Caterpillar CFO Says Price Increases Will Exceed Manufacturing Costs For The Year.
Caterpillar CFO Says Price Increases Will Exceed Manufacturing Costs For The Year Read Post »
Caterpillar dealers cut their inventories by $900 million in 4Q, accounting for much of the sales decline in construction and mining equipment during the quarter. The decrease in inventories follows a $700 million increase in 3Q inventories. Caterpillar says it does not expect a “significant change” in dealer inventories in 2024. Dealers stocked more equipment in recent years because supply-chain problems created long lead times for filling orders. As the company’s factory output improves, dealers are finding they can get equipment faster and need to hold less equipment, CEO Jim Umpleby tells analysts.
Caterpillar Dealers Cut Inventories As Supply-Chain Problems Ease Read Post »
Caterpillar sees 2024 demand for construction equipment in North America being driven by continued government spending on roads, bridges and other infrastructure projects. CEO Jim Umpleby says on an analyst call that expects residential construction to “remain healthy relative to historical levels.” Caterpillar says demand for its power-generating engines is getting a lift from big investments in new data centers. Shares up 1.6% at $320.06.
Caterpillar Counting on Infrastructure, Data Centers in 2024 Read Post »
Boeing has fallen on some hard times. Its 737 MAX jets have run into more problems while the Airbus A320 family of jets — the MAX’s competition — has extended its lead in the key single-aisle segment of the jet market. Boeing can still lay claim to market dominance in twin-aisle, wide-body jets, though. How it has maintained the lead in that segment gives clues to how it can win back share in the 737-size jet market. Over the past 15 years, Airbus has delivered just over 1,800 twin-aisle jets. Boeing has delivered almost 2,600, giving it about 58% market share. What’s more, Boeing has about 70% of the backlog for new twin-aisle jets, based on order figures reported by both companies. Things are getting better for Boeing in the wide-body market. That’s the reverse of what’s going on in the single-aisle jet market. Airbus has accounted for about 57%
How Boeing Can Win Back This Key Market From Airbus — Barrons.com Read Post »
By Sharon Terlep Boeing is reworking 50 undelivered 737 MAX jets after a supplier’s employee recently found misdrilled holes on some fuselages, a new production snafu for the aircraft manufacturer. Spirit AeroSystems, which has been at the center of quality issues affecting 737s, supplied the fuselages. Boeing said that the issue could delay some deliveries in the near term and that existing 737s can keep flying. “This is the only course of action given our commitment to deliver perfect airplanes every time,” Boeing’s commercial chief Stan Deal said in a memo to staff on Sunday. Boeing said it is finalizing instructions for the rework and expects to know how long it will take in coming days. Deal said the employee flagged to his manager two holes that may not have been drilled exactly to the jet maker’s requirements. Delays will allow the company to inspect and, if necessary, fix any
Boeing Finds New Problem With 737 MAX Fuselages — WSJ Read Post »
Mastercard Inc. (NYSE: MA) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/01/2024 8.29% BMO Capital $480 → $490 Maintains Outperform 01/18/2024 2.1% Mizuho $420 → $462 Maintains Buy 01/11/2024 6.52% Goldman Sachs $433 → $482 Maintains Buy 01/11/2024 12.71% Oppenheimer → $510 Upgrades Perform → Outperform 01/08/2024 4.97% Keybanc $430 → $475 Maintains Overweight 12/20/2023 — Monness, Crespi, Hardt Initiates Coverage On → Neutral 12/12/2023 6.08% Jefferies $425 → $480 Maintains Buy 12/07/2023 9.39% Tigress Financial $476 → $495 Maintains Strong Buy 12/05/2023 4.97% BMO Capital → $475 Assumes → Outperform 10/31/2023 -7.18% Mizuho $435 → $420 Maintains Buy 10/30/2023 3.87% Barclays $479 → $470 Maintains Overweight 10/27/2023 -4.53% RBC Capital $441 → $432 Maintains Outperform 10/27/2023 4.31% BMO Capital $488 → $472 Maintains Outperform 10/27/2023 -2.98% Morgan Stanley $443 → $439 Maintains Overweight 10/27/2023 -0.11% Raymond James $453 → $452
Mastercard Inc. (NYSE: MA) Stock Analyst Ratings Read Post »
Boeing (BA) posted “strong” Q4 results backed by its free cash flow and “positive” commercial airplane operating margins, but the focus is now on inventory draw-down and supply chain stability, RBC Capital Markets said in a note to clients emailed Thursday. “The story for 2024 is about inventory liquidation as the FAA keeps a lid on near-term MAX production increases,” said RBC analysts Ken Herbert and Stephen Strackhouse. The investment firm kept the company’s outperform rating and cut the price target to $260 from $285. For its Q4, Boeing posted a narrower core loss of $0.47 per share from its $1.75 per-share loss a year earlier. Analysts surveyed by Capital IQ expected a core loss of $0.79 per share. Revenue for the quarter increased to $22.02 billion from $19.98 billion a year earlier. Analysts expected $21.08 billion. While Boeing has “withheld providing detailed 2024 guidance,” it indicated that the $4.4
Boeing Delivered ‘Strong’ Q4 Results, Focus Is Inventory Liquidation, RBC Says Read Post »
Caterpillar’s (CAT) Q4 earnings may trail market expectations as recent data indicate “fundamental headwinds” not fully reflected in the consensus, UBS Securities said Thursday in a report. The heavy equipment manufacturer is scheduled to report Q4 results Monday with UBS projecting earnings at $4.51 a share, compared with Wall Street’s $4.75 consensus. “URI, Volvo and Komatsu December quarter results leave us with increased conviction in our view that momentum in the business is slowing,” UBS said. “For Q4, we have a cautious fundamental bias into the print, but investors should be prepared for the possibility of short covering post-Q4 results,” given Caterpillar’s crowded short position, the report said. UBS increased its price target on Caterpillar to $240 from $209 and maintained its sell rating. Caterpillar shares rose 1.6% in recent Thursday trading.
