P 500 | 5,865.46 | 0.4% |
| Dow Jones | 43,231.61 | 0.4% |
| Russell 2000 | 2,279.25 | -0.3% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust SPY rose 0.4% to $584.45.
- The SPDR Dow Jones Industrial Average DIA inched 0.4% higher to $432.52.
- The tech-heavy Invesco QQQ Trust Series QQQ soared 0.7% to $494.15.
- The iShares Russell 2000 ETF IWM fell 0.4% to $226.02.
- The Technology Select Sector SPDR Fund XLK outperformed, up 1%. The Consumer Staples Select Sector SPDR Fund XLP lagged, down 0.5%.
- Semiconductor stocks rallying Thursday on the heels of strong TSM earnings were Broadcom Inc. AVGO, up 4%; Lattice Semiconductor Corp. LSCC, up 4%; Micron Technology Inc. MU, up 3.6% and Arm Holdings plc ARM, up 3.1%.
- Blackstone Inc. BX soared over 7% to fresh record highs after a strong quarterly report.
- Other stocks reacting to company earnings included CSX Corp. CSX, down 6%; Kinder Morgan Inc. KMI, up 0.1%; Discover Financial Services DFS, up 2%; Equifax Inc. EFX, down 2.5%; Steel Dynamics Inc. STLD, up 6%; Alcoa Corp. AA, down 3%; Marsh & McLennan Companies Inc. MMC, up 0.1%; Elevance Health Inc. ELV, down 12%; Travelers Companies Inc. TRV, up 8%; Truist Financial Corp. TFC, down 1.2%; M&T Bank Corp. MTB, up 5%; Huntington Bancshares Inc. HBAN, down 1.8% and KeyCorp KEY, down 1.5%.
- Companies slated to report their earnings after the close include Netflix Inc. NFLX, Intuitive Surgical Inc. ISRG, Crown Holdings Inc. CCK and Western Alliance Bancorporation WAL.
Read Now:
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Analyst Report: Kinder Morgan Inc
Summary
Kinder Morgan Inc. is one of the largest natural gas transmission and storage companies in North America. After going private in May 2007, it went public again in February 2011 via a $3.3 billion initial public offering. Following a late 2014 consolidation of its former operating entities, Kinder Morgan Energy Partners, L.P., Kinder Morgan Management, and El Paso Pipeline Partners, L.P., the newly consolidated company no longer has a master limited partnership structure, under which the former limited partners paid incentive distribution rights (IDRs) to KMI as their general partner.
Through its various operating businesses, KMI operates a diverse set of assets, including 82,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, refined petroleum products, crude oil, carbon dioxide, and other products, and its terminals store products such as petrol
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Seagate Gears Up for Q1 Earnings: What's in the Offing?
Seagate Technology Holdings plc STX is scheduled to report first-quarter fiscal 2025 earnings on Oct. 22.
The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings has been revised upwards by 2.1% in the past 60 days at $1.48 per share. The company reported a non-GAAP loss per share of 22 cents in the prior year quarter. The Zacks Consensus Estimate for revenues is currently pegged at $2.11 billion, indicating a 44.8% uptick from the year-ago actual.
Management anticipates first-quarter fiscal 2025 revenues to be $2.1 billion (+/- $150 million). Non-GAAP earnings are expected to be $1.40 per share (+/- 20 cents).
STX’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed the remaining occasion. The average earnings surprise is 80.9%.
Factors Shaping the Upcoming Results of Seagate
Seagate expects incremental increases in mass capacity demand, owing to strengthening demand from global cloud customers and modest improvement in the nearline enterprise market. Nearline cloud revenues have been driven by improving sales to cloud service providers and steadying enterprise demand. Also, higher traditional cloud computing workloads and new AI deployments have been driving nearline demand. Seagate expects this momentum to continue in fiscal 2025.
Secular trends and innovations in driving up aerial density are likely to have spurred mass capacity storage demand. The launch of the Mozaic 3+ hard drive platform earlier in the year, which featured Heat-Assisted Magnetic Recording technology, positioned it well to capture share in the mass capacity storage solutions market.
We expect mass capacity revenues to be up 62.8% year over year to $1,655.9 million in the fiscal first quarter. Seagate anticipates the increase in mass capacity revenues to offset lower revenues from legacy markets.
For VIA, management anticipates sales to fluctuate in the second half of the calendar 2024. Though smart cities are the biggest end-market opportunity, the near-term budget visibility remains blurry amid existing macroeconomic uncertainty.
Seagate Technology Holdings PLC Price and EPS Surprise
Seagate Technology Holdings PLC price-eps-surprise | Seagate Technology Holdings PLC Quote
Gross margin is expected to have benefited from a higher mix of mass capacity revenues and ongoing pricing actions. The company expects minimal underutilization costs owing to the improving demand environment.
Our estimate for revenues from the HDD segment is pegged at $1,932.2 million, indicating an increase of 49.2% from the year-ago actual. The estimate for the non-HDD (which includes enterprise data solutions, cloud systems and solid-state drives) segment is pegged at $169.1 million, implying an increase of 6.3% from the prior-year level.
Soft global macroeconomic conditions, especially a relatively sluggish recovery in China, remain a concern. Increasing costs are additional headwinds. In the fiscal first quarter, the non-GAAP operating expenses are expected to be $270 million.
What the Zacks Model Unveils
Our proven model does predict an earnings beat for Seagate this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.
Seagate has an Earnings ESP of +5.09% and sports a Zacks Rank #1 at present.
Other Stocks to Consider
Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
SEI Investments Company SEIC currently has an Earnings ESP of +0.94% and a Zacks Rank #2.
