Stock Update: Q2 Results, Dividends, and Strong Financials – August 1, 2023

Welcome back to another daily blog post where I provide updates on my stock portfolio. In today’s post, we’ll be discussing the latest financial results, dividend declarations, and improved guidance from a few companies. These updates shed light on the performance of UFP Technologies, Diana Shipping Inc., Studio City International Holdings Limited, Melco, and Norwegian Cruise Line Holdings. So let’s dive into the exciting developments that took place in the second quarter of 2023!

UFP Technologies, Inc. Reports Strong Second Quarter Results: Time to Buy

UFP Technologies, Inc. (Nasdaq: UFPT), a leading designer and manufacturer of components, subassemblies, products, and packaging primarily for the medical market, has announced impressive financial results for its second quarter ended June 30, 2023.

The company reported net income of $11.9 million or $1.55 per diluted common share outstanding, surpassing last year’s second-quarter net income of $8.9 million or $1.17 per diluted common share outstanding. With sales reaching $100.0 million for the quarter, compared to $94.3 million in the same period last year, it’s evident that UFP Technologies is on a positive growth trajectory.

For the six-month period, net income was $21.6 million or $2.81 per diluted common share outstanding, a significant increase from the $13.8 million or $1.81 per diluted common share outstanding achieved in the same period last year. Sales for the same six-month period were $197.8 million, up from $165.6 million in 2022.

UFP Technologies’ Chairman & CEO, R. Jeffrey Bailly, expressed his satisfaction with the company’s second-quarter performance. Organic sales in Q2 grew by an impressive 13%, with MedTech sales boasting a growth rate of 16%. Furthermore, the company achieved an improvement in gross margins from 25.8% to 29.6% compared to the second quarter of last year, leading to a remarkable 40% improvement in operating income.

The recent acquisitions of DAS, Contech, and Advant Medical have been instrumental in driving UFP Technologies’ success. These businesses have not only opened up new sales opportunities but have also introduced cost-saving measures for the company and its clients. With the relocation of medical packaging production from Rhode Island and Galway, Ireland to the newly established Tijuana facility, customers will experience lower freight costs while the company enjoys reduced manufacturing expenses. This strategic move has proven to be profitable, with the Tijuana facility transitioning from startup losses to profitability rapidly.

Given UFP Technologies’ impressive financial results and the promising growth prospects presented by its recent acquisitions, it is highly recommended to consider buying this stock. The company’s strong performance in the medical market, combined with its continuous focus on expansion and cost optimization, positions it as a promising investment opportunity for the future.

Diana Shipping Inc. Reports Decrease in Net Income for Q2 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 decrease in net income for the second quarter of 2023. The company reported a net income of $10.4 million and net income attributed to common stockholders of $8.9 million, compared to $35.6 million and $34.2 million, respectively, for the same quarter in 2022.

The decrease in net income is mainly due to decreased time charter revenues, resulting from lower average charter rates. However, the company saw an increase in ownership days due to vessel acquisitions, partially offsetting the decrease.

Despite the decrease in net income, Diana Shipping Inc. has declared a dividend of $0.15 per share based on its results of operations. The dividend will be payable on or about September 8, 2023, to all shareholders of record.

While the decrease in net income is concerning, the dividend declaration suggests that the company is confident in its future prospects. Investors may consider holding onto the stock and monitoring the company’s performance closely.

Studio City International Holdings Limited Reports Significant Increase in Q2 2023 Revenue

Studio City International Holdings Limited (NYSE: MSC), a world-class integrated resort located in Cotai, Macau, has announced its unaudited financial results for the second quarter of 2023. The company reported total operating revenues of US$115.2 million for the quarter, a significant improvement compared to the negative US$1.9 million in the same quarter of the previous year.

This impressive growth can be attributed to several factors. First, the relaxation of COVID-19 restrictions in Macau earlier this year allowed for increased foot traffic and the subsequent rebound in revenue. Additionally, the openings of the Epic Tower and indoor waterpark in April 2023, as well as the launch of residency concerts, further contributed to the rise in non-gaming revenues. Studio City Casino generated gross gaming revenues of US$214.5 million in Q2 2023, indicating strong performance.

The company’s rolling chip volume also saw a significant increase, totaling US$789.5 million in the second quarter of 2023 compared to US$104.1 million in the same period last year. However, the rolling chip win rate declined from 5.33% in Q2 2022 to 1.43% in Q2 2023, falling below the expected range of 2.85%-3.15%.

