In today’s briefing:
- Austal (ASB AU): Spurned Suitor, Hanwha Ocean, Gets a Vote of Confidence
- Lasertec (6920 JP): Orders Up, Guidance Down
- Enphase Energy: Are Its Solar-Plus-Storage Products A Critical Growth Catalyst? – Major Drivers
- Waste Management Inc.: A Competitive Edge Through Exclusive Landfill Assets & 5 Key Growth Drivers
- IDEX Corporation: Increasing End Market Demand Driving Organic Growth! – Major Drivers
- Lockheed Martin Corporation: Will Its Recent Acquisition & Its Investments in Next-gen Interceptor Bear Fruit? – Major Drivers
- United Parcel Service (UPS): How Is The Management Playing The Macro Cycle? – Major Drivers
- The Boeing Company: Will The Strategic Acquisition of Spirit Pay Off? – Major Drivers
- Norfolk Southern Corporation: How Is Enhanced Operational Efficiency & Productivity Boost Impacting Their Bottom-Line? – Major Drivers
- RTX Corporation: These Are The 6 Pivotal Factors Impacting Its Performance In 2024 & Beyond! – Financial Forecasts
Austal (ASB AU): Spurned Suitor, Hanwha Ocean, Gets a Vote of Confidence
- On 2 April, Austal Ltd (ASB AU) rejected a non-binding proposal from Hanwha Ocean (042660 KS) at A$2.825 due to concerns about obtaining Australian and US regulatory approvals.
- The Board’s claims are on shaky grounds. On 1 May, the AFR reported that Australian Defence Minister Richard Marles had no concerns with Hanwha’s privatisation bid.
- The Board’s rejection is a clumsy attempt to negotiate better terms, such as a bump, ticking fees, or significant break fees. At the last close, the gross spread was 21.8%.
Lasertec (6920 JP): Orders Up, Guidance Down
- The share price has bounced back on strong 3Q orders and long-term optimism, but weak 4Q guidance calls the growth trajectory into question.
- Guidance, which has sales dropping to about half what they were a year earlier, is based on the expected timing of customer acceptance of delivered equipment. It could be conservative.
- At 75X EPS guidance for FY Jun-24, a rate of growth not visible in current trends has already been discounted. Current orders should translate into sales in 2026.
Enphase Energy: Are Its Solar-Plus-Storage Products A Critical Growth Catalyst? – Major Drivers
- Enphase Energy, a leading provider of energy management solutions, reported its first quarter 2024 financial results.
- For the quarter ending March 31, 2024, the company reported a total revenue of $263.3 million, a slight decrease compared with the previous quarter.
- The company also managed to ship approximately 1.4 million microinverters and 75.5 megawatt hours of batteries during this period, leading to a free cash flow of $41.8 million.
Waste Management Inc.: A Competitive Edge Through Exclusive Landfill Assets & 5 Key Growth Drivers
- Waste Management, Inc. has successfully delivered a strong end to 2023, with a 15% increase in fourth quarter operating EBITDA. This has resulted in full year operating EBITDA exceeding the company’s most recent guidance range by Waste Management Inc. (WM) witnessed robust financial performance for Q1 2024, underscored by outstanding operational performance in the collection and disposal business.
- Operating EBITDA witnessed a growth of 15% for this quarter, with margins expanding by 240 basis points.
- This was propelled primarily by significant momentum in cost-effective efforts and disciplined execution of pricing programs.
IDEX Corporation: Increasing End Market Demand Driving Organic Growth! – Major Drivers
- IDEX Corporation’s Q1 2024 earnings highlighted the company’s continued engagement in the global market, notable achievements during the quarter, and financial results, which were understandably mixed due to various factors.
- Despite challenging comparatives, the company’s Fluid & Metering Technologies and Fire & Safety/Diversified Products businesses recorded strong results, demonstrating its core execution capabilities.
- This indicates the company’s ability to adapt and reaffirms its positioning as a invested-interest even during turbulent market conditions.
Lockheed Martin Corporation: Will Its Recent Acquisition & Its Investments in Next-gen Interceptor Bear Fruit? – Major Drivers
- In their First Quarter 2024 Earnings Results Lockheed Martin gave an outline of their strong financial performance and offered an insight into some key initiatives that are currently in progress.
- Their results reflect a robust growth in revenue across the company, and a stable backlog amounting to $159 billion, an indication of the alignment between the firm’s advanced technology solutions and the missions and priorities of their customers.
- The highlights of the FY ’24 defense budget reflect well on Lockheed Martin with robust funding earmarked for munitions multiyear procurement, ongoing investments into hypersonics and classified activities, and consistent support for long term initiatives such as Black Hawk, CH-53K heavy lift helicopter, the fleet ballistic missile, C-130, and F-35.
United Parcel Service (UPS): How Is The Management Playing The Macro Cycle? – Major Drivers
- United Parcel Service Inc. (UPS) reported consolidated revenue of $21.7 billion, marking a 5.3% decline YoY. The operating profit came in at $1.7 billion, down by 31.5% in comparison to the previous year, largely as a result of higher labor costs associated with the first year of the Teamsters contract.
- The consolidated operating margin was at 8%.
- A notable development in the quarter is UPS’s deal with the United States Postal Service, where it plans to become the primary air cargo provider.
The Boeing Company: Will The Strategic Acquisition of Spirit Pay Off? – Major Drivers
- The Boeing Company’s Q1 2024 marked an important moment for investors, as management focused primarily on the actions taken post the Alaska Airlines accident in January.
- Boeing CEO, Dave Calhoun, emphatically underscored the company’s commitment to quality and safety measures.
- The company has improved its production protocols and gone beyond compliance with the FAA directives, working towards an Embedded Quality Action Plan.
Norfolk Southern Corporation: How Is Enhanced Operational Efficiency & Productivity Boost Impacting Their Bottom-Line? – Major Drivers
- Norfolk Southern Corporation deemed its first quarter of 2024 as one reflecting strategic growth and prudent operational strategies.
- The company followed a balanced strategy to deliver top-tier earnings with an industry competitive margin focusing on customer service, productivity, and growth with strong safety measures.
- The company’s president and CEO, Alan Shaw, mentioned that in 2023, safety and service were prioritized to protect the company’s franchise and shareholders, thereby operating one of the safest networks in North America.
RTX Corporation: These Are The 6 Pivotal Factors Impacting Its Performance In 2024 & Beyond! – Financial Forecasts
- Raytheon Technologies Corporation (RTX) started off the year strongly with emphasis on attaining a strong foundation for the future.
- The company is making headway in transforming its three business units: Pratt & Whitney, Collins Aerospace, and Raytheon into industry leaders that can withstand increasing sales and operating profit growth.
- The company’s backlog has reached a record high of over $200 billion which is positive evidence of its market strength.
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