Kraft Heinz can pay down its $29B debt and maintain its $2B dividend

Organic net sales down 2% due to volume/mix declines in response to higher pricing in the US and to a lesser extent lower pricing in Canada Further impairments of goodwill (453 USDm) and intangible assets (224 USDm) Strategy presentation will be in early May and not in March. No guidance or outlook for 2020 has […]

AB InBev continues to deleverage and offers value

AB InBev ($BUD, $ABI.BR) issued a press release on their Q4 earnings on February 27th. The company has maintained its dividend while continuing to deleverage. Accounting for the proceeds expected to be received from the divestment of the Australian operations (while excluding the last 12 months EBITDA from the Australian operations), the net debt to […]

BorgWarner to Acquire Delphi Technologies in All-Stock Transaction to Strengthen Propulsion Systems Leadership

BorgWarner ($BWA) is to acquire Delphi Technologies ($DLPH) to strengthen its propulsion systems leadership. The all-stock transaction happens at a time, when both companies are trading at low multiples. $DLPH is up ~60%, whereas $BWA is down ~7%. Below is a summary of the segments of the two S&P500 companies and some of the powertrain […]

European earnings calendar

The earnings season in the US has kicked off with earnings from the banks JP Morgan ($JPM) and Wells Fargo ($WFC). Below are the earnings date for selected European and Nordic publicly listed companies. The companies are mostly constituents of the indices EURO STOXX 50®, STOXX® Europe 50 and OMX Nordic 40.

European earnings calendar

Three important indexes in Europe are the STOXX Europe 50 for Europe and the EURO STOXX 50 for the Eurozone and the S&P 350 Europe. The EURO STOXX 50 Index, Europe’s leading blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders in the region. The STOXX Europe 50 Index, Europe’s leading Blue-chip […]

Costco comparable store sales miss estimates

Costco [COST] issued a press release on their quarterly results after markets closed. Quarterly results Comparable store sales missed estimates and the growth is slowing down in all segments. The US segment represents three quarters of the overall revenue. Comparison with peers Costco has very low gross margins relative to its peers, and despite its […]

Constellation Brands takes a hit from Canopy Growth

Constellations Brands issued a press release on its quarterly results before markets opened. Canopy equity loss All segments performed well in terms of both shipment volume, revenue and profit. But due to continued Canopy equity losses Constellation Brands yet again reported negative earnings for the quarter. The announcement of a positively revised outlook in terms […]

PepsiCo will meet or exceed its full-year organic revenue growth target of four percent

PepsiCo issued a press release regarding its quarterly results before the market opened. CEO comments The financial results were accompanied by the following comments by CEO Ramon Laguarta. “We are pleased with our results for the third quarter. While adverse foreign exchange translation negatively impacted reported net revenue performance, organic revenue growth was 4.3% in […]

HP to lay off 7000-9000 of its 55,000 employees

HP Inc. [HPQ] has announced its 2020 outlook and restructuring plan in a press release with the following headlines. Estimates GAAP diluted net earnings per share (“EPS”) for fiscal 2020 of $1.98 to $2.10 Estimates non-GAAP diluted net EPS for fiscal 2020 of $2.22 to $2.32 Estimates fiscal 2020 free cash flow of at least […]

Profit margins stabilising at H&M

H&M released their nine month report prior to the market opening on October 3rd. Some of the headlines from that report are: With well-received summer collections, the H&M group’s net sales increased by 12 percent to SEK 62,572 m (55,821) in the third quarter. In local currencies, net sales increased by 8 percent compared with […]