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>>> Parker-Hannifin Corporation (PH) manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates through two segments: Diversified Industrial and Aerospace Systems.
The Diversified Industrial segment offers sealing, shielding, thermal products and systems, adhesives, coatings, and noise vibration and harshness solutions; filters, systems, and diagnostics solutions to ensure purity and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors used in fluid and gas handling; and hydraulic, pneumatic, and electromechanical components and systems for builders and users of mobile and industrial machinery and equipment. This segment sells its products to original equipment manufacturers (OEMs) and distributors who serve the replacement markets in manufacturing, packaging, processing, transportation, construction, refrigeration and air conditioning, agricultural, and military machinery and equipment industries.
The Aerospace Systems segment offers products for use in commercial and military airframe and engine programs, such as control actuation systems and components, engine build-up ducting, engine exhaust nozzles and assemblies, engine systems and components, fluid conveyance systems and components, fuel systems and components, fuel tank inerting systems, hydraulic systems and components, lubrication components, avionics, sensors, pneumatic control components, thermal management products, fire detection and suppression systems and components, and wheels and brakes, as well as fluid metering, delivery, and atomization devices. This segment markets its products directly to OEMs and end users. The company markets its products through direct-sales employees, independent distributors, and sales representatives. Parker-Hannifin Corporation was founded in 1917 and is headquartered in Cleveland, Ohio.
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https://finance.yahoo.com/quote/PH/profile?p=PH
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>>> Hubbell Incorporated (HUBB), together with its subsidiaries, designs, manufactures, and sells electrical and utility solutions in the United States and internationally. It operates through two segments, Electrical Solutions and Utility Solutions. The Electrical Solution segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies. It also designs and manufactures various industrial controls, and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries. This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product-oriented internet sites; and special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers. The Utility Solution segment designs, manufactures, and sells electrical distribution, transmission, substation, and telecommunications products, such as arresters, insulators, connectors, anchors, bushings, and enclosures cutoffs and switches; and utility infrastructure products, including smart meters, communications systems, and protection and control devices. This segment sells its products to distributors. Its brand portfolio includes Hubbell, Kellems, Bryant, Burndy, CMC, Bell, TayMac, Wiegmann, Killark, Hawke, Aclara, Fargo, Quazite, Hot Box, etc. The company was founded in 1888 and is headquartered in Shelton, Connecticut.
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>>> EMCOR Group, Inc. (EME) provides electrical and mechanical construction, and facilities services primarily in the United States and the United Kingdom. It offers design, integration, installation, start-up, operation, and maintenance services related to electrical power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation in the refining, chemical processing, and food processing industries; low-voltage systems, such as fire alarm, security, and process control systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and high-purity piping systems; controls and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging services; millwright services; and steel fabrication, erection, and welding services. The company also provides building services that cover commercial and government site-based operations and maintenance; facility management, maintenance, and services; outage services to utilities and industrial plants; military base operations support services; mobile mechanical maintenance and services; services for indoor air quality; floor care and janitorial services; landscaping, lot sweeping, and snow removal services; vendor management and call center services; installation and support for building systems; program development, management, and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects; small modification and retrofit projects; and other building services. It offers industrial services to oil, gas, and petrochemical industries. The company was incorporated in 1987 and is headquartered in Norwalk, Connecticut.
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>>> Applied Industrial Technologies, Inc. (AIT) distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates in two segments, Service Center Based Distribution, and Engineered Solutions. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides technical support services; engages in the distribution of fluid power and industrial flow control products; advanced automation solutions, including machine vision, robotics, motion control, and smart technologies. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.
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>>> Deere & Company (DE)
https://www.insidermonkey.com/blog/5-best-mario-gabelli-stocks-other-billionaires-are-also-piling-into-1235826/2/
Number of Billionaire Investors In Q3 2023: 14
Deere & Company (NYSE:DE) is one of the world’s biggest industrial machinery firms known for its tractors, crawlers, and other products. More than three quarters of its stock is owned by institutional investors, indicating a strong foundation but also implying low liquidity.
During September 2023, 55 out of the 910 hedge funds profiled by Insider Monkey were the firm’s shareholders. Deere & Company (NYSE:DE)’s biggest hedge fund investor is Michael Larson’s Bill & Melinda Gates Foundation Trust as it owns $1.4 billion worth of shares.
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>>> U.S. Space Force Awards Booz Allen $630M Systems Engineering and Integration Contract
Business Wire
October 4, 2023
https://finance.yahoo.com/news/u-space-force-awards-booz-120000256.html
Booz Allen to support engineering and integration of space sensing systems
MCLEAN, Va., October 04, 2023--(BUSINESS WIRE)--Booz Allen Hamilton (NYSE: BAH) announced today it was awarded a seven-year, $630-million, single-award contract with the U.S. Space Force to support systems engineering and integration of next-generation space-based missile warning, environmental monitoring, and surveillance, reconnaissance, and tracking. As part of this work, Booz Allen will support Space Systems Command (SSC)—the Space Force field command for space development, acquisition, launch, and logistics—in engineering resilient space sensing capabilities. In addition, the firm will integrate the Next Generation Overhead Persistent Infrared (OPIR) program, a $14.4 billion program to upgrade U.S. missile warning and missile tracking capabilities to combat emerging missile threats.
This contract will leverage Booz Allen’s capabilities and mission expertise in digital engineering, mission integration, agile software development, cybersecurity, change management, AI, and machine learning (ML) to help the Space Force achieve its vision for a Digital Service. It also demonstrates the criticality of the space domain in delivering key decision-making information to warfighters and intelligence agencies to protect the nation.
"Booz Allen has been a trusted partner for defense, national security, and civil space missions for more than 50 years, starting with the nation's first missile defense strategy," said Andrea Inserra, executive vice president and leader in Booz Allen’s Aerospace business, which includes critical work for the U.S. Air Force, Space Force, U.S. Space Command, and NASA. "This is an exciting moment for Booz Allen, and we are thrilled to continue building upon our partnership with Space Force and the Department of Defense for critical missions aimed at accelerating and maintaining space superiority and driving information to action—no matter the domain."
Work on the contract will primarily take place in El Segundo, California, and Colorado Springs and Aurora, Colorado, with the ability to leverage teams and technology capabilities at additional U.S. locations as needed.
"This contract win is a key element of Booz Allen’s long-term, multiyear space strategy to meet client needs at the intersection of mission and technology," said Eric Hoffman, vice president and leader in Booz Allen’s space business. "This partnership reaffirms Booz Allen’s position as a leader in building and delivering world-class, mission-critical systems engineering, cyber architecture, and remote sensing capabilities to sustain U.S. space superiority."
This win builds on Booz Allen’s deep history in space solutions. The firm’s work includes over 50 years of multifaceted support for the International Space Station, modernization of NASA’s infrastructure and policies, engineering and analysis for the Artemis mission, and the Cybersecurity and Privacy Enterprise Solutions and Services (CyPrESS) contract—the first time NASA has united cybersecurity for IT, operational technology, and mission systems under one contract.
For more information about Booz Allen’s space solutions, visit here, and for more information on space careers, visit Booz Allen’s open space positions here.
About Booz Allen Hamilton
Trusted to transform missions with the power of tomorrow’s technologies, Booz Allen Hamilton advances the nation’s most critical civil, defense, and national security priorities. We lead, invest, and invent where it’s needed most—at the forefront of complex missions, using innovation to define the future. We combine our in-depth expertise in AI and cybersecurity with leading-edge technology and engineering practices to deliver impactful solutions. Combining more than 100 years of strategic consulting expertise with the perspectives of diverse talent, we ensure results by integrating technology with an enduring focus on our clients. We’re first to the future—moving missions forward to realize our purpose: Empower People to Change the World®.
With global headquarters in McLean, Virginia, our firm employs more than 32,600 people globally as of June 30, 2023 and had revenue of $9.3 billion for the 12 months ended March 31, 2023.
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UFPI - >>> DECKORATORS® VOYAGE DECKING RECOGNIZED IN GOOD HOUSEKEEPING'S 2023 HOME RENOVATION AWARDS
PR Newswire
October 9, 2023
https://finance.yahoo.com/news/deckorators-voyage-decking-recognized-good-142800731.html
GRAND RAPIDS, Mich., Oct. 9, 2023 /PRNewswire/ -- Deckorators®, a leading brand of UFP Industries, Inc. (Nasdaq: UFPI), announced today that its patented Voyage Mineral-Based Composite Decking has been recognized in the prestigious Good Housekeeping 2023 Home Renovation Awards. A full list of winners can be found at
https://www.goodhousekeeping.com/home/renovation/a44870187/home-renovation-awards-2023/.
"We are honored to have our Voyage Decking line recognized with this award," says Michelle Hendricks, Deckorators Category Marketing Manager. "Voyage was specially designed to provide a timeless, versatile look for outdoor living spaces that will stand the test of time."
Deckorators Voyage Decking features a patented mineral-based composite technology that produces a fiber-like structure like wood. It has unmatched strength yet is nearly 35% lighter than other composites. With unique textured embossing for greater surface traction, Voyage is ideal for decks as well as areas around pools, spas, and hot tubs. Voyage Varied-plank Decking is available in four widths and six hues, allowing contractors and do-it-yourselfers to create custom wood-look floors.
"Homeowners are moving away from playing it safe in their outdoor living designs," Hendricks continues. "Now more than ever, they're seeking opportunities to add personality into those spaces. Our Voyage line was developed with that in mind, offering countless combinations for customization."
Compared to other multi-width decking options composed of PVC, Voyage Varied-plank Decking is stronger, allows less thermal movement and absorbs less moisture allowing Deckorators to back Voyage with industry-leading 50-year structural and 25-year stain-and-fade limited warranties.
Deckorators' growing network of more than 800 contractors across North America brings outdoor living to life nationwide.
About Deckorators
Deckorators, the first name in decking, railing and accessories, invented the low-maintenance aluminum balusters category and has since led the industry with innovative decking and railing products. With dependably on-trend designs, Deckorators lets DIYers and builders extend their creative ideas from a home's interior to its outdoor living spaces. Deckorators is a brand of UFP Retail Solutions, LLC, a UFP Industries company.
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>>> General Electric Company (NYSE:GE) -- Goldman Sachs’ Stake Value: $443,959,690
https://www.insidermonkey.com/blog/goldman-sachs-defense-stocks-top-5-stock-picks-1190422/2/
Number of Hedge Fund Holders: 71
General Electric Company (NYSE:GE) operates as a high-tech industrial company worldwide. It offers gas and steam turbines, power generation solutions, and data-driven software for different sectors. Additionally, General Electric Company (NYSE:GE) designs and produces commercial and military aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It is one of the best Goldman Sachs defense stocks. In Q2 2023, Goldman Sachs held a $444 million stake in General Electric Company (NYSE:GE).
On July 25, General Electric Company (NYSE:GE) reported a Q2 non-GAAP EPS of $0.68 and a revenue of $16.7 billion, outperforming Wall Street consensus by $0.22 and $1.55 billion, respectively.
According to Insider Monkey’s second quarter database, 71 hedge funds were bullish on General Electric Company (NYSE:GE), up from 59 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the leading stakeholder of the company, with 41.6 million shares worth $4.5 billion.
Vulcan Value Partners made the following comment about General Electric Company (NYSE:GE) in its Q1 2023 investor letter:
“General Electric Company (NYSE:GE) was a material contributor during the quarter. With the successful spin-off of GE HealthCare in early January, the company operates in two major markets: GE Aerospace and GE Vernova. GE Aerospace powers three out of every four commercial flights. GE Vernova helps generate 30% of the world’s electricity and has a meaningful role to play in the energy transition. The company’s service activities, which are higher margin and more resilient, represent approximately 60% of revenue and 85% of its backlog. The company reported strong fourth quarter 2022 results and management’s 2023 outlook is positive.”
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>>> Caterpillar Stock : More Recession-Resistant Than You’d Think
Tip Ranks
by Nikolaos Sismanis
Apr 12, 2023
https://www.tipranks.com/news/article/caterpillar-stock-nysecat-more-recession-resistant-than-youd-think
Story Highlights
Caterpillar is more recession-resistant than investors realize, with strong industry tailwinds shielding its performance against a potential market downturn. Its focus on services and strong backlog should also contribute to this rationale.
Given the cyclical nature of its industry, Caterpillar (NYSE:CAT) is often expected to bear the brunt of a recession, leading to a significant impact on its financial performance. With market uncertainty remaining elevated against the backdrop of a tumultuous macroeconomic environment, it makes sense for investors to consider Caterpillar as a rather risky investment these days. While this is technically true, Caterpillar is more recession-resistant than most investors realize.
Planned infrastructure spending remains elevated, benefiting Caterpillar’s results, while its backlog continues to grow, shielding the company against short-term uncertainties. Furthermore, the company’s focus on services is gradually transitioning its revenue mix to a more predictable one, strengthening its position and making it more resilient to potential market downturns.
Coupled with its commitment to rewarding shareholders and the fact that the stock is trading at a reasonable valuation, I am bullish on Caterpillar.
Strong Infrastructure Spending Drives Solid Results
Caterpillar is enjoying a significant boost in demand thanks to record-high infrastructure spending that stems from the 2021 bipartisan Infrastructure Investment and Jobs Act. The legislation provides $1.2 trillion in funding expected to be spent over a five-year period, with a primary focus on road, bridge, and large-scale projects. In fact, as of October 2022, approximately 60% of the $185 billion infrastructure spending was attributed to these key areas.
Given Caterpillar’s leadership in the production of construction equipment and heavy machinery needed to complete these projects, the company is among the top beneficiaries of the bill. This is evidenced by its recent financial performance.
Caterpillar’s 2022 revenues saw a substantial increase of 17% from the previous year, reaching $59.4 billion. The growth can be attributed to higher sales volumes, boosted by favorable price realization and the impact of changes in dealer inventory.
Importantly, the company’s Q4 revenue growth of 20.3% indicates strong upward momentum for upcoming quarters. This is further evidenced by the fact that the company’s backlog rose by $400 million in Q4, bringing the year-end total to $30.4 billion, a 32% increase from the previous year.
These figures should sufficiently exemplify the company’s continued success in a favorable market environment and potential for sustained growth. Regardless, a potential recession is unlikely to result in worsening financials in the short term, given the planned infrastructure spending and growing backlog.
Growth in Services to Enhance Revenue Mix
Caterpillar has taken another strategic step by focusing on the growth of its Services segment. Growing Services revenues should have a positive impact on the company’s revenue mix and improve cash-flow predictability. This is because, through this initiative, Caterpillar is essentially attempting to convert its equipment sales into a source of recurring revenue. This should enhance Caterpillar’s ability to withstand potential economic downturns, further strengthening its resilience to a potential market downturn.
