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AVXL

Anavex Life Sciences Corp.On track to release top-line data of potentially pivotal ANAVEX®2-73-RS-003 Phase 2/3 EXCELLENCE pediatric clinical trial in the second half of 2023Newly available preliminary efficacy results of surrogate biomarkers from the ANAVEX®2-73-AD-004 study in Alzheimer’s disease with convenient oral treatment to be released in the second half of 2023Company to host a webcast today at 8:30 a.m. Eastern TimeNEW YORK, Aug. 08, 2023 (GLOBE NEWSWIRE) -- Anavex Life Sciences Corp. (“Anavex” or the “Company”) (Nasdaq: AVXL), a clinical-stage biopharmaceutical company developing differentiated therapeutics for the treatment of neurodegenerative and neurodevelopmental disorders including Alzheimer’s disease, Parkinson’s disease, Rett syndrome and other central nervous system (CNS) diseases, today reported financial results for its fiscal quarter ended June 30, 2023.“We are very excited to be entering an important phase of the Company, with several key data readouts based on innovative science at Anavex with ANAVEX®2-73 (blarcamesine), an orally available, small-molecule activator of the upstream sigma-1 receptor (SIGMAR1), involved in restoring neural cell homeostasis and promoting neuroplasticity,” said Christopher U Missling, PhD, President and Chief Executive Officer of Anavex. “We remain focused on execution as we prepare for a pivotal year ahead of us potentially involving a digital ‘Healthcare Sales Marketing’ pharma platform and also making meaningful advances in our other neurodevelopmental and neurodegenerative precision medicine portfolio, including schizophrenia and Parkinson’s disease.”Key Near Term Pipeline Updates:Rett syndrome: Top-line data of potentially pivotal ANAVEX®2-73-RS-003 Phase 2/3 EXCELLENCE pediatric clinical trial. Company expects to announce topline results from this study in the second half of 2023.Alzheimer’s disease: Full data ANAVEX®2-73-AD-004, including newly available preliminary results of surrogate biomarkers of pivotal Phase 2b/3 clinical trial. The Company intends to discuss these findings with regulatory authorities in the context of the ongoing clinical development of ANAVEX®2-73 in this indication, with the goal of providing a much-needed treatment to the millions of patients living with Alzheimer’s disease with a convenient once-daily oral treatment. Company expects to announce data in the second half of 2023.Parkinson’s disease: Initiation of ANAVEX®2-73 pivotal clinical trial.Parkinson’s disease: Initiation of ANAVEX®2-73 imaging-focused clinical trial.Fragile X: Initiation of potentially pivotal ANAVEX®2-73 Phase 2/3 clinical trial.Schizophrenia: Initiation of ANAVEX®3-71 Phase 2 clinical trial.New Rare disease: Initiation of potentially pivotal ANAVEX®2-73 Phase 2/3 clinical trial.Publications: Several clinical publications involving ANAVEX®2-73, ANAVEX®3-71 and Rett syndrome Burden of Illness study.Story continuesRecent Business Highlights:On August 7, 2023, the Company announced a peer-reviewed publication in Clinical Pharmacology in Drug Development, findings from the ANAVEX®3-71 first-in-human study which achieved its cardiovascular safety objectives. The publication is entitled, ‘Concentration-QTc Relationship from a Single Ascending Dose Study of ANAVEX3-71, a Novel Sigma-1 Receptor and Allosteric M1 Muscarinic Receptor Agonist in Development for the Treatment of Frontotemporal Dementia, Schizophrenia, and Alzheimer's Disease’.On June 28, 2023, the Company announced that long-term clinical study results from the U.S. ANAVEX®2-73-RS-001 clinical trial demonstrate disease-modifying effect of ANAVEX®2-73 (blarcamesine) for adult patients with Rett syndrome.On June 27, 2023, the Company announced a strategic partnership with Partex N.V. Group, the first Data-to-Drugs digital pharma platform in which Partex will implement AI-based ‘Healthcare Sales Marketing’ in preparation for Anavex’s late-stage drug pipeline.On June 12, 2023, the Company announced the publication of a relevant new peer-reviewed study in the American Journal on Intellectual and Developmental Disabilities, entitled ‘Rett Syndrome Behaviour Questionnaire in Children and Adults With Rett Syndrome: Psychometric Characterization and Revised Factor Structure.’ In the EXCELLENCE Phase 2/3 ANAVEX®2-73-RS-003 Rett syndrome pediatric clinical trial, the characterized Rett Syndrome Behaviour Questionnaire (RBSQ), together with the Clinical Global Impression Improvement Scale (CGI-I), represent the co-primary efficacy endpoints of the study.On June 6, 2023, the Company announced completion of dosing of all participants of the placebo-controlled EXCELLENCE Phase 2/3 clinical trial ANAVEX®2-73-RS-003 in pediatric patients with Rett syndrome.On June 1, 2023, the Company announced that it was awarded a new U.S. Patent No. 11,661,405 entitled “CRYSTAL FORMS OF TETRAHYDRO-N,N-DIMETHYL-2,2-DIPHENYL-3-FURANMETHANAMINE HYDROCHLORIDE, PROCESSES OF MAKING SUCH FORMS, AND THEIR PHARMACEUTICAL COMPOSITIONS” from the United States Patent and Trademark Office (USPTO), expanding Anavex’s patent coverage of certain crystal forms of ANAVEX®2-73 (blarcamesine) compositions, processes of preparation, and uses thereof.Financial Highlights:Cash and cash equivalents of $154.8 million at June 30, 2023 compared to $149.2 million at fiscal year end September 30, 2022.General and administrative expenses for the quarter of $3.2 million compared to $3.2 million for the comparable quarter of fiscal 2022.Research and development expenses for the quarter of $10.3 million compared to $9.3 million for the comparable quarter of fiscal 2022.Net loss for the quarter of $11.3 million, inclusive of $3.9 million in non-cash items, or $0.14 per share, compared to a net loss of $12.4 million, inclusive of $4.0 million in non-cash items, or $0.16 per share for the comparable quarter of fiscal 2022.The financial information for the quarter ended June 30, 2023, should be read in conjunction with the Company’s interim condensed consolidated financial statements, which will appear on EDGAR, www.sec.gov and will be available on the Anavex website at www.anavex.com.Webcast / Conference Call Information:The live webcast of the conference call will be available on Anavex’s website at www.anavex.com.The conference call can be also accessed by dialing 1 929 205 6099 for participants in the U.S. using the Meeting ID# 891 9995 1143 and reference passcode 511901. A replay of the conference call will also be available on Anavex’s website for up to 30 days.About Anavex Life Sciences Corp.Anavex Life Sciences Corp. (Nasdaq: AVXL) is a publicly traded biopharmaceutical company dedicated to the development of novel therapeutics for the treatment of neurodegenerative and neurodevelopmental disorders, including Alzheimer's disease, Parkinson's disease, Rett syndrome, and other central nervous system (CNS) diseases, pain, and various types of cancer. Anavex's lead drug candidate, ANAVEX®2-73 (blarcamesine), has successfully completed a Phase 2a and recently a Phase 2b/3 clinical trial for Alzheimer's disease, a Phase 2 proof-of-concept study in Parkinson's disease dementia, and both a Phase 2 and a Phase 3 study in adult patients with Rett syndrome. ANAVEX®2-73 is an orally available drug candidate that restores cellular homeostasis by targeting sigma-1 and muscarinic receptors. Preclinical studies demonstrated its potential to halt and/or reverse the course of Alzheimer's disease. ANAVEX®2-73 also exhibited anticonvulsant, anti-amnesic, neuroprotective, and anti-depressant properties in animal models, indicating its potential to treat additional CNS disorders, including epilepsy. The Michael J. Fox Foundation for Parkinson's Research previously awarded Anavex a research grant, which fully funded a preclinical study to develop ANAVEX®2-73 for the treatment of Parkinson's disease. ANAVEX®3-71, which targets sigma-1 and M1 muscarinic receptors, is a promising clinical stage drug candidate demonstrating disease-modifying activity against the major hallmarks of Alzheimer's disease in transgenic (3xTg-AD) mice, including cognitive deficits, amyloid, and tau pathologies. In preclinical trials, ANAVEX®3-71 has shown beneficial effects on mitochondrial dysfunction and neuroinflammation. Further information is available at www.anavex.com. You can also connect with the Company on Twitter, Facebook, Instagram, and LinkedIn.Forward-Looking StatementsStatements in this press release that are not strictly historical in nature are forward-looking statements. These statements are only predictions based on current information and expectations and involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in any of such statements due to various factors, including the risks set forth in the Company’s most recent Annual Report on Form 10-K filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and Anavex Life Sciences Corp. undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. Anavex Life Sciences Corp.Interim Condensed Consolidated Statements of Operations and Comprehensive Loss(Unaudited - Expressed in US Dollars)  Three months ended June 30,     2023  2022 Operating Expenses  General and administrative$3,247,843 $3,185,451 Research and development 10,282,854  9,273,269 Total operating expenses  13,530,697    12,458,720  Operating loss (13,530,697)  (12,458,720)   Other income  Research and development incentive income 564,842  682,432 Interest income, net 1,827,945  229,917 Foreign exchange loss, net (101,066) (732,549)Total other income, net  2,291,721    179,800  Net loss before provision for income taxes (11,238,976) (12,278,920)Income tax expense, current (41,000) (88,421)Net loss and comprehensive loss$ (11,279,976)$ (12,367,341)   Net loss per share  Basic and diluted$(0.14)$(0.16)   Weighted average number of shares outstanding  Basic and diluted 80,875,235  77,442,236 Anavex Life Sciences Corp.Interim Condensed Consolidated Statements of Operations and Comprehensive Loss(Unaudited - Expressed in US Dollars)  Nine months ended June 30,     2023  2022 Operating Expenses  General and administrative$9,447,447 $9,167,560 Research and development 33,656,364  26,534,297 Total operating expenses  43,103,811    35,701,857  Operating loss  (43,103,811)  (35,701,857)   Other income  Grant income 25,000  - Research and development incentive income 2,048,113  2,328,675 Interest income, net 4,560,784  242,405 Other financing expense (964,344) - Foreign exchange gain (loss), net 146,239  (408,541)Total other income, net  5,815,792    2,162,539 Net loss before provision for income taxes (37,288,019) (33,539,318)Income tax expense, current (70,954) (148,201)Net loss and comprehensive loss$ (37,358,973)$ (33,687,519)   Net loss per share  Basic and diluted$(0.47)$(0.44)   Weighted average number of shares outstanding  Basic and diluted 79,051,038  76,561,940 Anavex Life Sciences Corp.Interim Condensed Consolidated Balance SheetsAt June 30, 2023 and September 30, 2022(Unaudited – Expressed in US Dollars)    June 30, 2023September 30,2022Assets  Current  Cash and cash equivalents$154,817,164 $149,157,861 Incentive and tax receivables 2,165,127  3,192,580 Prepaid expenses and other current assets 827,572  354,162 Total Assets$157,809,863 $152,704,603    Liabilities and stockholders' equity  Current Liabilities  Accounts payable$4,152,846 $3,824,777 Accrued liabilities 5,985,658  5,944,953 Deferred grant income 916,763  443,831 Total Liabilities 11,055,267  10,213,561 Capital Stock 81,391  77,944 Additional paid-in capital 429,595,961  387,976,881 Accumulated deficit (282,922,756) (245,563,783)Total Stockholders' Equity 146,754,596  142,491,042 Total Liabilities and Stockholders' Equity$157,809,863 $152,704,603 For Further Information:Anavex Life Sciences Corp.Research & Business DevelopmentToll-free: 1-844-689-3939Email: [email protected]:Andrew J. BarwickiInvestor RelationsTel: 516-662-9461Email: [email protected]

GlobeNewswire

Anavex Life Sciences Reports Fiscal 2023 Third Quarter Financial Results

https://finance.yahoo.com/news/anavex-life-sciences-reports-fiscal-113000867.html

7ebcbb43-6a8f-3e43-ac38-30b887264801

AVXL

ParticipantsChristopher U. Missling; Chairman, President, CEO & Secretary; Anavex Life Sciences Corp.Clint Tomlinson; VP of Corporate; Anavex Life Sciences Corp.Sandra Boenisch; Principal Financial Officer & Treasurer; Anavex Life Sciences Corp.Soumit Roy; Director & Healthcare Analyst; JonesTrading Institutional Services, LLC, Research DivisionPresentationClint TomlinsonGood morning, and welcome to the Anavex Life Sciences Fiscal 2023 Third Quarter Conference Call. My name is Clint Tomlinson, and I will be your host for today's call. (Operator Instructions) Please note this conference is being recorded. The call will be available for replay on Anavex's website at www.anavex.com. With us today is Dr. Christopher Missling, President and Chief Executive Officer; and Sandra Boenisch, Principal Financial Officer. Before we begin, please note that during this conference call, the company will make some projections and forward-looking statements. These statements are only predictions based on current information and expectations and involve a number of risks and uncertainties. We encourage you to review the company's filings with the SEC. This includes, without limitation, the company's Forms 10-K and Q, which identify the specific factors that may cause actual results or events to differ materially from those described in these forward-looking statements. These factors include, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital and maintenance of intellectual property rights. And with that, I would like to turn the call over to Dr. Missling.Christopher U. MisslingThank you, Clint, and good morning, everyone. Thank you for being with us today to review our most recently reported financial results and to provide our quarterly business update. We are very excited to be entering an important phase of the company with several key data readouts within the remainder of 2023 for blarcamesine. First on Rett syndrome. In June, we announced the completion of the placebo-controlled EXCELLENCE Phase II/III clinical trial, RS-003, in pediatric patients with Rett syndrome and we're looking forward to the top line data of this potentially pivotal clinical trial in the second half of 2023. On June 12, we announced the publication of a new peer-reviewed study in the American Journal on Intellectual and Developmental Disabilities with relevance to this clinical trial entitled, Rett Syndrome Behavior Questionnaire in Children and Adults with Rett Syndrome: Psychometric Characterization and Revised Factor Structure. In the EXCELLENCE clinical trial, they have characterized Rett Syndrome Behavior Questionnaire, RSBQ, together with the Clinical Global Impression Improvement Scale, CGI-I, represents the co-primary efficacy endpoints of the trial. This psychometric study is timely and significant as it provides additional support for the use of the RSBQ in children and adults as well as reference values and revised subscales for its improved use. We have also been further encouraged for the results of this upcoming data readout based on recent long-term clinical trial results from the U.S. ANAVEX-2-73-RS-001 clinical trial, which we announced end of June. The long-term data demonstrated disease-modifying effect of blarcamesine for adult patients with Rett syndrome. Results from phamarcometric modeling of the full clinical data from baseline of the double-blind study to the end of the open-label extension study indicated that the data are best characterized with a combined symptomatic and disease-modifying drug effect model, meaning that blarcamesine exhibited both symptomatic and disease-modifying effects in the treatment of Rett syndrome in a clinical setting. Continued improvement from the drug as measured with the RBSQ total score was observed from the start of the double-blind study to the end of the open-label extension for patients continuing on blarcamesine. Additionally, disease progression, which is defined as the change in Rett syndrome disease severity with time was also reduced with long-term treatment with blarcamesine. In Alzheimer's disease, we look forward to presenting, including in a scientific journal once available, the complete data set of the recently completed Phase II/III Alzheimer's disease trial of blarcamesine. With newly available preliminary efficacy results of surrogate biomarkers, we intend to initiate discussions with regulatory agencies in the context of the ongoing clinical development of blarcamesine in this indication with a goal of providing a much-needed treatment for the millions of patients living with Alzheimer's disease in a convenient, once-daily oral treatment. We expect to be able to announce this data also within the second half of 2023. Following on the encouraging results of our Parkinson's dementia clinical trial, including the results of the 48-week open-label extension of this trial, which we announced at the end of March, we tend to use the same endpoints in a forthcoming pivotal study of blarcamesine in Parkinson's disease, which is currently in the planning stages and we look forward to announcing the significant milestones of this clinical trial initiation as they are executed. Further, the pipeline expansions of the Anavex platform using gene biomarkers of response applying precision medicine for neurological disorders is expected, including a planned initiation of blarcamesine imaging-focused Parkinson's disease clinical trial sponsored by the Michael Fox Foundation, a planned initiation of a potential pivotal blarcamesine Phase II/III clinical trial in Fragile X syndrome and a planned initiation of our Phase II clinical trial in ANAVEX 3-71 in schizophrenia. We also are planning an initiation of our potential pivotal blarcamesine trial Phase II/III for the treatment of a new rare disease indication, which we'll announce accordingly. And we'll continue to expect clinical publications involving ANAVEX 2-73 blarcamesine and ANAVEX 3-71. In conjunction with these planned clinical developments, we continue to strive to remain at the forefront of innovation. In June, we announced we entered into a strategic partnership with Partex Group to leverage artificial intelligence for drug development and health care sales marketing, potentially involving a digital health care sales marketing pharma platform with the overall ambition to reshape the future of the biopharma business model. By combining Anavex's innovative small molecule precision medicine drug development platform and Partex's disruptive approach of AI-enabled drug development and health care sales marketing, this collaboration is intended to drive efficiency, effectiveness and innovation across the value chain with patient-centric focus at every step. Additionally, we continue to expand and strengthen our patent portfolio for blarcamesine with a new U.S. patent awarded expanding Anavex's patent coverage of certain crystal forms of blarcamesine compositions, process of preparation and uses thereof. And now I would like to direct the call to Sandra Boenisch Principal Financial Officer of Anavex, for a brief financial summary of the recently reported quarter.Story continuesSandra BoenischThank you, Christopher, and good morning to everyone. I am pleased to share with you today our third quarter financial results. During our most recent quarter, our general and administrative expenses remained consistent year-over-year at $3.2 million. Our research and development expenses for the quarter were $10.3 million as compared to $9.3 million in the comparable quarter of fiscal 2022. The increase in research and development costs year-over-year was primarily a result of our expanded team as well as a sustained increase in drug manufacturing activities and development for future clinical and potential market supply. Overall, we reported a net loss of $11.3 million, which is $0.14 per share, inclusive of $3.9 million in noncash items. Our cash position at June 30 was $154.8 million. During the quarter, we utilized cash and cash equivalents of $7.7 million to fund operations. At our current cash utilization rate, we believe we have -- continue to have sufficient cash runway to fund our operations and clinical programs beyond the next 4 years. Thank you. And now I will turn it back over to you, Christopher.Christopher U. MisslingThank you, Sandra, and this is a really exciting time for the company and we remain on track to -- for readouts of completed clinical trials and initiation of additional biomarker-driven precision medicine clinical trials as planned. I would now like to turn the call back to Clint for Q&A.Question and Answer SessionClint TomlinsonThank you. (Operator Instructions) So our first question is coming from Soumit Roy at Jones Research.Soumit RoyCongratulations on the solid quarter and all the progress. A question on the Alzheimer program. Are the patients continuing on a long-term study? And any progress on the confirmatory study to initiate on?Christopher U. MisslingYes. Excellent question. So the patient on the extension study actually has given -- was given a name. It's called the ATTENTION-AD study and it's going over 96 weeks. We have been -- heard from KOLs that actually this extension study could be the confirmationary study of the ANAVEX 2-73 Phase II/III study itself. So we want to basically put this in context and see how this will progress. Accordingly so, we might already have started this confirmatory study with that open-label study, but it will be determined in discussions with regulatory agencies. But we would, of course, be able to without a problem initiate a study if so required at anytime.Soumit RoyI see. Do you have any date in mind when the FDA conversation could happen if this study can translate into a confirmation study?Christopher U. MisslingYes. We are planning to do this once the data is available, which is expected this year. And thereafter, agency is able to address things with data as well and that's what will happen with data -- in presence of data.Soumit RoyOkay. And the biomarker study data, is that -- could you give us some color on how many patient results going to present an expectation because this is not a targeted agent towards them and like (inaudible). So what should be Street's expectations? And could you refine the time line? Is it going to be later like in November time line? Or it could be earlier in third quarter?Christopher U. MisslingI would say we keep the -- we want to surprise the market. So we -- it's the second half of this year and we'll be able to then provide the data once it's available. And regarding the color, so it will be the entire participants of the trial and the majority of them have received blood biomarker assessment before and after as well as MRI assessment and a smaller sample size has also received CSF samples. So this is right now the entire population of the trial.Soumit RoyWell, that is really helpful. And one last question on the Rett program. Clearly, you are heading towards getting the top line data from the EXCELLENCE study. How are you thinking path forward? Are you thinking about commercializing yourself? Or is it going to be a partnership program? If it's going to be by Anavex, the commercialization part, when should we start thinking about hiring the commercial team?Christopher U. MisslingYes. Excellent question. So with the collaboration with Partex, we already initiated the strategizing on the sales force numbers, the expansion of marketing strategies. But also, we received unsolicited interest from -- across the globe in all regions of the world -- from all regions of the world to either co-market or to license blarcamesine for Rett syndrome already. So we have multiple options open end. We try to do the -- make a decision based on shareholder value, so what will create more shareholder value accordingly. And we will base that decision on -- based on that information once we are able to get the term sheet on the table. It will likely happen after the data is out.Clint TomlinsonI don't see any other analyst questions. Dr. Missling. If there's anything that you want to add here, you're more than welcome to.Christopher U. MisslingThank you very much. I think the question from Soumit was very comprehensive. Again, we like to very much point out that we're looking forward to a very excited second half of this year. We are very excited about the potential of what we built. We're expecting further publications and -- of our biomarker-driven precision medicine studies, which have all significant unmet need and economic burden. And we remain focused on execution as we prepare for a pivotal year ahead of us, potentially involving meaningful advances in our neurodevelopmental, in neurodegenerative precision medicine portfolio. Thank you very much, and stay tuned. Looking forward.Clint TomlinsonThank you, Dr. Missling. Ladies and gentlemen, that will conclude our call for today. We appreciate your participation, and you may now disconnect.

Thomson Reuters StreetEvents

Q3 2023 Anavex Life Sciences Corp Earnings Call

https://finance.yahoo.com/news/q3-2023-anavex-life-sciences-014353235.html

6fe78a7e-06e5-3e7a-bc18-023f3280efed

AVY

A month has gone by since the last earnings report for Avery Dennison (AVY). Shares have added about 0.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Avery Dennison due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.Avery Dennison Q2 Earnings Miss, Revenues Dip Y/YAvery Dennison has delivered adjusted earnings of $1.92 per share, missing the Zacks Consensus Estimate of $2.01 in second-quarter 2023. The bottom line marked a 27% year-over-year decline.Including one-time items, the company has reported earnings per share (EPS) of $1.24 compared with the year-ago quarter’s $2.61.Total revenues fell 10.9% year over year to $2,091 million, missing the Zacks Consensus Estimate of $2,163 million.Cost of sales in the quarter fell 9.8% year over year to $1,537 million. The gross profit declined 13.9% year over year to $553 million.Marketing, general and administrative expenses were $320 million compared with the $333 million incurred in the year-ago quarter. The adjusted operating profit amounted to around $234 million compared with the prior-year quarter’s $311 million. The adjusted operating margin was 11.2% in the quarter compared with the year-ago quarter’s 13.2%.Segmental HighlightsRevenues in the Materials Group segment declined 12.6% year over year to $1,476 million in the reported quarter. The reported figure missed our estimate of $1523 million. On an organic basis, sales were down 10.5%. We predicted organic sales to fall 7.3%. The segment’s adjusted operating profit fell 19.2% year over year to $200 million.Revenues in the Solutions Group were down 6.5% year over year to $615 million. We estimated revenues of $641 million for this segment. On an organic basis, sales declined 8.1%. Our model predicted a fall of 3.2%. The segment’s adjusted operating income slumped 36% year over year to $55 million.Story continuesFinancial UpdatesThe company returned $216 million in cash to shareholders through share repurchases and dividend payments in the first half of 2023 and invested $194 million in acquisitions. AVY repurchased 0.5 million shares throughout the quarter.Avery Dennison ended the quarter with cash and cash equivalents of $217 million compared with $165 million at the end of the prior-year quarter. The company’s long-term debt was $2,910 million at the end of the quarter under review, up from $2,493 million at the end of the second quarter of 2023.GuidanceAvery Dennison expects third-quarter 2023 adjusted EPS of $2.00-$2.20.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.The consensus estimate has shifted -16.22% due to these changes.VGM ScoresAt this time, Avery Dennison has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Avery Dennison has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAvery Dennison Corporation (AVY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Is Avery Dennison (AVY) Up 0.8% Since Last Earnings Report?

https://finance.yahoo.com/news/why-avery-dennison-avy-0-153047928.html

e607210e-e89d-392f-af66-d4665a95a3ee

AVY

Avery Dennison Corporation (NYSE:AVY) is about to trade ex-dividend in the next four days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Thus, you can purchase Avery Dennison's shares before the 5th of September in order to receive the dividend, which the company will pay on the 20th of September.The company's next dividend payment will be US$0.81 per share, on the back of last year when the company paid a total of US$3.24 to shareholders. Based on the last year's worth of payments, Avery Dennison has a trailing yield of 1.7% on the current stock price of $187.81. If you buy this business for its dividend, you should have an idea of whether Avery Dennison's dividend is reliable and sustainable. So we need to investigate whether Avery Dennison can afford its dividend, and if the dividend could grow. Check out our latest analysis for Avery Dennison Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. That's why it's good to see Avery Dennison paying out a modest 44% of its earnings. A useful secondary check can be to evaluate whether Avery Dennison generated enough free cash flow to afford its dividend. It paid out more than half (55%) of its free cash flow in the past year, which is within an average range for most companies.It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.Click here to see the company's payout ratio, plus analyst estimates of its future dividends.Story continueshistoric-dividendHave Earnings And Dividends Been Growing?Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. For this reason, we're glad to see Avery Dennison's earnings per share have risen 17% per annum over the last five years. Avery Dennison is paying out a bit over half its earnings, which suggests the company is striking a balance between reinvesting in growth, and paying dividends. This is a reasonable combination that could hint at some further dividend increases in the future.Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Avery Dennison has delivered 12% dividend growth per year on average over the past 10 years. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.To Sum It UpIs Avery Dennison worth buying for its dividend? From a dividend perspective, we're encouraged to see that earnings per share have been growing, the company is paying out less than half of its earnings, and a bit over half its free cash flow. Avery Dennison looks solid on this analysis overall, and we'd definitely consider investigating it more closely.On that note, you'll want to research what risks Avery Dennison is facing. Case in point: We've spotted 2 warning signs for Avery Dennison you should be aware of.Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Here's What We Like About Avery Dennison's (NYSE:AVY) Upcoming Dividend

https://finance.yahoo.com/news/heres-avery-dennisons-nyse-avy-100537297.html

ecdfab32-f1ce-37d4-94c3-7c83cb0db159

AWIN

Tokyo, Japan--(Newsfile Corp. - July 17, 2023) - AERWINS Technologies Inc. (NASDAQ: AWIN) ("AERWINS" or the "Company") is excited to announce it has unveiled the blueprint for a revolution in personal transportation - XTURISMO™. AERWINS has developed the technology for its new hovercraft launching to market later this year after receiving necessary approvals from the Japan Civil Aviation Bureau (JCAB), the equivalent Japanese air mobility regulatory body to the U.S. Federal Aviation Administration (FAA). The Company's one-of-a-kind patent-protected design blends the practicality of electric cars with the thrill of airborne travel, providing a clear, integrated solution for current electric vehicles (EV). The Company has accepted initial orders for the exclusive launch of the first commercialized model, with scheduled deliveries starting in Q3 2023. The Company's new technologies will revolutionize the EV landscape as key players in the automotive manufacturing sector adopt the latest technology into their new and current models. The Company will continue plans to scale and commercialize its design by pursuing licensing agreements with the top electric automotive manufacturers in North America, Europe, and Asia as the demand continues to increase for innovative technology within the automotive and air mobility industries.AERWINS' advanced technology revolutionizes low-altitude air mobility for vehicles. Its superior design allows it to integrate with many EVs and transform a typical electric car into a flying vehicle. Alef Aeronautics, a California-based start-up, recently received a special airworthiness certification from the FAA to start testing their "Model A" flying car, showcasing an impressive movement in the government approvals for personal air mobility.[1] After receiving the necessary permissions from JCAB, AERWINS is applying for licenses from the FAA. McKinsey & Company report, "Even today, in major cities such as Hong Kong and New York, a fortunate few escape the gridlock and congestion on the ground by taking helicopters to and from work. Each day in São Paulo, for example, hundreds of people trade a four-hour commute on the ground for a ten-minute helicopter ride costing anywhere from $500 to $1,500. While expensive for everyday commuters, the dream of rising above the ever-increasing road- traffic congestion, coupled with the promise of new technological advances, explains why air mobility has recently gained significant momentum. The media buzz surrounding the topic has grown more than tenfold in the past 18 months, as measured by mentions of personal air mobility and similar terms."[2]Story continuesAERWINS has produced a vehicle chassis system with two parallel rotors aligned to lift and land and four smaller rotors to steer and bank at high speeds in the air. The device is paired with an electric control system which is synced with the hovercraft for additional security and safety. XTURISMO™ is no larger than an average car, can hover on streets in traffic a few feet off the ground, and quickly skyrocket to heights of 100 meters within a minute[3]. The impressive new XTURISMO™ has the agility to execute 90-degree turns at speeds up to 30 miles per hour and complete a 180-degree turn in one second while carrying a 100kg payload. View the Demo Video here.We believe XTURISMO™ to be the only commercial hovercraft with these collective capabilities. According to a report issued by Morgan Stanley[4], the Urban Air Mobility market will be $1.5 trillion by 2040 and $9 trillion by 2050. The Company sees massive potential in the space and believes that none of its potential competitors currently have these collective capabilities in one hovercraft.Pictured is the top view of the XTURISMO™ with two helicopter-like rotors aligned to lift and land. It also has four smaller rotors to steer, bank, and flip 180 degrees within one second.To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/9866/173757_ddd2b08d541958fb_002full.jpgAERWINS has received one Japanese patent and four Patent Cooperation Treaty patents for its unique technology, design, and use for XTURISMO™. XTURISMO™ also won the prestigious Edison Award in 2023."AERWINS Air Mobility Platform is a proven product that could be easily attached to the undercarriage of many electric cars and powered by the car's battery system with minimal redesign. We have received overwhelming interest from high-net-worth individuals who plan to use XTURISMO™ primarily for recreation, and we plan to focus on large-scale partnerships with certain top global EV manufacturers to bring this concept to the masses. We plan to target enthusiasts and early adopters initially," states Taiji Ito, Chief Executive Officer of AERWINS. "AERWINS plans to distribute the product through luxury car dealerships and direct-to-customer internet platforms. The team has already begun pitching government agencies on commercial applications. AERWINS aims to be a high-performance company in the Low Altitude and Ultra Low Altitude categories."XTURISMO™ is a versatile product opening up sales channels and opportunities in various industries, including; Military, Security, Search and Rescue, Recreation, and Tourism. XTURISMO™ is the first commercial hovercraft to launch retail sales, with the first wave of deliveries planned for 2023. This puts AERWINS far ahead of the curve as we believe all known competitors are planning to launch closer to 2025 and 2026. Earlier this year, AERWINS entered a Joint Venture Agreement with Vault Investments LLC, under which A.L.I. Technologies Inc. agreed to establish a joint venture company in the United Arab Emirates ("U.A.E.") as a production and marketing base for the AERWINS air mobility products and solutions in the U.A.E. The Company plans to produce our third XTURISMO™ version this year through this previously announced joint venture in the UAE. With an award-winning design that promises speed and agility, XTURISMO™ is poised to redefine consumers' perception of personal mobility.As the technology and government bodies continue to advance the air mobility sector following the recently granted approvals, the Company looks forward to realizing revenues after receiving many inquiries through its online platforms.XTURISMO™ 2023 Edison Award RecipientXTURISMO won Third Place at Edison Awards for Best New Product for Air Mobility in 2023.The Edison Best New Product™ award brings a unique distinction to a product or service by recognizing all the intellectual capital, research, planning, engineering, design, strategy, and marketing that has gone into making a new product or service. The Edison Award recognizes the persistence and excellence that characterized Thomas Edison's work.For more information about this award, visit Edison Awards.More Information about XTURISMO™Official website: https://AERWINS.us/XTURISMO/Video: https://www.youtube.com/channel/UCPP6jQKTqCRXpAmyfZ-94VQInstagram: https://www.instagram.com/XTURISMO_official/Media Contact: [email protected] AERWINS Technologies Inc.Under the mission statement Changing Society from the Top Down, AERWINS Technologies has developed and released an air mobility platform and the XTURISMO™ hovercraft. AERWINS will continue to innovate, unbound by existing ideas, to build and deploy systems necessary to realize an air mobility society. For more information, please visit https://AERWINS.us/.Important Notice Regarding Forward-Looking Statements.This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as "believe," "intend," "expect," "anticipate," "plan," "potential," "continue," or similar expressions. Such forward-looking statements include risks and uncertainties, and important factors could cause results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks, and uncertainties are discussed in AERWINS' filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown uncertainties and other factors which are, in some cases, beyond AERWINS' control which could, and likely will, materially affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects AERWINS' current views concerning future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. AERWINS assumes no obligation to publicly update or revise these forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.[1] City Tv News Release[2]Mckinsey & Company Article[3] Subject to government regulations and permissions[4] Morgan Stanley Research Reports titled "eVTOL/Urban Air Mobility TAM Update: A Slow Take-Off, But Sky's the Limit," dated May 6, 2021.To view the source version of this press release, please visit https://www.newsfilecorp.com/release/173757

Newsfile

Aerwins Patented Air Mobility Platform to Revolutionize Low Altitude Flights for Vehicles Opening Flight Possibilities for Electric Vehicles

https://finance.yahoo.com/news/aerwins-patented-air-mobility-platform-141500336.html

21ee4a99-dc1a-3e10-975b-1f88ef752c8e

AWIN

In this piece, we will take a look at the fifteen worst performing technology stocks in 2023. If you want to skip a background on the tech sector and particularly the stock market, then take a look at 5 Worst Performing Tech Stocks in 2023. When it comes to mega cap stocks, the technology sector has been the best performing segment on the stock market during the first half of 2023. This sharp rebound came after the sector tumbled during the turbulent economic environment last year that saw significantly higher fuel prices lead to soaring inflation. During this turmoil, the consumer technology sector was hit particularly hard, with chip firms for instance finding it difficult to ship sufficient products into the market. The worsening consumer environment was dealt an added blow when the Federal Reserve acted fast to combat inflation by rapidly increasing interest rates. Such a decision has several broad implications, one of which was a disruption in the bond market which made fresh debt more lucrative than previously issued securities.However, while dismay in the bond caused mayhem in the banking industry in March, the technology sector soared to reverse all of its 2022 losses and add a little bit of gains on top. For instance, the S&P 500 Information Technology stock index had stood at 3,107 points in December 2021, and after dropping to roughly two thousand points at the bottom in October 2022, went on to touch 3,167 in mid July 2023. Technology stocks, defying all expectations, had performed well even when interest rates had touched multi decade highs. This trend has started to taper off a bit during the current quarter, as the index is down by a marginal 1.74% as of early August. Yet, the S&P technology index and the NASDAQ 100's year to date returns are roughly the same, with the former trailing the latter by 100 basis points. Some notable firms that rode the tech wave in H1 2023 are Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), Meta Platforms, Inc. (NASDAQ:META), and Tesla, Inc. (NASDAQ:TSLA).Story continuesThe tilt of the 2023 stock rally towards big tech becomes clear when we look at the S&P SmallCap 600 Capped Information Technology index. As compared to the 39.59% in returns offered by the technology index, the small cap index has yielded 17.7% - missing out on the premium that mega cap stocks enjoy due to their liquidity, brand awareness, and interest in emerging new technologies such as artificial intelligence. And, not all stocks have delivered strong returns in 2023 either. One of the worst performing firms in terms of stock market performance has been the penny stock Akumin Inc. (NASDAQ:AKU). A nano cap stock, Akumin is a medical services provider with services such as magnetic resonance imaging (MRI) and computational tomography (CT) scans. Its shares have been on a downturn since 2021 and currently trade for less than a dollar.If Akumin Inc's 75% year to date drop is too less for your taste, then consider a stock that is down 99.38% in 2023. Allarity Therapeutics, Inc. (NASDAQ:ALLR), a firm that is developing treatments for breast cancer, has seen a woeful 2023. A decision to announce a reverse stock split and an attempt to raise $11 million in equity while it was worth $4 million on the stock market are some events that have colored its share price red this year. The stock tanked by nearly a quarter in one day after the $11 million capital raise decision. This announcement had come after the firm had delayed its cancer trials due to a lack of enrollment, and year to date, the stock is down 99.38% to currently trade at $2.24. Safe to say, Allarity is not having a good day on the stock market.As for the outlook for the technology sector for the rest of this year, much depends on the future course of action taken by the Federal Reserve and the ability of the economy to withstand high interest rates for a longer period. While Q2 2023 economic growth remains robust, the full impacts of the interest rate hikes might not have rippled through the economy so far, and agencies such as Fitch continue to forecast a recession despite others such as Bank of America Corporation (NYSE:BAC) and JPMorgan Chase & Co. (NASDAQ:JPM) having revisited their earlier forecasts predicting recession.With these details in mind, let's take a look at the worst performing technology stocks in 2023, out of which the particularly ill fated ones are Satixfy Communications Ltd. (NYSE:SATX), AERWINS Technologies Inc. (NASDAQ:AWIN), and Ascent Solar Technologies, Inc. (NASDAQ:ASTI).15 Worst Performing Tech Stocks in 2023Our MethodologyTo compile our list of the worst performing technology stocks in 2023, we ranked all technology firms according to their year to date performance and then picked the top 15 of them in terms of year-to-date losses. While we could have narrowed the list down by market capitalization, for instance by setting minimum market capitalization, this was avoided since the list would miss out on some firms with rather sizeable percentage point share price drops.Worst Performing Tech Stocks in 202315. Meta Materials Inc. (NASDAQ:MMAT)Year To Date Losses As Of August 6, 2023: 78.18%Meta Materials Inc. (NASDAQ:MMAT) is a materials science firm that sells products used in MRI scanners and other applications. The stock last tumbled in April when it announced a new public placement.During Q1 2023, nine of the 943 hedge funds polled by Insider Monkey had invested in the firm. Meta Materials Inc. (NASDAQ:MMAT)'s biggest investor is Israel Englander's Millennium Management with a $604,000 stake.Along with AERWINS Technologies Inc. (NASDAQ:AWIN), Satixfy Communications Ltd. (NYSE:SATX), and Ascent Solar Technologies, Inc. (NASDAQ:ASTI), Meta Materials Inc. (NASDAQ:MMAT) is one of the worst performing tech stocks this year.14. AgileThought, Inc. (NASDAQ:AGIL)Year To Date Losses As Of August 6, 2023: 80.81%AgileThought, Inc. (NASDAQ:AGIL) is an American technology consulting firm. The firm has been in a bit of turmoil as of late, as its chief financial officer resigned in July and a replacement was already in place.By the end of this year's first quarter, seven of the 943 hedge funds part of Insider Monkey's database had bought a stake in AgileThought, Inc. (NASDAQ:AGIL). Out of these, the firm's largest shareholder is Israel Englander's Millennium Management with a stake worth $629,000, which was a new position added during the quarter.13. Movella Holdings Inc. (NASDAQ:MVLA)Year To Date Losses As Of August 6, 2023: 81.6%Movella Holdings Inc. (NASDAQ:MVLA) is a technology consulting firm that provides corporate customers with services to integrate technologies such as artificial intelligence into their business operations. The stock tanked in February after it listed its shares on the NASDAQ exchange by merging with a SPAC.17 of the 943 hedge funds polled by Insider Monkey for their Q1 2023 shareholdings had invested in Movella Holdings Inc. (NASDAQ:MVLA).12. Verb Technology Company, Inc. (NASDAQ:VERB)Year To Date Losses As Of August 6, 2023: 83.44%Verb Technology Company, Inc. (NASDAQ:VERB) is a software as a service (SaaS) company whose platform allows video based software products such as webinars and other solutions. Its financial turmoil is evident from the fact that it sold its sales division assets in June to make room for core technology development.Insider Monkey dug through 943 hedge funds for their March quarter of 2023 investments and found out that two had invested in the firm. Out of these, Verb Technology Company, Inc. (NASDAQ:VERB)'s largest investor is Hal Mintz's Sabby Capital with a $1 million stake.11. WiSA Technologies, Inc. (NASDAQ:WISA)Year To Date Losses As Of August 6, 2023: 87.58%WiSA Technologies, Inc. (NASDAQ:WISA) is a small electronics firm that supplies chip products for consumer electronics audio systems. It had a solid first quarter that saw it heavily beat analyst EPS estimates, but the shares have been on a downward spiral since February.During 2023's March quarter, only one hedge fund out of the 943 that were part of Insider Monkey's database had invested in the firm. This lone WiSA Technologies, Inc. (NASDAQ:WISA) investor is Hal Mintz's Sabby Capital with a $180,998 investment.10. Marti Technologies, Inc. (NYSE:MRT)Year To Date Losses As Of August 6, 2023: 88.93%Marti Technologies, Inc. (NYSE:MRT) is a Turkish company that operates a fleet of vehicles for users to utilize for their transportation needs. The firm listed its shares for trading on the NYSE through a SPAC merger on July 11th, and the shares fell by 47.4% during the first day of trading alone.9. Inpixon (NASDAQ:INPX)Year To Date Losses As Of August 6, 2023: 89.63%Inpixon (NASDAQ:INPX) is a technology company that enables users to scan their indoor environments and manage the space by using technology. The firm has announced that it is merging with an aircraft design company and the transaction is expected to close by Q4 2023.After sifting through 943 hedge fund portfolios for this year's first quarter, Insider Monkey discovered that one had held Inpixon (NASDAQ:INPX)'s shares. This investor was Steven Cohen's Point72 Asset Management which owned $10,750 worth of shares.8. WeTrade Group, Inc. (NASDAQ:WETG)Year To Date Losses As Of August 6, 2023: 89.72%WeTrade Group, Inc. (NASDAQ:WETG) is a Chinese technology company that offers payment processing and other services to small companies and individuals. The stock is down 89.72% year to date, with some of the performance likely tied to China's weak economic environment.Two out of the 943 hedge funds surveyed by Insider Monkey had held a stake in WeTrade Group, Inc. (NASDAQ:WETG) as of Q1 2023.7. Near Intelligence, Inc. (NASDAQ:NIR)Year To Date Losses As Of August 6, 2023: 90.40%Near Intelligence, Inc. (NASDAQ:NIR) is a cloud company that provides customer management and marketing services. The stock was rated Speculative Buy by Benchmark in July 2023 and Outperform by Northland in April 2023.As of March 2023, nine of the 943 hedge funds surveyed by Insider Monkey had bought a stake in Near Intelligence, Inc. (NASDAQ:NIR).6. Powerbridge Technologies Co., Ltd. (NASDAQ:PBTS)Year To Date Losses As Of August 6, 2023: 92.21%Powerbridge Technologies Co., Ltd. (NASDAQ:PBTS) is a Chinese software company that provides business customers with a platform to manage their financial, operational, and manufacturing platforms. Its shares are currently under scrutiny by the NASDAQ exchange, and the firm is shaking things up as it announced the establishment of a new agricultural technology joint venture in July 2023.Satixfy Communications Ltd. (NYSE:SATX), Powerbridge Technologies Co., Ltd. (NASDAQ:PBTS), AERWINS Technologies Inc. (NASDAQ:AWIN), and Ascent Solar Technologies, Inc. (NASDAQ:ASTI) are some of the worst performing technology stocks in 2023. Click to continue reading and see 5 Worst Performing Tech Stocks in 2023. Suggested Articles:15 Worst Performing NASDAQ Stocks In 202320 Worst Performing Economies in 202310 Oversold NASDAQ Stocks to BuyDisclosure: None. 15 Worst Performing Tech Stocks in 2023 is originally published on Insider Monkey.