SEIC is scheduled to report quarterly earnings on Oct. 23. The Zacks Consensus Estimate for SEIC’s to-be-reported quarter’s earnings and revenues is pegged at $1.07 per share and $532.1 million, respectively. Shares of SEIC have gained 29.9% in the past year.
Ameriprise Financial, Inc. AMP presently has an Earnings ESP of +0.5% and a Zacks Rank #2. AMP is scheduled to report quarterly numbers on Oct. 23. The Zacks Consensus Estimate for AMP’s to-be-reported quarter’s earnings and revenues is pegged at $8.86 per share and $4.3 billion, respectively. Shares of AMP have risen 60% in the past year.
American Airlines Group Inc. AAL has an Earnings ESP of +32.87% and a Zacks Rank #2 at present. AAL is scheduled to report quarterly figures on Oct. 24. The Zacks Consensus Estimate for AAL’s to-be-reported quarter’s earnings and revenues is pegged at 13 cents per share and $13.49 billion, respectively. Shares of AAL have increased 13.5% in the past year.
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3 Reasons to Buy Energy Transfer Stock Like There's No Tomorrow
With interest rates likely headed lower over the next few years as the Fed embarks on a rate-cutting cycle, income-oriented investors may be looking for places to invest that can offer higher yields and attractive returns. One such option is an investment in pipeline operator Energy Transfer (NYSE: ET).
The company owns one of the largest integrated midstream systems in the U.S., where it transports hydrocarbons (natural gas, natural gas liquids, and crude) and performs other services across the midstream value chain, such as storage, gathering, processing, and fractionation, among others.
Let’s look at three reasons to buy Energy Transfer stock like there is no tomorrow.
A high yield and increasing distribution
One of the first things that inevitably draws investors to Energy Transfer is the stock’s juicy 7.8% forward yield. The master limited partnership (MLP) currently pays out a $0.32 quarterly distribution, which it plans to grow by between 3% and 5% a year moving forward.
Note that as an MLP, Energy Transfer pays a distribution, not a dividend. While similar, distributions include a return on capital that is untaxed until the units are typically sold, making them tax-deferred. However, investors do receive what is called a K-1 and must fill out some extra tax forms.
While Energy Transfer cut its distribution in half in 2020 to help repair its balance sheet, the distribution is higher today than before the cut. The company’s balance sheet is currently in good shape, with leverage (as used by rating agencies) toward the low end of its 4.0x to 4.5x target range.
At the same time, Energy Transfer’s distribution is well covered, as reflected in its over 1.8 times distribution coverage ratio in the second quarter. This is based on its non-consolidated distributable cash flow, which is its cash flow before growth capital expenditures (capex). Energy Transfer has partial stakes in a few companies, so the non-consolidated number is the cash flow it gets to keep.
Overall, Energy Transfer has a high, well-covered yield with a distribution that should continue to grow.
Growth opportunities
In addition to its nice yield, Energy Transfer has solid growth opportunities in front of it. The company has one of the midstream sector’s largest backlogs, with several projects set to go into service next year and the year after.
It plans to spend around $3.1 billion on growth projects this year. The company typically looks for at least a 12% return on its spending, which would help boost earnings before interest, taxes, depreciation, and amortization (EBITDA) by more than $370 million per year once all the projects are fully ramped up.
Energy Transfer is also well positioned to deliver natural gas to help supply the increasing energy needs of artificial intelligence (AI)-focused data centers. AI data centers use an enormous amount of energy, and these companies need reliable, cheap, and uninterruptible energy. Nuclear energy and natural gas are the best ways to provide this.
While cloud computing companies are starting to turn to nuclear energy, most of these projects are at least several years away. Meanwhile, Energy Transfer has been signing deals with power companies to supply more natural gas based on increasing AI demand and has had discussions with cloud computing companies looking to build onsite power generation.
Taken altogether, Energy Transfer has solid growth opportunties in front of it over the next several years.
Inexpensive stock
Despite Energy Transfer’s valuable midstream system, growth opportunities, and solid financial footing, its stock trades at one of the lowest valuations in the MLP midstream space.
Typically, investors value midstream companies using an enterprise-value-to-EBITDA (EV/EBITDA) multiple. The reason for this is twofold. The first is that enterprise value takes into consideration the amount of net debt a company carries on its balance sheet. These are capital-intensive businesses, so operators in the space typically carry debt to help fund their projects.
EBITDA, meanwhile, excludes non-cash depreciation expenses that would otherwise be included with earnings. Midstream companies spend money upfront on projects through capex, and those expenses are then depreciated over the useful life of the asset. By using EV/EBITDA, the costs of the projects are captured in its debt net, while EBITDA is more reflective of the company’s current operating profitability.
Based on this metric, Energy Transfer trades at an EV/EBITDA of 8.1 times based on 2025 estimates, well below its historical levels and one of the lowest valuations in the MLP space.
The midstream MLP sector as a whole, meanwhile, trades at a pretty large discount to where it did several years ago, with the industry trading at a 13.7 times average EV/EBITDA multiple between 2011 and 2016. With the industry as a whole in better financial shape than during this period, the sector could re-rate higher in the coming years if the midstream companies can show themselves to be AI energy winners.
Overall, given Energy Transfer’s current valuation and growth prospects, together with an attractive yield and growing distribution, the stock looks like a buy.
Should you invest $1,000 in Energy Transfer right now?
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Geoffrey Seiler has positions in Energy Transfer, Enterprise Products Partners, and Western Midstream Partners. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
3 Reasons to Buy Energy Transfer Stock Like There’s No Tomorrow was originally published by The Motley Fool