This week has been a busy one, so I wanted to share a couple of earnings updates from companies that have reported Q1 results already, some portfolio changes, and a fair value adjustment on Jewett-Cameron.
Q1 Earnings Updates
The advertising giant Omncicom (OMC), which I own, reported another quarter of solid results. Compared to the prior year, organic revenue was up 4%, operating margin improved from 10.1% to 13.2%, and earnings per share was up an impressive 43%. Omnicom keeps humming along quarter after quarter, making it a low maintenance stock to own. I feel like the stock is pretty close to being fairly valued so there may not be much upside in appreciation, but they pay a decent dividend and have been buying back shares.
Bank OZK reported earnings the other day with record net income. I own the preferred shares of this company, and I like the management so I always follow their earnings calls. Earnings per share was up 7.1% to $1.51, meaning the bank is trading for around 7x earnings. Loans increased by 27% and deposits increased by 32%, while having a non-performing loan rate of 0.2%. Based on this growth, it doesn’t look like OZK is facing the headwinds that other regional banks are.
Jewett-Cameron is a stock that I currently do not own, but I profiled it in my Idea List series a while back. The company was trading around its net current asset value, but sold off during its latest earnings release. JCTCFs quarterly results saw sales increase slightly YoY to $8.23M, and the company lost a bit less money, but still lost $500k. Before I had a NCAV fair value of $5.85, with their updated balance sheet NCAV comes out to be $5.75. The stock was closing close to fair value, but sold off heavily after the earnings release, but has recovered back around to $5. If the stock dips back down to provide some more margin of safety, then I may buy some shares.
Portfolio Changes
In the past week or so I’ve been nibbling on a few stocks, adding to my current holdings of British American Tobacco, Alico, and Hurco Companies.
Berkshire AGM
In a couple of weeks is the Berkshire annual meeting. I will be there for several days attending the various events and hanging out with other investors, so if anyone wants to meet up feel free to send me a message!
That would be great! I’ll get into town Thursday afternoon, I’ll send you a DM at some point
Maybe we can meet at the Berkshire meeting for a quick hello 👋