Capital Wired

Keeps You Updated

Friday, April 16, 2021
Log in

Wener Enterprises Reveals a solid 2Q

By Leave a Comment

Werner (WERN, Outperform) revenue increased 7 percent year over year, driven by solid core freight demand, gainful pricing conditions for truckers and increase in the asset-light units. The earnings $0.35 per share was in-line with consensus while revenue came in $542.1 million, which has beaten our estimates by $18 million. Value added services revenue increased by 10%, thanks to, growth at Werner Global Logistics, modest intermodal and truck brokerage activity growth due to stretched truck capacity.

25265 Werner

Trucking revenue (before fuel surcharges) increased by 4 percent and enhanced revenue trends reveals 3% growth in utilization and 2% growth in pricing. Following commentary, we upgrade Werner’s stock rating to ‘Outperform’ with cut in target price to $29 from our previous $30. Werner is trading at $25.29 currently which is roughly 17 times of our 2014 EPS estimate.

HCA Holdings’ 2Q results lift FY 2014 Guidance

By Leave a Comment

HCA Holdings (HCA, Buy) shares jumped 8% while company posted interim second quarter results, signifying growth in patient volume and net revenue gain. Same facility admissions grew 1.2 percent and case mix increased at rate of 1.7 percent. A same facility equivalent admission increased by 2.2 percent and same facility revenue per equivalent admission is likely to grow at 5.4 percent.

HCA-Hospital-Corporation-of-America

As per preliminary results, revenues are expected to grow at 9.2% year over year to $9.23 billion (which includes pre-tax income to be $904 million with growth rate of 12.2% year over year). EPS is projected to be $1.07 with 17.6% growth rate.

Initially results seems quite positive to us and after reviewing through report, we reiterate our ‘Buy’ rating and escalate price target to $67 from initial figure of $65. Currently HCA is trading at $62.52, which is otherwise, 14 times of our fiscal year EPA estimate

Huntington INC releases Solid Second Quarter Results

By Leave a Comment

With new leadership of CEO Stephen Steinour, Huntington (HBAN, Overweight) has grown above expectations with rebranding and additional new customers. The second quarter earnings increased by 9%, driven by gains in commercial and auto lending, beating analyst estimates by $23.8 million. Impact of fall in revenue in first quarter is not continued in second quarter with revenue more than improved to $710 million, a 5% growth from $677 million year over year.

Huntington

We strongly believe that Huntington Bancshares produced best regional bank report in this earnings season. 8.4% TCE ratio is enough to second our opinion of bank’s growth. We maintain Buy rating and retain $11 price target. Currently bank is trading at $9.57 which is 13 times our 2014 EPS estimate.

Omnicom Profit Grows on hope of New Merger

By Leave a Comment

Omnicom

Omnicom (OMC, Overweight) reported second quarter results which is bit higher than our estimations with adjusted diluted EPS increased by $0.11 year over year to $1.20, beats our estimate by 6 cents. With the fact of termination of the Publicis (PUBGY) merger, investors need to analyze the ability of company to compete in market alone. Advertising giants Omnicom and Publicis abandon $35 billion merger due to rising hurdles in closing the transaction within a realistic time frame, decision on leading positions allocations and getting tax and other regulatory approvals.Company announced total revenue of $3.87 billion (up 6.3% year over year), driven by organic growth in the U.S. rWith the given facets above, we increase price target on Omnicom Group shares from $70.00 to $78.00 and reiterate “Overweight” rating with seeing potential upside of 9.75% from the stock’s previous close. egion at 8.8%, which is far better than advertising rival Interpublic.

Demand of Freight: Werner Enterprises helped with Gainful Pricing Conditions

By Leave a Comment

Werner revenue increased by 7% over the last year due to the solid core freight demand, beneficial pricing conditions for the truckers, and increase in the asset-light units. Their revenue was $542.1 million which has beaten estimates by $18 million. Value added services revenue increased by 10% which is attributable to growth at Wener Global Logistics, some intermodal and truck brokerage activity growth was seen due to stretched truck capacity.

werner-logo

Even though freight demand is strong the demand progress for Werner indicates a market share increase as shippers require safe and trustworthy truck capacity for the coming years. However, if driver shortage persists it is likely that it will hinder Winder’s progress in the future. Werner is trading at $25.29 currently which is roughly 17 times of the 2014 EPS estimates by equity analysts.

Joy Global to Continue the Execution of the Plan

By Leave a Comment

Joy Global, due to short covering on the better than expected service orders and surface margins finished up 7% yesterday. There is not much sentiment on the stock as can be seen by the very high short interest thus any sort of positive news causes shares to rise. The biggest surprise to analysts and experts was the surface mining equipment margin of 19%.

Joy-Global-Inc.

Despite challenges in the operating environment the company seems to be operating well and seems to be on track to hit its cost-cutting targets from prior restructuring efforts. According to experts, Metallurgical coal and iron are one of the weakest commodities and many of the smaller miners are at a break-even or unprofitable at current pricing levels.

