Industrials

Advantest is highly geared to changes in sales, with average contribution margins of 36% and 51% at the gross and operating profit levels, respectively.
This works on the downside as well as the upside, something that has perhaps not received sufficient attention as optimists imagine a repeat of the recent extraordinary up-cycle.
The share price is down 19% from its July 18 high, but at the top of its 5-year P/E range even vs historical peak EPS.

Narrative and Numbers | Astral Ltd (ASTRA IN) | FY23

By Pranav Bhavsar

Astral Ltd (ASTRA IN) is a manufacturer of Chlorinated Poly Vinyl Chloride (CPVC) and Poly Vinyl Chloride (PVC) plumbing systems, catering to both residential and industrial applications.
The company offers a compelling narrative, propelled by the larger market trends of agriculture, housing, and market share expansion.
Despite the confident growth outlook, the current valuation at 75x NTM appears relatively high. It might be prudent to await a more appealing entry opportunity.

China Comm Const (1800 HK): New Contract Growth Accelerated

China Communications Construction (1800 HK) saw stronger new contract growth in 2Q23, increasing by 15.5% YoY. Sharp pick-up in domestic contracts is the key driver.
We estimate its backlog at end-1H23 at Rmb3.9trn, up 15% from end-FY22. This equals 5.1x the projected FY23 revenue, indicating very comfortable forward coverage.
Despite a 22.5% share price increase YTD, it trades on just 0.21x P/B. Compared with an ROE of 7-8%, it is inexpensive. Upside will come from asset value realisation.

Sodick (6143) – Aiming to Steer Through Current Circumstances

Digging in for the duration – continuing weak demand from China contributed significantly to weak Q1-2 FY12/2023 numbers, with sales declining 14.8% YoY and resulting in an operating loss.
The key issue is that customers are experiencing low utilization rates at production facilities, and hence do not require new capacity.
Sodick revised its guidance for FY12/2023, with expectations of similar market conditions persisting into H2 FY12/2023.

IPower, Inc. – Water Tower Hour Recap: A Conversation with CFO Kevin Vassily

iPower CFO Kevin Vassily joined the Water Tower Hour to discuss the company’s business and existing and new business opportunities for FY24.
A return to bottom-line profitability and the development of the new Business Services segment will be the focus for the company in FY24.
iPower is an e-commerce platform operating as an online retailer and supplier of home goods, hydroponics, pet, and wellbeing products.

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Aug 18

Daily Brief Industrials: Advantest Corp, Astral Ltd, China Communications Construction, Sodick Co Ltd, iPower and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Advantest (6857 JP): High Gearing on the Downside
Narrative and Numbers | Astral Ltd (ASTRA IN) | FY23
China Comm Const (1800 HK): New Contract Growth Accelerated
Sodick (6143) – Aiming to Steer Through Current Circumstances
IPower, Inc. – Water Tower Hour Recap: A Conversation with CFO Kevin Vassily

Advantest (6857 JP): High Gearing on the Downside

Advantest is highly geared to changes in sales, with average contribution margins of 36% and 51% at the gross and operating profit levels, respectively.
This works on the downside as well as the upside, something that has perhaps not received sufficient attention as optimists imagine a repeat of the recent extraordinary up-cycle.
The share price is down 19% from its July 18 high, but at the top of its 5-year P/E range even vs historical peak EPS.

Narrative and Numbers | Astral Ltd (ASTRA IN) | FY23

By Pranav Bhavsar

Astral Ltd (ASTRA IN) is a manufacturer of Chlorinated Poly Vinyl Chloride (CPVC) and Poly Vinyl Chloride (PVC) plumbing systems, catering to both residential and industrial applications.
The company offers a compelling narrative, propelled by the larger market trends of agriculture, housing, and market share expansion.
Despite the confident growth outlook, the current valuation at 75x NTM appears relatively high. It might be prudent to await a more appealing entry opportunity.

China Comm Const (1800 HK): New Contract Growth Accelerated

China Communications Construction (1800 HK) saw stronger new contract growth in 2Q23, increasing by 15.5% YoY. Sharp pick-up in domestic contracts is the key driver.
We estimate its backlog at end-1H23 at Rmb3.9trn, up 15% from end-FY22. This equals 5.1x the projected FY23 revenue, indicating very comfortable forward coverage.
Despite a 22.5% share price increase YTD, it trades on just 0.21x P/B. Compared with an ROE of 7-8%, it is inexpensive. Upside will come from asset value realisation.