Insider Monkey

15 Worst Performing Tech Stocks in 2023

https://finance.yahoo.com/news/15-worst-performing-tech-stocks-121144194.html

bbd2838b-c3ad-3bc9-8be3-1ee7d63ea1cf

AWK

CAMDEN N.J., September 08, 2023--(BUSINESS WIRE)--American Water (NYSE: AWK), the largest regulated water and wastewater utility company in the U.S., announced today that four representatives will join regulators, consumer advocates and other water professionals at the National Association of Water Companies ("NAWC") 2023 Water Summit, taking place from September 11-13, 2023 in Atlanta, Ga. American Water will have a leading presence at the conference, participating in several panels.Nick Santillo, Senior Vice President and Chief Information Officer, will contribute to the cybersecurity discussion through his panel, Uncharted Waters. Santillo, along with other expert cybersecurity panelists, will examine living in a hyperconnected world where normal day-to-day operations depend on a digital connection and protecting the technology used to keep our water safe.Cheryl Norton, Executive Vice President and Chief Operating Officer, is moderating a panel discussion titled Yoga Time. This panel will focus on resiliency and how to quickly adapt to maintain safe, reliable water service and business continuity in a constant state of change.Lynda DiMenna, Vice President and Chief Environmental & Safety Officer, is taking part in a panel titled You are What You…Drink to share more about American Water’s ongoing efforts on emerging compounds.Mike Doran, Senior Vice President and Deputy Chief Operating Officer, will participate in a panel called Pulling Back the Curtain. Doran, along with other NAWC member companies and state utility regulators, will discuss emerging issues and enduring themes across the water sector.The NAWC 2023 Water Summit is an annual gathering of industry executives, policy experts, consumer advocates and regulators to discuss current and emerging issues facing the industry. For more information and the full agenda, visit https://www.nawcwatersummit.com.About American WaterAmerican Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.Story continuesAs one of the fastest growing utilities in the U.S., American Water expects to invest $30 to $34 billion in infrastructure repairs and replacement, system resiliency and regulated acquisitions over the next 10 years. The company has a long-standing history of executing its core operations, aligned with sustainable best practices, through its commitments to safety, affordability, customer service, protecting the environment, an inclusive workforce and strengthening communities.American Water has been recognized on the 2023 Bloomberg Gender-Equality Index for the fifth consecutive year, ranked 18th on Barron’s 100 Most Sustainable U.S. Companies 2023 List, earned the U.S. Department of Homeland Security SAFETY Act designation and U.S. Environmental Protection Agency’s WaterSense® Excellence Award, among additional state, local and national recognitions.For more information, visit amwater.com and join American Water on LinkedIn, Facebook, Twitter and Instagram.View source version on businesswire.com: https://www.businesswire.com/news/home/20230908413307/en/ContactsAlicia BarbieriManager, Corporate CommunicationsAmerican Water(856) [email protected]

Business Wire

American Water to Contribute Expertise to Several Panels at the National Association of Water Companies 2023 Water Summit

https://finance.yahoo.com/news/american-water-contribute-expertise-several-155000705.html

3db55153-1eb3-3021-b28a-03812e93fd88

AWK

American Water Works AWK announced that its unit, Pennsylvania American Water, will invest $22 million to upgrade its Hays Mine Water Treatment Plant. The company will replace infrastructure nearing the end of its useful life.The upgrades in the plant’s safety, controls and equipment will ensure the continuous supply of high-quality water to AWK’s 132,000 customers in southern Allegheny County. Pennsylvania American Water will change 16 water filters, caustic soda tanks and solid handling equipment to keep the treatment plant running efficiently.The Pennsylvanian unit has been upgrading and maintaining its water and wastewater infrastructure and has invested nearly $490 million in 2022 for infrastructure upgrades. As of now, the company has invested $85 million in 2023 to improve its water and sewer systems in Allegheny, Fayette and Washington counties, including installing 33 miles of new water mains to enhance service reliability, fire protection and rehabilitating 3.6 miles of aging sewer mains.  Proper infrastructure maintenance allows Pennsylvania American Water to serve its 2.3 million customers efficiently.Aging Infrastructures Need InvestmentPer the U.S. Environmental Protection Agency, investments of $473 billion and $271 billion are necessary to maintain and expand drinking water and wastewater pipelines, respectively, to meet demand over the next 20 years. Water infrastructure, like storage tanks and purifying units, needs maintenance at proper intervals.The repair and upgrade of other infrastructures like overhead storage tanks, treatment plants and water reservoirs are quite essential to providing uninterrupted 24x7 services to customers.Per the ASCE report, nearly 6 billion gallons of treated water is lost each day in the United States due to water main breaks every two minutes. This wastage of potable water is increasing the cost of operations for water utilities.Miles of aging pipelines essentially require repairs and upgrades to maintain quality water service. A delay in repair could cause frequent disruptions in the 24x7 supply of potable water and sewer services.Story continuesUtilities Making InvestmentsWater utilities like Essential Utilities WTRG, California Water Service Group CWT and Middlesex Water MSEX, among others, have well-chalked-out capital investment plans to strengthen infrastructure.Essential Utilities plans to invest $1.1 billion in 2023 and $3.3 billion through 2025 to improve the water and natural gas systems and better serve customers using improved information technology. California Water Service plans to invest more than $625 million in capital expenditures through 2024. Middlesex Water plans to invest $266 million during 2023-2025 to strengthen its water and wastewater infrastructure and provide services to customers in a safe, reliable and efficient manner.The Zacks Consensus Estimate for WTRG and CWT’s 2023 earnings indicates year-over-year growth of 5.1% and 7.9%, respectively.  MSEX’s 2023 earnings estimates have moved up 0.5% in the past 60 days.Price PerformanceOver the last six months, American Water Works’ stock gained 1.2% compared with the industry’s growth of 0.5%. Zacks Investment ResearchImage Source: Zacks Investment ResearchZacks RankAmerican Water currently has a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAmerican Water Works Company, Inc. (AWK) : Free Stock Analysis ReportCalifornia Water Service Group (CWT) : Free Stock Analysis ReportMiddlesex Water Company (MSEX) : Free Stock Analysis ReportEssential Utilities Inc. (WTRG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

American Water's (AWK) Pennsylvania Arm to Invest in Upgrades

https://finance.yahoo.com/news/american-waters-awk-pennsylvania-arm-170700746.html

fcfaf370-ef0c-311b-b600-722633b99aa9

AWX

WARREN, Ohio, June 28, 2023 /PRNewswire/ -- Ronald E. Klingle, Chairman of the Board of Avalon Holdings Corporation (NYSE Amex:AWX) today announced that effective June 26, 2023, Michael J. Havalo, has been hired as Chief Financial Officer and Treasurer.Avalon Holdings Corporation Logo (PRNewsfoto/Avalon Holdings Corporation)Mr. Havalo has previously served as the Chief Financial Officer and Treasurer at McDonald Steel Corporation. McDonald Steel Corporation is a world leader in precision engineered hot rolled special steel shapes.  Prior to McDonald Steel Corporation, Mr. Havalo worked for Hill, Barth & King, LLC, public accounting firm.  Mr. Havalo received his Bachelor of Business Administration degree in Accounting from Youngstown State University and has been a Certified Public Accountant since 2010.Avalon Holdings Corporation provides waste management services to industrial, commercial, municipal and governmental customers in selected northeastern and midwestern U.S. markets. Avalon Holdings Corporation also owns the Avalon Golf and Country Club, which operates a world-class country club and one of the premier resorts in the United States, The Grand Resort. CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/avalon-holdings-corporation-announces-organizational-changes-301865632.htmlSOURCE Avalon Holdings Corporation

PR Newswire

AVALON HOLDINGS CORPORATION ANNOUNCES ORGANIZATIONAL CHANGES

https://finance.yahoo.com/news/avalon-holdings-corporation-announces-organizational-113300943.html

bd82a2f5-fbe1-30b3-b08b-d8445daae758

AWX

WARREN, Ohio, Aug. 11, 2023 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2023.Net operating revenues in the second quarter of 2023 were $20.6 million compared with $19.5 million in the second quarter of 2022. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $0.2 million in the second quarter of 2023 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the second quarter of 2022. For the second quarter of 2023, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.04 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.12 in the second quarter of 2022.For the first six months of 2023, net operating revenues were $39.0 million compared with $33.8 million for the first six months of 2022. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of approximately $1.8 million in the first six months of 2023 compared with net loss attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the first six months of 2022. For the first six months of 2023, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.47 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.20 in the first six months of 2022.Avalon Holdings Corporation provides waste management services to industrial, commercial, municipal and governmental customers in selected northeastern and midwestern U.S. markets, captive landfill management services and salt water injection well operations. Avalon Holdings Corporation also owns Avalon Resorts and Clubs Inc., which includes the operation of a hotel and its associated resort amenities, four golf courses and related country clubs and a multipurpose recreation center.Story continues AVALON HOLDINGS CORPORATION AND SUBSIDIARIESCondensed Consolidated Statements of Operations (Unaudited)(in thousands, except for per share amounts)Three Months EndedSix Months Ended June 30,June 30,2023202220232022Net operating revenues:Waste management services$          10,298$          10,717$          22,950$          20,056Food, beverage and merchandise sales3,9953,5635,9685,228Other golf and related operations6,3285,24210,0778,547Total golf and related operations10,3238,80516,04513,775Total net operating revenues20,62119,52238,99533,831Costs and expenses:Waste management services operating costs8,2248,49218,60416,070Cost of food, beverage and merchandise1,8111,5252,8342,273Golf and related operations operating costs6,9875,73111,8239,786Depreciation and amortization expense9558421,8951,671Selling, general and administrative expenses2,5012,3405,0304,605Operating income (loss)143592(1,191)(574)Other income (expense):Interest expense(529)(274)(1,044)(552)Other income, net205119286183Income (loss) before income taxes(181)437(1,949)(943)Provision for income taxes23335453Net income (loss)(204)404(2,003)(996)Less net loss attributable to non-controlling interest in subsidiary(52)(80)(174)(218)Net income (loss) attributable to Avalon Holdings Corporation common shareholders$             (152)$               484$           (1,829)$             (778)Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:Basic net income (loss) per share$            (0.04)$              0.12$            (0.47)$            (0.20)Diluted net income (loss) per share$            (0.04)$              0.12$            (0.47)$            (0.20)Weighted average shares outstanding - basic 3,8993,8993,8993,899Weighted average shares outstanding - diluted3,8993,9223,8993,899 AVALON HOLDINGS CORPORATION AND SUBSIDIARIESCondensed Consolidated Balance Sheets (Unaudited)(in thousands)June 30,December 31,20232022AssetsCurrent Assets:Cash and cash equivalents$               2,217$               1,624Accounts receivable, net11,08111,127Unbilled membership dues receivable1,083599Inventories1,8301,461Prepaid expenses1,0461,172Other current assets15105Total current assets17,27216,088Property and equipment, net57,11256,805Property and equipment under finance leases, net5,1875,001Operating lease right-of-use assets1,2931,386Restricted cash10,45010,426Noncurrent deferred tax asset88Other assets, net3536Total assets$             91,357$             89,750Liabilities and EquityCurrent liabilities:Current portion of long term debt$                  520$                  503Current portion of obligations under finance leases139115Current portion of obligations under operating leases423424Accounts payable11,61410,995Accrued payroll and other compensation1,171989Accrued income taxes91103Other accrued taxes507540Deferred membership dues revenue5,7373,643Other liabilities and accrued expenses1,8911,544Total current liabilities22,09318,856Long term debt, net of current portion29,48929,758Line of credit2,2001,550Obligations under finance leases, net of current portion463381Obligations under operating leases, net of current portion871962Asset retirement obligation100100Equity:Total Avalon Holdings Corporation Shareholders' Equity36,66238,490Non-controlling interest in subsidiary(521)(347)Total shareholders' equity36,14138,143Total liabilities and equity$             91,357$             89,750 CisionView original content:https://www.prnewswire.com/news-releases/avalon-holdings-corporation-announces-second-quarter-results-301898723.htmlSOURCE Avalon Holdings Corporation

PR Newswire

AVALON HOLDINGS CORPORATION ANNOUNCES SECOND QUARTER RESULTS

https://finance.yahoo.com/news/avalon-holdings-corporation-announces-second-210100985.html

7f2a2931-2be4-361e-ae31-41407931b694

AXDX

Accelerate Diagnostics (AXDX) came out with a quarterly loss of $2.36 per share versus the Zacks Consensus Estimate of a loss of $1.50. This compares to loss of $2.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -57.33%. A quarter ago, it was expected that this maker of systems that diagnose drug-resistant infections would post a loss of $1.70 per share when it actually produced a loss of $1.70, delivering no surprise.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Accelerate Diagnostics , which belongs to the Zacks Medical - Instruments industry, posted revenues of $2.92 million for the quarter ended June 2023, missing the Zacks Consensus Estimate by 26.98%. This compares to year-ago revenues of $3.86 million. The company has not been able to beat consensus revenue estimates over the last four quarters.The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.Accelerate Diagnostics shares have lost about 4.4% since the beginning of the year versus the S&P 500's gain of 16.4%.What's Next for Accelerate Diagnostics?While Accelerate Diagnostics has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.Story continuesAhead of this earnings release, the estimate revisions trend for Accelerate Diagnostics: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$1.40 on $4.3 million in revenues for the coming quarter and -$5.90 on $15.9 million in revenues for the current fiscal year.Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Instruments is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.One other stock from the same industry, Hyperfine, Inc. (HYPR), is yet to report results for the quarter ended June 2023. The results are expected to be released on August 14.This company is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of +48.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.Hyperfine, Inc.'s revenues are expected to be $2.6 million, up 69.9% from the year-ago quarter.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAccelerate Diagnostics, Inc. (AXDX) : Free Stock Analysis ReportHyperfine, Inc. (HYPR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Accelerate Diagnostics (AXDX) Reports Q2 Loss, Misses Revenue Estimates

https://finance.yahoo.com/news/accelerate-diagnostics-axdx-reports-q2-213011795.html

51e252a3-0cc0-3c1f-9533-96d38658c6ae

AXDX

ParticipantsDavid Patience; CFO, Principal Financial Officer & Principal Accounting Officer; Accelerate Diagnostics, Inc.Jack Phillips; CEO, President & Director; Accelerate Diagnostics, Inc.Laura Pierson; IR Officer; Accelerate Diagnostics, Inc.Conner ChamberlainDustin G. Scaringe; Research Analyst; William Blair & Company L.L.C., Research DivisionPresentationOperatorGood day, and welcome to the Accelerate Diagnostics, Inc. 2023 Q2 Results Conference Call.(Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Laura Pierson, of Accelerate Diagnostics. Please go ahead.Laura PiersonBefore we begin, it is important to share that information presented during this call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include projections, statements about our future and those that are not historical facts. All forward-looking statements that are made during this conference call are subject to risks, uncertainties and other factors that could cause our actual results to differ materially. These are discussed in greater detail in our annual report on Form 10-K for the year ended December 31, 2022, and other reports we file with the SEC. It is my pleasure to now introduce the company's President and CEO, Jack Phillips.Jack PhillipsThank you, Laura. Good afternoon, and welcome to our Second Quarter Earnings Call. Today's call will focus on our second quarter results and include several updates on our strategic priorities. My commentary will focus on our top 3 strategic priorities. First, I would like to review our innovation advancements with our next-generation susceptibility platform Wave. Our second priority is to continue to grow market share through our Becton Dickinson partnership with Pheno and our sample preparation instrument ARC.And finally, continuing to build financial strength, which I will touch on closing out our debt restructuring transaction and reducing our cash burn.Before I discuss these important strategic priorities further, I'd like to hand it over to our Chief Financial Officer, David Patience, to review our preliminary second quarter financial results. David?Story continuesDavid PatienceThank you, Jack. And good afternoon, everyone. In the second quarter, the U.S. contracted 13 new Pheno instruments. We ended the quarter with a revenue-generating installed base of 339 Pheno instruments and a backlog of 70 instruments pending implementation. Net sales were approximately $2.9 million in the second quarter and $5.7 million year-to-date. This compares to approximately $3.9 million and $6.8 million for the same period in 2022.The decrease in revenues were driven by a few large capital deals in the prior period, which did not repeat in the current quarter. Cost of goods sold were $2.1 million and $3.9 million year-to-date, resulting in a gross margin of 27% for the quarter and 32% year-to-date. This compares to cost of goods sold of $2.8 million and $4.9 million and gross margin of 28% for the prior period. The decline in cost of goods sold was driven by fewer Pheno capital instruments as discussed as well as a reduction in equity-based compensation. Selling, general and administrative expenses for the quarter were $7.6 million and $17.7 million year-to-date. This compares to $11.5 million and $22.2 million for the prior period. SG&A expenses, excluding noncash stock-based compensation, were $6.3 million for the quarter and $16.5 million year-to-date. This compared to $8.3 million and $16.5 million for the prior period.The decrease in SG&A expenses for the current quarter were due to lower employee-related expenses, while year-to-date figures included nonrecurring debt restructuring related transaction expenses. Research and development expense for the quarter was $5.8 million and $12.8 million year-to-date. This compared to $7.6 million and $13.6 million for the prior period. R&D expenses, excluding noncash stock-based compensation was $5.6 million and $11.9 million year-to-date. This compares to $7.0 million and $12.7 million for the prior period. The decrease in R&D expenses was primarily driven by reductions in consulting spend as our Wave program continues to advance through development.Our GAAP net loss was $26 million for the quarter and $42.8 million year-to-date, resulting in a net loss per share of $2.36 and $4.11, respectively. Please note, on July 11, we effected a 10-for-1 reverse stock split of the company's outstanding shares of common stock. All shares and per share amounts have been retroactively adjusted for all periods presented to reflect the reverse stock split. Our nonoperating expenses for the quarter were approximately $13.4 million, which included several notable noncash related expenses for our debt restructuring transaction. Our net loss from operations, excluding noncash stock-based compensation expense was $10.9 million for the quarter and $26.4 million year-to-date.Net cash used was $15.2 million for the quarter and $28.9 million year-to-date, excluding cash flows from financing. Notable drivers of increased cash burn for the quarter and year-to-date were professional and legal fees related to our debt restructuring transactions. We anticipate our quarterly burn to reduce in the third quarter and thereafter. We ended the quarter with cash and equivalents of $30.7 million. Now back to you, Jack.Jack PhillipsThanks, David. Now turning to our strategic priorities. Delivering innovation with our Wave platform, growing market share through our partnership with BD and finally, building our financial strength. First, I will review the importance of our innovation with our next-generation susceptibility platform, Wave. To best understand our overall market opportunity, it's important to understand the total available testing market. Wave will be performing antibiotic susceptibility testing on positive blood cultures or PBC and isolated colonies or sometimes referred to as isolates.Positive blood cultures, which are taken directly from a PBC bottle are approximately 5% to 8% of any given labs testing volume. While PBC samples are lower volume, these samples are arguably the most critical samples in microbiology because they provide actionable results for the patients who are in critical condition due to a bloodstream infection. Isolates, on the other hand, can be both high acuity and low acuity samples and represent nearly all other antibiotic susceptibility testing within the lab. Isolates are microorganisms, which come from any sample and are separated or isolated from clinical samples, such as respiratory, GI, urine, just to name a few. Annually, there are over 130 susceptibility tests performed from isolated colonies and over 7 million tests from PBC samples globally. Leveraging our deep experience in rapid susceptibility testing, we worked with customers to develop our next-generation platform, Wave, to build on our PBC testing menu and include the much higher volume segment of isolate testing on a single platform.The Wave system will offer a comprehensive test menu covering all susceptibility samples catering to diverse hospital antibiotic formularies and incorporating essential features to optimize workflow across laboratories. With full random access for continuous sample loading, Wave scalability addresses the needs of various health care settings from small community hospitals to large academic centers and reference labs. Speed is paramount in susceptibility testing and Wave's swift results will establish a new standard for turnaround time, empowering clinicians to respond within the same shift. Moreover, Wave's competitive cost of goods sold ensures it will compete effectively with incumbent platforms, aligning with existing lab budgets. Over the past year, we have continued to validate Wave's critical product specifications with key clinical and lab stakeholders. Prospective customers confirmed our platform approach, rapid turnaround times enable same shift results and our planned extensive menu addresses formulary requirements. Our gram-negative PBC algorithms are near completion. We are running 1,000 Wave cards a week on our fleet of alpha AST modules with more than 100 million images taken to date to support algorithm development, performance is meeting our expectations. Our algorithms comprehend not only growth metrics of microorganisms, but also morphological contributions to each drug response, enabled by our proprietary dynamic holographic imaging. This approach enables early and real-time identification of resistant clones, which ensures both accurate and timely susceptibility test reporting. We achieved this with our technology's ability to focus on a single cell morphology in real-time. These exciting program developments confirm Wave's ability to deliver comprehensive susceptibility testing in microbiology labs. Our recent progress with the Wave program reinforces our commitment to providing preclinical study readouts by year-end, followed closely by the initiation of clinical studies for subsequent FDA submissions. Now turning to our second strategic priority, which is to continue to grow market share through our Becton, Dickinson partnership. We continue to track our progress through 2 key metrics: commercial reach, which is tracked by the number of new sales opportunities into the funnel; and sales' effectiveness, which is measured by funnel progression and velocity to eventual close. The U.S. commercial teams continue to integrate as evidenced by the growth of the combined portfolio's new opportunities. Thus, commercial reach continues to be a strength with consistent growth of new opportunities coming into the funnel. After just 7 months into the partnership being launched, we are pleased with the progress of the BD commercial team's ability to position Pheno within the breadth of a combined bloodstream infection portfolio. Additionally, in the second quarter, we saw more opportunities advance further in the sales funnel. Sales velocity is notably increasing with a couple of account closes in less than 90 days of the opportunity being created. We are encouraged to see BD's strong relationships being leveraged into quick wins for the partnership. The 13 newly contracted Phenos for the quarter was our strongest quarter since 2021, and we continue to expect to deliver incremental quarterly placement growth. As mentioned in our prior quarter earnings calls, our EMEA commercial effort is more complicated given tender-driven markets which has led to a delay. We continue to work collectively to roll out a simplified contract, which will allow BD to represent the full product portfolio in tenders. This approach should improve both contracting and adoption rates as it will allow us to win not only new tender opportunities, but also be added to existing tenders. We remain enthusiastic about our automated Arc System, which rapidly cleans up PBC samples to enable direct MALDI microbial identification to eliminate the overnight culture step. We are currently seeing growing interest in the EMEA market through our BD partnership. Further, in the U.S., we are poised to initiate clinical trials in the short term to ensure a Class II 510(k) system is launched next year. In summary, the BD partnership is progressing, and we remain encouraged by the strong sales metrics and improved closes in the quarter. We expect this momentum to translate into increased placements and future revenues as we continue to bring new customers live. Lastly, on our financial strength, we announced the closing of our debt restructuring late in the second quarter, which allowed us to extend our convertible debt maturities out 3.5 years. It simplified our capital structure and brought in new capital. Moving forward, as discussed in our prior quarter, we are focusing on improving operational efficiency and further reducing cash burn. I would now be happy to answer questions from our analysts. And should others on the call have any questions not addressed, we would welcome you to send these questions or request a follow-up meeting to [email protected]. Thank you.Question and Answer SessionOperator(Operator Instructions)And today's first question comes from Alex Nowak with Craig-Hallum.Conner ChamberlainThis is Conner Chamberlain on for Alex. First off, can you give us the latest update on the pathway for Arc approval? I'm assuming a de novo 510(k), but -- and feeding off that, what are some studies you need to run with this as well.Jack PhillipsConner, thanks for the question, sure thing. So we are well underway with our planning for a clinical trial for Arc in the U.S. The clinical trial hasn't started yet.But we're in the process of identifying the sites. We have a clinical trial partner in place to help us manage that clinical trial as well. In addition, just over the past couple of weeks, I've reviewed the clinical trial design as well and that we're ready to move forward with.So things are coming into place fairly rapidly with everything we need to do to basically embark on a clinical trial. We expect the clinical trial to be frankly, pretty straightforward given what we're actually going to be doing the clinical study on, which is downstream MALDI. And then we're still looking to submit the successful clinical study, and a successful submission to the FDA by year-end. And hopefully, a rapid approval shortly thereafter.Conner ChamberlainWhat's the pathway for Wave approval? What clinical studies do we need on that? And do you have any time line on that as well?Jack PhillipsYes. So sure. So on WAVE, as we mentioned in our prepared remarks, we're making really good progress in many areas with regard to Wave. As we get closer to a clinical trial, first thing I would mention is we're first going to be proceeding forward with a preclinical study or trial ahead of that just to confirm the results that we're seeing right now in the studies that we're doing relative to algorithm development, that's happening. The preclinical study we expect to happen before the end of the year, be complete with that.We will be -- then we also have, again, a partner already secured to help manage our clinical study. And we expect that clinical study to start shortly thereafter the preclinical study. So the clinical trial, I should say, will start shortly thereafter, likely in Q1 of '24 is what we're shooting for. It will be a gram-negative-focused positive blood culture study and then we'll be preparing in parallel for a submission on positive blood culture gram-positive and then also isolates.As a reminder, the system will -- for Wave will do really is set to do isolates as well as positive blood culture, and we'll be rapidly seeking to get approval for all those type of combinations.Conner ChamberlainAnd then just one more. Can you give us an update on the competitive environment for these rapid microbiology systems?Jack PhillipsYou broke up a little bit there, but I think you said the competitive arena. Is that what you're talking about?Conner ChamberlainJust an update on the competitive environment for these rapid microbiology systems.Jack PhillipsSure. That's what I thought you said. Sure, no problem. So I mean, where we're at right now, I mean, clearly, embedded with BD and our partnership is going very well, selling a complete bloodstream infection solution from end-to-end, and that continues to go very well. And the solution that we have with Pheno continues to resonate in the market, rapid -- positive -- rapid identification with AST, AST only as well as Arc not launched in the U.S., of course, but in Europe, and that continues to resonate very well.Yes, we -- as we expected, emerging competitors are coming. We've seen them in Europe a bit, not so much in the U.S. just because of clearance time lines. And we're very confident in our menu. We're very confident in the 80-plus studies that we already have published on Pheno, the confidence that our current customers have in Pheno. So while I think competition, overall, is a very good thing for any market actually. It will make us better, make us stronger. And in essence, I think, we're well suited, especially with our partnership with BD to compete with the emerging competitors.OperatorThe next question is from Andrew Brackmann with William Blair.Dustin G. ScaringeThis is Dustin on for Andrew. First question on the BD partnership. Just wondering what the status is on cross-training of the sales team there and how the synergies in the sales team there is translating into some reductions in operating expenses and if those are tracking to your thoughts at the start of the partnership.Jack PhillipsPerfect. I'll take the first end of that and let David take the second part of the question around cash burn reductions and so forth. So first of all, let me touch first on the U.S. We are fully trained -- we fully trained the entire U.S. organization within BD. And just a reminder, I mean, Becton Dickinson is one of the largest microbiology and diagnostic companies in the world. So they have a lot of sales reps, a lot of marketing, regions, et cetera. So it's a comprehensive organization.We've had a very successful trainings in the U.S. We have all the marketing materials in their hands. We have ongoing training as well. So we've done initial training and then we're doing ongoing training on a regular basis out in the field. We have also online learning sessions as well and overall, going very well.In Europe, it's taken a bit longer, and it's just really because of the nature of Europe, with the many countries, the many different languages, et cetera, et cetera. So we've been training in Europe, and we're about complete in the initial training in Europe for almost all the countries in the Wave 1 cycle that we'll be focused on and that's complete.We also plan to do ongoing follow-up training in all those countries as well as we come up to speed and start ramping up our efforts. But overall, again, I think the training has been going very well, not only for Pheno and Arc, but also the overarching strategy for BD, which is their bloodstream infection strategy that really focuses on a comprehensive solution for bloodstream infections across the entire continuum of care, from sample collection through blood culture, through identification and then ultimately, rapid susceptibility with Pheno.So all of that's coming together as well. That's new for the BD sales team as well as Pheno and I got to say we're really happy with -- while it's taken a while to get it off the ground, we're really starting to see great activity as I mentioned in some of the remarks, I mean, we've got really good activity going on. We definitely need to put more closes on the board, but we had the best quarter we've had in quite a long time in Q2, and we look for better quarters moving forward. And then your second part of the question on the -- how is this doing relative to cash burn, I'll turn it over to David for that one.David PatienceYes. As it relates to the cash burn and the reductions thereof in SG&A, about this time last year is when we announced a restructuring of our commercial organization in the United States, to reflect the selling strategy we're going to implement with BD. And so with that, it would be a focused effort in the Accelerate commercial organization to support the commercial reach that BD brings and to have Accelerate bring on the commercial and selling effectiveness to bring opportunities further and further into the funnel to close.And so with that, we had a restructuring back in August of 2022. And with that, those numbers were a bit muddied in the first quarter of this year due to SG&A-related expenses to the debt restructuring transaction. The debt restructuring transaction did close in the second quarter, but the accounting for those fees related to professional and legal fees of the debt restructuring, went into debt and equity issuance costs. And so the year-to-date figures reflect legal and professional services from our transaction, but the second quarter figures are more cleaned, if you will, to give you a further run rate and then a noncash stock adjusted basis of that SG&A spend.And so looking at the second quarter number is a cleaner way to look at it. And then understanding that these expenses are onetime nonrecurring to the transaction, give you kind of a forward-looking number that we're looking to operationally improve on a go-forward basis. And so with that, taking a step back, having the transaction behind us and furthering the Wave development program allows us to lower our spend with third parties. And so moving forward, we anticipate our cash burn to materially come down over just the next quarter, the rest of the year as well as into 2024.Dustin G. ScaringeUnderstood. Appreciate the color there. And second question, we've been hearing a lot from competitors on turnover at labs and hospitals in terms of staffing. Just wondering, is there any derivative impact to you guys and the conversations you're having with lab directors there? Or are you not really exposed to that as much?Jack PhillipsSo great point. And the answer is yes. We see that as well. There's an incredible amount of turnover post-COVID within health care, in general, and definitely in the laboratories, both the staffing level. So the microbiologists and the other lab technicians, it's there. And it's also at the management and senior management level. And so that is challenging for sure. It's definitely something that it slows down go-lives. We've had a couple of go-lives that did not go live in the quarter because of management change and the key champions that were part of the Pheno or Accelerate implementation with us in BD have changed, but those are still going to be on track. It's just delayed because of a new microbiology manager or a lab director being replaced or leaving.So we're seeing that turnover. I have -- I do expect it to settle down. I mean that's what typically happens, and I expect it to get back to more normal, but it's something that we continue to address. In some cases, it does create new opportunities for us as lab directors move from site to site and their proponents of rapid susceptibility in Pheno and BD, et cetera, those are also positive examples to where this -- where change within the laboratory can be good, and we've seen some of that as well, where we've seen change in new directors come in that really know the value of rapid susceptibility and Pheno and we immediately have a sales opportunity overnight. So I think it goes both ways, but it is definitely something that we continue to address on a daily basis out in the field.Dustin G. ScaringeLast question for us, just on the reintroduction of Arc when that eventually comes to the U.S. market. How impactful do you think this could be on eventually driving momentum with BD once this occurs.Jack PhillipsI mean, we're very bullish on the value proposition for Arc and so is Becton Dickinson and as well as other people that are focused in the MALDI sector. I mean it's a just a reminder of what Arc is, Arc addresses a real unmet medical need within microbiology. They're about -- there's thousands -- I mean, over 10,000 MALDI platforms placed globally in laboratories today. It was a great advancement in technology and microbiology for a number of reasons. It's very cost effective to run MALDI. It's a very, very wide range menu that MALDI produces. Fairly easy to use, good results. And so it's well planted in microbiology.But one of the drawbacks it's been a real drawback from Day 1 is if you want to run a rapid identification off of MALDI that's just not possible in the current state without doing something different. Because today, MALDI identification is run through a first performing an isolated colony and then spotting MALDI from there. What Arc does is Arc automates that entire process in 2 steps in about 1 hour and allows you to then plate the MALDI platform and get your result in the same shift.And so when we came on the market in the U.S., we saw immediate interest uptake. We had significant number of evaluations signed up. And that's only -- while the -- as we've talked, I mean, we're going back and getting a Class II claim from the FDA. In the end, that will actually be -- that will be a favorable feature to have, a favorable claim to have more of a validated platform out in the market. The unfortunate thing, it just takes time to go through the clinical trials, as I mentioned earlier here, and then ultimately through FDA clearance. But we are very excited about this, and we believe it's going to be a good alternative for customers, globally, to really that are seeking a rapid identification off of MALDI.OperatorThis concludes our question-and-answer session. I would now like to turn the conference back over to Mr. Jack Phillips for any closing remarks.Jack PhillipsYes. Thanks. I appreciate it, Chris. So just a couple of things from my side in closing. First of all, thanks for dialing into our Q2 Earnings Call. It's greatly appreciated. Just a couple of things to highlight as we think about our strategic imperatives that we've highlighted today.First of all, our next-generation platform, Wave continues to -- we continue to make really good progress and hit our milestones on this platform. It is a platform that will open up a much, much larger market within microbiology. It will be the platform that will perform isolates, which, as I mentioned, is over 100 million tests globally, and that's going to be very important and a very important segment for us to address.Things continue to go very well with Wave. And as I mentioned, we not only have isolates on the platform. We'll also have positive blood on a single platform, random access, scalable.So this platform will fit in community hospitals, but also reference labs and regional labs as well as academic centers. So it's truly a scalable platform that's so important as you look at the entire health system. So more to come there. And finally, we continue to see very good quality performance on our initial studies that we've been going through over 100 million images taken now off of our 15 alpha units that are running day and night in our laboratory here in Tucson.And then the second thing I'd say with our partnership with Becton Dickinson and our commercial effectiveness. As I mentioned, very large microbiology company in BD. They're a terrific partner. And we've got -- it's taken us a while to get through training, to get reps comfortable and confident in selling rapid identification and susceptibility. We're getting there. Every day is a better day out in the field and in the market. Our reach continues to grow, and that means new accounts coming into the funnel continues to grow.Our sales effectiveness is also improving our ability to actually bring Pheno into the overall bloodstream infection portfolio with BD, we're getting much, much better at that as well. And as a result, what we're seeing is we're really starting to advance sales opportunities quicker. And where we're in labs with the BD shops within the hospital. I mean, we're advancing these opportunities much, much quicker. So this is work in progress that we continue to make progress on every day, and we expect to see, again, continued good success there.And then the last thing I'd mention is really our financial strength as a company. That's something David and I focus on frequently every day. We now have debt restructuring behind us. We're focused on reducing our burn rate. We're focused on preserving cash everywhere we can. And then obviously, revenues will take care of that as well as we continue to increase revenues and drop margin to the bottom line. So with that, more to come, and I appreciate you tuning into the Q2 earnings call today.And again, should you have any further on questions, please contact us at axdx.com and we're happy to schedule a follow-on meeting. Thank you very much.OperatorThe conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.

Thomson Reuters StreetEvents

Q2 2023 Accelerate Diagnostics Inc Earnings Call

https://finance.yahoo.com/news/q2-2023-accelerate-diagnostics-inc-095943622.html

07f06d87-4910-3c5c-b0c3-119434ca5651

AXL

American Axle & Manufacturing Holdings AXL delivered earnings of 12 cents per share in second-quarter 2023, surpassing the Zacks Consensus Estimate of 8 cents. However, the bottom line fell from the 22 cents reported in the year-ago quarter.The company generated quarterly revenues of $1,571 million, outpacing the Zacks Consensus Estimate of $1,565 million. Revenues increased 9% on a year-over-year basis, led by contributions from the Tekfor acquisition.American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS SurpriseAmerican Axle & Manufacturing Holdings, Inc. price-consensus-eps-surprise-chart | American Axle & Manufacturing Holdings, Inc. QuoteSegmental PerformanceIn the reported quarter, the Driveline segment recorded sales of $1,086.5 million, rising 6% year over year and surpassing our estimate of $1,084.3 million. The segment registered adjusted EBITDA of $152.1 million, up 5% on a year-over-year basis and beating our estimate of $135.3 million.The company’s Metal Forming business generated revenues of $634.2 million during the quarter, up 13.7% from the year-ago figure and exceeding our estimate of $453.9 million. The segment witnessed an adjusted EBITDA of $39.5 million, falling 37% and lagging our estimate of $50.3 million.Financial PositionAmerican Axle’s second-quarter SG&A expenses totaled $91.1 million, up from $84.8 million incurred in the prior-year quarter.Net cash provided by operating activities was $132.8 million, down from $146.7 million in the year-ago period. Capital spending in the quarter was $44.1 million, up from $42.6 million. In the three months ended Jun 30, 2023, the company posted an adjusted free cash flow of $95.8 million, down from $114.3 million recorded in the year-earlier period.As of Jun 30, 2023, American Axle had cash and cash equivalents of $511.1 million compared with $511.5 million on Dec 31, 2022. Its net long-term debt was $2,853.9 million, up from $2,845.1 million as of Dec 31, 2022.Story continuesReiterated 2023 OutlookAmerican Axle envisions revenues in the range of $5.95-$6.25 billion. The estimate for adjusted EBITDA is in the band of $725-$800 million. Adjusted FCF is expected to be in the range of $225-$300 million, considering capital spending between 3.5% and 4% of sales.Zacks Rank & Key PicksAXL currently carries a Zacks Rank #3 (Hold).Some better-ranked players in the auto space are Oshkosh Corporation OSK, Toyota Motor Corporation TM and PACCAR Inc. PCAR, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 17.1% and 110%, respectively. The EPS estimate for 2023 has moved north by $1.28 in the past seven days. The 2024 EPS estimate has moved up by $1.14 in the past seven days.The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.9% and 61.7%, respectively. The EPS estimate for 2023 has moved north by 21 cents in the past seven days. The 2024 EPS estimate has moved up by 20 cents in the past seven days.The Zacks Consensus Estimate for PCAR’s 2023 sales and earnings implies year-over-year growth of 19.6% and 40.1%, respectively. The EPS estimate for 2023 has moved up by 71 cents in the past 30 days. The 2024 EPS estimate has moved north by 35 cents in the past 30 days.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportToyota Motor Corporation (TM) : Free Stock Analysis ReportPACCAR Inc. (PCAR) : Free Stock Analysis ReportAmerican Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis ReportOshkosh Corporation (OSK) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

American Axle (AXL) Q2 Earnings Beat Estimates, Decline Y/Y

https://finance.yahoo.com/news/american-axle-axl-q2-earnings-154100398.html

c3a2d35a-c9fe-3ac5-95bc-8832aed0a361

AXL

DETROIT, Sept. 8, 2023 /PRNewswire/ -- American Axle & Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) will participate in the RBC Capital Markets Global Industrials Conference on September 12 and Morgan Stanley's 11th Annual Laguna Conference on September 13.  AAM management expects to discuss current pertinent industry trends, including ongoing production volatility.AAM logo (PRNewsfoto/American Axle & Manufacturing)AAM is scheduled to webcast the fireside chat presentation at the Morgan Stanley conference at 12:15 p.m. PT on September 13.  The live audio webcast will be accessible through the Investor Relations page on AAM's website (www.aam.com). A replay of the webcast will be available following the event.About AAMAs a leading global Tier 1 Automotive and Mobility Supplier, AAM designs, engineers and manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. Headquartered in Detroit with over 80 facilities in 18 countries, AAM is bringing the future faster for a safer and more sustainable tomorrow. To learn more, visit aam.com.Our presentation may contain "forward-looking" statements that are subject to risks and uncertainties described in our most recent filings on Form 10-K and Form 10-Q with the Securities and Exchange Commission, and actual results may differ materially. Our presentation may also include certain non-GAAP financial measures. Information regarding these non-GAAP measures, as well as a reconciliation of these non-GAAP measures to GAAP financial information, is available on AAM's website.For more information:Investor Contact:David H. LimHead of Investor Relations(313) [email protected] Contact:Christopher M. SonVice President, Marketing & Communications (313) 758-4814 [email protected] visit the AAM website at www.aam.com.CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/aam-to-present-at-the-rbc-global-industrials-conference-and-morgan-stanleys-11th-annual-laguna-conference-on-september-12-and-13-301921962.htmlSOURCE American Axle & Manufacturing Holdings, Inc.

