In today’s briefing:
- Ibiden (4062 JP): Once Again a Long-Term Buy
- Donaldson Company Inc: Will The Aftermarket and Off-Road Growth in Mobile Solutions Last? – Major Drivers
- Huntington Ingalls Industries: A Tale Of Expanded Shipbuilding Capacity and Modernization! – Major Drivers
- Spirit Airlines Needs to Address Labor Cost-Pricing Mismatch with or Without Chapter 11
Ibiden (4062 JP): Once Again a Long-Term Buy
- Sales, profits and the share price are bottoming out and good 1Q results make FY Mar-25 guidance look conservative.
- Demand for advanced packaging should drive recovery, with the operating margin regaining its previous peak in three or four years.
- Management’s long-term guidance implies a decline in the projected P/E ratio from 26x to 10X by FY Mar-28, but even 15x would make the shares an attractive investment.
Donaldson Company Inc: Will The Aftermarket and Off-Road Growth in Mobile Solutions Last? – Major Drivers
- Donaldson Company has reported a record-breaking financial performance for the fiscal year 2024, achieving high sales, margins, and EPS.
- The company surpassed $3.5 billion in sales and reported an operating margin of 15.4%, delivering an adjusted EPS of $3.42 which reflects a 13% year-over-year growth.
- This robust performance was underpinned by strong cash conversion over 97%, and the return of $286 million to shareholders through dividends and buybacks.
Huntington Ingalls Industries: A Tale Of Expanded Shipbuilding Capacity and Modernization! – Major Drivers
- Huntington’s second quarter of 2024 financial results demonstrated a robust performance, underpinning the company’s ability to navigate challenges while seizing growth opportunities.
- Revenue for the quarter reached $3 billion, marking a 6.8% year-over-year increase, driven largely by the exceptional growth of the Mission Technologies segment, which posted a 19% revenue increase from the previous year.
- This segment’s book-to bill ratio stood at 1.15, indicating healthy future revenue from confirmed contracts.
Spirit Airlines Needs to Address Labor Cost-Pricing Mismatch with or Without Chapter 11
- WSJ reports Spirit is exploring a Chapter 11 filing, with this risk apparent since the collapse of the planned JetBlue combination in January.
- We highlight detailed analysis comparing the economics of airline recoveries across the US, illustrating Spirit lags on commercial performance and cost control.
- With labor costs up from 21% of revenue in 2Q19 to 33% in 2Q24, compared to a pre-tax match of 12% in 2019, Spirit needs to address this labor-pricing mismatch.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
