Home |  Products |  Bios |  News |  Contact Us |  FAQ
  Independent Research on Corporate Bonds Since 1994 Preferences|Login


MGM Resorts International 11-29 06:48 GMT  
(Report with Analyst's Data Sheet) 
MGM Resorts (MGM) along with existing concessionaires got some good news from Macau last week. Gaming licenses held by MGM, Wynn, Las...
Not So Lucky by Kim Noland
Wells Fargo 11-29 06:48 GMT  
(Report with Analyst's Data Sheet) 
Wells Fargo (WFC) is benefiting from higher interest rates and strong loan growth. But its third quarter earnings were down year-over-year, reflecting higher...
Still On The Regulatory Hot Seat by Kathleen Shanley, CFA
Fosun International Limited 11-29 06:47 GMT  
(Report with Analyst's Data Sheet) 
The Chinese economy is going through a new transition. Growth has slowed down and the COVID-19 health crisis continues to linger, despite...
Change Of Course by Cedric Rimaud, CFA
Empresas CMPC 11-28 04:23 GMT  
(Report with Analyst's Data Sheet) 
Empresas CMPC (CMPCCI) reported its results for 3Q22 and held an investor day last week. Results came in line with market expectations but slightly above...
On An Even Keel by Alexandre Dray
L3Harris Technologies, Inc. 11-28 04:23 GMT  
(Report with Analyst's Data Sheet) 
L3Harris Technologies (LHX) reported third quarter revenue and adjusted EBITDA short of the consensus forecast and lowered 2022 full year...
Still No Growth by Evan Mann, CFA
Bottom Ten  11-28 02:27 GMT  (Report)
Weakening economic conditions, elevated inflation, and higher interest rates could constrain consumers'...
Bottom Ten  by Gimme Credit
Cisco Systems 11-17 14:16 GMT
(Comment)
Revenue rose 5.7% at Cisco Systems for the fiscal first quarter that ended October 29th, aided...
Earnings by Dave Novosel, CFA
Revenue rose 5.7% at Cisco Systems for the fiscal first quarter that ended October 29th, aided by a modest improvement in component availability as shortages ease. Secure Agile Networks, by far its biggest segment, led the way with a gain of 12%. That more than offset declines of 5% in the Internet for the Future segment and 2% in the Collaboration segment. Services revenue was up just slightly. Software revenue increased 5% while software subscription revenue rose 11%, continuing the transition to these types of revenue. Based on management's guidance, revenue growth for Q2 and all of fiscal 2023 should be similar to Q1 with increases of 5.5% at the midpoint. An elevated backlog is behind the anticipated revenue growth. Similar to recent periods gross margins were down in Q1, this time by 120 basis points. The decrease was attributable to higher component costs and higher logistics costs stemming from supply constraints. EBITDA margins declined by 180 bps. Management expects margins to improve over the next few quarters versus Q1 levels because of more software sales and the ability to sell at higher prices once the backlog with older pricing diminishes. In terms of costs, management noted that it intends to rebalance its workforce, but expects to maintain headcount at current levels. The restructuring will require roughly $600 million in expenses. CSCO generated $2.2 billion of free cash flow in Q1 and used it to reduce debt by $600 million and to make share repurchase of $660 million. The better EBITDA and lower debt pushed leverage down to 0.5x.
Vodafone 11-15 17:07 GMT
(Comment)
Vodafone posted a 2.0% increase in revenue for the fiscal first half that ended September 30th...
Earnings by Dave Novosel, CFA
Vodafone posted a 2.0% increase in revenue for the fiscal first half that ended September 30th. Revenue in Germany rose 2% due to better equipment sales that offset broadband losses. UK revenue was up 7% because of an increased customer base and contractual price increases as well as higher MVNO, roaming and visitor revenue. But revenue fell 6% in Spain attributable to a smaller customer base and a reduction in mobile termination rates. Revenue in Italy was down 5.2%, reflecting lower service revenue and equipment sales. Vodacom revenue surged 9% due to the strengthening of local currencies versus the euro. Overall operating margins dropped by 140 basis points, marked by huge declines in Germany and Italy. Germany was hurt by the decrease in service revenue, one-off settlements last year and higher customer acquisition costs. Italy was buffeted by lower mobile service revenue amid a very promotional environment. The weak results prompted management to lower its full year EBITDA range and free cash flow target. In addition, the company is implementing a GBP1 billion savings program through 2026 to offset inflationary costs, including energy. Much of the savings are expected to be in digitalization and automation. VOD is also raising prices in virtually all of its markets. An increase in debt and the expected lower EBITDA should drive leverage up to 4.9x at year-end. However, proceeds from the sale of some of its interest in Vantage Towers should allow for some debt and leverage reduction.
Tyson Foods, Inc. 11-15 14:29 GMT
(Comment)
Tyson reported a 7.2% increase in sales for the fiscal fourth quarter that ended October...
Earnings by Dave Novosel, CFA
Tyson reported a 7.2% increase in sales for the fiscal fourth quarter that ended October 1st. While that rate of growth is none too shabby it was the weakest expansion since the second quarter of fiscal 2021. Given the nature of this business, results can be volatile, and Q4 was no exception. Chicken sales soared 19%, reflecting higher volumes and higher average sales prices. Prepared Foods sales were up almost 12% due to higher average prices stemming from effective revenue management. Pork sales were down almost 3% because of lower prices due to an unfavorable product mix associated with export demand and elevated domestic availability of finished products. Beef sales dropped 3% attributable to a decline in average selling prices driven by reduced demand for premium cuts of beef compared to robust demand last year. Overall sales for all of fiscal 2022 rose more than 13%. Overall operating margins for Q4 fell 320 basis points, marked by a substantial decline in Beef and a loss in Pork. The margin erosion came despite $700 million of savings from its productivity initiative. That program is expected to deliver $1 billion of savings by the end of fiscal 2023 a year earlier than originally planned. But the company faced cost increases of up to 25% in areas such as labor, feed ingredients, live animals, and freight. Based on management's guidance, fiscal 2023 may not be a great year. Sales are likely to be up roughly 5% but operating margins are likely to decline 200 basis points or more. TSN slashed debt by more than $1 billion in fiscal 2022. Combined with the better EBITDA, leverage dropped to 1.5x, which is as low as it has been over the past nine years. TSN used cash on hand to reduce debt since free cash flow was minimal due to an extensive use of working capital to build inventory, pay higher taxes, and accrue for legal settlements.
For Clients Only: New Investment Grade Bottom Ten is here!

An Independent Viewpoint
Rigorous Analysis
Coverage of Key Securities
Every report is one page, and concludes with an actionable investment recommendation.
Jul 12, 2020 | Philadelphia Inquirer
CL on Walgreens third quarter losses
Jun 30, 2020 | Barron's
EM on Chesapeake Energy Declared Bankruptcy. Other Oil-and-Gas Stocks Could be in Danger Too.
Jun 25, 2020 | WSJ Pro
KN on Mohegan Sun: Refi Risk
Jun 22, 2020 | Cincinnati Business Courier
CL on Kroger analyst explains why shares fell after big earnings
Jun 16, 2020 | WSJ Pro
EM on Lear Hits Speed Bump from Covid-19
Copyright © 2022. Gimme Credit LLC. All Rights Reserved.