Sodick (6143) – Aiming to Steer Through Current Circumstances

Digging in for the duration – continuing weak demand from China contributed significantly to weak Q1-2 FY12/2023 numbers, with sales declining 14.8% YoY and resulting in an operating loss.
The key issue is that customers are experiencing low utilization rates at production facilities, and hence do not require new capacity.
Sodick revised its guidance for FY12/2023, with expectations of similar market conditions persisting into H2 FY12/2023.

IPower, Inc. – Water Tower Hour Recap: A Conversation with CFO Kevin Vassily

iPower CFO Kevin Vassily joined the Water Tower Hour to discuss the company’s business and existing and new business opportunities for FY24.
A return to bottom-line profitability and the development of the new Business Services segment will be the focus for the company in FY24.
iPower is an e-commerce platform operating as an online retailer and supplier of home goods, hydroponics, pet, and wellbeing products.

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Aug 17

Daily Brief Industrials: VinFast, SITC International, Blue Planet, Evergreen Marine Corp, Marco Polo Marine, NOW Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

VinFast: Inexplicable Valuation
SITC International (1308 HK): Uneasy Times
Singapore’s Waste Management Firm Blue Planet Gets Bintang Capital’s Backing
Evergreen Marine: ‘H1 Earnings Plunged Dramatically Y/Y’ | Also, ‘H1 Earnings Were Pretty Damn Good’
10 in 10 with Marco Polo Marine – Voyage into a sustainable future
NOW, Inc. – Fulfillment Model to Meet Customers’ Evolving Needs August 16, 2023 Jeff Robertson

VinFast: Inexplicable Valuation

By Arun George

VinFast (1905332D VN), a Vietnamese EV (electric vehicle) manufacturer and a majority-owned affiliate of Vingroup Jsc (VIC VN), completed its merger with Black Spade.
The shares closed 3.7x up on the first day with a market cap of US$86bn. The pop is partly due to low float resulting from the controlling shareholder’s 99.0% stake.
VinFast faces headwinds of poor reviews, declining customer traction, ongoing losses and cash burn. VinFast is trading at a material premium to peers on growth-adjusted multiples.

SITC International (1308 HK): Uneasy Times

While management of SITC International (1308 HK) thinks that the worst is over, we are less positive given the lacklustre demand and the disappointing Jul-Aug market freight rates.
Its gross margin is still significantly ahead of the pre-COVID levels, and financially, its net cash balance has been coming down. The dividend payout ratio has also lowered slightly.
The FY23 consensus earnings forecast is too optimistic given 1H23 net profit is only 33.5% of the full-year estimate. The downside risk will cap near-term share price performance.

Singapore’s Waste Management Firm Blue Planet Gets Bintang Capital’s Backing

By e27

Singapore-based waste management company Blue Planet has secured an undisclosed sum in funding from Malaysian PE firm Bintang Capital Partners.
The startup will utilise the capital to expand its operational teams and waste management technologies to pave the way for handling a broader range of waste types in current and emerging markets.
Founded in 2017 by Madhujeet Chimni, Prashant Singh, and Bharadwaj Chivukula, Blue Planet provides waste collection, transportation, segregation, processing, and treatment services.

Evergreen Marine: ‘H1 Earnings Plunged Dramatically Y/Y’ | Also, ‘H1 Earnings Were Pretty Damn Good’

By Daniel Hellberg

Yes, carrier margins and returns in Q2/H1 plunged dramatically compared to 2022
Yes, carrier margins and returns in Q2/H1 were quite good by historical standards
In this insight we provide context to help readers evaluate carrier performance in 2023

10 in 10 with Marco Polo Marine – Voyage into a sustainable future

By Geoff Howie

10 in 10 with Marco Polo Marine – Voyage into a sustainable future

NOW, Inc. – Fulfillment Model to Meet Customers’ Evolving Needs August 16, 2023 Jeff Robertson

DistributionNOW gained share during 2Q23 as US drilling activity slowed. US revenue per rig averaged ~$631k, up from ~$561k in 1Q23 and ~$570k in 2Q22.
Gains reflect the benefits of the company’s fulfillment model, geared to make DistributionNOW the supply chain solution provider of choice for customers by supplying the products they require in the quantities they need by increasing the efficiency of their procurement process, lowering transactions costs, and increasing returns on their investments.
2Q23 total revenue grew 10% Y/Y and 2% from 1Q22 revenue.

