Stocks I Own – May 29th, 2023 Update

Greetings investors! Today’s blog post covers the latest financial results and dividends declared by four companies we own stocks in. We’ll be discussing the Q1 2023 results announced by QIWI, Diana Shipping Inc., Costco Wholesale Corporation, and CSW Industrials. Additionally, we’ll be taking a look at NVIDIA’s financial results for the first quarter of its fiscal year 2024

QIWI Reports Strong Financial Results for Q1 2023

QIWI, a leading provider of payment and financial services in Russia and the CIS, has reported impressive financial results for Q1 2023. The company achieved a revenue of RUB 17,872 million, which is a YoY increase of 83.9%. Its adjusted EBITDA for Q1 2023 was RUB 4,479 million, up by 21.5% from Q1 2022. The adjusted net profit margin increased by 12.0 p.p. to reach 48.9%.

In its Payment Services (PS) segment, QIWI achieved a net revenue of RUB 6,944 million, up by 22.9% YoY. The payment net revenue yield slightly decreased by 0.1 p.p. to 1.08%. However, payment volume increased by 31.6% to reach RUB 469 billion. The company’s Digital Marketing (DM) segment also witnessed an impressive performance, achieving a net revenue of RUB 741 million, which is a YoY increase of 372.5%.

In my opinion, QIWI’s strong financial performance can be attributed to its innovative payment solutions and strategic expansion plans. The company has recently launched several new products and services, including QIWI Invest, a personal investment platform that allows users to invest in a variety of financial instruments. This diversification of revenue streams will help the company to minimize risks and sustain growth in the long term.

Considering QIWI’s impressive financial results and strategic initiatives, I recommend buying the stock. However, investors should be cautious and monitor any regulatory risks in Russia and the CIS. If any negative news emerges on this front, it may be advisable to sell the stock. Overall, QIWI’s strong Q1 2023 results bode well for its future growth and success.

Diana Shipping Inc. Reports Decrease in Net Income for Q1 2023

Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the ownership and bareboat charter-in of dry bulk vessels, has reported a net income of $22.7 million and net income attributed to common stockholders of $21.3 million for Q1 2023. This marks a decrease from the $26.0 million net income and $24.6 million net income attributed to common stockholders reported in Q1 2022.

The company’s time charter revenues for Q1 2023 were $72.6 million, an increase from $65.9 million in the same quarter last year. This was due to increased ownership days from vessel acquisitions, but was offset by decreased average charter rates compared to the same period in 2022. The Company has also declared a dividend on its common stock in the amount of $0.15 per share, payable on or about July 10, 2023, to shareholders of record as of June 12, 2023. The company is re-affirming its previously announced dividend guidance, declaring its intention to declare and pay quarterly dividends with respect to the next two quarters of 2023 in an amount of not less than $0.15 per share.

As a shareholder of Diana Shipping Inc., the decrease in net income is concerning. However, the increase in time charter revenues is a good sign and shows that the company is acquiring more vessels. Overall, I recommend holding onto the stock, but keeping an eye on future financial reports to ensure that the company’s revenues increase in the coming quarters. If the trend of decreased net income continues, it may be time to consider selling the stock.

Costco announces third quarter results: Net sales increase by 1.9%

Costco Wholesale Corporation announced its financial results for the third quarter and first 36 weeks of fiscal 2023, ended May 7, 2023. The company reported net sales of $52.60 billion for the quarter, which increased by 1.9% from the previous year. Additionally, net sales for the first 36 weeks increased by 5.5% to $160.28 billion compared to the previous year. The company reported net income of $1.30 billion for the quarter.

Comparable sales were reported as follows:

  • U.S: -0.1%
  • Canada: -1.0%
  • Other International: 4.1%
  • Total Company: 0.3%
  • E-commerce: -10.0%

The press release also noted that these sales numbers exclude the impacts from changes in gasoline prices and foreign exchange. Further, the company currently operates 853 warehouses across various countries, including the United States, Canada, Mexico, Japan, and the United Kingdom.

Personally, I am impressed with Costco’s ability to increase net sales in a challenging retail environment. Even though sales in the United States and Canada were down, their international sales increased and the company’s net income for the quarter also remained strong. I believe that Costco’s diversified global presence and its ability to pass on cost savings to its customers through economies of scale are the reasons behind its success.

Based on this positive news, I recommend holding onto the stock and taking advantage of any potential dips to purchase more. Costco’s long-term growth prospects look strong and I believe that the company will continue to deliver value to its shareholders.

CSW Industrials Reports Record Results for Fiscal Year 2023

CSW Industrials, Inc. (Nasdaq: CSWI) has announced record results for the fiscal 2023 fourth quarter and full year periods ended March 31, 2023. The company is a diversified industrial growth company with well-established, scalable platforms and domain expertise across three segments: Industrial Products, Coatings, and Sealants.

For the fiscal 2023 fourth quarter, total revenue increased by 12.9% to $195.7 million, with an organic growth rate of 10.5%. Net income attributed to CSWI surged 46.7% to $27.1 million and earnings per diluted share (EPS) rose by 48.7% to $1.74. EBITDA also increased by 32.8% to $49.4 million, with margin expansion of 370 bps to 25.2%. Fiscal 2023 Full Year Highlights were also impressive, with total revenue increasing by 21.0% to $757.9 million and net income attributed to CSWI increasing by 39.1% to $96.4 million. EPS increased by 41.2% to $6.20, and EBITDA increased by 30.6% to $174.1 million.

The company executed an interest rate swap to fix the interest rate at 3.85% plus margin for the first $100 million borrowing under its Revolving Credit Facility. Furthermore, it invested $58.3 million in acquisitions and $14.0 million in organic capital expenditures, while returning a total of $46.3 million to shareholders through share repurchases ($35.7 million) and dividends ($10.6 million).

Based on the fiscal year 2023 results, I am optimistic about CSW Industrials’ future. The record operating cash flows of $121.5 million and the improvement in balance sheet strength with a leverage ratio of approximately 1.3x is excellent news. I recommend buying the stock, as the company’s performance has shown a positive growth trend and maintained an impressive margin expansion.

NVIDIA Reports Record Data Center Revenue in Q1 Fiscal 2024

NVIDIA (NASDAQ: NVDA) reported impressive Q1 Fiscal 2024 results, with a record Data Center revenue of $4.28 billion and a quarterly revenue of $7.19 billion, up 19% from the previous quarter. Despite a 13% decline from a year ago, the Q1 earnings are promising, with GAAP earnings per diluted share for the quarter up 28% from a year ago, and non-GAAP earnings per diluted share up 24% from the previous quarter.

During the quarter, NVIDIA continued to lead the way in the accelerated computing and generative AI fields, with its entire data center product family in production. These products, including the H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand, and BlueField-3 DPU, are in high demand, leading NVIDIA to significantly increase its supply.

In addition, NVIDIA returned $99 million in cash dividends to shareholders during the quarter and will pay its next quarterly cash dividend of $0.04 per share on June 30, 2023.

Overall, NVIDIA’s strong Q1 Fiscal 2024 results and continued focus on innovation in the data center industry lead me to recommend buying the stock. As more businesses race to apply generative AI into every product, service, and process, NVIDIA’s leadership in this space is poised to pay off.

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