The FAA’s freeze on Boeing’s planned 737 MAX production increase provides the company with the stark choice of further amassing inventory or reversing its pledge to suppliers to prep for higher output. Boeing had edged monthly output towards 31, with a view to stepping up to 38 and then 42 and beyond. Boeing shares down 4.1% in aftermarket trade, with suppliers trending lower. Spirit AeroSystems off more than 6%.
FAA Freezes Boeing MAX Ramp Read Post »
After cutting about 3,900 jobs at the beginning of 2023, IBM is entering the new year with confidence that it will maintain a relatively stable headcount in 2024, CFO Jim Kavanaugh tells WSJ. That said, the legacy tech giant “constantly has to revitalize and reskill our mix to be competitive in the marketplace,” the CFO says. IBM spent about $400 million on workforce rebalancing and reskilling in 2023 and expects to spend a similar amount this year, although there are no concrete management plans in place right now, Kavanaugh says.
IBM Expecting Steady Headcount Through 2024 Read Post »
United Airlines Received Final Approval From FAA To Complete The Process To Return Our Fleet Of 79 Boeing 737 Max 9 Aircraft To Service; Said Preparing Max 9 Aircraft To Return To Scheduled Service Beginning On Sunday.
The following is a summary of the Lam Research Corporation (LRCX) Q2 2024 Earnings Call Transcript: Financial Performance: Lam Research Corporation reported robust Q2 financial results, with annual revenue at $14.3 billion and diluted earnings per share at $27.33. Q2 revenue was $3.76 billion, up 8% from the prior quarter and down 29% year-over-year. Gross margin for the quarter was 47.6%, and operating margin maintained at 30%. The company returned approximately 79% of its free cash flow in 2023, amounting to $3.8 billion. Lam repurchased close to 5 million shares in 2023, with a remaining $2.1 billion in the Board-authorized share repurchase plan. Business Progress: Lam showed significant advancements in the foundry, logic, and specialty technology segments, expanding non-memory revenue share. Installed base increased nearly 50% from 2019, with revenue growth over 80%. Projected a modest recovery in memory spending for 2024 with WFE spending estimated to be in the
Lam Research Corporation (LRCX) Q2 2024 Earnings Call Transcript Summary Read Post »
The following is a summary of the International Business Machines Corporation (IBM) Q4 2023 Earnings Call Transcript: Financial Performance: IBM reported Q4 revenue of $17.4 billion, operating pretax income of $4.2 billion, and operating earnings per share of $3.87. The company’s total revenue for the year was nearly $62 billion, up 3% with free cash flow at $11.2 billion, the strongest level of cash generation since 2019. IBM ended the year with cash of $13.5 billion, up $4.6 billion year-over-year with total debt at $56.5 billion. Operating gross profit margin expanded by 130 basis points and operating pretax margin expanded by 40 basis points. For 2024, IBM expects performance to be in line with its mid-term model with mid-single digit revenue growth and about $12 million of free cash flow. Business Progress: IBM noted solid growth in both software and consulting and anticipates software revenue growth to be slightly above
3M (MMM) reported lower fourth-quarter revenue year over year amid softer sales in three of its four business segments while the company’s 2024 earnings outlook fell short of analysts’ estimates at the midpoint of the guidance range. The industrial conglomerate reported sales of $8.01 billion for the three months ended Dec. 31. That’s down from $8.08 billion a year ago but above the average analyst estimate of $7.72 billion on Capital IQ. By segment, sales declined by 2.7% in safety and industrial, by 1.6% in consumer, and marginally in health care. They rose by 1.6% in transformation and electronics. The proposed spinoff of the healthcare business remains on track for the first half of this year, according to 3M. 3M’s shares slumped 11% in Tuesday trade. Adjusted earnings per share rose to $2.42 in the December quarter from $2.18 the year earlier and beat the Street’s view of $2.31. The
3M Issues Downbeat 2024 Earnings Guidance as Fourth-Quarter Revenue Declines Read Post »
United Airlines’ (UAL) unit revenue guidance of flat for Q1 will likely continue its unit revenue outperformance compared with the industry, BofA Securities said in a note to clients on Monday. The firm said United’s outlook is better than its own forecast and the consensus of about minus 2% and also better than Delta Air Lines’ (DAL) guidance of flat to minus 3%. United’s guidance assumes that the Boeing (BA) 737 Max 9 will be grounded through Jan. 31. BofA also said that United’s Q4 EPS of $2 “nicely beat” the firm’s forecast of $1.58 and the Street’s $1.65. BofA maintained United’s buy rating and $56 price objective.
