Mastercard (MA) reported Q1 adjusted earnings Wednesday of $3.31 per diluted share, up from $2.80 a year earlier. Analysts polled by Capital IQ expected $3.24. Net revenue for the quarter ended March 31 was $6.35 billion, up from $5.75 billion a year earlier. Analysts surveyed by Capital IQ expected $6.34 billion. Mastercard shares were down 4% in recent premarket activity.
Mastercard Q1 Adjusted Earnings, Net Revenue Rise Read Post »
By Joy Wiltermuth Fresh off reporting a more than $300 million quarterly loss, Boeing Co. saw robust demand on Monday for its $10 billion corporate-bond deal. Order books peaked at $77 billion, allowing pricing to narrow from initial levels, according to Informa Global Markets. A scarcity factor for the three- to 40-year bonds helped, with it being slightly more than three years since Boeing last borrowed in the U.S. corporate-debt market. The aircraft manufacturer’s new funds represent a “much-needed” liquidity boost that “should keep cash at healthy levels this year and into early 2025,” according to Matt Woodruff and Arda Tirnakli, aerospace and defense analysts at CreditSights. The duo estimated the financing will increase Boeing’s (BA) interest burden by about $660 million, with that burden “now total[ing] about $2.8 trillion on a proforma basis.” With safety concerns weighing on Boeing, investors have been getting a chance to own the company’s
Boeing Scores $10 Billion Bond Financing in ‘Much-needed’ Liquidity Boost Read Post »
Fitch Says Near-Term Financial Pressures Of Boeing To Be Mostly Offset By Near-Term Reduction Of Inventory, Production Optimization; Also Forecast Around 75 787 Aircraft Deliveries During Year, With Low-To-Mid Single Digit Production Per Month
Caterpillar (CAT) posted Q1 adjusted earnings Thursday of $5.60 per share, up from $4.91 a year earlier. Analysts polled by Capital IQ expected $5.13. Revenue for the quarter ended March 31 was $15.8 billion, down from $15.86 billion a year earlier. Analysts surveyed by Capital IQ expected $15.99 billion. Shares of the company declined more than 3% in recent premarket activity on Thursday.
Caterpillar’s Q1 Adjusted Earnings Increase, Revenue Declines; Shares Down Pre-Bell Read Post »
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: CAT shares are sliding today following the company’s Q1 print, with a beat on EPS being overshadowed by a nearly $200M miss on sales. We believe that high expectations were baked into the share price prior to the Q1 release. We trim our target to $335 from $360, 15x our 2025 EPS outlook of $22.35 (in line with the previous forecast; 2024 EPS lifted by $0.47 to $21.88), slightly below CAT’s long-term historical forward average. CAT posted Q1 operating EPS of $5.60 (+14% Y/Y), $0.47 above consensus. Revenues were roughly flat Y/Y, with falling volumes in Construction and Resource industries being offset by pricing realization. Energy & Transportation was once again a bright spot, contributing $433M in sales growth. Earnings expansion was largely driven by gains in
CFRA Reiterates Hold View On Shares Of Caterpillar Inc. Read Post »
Caterpillar is guiding to largely flat sales in 2024 on the expectation the company’s dealers won’t expand their equipment inventories much this year after increasing them by $700 million in 2023. Caterpillar says flat inventories at dealers will be a “headwind” for the company’s sales growth in 2024. Caterpillar’s 1Q sales slipped 1% from the same quarter a year earlier, driven by 5% drop in construction equipment sales and 7% decrease in mining equipment. The declines were partially offset by a 7% rise in sales of engines for energy and transportation. Shares sink 7% at $337.66.
Caterpillar Expects Inventories To Hold Back Sales Growth In ’24 Read Post »
Caterpillar (CAT) reported mixed first-quarter results versus a year ago impacted by lower sales volume, while the heavy equipment manufacturer expects revenue to be down on an annual basis in the current three-month period. The company reported adjusted earnings of $5.60 a share for the March quarter, up from $4.91 the year before, and ahead of the Capital IQ-polled consensus of $5.13. Revenue edged down to $15.8 billion from $15.86 billion, below the Street’s view for $15.99 billion. The stock declined 8.5% in Thursday trading. “Sales remained about flat compared to the prior year as lower volume was largely offset by favorable price realization,” Chief Financial Officer Andrew Bonfield said during an earnings call, according to a Capital IQ transcript. “The decline in volume was primarily due to lower sales to users,” led by weakness in Europe for construction industries. Machinery, energy and transportation revenue dipped 1% to $14.96 billion.
