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Telefonica 05-14 12:51 GMT
(Comment)
Telefonica posted a 1.3% decline in organic revenue for the first quarter, marking the fifth...
Earnings by Dave Novosel, CFA
Telefonica posted a 1.3% decline in organic revenue for the first quarter, marking the fifth consecutive period in which revenue has fallen. However, the decreases are moderating. Management attributed the decline to the impact of the coronavirus and the foreign exchange effect. The UK was the most disappointing segment, with revenue down more than 9%, attributable to the lockdown. Spain was down 1%, while Germany, Brazil, and Latin America were relatively flat. Reported revenue fell 9%. EBITDA margins were up slightly, aided by the company's digitalization efforts. A huge gain in the UK stemming from commission savings as distribution was moved from indirect to direct, and an increase in Germany offset declines in Spain, Brazil, and Latin America. Management kept intact its inauspicious goal for revenue and operating margin stabilization in 2021, which certainly appears reasonable following Q1 results. However, reported EBITDA is highly likely to be down because of the planned joint venture between the UK operations and Virgin Media as well as the separation of its Telxius Towers business. Those dispositions will allow the company to cut net debt by roughly EUR9 billion. TEF produced free cash flow of more than EUR700 million in Q1 and used virtually all of it on spectrum acquisitions in the UK, Chile, Spain, and Germany.
Motorola Solutions 05-14 02:17 GMT  
(Report with Analyst's Data Sheet) 
Coming off of a string of four consecutive quarters of declining sales, reflecting the negative impact of the coronavirus, Motorola Solutions started...
Safety Sells by Dave Novosel, CFA
Tenneco 05-14 02:09 GMT  
(Report with Analyst's Data Sheet) 
Tenneco (TEN) posted strong first quarter adjusted EBITDA and raised its 2021 guidance.
Debt Reduction Priority by Evan Mann, CFA
Klabin 05-14 02:02 GMT  
(Report with Analyst's Data Sheet) 
Klabin S.A. (KLAB) reported some good 1Q21 results as it benefitted from the continued organic growth in demand for its paper and packaging products while higher pulp...
Flourishing by Alexandre Dray
Occidental Petroleum 05-14 01:49 GMT  
(Report with Analyst's Data Sheet) 
Oxy reported a first quarter adjusted loss this week, but management chose to emphasize other aspects of its results. We think it's important to...
Drilling Down by Carol Levenson, CFA
Simon Property Group 05-13 02:57 GMT  
(Report with Analyst's Data Sheet) 
Simon Property Group (SPG) has been a strong performer in the equity markets (at least until this week), reflecting investor optimism that...
Equity Investments by Kathleen Shanley, CFA
Sally Beauty Holdings 05-13 02:49 GMT  
(Report with Analyst's Data Sheet) 
Consumers adapted to the restrictions on hair salons and hairdressers during the COVID-19 pandemic. Some invited their stylist and several...
Home Style by Kim Noland
Deutsche Telekom AG 05-12 12:55 GMT
(Comment)
Deutsche Telekom reported a 32% increase in revenue for the first quarter, pretty much...
Earnings by Dave Novosel, CFA
Deutsche Telekom reported a 32% increase in revenue for the first quarter, pretty much in line with the last few quarters. The huge improvement was attributable to the acquisition of Sprint by T-Mobile last April. Since that deal has now cycled, we expect much more modest increases in revenue over the next few periods. Revenue in Germany rose 2%, roughly in line with growth over the last several quarters. Growth was driven mostly by the addition of 93K broadband subscribers and higher terminal equipment sales. Revenue fell 1% in Europe, better than the recent decreases. The decline was primarily a function of the exchange rate impact. Overall EBITDA margins soared over 300 basis points with gains in all three major segments. In the U.S. synergies have been much better than we expected, easily exceeding the integration costs thus far. Management attributed the increase in the other two segments to cost efficiencies. If we include spectrum purchases in capital expenditures, then free cash flow was hugely negative, as the company spent roughly EUR8 billion in spectrum in Q1 (C-band auction in the U.S.). Excluding spectrum, capital spending was still significantly higher because of spending related to the build out of its 5G network in the U.S. DTEGY added EUR2.5 billion of debt in Q1 to fund the outsized capital spending. However, the additional debt should be offset by higher EBITDA, and therefore leverage is currently just over 3x.
Tenneco 05-13 
Sally Beauty 05-12 
Quest Diagnostics 04-23 
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