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NEWS_100 | Miller Value Partners, an investment management company, released its “Income Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 11.68% net of fees compared to a 3.98% return for the ICE BofA US High Yield Index. Also, the fund outperformed the S&P 500 Index which returned -7.56% in the quarter. The strategy was -23.61% down in 2022. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Miller Value Partners highlighted stocks like Carvana Co. (NYSE:CVNA) in the Q4 2022 investor letter. Headquartered in Tempe, Arizona, Carvana Co. (NYSE:CVNA) is a US-based e-commerce platform for cars. On January 20, 2023, Carvana Co. (NYSE:CVNA) stock closed at $6.49 per share. One-month return of Carvana Co. (NYSE:CVNA) was 60.25%, and its shares lost 95.89% of their value over the last 52 weeks. Carvana Co. (NYSE:CVNA) has a market capitalization of $1.153 billion.
Miller Value Partners made the following comment about Carvana Co. (NYSE:CVNA) in its Q4 2022 investor letter:
“Carvana Co. (NYSE:CVNA) 10.25% 5/1/2030 was the top detractor for the quarter. The auto retailer reported 3Q22 revenue of $3.39B, -2.7% Y/Y, below consensus of $3.71B, and gross profit per unit (GPU) of $3.5K, +4.2% sequentially, but -25.1% Y/Y, and below consensus of $3.74K. Adjusted EBITDA for the quarter came in at -$186MM, compared to 3Q21 EBITDA of $20MM, as the company sold 102.6K retail units in the quarter, -8.4% Y/Y. Management noted it has made strong progress in reducing selling, general, and administrative (SG&A) expenses on an absolute dollar basis, as the company is still striving to eventually achieve total GPU in excess of $4K and significant adjusted EBITDA profitability at current volume levels, although the timeline for achieving these goals is uncertain. During the quarter, multiple creditors, including Apollo and PIMCO, which account for ~70% of Carvana’s total outstanding unsecured debt, agreed to a cooperation agreement in the event of any debt restructuring negotiations with the company.”
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Used cars, used car, selling a used car
Copyright: sonyae / 123RF Stock Photo
Carvana Co. (NYSE:CVNA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Carvana Co. (NYSE:CVNA) at the end of the third quarter which was 47 in the previous quarter.
We discussed Carvana Co. (NYSE:CVNA) in another article and shared the list of most shorted stocks hedge funds are buying. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey. |
NEWS_101 | Short selling can be controversial, especially among management teams of companies whose stocks traders are betting that their prices will fall. And a new spike in alleged “naked short selling” among microcap stocks is making several management teams angry enough to threaten legal action:
First, some definitions:
Taking a long position means buying a stock and holding it, hoping the price will go up.
Shorting, or short selling, is when an investor borrows shares and immediately sells them, hoping he or she can buy them again later at a lower price, return them to the lender and pocket the difference.
Covering is when an investor with a short position buys the stock again to close a short position and return the shares to the lender.
If you take a long position, you might lose all your money. A stock can go to zero if a company goes bankrupt. But a short position is riskier. If the share price rises steadily after an investor has placed a short trade, the investor is sitting on an unrealized capital loss. This is why short selling traditionally has been dominated by professional investors who base this type of trade on heavy research and conviction.
Read: Short sellers are not evil, but they are misunderstood
Brokers require short sellers to qualify for margin accounts. A broker faces credit exposure to an investor if a stock that has been shorted begins to rise instead of going down. Depending on how high the price rises, the broker will demand more collateral from the investor. The investor may eventually have to cover and close the short with a loss, if the stock rises too much.
And that type of activity can lead to a short squeeze if many short sellers are surprised at the same time. A short squeeze can send a share price through the roof temporarily.
Short squeezes helped feed the meme-stock craze of 2021 that sent shares of GameStop Corp. GME, +10.45% and AMC Entertainment Holdings Inc. AMC, +2.54% soaring early in 2021. Some traders communicating through the Reddit WallStreetBets channel and in other social media worked together to try to force short squeezes in stocks of troubled companies that had been heavily shorted. The action sent shares of GameStop soaring from $4.82 at the end of 2020 to a closing high of $86.88 on Jan. 27, 2021, only for the stock to fall to $10.15 on Feb. 19, 2021, as the seesaw action continued for this and other meme stocks.
Naked shorting
Let’s say you were convinced that a company was headed toward financial difficulties or even bankruptcy, but its shares were still trading at a value you considered to be significant. If the shares were highly liquid, you would be able to borrow them through your broker for little or almost no cost, to set up your short trade.
But if many other investors were shorting the stock, there would be fewer shares available for borrowing. Then your broker would charge a higher fee based on supply and demand.
For example, according to data provided by FactSet on Jan. 23, 22.7% of GameStop’s shares available for trading were sold short — a figure that could be up to two weeks out-of-date, according to the financial data provider.
According to Brad Lamensdorf, who co-manages the AdvisorShares Ranger Equity Bear ETF HDGE, -2.65% , the cost of borrowing shares of GameStop on Jan. 23 was an annualized 15.5%. That cost increases a short seller’s risk.
What if you wanted to short a stock that had even heavier short interest than GameStop? Lamensdorf said on Jan. 23 that there were no shares available to borrow for Carvana Co. CVNA, +10.63% , Bed Bath & Beyond Inc. BBBY, -12.24% , Beyond Meat Inc. BYND, +11.31% or Coinbase Global Inc. COIN, +1.45% . If you wanted to short AMC shares, you would pay an annual fee of 85.17% to borrow the shares.
Starting last week, and flowing into this week, management teams at several companies with microcap stocks (with market capitalizations below $100 million) said they were investigating naked short selling — short selling without actually borrowing the shares.
This brings us to three more terms:
A short-locate is a service a short seller requests from a broker. The broker finds shares for the short seller to borrow.
A natural locate is needed to make a “proper” short-sale, according to Moshe Hurwitz, who recently launched Blue Zen Capital Management in Atlanta to specialize in short selling. The broker gives you a price to borrow shares and places the actual shares in your account. You can then short them if you want to.
A nonnatural locate is “when the broker gives you shares they do not have,” according to Hurwitz.
When asked if a nonnatural locate would constitute fraud, Hurwitz said “yes.”
How is naked short selling possible? According to Hurwitz, “it is incumbent on the brokers” to stop placing borrowed shares in customer accounts when supplies of shares are depleted. But he added that some brokers, even in the U.S., lend out the same shares multiple times, because it is lucrative.
“The reason they do it is when it comes time to settle, to deliver, they are banking on the fact that most of those people are day traders, so there would be enough shares to deliver.”
Hurwitz cautioned that the current round of complaints about naked short selling wasn’t unusual and even though short selling activity can push a stock’s price down momentarily, “short sellers are buyers in waiting.” They will eventually buy when they cover their short positions.
“But to really push a stock price down, you need long investors to sell,” he said.
Different action that can appear to be naked shorting
Lamensdorf said the illegal naked shorting that Verb Technology Co. VERB, +69.65% , Genius Group Ltd. GNS, +45.37% and other microcap companies have been recently complaining about might include activity that isn’t illegal.
An investor looking to short a stock for which shares weren’t available to borrow, or for which the cost to borrow shares was too high, might enter into “swap transactions or sophisticated over-the-counter derivative transactions,” to bet against the stock,” he said.
This type of trader would be “pretty sophisticated,” Lamensdorf said. He added that brokers typically have account minimums ranging from $25 million to $50 million for investors making this type of trade. This would mean the trader was likely to be “a decent-sized family office or a fund, with decent liquidity,” he said.
Don’t miss: This dividend-stock ETF has a 12% yield and is beating the S&P 500 by a substantial amount |
NEWS_102 | When it comes to investing, there are some useful financial metrics that can warn us when a business is potentially in trouble. Businesses in decline often have two underlying trends, firstly, a declining return on capital employed (ROCE) and a declining base of capital employed. Ultimately this means that the company is earning less per dollar invested and on top of that, it's shrinking its base of capital employed. Having said that, after a brief look, China Yuchai International (NYSE:CYD) we aren't filled with optimism, but let's investigate further.
What Is Return On Capital Employed (ROCE)?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for China Yuchai International:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.024 = CN¥305m ÷ (CN¥25b - CN¥13b) (Based on the trailing twelve months to June 2022).
Therefore, China Yuchai International has an ROCE of 2.4%. Ultimately, that's a low return and it under-performs the Machinery industry average of 11%.
See our latest analysis for China Yuchai International
roce
Above you can see how the current ROCE for China Yuchai International compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
The Trend Of ROCE
In terms of China Yuchai International's historical ROCE movements, the trend doesn't inspire confidence. Unfortunately the returns on capital have diminished from the 11% that they were earning four years ago. On top of that, it's worth noting that the amount of capital employed within the business has remained relatively steady. Companies that exhibit these attributes tend to not be shrinking, but they can be mature and facing pressure on their margins from competition. If these trends continue, we wouldn't expect China Yuchai International to turn into a multi-bagger.
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On a side note, China Yuchai International's current liabilities are still rather high at 50% of total assets. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower.
The Key Takeaway
In summary, it's unfortunate that China Yuchai International is generating lower returns from the same amount of capital. Long term shareholders who've owned the stock over the last five years have experienced a 54% depreciation in their investment, so it appears the market might not like these trends either. That being the case, unless the underlying trends revert to a more positive trajectory, we'd consider looking elsewhere.
One more thing, we've spotted 2 warning signs facing China Yuchai International that you might find interesting.
For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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NEWS_103 | LAS VEGAS and RENO, Nev., Jan. 23, 2023 /PRNewswire/ -- Caesars Entertainment, Inc. (NASDAQ: CZR) (the "Company") today announced that the Company, intends to offer, subject to market and other conditions, $1,250.0 million aggregate principal amount of senior secured notes due 2030 (the "Notes") in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to persons outside the United States under Regulation S of the Securities Act. The Notes will be guaranteed on a senior secured basis by each existing and future wholly-owned domestic subsidiary of the Company that is a guarantor with respect to the Company's senior secured credit facilities (the "CEI Credit Agreement") and its existing 6.25% Senior Secured Notes due 2025 (the "Subsidiary Guarantors"), once certain regulatory approvals are obtained. The Notes and guarantees of the Notes will be the Issuer's and the Subsidiary Guarantors' senior secured obligations and, once certain regulatory approvals are obtained, secured on a first-priority pari passu basis on substantially all of the property and assets of the Issuer and the Subsidiary Guarantors, now owned or hereafter acquired by the Issuer and any Subsidiary Guarantor, that secure the obligations under the Company's senior secured credit facilities and its existing 6.25% Senior Secured Notes due 2025.
(PRNewsfoto/Caesars Entertainment Inc.)
Concurrently with the issuance of the Notes, the Company expects to enter into an amendment to the CEI Credit Agreement to provide for, among other things, a new $1.750 billion senior secured term loan facility (the "New Term B Loan"). The closing of the New Term B Loan under the CEI Credit Agreement is not a condition to the closing of the sale of the Notes. The Company intends to apply the net proceeds of the sale of the Notes, the New Term B Loan, borrowings under the Company's existing revolving credit facility and cash on hand to (i) repay all of the Term B Loans of Caesars Resort Collection, LLC, a wholly-owned subsidiary of the Company, together with all accrued interest, fees and premiums thereon, and (ii) pay fees and expenses related to the foregoing.
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The Notes will be offered to persons reasonably believed to be qualified institutional buyers under Rule 144A of the Securities Act and to persons outside the United States under Regulation S of the Securities Act. The Notes will not be registered under the Securities Act, and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-looking Statements
This announcement includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding our strategies, objectives and plans for future development or acquisitions of properties or operations, as well as expectations, future operating results, trends and other information that is not historical information. When used in this report, the terms or phrases such as "anticipates," "believes," "projects," "plans," "intends," "expects," "might," "may," "estimates," "could," "should," "would," "will likely continue," and variations of such words or similar expressions are intended to identify forward-looking statements. Specifically, forward-looking statements may include, among others, statements concerning the offering, the New Term B Loan or the expected use of proceeds thereof. Such statements are all subject to risks, uncertainties and changes in circumstances that could significantly affect the future results and business of the Company ("we," "us," "our" or other similar terms).
Any forward-looking statements are based upon underlying assumptions, including any assumptions mentioned with the specific statements, as of the date such statements were made. Such assumptions are in turn based upon internal estimates and analyses of market conditions and trends, management plans and strategies, economic conditions and other factors. Such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control, and are subject to change. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend upon future circumstances that may not occur. Actual results and trends may differ materially from any future results, trends, performance or achievements expressed or implied by such statements. Forward-looking statements speak only as of the date they are made, and we assume no duty to update forward-looking statements. Forward-looking statements should not be regarded as a representation by us or any other person that the forward-looking statements will be achieved. Undue reliance should not be placed on any forward-looking statements. Some of the contingencies and uncertainties to which any forward-looking statement contained herein are subject include, but are not limited to, the following: (a) the effects of COVID-19, inflation, increased fuel prices, supply chain shortages, labor shortages and other economic and market conditions, including changes in consumer discretionary spending from such factors, on our business, financial results and liquidity; (b) our ability to successfully operate our digital betting and iGaming platform and expand its user base; (c) risks associated with our leverage and our ability to reduce our leverage; (d) the effects of competition, including new competition in certain of our markets, on our business and results of operations; and (e) additional factors discussed in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the Securities and Exchange Commission.
In light of these and other risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur. These forward-looking statements speak only as of the date of this press release, even if subsequently made available on our website or otherwise, and we do not intend to update publicly any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made, except as may be required by law.
Cision
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SOURCE Caesars Entertainment, Inc. |
NEWS_104 | Analyst Report: Caesars Entertainment, Inc.
Caesars Entertainment includes around 50 domestic gaming properties across Las Vegas (50% of 2021 EBITDAR before corporate and digital expenses) and regional (63%) markets. Additionally, the company hosts managed properties and digital assets, the later of which produced material EBITDA losses in 2021. Caesars' U.S. presence roughly doubled with the 2020 acquisition by Eldorado, which built its first casino in Reno, Nevada, in 1973 and expanded its presence through prior acquisitions to over 20 properties before merging with legacy Caesars. Caesars' brands include Caesars, Harrah’s, Tropicana, Bally’s, Isle, and Flamingo. Also, the company owns the U.S. portion of William Hill (it sold the international operation in 2022), a digital sports betting platform. |
NEWS_105 | Shares of Caesars Entertainment Inc. CZR, +5.93% were ahead about 3% in premarket trading Monday after the hotel and casino operator suggested that it expects revenue for its latest quarter to exceed the consensus view. Caesars anticipates that it generated $2.811 billion to $2.831 billion in its December-ended quarter, according to a filing with the Securities and Exchange Commission. The FactSet consensus was for $2.776 billion in revenue. The company is formally due to report fourth-quarter results on Feb. 21. Caesars also announced Monday that it will offer $1.25 billion in senior secured notes. |
NEWS_106 | PARIS, January 23, 2023--(BUSINESS WIRE)--Regulatory News:
In accordance with the authorization given by the ordinary shareholders’ general meeting on May 25, 2022 to trade on its shares and pursuant to applicable law on share repurchase, TotalEnergies SE (LEI: 529900S21EQ1BO4ESM68) (Paris:TTE) (LSE:TTE) (NYSE:TTE) declares the following purchases of its own shares (FR0000120271) from January 16 to January 20, 2023:
Transaction date Total daily
volume (number
of shares) Daily weighted
average purchase
price of the shares
(EUR/share) Amount of
transactions
(EUR) Market
(MIC
Code) 16/01/2023 357,064 59.889193 21,384,274.81 XPAR 16/01/2023 140,000 59.915554 8,388,177.56 CEUX 16/01/2023 25,000 59.943848 1,498,596.20 TQEX 16/01/2023 15,000 59.953219 899,298.29 AQEU 17/01/2023 351,522 59.237557 20,823,304.51 XPAR 17/01/2023 150,000 59.234959 8,885,243.85 CEUX 17/01/2023 25,000 59.241293 1,481,032.33 TQEX 17/01/2023 15,000 59.253327 888,799.91 AQEU 18/01/2023 346,619 59.797431 20,726,925.74 XPAR 18/01/2023 150,000 59.810865 8,971,629.75 CEUX 18/01/2023 25,000 59.799085 1,494,977.13 TQEX 18/01/2023 15,000 59.780034 896,700.51 AQEU 19/01/2023 365,076 58.463725 21,343,702.87 XPAR 19/01/2023 150,000 58.465898 8,769,884.70 CEUX 19/01/2023 25,000 58.486472 1,462,161.80 TQEX 19/01/2023 10,000 58.568419 585,684.19 AQEU 20/01/2023 355,282 59.026739 20,971,137.89 XPAR 20/01/2023 140,411 59.053210 8,291,720.27 CEUX 20/01/2023 29,110 59.045663 1,718,819.25 TQEX 20/01/2023 19,426 59.050351 1,147,112.12 AQEU Total 2,709,510 59.283481 160,629,183.65
Transaction details
In accordance with Article 5(1)(b) of Regulation (EU) No 596/2014 (the Market Abuse Regulation) a full breakdown of the individual trades are disclosed on the TotalEnergies website: https://totalenergies.com/investors/shares-and-dividends/total-shares/info/company-share-transactions
About TotalEnergies
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20230123005608/en/
Contacts
TotalEnergies contacts
Media Relations: +33 1 47 44 46 99 l presse@totalenergies.com l @TotalEnergiesPR
Investor Relations: +33 1 47 44 46 46 l ir@totalenergies.com |
NEWS_107 | T2 Biosystems, Inc.
Achieved record sepsis product revenue and sepsis-driven T2Dx Instrument units in 2022
LEXINGTON, Mass., Jan. 23, 2023 (GLOBE NEWSWIRE) -- T2 Biosystems, Inc. (NASDAQ:TTOO), a leader in the rapid detection of sepsis-causing pathogens and antibiotic resistance genes, today announced preliminary unaudited financial and operational results for the fourth quarter and full year 2022.
Full Year 2022 and Recent Highlights (unaudited)
Achieved full year 2022 total revenue of $22.3 million, including product revenue of $11.3 million and research contribution revenue of $11.0 million
Achieved fourth quarter total revenue of $5.5 million, including product revenue of $2.2 million and research contribution revenue of $3.3 million
Achieved record full year 2022 sepsis and related product revenue globally, and record fourth quarter sepsis test revenue in the U.S.
Achieved record full year 2022 sepsis-driven T2Dx ® Instruments, totaling 51 contracts, consisting of 27 from the U.S. and 24 from outside the U.S.
Advanced U.S. clinical trials for the T2Resistance ® Panel and T2Biothreat™ Panel
Initiated studies to expand the T2Bacteria ® Panel to include detection of Acinetobacter baumannii, the tenth most common pathogen that has a crude ICU mortality rate of 34.0% to 43.4%
Received FDA Breakthrough Device Designation and LymeX Award for the T2Lyme™ Panel, and announced plans to complete the development of, and commercialize, the T2Lyme Panel
Implemented expense reductions and cost of goods improvements during the second quarter of 2022 reducing our workforce and decreasing operating expenses by approximately 20%
Cash, cash equivalents, and restricted cash totaled $11.9 million as of December 31, 2022
“We made considerable progress across the business during 2022, achieving record sepsis product revenue and sepsis-driven T2Dx Instrument units. We are very excited by the progress on our near-term new product pipeline, the advancement of the U.S. clinical trials for the T2Resistance Panel and the T2Biothreat Panel, and the development of plans for the T2Lyme Panel and expanded T2Bacteria Panel,” stated John Sperzel, Chairman and CEO of T2 Biosystems. “Heading into 2023, we believe we are well-positioned to accelerate product sales growth, enhance product gross margins, and drive toward profitability.”
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The Company’s fourth quarter and full year 2022 financial results are preliminary and are subject to the completion of the audit of the Company’s 2022 financial statements. Complete fourth quarter and full year 2022 financial results will be announced in March.
About T2 Biosystems
T2 Biosystems, a leader in the rapid detection of sepsis-causing pathogens and antibiotic resistance genes, is dedicated to improving patient care and reducing the cost of care by helping clinicians effectively treat patients faster than ever before. T2 Biosystems’ products include the T2Dx® Instrument, T2Bacteria® Panel, T2Candida® Panel, T2Resistance® Panel, and T2SARS-CoV-2™ Panel and are powered by the Company’s proprietary T2 Magnetic Resonance (T2MR®) technology. T2 Biosystems has an active pipeline of future products, including the T2Cauris™ Panel, T2Lyme™ Panel, T2Biothreat Panel, as well as additional products for the detection of bacterial and fungal pathogens and associated antimicrobial resistance markers.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our revenue results and cash balance, financial outlook, cost improvement measures, timing of completion of clinical trials, anticipated strategic priorities, status of product development pipeline, product demand, commitments or opportunities, and growth expectations or targets, as well as statements that include the words “expect,” “intend,” “plan”, “believe”, “project”, “forecast”, “estimate,” “may,” “should,” “anticipate,” and similar statements of a future or forward looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, (i) any inability to (a) realize anticipated benefits from commitments, contracts or products; (b) successfully execute strategic priorities; (c) bring products to market; (d) expand product usage or adoption; (e) obtain customer testimonials; (f) accurately predict growth assumptions; (g) realize anticipated revenues; (h) incur expected levels of operating expenses; or (i) increase the number of high-risk patients at customer facilities; (ii) failure of early data to predict eventual outcomes; (iii) failure to make or obtain anticipated FDA filings or clearances within expected time frames or at all; or (iv) the factors discussed under Item 1A. “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the U.S. Securities and Exchange Commission, or SEC, on March 23, 2022, and other filings the company makes with the SEC from time to time. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While the company may elect to update such forward-looking statements at some point in the future, unless required by law, it disclaims any obligation to do so, even if subsequent events cause its views to change. Thus, no one should assume that the Company’s silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing the company’s views as of any date subsequent to the date of this press release.
Investor Contact:
Philip Trip Taylor, Gilmartin Group
ir@T2Biosystems.com
415-937-5406
|
NEWS_108 | LAS VEGAS and RENO, Nev., Jan. 23, 2023 /PRNewswire/ -- Caesars Entertainment, Inc. (NASDAQ: CZR) (the "Company," "Caesars" or the "Issuer") today announced the pricing of its previously announced offering of Senior Secured Notes due 2030 (the "Notes") at an interest rate of 7.00% per annum and an issue price equal to 100% of the principal amount of the Notes. The offering is expected to close on or about February 6, 2023, subject to customary closing conditions. The Notes were offered in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to persons outside the United States under Regulation S of the Securities Act. The aggregate principal amount of the Notes to be issued in the offering was increased to $2,000.0 million from the previously announced $1,250.0 million.
(PRNewsfoto/Caesars Entertainment Inc.)
The Notes will be guaranteed on a senior secured basis by each existing and future wholly-owned domestic subsidiary of the Company that is a guarantor with respect to the Company's senior secured credit facilities (the "CEI Credit Agreement") and its existing 6.25% Senior Secured Notes due 2025 (the "Subsidiary Guarantors"), once certain regulatory approvals are obtained. The Notes and guarantees of the Notes will be the Issuer's and the Subsidiary Guarantors' senior secured obligations and, once certain regulatory approvals are obtained, secured on a first-priority pari passu basis on substantially all of the property and assets of the Issuer and the Subsidiary Guarantors, now owned or hereafter acquired by the Issuer and any Subsidiary Guarantor, that secure the obligations under the Company's senior secured credit facilities and its existing 6.25% Senior Secured Notes due 2025.
Concurrently with the issuance of the Notes, the Company expects to enter into an amendment to the CEI Credit Agreement to provide for, among other things, a new approximately $1.750 billion senior secured term loan facility (the "New Term B Loan"). The closing of the New Term B Loan under the CEI Credit Agreement is not a condition to the closing of the sale of the Notes. The Company intends to apply the net proceeds of the sale of the Notes, the New Term B Loan, and cash on hand, (i) to repay all of the Term B Loans of Caesars Resort Collection, LLC, a wholly-owned subsidiary of the Company("CRC"), together with all accrued interest, fees and premiums thereon, and (ii) to pay fees and expenses related to the foregoing, and any remaining proceeds therefrom will be used by the Company for general corporate purposes, including, without limitation, the potential repayment of a portion of CRC's outstanding Term B-1 Loans.
The Notes were offered to persons reasonably believed to be qualified institutional buyers under Rule 144A of the Securities Act and to persons outside the United States under Regulation S of the Securities Act. The Notes will not be registered under the Securities Act, and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-looking Statements
This announcement includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding our strategies, objectives and plans for future development or acquisitions of properties or operations, as well as expectations, future operating results, trends and other information that is not historical information. When used in this report, the terms or phrases such as "anticipates," "believes," "projects," "plans," "intends," "expects," "might," "may," "estimates," "could," "should," "would," "will likely continue," and variations of such words or similar expressions are intended to identify forward-looking statements. Specifically, forward-looking statements may include, among others, statements concerning the offering, the New Term B Loan or the expected use of proceeds thereof. Such statements are all subject to risks, uncertainties and changes in circumstances that could significantly affect the future results and business of the Company ("we," "us," "our" or other similar terms).
Any forward-looking statements are based upon underlying assumptions, including any assumptions mentioned with the specific statements, as of the date such statements were made. Such assumptions are in turn based upon internal estimates and analyses of market conditions and trends, management plans and strategies, economic conditions and other factors. Such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control, and are subject to change. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend upon future circumstances that may not occur. Actual results and trends may differ materially from any future results, trends, performance or achievements expressed or implied by such statements. Forward-looking statements speak only as of the date they are made, and we assume no duty to update forward-looking statements. Forward-looking statements should not be regarded as a representation by us or any other person that the forward-looking statements will be achieved. Undue reliance should not be placed on any forward-looking statements. Some of the contingencies and uncertainties to which any forward-looking statement contained herein are subject include, but are not limited to, the following: (a) the effects of COVID-19, inflation, increased fuel prices, supply chain shortages, labor shortages and other economic and market conditions, including changes in consumer discretionary spending from such factors, on our business, financial results and liquidity; (b) our ability to successfully operate our digital betting and iGaming platform and expand its user base; (c) risks associated with our leverage and our ability to reduce our leverage; (d) the effects of competition, including new competition in certain of our markets, on our business and results of operations; and (e) additional factors discussed in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the Securities and Exchange Commission.
In light of these and other risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur. These forward-looking statements speak only as of the date of this press release, even if subsequently made available on our website or otherwise, and we do not intend to update publicly any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made, except as may be required by law.
Source: Caesars Entertainment, Inc; CZR
Cision
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SOURCE Caesars Entertainment, Inc. |
NEWS_109 | Citizens Community Bancorp, Inc. (CZWI) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 22.50%. A quarter ago, it was expected that this company would post earnings of $0.36 per share when it actually produced earnings of $0.40, delivering a surprise of 11.11%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Citizens Community Bancorp, Inc. , which belongs to the Zacks Financial - Savings and Loan industry, posted revenues of $17.35 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 4.52%. This compares to year-ago revenues of $18.79 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Citizens Community Bancorp, Inc. Shares have added about 2.1% since the beginning of the year versus the S&P 500's gain of 3.5%.
What's Next for Citizens Community Bancorp, Inc.