PR Newswire

AAM to Present at the RBC Global Industrials Conference and Morgan Stanley's 11th Annual Laguna Conference on September 12 and 13

https://finance.yahoo.com/news/aam-present-rbc-global-industrials-133000677.html

a0db686e-865c-3a73-8caa-db3e1e128e4c

AXLA

Axcella Therapeutics AXLA secured a methods-of-use patent from the U.S. Patent and Trademark Office for its lead pipeline candidate, AXA1125. The patent has been granted to AXA1125 for treating patients having fatigue associated with post-acute sequelae of Covid-19 or Long Covid. The patent was issued to Axcella on Aug 29, 2023 and is scheduled to expire in 2042.AXA1125 is AXLA’s novel therapeutic composition, which is being developed using the company’s proprietary endogenous metabolic modulators (EMMs) to simultaneously support metabolic, inflammatory and fibrotic pathways associated with fatigue caused by Long Covid. We would like to remind the investors that AXA1125 has several other patents already granted with claims covering methods of use and compositions.The previously granted patents for AXA1125 are anticipated to expire in 2037.Shares of the company skyrocketed 298.9% during the trading session on Tuesday, followed by a 13.3% rise in stock price during the after-market hours. Year to date, shares of Axcella have shot up 37.4% against the industry’s 12.8% fall.Zacks Investment ResearchImage Source: Zacks Investment ResearchAxcella’s EMMs comprise a range of meticulously engineered molecules, including amino acids that fundamentally impact and regulate human metabolism. Management believes that its EMMs are different from current targeted interventions that used to address dysregulated metabolism and have the potential to disrupt the market. The latest patent strengthens AXLA’s intellectual property rights to its novel composition of amino acids in AXA1125, while reaffirming its effectiveness in the treatment of Long Covid fatigue.Notably, AXA1125 for Long Covid fatigue is currently Axcella’s only ongoing clinical pipeline program. The company had previously terminated the development of another EMM therapeutic candidate, AXA1665, to treat liver-related metabolic disease as well as mid-stage studies on AXA1125 to treat nonalcoholic steatohepatitis in adult and pediatric patients.Story continuesThe above decisions were taken as part of the company’s restructuring and reprioritization efforts to streamline its focus on the development of AXA1125 to treat Long Covid fatigue. Earlier this year, the company reached an agreement with the FDA as well as U.K.’s regulatory authority regarding a registrational phase IIb/III study of AXA1125 in Long Covid fatigue.The agreement was based on clinically and statistically significant improvement in mental and physical fatigue scores compared with placebo subjects in the completed phase IIa study of AXA1125.Axcella Health Inc. Price and ConsensusAxcella Health Inc. Price and ConsensusAxcella Health Inc. price-consensus-chart | Axcella Health Inc. QuoteZacks Rank & Other Stocks to ConsiderAxcella currently has a Zacks Rank #2 (Buy).Some other top-ranked stocks in the pharma/biotech sector worth mentioning are J&J JNJ, Corcept Therapeutics CORT and Dynavax Technologies DVAX, each carrying a Zacks Rank #2 at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.In the past 30 days, the Zacks Consensus Estimate for J&J’s 2023 earnings per share has increased from $10.73 to $10.75. During the same period, the estimate for JNJ’s 2024 earnings per share has increased from $11.28 to $11.30. Year to date, shares of JNJ have lost 7%.JNJ beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 5.58%.In the past 30 days, the Zacks Consensus Estimate for Corcept’s 2023 earnings per share has gone up from 62 cents to 78 cents. The estimate for Corcept’s 2024 earnings per share has also improved from 61 cents to 83 cents. Year to date, shares of CORT have climbed 61.6%.CORT’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 6.99%.In the past 30 days, the Zacks Consensus Estimate for Dynavax’s 2023 loss per share has narrowed from 51 cents to 24 cents. The estimate for Dynavax’s 2024 earnings per share is currently pegged at 2 cents. Year to date, shares of DVAX have risen by 36.9%.DVAX’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 25.78%.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportDynavax Technologies Corporation (DVAX) : Free Stock Analysis ReportJohnson & Johnson (JNJ) : Free Stock Analysis ReportCorcept Therapeutics Incorporated (CORT) : Free Stock Analysis ReportAxcella Health Inc. (AXLA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Axcella (AXLA) Up on Patent Grant for Long Covid Fatigue Drug

https://finance.yahoo.com/news/axcella-axla-patent-grant-long-131500346.html

652e6417-da7e-3eda-824e-44a152266fa1

AXLA

For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Clover Health Investments, Corp. (CLOV) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Clover Health Investments, Corp. is a member of our Medical group, which includes 1113 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Clover Health Investments, Corp. is currently sporting a Zacks Rank of #2 (Buy).Within the past quarter, the Zacks Consensus Estimate for CLOV's full-year earnings has moved 16.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.Our latest available data shows that CLOV has returned about 47.4% since the start of the calendar year. In comparison, Medical companies have returned an average of -2.2%. This means that Clover Health Investments, Corp. is performing better than its sector in terms of year-to-date returns.Another stock in the Medical sector, Axcella Health Inc. (AXLA), has outperformed the sector so far this year. The stock's year-to-date return is 37.4%.Over the past three months, Axcella Health Inc.'s consensus EPS estimate for the current year has increased 59.6%. The stock currently has a Zacks Rank #2 (Buy).Breaking things down more, Clover Health Investments, Corp. is a member of the Medical Info Systems industry, which includes 43 individual companies and currently sits at #93 in the Zacks Industry Rank. On average, this group has gained an average of 30.1% so far this year, meaning that CLOV is performing better in terms of year-to-date returns.Story continuesOn the other hand, Axcella Health Inc. belongs to the Medical - Biomedical and Genetics industry. This 534-stock industry is currently ranked #90. The industry has moved -11.1% year to date.Clover Health Investments, Corp. and Axcella Health Inc. could continue their solid performance, so investors interested in Medical stocks should continue to pay close attention to these stocks.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportClover Health Investments, Corp. (CLOV) : Free Stock Analysis ReportAxcella Health Inc. (AXLA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Are Medical Stocks Lagging Clover Health Investments (CLOV) This Year?

https://finance.yahoo.com/news/medical-stocks-lagging-clover-health-134010139.html

8bdda152-c322-39e0-94aa-60d40a829f5c

AXON

Axon Enterprise (AXON) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this maker of stun guns and body cameras have returned +20.8%, compared to the Zacks S&P 500 composite's +0.6% change. During this period, the Zacks Security and Safety Services industry, which Axon falls in, has lost 1.3%. The key question now is: What could be the stock's future direction?Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For the current quarter, Axon is expected to post earnings of $0.76 per share, indicating a change of +26.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.2% over the last 30 days.The consensus earnings estimate of $3.55 for the current fiscal year indicates a year-over-year change of +62.1%. This estimate has changed +23.7% over the last 30 days.Story continuesFor the next fiscal year, the consensus earnings estimate of $3.82 indicates a change of +7.6% from what Axon is expected to report a year ago. Over the past month, the estimate has changed +5.2%.Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Axon is rated Zacks Rank #3 (Hold).The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:12 Month EPSProjected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.In the case of Axon, the consensus sales estimate of $393.77 million for the current quarter points to a year-over-year change of +26.3%. The $1.52 billion and $1.81 billion estimates for the current and next fiscal years indicate changes of +28% and +19.1%, respectively.Last Reported Results and Surprise HistoryAxon reported revenues of $374.61 million in the last reported quarter, representing a year-over-year change of +31.2%. EPS of $1.11 for the same period compares with $0.44 a year ago.Compared to the Zacks Consensus Estimate of $347.53 million, the reported revenues represent a surprise of +7.79%. The EPS surprise was +79.03%.The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.Axon is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Axon. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAxon Enterprise, Inc (AXON) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Investors Heavily Search Axon Enterprise, Inc (AXON): Here is What You Need to Know

https://finance.yahoo.com/news/investors-heavily-search-axon-enterprise-130006267.html

4896f3c6-6a27-3f6d-bb65-56ff831f025c

AXON

In this article we present the list of 10 Best Performing Small-cap ETFs in 2023. Click to skip past our analysis of small-cap stocks and ETFs and go straight to the 5 Best Performing Small-cap ETFs in 2023.Axon Enterprise, Inc. (NASDAQ:AXON), Alarm.com Holdings, Inc. (NASDAQ:ALRM), and Embraer S.A. (NYSE:ERJ) are a few of the small-cap stocks that are major holdings in some of the best performing small-cap ETFs this year.The top small-cap ETFs haven’t been able to crack the Top 10 Best Performing ETFs of 2023, which is headlined by several tech-focused ETFs, including ARK Investment Management’s Ark Fintech Innovation ETF (ARKF), which has gained 45.9% this year. To check out some of the hottest ETFs in this sector, don’t miss the 10 Best Semiconductor ETFs.Nonetheless it has been a decent year for small-cap stocks and the ETFs that are focused on them, as the Russell 2000 Index has posted gains of 6% this year. Those year-to-date gains were as high as 14% a little over a month ago, but small-cap stocks were dinged heavily in the first-half of August, contributing to more than half their gains being wiped out.The longer-term outlook for small-cap stocks looks far more promising, which could make small-cap focused funds among the best ETFs to buy and hold for the long term. Bank of America Securities encouraged investors to begin adding small-caps to their portfolios heading into 2023, with the firm projecting that small-caps will grow at a 12% annual rate over the next decade compared to just 5% growth for the S&P 500.Given the volatile nature of investing in individual small-cap stocks, it makes far more sense for investors to seek out indexes of those companies, giving them some added stability through strength in numbers while still retaining the upside growth potential that small-caps possess. If you’re interested in other great portfolio diversification options, check out the 20 Biggest ETFs by Volume.The strong performance of 2023’s best performing ETFs has certainly renewed the interest in them among the investing community. ETF net flows (the difference between inflows minus outflows) was a relatively muted $80 billion in Q1, but that figure jumped to $130 billion in the latest quarter. Actively managed ETFs captured a much larger percentage of that flow, at about 17%, than its overall representation in the ETF marketplace, which stands at a paltry 6%.Story continuesGiven that many of the best Performing ETFs have been tech-focused (check out the 10 Best Performing Technology ETFs in 2023), a good deal of those flows were directed towards tech sector ETFs, though the consumer discretionary and communications services sectors pulled in slightly higher flows during Q2. On the other hand, investors were bailing on ETFs in the energy, materials, and real estate sectors.Let’s now dig into the 10 Best Performing Small-cap ETFs in 2023 and look into some of the most prominent small-cap stocks being held by those funds.10 Best Performing Small-cap ETFs in 2023myriam-jessier-eveI7MOcSmw-unsplashOur MethodologyThe following data is gathered from a leading ETF screener that was filtered to only include small-cap focused ETFs (though some of them do also contain mid-cap companies). The ETFs have been ranked in ascending order based on their year-to-date returns. Holdings data was taken directly from each ETF’s information page on that fund manager’s website.All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q2 2023 reporting period. We follow hedge funds like ARK Investment Management because Insider Monkey’s research has uncovered that their consensus stock picks can deliver outstanding returns.10 Best Performing Small-cap ETFs in 202310. Roundhill Acquirers Deep Value ETF (DEEP)Year-to-Date Returns: 11.7% Embraer S.A. (NYSE:ERJ), Axon Enterprise, Inc. (NASDAQ:AXON), and Alarm.com Holdings, Inc. (NASDAQ:ALRM) are the top holdings of three of the five best performing ETFs among small-cap-focused funds. WW International, Inc. (NASDAQ:WW) is likewise the top holding of the tenth-best performing small-cap ETF so far this year, the Roundhill Acquirers Deep Value ETF (DEEP).The small-cap value equities fund, which aims to invest in small, highly undervalued U.S. stocks, has 102 holdings, with WW International, Inc. (NASDAQ:WW) carrying the highest weighting in the portfolio at 1.38%. DEEP is one of the smaller ETFs on this list, with $41.4 million in assets under management. It’s returned nearly 12% this year, but is down slightly over the previous five years.WW International, Inc. (NASDAQ:WW), formerly known as Weight Watchers, sank to a five year low in hedge fund ownership during the final quarter of 2022, but several hedge funds have built new stakes in the company in 2023, including Richard Driehaus’ Driehaus Capital and Steve Cohen’s Point72 Asset Management. The weight loss management company had 4.1 million subscribers at the end of June, with the company achieving year-over-year subscriber growth during the quarter for the first time since late 2020.9. First Trust Multi-Manager Small Cap Opportunities ETF (MMSC)Year-to-Date Returns: 13.4% The First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) is tied for the smallest ETF on this list in terms of assets, with $7 million. While the fund has posted nice gains this year, it’s still down by 21% since its inception in October 2021. The fund utilizes a multi-manager approach to increase diversification in its portfolio construction, with an overall emphasis on small-cap growth stocks.MMSC’s top holding with 2.37% portfolio weighting is Celsius Holdings, Inc. (NASDAQ:CELH), a Florida-based beverage company that ranks as one of 10 Vegan Stocks Billionaires Are Loading Up On. In addition to its core line of fitness and energy drinks, Celsius Holdings, Inc. (NASDAQ:CELH) also offers sugar-free and kosher beverages. The company is growing sales rapidly, topping $200 million in quarterly sales for the first time ever in Q1, which then jumped to over $300 million in Q2, a 112% year-over-year rise. Celsius had the #3 energy drink brand in the U.S. for the one-year period ended June 18, having doubled its market share to 8.6% over the past year.Carillon Tower Advisers discussed some of Celsius Holdings, Inc. (NASDAQ:CELH)’s positive catalysts last year in the fund’s Q3 2022 investor letter:“Celsius Holdings, Inc. (NASDAQ:CELH) develops, markets, sells, and distributes functional fitness and lifestyle beverages. The company’s shares outperformed in the period as it was announced that a major global soft drink company would take a minority ownership stake in the company in a deal that also would involve a strategic distribution agreement. In addition, Celsius reported a strong quarter, and it continues to gain market share in the energy drink category.”8. Invesco S&P MidCap 400 Revenue ETF (RWK)Year-to-Date Returns: 13.9% The Invesco S&P MidCap 400 Revenue ETF (RWK) is a small- and mid-cap oriented ETF with $519 million in assets under management. The fund has 398 holdings and an expense ratio of 0.39%. The fund also utilizes a unique weighting system to organize its portfolio, basing its construction on companies’ top line revenue rather than their market cap.Given that, its top holding TD SYNNEX Corporation (NYSE:SNX), at 2.95% weighting, likely has extremely impressive revenue in relation to most other companies in the ETF, given its weighting is more than double that of all but six other stocks. There was a huge spike in hedge fund ownership of TD SYNNEX Corporation (NYSE:SNX) in the first quarter of this year, as it jumped by 70% to an all-time high. However, smart money ownership of the stock fell back sharply in Q2.TD SYNNEX Corporation (NYSE:SNX)’s Q2 results were certainly impressive for a smaller company, as it hauled in $14.1 billion in net revenue and $18.7 billion in gross billings, though each of those figures was down from a year earlier, by 7% and 4% respectively. The IT services company’s End Point Solutions have been impacted by the post-pandemic weakness in PC sales, though the company believes it has now reached the trough in terms of billings and sales, with demand expected to pick up in future quarters.7. Vanguard Small Cap Growth ETF (VBK)Year-to-Date Returns: 14.0% The Vanguard Small Cap Growth ETF (VBK) is a passively managed fund of small-cap growth stocks that has an attractive expense ratio of just 0.07%. When coupled with its broad selection of stocks (exactly 1,000 holdings as of writing), it’s a great option for investors looking to diversify their portfolios. The fund has $14.2 billion in assets under management, more than twice as much as any other fund on this list, which speaks to how appealing it is to investors.The ETF’s top stock pick with a 0.93% weighting is credit ratings agency and analytics company Fair Isaac Corporation (NYSE:FICO). FICO jumped to an all-time high in hedge fund ownership during Q2, with 35% more money managers going long FICO over the last three quarters. Fair Isaac Corporation (NYSE:FICO) delivered record revenue of $399 million in the company’s fiscal Q3 2023, up 14% year-over-year. Revenue from mortgage originations was particularly strong during the quarter, rising by 135% from a year earlier.Baron FinTech Fund is bullish on the long-term earnings outlook for Fair Isaac Corporation (NYSE:FICO) as the fund shared in its second quarter 2023 investor letter:“Shares of Fair Isaac Corporation (NYSE:FICO), a data and analytics company that helps predict consumer behavior, contributed to performance. The company reported solid quarterly financial results and modestly raised its full-year outlook while taking a more conservative approach to guidance due to macroeconomic uncertainty. CEO Will Lansing sounded confident that the business can hold up well across various macro backdrops and sounded particularly excited about the momentum in the software business. We retain conviction and believe that FICO will be a steady earnings compounder, which should drive solid returns for the stock over the long term.”6. iShares Morningstar Small-Cap Growth ETF (ISCG)Year-to-Date Returns: 14.8% Closing out the first half of the list of best performing ETFs is iShares Morningstar Small-Cap Growth ETF (ISCG), which sports a paltry 0.06% expense ratio. The fund targets U.S.-based small-cap companies which are projected to deliver above market rate earnings growth. It held an even 1,500 stocks as of writing, lead by Saia, Inc. (NASDAQ:SAIA) at 0.59% weighting.Hedge funds bailed on Saia, Inc. (NASDAQ:SAIA) in the third quarter of last year but came storming back into the stock during the second quarter of this year, as there was a 40% jump in the number of smart money managers long SAIA. The transportation company has seen falling demand in recent quarters due to the soft economic backdrop, but did note in its Q2 conference call that demand showed continued improvement throughout each month of the second quarter and was trending towards positive growth territory in July.The Artisan Small Cap Fund found several reasons to add to its Saia, Inc. (NASDAQ:SAIA) holding in Q2, as the fund outlined in its second quarter 2023 investor letter:“Along with Exact Sciences, notable adds in the quarter included Twist Bioscience, Saia and Crocs. Saia, Inc. (NASDAQ:SAIA) operates in less-than-truckload shipping, a relatively attractive part of transportation that features several solid franchises supported by real estate assets and network advantages. Saia has been opening new terminals across the Northeast, raising its terminal count from 151 at the end of 2016 to 187 as of Q4 2022. With its Northeast expansion largely complete, Saia is entering a new growth phase that should unlock additional operating leverage. Thanks to a strengthened delivery network that enables higher quality service levels to customers, we believe Saia can simultaneously grow at a healthy pace and realize higher prices. We are cognizant that the slowing economy could reduce industry (and Saia’s) shipment volumes, but we have added to the position given its reasonable valuation, signs that shipping volumes are troughing and resilient pricing.” See which of this year’s best performing ETFs were holding Embraer S.A. (NYSE:ERJ), Axon Enterprise, Inc. (NASDAQ:AXON), Alarm.com Holdings, Inc. (NASDAQ:ALRM), and others by clicking the link below. Click to continue reading and see the 5 Best Performing Small-cap ETFs in 2023. Suggested articles:Wall Street Analysts See Upside Potential for 10 Stocks with Rising Price Targets15 Stocks to Buy with Steady Dividends10 Best Gold ETFs Disclosure: None. 10 Best Performing Small-cap ETFs in 2023 is originally published at Insider Monkey.

Insider Monkey

10 Best Performing Small-cap ETFs in 2023

https://finance.yahoo.com/news/10-best-performing-small-cap-223438277.html

1a16cd2d-1323-3a35-8bee-36411a281128

AXP

By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. For example, American Express Company (NYSE:AXP) shareholders have seen the share price rise 52% over three years, well in excess of the market return (27%, not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 0.8% , including dividends .Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. View our latest analysis for American Express In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.American Express was able to grow its EPS at 27% per year over three years, sending the share price higher. The average annual share price increase of 15% is actually lower than the EPS growth. So it seems investors have become more cautious about the company, over time.The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).earnings-per-share-growthWe like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..What About Dividends?As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for American Express the TSR over the last 3 years was 58%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!Story continuesA Different PerspectiveAmerican Express shareholders are up 0.8% for the year (even including dividends). But that was short of the market average. On the bright side, the longer term returns (running at about 9% a year, over half a decade) look better. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Those who invested in American Express (NYSE:AXP) three years ago are up 58%

https://finance.yahoo.com/news/those-invested-american-express-nyse-140031086.html

18ae3982-70a0-3dc1-adff-cc19bd8d6064

AXP

'You can't produce a baby in 1 month by getting nine women pregnant': Buffett says the key to investing is emotional control — not great talent or effort. 3 'forever' stocks for the long haulWarren Buffett’s wealth wasn’t built overnight.Instead, the Oracle of Omaha has been steadily, gradually accumulating over several decades. He’s the undisputed champion of long-term investing. “No matter how great the talent or efforts, some things just take time,” he once said. “You can't produce a baby in one month by getting nine women pregnant.”Don't missRich young Americans have lost confidence in the stock market — and are betting on these 3 assets instead. Get in now for strong long-term tailwindsCommercial real estate has outperformed the S&P 500 over 25 years. Here's how to diversify your portfolio without the headache of being a landlordWorried about the economy? Here are the best shock-proof assets for your portfolio. (They’re all outside of the stock market.)That’s good advice. Building wealth through investing is certainly possible, but only if the investor is patient, disciplined and committed to long-term thinking. The final ingredient is a stock that has the endurance to withstand market cycles and deliver steady returns over the long haul.With that in mind, here are the top three forever stocks you might want to consider adding to your “Patient Capital” watch list.Kraft HeinzThe Kraft Heinz corporation is only eight years old, but the two brands that constitute it have each been around for more than a century. Kraft Foods Inc. was founded in 1909 while the H. J. Heinz Co. was established in 1869. Both brands have steadily grown their footprints across the world over the intervening decades.In some parts of the world, these brands are synonymous with cheese, ketchup and macaroni. Brand recognition like this takes forever to build, which is why the combined business has so much underlying value.Today, the company (NASDAQ:KHC) is worth more than $41 billion, and the stock trades at about 17 times earnings — reasonable for a low-growth consumer brand.Buffett’s company, Berkshire Hathaway (NYSE:BKR.B), first acquired a stake in Heinz in 2013. Two years later, the firm put up $5 billion as part of the mega-merger that brought the two household brands together. The combined company is currently the seventh largest Berkshire holding.Story continuesRead more: Warren Buffett gets gloomy: America's 'incredible period' is coming to an end. Here's what nervous investors can do right nowCoca-ColaCoca-Cola (NYSE:KO) is another iconic brand dating to the 19th century. The company was launched in 1892 and has been on Buffett’s portfolio for several decades. He first initiated a position in the beverage giant in 1988. The stock is up more than 2,500% since then.The company is now worth in excess of $260 billion, while the stock trades at a price-to-earnings ratio of around 25. KO — the company’s ticker symbol — also offers a 3% dividend yield, which makes it an ideal target for income-seeking investors like Buffett.Buffett currently owns 400 million shares of KO worth $24 billion. It’s the fourth-largest position in his portfolio, which is a testament to his long-term commitment to this brand. Retail investors should certainly take a closer look at this blue chip.American ExpressAmerican Express (NYSE:AXP) is 173 years old, which makes it the oldest company on this list. The firm was launched in 1850 as an express mail business in Buffalo, New York. Now, of course, it’s one of the largest payment networks in the world, with more than $214.5 billion passing through the network last year.Amex gets a tiny slice of each transaction. Meanwhile, Buffett owns a large slice of the company. His stake in Amex is worth over $26 billion, making it his third-largest holding.This “forever” stock currently trades at a little more than 16 times earnings and should certainly be on your list.What to read nextThanks to Jeff Bezos, you can now use $100 to cash in on prime real estate — without the headache of being a landlord. Here's howBlackrock’s CEO says art is a ‘serious asset class’ — here’s how you can own a piece of a Pablo PicassoThis janitor in Vermont built an $8M fortune without anyone around him knowing. Here are the 2 simple techniques that made Ronald Read rich — and can do the same for youThis article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Moneywise

'You can't produce a baby in 1 month by getting nine women pregnant': Buffett says the key to investing is emotional control — not great talent or effort. 3 'forever' stocks for the long haul

https://finance.yahoo.com/news/cant-produce-baby-1-month-100000185.html

dfba9502-b4d0-37d0-a84f-a5cb369304b2

AXR

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But in contrast you can make much more than 100% if the company does well. For instance the AMREP Corporation (NYSE:AXR) share price is 253% higher than it was three years ago. Most would be happy with that. On top of that, the share price is up 23% in about a quarter. But this could be related to the strong market, which is up 10% in the last three months.With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. See our latest analysis for AMREP In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.During three years of share price growth, AMREP moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).earnings-per-share-growthWe consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on AMREP's earnings, revenue and cash flow.A Different PerspectiveAMREP shareholders are up 5.9% for the year. Unfortunately this falls short of the market return. If we look back over five years, the returns are even better, coming in at 18% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 2 warning signs we've spotted with AMREP .Story continuesAMREP is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

AMREP's (NYSE:AXR) investors will be pleased with their impressive 253% return over the last three years

https://finance.yahoo.com/news/amreps-nyse-axr-investors-pleased-180804738.html

71086a75-4fb1-3e7a-8d32-cde4215d3d91

AXR

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in AMREP Corporation's (NYSE:AXR) instance, it's good news for shareholders.Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether. View our latest analysis for AMREP AMREP Insider Transactions Over The Last YearIn the last twelve months, the biggest single purchase by an insider was when insider James Dahl bought US$111k worth of shares at a price of US$16.00 per share. So it's clear an insider wanted to buy, at around the current price, which is US$16.50. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.While AMREP insiders bought shares during the last year, they didn't sell. The average buy price was around US$13.41. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!insider-trading-volumeThere are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).Insider Ownership Of AMREPLooking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 39% of AMREP shares, worth about US$33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.Story continuesSo What Do The AMREP Insider Transactions Indicate?There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in AMREP and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for AMREP and we suggest you have a look.Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Positive Signs As Multiple Insiders Buy AMREP Stock

https://finance.yahoo.com/news/positive-signs-multiple-insiders-buy-184541111.html

fa13fad1-d5ca-380a-98e9-f299b75a7ce7

AYTU

Dallas, Texas--(Newsfile Corp. - August 8, 2023) - Stonegate is pleased to announce the release of a thematic report that examines small market cap pharmaceutical companies based on revenue growth and valuation. The report: Undervalued Growth Pharma Companies Amidst Healthcare Sector Decline examines that represents the top 0.1 percentile of small pharmaceutical growth companies.To view the full announcement, including downloadable images, bios, and more, click here.Key Takeaways:The market intelligence report identifies a group of small-cap healthcare companies that we believe represent small, undervalued businesses with room to grow in the current biotech industry downturn.The report highlights standout companies including -- Alimera Sciences, Inc. (NASDAQ: ALIM), Assertio Holdings, Inc. (NASDAQ: ASRT), Aytu BioPharma, Inc. (NASDAQ: AYTU), Evolus, Inc. (NASDAQ: EOLS), and Xeris Biopharma Holdings, Inc. (NASDAQ: XERS) -- that not only show strong revenue growth but also low enterprise value to sales ratios.Click image above to view full announcement.About StonegateStonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.Contacts:Stonegate Capital Partners (214) 987-4121 [email protected]: Stonegate, Inc.To view the source version of this press release, please visit https://www.newsfilecorp.com/release/176474

Newsfile

Stonegate Capital Partners Announces Publishing of a Thematic Report - Undervalued Growth Pharma Companies Amidst Healthcare Sector Decline

https://finance.yahoo.com/news/stonegate-capital-partners-announces-publishing-131500871.html

ac8d09f6-c026-3611-bb34-ceb7410955c2

AYTU

Aytu BioPharma, Inc. (NASDAQ:AYTU) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Aytu Biopharma, Inc., a commercial-stage pharmaceutical company, focuses on developing and commercializing novel therapeutics and consumer healthcare products the United States and internationally. The US$9.1m market-cap company posted a loss in its most recent financial year of US$110m and a latest trailing-twelve-month loss of US$32m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Aytu BioPharma will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company. View our latest analysis for Aytu BioPharma Aytu BioPharma is bordering on breakeven, according to the 2 American Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$3.5m in 2025. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 82% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.earnings-per-share-growthWe're not going to go through company-specific developments for Aytu BioPharma given that this is a high-level summary, however, keep in mind that by and large pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.Before we wrap up, there’s one issue worth mentioning. Aytu BioPharma currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Aytu BioPharma's case is 53%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.Story continuesNext Steps:There are too many aspects of Aytu BioPharma to cover in one brief article, but the key fundamentals for the company can all be found in one place – Aytu BioPharma's company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:Valuation: What is Aytu BioPharma worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Aytu BioPharma is currently mispriced by the market.Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Aytu BioPharma’s board and the CEO’s background.Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Loss-Making Aytu BioPharma, Inc. (NASDAQ:AYTU) Expected To Breakeven In The Medium-Term

https://finance.yahoo.com/news/loss-making-aytu-biopharma-inc-114347127.html

9391e6d1-d732-3df6-a04b-c9e46846b10b

AZO

A Relative Strength Rating upgrade for AutoZone stock shows improving technical performance. Will it continue?Continue reading

Investor's Business Daily

AutoZone Stock Hit All-Time High In May. Ready For Another Run?

https://finance.yahoo.com/m/790ec2df-d0c0-365b-97d4-79461d496c20/autozone-stock-hit-all-time.html

790ec2df-d0c0-365b-97d4-79461d496c20

AZO

These durable growers have track records of rewarding shareholders with impressive stock buyback programs.Continue reading

Motley Fool

Love Good Management? Check Out These 3 Stock Buyback Superstars

https://finance.yahoo.com/m/da435591-aff5-3a26-ad43-acecb202e9c4/love-good-management-check.html

da435591-aff5-3a26-ad43-acecb202e9c4

BA

(Bloomberg) -- Vietnam Airlines JSC will sign an initial agreement to buy 50 Boeing Co. 737 Max jets in a deal valued at about $10 billion at list prices, according to people with knowledge of the matter.Most Read from BloombergTrudeau Is Stuck in India With Faulty Aircraft After Hearing Criticism From ModiIndia’s G-20 Win Shows US Learning How to Counter China RiseMeloni Tells China That Italy Plans to Exit Belt and RoadBiden Doubts China Able to Invade Taiwan Amid Economic WoesBoss of Failed Crypto Exchange Gets 11,000-Year SentenceThe financially challenged airline plans to sign a memorandum of understanding during President Joe Biden’s visit to Vietnam, the people said, asking not to be identified because the information is private.A tentative order, worth billions to Boeing, would allow the national carrier to replace more than 40 older-generation Airbus SE A321 planes. Any order would be seen as a breakthrough for Boeing as Vietnam Airlines is an all-Airbus single-aisle jet operator.The airline was weighing an order for as many as 50 Airbus A321neo jets, Bloomberg News reported in June. Vietnam Airlines also operates 20 newer A321neos.The Hanoi-based carrier and Boeing representatives didn’t immediately respond to requests for comments outside of regular business hours.During Biden’s official visit, Vietnam’s budget carrier VietJet Aviation JSC plans to reaffirm a deal for 200 737 Max jets it ordered over the last several years and take delivery of the first of 12 of the US-made single-aisle jets, people with knowledge of the matter said. It will also ink a financing package worth about $500 million for Boeing’s aircraft, they said.Airlines typically negotiate steep discounts compared with industry list prices for aircraft.Like many airlines in Asia, Vietnamese carriers struggled throughout the Covid-19 pandemic and have been slow to recover as international borders in the region took longer to reopen than in other parts of the world.Story continuesVietnam Airlines has lost money every quarter since the start of 2020. It reported an after-tax loss for the second quarter of 1.3 trillion dong ($54 million), narrowing from 2.6 trillion dong in the same period last year as domestic travel picked up.Losses in 2022 were 10.1 trillion dong due to rising fuel costs and exchange-rate volatility. That was on revenue of around 71 trillion dong, at about 70% of 2019 levels.Vietnam Air’s former Chief Executive Officer Duong Tri Thanh said in an interview in early 2019, prior to the pandemic, that the carrier was considering an order of 50-100 Boeing 737 Max planes to replace its fleet of Airbus single-aisle jets.The airline’s financial situation may make it more difficult to fund a large order, and it will also likely face challenges getting near-term delivery of new aircraft. Both Airbus and Boeing have sold out most of their production slots through the end of the decade.Vietnam Airlines operates a fleet of 100 Airbus and Boeing aircraft, FlightRadar24 data shows. VietJet Air also has 100 Airbus planes in operation and a backlog of more than 300 aircraft pending delivery.(Updates with VietJet plans in sixth paragraph.)Most Read from Bloomberg BusinessweekHuawei’s Surprise Phone Gives Ammo to Biden Doubters on ChinaLyme Disease Has Exploded, and a New Vaccine Is (Almost) Here©2023 Bloomberg L.P.

Bloomberg

Vietnam Air, Boeing Near $10 Billion Deal for 737 Max Jets

https://finance.yahoo.com/news/vietnam-air-boeing-near-10-140502203.html

2c1f2060-f03a-35cb-8946-2136f8944032

BA

A ULA space launch went off successfully Sunday morning after being pushed back a couple of times. The whole episode shows why SpaceX has such an edge in, well, space.Continue reading

Barrons.com

SpaceX Cements Status as Space Gatekeeper Even as ULA Launches Space Flight

https://finance.yahoo.com/m/cee678c8-91bc-3f10-b1ed-3e82034204c3/spacex-cements-status-as.html

cee678c8-91bc-3f10-b1ed-3e82034204c3

BAC

Key InsightsInstitutions' substantial holdings in Bank of America implies that they have significant influence over the company's share price48% of the business is held by the top 25 shareholders Insiders have sold recently A look at the shareholders of Bank of America Corporation (NYSE:BAC) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 58% ownership. Put another way, the group faces the maximum upside potential (or downside risk).Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.In the chart below, we zoom in on the different ownership groups of Bank of America. Check out our latest analysis for Bank of America ownership-breakdownWhat Does The Institutional Ownership Tell Us About Bank of America?Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.As you can see, institutional investors have a fair amount of stake in Bank of America. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Bank of America's earnings history below. Of course, the future is what really matters.earnings-and-revenue-growthSince institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Bank of America. The company's largest shareholder is Berkshire Hathaway Inc., with ownership of 13%. In comparison, the second and third largest shareholders hold about 7.7% and 6.0% of the stock.Story continuesOur studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.Insider Ownership Of Bank of AmericaThe definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.Our information suggests that Bank of America Corporation insiders own under 1% of the company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$419m of stock. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling. General Public OwnershipWith a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Bank of America. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.Public Company OwnershipWe can see that public companies hold 13% of the Bank of America shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.Next Steps:While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Bank of America (1 is a bit concerning) that you should be aware of.Ultimately the future is most important. You can access this free report on analyst forecasts for the company.NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Bank of America Corporation (NYSE:BAC) is favoured by institutional owners who hold 58% of the company

https://finance.yahoo.com/news/bank-america-corporation-nyse-bac-130013721.html

d05b9b51-a2b9-360b-ab84-b8242b924f3a

BAC

Even the wealthy borrow, and Martha Stewart, Carl Icahn and Ron Perelman go to Bank of America’s Jane Heller when they need to.Continue reading

The Wall Street Journal

The Rich and Famous Love This Banker, Even If She’s a Little Mean to Them

https://finance.yahoo.com/m/62842c77-b062-3848-a70d-95e402ca1252/the-rich-and-famous-love-this.html

62842c77-b062-3848-a70d-95e402ca1252

BALL

WESTMINSTER, Colo., Sept. 7, 2023 /PRNewswire/ -- Ball Corporation (NYSE: BALL), one of the world's leading suppliers of aluminum packaging and aerospace technologies, will speak to the investment community at the Morgan Stanley 11th Annual Laguna Conference, September 14th, 2023.Dan Fisher, chairman and CEO is scheduled to speak at 9:55am Pacific time. To listen to the presentation via live webcast, visit the following link:https://event.webcasts.com/starthere.jsp?ei=1630880&tp_key=119690ba24&tp_special=8A replay of the presentation will be available after the presentation ends and will be accessible for 90 days at www.ball.com/investors under "news and presentations."About Ball CorporationBall Corporation supplies innovative, sustainable aluminum packaging solutions for beverage, personal care and household products customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 21,000 people worldwide and reported 2022 net sales of $15.35 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.Forward-Looking StatementThis release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates," "believes," and similar expressions typically identify forward looking statements, which are generally any statements other than statements of historical fact. Such statements are based on current expectations or views of the future and are subject to risks and uncertainties, which could cause actual results or events to differ materially from those expressed or implied. You should therefore not place undue reliance upon any forward-looking statements, and they should be read in conjunction with, and qualified in their entirety by, the cautionary statements referenced below. Ball undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key factors, risks and uncertainties that could cause actual outcomes and results to be different are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in Ball's Form 10-K, which are available on Ball's website and at www.sec.gov. Additional factors that might affect: a) Ball's packaging segments include product capacity, supply, and demand constraints and fluctuations and changes in consumption patterns; availability/cost of raw materials, equipment, and logistics; competitive packaging, pricing and substitution; changes in climate and weather and related events such as drought, wildfires, storms, hurricanes, tornadoes and floods; footprint adjustments and other manufacturing changes, including the startup of new facilities and lines; failure to achieve synergies, productivity improvements or cost reductions; unfavorable mandatory deposit or packaging laws; customer and supplier consolidation; power and supply chain interruptions; changes in major customer or supplier contracts or loss of a major customer or supplier; inability to pass through increased costs; war, political instability and sanctions, including relating to the situation in Russia and Ukraine and its impact on Ball's supply chain and its ability to operate in Europe, the Middle East and Africa regions generally; changes in foreign exchange or tax rates; and tariffs, trade actions, or other governmental actions, including business restrictions and orders affecting goods produced by Ball or in its supply chain, including imported raw materials; b) Ball's aerospace segment include funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts; failure to obtain, or delays in obtaining, required regulatory approvals or clearances for the proposed transaction; any failure by the parties to satisfy any of the other conditions to the proposed transaction; the possibility that the proposed transaction is ultimately not consummated; potential adverse effects of the announcement or results of the proposed transaction on the ability to develop and maintain relationships with personnel and customers, suppliers and others with whom it does business or otherwise on the business, financial condition, results of operations and financial performance; risks related to diversion of management's attention from ongoing business operations due to the proposed transaction; the impact of the proposed transaction on the ability to retain and hire key personnel; and c) Ball as a whole include those listed above plus: the extent to which sustainability-related opportunities arise and can be capitalized upon; changes in senior management, succession, and the ability to attract and retain skilled labor; regulatory actions or issues including those related to tax, environmental, social and governance reporting, competition, environmental, health and workplace safety, including U.S. Federal Drug Administration and other actions or public concerns affecting products filled in Ball's containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; the ability to manage cyber threats; litigation; strikes; disease; pandemic; labor cost changes; inflation; rates of return on assets of Ball's defined benefit retirement plans; pension changes; uncertainties surrounding geopolitical events and governmental policies, including policies, orders, and actions related to COVID-19; reduced cash flow; interest rates affecting Ball's debt; successful or unsuccessful joint ventures, acquisitions and divestitures, and their effects on Ball's operating results and business generally; and potential adverse effects of the announcement or results of the proposed transaction on the market price of Ball Corporation's common stock.Story continuesBall Corporation Logo. (PRNewsFoto/Ball Corporation)CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/ball-corporation-to-present-at-the-morgan-stanley-11th-annual-laguna-conference-301921292.htmlSOURCE Ball Corporation

PR Newswire

Ball Corporation to Present at the Morgan Stanley 11th Annual Laguna Conference

https://finance.yahoo.com/news/ball-corporation-present-morgan-stanley-202000991.html

e4a1c0a1-6755-370d-836e-4cb3aab01948

BALL

An executive with Ball more than 20 years looks to retire after the aluminum can giant completes its $5.6 billions sale of its aerospace business.Continue reading

American City Business Journals

Ball Corp. names new C-level executive as veteran prepares to step aside

https://finance.yahoo.com/m/749d77c6-a5d6-322e-ae3d-a4aa7f44d214/ball-corp-names-new-c-level.html