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Aug 17

Daily Brief Industrials: VinFast, SITC International, Blue Planet, Evergreen Marine Corp, Marco Polo Marine, NOW Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

VinFast: Inexplicable Valuation
SITC International (1308 HK): Uneasy Times
Singapore’s Waste Management Firm Blue Planet Gets Bintang Capital’s Backing
Evergreen Marine: ‘H1 Earnings Plunged Dramatically Y/Y’ | Also, ‘H1 Earnings Were Pretty Damn Good’
10 in 10 with Marco Polo Marine – Voyage into a sustainable future
NOW, Inc. – Fulfillment Model to Meet Customers’ Evolving Needs August 16, 2023 Jeff Robertson

VinFast: Inexplicable Valuation

By Arun George

VinFast (1905332D VN), a Vietnamese EV (electric vehicle) manufacturer and a majority-owned affiliate of Vingroup Jsc (VIC VN), completed its merger with Black Spade.
The shares closed 3.7x up on the first day with a market cap of US$86bn. The pop is partly due to low float resulting from the controlling shareholder’s 99.0% stake.
VinFast faces headwinds of poor reviews, declining customer traction, ongoing losses and cash burn. VinFast is trading at a material premium to peers on growth-adjusted multiples.

SITC International (1308 HK): Uneasy Times

While management of SITC International (1308 HK) thinks that the worst is over, we are less positive given the lacklustre demand and the disappointing Jul-Aug market freight rates.
Its gross margin is still significantly ahead of the pre-COVID levels, and financially, its net cash balance has been coming down. The dividend payout ratio has also lowered slightly.
The FY23 consensus earnings forecast is too optimistic given 1H23 net profit is only 33.5% of the full-year estimate. The downside risk will cap near-term share price performance.

Singapore’s Waste Management Firm Blue Planet Gets Bintang Capital’s Backing

By e27

Singapore-based waste management company Blue Planet has secured an undisclosed sum in funding from Malaysian PE firm Bintang Capital Partners.
The startup will utilise the capital to expand its operational teams and waste management technologies to pave the way for handling a broader range of waste types in current and emerging markets.
Founded in 2017 by Madhujeet Chimni, Prashant Singh, and Bharadwaj Chivukula, Blue Planet provides waste collection, transportation, segregation, processing, and treatment services.

Evergreen Marine: ‘H1 Earnings Plunged Dramatically Y/Y’ | Also, ‘H1 Earnings Were Pretty Damn Good’

By Daniel Hellberg

Yes, carrier margins and returns in Q2/H1 plunged dramatically compared to 2022
Yes, carrier margins and returns in Q2/H1 were quite good by historical standards
In this insight we provide context to help readers evaluate carrier performance in 2023

10 in 10 with Marco Polo Marine – Voyage into a sustainable future

By Geoff Howie

10 in 10 with Marco Polo Marine – Voyage into a sustainable future

NOW, Inc. – Fulfillment Model to Meet Customers’ Evolving Needs August 16, 2023 Jeff Robertson

DistributionNOW gained share during 2Q23 as US drilling activity slowed. US revenue per rig averaged ~$631k, up from ~$561k in 1Q23 and ~$570k in 2Q22.
Gains reflect the benefits of the company’s fulfillment model, geared to make DistributionNOW the supply chain solution provider of choice for customers by supplying the products they require in the quantities they need by increasing the efficiency of their procurement process, lowering transactions costs, and increasing returns on their investments.
2Q23 total revenue grew 10% Y/Y and 2% from 1Q22 revenue.

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Aug 16

Daily Brief Industrials: InterGlobe Aviation Ltd, Tokyo Electron, AviChina Industry & Technology H, Nidec Corp, Sanyo Trading, WILLs and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Interglobe Aviation (Indigo) Placement – Selldowns Are Becoming Increasingly Regular
Tokyo Electron (8035 JP): Saved from Disaster by China
StubWorld: AviChina Is Coming Up “Cheap”
Nidec (6594 JP): Favorable Margin Trends
Sanyo Trading (3176) – Well-Positioned for Sustainable Growth
WILLs (4482) – Highest Quarterly Customer Acquisition in Two Years

Interglobe Aviation (Indigo) Placement – Selldowns Are Becoming Increasingly Regular

By Ethan Aw

InterGlobe Aviation Ltd (INDIGO IN)’s co-founder, Rakesh Gangwal and his wife, aim to raise up to US$450m through the bulk sale of 15.6m shares (4% of TSO).
He had earlier stated his intention to pare down his stake after a long drawn battle with his co-founder Rahul Bhatia. He last sold in Sep 2022 and Feb 2023.
In this note, we will talk about the placement and run the deal through our ECM framework.

