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Jefferies Group 06-21 03:39 GMT  
(Report with Analyst's Data Sheet) 
Jefferies Group (JEF) reported strong earnings this week for the fiscal quarter ended May 31, fueled by strength in investment banking. JEF is...
Refocused by Kathleen Shanley, CFA
Companhia Siderurgica Nacional 06-21 03:39 GMT  
(Report with Analyst's Data Sheet) 
In the words of Companhia Siderurgica Nacional S.A. (CSNABZ)'s management during last quarter's results call for analysts, the...
Ambitious Promises by Cedric Rimaud, CFA
Graphic Packaging Holding Co. 06-21 02:54 GMT  
(Report with Analyst's Data Sheet) 
Graphic Packaging recently raised prices again on its key product, coated recycled board (CRB) used to make consumer packaging. If...
Price Action by Kim Noland
Walmart 06-20 19:23 GMT
(Comment)
As we expected (see our report dated 5/21/18), Walmart is in the market with a nine-tranche deal said to...
New Issue by Carol Levenson, CFA
As we expected (see our report dated 5/21/18), Walmart is in the market with a nine-tranche deal said to total $16 billion. The use of proceeds is to fund a portion of its planned 77% stake in Flipkart, one of the leading e-commerce firms in India. We had anticipated cash on hand would be used for some of the $16 billion in cash required, but the difference in pro forma rent-adjusted leverage if it's all borrowed is minimal, still healthy in the 2.5x range. Walmart is reshuffling its international businesses, but we expect it to continue its traditionally conservative financial policies. Recall that an acquisition of Humana has been rumored. Free cash flow is abundant ($12 billion in the last twelve months) and if necessary we believe share repurchase could be curtailed to address any spike in leverage from acquisitions, reflecting the company's superb financial flexibility. Meanwhile at Walmart US comparable store sales growth has stabilized at modest levels while margins have declined somewhat with technology and price investments. We continue to view Walmart bonds as the safest in retailing and consider the new ten-year attractive at T+80.
Oracle 06-20 14:34 GMT
(Comment)
Oracle delivered a 3.3% increase in fiscal fourth quarter revenue (ended May 31st), a marked decline from...
Earnings by Dave Novosel, CFA
Oracle delivered a 3.3% increase in fiscal fourth quarter revenue (ended May 31st), a marked decline from the 6%-plus increases recorded in the first three quarters of the year. Results varied widely by the newly configured segments. Cloud Services and License Support revenue soared more than 8%, while Cloud License and On Premise License revenue plunged 5%. Hardware revenue was up just slightly after several quarters of meaningful decreases. Services revenue fell a little more than 1% after rising in each of the first two quarters. Management noted that the currency tailwinds were not as favorable as originally expected. Also noteworthy was the decision by management not to provide cloud revenue in its earnings release, although management did disclose the number of the conference call. While cloud growth is still substantial, its pace has dropped considerably of late, causing some to question if Oracle is falling behind the competition in this segment. Despite the weaker revenue growth than in previous quarters, EBITDA margins rose 120 basis points. Gross margins dropped 100 basis points, but SG&A expenses relative to revenue fell by 250 bps. Management provided guidance for constant currency revenue growth of 1% to 3% in Q1, and indicated that exchange rates will be a 1% headwind versus a 3% tailwind as estimated at the end of Q3. Oracle generated well more than $10 billion of free cash flow in fiscal 2018. Unfortunately, all of it was used for share repurchases. And to fund its $1.7 billion of spending on acquisitions, Oracle needed to raise $2.6 billion of new debt in FY 2018. However, since the improvement in EBITDA was much better than the increase in debt, leverage actually fell from 3.8x to 3.7x.
Royal Caribbean 06-20 02:24 GMT  
(Report with Analyst's Data Sheet) 
It's been a long time since the last major bout of consolidation in the cruise industry took place at the turn of the century. Last week Royal Caribbean...
You Complete Me by Carol Levenson, CFA
Transocean 06-20 02:12 GMT  
(Report with Analyst's Data Sheet) 
Last week, Transocean (RIG) announced the retirement of three ultra-deepwater rigs (Deepwater Discovery, Deepwater Frontier, and Deepwater Millennium) as well...
High-Grading The Fleet  by Evan Mann, CFA
Windstream Corporation 06-20 02:01 GMT  
(Report with Analyst's Data Sheet) 
Windstream is offering to exchange its 7.75% senior notes due 2020 for new 9.375% senior second lien notes. Bondholders will receive a...
Time For An Exchange by Dave Novosel, CFA
Cleveland-Cliffs Inc. 06-15 14:35 GMT
(Comment)
Earlier this week, Cleveland-Cliffs Inc. (CLF) announced the sale of most of the...
Asset Sale by Evan Mann, CFA
Earlier this week, Cleveland-Cliffs Inc. (CLF) announced the sale of most of the assets of its Asia Pacific Iron Ore business to Mineral Resources Limited. This transaction is expected to close before the end of the second quarter and is consistent with the company's recent decision to permanently close the Asia Pacific Iron Ore operations. CLF estimated cash costs related to this closure would be $120-140 million before asset sales and other mitigation strategies. Reflecting the transaction, the cash costs of closure should fall to an estimated $80 million. Exiting the Asia Pacific Iron Ore business will complete the company's transition to a pure play U.S. iron-ore supplier. We will update our projections and review our rating shortly.
L-3 06-06 
Deutsche Bank 05-31 
Penney 05-22 
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Jun 16, 2018 | Barron's
GC on AT&T - Q- "On that score, Gimme Credit, the very independent corporate credit research outfit, last week reiterated its negative stance on AT&T's notes maturing in 2027, given the increase in leverage following the Time Warner acquisition."
Feb 8, 2018 | Financial Times
KS on Wells Fargo - Q- "It is certainly a black eye for Wells Fargo that they have not been able to put the sales incentive scandal behind them, but the growth restrictions are a greater concern for equity investors than for bondholders."
Nov 6, 2017 | Bloomberg
CL on TEVA -Q-"We find it troubling that management, which presumably met with Fitch before the downgrade, was not able to convince the rating agency that it would take more dramatic deleveraging actions in order to preserve investment grade ratings,"
Nov 6, 2017 | Bloomberg
DN on Sprint- Q- "They don't produce enough free cash flow to cut into the debt," "The only possible way to do that is to continue cutting costs."
Oct 14, 2017 | Associated Press
PA on Pacific Gas and Electric Co.- Q- Investors "are spooked,"
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