749d77c6-a5d6-322e-ae3d-a4aa7f44d214

BALY

PROVIDENCE, R.I., Aug. 3, 2023 /PRNewswire/ -- Bally's Corporation (NYSE: BALY) today reported financial results for the second quarter ended June 30, 2023.Bally's Corporation (PRNewsfoto/Bally's Corporation)Second Quarter 2023 Financial Highlights Revenue of $606.2 million, an increase of 9.7% year-over-yearRecord Casinos & Resorts revenue of $333.2 million, up 11.1% year-over-yearInternational Interactive revenue of $247.8 million, up 5.6% year-over-yearAnnounced deal with the Oakland A's of MLB to construct a new stadium onto a portion of our Tropicana Las Vegas siteRhode Island legalized iGaming naming Bally's as the sole provider in the State. Expecting March 2024 launchSummary of Financial ResultsQuarter Ended June 30,(in thousands, except percentages)20232022Consolidated Revenue$            606,206$            552,496Casinos & Resorts Revenue333,162299,875International Interactive Revenue247,774234,571North America Interactive Revenue25,27018,050Net (loss) income(25,651)59,501Adjusted EBITDA(1)130,038137,029Rent Expense31,32011,471Adjusted EBITDAR(1)161,358(1) Refer to tables in this press release for a reconciliation of this non-GAAP financial measure to the most directly comparable measure calculated in accordance with GAAP.Robeson Reeves, Bally's Chief Executive Officer, said "Bally's made significant strides this quarter, announcing new initiatives, achieving important project milestones, and building on our strong foundation for 2023 and beyond. Our core Casinos & Resorts segment produced record second-quarter revenues of $333.2 million, an 11.1% increase compared to the second quarter of 2022. International Interactive also remained solid, with revenues increasing 5.6% year-over-year, led by our robust UK business, which grew revenues by 11.5% year-over-year.North America Interactive iGaming is ramping up positively, driven primarily by New Jersey and our successful June launch in Pennsylvania. Additionally, we are extremely pleased that the Rhode Island legislature legalized iGaming, naming Bally's as the sole provider in the State with an anticipated launch in March 2024. In addition, we have made significant progress transitioning Bally Bet onto the Kambi and White Hat technology platforms, which is on track to rollout later this summer.Story continuesBally's had a consolidated net loss in the quarter of $25.7 million and generated Adjusted EBITDAR of $161.4 million, up 8.7% from last year, and Adjusted EBITDA of $130.0 million. For the six-month period through June 2023, net income was $152.7 million with Adjusted EBITDAR of $319.0 million, up 16.1% from last year, and Adjusted EBITDA of $256.4 million.Giving some segment contribution highlights for the quarter, Casinos & Resorts generated net income of $26.7 million, Adjusted EBITDAR of $111.0 million, up 11.6%, and Adjusted EBITDA of $79.7 million. International Interactive generated Adjusted EBITDA of $84.6 million this quarter compared with $82.6 million last year. North America Interactive reported an Adjusted EBITDA loss of $(17.7) million this quarter compared with $(20.9) million loss for the prior year period."George Papanier, Bally's President, added, "Our core Casinos & Resorts customer base remains resilient. While we are keeping a close eye on spending trends and the health of the consumer generally, we are pleased with how our overall portfolio is performing, with significant year-over-year revenue growth and margin expansion. We are looking forward to the opening of our Chicago Temporary Casino in September and the unveiling of our property redevelopment in Kansas City as well. Importantly, our portfolio's near-term capex cycle has peaked as our Twin River Lincoln project was completed in late April, as will the Chicago Temporary Casino and Kansas City expansion projects through this quarter. We expect to be mining the returns from those expansion plans in the back-half of 2023, particularly in the fourth quarter."2023 GuidanceBally's is maintaining its Revenue guidance provided on May 9, 2023, which remains in the range of $2.5 billion to $2.6 billion and its Adjusted EBITDAR guidance range of $665 million to $700 million. This includes somewhat better performance from our core Casinos & Resorts and International Interactive business units versus our original expectations, as it now includes a new range of $50 million to $60 million of Adjusted EBITDA losses in North America Interactive, a $10 million higher loss at the midpoint, as we are investing in the business. This includes our Pennsylvania iGaming launch, our Bally Bet rollout and our omni-channel. Guidance for rent expense remains at $125 million (actual cash rent of $119 million) for the year.We are also maintaining our 2023 Capital Expenditure guidance of $160 million, with maintenance capex at Casinos & Resorts of $50 million, growth capex at Casinos & Resorts of $70 million, and Software Development Costs (SDC) costs of $40 million. This amount excludes the investment in the Chicago Temporary Casino development project which is largely complete.Bally's guidance is based on current plans and expectations and contains several assumptions. The guidance is subject to a number of known and unknown uncertainties and risks, including those discussed under "Cautionary Note Regarding Forward Looking Statements" set forth below.Capital Return ProgramDuring the second quarter, Bally's repurchased 0.7 million shares of its common stock for an aggregate purchase price of $10.7 million. Bally's currently has $164.1 million available for use under its share repurchase program, subject to limitations in its regulatory and debt agreements.Reconciliation of GAAP Measures to Non-GAAP Measures To supplement the financial information presented on a generally accepted accounting principles ("GAAP") basis, Bally's has included in this earnings release non-GAAP financial measures for Adjusted EBITDA and Adjusted EBITDAR, which exclude certain items described below. The reconciliations of these non-GAAP financial measures to their comparable GAAP financial measures are presented in the tables appearing below."Adjusted EBITDA" is earnings, or loss, for Bally's, or where noted Bally's reportable segments, before, in each case, interest expense, net of interest income, provision (benefit) for income taxes, depreciation and amortization, non-operating (income) expense, acquisition, integration and restructuring expenses, share-based compensation, and certain other gains or losses as well as, when presented for Bally's reporting segments, an adjustment related to the allocation of corporate costs among segments."Adjusted EBITDAR" is Adjusted EBITDA (as defined above) for Bally's Casinos & Resorts segment plus rent expense associated with triple net operating leases.Management has historically used Adjusted EBITDA when evaluating operating performance because Bally's believes that this metric is necessary to provide a full understanding of Bally's core operating results and as a means to evaluate period-to-period performance. Management also believes that Adjusted EBITDA is a measure that is widely used for evaluating operating performance of companies in Bally's industry and a principal basis for valuing such companies as well. Adjusted EBITDAR is used outside of our financial statements solely as a valuation metric. Management believes Adjusted EBITDAR is an additional metric traditionally used by analysts in valuing gaming companies subject to triple net leases since it eliminates the effects of variability in leasing methods and capital structures. Adjusted EBITDA should not be construed as an alternative to GAAP net income as an indicator of Bally's performance. In addition, Adjusted EBITDA or Adjusted EBITDAR as used by Bally's may not be defined in the same manner as other companies in Bally's industry, and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies.Bally's does not provide reconciliations of Adjusted EBITDAR on a forward-looking basis to net income, its most comparable GAAP financial measure, because Bally's is unable to forecast the amount or significance of certain items required to develop meaningful comparable GAAP financial measures without unreasonable efforts. These items include depreciation, impairment charges, gains or losses on retirement of debt, acquisition, integration and restructuring expenses, interest expense, share-based compensation expense, professional and advisory fees associated with Bally's capital return program and variations in effective tax rate, which are difficult to predict and estimate and are primarily dependent on future events, but which are excluded from Bally's calculations of Adjusted EBITDAR. Bally's believes that the probable significance of providing this forward-looking valuation metric without a reconciliation to the most directly comparable GAAP metric, is that investors and analysts will have certain information that Bally's believes is useful and meaningful in valuing its business. Investors are cautioned that Bally's cannot predict the occurrence, timing or amount of all non-GAAP items that may be excluded from Adjusted EBITDAR in the future. Accordingly, the actual effect of these items, when determined, could potentially be significant to the calculation of Adjusted EBITDAR.Second Quarter Conference Call Bally's second quarter 2023 earnings conference call and audio webcast will be held today, Thursday, August 3, 2023, at 10:00 a.m. EDT. To access the conference call, please dial (800) 445-7795 (U.S. toll-free) and reference conference ID BALYQ223. The webcast of the call will be available to the public, on a listen-only basis, via the Internet at the Investors section of Bally's website at www.ballys.com. An online archive of the webcast will be available on Bally's website for 120 days. Supplemental materials have also been posted to the Investors section of the website under Events & Presentations.About Bally's CorporationBally's Corporation is a global casino-entertainment company with a growing omni-channel presence of Online Sports Betting and iGaming offerings. It currently owns and manages 15 casinos across 10 states, a horse racetrack in Colorado and has access to OSB licenses in 18 states. It also owns Bally's Interactive International, formerly Gamesys Group, a leading, global, online gaming operator, Bally Bet, a first-in-class sports betting platform and Bally Casino, a growing iCasino platform.With 10,500 employees, Bally's casino operations include approximately 15,000 slot machines, 600 table games and 5,300 hotel rooms. Upon completing the construction of a casino facility in Chicago, IL and a land-based casino near the Nittany Mall in State College, PA, Bally's will own and/or manage 17 casinos across 11 states. Its shares trade on the New York Stock Exchange under the ticker symbol "BALY".Cautionary Note Regarding Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by Bally's in this press release, its reports filed with the Securities and Exchange Commission ("SEC") and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for Bally's to predict or identify all such events or how they may affect it. Bally's has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include those included in Bally's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by Bally's with the SEC. These statements constitute Bally's cautionary statements under the Private Securities Litigation Reform Act of 1995. Investor ContactMedia ContactJeff ChalsonKekst CNCVP of Corporate Development & Strategy 646-847-6102401-475-8564BallysMediaInquiries@[email protected] BALLY'S CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)(In thousands, except per share data)Three Months Ended June 30,Six Months Ended June 30,2023202220232022Revenue:Gaming$           493,296$           455,088$           980,191$           918,790Non-gaming112,91097,408224,735181,977Total revenue606,206552,4961,204,9261,100,767Operating (income) costs and expenses:Gaming218,939204,051436,600423,263Non-gaming52,27646,384104,62087,021General and administrative249,957192,735501,565379,756Gain from sale-leaseback, net(135)(50,766)(374,321)(50,766)Depreciation and amortization79,18774,773153,748153,654Total operating costs and expenses600,224467,177822,212992,928Income from operations5,98285,319382,714107,839Other income (expense):Interest expense, net(67,093)(45,828)(130,357)(91,513)Other non-operating income, net6,81125,4449,42144,923Total other income (expense), net(60,282)(20,384)(120,936)(46,590)(Loss) income before income taxes(54,300)64,935261,77861,249(Benefit) provision for income taxes(28,649)5,434109,093(141)Net (loss) income$           (25,651)$             59,501$           152,685$             61,390Basic (loss) earnings per share$               (0.48)$                 0.98$                 2.82$                 1.02Weighted average common shares outstanding - basic53,94260,50654,17360,263Diluted (loss) earnings per share$               (0.48)$                 0.98$                 2.80$                 1.02Weighted average common shares outstanding - diluted53,94260,54154,58260,332 BALLY'S CORPORATIONRevenue and Reconciliation of Net Income and Net Income Margin toAdjusted EBITDA and Adjusted EBITDA Margin (unaudited)(in thousands)Three Months Ended June 30,Six Months Ended June 30,2023202220232022Revenue$           606,206$           552,496$        1,204,926$        1,100,767Net (loss) income$            (25,651)$             59,501$           152,685$             61,390Interest expense, net of interest income67,09345,828130,35791,513(Benefit) provision for income taxes(28,649)5,434109,093(141)Depreciation and amortization79,18774,773153,748153,654Non-operating (income) expense (1)(5,395)(23,631)(9,252)(42,928)Foreign exchange loss (gain)1,639(1,813)5,947(1,995)Transaction costs(1)16,43415,52038,45221,543Restructuring charges(1)3,440—20,262—Decommissioning costs(1)2,343—2,343—Share-based compensation6,2906,32212,33011,417Gain on sale-leaseback, net(135)(50,766)(374,321)(50,766)Planned business divestiture(1)190—2,054—Impairment charges9,653—9,653—Other, net(1)3,5995,8613,0428,042Adjusted EBITDA$           130,038$           137,029$           256,393$           251,729Rent expense(1)$             31,320$             11,471$             62,558$             22,882Net (loss) income margin(4.2) %10.8 %12.7 %5.6 %Adjusted EBITDA margin21.5 %24.8 %21.3 %22.9 %(1)See descriptions of adjustments in the "Revenue and Reconciliation of Net Income (Loss) to Adjusted EBITDA by Segment (unaudited)" tables below. BALLY'S CORPORATION  Revenue and Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDAR by Segment (unaudited) (in thousands) Three Months Ended June 30, 2023Casinos & ResortsInternational InteractiveNorth America InteractiveOtherTotalRevenue$      333,162$          247,774$            25,270$                    —$          606,206Net income (loss)$        26,733$            35,497$          (35,455)$          (52,426)$          (25,651)Interest expense, net of interest income6(343)167,42967,093Provision (benefit) for income taxes10,779483(11,085)(28,826)(28,649)Depreciation and amortization17,44844,3919,5177,83179,187Non-operating (income) expense (1)1,001(1,008)1,554(6,942)(5,395)Foreign exchange (gain) loss(1)(315)1,5803751,639Transaction costs(2)—3,40515012,87916,434Restructuring charges(3)—1,5951,789563,440Decommissioning costs(4)—9271,416—2,343Share-based compensation———6,2906,290Gain on sale-leaseback, net(135)———(135)Planned business divestiture(5)——190—190Impairment charges——9,653—9,653Other, net(6)544(58)2,7373763,599Allocation of corporate costs23,310—268(23,578)—     Adjusted EBITDA$        79,685$            84,574$          (17,685)$          (16,536)$          130,038Rent expense associated with triple net operating leases(7)31,32031,320     Adjusted EBITDAR$      111,005$          161,358(1)Non-operating (income) expense includes: (i) change in value of naming rights liabilities, (ii) non-operating items of equity method investments including Bally's share of net income or loss on an investment and depreciation expense related to the Rhode Island joint venture, and (iii) other (income) expense, net.(2)Includes financing costs incurred in connection with the Hard Rock Biloxi and Tiverton sale lease-back transactions, and acquisition, integration and other transaction related costs.(3)Restructuring costs related to the Interactive business workforce reduction.(4)Costs  related to the decommissioning of the Company's sports betting platform in favor of outsourcing the platform solution to third parties.(5)Losses related to a North America Interactive business that Bally's is marketing as held-for-sale as of June 30, 2023.(6)Other includes the following items: (i) non-routine legal expenses and settlement charges for matters outside the normal course of business, (ii) demolition costs related to a failed parking garage structure at our Bally's Atlantic City property, and (iii) other individually de minimis expenses.(7)Consists of the operating lease components contained within our triple net master lease dated June 4, 2021 with GLPI for the real estate assets used in the operation of Bally's Evansville, Bally's Dover, Bally's Quad Cities, Bally's Black Hawk, Hard Rock Biloxi and Bally's Tiverton, the individual triple net lease with GLPI for the land underlying the operations of Tropicana Las Vegas, and the triple net lease assumed in connection with the acquisition of Bally's Lake Tahoe for real estate and land underlying the operations of the Bally's Lake Tahoe facility. BALLY'S CORPORATION  Revenue and Reconciliation of Net Income (Loss) to Adjusted EBITDA by Segment (unaudited) (in thousands) Three Months Ended June 30, 2022Casinos & ResortsInternational InteractiveNorth America InteractiveOtherTotalRevenue$      299,875$      234,571$        18,050$                    —$      552,496Net income (loss)$        70,775$        42,504$       (24,766)$          (29,012)$        59,501Interest expense, net of interest income(10)(130)(1)45,96945,828Provision (benefit) for income taxes27,229(5,399)(5,758)(10,638)5,434Depreciation and amortization14,75744,3117,2738,43274,773Non-operating (income) expense(1)—6987(24,336)(23,631)Foreign exchange loss—(263)(1,548)(2)(1,813)Transaction costs(2)3,01888448711,13115,520Share-based compensation———6,3226,322Gain on sale-leaseback(50,766)———(50,766)Other, net(3)2,580—2,8873945,861Allocation of corporate costs20,4187545(20,970)—     Adjusted EBITDA$        88,001$        82,612$       (20,874)$          (12,710)$      137,029Rent expense(4)$        11,471$        11,471(1)Non-operating (income) expense includes: (i) change in value of naming rights liabilities, (ii) adjustment on bargain purchases and, (iii) other (income) expense, net.(2)Includes acquisition costs, integration costs related to our Interactive business and financing related expenses, including costs incurred to address the Standard General takeover bid, the tender offer process and rent expense related to Bally's Black Hawk and Quad Cities properties as the Company entered into sale lease-back transactions associated with these properties to finance the Tropicana Las Vegas property acquisition.(3)Other includes the following non-recurring items: (i) non-routine legal expenses, net of recoveries for matters outside the normal course of business, (ii) other individually de minimis expenses.(4)Rent expense associated with triple net leases for the Company's Bally's Lake Tahoe, Bally's Evansville and Bally's Dover properties.  BALLY'S CORPORATION  Revenue and Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDAR by Segment (unaudited) (in thousands) Six Months Ended June 30, 2023Casinos & ResortsInternational InteractiveNorth America InteractiveOtherTotalRevenue$      661,948$          493,346$            49,632$                    —$       1,204,926Net income (loss)$      359,618$            51,077$          (52,989)$        (205,021)$          152,685Interest expense, net of interest income13(529)—130,873130,357Provision (benefit) for income taxes85,753825(18,727)41,242109,093Depreciation and amortization34,63890,45312,99215,665153,748Non-operating (income) expense(1)1,962(805)769(11,178)(9,252)Foreign exchange (gain) loss(3)2,5403,646(236)5,947Transaction costs(2)—8,9141,38328,15538,452Restructuring charges(3)—10,9277,6471,68820,262Decommissioning costs(4)—9271,416—2,343Share-based compensation———12,33012,330Gain on sale-leaseback, net(374,321)———(374,321)Planned business divestiture(5)——2,054—2,054Impairment charges——9,653—9,653Other, net(6)(1,599)5463,3017943,042Allocation of corporate costs47,509—607(48,116)—     Adjusted EBITDA$      153,570$          164,875$          (28,248)$          (33,804)$          256,393Rent expense associated with triple net operating leases(7)62,55862,558Adjusted EBITDAR$      216,128$          318,951(1)Non-operating (income) expense includes: (i) change in value of naming rights liabilities, (ii) gain on extinguishment of debt, (iii) non-operating items of equity method investments including our share of net income or loss on an investment and depreciation expense related to our Rhode Island joint venture, and (iv) other (income) expense, net.(2)Includes financing costs incurred in connection with the Hard Rock Biloxi and Tiverton sale lease-back transactions and acquisition, integration and other transaction related costs.(3)Restructuring costs related to the Interactive business workforce reduction.(4)Costs  related to the decommissioning of the Company's sports betting platform in favor of outsourcing the platform solution to third parties.(5)Losses related to a North America Interactive business that Bally's is marketing as held-for-sale as of June 30, 2023.(6)Other includes the following items: (i) non-routine legal expenses and settlement charges for matters outside the normal course of business, (ii) demolition costs related to a failed parking garage structure at our Bally's Atlantic City property, and (iii) other individually de minimis expenses.(7)Consists of the operating lease components contained within our triple net master lease dated June 4, 2021 with GLPI for the real estate assets used in the operation of Bally's Evansville, Bally's Dover, Bally's Quad Cities, Bally's Black Hawk, Hard Rock Biloxi and Bally's Tiverton, the individual triple net lease with GLPI for the land underlying the operations of Tropicana Las Vegas, and the triple net lease assumed in connection with the acquisition of Bally's Lake Tahoe for real estate and land underlying the operations of the Bally's Lake Tahoe facility.  BALLY'S CORPORATION  Revenue and Reconciliation of Net Income (Loss) to Adjusted EBITDA by Segment (unaudited) (in thousands) Six Months Ended June 30, 2022Casinos & ResortsInternational InteractiveNorth America InteractiveOtherTotalRevenue$      579,845$          487,645$        33,277$                    —$   1,100,767Net income (loss)$        98,798$            71,312$       (50,139)$          (58,581)$        61,390Interest expense, net of interest income(6)36(3)91,48691,513Provision (benefit) for income taxes36,457(8,566)(8,642)(19,390)(141)Depreciation and amortization30,11090,37516,24716,922153,654Non-operating (income) expense(1)—3937(43,328)(42,928)Foreign exchange (gain) loss—1,157(3,143)(9)(1,995)Transaction costs(2)3,0181,22577616,52421,543Share-based compensation———11,41711,417Gain on sale-leaseback, net(50,766)———(50,766)Other, net(3)2,416—3,7371,8898,042Allocation of corporate costs41,7647961(42,732)—     Adjusted EBITDA$      161,791$          155,939$       (40,199)$          (25,802)$      251,729Rent expense(4)$        22,882$        22,882(1)Non-operating (income) expense includes: (i) change in value of naming rights liabilities, (ii) gain (adjustment) on bargain purchases, (iii) loss on extinguishment of debt and (iv) other (income) expense, net.(2)Includes acquisition costs, integration costs related to our Interactive business and financing related expenses, including costs incurred to address the Standard General takeover bid, the tender offer process and rent expense related to Bally's Black Hawk and Quad Cities properties as the Company entered into sale lease-back transactions associated with these properties to finance the Tropicana Las Vegas property acquisition.(3)Other includes the following items: (i) non-routine legal expenses, net of recoveries for matters outside the normal course of business, (ii) storm related gains related to insurance recoveries received due to the effects of Hurricane Zeta on the Company's Hard Rock Biloxi property, (iii) rebranding expenses in connection with Bally's corporate name change, and (iv) other individually de minimis expenses.(4)Rent expense associated with triple net leases for the Company's Bally's Lake Tahoe, Bally's Evansville and Bally's Dover properties. BALLY'S CORPORATION Selected Financial Information (unaudited) Balance Sheet Data (in thousands)June 30,2023December 31,2022Cash and cash equivalents$                183,611$                212,515Restricted cash189,23752,669Term Loan Facility$             1,915,825$             1,925,550Revolving Credit Facility15,000137,0005.625% Senior Notes due 2029750,000750,0005.875% Senior Notes due 2031735,000750,000Less: Unamortized original issue discount(25,715)(27,729)Less: Unamortized deferred financing fees(42,940)(46,266)Long-term debt, including current portion$             3,347,170$             3,488,555Less: Current portion of Term Loan and Revolving Credit Facility$                (29,450)$                (19,450)Long-term debt, net of discount and deferred financing fees; excluding current portion $             3,317,720$             3,469,105 Cash Flow DataThree Months Ended June 30,Six Months Ended June 30,(in thousands)202320222021202320222021Capital expenditures$  75,868$  61,565$  20,458$ 119,546$ 116,081$  35,785Cash paid for internally developed software7,19916,499—14,34231,455—Acquisition of gaming licenses8,25050,700—10,15051,560250Cash payments associated with triple net operating leases(1)29,51613,000—58,61023,000—(1)Consists of payments made in connection with Bally's triple net operating leases, as defined above. BALY-INV CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/ballys-corporation-announces-second-quarter-2023-results-301892401.htmlSOURCE Bally's Corporation

PR Newswire

Bally's Corporation Announces Second Quarter 2023 Results

https://finance.yahoo.com/news/ballys-corporation-announces-second-quarter-110000913.html

564bdd7d-01b9-39af-80e3-0a803228213b

BALY

Penn Entertainment (PENN) believes its $2 billion dollar deal to create ESPN Bet will "redefine" the sports betting landscape. But some on Wall Street don't believe it will be so straightforward."It’s going to be a show-me story," Joel Simkins, a managing director in Houlihan Lokey's technology group, said via email.Among analysts' concerns: Competitors FanDuel and DraftKings (DKNG) have already seized large portions of market share in the US and believe they are closing in on profitability. All while Wall Street remains hyper-focused on whether expansive marketing spend can lead to profits after some in the industry have floundered. "Just because you have a lot of eyeballs watching it doesn't translate to market share automatically," Simkins said.Penn is paying ESPN (DIS) $1.5 billion over 10 years and an additional $500 million in PENN stock warrants in exchange for exclusive rights to odds attribution, digital product integrations, and access to ESPN's talent. This means Penn's "ESPN Bet" branding and gambling odds will be plastered on the screen during game broadcasts and mentioned by on-air talent throughout shows.For ESPN, the deal offers an opportunity to "significantly grow engagement with ESPN consumers, particularly young consumers," Disney CEO Bob Iger said on the company's earnings call Wednesday.If successful, Penn believes the tie-up with ESPN could help bring the struggling online operator additional market share.In June 2023, Penn's then-Barstool-tied sportsbook produced revenue of $1.2 million in Pennsylvania, the largest state where Penn operates mobile sports wagering, representing about 3.5% of the market share. Meanwhile, FanDuel and DraftKings combined have a 72% share of the state, with FanDuel alone owning 49%. Penn has included incentives for ESPN based on how much market share it gains but declined to specify those metrics on the earnings call.Story continues"We're not doing this deal to be a 4% or 5% market share player," Snowden said on the call. "That's not going to be acceptable for us. It's not going to be acceptable for ESPN. So you should assume if those are the ranges you're in, that's not going to work out long-term."DraftKings and FanDuel haven't relied on broadcast partnerships to gain their market share either. Instead, the two sports betting-focused apps have defined themselves in the market with top-tier technology and the widest array of options."Issues remain as to the magnitude of share given the later entry, as well as the competitiveness of product advancement, which has been the current success driver rather than eyeballs," Jefferies analyst David Katz wrote in a note on Tuesday night.ESPN logo before the VRBO Fiesta Bowl on December 31, 2022, at State Farm Stadium in Glendale, Arizona. (Photo by Kevin Abele/Icon Sportswire via Getty Images)A sour history of media dealsGiven Penn's current place in the market, ESPN spurring increased market share would bring validity to the strategy of partnering with a broadcast network, which hasn't worked often in the past.Sports streamers fuboTV (FUBO), Bally's (BALY), Fox (FOX), and PointsBet have all tried some version of combining exclusive sports broadcasts with their own live odds. All four of those companies have either had their sportsbooks acquired or shut down altogether since.In 2020, PointsBet's inked a $500 million dollar deal with NBC Sports that included exclusive broadcast integrations among other similar features to ESPN and Penn's deal.At the time, PointsBet CEO Johnny Aitken called NBC "a megaphone for sports" and noted exclusivity with NBC was "very valuable." But the partnership never translated to big market share gains. Fanatics purchased PointsBet for $225 million in June."They were expected to get double-digit market share gains," Macquarie gaming analyst Chad Beynon told Yahoo Finance Live. "After we saw some of these media deals not work out as expected I think there's been just more questions around if this is the right way to acquire customers, maintain customers, and are you able to hit the goals?"For its part, Penn's deal with ESPN could be more additive than prior deals. ESPN recently added gambling celebrity Pat McAfee to its lineup of talent and owns a wider array of sports rights than any other broadcaster in the US."It sounds like they do have a lot of control with the personalities, with the content and there will be a board seat from ESPN on Penn's board," Beynon said. "So, it certainly looks like they're tied up as close as they could be."Josh Schafer is a reporter for Yahoo Finance.Click here for the latest stock market news and in-depth analysis, including events that move stocksRead the latest financial and business news from Yahoo Finance

Yahoo Finance

Penn's splashy $2 billion deal with ESPN might not be a slam dunk

https://finance.yahoo.com/news/penns-splashy-2-billion-deal-with-espn-might-not-be-a-slam-dunk-195948927.html

e230dccc-71be-4e7c-b709-123bc81940cd

BANC

PacWest Bancorp (NASDAQ: PACW) saw its stock price fall 14.6% in August, according to data provided by S&P Global Market Intelligence. The major market indexes were all down in August as the S&P 500 fell 1.6%, the Dow Jones Industrial Average dropped 2.4%, and the Nasdaq Composite plunged 1.7% last month. PacWest, based in Beverly Hills, California, is the 52nd-largest U.S. bank, with roughly $38.2 billion in assets as of June 30.Continue reading

Motley Fool

Why PacWest Bancorp Stock Fell 14.6% in August

https://finance.yahoo.com/m/7839476f-bff5-3654-8987-c141266d4b6b/why-pacwest-bancorp-stock.html

7839476f-bff5-3654-8987-c141266d4b6b

BANC

Banc of California, Inc. (NYSE:BANC) is about to trade ex-dividend in the next three days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Accordingly, Banc of California investors that purchase the stock on or after the 14th of September will not receive the dividend, which will be paid on the 2nd of October.The company's next dividend payment will be US$0.10 per share, and in the last 12 months, the company paid a total of US$0.40 per share. Last year's total dividend payments show that Banc of California has a trailing yield of 3.2% on the current share price of $12.43. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it's growing. View our latest analysis for Banc of California Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Banc of California paid out just 23% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances.When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.Click here to see the company's payout ratio, plus analyst estimates of its future dividends.historic-dividendHave Earnings And Dividends Been Growing?Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings fall far enough, the company could be forced to cut its dividend. Fortunately for readers, Banc of California's earnings per share have been growing at 18% a year for the past five years.Story continuesMany investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Banc of California's dividend payments per share have declined at 1.8% per year on average over the past 10 years, which is uninspiring.The Bottom LineHas Banc of California got what it takes to maintain its dividend payments? Companies like Banc of California that are growing rapidly and paying out a low fraction of earnings, are usually reinvesting heavily in their business. This is one of the most attractive investment combinations under this analysis, as it can create substantial value for investors over the long run. We think this is a pretty attractive combination, and would be interested in investigating Banc of California more closely.In light of that, while Banc of California has an appealing dividend, it's worth knowing the risks involved with this stock. For example - Banc of California has 1 warning sign we think you should be aware of.A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

There's A Lot To Like About Banc of California's (NYSE:BANC) Upcoming US$0.10 Dividend

https://finance.yahoo.com/news/theres-lot-banc-californias-nyse-122412329.html

9e913694-8402-35e9-a382-293f8290b745

BASE

For the quarter ended July 2023, Couchbase, Inc. (BASE) reported revenue of $43.14 million, up 8.4% over the same period last year. EPS came in at -$0.17, compared to -$0.19 in the year-ago quarter.The reported revenue represents a surprise of +3.26% over the Zacks Consensus Estimate of $41.78 million. With the consensus EPS estimate being -$0.23, the EPS surprise was +26.09%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.Here is how Couchbase, Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:ARR: $180.70 million compared to the $177.87 million average estimate based on four analysts.Total subscription revenue: $40.95 million compared to the $39.41 million average estimate based on five analysts.Revenue- Services: $2.19 million versus the five-analyst average estimate of $2.39 million. The reported number represents a year-over-year change of -20%.View all Key Company Metrics for Couchbase, Inc. here>>>Shares of Couchbase, Inc. have returned +10.3% over the past month versus the Zacks S&P 500 composite's -0.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportCouchbase, Inc. (BASE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Here's What Key Metrics Tell Us About Couchbase, Inc. (BASE) Q2 Earnings