Tesla (TSLA) investors will focus on margins and the 2024 demand outlook in reviewing Q4 results on Wednesday as the company decides to either continue cutting prices or maintain stable margins, Wedbush Securities said. “The conference call in 3Q left investors and bulls with many questions and few answers,” and “that uncertainty has been an overhang on the stock” since late October, Wedbush said Tuesday in a report. “The line in the sand around margins must be drawn tomorrow.” The market expects a 2024 production outlook of 20% unit growth with 2.1 million to 2.2 million units, Wedbush said. “The reality is EV demand globally is stalling and going through a glut of OEM supply now hitting the market, which in turn has put more pressure on the leader Tesla to cut prices to catalyze demand,” Wedbush said. Wedbush maintained an outperform rating for Tesla stock with a price target
Tesla Investors Eyeing 2024 Outlook on Margins, Demand in Q4 Results, Wedbush Says Read Post »
Procter & Gamble maintained its topline guidance and raised the low end of its EPS guidance, but there’s limited upside to that outlook, Truist Securities analysts say in a research note. The consumer products giant continues to deal with a slower than expected recovery in China, and is seeing volume declines for its beauty, health care and baby and family care categories, analysts say. “We recommend investors stay on the sidelines at least until volume trends improve,” analysts say. Shares rise 4.3% to $154.17.
Procter & Gamble Seen With Limited Upside to Guidance Read Post »
The following is a summary of the General Electric (GE) Q4 2023 Earnings Call Transcript: Financial Performance: GE experienced substantial growth in 2023 with tripled earnings and a 70% increase in free cash flow. Its Aerospace, Renewable Energy, and Power segments exhibited strong financial performance with positive profits and free cash flow. Debt was reduced by over $100 billion and shareholders were returned $7 billion. Q4 orders topped $5 billion, with annual orders reaching $23 billion, a roughly 50% increase. Revenue for Renewable Energy and Power businesses grew in double digits, contributing to overall revenue growth. Profits surpassed $1 billion, with Renewable Energy showing over $100 million growth. Free cash flow however was slightly negative. Business Progress: 2024 saw the launch of GE Aerospace and GE Vernova, with the latter focusing on electrification and decarbonization of the globe. GE Aerospace engine deliveries were up 11% and secured over 450 engine
General Electric (GE) Q4 2023 Earnings Call Transcript Summary Read Post »
Lockheed Martin (LMT) shares were down 3.4% in recent Tuesday trading after the company’s Q4 sales fell year-over-year. The company reported Q4 adjusted earnings of $7.90 per diluted share, up from $7.79 a year earlier. Analysts polled by Capital IQ expected $7.25. Net sales for the quarter ended Dec. 31 were $18.87 billion, down from $18.99 billion in the same period in 2022. Analysts surveyed by Capital IQ expected $17.95 billion. The company said it expects 2024 EPS of $25.65 to $26.35 on net sales of $68.50 billion to $70 billion. Analysts expect EPS of $26.37 on revenue of $68.64 billion.
Lockheed Martin Shares Fall After Q4 Sales Drop Read Post »
RTX (RTX) shares were up 5.8% in recent Tuesday trading after the company reported higher-than-expected Q4 results. The company reported Q4 adjusted earnings of $1.29 per diluted share, up from $1.27 a year earlier. Analysts polled by Capital IQ expected $1.25. Net sales for the quarter ended Dec. 31 were $19.93 billion, up from $18.09 billion a year earlier. Analysts surveyed by Capital IQ expected $19.67 billion. The company said it expects 2024 adjusted EPS of $5.25 to $5.40 on sales of $78 billion to $79 billion. Analysts polled by Capital IQ expect normalized EPS of $5 and revenue of $73.28 billion.
RTX Shares Rise After Q4 Results Beat Estimates Read Post »