Overall, Studio City’s improved financial results reflect a promising upward trajectory. The company’s ability to adapt and capture opportunities in the post-pandemic recovery of the tourism industry is commendable. With the continued relaxation of restrictions and the success of its non-gaming initiatives, Studio City is well-positioned for future growth.

Based on these positive developments, I recommend buying Studio City International Holdings Limited (NYSE: MSC) stock. The increasing revenues and successful expansion efforts indicate a favorable outlook for the company. Investors should closely monitor Studio City’s performance in the coming quarters to ensure sustained growth and profitability.

Melco Resorts & Entertainment Reports Record Q2 Financial Results

Melco Resorts & Entertainment Limited (Nasdaq: MLCO), a leading developer, owner, and operator of integrated resort facilities in Asia and Europe, has recently announced its unaudited financial results for the second quarter of 2023. The company reported a significant increase in total operating revenues, highlighting the successful recovery and growth in the gaming and non-gaming sectors.

During the second quarter of 2023, Melco recorded total operating revenues of US$947.9 million, a remarkable 220% increase compared to the same period last year. This impressive growth can be attributed to multiple factors, including the easing of COVID-19 restrictions in Macau, the opening of Studio City Phase 2’s Epic Tower and indoor waterpark, as well as the launch of residency concerts at Studio City. These endeavors have bolstered the performance of all gaming segments and non-gaming operations.

Furthermore, Melco’s operating income for the second quarter of 2023 was US$64.3 million, demonstrating a significant improvement compared to the operating loss of US$209.2 million during the same period in 2022. The company also achieved an Adjusted Property EBITDA of US$267.3 million, compared to a negative Adjusted Property EBITDA of US$13.8 million in the second quarter of 2022.

While Melco Resorts & Entertainment reported a net loss of US$23.4 million for the second quarter of 2023, it is worth noting that this represents a substantial decrease from the net loss of US$251.5 million in the second quarter of 2022. These positive financial results highlight the successful recovery and growth of Melco following the challenges posed by the COVID-19 pandemic.

As an investor, I am pleased with the impressive revenue growth and improved financial performance of Melco Resorts & Entertainment. With the continued relaxation of COVID-19 restrictions and the successful launch of new attractions, the company is well-positioned for further expansion and success in the coming quarters.

Based on the positive financial results and the promising outlook for Melco Resorts & Entertainment, I strongly recommend buying the stock. The growth potential and the company’s track record make it an attractive investment opportunity in the integrated resort industry. I am optimistic about the future prospects of Melco and believe that it will continue to perform well in the market.

Norwegian Cruise Line Holdings Reports Strong Second Quarter Results

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH), one of the world’s largest cruise companies, has released its second-quarter financial results and provided guidance for the rest of the year. The company reported record-breaking total revenue of $2.2 billion, up 33% from the same period in 2019. Additionally, Norwegian achieved a net income of $86.1 million, or $0.20 EPS, and exceeded its guidance for Adjusted EBITDA and Adjusted EPS.

The strong performance was driven by solid revenue growth, lower costs, and favorable fuel pricing. Occupancy rates improved to approximately 105%, reflecting the completion of the phased ramp-up. Total revenue per Passenger Cruise Day increased by approximately 15%, both as reported and in constant currency, compared to 2019.

Furthermore, the company demonstrated successful margin enhancement initiatives, with lower operating costs and improved efficiency. Norwegian’s Cumulative booked position for the remainder of 2023 is at record levels and at higher pricing, indicating strong demand for its services.

With $2.4 billion in liquidity at the end of the quarter, Norwegian Cruise Line Holdings is well-positioned for future growth and expansion.

Personal Thoughts:
The release of Norwegian Cruise Line Holdings’ strong second-quarter results underscores the company’s resilience and ability to bounce back from the challenges posed by the pandemic. The positive revenue growth, improved occupancy rates, and ongoing margin enhancement initiatives are all promising signs for investors.

Considering the company’s solid financial performance and optimistic outlook, I recommend buying Norwegian Cruise Line Holdings stock. The record levels of bookings and higher pricing indicate a strong market demand, which bodes well for future profitability.

Note: The recommendation to buy or sell stocks should always be based on individual research and financial goals.