Caterpillar Q4 Earnings May Miss Consensus Amid ‘Fundamental Headwinds,’ UBS Says Read Post »
Mastercard (MA) is casting an eye toward further strength in consumer spending in 2024 after robust activity aided the payments processor in outstripping expectations for its fourth-quarter financial results. “We remain fairly positive about the growth outlook. Consumer spending continues to be supported by a strong labor market and wage growth,” Chief Financial Officer Sachin Mehra said on the company’s conference call Wednesday, according to a transcript from Capital IQ. “Our base case scenario for 2024 reflects healthy consumer spending and recent spending dynamics.” The upbeat remarks about a critical factor for growth came after the company said “healthy consumer spending” was a driver for “strong” earnings and revenue growth last year. It also presented fourth-quarter adjusted earnings and revenue above the Street’s consensus estimates. For 2024, the company forecast net revenue percentage growth at the high end of low double digits. Revenue rose 13% in 2023. Shares of Mastercard
Boeing CEO David Calhoun says that Alaska Air door-plug blowout doesn’t negate quality improvements the company has made on its 737 MAX jets since a pair of fatal crashes in 2018 and 2019. “Wasn’t the 737 line the most scrutinized product line in the word?” Bank of America analyst Ron Epstein asked Calhoun on a call to review Boeing’s financial results. “What happened to get to where we’ve gotten today?” Calhoun said quality on the 737 line has steadily progressed since the crashes and quality numbers have improved. “I think I understand your underlying context for the question but I take exception to the premise.”
Boeing CEO Defends 737 Quality Improvements Progress Read Post »
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $194, down from $209, reflects a 25x multiple of projected 2025 EPS, below BA’s recent historical forward average, based on what we see as high regulatory risk. We lift our 2024 EPS estimate by $0.41 to $4.01 but cut 2025’s by $0.59 to $7.76. A Q4 operating loss per share of $0.47, vs. a loss per share of $1.75, was $0.32 better than consensus. The FAA is limiting BA, for now, to a delivery rate of 38 units per month for its flagship 737 MAX narrow-body aircraft while BA irons out process and manufacturing deficiencies. We think current consensus EPS estimates for 2024 and 2025 bake in a fairly rapid recovery in commercial aerospace deliveries, yet BA pulled forward guidance, and the Alaska
CFRA Cuts View On Shares Of The Boeing Company To Sell From Hold Read Post »
The following is a summary of the Mastercard, Inc. (MA) Q4 2023 Earnings Call Transcript: Financial Performance: Mastercard reported an 11% increase in Q4 net revenues, fuelled by robust consumer spending and strategic execution. A 13% increase in operating income from the previous year observed. Minimal impacts from acquisitions on operating expenses, which increased 9%. Net income and earnings per share increased 15% and 18% respectively, boosted partly by a non-recurring tax benefit. $1.8 billion worth of stock was repurchased during the quarter, with an additional $586 million repurchased beyond the quarter through January 26, 2024. Gross dollar volume (GDV) worldwide showed a 10% year-on-year increase. The company saw an 18% global growth in cross-border volume for Q4 and a 12% increase in switched transactions YoY. Payment Network net revenue increased by 7%, Value-added Services & Solutions net revenue grew by 17%. Business Progress: The company saw momentum in deals
MasterCard(MA.US) Q4 2023 Earnings Conference Read Post »