While Citizens Community Bancorp, Inc. Has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
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Ahead of this earnings release, the estimate revisions trend for Citizens Community Bancorp, Inc. Unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.38 on $16.3 million in revenues for the coming quarter and $1.52 on $67.25 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Savings and Loan is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Northfield Bancorp (NFBK), has yet to report results for the quarter ended December 2022.
This holding company for Northfield Bank is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +5.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Northfield Bancorp's revenues are expected to be $43.79 million, up 2.7% from the year-ago quarter.
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NEWS_110 | TELUS Communications Inc
VANCOUVER, British Columbia, Jan. 23, 2023 (GLOBE NEWSWIRE) -- Today, TELUS announced the formation of TELUS Consumer Solutions, to elevate TELUS’ legacy of industry-leading customer service and meet shifting customer demands for a full range of innovative and integrated products. TELUS Consumer Solutions brings together Mobility Solutions and Home Solutions & Customer Excellence into one unified consumer team, led by Zainul Mawji as Executive Vice-president and President, TELUS Consumer Solutions. TELUS also announced the appointment of Jim Senko to the newly created role of Chief Product Officer. As Executive Vice-president and Chief Product Officer, TELUS Consumer Solutions, Jim will establish an integrated development function and lead product innovation, enabling TELUS to seamlessly deliver best-in-class solutions for its customers.
“At TELUS, we consistently seek opportunities to advance our organization and our product offerings strategically in order to exceed the ever-evolving expectations of the market and Canadians. The changes announced today represent the next chapter of TELUS’ exciting growth journey, propelling our efforts to optimize our market performance and capitalize on synergies across our company to fuel our long-term success,” said Darren Entwistle, President and CEO, TELUS. “We are very pleased to establish these new roles for Zainul and Jim, both of whom are exceptionally talented leaders with proven track records of success. Together, they will drive the integration of our wireless, wireline and security solutions organizations through our differentiated service offerings and world-leading execution, enabling positive outcomes for our customers and communities, our investors and our team members in Canada’s dynamic marketplace.”
Jim Senko was chosen to establish the role of Chief Product Officer, TELUS Consumer Solutions due to his proven track record in delivering innovative programmes and exceptional outcomes for TELUS’ wireless customers. While Jim has made the personal decision to retire from TELUS at the end of 2023, he and Zainul will spend the year laying the groundwork for the team's ongoing success with a clear strategy and succession plan. “For more than two decades, Jim’s unwavering dedication to TELUS and our team, alongside his incredible knowledge of our business, have set a remarkably high standard of excellence for team members across our company,” continued Entwistle. “I am sincerely grateful to Jim for allowing us to benefit from his tremendous expertise and knowledge for the remainder of 2023, as he establishes the long-term vision and strategy for our Chief Product Officer role.”
In her new role as Executive Vice-president and President of TELUS Consumer Solutions, Zainul Mawji will oversee the end-to-end design and delivery of TELUS products and services, and ultimately, offer customers the integrated experience they are looking for. Under her guidance, this newly expanded business unit will help to drive enhanced collaboration and execution as a unified consumer team. As a member of the TELUS team for 22 years, Zainul is a proven and highly regarded leader having held increasingly senior positions across technology development, marketing, and customer service, overseeing more than 11,000 team members. Her unparalleled experience and expertise in scaling new technology is foundational to how she champions her team to drive innovative experiences and solutions focused on improving the lives of Canadians.
About TELUS
TELUS (TSX: T, NYSE: TU) is a dynamic, world-leading communications technology company with $17 billion in annual revenue and 17 million customer connections spanning wireless, data, IP, voice, television, entertainment, video, and security. Our social purpose is to leverage our global-leading technology and compassion to drive social change and enable remarkable human outcomes. Our longstanding commitment to putting our customers first fuels every aspect of our business, making us a distinct leader in customer service excellence and loyalty. The numerous, sustained accolades TELUS has earned over the years from independent, industry-leading network insight firms showcase the strength and speed of TELUS’ global-leading networks, reinforcing our commitment to provide Canadians with access to superior technology that connects us to the people, resources and information that make our lives better.
Operating in 30 countries around the world, TELUS International (TSX and NYSE: TIXT) is a leading digital customer experience innovator that designs, builds, and delivers next-generation solutions, including AI and content moderation, for global and disruptive brands across high-growth industry verticals, including tech and games, communications and media and eCommerce and fintech.
TELUS Health is a global healthcare company, which provides employee and family preventative healthcare and wellness solutions. Our TELUS team, along with our 100,000 health professionals, are leveraging the combination of TELUS’ strong digital and data analytics capabilities with our unsurpassed client service to dramatically improve remedial, preventative and mental health outcomes covering over 60 million lives, and growing, around the world. As the largest provider of digital solutions and digital insights of its kind, TELUS Agriculture & Consumer Goods enables efficient and sustainable production from seed to store, helping improve the safety and quality of food and other goods in a way that is traceable to end consumers.
Driven by our determination and vision to connect all citizens for good, our deeply meaningful and enduring philosophy to give where we live has inspired TELUS, our team members and retirees to contribute more than $900 million, in cash, in-kind contributions, time and programs, and 1.8 million days of service since 2000. This unprecedented generosity and unparalleled volunteerism have made TELUS the most giving company in the world. Together, let’s make the future friendly.
For more information about TELUS, please visit telus.com, follow us @TELUSNews on Twitter and @Darren_Entwistle on Instagram.
For media inquiries, please contact:
Brandi Rees
TELUS Public Relations
brandi.rees@telus.com
|
NEWS_111 | If you buy and hold a stock for many years, you'd hope to be making a profit. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the TELUS Corporation (TSE:T) share price is up 24% in the last five years, that's less than the market return. But if you include dividends then the return is market-beating. Unfortunately the share price is down 2.7% in the last year.
So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.
View our latest analysis for TELUS
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During five years of share price growth, TELUS achieved compound earnings per share (EPS) growth of 5.3% per year. This EPS growth is higher than the 4% average annual increase in the share price. Therefore, it seems the market has become relatively pessimistic about the company.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We know that TELUS has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, TELUS' TSR for the last 5 years was 56%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!
Story continues
A Different Perspective
TELUS provided a TSR of 1.8% over the last twelve months. But that was short of the market average. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 9% over five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 3 warning signs for TELUS (2 make us uncomfortable!) that you should be aware of before investing here.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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NEWS_112 | Citizens Community Bancorp, Inc.
EAU CLAIRE, Wis., Jan. 23, 2023 (GLOBE NEWSWIRE) -- Citizens Community Bancorp, Inc. (the “Company”) (Nasdaq: CZWI), the parent company of Citizens Community Federal N.A. (the “Bank” or “CCFBank”), today reported earnings of $4.7 million and earnings per diluted share of $0.45 for the quarter ended December 31, 2022, compared to $4.0 million and $0.38 per diluted share for the quarter ended September 30, 2022, and $6.1 million and $0.58 per diluted share for the quarter ended December 31, 2021, respectively. For the fiscal year ended December 31, 2022, earnings were $17.8 million, or $1.69 per diluted share, compared to earnings of $21.3 million, or $1.98 per diluted share for the prior year.
The Company’s fourth quarter 2022 operating results reflected the following changes from the third quarter of 2022: (1) higher non-interest income of $0.4 million due to increases in net gains on investment securities of $0.8 million due to the write-up on equity securities to estimated fair value, partially offset by lower fee income; (2) lower non-interest expense of $0.9 million primarily due to various compensation decreases and gains on sale of repossessed assets; and (3) higher loan loss provision due to loan growth.
“Our fourth quarter results reflect strong loan growth and improved operating efficiencies,” stated Stephen Bianchi, Chairman, President and Chief Executive Officer. “In anticipation of inflationary increases within vendor contracts and higher compensation expense, our team continued to identify expense savings including the closing of two branches during the fourth quarter and one branch during the prior quarter. Net loan growth of 2.6% compared to the linked quarter was solid, although we see annual loan growth moderating to low single digit percentage growth in 2023 and typically Q1 is challenging as winter persists. Higher interest rates also appear to be affecting new project feasibility, but we continue to see unemployment below national averages in our markets and customer attitudes are generally positive about the coming year.”
Book value per share was $16.03 at December 31, 2022, compared to $15.59 at September 30, 2022, and $16.27 at December 31, 2021. Tangible book value per share (non-GAAP)1 was $12.77 at December 31, 2022, compared to $12.32 at September 30, 2022, and $12.90 at December 31, 2021. For the quarter, tangible book value increased by net income and intangible amortization, partially offset by an increase in unrealized losses in the securities available for sale portfolio. These unrealized losses have negatively impacted both book and tangible book value in the second, third and fourth quarters, with the amount of the unrealized loss moderating in the third and fourth quarters of 2022. For the year, net income was mostly offset by the unrealized loss impact on book value resulting in tangible book value per share declining slightly at December 31, 2022 compared to one year earlier.
December 31, 2022 Highlights: (as of or for the 3-month period ended December 31, 2022 compared to September 30, 2022 and December 31, 2021.)
Quarterly earnings of $4.7 million, or $0.45 per diluted share for the quarter ended December 31, 2022, increased from the quarter ended September 30, 2022, earnings of $4.0 million or $0.38 per diluted share, and decreased from the quarter ended December 31, 2021, earnings of $6.1 million or $0.58 per diluted share.
Quarterly earnings, as adjusted (non-GAAP) 1 , were $5.2 million, or $0.49 per diluted share for the quarter ended December 31, 2022, compared to $4.2 million or $0.40 per diluted share for the quarter ended September 30, 2022, and $6.1 million or $0.58 per diluted share for the fourth quarter ended December 31, 2021.
Earnings for the year ended December 31, 2022, were $17.8 million, or $1.69 per share, which is a decrease from $21.3 million, or $1.98 per share, for the prior year. The Company grew net interest income, despite lower SBA PPP net loan fee accretion in 2022 compared to 2021. The positive benefit of higher net interest income was more than offset by higher provision for loan losses, lower gain on sale of loans and a modest increase in non-interest expense. The non-interest expense increase in 2022 reflected the new market tax credit depletion and branch closure expenses. Annual earnings as adjusted (non-GAAP) 1 were $18.5 million, or $1.76 per diluted share for the year ended December 31, 2022, compared to $21.3 million, or $1.99 per diluted share for the year ended December 31, 2021.
Net interest income was flat from the third quarter of 2022 at $14.5 million and increased $0.1 million from the fourth quarter of 2021 and $2.7 million for the year ended December 31, 2022, to $56.4 million. Net interest income was positively impacted by loan growth, the contractual increase in loan and investment yields and lower interest expense on debt due to the mid-August redemption of $15 million of 6.75% subordinated debt. Meanwhile, interest expense on deposits and FHLB borrowed funds increased due to repricing of deposits to higher rates and a larger balance of FHLB borrowings.
The net interest margin without SBA PPP net loan fee accretion and loan purchase accretion was flat relative to the previous quarter, ending seven quarters of net interest margin expansion. For the quarter ended December 31, 2022, the net interest margin without SBA PPP net loan fee accretion and loan purchase accretion was 3.33% compared to 3.09% for the comparable quarter one year earlier.
The provision for loan losses for the quarter ended December 31, 2022, was $0.70 million due to loan growth, compared to $0.38 million for the quarter ended September 30, 2022, and $1.48 million for the year ended December 31, 2022. No loan loss provision was realized during the quarter ended December 31, 2021, or the year ended December 31, 2021, due to lower CARES Act Section 4013 deferrals, low net charge-off or low net recoveries, decreases in criticized assets and improving economic conditions in our markets.
The efficiency ratio improved to 61% for the quarter ended December 31, 2022, from 64% for the quarter September 30, 2022.
Originated loans increased by $46.3 million during the fourth quarter of 2022, with strong originations in commercial real estate, multi-family real estate and residential mortgages held in the loan portfolio. As a result of current market conditions, residential 10/1 ARM loan originations were added to the portfolio. The acquired loan portfolio declined $10.5 million.
Nonperforming assets were $12.7 million at December 31, 2022 compared to $12.6 million at September 30, 2022.
Substandard loans decreased by $2.9 million to $17.3 million at December 31, 2022, compared to $20.2 million at September 30, 2022.
Special mention loans decreased $8.0 million during the quarter ended December 31, 2022.
The Company repurchased 58 thousand shares of the Company’s common stock in the fourth quarter. As of December 31, 2022, approximately 243 thousand shares remain available for repurchase under the current share repurchase authorization.
Stockholders’ equity as a percent of total assets was 9.20% at December 31, 2022, compared to 9.17% at September 30, 2022. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP) 1 was 7.47% at December 31, 2022, compared to 7.40% at September 30, 2022.
On January 19, 2023, the Board of Directors declared a $0.29 per share annual dividend, an increase of 12%, to shareholders of record as of February 3, 2023 and payable February 17, 2023.
In December 2022, a new branch was opened in La Crosse, Wisconsin, bringing the branch count to 23. La Crosse is a market similar to Eau Claire and Mankato and the branch should enhance the efforts of the Company’s commercial bankers already working in that market.
Balance Sheet and Asset Quality
Total assets increased modestly by $36.2 million during the quarter to $1.82 billion at December 31, 2022, compared to $1.78 billion at September 30, 2022.
Securities available for sale decreased $1.8 million during the quarter ended December 31, 2022, to $166.0 million from $167.8 million at September 30, 2022. This decrease was primarily due to principal repayments and a modest reduction in the market value of the portfolio, partially offset by the purchase of bank holding company issued capital instruments of $2.8 million.
Securities held to maturity decreased $1.2 million to $96.4 million during the quarter ended December 31, 2022, from $97.6 million at September 30, 2022, due to principal repayments.
Total loans receivable increased to $1.412 billion at December 31, 2022, from $1.376 billion at September 30, 2022. The originated loan portfolio increased $46.3 million in the quarter. The growth was due to strong loan fundings and growth in the commercial, multi-family and residential real estate portfolios totaling $49.8 million.
The allowance for loan losses increased to $17.9 million at December 31, 2022, representing 1.27% of total loans receivable. At September 30, 2022, the allowance for loan losses was 1.25% of total loans receivable. For the quarter ended December 31, 2022, the Bank had net recoveries of $22 thousand.
Allowance for Loan Losses Percentages
(in thousands, except ratios)
December 31, 2022 September 30, 2022 June 30, 2022 December 31, 2021 Loans, end of period $ 1,411,784 $ 1,375,876 $ 1,346,855 $ 1,310,963 SBA PPP loans, net of deferred fees — — — (8,457 ) Loans, net of SBA PPP loans and deferred fees $ 1,411,784 $ 1,375,876 $ 1,346,855 $ 1,302,506 Allowance for loan losses $ 17,939 $ 17,217 $ 16,825 $ 16,913 ALL as a percentage of loans, end of period 1.27 % 1.25 % 1.25 % 1.29 %
Nonperforming assets remained relatively flat at $12.7 million or 0.70% of total assets at December 31, 2022, compared to $12.6 million or 0.71% at September 30, 2022, as the sale of a closed branch office was offset by the addition of OREO properties associated with recently closed branch office buildings. Acquired nonaccrual loans decreased to $2.3 million at December 31, 2022, from $2.5 million at September 30, 2022. Originated nonperforming assets increased to $10.2 million or 0.56% of total assets for the most recent quarter.
(in thousands) December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 Special mention loan balances $ 12,170 $ 20,178 $ 17,274 $ 1,849 $ 4,536 Substandard loan balances 17,319 20,227 20,680 24,822 22,817 Criticized loans, end of period $ 29,489 $ 40,405 $ 37,954 $ 26,671 $ 27,353
Special mention loans decreased $8.0 million, largely due to principal repayments received.
Substandard loans decreased modestly by $2.9 million to $17.3 million at December 31, 2022, compared to $20.2 million at September 30, 2022. The decrease in the fourth quarter was largely due to the payoff of substandard loans.
Deposits decreased $9.6 million to $1.42 billion at December 31, 2022, from $1.43 billion at September 30, 2022. All deposit categories reflected lower balances except certificate of deposit (“CD”) accounts, which increased $36.2 million. The increase partially reflects the addition of $20 million of brokered CD’s. The remaining increase in CD’s was partially due to customers moving savings balances to CD accounts. Commercial deposits fell in the quarter as commercial customers decreased their cash balances to support the needs of their businesses.
The Company repurchased 58 thousand shares of the Company’s common stock in the fourth quarter. As of December 31, 2022, approximately 243 thousand shares remain available for repurchase under the current share repurchase authorization.
Review of Operations
Net interest income remained flat at $14.5 million for the fourth quarter ended December 31, 2022, relative to the quarter ended September 30, 2022, and increased slightly from $14.4 million for the quarter ended December 31, 2021, which included $1.3 million of SBA PPP net loan fee accretion. “Our interest rate risk profile remains neutral with repricing asset yields largely offsetting repricing borrowings and deposits. We expect to see a modest reduction in the net interest margin in the first quarter of 2023, due to end of period CD interest rates at December 31, 2022 exceeding average fourth quarter 2022 CD interest rates by 39 basis points. At December 31, 2022, our 13% on-balance sheet liquidity ratio, along with our almost $260 million FHLB borrowing availability was more than sufficient to offset future funding needs,” said Jim Broucek, Executive Vice President and Chief Financial Officer.
The table below shows the impact of accretion related to purchased credit impaired loans and SBA PPP net loan fees on interest income and NIM.
Net interest income and net interest margin analysis:
(in thousands, except yields and rates)
Three months ended December 31,
2022 September 30,
2022 June 30,
2022 March 31,
2022 December 31,
2021 Net
Interest
Income Net
Interest
Margin Net
Interest
Income Net
Interest
Margin Net
Interest
Income Net
Interest
Margin Net
Interest
Income Net
Interest
Margin Net
Interest
Income Net
Interest
Margin As reported $ 14,478 3.40 % $ 14,457 3.43 % $ 14,267 3.46 % $ 13,167 3.25 % $ 14,384 3.50 % Less non-accretable difference realized as interest from payoff of purchased credit impaired (“PCI”) loans $ (109 ) (0.02 )% $ (34 ) (0.01 )% $ (70 ) (0.02 )% $ (26 ) (0.01 )% $ (2 ) — % Less accelerated accretion from payoff of certain PCI loans with transferred non-accretable differences $ (32 ) (0.01 )% $ (117 ) (0.06 )% $ (308 ) (0.08 )% $ (11 ) — % $ (200 ) (0.05 )% Less scheduled accretion interest $ (169 ) (0.04 )% $ (247 ) (0.03 )% $ (255 ) (0.06 )% $ (264 ) (0.07 )% $ (264 ) (0.06 )% Without loan purchase accretion $ 14,168 3.33 % $ 14,059 3.33 % $ 13,634 3.30 % $ 12,866 3.17 % $ 13,918 3.39 % Less SBA PPP net loan fee accretion $ — — % $ — — % $ (39 ) (0.01 )% $ (259 ) (0.06 )% $ (1,251 ) (0.30 )% Without SBA PPP net loan fee accretion and loan purchase accretion $ 14,168 3.33 % $ 14,059 3.33 % $ 13,595 3.29 % $ 12,607 3.11 % $ 12,667 3.09 %
Loan loss provisions for the quarter ended December 31, 2022, were $0.7 million largely reflecting the expanding loan portfolio. Loan loss provisions for the quarters ended September 30, 2022, and June 30, 2022, were $0.4 million, with both quarters helped by reductions in specific reserves due to payoffs on the underlying loans. There were no loan loss provisions for the quarters ended March 31, 2022 or December 31, 2021.
Non-interest income increased to $2.9 million in the quarter ended December 31, 2022, compared to $2.5 million in the quarter ended September 30, 2022, and decreased from $4.4 million in the quarter ended December 31, 2021. The increase in the fourth quarter of 2022, compared to the third quarter of 2022, was largely due to gains on investment securities partially offset by slightly lower service charges on deposit accounts, loan servicing income and loan fees, and service charge income. Relative to the comparable quarter one year earlier, non-interest income was lower as a result of lower gain on sale of loans and lower loan servicing income.
Total non-interest expense decreased $0.9 million in the fourth quarter of 2022 to $10.3 million, compared to $11.3 million for the quarter ended September 30, 2022, and $10.5 million for the quarter ended December 31, 2021. The decrease from the third quarter of 2022 was due to: (1) (a) a decrease in compensation of $0.7 million due to a lower incentive compensation related to the third quarter catch-up accruals of $0.2 million, (b) lower compensation paid due to a lower head count of $0.2 million and (c) some one-time seasonal factors of $0.3 million; (2) a reduction in the amortization of core deposit intangible assets of $0.2 million; and (3) gains on sale of repossessed assets of $0.4 million due to the sale of a closed branch office. Partially offsetting these decreases were increases in other non-interest expense of $0.3 million, due to higher branch closure costs primarily associated with reductions in value of the two closed branches in the quarter of $0.6 million.
Provision for income taxes increased to $1.6 million in the fourth quarter of 2022 from $1.3 million in the third quarter of 2022. The provision for income taxes decreased to $5.8 million for fiscal year 2022 from $7.7 million for fiscal year 2021. The decrease in fiscal year 2022 is due to lower pre-tax income and a lower tax rate due to the impact of the new market tax credit purchased in the first quarter of 2022. The tax credits are expected to be realized over the next seven years. The effective tax rate was 25.6% in the fourth quarter of 2022, compared to 24.3% the previous quarter and 26.7% for the comparable prior year quarter. The effective tax rate for 2022 was 24.7% compared to 26.6% for the prior year.
These financial results are preliminary until the Form 10-K is filed in March 2023.
About the Company
Citizens Community Bancorp, Inc. (NASDAQ: “CZWI”) is the holding company of the Bank, a national bank based in Altoona, Wisconsin, currently serving customers primarily in Wisconsin and Minnesota through 23 branch locations. Its primary markets include the Chippewa Valley Region in Wisconsin, the Twin Cities and Mankato markets in Minnesota, and various rural communities around these areas. The Bank offers traditional community banking services to businesses, ag operators and consumers, including residential mortgage loans.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this release are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified using forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “estimates,” “intend,” “may,” “on pace,” “preliminary,” “planned,” “potential,” “should,” “will,” “would” or the negative of those terms or other words of similar meaning. Such forward-looking statements in this release are inherently subject to many uncertainties arising in the operations and business environment of the Company and the Bank. These uncertainties include conditions in the financial markets and economic conditions generally; adverse impacts to the Company or Bank arising from the COVID-19 pandemic; acts of terrorism and political or military actions by the United States or other governments; the possibility of a deterioration in the residential real estate markets; interest rate risk; lending risk; higher lending risks associated with our commercial and agricultural banking activities; the sufficiency of loan allowances; changes in the fair value or ratings downgrades of our securities; competitive pressures among depository and other financial institutions; disintermediation risk; our ability to maintain our reputation; our ability to maintain or increase our market share; our ability to realize the benefits of net deferred tax assets; our inability to obtain needed liquidity; our ability to raise capital needed to fund growth or meet regulatory requirements; our ability to attract and retain key personnel; our ability to keep pace with technological change; prevalence of fraud and other financial crimes; cybersecurity risks; the possibility that our internal controls and procedures could fail or be circumvented; our ability to successfully execute our acquisition growth strategy; risks posed by acquisitions and other expansion opportunities, including difficulties and delays in integrating the acquired business operations or fully realizing the cost savings and other benefits; restrictions on our ability to pay dividends; the potential volatility of our stock price; accounting standards for loan losses; legislative or regulatory changes or actions, or significant litigation, adversely affecting the Company or Bank; public company reporting obligations; changes in federal or state tax laws; and changes in accounting principles, policies or guidelines and their impact on financial performance. Stockholders, potential investors, and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Such uncertainties and other risks that may affect the Company’s performance are discussed further in Part I, Item 1A, “Risk Factors,” in the Company’s Form 10-K, for the year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on March 2, 2022 and the Company’s subsequent filings with the SEC. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this news release or to update them to reflect events or circumstances occurring after the date of this release.
1 Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, such as net income as adjusted, net income as adjusted per share, tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on average tangible common equity, which management believes may be helpful in understanding the Company’s results of operations or financial position and comparing results over different periods.
Net income as adjusted and net income as adjusted per share are non-GAAP measures that eliminate the impact of certain expenses such as branch closure costs and related severance pay, accelerated depreciation expense and lease termination fees, and the gain on sale of branch deposits and fixed assets. Tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on average tangible common equity are non-GAAP measures that eliminate the impact of goodwill and intangible assets on our financial position. Management believes these measures are useful in assessing the strength of our financial position.
Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks and financial institutions.
Contact: Steve Bianchi, CEO
(715)-836-9994
(CZWI-ER)
CITIZENS COMMUNITY BANCORP, INC.
Consolidated Balance Sheets
(in thousands, except shares and per share data)
December 31, 2022
(unaudited) September 30, 2022
(unaudited) December 31, 2021
(audited) Assets Cash and cash equivalents $ 35,363 $ 29,411 $ 47,691 Other interest bearing deposits 249 368 1,511 Securities available for sale “AFS” 165,991 167,764 203,068 Securities held to maturity “HTM” 96,379 97,610 71,141 Equity investments 1,794 1,461 1,328 Other investments 15,834 15,907 15,305 Loans receivable 1,411,784 1,375,876 1,310,963 Allowance for loan losses (17,939 ) (17,217 ) (16,913 ) Loans receivable, net 1,393,845 1,358,659 1,294,050 Loans held for sale — 666 6,670 Mortgage servicing rights, net 4,262 4,371 4,161 Office properties and equipment, net 20,493 21,427 21,169 Accrued interest receivable 5,285 4,716 3,916 Intangible assets 2,449 2,701 3,898 Goodwill 31,498 31,498 31,498 Foreclosed and repossessed assets, net 1,271 1,584 1,408 Bank owned life insurance (“BOLI”) 24,954 24,784 24,312 Other assets 16,719 17,275 8,502 TOTAL ASSETS $ 1,816,386 $ 1,780,202 $ 1,739,628 Liabilities and Stockholders’ Equity Liabilities: Deposits $ 1,424,720 $ 1,434,368 $ 1,387,535 Federal Home Loan Bank (“FHLB”) advances 142,530 102,530 111,527 Other borrowings 72,409 72,351 58,426 Other liabilities 9,639 7,634 11,274 Total liabilities 1,649,298 1,616,883 1,568,762 Stockholders’ equity: Common stock— $0.01 par value, authorized 30,000,000; 10,425,119, 10,478,210 and 10,502,442 shares issued and outstanding, respectively 104 105 105 Additional paid-in capital 119,240 119,638 119,925 Retained earnings 65,400 60,833 50,675 Accumulated other comprehensive (loss) income (17,656 ) (17,257 ) 161 Total stockholders’ equity 167,088 163,319 170,866 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,816,386 $ 1,780,202 $ 1,739,628
Note: Certain items previously reported were reclassified for consistency with the current presentation.