https://finance.yahoo.com/news/heres-key-metrics-tell-us-133007841.html

65be7612-bb20-3245-a564-a220db3e265a

BASE

ParticipantsEdward Akira Parker; MD; ICR Capital LLCGregory N. Henry; Senior VP & CFO; Couchbase, Inc.Matthew M. Cain; Chair, President & CEO; Couchbase, Inc.Brad Robert Reback; MD & Senior Equity Research Analyst; Stifel, Nicolaus & Company, Incorporated, Research DivisionHoward Ma; Research Analyst; Guggenheim Securities, LLC, Research DivisionImtiaz Ahmed Koujalgi; Analyst; Wedbush Securities Inc., Research DivisionIttai Kidron; MD; Oppenheimer & Co. Inc., Research DivisionJason Noah Ader; Partner & Co-Group Head of Technology, Media and Communications; William Blair & Company L.L.C., Research DivisionMatthew George Hedberg; Analyst; RBC Capital Markets, Research DivisionRaimo Lenschow; MD & Analyst; Barclays Bank PLC, Research DivisionRobert Cooney Oliver; Senior Research Analyst; Robert W. Baird & Co. Incorporated, Research DivisionRudy Grayson Kessinger; Senior VP & Senior Research Analyst; D.A. Davidson & Co., Research DivisionUnidentified AnalystPresentationOperatorGreetings, and welcome to the Couchbase Second Quarter Fiscal 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.It is now my pleasure to introduce your host, Edward Parker, Head of Investor Relations. Thank you, Edward. You may begin.Edward Akira ParkerGood afternoon, and welcome to Couchbase's second quarter 2024 earnings call. We will be discussing the results announced in our press release issued after the market close today. With me are Couchbase's Chair, President and CEO, Matt Cain; and CFO, Greg Henry.Today's call will contain forward-looking statements, which include statements concerning financial and business trends and strategies, market size, our expected future business and financial performance and financial condition and our guidance for future periods. These statements reflect our views as of today only and should not be relied upon as representing our views of any subsequent date and we will not undertake any duty to update these statements. Forward-looking statements by their nature address matters that are subject to risks and uncertainties that could cause actual results to differ materially from expectations. For a discussion of the material risks and other important factors that could affect our actual results, please refer to the risks discussed in today's press release and our most recent annual report on Form 10-K or quarterly report on Form 10-Q filed with the SEC.During the call, we will also discuss certain non-GAAP financial measures which are not prepared in accordance with Generally Accepted Accounting Principles. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures as well as how we define these metrics and other metrics is included in our earnings press releases, which are available on our Investor Relations website.With that, let me turn the call over to Matt.Story continuesMatthew M. CainThank you, Edward, and good afternoon, everyone. On today's call, Greg and I will provide details on our second quarter results as well as our third quarter and full year fiscal 2024 guidance. I'll start off with a few highlights of our Q2 financial results.Couchbase delivered a strong quarter, once again beating our guidance across all metrics. I am pleased with the team's execution against our strategy to deliver top line momentum while outperforming on profitability, all against a difficult economic environment. Total annual recurring revenue, or ARR, was $180.7 million, up 24% year-over-year, up 23% in constant currency and 5% sequentially. Revenue in Q2 was $43.1 million, up 8% year-over-year and 5% sequentially. Our non-GAAP gross margin remains best-in-class at 87.2%. Non-GAAP operating loss was $9.2 million and non-GAAP operating margin was 4 percentage points above the midpoint of our implied guidance range. This demonstrates our focus on increasing efficiency across our business and continued operating expense discipline.As we crossed the halfway point of the fiscal year, I'm especially proud of the progress we're making on the 4 key priorities we laid out for fiscal 2024. Focus on top line growth, increase the mix of Capella, drive sales and marketing efficiency and accelerate the pace of leverage in our model. While there is much more to do across all of these to reach our full potential, our momentum is building. We believe we are set up for a strong second half of the year and more importantly, beyond. We have many initiatives underway to continue our progress, but I want to touch specifically on the exciting opportunity we see with AI and how it will be a tailwind for all 4 of our key priorities.To begin, databases are the unsung heroes of AI because without data, there is no AI. The fact is behind every application is a database. From day 1, we have architected a cloud database platform that enables demanding applications to not only perform but provide rich, personalized differentiated experiences for end users. Combining operational and analytical capabilities, our multimodal platform also seamlessly integrates advanced services like indexing, eventing, full tech search and more in a single solution for developers.Our platform and unique architecture are perfectly suited for the massive performance and scalability requirements that AI applications require. We're investing in additional AI capabilities that will further extend the value of Couchbase as a cloud database platform for modern AI applications. Generative AI is the next great catalyst for modern applications. Developers and customers are exploring ways to build AI-powered apps that can run anywhere with our platform. To cement our long-term position as a destination for AI applications, our AI strategy has the following 4 pillars. First, drive developer productivity and adoption. Second, optimize AI processing. Third, enable AI-powered apps anywhere, including at the edge. And fourth, build and foster a vibrant AI ecosystem.With that backdrop, I'm excited that last week, we announced a private preview of Capella iQ, which adds generative AI capabilities to our Capella offering to greatly enhance developer productivity. Developer productivity has never been more important given the pressure to rapidly innovate and deliver increasingly more complex workflows. This new capability in Capella will allow developers to use natural language prompts to quickly and easily generate queries in code, sample data sets and unit tests. What used to take a developer hours to code takes minutes with Capella iQ, moving from spot to code in just a few clicks. I encourage you to visit our website and watch the demo video of Capella iQ to see just how profound of an impact the feature will have for developers.Leveraging generative AI to build and test applications more quickly and more easily in Capella leads to higher developer productivity and quality with the ultimate result being faster and more efficient time-to-market. We expect this will drive increased Capella adoption and consumption. Our vision for Capella iQ is to be a copilot for developers that makes intelligent recommendations during the development process and we will continue to build out and enhance this important new feature.On the go-to-market side, we continue to focus on improving efficiency by driving ongoing operational improvements and investing in our partner ecosystem. AI is undoubtedly gaining momentum across our partner ecosystem, which is why last week, we also announced our Couchbase AI Accelerate Partner Program. This program is designed to make it easier for customers to build AI applications with Capella and support integrations with the broader AI and data ecosystem. It reduces friction for customers who are building and deploying models for AI applications and includes technical, enablement and go-to-market opportunities for participating partners.Additionally, we continue to deepen and expand our relationships with our strategic partners who are starting to see next-gen AI applications deployed on their clouds. At AWS, we're developing ongoing ways to reach and serve our customers through an increasing number of go-to-market activities around joint asset creation, developer engagement and AWS summits around the world. And I'm happy to share that Couchbase is now a Google Cloud premier partner. The aforementioned recent announcements illustrate how exciting the AI opportunity tailwind is and how it drives further progress against our 4 key priorities for the year. While it is still early days, the potential for AI to drive significant transformation is enormous.That said, we continue to deliver additional important Capella innovations for customers at a rapid pace. Last week, we also announced several other new updates to Capella that further enhance the developer experience, increase efficiency and make it easier to operate the cloud database platform. Our differentiated technology remains at the heart of who we are and we will continue to work hard every day to rapidly bring market-leading enhancements and capabilities to our offering.Now, turning to customer wins. I am pleased with the breadth of activity across industries and our product portfolio that we saw this quarter. Starting with Capella, our managed service continues to gain momentum. Once again, Capella represented the majority of our new logos and was an important contributor to our strong net retention rate. In Q2, we saw new Capella wins across many industries, including financial services, academia, manufacturing, telco, high-tech and gaming. We also continue to see existing customer migrations and expansions with Capella.During the quarter, leading global fintech company, MoneyGram decided to expand its partnership with us and invest in Capella to offload database management and further improve TCO. Switching to enterprise. We were excited to add several impressive new logos during the quarter, including a large banking group in Europe. This customer had to migrate away from Oracle because its legacy relational database was not delivering the desired performance. This customer is using Couchbase for its derivatives clearing application and selected our platform for its superior performance and speed.I'm also pleased that we won an AI-powered application with Tondo Smart, a fast-growing technology company in Israel that delivers a connected devices platform for smart cities. Tondo selected Couchbase to power its cloud-based smart city management platform, including AI for city sensor operational excellence use cases. This customer needed a cloud database platform that could deliver high performance, scalability and mobile use cases. Only Couchbase could deliver on these needs with the most compelling price performance. We also saw significant enterprise expansions with long-term customers, including a large Australian multinational banking company, one of the U.S.'s largest financial services companies and a major consumer electronics retailer.Additionally, Tesco, a British multinational grocery retailer and one of the world's largest retailers has signed a multiyear agreement. Trendyol is the leading multi-category e-commerce marketplace in Turkey and one of the top e-commerce platforms in the world. Recently, Trendyol significantly expanded its partnership with Couchbase to help support many of its most important applications, including its online shopping cart, delivery tracking, product catalog, coupons, claims, inventory management, preorders and customer personalization. This was one of the biggest expansions in our history and we are pleased to be such a valued partner for Trendyol's growing business.Now, let me provide a few thoughts on the near-term demand environment. As we discussed over the last 2 quarters, the macro uncertainty continues to present headwinds for IT spending and we continue to see longer deal cycles, extra layers of scrutiny and approval and customers electing to buy in smaller increments. These trends persisted through the end of the quarter, but I am very pleased with our execution against these headwinds. That said, we continue to see a healthy pipeline of deals and interest in our cloud database platform, driven by trends such as the rapid adoption of cloud, desire for greater cost efficiency and IT modernization.And though it is early days, we believe AI will drive a transformational impact for businesses as customers reimagine existing applications and create net nuance. AI requirements of extremely high performance and massive scale, coupled with the convergence of operational and analytical capabilities are the foundational elements of how we are architected. These dynamics are creating additional tailwinds and opportunities for us as a company while further leveraging the very strengths that make us who we are. You've often heard me say that Couchbase has been built for this moment and I think that's as true today as it ever has been.In closing, we're making progress on our initiatives. We're committed to focusing on what we can control and we're nimble in navigating areas we cannot control. We remain dedicated to delivering against our key priorities for fiscal 2024, focus on top line growth, increase the mix of Capella, drive further sales and marketing efficiency and accelerate the pace of leverage in our model. Before handing the call over to Greg, I want to emphasize one of our core values that I've repeated many times before. At Couchbase, we attack hard problems driven by customer outcomes.With that, I'll hand the call over to Greg to walk you through our results in more detail. Greg?Gregory N. HenryThanks, Matt, and thanks, everyone, for joining us. We had another strong quarter as we beat guidance across all key metrics. Despite the elevated level of deal scrutiny that Matt mentioned, we are pleased with our execution, our dedication to delivering value to our customers and our ability to navigate the environment while driving healthy outperformance in our operating loss guidance.I'll now walk you through our second quarter in more detail before providing our guidance for the third quarter and full year. Total annual recurring revenue or ARR was $180.7 million at the end of the second quarter, representing 24% growth year-over-year or 23% growth year-over-year on a constant currency basis and 5% sequentially. Revenue for the second quarter was $43.1 million, an increase of 8% year-over-year and 5% sequentially. Recall that revenue in the year ago quarter benefited from strong subscription revenue growth as well as outperformance in our on-demand business and strength in professional services, both of which are nonrecurring.Subscription revenue for the second quarter was $41 million, an increase of 11% year-over-year and 6% sequentially. Professional services revenue for the second quarter was $2.2 million, a decline of 20% year-over-year and 11% sequentially, consistent with our expectations following outsized strength in professional services in fiscal 2023. We continue to expect contribution as a percentage of revenue in fiscal 2024 to be below recent levels. Our ARR per customer performance in the second quarter was $261,000, up from $254,000 in the first quarter, up 14% year-over-year and indicative of the growing wallet share we have with large customers. As a reminder, as Capella continues to grow in revenue contribution, we expect ARR per customer growth could moderate or decline in future quarters.Our dollar-based net retention rate, or NRR, continues to exceed 115%, driven by strong renewal and upsell activity across our base of larger enterprise customers. Our NRR has been steadily improving thanks to Capella and our in-quarter NRR was the highest in the last 3 years. We exited the quarter with 691 customers, an increase of 12 net new customers from the first quarter. As Matt mentioned, Capella once again represented the majority of new logos in the quarter and we grew our Capella customer logo comp by more than 20% from the first quarter. We're encouraged by the strength of our new logo pipeline and remain confident in our ability to reliably expand logos as evidenced by our consistent ARR growth and our strong retention metrics against a more challenging spending environment.In discussing the remainder of the income statement, please note that unless otherwise stated, all references to our expenses, results of operation and share count are on a non-GAAP basis.In Q2, our gross margin remained strong at 87.2%. This compares to a gross margin of 88.7% a year ago and 86.4% last quarter. As a reminder, as Capella mix increases, we expect gross margin will decline over time. Turning to expenses. We continue to invest to capture the generational opportunity we see in front of us that are focused on improving the efficiency of our growth. We are pleased with our execution on this front as our expense discipline and early benefits from our cost saving initiatives resulted in us outperforming our operating loss outlook.Our sales and marketing expenses for Q2 were $28 million or 65% of revenue compared to $24.9 million or 63% of revenue a year ago. Research and development expenses for Q2 were $12.6 million or 29% of revenue compared to $12.2 million or 31% of revenue a year ago. We continue to thoughtfully invest in our as-a-service offering as well as an additional features to bolster our platform. General and administrative expenses for Q2 were $6.3 million or 15% of total revenue compared to $6.5 million or 16% of revenue a year ago. Non-GAAP operating loss for Q2 was $9.2 million or a negative 21% operating margin, 4 percentage points higher than the midpoint of our guidance compared to an operating loss of $8.4 million or negative 21% operating margin a year ago. Non-GAAP net loss attributable to common stockholders for Q2 was $8 million or negative $0.17 per share.Turning to the balance sheet and cash flow statement. We ended Q2 with [$165.8] million in cash, cash equivalents and short-term investments. We remain well capitalized to execute against our long-term growth strategy. Our remaining performance obligations or RPO totaled $170.6 million at the end of Q2, an increase of 2% year-over-year. We expect to recognize approximately 67% or $114.4 million of total RPO as revenue over the next 12 months, which represents 11% year-over-year growth. Operating cash flow for Q2 was negative $500,000 and free cash flow was negative $1.6 million or negative 4% free cash flow margin. We are pleased with the progress we have made in our free cash flow profile and remain committed to driving further improvement.Now, I will provide guidance for Q3 and the full year fiscal 2024. As Matt discussed, we continue to see solid momentum and our pipeline remains strong. Furthermore, we anticipate that our investments in our product capabilities, partner ecosystem and go-to-market motion will complement our momentum in fiscal 2024. That said, we are mindful of the macro headwinds and continue to carefully monitor their impact on our business, including bookings, pipeline conversion, retention and expansion rates, deal sizes, sales cycles, logo acquisition and sales productivity. As such, our outlook maintains a consistent degree of conservatism across all of those metrics to account for the uncertainty as well as lack of visibility into how the macro may impact consumption trends for emerging as a service offering.With these factors in mind, for the third quarter of fiscal 2024, we anticipate ARR in the range of $185 million to $188 million, which represents 23% growth year-over-year at the midpoint. We expect total revenue in the range of $42.7 million to $43.3 million or a year-over-year growth of 12% at the midpoint. We expect a non-GAAP operating loss in the range of negative $9.9 million to negative $9.1 million. For the full year of fiscal 2024, we are raising our ARR outlook and now expect ARR in the range of $195.5 million to $199.5 million or 21% growth at the midpoint. This compares to our prior outlook of $191.5 million to $195.5 million or 18% growth at the midpoint.We continue to expect total revenue in the range of $171.7 million to $174.7 million or a year-over-year growth of 12% at the midpoint. As a reminder, we've historically seen variability with respect to the implementation timing of certain enterprise deals, which impacts our revenue visibility along with new or migrated Capella customers. We, therefore, continue to view ARR as a better indicator than revenue of the strength of our business. While we anticipated that contribution from services revenue in fiscal 2024 would be below recent levels, we now expect this dynamic to be more pronounced this fiscal year due to customers selecting fewer services as a result of macro-related budgetary pressures as well as the naturally lower services attach rate with Capella. And finally, we are decreasing our operating loss outlook and now expect a non-GAAP operating loss in the range of negative $42.5 million to negative $38.5 million.With that, Matt and I are happy to take your questions. Operator?Question and Answer SessionOperatorThank you. We will now be conducting a question-and-answer session. (Operator Instructions) Our first question is from Matt Hedberg with RBC Capital Markets.Matthew George HedbergCongrats on the results here. Matt, I want to start with you. I think the way that you outlined kind of the 4 ways that you're thinking about gen AI was super helpful. And I think in your script, you mentioned you plan to monetize it with sort of increased Capella adoption and consumption. But I'm wondering, for some of the other products like Capella iQ, is there an additional monetization strategy with that?Matthew M. CainMatt, good to hear from you. Simple answer is that will be part of the Capella offering and we expect to monetize it with additional consumption, more developer reach, better go-to-market efficiency. So, we think there's a compelling impact to the business. But as far as the service itself is -- will be part of -- again, part of Capella.Matthew George HedbergThat makes a lot of sense. And then I know -- on the hyperscaler front, I know you've had a lot of progress with AWS. It was great to hear your comments on GCP this quarter. I'm just sort of wondering when you're seeing deals come in through partners like that, what does the profile of those customers look like? And how would you talk about sort of the pipeline for those hyperscaler type deals?Matthew M. CainMatt, so we're excited about the ongoing momentum with AWS. Obviously, the bar that we got over with GCP and their premier program, the announcement with our AI specific partner program and the benefits that are going to bring there, investing in the ecosystem and thinking about our customers and developers and the total tools they want to use, partnerships are going to continue to be a big part of our business. Quite frankly, we're seeing success with partners across all deal types, up to and including our very largest customers that are working on Capella migrations, all the way to our [5,000] starter packs and relatively new regions for us.So, we think a lot about not just partner source, but partner influence. And you can appreciate that all of the partners that we work with have tremendous reach and credibility with customers and the extent to which we can build joint solutions and have strategic account plans and new territory planning with them, all of which we're seeing across the business really beneficial to us and a big part of that go-to-market efficiency that we've been talking about for some time.OperatorOur next question is from Ittai Kidron with Oppenheimer.Ittai KidronGreg, I wanted to ask you about revenue, ARR and cRPO. So, looking at your revenue growth, I think it's the fifth quarter in a row where it's declining, decelerating from over 30% to now to 10% on a year-over-year basis. Your ARR, however, is holding quite firm at the 23%, 24% range and your cRPO is in the teens, in the low-teens. So, help me reconcile the three? How should I think about the evolution of these 3 key metrics going forward? And why are they so far apart, I guess?Gregory N. HenryIttai, good to hear from you. Yes. Well, first, I'd point out just ARR obviously does not include services or any of our on-demand business, whereas revenue and RPO, cRPO would pick all that up. So, there is a little bit of sort of apples and oranges there. And again, just for the revenue perspective, particularly for this quarter, there was a couple of things. Our subscription business continues to do well. Services, as we talked about in our script, has been more impacted because of the macro. And so the demand is less. So, we're seeing that.And obviously, last year, at this time, just from a year-over-year comparison, we sort of peaked from both subscription revenue and services revenue and that's not repeating. I think the subscription revenue -- software revenue has been reasonably, reasonably constant. And we think we will continue to see an improvement on the subscription revenue as we go forward. On RPO and cRPO in particular, when we get towards some of the later stages of our contracts, whether they're 1 year or multiyear, that's when there's sort of less in the performance -- remaining performance obligations. So, we have a couple of our largest customers that are up for renewal between now and Q1, and we think that we will see -- start seeing an improvement on the RPO as well.Ittai KidronOkay. And just to be clear, you said Capella is not part of ARR?Gregory N. HenryNo, Capella is part of ARR. What's not part of ARR is professional services, any on-demand business.Ittai KidronAnd is it common to see Capella on demand or it's mostly 1 year contracts?Gregory N. HenryI'm sorry, could you repeat that?Ittai KidronCapella is it common to see consumption there on demand? Or is it mostly 1 year contracts or 1 or 3 year?Gregory N. HenryThe largest majority of the Capella business today is our annual credit model, which would fall into ARR.Ittai KidronMatt, one for you on the competitive side of the equation, Help me understand what you're seeing out there and what is changing for you. Some of your competitors are doing very well in the marketplace. I'm just trying to think about where you see your place in the market and then around the competitive front, anything from a win rate standpoint. I would greatly appreciate it.Matthew M. CainIttai, generally speaking, I'm pleased with how competitive we are. If you think about the nature of applications that we serve, the demand for high performance and scalability and cloud to edge architectures, have never been more prevalent than they are today. I think what's exciting to us is the additional, what I would call [at-bats] that we're getting with Capella and moving down market and bringing the full power of the Couchbase platform and all those benefits with the consumption model that is often preferred by customers, certainly, a majority of them.But when we get into competitive situations and we do proof-of-concepts and show the power of the platform and the integration of the services, the value proposition, the TCO dynamics that do more with less, I would say, in some ways, those value propositions have never been more relevant than they are now. And I think it increases the value that people see in our platform, both existing and new customers. So, I'm pleased with how we compete. We wake up every day with the appetite to do more and do better. But we're well positioned with dynamics like migration to cloud, modernization and many other things that we've talked about before.OperatorOur next question is from Sanjit Singh with Morgan Stanley.Unidentified AnalystThis is the on [Dione] for Sanjit. I first had a higher level question sort of on the AI strategy that you laid out. And I mean, it really resonates. And the way that we are trying to sort of think about these impacts are mostly in 2 ways, right? The new workloads relate to AI apps and then the migration, which in many case gets accelerated through AI. When you're thinking about kind of those 2 opportunities and I think you spent a lot of time talking about the first one of those 2, where do you see kind of the big opportunities, 1 or 2 years out? And then what are you doing today to position for both or maybe for the bigger ones more so than the other ones? Anything that you can kind of share around your strategy, both on the migration side as well as some of the new workload side that you already talked about?Matthew M. CainYes. Look, I appreciate the question. I think if we step back and say why are we all so excited about AI, we think it's the next great catalyst for applications, both existing and new. And we talk a lot about the demand for rich, personalized, customized applications that we use in our personal and professional lives and the demands on the database to be able to bring all that data to light, combine operational and analytical capabilities, leverage services like indexing, eventing and search in a single platform that's never been more relevant. And if you think about the amount of data that's going to need to be processed to further bring light with even more personalization and customization for future applications that lends itself very well to the Couchbase platform that was built for scale and performance from cloud to edge with TCO benefits.We're spending a lot of time with large customers today on their future plans of AI and us being a platform that is strategic to them for their existing applications. At the same time, as we mentioned in the prepared remarks, we had a net new customer in an emerging geography that is an AI company for smart cities that realize that Couchbase was the platform that they needed to process all their data and enable the application that they're building. So, as we have always done, we take an architectural approach to the data layer and then upon a solid foundation, integrate services in a compelling way for both customers and developers. You combine all that with the Capella consumption model and we're really bringing a lot of capabilities together in a seamless way that quite frankly, other vendors just aren't architected to do, certainly at the scale and performance.And so I think we're going to be able to get at both migrations and new workloads. As we look at the effect on our business because of the size of some of our existing customers, when we monetize the migration, that can be a little bit of a bigger contribution out of the gate. But we certainly spend a lot of time and attention on new logos. So, we'll be able to track the trending of which one is a bigger impact over time, but you'd be hard-pressed to find any customer that is thinking about a future data platform strategy that isn't inclusive of AI. And we think an integrated platform is the winning strategy and we're excited about our path forward.Unidentified AnalystMakes a lot of sense. And then maybe just one quick follow-up question. Just want to think about reconciling the customer numbers, I think you had 12 customers this quarter, which was a step up from last quarter, but still maybe compared to your commentary around pushing down market around kind of the new customer momentum, particularly around Capella, seems still a little bit low compared to some of the levels that you put up last quarter. Is there any way that you can help us think about sort of the new customer signings piece versus the customer churn piece? Is that churn piece still kind of weighing down that net add number? Or any kind of more granularity you can share on that, that would be super helpful.Gregory N. HenryYes. Happy to give some color there. So to your question, yes, we are still seeing a bit more churn on our smaller customers like we did last quarter, which are macro impacted. They do not have a big dollar impact. Our gross adds are performing well and in line with what we've seen historically. And as we mentioned in the script, Capella logo count actually is up 20% quarter-over-quarter. So, we're actually very pleased with how Capella is performing. We're still working through some of that smaller business churn. But overall, we think that we're going to start seeing sort of more favorable impacts to the customer count as we move forward through the second half of the year.OperatorOur next question is from Raimo Lenschow with Barclays.Raimo LenschowCan you speak a little bit to what you see in terms of pipeline and how pipeline is evolving? It looks like this quarter, things continue to improve for you. But like if you think about like early-stage pipeline, as you think about the back part of the year, what are you seeing there? And then I had one quick follow-up.Matthew M. CainRaimo, the simple answer is we feel really good about it. And hopefully, you've come to appreciate the level of detail that we have and how we measure that, everything from expansions in the back half, how we expect those to grow migrations to Capella new logos and understand the dynamics that are different there, the early-stage Capella progression in terms of trials into active deals. And so I think as we look across the entirety of the pipeline, both in terms of size, scale, velocity, those metrics look really good and we feel confident about the demand of the product and quite frankly, the execution of the go-to-market team to continue to grow and nurture the pipeline for the back half and beyond. But overall, I think it's an exciting mix of opportunities and indicative of the optimism we have in the business as we go forward.Raimo LenschowAnd then as we think about professional services going forward and when you speak about revenue, subscription revenue was obviously better. Like how do you think about that glide up there in terms of, professional services obviously then going to be a little bit of a headwind all the time? Like how do you think about managing that journey Greg? Congrats from me as well.Gregory N. HenryThanks, Raimo. Look, we obviously think professional services is key to our business. We believe it actually generates more software sales long term for us. But right now, what we're seeing is customers when they're budget constrained due to macro, they are opting to continue and grow on the software side, but a little bit less on the services side. So services, as we talked about at the beginning of the year would be slightly down versus last year, given we outperformed last year, there's probably slightly a bit more of a headwind than we expected.The second part of that is as we get more and more into Capella, given that it's a service into itself that they -- the customers are going to have a less -- smaller attach rate to the Capella business from a service perspective. So, I think both of those things are starting to play right now. But look, we still think services are important for customers and we'll continue to push them. But we're very pleased at how the software part of the business is outperforming while services is a slight offset to that.OperatorOur next question is from Rob Oliver with Baird.Robert Cooney OliverI had 2. Greg, I'll start with you since there was one earlier on customer count. So, the 20% growth in Capella customers certainly sounds great. And then just from some of the other commentary you guys made trying to triangulate it feels like the contribution might be about half new logos and half existing customers on Capella. Is that right? And how should we think about that going forward? I know you guys have said Capella is going to be the single best source of new logos for you. But sort of in the coming quarters, how should we think about that split?Gregory N. HenryFrom a new logo perspective, Rob, is that...Robert Cooney OliverYes.Gregory N. HenryYes.Robert Cooney OliverI'm thinking more Capella adds, it seems like -- because you guys had 20% growth of Capella customers, but based on your customers added on the commentary around that, some of them aren't new logos. So, I just wanted to get a sense of how that split is.Gregory N. HenryYes. I think -- so a couple of things. One is we do expect that Capella will continue to be the majority of new logos as we go forward into the second half of the year and next year. That's just where we're seeing the most momentum. I would remind you that we do have customers that have both enterprise, Couchbase enterprise and Couchbase Capella. And so they're -- in the total customer count, we only count them as one. But obviously, when we give you the Capella customer, everybody who's got Capella, but some of them also have enterprise. So, just when you're trying to sort of reconcile the math just to be aware of that.But again, we expect there to be the majority of that being Capella, but we're still obviously -- as Matt was talking about with the pipeline, we still have a good pipeline around enterprise business, too. So, we still plan on driving new logo business there. In terms of as you think about ARR and revenue, clearly, the migrations will be the larger because given our enterprise nature and the large customers, that will make up the bigger amount in the near term until the newer customers get ramped up.Robert Cooney OliverAnd then, Matt, you've gotten a couple of questions on AI and some of the macro already. So, I guess I'll ask about Capella consumption trends intra-quarter, kind of what you're seeing in terms of customer usage for those that adopt Capella up? Any color there would be real helpful.Matthew M. CainRob, we've said a couple of times that we have really high expectations for Capella and we're pleased with the momentum. In terms of consumption, I would say that's meeting if not exceeding even our internal expectations. I think it's proving the value proposition of do more with less, getting people focused on application development, while we run the database. I think they're realizing the benefits of the underlying Couchbase platform faster with more efficiencies. We've talked about the -- it driving a majority of net new logos. We're also seeing improvement on net retention rate driven by the success of Capella.Your comment on balancing migration to new logos is really important to us. While we are certainly focused on and excited on new logos and the area that we will do better, we see some really healthy migrations on Capella. In addition to the ones we provided, one of the largest hospitality companies in the world that's been an existing customer of ours, aggressively pursuing next-generation apps with Capella for the value proposition of scale and performance and cost effectiveness. And that's just one example. As we look at the pipeline and the planning that we're doing with existing customers while managing the pipeline of new, we're looking at consumption dynamics in both cohorts, if you will. And my comment on exceeding expectations actually pertains to both, which is something adding to our excitement about Capella overall.OperatorOur next question is from Jason Ader with William Blair.Jason Noah AderI just wanted to ask about the go-to-market side. I know we talked a lot about Capella here on this call. But are there any specific initiatives on the go-to-market side that are helping you get in front of new enterprise customers, which still seems to be like a challenge for you guys to get in front of -- to get the at-bats and to get in front of those prospects?Matthew M. CainJason, I would say there's probably not a thing that we're doing on the go-to-market side that isn't focused on getting in front of new customers, everything from demand, announcing new capabilities, building our pipeline, establishing channel programs, investing in geographies that are relatively new to us where we're seeing disproportionate demand and faster return. I think one of the things that we're very mindful of is you need a compelling event for an application to be developed. And for the applications that we serve, in a lot of cases, they are truly mission-critical and there's a time element to that initial land. We've talked about shortening that quite a bit with Capella.But our teams are maniacally focused on new customer acquisition and managing the pipeline and there's not an hour that goes by at Couchbase that we're not thinking about how to get better there. So as Greg mentioned, we expect that to improve. We're seeing the leading indicators that we would want. And I think it's an area that I would say unquestionably, we can and will do better as we go forward.Jason Noah AderAnd just following up on that, Matt, can you talk about any geographies? You mentioned sort of disproportionate success in certain geos. Anything that you can expand on there?Gregory N. HenryJason, it's Greg. I'll add it. I mean, look, there's a couple of regions in particular. So, we actually broke out our sort of EMEA region, and we run it as Europe and then EMEA, which is Turkey, Middle East and Africa. And we're seeing very good activity there. We have a great leader there. And then the other one, which we've been investing in the last couple of years is Asia-Pacific, which has also been doing very well. And as you can imagine, because we're newer there and newer technology, we're seeing a lot of Capella activity and a lot of new logo activity coming out of Asia-Pacific. So, those regions are really starting to become much more impactful to the business as we've invested there over the last few years.Jason Noah AderThanks, guys. Good luck.Gregory N. HenryThanks, Jason.OperatorOur next question is from Brad Reback with Stifel.Brad Robert RebackMatt, any reason you wouldn't break Capella out next year?Matthew M. CainIn what sense, Brad, like reporting wise?Brad Robert RebackYes.Matthew M. CainWe expect to break that out when we're ready and are excited to be at the point we can do that.Brad Robert RebackOkay. Switching gears, thoughts around using M&A to gain scale.Matthew M. CainYes, Brad, I mean, I think we pride ourselves at being agile with our strategy and we're always doing build by partner analysis. It's something that would be an ongoing consideration for us. And as we think particularly about M&A, there's benefits beyond scale, like in improving the platform in a particular area. So, I'd say it's part of what we do, but I'm not prepared to make comments beyond that.OperatorOur next question is from Taz Koujalgi with Wedbush Securities.Imtiaz Ahmed KoujalgiActually one question. One for, Greg, I know you don't focus on billings as much, focus mostly on revenues and ARR. But if I look at the billings number this quarter looks a little bit light, I think seasonally down sequentially, which is I believe never happened before. So, is there anything to call out there on the billings metric? Any headwind on the invoicing the duration front?Gregory N. HenryNo, not really, I would say, Taz. I mean, again, we've tried to say that billings for us is a bit noisy. We don't focus on that too much. We think ARR is a better measure. And a lot of it has to do with the timing of some of the renewals because we are still -- the predominant part of our business is the enterprise business and the renewal timing or annual upfront when we get those billings is when we do the renewal. So no, I wouldn't read into anything about the billings. Durations are steady, if not slightly improving from sort of the lows we saw in the sort of worst of the macro.Imtiaz Ahmed KoujalgiAnd then just one follow-up for Matt. Matt, you've seen strong strength in Capella in the last few quarters. On the go-to-market motion for Capella, is there a self-service element where people are signing up Capella without requiring a sales guy or a sales rep to [negate] with them? If you could just comment on any self-service motion with Capella traction versus direct sales selling Capella to your customers?Matthew M. CainTaz, it's certainly part of the Capella value proposition. What I would say, complementing our more direct highly instrumented go-to-market model, enabling developers to come to us in their evaluation, initial purchase, et cetera. So, it's certainly something that we're actively building as a complement to the overall business. And one of the benefits that we see there is not just for new logos, but expansion activity where people within our existing accounts can get at new applications faster. So, we're focusing a lot on what we call the developer experience and getting into product-led growth, all of which is possible with the Capella offering and we're excited about the instrumentation that we have in place and the leading indicators of what that will do to the overall business.OperatorOur next question is from Howard Ma with Guggenheim Securities.Howard MaGreg, ARR guidance assumes that you add about the same amount of net new ARR in the second half of the year as the $17 million added in the first half. Can you remind us if new bookings is normally more back half weighted? And if so, are there any offsetting factors this year that would make the 2 halves more equal?Gregory N. HenryHoward, I appreciate the question. Look, obviously, we feel good about the ARR performance and even the ARR guide and the outlook we have in the second half. To your question about the bookings, yes, there is slightly more weighted towards bookings in the second half, particularly Q4 tends to be our largest bookings quarter. Again, this is the guidance, which we feel good about. And as we've stated before, we set up guidance to, hopefully, at a minimum, meet that, if not beat it. And again, we feel good about the momentum we have heading into the second half.Howard MaAnd for Matt, do you think new gen AI capabilities could accelerate your new customer acquisition engine near term? For instance, do you have any evidence that Capella customer prospects are placing more weight on capabilities such as coding copilots when choosing a database management system? Or is gen AI more of a mechanism to drive expansion among existing customers?Matthew M. CainHoward, I think the simple question -- a simple answer to the question is yes. And we were excited to announce Capella iQ. I would tell you that the early sign-ups for private preview have exceeded my expectation, which I think is indicative of new customer activity. And if you think about the value proposition of Capella and just making it so much easier for developers, so much more efficient to get the full benefit of Couchbase, that's really important to us and quite frankly, something that we think is going to add a lot to how people think about and then directly and quickly experience Couchbase. So, I think it's going to be an accelerant on both sides, new and migrations.OperatorOur next question is from Rudy Kessinger with D.A. Davidson.Rudy Grayson KessingerOn Capella, I know I speak for everybody on this call really awaiting further metrics you can share. Could you at least comment maybe directionally just how Capella has trended as a percentage of new bookings over the last several quarters and the increase you've seen? I know you've said it's been the majority of customer signings, but how is it trending as a percentage of new bookings or total bookings? Anything you can share?Gregory N. HenryRudy, it's Greg. Good to hear from you. Yes, look, again, it becomes -- Capella every quarter becomes a larger percentage of pretty much every metric, whether it's bookings, revenue, ARR or customer count, it just -- it continues to grow. And so -- which is what we expected. So yes, it just becomes a bigger component every quarter because it's growing faster than the rest of the business.Rudy Grayson KessingerAnd then on the ARR outperformance in the quarter and the $4 million raise for the year, what's the primary driver there? It sounds like that is primarily consumption exceeding expectations, but I know FX also flipped to a 1% tailwind in the quarter. Did that have any impact on the $4 million raise for the year?Gregory N. HenryA little bit, not as much. I think it was 2 things. I think it's the Capella acceleration. We talked about the net retention rate continuing to improve and it being the best in 3 years. So that was part of it driven by Capella. But Matt also referred to some large enterprise deals we closed in the quarter with some very material expansion. So, it's really -- again, it's a combination of both. I see it as sort of just broad-based performance in the quarter, quite honestly, in terms of where we had set guidance. And the pipeline is strong. So, we're again excited for what we did here in the second quarter and the second half outlook.OperatorThank you. There are no further questions at this time. I would like to hand the floor back over to management for any closing comments.Matthew M. CainThanks, operator. To recap, we had another strong quarter. We remain excited about our opportunity with Capella due to some very big trends in our favor, the rapid adoption of cloud, desire for greater cost efficiency, IT modernization and, of course, AI. We are cognizant of the macro environment and are sharply focused on execution during times like this, while also building for what we believe will be a very exciting future.Thank you all for joining us, and we look forward to speaking with you next quarter.OperatorThis concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

Thomson Reuters StreetEvents

Q2 2024 Couchbase Inc Earnings Call

https://finance.yahoo.com/news/q2-2024-couchbase-inc-earnings-153233351.html

ba707508-ea4f-3045-88d2-0d3a2953ddc5

BAX

Spectral Medical Inc.Tigris patient enrollment momentum continues reaching 72The Company anticipates three additional trial sites to be activated in Q3NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESTORONTO, Sept. 07, 2023 (GLOBE NEWSWIRE) -- Spectral Medical Inc. (TSX: EDT) (“Spectral” or the “Company”) is pleased to announce that it has closed its previously announced ”bought deal” private placement of 9.0% convertible unsecured senior notes due November 1, 2026 (the “Notes") of the Company at a price of US$1,000 per Note (the “Issue Price”) for aggregate gross proceeds of US$4,553,000 (the "Offering"). The Offering was conducted by Paradigm Capital Inc. (the “Underwriter”) and consisted of the sale of 4,553 Notes at a price of US$1,000 per Note.The Notes have a face value of US$1,000 per Note, bear interest of 9% and are due on November 1, 2026 (the “Maturity Date”). Holders of the Notes may convert all or any portion of the Notes into common shares of the Company (the “Common Shares”) in integral multiples of US$1,000 principal amount at any time prior to the Maturity Date. Each Note is convertible into approximately 15,475,647 Common Shares, subject to customary anti-dilution and make whole fundamental change adjustments. Pursuant to the Note Offering, Baxter International Inc. (NYSE:BAX) (“Baxter”) agreed to purchase certain of the Notes in connection with an amendment to a portion of the last milestone payment due to the Company under the Distribution Agreement (as defined below). In 2020, Baxter, a leading global medical products company, entered into a distribution agreement (the “Distribution Agreement”) with the Company for PMX (as defined below) and the Endotoxin Activity AssayTM (EAA), an on-market companion diagnostic tool that aids in the risk assessment of ICU patients for progression to severe sepsis.In connection with the Offering, the Underwriter received a cash commission of US$273,180 and 928,539 compensation options (the “Compensation Options”), with each Compensation Option entitling the holder thereof to acquire one Common Share at an exercise price equal to CDN$0.40 until the date that is three (3) years following today’s date.Story continuesThe Company intends to use the net proceeds from the Offering for its Phase III registration trial (Tigris Study) for its PMX Product treatment for endotoxic septic shock and for general corporate and working capital purposes.Chris Seto, Chief Executive Officer of Spectral Medical, stated, “We remain encouraged by the continued momentum and pace of patient enrollment in the Tigris study. We are now at 72 patients enrolled, and the study remains on track to reach the important interim milestone of 90 patients enrolled by the end of 2023. I would like to thank our strategic investors, Baxter and Pinnacle Island LP. Our investment partners understand and are aligned with the Company’s strategy, and I am pleased with their continued funding support to advance our pivotal Tigris trial.”This press release does not constitute an offer to sell or a solicitation of an offer to buy the Notes in any jurisdiction, nor will there be any offer or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Notes have not and will not be registered under the U.S. Securities Act or any U.S. state securities laws, and therefore will not be offered or sold within the United States except pursuant to applicable exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws.About SpectralSpectral is a Phase 3 company seeking U.S. FDA approval for its unique product for the treatment of patients with septic shock, Toraymyxin™ (“PMX”). PMX is a therapeutic hemoperfusion device that removes endotoxin, which can cause sepsis, from the bloodstream and is guided by the Company’s Endotoxin Activity Assay (EAA™), the only FDA cleared diagnostic for the risk of developing sepsis.PMX is approved for therapeutic use in Japan and Europe, and has been used safely and effectively on more than 340,000 patients to date. In March 2009, Spectral obtained the exclusive development and commercial rights in the U.S. for PMX, and in November 2010, signed an exclusive distribution agreement for this product in Canada. In July 2022, the U.S. FDA granted Breakthrough Device Designation for PMX for the treatment of endotoxic septic shock. Approximately 330,000 patients are diagnosed with septic shock in North America each year.Spectral is listed on the Toronto Stock Exchange under the symbol EDT. For more information please visit www.spectraldx.com.Forward-Looking StatementInformation in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of Spectral and anticipated events or results, are assumptions based on beliefs of Spectral's senior management as well as information currently available to it. While these assumptions were considered reasonable by Spectral at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the company’s ability to raise capital and the availability of funds and resources to pursue R&D projects, the recruitment of additional clinical trial sites, the rate of patient enrollment, the successful and timely completion of clinical studies, the success of Baxter’s commercialization efforts, the ability of Spectral to take advantage of business opportunities in the biomedical industry, the granting of necessary approvals by regulatory authorities as well as general economic, market and business conditions, and could differ materially from what is currently expected.Actual results could differ materially from what is currently expected, and readers are cautioned not to place undue reliance on these forward-looking statements. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements. Reference is also made to the other risks and uncertainties that may affect the Company which are more fully described in the Company’s Annual Information Form dated March 24, 2023, and other filings of Spectral with the securities regulatory authorities which are available at www.sedarplus.com.The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.For further information, please contact:Blair McInnisCFOSpectral Medical Inc.416-626-3233 [email protected] MahdaviCapital Markets & Investor RelationsSpinnaker Capital Markets [email protected]

GlobeNewswire

Spectral Medical Inc. Closes C$6.1 Million Bought Deal Convertible Note Financing

https://finance.yahoo.com/news/spectral-medical-inc-closes-c-110000475.html

3dc2d7ba-fc74-3b76-b2ec-3fdb1e02f62e

BAX

Spectral Medical Inc.Tigris patient enrollment momentum continues reaching 72The Company anticipates three additional trial sites to be activated in Q3NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESCORRECTION FROM SOURCE: Spectral Medical Inc. A correction from source is being issued with respect to the press release titled, Spectral Medical Inc. Closes C$6.1 Million Bought Deal Convertible Note Financing, released on September 7, 2023, at 7:00 am ET.There was an error in the third sentence of the second paragraph. The corrected sentence reads: The Notes are convertible into approximately 15,475,647 Common Shares, subject to customary anti-dilution and make whole fundamental change adjustments.The complete corrected press release follows:TORONTO, Sept. 07, 2023 (GLOBE NEWSWIRE) -- Spectral Medical Inc. (TSX: EDT) (“Spectral” or the “Company”) is pleased to announce that it has closed its previously announced ”bought deal” private placement of 9.0% convertible unsecured senior notes due November 1, 2026 (the “Notes") of the Company at a price of US$1,000 per Note (the “Issue Price”) for aggregate gross proceeds of US$4,553,000 (the "Offering"). The Offering was conducted by Paradigm Capital Inc. (the “Underwriter”) and consisted of the sale of 4,553 Notes at a price of US$1,000 per Note.The Notes have a face value of US$1,000 per Note, bear interest of 9% and are due on November 1, 2026 (the “Maturity Date”). Holders of the Notes may convert all or any portion of the Notes into common shares of the Company (the “Common Shares”) in integral multiples of US$1,000 principal amount at any time prior to the Maturity Date. The Notes are convertible into approximately 15,475,647 Common Shares, subject to customary anti-dilution and make whole fundamental change adjustments. Pursuant to the Note Offering, Baxter International Inc. (NYSE:BAX) (“Baxter”) agreed to purchase certain of the Notes in connection with an amendment to a portion of the last milestone payment due to the Company under the Distribution Agreement (as defined below). In 2020, Baxter, a leading global medical products company, entered into a distribution agreement (the “Distribution Agreement”) with the Company for PMX (as defined below) and the Endotoxin Activity Assay™ (EAA), an on-market companion diagnostic tool that aids in the risk assessment of ICU patients for progression to severe sepsis.Story continuesIn connection with the Offering, the Underwriter received a cash commission of US$273,180 and 928,539 compensation options (the “Compensation Options”), with each Compensation Option entitling the holder thereof to acquire one Common Share at an exercise price equal to CDN$0.40 until the date that is three (3) years following today’s date.The Company intends to use the net proceeds from the Offering for its Phase III registration trial (Tigris Study) for its PMX Product treatment for endotoxic septic shock and for general corporate and working capital purposes.Chris Seto, Chief Executive Officer of Spectral Medical, stated, “We remain encouraged by the continued momentum and pace of patient enrollment in the Tigris study. We are now at 72 patients enrolled, and the study remains on track to reach the important interim milestone of 90 patients enrolled by the end of 2023. I would like to thank our strategic investors, Baxter and Pinnacle Island LP. Our investment partners understand and are aligned with the Company’s strategy, and I am pleased with their continued funding support to advance our pivotal Tigris trial.”This press release does not constitute an offer to sell or a solicitation of an offer to buy the Notes in any jurisdiction, nor will there be any offer or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Notes have not and will not be registered under the U.S. Securities Act or any U.S. state securities laws, and therefore will not be offered or sold within the United States except pursuant to applicable exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws.About SpectralSpectral is a Phase 3 company seeking U.S. FDA approval for its unique product for the treatment of patients with septic shock, Toraymyxin™ (“PMX”). PMX is a therapeutic hemoperfusion device that removes endotoxin, which can cause sepsis, from the bloodstream and is guided by the Company’s Endotoxin Activity Assay (EAA™), the only FDA cleared diagnostic for the risk of developing sepsis.PMX is approved for therapeutic use in Japan and Europe, and has been used safely and effectively on more than 340,000 patients to date. In March 2009, Spectral obtained the exclusive development and commercial rights in the U.S. for PMX, and in November 2010, signed an exclusive distribution agreement for this product in Canada. In July 2022, the U.S. FDA granted Breakthrough Device Designation for PMX for the treatment of endotoxic septic shock. Approximately 330,000 patients are diagnosed with septic shock in North America each year.Spectral is listed on the Toronto Stock Exchange under the symbol EDT. For more information please visit www.spectraldx.com.Forward-Looking StatementInformation in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of Spectral and anticipated events or results, are assumptions based on beliefs of Spectral's senior management as well as information currently available to it. While these assumptions were considered reasonable by Spectral at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the company’s ability to raise capital and the availability of funds and resources to pursue R&D projects, the recruitment of additional clinical trial sites, the rate of patient enrollment, the successful and timely completion of clinical studies, the success of Baxter’s commercialization efforts, the ability of Spectral to take advantage of business opportunities in the biomedical industry, the granting of necessary approvals by regulatory authorities as well as general economic, market and business conditions, and could differ materially from what is currently expected.Actual results could differ materially from what is currently expected, and readers are cautioned not to place undue reliance on these forward-looking statements. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements. Reference is also made to the other risks and uncertainties that may affect the Company which are more fully described in the Company’s Annual Information Form dated March 24, 2023, and other filings of Spectral with the securities regulatory authorities which are available at www.sedarplus.com.The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.For further information, please contact:Blair McInnisCFOSpectral Medical Inc.416-626-3233 [email protected] MahdaviCapital Markets & Investor RelationsSpinnaker Capital Markets [email protected]

GlobeNewswire

CORRECTION – Spectral Medical Inc. Closes C$6.1 Million Bought Deal Convertible Note Financing

https://finance.yahoo.com/news/correction-spectral-medical-inc-closes-174400473.html

