Industrials

Boeing Shares Drop After CFO Says Q2 Deliveries Won’t Recover From Q1

Boeing (BA) shares fell 6.7% in recent Thursday trading after Chief Financial Officer Brian West said the aircraft manufacturers’ deliveries would not recover in Q2, remaining in line with Q1 due to ongoing production challenges. West confirmed that the Civil Aviation Administration of China has requested additional validation on a lithium battery, causing Boeing to halt airplane deliveries to China. This is expected to impact quarterly deliveries and cash flow, he said. The Boeing Defense, Space and Security division’s Q2 margins will be negative due to the cost pressure on the fixed-price development program, West said at the Wolfe Research Global Transportation & Industrials Conference. “Secondly, the factory actions that are happening in Puget Sound do have a knock-on effect on derivative programs,” the executive said.

Boeing Shares Drop After CFO Says Q2 Deliveries Won’t Recover From Q1 Read Post »

FedEx Poised for ‘Solid’ Fiscal Q4 Earnings, Headwinds to Offset Full-Year Cost-Cuttings, UBS Says

FedEx (FDX) is likely set to report “solid” fiscal Q4 earnings, though various headwinds are expected to dampen the impact of the parcel delivery company’s cost-cutting initiative in fiscal 2025, UBS Securities said Tuesday. Investors will likely be focused on FedEx’s full-year outlook, the firm said. “While the targeted DRIVE cost savings of [$2.2 billion] is large, we also anticipate multiple offsets including from the loss of the [United States Postal Service] contract, higher incentive compensation, lower international yields (falling airfreight prices) and two fewer operating days,” according to the note. UBS reduced its full-year EPS outlook to $21.10 from $21.72. The firm expects fiscal Q4 earnings of $5.49 a share for FedEx, topping Wall Street’s views for $5.33, with revenue growth pegged at 2%. “Within our estimate, we assume only 100 [basis points] of sequential margin improvement in Express which is conservative compared to the 10-year average of 370

FedEx Poised for ‘Solid’ Fiscal Q4 Earnings, Headwinds to Offset Full-Year Cost-Cuttings, UBS Says Read Post »

CFRA Lifts View On Shares Of Rtx Corporation To Buy From Hold

Our 12-month target price of $121, up $17, reflects a 19x multiple on our projected 2025 EPS. The applied multiple is above RTX’s historical forward average but reflects a view that demand for munitions is going to take a step higher in 2025, as we now think it possible that appropriations for defense will accelerate after the 2024 election (a more optimistic view than we had taken earlier). We keep our 2024 EPS estimate at $5.39 and raise 2025’s by $0.21 to $6.35. RTX’s Raytheon segment (37% of 2023 revenues before intra-segment eliminations) is a major player in munitions. The ongoing wars in Ukraine and Gaza, plus the risk of a partnership between Russia and China, should create appetite for more defense spending, with an emphasis on munitions and shipbuilding, in our view. RTX yields 2.4%, and we estimate a 2025 dividend payout ratio of 40%, which we see as

CFRA Lifts View On Shares Of Rtx Corporation To Buy From Hold Read Post »

Boeing Has 1 Very Good Reason Not to Design a New Jet Now — Barrons.com

Quality problems, regulatory delays, and eroding market share have many pundits wondering when Boeing will design an all-new single-aisle jet. The sooner the better goes conventional wisdom. The engines, however, might be the gating factor. Soon-to-be-retired CEO Dave Calhoun has been firm in his commitment to not design an all-new aircraft that could better compete with the Airbus A321. “I don’t want to fill a gap in a product line,” said Calhoun in November 2022. That view may have changed if technologies could deliver significant improvement. “I want to build a product that’s going to differentiate in a way that absolutely substitutes the airplanes that came before it,” added Calhoun. “That [cost] number has to be at least 20%, 25%, maybe 30% better than airplanes it replaces.” Engines play a big role in improving aircraft operating costs. A problem for Boeing is the next big thing in engine development might

Boeing Has 1 Very Good Reason Not to Design a New Jet Now — Barrons.com Read Post »

CFRA Lifts View On Shares Of Fedex Corporation To Hold From Sell

Our 12-month target price remains $261, a 12x multiple of projected FY 25 (May) EPS, in line with FDX’s historical forward average. We keep our FY 24 EPS estimate at $17.78 and FY 25’s at $21.72. Our upgrade is on valuation, with shares down almost 10% since reporting FQ3 earnings in late March 2024. We think a broader macroeconomic recovery is not yet in the making, as U.S. Manufacturing PMI data continues to wobble with the April reading of 49.2, which is a downtick from March’s 50.3. In the meantime, we think FDX (like many in the Air Freight & Logistics space) is focusing on cost controls to boost margins. Shares yield 2.0%; based on our FY 25 EPS estimate, we calculate a dividend payout ratio of 23%, which we see as very manageable. We think the key inflection point to watch will be volume growth in Express, which has

CFRA Lifts View On Shares Of Fedex Corporation To Hold From Sell Read Post »

Boeing’s Dividend Will Be Back One Day, But Not Likely Soon

Boeing’s CEO Dave Calhoun is asked at the company’s annual shareholder meeting if it would restore the dividend, suspended in 2020. Calhoun says Boeing first needs to regain financial stability, which it hopes to do by 2025 or 2026, and pay down debt. “That day will come,” he says. “We all look forward to it.”

