Strong cash flows reflect financial stability, allowing companies to pay down debt, pursue growth opportunities, and shell out dividend payments. These companies are also better equipped to weather an economic downturn, providing another beneficial advantage for investors from a long-term standpoint.
And for those interested in investing in strong cash flows, several companies – Roku ROKU and Newmont NEM – recently posted record free cash flow levels.
Roku Profit Jumps
Roku similarly posted a double-beat relative to our consensus expectations, beating our EPS estimate by more than 65% and posting a 3.8% sales surprise. The profitability picture strengthened significantly, with gross profit climbing 27% YoY to $565 million. Free cash flow, on a trailing twelve-month basis, totaled $538.8 million, reflecting a new company record.
The EPS outlook across its current and next fiscal year have moved bullishly, with upward revisions coming in following the release.
Image Source: Zacks Investment Research
Roku’s platform revenue grew 28% year-over-year, with strong Advertising and Subscription results leading the charge. Total Streaming Hours also saw a nice 8% YoY climb, with the company also now reporting more than 100 million households worldwide use a device powered by the Roku TV operating system (OS) monthly.
Newmont Keeps Generating Cash
Newmont has benefited significantly from the rise in gold prices. The average gold price per oz reached $4,900 during the reported period, well above the $2,944 level in the same period last year. Free cash flow of $3.1 billion throughout the period reflected an all-time record.
Newmont’s cash-generating abilities have been a notable boost over recent periods thanks to the favorable backdrop. The amplified cash-generating abilities bring about many positives, such as buybacks, with NEM increasing its current share repurchase program following the favorable results.
The EPS outlook for its current and next fiscal year is very bullish, with expectations soaring for its current and next fiscal year.
Image Source: Zacks Investment Research
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA’s enormous potential back in 2016. Now, he has keyed in on what could be “the next big thing” in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
Newmont Corporation (NEM) : Free Stock Analysis Report
Roku, Inc. (ROKU) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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