c14e43fb-137d-3a73-9586-b42110fb2033

BBDC

ParticipantsBryan D. High; Co-Portfolio Manager & VP; Barings BDC, Inc.Elizabeth A. Murray; CFO, COO & Controller; Barings BDC, Inc.Eric J. Lloyd; Executive Chairman of the Board & CEO; Barings BDC, Inc.Ian Fowler; President; Barings BDC, Inc.Jeffrey Chillag; Head of IR & Director of Finance; Barings BDC, Inc.Casey Jay Alexander; Senior VP & Research Analyst; Compass Point Research & Trading, LLC, Research DivisionDavid Brian Miyazaki; SVP and Portfolio Manager; Confluence Investment Management LLCFinian Patrick O'Shea; VP and Senior Equity Analyst; Wells Fargo Securities, LLC, Research DivisionKyle Joseph; Equity Analyst; Jefferies LLC, Research DivisionRobert James Dodd; Director & Research Analyst; Raymond James & Associates, Inc., Research DivisionPresentationOperatorAt this time, I would like to welcome everyone to the Barings BDC, Inc. Conference Call for the quarter ended June 30, 2023. (Operator Instructions) Today's call is being recorded and a replay will be available approximately 2 hours after the conclusion of the call on the company's website at www.baringsbdc.com under the Investor Relations section of the website. At this time, I will now turn the call over to Jeff Chillag, Head of Investor Relations for Barings BDC. Please proceed.Jeffrey ChillagThank you, operator, and good morning, everyone. Thank you for joining us on the call. Please note that this call may contain forward-looking statements that include statements regarding the company's goals, beliefs, strategies, future operating results and cash flows. Although the company believes these statements are reasonable, actual results could differ materially from those projected in forward-looking statements. These statements are based on various underlying assumptions and are subject to numerous uncertainties and risks, including those disclosed under the sections titled Risk Factors and forward-looking statements in the company's quarterly report on Form 10-Q for the quarter ended June 30, 2023, as filed with the Securities and Exchange Commission. Barings BDC undertakes no obligation to update or revise any forward-looking statements, unless required by law. I will now turn the call over to Eric Lloyd, Chief Executive Officer of Barings BDC.Story continuesEric J. LloydThanks, Jeff, and good morning, everyone. I also want to apologize if you hear some background noise. We are having quite thunderstorm here in Charlotte, North Carolina. So if you hear some thunder and stuff in the background, I apologize for any of that noise. But obviously, not anything we can do about it. I appreciate everybody joining. Please note that throughout today's call, we'll be referring to our Second Quarter 2023 Earnings Presentation that is posted on the Investor Relations section of our website. On the call today, I'm joined by Barings' Co-Head of Global Private Finance and President of Barings BDC, Ian Fowler; Barings' Head of Capital Solutions and Co-Portfolio Manager of the BDC Bryan High, and that's the thunder and lightning I was talking about, and BDC's Chief Financial Officer, Elizabeth Murray. During today's call, Ian, Bryan and Elizabeth will review details of our portfolio and first quarter (sic) second quarter results in a moment. But I'll start off with some high-level comments about the quarter.I'd like to start by expressing my enthusiasm for a very strong quarter at BBDC really as measured on a number of financial metrics. It's clear that investors remain concerned about rates, inflation and economic weakness. Even in this challenging environment, BBDC's portfolio continues to deliver strong results for shareholders. Net asset value per share was $11.34 compared to the prior quarter of $11.17, that's a net increase of 1.5%. Net investment income for the quarter was $0.31 as compared to $0.25 in the prior quarter. Strong NII was fueled by a combination of really elevated yields from rising base rates. Two, favorable dividends flowing from platform investments in JVs, and three, continued strong credit performance within the portfolio. Our performance is the result of a focus on the top of the capital structure and within more defensive industries. We believe BBDC remains well positioned for any further volatility and uncertainty in the market going forward.Investment activity during the quarter reflected a modest degree of net repayments as returns of capital during the quarter modestly exceeded originations. As our shareholders know, we are actively working to maximize the value in the legacy holdings acquired from MVC Capital and Sierra Income and rotate them into compelling Barings' originated positions. Our investment portfolio continued to perform well in the second quarter, including the acquired Sierra and MVC assets, our total nonaccruals are 2% of the portfolio on a cost basis and 1.1% on a fair value basis. That's compared to 3.8% of the portfolio on a cost basis in the first quarter. 3 assets were removed from nonaccrual status and no new nonaccruals were booked during the quarter, reflecting the strength of the portfolio. With the exception of one investment, all of our nonaccrual assets were from acquired portfolios and are therefore, covered by our credit support agreements.BBDC shareholders continue to benefit from the credit support agreements provided by the manager. For the current quarter, the CSA valuation was approximately $60 million on a combined basis for the Sierra and MVC credit support agreements, which are designed to insulate shareholders from realized losses in those portfolios. To date, less than $30 million of net losses have been realized at the acquired portfolios. The remaining mark-to-market losses within the portfolio are spread across a number -- across a wide number of issuers and believe to reflect more discounts to par rather than anticipated impairments. Recall that a bulk of the Sierra portfolio was comprised of semi liquid broadly syndicated loans that trade infrequently.Turning to the earnings power of the portfolio, increasing base rates continue to lift yields on our predominantly floating rate portfolio with weighted average yields on putting rate investments increasing to 11.0%. We remain conservative on our base dividend policy and our Board declared a second quarter dividend of $0.26 per share, reflecting a 4% increase relative to the prior quarter's declared dividend. On an annualized basis, the new dividend level equates to a 9.2% yield on our net asset value of $11.34. Total investment income generated in the quarter was the highest income delivered by BBDC since we began managing the BDC 5 years ago. With the strong results we have demonstrated this quarter, we wanted to remind investors of the message we telegraphed when we began managing what was previously Triangle Capital. When we rotated out of broadly syndicated loans in late 2020. Barings stated that we would seek to employ a first lien focused strategy to providing low volatility with a target dividend yield of 8% to 10%. Through the quarter ended June 2023, we had delivered a return inside this range. We will, of course, work to outperform these goals in the months and years to come.BBDC is committed to the alignment with our shareholders. During the second quarter, we repurchased 1.4 million shares of stock at an average price of $7.75. We have consistently maintained a share repurchase plan that provides BBDC the ability to strategically repurchase shares when the price is dislocated from the NAV. We recognize that we can create share price appreciation by simply investing in quality assets even when the stock is trading at a discount. For this reason, we worked to be judicious when we are repurchasing shares and balance it against leverage considerations and deployment opportunities.Looking at liquidity, net leverage, which is leverage net of cash and unsettled transactions, was 1.15x. This is within our target leverage range of 0.9 to 1.25x. We continue to prioritize risk management, while balancing the deployment of capital and what has become a very attractive environment for private credit. I'll now turn the call over to Ian.Ian FowlerThanks, Eric. Recall that BBDC is managed by Barings LLC, a credit-focused asset manager with more than $350 billion of assets under management. The bulk of the portfolio sourced from the global private finance team, an organization with more than 85 investment professionals located around the globe, providing financing solutions to preeminent middle market companies sponsored by private equity firms. BBDC's portfolio decreased by $70 million on a net basis in the quarter, with gross fundings of $66 million, offset by $135 million of repayments and sales, which included $50 million of sales due to CACI. Activity during the first half of the year has been tempered as private equity buyers take a pause in this rising rate environment to likely determine any impact on valuations. Regardless, the financial models have changed, and valuations have declined modestly as cost of leverage has increased dramatically. As a rough thumbnail with reference rates at 0% in 2021, private equity buyers could reasonably leverage companies at 5 to 5x, which supported purchase prices in the 13 to 14x range. Today, with the increase in base rates and slightly higher spreads, those same businesses can support leverage in the 4 to 4.5x range, which supports purchase prices in the 10 to 12x range.The reality of the sponsor-backed market is that a significant portion of transaction volume is on a sponsor to sponsor deal flow. Sponsors appear reticent to bridge the valuation gap between 2021 purchase price multiples and today's range based on financing costs. However, sponsors continue to execute on portfolio acquisitions, which make sense as add-on multiples are below original platform purchase prices. in effect, enabling sponsors to reduce their cost basis and hedge against any compression in exit multiples. Nevertheless, deployment from the Barings Global Private Finance team is roughly on track with 2019 and currently tracking ahead of 2020. Recall that the impacts of COVID in 2020 significantly hampered activity in the first half of 2020. But ultimately produced one of the most active deployment vintages we've ever seen. All of this to say, the year-to-date trends cannot be a reliable indicator of future activity. The negative net deployment witnessed at BBDC is the result of a conscious managing of BBDC's leverage via sales to our joint venture and an intentional rotation of acquired assets. The global private finance investment pipeline has picked up significantly over the past few months and on a probability-weighted basis now stands at $1.7 billion.Slide 10. Nearly 75% of the portfolio consists of secured investments with approximately 70% of investments constituting first lien securities. We track the median interest coverage of our North American global private finance issuers on a quarterly basis. Not surprisingly, we recorded very strong interest coverage ratios in 2021 and in the first quarter 2022, prior to the rise in interest rates. The median interest coverage in our portfolio at the end of the first quarter 2022 was 2.9x. As a proxy for the disciplined underwriting that perminates our BDC franchise, 1 year later, and 500 basis points of reference rate impact. The median interest coverage in the portfolio stands at 2.2x. That is to say that with the impact of higher interest rates reflected for approximately 9 months of issuers reporting global private finance insurers still have considerable cushion before they are unable to make regularly scheduled interest payments.Our avoidance of various industries prones economic volatility, oil and gas, restaurants, retail, metals among them, has proven to be a sound strategy against a backdrop of less economic predictability. One of the benefits to a predominantly sponsor-backed strategy has proven out over the past several quarters. Combined with what we believe reasonable going in leverage multiples, the median gross margin in the North American Global Private Finance portfolio stood at 44%, up from 42%, 1 year earlier, and gives us confidence that our issuers are successfully pushing through price increases to combat inflationary pressures in their businesses. Adjusted EBITDA margins for the same sample were 19%, flat from a year earlier. To be -- believed to be a reflection of the fact that wage gains have consumed some degree of gross margin expansion previously noted.While not a perfectly comparable metric period-to-period as the volume of transaction activity in the past 5 quarters will skew these metrics somewhat, we believe we have reason to feel comfortable with the performance in the portfolio. BBDC is focused on investing in middle market companies throughout the economy. The largest portion of our funded assets are sourced from the global private finance team, recall that this team focuses entirely on sponsor-backed financing and targets issuers with $15 million to $75 million or euros where appropriate. The flexibility of the broader Barings capital base and focus on relative value allows the global private finance investment team to deploy capital and predominantly first lien solutions that the team feels is most compelling. We are not a forced buyer of assets in any market environment.Barings' Capital Solutions investment team accounts for the majority of the remaining assets within the portfolio having led the underwriting for uncorrelated platform investments, such as Eclipse and Rocade, in addition to making other middle market investments. The majority of assets originated by the Capital Solutions team our conforming middle market loans, but vary from the private -- the global private finance strategy and that these transactions may be nonsponsored and/or have more flexible capital structures. We remain confident in the credit quality of the underlying portfolio, but we do see increased volatility heading into the second half of 2023. The uncorrelated nature and associated value of investments in Eclipse and Rocade should bolster the portfolio in the event the economy does enter into a long expected recession.BBDC is committed to delivering an attractive risk-adjusted return to shareholders over a long time horizon. We are investors of credit and middle market companies. Our global reach and significant scale across asset classes gives BBDC a unique ability to select risk and return compared to other managers. But at our core, middle market credit is what we do.Turning to our stress credits. One Barings originated asset, one MVC asset and 4 Sierra assets remain on nonaccrual. The MVC and Sierra assets are covered by the capital support agreements with our manager. As Eric previously mentioned, investments on nonaccrual decreased to 6% from 9% in the previous quarter. I'll now turn the call over to Elizabeth.Elizabeth A. MurrayThanks, Ian. Turning to Slide 14. You can see the full bridge of the NAV per share movement in the second quarter. Our net investment income exceeded the $0.25 per share dividend by 24%, even with this quarter's higher incentive fees. Net unrealized appreciation from investments, CSAs and FX lifted NAV per share by $0.51, which was partially offset by net realized losses on the portfolio of $0.45 per share. The $0.45 per share realized loss was predominantly due to the exit of our debt investments in custom alloy, which was all reclassified from unrealized depreciation. We are very pleased with our portfolio's performance amidst the backdrop of economic uncertainty, and this highlights our conservative approach to underwriting and portfolio construction. Additional details on the net unrealized appreciation are shown on Slide 15. Near the bottom of the slide, you can see the credit support agreement increased approximately $2 million which is driven by the acceleration of the expected timeline of exiting the MVC investments.Slide 16 and 17 show our income statement and balance sheet for the last 5 quarters. Our net investment income per share was $0.31 for the quarter, driven by a 12% quarter-over-quarter increase in total investment income with some of the revenue lift offset by higher incentive fees due to unrealized gains in the quarter and the incentive fee look-back calculation.From a balance sheet perspective on Slide 17, total debt to equity was 1.24x at June 30. Our net leverage ratio was 1.15x, down from 1.19x, and we view this measure as more reflective of the true leverage position of the vehicle, which currently sits within our long-term target of 0.9x to 1.25x. In addition, as previously disclosed, in May, we were pleased to extend the maturity of our senior secured revolving credit facility out to February 2026. With all of our existing lending partners being included in the extension. We will continue to manage the capital structure in a manner that is consistent with our investment-grade rating profile.Turning to Slide 18, you can see how our funding mix ties to our asset mix, both in terms of seniority and asset class, including the significant level of support provided by the $720 million of unsecured debt in our capital structure. Details on each of our borrowings are included on Slide 19, which shows the evolution of our debt profile over the last year. As of the end of the first quarter, roughly half of our funding was comprised of fixed rate unsecured debt with a weighted average coupon of 3.79%. And we have over 2 years until the next bond maturity in August 2025.Turning to Slide 20. You can see the impact to our net leverage of using our available liquidity to fund our unused capital commitments. Barings BDC currently has $338 million of unfunded commitments to our portfolio companies as well as $65 million of outstanding commitments to our joint venture investments. We have available cushion against our leverage limit to meet the entirety of these commitments if called upon.Slide 21 updates our paid and announced dividends since Barings took over as the adviser to the BDC. As Eric mentioned earlier, the Board declared a third quarter dividend of $0.26 per share, a 9.2% distribution on net asset value. Given the higher level of earnings and the fact base rates have remained higher for longer, shareholders should benefit, and we have increased our quarterly dividend from $0.25 per share to $0.26 per share. We believe our portfolio will continue to earn above the high hurdle in a normalized rate environment, and we expect that our platform investments, Eclipse and Rocade as well as our Jocassee joint venture will continue to generate significant dividend income. These investments help highlight the importance of less correlated assets and the benefits of a diverse portfolio. We, of course, are aligned with our shareholders in the way that we approach this business, and we continue to believe that share repurchases at significant discounts to book value can play an important role in our long-term capital allocation policy.I'll wrap up our prepared remarks with a note on our investment pipeline. Thus far, in Q3, we have made $36 million of new commitments, of which $24 million have closed and funded. The weighted average origination margin or DM-3 of those new commitments was 7.4%. We've also funded $8 million of previously committed debt and equity facilities. The current Barings Global Private Finance investment pipeline is approximately $1.7 billion on a probability-weighted basis and is predominantly first lien senior secured investments. As a reminder, this pipeline is estimated based on our expected closing rates for all deals in our investment pipeline.With that, operator, we will open the line for questions.Question and Answer SessionOperator(Operator Instructions) Our first question comes from the line of Kyle Joseph with Jefferies.Kyle JosephI appreciate all the color you gave on the deal environment. But just trying to get a sense for the outlook for repayment, particularly if we're on the cusp of a potential Fed pause.Ian FowlerKyle, it's Ian. I'll start with that and then let anyone jump in. So I mean, look, I mean, obviously, as we discussed, it's been rather anemic in terms of volume this year. And I think the reason for that is M&A activity has just been soft as private equity firms are taking a pause to see in this rising rate environment, what happens to multiples enterprise values. And as we're getting through to the end of this rising rate cycle, and with only a modest decline in purchase prices, I think we're going to see a thaw in the second half of the year. I'm not going to hold my breath, but -- and we have bankers saying there's a lot of books that are going to come out. But I sort of expect that to occur as we look at the remainder of the year. It's also a time everyone starts thinking about year-end and putting money to work. So I think there's going to be a lot of pressure to put deals to work and do deals. So highly -- I'm cautious -- we're cautious about the remainder of the year in terms of putting deals to work.Eric J. LloydAnd part of the net -- Kyle, this is Eric. Part of the net number is really us managing leverage given the share repurchases we did also. So we were balancing deployment with leverage with share repurchases, given where things were and all that. So it's never a perfect science within that, but that's kind of part of what impacted our net number from a repayments versus deployments perspective.Ian FowlerYes. And the other thing I would just throw out there, too, Kyle. I mean, look, we're not going to -- we mentioned this, right? We're not going to chase deals. We're not forced to do deals. We have a portfolio that's been very active. And I think any manager that has a large, mature portfolio is going to see a lot of activity from that portfolio. As add-on acquisitions has been a main source of adding and creating value as part of the investment thesis. And 70% of our volume is coming from our portfolio. And these are less risky deals because they're going into companies we know and understand and helping those companies become bigger, better, stronger, more diverse credits. And so that's kind of like a no-brainer. And I think we're out of the woods in terms of a recession. But even economists are wrong, and I'm not going to bet one way or the other, but is it really the time to back up the truck and just kind of do anything that comes to market right now. And our decision was not to do that.Kyle JosephGot it. Very helpful. And then a follow-up with everything that's gone on with regional banks. Just wanted to get your take how that impacts Barings, but also the industry more broadly, is it just kind of a continuation of the theme of banks pulling back? Or do you think it's kind of a more material catalyst?Bryan D. HighKyle, it's Bryan. I would just say that clearly, some of the ratings actions that Moody's have taken with smaller regional banks, we've seen a pullback across various markets not necessarily markets that would benefit the BDCs, but private credit in general, I think, in alternative capital has become a broader theme across what we've seen in the broader Barings pipeline, I guess, I would say. But I don't know that there -- what we've seen so far would be a great fit for a vehicle like Barings BDC.Eric J. LloydI'd just highlight from a liability perspective, as Elizabeth referenced, we extended our bank group, 100% of our partners in our bank group extended with us. And so from an exposure perspective on the liability side, we don't have that. And we're just -- in this environment, we're banks, so it's more challenging from a financing perspective to have 100% of them continue to support us and see what we're doing, we view it as a real kind of testament to what we've done and how we've done it.OperatorOur next question comes from the line of Finian O'Shea with Wells Fargo Securities.Finian Patrick O'SheaQuestion on the joint ventures. It sounded like Eclipse, Rocade and Jocassee were highlighted as part of the key future game plan is at least more central to future differentiation. On all the other ones, it looks like Thompson Rivers is running down, but there are a few more and seeing what the sort of game plan is for Thomson, Waccamaw, the SLP. And if you are running those down, how long that would take?Eric J. LloydThanks, Fin. Part of what we committed to when we kind of did a little bit of a reboot here from a management team perspective is to take out some of the complexity in the BDC and simplify things the best we could. So what I'd say is, yes, and I'll turn it over to Bryan here in a second. We are running down some of those JVs. That's intentional just to take out some of the complexity within the vehicle. We do believe that -- and it's shown over time that Eclipse for now a number of years, Rocade recently and Jocassee for a number of years, have generated really attractive returns for the BDC. And so I wouldn't say as much as they're central or core to what we do. I would say that we view them as very complementary to what we do and not as correlated to certain other credit assets to what we do. Eclipse as an example, is one where when cash flow lending could be more challenged in a certain economic environment, they're going to see an increase in opportunities for that type of business. So the core is going to be first lien senior secured deals generated and underwritten by Ian's team on their global private finance area. And then these other parts will be complementary that we think are within that. But as I've communicated, a couple -- about a quarter ago, you should not expect to see us do incrementally more deals that look like Eclipse or Rocade or anything like that in the near term, we're really focusing on taking out the complexity, simplifying the BDC and then what we do believe what we have is really, really attractive between Jocassee, Rocade and Eclipse. And yes, the other JVs will be managing those down over time. As far as how much time that takes it's really hard to predict what that looks like, but you should continue to see a decrease in each of those JVs over time, as it makes sense for the shareholders to do that over time. I don't know, Bryan, if you add anything?Bryan D. HighNo, I think that was well said. The only thing I would add is if you think about Eclipse and Rocade, those -- the underlying loans in those portfolios are middle market secured first lien facilities at the end of the day. And Jocassee, the portfolio is -- it provides liquidity to what we're doing by being able to sell down loans. And that portfolio looks very similar to what would be in Barings BDC and the strategy that Eric just outlined. So as it relates to Thompson Rivers and Waccamaw, those don't look like what Barings BDC's overall portfolio looks like and we would look to wind those down over time.OperatorOur next question comes from the line of Robert Dodd with Raymond James.Robert James DoddJust a follow-on to that. What should we -- can you give us any color like the base level of return to the BDC, not the necessarily intel -- the dividend distribution. So that something I could clip to. It's been a bit more volatile than some of the others from a smaller distribution in the fourth quarter of last year to quite a large one this quarter, 12% ROE right now. I mean is that 12% kind of a 12% ROE distribution. Is that the kind of go-forward level for that? Or is it going to continue to bounce around a little bit more than some of the others, which have been a little bit more [stake] Jocassee...Bryan D. HighYes. Robert, it's Bryan. And as it relates to Eclipse, we've tried to mirror the dividend more recently with what we're receiving from a plain middle-market first lien loan, so 12% we felt was in line with what we've -- what we're getting from the rest of the portfolio. The reality is it could dividend out a lot more, but it's performed incredibly well, and we want to continue to grow that platform and allow them to diversify their portfolio. And so we would like to try to keep it. Our goal would be to try to keep the dividend yield from that platform consistent with the rest of the portfolio, I guess, is the way that I would describe it. So as base rates change, that may change, but it shouldn't be volatile relative to the rest of the portfolio, if that makes sense.Robert James DoddIt does. That's really helpful. And then another Elizabeth, you said during your comments that the CSA valuation was impacted by an expected acceleration in the realization of the MVC assets. I mean, is that driven by just an estimate? Or is there actual activity? And how real is that expected acceleration, I guess, is the way to put it.Elizabeth A. MurrayYes. So Robert, the way we think about it is with the CSA, it's either the lesser of when we exit the last investment for 10 years. We are now down to 4 assets, one of which we should exit close to the end of the year. It's a PE fund that's in line down mode. We have just hired somebody to help us exit the MVC auto. So that should -- we should exit that over the next couple of years. And really, what's left at that point is security holdings. And in talking with the team, we believe we will exit that sooner than that 10-year mark and likely sell that over the next, say, 5 to 7 years or 5 years, I should say. So that's really where that acceleration in time line came from.Robert James DoddGot it. And then if I could on the overall credit quality portfolio, nonaccruals went down, et cetera. But maybe for Ian. I appreciate the color on the interest coverage, et cetera. But I mean, what's the go-forward interest coverage if we can -- I mean, [Sopra] -- the last 12 months, they've been paying higher interest, but obviously, Sopra has been on a pretty steep climb over that duration. So if we look forward, what's your expected interest coverage and also kind of tied into that I've been asking people what proportion of your portfolio today has interest coverage below [one].Ian FowlerYes. So great question because obviously, we are looking backwards. And right, the reality is majority of our investors are our borrowers provide monthly reporting. There's probably 20% that are quarterly. So we're looking -- and we haven't received all the quarterly for second quarter reporting packages yet. So what we're doing, and I think we've talked about this in the past, we started way back early in the year, stress testing the portfolio for rates increasing to 5%. But obviously, the numbers I'm talking about today are we're looking at -- for those that are quarterly reporters, we're taking first quarter and then we're factoring in those that are monthly. So just a couple of things that I'd highlight in terms of the portfolio performance. Number one, is the portfolio for the second quarter and I referenced this, and I think it's important, is that a vast majority have been minimally impacted by inflation. So I think, number one, when you look at margins, most of our borrowers have been able to pass through price increases. That goes to the composition of the portfolio. We've talked about this in the past that over 75% of our portfolio is service businesses versus manufacturing. Which is also important because we don't have companies with a lot of CapEx. So that's number one.Over 50% of our portfolio is generating EBITDA growth. And in terms of those that are in GPF that have less than 1x, so it's less than 5-ish. So it's a minority in terms of being under 1:1. I do think that as we look at the full year impact of rate increases, which is as of like right now, and we may have another 25 basis points coming around the quarter, we'll probably see, and I think I indicated this a little more volatility in the second half of the year, where there will be some companies that are going to have some liquidity needs. But at the end of the day, and Robert, I've been doing this a long time, if you have good businesses with good sponsors and lenders and management teams are all rowing in the same direction. These companies are going to get through a cycle, and we expect our sponsors to put in equity and we'll consider picking some of our interest at a premium to get that company through to the other end.Eric J. LloydRobert, to build on what Ian said. I mean, that's all -- if that environment hits us in the face, right? If you look at today, what we know is nonaccruals were almost cut in half from prior quarter, right? If you look at the only one that -- nonaccrual that is from something that we didn't acquire within the portfolio. And so the Barings we talked about rotating out of MVC and Sierra assets into Barings' assets. And as we evaluate the portfolio and everything we've communicated to you, if you look from a Barings' perspective, those assets have continued to perform extremely well. And to Ian's point, you look at the average leverage in the portfolio, call it, 5 to 5.5x within that. And you're looking at the interest coverage within that type of portfolio, even if you run it at 10% or so, you're running at still kind of 2x interest coverage. And as Ian referenced, we have -- with the service businesses, they just typically have a lot less CapEx and other needs of free cash flow. And so very importantly, your free cash flow coverage still stays very attractive relative to the interest on the company.OperatorAnd our next question comes from Casey Alexander with Compass Point.Casey Jay AlexanderSecondly, I want to acknowledge and hope shareholders appreciate the material execution on the share repurchase program. That was excellent follow-through. I want to ask Bryan, it sounds to me like what you're saying about the JVs is that you're setting the dividend at what you believe loans are earning in the portfolio. Does that mean that -- are you still earning a higher ROE on those JVs and building NAV through retention of income in those JVs?Bryan D. HighYes. Thanks for the question, Casey. As it relates to Eclipse and Rocade that is correct, yes. I think high teens type ROE, and we're retaining that and trying to build NAV within the portfolio with that capital.Casey Jay AlexanderAnd so Jocassee would be sort of at the mark then?Elizabeth A. MurrayCorrect.Casey Jay AlexanderOkay. Secondly, you gave sort of a cumulative review of it, but I was wondering if you could be more specific. What's the mark-to-market loss on MVC to date, SIC to date, what are the -- is each CSA currently marked at? And what are the caps to the CSAs on each of those individual blocks of business.Elizabeth A. MurrayYes. So for MVC, it's currently marked at $15.6 million and that CSA is $23 million. The losses right now at MVC are $21 million. So again, fully covered. The mark on Sierra is around $45 million. And the losses are around $36 million and that is up to $100 million.Eric J. LloydThe losses are not $36 million.Elizabeth A. MurrayI'm sorry.Eric J. LloydThe losses are like -- actual realized losses are like $5 million.Elizabeth A. MurrayThe $36 million includes the unrealized.Eric J. LloydIncremental $30 million is unrealized. And so that total -- if you take the full mark-to-market and you applied it, the $36 million would be relative to the $100 million as Elizabeth said. So you'd be more than covered on any of that. We feel good about some of the mark-to-market stuff. So the -- what we acquired, there were some CLO equity. There was some stuff around the JV that they had existing within there, given what's happened with base rates and broadly syndicated loans, that's impacted both of those type of things. Obviously, CLO equity is going to be impacted by the underlying collateral within that. but we feel good about where the long-term recovery of those, but from a mark-to-market basis, again, think of it as $36 million relative to $100 million an actual $5 million relative to $100 million.OperatorThere are no further questions at this time. I would like to turn the floor back over to Mr. Eric Lloyd, CEO, for closing -- excuse me, we have a follow-up question from Finian O'Shea with Wells Fargo Securities.Finian Patrick O'SheaJust one more on the JVs topic. You mentioned building retained earnings on Eclipse and Rocade, just I guess, to what extent -- what are you thinking size-wise before starting to distribute the earnings? Is it about the scale opportunity and the returns opportunity today? And within that, what's the sort of path you see to getting those rightsized and distributing returns?Bryan D. HighYes. Fin, I think as long as we can continue to generate those types of ROEs, we're going to -- we could certainly distribute more and we can be tactical around that to the extent we want to do that from a portfolio perspective, but we think that those platforms have momentum, and so we want to continue to create sort of NAV for the overall portfolio, over time. And so I don't think that there is a change in strategy or a time line to get to that point. As long as they are sort of earning that ROE will continue to let them retain. And to the extent we want to take special dividends to bolster the income of BBDC, we can do that. So we can kind of use it to help to the extent there are other issues in the portfolio, if that makes sense.Eric J. LloydYes. I mean I'll just build on that, Fin. I mean think of a high-teens ROE, it's something we want to distribute where it's prudent, as Bryan said, consistent with the rest of the portfolio, but retaining some investment within that to continue to support the growth of that is also a really attractive investment for the BDC because it's consistently throwing off kind of that high teens type of return. And again, something that we think is extremely complementary to the core part of the portfolio, which is going to be cash flow first lien senior secured assets. Any other questions?OperatorWe have one more question from David Miyazaki with Confluence Investment Management.David Brian MiyazakiI just wanted to share some appreciation for the CSA that you have in place. I think that it was -- it's proven to be something that is very helpful given that the losses, especially at MVC are higher than what I had expected. I'm curious how as you're marching through the wind down of both MVC and Sierra, what has surprised you versus your underwriting? And how does that shape your view toward future or possible consolidation or acquisitions going forward?Eric J. LloydDave, thanks for the question. And we're glad that we're providing more transparency around the CSA, and I appreciate your recognition that it's Barings bears that risk and the losses and not to shareholders. I would say on MVC, as you said, we -- there are 3 large assets under MVC. We referenced 2 of them that we still hold, which are equity positions. We had one that was a debt position. And we went into that, the debt position, the custom alloy is the one that's had me realized losses that were significant, which is part of what Elizabeth referenced relative to the CSA. And so I would tell you, when we underwrote it, we didn't expect the loss severity on that to be to the extent that it was. Obviously, when you underwrite a portfolio that you didn't originate and underwrite you have a certain amount of information, but not the full type we would normally have in certain type of underwriting. The 2 equity positions, as Elizabeth referenced, one of them, we're in the process right now of beginning a process to look at an exit on that, whether that -- the time line of that is kind of TBD. The other one we believe a little longer hold on that will benefit for some of the -- basically some macro reasons that are occurring in kind of the European area that we think will support infrastructure. Those equity positions can obviously come back and basically offset the losses that we've had to date on the MVC portfolio, but time will tell whether that happens or not. So I'd say on MVC, the short answer is the surprise, I guess, if you think of it that place was on the one custom alloy asset, the loss severity as we underwrote it was higher than what we thought it would be to the extent it defaulted the 2 equity positions, I'd say, are performing in line or above what we thought they were going to perform. And therefore, I believe we look at the net-net, which got to the $23-ish million CSA, we think, as we look at it today, it should be inside of that number on a fully realized basis. But time will tell, does equity position will really drive that. On Sierra, it was a more diversified portfolio. When you look at that from the assets that were in there. I would say that the thing there, it's performed in line with what we underwrote in general, as we referenced kind of $5-ish million of realized losses. The primary part of the $30-ish million of unrealized that Elizabeth referenced, it's almost -- it's not perfectly this, but think of it as kind of half-ish or so is kind of CLO equity and half-ish or so is kind of the JV that's within that. Both of those are really just impacted by the significant increase in base rates, which led to broadly syndicated loan prices coming down, which really just impacts the underlying equity value of your CLO equity or the underlying equity value of your JV. So I'd say the surprise there would only be that the actual realized part of the portfolio has been in line with what we expected from an underwriting perspective, maybe even a little bit better, frankly, than what we underwrote. Then the unrealized part is just the impact of the rise in base rates, which I don't think we -- as Ian referenced, we've kind of stress tested portfolios, assuming that. But I think all of us wouldn't have underwritten a base case that would have had type of base rate increases over the last 12 to 18 months that we've seen on kind of the pace of them or the significant increase in them. But again, from a realized perspective, we feel really good about that portfolio. I don't know if team would add anything?Bryan D. HighFuture M&A.Eric J. LloydFuture M&A, Dave. Sorry, didn't hit that one. Thanks, Bryan, for reminding. I'd say you shouldn't expect us to do some M&A that would be in line with particularly what I'd say MVC. MVC was one that was a different type of assets than what we historically would generate here at Barings. At the time, we believe we got that at a really attractive value for shareholders. We believe over time, that's going to continue to be true when you balance the CSA that Barings bears the risk on and the BDC does not bear the risk on, combined with the value of the underlying equity assets that are in there, we believe that will be an attractive acquisition for shareholders, same with Sierra. But as I referenced earlier, really this year and next year and probably 2025, it's all about focus -- kind of refocusing, taking the complexity out of the BDC, simplifying the BDC, simplifying the story and really just getting back to basics of focusing on first lien senior secured assets and rotating the Sierra and MVC portfolio out and really focusing on the Barings' assets, which I referenced earlier, if you look at the entire portfolio, right, Barings originated assets represent one of our nonaccruals, every other nonaccrual is stuff from what we acquired. And so we really believe that the quality of our originated deals, over time, will benefit shareholders, and that's going to be our focus.David Brian MiyazakiWell, that's very helpful. And I know the CSA creates its own complexity, but at the end of the day, it is a good protection to have in place, and it certainly helps to remind all of us as shareholders that the parent is aligning itself with all of our interests. And I also would have to say to echo the comments on following through on the share repurchases, I think that's also a good expression of alignment.Eric J. LloydAbsolutely, David. And I really appreciate you recognizing that we're doing everything we can to align with shareholders. Again, I think between the 2 CSAs, we've got over $120 million of Barings' risk, not BDC risk to insulate shareholders. And we do believe, and we've tried to, over time, communicate that we think that sends a message as to how we go about the business and how we think about making sure we insulate and protect shareholders from an alignment perspective.OperatorThank you. There are no further questions at this time. I would like to turn the floor back over to Mr. Eric Lloyd, CEO, for closing comments.Eric J. LloydI guess I would first want to just say thanks. I know it's a busy time for everybody to take the time to join these calls, and I appreciate you taking the time to listen to our call and invest in us and ask the questions that you did thanks for putting up with everything from the sirens and the thunder and the lighting that were behind us during the call. And I just want to thank the team, too, with Elizabeth and Jeff and Albert and Ian and Matt and Bryan and everything we've done I really feel great about where we are, the team we have going forward. A number of you have seen some invites to some shareholder stuff that we want to do to get out there and make sure we're communicating with you and telling our story here over the course of time between now and the end of the year.And we're grateful for any time you're willing to invest in us and hear the story because we feel like there's a lot of compelling attributes we have right now that we believe will really benefit the stock price and shareholders over time. So with that, I'll just say thank you, everybody, be well, and I hope everybody having a great summer.OperatorThis concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Thomson Reuters StreetEvents

Q2 2023 Barings BDC Inc Earnings Call

https://finance.yahoo.com/news/q2-2023-barings-bdc-inc-030331367.html

3dd637a3-29e5-3bf6-a57a-11c62f311b05

BBDC

After reaching an important support level, BARINGS BDC, INC. (BBDC) could be a good stock pick from a technical perspective. BBDC recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, since bigger time periods tend to form stronger breakouts.A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.Over the past four weeks, BBDC has gained 11.1%. The company currently sits at a #3 (Hold) on the Zacks Rank, also indicating that the stock could be poised for a breakout.Looking at BBDC's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 3 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on BBDC for more gains in the near future.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportBARINGS BDC, INC. (BBDC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Barings BDC (BBDC)'s Technical Outlook is Bright After Key Golden Cross

https://finance.yahoo.com/news/barings-bdc-bbdc-technical-outlook-135503415.html

646e80d5-379f-3bde-a9cd-aa11e464d97f

BBSI

Readers hoping to buy Barrett Business Services, Inc. (NASDAQ:BBSI) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Accordingly, Barrett Business Services investors that purchase the stock on or after the 17th of August will not receive the dividend, which will be paid on the 1st of September.The company's next dividend payment will be US$0.30 per share, and in the last 12 months, the company paid a total of US$1.20 per share. Calculating the last year's worth of payments shows that Barrett Business Services has a trailing yield of 1.3% on the current share price of $94.15. If you buy this business for its dividend, you should have an idea of whether Barrett Business Services's dividend is reliable and sustainable. So we need to investigate whether Barrett Business Services can afford its dividend, and if the dividend could grow. See our latest analysis for Barrett Business Services Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Barrett Business Services has a low and conservative payout ratio of just 18% of its income after tax. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Thankfully its dividend payments took up just 29% of the free cash flow it generated, which is a comfortable payout ratio.It's positive to see that Barrett Business Services's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.Story continuesClick here to see the company's payout ratio, plus analyst estimates of its future dividends.historic-dividendHave Earnings And Dividends Been Growing?Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Fortunately for readers, Barrett Business Services's earnings per share have been growing at 15% a year for the past five years. Earnings per share have been growing rapidly and the company is retaining a majority of its earnings within the business. This will make it easier to fund future growth efforts and we think this is an attractive combination - plus the dividend can always be increased later.Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, Barrett Business Services has lifted its dividend by approximately 8.7% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.The Bottom LineShould investors buy Barrett Business Services for the upcoming dividend? Barrett Business Services has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination. Overall we think this is an attractive combination and worthy of further research.So while Barrett Business Services looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. To that end, you should learn about the 2 warning signs we've spotted with Barrett Business Services (including 1 which is a bit concerning).If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Here's What We Like About Barrett Business Services' (NASDAQ:BBSI) Upcoming Dividend

https://finance.yahoo.com/news/heres-barrett-business-services-nasdaq-120234871.html

50e56a7c-93fd-3f6e-bea9-2d0745719085

BBSI

Looking at Barrett Business Services, Inc.'s (NASDAQ:BBSI ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether. Check out our latest analysis for Barrett Business Services The Last 12 Months Of Insider Transactions At Barrett Business ServicesThe insider Jon Justesen made the biggest insider purchase in the last 12 months. That single transaction was for US$464k worth of shares at a price of US$92.85 each. So it's clear an insider wanted to buy, at around the current price, which is US$96.68. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Barrett Business Services share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Jon Justesen.You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!insider-trading-volumeBarrett Business Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.Barrett Business Services Insiders Are Selling The StockThe last three months saw significant insider selling at Barrett Business Services. In total, Independent Director Thomas Carley dumped US$117k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.Story continuesDoes Barrett Business Services Boast High Insider Ownership?Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.1% of Barrett Business Services shares, worth about US$20m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.What Might The Insider Transactions At Barrett Business Services Tell Us?An insider hasn't bought Barrett Business Services stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're not overly bothered by recent selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Barrett Business Services (of which 1 is a bit concerning!) you should know about.But note: Barrett Business Services may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

This Barrett Business Services Insider Increased Their Holding By 20% Last Year

https://finance.yahoo.com/news/barrett-business-services-insider-increased-101611154.html

2866f82c-ba0a-394c-8fe1-e8ac465c1a5a

BBWI

Customers can now experience the season's best and most iconic scents across 100+ limited-edition productsCOLUMBUS, Ohio, Aug. 28, 2023 /PRNewswire/ -- Praline Delight, Farmhouse Pumpkin & Spice and Cozy Vanilla Bourbon are just a few of the new Bath & Body Works fall fragrances greeting customers online and in stores beginning today. With this year's launch, the beloved fragrance retailer drew inspiration from the ingredients that make the sights, scents, and flavors of the season unique and beautiful."At Bath & Body Works, we know offering an extensive selection of fragrances is paramount to give every customer a way to experience the season their way," said Betsy Schumacher, Chief Merchandising Officer at Bath & Body Works. "This year's collection blends nostalgic and iconic favorites with new and unexpected scents that are sure to surprise and delight customers. From beloved fall ingredients like apples and pumpkins to fall-forward sweets and drinks and outdoorsy-inspired scents, there's truly something for everyone in this year's collection."As part of the fall launch, customers can expect to experience nine new Bath & Body Works fragrances, including:Apricot & Green Fig with notes of apricot, sandalwood and lush figPraline Delight with notes of roasted pecans, brown sugar and creamy caramelCozy Sunday Night with notes of warm cinnamon, crystallized ginger and vanilla beanCherry Almond Shortbread with notes of vanilla shortbread, candied almond and cherryFarmhouse Pumpkin & Spice with notes of heirloom pumpkin, patchouli and fall spicesMoonlit Martini with notes of vibrant fruit, sparkling gin and midnight muskCopper Fields with notes of harvest sun, fresh wildflowers and bronzed woodsFresh Vanilla Blossoms with notes of sueded petals, soft sandalwood and vanilla beanCozy Vanilla Bourbon with notes of warm bourbon, dark fruit and vanilla liqueurStory continuesBath & Body Works' most iconic and bestselling fall scents are also back for a limited time. Fragrances like Sweet Cinnamon Pumpkin, Marshmallow Fireside, Sweater Weather and more are available in a multitude of products across body care and home fragrance collections to help customers refresh their homes and their self-care routines with something new for the season. Additionally, the brand offers a four-step system in popular fall fragrances like Leaves, Pumpkin Pecan Waffles and Champagne Apple & Honey to give customers the opportunity to build the very best and most wonderfall home fragrance experience across Wallflowers, Hand Soaps, Candles, and Room Spray.Visit a Bath & Body Works store or bathandbodyworks.com to experience the full array of fall products available now for a limited time. Customers can also join in the conversation on social and share how fragrance is making their season wonderfall by tagging @bathandbodyworks on TikTok, Instagram, YouTube, and Facebook.ABOUT BATH & BODY WORKSHome of America's Favorite Fragrances®, Bath & Body Works is a global leader in personal care and home fragrance, including top-selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. Powered by agility and innovation, the company's predominantly U.S.-based supply chain enables the company to deliver quality, on-trend luxuries at affordable prices. Bath & Body Works serves and delights customers however and wherever they want to shop, from welcoming, in-store experiences at more than 1,820 company-operated Bath & Body Works locations in the U.S. and Canada and more than 440 international franchised locations to an online storefront at bathandbodyworks.com.Contact:  Mallory Weaver Bath & Body Works [email protected] & Body Works’ most iconic and bestselling fall scents are back for a limited time.Bath & Body Works offers a four-step system in popular fall fragrances like Leaves to give customers the opportunity to build the very best and most wonderfall home fragrance experience across Wallflowers, Hand Soaps, Candles, and Room Spray.With this year’s launch, Bath & Body Works drew inspiration from the ingredients that make the sights, scents, and flavors of the season unique and beautiful.CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/bath--body-works-announces-official-kickoff-of-fall-with-35-wonderfall-just-dropped-fragrances-301911686.htmlSOURCE Bath & Body Works

PR Newswire

BATH & BODY WORKS ANNOUNCES OFFICIAL KICKOFF OF FALL WITH 35+ WONDERFALL JUST-DROPPED FRAGRANCES

https://finance.yahoo.com/news/bath-body-works-announces-official-214500524.html

4443e388-2705-339e-a8a7-cdf1ee136a82

BBWI

Bath & Body Works, Inc.COLUMBUS, Ohio, Sept. 05, 2023 (GLOBE NEWSWIRE) -- Bath & Body Works, Inc. (NYSE: BBWI) announced today that Gina Boswell, chief executive officer, and Julie Rosen, president, retail, will participate in a fireside chat at the Goldman Sachs 30th Annual Global Retailing Conference on Tue., Sept. 12, 2023 at 9:35 a.m. EST.A live audio webcast will be available at the time of the event and may be accessed through the Events and Presentations section of the company’s website at https://investors.bbwinc.com/financial-reporting/events-presentations. The webcast will be archived and available at the same location for 90 days after the conclusion of the live event.ABOUT BATH & BODY WORKSHome of America’s Favorite Fragrances®, Bath & Body Works is a global leader in personal care and home fragrance, including top-selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. Powered by agility and innovation, the company’s predominantly U.S.-based supply chain enables the company to deliver quality, on-trend luxuries at affordable prices. Bath & Body Works serves and delights customers however and wherever they want to shop, from welcoming, in-store experiences at more than 1,820 company-operated Bath & Body Works locations in the U.S. and Canada and more than 440 international franchised locations to an online storefront at bathandbodyworks.com.For further information, please contact:Bath & Body Works, Inc.:Investor RelationsHeather [email protected] RelationsJamison [email protected]

GlobeNewswire

Bath & Body Works to Present at the Goldman Sachs 30th Annual Global Retailing Conference

https://finance.yahoo.com/news/bath-body-works-present-goldman-123000109.html

4647160f-4172-3a24-ba23-e5253d62128f

BBY

One stock that investors haven't been excited about this year is Best Buy (NYSE: BBY). The retail stock has fallen 8% year to date, and over the past three years, it's down over 30%. Demand for personal computers (PCs) has been underwhelming, with research company Gartner reporting that worldwide PC shipments during the second quarter were down 16.6% versus the same period last year.Continue reading

Motley Fool

Why Best Buy Stock Could Be an Underrated Buy Right Now

https://finance.yahoo.com/m/e6873399-1485-38a0-80ab-6513cb801154/why-best-buy-stock-could-be.html

e6873399-1485-38a0-80ab-6513cb801154

BBY

There are a few key trends to look for if we want to identify the next multi-bagger. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. So while Best Buy (NYSE:BBY) has a high ROCE right now, lets see what we can decipher from how returns are changing.Return On Capital Employed (ROCE): What Is It?Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Best Buy is:Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)0.25 = US$1.7b ÷ (US$15b - US$8.4b) (Based on the trailing twelve months to July 2023).Thus, Best Buy has an ROCE of 25%. In absolute terms that's a great return and it's even better than the Specialty Retail industry average of 13%. See our latest analysis for Best Buy roceAbove you can see how the current ROCE for Best Buy compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Best Buy here for free.What Does the ROCE Trend For Best Buy Tell Us?On the surface, the trend of ROCE at Best Buy doesn't inspire confidence. Historically returns on capital were even higher at 41%, but they have dropped over the last five years. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It may take some time before the company starts to see any change in earnings from these investments.Another thing to note, Best Buy has a high ratio of current liabilities to total assets of 55%. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks.Story continuesThe Bottom Line On Best Buy's ROCETo conclude, we've found that Best Buy is reinvesting in the business, but returns have been falling. Unsurprisingly, the stock has only gained 10% over the last five years, which potentially indicates that investors are accounting for this going forward. As a result, if you're hunting for a multi-bagger, we think you'd have more luck elsewhere.One more thing to note, we've identified 1 warning sign with Best Buy and understanding it should be part of your investment process.If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning high returns on equity.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Returns On Capital Signal Tricky Times Ahead For Best Buy (NYSE:BBY)

https://finance.yahoo.com/news/returns-capital-signal-tricky-times-115348485.html

de455e11-a6ce-386e-98f8-01d9a0f103b7

BC

Brunswick CorporationMETTAWA, Ill., Sept. 05, 2023 (GLOBE NEWSWIRE) -- Brunswick Corporation (NYSE: BC) today announced the acquisition of Fliteboard, a leader in eFoiling technology, that will further enhance the Company’s industry-leading electrification and shared-access strategies. Fliteboard, which combines advanced hydrofoils and electric propulsion on the water, allows Brunswick to enter the emerging, electric-foiling surfboard market and presents the opportunity for technological, manufacturing, commercial, and consumer synergies with the existing Brunswick portfolio. Fliteboard will operate as a business within Mercury Marine.“Fliteboard's exceptional brand appeal and its advanced eFoiling technology align with our ACES strategy, and we are excited to bring the Fliteboard team into the Brunswick family” said Dave Foulkes, Brunswick Corporation CEO. “Fliteboard will allow us to engage with a new wave of customers who will also have the ability to enjoy the entire portfolio of Brunswick products and services over time.”“We have long respected Brunswick’s leadership position in the recreational marine market, and this announcement enables us to further enhance Fliteboard’s products and customer experience,” said David Trewern, founder, and CEO of Fliteboard. “This union of substantial resources including the growth opportunities within Brunswick with Fliteboard's ground-breaking ethos and designs will allow us to amplify our reach to new markets around the world.”Fliteboard, established in 2016, has customers in more than 90 countries who enjoy its products in the Mediterranean and Caribbean, as well as the lakes and rivers of the U.S. and Europe, beaches of Australia, and waterways of Dubai. Fliteboard has won more than a dozen, major awards including a Red Dot Best of the Best award (for product design) and Good Design Gold Award, among others.“Fliteboard’s dedication to inspire and enable the world to ‘Take Flite’ is a perfect fit for our Next Never Rests mentality,” said Foulkes. “We have an opportunity to scale manufacturing and distribution and, over time, begin aligning sub-systems with our Avator electric outboard product line as we attract a new generation to electric mobility on the water.”Story continuesMembers of the media can access a Fliteboard photo and video gallery here: (LINK)ABOUT BRUNSWICKBrunswick Corporation (NYSE: BC) is the global leader in marine recreation, delivering innovation that transforms experiences on the water and beyond. Our unique, technology-driven solutions are informed and inspired by deep consumer insights and powered by our belief that “Next Never Rests™”. Brunswick is dedicated to industry leadership, to being the best and most trusted partner to our many customers, and to building synergies and ecosystems that enable us to challenge convention and define the future. Brunswick is home to more than 60 industry-leading brands. In the category of Marine Propulsion, these brands include, Mercury Marine, Mercury Racing and MerCruiser. Brunswick’s comprehensive collection of parts, accessories, distribution, and technology brands includes Mercury Parts & Accessories, Land ‘N’ Sea, Lowrance, Simrad, B&G, Mastervolt, RELiON, Attwood and Whale. Our boat brands are some of the best known in the world, including Boston Whaler, Lund, Sea Ray, Bayliner, Harris Pontoons, Princecraft and Quicksilver. Our service, digital and shared-access businesses include Freedom Boat Club, Boateka and a range of financing, insurance, and extended warranty businesses. While focused primarily on the marine industry, Brunswick also successfully leverages its portfolio of advanced technologies to deliver an exceptional suite of solutions in mobile and industrial applications. Headquartered in Mettawa, IL, Brunswick has more than 18,500 employees operating in 29 countries. In 2022, Brunswick was named by Forbes as a World’s Best Employer and as one of America’s Most Responsible Companies by Newsweek, both for the third consecutive year. For more information, visit Brunswick.com.ABOUT FLITEBOARDFounded by David Trewern, Fliteboard is a leading pioneer in the eFoiling industry, transforming the way people experience water sports worldwide. Originating from Byron Bay, Australia, Fliteboard has been fusing innovative technology with sustainable practices since its inception, crafting a unique blend of thrill, tranquillity, and minimal environmental impact. The company's flagship product, the Fliteboard, has propelled it to global recognition, offering a seamless, motorized surfing experience over water without the need for waves. Fliteboard's unwavering commitment to excellence and innovation has continually set new standards in the eFoiling industry. As a brand, Fliteboard epitomizes performance, innovation, design and customer community. Fliteboard has a strong global presence, expanding the joy of eFoiling to enthusiasts across continents and oceans.CONTACT: Lee Gordon — Vice President – Corporate Communications, Public Relations & Public Affairs M: (904) 860-8848 | O: (847) 735-4003