Last year, Caterpillar experienced a noteworthy surge in its Services revenues, reaching $22 billion, marking a 17% increase from the previous year. This growth was propelled by the company’s persistent drive to promote its services through strategic initiatives and investments, as well as effective price realization.
Caterpillar’s assets also grew, having 1.4 million connected assets, up from 1.2 million in 2021. The launch of the company’s new e-commerce app, Cat Central, further amplified its growth in this area. With the highest level of parts availability to date, along with a robust Services segment, the company projects that its Services revenues will hit $28 billion by 2026.
Strong Profitability Boosts Dividends, Buybacks
With strong revenue growth following favorable pricing and sales volumes, Caterpillar has been able to record a strong boost in its profitability. This growth has allowed the company to achieve impressive economies of scale, reflected in an adjusted operating margin of 15.4% in 2022 compared to 13.7% in 2021. The combination of higher revenues and margins has led to even more impressive earnings growth, with adjusted earnings per share skyrocketing by 28% to $13.84.
Thus, Caterpillar was able to increase its rewards to shareholders rather comfortably. In 2022, the company demonstrated its commitment to creating shareholder value by increasing its dividend for the 29th consecutive year. The noteworthy 8.1% hike led to an annualized dividend rate of $4.80, which currently translates to a yield of 2.2%.
The company also took advantage of its boosted profitability to buy back $4.2 billion worth of stock, significantly more than the $2.7 billion repurchased in 2021. Growing capital returns, coupled with strong revenue and earnings growth visibility, should keep stimulating investor interest in the stock. This is also likely to contribute to the stock potentially outperforming the market in the event of a market downturn.
Is CAT Stock a Buy, According to Analysts?
Turning to Wall Street, Caterpillar has a Hold consensus rating based on five Buys, seven Holds, and three Sells assigned in the past three months. At $243.07, the average Caterpillar stock price target implies 10.2% upside potential.
The Takeaway
Caterpillar is currently benefiting from record infrastructure spending, which has led to growing revenues, expanding margins, and record profits. This trend is expected to last over the next few years, which should shield the company from a potential recession in the near term. In the meantime, Caterpillar’s focus on growing its Services segment should improve its revenue mix, making it a more resilient company to potential market downturns further down the future.
Overall, Caterpillar’s ongoing momentum, strong capital returns, and the fact that shares are trading at about 13.85x this year’s projected earnings (about 22% lower than its five-year average forward earnings multiple) form a bullish blend for the stock, in my view.
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>>> Caterpillar or Deere: Which Is the Better Investment?
Yahoo Finance
by Jonathan Poland
April 26, 2023
https://finance.yahoo.com/news/caterpillar-deere-better-investment-141241587.html
It could be argued that Deere & Co. (NYSE:DE) and Caterpillar Inc. (NYSE:CAT) have a virtual monopoly on the farm and heavy construction equipment market. While there is some overlap in the equipment offered by these companies, each dominates separate industries. However, both have incredible brand power and financial metrics.
About Deere
Deere & Co., commonly known as John Deere, is a leading global manufacturer of agricultural, construction and forestry machinery, diesel engines, drivetrains (axles, transmissions, gearboxes) and precision agriculture technology. The company was founded by John Deere in 1837 and has a strong global presence, with manufacturing facilities in the U.S, Europe, Asia and South America. The companys products are distributed through a vast network of dealers, distributors and retail outlets worldwide. Collectively, these added up to nearly $52 billion in revenue during 2022.
That said, Deere generates the bulk of its revenue (86%) from two primary business segments, Agriculture & Turf Equipment at $34 billion and Construction & Forestry Equipment at $11.3 billion.
The Agriculture & Turf Equipment division is the largest business, accounting for 65% of total revenue. This segment includes the sale of tractors, combines, harvesters and other machinery used to plant, cultivate and harvest crops. The Construction & Forestry Equipment unit accounts for 21% of total revenue. This segment includes the sale of backhoes, excavators, loaders and other machinery used to build and maintain roads, bridges and other infrastructure.
The two other services are worth billions to the company as well. The Financial Services segment accounted for 6% of total revenue, or $3.2 billion in 2022, providing financing and insurance products to Deere's customers. The Other segment accounted for 8% of total revenue, or $4.1 billion, and includes the sale of parts, services and other products and services.
About Caterpillar
Caterpillar Inc. (NYSE:CAT), often referred to simply as "CAT," was created nearly 100 years after Deere in 1925 through the merger of the Holt Manufacturing Co. and the C. L. Best Tractor Co. Today, the company's products are used in a variety of industries, including construction, mining, energy, transportation and agriculture. The revenue breakdown is pretty straightforward, all told adding up to $59.40 billion during 2022.
Machinery is largest source of revenue for Caterpillar, accounting for approximately 70% of total sales. The company sells a wide range of machinery, including construction equipment, mining equipment, diesel engines and natural gas engines. Engine sales account for around 15% of total revenue.
Finally, Caterpillar has a variety of related products and services, accounting for roughly 15% of total revenue.
What's the difference?
While Caterpillar and Deere may sell similar products, the companies are industry leaders by addressing completely separate markets with notable differences that distinguish them.
One of the most significant differences is in agricultural equipment. Deere is a leading manufacturer of agricultural machinery, offering products such as tractors, combines, cotton harvesters, balers, sprayers, planters, tillage equipment and mowers. Caterpillar, on the other hand, has a more limited agricultural product line, primarily offering Challenger tractors and some hay and forage equipment.
Deere also has a dedicated forestry equipment segment, which includes products like forwarders, skidders, feller bunchers and knuckleboom loaders. Caterpillar does offer some forestry equipment, but has a more limited range.
While both Caterpillar and John Deere manufacture construction equipment, their product offerings differ slightly. Caterpillar has a more extensive range of construction machinery, including products such as motor graders, pipelayers and paving equipment, which are not part of Deere's core product lineup. Deere, on the other hand, focuses primarily on equipment like excavators, backhoes, wheel loaders, dozers and compact equipment. One caveat is that in 2017, with its acquisition of Wirtgen, Deere became a more prominent player in this segment behind Caterpillar and Komatsu. Long term, Deere is not likely to surpass Caterpillar, but the acquisition could take market share away from it.
The bottom line is that these companies cater to different end users for the most part and have distinct brand identities. Caterpillar is known for its dominance in the heavy construction, mining and energy sectors, whereas Deere is primarily recognized for its agricultural and landscaping equipment.
Brand dominance
Caterpillar has consistently delivered reliable, top-quality products to its customers, offering the lowest overall cost of ownership throughout its history. This commitment to excellence has placed Caterpillar as one of the world's most valuable brands. The company is well-positioned to benefit from favorable trends in the construction sector with a huge gain from the $1.2 trillion U.S. infrastructure deal, as the nation faces a significant backlog of road construction projects. In the energy industry, the rebound in oil prices since the Covid-19 floor should prompt exploration and production companies to boost capital spending, which is good news for Caterpillar's oil well servicing products.
As for Deere, the same bio applies and so does a wide economic moat with strong durable competitive advantage. The companys dealer network is a huge differentiator, distributing products and proprietary aftermarket parts and services across numerous regions. With over 2,000 dealer locations in North America and around 3,700 worldwide, the company has a significant presence on every continent. More importantly, dealers are typically large organizations dedicated solely to selling Deere products. It would be nearly impossible for anyone, let alone upstarts, to replicate the scope and coverage of this network.
Financial dominance
Caterpillar and Deere are boring companies. Neither will produce 10 times returns. However, they will not destroy shareholder value either. Both have nearly the same market capitalization, gross margins, return on equity and forward earnings multiples. Since 2001, Deere has driven annual revenue up from $13.8 billion to $55.6 billion. Caterpillar has a similar story, growing sales from $20.4 billion to more than $59 billion since the turn of the century.
Deere has a slight advantage in terms of growth potential and current net profit. On the bottom line, it generates $38,000 more per employee, which translated to $8.2 billion in the last 12 months versus Caterpillars $6.7 billion. However, Deere carries significantly more total debt - $55.6 billion versus $37.5 billion.
Further, both companies have paid out dividends for 33 straight years and Caterpillar has recorded 29 years of dividend growth. For me, it is a toss up, which is why investing in both stocks would make the most sense.
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>>> Deere Hoists Guidance After Earnings Beat. Why DE Stock Fell.
Deere earnings topped views on strong farm equipment sales
Investor's Business Daily
APARNA NARAYANAN
05/19/2023
https://www.investors.com/news/deere-earnings-q2-de-stock-caterpillar-outlook/
Deere (DE) guided higher for fiscal 2023 early Friday, after easily topping earnings estimates for its second quarter on healthy equipment demand. DE stock jumped to seize a key level, then reversed lower.
On an earnings call, Deere management indicated that Q2 results benefited from a pull-forward of production from the latter half of 2023.
That led to concerns about a sequential sales decline in the current third quarter, with Q2 marking the year's production peak, analysts said.
Deere may have "to manage inventory levels with lower production, so as to exit the year in good shape given the increasing end market concerns due to lower crop prices," William Blair analyst Lawrence De Maria told IBD in an email.
Tractor maker Deere is seen as a bellwether for the farm economy. It also makes heavy machinery for the construction and forestry markets.
Deere Earnings
Estimates: For the quarter ended April 30, Deere earnings were forecast to grow 26% to $8.58 per share, according to FactSet consensus estimates. Total revenue was seen rising nearly 20% vs. a year earlier to $15.993 billion.
Results: Deere earnings jumped 42% to $9.65 a share, though that's a slowdown from 124% in the first quarter. Revenue swelled 30% to $17.39 billion, above expectations, but still the second straight quarter of slowing sales growth.
Production and precision agriculture sales leapt 53%. Smaller agriculture and turf sales grew 16%. Construction and forestry sales rose 23%.
"Deere continues to benefit from favorable market conditions and an improving operating environment," CEO John May said in the Deere earnings release.
"Though supply-chain constraints continue to present a challenge, we are seeing further improvement," May added.
Outlook: Deere now sees full-year net income of $9.25 billion-$9.50 billion, vs. its prior target of $8.75 billion-$9.25 billion. Analysts had forecast net income of $9.06 billion, FactSet shows.
DE Stock Reverses Lower
Shares of Deere closed down 1.9% to 363.55 on the stock market today, falling back below the 50-day moving average. DE stock had gapped up as much as 6% to 393 in the Friday morning session, clearing the 50-day for the first time since early April.
Deere stock peaked last November and has been trending lower, with the 10-week moving average now below the 40-week line, the MarketSmith chart shows.
Caterpillar (CAT), CNH Industrial (CNHI) and United Rentals (URI) are also heading lower and below key levels. CAT stock was almost unchanged, at 214.79, Friday. CNHI stock lost 0.1% while URI stock rose 1.3%.
'Prudent' Move On Production
Deere management "is prudently limiting production to ensure inventories at the dealer level remain lean," Edward Jones analyst Matt Arnold told IBD Friday.
That "should set up another solid year in 2024," he added.
The move comes with the outlook for Deere's end markets under scrutiny.
The World Bank projects agricultural commodity prices will drop 7% this year and will likely fall again in 2024, the Texas Farm Bureau said on May 18.
Prices for all types of farm equipment soared in recent years for reasons very similar to those that drove automobile prices to record levels. As supply chain issues and demand begin to balance, lower farm commodity prices could place additional pressure on farm equipment sales.
In April, construction giant Caterpillar gave a lackluster outlook for equipment sales as well. United Rentals, which rents out scissor lifts and a range of heavy equipment, turned in a mixed report the same month.
Year to date, Deere stock is down around 15%. It pays a 1.3% dividend yield.
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>>> Builders FirstSource Reports First Quarter 2023 Results
Business Wire
May 3, 2023
https://finance.yahoo.com/news/builders-firstsource-reports-first-quarter-110000182.html
Net sales of $3.9 billion, a decrease of 31.6%
Net income of $333.8 million
Earnings per diluted share of $2.41 per share
Adjusted EBITDA of $631.7 million at a margin of 16.3%
Repurchased 7.5 million common shares totaling $627.6 million, a 5.4% reduction of shares outstanding
DALLAS, May 03, 2023--(BUSINESS WIRE)--Builders FirstSource, Inc. (NYSE: BLDR) today reported its results for the first quarter ended March 31, 2023.
First Quarter 2023 Highlights
All Year-Over-Year Comparisons Unless Otherwise Noted:
Net sales decreased 31.6% to $3.9 billion driven by declining single-family starts and commodity deflation, partially offset by growth from acquisitions and one additional selling day.
Gross profit margin percentage increased 300 basis points to 35.3% primarily driven by increased Multi-Family value-added product category mix.
Net income decreased 47.8% to $333.8 million, or $2.41 per diluted share compared to $3.56 in the prior year period, and adjusted net income decreased 41.5% to $410.3 million, or $2.96 per diluted share compared to $3.90 in the prior year period.
Adjusted EBITDA decreased 36.9% to $631.7 million, mainly driven by a decline in net sales and commodity deflation. Adjusted EBITDA margin declined by 130 basis points to 16.3%.
Cash provided by operating activities was $654.4 million, up $474.6 million compared to the prior year period, while free cash flow was $554.5 million, up $423.0 million compared to the prior year period.
Strong quarter-end balance sheet with liquidity of $1.4 billion and a net debt to LTM Adjusted EBITDA ratio of 0.8x.
Repurchased 7.5 million shares of common stock at an average price of $83.17 for $627.6 million, inclusive of fees and taxes.
"We are proud of our results for the first quarter given the challenging macro backdrop. We were able to exceed our forecasts through the strength of our product portfolio, continued execution of our strategic priorities, and the tireless effort of our team members," commented Dave Rush, CEO of Builders FirstSource. "Our best-in-class end market exposure and distribution footprint, in addition to our unrelenting focus on operational excellence, are guiding us through this complex operating environment. We remain committed to enhancing our customer relationships by being the easiest to do business with. Our continued investments in value-added products, productivity initiatives, and digital solutions all work to reduce cycle times and costs, making homebuilding more affordable and efficient. Given our differentiated platform, experienced management team, and clear focus on delivering value-added solutions to our customers, we are well-positioned to outperform."
Mr. Rush continued, "In addition to our focus on profitable organic growth and improving mix, we remain committed to growing through accretive acquisitions. Our recent tuck-in acquisitions allow us to further expand our value-added offerings and reach a more diverse customer base in what we consider to be very attractive markets."