Tokyo Electron (8035 JP): Saved from Disaster by China

Thanks to strong demand from China, 1Q results at Tokyo Electron (TEL) were just bad, not horrible. Operating profit was down 30% YoY on a 17% decline in sales.
1H guidance implies that 2Q will also be weak. Full-year FY Mar-24 guidance implies an unlikely 50% sequential increase in net profit, putting the shares on 32x projected EPS.
A return to peak EPS next fiscal year would drop the P/E ratio to 21x, which used to be the top of TEL’s P/E range. Sell.

StubWorld: AviChina Is Coming Up “Cheap”

By David Blennerhassett

As a PRC aviation/defense play, AviChina Industry & Technology H (2357 HK)‘s fundamentals are undemanding.
Preceding my comments on AviChina are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Nidec (6594 JP): Favorable Margin Trends

EV motors are out of the red, profits on appliance, commercial and industrial products are up, and the yen is much weaker than management’s forecast assumes.
Despite economic uncertainty, achieving FY Mar-24 profit guidance should not be difficult.
Operating margin trends are generally positive and valuations not too high for longer-term investors. Buy into current pull-back.

Sanyo Trading (3176) – Well-Positioned for Sustainable Growth

Businessdiversificationpayingoff–Q1-3FY9/2023resultsshowed double-digit growth for sales at 15.3% YoY and OP at 26.8% YoY, despite high hurdles YoY.
The Machinery & Industrial Products segment continues to be the core earnings driver, contributing approximately 60% of total operating profit, and growing segmental profits by 71.4% YoY.
A rebound in industrial material-related products due to Japanese auto production recovery and the contribution of Scrum Inc., consolidated in February 2022 boosted profits.

WILLs (4482) – Highest Quarterly Customer Acquisition in Two Years

Positive development over new customer acquisition – WILLs’ positive execution resulted in the net acquisition of five new customers for its Premium Benefits Service during Q2 FY12/2023, the highest level for two years.
Positive thematic tailwinds are a combination of digital transformation needs as well as improving share trading liquidity for listed entities, and the company remains well positioned to cater to this in our view.
WILLs also made significant progress in growing its Advertising business, generating positive segmental profits from losses in the previous year.

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Aug 16

Daily Brief Industrials: InterGlobe Aviation Ltd, Tokyo Electron, AviChina Industry & Technology H, Nidec Corp, Sanyo Trading, WILLs and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Interglobe Aviation (Indigo) Placement – Selldowns Are Becoming Increasingly Regular
Tokyo Electron (8035 JP): Saved from Disaster by China
StubWorld: AviChina Is Coming Up “Cheap”
Nidec (6594 JP): Favorable Margin Trends
Sanyo Trading (3176) – Well-Positioned for Sustainable Growth
WILLs (4482) – Highest Quarterly Customer Acquisition in Two Years

Interglobe Aviation (Indigo) Placement – Selldowns Are Becoming Increasingly Regular

By Ethan Aw

InterGlobe Aviation Ltd (INDIGO IN)’s co-founder, Rakesh Gangwal and his wife, aim to raise up to US$450m through the bulk sale of 15.6m shares (4% of TSO).
He had earlier stated his intention to pare down his stake after a long drawn battle with his co-founder Rahul Bhatia. He last sold in Sep 2022 and Feb 2023.
In this note, we will talk about the placement and run the deal through our ECM framework.

Tokyo Electron (8035 JP): Saved from Disaster by China

Thanks to strong demand from China, 1Q results at Tokyo Electron (TEL) were just bad, not horrible. Operating profit was down 30% YoY on a 17% decline in sales.
1H guidance implies that 2Q will also be weak. Full-year FY Mar-24 guidance implies an unlikely 50% sequential increase in net profit, putting the shares on 32x projected EPS.
A return to peak EPS next fiscal year would drop the P/E ratio to 21x, which used to be the top of TEL’s P/E range. Sell.