Caterpillar Sees Annual Decline in Near-Term Sales Following Mixed First Quarter Read Post »
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target price of $290, up $15, reflects a 17.5x multiple of projected 2025 EPS, slightly above GD’s historical forward average. We think a modest premium is reasonable given what should be an improving operating margin environment. We cut our 2024 EPS estimate by $0.06 to $14.61 and 2025’s by $0.04 to $16.59. Q1 EPS of $2.88 vs. $2.64 missed the consensus view by $0.06. Operating margins of 9.7% rose 20 basis points vs. the year-ago quarter and backlog rose 4% from year-end 2023. There is light at the end of the tunnel for the G700, which obtained certification in late Q1, but too late to make any deliveries in Q1. Nonetheless, GD is maintaining its guidance of 50-52 G700 deliveries in 2024. On a positive
CFRA Keeps Hold Opinion On Shares Of General Dynamics Corporation Read Post »
Boeing (BA) shares hit a 52-week low Wednesday as investors were “highly disappointed” by recent setbacks such as issues with the 787 production line and the rating downgrade by Moody’s, BofA Securities said in a note Thursday. The company’s plan to fund the potential Spirit AeroSystems acquisition through an equity offering and possible backing of an internal replacement for the chief executive contrary to market preference for an outsider exacerbated investor sentiment, according to the note. The firm said Boeing brought back the equity funding option to preserve its investment credit rating. The company’s Chief Executive David Calhoun actively backed Stephanie Pope as his successor, with several candidates in the mix including David Gitlin, the note added. BofA analysts said they expect the succession process and subsequent election of a new chief executive to add significant uncertainty to Boeing in the near term. BofA Securities cut its price target on
Boeing Investors ‘Highly Disappointed’ by Recent Setbacks, BofA Securities Says Read Post »
The following is a summary of the Caterpillar Inc. (CAT) Q1 2024 Earnings Call Transcript: Financial Performance: Caterpillar reported flat Q1 sales and revenues of $15.8 billion compared to last year. Adjusted operating profit increased by 5% to $3.5 billion. The company announced record adjusted profit per share at $5.60, an increase of 14%. Generated a free cash flow of $1.3 billion for the quarter. Notable increase in the backlog, with a value at $27.9 billion, up $400 million from the previous quarter. Performance was fueled by record deployment of $5.1 billion cash for share repurchases and dividends. Business Progress: Most end markets exhibited healthy demand for Caterpillar’s products and services. Anticipates a revenue increase in the Energy & Transportation business line, offset slightly by a softened European market in Construction Industries. The company forecasted the adjusted operating profit margin and ME&T free cash flow for 2024 to be in
Caterpillar (CAT) Q1 2024 Earnings Conference Read Post »
A resumption of orders at Boeing looks to have driven an increase in durable-goods orders last month, says Stephen Brown, North America economist at Capital Economics. Orders picked up pace in March, government figures show Wednesday, but this was down largely to a big swing in civilian aircraft orders. “The rise in headline orders was largely due to a … rebound in non-defence aircraft orders amid the resumption of orders at Boeing, following the 737 Max-related woes at the start of the year,” Brown notes, referring to safety concerns that took a heavy toll on the planemaker in the first months of the year. Stripping out this volatile component, heavy-duty goods saw only a slight increase on the month and overall investment in business equipment probably declined, Brown writes in a note.
U.S. Durable Goods Propelled by Boeing Rebound Read Post »
The following is a summary of the Visa Inc. (V) Q2 2024 Earnings Call Transcript: Financial Performance: Visa reported a strong Q2 with net revenue of $8.8 billion, indicating a 10% increase. Both GAAP and non-GAAP EPS recorded growth of 12% and 20% respectively. Payments volume showed an increase of 8% YoY in constant dollars, with U.S payments and international payments growing by 6% and 11%. Cross-border volume growth was recorded as 16% YoY excluding Intra-Europe transactions. The company adjusted its outlook for payment volume growth to high single digits from low double digits. Visa anticipates a continued robust growth in mid-teens for total cross-border volume excluding Intra-Europe. Q3 projections include low double-digit net revenue growth similar to Q2 and low teen growth for adjusted operating expenses. Business Progress: Visa expanded, adding over 100 million credentials YoY, and 20 million of those in Europe were converted from domestic networks to
Visa (V) Q2 2024 Earnings Conference Read Post »