CITIZENS COMMUNITY BANCORP, INC.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Twelve Months Ended December 31, 2022
(unaudited) September 30, 2022
(unaudited) December 31, 2021
(unaudited) December 31, 2022
(unaudited) December 31, 2021
(audited) Interest and dividend income: Interest and fees on loans $ 17,042 $ 15,937 $ 15,158 $ 61,639 $ 58,172 Interest on investments 2,317 2,022 1,604 7,758 5,863 Total interest and dividend income 19,359 17,959 16,762 69,397 64,035 Interest expense: Interest on deposits 2,695 1,681 1,261 6,429 5,850 Interest on FHLB borrowed funds 1,127 568 388 2,303 1,572 Interest on other borrowed funds 1,059 1,253 729 4,296 2,946 Total interest expense 4,881 3,502 2,378 13,028 10,368 Net interest income before provision for loan losses 14,478 14,457 14,384 56,369 53,667 Provision for loan losses 700 375 — 1,475 — Net interest income after provision for loan losses 13,778 14,082 14,384 54,894 53,667 Non-interest income: Service charges on deposit accounts 513 535 470 2,018 1,726 Interchange income 583 597 577 2,343 2,354 Loan servicing income 527 611 762 2,439 3,322 Gain on sale of loans 144 194 1,268 1,474 5,399 Loan fees and service charges 179 267 158 679 705 Net gains (losses) on investment securities 708 (55 ) 879 541 1,224 Other 219 323 293 936 1,094 Total non-interest income 2,873 2,472 4,407 10,430 15,824 Non-interest expense: Compensation and related benefits 5,241 5,900 5,987 22,128 22,723 Occupancy 1,353 1,429 1,384 5,490 5,327 Data processing 1,355 1,382 1,186 5,453 5,560 Amortization of intangible assets 252 399 399 1,449 1,596 Mortgage servicing rights expense, net 157 197 163 222 191 Advertising, marketing and public relations 255 300 409 1,017 986 FDIC premium assessment 118 119 156 470 551 Professional services 555 382 350 1,707 1,542 Gains on repossessed assets, net (378 ) (8 ) (50 ) (395 ) (199 ) New market tax credit depletion 162 163 — 650 — Other 1,266 1,014 541 3,552 2,255 Total non-interest expense 10,336 11,277 10,525 41,743 40,532 Income before provision for income taxes 6,315 5,277 8,266 23,581 28,959 Provision for income taxes 1,619 1,284 2,209 5,820 7,693 Net income attributable to common stockholders $ 4,696 $ 3,993 $ 6,057 $ 17,761 $ 21,266 Per share information: Basic earnings $ 0.45 $ 0.38 $ 0.58 $ 1.69 $ 1.98 Diluted earnings $ 0.45 $ 0.38 $ 0.58 $ 1.69 $ 1.98 Cash dividends paid $ — $ — $ — $ 0.26 $ 0.23 Book value per share at end of period $ 16.03 $ 15.59 $ 16.27 $ 16.03 $ 16.27 Tangible book value per share at end of period (non-GAAP) $ 12.77 $ 12.32 $ 12.90 $ 12.77 $ 12.90
Note: Certain items previously reported were reclassified for consistency with the current presentation.
Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)
(in thousands, except per share data)
Three Months Ended Twelve Months Ended December 31,
2022 September 30,
2022 December 31,
2021 December 31,
2022 December 31,
2021 GAAP pretax income $ 6,315 $ 5,277 $ 8,266 $ 23,581 $ 28,959 Branch closure costs (1) 646 302 — 981 — FHLB borrowings prepayment fee (2) — — — — 102 Pretax income as adjusted (3) 6,961 5,579 8,266 24,562 29,061 Provision for income tax on net income as adjusted (4) 1,785 1,357 2,209 6,062 7,722 Net income as adjusted (non-GAAP) (3) $ 5,176 $ 4,222 $ 6,057 $ 18,500 $ 21,339 GAAP diluted earnings per share, net of tax $ 0.45 $ 0.38 $ 0.58 $ 1.69 $ 1.98 Branch closure costs, net of tax (5) 0.04 0.02 — 0.07 — FHLB borrowings prepayment fee — — — — 0.01 Diluted earnings per share, as adjusted, net of tax (non-GAAP) $ 0.49 $ 0.40 $ 0.58 $ 1.76 $ 1.99 Average diluted shares outstanding 10,460,025 10,519,079 10,516,130 10,513,773 10,726,539
(1) Branch closure costs include severance pay recorded in compensation and benefits and accelerated depreciation expense included in other non-interest expense in the consolidated statement of operations.
(2) FHLB borrowings prepayment fee resulted from the early termination of $8 million in FHLB borrowings at a weighted average rate of 2.19% and weighted average maturity of 8.75 months included in other non-interest expense in the consolidated statement of operations.
(3) Pretax income as adjusted and net income as adjusted is a non-GAAP measure that management believes enhances the market’s ability to assess the underlying business performance and trends related to core business activities.
(4) Provision for income tax on net income as adjusted is calculated at our effective tax rate for each respective period presented.
(5) Branch closure costs, net of tax is rounded to $0.04 to balance to diluted earnings per share, as adjusted, net of tax (non-GAAP).
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NEWS_113 | Twilio (TWLO) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this company have returned +21.3% over the past month versus the Zacks S&P 500 composite's +4.1% change. The Zacks Internet - Software industry, to which Twilio belongs, has gained 9.7% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Twilio is expected to post a loss of $0.09 per share, indicating a change of +55% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.7% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of -$0.46 points to a change of -84% from the prior year. Over the last 30 days, this estimate has changed -1.1%.
For the next fiscal year, the consensus earnings estimate of $0.19 indicates a change of +142.5% from what Twilio is expected to report a year ago. Over the past month, the estimate has changed -9.5%.
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With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Twilio.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
12-month consensus EPS estimate for TWLO _12MonthEPSChartUrl
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Twilio, the consensus sales estimate of $998.9 million for the current quarter points to a year-over-year change of +18.5%. The $3.8 billion and $4.42 billion estimates for the current and next fiscal years indicate changes of +33.7% and +16.2%, respectively.
Last Reported Results and Surprise History
Twilio reported revenues of $983.03 million in the last reported quarter, representing a year-over-year change of +32.8%. EPS of -$0.27 for the same period compares with $0.01 a year ago.
Compared to the Zacks Consensus Estimate of $969.17 million, the reported revenues represent a surprise of +1.43%. The EPS surprise was +30.77%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Twilio is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Twilio. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Twilio Inc. (TWLO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research |
NEWS_114 | DBV Technologies S.A.
AMF Regulated Information
Montrouge, France, January 23, 2023
Half-Year Report on the DBV Technologies Liquidity Contract with ODDO BHF
DBV Technologies (Euronext: DBV – ISIN: FR0010417345 – Nasdaq Stock Market: DBVT), a clinical-stage biopharmaceutical company, today issued the Half-Year report on its liquidity contract with ODDO BHF.
Under the liquidity contract between DBV Technologies and ODDO BHF, the following assets appeared on the liquidity account as of December 31, 2022:
149,793 DBV Technologies shares
€ 292, 804
When the liquidity contract with ODDO BHF was implemented, as of July 1, 2018, the following assets were included in the liquidity account:
- 41,159 DBV Technologies shares
- € 432,367.25
Over the period from July 1, 2022 to December 31, 2022, the following transactions were executed:
- 1,685 buy transactions
- 1,610 sales transactions
Over this same period, the volumes traded represented:
- 597,406 shares and € 2,383,510 on purchases
- 553,900 shares and € 2,245,465 on sales
About DBV Technologies
DBV Technologies is developing Viaskin®, a proprietary technology platform with broad potential applications in immunotherapy. Viaskin is based on epicutaneous immunotherapy, or EPIT®, DBV’s method of delivering biologically active compounds to the immune system through intact skin. With this new class of self-administered and non-invasive product candidates, the Company is dedicated to safely transforming the care of food allergic patients, for whom there are no approved treatments. DBV’s food allergies programs include ongoing clinical trials of Viaskin Peanut and Viaskin Milk, and preclinical development of Viaskin Egg. DBV is also pursuing a human proof-of-concept clinical study of Viaskin Milk for the treatment of Eosinophilic Esophagitis and exploring potential applications of its platform in vaccines and other immune diseases. DBV Technologies has global headquarters in Montrouge, France and Basking Ridge, NJ. The Company’s ordinary shares are traded on segment A of Euronext Paris (Ticker: DBV, ISIN code: FR0010417345), part of the SBF120 index, and the Company’s ADS (each representing one-half of one ordinary share) are traded on the Nasdaq Global Select Market (Ticker: DBVT).
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NEWS_115 | Tritium DCFC Limited
Evyve Charger
Evyve Charger
Tritium, a global leader in direct current (DC) fast chargers for electric vehicles (EVs), has executed an agreement with evyve, an EV charging network in the UK, to become the network’s preferred fast charger technology provider.
evyve has informed Tritium that it plans to install 10,000 EV charging stations by 2030, with the goal of becoming the country's largest charger network.
evyve placed initial purchase orders for 350 Tritium fast chargers as part of the charging network’s plans to invest £25 million in Tritium fast and ultra-fast charging stations over the next two years.
AMSTERDAM, Netherlands, Jan. 23, 2023 (GLOBE NEWSWIRE) -- Tritium DCFC Limited (Tritium) (Nasdaq: DCFC), a global EV fast charger manufacturer, and evyve, a UK charging network, have entered into an agreement to make Tritium the network’s preferred fast charger provider. The agreement includes initial total orders for 350 Tritium fast chargers and evyve has received first deliveries of these chargers, 60 of which are now installed and operational. evyve currently projects to install thousands more chargers by the end of 2025 and 10,000 chargers by 2030. The evyve charging network is planned to consist of Tritium's innovative modular chargers, including the company's award-winning 75kW charger and highly scalable 150kW fast charger.
"With the number of registered battery-electric cars in the UK growing by more than 40% in 2022, it's more important than ever that drivers have access to fast and reliable charging technology to ensure a convenient driver experience and a seamless transition to e-mobility," said Tritium CEO Jane Hunter. "We're proud to be the preferred fast charger provider for the evyve charging network, and we look forward to helping them accomplish their goal to become the largest destination and enroute charging network in the UK. For Tritium, this announcement is a reflection of an increasing number of conversations with customers looking to address anticipated multi-year demand and secure product availability beyond just the next 12 months."
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evyve has stated that it intends to become the largest destination and enroute charging network in the UK and the company has ambitious growth plans to own and operate 10,000 charging stations by 2030. evyve continues to build a customer network consisting of retail parks owned by regeneration business Peel L&P and leading hospitality providers like Greene King, the UK’s leading pub retailer and brewer operating over 2,700 pubs, restaurants, and hotels across England, Wales, and Scotland.
James Moat, CEO of evyve, said: "evyve is focused on providing a seamless and reliable customer experience and we are thrilled to be partnering with a leading fast charger manufacturer like Tritium, giving us the confidence to accelerate our plans to become one of UK’s leading charge point service providers.
“Due to its compact design and modularity, Tritium’s innovative fast charger technology has enabled us to roll out our network across multiple locations quickly and efficiently, providing us with the foundation to support the UK's transition to electric vehicles today and 20 years from now.”
About Tritium
Founded in 2001, Tritium (NASDAQ: DCFC) designs and manufactures proprietary hardware and software to create advanced and reliable DC fast chargers for electric vehicles. Tritium's compact and robust chargers are designed to look great on Main Street and thrive in harsh conditions, through technology engineered to be easy to install, own, and use. Tritium is focused on continuous innovation in support of our customers around the world.
For more information, visit tritiumcharging.com
About evyve – Charging Ahead
Established by EVY Infrastructure Partners and Peel NRE, part of regeneration business Peel L&P, which is at the heart of the nation’s activity around clean growth and a circular economy. evyve is developing a new nationwide network of high quality fast and ultra-fast electric vehicle (EV) charge points powered by 100% renewable energy, providing important infrastructure to support the growing number of electric vehicles on UK roads.
With plans for around 10,000 chargers by 2030, evyve is set to become one of the largest EV charging networks in the UK with facilities across key retail, food and drink, leisure and commercial business locations throughout England, Scotland and Wales.
For more information and partnership opportunities, visit www.evyve.co.uk
Forward Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1996. The Company's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “continue,” “aim” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations, hopes, beliefs, intentions, or strategies for the future. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. You should carefully consider the risks and uncertainties described in the documents filed by the Company from time to time with the US Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the Company’s control and are difficult to predict. The Company cautions not to place undue reliance upon any forward-looking statements, including projections, which speak only as of the date made. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.
Tritium Media Contact
Jack Ulrich
media@tritium.com.au
Tritium Investors Contact
Cary Segall
ir@tritiumcharging.com
evyve Media Contact
Katy Davison
kdavison@peellandp.co.uk
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2bccaa2e-5e8c-4b10-9053-638ec27d97f3
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NEWS_116 | A ductless installation solution for facilities facing limited overhead space, increasing application demands and production layout changes
MINNEAPOLIS, January 23, 2023--(BUSINESS WIRE)--Donaldson Company, Inc. (NYSE: DCI), a leading worldwide manufacturer of innovative filtration products and solutions, has released the Torit® Downflo® Ambient (DFA) weld fume extractor that gives fabricators the ability to weld in a variety of different workstation configurations.
"This new collector provides a complementary solution to a challenging problem: effective weld fume extraction without duct work or hoods," Todd Smith, Vice President, Global Industrial Air Filtration. "To accommodate new opportunities, facility managers need welding equipment and supporting tools that are flexible enough for changing layouts and workflows. When developing the DFA, we listened to welder needs. For example, the DFA not only saves floor space, but it also comes prewired with an integrated control panel, making installation flexible and easy. Maintenance is simplified too, with an easy-to-handle dust disposal drawer and tool-free hinged access doors that allow for turnkey filter changeouts."
Designed to collect fumes from the welding field as they rise and recirculate clean air, the DFA uses Donaldson proprietary Ultra-Web® media technology. Ultra-Web outperforms and outlasts other filters. Proven and proprietary Ultra-Web media technology delivers long filter life, clean air and cost savings over the life of a collector. In the facilities where collectors are housed, multiple extractors can be placed throughout the manufacturing area to account for a wide variety of materials, piece sizes, and various weld locations requiring a different setup.
The DFA adds to a comprehensive portfolio of solutions for weld fume mitigation using both source and ambient extraction methods. Donaldson provides one-on-one consultations; extensive, customizable options and features; and ongoing support for maintenance and data services with every system.
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For more information, visit Downflo® Ambient (DFA) | Weld Fume Collectors | Donaldson Industrial Dust, Fume & Mist or contact Applications Engineering Manager, Chrissy.Klocker@Donaldson.com.
About Donaldson Company, Inc.
Founded in 1915, Donaldson (NYSE: DCI) is a global leader in technology-led filtration products and solutions, serving a broad range of industries and advanced markets. Our diverse, skilled employees at over 140 locations on six continents partner with customers—from small business owners to the world’s biggest OEM brands—to solve complex filtration challenges. Discover how Donaldson is Advancing Filtration for a Cleaner World at www.Donaldson.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230123005579/en/
Contacts
Chrissy Klocker (952) 887-3446
Chrissy.Klocker@Donaldson.com |
NEWS_117 | Shares of Under Armour Inc. Cl A UAA, +2.31% rallied 2.31% to $11.94 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Under Armour Inc. Cl A closed $8.71 below its 52-week high ($20.65), which the company achieved on February 10th.
The stock outperformed some of its competitors Monday, as Nike Inc. Cl B NKE, +1.32% rose 1.32% to $128.29. Trading volume (8.0 M) eclipsed its 50-day average volume of 7.9 M. |
NEWS_118 | Shares of Ford Motor Co. F, +3.23% rallied 3.23% to $12.80 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Ford Motor Co. closed $8.25 short of its 52-week high ($21.05), which the company reached on February 2nd.
The stock underperformed when compared to some of its competitors Monday, as Tesla Inc. TSLA, +7.74% rose 7.74% to $143.75. Trading volume (49.6 M) remained 2.0 million below its 50-day average volume of 51.6 M. |
NEWS_119 | Bet the farm on battered Tesla (TSLA) stock ahead of the company's hotly anticipated earnings report on Wednesday, contends Canaccord Genuity analyst George Gianarikas.
"Buy [Tesla stock] — it's pretty simple," Gianarikas said on Yahoo Finance Live (video above). "The stock had a pretty bad 2022 in terms of performance. That was based on multiple things, and some would attribute it to Elon Musk's rantings on Twitter. We think it had a lot to do with the demand situation impacting Tesla, first in China and later kind of leaking into other parts of the world, including the United States. People know that. A lot of that seems to be priced into the stock."
The bullish call on Tesla — which has become a rarity in recent months on the Street — runs counter to a host of red flags on the automaker's fundamentals.
Tesla reported a delivery growth figure of 39% for 2022, which badly missed analyst estimates and fell below the company's own guidance of 50%.
And earlier this month, Tesla cut the price of the Model 3 base version by $3,000 to $43,990 and the Model 3 Performance version by $9,000 to $53,990 in the U.S. As for the Model Y Long Range, the price dropped by $13,000 to $52,990 while the Performance model was cut to $56,990, about $13,000 cheaper than the prior price.
The U.S. discounts come hot on the heels of recent price reductions in China, Japan, and South Korea as Tesla looks to reignite demand against growing competitive threats.
Gianarikas said he believes the price cuts will stoke demand, even if it weighs on profit margins. The analyst is also bullish on the margin lift to Tesla from selling more software upgrades to customers.
Customers remove the cloth covering their new China-made Model Y compact crossover vehicle at a Tesla showroom on January 18, 2021, in Shanghai, China. (Photo by VCG/VCG via Getty Images)
Still, Tesla stock has plunged 54% over the past year, not helped by Elon Musk's chaotic tenure as Twitter's owner.
"Very simply, this is a fork-in-the-road year ahead for Tesla that will either lay the groundwork for its next chapter of growth OR continue its slide from the top of the perch with Musk leading the way downhill," Wedbush analyst Dan Ives said in a more bearish note to clients this month. "Now is a time for leadership from Musk to lead Tesla through this period of softer demand in a darker macro and NOT the time to be hands-off, which is the perception of the Street."
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Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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NEWS_120 | W.R. Berkley Corporation WRB is slated to report fourth-quarter 2022 earnings on Jan 26 after market close. The insurer delivered an earnings surprise in each of the last four quarters, the average being 25.63%.
Factors to Consider
Gross premiums written in the fourth quarter of 2022 are expected to have benefited from strong performing other liability, short-tail lines, commercial auto, professional liability and workers’ compensation in the Insurance segment as well as an increase in casualty reinsurance, monoline excess and property reinsurance in the Reinsurance & Monoline Excess segment. Growth is also likely to have been driven by higher premiums in the international unit, mainly supported by the emerging markets of the United Kingdom, Continental Europe, South America, Canada, Scandinavia, Asia and Australia
The Zacks Consensus Estimate for fourth-quarter 2022 premiums earned is pegged at $2.5 billion, up 13.2% from the year-ago reported quarter.
Higher income from fixed maturity securities, rising interest rate environment and increase in equity securities are likely to have aided improvement in net investment income. Investment in alternative assets such as private equity fund and direct real estate opportunities are likely to have added to the upside
The Zacks Consensus Estimate for fourth-quarter 2022 net investment income is pegged at $188 million, indicating an upside of 14% from the year-ago reported figure.
The expense ratio is likely to have improved on net premiums earned surpassing compensation expense growth.
Expenses are likely to have increased owing to higher losses and loss expenses, other operating costs and expenses and expenses from non-insurance businesses.
Higher-than-expected cat losses are likely to have weighed on underwriting profitability and thus combined ratio.
The Zacks Consensus Estimate for earnings is pegged at $1.07, indicating a 4.9% increase from the year-ago quarter reported number.
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What the Zacks Model Says
Our proven model predicts an earnings beat for W.R. Berkley this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP: W.R. Berkley has an Earnings ESP of +1.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
W.R. Berkley Corporation Price and Consensus
W.R. Berkley Corporation Price and Consensus
W.R. Berkley Corporation price-consensus-chart | W.R. Berkley Corporation Quote
Zacks Rank: W.R. Berkley currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are three stocks from the insurance industry that you may want to consider, as our model shows that these also have the right combination of elements to post the earnings beat:
First American Financial FAF has an Earnings ESP of +0.35% and a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at $1.45, indicating a decrease of 36.4% from the year-ago reported figure.
First American Financial beat earnings estimates in three of the last four reported quarters while missing the same in one.
Chubb Limited CB has an Earnings ESP of +2.72% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at $4.22, up 10.8% from the figure reported in the year-ago quarter.
Chubb beat earnings estimates in all the last four reported quarters.
Arch Capital Group ACGL has an Earnings ESP of +5.42% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings stands at $1.34, indicating an increase of 5.5% from the year-ago reported figure.
Arch Capital beat earnings estimates in three of the last four reported quarters while missing the same in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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To read this article on Zacks.com click here.
Zacks Investment Research |
NEWS_121 | Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. Importantly, Diamondback Energy, Inc. (NASDAQ:FANG) does carry debt. But is this debt a concern to shareholders?
When Is Debt Dangerous?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first step when considering a company's debt levels is to consider its cash and debt together.
See our latest analysis for Diamondback Energy
What Is Diamondback Energy's Debt?
As you can see below, Diamondback Energy had US$5.56b of debt at September 2022, down from US$6.97b a year prior. And it doesn't have much cash, so its net debt is about the same.
A Look At Diamondback Energy's Liabilities
According to the last reported balance sheet, Diamondback Energy had liabilities of US$1.68b due within 12 months, and liabilities of US$7.61b due beyond 12 months. On the other hand, it had cash of US$27.0m and US$786.0m worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$8.47b.
While this might seem like a lot, it is not so bad since Diamondback Energy has a huge market capitalization of US$32.5b, and so it could probably strengthen its balance sheet by raising capital if it needed to. But it's clear that we should definitely closely examine whether it can manage its debt without dilution.
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In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
Diamondback Energy's net debt is only 0.76 times its EBITDA. And its EBIT covers its interest expense a whopping 28.2 times over. So we're pretty relaxed about its super-conservative use of debt. Even more impressive was the fact that Diamondback Energy grew its EBIT by 227% over twelve months. If maintained that growth will make the debt even more manageable in the years ahead. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Diamondback Energy's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. During the last three years, Diamondback Energy produced sturdy free cash flow equating to 53% of its EBIT, about what we'd expect. This free cash flow puts the company in a good position to pay down debt, when appropriate.
Our View
Diamondback Energy's interest cover suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper. And the good news does not stop there, as its EBIT growth rate also supports that impression! Looking at the bigger picture, we think Diamondback Energy's use of debt seems quite reasonable and we're not concerned about it. After all, sensible leverage can boost returns on equity. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. For example, we've discovered 4 warning signs for Diamondback Energy (1 is significant!) that you should be aware of before investing here.
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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NEWS_122 | Shares of Diamondback Energy Inc. FANG, +1.22% rallied 1.22% to $149.35 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's third consecutive day of gains. Diamondback Energy Inc. closed $19.60 short of its 52-week high ($168.95), which the company achieved on November 15th.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as EOG Resources Inc. EOG, +1.08% rose 1.08% to $134.18, Pioneer Natural Resources Co. PXD, +0.86% rose 0.86% to $241.45, and Devon Energy Corp. DVN, +1.56% rose 1.56% to $65.76. Trading volume (1.5 M) remained 1.2 million below its 50-day average volume of 2.6 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_123 | Shares of Fastenal Co. FAST, -0.02% shed 0.02% to $48.99 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. Fastenal Co. closed $11.75 below its 52-week high ($60.74), which the company reached on March 31st.
The stock underperformed when compared to some of its competitors Monday, as Amazon.com Inc. AMZN, +0.28% rose 0.28% to $97.52, Home Depot Inc. HD, +0.15% rose 0.15% to $315.48, and Lowe's Cos. LOW, +0.28% rose 0.28% to $205.11. Trading volume (3.4 M) remained 31,428 below its 50-day average volume of 3.4 M. |
NEWS_124 | Shares of Freeport-McMoRan Inc. FCX, -1.01% shed 1.01% to $44.95 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. The stock's fall snapped a two-day winning streak. Freeport-McMoRan Inc. closed $7.04 below its 52-week high ($51.99), which the company achieved on March 25th.
The stock underperformed when compared to some of its competitors Monday, as Newmont Corp. NEM, +0.54% rose 0.54% to $53.63. Trading volume (11.7 M) remained 1.0 million below its 50-day average volume of 12.8 M. |
NEWS_125 | Shares of FedEx Corp. FDX, +2.28% rose 2.28% to $191.15 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. FedEx Corp. closed $65.34 below its 52-week high ($256.49), which the company achieved on February 1st.
The stock outperformed some of its competitors Monday, as United Parcel Service Inc. Cl B UPS, +1.32% rose 1.32% to $180.48. Trading volume (1.6 M) remained 808,024 below its 50-day average volume of 2.4 M. |
NEWS_126 | Shares of FirstEnergy Corp. FE, -2.51% shed 2.51% to $41.14 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. FirstEnergy Corp. closed $7.71 short of its 52-week high ($48.85), which the company achieved on April 21st.
The stock underperformed when compared to some of its competitors Monday, as NextEra Energy Inc. NEE, +1.04% rose 1.04% to $82.67, Southern Co. SO, -0.39% fell 0.39% to $66.86, and Dominion Energy Inc. D, +0.88% rose 0.88% to $62.97. Trading volume (5.9 M) eclipsed its 50-day average volume of 3.3 M. |
NEWS_127 | SAN FRANCISCO (MarketWatch) -- Ford Motor Co. shares continued to switch hands rapidly after the closing bell, recouping some of the value they shed during the regular session when Citigroup downgraded the automaker.
Today we utilized our new analyst coverage screen to help find stocks that are gaining more attention from Wall Street analysts that could be potential winners for August and beyond.
Franklin Electric Co. Inc.
Franklin Electric Co., Inc. engages in the development, manufacture, and distribution of water and fuel pumping systems. It operates through the following business segments: Water Systems, Fueling Systems, and Distribution. The Water Systems segment designs, manufactures, and sells water pumping systems, submersible motors, pumps, electronic controls, and related parts and equipment. The Fueling Systems segment produces and markets fuel pumping, fuel containment, and monitoring and control systems. It also offers pumps, pipe, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment. The Distribution Segment sells to and provides pre sale support and specifications to the installing contractors. The company was founded by Edward J. Schaefer and T. Wayne Kehoe in 1944 and is headquartered in Fort Wayne, IN. |
NEWS_128 | Shares of F5 Inc. FFIV, +2.16% rallied 2.16% to $147.77 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. F5 Inc. closed $79.47 below its 52-week high ($227.24), which the company achieved on January 24th.
The stock underperformed when compared to some of its competitors Monday, as Ceridian HCM Holding Inc. CDAY, +4.36% rose 4.36% to $72.79. Trading volume (693,097) eclipsed its 50-day average volume of 473,111. |
NEWS_129 | The market expects Franklin Resources (BEN) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2022. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on January 30. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This investment manager is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of -50%.
Revenues are expected to be $1.81 billion, down 18.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.33% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
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Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Franklin Resources?
For Franklin Resources, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.46%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Franklin Resources will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Franklin Resources would post earnings of $0.69 per share when it actually produced earnings of $0.78, delivering a surprise of +13.04%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Franklin Resources appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Another stock from the Zacks Financial - Investment Management industry, Federated Hermes (FHI), is soon expected to post earnings of $0.75 per share for the quarter ended December 2022. This estimate indicates a year-over-year change of +5.6%. Revenues for the quarter are expected to be $381.41 million, up 18.6% from the year-ago quarter.
