Philip Morris's Payout Ratio Problems, Netflix's Net Adds, And What Isn't Up With Domino's Pizza

| About: Netflix, Inc. (NFLX)

Summary

Visa, Caterpillar, Wells Fargo (1:42 - 7:03) A traffic light of CEO departures -- one green, one yellow, one red.

Philip Morris (8:25 - 14:15) The international tobacco company’s volume problems could be offset by smokeless tobacco.

Netflix (14:20 - 23:25) An examination of future international profitability for the streaming giant.

Domino's Pizza (23:25 - 29:13) Pizza lovers’ new favorite restaurant posted 13% same-store-sales; what that means for the future.

Debate debate (29:20 - 46:45) A vigorous preview of Wednesday night’s presidential debate.

Markets are up today across the board, buoyed by the Fed and by earnings results at bellwether companies. First up, there have been three large CEO departures in the last week, one flashing green, one flashing yellow, and one flashing red. Money-maker Visa (NYSE:V) has generally been executing well. The CEO departure, while worthy of an eyebrow-raise, doesn't appear to be an indictment on the future prospects of the company. The yellow machine maker Caterpillar (NYSE:CAT) is a different story. CEO Doug Oberhelman is no longer in charge after a series of missteps. It is unclear what the future path is, but last week's upgrade from Goldman Sachs may support the shares. Wells Fargo's (NYSE:WFC) red stagecoach is running a different line. Clearly CEO John Stumpf was forced out after an accounting fabrication scandal was poorly handled.

Andrew and Ben take a deep dive into Philip Morris (NYSE:PM). The pair look at sales volume trends, government excise taxes, and payout ratios as they assess the future prospects for the global tobacco company. Importantly, iQOS, the company's smokeless tobacco product, continues to perform well as management looks for this to catalyze future growth.

Next, Analyst Matt Krebsbach takes the stage for deep anecdotal and analytical dives into Netflix (NASDAQ:NFLX) and Domino's Pizza (NYSE:DPZ). Netflix showed tremendous subscriber growth in Q3 but Matt is concerned that international expansion will be costly. He outlines some reasons to think that international earnings may be less accretive than anticipated. Andrew shares a pizza story and the pair laud the impressive growth at Domino's in a quarter seemingly devoid of fundamental catalysts. Matt compares YUM's Pizza Hut to Domino's.

Finally, Ben returns to talk debate prep and what we can expect from the final presidential debate of the tumultuous 2016 campaign.

Follow us on Twitter

Comment and let us know a stock you'd like us to cover!

Disclosure: I am/we are long PM, WFC.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.