Boeing’s Dividend Will Be Back One Day, But Not Likely Soon Read Post »

CFRA Lifts View On Shares Of Lockheed Martin To Strong Buy From Hold

Our 12-month target price of $557, raised by $100, reflects a 19.5x multiple applied to our 2025 EPS estimate. The applied multiple is above LMT’s historical forward average, but defendable, in our view, as we think Department of Defense spending on munitions will accelerate over the medium term due to ongoing conflicts in Ukraine, Gaza, and the potential threat from a more aggressive China. We keep our 2024 EPS estimate at $26.29 and raise 2025’s by $0.86 to $28.58. Shares of LMT have underperformed year-to-date, up just 2.6% versus a peer average gain of 6.8% and the S&P 500, up 7.5%. We think the earliest key catalyst is likely a 2025 Appropriations bill by Congress, which we think has a good probability of being deferred until 2025, as defense hawks may be able to drive improved spending levels. Shares yield 2.7%, and we estimate a 2025 payout ratio of 44%,

CFRA Lifts View On Shares Of Lockheed Martin To Strong Buy From Hold Read Post »

Boeing Violated Criminal Settlement After 737 MAX Crashes, Justice Department Says

By Dave Michaels and Andrew Tangel The Justice Department said Boeing violated a settlement reached three years ago over its employees’ role in two fatal jet crashes, exposing the company to potential criminal prosecution over one of the biggest crises in its history. Boeing admitted in January 2021 that two employees misled federal air-safety regulators over facets of the 737 MAX, but it entered into a form of corporate probation that allowed it to avert prosecution at the time. Now, prosecutors say the company failed to live up to obligations that it committed to in the $2.5 billion settlement. In January a fuselage panel blew off an Alaska Airlines 737 MAX, the same type of jet involved in the earlier accidents. The latest accident triggered a new criminal investigation and sparked fresh worries about a safety culture that Boeing was supposed to have fixed. The company also recently told regulators

Boeing Violated Criminal Settlement After 737 MAX Crashes, Justice Department Says Read Post »

CFRA Upholds Buy Rating On Shares Of Fiserv, Inc.

FI’s Q1 earnings were strong and are being well received today, driven by 1) better-than-expected bottom line results (adj-EPS of $1.88 surpassed consensus by $0.09); 2) sustained Clover revenue uptick, up 30% Y/Y with VAS penetration of 20%; and 3) raised 2024 guidance for adj-EPS of $8.60-$8.75 and adj-operating margin expansion of at least 125 bps. Q1 adj-revenues came in at $4.54B (+7%, +20% organically), led by Merchant Solutions (+13%, +36% organically). Financial Solutions were a little softer (+2%, +5% organically), but we note key client wins should support demand for digital payment solutions. Our 12-month target price of $180 (unchanged), 18.1x our 2025 EPS estimate, is a slight premium to FI’s three-year average of 17.0x. We up our 2024 EPS view by $0.10 to $8.75 and keep 2025’s at $9.95. Our outlook remains positive given the opportunity we see in Merchant Solutions, specifically Clover, based on sustained annualized GPV

CFRA Upholds Buy Rating On Shares Of Fiserv, Inc. Read Post »

Howmet Expects Boeing To Cut Supplier Demand

Howmet CEO John Plant says he expects Boeing to trim suppliers’ orders toward lower production rates this year as the plane maker reverses a pledge to keep demand above current airplane output. “We had to completely redo our year,” says Plant on an investor call. He says it’s pivoting resources towards more output for Airbus jets, defense products and wheels for commercial trucks. He cautions this could change if Boeing and engine suppliers GE and Safran actually boost production. While wide-body demand is increasing, Plant says Howmet has cut its assumption for monthly 787 output to five from six, still above current build rates. Howmet surges nearly 14% to $75.95, and on pace for largest percent increase since November 9, 2020, when it rose 18.99%.

Howmet Expects Boeing To Cut Supplier Demand Read Post »

How Mastercard’s Q1 Results Compare With Rival Visa: 3 Analysts Provide Their Takes

Mastercard Inc (NYSE:MA) shares came under pressure in early trading on Thursday after the company reported its first-quarter results. The results came amid an exciting earnings season. Here are some key analyst takeaways from the release. Goldman Sachs On Mastercard Analyst Will Nance maintained a Buy rating while reducing the price target from $534 to $517. Investors expected “more resilient trends” from Mastercard’s results, Nance said in a note. The company’s quarterly results were similar to Visa Inc’s (NYSE:V) report, “in that ROW volumes underperformed, notably in APAC, but also more idiosyncratically in Europe, where MA continues to lap large deal implementations,” he added. The company guided to “high end of HSD net revenue growth (vs consensus +21.4% yoy), with -2% FX impact (low-end of LDD on a CC basis, ex acquisitions)” for the second quarter, the analyst wrote. For the full year, Mastercard expects “low-end of low double digit net revenue growth (vs 12%

How Mastercard’s Q1 Results Compare With Rival Visa: 3 Analysts Provide Their Takes Read Post »

CFRA Keeps Hold Opinion On Shares Of 3m Company

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: In line with CFRA’s expectations, MMM announced a dividend cut along with first quarter results, now targeting a payout of around 40% of adjusted free cash flow – in line with industrial peers. We viewed MMM’s $1.26 quarterly dividend as unsustainable following the spin-off of Solventum amid litigation settlements and outstanding lawsuits. Pre-market share movement is positive, indicating that Q1 results and the announced dividend reset are being well received. MMM posts Q1 EPS of $2.39 (+21% Y/Y), $0.28 above consensus. Sales were flat Y/Y, with negative impacts from muted consumer spending offset by strength in automotive and electronic markets. Adjusted operating margins jumped 400 bps higher during the quarter, with traction on spending discipline, sourcing actions, and restructuring efforts aiding profitability across MMM’s three operating segments.

CFRA Keeps Hold Opinion On Shares Of 3m Company Read Post »

Scroll to Top