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Deutsche Telekom AG 05-16 18:02 GMT
(Comment)
Deutsche Telekom posted a 0.4% increase in revenue for the first quarter, including a...
Earnings by Dave Novosel, CFA
Deutsche Telekom posted a 0.4% increase in revenue for the first quarter, including a 2.9% improvement in service revenue. Revenue in Germany rose 2.6% because of better service revenue and more Magenta TV customers. Revenue in Europe was up 6% due to an increase in higher-value service revenue in the mobile business as well as customer growth. But revenue in the U.S. dropped 1.4%, reflecting the foreign currency impact. EBITDA margins rose 280 basis points and have now increased for five consecutive quarters. U.S. margins were up by more than 300 basis points attributable to merger synergies and lower equipment costs. Europe margins rose, aided by lower energy costs, but German margins fell. We expect modest revenue growth in 2024 and continued margin expansion. DTEGY repurchased roughly EUR450 million of its shares in Q1 as part of its plan to buy back EUR2 billion shares.
Cisco Systems 05-16 13:40 GMT
(Comment)
Cisco reported a 13% decline in revenue for the fiscal third quarter that ended April 17th,...
Earnings by Dave Novosel, CFA
Cisco reported a 13% decline in revenue for the fiscal third quarter that ended April 17th, which was pretty much in line with the company's guidance. Similar to Q2 the big problem was the Networking segment, where revenue plunged 27%. That was partially offset by a 36% gain in Security and a 26% increase in Observability, both of which benefited from the Splunk deal. However, those segments are dramatically smaller in terms of revenue so their impact is muted. Management revised its guidance for Q4 revenue upwards yet is still calling for an 11% decrease. The company expects revenue to increase at a low to mid-single digit pace in fiscal 2025, as customers are deploying the equipment purchased in recent quarters and will need to replenish inventory by the end of summer. Fiscal 2025 guidance includes roughly $1 billion of AI orders and considerable revenue synergies from Splunk. Gross margins rose by 170 basis points, reflecting the impact of Splunk, a favorable product mix, and lower freight costs. However, EBITDA margins fell more than 600 basis points, with most of the erosion due to significantly higher restructuring and other charges. CSCO is on track to generate more than $5 billion of free cash flow this year, but all of that will likely be used for share repurchases. CSCO laid out $25 billion for the acquisition of Splunk in Q3. The deal was funded with additional debt of $20 billion, cash on hand, and the sale of some marketable securities. Given that Splunk added barely any EBITDA in the quarter, leverage is up to 2x. However, that should recede as the additional EBITDA is realized.
Volcan Compania Minera S.A.A. 05-16 01:43 GMT  
(Report with Analyst's Data Sheet) 
We have updated our view on Volcan Compania Minera S.A.A. (VOLCAN) after Glencore decided to sell its 55% controlling stake to Integra...
Sitting On A Volcano by Franck Bekaert
EchoStar 05-16 01:43 GMT  
(Report with Analyst's Data Sheet) 
At the end of the first quarter, EchoStar had $614 million in cash and cash equivalents. The company also had marketable investment securities of $153 million,...
The Countdown Begins by Dave Novosel, CFA
Ford Motor 05-16 01:43 GMT  
(Report with Analyst's Data Sheet) 
ord Motor Company (F) posted first quarter 2024 automotive EBIT that was down materially (20%) from a year ago. An impressive doubling of EBIT at Ford's Pro...
Pro Keeps Ford From Feeling The Blues by Jay Cushing, CFA
Avis Budget Group, Inc. 05-15 14:16 GMT
(Comment)
Yesterday, Avis Budget Group (CAR) priced a EUR $200 million add-on to its...
New Issue by Evan Mann, CFA
Yesterday, Avis Budget Group (CAR) priced a EUR $200 million add-on to its outstanding EUR $400 million of 7.25% senior notes due 2030 with funds earmarked for debt reduction, including vehicle debt. This follows the company's first quarter issuance of EUR $600 million of 7% senior notes due 2029 to redeem the EUR $350 million of 4.75% senior notes due 2026 as well as paydown vehicle debt. For the first quarter, total revenues were in line with expectations on strong travel demand. Adjusted EBITDA, however, fell significantly as the company rightsized its rental fleet ahead of the peak spring and summer travel season. We will review the first quarter results and our recommendation shortly.
Fox Corporation 05-15 13:21 GMT  
(Report with Analyst's Data Sheet) 
We expect revenue to increase roughly 3% in the fourth quarter, which would leave full year revenue down about 6%. However, we expect much better growth...
Superbowl Loss by Dave Novosel, CFA
Turk Telekom AS 05-15 11:10 GMT  
(Report with Analyst's Data Sheet) 
Turk Telekom (TURKTI) has taken a significant step in managing its debt and improving its liquidity position. The company issued $500 million of new...
Tackling Short-Term Debt by Alexandre Dray
McDonald's 05-15 11:07 GMT  
(Report with Analyst's Data Sheet) 
McDonald's raised nearly $2 billion in the bond market yesterday, and we assume the proceeds will be used to replenish cash after the $1.8 billion payment to...
Value Meal by Carol Levenson, CFA
Parkland Fuel Corporation 05-15 11:06 GMT  
(Report with Analyst's Data Sheet) 
Parkland Corporation (PKIUF) stumbled a bit in the new year as first quarter adjusted EBITDA declined double digits on an unplanned...
Small Stumble by Evan Mann, CFA
Orbia 05-09 
CVS 05-08 
Fosun 05-03 
Olin 05-02 
Hertz 04-30 
Brunswick 04-27 
ArcelorMittal 04-18 
CoreCivic 04-16 
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