Walmart Q2 Results Confirm Ability to Perform Well in Various Conditions, UBS Says

/ / Consumer Discretionary /

Walmart’s (WMT) Q2 results confirmed its ability to perform well across various economic conditions by taking advantage of special events, UBS said in a note emailed Friday. July was a tough month for retailers, but Walmart saw strong sales during Independence Day holiday and a good response to the start of back-to-school season. The company saw a 26% increase in overall advertising revenue, primarily driven by a 30% rise in the US Connect segment. The company’s global e-commerce segment had a 21% growth, the investment firm said. Walmart’s cost of delivery fell by 40% year over year, attributed to improved density and a rise in fees for expedited shipping options, UBS analysts noted. Walmart’s outlook for Q3 includes a modest increase in sales, with expectations of continued momentum in back-to-school sales and a conservative H2 guidance for operating income growth of 4% to 5%. UBS retained the buy rating for […]

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Boeing Chief ‘Committed to Reset’ Relationship With Unions

/ / Industrials /

Boeing (BA) Chief Executive Officer Kelly Ortberg told union representatives this week that he is “committed to reset” the company’s relationship with workers as the aircraft maker heads into labor negotiations next month, Bloomberg reported Friday. Ortberg held meetings with the presidents of Boeing’s largest union and another labor group during his first week on the job and said he wanted a new contract “where we can come together to build a strong future for our employees in the region,” Bloomberg reported, citing a memo sent to Boeing employees. The company is in the “final phase” of contract negotiations with labor groups representing over 33,000 workers, according to the memo.

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Applied Materials, Inc. (AMAT) Q3 2024 Earnings Call Transcript Summary

/ / Technology /

The following is a summary of the Applied Materials, Inc. (AMAT) Q3 2024 Earnings Call Transcript: Financial Performance: Applied Materials reported record Q3 revenue of $6.78 billion, which was up 5% year-over-year. Non-GAAP gross margin improved to 47.4%, up 100 basis points year-over-year. Non-GAAP EPS of $2.12, up 12% year-over-year. Operating cash flow and free cash flow were nearly $2.4 billion and over $2 billion, respectively. Q4 revenue and non-GAAP EPS expectations also indicate continued growth. Business Progress: Strong execution in device architecture shifts for AI, including leading-edge logic, high-performance DRAM, high-bandwidth memory, and advanced packaging. Expansion in services, with Applied Global Services delivering record revenue and expecting continued low double-digit growth. Increased investments in new product developments for ICAPS and advanced packaging technologies, expecting these segments to drive significant future growth. Opportunities: AI and datacenter computing trends driving demand across semiconductor systems, especially in DRAM, high-bandwidth memory, and advanced

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Applied Materials’s Increased Investments Will Result in Greater Growth

/ / Technology /

Applied Materials CFO Brice Hill says this quarter’s artificial-intelligence-fueled profit and revenue boosts are a harbinger for accelerated growth in its fiscal 2025. “We’re not giving a guide for ’25, but we think there’s a lot of energy around the AI markets,” he says. Unlike competitor Intel, Applied says it has no plans to cut back expenditures. Rather, the company’s continued growth will require increased investments related to research and development. That’s because AI ambitions are driving increased demand for chips, “as well as the need for significant advances in semiconductor innovation,” CEO Gary Dickerson says. Applied posts higher profit and revenue in its fiscal 3Q, while shares fall 2.7% in after-hours trading.

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Jet Delays Prompt Surge In Funding Needs

/ / Industrials

Airlines and lessors will need to raise around $150B to pay for new aircraft deliveries in 2027 compared with around $90B this year, says BOC Aviation CEO Steve Townend. The surge reflects airline passenger growth as well as delays in delivering new Airbus and Boeing jets, and the shift to relatively more wide-bodies entering the fleet. The Chinese-controlled lessor’s 2024 estimate is down around 10% from industry forecasts at the start of the year, reflecting ongoing airframe and engine supply chain snarls expected to continue for several years.

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Walmart Posts Strong 2Q Sales, Higher Profits

/ / Consumer Discretionary /

Walmart is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. Walmart posted strong second-quarter sales and higher profits, and executives said they don’t see signs of fraying demand. Walmart said that its U.S. comparable sales, which measures both stores and e-commerce, rose 4.2% in the quarter, a faster pace than in the previous two quarters. Executives said shoppers are gravitating to deals as well as the convenience of online order pickup and delivery, which led to customer gains, especially among higher-income shoppers. Dow Jones & Co. owns Factiva.