FY 2014 Guidance Lifted by the HCA Holdings’ Preliminary Second Quarter

By Leave a Comment

Shares jumped by 8% as HCA holdings posted interim second quarter results implying growth inpatient volume and net revenue gain. Same facility admissions grew 1.2% and case mix increased at rate of 1.7%. A same facility equivalent admission increased by 2.2% and same facility revenue per equivalent admission is likely to grow at 5.4%.

HCA-Hospital-Corporation-of-America

According to preliminary results, revenues are expected to grow at 9.2% year over year to $9.23 billion. Analysts project EPS to be $1.07 with 17.6% growth rate. Looking into 2014 guidance, HCA projects revenues to range in between $36 billion and $36.5 billion. Experts estimate that the adjusted EPS should fall in between $4.00 and $4.25. The results seem quite positive and currently HCA is trading at $62.52, which is fourteen times of the fiscal year EPA estimate according to some sources.

“Future ARC” and “Current ARC” to be settled by the ARC Document Solutions Investor

By Leave a Comment

ARC

WallStreet OTC recently hosted investor meetings with ARC CFO John Troth and Vice President of Inventor Relations David Stickney. OTC continues to believe that the company is directed in the right direction towards driving better top line growth and will benefit from operating leverage as growth picks up.

The company is on its way to becoming a larger, full service, content management provider capable of handling any kind of document for all parts of its life cycle after initial creation. The focus of the majority of investor questions was on understanding the drivers of the company’s document management strategy and the connections between ARC’s legacy role to the new role of managing a company’s print infrastructure. OTC’s 2015 estimates remain virtually unchanged with a revenue growth of 4.3% to $437.8 million adjusted EBITDA of $75.2 million and adjusted EPS of $0.35.

Varient to Announce 3 Years Deal for Cybersecurity Solutions

By Leave a Comment

Verient’s quarterly results surprised analysts and the Street, as they were significantly above expectations. The business grew 47% over the prior-year quarter on a non-GAAP basis guided by strong activity in both the acquired KANA business but also the legacy business which grew 11% year over year.

cybersecurity

The company’s cyber security business signed a significant deal for $100million which will contribute primarily to fiscal 2016 and 2017 and with no revenue recognized in the recently reported May quarter. The EMEA region grew more than 81% year over year showing particular strength. The Americas grew more than 27%, while APAC declined slightly over the same period. Management revised outlook for fiscal year 2015 has a revenue growth of 24.7% and pro forma EPS growing at a slower rate of 19.4% mainly attributable to higher interest expenses from acquisitions.

Hitachi Metals to Purchase Waupaca Foundry for $1.3 Billion in October

By Leave a Comment

The producer of automotive parts and specialty steel, Hitachi Metals, stated yesterday that it will buy the world’s biggest provider of iron castings, Waupaca Foundry Inc. The firm will be bought at $1.3 billion in cash from KPS Capital Partners LP, the buyout firm of the arrangement.

Hitachi Metals found the deal to be a major step for the firm to obtain an expanded customer base and big production faculty.

Presently, the market capitalization of Tokyo-based Hitachi Metals is $7.3 billion. On the other hand, the Wisconsin-based Waupaca, which services North America’s transport machinery market, has reported annual net sales of $1.74 billion dated until September.

Waupaca approved the acquisition of its United States-based six manufacturing plants of the company. KPS found the deal to be a bell ringer. The firm had purchased Waupaca from ThyssenKrupp AG, a German industrial corporation, in 2012.  Although not allowed to be reported, an unknown source claimed that KPS had earned five times its investment for Waupaca, which totaled $226 million. KPS reportedly had the foundry employing an estimated 3,900 people. In the recent fiscal year of ThyssenKrupp AG, the sales amounted to $1.74 billion.

Kazuyuki Konishi, Hitachi Metals chairman, declared that the business base of Hitachi Metals will definitely expand through the Waupaca acquirement. The chairman also disclosed the firm’s plans of extending its business grid through acquisitions in the future.

It became evident that Hitachi Metals is dilating its iron castings sector as proven by its prior acquisitions of Mitsubishi Materials alloy operation and a couple of Indian metal businesses.

In October, finishing point of the arrangement between the two parties is scheduled. The regulator’s approvals are still necessitated for the matter.

Hitachi Metals reported shares of 1,734 yen (up to 0.9% in Tokyo), which were declared before the inauguration of the arrangement.

Hitachi Metals has long been established as one of the top ranking providers of products out of high-end technologies and development means. The company was founded in 1910 and named Tobata Foundry Co. previously. It is the main goal of Hitachi Metals to provide society assistance and high quality management procedures. The firm declared that it will nurture the management’s connection to corporate social responsibility (CSR) concept. For the forthcoming years, the conglomerate is planning to carry on growth along with its patrons, employees, partners, shareholders, and linked communities among others. It makes use of its “Materials Magic” communications symbol.

Categories