Peter Jackson, CFO of Builders FirstSource, added, "I am pleased with our results in the first quarter. We generated free cash flow of approximately $554.5 million as we leveraged our best-in-class operating platform and extended our track record of effective cost containment and working capital management. We remain disciplined stewards of capital, making another valuable acquisition, and repurchasing $627.6 million of shares during the quarter while maintaining a strong balance sheet and substantial financial flexibility. As we continue to see the benefits of our transformed business, I am increasingly confident that our long-term normalized gross margin percentage is now at 28% or higher versus our previous expectation of 27% or higher. We also believe that we can sustain a double-digit Adjusted EBITDA margin this year. Looking forward, we believe our robust financial position, industry-leading products and solutions, and reputation for providing excellent customer service will allow us to successfully navigate macro volatility and position ourselves for above market growth in the years to come."
Financial Performance Highlights - First Quarter 2023 Compared to First Quarter 2022
Net Sales
Net sales for the period were $3.9 billion, a 31.6% decrease amid a weaker housing environment and commodity deflation of 11.8%, partially offset by acquisitions contributing 5.5% growth and one additional selling day contributing 1.0%. Core organic sales declined by 26.3%.
Core organic sales in value-added products decreased 16.9%.
Core organic sales for Single-Family decreased 34.1%, Multi-Family increased 11.5%, and Repair and Remodel ("R&R")/Other increased 3.1%.
Gross Profit
Gross profit was $1.4 billion, a decrease of 25.2% compared to the prior year period. The gross profit margin percentage increased 300 basis points to 35.3%, primarily driven by increased Multi-Family value-added product category mix.
Selling, General and Administrative Expenses
SG&A was $904.2 million, a decrease of approximately $64.4 million, or 6.6%, driven primarily by lower variable compensation due to lower volume, partially offset by additional expenses from operations acquired within the last twelve months. As a percentage of net sales, total SG&A increased by 630 basis points to 23.3% primarily attributable to decreased leverage to net sales.
Interest Expense
Interest expense increased $0.8 million to $42.1 million, primarily due to higher outstanding debt balances and higher interest rates.
Income Tax Expense
Income tax expense was $91.3 million, compared to $182.9 million in the prior year period, and the effective tax rate in the first quarter decreased 70 basis points to 21.5% year-over-year.
Net Income
Net income was $333.8 million, or $2.41 earnings per diluted share, compared to net income of $639.6 million, or $3.56 earnings per diluted share, in the same period a year ago.
Adjusted Net Income
Adjusted net income was $410.3 million, or $2.96 adjusted earnings per diluted share, compared to adjusted net income of $700.8 million, or $3.90 adjusted earnings per diluted share, in the same period a year ago. The 41.5% decrease in adjusted net income was primarily driven by a decrease in net sales amid a slowing housing environment and commodity deflation.
Adjusted EBITDA
Adjusted EBITDA decreased 36.9% to $631.7 million, primarily driven by lower net sales including a decline in core organic products amid a slowing housing market and commodity deflation.
Adjusted EBITDA margin declined by 130 basis points from the prior year period to 16.3%.
Capital Structure, Leverage, and Liquidity Information
For the three months ended March 31, 2023, cash provided by operating activities was $654.4 million, and cash used in investing activities was $178.9 million. The Company’s free cash was an inflow of $554.5 million.
Liquidity as of March 31, 2023 was $1.4 billion, consisting of $1.2 billion in net borrowing availability under the revolving credit facility and approximately $0.2 billion of cash on hand.
As of March 31, 2023, LTM Adjusted EBITDA was $4.0 billion and net debt was $3.1 billion, resulting in the net debt to LTM Adjusted EBITDA ratio decreasing to 0.8x, compared to 0.9x in the prior year period.
In the first quarter, the Company repurchased approximately 7.5 million shares of its common stock at an average price of $83.17 per share for $627.6 million, inclusive of fees and taxes.
In addition, the Company repurchased approximately 3.8 million shares in April 2023 for $348.4 million at an average price of $91.90 per share, inclusive of estimated fees and taxes. The Company has completed its expanded share repurchase authorization from November 2022 totaling approximately $1.5 billion.
Since the inception of our buyback program in August 2021, the Company has repurchased approximately 80.7 million shares of its common stock, or approximately 39.1% of its total shares outstanding, at an average price of $65.84 per share for a total cost of $5.3 billion. As of April 28, 2023, shares outstanding were approximately 128 million.
In April, the Board of Directors approved a share repurchase authorization in the amount of $1 billion of the Company's common shares.
Operational Excellence Productivity
In the first quarter, the Company delivered approximately $34 million in productivity savings.
The Company continues to believe it can deliver $90 million to $110 million in productivity savings in 2023.
Q2 2023 Company Guidance
The Company expects challenging conditions in housing amid elevated mortgage rates and general uncertainty in economic conditions that may significantly impact the business. As a result, the Company is not currently providing guidance for the full year 2023 but will continue to reassess each quarter.
For the second quarter of 2023, the Company expects to achieve the financial performance highlighted below. Projected net sales and Adjusted EBITDA include the expected benefit of price, commodity, and margin impacts for Q2 2023.
Net Sales to be in a range of $4.0 billion to $4.2 billion.
Adjusted EBITDA to be in a range of $525 million to $575 million.
Adjusted EBITDA margin to be in a range of 13.1% to 13.7%.
2023 Full Year Assumptions
The Company’s anticipated 2023 performance is based on several assumptions for the full year, including the following:
Total capital expenditures in the range of $325 million to $375 million.
Interest expense in the range of $150 million to $170 million.
An effective tax rate of 23.0% to 25.0%.
Depreciation and amortization expenses in the range of $525 million to $575 million, including approximately $160 million of amortization related to intangible assets acquired in the BMC merger. Total depreciation projected to be $220 million and total amortization projected to be $325 million.
No change in selling days in 2023 versus 2022.
Productivity savings in the range of $90 million to $110 million.
Conference Call
Builders FirstSource will host a conference call and webcast on Wednesday, May 3, 2023, to discuss the Company’s financial results and other business matters. The teleconference will begin at 8:00 a.m. Central Time and will be hosted by Dave Rush, Chief Executive Officer, and Peter Jackson, Chief Financial Officer.
To participate in the teleconference, please dial into the call a few minutes before the start time: 800-225-9448 (U.S. and Canada) and 203-518-9708 (international), Conference ID: BLDRQ123. A replay of the call will be available at 12:00 p.m. Central Time through Wednesday, May 10, 2023. To access the replay, please dial 800-839-2434 (U.S. and Canada) or 402-220-7211 (international). The live webcast and archived replay can also be accessed on the Company's website at www.bldr.com under the Investors section. The online archive of the webcast will be available for approximately 90 days.
About Builders FirstSource
Headquartered in Dallas, Texas, Builders FirstSource is the largest U.S. supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling. We provide customers an integrated homebuilding solution, offering manufacturing, supply, delivery and installation of a full range of structural and related building products. We operate in 42 states with over 550 locations and have a market presence in 47 of the top 50 and 86 of the top 100 MSAs, providing geographic diversity and balanced end market exposure. We service customers from strategically located distribution and manufacturing facilities (some of which are co-located) that produce value-added products such as roof and floor trusses, wall panels, stairs, vinyl windows, custom millwork and pre-hung doors. Builders FirstSource also distributes dimensional lumber and lumber sheet goods, millwork, windows, interior and exterior doors, and other specialty building products. www.bldr.com
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>>> Trane Technologies Reports Strong First-Quarter 2023 Results; Raises 2023 Guidance
Business Wire
Wed, May 3, 2023
https://finance.yahoo.com/news/trane-technologies-reports-strong-first-103000025.html
Highlights (first-quarter 2023 versus first-quarter 2022, unless otherwise noted):
Reported revenues of $3.7 billion, up 9 percent; organic revenues* up 9 percent
GAAP operating margin up 90 bps; adjusted operating margin* up 140 bps
GAAP continuing EPS of $1.35; adjusted continuing EPS* of $1.41, up 26 percent
Reported bookings of $4.3 billion, down 1 percent; organic bookings* down 1 percent
Strong first-quarter book-to-bill ratio of 117 percent
Record backlog of $7.3 billion, up $400 million from year-end 2022
*This news release contains non-GAAP financial measures. Definitions of the non-GAAP financial measures can be found in the footnotes of this news release. See attached tables for additional details and reconciliations.
SWORDS, Ireland, May 03, 2023--(BUSINESS WIRE)--Trane Technologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $1.35 for the first quarter of 2023. Adjusted continuing EPS was $1.41, up 26 percent, excluding $15.6 million of pre-tax non-GAAP adjustments.
First-Quarter 2023 Results
"In the first quarter, we continued our track record of strong financial results and expect our performance to once again rank in the top quartile among industrials," said Dave Regnery, chair and CEO, Trane Technologies. "Our global team delivered robust bookings, organic revenue growth of 9 percent, adjusted EBITDA margin expansion of 100 basis points and adjusted EPS growth of 26 percent.
"Our strong first-quarter performance, diverse and resilient portfolio and unprecedented backlog give us confidence in raising our full-year guidance for organic revenue and adjusted EPS growth. With our focused sustainability strategy, leading innovation and uplifting culture, we are well positioned to continue delivering superior growth and differentiated shareholder returns over the long term."
Highlights from the First Quarter of 2023 (all comparisons against first-quarter 2022 unless otherwise noted)
Delivered strong first-quarter revenue, operating income, EBITDA and EPS growth.
Enterprise reported and organic bookings were both down 1 percent.
Enterprise reported and organic revenues were both up 9 percent.
Strong book-to-bill ratio of 117 percent.
GAAP operating margin was up 90 basis points, adjusted operating margin was up 140 basis points and adjusted EBITDA margin was up 100 basis points.
Strong positive price realization, volume and productivity more than offset inflation related to supply chain challenges and higher costs to serve customers. The Company also continued high levels of business reinvestment.
Enterprise exited the first quarter of 2023 with backlog more than 2.5 times historical norms.
First-Quarter Business Review (all comparisons against first-quarter 2022 unless otherwise noted)
Americas Segment: innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions.
Reported and organic bookings were both down 4 percent.
Reported revenues were up 9 percent; organic revenues were up 8 percent.
Strong book-to-bill ratio of 116 percent.
Americas segment exited the first quarter of 2023 with backlog at approximately 3 times historical norms.
GAAP operating margin was up 40 basis points, adjusted operating margin was up 90 basis points and adjusted EBITDA margin was up 50 basis points.
Strong positive price realization, volume and productivity more than offset inflation related to supply chain challenges and higher costs to serve customers. The Company also continued high levels of business reinvestment.
Europe, Middle East and Africa (EMEA) Segment: innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions.
Reported and organic bookings were both up 10 percent.
Reported revenues were up 16 percent, including approximately 6 percentage points related to acquisitions offset by approximately 6 percentage points of negative foreign exchange impact. Organic revenues were up 15 percent.
Strong book-to-bill ratio of 116 percent.
EMEA segment exited the first quarter of 2023 with backlog approximately 60 percent more than historical norms.
GAAP operating margin was up 530 basis points, adjusted operating margin was up 540 basis points and adjusted EBITDA margin was up 510 basis points.
Strong positive price realization, volume and productivity more than offset inflation related to supply chain challenges and higher costs to serve customers. The Company also continued high levels of business reinvestment.
Asia Pacific Segment: innovates for customers throughout the Asia Pacific region. The Asia Pacific segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions.
Reported bookings were up 11 percent; organic bookings were up 13 percent.
Reported revenues were up 5 percent including approximately 3 percentage points related to acquisitions offset by approximately 6 percentage points of negative foreign exchange impact. Organic revenues were up 8 percent.
Strong book-to-bill ratio of 133 percent.
Asia Pacific segment exited the first quarter of 2023 with backlog approximately 70 percent more than historical norms.
GAAP operating margin was up 310 basis points, adjusted operating margin was up 340 basis points and EBITDA margin was up 390 basis points.
Strong positive price realization, volume and productivity more than offset inflation related to supply chain challenges and higher costs to serve customers. The Company also continued high levels of business reinvestment.
First quarter of 2023 cash flow from continuing operating activities was $17 million and free cash flow use was $52 million. Working capital levels ended the first quarter as expected, reflecting seasonal inventory build.
Year-to-date through May, the Company deployed approximately $720 million, including $170 million in dividends, $300 million for share repurchases, and approximately $250 million for M&A.
The Company expects to continue to pay a competitive and growing dividend and to deploy 100 percent of excess cash to shareholders over time. In the first quarter of 2023, the Company increased its annual dividend by 12 percent to $3.00 per share annualized. Since launching Trane Technologies in March of 2020, the Company has raised the quarterly dividend by 42 percent.
Raising Full-Year 2023 Revenue and EPS Guidance
The Company expects full-year reported revenue growth of approximately 9 percent to 10 percent; organic revenue growth of approximately 7 percent to 8 percent versus full-year 2022.
The Company expects GAAP continuing EPS for full-year 2023 of $8.20 to $8.40. This includes EPS of $0.10 for non-GAAP adjustments. The Company expects adjusted continuing EPS for full-year 2023 of $8.30 to $8.50.
Additional information regarding the Company's 2023 guidance is included in the Company's earnings presentation found at www.tranetechnologies.com in the Investor Relations section.
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>>> Exponent Reports First Quarter 2023 Financial Results
GlobeNewswire
Exponent, Inc.
April 27, 2023
https://finance.yahoo.com/news/exponent-reports-first-quarter-2023-200100014.html
MENLO PARK, Calif., April 27, 2023 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the first quarter of fiscal year 2023 ended March 31, 2023.
“Exponent had a solid start to the year, growing revenues by over 9% on a year-over-year basis. This is a testament to the strength and resiliency of our business model, which is built upon a highly diversified portfolio of critical and integrated services,” commented Dr. Catherine Corrigan, President and Chief Executive Officer. “We continue to position ourselves for future growth by adding to our world-class team of scientists and engineers, increasing headcount year-over-year by 12% through strong talent acquisition and improved retention.”
“Increased demand for our reactive services, which have been foundational to Exponent since our inception, supported our results in the first quarter. This work includes robust litigation-related activity as well as product safety- and recall-related work. Our proactive engagements were driven by work in the consumer products, chemicals, utilities, automotive and life sciences sectors,” continued Dr. Corrigan. “As we look ahead, our expertise will be increasingly sought after as the world places greater emphasis on safety, health, and environmental issues. Exponent remains well positioned to address our clients’ needs across the product lifecycle, developing solutions for today while empowering innovations for tomorrow.”
First Quarter Financial Results
Total revenues and revenues before reimbursements for the first quarter of 2023 increased 9.2% to $140.3 million and $128.7 million, respectively, as compared to $128.5 million and $117.9 million in the first quarter of 2022, respectively.
Net income was $29.1 million, or $0.56 per diluted share, in the first quarter of 2023, as compared to $29.6 million, or $0.56 per diluted share, in the same period of 2022. The tax benefit for the classification of tax adjustments associated with share-based awards realized in the first quarter of 2023 was $3.6 million, or $0.07 per diluted share, as compared to $6.0 million or $0.11 per diluted share, in the first quarter of 2022. Including the tax benefit, Exponent’s consolidated tax rate was 18% in the first quarter of 2023, as compared to 9.7% for the same period in 2022.