The consensus EPS estimate for Federated Hermes has been revised 0.7% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of 10.67%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Federated Hermes will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Franklin Resources, Inc. (BEN) : Free Stock Analysis Report
Federated Hermes, Inc. (FHI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research |
NEWS_130 | Shares of Fidelity National Information Services Inc. FIS, +0.76% inched 0.76% higher to $74.48 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's third consecutive day of gains. Fidelity National Information Services Inc. closed $47.58 below its 52-week high ($122.06), which the company achieved on February 1st.
The stock outperformed some of its competitors Monday, as Mastercard Inc. MA, +0.61% rose 0.61% to $378.57, PayPal Holdings Inc. PYPL, +0.52% rose 0.52% to $79.50, and International Business Machines Corp. IBM, +0.47% rose 0.47% to $141.86. Trading volume (4.2 M) remained 2.8 million below its 50-day average volume of 7.0 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_131 | Shares of Fiserv Inc. FISV, +1.44% rallied 1.44% to $105.55 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Fiserv Inc. closed $5.39 below its 52-week high ($110.94), which the company achieved on August 16th.
The stock outperformed some of its competitors Monday, as PayPal Holdings Inc. PYPL, +0.52% rose 0.52% to $79.50, Global Payments Inc. GPN, +1.33% rose 1.33% to $113.43, and FleetCor Technologies Inc. FLT, +0.86% rose 0.86% to $200.41. Trading volume (2.4 M) remained 816,273 below its 50-day average volume of 3.2 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_132 | NEW YORK, Jan. 23, 2023 /PRNewswire/ -- BNY Mellon and Fiserv, a leading global provider of payments and financial services technology, have joined forces to deliver additional capabilities for real-time foreign exchange (FX) rate quotes for payments from U.S. financial institutions.
Using innovative application programming interface (API) connectivity, financial institutions leveraging Payments Exchange: Foreign Exchange Services from Fiserv can now seamlessly access BNY Mellon's real-time FX rate quotes in over 120 currencies without the need for additional integration. This new offering provides U.S. financial institutions the ability to execute currency conversions for cross-border payments with upfront rate visibility.
"One of the main challenges for U.S. financial institutions looking to access real-time FX rate quotes for payments is that the costs associated with integrating to a banking partner can be prohibitive," said Isabel Schmidt, Global Co-head of Payments at BNY Mellon. "We are addressing this head on through new integration which enables institutions to provide clients with streamlined, real-time FX rate quotes to facilitate cross border payments."
BNY Mellon's real-time FX rate quotes capabilities are designed to be configurable, providing a tailored offering for cross border payments. Along with transaction tracking and reporting tools, financial institutions can access detailed payment status to enhance the support experience, as well as provide more transparency to their own clients using BNY Mellon's online tools.
Payments Exchange: Foreign Exchange Services from Fiserv is a flexible, web-based solution for completing end-to-end international wire transfers, which helps minimize the time and effort required to manage global payments. The solution assists in eliminating manual processes with the added advantage of one-step wire entry for foreign exchange.
"Financial institutions need cost-efficient solutions to meet the increasing demand for payments in foreign currency," said Laura Clary, Vice President of Enterprise Payments Solutions Product Management at Fiserv. "With Payments Exchange: Foreign Exchange Services, banks and credit unions can access multiple options to facilitate foreign exchange payments for their clients without needing to integrate with multiple third-party providers platforms or systems."
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About BNY Mellon
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment and wealth management and investment services in 35 countries. As of Dec. 31, 2022, BNY Mellon had $44.3 trillion in assets under custody and/or administration, and $1.8 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
About Fiserv
Fiserv, Inc. (NASDAQ: FISV) aspires to move money and information in a way that moves the world. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover® cloud-based point-of-sale and business management platform. Fiserv is a member of the S&P 500® Index, the FORTUNE® 500, and has been recognized as one of FORTUNE World's Most Admired Companies® for 11 of the past 14 years and named among the World's Most Innovative Companies by Fast Company for two consecutive years. Visit fiserv.com and follow on social media for more information and the latest company news.
Media Contacts:
BNY Mellon
Ryan Wells
+1 646 648 3887
ryanw@bnymellon.com
Fiserv
Ann Cave
+1 678-325-9435
ann.cave@fiserv.com
Cision
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SOURCE BNY Mellon |
NEWS_133 | CINCINNATI, January 23, 2023--(BUSINESS WIRE)--Whether it is groceries, gas, paying rent or buying a car, inflation has affected the cost of everyday needs. Finding ways to stretch your income is critical during periods of high inflation to avoid getting into debt or having to dip into savings to make ends meet. Fifth Third recognizes that customers have less purchasing power right now and offers the following tips, products and services to assist with budgeting during inflation.
Decide where you can cut back
The first step to control your spending is to create a budget that accurately tracks where your money is going each month. There are online spending calculators (like Fifth Third’s) that can show you how much of your income is allocated to essential expenses such as rent, childcare and car payments, and how much you are spending on discretionary items like dining out, travel and entertainment.
Although you may not be able to cut back on your fixed expenses in the short term, there are plenty of ways to adjust your discretionary spending. Consider cost-cutting steps such as postponing a new car purchase, eating out less, skipping that latte or buying fewer clothes.
Next, you need to decide where to reduce your expenses. Here are some budgeting tips that can help you to cut your spending:
Cancel subscriptions to streaming services and cable TV channels you no longer frequently watch.
At the grocery store, skip higher-priced brands in favor of private-label brands, which are often produced by the same manufacturer. Plan your meals for the week ahead and bring a list—one trip to the store saves on gas and avoids overspending on costlier convenience foods. Online grocery shopping with free curbside pickup is another way to reduce costs and prevent impulse buys— and be sure to use those digital coupons.
If you use a credit card each month for expenses, ensure that the card rewards you and pay off the balance each month.
Curb impulse buying by setting a waiting period, say 24 hours or more, between the time you decide to buy something and when you pay for it. Often the prospect of a little time can keep you from buying things you really don’t need.
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Consolidate debts
Another way to stretch your money during a period of high inflation is to reduce the interest payments you’re paying on debt. Consider consolidating your credit card debt onto a balance-transfer credit card, which will give you a year or more at an introductory 0% annual percentage rate (APR) on the amount of debt you transfer after paying a nominal transfer fee. This will give you time to pay off debt without the interest charges—which potentially will continue to rise—and improve your credit score in the process.
For example, Fifth Third has many cards with introductory offers that have little to no APR for certain amounts of time on purchases and balance transfers. Visit 53.com/content/fifth-third/en/personal-banking/bank/credit-cards.html for details.
Have cash at the ready
Aim to build an emergency fund that can meet at least three months of your living expenses. Having sufficient savings is a critical strategy to deal with today’s higher prices. Should you need a new computer, refrigerator or car, you don’t want to sacrifice quality or go into debt to make an essential big-ticket purchase.
About Fifth Third
Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere’s World’s Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.
Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank and its common stock is traded on the NASDAQ® Global Select Market under the symbol "FITB." Investor information and press releases can be viewed at www.53.com. Member FDIC.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230123005075/en/
Contacts
Beth Oates (Media Relations)
Beth.Oates@53.com | 313-230-9002
Chris Doll (Investor Relations)
Christopher.Doll@53.com | 513-534-2345 |
NEWS_134 | Shares of Fifth Third Bancorp FITB, +2.60% advanced 2.60% to $35.51 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's third consecutive day of gains. Fifth Third Bancorp closed $14.62 short of its 52-week high ($50.13), which the company reached on February 10th.
The stock outperformed some of its competitors Monday, as JPMorgan Chase & Co. JPM, +1.62% rose 1.62% to $137.27, Bank of America Corp. BAC, +1.39% rose 1.39% to $34.32, and Wells Fargo & Co. WFC, +2.53% rose 2.53% to $45.03. Trading volume (5.9 M) eclipsed its 50-day average volume of 4.9 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_135 | Shares of Flowserve Corp. FLS, +1.71% advanced 1.71% to $33.86 Monday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Flowserve Corp. closed $3.73 short of its 52-week high ($37.59), which the company achieved on April 20th.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as IDEX Corp. IEX, -0.15% fell 0.15% to $230.86, Graco Inc. GGG, -0.39% fell 0.39% to $66.76, and Parker Hannifin Corp. PH, +2.09% rose 2.09% to $311.71. Trading volume (492,204) remained 274,173 below its 50-day average volume of 766,377.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_136 | Visa Inc. V is set to continue its earnings beat streak in the first quarter of fiscal 2023, the results of which are expected to be released on Jan 26, after the closing bell.
In the last reported quarter, the payments technology company’s adjusted earnings per share of $1.93 beat the Zacks Consensus Estimate by 3.8% primarily due to continued growth in payment volume, cross-border volume and processed transactions. Also, spending on travel and entertainment rose from the year-ago period. However, elevated operating costs partly offset the upside.
Now, let’s see how things have shaped up prior to the first-quarter fiscal 2023 earnings announcement.
The Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter fiscal 2023 earnings per share of $2 has witnessed one upward revision and one downward movement in the past week. The estimate is indicative of a 10.5% increase from the year-ago reported figure. Our estimate of $1.97 per share indicates 8.6% year-over-year growth. Visa beat earnings estimates in each of the trailing four quarters, delivering an average of 8.3%. This is depicted in the graph below.
Visa Inc. Price and EPS Surprise
Visa Inc. Price and EPS Surprise
Visa Inc. price-eps-surprise | Visa Inc. Quote
The Zacks Consensus Estimate for revenues is pegged at $7.7 billion, suggesting an 8.8% jump from the year-ago reported figure, whereas our estimate predicts an 8% increase.
What the Quantitative Model Suggests
Our proven model conclusively predicts an earnings beat for Visa this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Earnings ESP for the company is +0.79%. The Most Accurate Estimate is pegged at $2.02 per share, higher than the Zacks Consensus Estimate of $2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Visa currently has a Zacks Rank #3.
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Factors Driving Earnings
Rising travel and entertainment-related spending are expected to have driven Visa’s performance in the fiscal first quarter. The adoption of digital payments is expected to have continued in the quarter under review.
The Zacks Consensus Estimate for total volume, which consists of cash volume and payment volume (the primary lever of service revenues), indicates an increase of 5.4% from the year-ago period's reported figure. Our estimate indicates a 9% increase in the metric for the quarter under review.
As the company draws revenues as a set percentage of total transaction value every time a customer makes payments with a debit/credit card, higher spending means more revenues in the form of transaction processing fees. The consensus mark and our estimate for total payments transactions both indicate a 12.4% year-over-year increase. The metric for U.S. operations alone is expected to jump 10.7% year over year.
We expect data processing revenues to increase 8.4% year over year in the fiscal first quarter. With growth in payment volume and processed transactions, Visa’s operating efficiency is expected to have improved in first-quarter fiscal 2023. This is expected to have positioned the company for year-over-year bottom-line growth and an earnings beat.
However, rising expenses are likely to have partially offset the positive impacts of higher volumes. We expect adjusted total operating expenses for the quarter under review to increase 13.5% year over year due to increased Personnel, Network and Processing, and Professional Fees expenses.
Other Stocks That Warrant a Look
Here are some other companies from the broader Business Services space that you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this time around:
TuSimple Holdings Inc. TSP has an Earnings ESP of +4.09% and is currently a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TuSimple’s bottom line for the to-be-reported quarter has been unchanged over the past week. TSP beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 10.6%.
Avis Budget Group, Inc. CAR has an Earnings ESP of +10.36% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Avis Budget Group’s bottom line for the to-be-reported quarter is pegged at $6.66 per share, which improved 3.7% in the past 30 days. CAR beat earnings estimates in each of the past four quarters, with an average surprise of 67.2%.
FLEETCOR Technologies, Inc. FLT has an Earnings ESP of +0.66% and a Zacks Rank of 3.
The Zacks Consensus Estimate for FLEETCOR’s bottom line for the to-be-reported quarter is pegged at $3.90 per share, indicating 4.8% year-over-year growth. FLT beat earnings estimates in each of the past four quarters, with an average surprise of 3.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Visa Inc. (V) : Free Stock Analysis Report
Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research |
NEWS_137 | Shares of FleetCor Technologies Inc. FLT, +0.86% inched 0.86% higher to $200.41 Monday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's third consecutive day of gains. FleetCor Technologies Inc. closed $64.89 below its 52-week high ($265.30), which the company achieved on April 21st.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as PayPal Holdings Inc. PYPL, +0.52% rose 0.52% to $79.50, Fidelity National Information Services Inc. FIS, +0.76% rose 0.76% to $74.48, and Fiserv Inc. FISV, +1.44% rose 1.44% to $105.55. Trading volume (426,924) remained 62,438 below its 50-day average volume of 489,362.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_138 | Mastercard Incorporated MA is scheduled to release fourth-quarter 2022 results on Jan 26, before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for Mastercard’s fourth-quarter earnings per share is pegged at $2.56, which indicates an improvement of 8.9% from the prior-year quarter’s reported figure. Our estimate matches the consensus mark.
The consensus mark for revenues stands at $5.8 billion, suggesting 10.4% growth from the year-ago quarter’s reported number, which matches our estimate.
Earnings Surprise History
Mastercard boasts a stellar earnings surprise history. Its bottom line beat estimates in each of the trailing six quarters. This is depicted in the chart below:
Mastercard Incorporated Price and EPS Surprise
Mastercard Incorporated Price and EPS Surprise
Mastercard Incorporated price-eps-surprise | Mastercard Incorporated Quote
What Our Quantitative Model Unveils
Our proven model predicts an earnings beat for Mastercard this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is precisely the case here.
Earnings ESP: Mastercard has an Earnings ESP of +0.36% because the Most Accurate Estimate of $2.57 is pegged higher than the Zacks Consensus Estimate of $2.56. You can uncover the best stocks before they're reported with our Earnings ESP Filter.
Zacks Rank: MA currently carries a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here.
Factors to Note
Revenues of Mastercard are likely to have gained on the back of growing worldwide gross dollar volume (GDV) and switched transactions coupled with rebounding cross-border volumes in the fourth quarter. Strong consumer spending despite continued inflationary headwinds might have favored MA’s quarterly performance.
Per the last earnings call, net revenue growth on a year-over-year basis is forecasted to lie at the high end of a mid-teens rate, on a currency-neutral basis, excluding acquisitions, in the fourth quarter.
Mastercard’s GDV (which denotes the dollar volume of activity on Mastercard-branded cards during a particular period, on a local currency basis and U.S. dollar-converted basis) is expected to have benefited from increased usage of its debit and credit cards both within and outside the United States in the to-be-reported quarter. Increased confidence of consumers in traveling is expected to have provided an impetus to MA’s GDV.
The Zacks Consensus Estimate for Mastercard’s total GDV for all Mastercard-branded programs is pegged at $2.2 billion, which indicates a 3.3% rise from the prior-year quarter’s reported figure.
Switched transactions (the number of transactions initiated and switched through Mastercard’s network) are likely to have witnessed an uptick in the fourth quarter on the back of increased issuance of Mastercard-branded cards. Pursuing contactless acceptance initiatives by MA might have also favored its quarterly performance. The consensus mark for switched transactions suggests 10.3% growth from the year-ago quarter’s reported figure.
Recovery in cross-border travel spending coupled with relaxation of border restrictions are likely to have driven cross-border volumes of Mastercard.
However, its top-line growth might be partly dampened by increased rebates and incentives resulting from growing volumes and transactions coupled with new and renewed deal activity in the to-be-reported quarter.
Additionally, the operating costs of Mastercard are likely to have escalated in the fourth quarter due to increased expenses incurred in relation to acquisitions and personnel costs. An elevated expense level might have negatively impacted MA’s margins.
On the last earnings call, management anticipates operating expenses to witness low double-digit growth year over year in the fourth quarter, on a currency-neutral basis, excluding acquisitions and special items.
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Other Stocks to Consider
Here are some other companies from the Business Services space, which according to our model have the right combination of elements to beat on earnings this time around:
Amadeus IT Group, S.A. AMADY has an Earnings ESP of +9.76% and a Zacks Rank of 1 at present. The Zacks Consensus Estimate for AMADY’s fourth-quarter 2022 earnings stands at 41 cents per share, indicating a nearly five-fold increase from the prior-year quarter’s reported figure.
The consensus mark for Amadeus’ fourth-quarter earnings has been revised 7.9% north over the past seven days.
Inspired Entertainment, Inc. INSE currently has an Earnings ESP of +17.72% and a Zacks Rank of 2. The Zacks Consensus Estimate for INSE’s fourth-quarter 2022 earnings is pegged at 26 cents per share. A loss of 5 cents per share was reported in the prior-year quarter.
Inspired Entertainment’s earnings beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 19.02%.
FLEETCOR Technologies, Inc. FLT has an Earnings ESP of +0.66% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for FLT’s fourth-quarter 2022 earnings stands at $3.90 per share, suggesting an improvement of 4.8% from the prior-year quarter’s reported figure.
FLEETCOR Technologies’ bottom line surpassed estimates in each of the trailing four quarters, the average surprise being 3.78%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
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Amadeus IT Group SA Unsponsored ADR (AMADY) : Free Stock Analysis Report
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Zacks Investment Research |
NEWS_139 | Shares of FMC Corp. FMC, -0.56% slipped 0.56% to $127.48 Monday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. FMC Corp. closed $13.51 below its 52-week high ($140.99), which the company achieved on April 20th.
Despite its losses, the stock outperformed some of its competitors Monday, as Corteva Inc. CTVA, -0.74% fell 0.74% to $61.90. Trading volume (500,053) remained 213,694 below its 50-day average volume of 713,747. |
NEWS_140 | Nucor Corporation NUE introduced Elcyon, a sustainable heavy gauge steel plate product to address the increasing demand for America’s offshore wind energy producers. This product will be manufactured at Nucor’s $1.7 billion state-of-the-art Brandenburg steel mill at Kentucky. Elcyon has large plate dimensions, improved weldability and excellent toughness when compared to its competing products.
Nucor is pursuing certification under LEED v4, which is regarded as the highest standard for sustainable building design, construction and operation, from the U.S. Green Building Council for its Brandenburg steel plant. This has made the Brandenburg steel plant the world’s first steel plant to seek this certification. The steel plant has the capacity to produce 1.2 million tons of steel annually. The new mill is located at the largest steel plate consuming region of the country, strategically placing it to meet domestic demand for plate products.
The company is using its recycled scrap-based electric arc furnace to manufacture Elcyon, which is a clean and advanced steel product. This steel making process has greenhouse gas emissions intensity of about one-fifth of the global blast furnace steel making average based on scope 1 and 2 emissions. To meet the need for precise quality standards of offshore wind energy designers, manufacturers and fabricators, Nucor utilizes thermo-mechanical controlled processing (TMCP) at the new mill to manufacture Elcyon, which is a one-of-a-kind steel product made in the United States.
The passage of the Inflation Reduction Act, which includes a $300 million investment for clean energy development and climate programs, has aided the Biden Administration’s goal to construct 30 gigawatts of offshore wind power by 2030. Elcyon is seen as an important component of the supply chain to continue building America’s offshore wind power infrastructure.
Nucor has been the leader of sustainable steel production, and the launch of Elcyon and the Brandenburg mill has further elevated the company’s position. Nucor has been constantly working toward meeting demand of customers and other stakeholders as seen through the launch of Econiq last year, the world’s first net-zero steel available at scale, to becoming the first industrial company to join the United Nations 24/7 carbon-free energy global impact.
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The company stated that Elcyon’s larger and thicker plates will help the United States become a leader in offshore wind production and meet rising demand for alternative energy sources. The company also stated that it will continue to invest and build recycled steel facilities to pursue a future of clean energy. The launch of Elcyon will be offered in a wide range of plate grades and sizes to meet the unique and specific needs of its end users.
NUE’s shares have gained 61% in the past year, outperforming industry’s growth of 22%.
Zacks Investment Research
Image Source: Zacks Investment Research
Nucor expects its earnings for the fourth quarter to be between $4.25 and $4.35 per share. This guidance suggests a decline on a sequential basis as well as from the year-ago quarter. Lower shipment volumes, lower average selling prices and seasonal factors are expected to have been headwinds for NUE’s steel mills segment in the fourth quarter. Nucor also said that economic uncertainties and concern for recession could put a dent on future steel demand.
Nucor Corporation Price and Consensus
Nucor Corporation Price and Consensus
Nucor Corporation price-consensus-chart | Nucor Corporation Quote
Zacks Rank & Key Picks
Nucor currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks to consider in the basic materials space include AngloGold Ashanti Limited AU, FMC Corporation FMC and Air Products and Chemicals, Inc. APD. AU carries a Zacks Rank #1, while FMC and APD both have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FMC’s shares have gained 19.4% in the past year. The company has a projected earnings growth rate of 6.5% for the current year. It topped the Zacks Consensus Estimate in all of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.9% on average.
AngloGold’s shares have gained 13.6% in the past year. The Zacks Consensus Estimate for AU’s current-year earnings has been revised 32.6% upward in the past 60 days. The company has a projected earnings growth rate of 25.3% for the current year.
Air Products’ shares have gained 7.7% in the past year. The company has a projected earnings growth rate of 9.7% for the current fiscal year. The Zacks Consensus Estimate for APD’s current fiscal-year earnings has been revised 0.4% upward in the past 60 days.
Air Products outpaced the Zacks Consensus Estimate in all of the last four quarters. It delivered a trailing four-quarter earnings surprise of 1.7% on average.
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Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report
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AngloGold Ashanti Limited (AU) : Free Stock Analysis Report
FMC Corporation (FMC) : Free Stock Analysis Report
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Zacks Investment Research |
NEWS_141 | For Immediate Release
Chicago, IL – January 23, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Exxon Mobil Corp. XOM, Fomento Económico Mexicano, S.A.B. de C.V. FMX, Prologis, Inc. PLD, Marsh & McLennan Companies, Inc. MMC and Becton, Dickinson and Co. BDX
Here are highlights from Friday’s Analyst Blog:
Top Stock Reports for Exxon Mobil, FEMSA and Prologis
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Exxon Mobil Corp., Fomento Económico Mexicano, S.A.B. de C.V. and Prologis, Inc.. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Shares of Exxon Mobil have outperformed the Zacks Oil and Gas - Integrated industry over the past year (+52.0% vs. +31.8%). The company's bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns make it a relatively lower-risk energy sector play.
Exxon Mobil has made more than 30 discoveries in offshore Guyana since 2015. Exxon Mobil also has a strong presence in the prolific Permian Basin, where it delivered record production in the third quarter. Considering the low cost of production in both assets, it will continue to generate handsome returns. Also, a strong presence in chemicals and refining operations is noteworthy.
However, the company has constantly been bearing the brunt of increasing expenses, adversely affecting its income. Also, the integrated energy giant's financials were weakened by years-long significant spending on low-return developments and the coronavirus pandemic.
(You can read the full research report on Exxon Mobil here >>>)
Shares of Fomento Económico Mexicano have outperformed the Zacks Beverages - Soft Drinks industry over the past year (+2.7% vs. +0.5%). The company's revenues improved year over year, driven by gains across all business units resulting from effective growth strategies and robust demand across markets. Its bottom line surpassed the Zacks Consensus Estimate in Q3, while the revenues lagged.
FEMSA's digital initiatives and business expansion endeavors have also been aiding results. Its efforts to expand in the U.S. specialized distribution segment bodes well. The company displays strong financial flexibility.
However, FEMSA continued to witness gross margin decline due to contraction at Proximity, Health, Fuel, Logistics & Distribution and Coca-Cola FEMSA segments. Supply-chain disruptions and higher raw material costs hurt results.
(You can read the full research report on Formento Economico Mexicano here >>>)
Prologis' shares have underperformed the Zacks REIT and Equity Trust - Other industry over the past year (-21.3% vs. -16.8%). The company is facing rising supply of industrial real estate in several markets is likely to intensify competition and curb pricing power. Rising interest rates add to its woes. The recent estimate revision trend for 2023 funds from operations (FFO) per share indicates an unfavorable outlook.
However, Prologis' fourth-quarter 2022 results reflected healthy leasing activity with solid rent growth. Given its capacity to offer high-quality facilities in key markets, the firm is poised to capitalize on the favorable industrial real estate industry trends.
Along with the fast adoption of e-commerce, this asset category is set to gain from a likely rise in inventory levels. Hence, with a healthy operating platform, strategic buyouts and a solid balance sheet, it is expected to prosper.
(You can read the full research report on Prologis here >>>)
Other noteworthy reports we are featuring today include Marsh & McLennan Companies, Inc. and Becton, Dickinson and Co.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
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Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
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Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research |
NEWS_142 | Shares of Fox Corp. Cl A FOXA, +3.52% rose 3.52% to $32.67 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Fox Corp. Cl A closed $12.28 short of its 52-week high ($44.95), which the company reached on February 10th.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as Apple Inc. AAPL, +2.35% rose 2.35% to $141.11, Amazon.com Inc. AMZN, +0.28% rose 0.28% to $97.52, and Netflix Inc. NFLX, +4.36% rose 4.36% to $357.42. Trading volume (1.8 M) remained 690,629 below its 50-day average volume of 2.5 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_143 | Shares of First Republic Bank FRC, +1.19% advanced 1.19% to $137.80 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. First Republic Bank closed $43.95 below its 52-week high ($181.75), which the company achieved on February 10th.
The stock underperformed when compared to some of its competitors Monday, as Ameriprise Financial Inc. AMP, +1.58% rose 1.58% to $338.53. Trading volume (1.3 M) remained 414,593 below its 50-day average volume of 1.7 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_144 | The increase in consumers’ preference for in-person shopping experiences following the pandemic downtime has been driving the recovery of the retail real estate industry. Amid this environment, Federal Realty FRT is well-poised to benefit from its portfolio of premium assets in the United States.
This retail real estate investment trust’s (REIT) properties are located in the first-ring suburbs of the nine major metropolitan markets of the United States, mainly in the key coastal markets from Washington DC to Boston, San Francisco and Los Angeles. The markets have high barriers to entry and strong demographics, and the infill nature of its properties allows FRT to enjoy high occupancy.
The company has a well-diversified tenant base of retailers, including TJX Companies, Kroger and CVS Corporation. This minimizes the risks related to any particular retail industry and assures a stable source of rental revenues.
Federal Realty’s efforts to explore the mixed-use development option, which has gained immense popularity in recent years, will enable it to tap growth opportunities in areas where people prefer to live, work and play. Moreover, FRT’s expansion efforts into premium markets and initiatives to redevelop and reposition its assets seem encouraging.
On the balance sheet front, at closing in October 2022, Federal Realty had $1.4 billion of total liquidity in cash, including complete availability on its $1.25 billion facility. Further, its investment-grade credit ratings render the company favorable access to the debt market. With a strong balance sheet, FRT is well-positioned to capitalize on long-term growth opportunities.
Analysts seem bullish about this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for the company’s 2022 funds from operations (FFO) per share has moved marginally upward over the past month to $6.30, indicating a favorable outlook for FRT.
Shares of Federal Realty have risen 5.2% over the past month, outperforming its industry’s growth of 5.1%.
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Zacks Investment Research
Image Source: Zacks Investment Research
However, given the conveniences of online shopping, rising e-commerce adoption is concerning for Federal Realty. Online retailing will remain a popular choice among customers, adversely impacting the market share for brick-and-mortar stores.