GlobeNewswire

Brunswick Corporation announces the acquisition of Fliteboard

https://finance.yahoo.com/news/brunswick-corporation-announces-acquisition-fliteboard-100000878.html

f6d61ccc-2659-37c5-95a7-6c905a0649c6

BC

Brunswick Corporation BC, the global leader in marine recreation, inked a deal to acquire Fliteboard, a leader in eFoiling technology. The move supports the company’s enhancement in electrification and shared-access strategies.Fliteboard's combination of advanced hydrofoils and electric water propulsion will allow Brunswick to enter the growing electric-foiling surfboard market. This move also paves the path for potential technological, manufacturing, commercial, and consumer synergies within BC's existing portfolio, with Fliteboard operating as a business under Mercury Marine.Given the combination of Brunswick's growth prospects and Fliteboard's innovative ethos and designs, the management is optimistic and anticipates the initiative to drive enhanced global expansion in the upcoming periods.Focus on Mercury MarineThe company continues to expand its Mercury Marine brand by increasing its outboard propulsion presence in the US outboard retail market. Year to date, the U.S. outboard retail market share has increased 140 basis points from the prior year’s levels. This demonstrates the strength of BC's comprehensive propulsion product portfolio.During the second quarter of 2023, the company introduced the first model in the Avator Electric outboard lineup, the Mercury Racing 500R outboard, to global customers. Brunswick also announced the commencement of serial production for the following two models.Following the successful launch of Avator 7.5e, the company unveiled the Avator 20e and 35e electric propulsion systems on Aug 29, 2023. The new models (with built-in SmartCraft Connect module) give users full access to the Mercury Marine app and the option to connect extra Avator batteries to increase range and run time.The company's Oakfield inventory remains appropriately stocked across most categories to cater to the upcoming peak season. BC concluded the second quarter with approximately 19,000 units in the global pipeline. The company is focused on ensuring the pipelines to remain healthy, exiting 2023. It also emphasizes on balancing the need for dealers and other channel partners to represent the portfolio well at their locations while maintaining inventory.Story continuesZacks Investment ResearchImage Source: Zacks Investment ResearchShares of Brunswick have increased 5.3% in the past year compared with the industry's 4.3% rise.Zacks Rank & Key PicksBrunswick currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks from the Zacks Consumer Discretionary sector are:Royal Caribbean Cruises Ltd. RCL sports a Zacks Rank #1 (Strong Buy) at present. It has a trailing four-quarter earnings surprise of 28.5%, on average. The stock has surged 126% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests growth of 54.5% and 180.3%, respectively, from the year-ago period’s levels.Trip.com Group Limited TCOM currently flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 214.2%, on average. The stock has gained 51.1% in the past year.The Zacks Consensus Estimate for Trip.com Group’s 2023 sales and EPS suggests increases of 104.9% and 537.9%, respectively, from the year-ago period’s levels.OneSpaWorld Holdings Limited OSW carries a Zacks Rank #2 (Buy) at present. It has a trailing four-quarter earnings surprise of 42.6%, on average. The stock has gained 28.9% in the past year.  The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates growth of 44.5% and 117.9%, respectively, from the year-ago period’s levels.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportRoyal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis ReportBrunswick Corporation (BC) : Free Stock Analysis ReportOneSpaWorld Holdings Limited (OSW) : Free Stock Analysis ReportTrip.com Group Limited Sponsored ADR (TCOM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Brunswick (BC) Enhances Strategies With Fliteboard Acquisition

https://finance.yahoo.com/news/brunswick-bc-enhances-strategies-fliteboard-143400948.html

a2253512-94ba-338e-8707-4f126ff62db9

BCDA

BioCardia, Inc.SUNNYVALE, Calif., Sept. 06, 2023 (GLOBE NEWSWIRE) -- BioCardia®, Inc. [Nasdaq: BCDA], a developer of cellular and cell-derived therapeutics for the treatment of cardiovascular and pulmonary disease, today announced a clarification and next steps on its autologous CardiAMP cell therapy programs. Based on the recent interim results in the CardiAMP autologous cell therapy for the treatment of heart failure (BCDA-01), the Company is exploring development of a new Phase III clinical trial protocol. The Finkelstein Schoenfeld (FS) primary composite endpoint used in the CardiAMP HF Trial has tiers of outcomes in decreasing order of importance: heart death equivalent, major adverse cardiac and cerebrovascular MACCE, and Six Minute Walk Distance (6MWD). Since the primary FS endpoint is a composite of these elements, meeting the FS endpoint may be met even if one or more of the components does not individually demonstrate statistical significance. This has implications for the future trial design.The CardiAMP HF Trial interim results showed that the first two most important tier outcomes, occurring in 30% of the study patients, could have contributed sufficiently toward efficacy given a longer follow-up period than one year. If these interim results are replicated in a future study in which the third tier 6MWD is replaced with a more objective endpoint, there may be a pathway to a successful trial for product registration in the United States. The FDA has previously expressed a preference for replacing the 6MWD with Cardiopulmonary Exercise Testing, which is a more objective outcome. We are exploring with the CardiAMP HF Study Executive Steering Committee whether to fine tune eligibility criteria for patients based on current data and to replace the 6MWD with Cardiopulmonary Exercise Testing or another other more objective third-tier outcome measurement.Such a protocol may also be capital efficient by eliminating measures that have already been gathered in the ongoing CardiAMP HF study while continuing to utilize the CMS reimbursement program currently in place. Using the cell population analysis screening criterion to set patient dosage, rather than using it to exclude patients from the study, could accelerate enrollment.Story continuesCardiAMP in Chronic Myocardial Ischemia, or BCDA-02, has a generally accepted mechanism of action of microvascular revascularization driven by the CD34 and CD133 components of the dosage. It is a different indication from the heart failure indication and members of the Steering Committee believe it has great potential to be successful even if the heart failure indication is not ultimately successful. Microvascular revascularization and repair to reduce pain and enhance heart performance in a relatively healthy heart is viewed as an easier challenge for the cells to overcome than helping a heart already in failure to recover. This study is on track to complete the roll in cohort enrollment in Q4 and advance to its randomized double blind pivotal trial. BioCardia expects to focus its resources on accelerating this pivotal program ahead and will be incorporating strategies to enhance enrollment.“We have three synergistic clinical programs for the treatment of ischemic heart disease utilizing the leading transendocardial delivery platform which we also developed,” continued Peter Altman. “Our expectation is that we can move all of these programs through significant milestones in the next year on less capital than we have utilized in previous years.”Anticipated Upcoming Milestones and Events:BCDA-01: CardiAMP Cell Therapy for Heart Failure Phase III TrialQ3 2023: Clarity on Second Pivotal Study DesignQ4 2023: Japan PMDA Formal ConsultationBCDA-02: CardiAMP Cell Therapy for Chronic Myocardial Ischemia Phase III TrialQ4 2023: Completion of Roll-in Cohort and Transition to Randomized Pivotal TrialBCDA-03: NK1R+ MSC Allogeneic Cell Therapy in ischemic HFrEF Phase I/II TrialQ3 2023: First Patient EnrolledHelix Biotherapeutic Delivery SystemQ4 2023: Completion of Enrollment in Partner CellProthera’s EXCELLENT TrialQ4 2023: Update on Licensing / PartnershipsAbout BioCardia®BioCardia, Inc., headquartered in Sunnyvale, California, is developing cellular and cell-derived therapeutics for the treatment of cardiovascular and pulmonary disease. CardiAMP™ autologous and NK1R+ allogeneic cell therapies are the Company’s biotherapeutic platforms that enable four product candidates in development. The CardiAMP Cell Therapy Heart Failure Trial investigational product has been granted Breakthrough designation by the FDA, has CMS reimbursement, and is supported financially by the Maryland Stem Cell Research Fund. The CardiAMP Chronic Myocardial Ischemia Trial also has CMS Reimbursement. BioCardia also partners with other biotherapeutic companies to provide its delivery systems and development support to their programs studying therapies for the treatment of heart failure, chronic myocardial ischemia and acute myocardial infarction. For more information visit: www.BioCardia.com.Forward Looking Statements:This press release contains forward-looking statements that are subject to many risks and uncertainties. Forward-looking statements include, among other things, statements relating to future data analysis, future protocol submissions to FDA, anticipated milestones and events, conclusions of results based on interim data generated by the CardiAMP Heart Failure statistics core, the likelihood of safety and patient benefit, and the ultimate success of our clinical cell therapy programs. These forward-looking statements are made as of the date of this press release.We may use terms such as “believes,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” “approximately” or other words that convey the uncertainty of future events or outcomes to identify these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained herein, we caution you that forward-looking statements are not guarantees of future performance and that our actual results may differ materially from the forward-looking statements contained in this press release. Factors that could cause or contribute to such differences include, but are not limited to, the Company’s liquidity position and its ability to raise additional funds, as well as the Company’s ability to successfully progress its clinical trials. As a result of these factors, we cannot assure you that the forward-looking statements in this press release will prove to be accurate. Additional factors that could materially affect actual results can be found in BioCardia’s Form 10-K filed with the Securities and Exchange Commission on March 29, 2023, under the caption titled “Risk Factors” and in its subsequently filed Quarterly Reports on Form 10-Q. BioCardia expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law.Media Contact:Miranda Peto, Marketing / Investor RelationsEmail: [email protected]: 650-226-0120Investor Contact:David McClung, Chief Financial OfficerEmail: [email protected]: 650-226-0120

GlobeNewswire

BioCardia Announces Clarification and Next Steps on its Autologous CardiAMP Cell Therapy Programs

https://finance.yahoo.com/news/biocardia-announces-clarification-next-steps-111500885.html

be738f78-a3e4-368f-ae38-58cdaff41f78

BCDA

Shares of BioCardia BCDA plummeted 25.5% on Tuesday after management announced disappointing interim results from an ongoing pivotal phase III study evaluating the company’s CardiAMP cell therapy for heart failure.Based on a one-year follow-up review, the results from the interim analysis indicate that the study is unlikely to meet its primary efficacy endpoint based on the three-tiered Finkelstein-Schoenfeld (FS) hierarchical analysis of 12-month data.Per BioCardia, patients treated with CardiAMP cell therapy did not show any statistically significant improvement over those in the control group in any of the three tiers – all-cause death (including cardiac death equivalents), non-fatal major adverse cardiac events (MACCE) and change in six-minute walk test distance (6MWT).However, the study investigators stated that the patients treated with CardiAMP cell therapy reported lower rates of adverse outcomes than those in the control group.Currently, management is identifying patients from the study who have responded the most to CardiAMP cell therapy. It plans to use the findings from this study in BioCardia’s other ongoing clinical programs.In the year so far, shares of BioCardia have plunged 72.3% compared to the industry’s 13.2% fall.Zacks Investment ResearchImage Source: Zacks Investment Research The above announcement also confirms the recommendation issued in July from an independent data safety monitoring board (DSMB) for pausing enrolment in the study until a one-year follow-up analysis was available. This recommendation was based on an initial analysis of data by the DSMB, wherein it concluded that the study was not likely to meet its primary efficacy endpoint.CardiAMP cell therapy uses a patient's bone marrow cells to the heart via a catheter-based procedure to stimulate the body’s natural healing response.BioCardia, Inc. Price BioCardia, Inc. PriceBioCardia, Inc. price | BioCardia, Inc. Quote Zacks Rank & Stocks to ConsiderBioCardia currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include Annovis Bio ANVS, Dynavax Technologies DVAX and Gracell Biotechnologies GRCL, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Story continuesIn the past 30 days, estimates for Annovis Bio’s 2023 loss per share have narrowed from $4.89 to $4.38. During the same period, the loss estimates per share for 2024 have improved from $3.18 to $2.77. Year to date, shares of ANVS have lost 12.4%.Earnings of Annovis Bio beat estimates in three of the last four quarters while missing the mark on one occasion, witnessing an earnings surprise of 13.40% on average. In the last reported quarter, Annovis’ earnings beat estimates by 6.14%.In the past 30 days, estimates for Dynavax Technologies’ 2023 loss per share have improved from 34 cents to 24 cents. During the same period, the estimates per share for 2024 rose from a loss of 14 cents to earnings of 2 cents. Year to date, shares of DVAX have risen 33.7%.Earnings of Dynavax Technologies beat estimates in two of the trailing four quarters and missed in the remaining two, the average surprise being 25.78%. In the last reported quarter, Dynavax Technologies’ earnings beat estimates by 133.33%.In the past 30 days, estimates for Gracell Biotechnologies’ 2023 loss per share have improved from $1.53 to $1.23. During the same period, the loss estimates per share for 2024 have narrowed down from $1.60 to $1.33. Year to date, shares of GRCL have risen 39.6%.Earnings of Gracell Biotechnologies beat estimates in two of the trailing four quarters, missed the mark on one occasion while meeting the mark on another. On an average, the company has reported a negative surprise of 62.71%. In the last reported quarter, Gracell Biotechnologies’ earnings beat estimates by 18.92%.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportDynavax Technologies Corporation (DVAX) : Free Stock Analysis ReportBioCardia, Inc. (BCDA) : Free Stock Analysis ReportAnnovis Bio, Inc. (ANVS) : Free Stock Analysis ReportGracell Biotechnologies Inc. Sponsored ADR (GRCL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

BioCardia (BCDA) Dips 26% on Flunking Heart Failure Study

https://finance.yahoo.com/news/biocardia-bcda-dips-26-flunking-143100481.html

39cdd6b1-c648-3779-86a4-46c1f5679a93

BCLI

ParticipantsChaim Lebovits; President & CEO; Brainstorm Cell Therapeutics Inc.Stacy Lindborg; Co-CEO; Brainstorm Cell Therapeutics Inc.Alla Patlis; Interim CFO; Brainstorm Cell Therapeutics Inc.Kirk Taylor; EVP & Chief Medical Officer; Brainstorm Cell Therapeutics Inc.Michael Wood; IR; LifeSci Advisors, LCCJason McCarthy; Analyst; Maxim Group LLCPresentationOperatorGreetings, and welcome to the Brainstorm Cell Therapeutics second-quarter 2023 earnings call. (Operator Instructions) As a reminder, this call is being recorded.And I would now like to introduce your host for today's call, Mr. Michael Wood of LifeSci Advisors. Mr. Wood, you may begin.Michael WoodGood morning, and thank you for joining us this morning. Earlier today, Brainstorm issued a press release with its financial results for the second quarter of 2023, including a corporate update.Before passing it off the company for prepared remarks, I'd like to remind listeners that this conference call will contain numerous statements, descriptions, forecasts, and projections regarding Brainstorm Cell Therapeutics and its potential future business operations and performance statements regarding the market potential for the treatment of neurodegenerative diseases such as ALS, the sufficiency of the company's existing capital resources for continued operations in 2023 and beyond, the safety and clinical effectiveness of NurOwn technology platform, clinical trials of NurOwn and related clinical development programs, and the company's ability to develop strategic collaborations and partnerships to support its business planning efforts.Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond Brainstorm's control, including the risks and uncertainties described from time to time in the company's SEC filings. The company's results may differ materially from those projected on today's call, and the company undertakes no obligation to publicly update any forward-looking statements.Joining us on the call this morning will be Chaim Lebovits, President and CEO of Brainstorm; Dr. Stacy Lindborg, Co-Chief Executive Officer; and Alla Patlis, Interim Chief Financial Officer. In addition, Brainstorm's Executive VP and Chief Medical Officer, Dr. Kirk Taylor, is also on the call and will be available to answer questions during the Q&A session. So I'd like to turn the call now to Mr. Lebovits. Please go ahead.Story continuesChaim LebovitsThank you, Michael. Thank you all who have joined us to discuss our Q2 2023 financial results and recent progress. Our main priorities right now are to prepare for the forthcoming advisory committee for NurOwn, our investigational therapy for the treatment of ALS, and to make sure the company is prepared to make NurOwn available to patients.As announced in June, the FDA will convene a meeting of the cellular tissue and gene therapies advisory committee to review our BLA for NurOwn on September 27. In addition, the BLA has been assigned a PDUFA action date of December 8, 2023.NurOwn's regulatory process, as we have mentioned previously, will be the same as it is for any other investigational therapy that is subject of a filed BLA. The upcoming outcome will be guided by an agenda that includes detailed presentations, a brainstorm, and the FDA, which will allow our team and the agency to discuss the clinical evidence supporting NurOwn's safety and efficacy as an ALS therapy.Other key stakeholders, including independent medical experts, statisticians, and patient advocates, will then have the opportunity to provide their own unique perspective on NurOwn's clinical dataset as well as the unmet needs of people living with ALS. Members of the AdCom will then have the opportunity to vote on the response to the question set forth by the FDA.The agency will take the results of this vote or these votes, as well as the preceding discussions at the meeting under advisement when coming to a decision on the BLA, which will be made by the December 8 PDUFA date.Given the strength of the clinical evidence we have generated at NurOwn, we remain confident in our ability to achieve a successful outcome from the AdCom and are preparing for success to ensure we can make NurOwn available to patients as quickly as possible if approved later this year.Our team is focused on being fully prepared in advance of the upcoming AdCom. These preparations began months ago and continue today as we work with our expert consultants to ensure we can present and respond to all questions that the FDA and AdCom members might raise.We are grateful to the FDA for its cooperation throughout the review process and recognize that the agency is taking our application very seriously.I'll now turn the call over to my colleague, Dr. Stacy Lindborg, for additional comments, Stacy?Stacy LindborgThank you, Chaim. We are looking forward to the AdCom in September and cannot overstate the importance of this meeting in NurOwn's regulatory path given the scientific and policy issues that need to be understood.The FDA has rightly shown a willingness to apply regulatory flexibility when evaluating investigational ALS therapies over the last year, and we look forward to having NurOwn's full data set discussed in the context of the need for new ALS therapies in the public forum offered by an AdCom.As we move towards the FDA's decision, we continue to have full confidence in our data and believe that a comprehensive analysis of our results strongly support NurOwn's clinical efficacy and safety. We remain committed to the scientific and regulatory process, which includes continuing research to confirm the results of the NurOwn clinical program.We also remain committed to ongoing learning about the safety and the clinical effectiveness of NurOwn. For this reason, we have assembled a steering committee to gather input on goals and the core design elements of a confirmatory trial. We look forward to providing an update prior to the AdCom.We continue to be active with the ALS community at scientific conferences. We delivered an important presentation featuring new biomarker data and at the recent 2023 Gordon Research Conference for ALS and related motor neuron diseases.As we've described previously, during the NurOwn Phase 3 trial, we collected CSF fluid from all trial participants and examined biomarkers spanning three pathways important ALS pathology, neuroinflammation, neurodegeneration, and neuroprotection.The study is the most robust CSF biomarker study conducted in people living with ALS. And the new data presented at the Gordon Conference features analysis of a biomarker known as neurofilament light in addition to more broadly providing evidence of the importance of using baseline disease characteristics in the analysis of biomarker data, which I'll provide the rationale for.I believe we all appreciate how heterogeneous ALS is as a disease. Because of this, it is common practice to include ALS disease characteristics of [covariates] in the analysis of clinical data, which we also did our Phase 3 trial. The goal is to include information that could influence an individual's prognosis in addition to therapy so that you're drawing appropriate conclusions relative to the treatment effects in the trials.When we decided to include these as covariates in our biomarker analyses, we drew on the ALS literature and the final guidance released in 2023 by the FDA on adjusting for covariates in randomized clinical trials for drugs and biologic products.What's the goal of exploring the importance of ALS disease characteristics in our biomarker data? From Phase 3, we employed five disease covariates that were prespecified and used in a primary efficacy model in the trial. These covariates, which include baseline ALSFRS-R score, the baseline rate of decline, use of riluzole, fight of ALS disease onset, and time since symptom onset to treatments are well supported in the literature.As highlighted in our poster presentation, all five disease covariates, in addition to biomarker data, had a significant impact on clinical outcomes. Therefore, the analysis of biomarker data can reflect the treatment effect more accurately when accounting for the baseline heterogeneity of participants. Including these covariates in the analysis across all biomarkers simply adds precision to the results.In the poster, we highlighted the longitudinal trajectory of four biomarkers, including neurofilament light as examples of the improvements observed in biomarkers following treatment with NurOwn compared to placebo across all participants in the trial.Neurofilament light has been getting a lot of attention in the scientific community and with drug developers as evidenced by the exponential growth in publications in recent years. In NurOwn-treated participants, we observed an 11% decrease from baseline to week 20 in neurofilament light, with the change of around 1% with placebo and a significant treatment difference of a P less than 0.05.The other biomarkers highlighted in the poster also showed significant treatment differences with the decreases in pro-inflammatory biomarker MCP-1 and large increases in neuroprotective biomarkers, VEGF and galectin-1.I also presented two other results in the poster. First, neurofilament light baseline levels appear to be prognostic of ALS disease progression. This means that participants with higher baseline neurofilament light values had greater decline from baseline to week 28 as measured by the ALSFRS-R. This finding confirms the results seen in other ALS trials, which is promising for the field.The last analysis we presented was motivated by the literature and has been used in the review and approval products by the FDA in diseases such as pulmonary arterial hypertension and triple-class refractory multiple myeloma in addition to ALS through the review of tofersen.And while NurOwn's mechanism of action is very different from tofersen, as we have a broad multi-modal mechanism faction simultaneously targeting biological deficiencies associated with ALS, we felt these analyses were important to conduct and understand the insights derived into our data based on the relationship between neurofilament light and clinical outcome.The analysis used an approach called causal inference, sometimes referred to as outcomes regression, and it allows us to explore the relationship between the change in neurofilament light and the change in ALSFRS-R due to NurOwn alone by adjusting the observed outcome with the change we would have expected due to the natural progression of the disease.The analysis presented confirm that NurOwn-driven reductions in neurofilament light are associated with less decline in the ALSFRS-R from baseline to week 28. Taken together, data from the literature and the NurOwn Phase 3 trials, support the hypothesis that treatment-driven reduction in neurofilament light are reasonably likely to be associated with clinical benefit in ALS.We believe these results are timely given the regulatory precedent that was set in ALS this year. In April, the FDA granted accelerated approval to Biogen and Ionis's drug, tofersen, to treat a genetic form of ALS known as SOD1 ALS, which represents approximately 2% of ALS patients.The approval decision was based in part on tofersen's ability to lower plasma levels of neurofilament light, establishing the view that reductions in neurofilament light are reasonably likely to be associated with clinical benefit in ALS.Specifically, when the AdCom that reviewed tofersen was asked whether the available evidence supported a reduction in plasma neurofilament concentration as reasonably likely to predict clinical benefit, the committee voted unanimously nine to zero. This is the first time an ALS drug was approved by the FDA based on biomarker data.I'll now turn the call back to Chaim for some additional comments.Chaim LebovitsThank you, Stacy. Our second main priority, as I mentioned earlier, is to ensure commercial preparedness and execute on the various activities that we need to complete in order to make NurOwn available to patients if approved.These include activities across manufacturing, commercial and medical affairs to engage with the physicians who treat ALS, and also early discussions with payers. In terms of how NurOwn would actually be delivered to ALS patients, the first step is to collect bone marrow from the patient, and this is then shipped to our manufacturing facility where the [MSEs] would undergo a series of steps to create the therapeutic product.We're currently in discussions to be able to sign contracts with centers of excellence across the United States so that they will be set up to collect bone marrow from patients, and we can initiate the manufacturing process for each person's personalized treatment. We'll begin with 8 to 10 centers and then move to broader engagement with more centers.As we have outlined before, we're in the process of a targeted capability build to expand our team in preparation for anticipated growth. We want to be able to move quickly. So if we're successful in achieving approval for NurOwn, we will have the infrastructure in place, and the wait for patients and families to gain access will be as short as possible.We have made a number of hires and management changes so far in 2023. At the beginning of the year, Dr. Stacy Lindborg was promoted to co-CIO. Then early in the second quarter, we appointed Dr. Kirk Taylor as Executive Vice President and Chief Medical Officer. Kirk will lead the global medical affairs function and launch activities, including planned product launches, post-approval commercialization efforts, and deepening relationships with the medical community.More recently, in July, we appointed Dr. Bob Dagher as Executive Vice President and Chief Development Officer. Bob will be responsible for the portfolio strategy and advancement of clinical development plans towards regulatory approval, including the expansion of NurOwn into new diseases and the translation of pre-clinical research in the first-in-human trials.He brings approximately 20 years of industry expertise in the development and approval of treatments for challenging neurological and rare diseases. He began his career at GSK and has served in leadership positions of science and medicine at companies such as Sanofi Genzyme and LabCorp Covance.Finally, we also made an important addition to our Board with the appointment of Nir Naor a Board member and the Chairman of the audit committee and member of the governance, nomination, and compensation Committee.Nir brings over 20 years of global work experience as a CFO and Senior Finance Leader. He has a broad background that includes large pharma and biotech and has overseen organizations with up to $2.5 billion in sales and $1 billion in annual spend.We are excited to expand our team with these and other talented individuals, and I know they share our vision and excitement around NurOwn prospect. This expanded team is fully focused to prepare Brainstorm for the exciting future ahead.I'll now turn the call over to Alla to discuss our financials. Alla?Alla PatlisThank you, Chaim. Cash, cash equivalents, and short-term bank deposits were approximately $0.75 million as at the end of June 2023, compared to approximately $3 million as of the end of December 2022. In July 2023, subsequent to the end of the quarter, the company raised net proceeds of approximately $7 million in the registered direct offering.Research and development expenses for the three months ended June 30, 2023, and 2022 were approximately $2.8 million and $5.1 million, respectively. General and administrative expenses for the three months ended June 30, 2023, and 2022 were approximately $2.7 million and $2.5 million, respectively.Net loss for the three months ended June 30, 2023, was approximately $5.3 million or $0.13 per share as compared to net loss of approximately $7 million or $0.19 per share for the three months ended June 30, 2022.I'll turn it back to Chaim. Chaim?Question and Answer SessionChaim LebovitsThank you, Alla. I'll ask I'll ask Michael Wood from LifeSci to read the questions we have received from investors. Michael?Michael WoodThanks, Chaim. The first question, is the submitted BLA for NurOwn definitely seeking full approval or accelerated approval?Chaim LebovitsThe BLA filed is seeking full approval. Thank you.Michael WoodThanks. And does the BLA includes data collected from patients that have been treated under the expanded access program and from the [Israeli HE] pathway?Chaim LebovitsYes, that is correct. Data from both programs were included in the BLA.Michael WoodDo you still intend to publish your biomarker manuscript?Chaim LebovitsAbsolutely. The biomarker data is a compelling part of our evidence, which provides strong support of the clinical data. And we can confirm the paper is under review at a highly regarded journal. The senior authors are Dr. Bob Brown and Dr. Merit Cudkowicz, and the paper includes other leading researchers and scientists.Michael WoodThanks. The next question relates to the Gordon Conference. Why did you only recently decided to look at baseline characteristics of patients and make this presentation at Gordon? And did the results change substantially once you've counted the baseline characteristics?And then having listened to Stacy's discussion this morning, I have an additional question I'm going to add, and that is we're intrigued by the word precision that Stacy used in her prepared remarks. Can you please explain what this means?Chaim LebovitsStacy, I'll have you answer this question.Stacy LindborgOkay. So to the first question, why adjust for baseline characteristics, now basically, this is an example of emerging science.If you look at the public documents from tofersen to AdCom, you'll see that the FDA did a lot of work exploring the importance of disease covariates, including all of the baseline disease covariates that we prespecified in our efficacy analyses that I actually spoke about in my prepared remarks. And they did this as they were analyzing tofersen data.Also, as I referenced earlier, the FDA issued a final guidance on adjusting for covariates in randomized clinical trials, which was very timely and provided important perspective. In fact, when we reviewed the guidance, which focused on prognostic baseline covariates, what stood out to us was that sponsors should prospectively specify covariate-adjusted analyses.Therefore, we thought it logical to use the covariates specified in our Phase 3 statistical analysis plan. So the guideline also noted that covariate adjustment was acceptable even if baseline covariates are strongly associated with each other. So this guidance, combined with the importance the FDA placed on these covariates in tofersen's review, led us to explore the importance of these covariates in our data.As a side note, in the analysis that we ran, we also used the model that FDA used with tofersen data. And in the cases where this was done, the [significance that has helped] across our data is quite robust.Michael, if I understood your question at the end, you wanted to know what I meant by the word precision. Let me first recall this statement I made earlier. So I referenced that in the analysis of our biomarker data, we can reflect the treatment effect more accurately when we account for baseline heterogeneity of patients.So in other words, by adding these characteristics, which really help identify ways that the disease is variable across patients, it brings precision to the estimate of treatment.So here, when I use this word, precision, what I mean is that the model with disease covariates included in it and these covariates' influence can influence the rate of disease progression. This will have a better ability to capture variability observed in the data. And the significance of these covariates tells us that this is the right way to analyze the data. Otherwise, you're ignoring important information in the analysis.The last part of the question was how the results compared across the model that had baseline covariates versus one, the model that did not. The biomarker results from the model -- from both models actually are very similar with no conclusions changing substantially for any biomarker.There were two biomarkers that were already trending towards a significant treatment effect. One was neurofilament light; the other was neuroprotective biomarker HGF. And accounting for these disease characteristics resulted in the P value dropping just below the conventional level of 0.5.But even for these two biomarkers, the overall pattern in the treatment effect as well as the percent change from baseline in both arms is very similar to the results of the model that didn't adjust for the terms. The estimate of the treatment effect just had more precision because it could take into account important information that also includes clinical outcomes in addition to treatment.Michael WoodThanks, Stacy. Next question, do you intend to proceed with a confirmatory clinical trial?Chaim LebovitsYes, we have definite plans to proceed with a confirmatory trial. It's for months now that we have been meeting with a steering committee of leading clinicians and statisticians. We intend to share more after we get input from the FDA.In this regard, I would like to really share that we're very thankful for the California Institute for Regenerative Medicine firm that reached out to us, and they asked us that they would be interested that we submit an application for such a trial. Thank you.Michael WoodIs there a reason that you're granted a different AdCom from the AdCom that oversaw the Amylyx and Biogen drugs? Do you think this is a good or bad sign that you are being reviewed at a different AdCom?Chaim LebovitsYes. So the designation of the advisory committee that advises FDA for an application under review is determined by the specific center of the FDA center that the application is filed with. The RELYVRIO and QALSODY were both submitted as new drug applications NDA to CDER or the Center for Drug Evaluation and Research, while NurOwn, being a biological product -- a stem cell product, was submitted as a biologic license application to CBER or the Center for Biologics Evaluation and Research.Each center has multiple AdComs For example, CBER has four. NurOwn will be reviewed by CBER's cellular tissue and gene therapies advisory committee.If anyone is interested to look in deeper to this, there's a document called the inter-center agreement between the CDER and the CBER assigned to each center's jurisdiction for regulation of drug and biological products and combination of drugs and biological products. And it describes those product characteristics or medical indications that would require a collaborative review of effort by the two centers.Michael WoodThanks. The next question relates to clinical manufacturing controls or CMC. Have you been able to submit amendments to address the CMC items identified by the FDA in their initial RTF letter? And if so or if not, do you anticipate any impact on the PDUFA date?Chaim LebovitsSo yes, definitely, as we have shared, and I'll confirm this again, the FDA has allowed us to submit amendments, and we have submitted those amendments. Sure. Thank you.Michael WoodAnd have you been having any conversations directly with the FDA while the BLA has been under review?Chaim LebovitsYes. As is typical for a BLA under review, we have regularly occurring interactions with the FDA. We received quite a few requests for information, which we have responded to in a timely fashion. We also were able to share presentations in addition to other interactions.Michael WoodYou reported that around 25% of patients in your Phase 3 study had a baseline value below 25. And in these patients, further declines could not be measured because the items reached zero. You referred to this as the floor effect. Can you please expand on the floor effect, and do you have any biomarker data for these participants?Chaim LebovitsThank you. Stacy, please?Stacy LindborgSure. I want to start by just reflecting on the fact that the ALSFRS-R remains the best outcome measure that we have today. But like any bounded scale, it has limitations. And in the group of participants asked about in this question who were in the bottom half of the scale, there was a high rate of participants with ALSFRS-R items, specifically in the fine and gross motor subdomain that started at zero with approximately 40% on starting at zero across all six items.The rate of zero values, especially on the fine and gross motor, is problematic to measuring a treatment effect in a trial because it's expected that the fine and gross motor domains account for about 70% of decline observed in trials. This therefore confounds the ability to show a treatment effect as the ALSFRS-R can't measure further decline once items reached zero.So the question about biomarker data in these participants, we have looked at biomarker data in these participants. And in fact, at the Gordon Conference, we reported first that we observed significant improvements on ALS biomarkers with NurOwn versus placebo in all trial participants. And this was important across the three important pathways that I referenced in my opening remarks, neuroinflammation, neurodegeneration, and neuroprotection.We in fact see very similar treatment patterns in participants with baseline scores 25 and below on the ALSFRS-R. And what this suggests is that NurOwn is biologically active in the overall population that was studied in the trial, which includes participants with advanced ALS disease where the scale, the ALSFRS-R scale, demonstrated measurement challenges.Michael WoodThanks, Stacy. Next question relates to your clinical pipeline. Brainstorm has said that it's working on the use of its product for other indications. Investors have been hearing about this now for years. Please provide some specificity with respect to what working on it means.Chaim LebovitsWell, thank you. I'll ask Dr. Kirk Taylor to take this question, please.Kirk TaylorGreat, Chaim, thank you. Sure. Well, we completed a Phase 2 study evaluating NurOwn as a treatment for progressive MS and announced positive results in 2021. We have worked with neurologists and statisticians with deep expertise in MS to design the next trial and have a solid protocol concept prepared that builds on the completed Phase 2a study.We've also prepared a protocol concept designed to study the impact of NurOwn in Alzheimer's disease in the context of the unmet need that remains with the approval of treatments that remove amyloid plaque, consulting with leading experts, and that's NurOwn in Alzheimer's disease.Designed to the question addressed here is, though, in patients for amyloid plaque has been removed, could NurOwn increase cognitive function above baseline levels? That's the question. NurOwn's mechanism of action supports our view that it may have broad applications in neurodegenerative disease. However --Chaim LebovitsKirk?Kirk TaylorI'm sorry -- however, like many of our peers in biotech industry, we need to prioritize resources and focus those programs that could potentially benefit patients in the near term and create value for our stakeholders. At this point, we are focused primarily on the ALS program and getting approval in that indication. We intend to move forward with other programs as resources allow. Thank you.Michael WoodThank you. I have one final question. Did Brainstorm finalize on the follow-on offering with Maxim for $7.5 million?Chaim LebovitsYes, in addition to the PR on this matter, as is common practice, we did publish an 8-K. Just to provide some more color on this. We will continue to explore the best ways for finance. We'll have multiple options to finance going forward, and the company will be quite opportunistic to utilize the most favorable opportunities that comes our way at the time of need. Michael?Michael WoodAnd that's the final question.Chaim LebovitsThank you so much. Jenny, would you open for any additional questions?OperatorYes, no problem. (Operator Instructions) Jason McCarthy, Maxim Group.Jason McCarthyHi, all. Thanks for taking the question. Really looking forward to that AdCom in September. And about that AdCom, do you expect -- based on your covariate analysis of the five covariates and what you've shown around NFL, particularly in that presentation in July, do you expect the same questions that Biogen had gotten where there was the vote on NFL, nine to zero, but there was differences in the voting, three yes, five no, on the full approval, I guess, requiring a confirmatory study. Do you expect a similar question?Chaim LebovitsThank you very much. Stacy?Stacy LindborgHi, Jason. It's great to hear from you. My thinking about that is this is a different AdCom, a different FDA center, a different application, very different mechanism of action. I think what each of the drug programs was presenting is their evidence also is quite different. So we both bring interesting insights into neurofilament light and the association with the ability to actually mention and show that reductions in neurofilament light are results in an association with the improved clinical outcomes.It is a strength, but I've learned over the course of my career to not assume anything with regard to the regulators. We'll actually get the questions out there, close to the time of the AdCom. And I think the questions that we're asked were relevant, but we'll know for certain what our questions are right before the AdCom.Jason McCarthyDuring that AdCom, as part of the presentation, will it be made more of a point on the safety aspects of NurOwn, given that it is an autologous cell therapy, it's not genetically manipulated and that it is a far safer approach apparently than other drugs for ALS, including the Biogen drug/Chaim LebovitsStacy?Stacy LindborgYes, so we will present the full set of data, efficacy and safety. And Jason, we share your confidence in the safety of NurOwn, not only in the data we've generated but as a result of the way that our product is made. And we will provide a compelling overview of all data at our presentation.Jason McCarthyAnd just lastly, a brief question on the potential commercialization plan. I know it's early, but from a pricing perspective, tofersen, priced at around $14,000 or so just north of that per treatment, but it's about $200,000 all called for a year, is that a similar pricing strategy that you could expect for a cell therapy?And just from a launch perspective, Chaim, you had mentioned getting possibly 8 to 10 centers initially for bone marrow collection. How large of a sales force would you need to complete your initial commercialization plans?Chaim LebovitsYes. So thank you very much. Many of these questions is premature for us to answer for regulatory reasons, as you know. But I like the assumptions you're laying out. And I think what will be very important is to find the centers of excellence doing not only the bone marrow aspirations but the intrathecal injections, which some of these, like [Sarepta] treatments and [Topican] treatments, really helps out.And more and more centers have that expertise. And that's what we'll be focusing and probably will start with the centers of the trial, which already have a lot of experience with our product. But we're also talking to many other geographical centers and make sure that patients from other geographies have a center close nearby to where they are.Just a comment to a previous question you asked, and Stacy answered a little bit, is of course, we believe that our clinical data set, even though the primary endpoint did not hit statistical significance, we think that the body of evidence, moving forward, we are able to show statistically significant results once we're able to show and dive into -- more deeper into the data set, which you spent a lot of time and I don't want to repeat it for you.Therefore, I think that the question will be more focused on clinical, why the biomarker data gives strong support to what we're seeing in the clinical as it covers even for the part of the score where we think it's not sensitive in the more advanced patients. But when you are able to eliminate the advanced patients, we see both in the primary and secondary endpoints statistical significant results.Of course, we're not going to lay it out here. That's what we're going to do at the AdCom. But thank you very much for those questions, Jason.Michael WoodChaim and Stacy, thank you.Chaim LebovitsSure.OperatorThank you very much. (Operator Instructions) Okay, we don't appear to have any further questions in the queue. I can hand back over for closing comments.Chaim LebovitsThank you. I really appreciate that. It looks like Stacy did a wonderful job laying out the plan, and there's no additional questions. So let's -- we had a long call this morning, so let's give back the time to everyone listening. I want to thank you again for listening in in August -- middle of August.To have so many investors listening in, it shows the importance to our investors of our plan forward, and we really thank you for listening in today. Thank you very much. Jenny, back to you.OperatorThank you, Chaim. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

Thomson Reuters StreetEvents

Q2 2023 Brainstorm Cell Therapeutics Inc Earnings Call

https://finance.yahoo.com/news/q2-2023-brainstorm-cell-therapeutics-071140496.html

f18aa74c-587a-3cdc-8484-4ffa2bc9d277

BCLI

By David Bautz, PhDNASDAQ:BCLIREAD THE FULL BCLI RESEARCH REPORTBusiness UpdatePreparing for Advisory Committee Meeting on September 27, 2023In June 2023, BrainStorm Cell Therapeutics, Inc. (NASDAQ:BCLI) announced that the U.S. Food and Drug Administration (FDA) will convene a meeting of the Cellular, Tissue, and Gene Therapies Advisory Committee (AdCom) to review the Biologics License Application (BLA) for NurOwn® on September 27, 2023. In addition, the FDA assigned a Prescription Drug User Fee Act (PDUFA) action date targeted to occur by December 8, 2023.The company’s immediate top priority is preparing for the AdCom as well as complete preparations for commercial launch of NurOwn, if approved. BrainStorm has been working with outside consultants to ensure it prepares a powerful and persuasive presentation and is fully prepared for the questions that the FDA is likely to raise.The briefing documents for the meeting will be posted approximately 48 hours prior to the meeting and at that time we will learn what questions will be posed to the committee to vote on. We have the utmost confidence in BrainStorm’s senior management and believe it will win the support of the Advisory Committee to secure a positive vote for NurOwn. We believe the political environment is quite favorable regarding access to new therapies for patients with terminal illnesses such as ALS, particularly for therapies that have a strong safety and tolerability record. Thus, given the totality of the data that BrainStorm has accumulated for NurOwn, we are confident in a positive outcome for the AdCom and eventual approval of the drug.The FDA has established a docket for public comment on the AdCom (docket number FDA-2023-N-2608). Comments can be submitted by anyone (https://www.regulations.gov/document/FDA-2023-N-2608-0001/comment) and those received before September 20, 2023 will be provided to the Advisory Committee. As of August 17, 2023, there have been 125 comments submitted, the vast majority of which are strongly in support of NurOwn being approved.Story continuesPresentation on Biomarker Data at Gordon Research Conference In July 2023, BrainStorm announced new biomarker data from the Phase 3 trial of NurOwn was presented at the 2023 ALS and Related Motor Neuron Diseases Gordon Research Conference. A copy of the poster can be accessed here. The study examined biomarkers that were pre-specified in the Phase 3 trial: 16 pro-inflammatory/anti-inflammatory, eight neurodegeneration, and nine neuroprotection biomarkers. Cerebrospinal fluid was collected from trial participants at seven time points.Statistical modeling identified three biomarkers that predict clinical outcomes observed with NurOwn treatment, including change in Galectin-1 and baseline biomarkers neurofilament light (NfL) and LAP/TGFß1. NfL has previously been shown to be prognostic of ALS disease progression (Gaiani et al., 2017). After accounting for baseline disease covariates, NurOwn-treated participants had reduced NfL values from baseline to Week 20 compared to placebo (P<0.05). In addition, NfL baseline values were predictive of ALS disease progression, which confirms results from other ALS trials. Lastly, using a natural disease progression model showed a relationship between reductions in NfL from baseline due to NurOwn treatment and ALSFRS-R change from baseline. The correlation between NfL level at Week 20 and ALSFRS-R at Week 28, after adjusting for the predicted changes due to natural disease progression, was r=-0.365, P=0.087.The results presented by BrainStorm show the importance of examining biomarker data, particularly NfL, which is a predictor of disease progression. Reductions in NfL that result from NurOwn treatment are associated with better clinical outcomes in ALS.Financial UpdateOn August 14, 2023, BrainStorm announced financial results for the second quarter of 2023. As anticipated, the company did not report any revenues during the second quarter of 2023. Net R&D expenses for the second quarter of 2023 were $2.8 million, compared to $5.1 million during the second quarter of 2022. The decrease was primarily due to decreased costs related to the Phase 3 and Phase 2 clinical trials and decreased payroll expense, travel, materials, depreciation, and other activities. G&A expenses for the second quarter of 2023 were $2.7 million compared to $2.5 million for the second quarter of 2022. The increase was primarily due to increased payroll and consultant costs.The company exited the second quarter of 2023 with approximately $0.8 million in cash, cash equivalents, and short-term deposits. Subsequent to the end of the quarter, the company entered into a securities purchase agreement with a single institutional investor for the sale of 4.054,055 shares at an offering price of $1.85 per share. In addition, the investor received warrants to purchase up to an aggregate 4,054,055 shares. The warrants have an exercise price of $2.00 per share. Gross proceeds from the offering were approximately $7.5 million. As of August 14, 2023, BrainStorm had approximately 45.0 million common shares outstanding and, when factoring in stock options, warrants, and restricted stock, a fully diluted share count of approximately 50.7 million.ConclusionWith the AdCom only a little more than a month away, BrainStorm’s top priority will be putting together a professional, polished, and persuasive presentation to gain the support of the Advisory Committee and receive a positive outcome for the meeting. We remind investors that the Briefing Documents should become public approximately 48 hours prior to the meeting, and it is at this time that the stock is likely to react one way or the other. From prior experience it is reasonable to assume that the Briefing Documents will likely read negative, however we ask investors not to over-react as the Briefing Documents only give the FDA’s view regarding NurOwn. It is on the day of the AdCom that the public will get to hear BrainStorm’s presentation, which we have the utmost confidence will be excellent. We continue to predict a positive outcome for the AdCom and eventual approval of NurOwn on (or before) the PDUFA date of December 8, 2023. Having already accounted for an expected financing in our model, our valuation remains at $20 per share.SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives quarterly payments totaling a maximum fee of up to $40,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.

Zacks Small Cap Research

BCLI: Preparing for AdCom on September 27, 2023…

https://finance.yahoo.com/news/bcli-preparing-adcom-september-27-123400841.html

f412ea0b-885d-3f83-aa8e-b597b321af4b

BDL

FORT LAUDERDALE, Fla., Feb. 28, 2023 /PRNewswire/ -- Flanigan's Enterprises, Inc. (NYSE American: BDL), owners and operators of the "Flanigan's Seafood Bar and Grill" restaurants and "Big Daddy's" retail package liquor stores (the "Company," "we"), announced today that it received a notice from the New York Stock Exchange ("NYSE") indicating that, because the Company did not timely file its Quarterly Report on Form 10-Q for the quarter ended December 31, 2022 (the "Form 10-Q"), it is not in compliance with the NYSE American's continued listing requirements under the timely filing criteria established in the NYSE American Company Guide. Under Section 1007 of the NYSE American Company Guide, the Company could be granted up to 12 months to cure the late filer delinquency. The initial six-month period to regain compliance is automatic and the additional six months is only granted upon request by the Company and approval by the NYSE. The NYSE notice has no immediate effect on the listing or trading of the Company's securities on the NYSE American. The Company intends to regain compliance with the NYSE listing standards before that date by filing the Form 10-Q with the SEC. The Company will file the Form 10-Q as soon as reasonably practicable.About Flanigan's Enterprises, Inc.Flanigan's Enterprises, Inc. owns and operates the "Flanigan's Seafood Bar and Grill" restaurants and "Big Daddy's Liquors" retail package liquor stores. For more information, please visit www.flanigans.net.Forward-Looking StatementsCertain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of applicable securities laws. Generally, these statements can be identified by the use of words such as "guidance," "believes," "estimates," "anticipates," "expects," "on track," "feels," "forecasts," "seeks," "projects," "intends," "plans," "may," "will," "should," "could," "would" and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the Company's forward-looking statements.  The Company assumes no obligation to update any forward-looking statement. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.Story continuesCisionView original content:https://www.prnewswire.com/news-releases/flanigans-enterprises-inc-receives-nyse-notice-regarding-late-form-10-q-filing-301758770.htmlSOURCE FLANIGAN'S ENTERPRISES, INC.