EBITDA1 increased to $35.8 million, or 27.8% of revenues before reimbursements, in the first quarter of 2023, as compared to $34.5 million, or 29.2% of revenues before reimbursements in the first quarter of 2022.
In a separate press release today, Exponent announced its quarterly cash dividend of $0.26 to be paid on June 23, 2023, and reiterated its intent to continue to pay quarterly dividends. During the first quarter of 2023, Exponent paid $14.5 million in dividends and closed the period with $125.6 million in cash and cash equivalents.
Business Overview
Exponent’s engineering and other scientific segment represented 83% of the Company’s revenues before reimbursements in the first quarter of 2023. Revenues before reimbursements in this segment increased 11% in the first quarter as compared to the prior year period. Growth during the quarter was driven by continued strong demand for Exponent's services from the transportation, utilities, consumer electronics, and life sciences industries.
Exponent’s environmental and health segment represented 17% of the Company’s revenues before reimbursements in the first quarter. Revenues before reimbursements in this segment decreased 1% in the first quarter as compared to the prior year period. Excluding the impact of foreign exchange of $478,000, revenues before reimbursements for the environmental and health segment increased 2% in the first quarter as compared to the prior year period. Work in this segment was primarily driven by Exponent’s safety-related engagements evaluating the impacts of chemicals on human health and the environment, as well as activity in the life sciences industry.
Business Outlook
“Our accelerated recruiting efforts over the last year have strengthened our unique position to meet the complex and dynamic needs of our clients. As always, we will continue to strategically manage headcount and balance utilization based on market demand, which will support our business model over the long term,” commented Richard Schlenker, Executive Vice President and Chief Financial Officer.
Our full year 2023 guidance is unchanged. For the second quarter of 2023, as compared to the same period one year prior, Exponent anticipates:
Revenues before reimbursements to grow in the high-single to low-double digits; and,
EBITDA1 to be 27.5% to 28.5% of revenues before reimbursements.
For the full year 2023 as compared to the same period one year prior, Exponent anticipates:
Revenues before reimbursements to grow in the high-single to low-double digits; and,
EBITDA1 to be 28.0% to 28.5% of revenues before reimbursements.
“For over five decades, Exponent has stood firmly at the cornerstone of engineering and scientific excellence, connecting the lessons of past failures with tomorrow's solutions to create a safer, healthier, and more sustainable world. Our first quarter results demonstrate Exponent's resilient business model and continued financial strength. Backed by our world class talent, multidisciplinary capabilities, and diverse client relationships, we remain confident in our ability to grow Exponent profitably and drive long-term value for our shareholders,” concluded Dr. Corrigan.
Today's Conference Call Information
Exponent will discuss its financial results in more detail on a conference call today, Thursday, April 27, 2023, starting at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. The audio of the conference call is available by dialing (844) 481-2781 or (412) 317-0672. A live webcast of the call will be available on the Investor Relations section of the Company's website at www.exponent.com/investors. For those unable to listen to the live webcast, a replay of the call will also be available on the Exponent website, or by dialing (877) 344-7529 or (412) 317-0088 and entering passcode 6019209#.
Footnotes
1 EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. A reconciliation of the measures to GAAP is set forth below.
About Exponent
Exponent is an engineering and scientific consulting firm providing solutions to complex problems. Exponent's interdisciplinary organization of scientists, physicians, engineers, and business consultants draws from more than 90 technical disciplines to solve the most pressing and complicated challenges facing stakeholders today. The firm leverages over 50 years of experience in analyzing accidents and failures to advise clients as they innovate their technologically complex products and processes, ensure the safety and health of their users, and address the challenges of sustainability.
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>>> Comfort Systems USA Reports First Quarter 2023 Results
Business Wire
April 26, 2023
https://finance.yahoo.com/news/comfort-systems-usa-reports-first-201000627.html
HOUSTON, April 26, 2023--(BUSINESS WIRE)--Comfort Systems USA, Inc. (NYSE: FIX) (the "Company") today reported results for the quarter ended March 31, 2023.
For the quarter ended March 31, 2023, net income was $57.2 million, or $1.59 per diluted share, as compared to $86.8 million, or $2.40 per diluted share, for the quarter ended March 31, 2022. The first quarter of 2023 included a diluted per share net gain of $0.12, including $0.08 related to prior tax years, due to a tax change and $0.15 from the favorable resolution of certain litigation matters. The first quarter of 2022 included a diluted per share net tax gain of $1.49 related to prior years. Revenue for the first quarter of 2023 was $1,174.6 million compared to $885.2 million in 2022. The Company reported operating cash flow of $126.9 million in the current quarter compared to $63.7 million in 2022.
Backlog as of March 31, 2023 was $4.44 billion as compared to $4.06 billion as of December 31, 2022 and $2.73 billion as of March 31, 2022. On a same-store basis, backlog increased from $2.73 billion as of March 31, 2022 to $4.32 billion as of March 31, 2023.
Brian Lane, Comfort Systems USA’s President and Chief Executive Officer, said, "We started 2023 on a very positive note, with remarkable increases in revenue and earnings per share. Our mechanical operations again performed at high levels and our electrical segment continued its trend of improving profitability. Cash flow was unusually strong, especially for a first quarter, and our backlog increased yet again, reflecting good ongoing demand in traditional and modular construction. Our already strong quarterly earnings were further increased by favorable resolution of certain litigation matters."
Mr. Lane concluded, "Our teams across the country continue to execute. Thanks to their excellence, and in light of the strong ongoing demand that we are experiencing, we remain optimistic about our prospects for continued growth and strong profitability in 2023."
The Company will host a webcast and conference call to discuss its financial results and position on Thursday, April 27, 2023 at 10:30 a.m. Central Time. To register for the call, please visit
https://register.vevent.com/register/BI9b57002f12ed44b78143f9dedccc3592.
Upon registering, participants will receive dial-in information and a unique PIN to join the call. The call and the slide presentation to accompany the remarks can be accessed on the Company’s website at www.comfortsystemsusa.com under the "Investor" tab. A replay of the entire call will be available on the Company’s website on the next business day following the call.
Comfort Systems USA® is a leading provider of commercial, industrial and institutional heating, ventilation, air conditioning and electrical contracting services, with 173 locations in 132 cities across the nation. For more information, visit the Company’s website at www.comfortsystemsusa.com.
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Alamo Group - >>> These three businesses can carry on growing even in the face of a mild recession.
https://www.fool.com/investing/2023/03/28/these-3-growth-stocks-are-screaming-buys-right-now/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Given the uncertainty in the markets and the economy now, it makes sense to start looking at some under-the-radar stocks with growth prospects that don't rely strongly on the economy.
That's the case for buying stocks like infrastructure and vegetation management equipment company Alamo Group (ALG), aviation services company AAR (AIR -1.21%), and electrical products company nVent Electric (NVT 0.19%). All three have solid growth prospects that should tide them through a difficult economy. Here's why.
1. Alamo Group: Don't forget it
It's no secret that the industrial sector has battled surging prices in raw materials and logistics over the last few years, and Alamo Group is not immune to these factors. Moreover, supply chain disruptions and labor shortages have hurt Alamo's ability to deliver products.
Should you invest $1,000 in Alamo Group right now?
For reference, Alamo operates in two divisions. Its vegetation management business supplies mowers and cutters to governmental, agricultural, and commercial turf markets. The industrial equipment division provides infrastructure-maintenance equipment (for snow- and ice-clearing, road sweepers, and the like). As such, Alamo is a play on the need to maintain infrastructure and public spaces.
The key to the investment case for the stock rests on the idea that its end-market demand is likely to hold up relatively well in an economic slowdown. Meanwhile, its cost and supply chain pressures will ease if a slowing economy alleviates stress on the supply chain.
That argument is strengthened by Alamo Group's $1 billion backlog as of the end of the year -- a figure equivalent to 63% of the $1.6 billion in revenue that Wall Street analysts expect for 2023.
Meanwhile, a combination of mid-single-digit sales growth and margin expansion leads Wall Street to expect double-digit earnings growth for the next few years. Trading at 17.6 times earnings estimates for 2023, Alamo Group looks to be an excellent value.
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>>> Generac Holdings Inc. (NYSE:GNRC) - Number of Hedge Fund Holders: 31
https://finance.yahoo.com/news/14-stocks-pop-according-jim-150048076.html
6-Month Performance as of March 30 (Relative to SPY): -47.00%
One of Jim Cramer's top picks from October 2022 was Generac Holdings Inc. (NYSE:GNRC). The company is an American manufacturer of backup power generation facilities Cramer said that the he liked how low the stock was, enough to add it to his charitable trust. Shares of Generac Holdings Inc. (NYSE:GNRC) have lost 47% over the past 6 months, relative to the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), as of March 30.
At the end of Q4 2022, 31 hedge funds were bullish on Generac Holdings Inc. (NYSE:GNRC) and held stakes worth $588.2 million in the company. Of those, Ariel Investments was the top investor in the company and held a stake worth $132 million.
Meridian Funds made the following comment about Generac Holdings Inc. (NYSE:GNRC) in its Q4 2022 investor letter:
“Generac Holdings Inc. (NYSE:GNRC), is a manufacturer of power generation equipment with a leading position in home standby generators. Generac also offers consumers a home energy management system that harnesses and stores power from the sun to be used for backup during utility power outages. Severe weather events that strained already-overburdened power grids in California, Texas, and other key markets have created a significant opportunity for home power generation equipment manufacturers. Moreover, with the future potential to aggregate these distributed energy resources through the company’s grid services business, homeowners have the potential to monetize these assets. The stock declined during the quarter as the company reduced its full-year revenue guidance due largely to labor shortages in Generac’s dealer network which resulted in a slowdown in installations and implementations. As a consequence, dealers have reduced their on-site inventory. During the period, we exited our position in the company.”
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Quanta Services (PWR) - >>> Quanta is a leading national provider of specialty contracting services, and one of the largest contractors serving the transmission and distribution sector of the North American electric utility industry. Quanta has operations in the United States, Canada, Australia and other selected international markets.
https://finance.yahoo.com/news/growth-investor-1-stock-could-134501559.html
PWR is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of A and VGM Score of A. Earnings are expected to grow 10.3% year-over-year for the current fiscal year, with sales growth of 9%.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $0.24 to $6.99 per share. PWR also boasts an average earnings surprise of 4.7%.
Looking at cash flow, Quanta Services is expected to report cash flow growth of 41.3% this year; PWR has generated cash flow growth of 25.1% over the past three to five years.
Investors should take the time to consider PWR for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.
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Quanta Services, Inc. (NYSE:PWR) - >>> Navellier & Associates’ Stake Value: $10 million
https://finance.yahoo.com/news/louis-navellier-top-10-stock-160351252.html
Percentage of Navellier & Associates’ 13F Portfolio: 2.23%
Number of Hedge Fund Holders: 47
Quanta Services, Inc. (NYSE:PWR) is an American contracting services corporation that provides infrastructure services for electric power, pipeline, industrial and communications industries. Louis Navellier's hedge fund owned a $10 million stake in Quanta Services, Inc. (NYSE:PWR) as part of its portfolio for the third quarter of this year. The stake came through the fund owning 78,928 shares of the company, and it represented 2.23% of its investment portfolio.
On November 8, KeyBanc analyst Sean Eastman raised the price target on Quanta Services, Inc. (NYSE:PWR) to $174 from $156 alongside an Overweight rating on the company's shares based on what he calls greater confidence in the multiyear, mid-teens EPS growth algorithm.
Insider Monkey’s Q3 2022 920 hedge fund survey outlined that 47 funds had invested in the firm, a jump from just 34 in the previous quarter. William Harnisch's Peconic Partners LLC is the company's largest shareholder for the quarter, with approximately 5.53 million shares worth $1.3 billion.
Similar to NVIDIA Corporation (NASDAQ:NVDA), Costco Wholesale Corporation (NASDAQ:COST), CF Industries Holdings, Inc. (NYSE:CF), and ConocoPhillips (NYSE:COP), Quanta Services, Inc. (NYSE:PWR) is one of Louis Navellier's top stock picks.
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>>> Quanta Services Selected for Colorado's Power Pathway Transmission Project
PR Newswire
December 22, 2022
https://finance.yahoo.com/news/quanta-services-selected-colorados-power-115500892.html
Project Expected to Extend Through 2027, Supporting Multi-Year Visibility and Growth Opportunities
HOUSTON, Dec. 22, 2022 /PRNewswire/ -- Quanta Services, Inc. (NYSE: PWR) announced today that it has been selected by Xcel Energy as its prime constructor to manage all construction activities for the Colorado's Power Pathway high-voltage electric transmission project in Colorado. Quanta's scope of work on the project consists of the construction of approximately 610 miles of 345 kV transmission infrastructure, consisting of up to six segments and spanning more than a dozen counties, primarily in eastern Colorado, and includes the installation of four new substations and the expansion of four existing substations. The project is designed to increase the reliability of the state's power grid and enable future renewable energy development in Colorado, including approximately 5,500 megawatts of new wind, solar and other resources that Xcel Energy plans to add through 2030.
Duke Austin, President and Chief Executive Officer of Quanta Services commented, "Quanta has enjoyed a long-standing relationship with Xcel Energy and this project builds on our partnership. The project represents an innovative model and collaborative approach with Xcel Energy that we believe is a ground-breaking path for Quanta to continue to provide collaborative infrastructure solutions to our customers. As a result, we believe our design and constructability plan enhances safety during construction and positions us to provide schedule, quality and cost certainty for this important project."
"We are excited to move forward with Quanta Services on the Colorado's Power Pathway project, a monumental investment to build reliability in our transmission system and enable access to significant renewable energy resources in Colorado," said Robert Kenney, president of Xcel Energy-Colorado. "We look forward to collaborating with Quanta as we advance this critical project."
Certain segments of the project are expected to be completed in 2025, with other segments expected to be completed in 2026 and 2027. Preconstruction activities are expected to begin immediately, with construction on the first segment scheduled to begin in mid-2023. Quanta expects to include the estimated revenue for the project in the remaining performance obligations and backlog associated with its Renewable Energy Infrastructure Solutions segment for the fourth quarter of 2022.
About Quanta Services
Quanta is a leading specialized contracting services company, delivering comprehensive infrastructure solutions for the utility, renewable energy, communications, pipeline and energy industries. Quanta's comprehensive services include designing, installing, repairing and maintaining energy and communications infrastructure. With operations throughout the United States, Canada, Australia and select other international markets, Quanta has the manpower, resources and expertise to safely complete projects that are local, regional, national or international in scope. For more information, visit www.quantaservices.com.