A slowdown in the economy, an inflationary environment and interest rate hikes could limit consumers’ willingness to spend to some extent in the coming quarters. Also, rising interest rates might increase the company's borrowing costs, affecting its ability to purchase or develop real estate.
Stocks to Consider
Some better-ranked stocks from the retail REIT sector are National Retail Properties NNN and Tanger Factory Outlet Centers SKT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for National Retail Properties’ 2022 FFO per share has climbed up 12.3% over the past two months to $3.20.
The Zacks Consensus Estimate for Tanger Factory Outlet Centers’ 2022 FFO per share has moved marginally north over the past two months to $1.81.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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NEWS_145 | Shares of Federal Realty Investment Trust FRT, +1.63% rallied 1.63% to $109.40 Monday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Federal Realty Investment Trust closed $19.24 short of its 52-week high ($128.64), which the company reached on January 26th.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as Realty Income Corp. O, +0.83% rose 0.83% to $66.93, Kimco Realty Corp. KIM, +1.96% rose 1.96% to $21.86, and Regency Centers Corp. REG, +1.69% rose 1.69% to $65.44. Trading volume (288,015) remained 207,263 below its 50-day average volume of 495,278.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_146 | FTC Solar, Inc
T.J. Rodgers to step down from Board after 5 years
Shaker Sadasivam named Chairman of the Board
Tamara Mullings to join the Board
AUSTIN, Texas, Jan. 23, 2023 (GLOBE NEWSWIRE) -- FTC Solar, Inc. (Nasdaq: FTCI), a leading global provider of solar tracker systems, software, and engineering services, today announced that Thurman John “T.J.” Rodgers, Chairman of the Board of Directors of FTC Solar, has informed the Board that he is stepping down after five years in the role. He will remain a shareholder and continue to be available as an independent advisor. Shaker Sadasivam, an FTC Solar director since 2017, will succeed Rodgers as Chairman.
Mr. Rodgers is a founding investor in FTC Solar and has served as Chairman since the company’s inception in 2017. A recognized icon among silicon valley leaders, Rodgers notably founded and led Cypress semiconductor over a successful 34 year run, in addition to notable board leadership roles at SunPower and Enphase Energy. Amongst a number of other initiatives, Rodgers currently serves on four boards, including as Chairman of Enovix.
“On behalf of our Board and FTC’s management team, we thank T.J. for his service and longstanding commitment to the Company,” stated Sean Hunkler, President, and Chief Executive Officer of FTC Solar. “We greatly appreciate the leadership, insight, and expertise that T.J. has provided since the company’s inception.”
Mr. Rodgers stated, “It has been a pleasure to work with Sean Hunkler and the Board over the past 5 years as both a founding investor and Board Chairman. Sean and his team have built an incredible company that I believe is well-positioned for long-term growth. As the company moves forward, FTC’s management team needs and deserves full availability from its Board Chairman which, given recent increases in my commitments, I simply don’t have time to provide.” Mr. Rodgers went on to say, “I want to thank my fellow directors and wish the Company nothing but success.”
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The FTC Solar Board of Directors announced that it has elected Shaker Sadasivam as Chairman effective January 19, 2023.
“Shaker Sadasivam is an incredibly well-respected leader who, along with T.J. was the first investor in FTC Solar,” Mr. Hunkler said. Over the past five years, he has helped the company grow from concept to an industry leader, while navigating through a time of significant market disruption. He is uniquely positioned to chair the FTC Board during this period of change and significant opportunity.”
In addition to the transition at Chairman, the company has announced the appointment of Tamara Mullings, previously an FTC Solar Board observer, as a new director, effective January 19, 2023.
“We are delighted to welcome Tamara Mullings to our Board of Directors,” Hunkler continued. “Tamara has made significant contributions to the FTC Board and the company as a Board Observer over the past roughly two years, and I’m pleased to see her now transition to full member.”
Mrs. Mullings brings to FTC Solar broad experience across energy and technology. Prior to becoming a Board Observer at FTC Solar, she served as Assistant Vice President of Global Technology Services at MetLife from 2017-2021. Earlier in her career, she served as Chief of Staff for SunEdison and Head of E-Commerce for True Glory Brands, as well as strategy and program management roles with Southern California Edison and IBM. Mrs. Mullings received her MBA from Stanford University and a chemical engineering degree from Princeton University.
About FTC Solar Inc.
Founded in 2017 by a group of renewable energy industry veterans, FTC Solar is a leading provider of solar tracker systems, technology, software, and engineering services. Solar trackers significantly increase energy production at solar power installations by dynamically optimizing solar panel orientation to the sun. FTC Solar’s innovative tracker designs provide compelling performance and reliability, with an industry-leading installation cost-per-watt advantage.
FTC Solar Investor Contact:
Bill Michalek
Vice President, Investor Relations
FTC Solar
T: (737) 241-8618
E: IR@FTCSolar.com
|
NEWS_147 | Shares of Fortinet Inc. FTNT, +2.52% advanced 2.52% to $50.51 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's third consecutive day of gains. Fortinet Inc. closed $21.01 below its 52-week high ($71.52), which the company achieved on April 21st.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as Cisco Systems Inc. CSCO, +1.54% rose 1.54% to $47.50, CrowdStrike Holdings Inc. Cl A CRWD, +2.79% rose 2.79% to $106.30, and Palo Alto Networks Inc. PANW, +2.22% rose 2.22% to $149.34. Trading volume (5.7 M) eclipsed its 50-day average volume of 4.9 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_148 | Shares of Fortive Corp. FTV, +2.17% advanced 2.17% to $66.87 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Fortive Corp. closed $5.28 below its 52-week high ($72.15), which the company reached on January 24th.
The stock outperformed some of its competitors Monday, as Emerson Electric Co. EMR, +1.89% rose 1.89% to $89.00, Keysight Technologies Inc. KEYS, +0.91% rose 0.91% to $180.55, and Mettler-Toledo International Inc. MTD, +0.97% rose 0.97% to $1,576.68. Trading volume (1.6 M) eclipsed its 50-day average volume of 1.6 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_149 | The Zacks Transportation sector is widely diversified. It houses airlines, railroads, shipping and trucking companies, to name a few.
Only a handful of transportation companies (three S&P 500 members, to be exact) have reported their fourth-quarter 2022 numbers so far.
The gradual uptick in the economic scenario implies that trading volumes are consistently rising. This bodes well for the entire sector. The latest Earnings Preview indicates that the total earnings of transportation companies belonging to the S&P 500 universe are likely to increase 36.8% in fourth-quarter 2022 from the third-quarter reported levels, mainly on ramped-up economic activities.
However, headwinds like supply-chain woes, inflationary pressure and high fuel costs are likely to have hurt the fourth-quarter performance of transportation companies.
Fuel expenses represent a key input cost for any transportation player. High oil price is augmenting fuel costs. Even though oil price declined from their multi-year highs, they remain high. Oil price was up 6.7% in the October-December period.
Given this backdrop, investors interested in the Zacks Transportation sector keenly await the results of Union Pacific Corporation UNP, GATX Corporation GATX and Canadian National Railway CNI, scheduled to be released on Jan 24.
Our quantitative model predicts an earnings beat for a company if it has a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This combination increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s delve deeper.
Union Pacific’s results are likely to be boosted by impressive freight revenues as economic activities gain pace. Overall volumes are likely to have improved owing to the easing of labor woes. However, economic uncertainty and high operating expenses, mainly due to elevated fuel costs, are likely to have impacted the fourth-quarter performance. High operating expenses are likely to have led to a deterioration in the operating ratio (operating expenses as a percentage of revenues).
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Our proven model does not predict an earnings beat for Union Pacific this season as UNP has an Earnings ESP of -0.20% and a Zacks Rank #3 at present. Notably, our model had not predicted a positive surprise for UNP earlier as well, when its fourth-quarter earnings preview article was issued. At that time, UNP had an Earnings ESP of -0.36% while the Zacks Rank was the same.
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation price-eps-surprise | Union Pacific Corporation Quote
GATX’s fourth-quarter performance is likely to have been aided by the gradual improvement in the North American railcar leasing market. As a result, lease revenues are likely to have improved year over year.
However, the inflation-induced economic woes and high operating costs, mainly due to elevated fuel costs are likely to have affected the fourth-quarter performance. Our proven model does not conclusively predict an earnings beat for GATX this season as the company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
GATX Corporation Price and EPS Surprise
GATX Corporation Price and EPS Surprise
GATX Corporation price-eps-surprise | GATX Corporation Quote
We expect upbeat freight demand and favorable pricing to have boosted Canadian National’s performance in the to-be-reported quarter. Fuel surcharge revenues are also likely to have been high and may have driven the top line. Owing to favorable revenues, operating ratio is likely to have improved on a year-over-year basis in the December quarter. On the flip side, the bottom-line growth is likely to have been restricted due to elevated operating expenses, driven by high fuel price.
Our proven model predicts an earnings beat for Canadian National this season as CNI has an Earnings ESP of +0.61% and a Zacks Rank #3 at present. Notably, our model had predicted a positive surprise for CNI earlier as well, when its fourth-quarter earnings preview article was issued. At that time, CNI had an Earnings ESP of +0.51% while the Zacks Rank was the same.
Canadian National Railway Company Price and EPS Surprise
Canadian National Railway Company Price and EPS Surprise
Canadian National Railway Company price-eps-surprise | Canadian National Railway Company Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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NEWS_150 | By Nathan Gomes
(Reuters) - Defense companies are expected to post higher fourth-quarter sales, according to analysts, bolstered by easing supply chain bottlenecks and increased defense outlays as the Pentagon and its allies step up spending to aid Ukraine in its conflict against Russia.
However, Republican Kevin McCarthy's election as the speaker of the U.S. House of Representatives and his promise to curb spending have clouded the near-term outlook for weapon makers, analysts have said.
A slew of analysts has cut price targets on defense contractors since the beginning of the year, with some flagging a risk to defense outlay after House Republicans won a thin majority in the mid-term elections.
Goldman Sachs' Noah Poponak in a note about the defense budget over the past few years said, "mathematically maintaining a high growth rate is hard, and declining slightly is easy".
"U.S. fiscal policy could increasingly become a downward pressure given the significant increase in the deficit post-pandemic and recent political developments with increased pressure," Poponak said, adding that "there are geopolitical upward pressures" as well.
THE CONTEXT Defense stocks have benefited from higher outlay on weapons by the United States and its allies due to the Ukraine war, but companies have struggled with supply snags, higher costs and labor shortages.
A cut to the defense budget would negatively impact prime defense contractors such as Lockheed Martin Corp, Raytheon Technologies Corp, General Dynamics Corp and Northrop Grumman Corp, which rely on the government for a huge chunk of their revenue.
"Defense Q4's look solid but DoD budget debate overhang" is a headwind, Cowen analyst Cai von Rumohr said.
Lockheed and Raytheon kick off fourth-quarter earnings on Jan. 24, with General Dynamics and Northrop set to report later in the week.
THE FUNDAMENTALS
** Lockheed is set to report quarterly revenue of $18.27 billion and a profit of $7.37 per share, according to Refinitiv data.
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** Raytheon is expected to post quarterly revenue of $18.15 billion and a profit of 92 cents a share.
** General Dynamics is estimated to report quarterly revenue of $10.69 billion and a profit of $3.55 per share.
** Northrop is expected to report quarterly revenue of $9.66 billion and a profit of $6.58 per share.
WALL STREET SENTIMENT
** Analysts' average rating on Lockheed shares is "Hold". Median 12-month price target is $495.
** Analysts' average rating on Raytheon shares is "Buy". Median 12-month price target is $107.
** Analysts' average rating on General Dynamics shares is "Buy". Median 12-month price target is $285.
** Analysts' average rating on Northrop shares is "Buy". Median 12-month price target is $566.
(Reporting by Nathan Gomes in Bengaluru, Additonal reporting by Pratyush Thakur; Editing by Vinay Dwivedi) |
NEWS_151 | Shares of General Dynamics Corp. GD, -0.15% shed 0.15% to $232.45 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. General Dynamics Corp. closed $24.41 short of its 52-week high ($256.86), which the company reached on December 2nd.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as Raytheon Technologies Corp. RTX, +2.00% rose 2.00% to $96.25, Boeing Co. BA, +1.55% rose 1.55% to $209.97, and Lockheed Martin Corp. LMT, -0.45% fell 0.45% to $441.28. Trading volume (1.2 M) eclipsed its 50-day average volume of 966,057.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_152 | General Electric ‘s initial financial forecasts for 2023 will fall short of what Wall Street has penciled in. That shouldn’t worry investors who are paying attention.
The issue is that GE (ticker: GE) spun out its healthcare business, GE HealthCare Technologies (GEHC) on Jan. 3. Its forecasts won’t include that operation, but not all analysts have updated their calls to reflect that.
According to Bloomberg, the consensus call among analysts is for 2023 earnings per share of about $3.60 from sales of about $74 billion. The more current Wall Street estimates for 2023 project earnings per share of about $2.50 from about $60 billion in sales. Those are the numbers investors should use to evaluate management’s forecasts.
Results for the fourth quarter and the forecasts for 2023 are expected to come out on Tuesday morning. Wall Street is looking for earnings per share of $1.15 from sales of about $21.3 billion. A year ago, GE reported earnings per share of 72 cents from $20.3 billion in sales.
Comparable revenue for 2023, which includes GE’s remaining aerospace and power businesses, is estimated to rise about 8% driven by a recovery in aerospace sales. Comparable operating profit margins are expected to rise to about 13% from 6% driven by smaller losses in GE’s renewable energy business.
Investors will be looking for positive updates about the remaining businesses when management hosts a conference call at 8 a.m. Eastern Tuesday to discuss the results.
Options markets imply GE stock will move about 4%, up or down, following the earnings. Shares have moved an average of about 5% following the past four quarterly reports. They have risen once and fallen three times over that span.
GE stock is up about 21% so far this year, although the spinoff of GE HealthCare obscures the performance a bit. Including the value of the healthcare stock, up about 18%, an investor’s GE holdings have risen about 20% so far in 2023.
The S&P 500 is up about 5%. The Dow Jones Industrial Average has gained a little more than 1%.
GE HealthCare is due to report its fourth-quarter numbers on Jan. 30.
Write to Al Root at allen.root@dowjones.com |
NEWS_153 | General Electric Co. is scheduled to report next week its final quarterly results before the start of its breakup, with the industrial conglomerate expected to report its highest profit since before the COVID pandemic.
Before the Jan. 24 opening bell, the company GE, +2.69% it will release results for the fourth quarter through the end of 2022. On Jan. 3, the company completed the spinoff of its healthcare business, GE HealthCare Technologies Inc. GEHC, +4.12% . The spinoff of GE Vernova, which combines GE’s renewable energy, power, digital and energy financial services businesses, isn’t expected to be completed until early 2024. After that, GE will be known as GE Aerospace.
GE HealthCare is slated to report results on Jan. 30, before the opening bell.
GE’s stock has soared in recent months, and analyst expectations for fourth-quarter earnings have jumped, despite increasing amounts of economic data showing that industrial and manufacturing activity has been contracting. However, Wall Street estimates for revenue and free cash flow, a closely watched financial metric for GE, may be a better indicator of the economic climate, as they have slipped in recent months.
The average analyst estimate compiled by FactSet for adjusted earnings per share, which excludes nonrecurring items, has climbed to $1.15 at last look, from 94 cents at the end of the third quarter. If GE matches that forecast, it would be the highest EPS reported since the $1.31 reported for the fourth quarter of 2019.
In October, GE said in its third-quarter earnings report that it expected adjusted organic profit margin for 2022 to expand by 1.25 to 1.50 percentage points, which compares with year-over-year expansion of 1 percentage point for the first nine months of 2022. That means the company was expecting the profitability of products and services sold, excluding nonrecurring costs, to increase during the fourth quarter.
Meanwhile, the stock has soared 39% over the past three months, including a 19% jump since the GE HealthCare spinoff was completed. That compares with a 13% rally in the Industrial Select Sector SPDR exchange-traded fund XLI, +1.09% and the S&P 500’s SPX, +1.19% 7% gain over the same period.
The FactSet consensus for revenue has slipped to $21.25 billion from $21.41 billion at the end of September, but that would still represent the most revenue since the $21.93 billion recorded in the fourth quarter of 2020.
The estimate for free cash flow, a closely watched financial metric for GE, has declined to $3.98 billion from $4.35 billion at the end of the third quarter. But that would still be the highest FCF seen since the $4.36 billion recorded in the fourth quarter of 2020.
Here’s a breakdown of revenue expectations for each of GE’s business segments: |
NEWS_154 | Shares of General Electric Co. GE, +2.69% rallied 2.69% to $79.77 Monday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. General Electric Co. closed $1.41 short of its 52-week high ($81.18), which the company achieved on January 18th.
The stock outperformed some of its competitors Monday, as Honeywell International Inc. HON, +1.20% rose 1.20% to $204.46. Trading volume (10.9 M) eclipsed its 50-day average volume of 6.6 M. |
NEWS_155 | Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Gilead Sciences (GILD) and Genmab AS Sponsored ADR (GMAB). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Both Gilead Sciences and Genmab AS Sponsored ADR have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GILD currently has a forward P/E ratio of 12.20, while GMAB has a forward P/E of 31.67. We also note that GILD has a PEG ratio of 0.80. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GMAB currently has a PEG ratio of 1.14.
Another notable valuation metric for GILD is its P/B ratio of 4.94. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GMAB has a P/B of 7.37.
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These metrics, and several others, help GILD earn a Value grade of A, while GMAB has been given a Value grade of C.
Both GILD and GMAB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GILD is the superior value option right now.
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NEWS_156 | Shares of Gilead Sciences, Inc. GILD have gained 21% in the past year against the industry’s decline of 7.3%.
Gilead has a strong HIV portfolio with Biktarvy and Descovy. Biktarvy remains the leading treatment for those seeking to switch to a new regimen in the United States as well as those starting treatments in both the United States and Europe. Gilead’s HIV franchise recently got a boost with the FDA’s approval of lenacapavir under the brand name, in combination with other antiretroviral(s), for the treatment of HIV-1 infection in heavily treatment-experienced (HTE) adults with multi-drug resistant (MDR) HIV-1 infection.
Most antivirals act on just one stage of viral replication. Sunlenca is designed to inhibit HIV at multiple stages of its lifecycle and has no known cross-resistance to other existing drug classes. In addition, Sunlenca is the only HIV treatment option administered twice a year, acting as a big advantage over the existing treatments and enabling Gilead to capture market share. It was also approved by the European Commission.
Zacks Investment Research
Image Source: Zacks Investment Research
Gilead is making efforts to develop its oncology business to diversify its revenue base as competition in the HIV business is stiff.
The Cell Therapy franchise comprising Yescarta and Tecartus is slowly and steadily gaining traction. The uptake of the breast cancer drug Trodelvy has been strong and has boosted the top line.
The European Medicines Agency (EMA) recently validated a type II variation Marketing Authorization Application (MAA) for Trodelvy (sacituzumab govitecan-hziy) for the treatment of adult patients with unresectable or metastatic hormone receptor (HR)-positive, human epidermal growth factor receptor 2 (HER2)-negative (IHC 0, IHC 1+ or IHC 2+/ISH–) breast cancer patients who have received endocrine-based therapy and at least two additional systemic therapies in the metastatic setting.
In October 2022, the FDA accepted for priority review the supplemental biologics license application (sBLA) for Trodelvy for the treatment of adult patients with unresectable locally advanced or metastatic HR+/HER2-negative (IHC 0, IHC 1+ or IHC 2+/ISH–) breast cancer who have received endocrine-based therapy and at least two additional systemic therapies in the metastatic setting. The target action date is next month.
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The oncology space is lucrative and Gilead can capitalize on it, thereby creating a revenue growth driver in addition to the HIV franchise.
The company is also sitting on a huge cash balance. As of Sep 30, 2022, Gilead had $6.9 billion in cash, cash equivalents and marketable debt securities. Potential acquisitions to further expand its portfolio/pipeline bode well for the stock.
Gilead Sciences, Inc. Price and Consensus
Gilead Sciences, Inc. Price and Consensus
Gilead Sciences, Inc. price-consensus-chart | Gilead Sciences, Inc. Quote
Gilead recently announced that it will acquire the remaining rights to GS-1811 (formerly JTX-1811) from Jounce Therapeutics JNCE. Both companies amended their existing license agreement for GS-1811, which will enable Gilead to buy out any remaining contingent payments potentially due under the license agreement executed in August 2020. As part of the transaction, certain operational obligations of the parties related to GS-1811 set forth in the license agreement have also been terminated.
Gilead will be solely responsible for all further research, development and commercialization of GS-1811 globally. In exchange, Jounce will receive proceeds of $67 million for this transaction but will no longer be entitled to receive the remaining contingent payments of up to $645 million in milestones and high single-digit to mid-teens royalties based upon worldwide sales under the original license agreement.
The transaction will further strengthen Gilead’s pipeline.
However, competition is stiff in the HIV space from the likes of GSK plc GSK, and hence the approval of new treatments holds the key.
GSK’s HIV franchise recorded 7% growth in the third quarter. Growth was driven by new HIV products Dovato, Cabenuva, Rukobia, Juluca and Apretude and a favorable U.S. pricing mix.
Gilead currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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NEWS_157 | Shares of Gilead Sciences Inc. GILD, +0.27% inched 0.27% higher to $83.23 Monday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. The stock's rise snapped a four-day losing streak. Gilead Sciences Inc. closed $6.51 short of its 52-week high ($89.74), which the company reached on December 13th.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as Johnson & Johnson JNJ, -0.25% fell 0.25% to $168.31, Pfizer Inc. PFE, -0.29% fell 0.29% to $44.98, and Abbott Laboratories ABT, +1.05% rose 1.05% to $114.01. Trading volume (5.7 M) remained 1.8 million below its 50-day average volume of 7.4 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_158 | Shares of General Mills Inc. GIS, -0.08% slipped 0.08% to $77.40 Monday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. General Mills Inc. closed $10.94 below its 52-week high ($88.34), which the company reached on December 14th.
The stock underperformed when compared to some of its competitors Monday, as Mondelez International Inc. Cl A MDLZ, +0.50% rose 0.50% to $64.36, Kraft Heinz Co. KHC, +0.95% rose 0.95% to $40.26, and Hershey Co. HSY, +1.17% rose 1.17% to $217.04. Trading volume (2.7 M) remained 1.1 million below its 50-day average volume of 3.8 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_159 | Shares of Globe Life Inc. GL, +0.20% inched 0.20% higher to $117.65 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Globe Life Inc. closed $6.20 short of its 52-week high ($123.85), which the company reached on January 12th.
The stock underperformed when compared to some of its competitors Monday, as Chubb Ltd. CB, +1.43% rose 1.43% to $223.59. Trading volume (486,391) remained 110,603 below its 50-day average volume of 596,994. |
NEWS_160 | Shares of Corning Inc. GLW, +0.75% inched 0.75% higher to $36.11 Monday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Corning Inc. closed $7.36 below its 52-week high ($43.47), which the company achieved on February 10th.
The stock underperformed when compared to some of its competitors Monday, as Thermo Fisher Scientific Inc. TMO, +1.88% rose 1.88% to $604.82 and Danaher Corp. DHR, +0.95% rose 0.95% to $277.00. Trading volume (4.7 M) eclipsed its 50-day average volume of 4.0 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_161 | Shares of General Motors Co. GM, +3.08% rose 3.08% to $36.44 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. The stock's rise snapped a three-day losing streak. General Motors Co. closed $19.11 below its 52-week high ($55.55), which the company reached on February 2nd.
The stock underperformed when compared to some of its competitors Monday, as Tesla Inc. TSLA, +7.74% rose 7.74% to $143.75. Trading volume (16.7 M) eclipsed its 50-day average volume of 13.0 M. |
NEWS_162 | In a shareholder-friendly move, J.B. Hunt Transport Services, Inc. JBHT has announced a hike in its dividend payout. JBHT’s board of directors has approved a dividend hike of 5%, thereby raising its quarterly cash dividend from 40 cents per share to 42 cents. The raised dividend will be paid out on Feb 24, 2023, to all its shareholders of record as of Feb 10, 2023. The move reflects JBHT’s intention to utilize free cash to enhance its shareholders’ returns.
J.B. Hunt Transport Services, Inc. Dividend Yield (TTM)
J.B. Hunt Transport Services, Inc. Dividend Yield (TTM)
J.B. Hunt Transport Services, Inc. dividend-yield-ttm | J.B. Hunt Transport Services, Inc. Quote
J.B. Hunt has been consistently making efforts to reward its shareholders through dividends and share buybacks which are encouraging. Last year too (in January 2022), J.B. Hunt hiked its dividend by 33% to 40 cents per share (annually: $1.60).
In 2021, JBHT rewarded its shareholders through a combination of cash dividends ($124.44 million) and share repurchases ($28.47 million). Continuing the shareholder-friendly approach, the company returned approximately $886 million to shareholders through a combination of dividends ($114.23 million) and share buybacks ($26.84 million) during 2020.
Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like JBHT, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.
JBHT’s management’s decision to increase its quarterly dividend payout reflects the company’s commitment toward boosting shareholder value apart from underlining confidence in its business. We believe such shareholder-friendly initiatives boost investor confidence and positively impact the company’s bottom line.
Zacks Rank and Stocks to Consider
Currently, J.B. Hunt carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader Zacks Transportation sector are American Airlines (AAL), Teekay Tankers Ltd. (TNK) and Gol Linhas Aereas Inteligentes S.A. GOL. Teekay Tankers presently sports a Zacks Rank #1 (Strong Buy), while American Airlines and Gol Linhas currently carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
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AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 8.62%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 19.3% over the past 90 days. Shares of AAL have gained 18.8% over the past six months.
Teekay Tankers has an expected earnings growth rate of 143.11% for the current year. TNK delivered a trailing four-quarter earnings surprise of 42.23%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 44.8% over the past six months.
Gol Linhas has an expected earnings growth rate of 50.9% for the current year.
Shares of GOL have declined 2.3% over the past six months.
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NEWS_163 | Yahoo Finance's Jared Blikre and Dan Howley discuss the latest on tech layoffs.
Video Transcript
RACHELLE AKUFFO: For a look at the tech-sector performance and the accelerating wave of layoffs, we have Yahoo Finance's Jared Blikre and Dan Howley. So, Jared, let's start with you. How is it all shaking up for investors?
JARED BLIKRE: Well, this year is shaking up a little bit better than last, and this is just pretty clear here with the NASDAQ 100. If you focus on the amount of dark green in the picture, that's going to give you an overall sense of the winners and losers. Particularly the mega caps doing well this year. Alphabet, Amazon, Tesla all up more than double digits. So is Nvidia.
But you take a look at what's happened over the last year. Let me find that. And still lots of red and dark red, and some of the biggest losers here are some of the biggest stocks. Meta, that's down 53%. Tesla down 55%. Intel down 42%. And you can see the mega caps over this time [? period ?] overall doing pretty poorly.
Now let me just show you a chart we were just preparing. With the help of Dan here, I was just preparing this. Now, the blue lines indicate the pandemic headcount growth, and that is in percentage terms. You'll see Spotify here. That's up 135%. Meta, Amazon each up 100%.