StubWorld: AviChina Is Coming Up “Cheap”

By David Blennerhassett

As a PRC aviation/defense play, AviChina Industry & Technology H (2357 HK)‘s fundamentals are undemanding.
Preceding my comments on AviChina are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Nidec (6594 JP): Favorable Margin Trends

EV motors are out of the red, profits on appliance, commercial and industrial products are up, and the yen is much weaker than management’s forecast assumes.
Despite economic uncertainty, achieving FY Mar-24 profit guidance should not be difficult.
Operating margin trends are generally positive and valuations not too high for longer-term investors. Buy into current pull-back.

Sanyo Trading (3176) – Well-Positioned for Sustainable Growth

Businessdiversificationpayingoff–Q1-3FY9/2023resultsshowed double-digit growth for sales at 15.3% YoY and OP at 26.8% YoY, despite high hurdles YoY.
The Machinery & Industrial Products segment continues to be the core earnings driver, contributing approximately 60% of total operating profit, and growing segmental profits by 71.4% YoY.
A rebound in industrial material-related products due to Japanese auto production recovery and the contribution of Scrum Inc., consolidated in February 2022 boosted profits.

WILLs (4482) – Highest Quarterly Customer Acquisition in Two Years

Positive development over new customer acquisition – WILLs’ positive execution resulted in the net acquisition of five new customers for its Premium Benefits Service during Q2 FY12/2023, the highest level for two years.
Positive thematic tailwinds are a combination of digital transformation needs as well as improving share trading liquidity for listed entities, and the company remains well positioned to cater to this in our view.
WILLs also made significant progress in growing its Advertising business, generating positive segmental profits from losses in the previous year.

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Aug 15

Daily Brief Industrials: Japan Post Holdings, Honeywell International, HNI Corp, Carrier Global , Norfolk Southern, Northrop Grumman, Textron Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Japan Post Holdings (6178) Starts Its Bigly Buyback With a Sale from the MOF-Boffins
Honeywell International Inc.: Can The SCADAfence Acquisition Strengthen Its Portfolio? – Key Drivers
HNI Corporation – Revising Estimate to Correct Modeling Error(S)
Carrier Global Corporation: 4 Major Catalysts Of Their Growth! – Financial Forecasts
Norfolk Southern Corporation: The Strategy That Keeps Them Confident! – Key Drivers
Northrop Grumman Corporation: 4 Factors Powering Their Revenue Surge! – Key Drivers
Textron Inc.: Unmasking the Strategic Advancements Behind the Rising Aviation & Industrial Revenues! – Key Drivers

Japan Post Holdings (6178) Starts Its Bigly Buyback With a Sale from the MOF-Boffins

By Travis Lundy

In March 2023, Japan Post Holdings (6178 JP) sold ¥1.1trln of shares in Japan Post Bank (7182 JP), lowering its stake considerably, raising float. There will be a TOPIX upweight.
In May, with earnings, they announced their intention to buy back ¥300bn of shares or up to 10% of shares out. Today, they announced the details. ¥300bn through March end.
In a ¥300bn ToSTNeT-3 tomorrow, the govt will sell back ¥105.7bn. That leaves a residual worth examining. So we examine.

Honeywell International Inc.: Can The SCADAfence Acquisition Strengthen Its Portfolio? – Key Drivers

Honeywell International delivered a mixed set of results for the quarter, with revenues well below Wall Street expectations but managed an earnings beat.
The company’s organic sales increased year on year in the quarter, led by double-digit growth in commercial aerospace, process solutions, and UOP.
We give Honeywell International a ‘Hold’ rating with a revised target price.

HNI Corporation – Revising Estimate to Correct Modeling Error(S)

We are revising our recent estimates for HNI to correct a significant error in our understanding of guidance for the contribution to revenue and earnings from the Kimball International (KII) acquisition.
We misunderstood the guidance for 2H revenue for KII to be in the range of $340-370 million.
That number applies to the full-year contribution, including $52 million already reported.

Carrier Global Corporation: 4 Major Catalysts Of Their Growth! – Financial Forecasts

Carrier Global managed to surpass the revenue as well as the earnings expectations of analysts.
Carrier Global achieved double-digit growth in light commercial and commercial HVAC and worldwide truck and trailer controls and aftermarkets.
Growth in Fire & Security was broad-based, encompassing security, residential, commercial, and industrial fire.

Norfolk Southern Corporation: The Strategy That Keeps Them Confident! – Key Drivers

Norfolk Southern delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street.
Materials, Automotive shipping was strong owing to new lane offerings and a weak local crop in the Southeast.
Despite increased export volumes, the mix of export steam and export metallurgical coal shifted negatively, and lower seaborne coal prices resulted in poorer revenue per unit.