About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.
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AAON, BLDR -
https://finance.yahoo.com/news/7-american-manufacturing-stocks-buy-185641230.html
>>> Builders FirstSource (BLDR) - This likely isn’t a name consumers know offhand, since it’s fundamentally a supplier to the homebuilding market, supplying goods such as roof and floor trusses, vinyl windows, drywall and lumber.
But it is a Fortune 500 company and does about $7 billion worth of business across more than 400 locations around the US.
Again, you’re not going to see a lot of advertising on television for BLDR, but it is a major homebuilding supplier in the U.S. That means when housing is growing, so is BLDR.
The stock has been on a ride in the past year, growing well through the second half of 2019, only to erase much of those gains in March this year. But BLDR is up 80% in the past 3 months and still up 22% in the past 12 months.
AAON Inc (AAON)
This firm specializes in commercial, industrial and residential HVAC. This is another sector that goes hand in hand with an expanding economy. New facilities need new equipment.
Also, with low-cost loans available, upgrading old, inefficient equipment for more efficient HVAC can actually be cost-reducing in the long term. That also goes along with businesses that are expanding or downsizing their plants and offices.
Remember, the locksdowns have sent many people home to work, which is also an ideal time to do the necessary upgrades to HVAC units. Work-from-home, to a much greater extent than it was pre-pandemic, is here to stay, and that’s been a source of great buys for Growth Investor.
AAON stock has stayed positive throughout the COVID-19 troubles and currently is up 10% year to date. It also offers a small 0.7% dividend, which is still better than a lot of CDs out there.
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>>> Builders FirstSource, Inc. (BLDR), together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, steel roof trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name.
The company also provides specialty building products and services, including vinyl, composite and wood siding, exterior trims, metal studs, cement, roofing, insulation, wallboards, ceilings, cabinets, and hardware products; products turn-key framing, shell construction, design assistance, and professional installation services.
In addition, it offers software products, such as drafting, estimating, quoting, and virtual home design services, which provide software solutions to retailers, distributors, manufacturers, and homebuilders. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was incorporated in 1998 and is based in Dallas, Texas.
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>>> Why Shares in AAON Surged in February
Motley Fool
By Lee Samaha
Mar 2, 2023
https://www.fool.com/investing/2023/03/02/why-shares-in-aaon-surged-in-february/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
The commercial and industrial HVAC market remains in growth mode, despite a slowdown in the residential market.
Demand for premium HVAC is growing given increased regulatory requirements and the need for healthier buildings.
What happened
Shares in premium heating, ventilation, and air conditioning (HVAC) company AAON (AAON) rose 19.2% in February, according to data provided by S&P Global Market Intelligence. The move comes mainly from an excellent set of fourth-quarter 2022 earnings that dispelled fears investors might have had over its trading conditions.
Specifically, AAON operates in the commercial, industrial, data center, and cleanroom end markets. However, the company is relatively less exposed to the residential HVAC market compared to other providers. Given the pressure homeowners face in the rising rate environment, that's a good thing right now. For example, its competitor Carrier's residential and light commercial HVAC orders declined 30% in its fourth quarter, and Trane's residential HVAC bookings in the Americas were down by a mid 20% percentage in the fourth quarter.
Still, Carrier's commercial HVAC orders were up by over 10%, and Trane's Americas bookings were up by a low-teens percentage.
The tale of two HVAC markets continued with AAON reporting strong orders and backlog -- organic bookings were up 45%, and its backlog grew a whopping 110% on a year-over-year basis in the quarter. In fact, as management noted on the earnings call, "Our biggest challenge right now continues to be ramping up production fast enough."
So what
AAON's management argues that nonresidential construction data remains strong, and it's not seeing any sign of a slowdown in its end markets. Moreover, the price increases pushed through in 2022 should flow into its profit margins as it delivers on its backlog in 2023.
That said, a lot of commercial construction activity tends to lag behind residential construction activity. For example, commercial facilities tend to be built around expanding housing communities. Moreover, they may well be a pull forward in orders from customers due to the difficulty in fulfilling orders in the current environment due to ongoing supply chain issues.
Now what
As ever, investors need to watch the overall economy. A protracted period of weakness in housing, caused by rising rates, will inevitably have some impact on AAON's commercial markets.
On the other hand, demand for commercial HVAC has strengthened in recent years because of regulatory requirements around emissions and increased awareness of the need for healthy, clean buildings. Don't be surprised if AAON has another strong year in 2023.
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>>> AAON, Inc.(AAON), together with its subsidiaries, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment in the United States and Canada. The company operates through three segments: AAON Oklahoma, AAON Coil Products, and BASX. It offers rooftop units, data center cooling solutions, cleanroom systems, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls. The company markets and sells its products to retail, manufacturing, educational, lodging, supermarket, data centers, medical and pharmaceutical, and other commercial industries. It sells its products through a network of independent manufacturer representative organizations and internal sales force, as well as online. The company was incorporated in 1987 and is based in Tulsa, Oklahoma.
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>>> ALAMO GROUP ANNOUNCES RECORD 2022 FOURTH QUARTER AND YEAR END RESULTS
Yahoo Finance
PR Newswire
February 23, 2023
https://finance.yahoo.com/news/alamo-group-announces-record-2022-211500924.html
SEGUIN, Texas, Feb. 23, 2023 /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG) today reported results for the fourth quarter and year ended December 31, 2022.
Highlights
Fourth quarter net sales of $386.6 million, up 15%
Fourth quarter operating income of $42.7 million, up 53%
Fourth quarter net income of $29.2 million, or $2.44 per diluted share, up 52%
Full year net sales of $1.5 billion, up 13% year over year
Full year operating income of $148.6 million, up 27%
Full year net income of $101.9 million, up 27%
Full year diluted EPS was $8.54, up 27%
Record EBITDA of $195.9 million, up 21% year over year(1)
Backlog of $1.0 billion, up 26% compared to year-end 2021
Fourth Quarter Results
Fourth quarter 2022 net sales were $386.6 million compared to $337.2 million in the fourth quarter of 2021, an increase of 15%. Gross margin improved in the quarter versus the fourth quarter of 2021 by $14.1 million or 17%. Fourth quarter net income improved 52% to $29.2 million, or $2.44 per diluted share, compared to net income of $19.2 million, or $1.62 per diluted share in the fourth quarter of 2021. The Company's backlog at the end of 2022 was in excess of $1.0 billion, an increase of $205.7 million, or 26%, from the backlog at the end of 2021.
The positive results reported for the quarter were achieved as a result of improved product deliveries, as well as a combination of effective price management, an improvement in manufacturing efficiencies, and disciplined control of operating expenses. These results were achieved despite continued headwinds directly related to supply chain disruptions and skilled labor shortages, as well as the negative impact of currency exchange rates on our consolidated financial results.
Full Year Results
Full year 2022 net sales increased to $1.5 billion, up 13% compared to $1.3 billion for the full year 2021. Net income for the year was $101.9 million, or $8.54 per diluted share, compared to net income of $80.2 million, or $6.75 per diluted share in 2021, a year-over-year improvement of 27%.
Throughout 2022, the Company experienced strong demand for its products with the Company setting records for net sales and earnings in each quarter of the year. The Company's record performance was achieved despite the significant material cost increases, supply chain disruptions and skilled labor shortages that the Company experienced during the year. Our results were also negatively impacted by currency translation as the U.S. dollar strengthened against the currencies of international countries where we operate.
Division Results
Vegetation Management
The Vegetation Management Division's fourth quarter 2022 net sales were $232.5 million, up 14% compared to $204.3 million for the same period in 2021. Full year 2022 net sales in this Division were $937.1 million, compared to $812.7 million for the full year 2021, up 15%. The increase in net sales for both the fourth quarter and the full year was driven by strong customer demand for forestry, tree care, agricultural, and governmental mowing products in both North America and Europe.
The Division's fourth quarter operating income for 2022 was $30.2 million, up 67% compared to $18.1 million for the fourth quarter of 2021. Full year 2022 operating income was $108.5 million versus $78.9 million for the full year 2021, an increase of 37%. The Division benefited from strong sales, improved pricing, and effective control of costs and expenses despite ongoing supply chain disruptions, higher material and inbound freight costs, and labor shortages. Outstanding performance in the Division's North American operations was complemented by strong results during the year in the United Kingdom, France, Brazil, and Australia.
Industrial Equipment
The Industrial Equipment Division's fourth quarter 2022 net sales were $154.1 million, up 16% compared to $132.8 million during the same period in 2021. The increase was primarily attributable to higher sales of snow removal products and, to a lesser extent, other product lines within the Division. Insufficient availability of truck chassis and other industrial components continued to constrain the Division's sales growth during the fourth quarter of 2022.
Full year 2022 net sales were $576.6 million compared to $521.5 million for the full year 2021, an 11% increase. Excavators and vacuum trucks were the primary drivers of the sales increase, but all product lines contributed.
The Division's fourth quarter operating income was $12.5 million, up 28% compared to $9.7 million for the fourth quarter of 2021. Full year 2022 operating income was $40.1 million compared to $38.0 million for the full year 2021, an increase of 5%. The Division was negatively impacted throughout 2022 by supply chain disruptions, constrained chassis deliveries, labor shortages, and higher material and inbound freight costs.
Comments on Results
Jeff Leonard, Alamo Group's President and Chief Executive Officer, commented, "It was gratifying to achieve very solid results in the fourth quarter despite the persistent supply chain, cost inflation, and labor shortage headwinds we experienced throughout the year. Our teams once again worked through these challenges and produced record setting results to cap off the best year for sales and earnings in Company history. I'm very proud of our employees and take this opportunity to offer thanks and special recognition for their dedication, persistence, and ingenuity that largely overcame these obstacles and produced nice results in the fourth quarter and for 2022.
"As they had throughout the year, our markets continued to display strength during the fourth quarter. Governmental agencies at the state, county and municipal levels remained in good fiscal health and continued to invest in upgrading their infrastructure maintenance fleets. Activity in our forestry and tree care segment was also strong and demand from the agricultural sector was good, especially for a fourth quarter. Order bookings in the quarter, while down 2% from prior year, were at a very good level. Bookings in our Industrial Equipment Division were sharply higher, while those in our Vegetation Management Division decreased. We ended 2022 with a backlog in excess of $1.0 billion for the first time which provides us good visibility for the first half of 2023.
"Our supply chain performance also improved modestly relative to the third quarter, although more improvement is needed to support accelerated sales growth over the next several quarters. Truck chassis deliveries remained constrained by allocations from the major OEM's, and although the allocation quantities are slowly increasing, they are not yet keeping pace with our requirements. This has driven the backlog in our Industrial Equipment Division higher, and it may be several more quarters before a balance is achieved. Other supply chain bottlenecks in components such as engines, hydraulics and wiring harnesses are easing and our Vegetation Management Division clearly benefited from this in the fourth quarter. Our labor situation also improved during the quarter, although we continue to have many open positions, particularly in manufacturing.
"Throughout 2022, our teams effectively managed pricing to stay ahead of material cost inflation. During the fourth quarter, we benefited demonstrably from this good price stewardship as our operating margin reached 11%, a record for a fourth quarter and, more importantly, the highest level of the year. Our teams also maintained good expense discipline and total fourth quarter operating expenses declined compared to the prior year.
"The combination of double-digit sales growth, price leverage, improving efficiencies, and spending restraint produced the highest quarterly earnings per share in our history. For the full year 2022, the Company also set new records for both sales and earnings. As we look ahead to the balance of 2023, we continue to have confidence in our team's ability to drive further performance improvements. The continued strength of our markets, combined with the size and quality of our backlog supports that confidence, and we believe the Company is well positioned for future success."
Earnings Conference Call
The Company will host a conference call to discuss fourth quarter and year end 2022 financial results on Friday, February 24, 2023 at 10:00 a.m. ET. Hosting the call will be members of senior management.
Individuals wishing to participate in the conference call should dial 877-407-0789 (domestic) or 201-689-8562 (international). For interested individuals unable to join the call, a replay will be available until Friday, March 03, 2023 by dialing 844-512-2921 (domestic) or 412-317-6671 (internationally), passcode 13734940.
The live broadcast of Alamo Group Inc.'s quarterly conference call will be available online at the Company's website, www.alamo-group.com (under "Investor Relations/Events & and Presentations") on Friday, February 24, 2023, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call ends and will be archived on the Company's website for 60 days.
About Alamo Group
Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for vegetation management, infrastructure maintenance and other applications. Our products include truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements, forestry equipment and related after-market parts and services. The Company, founded in 1969, has approximately 4,200 employees and operates 28 plants in North America, Europe, Australia and Brazil as of December 31, 2022. The corporate offices of Alamo Group Inc. are located in Seguin, Texas.
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Cintas - >>> Cintas has grown sales and adjusted earnings per share (EPS) in 51 of the last 53 years by providing its 1 million business customers with uniforms, restroom supplies, first aid and safety equipment, safety training, and fire extinguishers.
https://www.fool.com/investing/2023/03/21/history-suggests-these-4-sp-500-stocks-could-soar/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
As wildly unexciting as this sounds, Cintas stock rose 1,000% over the last decade.
Powering this incredible performance is the company's ROIC of 21%, 16th best of the 69 industrial stocks in the S&P 500. Operating in a highly fragmented niche, Cintas uses a strategy of making tuck-in acquisitions to complement its organic growth in the mid to high single digits, delivering results that might be hard to believe.
Across the last decade, the company's sales, net income, and dividends grew annually by 7%, 20%, and 26%, respectively. Cintas has a payout ratio of only 35%, showing that it should easily be able to continue increasing its dividend (currently yielding 1%), just as it has since 1983.
Although the company trades at a premium P/E of 35, it only counts 6% of the total businesses in North America as customers, leaving a massive runway for growth.
Opportunistic investors might want to take advantage of any short-term dips in the share price to build a position in this operations-crucial business over time.
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Louisiana-Pacific - >>> Warren Buffett's current investment in Louisiana-Pacific (LPX) is valued at $339 million. While that would be a whopping investment for most, this position only constitutes roughly 0.1% of Buffett's overall equity portfolio, its 38th biggest holding.
https://finance.yahoo.com/m/b6aa7a04-2450-3273-aae3-a4758c72e87e/want-passive-income-in-a-bear.html
Notably, this rather small position for Buffett still amounts to an ownership stake of roughly 7.3% in Louisiana-Pacific, based on its price at the time of acquisition. This purchase is unique, in that Buffett appears to be taking a stake in another economically sensitive company at a time when most investors are looking to play defense. This provider of building materials such as engineered wood products, siding, and other construction-related items utilized in commercial and residential projects, has somewhat stagnated over the past year, following a post-pandemic boom.