Now the recent layoffs, that is in headcount drop. So Spotify only going to be about 500 of those here, so that's why you're seeing this small red rectangle. But Meta, Amazon, those are looking at losses of more than about 10,000. Alphabet substantially up there as well. So is Microsoft. So really gives you some perspective as to the layoffs that are happening in this industry.
Now, I just want to go back to our tech screen one more time and dive into some of the industries. Now the chip stocks, those are very much more cyclical. Those tend to be the trader's favorite. This is over the last year, but let me just show you what's happened this year. We've seen a great pickup in some of these cyclical names. We're seeing Taiwan Semi up 27%. Nvidia up almost 30%.
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And you compare this board with the software board, and we can see still a lot of green here but some red names. Some of the legacy names like Cisco down marginally. Activision Blizzard down 2%. But for the most part seeing software pick up as well but not quite as much as the chip stocks this year.
RACHELLE AKUFFO: Indeed, Jared. Obviously investors happy with some of these cost-cutting measures companies are taking. But, Dan, what about a breakdown for us on these latest layoff moves?
DAN HOWLEY: Yeah, we have Spotify. They laid off 6% of their workforce today, about 588 or so employees. But we also have the 12,000 that we had seen from Alphabet, Google's parent company, on Friday.
We also have, in addition to that, Amazon. They lost 1,800 employees. Meta down 11,000. Microsoft down 10,000. Salesforce, nine. Cisco, four. And then we have Twitter obviously with that 3,700 employees. That's a little bit different than the others. They're more kind of dealing with the Elon Musk purchase. So that's where those layoffs are really coming from. The other big tech names, you know, that's more tied to the economy overall.
But, you know, you look at it. Obviously they're all dealing with the same economic impacts, but each company is telling a different story with these layoffs. Microsoft, obviously the slowdown in the cloud growth as well as slowdown of PC sales. Google with advertising issues. Amazon with issues related to the huge growth that it underwent as far as its consumer business. Meta with the continued problems that they're having kind of trying to get into that metaverse mindset as well as the slowdown in ad sales.
So while there are-- the overarching story is of layoffs, the underside is that each company is trying to deal with the economic situation in its own way, and they all have their own problems.
The only company that you don't see on there is Apple. They haven't announced any layoffs yet, though there were slowdowns in hiring. |
NEWS_164 | Shares of Spotify were rising Monday as the streaming music service said it was planning to cut about 6% of its workforce across the company.
The stock gained 4.9% in premarket trading to $102.69. Spotify (ticker: SPOT) has lost almost 50% in the past year, part of the huge selloff of technology companies in 2022 as the Federal Reserve raised interest rates.
Still, the shares have risen more than 20% since Jan. 1. The latest leg higher was led by the announcement that the company would start shedding jobs across the company cut costs, joining the likes of Google-parent Alphabet (GOOGL), Amazon.com (AMZN) and Microsoft (MSFT). Alphabet announced Friday it was laying off 12,000 workers.
“To bring our costs more in line, we’ve made the difficult but necessary decision to reduce our number of employees,” Spotify CEO Daniel Ek said in a blog post on Monday. “In hindsight, I was too ambitious in investing ahead of our revenue growth. And for this reason, today, we are reducing our employee base by about 6% across the company.”
Ek also announced some managerial changes. Chief Content Officer Dawn Ostroff will be leaving the company, he said.
In October, Spotify reported a loss and talked about raising prices to boost margins. The company will release fourth-quarter results on Jan. 31.
Write to Brian Swint at brian.swint@barrons.com |
NEWS_165 | Shares of Alphabet Inc. Cl A GOOGL, +1.81% rose 1.81% to $99.79 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's third consecutive day of gains. Alphabet Inc. Cl A closed $51.76 short of its 52-week high ($151.55), which the company reached on February 2nd.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as Microsoft Corp. MSFT, +0.98% rose 0.98% to $242.58, Amazon.com Inc. AMZN, +0.28% rose 0.28% to $97.52, and Meta Platforms Inc. META, +2.80% rose 2.80% to $143.27. Trading volume (39.7 M) eclipsed its 50-day average volume of 30.1 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_166 | Microsoft to invest billions in OpenAI in quest to beat out Amazon, Google
Microsoft (MSFT) is making a multi-year, multi-billion dollar investment in OpenAI, the company behind the much discussed artificial intelligence-powered chatbot, ChatGPT. The move comes as Microsoft looks to add OpenAI’s capabilities to its own software offerings, giving it a potential edge over competitors ranging from Salesforce (CRM) to Google (GOOG, GOOGL).
“We formed our partnership with OpenAI around a shared ambition to responsibly advance cutting-edge AI research and democratize AI as a new technology platform,” Microsoft CEO Satya Nadella said in a statement.
“In this next phase of our partnership, developers and organizations across industries will have access to the best AI infrastructure, models, and toolchain with Azure to build and run their applications.”
Microsoft invested $1 billion in OpenAI in 2019. But the latest investment comes as the tech giant is contending with a round of layoffs that struck businesses ranging from its cloud services to gaming.
OpenAI has garnered enormous attention in recent years thanks to AI-powered apps including its DALL-E image platform and, more recently, the chatbot ChatGPT. Interest in ChatGPT exploded in November, when it became available for use by the general public.
In a statement, OpenAI said Microsoft’s investment will enable it to develop and research AI that is increasingly “safe, useful, and powerful.”
Microsoft Corp. CEO Satya Nadella speaks Wednesday, Dec. 2, 2015, at Microsoft's annual shareholders meeting in Bellevue, Wash. (AP Photo/Ted S. Warren)
“We’ve worked together to build multiple supercomputing systems powered by Azure, which we use to train all of our models,” the company said in a statement.
“Azure’s unique architecture design has been crucial in delivering best-in-class performance and scale for our AI training and inference workloads. Microsoft will increase their investment in these systems to accelerate our independent research and Azure will remain the exclusive cloud provider for all OpenAI workloads across our research, API and products.”
Microsoft’s announcement comes at a perilous time, however. On Jan. 18, the company said it will layoff 10,000 employees by the end of its fiscal Q3. The move will also result in a $1.2 billion charge for the company.
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OpenAI’s capabilities, however, have been touted as being a potential win for Microsoft, as it looks to build on the strength of its cloud business. Bringing OpenAI’s artificial intelligence capabilities to those platforms could give Microsoft a strong edge on rivals like market leader Amazon and third place Alphabet in the cloud industry.
There’s also talk of ChatGPT being a possible game changer for Microsoft’s Bing, giving the company what could be a major edge over Alphabet’s Google Search by providing users with easy to understand and conversational answers to their search queries.
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NEWS_167 | Microsoft Corp. and Alphabet Inc. have been rivals for decades in search, cloud and other services, but Microsoft wants to take that rivalry to a higher level of computing.
Microsoft MSFT, +0.98% announced Monday morning a long-expected new investment into OpenAI, the startup behind ChatGPT, as well as plans to deploy the startup’s AI technology widely through its myriad services. While Microsoft’s unsigned corporate blog post did not call out specific consumer services that would receive an upgrade, such as its Bing search engine, it did say “Microsoft will deploy OpenAI’s models across our consumer and enterprise products and introduce new categories of digital experiences built on OpenAI’s technology.”
The main focus of the blog post was Azure, the cloud-computing product that has excited investors with huge growth in years past, but has shown some slowdown in revenue growth in recent months that has dinged Microsoft stock. Azure competes with Amazon.com Inc.’s AMZN, +0.28% Amazon Web Services, which is believed to have the largest market share, along with Alphabet’s GOOGL, +1.81% GOOG, +1.94% Google Cloud.
“In this next phase of our partnership, developers and organizations across industries will have access to the best AI infrastructure, models and toolchain with Azure to build and run their applications,” Microsoft Chief Executive Satya Nadella said in a statement.
Many have seen Microsoft’s work with OpenAI as a serious threat to Google’s dominance in search, believing that ChatGPT’s ability to answer questions in greater depth than Google’s search results could be a game-changer.
“While Bing holds a small share of the search-engine market, Microsoft still seeks to gain share vs. Google’s dominant search engine by offering more advanced search capabilities and language models that could take market share away from Google over time,” Wedbush analyst Daniel Ives wrote Monday morning in reaction to the OpenAI news from Microsoft.
Read more: Microsoft will benefit from ChatGPT, OpenAI in multiple ways — potentially at Google’s expense, analyst says
The belief that Microsoft is now poised to jump leagues ahead of Google in search and cloud because it can incorporate OpenAI ignores a very important fact, though: Google acquired its own version of OpenAI almost exactly nine years ago. DeepMind has been operating within Alphabet since, and is already being incorporated into Google services, including Google Cloud, as the company detailed in a blog post late last year.
So, after nearly a decade with DeepMind, why isn’t Google so far ahead that Microsoft could never hope to catch up by rolling out OpenAI now? Because the company has learned that AI has issues that have not been worked out yet, and which can make the technology inherently dangerous.
“When it comes to very powerful technologies — and obviously AI is going to be one of the most powerful ever — we need to be careful,” DeepMind CEO and founder Demis Hassabis, who still runs the company within Google, said in an interview with Time recently, during which he admitted he chose Google over Facebook META, +2.80% as an acquirer because he had more trust about Google’s use of the technology. “Not everybody is thinking about those things. It’s like experimentalists, many of whom don’t realize they’re holding dangerous material.”
OpenAI’s leaders have sounded similar cautions, as ChatGPT has disappointed with certain questions. OpenAI CEO Sam Altman has publicly said that “it’s a mistake to be relying on [ChatGPT] for anything important right now.”
Microsoft executives may have to learn this lesson for themselves, though they may also find ways to incorporate AI in smaller ways. Google certainly has, as Bernstein analyst Mark Shmulik wrote in a fascinating Jan. 12 research note that broke down the many ways that Google has been able to safely incorporate AI into its search results.
“Ask Google about the weather, a person, or for a definition like ‘what is ChatGPT’ — what I’m calling structured searches with a correct answer — and you’ll notice that Google already leverages AI by showing a snippet at the top of your search results page,” he wrote. “These snippets are usually pretty good, and if they’re not you still get the normal page listings.”
ChatGPT, though, does not offer the raw links for users to doublecheck its work — It provides an answer with little ability for the questioner to validate. Shmulik’s analogy is one that many consumers will understand: Smart speakers were also supposed to replace text-based searches and offer fully formed answers to questions, but expectations that voice queries would overtake text searches and become just as trusted have not come to pass. In fact, he writes that TikTok is likely the biggest threat to Google’s search dominance in the near term.
“it is ultimately too early to tell how ChatGPT and others will impact the search landscape, and how Google will respond. Generative AI has a place in our internet future and I suspect we’ll see the technology underpin entirely new end markets that will ultimately be accretive to the current ad-supported search universe,” Shmulik concluded. “I suspect that while some of us may see the ‘outline of search’s peak,’ we’ll get closer only to discover larger peaks in the background all ruled over by the king of search, Google.”
That is not to say that Microsoft will not benefit from incorporating AI, just as Google has. The company could find more of a leg-up in Azure, since its cloud-computing product is more popular than Google Cloud, as well as other software products in which Microsoft has its own lead on Google, like its Office suite.
But whatever progress Microsoft makes will likely be slow, and not altogether apparent immediately or without a deep knowledge of technology. And it is unlikely to lead to a huge upheaval in the current tech landscape, or Microsoft’s valuation and financial performance, at least in the near term. |
NEWS_168 | (Adds details of partnership, background)
By Jeffrey Dastin
Jan 23 (Reuters) - Microsoft Corp on Monday announced a further multibillion dollar investment in OpenAI, deepening ties with the startup behind the chatbot sensation ChatGPT and setting the stage for more competition with rival Alphabet Inc's Google.
Recently touting a revolution in artificial intelligence (AI), Microsoft is building on a bet it made on OpenAI nearly four years ago, when it dedicated $1 billion for the startup co-founded by Elon Musk and investor Sam Altman.
It has since built a supercomputer to power OpenAI's technology, among other forms of support.
Microsoft in a blog post has now announced "the third phase" of its partnership "through a multiyear, multibillion dollar investment" including additional supercomputer development and cloud-computing support for OpenAI.
Both companies will be able to commercialize the AI tech that results, the blog post said.
A Microsoft spokesperson declined to comment on the terms of the latest investment, which some media outlets earlier reported would be $10 billion.
Microsoft is committing even more resources to keep the two companies at the forefront of artificial intelligence via so-called generative AI, technology that can learn from data how to create virtually any type of content simply from a text prompt.
OpenAI's ChatGPT, which produces prose or poetry on command, is the prime example that last year gained widespread attention in Silicon Valley.
Microsoft last week said it aimed to imbue such AI into all its products, as OpenAI continues to pursue the creation of human-like intelligence for machines.
Microsoft has started adding OpenAI's tech to its search engine Bing, which for the first time in years is being discussed as a potential rival to Google, the industry leader.
The widely anticipated investment shows how Microsoft is locked in competition with Google, the inventor of key AI research that is planning its own unveil for this spring, a person familiar with the matter previously told Reuters.
Microsoft's bet comes days after it and Alphabet each announced layoffs of 10,000 or more workers. Redmond, Washington-based Microsoft warned of a recession and growing scrutiny of digital spend by customers in its layoff announcement. (Reporting By Jeffrey Dastin in Palo Alto, California; Additional reporting by Eva Mathews in Bengaluru; Editing by Krishna Chandra Eluri, Kirsten Donovan and Jan Harvey) |
NEWS_169 | Shares of Laboratory Corp. of America Holdings LH, +0.88% inched 0.88% higher to $257.83 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's third consecutive day of gains. Laboratory Corp. of America Holdings closed $32.37 short of its 52-week high ($290.20), which the company achieved on February 10th.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as IQVIA Holdings Inc. IQV, +2.30% rose 2.30% to $228.75 and Centene Corp. CNC, -0.47% fell 0.47% to $75.79. Trading volume (442,428) remained 246,855 below its 50-day average volume of 689,283.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_170 | Thermo Fisher Scientific Inc. TMO is slated to release fourth-quarter 2022 results on Feb 1, 2023 before market open.
In the last reported quarter, Thermo Fisher’s earnings of $5.08 per share exceeded the Zacks Consensus Estimate by 6.28%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.27%.
Let's discuss the factors that are likely to get reflected in the upcoming results.
Factors at Play
Through the months of the fourth quarter, Thermo Fisher’s Analytical Instruments segment is expected to have generated strong sales, banking on electron microscopy, chromatography, mass spectrometry, chemical analysis as well as research and safety market channel businesses.
The company is expected to have recorded growth, driven by a favorable business mix and new launches. The company advanced its Orbitrap portfolio, launching the Orbitrap Ascend Tribrid mass spectrometer. In electron microscopy, the company introduced the Thermo Scientific Arctis Cryo-Plasma Focused Ion Beam, an automated microscope that streamlines cryoelectron tomography. These are all expected to have contributed to the Q4 top line of Thermo Fisher.
However, the industrywide trend of record-level inflation, supply issues and staffing shortages are expected to have deterred growth in several areas within this business.
Thermo Fisher Scientific Inc. Price and EPS Surprise
Thermo Fisher Scientific Inc. Price and EPS Surprise
Thermo Fisher Scientific Inc. price-eps-surprise | Thermo Fisher Scientific Inc. Quote
Within the Life-Science Solutions segment, the company is expected to have registered growth in its bioproduction business, banking on progress with cell culture media, single-use technologies and a rapidly growing purification resins business as well as pharma services business.
Further, in terms of performance in high-growth and emerging markets, the company has made major investments in bioproduction of late. It has opened a second facility in Utah and a new facility in Tennessee, both of which are operational now. It has also expanded its Grand Island, New York cell culture media facility and opened a purification facility in Massachusetts. These developments are expected to have contributed to the company’s revenues in Q4.
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However, this might have been offset by lower revenues in the genetic sciences business due to a moderation in COVID testing revenues compared to the year-ago period.
The Specialty Diagnostics segment (Clinical Diagnostics business from the molecular controls that go into testing kits) is expected to have registered positive contributions in the form of continued growth in the microbiology and transplant diagnostics businesses. Looking at the consistently growing resurgence of virus-led healthcare needs, the Microbiology, Healthcare Market Channel and Clinical Diagnostics businesses are expected to have witnessed growth in Q4. More specifically, the company’s strong underlying growth in the healthcare market channel, transplant diagnostics and clinical diagnostics businesses is expected to have contributed to the to-be-reported quarter’s top line. However, this might have been offset by lower COVID-19 testing revenues and the ongoing macroeconomic headwinds.
Within the Laboratory Products and Services segment, the company is expected to have gained from strong productivity and volume leverage within the pharma services business and the research and safety market channel. Also, the PPD business in the research and safety market channel as well as plastics used in testing workflows and cold storage equipment manufactured by the lab products business are expected to have generated strong sales growth in the fourth quarter.
Q4 Estimates
The Zacks Consensus Estimate for total revenues of $10.36 billion for the fourth quarter suggests a 3.2% decline from the prior-year quarter’s reported figure. The consensus mark for earnings of $5.19 per share indicates a 20.6% decline from the year-ago quarter’s reported figure.
What Our Quantitative Model Predicts
Per our proven model, stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of beating estimates. This is not the case as you can see:
Earnings ESP: Thermo Fisher has an Earnings ESP of -0.62%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Cardinal Health CAH has an Earnings ESP of +5.75% and a Zacks Rank of #2. The company will release fourth-quarter 2022 results on Feb 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardinal Health has a long-term expected earnings growth rate of 11.7%. Cardinal Health’s earnings yield of 6.87% compares favorably with the industry’s 4.34%.
Hologic HOLX has an Earnings ESP of +3.13% and a Zacks Rank of #2. Hologic is scheduled to release first-quarter fiscal 2023 results on Feb 1.
Hologic’s long-term historical earnings growth rate is estimated at 23.4%. Hologic’s earnings yield of 4.35% compares favorably with the industry’s -6.74%.
Laboratory Corporation of America Holdings or LabCorp LH currently has an Earnings ESP of +2.67% and a Zacks Rank of #2. LabCorp is scheduled to release fourth-quarter 2022 results on Feb 16.
LabCorp’s long-term historical earnings growth rate is estimated at 26.1%. LabCorp’s earnings yield of 7.02% compares favorably with the industry’s 4.34%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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NEWS_171 | L3Harris Technologies, Inc. LHX is slated to report its fourth-quarter and full-year 2022 results on Jan 26 after market close.
L3Harris Technologies has a four-quarter earnings surprise of 0.46%, on average. Strong revenue performance across all its business segments may have contributed to its overall fourth-quarter top line. However, supply-chain headwinds and net higher inflationary input costs may have dented the bottom line.
Integrated Mission Systems – a Key Catalyst
Increased revenues from the newly awarded armed overwatch program and commercial aviation solutions are expected to have benefited this segment’s revenues in the fourth quarter of 2022.
The Zacks Consensus Estimate for Integrated Mission Systems’ fourth-quarter revenues, pegged at $1,706 million, suggests growth of 9.5% from the year-ago quarter’s reported figure.
Space and Airborne Systems – Another Revenue Contributor
An increase in revenues from responsive satellite programs is likely to have boosted revenues from the Space and Airborne Systems segment in the fourth quarter.
The Zacks Consensus Estimate for Space and Airborne Systems’ fourth-quarter revenues, pegged at $1,548 million, suggests an improvement of 20.4% from the year-ago quarter’s reported figure.
Communication Systems to Boost Revenues
Higher volume sales for Tactical Communications are likely to have positively impacted the revenues of the segment in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Communication Systems’ fourth-quarter revenues is pegged at $1,130 million, implying a growth rate of 11% from the prior-year reported figure.
L3Harris Technologies Inc Price and EPS Surprise
L3Harris Technologies Inc Price and EPS Surprise
L3Harris Technologies Inc price-eps-surprise | L3Harris Technologies Inc Quote
Fourth-Quarter Estimates
In the fourth quarter of 2022, LHX’s top line is likely to have benefited from an improvement in revenues across all its segments. However, lower deliveries due to volatility in the availability of electronic components might have an adverse impact on the overall top line.
Meanwhile, supply-chain headwinds and net higher inflationary input costs may continue to impact the bottom line in the soon-to-be-reported quarter. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $4.33 billion, indicating a decline of 0.4% from the prior-year reported figure.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $3.21 per share, suggesting a decrease of 2.7% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for L3Harris Technologies this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
L3Harris Technologies has an Earnings ESP of -1.38% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three defense players you may want to consider as these have the right combination of elements to post an earnings beat this season:
Airbus Group EADSY has an Earnings ESP of +6.25% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Airbus boasts a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for EADSY’s third-quarter sales is pegged at $21.1 billion.
Leidos (LDOS ) has an Earnings ESP of +1.19% and a Zacks Rank #3. LDOS delivered a four-quarter average earnings surprise of 2.01%.
The Zacks Consensus Estimate for Leidos’ fourth-quarter sales is pegged at $3.61 billion, suggesting a growth rate of 3.4% from the prior-year reported figure. The Zacks Consensus Estimate for Leidos’ fourth-quarter earnings implies an improvement of 3.2% from the prior-year reported figure.
Virgin Galactic Holdings SPCE has an Earnings ESP of +1.22% and a Zacks Rank #3. SPCE delivered a four-quarter average negative earnings surprise of 9.01%.
The Zacks Consensus Estimate for Virgin Galactic’s fourth-quarter sales suggests a growth rate of 271.4% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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L3Harris Technologies Inc (LHX) : Free Stock Analysis Report
Virgin Galactic Holdings, Inc. (SPCE) : Free Stock Analysis Report
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NEWS_172 | Shares of L3Harris Technologies Inc. LHX, +0.90% inched 0.90% higher to $194.25 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. L3Harris Technologies Inc. closed $85.46 below its 52-week high ($279.71), which the company reached on March 7th.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as Raytheon Technologies Corp. RTX, +2.00% rose 2.00% to $96.25, Boeing Co. BA, +1.55% rose 1.55% to $209.97, and Lockheed Martin Corp. LMT, -0.45% fell 0.45% to $441.28. Trading volume (1.6 M) eclipsed its 50-day average volume of 1.3 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_173 | Shares of Linde PLC LIN, -0.65% shed 0.65% to $326.49 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. The stock's fall snapped a two-day winning streak. Linde PLC closed $21.11 short of its 52-week high ($347.60), which the company achieved on December 13th.
Trading volume (1.9 M) eclipsed its 50-day average volume of 1.7 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_174 | Shares of LKQ Corp. LKQ, +2.29% rose 2.29% to $57.24 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. LKQ Corp. closed $1.61 below its 52-week high ($58.85), which the company achieved on January 17th.
Trading volume (845,529) remained 537,897 below its 50-day average volume of 1.4 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_175 | Shares of Eli Lilly & Co. LLY, -1.12% shed 1.12% to $342.21 Monday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's fifth consecutive day of losses. Eli Lilly & Co. closed $33.04 short of its 52-week high ($375.25), which the company reached on December 5th.
The stock underperformed when compared to some of its competitors Monday, as Johnson & Johnson JNJ, -0.25% fell 0.25% to $168.31. Trading volume (3.4 M) eclipsed its 50-day average volume of 2.7 M. |
NEWS_176 | Eli Lilly and Company LLY and partner Boehringer Ingelheim announced that the FDA has accepted its supplemental new drug application (sNDA) seeking approval of its SGLT-2 inhibitor Jardiance (empagliflozin) for chronic kidney disease (CKD) indication.
The sNDA, which seeks approval for Jardiance, Lilly’s blockbuster diabetes once-daily medicine, to reduce the risk of kidney disease progression and cardiovascular death in adults with CKD, was based on data from the EMPA-KIDNEY phase III study. Data from the study showed that treatment with Jardiance plus standard of care led to a 28% reduction in the risk of kidney disease progression or cardiovascular death in adults with CKD compared with placebo on top of standard of care.
The FDA had granted Fast Track designation to Jardiance to reduce the risk of kidney disease progression and cardiovascular death in adults with CKD in March 2020.
We remind investors that in March 2022, an Independent Data Monitoring Committee had recommended that the EMPA-KIDNEY study be stopped early. The recommendation followed a formal interim assessment that demonstrated a clear positive efficacy in people with chronic kidney disease
Lilly’s stock has risen 43.9% in the past year compared with an increase of 16.1% for the industry.
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Other than type II diabetes, Jardiance is also approved to reduce cardiovascular death in adults with type II diabetes and known cardiovascular disease. Jardiance was approved for chronic heart failure in people with reduced left ventricular ejection fraction (LVEF) and for heart failure with preserved LVEF indication in 2021/2022.
Jardiance is a key top-line driver for Lilly. In the first nine months of 2022, it generated sales worth $1.45 billion, up 37% year over year. The potential approval for the CKD indication can boost sales higher in the future quarters.
Other SGLT2 inhibitors available in the market are J&J’s JNJ Invokana and AstraZeneca’s AZN Farxiga/Forxiga.
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AstraZeneca’s Farxiga/Forxiga recorded sales of $3.2 billion, up 49% year over year.
Farxiga/Forxiga was approved for the CKD indication in the United States and EU in 2021. AstraZeneca’s Farxiga was approved for the treatment of heart failure with reduced ejection fraction indication in the United States and EU in 2020. Late-stage studies are ongoing on Farxiga for heart failure with preserved ejection fraction (HFpEF) and myocardial infarction.
J&J’s Invokana recorded sales of $357 million, down 19.5% year over year.
Zacks Rank & Stock to Consider
Eli Lilly has a Zacks Rank #4 (Sell) currently.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked large drugmaker is Sanofi SNY, which has a Zacks Rank #2 (Buy).
Estimates for Sanofi’s 2022 earnings per share have increased from $4.16 per share to $4.31 while that for 2023 have jumped from $4.31 per share to $4.40 in the past 60 days. Sanofi’s stock has declined 3.5% in the past year.
Sanofi beat earnings expectations in all the trailing four quarters. The company delivered a four-quarter earnings surprise of 9.50%, on average.
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NEWS_177 | Shares of Lockheed Martin Corp. LMT, -0.45% shed 0.45% to $441.28 Monday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. Lockheed Martin Corp. closed $57.67 short of its 52-week high ($498.95), which the company achieved on December 2nd.
The stock underperformed when compared to some of its competitors Monday, as Raytheon Technologies Corp. RTX, +2.00% rose 2.00% to $96.25, Boeing Co. BA, +1.55% rose 1.55% to $209.97, and Northrop Grumman Corp. NOC, +0.02% rose 0.02% to $450.87. Trading volume (1.7 M) eclipsed its 50-day average volume of 1.4 M. |
NEWS_178 | Shares of Lincoln National Corp. LNC, +0.63% inched 0.63% higher to $31.95 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Lincoln National Corp. closed $44.45 short of its 52-week high ($76.40), which the company reached on February 10th.
