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Intel 01-25 14:45 GMT
(Comment)
Intel recorded fourth quarter revenue that was down 1% versus a year ago but was significantly higher than...
Earnings by Dave Novosel, CFA
Intel recorded fourth quarter revenue that was down 1% versus a year ago but was significantly higher than management guidance. Huge declines in the Data Center (-16%), Internet of Things (-16%), and Programmable Solutions (-16%) segments were offset by a 39% increase at Mobileye and a 9% rise in the Client Computing Group, both of which posted record quarters. The latter benefited from huge demand for notebooks and cloud. Unfortunately, operating margins plunged by more than 400 basis points, reflecting the costs for 7-nanometer and lower average selling prices in the Data Center unit. Intel generated almost $16 billion of free cash flow in 2020, most of which was used for share repurchases. FCF was bolstered by a substantial source of working capital. Of course, the market was more interested in future guidance. Intel is expecting a 6% decline in revenue for Q1, and a massive drop in operating margins. However, the company did not provide an annual forecast. Pat Gelsinger, who will take over as CEO next month, was on the conference call. He indicated that his initial assessment was that Intel would still manufacture the majority of its 2023 products internally but would use external foundries for certain technologies and products. He promised more details after he joins the company. In any case, he expects INTC to be a leader in manufacturing.
Top Ten 01-25 03:29 GMT  (Report)
The high yield market rebounded from COVID-19 concerns along with soaring equity markets, due to vast amounts of pandemic monetary stimulus. The rush of liquidity is...
Top Ten by Gimme Credit
Procter & Gamble 01-25 03:21 GMT  
(Report with Analyst's Data Sheet) 
PG's fiscal second quarter ended December 31 continued a string of mid to high single digit organic sales growth quarters, with broad-based growth...
Can It Last? by Carol Levenson, CFA
International Business Machines 01-25 03:14 GMT  
(Report with Analyst's Data Sheet) 
Management is optimistic that IBM will return to revenue growth in 2021, noting that it is the company's most important metric. ...
Red Hat Can't Save IBM by Dave Novosel, CFA
Orbia Advance Corporation SAB de CV 01-25 03:09 GMT  
(Report with Analyst's Data Sheet) 
As the global economy recovers from the COVID-19 pandemic, investors are looking to place some bets. In early January, Orbia...
Unsuccessful Bid  by Cedric Rimaud, CFA
TransDigm 01-22 04:47 GMT  
(Report with Analyst's Data Sheet) 
Earlier this month, TransDigm Group (TDG) completed the previously announced acquisition of Cobham Aero Connectivity (CAC) for $965 million in cash and expected...
Decent Performance by Evan Mann, CFA
OAO Gazprom 01-22 04:42 GMT  
(Report with Analyst's Data Sheet) 
OAO Gazprom (GAZPRU) issued $2 billion of new 8-year notes at par to yield 2.95%. The initial guidance was 3.25-3.75% but, in light of the reportedly strong...
Get Down To Basics by Alexandre Dray
Goldman Sachs 01-22 04:22 GMT  
(Report with Analyst's Data Sheet) 
Goldman Sachs (GS) is investing heavily in a suite of consumer products, including Marcus, its online bank, as well as credit card partnerships with Apple...
Past, Present, Future by Kathleen Shanley, CFA
Kinder Morgan 01-21 14:09 GMT
(Comment)
Kinder Morgan finished the year with an 8.5% decline in EBDA for the fourth quarter, bringing...
Earnings by Dave Novosel, CFA
Kinder Morgan finished the year with an 8.5% decline in EBDA for the fourth quarter, bringing the full year decrease to roughly 8%. As in previous periods, the weakest segment was Product Pipelines, where EBDA dropped almost 20%. Crude and condensate pipeline volumes plummeted 26%, while total refined products volumes fell 13%. Terminals EBDA dropped 11%, attributable to the sale of KML in late 2019, as well as lower refined product volumes. CO2 EBDA was down 10%, reflecting lower sales volumes and lower crude production. Natural Gas Pipelines EBDA declined nearly 5% due to a 2% reduction in natural gas transport volumes and a 20% plunge in natural gas gathering volumes, with particular weakness in the KinderHawk and Eagle Ford systems. Adjusted EBITDA would have declined even more but KMI achieved $190 million of savings between operating expenses and sustainable capital expenditures. Distributable cash flow was down nearly 8%. As we noted in our recent report, both adjusted EBDA and DCF are likely to decline much more modestly in 2021, while the dividend will likely be increased by 3%. KMI expects to deliver $1.2 billion of excess DCF above the dividend. $750 million will be allocated to debt reduction (done in January) and $450 million is available for share repurchases. Management does not intend to establish a schedule for stock buybacks but wants to remain opportunistic. Based on the reduced debt and lower anticipated EBITDA, we estimate that leverage at year-end will be 4.7x, which is where it ended 2020. Using net debt, leverage would remain flat at 4.6x year-over-year. Management emphasized that any acquisitions would need to be leverage-neutral, or even leverage-accretive.
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