What does Buffett know that we don't? I guess we'll find out. Many know that Buffett is a perma-bull when it comes to the economic outlook for America. This bet, while small in the grand scheme of Berkshire's overall portfolio, appears to reaffirm this view. If homebuilding activity picks up (whether due to a drop in interest rates, or the need to fulfill surging demand from Millennial home buyers), Buffett could be due for a big win.
Louisiana-Pacific has been moving toward a more comprehensive business strategy, increasing its involvement in the repair and renovation market and creating value-enhancing products. Buffett's previous investments in mobile home producers and other companies in this sector suggest he believes the future may be bright for this company.
In the last quarter, Louisiana-Pacific increased its quarterly distribution by more than 9% to $0.24 per share, bringing the stock's overall dividend yield to 1.7%. For those bullish on the company's business model looking forward, this is a company that could be poised for continued dividend growth over time, making Louisiana-Pacific an intriguing passive income stock from this perspective right now.
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>>> Tetra Tech Wins $105 Million EPA Watershed Assessment and Protection BPA
Business Wire
March 7, 2023
https://finance.yahoo.com/news/tetra-tech-wins-105-million-140000089.html
PASADENA, Calif., March 07, 2023--(BUSINESS WIRE)--Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services, announced today that the U.S. Environmental Protection Agency (EPA) Office of Water awarded the Company a five-year, $105 million Blanket Purchase Agreement (BPA) to restore and protect watersheds and water bodies throughout the United States.
Tetra Tech will identify, analyze, and evaluate surface water and coastal ecosystems to protect human health and aquatic environments from the impacts of pollution and the effects of climate change, including ocean acidification. Tetra Tech’s scientists will design monitoring programs, develop predictive models, and prepare technical guidance documents to assess chemical, physical, and biological integrity of water bodies. Our technical specialists will analyze model results and manage spatial datasets to develop effective management strategies for inland and coastal regions impacted by land-use related activities, stormwater and runoff, habitat loss, and invasive species.
"Tetra Tech has supported EPA’s Office of Water in developing science-based solutions for more than 40 years," said Dan Batrack, Tetra Tech Chairman and CEO. "This is Tetra Tech’s tenth consecutive EPA watershed management contract, supporting EPA in analytics, guidance, and training associated with the development and execution of watershed protection programs. We are pleased to continue using our Leading with Science® approach and Tetra Tech Delta technologies to assess and protect water bodies throughout the United States."
About Tetra Tech
Tetra Tech is a leading provider of high-end consulting and engineering services for projects worldwide. With 27,000 employees working together, Tetra Tech provides clear solutions to complex problems in water, environment, sustainable infrastructure, renewable energy, and international development. We are Leading with Science® to provide sustainable and resilient solutions for our clients. For more information about Tetra Tech, please visit tetratech.com or follow us on LinkedIn, Twitter, and Facebook.
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Trex - >>> Operating in more of a niche within the home improvement space, Trex (TREX) produces composite decking material that has become a very popular alternative to wood. In fact, Trex has reached "verb status" for many who refer to any non-wood deck as a "Trex deck".
https://www.fool.com/investing/2023/03/15/3-growth-stocks-to-buy-now-if-interest-rates-remai/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Trex also appeals to consumers interested in environmental issues. Trex decking is comprised of a blend of scrap wood fibers and recycled polyethylene film. Trex can use these scrap products that would otherwise be filling landfills to create beautiful decking.
Despite the potential tailwind of more homeowners opting for improvement projects over moving, Trex products are more expensive than wood, so there's a potential that a slowing economy presents a challenge for the company. However, management spent the past year rightsizing its inventory and expenses and began to see results in Q4 2022 as its gross margin improved to 34.1%, up from 38.9% in the year-ago quarter.
2023 could be a challenging year for the company, but there's reason to buy now for the long term. Trex is still the leader in non-wood decking, and much like Home Depot and Target, it also reduced its shares outstanding by more than 20% over the past 10 years. Trex has been a long-term market-beating investment, and is positioned to remain one over time.
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>>> GE stock has skyrocketed 80% in 5 months — JPMorgan says that's a problem
Yahoo Finance
Brian Sozzi
March 7, 2023
https://finance.yahoo.com/news/ge-stock-jpmorgan-says-thats-a-problem-120604299.html
JPM thinks GE's stock (GE) could power down in the months ahead after a sizzling five-month run.
"While we see an excellent business in aerospace and potential in Vernova, GE is up ~80% over the past five months vs. 13% for the S&P 500," JPMorgan analyst Seth Siefman wrote in a client note on Tuesday ahead of a hotly anticipated March 9 GE investor day. "Our sum of the parts-based December 2023 price target therefore leaves limited upside."
Siefman has a Neutral rating on the stock of the industrial icon, which is in the process of splitting up into several parts. Long-time market-moving GE analyst Steven Tusa is no longer running point on the name.
The company is being divided into three separate companies — aviation, healthcare, and energy — in a plan unveiled late in 2021. GE Healthcare (GEHC) was spun off into a public company in January of this year. The energy business — dubbed Vernova — is slated to debut on the public market by early 2024.
"This is my one-year anniversary with the company, and people have been super energized about our opportunity to be separate," GE Healthcare CEO Peter Arduini told Yahoo Finance Live on January 4. "It's brought more employees of capabilities into the company."
Siefman thinks investors may be overlooking a few important risks on GE's stock as they plow into a re-vamped company which on paper should be more focused and leaner, potentially leading to better profits.
"On the aerospace side, GE and others are clearly benefiting from a Goldilocks environment for maintenance where global travel demand is surging and Boeing and Airbus cannot build enough new planes," Siefman explained. "Air travel demand has been quite resilient but if it comes under pressure, the aftermarket growth outlook would suffer and there is also a threat from the gradual ramp in new aircraft deliveries eating into maintenance activity."
In terms of the energy business, Siefman added, "the scale of the EBITDA and FCF growth required at Renewables is a natural focus for investors, particularly with near-term challenges likely to persist and Vernova’s success will depend to some degree on yet-to-be-determined mechanisms of the IRA. Lingering Insurance exposure is another risk — and an opaque one — in part because GE may be unable to unload Insurance, leaving the potential for incremental contributions."
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>>> Booz Allen Invests in Hidden Level, Inc.
BusinessWire
February 21, 2023
https://finance.yahoo.com/news/booz-allen-invests-hidden-level-130000939.html
MCLEAN, Va., February 21, 2023--(BUSINESS WIRE)--Booz Allen Hamilton (NYSE: BAH) today announced that its corporate venture capital arm, Booz Allen Ventures, LLC, has made a strategic investment in Hidden Level, Inc., a developer of passive sensing technology of unmanned aerial systems (UAS), such as drones, for high-interference environments. Hidden Level utilizes next generation radio frequency (RF) sensing technology to provide multi-domain situational awareness and support to counter-UAS missions. This is the first investment by Booz Allen Ventures in calendar year 2023, and is aligned to the firm’s Digital Battlespace Platform, focused on the accelerated adoption of emerging technologies and operational concepts for the firm’s global defense clients.
"The ongoing conflict in Ukraine empirically demonstrates the value of UAS technologies and disproportionate intelligence in modern warfare," said Steve Escaravage, executive vice president at Booz Allen and leader of the firm’s Digital Battlespace Platform. "Investments in companies like Hidden Level accelerate our ability to bring novel insights to the counter-UAS mission, expanding the potential for decision advantage by our nation’s warfighters."
The current and future warfighting domains call for innovative c-UAS capabilities like those developed by Hidden Level, whose sensors can detect and track low-altitude airborne threats using adaptive RF signal detection techniques, thus increasing airspace situational awareness and informing counter measure opportunities.
"We’re very excited about the path forward with Booz Allen to support DOD missions and provide critical insights for our soldiers on the ground," said Jeff Cole, chief executive officer and co-founder of Hidden Level. "The investment from Booz Allen Ventures is a natural extension of our deep technology work, paired with Booz Allen’s mission expertise. Booz Allen understands the technology needed to support warfighters, and Hidden Level will play an important role in both tactically and strategically supporting DOD through dual-use technology to achieve decision superiority."
The $100 million corporate venture capital arm furthers Booz Allen’s commitment to invest in strategic dual-use, commercial technologies that will provide federal clients disruptive technology for critical missions. Aligned with client demand and the firm’s VoLT (Velocity, Leadership, Technology) growth strategy, Booz Allen Ventures will invest in early-stage companies and technologies within four core areas of demand: defense, artificial intelligence/machine learning, cybersecurity, and emerging/deep technology. Previous Booz Allen Ventures investments include Latent AI, Synthetaic, and Reveal Technology.
"In an ever-changing geopolitical climate, it is imperative we continue to advance technology for our clients, and to empower warfighters with the tools and information they need to perform their jobs safely," said Travis Bales, a leader within Booz Allen Ventures and former Army officer. "We are excited about the work Booz Allen and Hidden Level are doing to accelerate innovation and enhance mission critical technology to meet the needs of our defense clients."
About Booz Allen Hamilton
For more than 100 years, military, government, and business leaders have turned to Booz Allen Hamilton to solve their most complex problems. As a consulting firm with experts in analytics, digital solutions, engineering, and cyber, we help organizations transform. We are a key partner on some of the most innovative programs for governments worldwide and trusted by their most sensitive agencies. We work shoulder-to-shoulder with clients, using a mission-first approach to choose the right strategy and technology to help them realize their vision.
With global headquarters in McLean, Virginia, our firm employs approximately 31,100 people globally as of December 31, 2022, and had revenue of $8.4 billion for the 12 months ended March 31, 2022. To learn more, visit www.boozallen.com. (NYSE: BAH)
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>>> Toro Co. (TTC) - was founded in 1914 as an engine manufacturer, providing power to early tractors. The company quickly shifted focus to mowers and in the century since, it has grown to $4.5 billion in annual revenue. Toro operates in North America as well as internationally, with three quarters of total revenue coming from the U.S.
https://www.suredividend.com/agriculture-stocks/
In January 2022, Toro acquired the Intimidator Group. The acquisitions added the complementary Spartan line of professional zero-turn mowers to Toro’s roster. The addition of the Intimidator Group to Toro’s business positions them well to gain customers and geographic exposure. The purchase was completed with cash on hand and existing credit facilities.
On December 13th, 2022, Toro increased its dividend for the 14th consecutive year, by 13% to $0.34 per share quarterly. Toro reported fourth quarter and FY 2022 results on December 21st, 2022. Q4 net sales improved 22% year-over-year to $1.17 billion. Adjusted earnings per diluted share increased 98% to $1.11 in Q4 2022. Adjusted operating margin for the quarter was 12.8%, unchanged from the same prior-year period.
Leadership initiated their fiscal 2023 outlook which guides for net sales growth of 7% to 10% and adjusted EPS in the range of $4.70 to $4.90 per diluted share, a solid 14.3% year-over-year increase at the midpoint.
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United Rentals (URI) - >>> United Rentals (NYSE:URI) may at first seem like just a value stock, with a low valuation that signals the market’s low confidence in its future results. Given the current economic slowdown, you may assume that this equipment rental company is facing more challenging times ahead.
However, take a closer look at URI stock, and it’s clear that isn’t the case. Rather than being a value stock, at risk of becoming a “value trap,” URI is instead one of the top growth stocks to buy. As demand for its services remains robust, earnings are expected to grow at a steady pace between now and 2025.
This continued earnings growth could keep URI stock (B-rated in Portfolio Grader) in growth mode for years to come. In addition, the company’s recent initiation of a dividend (1.51% forward yield), plus planned share repurchases, will help boost total returns.
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https://finance.yahoo.com/news/7-great-growth-stocks-buy-110030242.html
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Air Products & Chemicals - >>> 10 Most Promising Hydrogen and Fuel Cell Stocks According to Analysts
Insider Monkey
by Omer Farooq
February 12, 2023
https://finance.yahoo.com/news/10-most-promising-hydrogen-fuel-143754446.html
Air Products & Chemicals, Inc. (NYSE:APD) is a leading global provider of atmospheric gases, process and specialty gases, and related services. The company has a presence in the Americas, Asia, Europe, the Middle East, and India. The company is one of the world’s foremost suppliers of hydrogen, operating over one hundred hydrogen plants one of the world’s most extensive hydrogen distribution networks.
On February 2, BMO Capital analyst John McNulty revised his price target on Air Products & Chemicals, Inc. (NYSE:APD) to $386 from $394 and maintained an Outperform rating on the shares. Air Products & Chemicals, Inc. (NYSE:APD) is one of analysts’ most promising hydrogen and fuel cell stocks to buy now.
Over the past 3 months, Air Products & Chemicals, Inc. (NYSE:APD) has received 5 Buy ratings and 7 Hold ratings from Wall Street analysts. The stock has a consensus Buy rating and an average price target of $328.33. The stock’s average price target implies an upside of 14.07% from current levels. As of February 10, the stock is trading at $287.82 per share.
At the end of Q3 2022, 43 hedge funds were long Air Products & Chemicals, Inc. (NYSE:APD) and disclosed positions worth $394.2 million. As of December 31, Quaero Capital is the top investor in the company and has a position worth $3.88 million.
Here is what Matrix Asset Advisors had to say about Air Products and Chemicals, Inc. (NYSE:APD) in its third-quarter 2022 investor letter:
“During the quarter, we started a new position in Air Products and Chemicals, Inc. (NYSE:APD) for accounts with cash to invest. Air Products & Chemicals is a leading global industrial gas company with very stable returns. The company provides industrial gas in bulk liquid and compressed gas forms as well as via onsite dedicated facilities. Because many of its contracts are long-term, the business is less cyclical than many industrial companies while benefiting during economic upswings. Air Products is a leader in hydrogen fueling systems and infrastructure, and the company sees great potential to extend its leadership in the years ahead. APD consistently returns capital to its shareholders through share repurchases and by steadily increasing its dividend. Its current annual dividend of $6.48 per share provides a 2.8% yield on September 30.”
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Linde - >>> 10 Most Promising Hydrogen and Fuel Cell Stocks According to Analysts
Insider Monkey
by Omer Farooq
February 12, 2023
https://finance.yahoo.com/news/10-most-promising-hydrogen-fuel-143754446.html
Linde plc (NYSE:LIN) is a leader in industrial gases and has one of the world's largest liquid hydrogen distribution systems in the world. In the third quarter of 2022, Linde plc (NYSE:LIN) announced its plans to build an industrial-scale 35-megawatt PEM electrolyzer in Niagara Falls. The plant is expected to be operational by 2025. The company is at the forefront of the energy transition and has reportedly installed 80 hydrogen electrolysis plants and more than 200 hydrogen fueling stations across the globe.
Linde plc (NYSE:LIN) has a consensus Strong Buy rating among Wall Street analysts. Over the past 3 months, the stock has received 13 Buy ratings from analysts and has a maximum price target of $418, and a minimum price target of $300.54. The stock's average price target of $375.29 represents a 13.03% upside from $332.04, its share price on February 10.