The stock underperformed when compared to some of its competitors Monday, as MetLife Inc. MET, +0.71% rose 0.71% to $70.69, Prudential Financial Inc. PRU, +1.38% rose 1.38% to $99.99, and AFLAC Inc. AFL, +0.69% rose 0.69% to $71.54. Trading volume (2.1 M) remained 899,071 below its 50-day average volume of 3.0 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_179 | Shares of Alliant Energy Corp. LNT, -0.02% slid 0.02% to $53.88 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. Alliant Energy Corp. closed $11.49 below its 52-week high ($65.37), which the company achieved on April 11th.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as Duke Energy Corp. DUK, -0.82% fell 0.82% to $100.99, Exelon Corp. EXC, -1.23% fell 1.23% to $41.82, and Sempra SRE, +0.47% rose 0.47% to $158.74. Trading volume (1.2 M) remained 169,285 below its 50-day average volume of 1.3 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_180 | Shares of Lowe's Cos. LOW, +0.28% inched 0.28% higher to $205.11 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Lowe's Cos. closed $35.60 short of its 52-week high ($240.71), which the company reached on February 2nd.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as Amazon.com Inc. AMZN, +0.28% rose 0.28% to $97.52, Home Depot Inc. HD, +0.15% rose 0.15% to $315.48, and Walmart Inc. WMT, +1.49% rose 1.49% to $142.64. Trading volume (3.4 M) eclipsed its 50-day average volume of 3.2 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_181 | Shares of Lam Research Corp. LRCX, +3.87% advanced 3.87% to $490.78 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Lam Research Corp. closed $132.46 below its 52-week high ($623.24), which the company reached on January 24th.
Trading volume (1.7 M) eclipsed its 50-day average volume of 1.4 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_182 | Longtime Texas Homebuilding Executive to Oversee Region
NEWPORT BEACH, Calif., Jan. 23, 2023 /PRNewswire/ -- Landsea Homes Corporation (Nasdaq: LSEA) ("Landsea Homes" or the "Company"), a publicly traded residential homebuilder, announced today that Vince Ruffino has been named the new President for the Texas Division of the company.
Landsea Homes (PRNewsfoto/Landsea Homes)
"Vince is a longtime veteran of homebuilding in Texas, which will be very beneficial as our plans for this division come to fruition this year," said Mike Forsum, president and chief operating officer, Landsea Homes. "We are fortunate to have Vince's experience and expertise leading the division as we bring our best-in-class homes to the master-planned community in Kyle, where we are developing nearly 60% of the homes available. New homebuyers will have an opportunity to experience the unique lifestyle offered in one of the fastest-growing cities in Texas."
Ruffino brings nearly three decades of homebuilding experience to Landsea Homes, joining the company after most recently serving as Executive Vice President of Operations/Division President for Richmond American Homes. Previously in Texas he served as a Division Manager for Red Door Homes in Houston after spending nearly a decade as the Vice President of Construction Operations for Chesmar Homes LP. He began his career as Director of Construction for Lennar Homes in Houston.
"I am very honored and humbled about the opportunity to lead the Texas division of one of the top public homebuilders in the nation, Landsea Homes," said Ruffino. "We have a lot of exciting work ahead of us this year. With more than 900 lots in Kyle, our homes will be the first in Texas to be equipped with our High Performance Home features, which are sure to resonate well with new homebuyers."
About Landsea Homes Corporation
Landsea Homes Corporation (Nasdaq: LSEA) is a publicly traded residential homebuilder based in Newport Beach, CA that designs and builds best-in-class homes and sustainable master-planned communities in some of the nation's most desirable markets. The company has developed homes and communities in New York, Boston, New Jersey, Arizona, Florida, Texas and throughout California in Silicon Valley, Los Angeles, and Orange County. Landsea Homes was named the 2022 winner of the prestigious Builder of the Year award, presented by BUILDER magazine, in recognition of a historical year of transformation.
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An award-winning homebuilder that builds suburban, single-family detached and attached homes, mid-and high-rise properties, and master-planned communities, Landsea Homes is known for creating inspired places that reflect modern living and provides homebuyers the opportunity to "Live in Your Element." Our homes allow people to live where they want to live, how they want to live – in a home created especially for them.
Driven by a pioneering commitment to sustainability, Landsea Homes' High Performance Homes are responsibly designed to take advantage of the latest innovations with home automation technology supported by Apple®. Homes include features that make life easier and provide energy savings that allow for more comfortable living at a lower cost through sustainability features that contribute to healthier living for both homeowners and the planet.
Led by a veteran team of industry professionals who boast years of worldwide experience and deep local expertise, Landsea Homes is committed to positively enhancing the lives of our homebuyers, employees, and stakeholders by creating an unparalleled lifestyle experience that is unmatched.
For more information on Landsea Homes, visit: https://landseahomes.com/.
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SOURCE Landsea Homes |
NEWS_183 | CHANHASSEN, Minn., Jan. 23, 2023 /PRNewswire/ -- Life Time Group Holdings, Inc. ("Life Time" or the "Company") (NYSE: LTH) today announced that S&P Global Ratings ("S&P Global") has upgraded the Company's issuer credit rating to 'B-' from 'CCC+'. S&P Global cited "increased certainty around deleveraging path" as a reason for the upgrade.
Life Time, Inc. (PRNewsfoto/Life Time, Inc.)
"We appreciate S&P Global's enhanced rating, which reflects strong growth in our revenue and membership dues, improvements in our operating margins, and the strengthening of our balance sheet," said Life Time Founder, Chairman and CEO, Bahram Akradi. "We remain focused on driving financial performance while delivering an incredible experience and comprehensive offering to our members."
About Life Time®
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its portfolio of more than 160 athletic country clubs across the United States and Canada. The company's healthy way of life communities and ecosystem address all aspects of healthy living, healthy aging and healthy entertainment for people 90 days to 90+ years old. Supported by a team of more than 30,000 dedicated professionals, Life Time is committed to providing the best programs and experiences through its clubs, iconic athletic events and comprehensive digital platform.
Cision
View original content to download multimedia:https://www.prnewswire.com/news-releases/life-time-debt-upgraded-by-sp-global-301727744.html
SOURCE Life Time Group Holdings, Inc. |
NEWS_184 | DALLAS, Jan. 23, 2023 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) and the Transport Workers Union Local 550 (TWU 550) today announced they reached a Tentative Agreement for the airline's Dispatch Employees.
"This agreement rewards our Dispatch Employees for their many contributions while also supporting the needs of our business," said Adam Carlisle, Vice President Labor Relations at Southwest Airlines®. "I appreciate the partnership and dedication from both Negotiating Teams as they worked to reach this agreement."
"On behalf of the TWU 550 Board, I would like to thank the Negotiating Teams from both TWU 550 and Southwest® for the tireless work and effort they put into negotiating our latest Tentative Agreement," said Brian Brown, President of the TWU 550. "This agreement brings our members industry-leading pay, quality of life improvements, and work rules that benefit our members and help maintain Southwest's competitive edge in the industry."
This Tentative Agreement covers Southwest's more than 450 Flight Dispatchers, Assistant Dispatchers, Flight Superintendents, Dispatch Specialists, and Dispatch ATC Specialists. The TWU 550 will share details directly with its members about the agreement and the voting process.
ABOUT SOUTHWEST AIRLINES CO.
Southwest Airlines Co. operates one of the world's most admired and awarded airlines, offering its one-of-a-kind value and Hospitality at 121 airports across 11 countries. Having celebrated its 50th Anniversary in 2021, Southwest took flight in 1971 to democratize the sky through friendly, reliable, and low-cost air travel and now carries more air travelers flying nonstop within the United States than any other airline.1 Based in Dallas and famous for an Employee-first corporate Culture, Southwest maintains an unprecedented record of no involuntary furloughs or layoffs in its history. By empowering its more than 64,0002 People to deliver unparalleled Hospitality, the maverick airline cherishes a passionate loyalty among as many as 130 million Customers carried a year. That formula for success brought industry-leading prosperity and 47 consecutive years3 of profitability for Southwest Shareholders (NYSE: LUV). Southwest leverages a unique legacy and mission to serve communities around the world including harnessing the power of its People and Purpose to put communities at the Heart of its success. Learn more by visiting Southwest.com/citizenship. Southwest is also continuing to develop tangible steps toward achieving carbon neutrality by 2050, including offering Customers an opportunity to help the airline offset its carbon emissions. To be part of the solution, visit Southwest.com/wannaoffsetcarbon.
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1) U.S. Dept. of Transportation most recent reporting of domestic originating passengers boarded
2) Fulltime-equivalent active Employees
3) 1973-2019 annual profitability
Cision
View original content:https://www.prnewswire.com/news-releases/southwest-airlines-dispatchers-to-vote-on-new-contract-301728678.html
SOURCE Southwest Airlines Co. |
NEWS_185 | Shares of Southwest Airlines Co. LUV, -1.00% slumped 1.00% to $36.69 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. The stock's fall snapped a two-day winning streak. Southwest Airlines Co. closed $13.41 below its 52-week high ($50.10), which the company achieved on April 21st.
The stock demonstrated a mixed performance when compared to some of its competitors Monday, as Delta Air Lines Inc. DAL, +0.13% rose 0.13% to $39.08, United Airlines Holdings Inc. UAL, -0.36% fell 0.36% to $49.28, and American Airlines Group Inc. AAL, -1.04% fell 1.04% to $16.17. Trading volume (6.1 M) remained 313,937 below its 50-day average volume of 6.4 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_186 | Southwest Airlines is doing some internal damage control after the company’s abysmal holiday season, where 16,700 flights were cancelled. The Dallas-based carrier has offered millions in bonus pay to its employees for the disruptions, which left many workers as helpless as stranded passengers.
Southwest gave approximately $45 million to its pilots union, which works out to about $4,500 per pilot. That’s on top of bonuses that were already given for holidays and flight reassignments. The Dallas Morning News reports that “several [other] operational workgroups” were also offered bonuses for the troubles, but did not detail which groups were included.
The bonuses will be given to employees who worked shifts between Dec. 20 and Jan. 3.
Southwest suffered an operational meltdown beginning Dec. 22, when a winter storm affected Chicago and Denver, two of the airline’s major hubs. That impacted the carrier’s flight rescheduling software, which was unable to keep up with the changes and eventually lost track of thousands of employees, leaving planes without pilots and flight attendant crews—and stranding workers alongside frustrated passengers.
CEO Bob Jordan has repeatedly apologized to both groups, vowing it will not happen again, and hiring a third-party consultant to look into the problem and ensuring the software is updated.
The significant payments to workers comes as there is growing unrest among pilots about long-running contract negotiations. For the past three years, Southwest and its pilots’ union have been working on a new deal. And last week, the president of the Southwest Airlines Pilots Association called for a strike authorization vote, which will take place beginning May 1. Votes will be counted at the end of the month.
Even if pilots vote to strike, they won’t be able to walk off the job anytime soon. It’s just the first step in a series of actions required before a work stoppage can begin, under a federal law overseeing airline/labor relations.
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Mediation between the airline and its pilots is scheduled to resume on Tuesday.
This story was originally featured on Fortune.com
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Meghan Markle’s real sin that the British public can’t forgive–and Americans can’t understand
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NEWS_187 | Comcast CMCSA is set to report its fourth-quarter 2022 results on Jan 26, 2023.
The Zacks Consensus Estimate for fourth-quarter 2022 revenues is pegged at $30.35 billion, indicating 0.04% growth from the year-ago quarter’s reported figure.
The consensus mark for earnings has been unchanged at 78 cents per share in the past 30 days, suggesting a rise of 1.30% from the figure reported in the year-ago quarter.
Comcast beat on earnings in all the trailing four quarters, the average surprise being 9.99%.
Comcast Corporation Price and EPS Surprise
Comcast Corporation Price and EPS Surprise
Comcast Corporation price-eps-surprise | Comcast Corporation Quote
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Comcast’s top-line results for the to-be-reported quarter are expected to reflect a slowing broadband subscriber base due to the reversal of the pandemic trends and increased competition from fixed wireless and fiber. Nevertheless, momentum in wireless is expected to have benefited its top-line growth.
The Zacks Consensus Estimate for Cable Communication – High-Speed Internet revenues is pegged at $6.16 billion, indicating 5.2% growth from the figure reported in the year-ago quarter.
Comcast’s wireless business added 333K lines in the third quarter of 2022. The momentum is expected to have continued in the fourth quarter.
The consensus mark for Wireless revenues is pegged at $905 million, implying 27.6% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Cable Communication revenues is pegged at $16.593 billion, implying 1.1% growth from the figure reported in the year-ago quarter.
Comcast’s NBCUniversal revenues are expected to have benefited from the ongoing recovery at the theme parks, as well as growth of the company’s linear and streaming media platforms.
At the end of the fourth quarter, Peacock had more than 15 million paid subscribers in the United States. Peacock also had approximately 14 million bundled and free users, totaling around 30 million monthly active accounts.
However, Peacock’s EBITDA loss is expected to have been wider in the to-be-reported quarter due to the cost of new content.
The consensus mark for Theme Parks’ revenues is pegged at $2.07 billion, implying 9.6% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for NBCUniversal’s revenues is pegged at $9.933 billion, implying 6.4% growth from the figure reported in the year-ago quarter.
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What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Comcast has an Earnings ESP of -4.52% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you can consider, as our model shows that these have the right combination of elements to post an earnings beat:
Las Vegas Sands LVS has an Earnings ESP of +8.47% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
LVS is set to announce fourth-quarter 2022 results on Jan 25, 2023. Las Vegas shares have moved up 21.6% in the past year.
Red Rock Resorts RRR has an Earnings ESP of +17.33% and a Zacks Rank #3.
Red Rock is set to announce fourth-quarter 2022 results on Feb 7, 2023. RRR’s shares have been down 2.6% in the past year.
Take-Two Interactive Software TTWO has an Earnings ESP of +6.46% and a Zacks Rank #3.
Take-Two Interactive is set to announce third-quarter fiscal 2023 results on Feb 6, 2023. TTWO shares have been down 35.4% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Comcast Corporation (CMCSA) : Free Stock Analysis Report
Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report
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Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report
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NEWS_188 | Shares of Las Vegas Sands Corp. LVS, +1.50% advanced 1.50% to $55.39 Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Las Vegas Sands Corp. hit a new 52-week high, surpassing its previous peak of $55.34, which the company achieved on January 19th.
Trading volume (4.8 M) remained 292,652 below its 50-day average volume of 5.1 M. |
NEWS_189 | Shares of Lamb Weston Holdings Inc. LW, -0.45% shed 0.45% to $96.13 Monday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. Lamb Weston Holdings Inc. closed $4.64 short of its 52-week high ($100.77), which the company achieved on January 17th.
The stock underperformed when compared to some of its competitors Monday, as Mondelez International Inc. Cl A MDLZ, +0.50% rose 0.50% to $64.36, Kraft Heinz Co. KHC, +0.95% rose 0.95% to $40.26, and General Mills Inc. GIS, -0.08% fell 0.08% to $77.40. Trading volume (2.0 M) eclipsed its 50-day average volume of 1.7 M.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use. |
NEWS_190 | General Mills, Inc. GIS looks well-placed due to its Accelerate strategy, which aids the company in making the choices of how to win and where to play to boost profitability while enhancing shareholder returns in the long run.
Gains from the strategy helped boost General Mills’ second-quarter fiscal 2023 results, wherein the top and the bottom line rose year over year and surpassed the Zacks Consensus Estimate. Considering impressive first-half results and robust business momentum, management pulled up its fiscal 2023 guidance.
The consensus mark for fiscal 2023 earnings per share (EPS) has risen by a penny in the past 30 days to $4.12. Let’s delve deeper into the factors working well for this branded consumer food company amid escalated cost headwinds.
General Mills, Inc. Price, Consensus and EPS Surprise
General Mills, Inc. Price, Consensus and EPS Surprise
General Mills, Inc. price-consensus-eps-surprise-chart | General Mills, Inc. Quote
Upsides
The company is focused on its Accelerate strategy, which was unveiled in February 2021. Under how to win, General Mills is focused on four pillars designed to provide a competitive advantage. These include brand building, undertaking innovations, unleashing scale and maintaining business strength.
The where-to-play principle is outlined to enhance the company’s capabilities to generate profitability through geographic and product prioritization, along with portfolio restructuring. This includes prioritizing investments, investing in five Global Platforms, driving growth in Local Gem brands and reshaping the portfolio.
For fiscal 2023, GIS remains committed to the Accelerate strategy, underscored by its three priorities. These involve competing efficiently through brand building, investing in Holistic Margin Management (“HMM”) and Strategic Revenue Management initiatives to counter inflation, making other strategic business investments, staying committed to ESG goals and reshaping the portfolio.
The company expects HMM cost savings of 3-4% of the cost of goods sold in fiscal 2023. For reshaping the portfolio, management announced or concluded seven transactions in fiscal 2022, including two buyouts and five divestitures, aimed at driving growth in the long run.
General Mills’ Pet segment looks well-positioned for growth. On its second-quarter earnings call, management stated that it expects the Pet sales performance to speed up in the second half of fiscal 2023 and revert to double-digit net sales growth.
The upside is likely to be led by higher capacity, better customer service, elevated brand-building investment, robust product news and anticipation of stable retailer inventory levels. A higher pet population and more humanization and premiumization of pet food have been acting as tailwinds for the company’s pet food category.
Story continues
Cost Woes to be Countered
In the second quarter of fiscal 2023, though General Mills’ adjusted gross margin increased year over year, it was partly hurt by input cost inflation, supply-chain deleverage and the increased other costs of goods sold. The company also witnessed a rise in adjusted SG&A expenses.
Management stated that it still expects the biggest factors impacting its show in fiscal 2023 are likely to be consumers’ economic status, cost inflation and supply-chain bottlenecks. The company anticipates volume elasticities to remain lower than historical levels in the second half of the fiscal.
For fiscal 2023, management expects input cost inflation of 14-15% percent of the total cost of goods sold. It also expects moderately reduced supply-chain hurdles while anticipating greater investments in brand building and other growth-driving initiatives compared with the year-ago period.
Thus, the abovementioned upsides and a focus on innovation are likely to help General Mills tide over headwinds and fuel growth. Shares of this Zacks Rank #3 (Hold) company have risen 4.3% in the past six months compared with the industry’s growth of 2%.
Food Stocks Worth Grabbing
Some better-ranked food stocks are Conagra Brands CAG, Lamb Weston LW and Campbell Soup CPB.
Conagra, a consumer-packaged goods food company, currently sports a Zacks Rank #1 (Strong Buy). CAG has a trailing four-quarter earnings surprise of 8.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Conagra’s current fiscal-year sales and earnings suggests growth of 6.8% and 11.9%, respectively, from the corresponding year-ago reported figures.
Lamb Weston, which is a frozen potato product company, currently sports a Zacks Rank #1. LW has a trailing four-quarter earnings surprise of 52.6%, on average.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year sales and EPS suggests an increase of 19.5% and 89.9%, respectively from the year-ago reported number.
Campbell Soup, which manufactures and markets food and beverage products, currently carries a Zacks Rank of 2 (Buy). CPB has a trailing four-quarter earnings surprise of 8.7%, on average.
The Zacks Consensus Estimate for Campbell Soup’s current financial-year sales and earnings suggests growth of 8.3% and 4.6%, respectively, from the corresponding year-ago reported figures.
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NEWS_191 | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, January 23rd:
Sappi Limited SPPJY: This woodfiber-based renewable resources company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7% over the last 60 days.
Sappi Ltd. Price and Consensus
Sappi Ltd. Price and Consensus
Sappi Ltd. price-consensus-chart | Sappi Ltd. Quote
Sappi has a PEG ratio of 0.18 compared with 0.45 for the industry. The company possesses a Growth Score of A.
Sappi Ltd. PEG Ratio (TTM)
Sappi Ltd. PEG Ratio (TTM)
Sappi Ltd. peg-ratio-ttm | Sappi Ltd. Quote
Lamb Weston Holdings, Inc. LW: This producer of value-added frozen potato products carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 30.4% over the last 60 days.
Lamb Weston Price and Consensus
Lamb Weston Price and Consensus
Lamb Weston price-consensus-chart | Lamb Weston Quote
Lamb Weston has a PEG ratio of 0.82 compared with 2.30 for the industry. The company possesses a Growth Score of B.
Lamb Weston PEG Ratio (TTM)
Lamb Weston PEG Ratio (TTM)
Lamb Weston peg-ratio-ttm | Lamb Weston Quote
BAE Systems plc BAESY: This company that provides defense, aerospace, and security solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.1% over the last 60 days.
Bae Systems PLC Price and Consensus
Bae Systems PLC Price and Consensus
Bae Systems PLC price-consensus-chart | Bae Systems PLC Quote
BAE Systems has a PEG ratio of 1.10 compared with 2.40 for the industry. The company possesses a Growth Score of B.
Bae Systems PLC PEG Ratio (TTM)
Bae Systems PLC PEG Ratio (TTM)
Bae Systems PLC peg-ratio-ttm | Bae Systems PLC Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
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Story continues
Sappi Ltd. (SPPJY) : Free Stock Analysis Report
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NEWS_192 | Shares of LyondellBasell Industries N.V. Cl A LYB, +0.69% inched 0.69% higher to $92.94 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. LyondellBasell Industries N.V. Cl A closed $24.28 short of its 52-week high ($117.22), which the company reached on May 31st.
Trading volume (1.5 M) remained 382,822 below its 50-day average volume of 1.9 M. |
NEWS_193 | NORTHAMPTON, MA / ACCESSWIRE / January 23, 2023 / LyondellBasell
Last month, we announced an increase to our 2030 greenhouse gas emissions (GHG) reduction targets for scope 1 and 2 emissions and added a scope 3 emissions target. These targets are relative to a 2020 baseline. Hear from Tracey Campbell, EVP, Sustainability and Corporate Affairs, as she outlines what's new about the company's climate goals.
View additional multimedia and more ESG storytelling from LyondellBasell on 3blmedia.com.
Contact Info:
Spokesperson: LyondellBasell
Website: https://www.3blmedia.com/profiles/lyondellbasell
Email: info@3blmedia.com
SOURCE: LyondellBasell
View source version on accesswire.com:
https://www.accesswire.com/736409/LyondellBasell-Climate-Goals
|
NEWS_194 | (New throughout, adds details from release of written testimony)
By David Shepardson
WASHINGTON, Jan 23 (Reuters) -
Ticketmaster learned "valuable lessons" when the Taylor Swift concert tickets sale last year was disrupted by record bot traffic, the parent company will tell a U.S. Senate committee on Tuesday.
"In hindsight there are several things we could have done better – including staggering the sales over a longer period of time and doing a better job setting fan expectations for getting tickets," Live Nation Entertainment President and Chief Financial Officer Joe Berchtold said in written testimony released by the company ahead of Tuesday's hearing.
Ticketmaster has come under harsh criticism from fans and lawmakers, accusing it of having too much control over the market for concert tickets.
"The high fees, site disruptions and cancellations that customers experienced shows how Ticketmaster’s dominant market position means the company does not face any pressure to continually innovate and improve," Senator Amy Klobuchar said.
In November, Ticketmaster was deluged with more than 3.5 billion requests from fans, bots and scalpers that overwhelmed its website, and the company canceled a planned ticket sale to the general public for Swift's "Eras" tour, her first in five years.
At the time, Swift said it was "excruciating" for her to watch fans struggle to secure tickets and that she had been assured that Ticketmaster could handle large demand.
Swift said she was "not going to make excuses for anyone" because her team had been assured multiple times by ticket sellers that they could handle a surge in demand.
Ticketmaster said more than 2 million "presale" tickets were sold for Swift's tour, a single-day record for an artist.
Berchtold's testimony said Live Nation has invested over $1 billion over the years to improve Ticketmaster.
"We also need to recognize how industrial scalpers breaking the law using bots and cyberattacks to try to unfairly gain tickets contributes to an awful consumer experience," Berchtold said, calling on Congress to adopt reforms.
Story continues
Witnesses at the Senate Judiciary Committee hearing titled "That’s The Ticket: Promoting Competition and Protecting Consumers in Live Entertainment" will also include top executives from SeatGeek Inc and Jam Productions LLC and Ticketmaster critic Clyde Lawrence, a singer-songwriter in the band Lawrence.
"As Live Nation leverages its power across the concert ecosystem to increase its profits, concertgoers see higher prices, and artists experience challenging touring dynamics," Lawrence wrote in a New York Times essay last month. "Whether it meets the legal definition of a monopoly or not, Live Nation’s control of the live music ecosystem is staggering."
Ticketmaster has denied any anti-competitive practices and remains under a consent decree with the Justice Department following its 2010 merger with Live Nation.
Berchtold said the "U.S. ticketing markets have never been more competitive than they are today," citing the emergence of the enormous secondary ticketing market and new primary competitors like SeatGeek.
Live Nation included letters of support with its testimony including one from singer Garth Brooks who asked" My question is, as a country, why don’t we just make scalping illegal? The
crush of bots during an on-sale is a huge reason for program failure." (Reporting by David Shepardson and Ismail Shakil; Editing by Caitlin Webber, Tomasz Janowski and David Gregorio) |
NEWS_195 | The Zacks Leisure and Recreation Services industry is benefiting from the optimization of business processes, consistent strategic partnerships and digital initiatives. Robust demand for concerts and improving bookings for cruise operators are aiding the industry. Industry players like Live Nation Entertainment, Inc. LYV, Royal Caribbean Cruises Ltd. RCL and Madison Square Garden Entertainment Corp. MSGE are likely to gain in their respective fields owing to the factors mentioned above. However, the industry has been bearing the brunt of high costs and the slow U.S. economy.
Industry Description
The Zacks Leisure and Recreation Services industry comprises a wide range of recreation providers, such as cruise, entertainment and media owners, golf-related leisure and entertainment venue business, theme park makers, resort operators and event organizers. Some industry players have ski and sports businesses, while some operate health and wellness centers onboard cruise ships and at destination resorts. Many companies are engaged in hospitality and related businesses. A few of the industry participants also provide weight management products and services. These companies primarily thrive on overall economic growth, which fuels consumer demand for products. Demand, which is highly dependent on business cycles, is driven by a healthy labor market, rising wages and growing disposable income.
3 Trends Shaping the Future of the Leisure & Recreation Services Industry
Cruise Operators Recovery Continues: The cruise industry has been severely impacted by the coronavirus pandemic. Nevertheless, cruise operators are slowly recovering, backed by the resumption of services. Strong demand for cruising, acceleration in booking volumes and relaxation in COVID-related protocols bode well for cruise operators. However, the closure of cruise operations in China is hurting the industry. The cruise operators’ operations are likely to be influenced by the uncertainty related to the Russian invasion of Ukraine. Geopolitical developments have pushed fuel curves higher. Due to the war, most cruise operators have decided to withdraw all activity in Russia.
Theme Park Operators & Live Entertainment Companies Bouncing Back: The theme park industry, which was rattled by the coronavirus pandemic, has been benefiting from robust demand. Theme park operators have been gaining from improving visitation. Consumer spending at theme parks has been rising. Live entertainment firms have been benefiting from pent-up demand for live events and robust ticket sales.
Concerns of Slowing U.S. Economy: A slowdown in the economy is likely to hurt the industry. Apprehensions about a global slowdown and a possible recession loom over the stock market. Inflation in the United States remains the biggest challenge for the economy. The Fed hinted that it would slow down the pace of the interest rate rise with more evidence of easing inflation. However, it continues to support increasing interest rates in 2023. The consumer price index (CPI) for December 2022 came in at 5.7% after record highs of 8.2% in September and 8.3% in August. Yet, the numbers are far from the Federal Reserve’s ambitious target of 2% for a strong economy. Inflationary cost increases in labor, compensation, healthcare, freight and rent are leading to higher expenses.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Leisure and Recreation Services industry is grouped within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #70, which places it in the bottom 28% of 251 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the bottom 50% of the Zacks-ranked industries is the result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in the group’s earnings growth potential. Since Nov 30, 2022, the industry’s loss estimates for the current year have narrowed by 1.2%.