Northrop Grumman Corporation: 4 Factors Powering Their Revenue Surge! – Key Drivers

Northrop Grumman managed to exceed analyst expectations in terms of revenue as well as earnings.
The company’s revenues increased in the second quarter, with each of its 4 business sectors making significant contributions.
Global demand for their products is also increasing as their allies increase defense spending to combat emerging threats.

Textron Inc.: Unmasking the Strategic Advancements Behind the Rising Aviation & Industrial Revenues! – Key Drivers

Textron delivered a positive result and managed an all-around beat in the last quarter.
In Aviation, Textron delivered jets down from last year and commercial turboprops up from the last year.
Also, this quarter Aviation delivered the foremost passenger-configured Cessna SkyCourier to Lana’I Air for the Hawaiian interisland routes.

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Aug 15

Daily Brief Industrials: Japan Post Holdings, Honeywell International, HNI Corp, Carrier Global , Norfolk Southern, Northrop Grumman, Textron Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Japan Post Holdings (6178) Starts Its Bigly Buyback With a Sale from the MOF-Boffins
Honeywell International Inc.: Can The SCADAfence Acquisition Strengthen Its Portfolio? – Key Drivers
HNI Corporation – Revising Estimate to Correct Modeling Error(S)
Carrier Global Corporation: 4 Major Catalysts Of Their Growth! – Financial Forecasts
Norfolk Southern Corporation: The Strategy That Keeps Them Confident! – Key Drivers
Northrop Grumman Corporation: 4 Factors Powering Their Revenue Surge! – Key Drivers
Textron Inc.: Unmasking the Strategic Advancements Behind the Rising Aviation & Industrial Revenues! – Key Drivers

Japan Post Holdings (6178) Starts Its Bigly Buyback With a Sale from the MOF-Boffins

By Travis Lundy

In March 2023, Japan Post Holdings (6178 JP) sold ¥1.1trln of shares in Japan Post Bank (7182 JP), lowering its stake considerably, raising float. There will be a TOPIX upweight.
In May, with earnings, they announced their intention to buy back ¥300bn of shares or up to 10% of shares out. Today, they announced the details. ¥300bn through March end.
In a ¥300bn ToSTNeT-3 tomorrow, the govt will sell back ¥105.7bn. That leaves a residual worth examining. So we examine.

Honeywell International Inc.: Can The SCADAfence Acquisition Strengthen Its Portfolio? – Key Drivers

Honeywell International delivered a mixed set of results for the quarter, with revenues well below Wall Street expectations but managed an earnings beat.
The company’s organic sales increased year on year in the quarter, led by double-digit growth in commercial aerospace, process solutions, and UOP.
We give Honeywell International a ‘Hold’ rating with a revised target price.

HNI Corporation – Revising Estimate to Correct Modeling Error(S)

We are revising our recent estimates for HNI to correct a significant error in our understanding of guidance for the contribution to revenue and earnings from the Kimball International (KII) acquisition.
We misunderstood the guidance for 2H revenue for KII to be in the range of $340-370 million.
That number applies to the full-year contribution, including $52 million already reported.

Carrier Global Corporation: 4 Major Catalysts Of Their Growth! – Financial Forecasts

Carrier Global managed to surpass the revenue as well as the earnings expectations of analysts.
Carrier Global achieved double-digit growth in light commercial and commercial HVAC and worldwide truck and trailer controls and aftermarkets.
Growth in Fire & Security was broad-based, encompassing security, residential, commercial, and industrial fire.

Norfolk Southern Corporation: The Strategy That Keeps Them Confident! – Key Drivers

Norfolk Southern delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street.
Materials, Automotive shipping was strong owing to new lane offerings and a weak local crop in the Southeast.
Despite increased export volumes, the mix of export steam and export metallurgical coal shifted negatively, and lower seaborne coal prices resulted in poorer revenue per unit.

Northrop Grumman Corporation: 4 Factors Powering Their Revenue Surge! – Key Drivers

Northrop Grumman managed to exceed analyst expectations in terms of revenue as well as earnings.
The company’s revenues increased in the second quarter, with each of its 4 business sectors making significant contributions.
Global demand for their products is also increasing as their allies increase defense spending to combat emerging threats.

Textron Inc.: Unmasking the Strategic Advancements Behind the Rising Aviation & Industrial Revenues! – Key Drivers