On February 8, Deutsche Bank analyst David Begleiter raised his price target on Linde plc (NYSE:LIN) to $385 from $355 and maintained a Buy rating on the shares. Linde plc (NYSE:LIN) is one of the most promising hydrogen and fuel cell stocks to buy according to analysts.
At the end of the third quarter of 2022, Linde plc (NYSE:LIN) was a part of 56 investors' portfolios that disclosed collective positions worth $3.47 billion. As of December 31, Impax Asset Management is the most prominent investor in Linde plc (NYSE:LIN) and has a stake worth $944.7 million.
Here is what Madison Funds had to say about Linde plc (NYSE:LIN) in its fourth-quarter 2022 investor letter:
“Linde plc (NYSE:LIN) stock was strong during the fourth quarter following a solid third quarter. Linde remains well positioned with the passage of the Inflation Reduction Act and energy transition with carbon dioxide sequestration opportunities, gasification services, and various hydrogen projects. Linde and Schlumberger announced that they entered into a collaboration of carbon capture, utilization, and sequestration (CCUS) projects to accelerate decarbonization solutions across industrial and energy sectors. The collaboration will combine decades of experience in carbon dioxide capture and sequestration. The collaboration will focus on hydrogen and ammonia production where carbon dioxide is a by-product. The International Energy Agency estimates that 6 Gigatons of carbon dioxide will need to be abated with CCUS in order to reach net zero by 2050. During the quarter, Linde also announced that it became a signatory to the United Nations Global Compact (UNGC), the world’s largest corporate sustainability initiative. As a signatory, Linde has committed to aligning its strategy and activities with the UNGC’s Ten Principles across human rights, labor, environment, and anti-corruption.”
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>>> Top Dividend Champion #2: Sonoco Products Company (SON)
https://www.suredividend.com/dividend-champions-list/
5-year expected returns: 18.2%
Sonoco Products provides packaging, industrial products and supply chain services to its customers. The markets that use the company’s products include those in the appliances, electronics, beverage, construction and food industries. The company generates about $7.2 billion in annual sales.
Sonoco Products is now composed of 2 core segments, Consumer Packaging and Industrial Packaging, with all other businesses listed as “all other”.
On October 31st, 2022, Sonoco Products reported third quarter earnings results for the period ending October 2nd, 2022. Revenue was higher by 34% to $1.89 billion, but missed estimate by $10 million. Adjusted earnings-per-share of $1.60 compared very favorably to $0.91 in the prior year and was $0.21 better than expected.
Consumer Packaging revenues surged 72% to $990.1 million, due once again primarily to the purchase of Ball Metalpack that closed in the fourth quarter of 2021. Pricing, favorable volume and mix, and currency exchange headwinds also impacted results. Global rigid paper containers and flexible packaging performed well. Industrial Paper Packing sales grew 4% to $661 million as higher selling prices more than offset a small volume decline and currency exchange headwinds.
Sonoco Products raised its outlook for 2022 as well, with the company expecting adjusted earnings-per-share of $6.40 to $6.50 for the year, up from $6.20 to $6.30.
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>>> Top Dividend Champion #7: Carlisle Companies (CSL)
https://www.suredividend.com/dividend-champions-list/
5-year expected returns: 13.4%
Carlisle Companies is a diversified company that is active in a wide array of niche markets. The segments in which the company produces and sells products include construction materials (roofing, waterproofing, etc.), interconnecting technologies (wires, cables, etc.), fluid technologies, and brake & friction.
Carlisle Companies reported its third quarter earnings results on October 27. Revenues of $1.79 billion grew 37% year-over-year, and were in line with analyst estimates. Earnings-per-share of $5.66 beat the consensus analyst estimate by $0.23. Carlisle Companies’ earnings-per-share were up 89% from the previous year, thanks to higher margins and the higher revenues the company generated during the quarter.
Cost-saving measures that were started during 2020 were responsible for some of the margin improvement, and share repurchases also had a positive impact on the company’s earnings-per-share growth rate during the period.
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>>> Why Generac Stock Was Climbing Today
Motley Fool
By Jeremy Bowman
Feb 15, 2023
https://www.fool.com/investing/2023/02/15/why-generac-stock-was-climbing-today/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
Elevated inventory levels are weighing on demand, but the company is still seeing strong end-user demand.
Generac expects sales to fall sharply in the first quarter of 2023 but return to growth by the second half of the year.
What happened
Shares of Generac (GNRC) were moving higher today after the leading manufacturer of generators delivered mixed results in its fourth-quarter earnings report.
The industrial company beat bottom-line estimates in the quarter but said that sales would decline in 2023, as expected.
As of 11:28 a.m. ET, the stock was up 6.8%.
So what
Generac's revenue fell 2% in the quarter to $1.05 billion, while core sales, which includes the impact of acquisitions and currency exchange, were down 7%. That compared with the analyst consensus at $1.07 billion.
Sales in the residential market, its biggest segment, were weak, falling 19% to $575 million. The company said end demand remains strong, but higher field inventory levels weighed on results. Generac finished the quarter with inventories up 29%, a problem that's plagued other retailers and manufacturers.
In the commercial and industrial segment, sales rose 27% to $361 million.
Gross margin fell 130 basis points to 32.7% due to an unfavorable sales mix, and operating expenses rose 26% due primarily to the impact of recurring expenses from previous acquisitions. On the bottom line, the company reported adjusted earnings per share of $1.78, down from $2.51, which edged out expectations at $1.76.
CEO Aaron Jagdfeld said: "Fourth-quarter and full-year 2022 results came in at the low end of our prior expectations due to continued softness in residential products. Robust momentum continued in the C&I product category as sales exceeded our prior expectations, and we exited 2022 with record backlog for these products."
Now what
Looking ahead, Generac expects a sharp decline in revenue in the first quarter due to elevated field inventory levels, and then sees sales growth recovering by the second half of the year.
For the first quarter, it expects sales to fall 25% to 26%, worse than the analyst forecast at a 16% decline, while management sees a 6% to 10% slide in revenue for the full year, which was even with estimates.
While those numbers may seem weak, management was optimistic that performance would strengthen in the second half of the year, and investors were also encouraged by strong adjusted EBITDA margin guidance for the year, at 17% to 18%.
Given the low expectations coming into the report after the stock had fallen more than 50% over the last year, that seemed to be enough for investors to bid the stock higher.
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Trane >>> TT or AQUA: Which Is the Better Value Stock Right Now?
Zacks Equity Research
February 7, 2023
https://finance.yahoo.com/news/tt-aqua-better-value-stock-164004464.html
Investors looking for stocks in the Technology Services sector might want to consider either Trane Technologies (TT) or Evoqua Water (AQUA). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Trane Technologies has a Zacks Rank of #2 (Buy), while Evoqua Water has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TT is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TT currently has a forward P/E ratio of 22.68, while AQUA has a forward P/E of 52.05. We also note that TT has a PEG ratio of 2.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AQUA currently has a PEG ratio of 3.47.
Another notable valuation metric for TT is its P/B ratio of 6.98. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AQUA has a P/B of 8.15.
These metrics, and several others, help TT earn a Value grade of B, while AQUA has been given a Value grade of C.
TT sticks out from AQUA in both our Zacks Rank and Style Scores models, so value investors will likely feel that TT is the better option right now.
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>>> Alamo Group Inc. (NYSE:ALG)
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171117892
Market Capitalization as of January 26, 2023: $1.82 billion
Alamo Group Inc. (NYSE:ALG) is a farming equipment company. It makes and sells a wide variety of machinery, such as tractor mowers and cutters. On the agrochemical side of things, the company provides products that allow farmers to apply fertilizers to their crops.
By the end of last year's third quarter, 11 out of the 920 hedge funds polled by Insider Monkey had bought Alamo Group Inc. (NYSE:ALG)'s shares.
Alamo Group Inc. (NYSE:ALG)'s largest shareholder is James A. Star's Longview Asset Management which owns 1.3 million shares that are worth $166 million.
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>>> Alamo Group Inc. (ALG) designs, manufactures, distributes, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural uses worldwide. Its Vegetation Management Division segment offers hydraulically-powered and tractor-mounted mowers, other cutters and replacement parts for heavy-duty and intensive uses and heavy duty applications, tractor- and truck-mounted mowing and vegetation maintenance equipment, and replacement parts. This segment also provides rotary and finishing mowers, flail and disc mowers, front-end loaders, backhoes, rotary tillers, posthole diggers, scraper blades and replacement parts, zero turn radius mowers, cutting parts, plain and hard-faced replacement tillage tools, disc blades, and fertilizer application components; aftermarket agricultural parts, heavy-duty mechanical rotary mowers, snow blowers, rock removal equipment, replacement parts, tractor attachments, agricultural implements, hydraulic and boom-mounted hedge and grass cutters, tractor attachments and implements, hedgerow cutters, industrial grass mowers, agricultural seedbed preparation cultivators, self-propelled sprayers and multi-drive load-carrying vehicles, cutting blades, and hydraulic and mechanical boom mowers. The company's Industrial Equipment Division segment offers truck-mounted air vacuum, mechanical broom, and regenerative air sweepers, pothole patchers, leaf collection equipment and replacement brooms, parking lot and street sweepers, excavators, catch basin cleaners, and roadway debris vacuum systems, as well as truck-mounted vacuum machines, combination sewer cleaners, and hydro excavators. This segment also offers ice control products, snowplows and heavy duty snow removal equipment, hitches, attachments, and graders; and public works and runway maintenance products, parts, and services, and high pressure cleaning systems and trenchers. The company was founded in 1955 and is headquartered in Seguin, Texas. <<<
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>>> Why Generac Holdings Stock Topped the Market on Thursday
Motley Fool
By Eric Volkman
Feb 2, 2023
https://www.fool.com/investing/2023/02/02/why-generac-holdings-stock-topped-the-market-on-th/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
The company's recovery continued, despite an analyst's price-target cut.
The stock has been an up-and-down title since the heaviest days of the coronavirus pandemic.
.
What happened
The stock market was quite frothy on Thursday, and Generac Holdings (GNRC 3.49%) was one of the stocks pushing it higher. The power-generating technology company's stock price rose by 3.5%, well outpacing the 1.5% rise of the bellwether S&P 500 index. The beaten-down stock is continuing its recent comeback.
So what
Momentum is clearly on Generac's side. Thursday morning before the market open, Credit Suisse analyst Maheep Mandloi cut his price target on the stock to $159 per share from the previous level of $165. That didn't keep investors away from the shares at all. In fact, during the day, they dipped only slightly and briefly below their Wednesday price.
Investor optimism is supporting Generac's stock, bolstered by some encouraging news in recent days from the company. It unveiled a new product that's well-timed to jump on the snowballing popularity of electric vehicles (EVs) -- a home charging system.
It sounds quite promising, too. According to its maker, the Generac EV charger can provide a full charge for certain cars in four to six hours, a quick little sprint in time, compared to other charging solutions. The appeal of such a product in a growing market is obvious.
Now what
Another dynamic at play here is the low base of Generac's shares as they tumbled into 2023. The stock was one of the worst-performing titles in its sector last year. That was basically a retrenchment, as Generac -- with its robust home generator business -- was a popular title during the stay-at-home period that was the thick of the coronavirus pandemic.
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Generac - >>> Could the Worst Stock in the S&P 500 in 2022 Be a Buy in 2023?
Motley Fool
By Michael Byrne
Jan 15, 2023
https://www.fool.com/investing/2023/01/15/could-the-worst-stock-in-the-sp-500-in-2022-be-a-b/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
Generac stock got crushed in 2022, and plummeted even further in the fall after management cut its guidance.
The company is still growing at an impressive clip.
Generac's valuation now looks a lot more palatable.
While the whole market was down in 2022, few stocks had a worse year than Generac (GNRC 3.01%). In fact, with a decline of 71%, it was the worst performer of the year in the S&P 500.
The maker of backup generators and other power-generating devices was a high flyer for much of 2021, when its market cap essentially doubled. But the stock began to decline after peaking in late 2021 and went on to lose an incredible 71% of its value in 2022. Generac investors are licking their wounds after a terrible 2022, but is there any reason for optimism that the beleaguered stock can bounce back in 2023?
I've got the power
Generac is best known for its generators which serve the residential and commercial markets. In recent years, it has also increasingly used acquisitions to diversify into additional areas like solar, battery storage, and energy management systems. The company has a great track record of long-term revenue growth, increasing sales at an outstanding 18% compound annual rate since going public in 2010.
It's the undisputed heavyweight in home generators, with a market share of about 75%. However, it still has a long runway for growth ahead as it estimates that this market is only 5.5% penetrated. Management sees further growth in home standby generation as a significant opportunity, and it's feasible that the severe winter storms of December 2022, which caused millions of customers across 13 states to lose power, will reinforce homeowners' interest in having backup power sources. Generac says that every additional percentage point of penetration for backup generators adds an additional $2.5 billion in addressable market for the company.
While this is a large opportunity in its core market, Generac also says that the acquisitions it has made over the past few years have expanded the size of its served addressable market by 500% since 2018. The company now makes inverters, which convert the DC electricity that solar panels generate into AC electricity -- the type that the grid supplies and our homes and businesses use. That's a market with potential -- solar power's installed capacity is expected to grow at a 12.7% compound annual rate over the next five years.
Beyond solar, the company has also moved into battery-powered lawnmowers with the acquisition of Mean Green, smart-home solutions with the acquisition of Ecobee, and more. If Generac can capture more market share in some of these new markets, it could add significantly to the company's growth in the years ahead.
Lower expectations create an attractive valuation
While Generac was punished for its sharp reduction in guidance, it's important to note that it hasn't suddenly turned into a slow-growth or no-growth company. This is still a profitable business, and the company still expects to report that it grew revenue by 22% to 24% in 2022. That isn't as compelling as the 36% to 40% it originally guided for, but it's still pretty impressive growth.
In some ways, Generac has been a victim of its own success, as the stock surged past $500 in October 2021 on the back of terrific growth. But as it lapped those difficult comps from 2021, its growth rate slowed, and the stock fell to just below $100 a share as of the end of 2022.
The stock contended with additional challenges over the course of the year, such as a lack of technicians to install its generators. The company now has partnerships with 8,500 dealers (300 more than the previous quarter), so it is working chip away at this challenge, and it says demand remains strong. Additionally, Generac dealt with a major customer declaring bankruptcy.
One area for concern is that the company's debt has increased significantly in recent times while its cash has decreased as it has pursued acquisitions. Total debt outstanding went from about $882 million in September of 2020 to over $1.3 billion as of the most recent quarter. The company now has a debt to EBITDA ratio of about 2.15. While this isn't egregious, it is something for investors to keep an eye on.