Before we present a few stocks that investors can take a look at, let’s analyze the industry’s recent stock-market performance and valuation picture.
Industry Underperforms the S&P 500
The Zacks Leisure and Recreation Services industry has underperformed the Zacks S&P 500 composite and its sector over the past year. Stocks in the industry have collectively declined 26.5% in the past year compared with the broader sector’s decline of 20%. The S&P 500 has declined 11.2% in the said time frame.
One-Year Price Performance
Valuation
On the basis of the forward 12-month EV/EBITDA (Enterprise Value/Earnings before Interest Tax Depreciation and Amortization), which is a commonly used multiple for valuing debt-laden leisure service stocks, the industry trades at 9.71X compared with the S&P 500’s 10.26X and the sector’s 8.04X. Over the past five years, the industry has traded as high as 195.37X and as low as 5.77, with the median being 12.21X, as the charts show.
EV/EBITDA Ratio (F12M) Compared With S&P
3 Leisure and Recreation Services Stocks Worth Betting On
Live Nation Entertainment: Headquartered in Beverly Hills, CA, Live Nation Entertainment (LYV) operates as a live entertainment company. The company has been benefiting from pent-up demand for live events and robust ticket sales. This, along with increased demand for digital ticketing and contactless transactions, is likely to contribute to an upside.
Shares of this Zacks Rank #2 (Buy) company have declined 31% in the past year. In 2023, the company’s sales and earnings are expected to witness a growth of 3.9% and 144.9%, from the prior year’s expected levels. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: LYV
Royal Caribbean: Headquartered in Miami, Florida, the company has been benefitting from strong demand for cruising and acceleration in booking volumes. The company’s emphasis on technological innovations and product development initiatives bode well. During the third quarter, the company reported accelerating demand for sailings in 2023.
Shares of this Zacks Rank #2 company have declined 20% in the past year. In 2023, the company’s sales and earnings are expected to witness a growth of 43.3% and 137.9%, from the prior year’s expected levels.
Price and Consensus: RCL
Madison Square Garden Entertainment: The company is engaged in the entertainment business. The company is benefiting from robust demand of its entertainment segment. The company said that it s witnessing robust demand for its portfolio of assets and brands.
Shares of this Zacks Rank #2 company have declined 33.3% in the past year. In fiscal 2023, the company’s sales and earnings are expected to witness a growth of 13% and 65.6%, year over year.
Price and Consensus: MSGE
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NEWS_196 | A top executive from Live Nation Entertainment Inc. looks set to face tough questions on Tuesday, as he appears along with other witnesses before a Democratic-run Senate committee that’s examining the ticketing industry.
The Senate Judiciary Committee is slated to hold a hearing at 10 a.m. Eastern Tuesday that’s titled “That’s The Ticket: Promoting Competition and Protecting Consumers in Live Entertainment.”
The hearing on Capitol Hill comes after Live Nation’s Ticketmaster unit botched the sale of Taylor Swift tickets in November. The singer-songwriter herself later said that it was “excruciating” to “just watch mistakes happen with no recourse.”
The witnesses slated to testify at the hearing are Live Nation LYV, +1.11% Chief Financial Officer and President Joe Berchtold; Jack Groetzinger, CEO at ticket platform SeatGeek; Jerry Mickelson, CEO at concert promoter JAM Productions; Sal Nuzzo, senior vice president at the James Madison Institute, a right-leaning think tank; Kathleen Bradish, vice president for legal advocacy at the American Antitrust Institute, a left-leaning think tank; and Clyde Lawrence, singer-songwriter with the band Lawrence.
Democratic Sen. Amy Klobuchar of Minnesota, who chairs the Senate committee’s antitrust subpanel, said in a joint statement last week with other lawmakers that the hearing “will examine how consolidation in the live entertainment and ticketing industries harms customers and artists alike.”
“The issues within America’s ticketing industry were made painfully obvious when Ticketmaster’s website failed hundreds of thousands of fans hoping to purchase tickets for Taylor Swift’s new tour, but these problems are not new,” Klobuchar also said. “For too long, consumers have faced high fees, long waits, and website failures, and Ticketmaster’s dominant market position means the company faces inadequate pressure to innovate and improve.”
Ticketmaster is estimated to control more than 70% of the market for ticketing and live events.
The antitrust subcommittee’s top Republican, Sen. Mike Lee of Utah, said he is looking forward to “exercising our Subcommittee’s oversight authority to ensure that anticompetitive mergers and exclusionary conduct are not crippling an entertainment industry already struggling to recover from pandemic lockdowns.”
Investors shouldn’t expect big changes to the ticketing industry due to Tuesday’s hearing, according to analysts at Height Capital Markets.
“In our view, while it is possible for legislation to emerge from the hearing, passage into law would be an uphill battle given the current divides between the chambers of Congress,” said Height’s director of research, Benjamin Salisbury, in a note on Monday.
Republicans have taken control of the House of Representatives this month following wins in November’s midterm elections, so analysts expect Washington gridlock on many issues, as Democrats still have their grip on the Senate and White House.
It’s more likely that the Justice Department could take action and aim to extend a key consent decree further, according to Salisbury.
That decree bars Live Nation from forcing venues that want to book its tours to use Ticketmaster, and from retaliating when venues use a competitor. It was entered into in 2010 to allow Live Nation to merge with Ticketmaster, and it was due to expire in 2020 but got extended to 2025 as part of a settlement.
“The more probable outcome is that the hearing increases the calls from Congressional members for the DOJ to either (a) extend the conditions of the current consent decree between Live Nation/Ticketmaster beyond 2025, or (b) proceed to break up the companies. However, breaking up companies is an exceedingly rare process,” the Height analyst said.
Ticketmaster has defended the state of its industry.
“The market is increasingly competitive nonetheless, with rivals making aggressive offers to venues,” the Live Nation unit said in a statement in November. “That Ticketmaster continues to be the leader in such an environment is a testament to the platform and those who operate it, not to any anticompetitive business practices.” |
NEWS_197 | Shares of Live Nation Entertainment Inc. LYV, +1.11% advanced 1.11% to $75.94 Monday, on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.19% rising 1.19% to 4,019.81 and the Dow Jones Industrial Average DJIA, +0.76% rising 0.76% to 33,629.56. This was the stock's second consecutive day of gains. Live Nation Entertainment Inc. closed $50.85 below its 52-week high ($126.79), which the company achieved on February 25th.
Trading volume (1.9 M) remained 559,463 below its 50-day average volume of 2.5 M. |
NEWS_198 | (Andrew Rae / For The Times)
If you loathe Ticketmaster for its infamous service fees or the software overload that cost you Taylor Swift tickets this summer, just know that Fred Rosen is unmoved by your anger.
“The public brought all this on itself,” said Rosen, the 79-year-old former chief executive of Ticketmaster, who grew it into an inescapable presence for concert and sports fans in the 1980s and ’90s.
“I have no sympathy for people whining about high ticket prices,” he continued, pointing a finger at fans who downloaded music without paying for it during the heyday of file-sharing services like Napster. "They helped create this situation where artists have to make all their money on tour. Artists and the market set the prices, and you can’t pay a Motel 6 price and stay at the Four Seasons.”
Fans, artists and government regulators have lambasted Ticketmaster for 30 years. But after tech failures shut out millions of fans from the on-sale for Swift’s Eras tour in November, the ticketing firm came under fire from all sides.
Furious Swifties filed a class action lawsuit against Ticketmaster, joining at least 15 other suits in the last five years against the company and its parent firm, concert promotion giant Live Nation Entertainment, that claimed anticompetitive practices. Swift herself said, “I’m not going to make excuses for anyone because we asked [Ticketmaster], multiple times, if they could handle this kind of demand and we were assured they could. … It really pisses me off that a lot of [fans] feel like they went through several bear attacks to get them.”
Taylor Swift performs during her Reputation tour in 2018. (Rick Scuteri/Invision/AP)
Bad Bunny fans found common cause after thousands attending the rapper’s December Mexico City stadium show were turned away for allegedly fake tickets. (Mexican President Andrés Manuel López Obrador said he will penalize Ticketmaster.) Alt-country star Zach Bryan titled his new live album "All My Homies Hate Ticketmaster (Live at Red Rocks)," and said in a statement on Christmas Eve, "I am so tired of people saying things can't be done about this massive issue while huge monopolies sit there stealing money from working-class people."
Story continues
Even a beloved act like Bruce Springsteen had to answer for eyebrow-raising ticket prices on his upcoming tour; they hit $5,000 after he used Ticketmaster's "dynamic pricing" model, which responds to rapid demand by raising prices in real time.
"Ticket buying has gotten very confusing, not just for the fans but for the artists," Springsteen admitted.
Members of the U.S. Congress, from Sen. Amy Klobuchar (D-Minn.) to Rep. Alexandria Ocasio-Cortez (D-N.Y.), lambasted Live Nation Entertainment, promising legislation to check the company’s power and urging the Department of Justice to reexamine the consent decree that allowed Ticketmaster to merge with Live Nation back in 2010. In 2019, the DOJ said that new regulations on Ticketmaster were “the most significant enforcement action of an existing antitrust decree by the Department in 20 years.”
“Live Nation and Ticketmaster are the owners of venues, they’re vertically integrated and they sell the tickets,” Klobuchar told The Times in November. “Artists are afraid to go through anyone but them, and they favor their own venues. ... If you own it all, you can thumb your nose at the marketplace, and that puts this problem in the hands of the Justice Department.”
Klobuchar and Mike Lee (R-Utah) will lead a Senate Judiciary Committee hearing about competition issues in the U.S. ticketing market on Jan. 24.
Even President Biden weighed in. Asked about the Swift debacle, White House Press Secretary Karine Jean-Pierre said that the president believes that “capitalism without competition isn’t capitalism, it’s exploitation.”
In a statement after the botched on-sale, Ticketmaster wrote, "We strive to make ticket buying as easy as possible for fans, but that hasn’t been the case for many people trying to buy tickets for the Eras Tour. ... The biggest venues and artists turn to us because we have the leading ticketing technology in the world — that doesn’t mean it’s perfect, and clearly for Taylor’s on-sale it wasn’t."
Live Nation Entertainment President and Chief Financial Officer Joe Berchtold, in advance written testimony provided to The Times before Live Nation's Senate Judiciary Committee hearing Tuesday, said that "Ticketmaster comes under a lot of criticism ... But I can say with great confidence that ... its performance in large onsales is the best in the industry, it has the best marketing capabilities of any ticketing system, and it is far and away the leader in preventing fraud and getting tickets into the hands of real fans."
Yet the actual role that Ticketmaster plays in live music is widely misunderstood. Over a dozen interviews with former Ticketmaster executives, artist managers, economists, lawmakers, antitrust experts, fans and industry insiders, many agreed that Ticketmaster is enormous and largely unaccountable to fans. But, they said, it is also a mostly effective business with few peers capable of operating at its scale.
“Ticketmaster got thrown under the bus because it’s easy to throw them under the bus,” Rosen said. “There is no solution that won’t piss people off more.”
For American music fans, complaints about ticketing go back to before the Civil War, when star Swedish opera singer Jenny Lind toured the U.S. under the auspices of promoter P.T. Barnum, prompting riots and howls of corruption when her shows instantly sold out at inflated prices.
Steve Waksman, the author of "Live Music in America," said that even into the 1960s and ’70s, there was some expectation that music — especially the rock ’n' roll of the hippie counterculture —-should be "free for the community, and to some degree anticapitalist."
"The idea that fans are owed something is not new," Waksman said. "But now it's not a counterculture idea, it's more consumer entitlement. Artists have built up these enormous fan relationships strengthened by social media, where fans think they're owed something because of their devotion."
Ticketmaster, with its 6,500 worldwide employees (compared to 44,000 at Live Nation Entertainment), controls close to 80% of the ticket market in the U.S. With estimated annual profits of $750 million, it is the most lucrative piece of the Live Nation conglomerate, which cleared $15 billion in yearly revenue as of Sept. 30. The company is overseen by Live Nation Entertainment Chief Executive Michael Rapino.
While there are competitors such as AEG's ticketing arm AXS, SeatGeek, Eventbrite and Tessera, no one comes close to Ticketmaster's market power.
Ticketmaster's business covers much more than concerts. If you want to see the Lakers at Crypto.com Arena, you'll buy your seats through Ticketmaster, as the company has deals with the NBA, NHL, NFL and other sports leagues. Live Nation owns or operates some venues exclusively (like the Hollywood Palladium and YouTube Theater) and leases nights at others like the Hollywood Bowl and SoFi Stadium, where they pay the venue fees to produce shows.
Founded in the 1970s in Arizona by box office executive Albert Leffler and computer programmer Peter Gadwa, among others, the company licensed nascent ticketing software and machinery to promoters and venues. Rosen, the company’s attorney, took it over in 1982, moving it to Los Angeles with investments from the billionaire Pritzker family, and bought the rights to Bay Area Seating Services, a leading competitor. "You don’t get very many chances to find somebody asleep at the switch," Rosen told The Times in 1985. "It’s just a business that has been ignored. ... It’s the game. I want to win.”
Ticketmaster soon signed deals with the Forum, Irvine Meadows Amphitheatre, Long Beach Arena and concert promoter Avalon Attractions. Ticketmaster acquired its chief rival, Ticketron, in 1991.
“Every building manager knows selling tickets is thankless,” Rosen said. “But Ticketmaster had better tech than anybody in the industry. If a show cancels, you get your money back. If you’re an arena, you need your accounting and data center to work 365 days a year. No other system on earth could deal with that volume. And we ran a clean business — we wouldn’t deal with scalpers and canceled orders to brokers.”
After Microsoft co-founder Paul Allen bought a majority stake in 1993, the grunge group Pearl Jam declared war on Ticketmaster. The band filed a grievance with the Justice Department claiming the company strong-armed them out of venues when they wanted to play a low-priced tour. Through its exclusive deals with venues, Ticketmaster could “cement control over the distribution of tickets,” the band alleged, and testified before Congress about their experience.
"Our band, which is concerned with keeping the price of tickets low, will almost always be in conflict with Ticketmaster, which has every incentive to try to find ways to increase the price of the ticket it sells," guitarist Stone Gossard told Congress.
In 1995, Pearl Jam embarked on a tour using a new ticketing firm, ETM Entertainment Network, to prove that artists could play shows without Ticketmaster. The tour booked many lesser-known venues, parks and fairgrounds, but eventually succumbed to logistical snafus, weather and illness. (It did, however, lead promoters to the Empire Polo Grounds in Indio, later the site of Coachella.)
"Pearl Jam walked into something they didn't understand," Rosen said. "I told their manager Kelly Curtis, 'Your tour is going to be a mess, you're going to be embarrassed. They said, 'No, we're going to change the industry,' I said fine, you spit in my hand like that, you're responsible when your tour blows up."
Pearl Jam's Jeff Ament, left, and Stone Gossard testify before a House Government Operations subcommittee on Capitol Hill in Washington, D.C., on June 30, 1994. (Shayna Brennan / AP)
In 1998, Barry Diller’s company, now IAC, bought a majority stake in Ticketmaster and acquired competitors like TicketWeb, software firm Paciolan Inc. and resellers Getmein and TicketsNow. The firm merged with Irving Azoff’s Front Line Management in 2008, and Live Nation acquired it in 2010 under a federal consent decree requiring it to license its software to AXS, and to not retaliate against venues using other platforms. Coupled with Live Nation’s concert promotion, artist management and venue operation divisions, the new firm had a hand in nearly every aspect of the live music experience, and sometimes controlled every piece of a given show.
Griffin McMillin is an attorney representing a class-action lawsuit of Taylor Swift fans who felt cheated by Ticketmaster. In November, more than 3.5 million Swift fans preregistered under the Verified Fan program to buy tickets, only to watch in horror as the website collapsed under 3.5 billion simultaneous attempts to buy tickets.
“I feel like they've done all this monopolistic behavior for so long, and this was just the straw that broke the camel's back,” McMillin said. “They’re going to keep gathering more and more power, charging more and more, until concerts become this luxury for only the richest people and scalpers.”
Clay Murray, 25, one of the Swift fans involved in the suit, said that fans like him waited hours in the digital line for tickets, only to end up “sobbing, crying, really upset. People can't afford to spend so much money, and I had done everything that I was supposed to do. It was personally devastating, and then the anger continued to grow."
Music fans are not Ticketmaster’s main customers. The company signs contracts with promoters and venues to sell tickets to their events, and pays advances and fees for the right to do so. Many of the contracts are exclusive, but not all. The firm does not set the price of concert tickets — artists and promoters do. And while individual contracts vary, Ticketmaster splits its service fees with the artists, venues and promoters.
Case in point: For Blink-182's reunion tour date at Banc of California Stadium on June 16, the list price of a "Platinum" ticket is $290. Add on a "service fee" of $42.90 and a "processing fee" of $5, and the price of admission (excluding parking and concessions) comes to $337.90. (There is no charge to have the ticket sent to your phone, but other shows can have "delivery charges" or "facility fees.")
The "service fee" is intentionally kept separate from the list price for two reasons: to make the base price of a ticket appear more affordable, and to create the impression that only Ticketmaster pockets that fee.
“The ticketing company does nothing whatsoever that the act doesn't tell them to do," said Bob Lefsetz, a longtime music industry analyst. "Fees were created to create another pile of money. Ticketmaster has been paid to take the heat over that for forever, so the public will never hate the act.”
Bruce Springsteen performing in 2016. (The Washington Post via Getty Images)
Eric Budish, an economics professor at the University of Chicago who studies the American ticketing market, agreed that service fees are opaque and frustrating. But they’re largely designed to insulate artists, venues and promoters from criticism.
“Ticketmaster is effectively paid to be a punching bag,” Budish said. “Their fees find ways back to the artist or venue. And the artist chooses their ticket prices.”
"Primary ticketing companies, including Ticketmaster, do not set ticket prices, do not decide how many tickets go on sale and when they go on sale, do not set service fees," Berchtold said in his Senate testimony. "Pricing and distribution strategies are determined by artists and teams ... In most cases venues set service and ticketing fees, and the majority of those fees go to the venue, not to Ticketmaster. Indeed, for as long as Live Nation has owned Ticketmaster, the portion of the service fee that Ticketmaster retains has been falling and the venue’s share has been increasing."
Ticketmaster grew so vast, in part, because it was a good deal for everyone else in the industry, according to Dean Budnick, co-author of the book “Ticket Masters: The Rise of the Concert Industry and How the Public Got Scalped.”
“Ticketmaster and Live Nation are both unfairly criticized,” Budnick said. “Fred Rosen thought he was a good partner for taking the heat, and he’s not wrong. He took it on the chin for venues and promoters.”
Jonathan Daniel, an artist manager for Fall Out Boy and Green Day, used Ticketmaster and Live Nation to handle the bands' Hella Mega stadium tour last year. “If Ticketmaster gets regulated, you’ll invite some new problems, because Ticketmaster solved a lot of them," Daniel said. "You’ll still have websites crashing whether it’s Ticketmaster or Joe’s Tickets or whatever."
Verified Fan, Ticketmaster's system to suss out actual humans from bot traffic and scalpers, had worked for acts like Springsteen and Swift in the past. But even that system couldn’t accommodate the demand for Swift's Eras.
“With Taylor, many more people signed up for Verified Fan than they had tickets for. It’s a first-of-its-kind problem,” Daniel said. "God bless Taylor, she’s extremely popular."
Several high-ranking concert industry executives, who requested anonymity so they could speak freely about the competition, said they suspected Ticketmaster erred in placing all the Eras tickets on sale at once and allowing fans to pick their own seats, which led to bottlenecked traffic. They also believed the Verified Fan database was rife with resellers with fake email addresses.
After getting shut out, frustrated Swifties then watched coveted seats hit the secondary market at astronomical markups. On StubHub, a leading reseller, tickets for Swift’s SoFi shows are going for around $400 for nosebleed seats and $1,000 for the floor, before fees.
"There’s a perception that fans don’t stand a chance," said Budish.
One 2016 study from the New York Attorney General found that more than half of the seats at an average show never went on sale to the general public but were instead reserved for presales, artist teams, fan clubs or as perks for certain credit card users.
Artists loathe secondary vendors too — the acts don’t get a cut of tickets reselling for multiples of face value. “No artist wants fans to overpay for something,” Daniel said. “But if it's a hot ticket, the secondary market becomes unreasonable."
Yet as much as fans hate resellers when they’re trying to buy, they love them when trying to flip their tickets.
“We have the tech to turn off the resale market — just put names on tickets like we do with airlines,” Budish said. “You show ID at the door and you can only buy two tickets, so money doesn’t go to brokers and there’s no feeling of a massive injustice. But the only reason it’s hard is because no one wants to actually solve that problem.”
Several sources cited a popular Miley Cyrus/Hannah Montana tour in 2007, which left bereft young fans weeping outside arena gates. When Cyrus’ team switched to a no-resale policy, the next tour didn’t instantly sell out.
“If Congress decided it was worth putting caps on the secondary market, you wouldn’t have the same pressure,” Budnick said. “But when you can't resell tickets, people have issues too. Taylor Swift’s shows are not happening until late summer. I should have a right to resell those tickets.”
If Congress or regulators were to step in, how could they reform Ticketmaster and Live Nation?
There's some precedent for ticketing legislation, like the 2016 BOTS Act, which authorized the Federal Trade Commission to levy fines for automated ticket scalping. In 2019, the DOJ extended Live Nation and Ticketmaster's consent decree by 5½ years, mandating they “may not threaten to withhold concerts from a venue if the venue chooses a ticketer other than Ticketmaster.”
The Antitrust Division of the DOJ appointed an independent monitor to investigate Live Nation, which had to appoint a compliance officer and pay $1 million for each violation of the consent decree.
“Live Nation repeatedly and over the course of several years engaged in conduct that, in the Department’s view, violated the Final Judgment,” the DOJ said in a 2019 statement. “The Department will not tolerate transgressions that hurt the American consumer.”
Live Nation Entertainment is already under extensive scrutiny after the multiple fatalities at two Live Nation-produced events, Astroworld and Once Upon a Time in L.A., with hundreds of plaintiffs suing for wrongful deaths and injuries. Industry and regulatory experts agree that, whatever the synergies, Live Nation and Ticketmaster wield outsized power across live music.
Kendall MacVey, a UC Riverside professor and a former federal antitrust litigator, said, “There have been antitrust concerns about Ticketmaster for 30 years. Both people on the left and right agree on the need for more vigorous enforcement.”
The DOJ reportedly has opened a separate investigation into Live Nation, going beyond the terms of the consent decree.
“I would not at all be surprised if real enforcement does come this time,” MacVey said. “That could mean splitting Live Nation from Ticketmaster.”
Lina Khan, the chair of the Federal Trade Commission, which has rulemaking authority for consumer protection issues, has said that Ticketmaster is an example of a firm “becoming too big to care,” and that “I'm sure it's top of mind for [DOJ].”
Such a move would create more openings for firms like AEG to competitively bid for shows. That would be a benefit in itself, Waksman said. "It's not good for consumers or the industry to have so much power tied up in one company," he added. "Live Nation has never been open about the range of effects they have had on the industry."
Randy Phillips, former CEO of AEG Live, said that, while the DOJ's consent decree prohibits monopolistic behavior, "There is supposed to be a wall between Ticketmaster and Live Nation, and most promoters don’t believe that exists."
“When Live Nation owns and operates venues, promotes the show and manages the artist that sets the service fees, you’re not going to see a lot of pushback,” Budnick said. “If you’re a venue going with Ticketmaster, Live Nation brings more major tours your way."
Breaking up the firm “would have a huge effect on Live Nation,” Lefsetz said. But it won't fix everything. “Once you take Ticketmaster out, that still doesn’t solve the underlying problems around fees and exclusives. If Ticketmaster is a separate company, they'll still be entitled to do all of that.”
Regulators could dilute Ticketmaster’s power by banning exclusive contracts for ticketing. That’s the case in much of the United Kingdom, where several companies can sell tickets to any given concert.
“In the U.S., unlike the U.K. and Europe, venues have five- to 10-year exclusive contracts with ticketing platforms like Ticketmaster,” Phillips said. “Advances to secure these contracts are revenue for the venue owners.”
Lefsetz agreed that ending exclusive deals is one obvious fix. “But say I own a building," he adds. "Can the government just choose to take away that guaranteed revenue stream from me?”
Alt-country troubadour Zach Bryan titled his latest live album "All My Homies Hate Ticketmaster." (Dania Maxwell / Los Angeles Times)
That approach might work best for popular stadium tours like Swift's, where there are few similar-sized venues for acts to perform.
“Taylor said, ‘I didn’t have many alternatives, I had to play these venues in big cities,’ and that’s where Ticketmaster’s market power manifests,” Budish, the economist, said. “If you want, you should be allowed to play SoFi for $50 a ticket and have no resale market. So if you can’t do that, why? There is a public utility aspect to those venues. Being able to play there at a price you want to set should be an option.”
The ultimate problem may just be the fact that many more people want to see Taylor Swift than there are seats available on her tour, which comes to SoFi Stadium for five nights in August. There are likely no fixes beyond raising prices, adding more dates or shutting off secondary markets.
Acts like Springsteen or the Rolling Stones curtail demand with extremely expensive tickets that their baby boomer fans are happy to pay for. Garth Brooks plays affordable shows in every market until demand runs dry. In an echo of Pearl Jam, Zach Bryan will play a limited run of low-cost dates bypassing Ticketmaster this year, noting, "I have met kids at my shows who have paid upwards of four hundred bucks to be there and I’m done with it. ... I’ve done all I can to make prices as cheap as possible and to prove to people tickets don’t have to cost $450 to see a good and honest show.”
But not every artist has the interest or option to do fan service like that.
“Taylor could go Garth mode and play as many shows as there's demand for," said Budish, "but then she’d be on the road for 10 years.”
Budnick agreed. "It’s heartbreaking, because you have an intimate relationship with Taylor, she's the soundtrack to your life. But unfortunately, unless Taylor plays 500 stadium shows, people have to adjust expectations a little bit.”
Even venues that try to quit Ticketmaster may find it's not so easy to leave. Last week, Brooklyn's Barclays Center (home of the NBA's Brooklyn Nets and arena-sized concerts) ended a seven-year deal with SeatGeek one year into the contract, to partner up with its old vendor: Ticketmaster.
Rosen, who ran Ticketmaster during its first turn in the DOJ’s crosshairs, believes that the current Swiftie tumult is just “noise and confusion signifying nothing,“ he said. “You’ve got to take the government seriously, but they could have brought a case in ’94 and didn’t. That class-action suit is all bull—. It will all end with nothing changed, because that’s not what the issues are.
“If someone has better tech and pays artists more, they’ll dislodge Ticketmaster as the premier service in the U.S.,” he said. “And when that happens, prices will go up, not down. None of this can be regulated because you can’t regulate emotions about a star. Why do people need to sit in the last 10 rows freezing in the rain? Because they need to be in the building.”
This story originally appeared in Los Angeles Times. |
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