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Xerox 01-29 03:22 GMT  
(Report with Analyst's Data Sheet) 
Xerox generated free cash flow of more than $1 billion in 2019, and used the cash to reduce debt by $950 million. Consequently, gross leverage declined to 3.1x, while...
Showing Why It Wants HP by Dave Novosel, CFA
Gaming and Leisure Properties, Inc. 01-29 03:07 GMT  
(Report with Analyst's Data Sheet) 
Financial results at the first gaming REIT Gaming and Leisure Properties, Inc. (GLPI) are now reflecting the major property...
Showing Its Stripes by Kim Noland
Liquid Telecommunications Holdings Ltd 01-29 02:49 GMT  
(Report with Analyst's Data Sheet) 
Liquid Telecommunications Holdings Ltd (LIQTEL) released some mixed results for the fiscal Q3 ended November 30, 2019...
Glass Half-Full by Alexandre Dray
Arconic 01-28 20:03 GMT
(Comment)
A year after Arconic Inc.'s spinoff announcement, investors finally have been handed some preliminary...
Spinoff by Carol Levenson, CFA
A year after Arconic Inc.'s spinoff announcement, investors finally have been handed some preliminary financial information regarding its spinoff. Global rolled products, aluminum extrusions, and building and construction systems will be spun off into a company to be named Arconic Corp. The remaining businesses, including engines, fastening systems, engineered structures, and forged wheels, will be renamed Howmet Aerospace. The spinoff is targeted for April 1. Arconic Corp. will borrow $1.2 billion and pay a $700 million dividend to Howmet, where current outstanding bonds will reside (including Arconic's only debt issue). That's about all we know thus far from the company, which did not discuss the balance sheet matters on its fourth quarter earnings call. But one rating agency has affirmed Howmet's weak triple 'B' rating and raised its outlook to "stable" on the assumption that business will improve over the next couple of years and that Howmet will pay down $1.3 billion in debt. The other rating agency, however, affirmed its mid double 'B' rating and lowered its outlook to negative, citing pro forma leverage of nearly 4x (including pension obligations), 737 MAX production uncertainties, management's recent emphasis upon a return of cash to shareholders, activist shareholder pressure, a smaller less diverse business mix, and the lack of any financial policy statement or credit quality goals. Perhaps more will be revealed when management holds investor meetings for both companies in late February. Our coverage will likely continue with Howmet (Arconic will be a small junk issuer) after the spinoff, assuming it proceeds as currently planned. But given the material uncertainties and higher business and financial risk post spinoff, we view Howmet's credit profile as a speculative grade one.
Bank of America 01-28 03:18 GMT  
(Report with Analyst's Data Sheet) 
Bank of America's stock price fell 2.1% yesterday, reflecting the broader market selloff triggered by concerns over the potential economic impact of the...
Digital Growth by Kathleen Shanley, CFA
Orbia Advance Corporation SAB de CV 01-28 02:32 GMT  
(Report with Analyst's Data Sheet) 
Sometimes, businesses decide, when face with an existential threat, to take drastic action and move away from what has been...
New Strategy  by Cedric Rimaud, CFA
Freeport-McMoran Copper & Gold 01-28 02:06 GMT  
(Report with Analyst's Data Sheet) 
Freeport-McMoRan (FCX) is heading into the final transition year before the ramp up of its underground mine at Grasberg and...
Final Transition Year  by Evan Mann, CFA
Freeport-McMoRan Copper & Gold 01-27 17:47 GMT
(Comment)
Freeport-McMoRan's (FCX) fourth quarter revenues rose 6% year over year...
Earnings by Evan Mann, CFA
Freeport-McMoRan's (FCX) fourth quarter revenues rose 6% year over year to $3.9 billion on increased copper and gold shipments and a higher average realized gold price. The adjusted EBITDA margin contracted due to an increase in average unit cost for copper related to the continued ramp-up of underground mines at Grasberg with adjusted EBITDA increasing 1% to $891 million. For 2019, leverage was 3.6x, deterioration from 1.7x in 2018. FCX ended the year with $1.7 billion of available cash and an undrawn $3.5 billion revolver. For 2019, free cash flow after dividends swung $3.1 billion to a $1.5 billion shortfall. The combination of volume growth and lower unit costs should result in a sizeable increase in adjusted EBITDA and cash flow from operations by 2021/2022 even at current copper prices. We will update our projections and review our recommendation shortly.
Sprint Corporation 01-27 14:35 GMT
(Comment)
Sprint added 494K net subscribers in its fiscal third quarter, which ended December 31st...
Earnings by Dave Novosel, CFA
Sprint added 494K net subscribers in its fiscal third quarter, which ended December 31st. The increase was substantially better than last year, and exceeded Street estimates. The better additions were attributable to the 609K data device additions, as postpaid phone subs dropped by 115K. The phone losses were dramatically worse than last year, but better than estimates. Meanwhile, wholesale/affiliate subs dropped only 71K, a nice improvement versus last year. ARPU declined 3.7%, leading to a 6% decline in wireless revenue. Wireline revenue, which has a minimal impact on total results these days, also fell 6%. As bad as that may sound, it was the company's best wireline performance in years. EBITDA margins were down 60 basis points vs. a year ago. Sprint burned through more than $1.25 billion of cash in Q3, bringing the cash burn through the first three quarters to more than $2 billion. The Q3 figures are indicative of the challenges that Sprint is facing should it have to compete on its own. Management remains hopeful that the proposed merger with T-Mobile will survive the states' lawsuit against the deal. We are still leaning toward ultimate approval of the transaction, but it is a very close call, with strong arguments on both sides.
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