At this point, Generac's valuation looks undemanding. The stock trades at 15 times earnings and 14 times forward earnings, putting it just below the average multiple for the S&P 500.
Generac is actively engaging in share repurchases, and the company's Board recently authorized a new share repurchase program that will allow the company to buy back up to $500 million worth of its stock over the next two years.
With this lower valuation, and against a backdrop of lowered expectations, and more share buybacks on deck the stock looks a lot more palatable as a buy.
This won't be the worst stock in the S&P 500 again
Given the company's track record of growth and the long potential runway ahead of it, it seems likely that the present issues aret a speed bump on the road to Generac's long-term success. These lower prices offer investors a potentially favorable entry point. Janney Scott Mongomery recently initiated coverage of the stock with a buy rating, while Northland Capital went a step further, calling Generac its top pick of 2023.
Both analyst firms are of the opinion that the shares are undervalued, and Northland Capital thinks that the recent series of high-profile power outages across the United States could spur demand for home standby generators. The firms' new price targets of $160 and $180 imply meaningful upside from Generac's current share price. While such targets are best taken with a grain of salt, it's clear that there is the potential for plenty of upside ahead if Generac can get back on track, making it worthy of a small or more speculative investment for risk-tolerant investors.
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>>> GE buys out entire New York Times in first-ever advertising takeover, promoting new businesses
By Andy Brownfield
Cincinnati Business Courier
Dec 8, 2022
https://www.bizjournals.com/cincinnati/news/2022/12/06/ge-new-york-times.html?utm_source=sy&utm_medium=nsyp&utm_campaign=yh
General Electric, whose spinoff of its health care and energy companies will leave Evendale-based GE Aerospace as the sole company, bought out every single print ad in the New York Times Tuesday.
GE (NYSE: GE) on Tuesday executed an advertising takeover of the Times for the first time in the publication's 171-year history, promoting the company's transformation into three standalone, publicly traded companies: GE Aerospace (formerly GE Aviation), GE Vernova and GE HealthCare.
“GE is beginning again, on the path to create three companies all essential to modern life and all focused on delivering for the future," Linda Boff, GE chief marketing officer, said in a note announcing the advertising takeover.
The takeover includes every print ad space in the Times' Dec. 6 newspaper, as well as ads in the newspaper's desktop and mobile presences and on its podcast, "The Daily." The advertising, prepared by agency Giant Spoon, takes on the theme of "focus" as it applies to the focusing of each company on its industry as the giant conglomerate splits into three new companies.
"Today’s takeover of the New York Times print edition underscores our belief that focus is a superpower, especially in an age where our attention is divided among endless input, and that focus is the key to delivering long-term value," Boff said.
General Electric announced in November 2021 it is splitting itself into three publicly traded companies, spinning off GE HealthCare in early 2023 and GE Vernova – its energy business – in 2024. When the process is complete, GE Aerospace will remain as its own standalone company, leasing the "GE" name to the other two and owning a 19.9% stake in the health care firm.
GE CEO H. Lawrence Culp Jr. took over as CEO of GE Aviation in July, replacing John Slattery, who was named CEO in June 2020. Slattery was named executive vice president and chief commercial officer of the aviation business.
The advertising takeover of the Times included a cover wrap that encompasses the entire paper, showing off the logos of the three new companies. And then each section of the newspaper is devoted to one of the new companies: the main news or A section of the newspaper shows off GE Aerospace, the business section GE Vernova, the science section GE HealthCare and the art section is devoted to GE employee appreciation.
Included in the advertising are touches like a foldable paper airplane adapted by four-time Guinness World Record holder Ken Blackburn, who holds the record for the longest time keeping a paper airplane aloft; a Magic Eye optical illusion; and a circular crossword puzzle from award-winning puzzle maker Brendan Emmett Quigley.
GE did not disclose what it paid for the takeover of the New York Times.
GE Aerospace reported $6.7 billion in revenue for the third quarter of 2022, up 24% from the same quarter last year. That represented $1.2 billion in profit for the quarter, up 52% from the third quarter of 2021.
GE Aerospace, along with its joint venture with French firm Safran, CFM International, is the world's largest supplier of aircraft engines, responsible for 53% of the market. The company is Cincinnati's third-largest manufacturer, with 9,000 local employees, according to Business Courier research.
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>>> Ametek, Inc. (AME) manufactures and sells electronic instruments and electromechanical devices worldwide. It operates in two segments, Electronic Instruments (EIG) and Electromechanical (EMG). The company's EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; and instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets. This segment also provides power quality monitoring and metering devices, uninterruptible power supplies, programmable power equipment, electromagnetic compatibility test equipment, gas turbines, and environmental health and safety market sensors, dashboard instruments for heavy trucks and other vehicles, and instrumentation and controls for the food and beverage industries; and aircraft and engine sensors, monitoring systems, power supplies, fuel and fluid measurement systems, and data acquisition systems for the aerospace industry. Its EMG segment offers engineered electrical connectors and electronics packaging to protect sensitive devices and mission-critical electronics; precision motion control products for data storage, medical devices, business equipment, automation, and other applications; high-purity powdered metals, strips and foils, specialty clad metals, and metal matrix composites; motor-blower systems and heat exchangers for use in thermal management, military, commercial aircraft, and military ground vehicles; and motors for use in commercial appliances, fitness equipment, food and beverage machines, hydraulic pumps, and industrial blowers. This segment also operates a network of aviation maintenance, repair, and overhaul facilities. In addition, the company offers clinical and educational communication solutions. AMETEK, Inc. was founded in 1930 and is headquartered in Berwyn, Pennsylvania.
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>>> Generac takes $55M charge likely related to Pink Energy matters
Milwaukee Business Journal
by Rich Kirchen
10-20-22
https://www.bizjournals.com/milwaukee/news/2022/10/20/generac-55m-charge.html?utm_source=sy&utm_medium=nsyp&utm_campaign=yh
Generac Power Systems stock plunged after the company announced its revenue and earnings would fall short of previous projections in part because of a $55 million charge likely related to the bankruptcy and financial challenges of former customer Pink Energy.
Generac said Wednesday the other significant cause of lower earnings and less-than-expected revenue growth was a continuing challenge of consumers ordering more home standby generators than the pace at which dealers and independent contractors can complete installations.
The company (NYSE: GNRC), which is based in Genesee Depot near Waukesha, said preliminary net sales in the quarter ending Sept. 30 were $1.09 billion, an increase of 15% over a year ago. Preliminary net income was $58 million, or 83 cents per share, compared with $132 million, or $1.93 per share, in the third quarter of 2021.
“Despite reporting mid-teens net sales growth, third quarter results fell short of our prior expectations,” president and CEO Aaron Jagdfeld said in a press release.
Generac stock's closing price on Wednesday fell to $110.30 per share from the day-earlier closing price of $147.74 per share on heavy trading volume of 12.8 million shares. The stock was trading Thursday between $106 per share and $116.39 per share with 4.4 million shares trading as of mid-afternoon.
The company’s third-quarter net income was impacted by incurring $55 million in pre-tax charges in Generac’s clean-energy business.
Generac broke out the $55 million into two parts. The first is $37 million of product warranty-related matters. The second is $18 million of bad debt “related to a clean energy product customer that has filed for bankruptcy,” Generac said.
Generac's announcement didn't refer by name to Pink Energy or its parent company Power Home Solar LLC, but the bad-debt figure matches the amount Power Home Solar listed in bankruptcy documents as owed to Generac.
“Clean energy product shipments were negatively impacted by a large customer which ceased operations and has since filed for bankruptcy protection,” Jagdfeld said in the press release.
Robert W. Baird & Co. analysts said the magnitude of the impact is greater than they expected.
A Generac spokeswoman declined to confirm the identity of the party or parties involved in the $55 million in charges. Baird analysts said they suspect the charges are related to the Pink Energy situation.
“Given that we are in a quiet period, we won’t be commenting further until November 2, when our Q3 earnings are announced,” Tami Kou said Thursday.
Pink Energy used a Generac clean-energy component the SnapRS 801 and 801A in residential solar energy systems for homes.
Generac is offering to perform warranty services on its products for customers of Power Home Solar LLC, which did business as Pink Energy, filed Oct. 7 for Chapter 7 bankruptcy liquidation in its home state of North Carolina after ceasing operations.
The Chapter 7 bankruptcy filing listed Generac as Power Home Solar’s largest unsecured creditor at $17.7 million. Generac is likely to see little, if any, of that money as Power Home Solar’s secured creditors will be paid first from any liquidation proceeds.
As for the home standby generator business, Generac said installation capacity continued to grow but still lagged the company’s production output during the third quarter. That resulted in higher field inventory levels and lower home standby generator orders than Generac executives previously expected, the company said.
Consumer demand continues to be strong driven by elevated power outages, most notably from Hurricane Ian, Generac said.
Generac will release detailed third-quarter results on Nov. 2 and host an analyst call.
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>>> Why Generac Stock Is Plunging 20% Today
Motley Fool
By Howard Smith
Oct 19, 2022
https://www.fool.com/investing/2022/10/19/why-generac-stock-is-plunging-20-today/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
Demand continues to grow for home standby generators, but not as fast as expected.
The once high-flying stock's plunge this year has brought the P/E to below 15.
Generac still sees sales growth in 2022 of more than 20%, but that's nearly half of what it once thought.
What happened
Leading home generator supplier Generac Holdings (GNRC -25.34%) warned investors about its upcoming third-quarter results today, and the stock plunged in early trading. As of 11 a.m. ET, Generac shares were down 21.9%. That pushed the stock down more than 75% from its highs just one year ago.
So what
The leading provider of home backup generators said its revenue grew 15% compared to last year to more than $1 billion in the third quarter. However, that was shy of the company's own expectations. Net income was also hit with a charge of $18 million due to a customer in the clean energy sector ceasing operations and filing for bankruptcy. But the company's more meaningful issue is its residential customer sales.
Generac president and CEO Aaron Jagdfeld said shipments of its commercial and industrial products were in line with expectations. But while demand was still on the rise for its residential home standby generators, it didn't keep up with production, and inventories spiked. That mismatch of supply and demand came despite elevated power outages, including from Hurricane Ian.
This forced the company to reset expectations for the full year. It now sees net sales growth of 23% at the midpoint of its guidance range, down from the previous 38%. The company said it expects it to take at least through the middle of 2023 before surplus inventories are worked through.
Investors who may have been interested in this once-highflier but thought the stock may be too expensive should take another look. Shares that began the year with a price-to-earnings (P/E) ratio above 40 can now be had for a P/E of below 15, even with the lowered results. As long as the trend in demand continues to grow, that may look like a bargain over the long term.
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>>> Generac Holdings
https://finance.yahoo.com/m/f85da5ec-ca98-3a40-beaa-5ea91283e129/4-growth-stocks-to-buy-and.html
When most investors think of a home generator, they envision a dirty, gas-powered engine with a couple of electrical outlets attached, to be dragged out and dusted off in the event of a prolonged power outage.
That's anything but the sort of solutions Generac Holdings (GNRC) brings to the table, though. Its modern generators are automated, remotely monitored, and connected to a home's or business's wiring in a way that allows for seamless operation. And, even more important these days, Generac's portfolio provides energy storage solutions for solar panel systems that are generating excess energy during the day to supply electricity at night.
In an environment where self-sufficiency is king, Generac Holdings is holding the proverbial key. Although this year's projected revenue growth of nearly 39% is a tough act to follow, the company's projected follow-up growth rate of 9% for 2023 is still plenty healthy. Per-share earnings are expected to swell from last year's $9.63 to $11.73 per share this year, en route to next year's record-breaking $13.89.
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>>> Buy Generac Stock, Analyst Says. It’s a Top Alternative Energy Bet
Barron's
By Karishma Vanjani
June 2, 2022
https://www.barrons.com/articles/buy-generac-stock-analyst-51654203046?siteid=yhoof2
Demand for home standby generators post-pandemic is moderating, UBS said.
Generac Holdings’ stock got energized on Thursday after UBS called the generator market its top pick, citing the growth in the clean energy segment.
The stock (ticker: GNRC) jumped 10.3% to close at $268.95 on Thursday. It’s fallen some 24% this year. UBS analyst Jon Windham has a 12-month price target of $450 on the stock.
This is an attractive entry point for investors, Windham said, rating the stock at Buy. Windham sees a long-term upside from Generac’s smart home energy product rollout, driven by a more permanent shift in consumers’ inclination to spend on home improvement projects.
Generac recently acquired ecobee, a smart thermostat manufacturer, and offers generators that can be monitored using a smartphone. It also has a battery storage system called PWRcell that harnesses solar power to reduce electric bills and provide backup power during utility power outages.
He forecasts Generac’s Clean Energy revenue will grow to $1.7 billion by 2026 from roughly $550 million in 2022.
Windham also anticipates higher renewable penetration to drive new electricity rate structures in the U.S., which could boost the uptake of Generac’s products. There is a continuing trend toward time-of-use electricity rate structures, which charge customers varying prices per kilowatt-hour based on the demand at that time. Traditional electricity rates have a fixed charge.
That new structure encourages the growth of residential storage and other smart home hardware, he noted.
To be sure, Windham does highlight that demand for home standby generators post-pandemic is moderating, but that is fully reflected in the current share price, he added.
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>>> Avery Dennison Corporation (AVY) manufactures and markets pressure-sensitive materials and products in the United States, Europe, Asia, Latin America, and internationally.
The company's Label and Graphic Materials segment offers pressure-sensitive label and packaging materials; and graphics and reflective products under the Fasson, JAC, Avery Dennison, and Mactac brands, as well as durable cast and reflective films. It provides its products to the home and personal care, beer and beverage, durables, pharmaceutical, wine and spirits, and food market segments; architectural, commercial sign, digital printing, and other related market segments; construction, automotive, and fleet transportation market segments, as well as traffic and safety applications; and sign shops, commercial printers, and designers.
The company's Retail Branding and Information Solutions segment designs, manufactures, and sells brand embellishments, graphic tickets, tags and labels, and sustainable packaging solutions, as well as offers creative services; radio-frequency identification products; visibility and loss prevention solutions; price ticketing and marking solutions; care, content, and country of origin compliance solutions; and brand protection and security solutions. It serves retailers, brand owners, apparel manufacturers, distributors, and industrial customers.
The company's Industrial and Healthcare Materials segment offers tapes; pressure-sensitive adhesive based materials and converted products; medical fasteners; and performance polymers under the Fasson, Avery Dennison, and Yongle brands. It serves automotive, electronics, building and construction, general industrial, personal care, and medical markets. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. Avery Dennison Corporation was founded in 1935 and is headquartered in Glendale, California.
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https://finance.yahoo.com/quote/AVY/profile?p=AVY
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