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Walmart’s Price Rollbacks Suggest Inflation Is Moderating

/ / Consumer Discretionary /

Walmart indicates that it will accelerate price rollbacks as cost inflation eases, which is a clear signal that consumer price inflation is moderating, says David Silverman, senior director of Fitch Ratings. The retail giant’s robust 2Q results amid a choppy spending climate suggests some stabilization for its customer base, although that growth likely came more from share gains, Silverman says. Walmart’s price competitiveness has allowed it to pick up market share from competitors, though its omnichannel and supply chain enhancements are helping too, Silverman says.

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Cisco Systems Fiscal Q4 Non-GAAP EPS, Revenue Fall; Plans 7% Workforce Reduction

/ / Telecommunications /

Cisco Systems (CSCO) reported fiscal Q4 non-GAAP earnings late Wednesday of $0.87 per diluted share, down from $1.14 a year earlier. Analysts polled by Capital IQ expected $0.85. Revenue for the quarter ended July 27 was $13.64 billion, down from $15.20 billion a year earlier. Analysts surveyed by Capital IQ expected $13.54 billion. The company expects fiscal Q1 2025 non-GAAP EPS between $0.86 and $0.88 on revenue ranging from $13.65 billion to $13.85 billion. Analysts polled by Capital IQ expect $0.85 and $13.76 billion, respectively. The company expects fiscal 2025 non-GAAP EPS of $3.52 to $3.58 on revenue between $55 billion and $56.2 billion. Analysts surveyed by Capital IQ expect $3.55 and $55.68 billion. The company maintained its quarterly dividend at $0.40 per share, payable Oct. 23 to stockholders of record Oct. 2. Separately, the company outlined a restructuring plan that will likely affect roughly 7% of its global workforce,

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Google Near-Term Operations Not Expected to Be Disrupted by Court Ruling, Wedbush Says

/ / Technology /

Alphabet’s (GOOG, GOOGL) Google near-term operations are not expected to be disrupted by a recent court ruling that concluded that Google is a monopolist, Wedbush Securities analysts said in a note Wednesday. “The [US Department of Justice] has not formally communicated what possible remedies it may pursue, and proceedings will likely be held in the coming months to determine potential remedies,” the analysts, including Daniel Ives, said in the note. The analysts also took note of a Bloomberg report that the DOJ is considering a bid to break up Google. “We believe this would be a stretch and also Google will clearly appeal these rulings which will be in the court system for years possibly,” the analysts said. They said they continue to see a breakup of the Big Tech business models as “highly unlikely down the road.”

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Boeing Delivers 43 Airplanes in July As Production Recovers

/ / Industrials /

Boeing delivered 43 airplanes in July, a second straight relatively solid month for the jet maker as it works to ramp up production amid supply-chain glitches and in the wake of January’s Alaska Airlines door-plug blowout. That total included 32 737 jets, three fewer than Boeing delivered in June but higher than earlier in the year when it was delivering between 15 and 25 narrowbodies per month. Deliveries included six 787s, four 767s and one 777 freighter. Boeing’s backlog is now 5,477, down from 5,506 at the end of June.

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Boeing Delivered 218 Airplanes Year-To-Date Through July, Including 166 MAX

/ / Industrials /

Boeing Delivered 218 Airplanes Year-To-Date Through July, Including 166 MAX; Reports 43 Commercial Jet Deliveries In July, Matching Last Year’s Numbers, With 31 737 MAX; 228 Gross Aircraft Orders Through July, 72 In July Alone Including 57 For 737 MAX; Net 186 Orders After Cancellations/Conversions; Six 787 Jets Delivered In July; One 737 MAX Cancellation From Aerolineas Argentinas

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Boeing Nearer To Huge Israeli Jet Order

/ / Industrials /

Israel’s planned order for up to 50 of Boeing’s revamped F-15 fighter jets and modernization of another 25 aircraft underpins plans to boost annual output to 25 as early as next year. The potential $18.8 billion deal, notified to Congress on Tuesday, would involve deliveries from 2029. That’s some 41 years after the plane was initially deployed by the U.S. Air Force, which received the first of its revamped F-15EX models in June.

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