PR Newswire

FLANIGAN'S ENTERPRISES, INC. RECEIVES NYSE NOTICE REGARDING LATE FORM 10-Q FILING

https://finance.yahoo.com/news/flanigans-enterprises-inc-receives-nyse-223900217.html

a90bc964-7575-3569-b19f-c4bcb4abc62b

BDL

FORT LAUDERDALE, Fla., Aug. 16, 2023 /PRNewswire/ -- FLANIGAN'S ENTERPRISES, INC., (NYSE AMERICAN: BDL) owners and operators of the "Flanigan's Seafood Bar and Grill" restaurants and "Big Daddy's" retail liquor stores, announced results for the 13 weeks and the 39 weeks ended July 1, 2023.  The table below sets forth the results on a comparative basis with the 13 weeks and the 39 weeks ended July 2, 2022.  13 Weeks Ended 13 Weeks EndedREVENUESJuly 1, 2023July 2, 2022RESTAURANT FOOD AND BAR SALES$35,813,000$32,329,000PACKAGE STORE SALES8,791,0007,626,000FRANCHISE RELATED REVENUES466,000460,000RENTAL INCOME252,000213,000OTHER OPERATING INCOME 50,00047,000TOTAL REVENUES$45,372,000$40,675,000NET INCOME ATTRIBUTABLE TO FLANIGAN'S ENTERPRISES, INC.$1,605,000$1,835,000NET INCOME PER COMMON SHAREBASIC AND DILUTED$$0.86$$0.99 39 Weeks Ended39 Weeks EndedJuly 1, 2023July 2,  2022RESTAURANT FOOD AND BAR SALES$101,962,000$91,985,000PACKAGE STORE SALES26,853,00024,285,000FRANCHISE RELATED REVENUES1,409,0001,384,000RENTAL INCOME683,000611,000OTHER OPERATING INCOME129,000143,000TOTAL REVENUES$131,036,000$118,408,000NET INCOME ATTRIBUTABLE TO FLANIGAN'S ENTERPRISES, INC.$4,126,000$5,059,000NET INCOME PER COMMON SHAREBASIC AND DILUTED$$2.22$$2.72 CisionView original content:https://www.prnewswire.com/news-releases/flanigans-reports-earnings-301902675.htmlSOURCE FLANIGAN'S ENTERPRISES, INC.

PR Newswire

FLANIGAN'S REPORTS EARNINGS

https://finance.yahoo.com/news/flanigans-reports-earnings-154400271.html

4eca6d04-7842-3874-b30c-ea8ee99b9c40

BDN

After launching its Philadelphia office in January, law firm Goodwin continues to scale up and will become the lead tenant in the Brandywine Realty Trust mixed-use tower.Continue reading

American City Business Journals

Goodwin Procter signs lease to become first tenant at new Schuylkill Yards tower

https://finance.yahoo.com/m/e234b62d-8fbe-377f-999f-d02272b767ae/goodwin-procter-signs-lease.html

e234b62d-8fbe-377f-999f-d02272b767ae

BDN

Brandywine Realty TrustPHILADELPHIA, Sept. 07, 2023 (GLOBE NEWSWIRE) -- Brandywine Realty Trust (NYSE: BDN) today reported several transactions since our second quarter earnings call.Austin Property Sale Brandywine completed the sale of Three Barton Skyway, a 173,302 square foot office building located at 1221 S. Mopac Expressway in Austin, Texas for $53.3 million, or $307 per square foot. We closed on the sale during August 2023 and we received net proceeds totaling $51.3 million. Net proceeds will be used for general corporate purposes.Construction LoanBrandywine has closed on a construction loan on our development project located at 155 King of Prussia Rd. Construction commenced during January 2023 and the scheduled completion is the fourth quarter 2024. The $50.0 million construction loan bears interest at 2.50% over the secured overnight financing rate and has an initial maturity date in August 2026. We anticipate our first draw on the construction loan during the fourth quarter 2023.Located in Radnor, Pennsylvania, 155 King of Prussia Rd. is a fully leased 144,685 square foot build-to-suit office property. The building will be the North American Headquarters for Arkema S.A., a global supplier of specialty materials.Schuylkill Yards 3025 JFK Blvd LeasingThe Company has signed a 12.5-year lease with global law firm Goodwin totaling 31,500 square feet at 3025 JFK Blvd in Schuylkill Yards. The lease represents approximately 15% of the commercial space. Goodwin’s 2,000 lawyers operate from 16 offices across North America, Europe, and Asia. The firm’s Philadelphia office focuses on the life sciences, healthcare, and private equity industries, including where they converge with other sectors such as technology.The mixed-use tower at 3025 JFK Blvd is an elegant new addition to University City's skyline, rising directly adjacent to Amtrak's 30th Street Station. Designed for a mix of office, life science, lifestyle, and residential uses, 3025 JFK Blvd delivers integrated, elevated work and life experiences in Philadelphia's most exciting new neighborhood. The 29-level development features 200,000 square feet of life science/innovative office space, 326 ultra-luxury apartment units, and a 29,000-square-foot indoor/outdoor amenity floor to create an unmatched work and lifestyle balance.Story continues“We are delighted to welcome a high-quality customer like Goodwin to our newest addition to the Schuylkill Yards neighborhood and the Brandywine family,” said Jerry Sweeney, President and CEO of Brandywine Realty Trust. “On a broader front, these capital transactions advance our 2023 business plan objective of generating additional liquidity and maintaining full availability under our $600 million line of credit.”About Brandywine Realty TrustBrandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia and Austin markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 162 properties and 22.8 million square feet as of June 30, 2023 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together. For more information, please visit www.brandywinerealty.com.Company / Investor Contact:Tom WirthEVP & CFO610-832-7434 [email protected]

GlobeNewswire

Brandywine Realty Trust Announces Capital Transactions Totaling $103.3 million and signs First Commercial Lease at 3025 JFK Blvd in Schuylkill Yards

https://finance.yahoo.com/news/brandywine-realty-trust-announces-capital-204600439.html

2837e32d-6807-3cf2-b78b-7d171690709b

BDX

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Becton Dickinson (NYSE:BDX). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. View our latest analysis for Becton Dickinson How Fast Is Becton Dickinson Growing?Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Impressively, Becton Dickinson has grown EPS by 24% per year, compound, in the last three years. If growth like this continues on into the future, then shareholders will have plenty to smile about.One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Becton Dickinson reported flat revenue and EBIT margins over the last year. While this doesn't ring alarm bells, it may not meet the expectations of growth-minded investors.The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.earnings-and-revenue-historyOf course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Becton Dickinson.Story continuesAre Becton Dickinson Insiders Aligned With All Shareholders?Since Becton Dickinson has a market capitalisation of US$77b, we wouldn't expect insiders to hold a large percentage of shares. But thanks to their investment in the company, it's pleasing to see that there are still incentives to align their actions with the shareholders. We note that their impressive stake in the company is worth US$114m. While that is a lot of skin in the game, we note this holding only totals to 0.1% of the business, which is a result of the company being so large. This still shows shareholders there is a degree of alignment between management and themselves.Should You Add Becton Dickinson To Your Watchlist?For growth investors, Becton Dickinson's raw rate of earnings growth is a beacon in the night. This EPS growth rate is something the company should be proud of, and so it's no surprise that insiders are holding on to a considerable chunk of shares. On the balance of its merits, solid EPS growth and company insiders who are aligned with the shareholders would indicate a business that is worthy of further research. Before you take the next step you should know about the 1 warning sign for Becton Dickinson that we have uncovered.The beauty of investing is that you can invest in almost any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months.Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Here's Why We Think Becton Dickinson (NYSE:BDX) Is Well Worth Watching

https://finance.yahoo.com/news/heres-why-think-becton-dickinson-130110326.html

3fe9fd8a-588c-3cc3-b83c-37e42217b475

BDX

Becton, Dickinson and Company BDX, popularly known as BD, recently announced a strategic collaboration with Navigate BioPharma Services, Inc. The tie-up is aimed at exploring opportunities to develop and commercialize flow cytometry-based companion diagnostics and tools for clinical decisions.Navigate BioPharma Services, Inc., a provider of innovative biomarker and specialty bioanalytic solutions for clinical development and companion diagnostic applications, is an independently operating subsidiary within the Novartis group of companies.The latest partnership is expected to significantly strengthen BD’s foothold in the global Biosciences (BDB) business, which is part of its broader Life Sciences arm.Rationale Behind the CollaborationThe collaboration is expected to leverage the expertise and capabilities of both companies to provide end-to-end solutions for pharmaceutical and biotechnology companies. These companies are developing novel therapies that require companion diagnostics, tests intended to match patients with advanced treatments and critical clinical trial applications that use flow cytometry. The partnership also aims to address a critical gap in the clinical trial field for an integrated solution provider from method development to commercialization.Per BD’s management, the partnership will likely combine Navigate BioPharma's experience in designing and validating biomarker assays for clinical trials and regulatory submissions with the broad BD portfolio of flow cytometry instruments, reagents, software and in vitro diagnostics (IVD) development services. This, in turn, is expected to potentially accelerate the delivery of innovative personalized therapies to patients who need them.Navigate BioPharma's management believes that flow cytometry-based companion diagnostics can aid in identifying patients who are most likely to benefit from a specific therapy, monitor their response to treatment and optimize dosing and safety from a patient sample. Hence, advances in flow cytometry technology made by BD will likely enable IVD testing to be executed with accuracy, automation and standardization across all elements of the workflow.Story continuesIndustry ProspectsPer a report by BCC Research, the global market for flow cytometry was valued at $5.2 billion in 2022 and is expected to reach $7.6 billion in 2027 at a CAGR of 8%. Factors like technological advancements, the increasing trend toward single-cell analysis and the growing adoption of flow cytometry in clinical applications are likely to drive the market.Given the market potential, the latest association is expected to significantly strengthen BD’s business worldwide.Notable Developments in Life Sciences ArmLast month, BD reported its third-quarter fiscal 2023 results, wherein it registered a solid uptick in its top-line and bottom-line results, along with improvements in the overall base revenues. Robust performances by its BDB business unit reflected double-digit growth in Cancer reagents leveraging BD’s growing installed base of FACSLyric analyzers, adoption of FACSDuet sample preparation automation and continued strong growth in research reagents enabled by its BD Horizon dyes.The same month, BD received the FDA’s 510(k) clearance for the BD Respiratory Viral Panel for the BD MAX System.In June, BD announced the worldwide commercial launch of a new automated instrument, BD FACSDuet Premium Sample Preparation System.Price PerformanceShares of BD have gained 2.5% in the past year compared with the industry’s 7.4% rise and the S&P 500's 11.3% growth.Zacks Investment ResearchImage Source: Zacks Investment ResearchZacks Rank & Key PicksCurrently, BD carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, HealthEquity, Inc. HQY and Integer Holdings Corporation ITGR.DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 12.7%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average surprise of 21.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.DaVita has gained 4.5% against the industry’s 9.9% decline over the past year.HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 22.2%. HQY’s earnings surpassed estimates in all the trailing four quarters, with an average of 13%.HealthEquity has gained 8.2% against the industry’s 7.2% decline over the past year.Integer Holdings, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 12.1%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.4%.Integer Holdings has gained 26.8% compared with the industry’s 3.4% rise over the past year.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportBecton, Dickinson and Company (BDX) : Free Stock Analysis ReportDaVita Inc. (DVA) : Free Stock Analysis ReportHealthEquity, Inc. (HQY) : Free Stock Analysis ReportInteger Holdings Corporation (ITGR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

BD's (BDX) Tie-Up to Explore Flow Cytometry for Clinical Outcomes

https://finance.yahoo.com/news/bds-bdx-tie-explore-flow-171900910.html

e8658099-a5e0-38a1-87df-ba6f10027fc5

BEAT

ParticipantsBranislav Vajdic; Founder & CEO; HeartBeam, Inc.Rob Eno; President; HeartBeam, Inc.Rick Brounstein; CFO; HeartBeam, Inc.Ben Haynor; Analyst; Alliance Global PartnersPresentationOperatorGreetings and welcome to the HeartBeam second-quarter 2023 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded. At this time, I will turn the call over to HeartBeam's Chief Executive Officer, Branislav Vajdic. Please go ahead, sir.Branislav VajdicThank you, operator, and good afternoon, everyone. I am pleased to welcome you to today's second-quarter 2023 financial results conference call. On today's call, we will be releasing some very important updates about our business and our products.Recently, we completed $26.5 million in funding, which will enable us to execute on upcoming product development, clinical, and regulatory milestones and extends our cash runway into late 2024. With this funding, we took the opportunity to adjust our strategic focus to enable timely delivery of our ambulatory vector electrocardiogram or VECG products, our key future value drivers.Our first step is to obtain and 510(k) FDA clearance for the HeartBeam AIMIGo VECG device. This application was submitted to the FDA in May, and we will be following this with a second FDA application on the system's ability to synthesize a 12-lead ECG. Given this strategic focus on our AIMIGo system, we withdrew the 510(k) application for our AIMI product, which is a software applied to 12-lead ECG in the emergency department. This will allow us to devote all of our resources and energy to products that are being powered for our 12-lead ECG into the hands of patients and outside of a medical facility.We just announced the publication of our first peer-reviewed paper, a foundational study, demonstrating the ability of our VECG platform to detect the presence of coronary artery blockages. The study comparing our 3D VECG approach to conventional standard 12-lead ECG appeared in JACC: Advances, a journal of the American College of Cardiology.We also strengthened our Board with the appointment of three respected industry executives, Dr. Michael Jaff, Ken Nelson, and Mark Strome, bringing the number of HeartBeam Board members to eight. We also are excited to report that we recently welcomed to our team Debbie Castillo, PhD, as Vice President of Regulatory Affairs. Debbie is an experienced biomedical engineer and brings more than 12 years' experience in regulatory affairs and quality assurance for medical devices and diagnostics, both with the FDA and the private sector.Finally, we continued to solidify our intellectual property portfolio in the second quarter with a new patent issued by US Patent Office on automated cardiac detection, with HeartBeam AIMIGo. We believe this patent underscores our leadership effort in the ambulatory VECG space.As previously reported, on May 3 of this year, we closed a secondary offering of $25 million, followed by a registered direct offering of $1.5 million for a total of $26.5 million. We worked with Public Ventures as our placement agent. They are a wholly owned subsidiary of MDB Capital Holdings. MDB and Public Ventures have proven to be tremendous strategic partners for HeartBeam.Public Ventures is a member-driven investor community with the mission of backing visionary public companies that have potential to become market leaders in their technology category. We continue to work with them as we execute on our strategic plan. And in fact, our involvement with PatentVest, also an MDB entity, is ongoing example how we plan to continue to use their services.We believe that we are the leader in the mobile VECG space. And as we build on our global intellectual property portfolio, our work with PatentVest is a tangible example of our commitment. PatentVest is a unified technology, development, and patent law firm focused on creating IP leadership for development-stage technology companies like HeartBeam. And we expect they will support our goal of creating clear leadership in the area of ambulatory VECG cardiac detection.I would like now to turn the call over to our President, Dr. Rob Eno, to further discuss our strategic focus and provide product updates. Rob?Story continuesRob EnoThank you, Branislav, and thanks to everyone joining us today. We mentioned this last quarter, but I wanted to reiterate the key points. We've refined our strategic focus and are concentrating on our AIMIGo platform, bringing the performance of a 12-lead ECG into patients' hands. We see this platform, which will enable physicians to remotely monitor patients and immediately interpret any concerning cardiac events, as an important value creation path. In addition, we'll be undertaking clinical studies in 2023 and beyond to demonstrate the performance of the HeartBeam AIMIGo platform, which we believe is the most advanced ambulatory cardiac detection platform available.As Branislav mentioned, the first peer-reviewed study related to our technology was recently published in JACC: Advances. This publication highlighted the capabilities of the technology to detect the presence of a coronary occlusion, the cause of heart attacks, with the same accuracy as a standard 12-lead ECG. It also demonstrated the advantages of putting a baseline recording for comparison in the analysis. This is something that is integral to the HeartBeam technology. But today, when 12-lead ECGs are analyzed, it's not common that a baseline ECG is used for comparison.The significance to this study is in demonstrating the potential to provide patients with an easy-to-use system to record a diagnostic quality ECG signal outside of a medical institution, which could improve heart attack detection, speed up access to care, and save lives. We'll be conducting additional studies focused on our 12-lead synthesis and on the performance of the system as a whole. And we believe these studies will be key to driving clinical and patient adoption.Our commercial launch activities will be for the second version of HeartBeam AIMIGo after we obtain FDA clearance for the algorithms that synthesize the 12-lead ECG. I'll describe this in more detail in just a minute. In this year, we're undertaking aggressive pre-commercial efforts to finding the initial market segments for HeartBeam AIMIGo and identifying potential business partners for HeartBeam AIMIGo and other technologies in our portfolio.And finally, as Branislav mentioned, we'll continue to aggress -- the aggressive development of our intellectual property through our partnership with PatentVest.Turning to our product timelines and updates, we have two planned FDA 510(k) submissions. The first, which we call Version 1, is for the hardware. In other words, obtaining clearance as a 3-lead ECG collection device. Next Version 2, built upon version one and includes the algorithms that take the 3-lead VECG signals and synthesize a 12-lead ECG for physician review.In May, we submitted our 510(k) application for Version 1. We've also started the process for Version 2. In June, we submitted a request for a pre-submission meeting to FDA. The pre-sub process is an excellent means to get feedback on key elements of the submission. That pre-sub meeting has been scheduled. It has been scheduled, and we look forward to working closely with FDA on both of these applications.The result of these two submissions, once cleared by FDA, will be a device carried by patients that can synthesize a 12-lead ECG for physician review. We'll focus then on a limited market release, which we estimate in the second half of 2024.With the appointment of Debbie Castillo as Vice President of Regulatory Affairs, we've strengthened our team. Debbie is an experienced biomedical engineer with extensive knowledge of the FDA. In addition to her private sector experience, Debbie held various roles at FDA, including Acting Branch Chief, Senior Lead Reviewer, and Lead Scientific Reviewer.And finally, in an effort to focus on the HeartBeam AIMIGo product, we withdrew our 510(k) application for HeartBeam AIMI. HeartBeam AIMI is focused on emergency room use, which is significantly smaller opportunity than the HeartBeam AIMIGo ambulatory ECG market. This decision will allow the company to focus on the product development, clinical, regulatory, and market preparation efforts for HeartBeam AIMIGo.I'll now turn the call over to Rick Brounstein, Chief Financial Officer, to discuss operational updates and financials.Rick BrounsteinThank you, Rob. Turning to our financials, I'll now give a brief review of our financial results. So a full breakdown is available in our regulatory filings -- we just filed the 10-Q -- and in the press release that crossed the wire after the close of business today.General, administrative expenses for the second quarter of 2023 were $1.8 million compared to $1.8 million for the second quarter last year. Our overall G&A expense is flat. Spending is actually down in 2023 compared to 2022. In 2022, we were invested in the commercial team and due to our change in near-term focus in early 2023, we are not currently emphasizing commercial activities. Reduced sales and marketing expense was offset by increased non-cash stock-based compensation of about $0.4 million, resulting primarily from the issuance of employee stock options following the May 2023 financings.Research and development expenses for the second quarter of 2023 were $1.5 million compared to $1.7 million for the second quarter of 2022. Our focus on R&D differed in 2022 compared to this quarter. While both consisted largely of product development and regulatory costs, in 2022, our focus was on the development of our platform for our products, working with an outside development organization, LIVMOR and preparing for our first FDA submission.This quarter, our US development team are employees hired from LIVMOR and the focus is fully on HeartBeam AIMIGo. We submitted Version 1 for FDA clearance in May. And at the same time, we continue to use our professional services agreement with Triple Ring.Triple Ring represents over 20% of our investment in R&D this quarter ended June 30, 2023, which we are investing in a device cost reduction program. As of June 30, 2023, we have a remaining commitment with them for this project of $0.8 million. In both periods, we also invested in research costs in support of future product pipeline coming from our patented VECG platform technology, which is the basis for our patent portfolio of 10 issued patents.With the current interest rates in short-term markets around 5%, we earned $158,000 in interest income in the second quarter of 2023. And this only for two months as we close the financing in early May. This compared to $10,000 in the second quarter of 2022.The net loss for the second quarter of 2023 was $3.2 million compared to a net loss of $3.5 million for the second quarter of 2022. We ended the second quarter of 2023 with $21.3 million in cash, cash equivalents and short-term investments compared to $3.6 million as of December 31.As mentioned in May, we closed common stock financings with net proceeds of approximately $24.3 million. The use of proceeds is planned to last into late 2024, timed to when we expect to have received clearance for our commercial product. We are confident we remain on track.With regard to our short-term investments, we take a risk-averse approach only investing in short term government-backed money market funds that we are holding to maturity. The approximate $4 million in short-term investments at June 30, 2023, represent such securities with a four- to six-month term. Also of importance in the recent financing is the fact that the 17.7 million shares offered did not include any warrants and our balance sheet, as a result, has a very simple and straightforward capital structure, approximately 26 million shares now outstanding.Finally, I'd like to share the results of our recent annual meeting of shareholders. At the event, all proposals passed, which included adding 4 million authorized shares to the 2022 equity incentive plan, reflecting the overall dilute effect of the S-1 financing.I will now turn the call back over to Branislav for his closing thoughts.Branislav VajdicThank you, Rick. We remain incredibly optimistic for the future of HeartBeam. I would like to summarize the recent efforts in the following categories: financial, strategic focus, and progress and validation. Following our $26.5 million capital raise, we have a strong cash position, providing a run rate to late 2024. We have adjusted our strategic focus to enable timely delivery of HeartBeam's breakthrough ambulatory VECG products, the company's key future value driver. And we are highly focused on executing on our product development, clinical and regulatory milestones.The key element of this focus is the HeartBeam AIMIGo, a credit-card-size VECG device. In May, we submitted a 510(k) FDA application on Version 1 of our system. And in June, we have submitted a pre-sub request for Version 2 of the system. We are excited about the addition of Debbie Castillo, our new Vice President of Regulatory, as we work with the FDA on these submissions.Finally, we have several recent milestones that adds to the validation of the technology and the company. Our foundational clinical study was recently published in JACC: Advances. We added three strong members to the Board of Directors in addition to Debbie Castillo joining our management team. We had an additional patent granted on our automated cardio detection with HeartBeam AIMIGo system.I look forward to providing our shareholders with further updates in the near term. I thank you all for attending today. And now the HeartBeam team would like to answer your questions. Operator?Question and Answer SessionOperatorThank you. We will now be conducting a question-and-answer session. (Operator Instructions)Ben Haynor, Alliance Global Partners.Ben HaynorHey, gentlemen. Thanks for taking the questions and congrats on the progress. First off, for me, just -- I know it's early days, but wondering if you've gotten any reaction to the JACC publication. And then maybe you could talk about -- obviously, the performance was solid. Any surprises, positive or negative, with regard to the device to open and/or kind of the human reading that came out in the study?Branislav VajdicYes, Ben, thank you for your question. Yes, we were actually very fortunate that our publication caused an; editorial as well. This is a sign of a well-received publication, a publication that's very impactful. And indeed, all our associated medical team members as well as some of our potential business partners have noted this as a very significant event for our future acceptance.The study shows that we have a technology that puts the power of a 12-lead ECG, the standard of care, in patients' pockets, is always with the patient, and that is a huge value for those high-risk patients. So all in all, this is our first publication, extremely well received, and it's only the first one. We have a few of the follow-on publications in the works, and we will continue on that treadmill of publications showing the efficacy of our technology.Ben HaynorAnd can you discuss -- well, first off, I guess, maybe any surprises there? And then any -- on the publications that you have in the works, can you share anything about how they might be similar or different to the current study -- the just published study?Branislav VajdicYes, the future studies will take a bit different angle at our technology. And I cannot really discuss it in many details, but I can tell you that every one of these studies will be like a brick in the wall, so to speak. And at this point, we have a number of patents and a number of applications that we are working on. And again, that cadence coming out of HeartBeam will continue both on the publication front and the IP front.Rob EnoBranislav, maybe I'll just add briefly, if you don't mind. Completely agree with all that. I don't think -- and the question of surprises, I don't think there's any surprises. But I think one thing which comes out in the paper, which maybe is less obvious, is the importance of a baseline. So in both the VECG and the 12-lead, the results were a lot better when the baseline was used to compare with the reading.What's interesting about that is that's an integral part of our process. We have a baseline when the patient enrolls and we compare that by definition. And when you think about how 12-leads are analyzed today, they're often analyzed in isolation without a baseline. So the top line of the paper is that the VECG performed equal to a 12-lead in both comparison or one at a time, we're always going to have that baseline and sometimes the 12-leads are analyzed in a vacuum. So I think that's a kind of subtle but important point in the study.Branislav VajdicGood point. Thank you, Rob.Ben HaynorAnd then I guess maybe a couple maybe for Rick. On the G&A, it sounded like there's maybe $400,000 that was kind of non-recurring in the quarter. Is that a fair assessment? Or -- what should we kind of think about going forward on the G&A line?Rick BrounsteinOkay. I would say re-occurring but non-cash, right? And indeed, as we've now up to 26, 27 million shares, you'll see, I think, a growing non-cash stock expense. But if you have -- if you go back to 2022, yes, there was $400,000, I would say, of non-recurring SG&A expense that we won't see again for probably until we start getting commercialization -- late 2024 and or so.Ben HaynorOkay. So there wasn't any -- I may have misheard it. I thought you said $400,000 related to stock-based comp related to the financing.Rick BrounsteinNo. As a result of the financing, we granted more stock options to people who now had a much lower share in the company.Ben HaynorOkay. So there wasn't any kind of one-time-ish G&.A expenses associated with the deal?Rick BrounsteinNo, not in the quarter, no. Anything that was associated with the financing is all just -- ran through stockholders' equity. It didn't go to the P&L.Ben HaynorOkay, got it. And then on the cost reduction program with Triple Ring, how's that progressing? Any more color there that you can provide? And that's it for me. Thanks for taking the questions, gentlemen.Rick BrounsteinBranislav, do you want to handle that one or -- ?Branislav VajdicGo ahead, Rick.Rick BrounsteinYeah. Okay. So then it's probably going to be most of the year -- we're doing things to take a basically a prototype-level device that costs over $1,000 and reducing something that -- when we start to get in volumes -- will be in a couple of hundred dollars, right? So there's various pieces that are going on. It's ongoing. We're looking at the [PCV board]. We're looking at some moles that we'll buy and some other things. But it's a dedicated approach now that we look forward to commercialization to be able to produce a -- if you would, the credit card at a reasonable price.Ben HaynorOkay, great. Thanks for the color and thanks for taking the questions.Branislav VajdicThank you, Ben.Operator(Operator Instructions)At this time, we will now take questions from our webcast.Rick BrounsteinThe first question asks, you mentioned that you have withdrawn AIMI. Can you tell me more about that decision?Branislav VajdicLet me handle that question. Our strategic focus is on ambulatory devices. AIMI application, while valuable, had a very different market and distribution strategy. As we have seen the opportunity with our AIMIGo ambulatory VECG device and as we make progress and get closer to its market availability, it is important for us to totally focus and take advantage of that huge opportunity.This market is much larger market, probably 20x or more, than that of the emergency room market. The great need and the key opportunity is to bring the 12-lead VECG to the patients outside of the healthcare institution. Actually, the algorithm that we developed for AIMI, which basically takes the 12-lead ECG and convert it to the VECG and runs analysis on the VECG, is a plan to be included in future generations of AIMIGo as well. So in that sense, we expect to see this technology appear in AIMIGo down the line.Rick BrounsteinOur second and final webcast question is you are providing only high-level details on the timings of the future FDA submissions and clearances rather than a detailed timeline. You say you're expecting a limited market release in the second half of 2024. Can you provide more context?Branislav VajdicYeah, Rob, would you please go ahead?Rob EnoYes, the one thing that's clear about regulatory filings and the whole regulatory process is the timing's uncertain. And to a large extent, it's outside of our control when dealing with regulatory agencies. So we're going to continue to update on our progress toward our milestones, things that we've achieved as we did today, talking both about the Version 1 and Version 2 products.But rather than give estimates on the timing of some of these upcoming intermediate steps, we decided to focus on the key milestone, which is this limited market release of AIMIGo, which happens after the clearance of Version 2 in the second half of 2024. And we'll continue to do that going forward is focus on that ultimate date of market release, but also keep providing updates on the progress and the milestones that we've achieved.OperatorI would now like to turn the floor back over to Dr. Vajdic for his closing comments.Branislav VajdicThank you, operator. I would like to thank each of you for joining our earnings conference call today and look forward to continuing to update you on our ongoing progress and growth. If you were unable to answer any of your questions, please reach out to IR firm, MZ Group, who will be more than happy to assist. Thank you again.OperatorThis concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

Thomson Reuters StreetEvents

Q2 2023 Heartbeam Inc Earnings Call

https://finance.yahoo.com/news/q2-2023-heartbeam-inc-earnings-174357716.html

6c575c22-0fbc-378c-ad11-79bdc3984959

BEAT

HeartBeam, Inc. (NASDAQ:BEAT) Q2 2023 Earnings Call Transcript August 13, 2023Operator: Greetings and welcome to the HeartBeam Second Quarter 2023 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. At this time, I'll turn the call over HeartBeam, Chief Executive Officer, Branislav Vajdic. Please go ahead, sir.Branislav Vajdic: Thank you, operator and good afternoon, everyone. I'm pleased to welcome you to today's second quarter 2023 financial results conference call. On today's call, we will be relating some very important updates about our business and our products. Recently, we completed $26.5 million in funding which will enable us to execute on upcoming product development, clinical and regulatory milestones and extends our cash runway into late 2024. With this funding, we took the opportunity to adjust our strategic focus to enable timely delivery of our ambulatory vector electrocardiogram, or VECG, products, our key future value drivers. Our first step is to obtain a 510-K FDA clearance for the HeartBeam AIMIGo VECG device.This application was submitted to the FDA in May and we will be following this with a second FDA application on the system's ability to synthesize a 12-Lead ECG. Given this strategic focus on our AIMIGo system, we withdrew the 510-K application for our AIMI product which is a software applied to 12-Lead ECG in the emergency department. This will allow us to devote all of our resources and energy to products that are being powered for our 12-Lead ECG into the hands of patients and outside of a medical facility. We just announced the publication of our first peer-reviewed paper, a foundational study demonstrating the ability of our VECG platform to detect the presence of coronary artery blockages. The study comparing our 3D VECG approach to conventional standard 12-Lead ECG appeared in JACC Advance's, Journal of the American College of Cardiology.Story continuesWe also strengthened our board with the appointment of 3 respected industry executives, Dr. Michael Jaff, Ken Nelson and Mark Strome, bringing the number of HeartBeam board members to 8. We also are excited to report that, we recently welcomed to our team Debbie Castillo, Ph.D. and Vice President of Regulatory Affairs. Debbie is an experienced biomedical engineer and brings more than 12 years' experience in regulatory affairs and quality assurance for medical devices and diagnostics, both with the FDA and the private sector. Finally, we continued to solidify our intellectual property portfolio in the second quarter, with a new patent issued by the U.S. Patent Office on automated cardiac detection with the HeartBeam AIMIGo system. We believe this patent underscores our leadership effort in the ambulatory VECG space.As previously reported, on May 3rd of this year, we closed a secondary offering of $25 million, followed by a registered direct offering of $1.5 million, for a total of $26.5 million. We worked with Public Ventures as our placement agent. They are wholly-owned subsidiary of MDB Capital Holdings. MDB and Public Ventures have proven to be tremendous strategic partners for HeartBeam. Public Ventures is a member-driven investor community with a mission of backing visionary public companies that have potential to become market leaders in their technology category. We continue to work with them as we execute on our strategic plan. And in fact, our moment with PatentVest, also an MDB entity, is an ongoing example of how we plan to continue to use their services.We believe that we are the leader in the mobile VECG space and as we build on our global intellectual property portfolio, our work with PatentVest is a tangible example of our commitment. PatentVest is a unified technology development and patent law firm focused on creating IP leadership for developing state technology companies like HeartBeam and we expect they will support our goal of creating clear leadership in the area of ambulatory VECG cardiac detection. I would like now to turn the call over to our President, Rob Eno, to further discuss our strategic focus and provide product updates. Rob?Robert Eno: Thank you, Branislav and thanks to everyone joining us today. We mentioned this last quarter but I wanted to reiterate the key points. We've refined our strategic focus and are concentrating on our AIMIGo platform, bringing the performance of a 12-Lead ECG into patients' hands. We see this platform which will enable physicians to remotely monitor patients and immediately interpret any concerning cardiac events as an important value creation path. In addition, we'll be undertaking clinical studies in 2023 and beyond to demonstrate the performance of the HeartBeam AIMIGo platform which we believe is the most advanced ambulatory cardiac detection platform available. As Branislav mentioned, the first peer-reviewed study related to our technology was recently published in JACC Advances.This publication highlighted the capabilities of the technology to detect the presence of a coronary occlusion, the cause of heart attacks, with the same accuracy as a standard 12-Lead ECG. It also demonstrated the advantages of putting a baseline recording for comparison in the analysis. This is something that is integral to the HeartBeam technology but today, when 12-Lead ECGs are analyzed, it's not common that a baseline ECG is used for comparison. The significance of this study is in demonstrating the potential to provide patients with an easy-to-use system to record a diagnostic-quality ECG signal outside of a medical institution which could improve heart attack detection, speed-up access to care and save lives. We'll be conducting additional studies focused on our 12-Lead synthesis and on the performance of the system as a whole and we believe these studies will be key to driving clinical and patient adoption.Our commercial launch activities will be for the second version of HeartBeam AIMIGo after we obtain FDA clearance for the algorithms that synthesize a 12-Lead ECG. I'll describe this in more detail in just a minute. And this year, we're undertaking aggressive pre-commercial efforts, defining the initial market segments for HeartBeam AIMIGo and identifying potential business partners for HeartBeam AIMIGo and other technologies in our portfolio. And finally, as Branislav mentioned, we'll continue to aggressive -- development of our intellectual property through our partnership with PatentVest. Turning to our product timelines and updates, we have two planned FDA 510-K submissions. The first which we call version 1, is for the hardware. In other words, obtaining clearance as a 3-Lead ECG collection device.health, medicineChaikom/Shutterstock.comNext, version 2 builds upon version 1 and includes the algorithms that take the 3-Lead VECG signals and synthesize a 12-Lead ECG for physician review. In May, we submitted our 510-K application for version 1. We've also started the process for version 2. In June, we submitted a request for a pre-submission meeting to FDA. The pre-sub process is an excellent means to get feedback on key elements of the submission. That pre-sub meeting has been scheduled. It has been scheduled and we look forward to working closely with FDA on both of these applications. The result of these 2 submissions, once cleared by FDA, will be a device carried by patients that can synthesize a 12-Lead ECG for physician review. We'll focus then on a limited market release which we estimate in the second half of 2024.With the appointment of Debbie Castillo as Vice President of Regulatory Affairs, we've strengthened our team. Debbie's an experienced biomedical engineer with extensive knowledge of the FDA. In addition to her private sector experience, Debbie held various roles at FDA, including acting branch chief, senior lead reviewer and lead scientific reviewer. And finally, in an effort to focus on the HeartBeam AIMIGo product, we withdrew our 510-K application for HeartBeam AIMI. HeartBeam AIMI is focused on emergency room use which is significantly smaller opportunity than the HeartBeam AIMIGo ambulatory ECG market. This decision will allow the company to focus on the product development, clinical, regulatory and market preparation efforts for HeartBeam AIMIGo. I'll now turn the call over to Rick Bronstein, Chief Financial Officer, to discuss operational updates and financials.Richard Brounstein: Thank you, Rob. Turning to our financials, I'll now give a brief review of our financial results. So a full breakdown is available in our regulatory filings, we just filed the 10-Q and in the press release that crossed the wire after the close of business today. General and administrative expenses for the second quarter of 2023 were $1.8 million, compared to $1.8 million for the second quarter last year. Although, overall G&A expense is flat, spending is actually down in 2023 compared to 2022. In 2022, we were invested in the commercial team and due to our change in near-term focus in early '23, we are not currently emphasizing commercial activities. The reduced sales and marketing expense was offset by increased non-cash stock-based compensation of about $0.4 million, resulting primarily from the issuance of employee stock options following the May 2023 financings.Research and development expenses for the second quarter of 2023 were $1.5 million, compared to $1.7 million for the second quarter of 2022. Our focus on R&D differed in 2022 compared to this quarter. While both consisted largely of product development and regulatory costs, in 2022 our focus was on the development of our platform for our products, working with an outside development organization, LIVMOR and preparing for our first FDA submission. This quarter, our U.S. development team, our employees, hired from LIVMOR and the focus is wholly on HeartBeam AIMIGo. We submitted Version 1f or FDA clearance in May and at the same time, we continue to use our professional services agreement with Triple Ring. Triple Ring represents over 20% of our investment in R&D this quarter, ended June 30, 2023.So we are investing in a device cost reduction program. As of June 30, 2023, we have a remaining commitment with them for this project of $0.8 million. In both periods, we also invested in research costs in support of future product pipeline coming from our patented VECG platform technology which is the basis for our patent portfolio of 10 issued patents. With the current interest rates in short-term markets around 5%, we earned $158,000 interest income in the second quarter of 2023 and this only for 2 months as we closed the financing in early May. This compared to $10,000 in the second quarter of 2022. The net loss for the second quarter of 2023 was $3.2 million compared to a net loss of $3.5 million for the second quarter of 2022. We ended the second quarter of 2023 with $21.3 million in cash, cash equivalents and short-term investments, compared to $3.6 million as of December 31.As mentioned, in May, we closed the common stock financings with net proceeds of approximately $24.3 million. The use of proceeds is planned to last into late 2024, time to when we expect to have received clearance for our commercial product. We are confident we remain on track. With regard to our short-term investments, we take a risk-adverse approach, only investing in short-term government-backed money market funds that we are holding to maturity. The approximate $4 million in short-term investments in June 30, 2023 represents such securities with a 4 to 6-month term. Also of importance in the recent financing is the fact that the 17.7 million shares offered did not include any warrants and our balance sheet, as a result, has a very simple and straightforward capital structure.Approximately 26 million shares is now outstanding. Finally, I'd like to share the results of our recent annual meeting of shareholders. At the event, all proposals passed which included adding 4 million authorized shares to the 2022 equity incentive plan, reflecting the overall dilute effect of the S-1 financing. I will now turn it to call back over to Branislav for his closing thoughts.Branislav Vajdic: Thank you, Rick. We remain incredibly optimistic for the future of HeartBeam. I would like to summarize the recent efforts in the following categories; financial, strategic focus and progress and validation. Following our $26.5 million capital raise, we have a strong cash position, providing runway to late 2024. We have adjusted our strategic focus to enable timely delivery of HeartBeam's breakthrough ambulatory VECG products, the company's key future value driver and we are highly focused on executing on our product development, clinical and regulatory milestones. The key element of this focus is the HeartBeam AIMIGo credit card-sized VECG device. In May, we submitted a 510(k) FDA application on Version 1 of our system and in June, we have submitted a pre-sub request for Version 2 of the system.We are excited about the addition of Debbie Castillo, our new Vice President of Regulatory, as we work with the FDA on these submissions. Finally, we have several recent milestones that add to the validation of the technology and the company. Our foundational clinical study was recently published in JACC: Advances. We added three strong members to the Board of Directors, in addition to Debbie Castillo joining our management team and we had an additional patent granted on our automated cardiac detection with HeartBeam AIMIGo system. I look forward to providing our shareholders with further updates in the near term. I thank you all for attending today and now the HeartBeam team would like to answer your questions. Operator?See also 20 Countries that Have the Most Billionaires Per Capita and Analysts Are Increasing Price Targets of These 10 Stocks.To continue reading the Q&A session, please click here.

Insider Monkey

HeartBeam, Inc. (NASDAQ:BEAT) Q2 2023 Earnings Call Transcript

https://finance.yahoo.com/news/heartbeam-inc-nasdaq-beat-q2-101726039.html

a634ee93-801e-3862-8d89-e854646973ff

BELFA

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Bel Fuse (BELFB) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.Bel Fuse is a member of our Computer and Technology group, which includes 633 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Bel Fuse is currently sporting a Zacks Rank of #1 (Strong Buy).Over the past three months, the Zacks Consensus Estimate for BELFB's full-year earnings has moved 39% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.Based on the latest available data, BELFB has gained about 58.9% so far this year. At the same time, Computer and Technology stocks have gained an average of 41.3%. As we can see, Bel Fuse is performing better than its sector in the calendar year.One other Computer and Technology stock that has outperformed the sector so far this year is Celestica (CLS). The stock is up 106.8% year-to-date.Over the past three months, Celestica's consensus EPS estimate for the current year has increased 9.6%. The stock currently has a Zacks Rank #2 (Buy).To break things down more, Bel Fuse belongs to the Electronics - Miscellaneous Products industry, a group that includes 33 individual companies and currently sits at #147 in the Zacks Industry Rank. This group has gained an average of 21.5% so far this year, so BELFB is performing better in this area.Story continuesCelestica, however, belongs to the Electronics - Manufacturing Services industry. Currently, this 5-stock industry is ranked #23. The industry has moved +42.9% so far this year.Investors with an interest in Computer and Technology stocks should continue to track Bel Fuse and Celestica. These stocks will be looking to continue their solid performance.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportBel Fuse Inc. (BELFB) : Free Stock Analysis ReportCelestica, Inc. (CLS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Is Bel Fuse (BELFB) Stock Outpacing Its Computer and Technology Peers This Year?

https://finance.yahoo.com/news/bel-fuse-belfb-stock-outpacing-134009183.html

2b580380-cef6-3dc3-8693-eebfdff87ab8

BELFA

Bel Fuse (BELFB) closed at $51.06 in the latest trading session, marking a +0.67% move from the prior day. This change outpaced the S&P 500's 0.7% loss on the day. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq lost 1.06%.Prior to today's trading, shares of the maker of electronic products for circuits had gained 2.28% over the past month. This has lagged the Computer and Technology sector's gain of 3.06% and outpaced the S&P 500's gain of 0.58% in that time.Investors will be hoping for strength from Bel Fuse as it approaches its next earnings release. On that day, Bel Fuse is projected to report earnings of $1.19 per share, which would represent a year-over-year decline of 19.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $158 million, down 11.11% from the year-ago period.BELFB's full-year Zacks Consensus Estimates are calling for earnings of $5.56 per share and revenue of $650.12 million. These results would represent year-over-year changes of +20.61% and -0.63%, respectively.Investors should also note any recent changes to analyst estimates for Bel Fuse. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Bel Fuse currently has a Zacks Rank of #1 (Strong Buy).Story continuesValuation is also important, so investors should note that Bel Fuse has a Forward P/E ratio of 9.12 right now. Its industry sports an average Forward P/E of 20.36, so we one might conclude that Bel Fuse is trading at a discount comparatively.The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% of all 250+ industries.The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportBel Fuse Inc. (BELFB) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Bel Fuse (BELFB) Gains As Market Dips: What You Should Know

https://finance.yahoo.com/news/bel-fuse-belfb-gains-market-221518298.html

659959f5-b489-3f80-963f-2480502ea7df

BELFB

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Bel Fuse (BELFB) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.Bel Fuse is a member of our Computer and Technology group, which includes 633 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Bel Fuse is currently sporting a Zacks Rank of #1 (Strong Buy).Over the past three months, the Zacks Consensus Estimate for BELFB's full-year earnings has moved 39% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.Based on the latest available data, BELFB has gained about 58.9% so far this year. At the same time, Computer and Technology stocks have gained an average of 41.3%. As we can see, Bel Fuse is performing better than its sector in the calendar year.One other Computer and Technology stock that has outperformed the sector so far this year is Celestica (CLS). The stock is up 106.8% year-to-date.Over the past three months, Celestica's consensus EPS estimate for the current year has increased 9.6%. The stock currently has a Zacks Rank #2 (Buy).To break things down more, Bel Fuse belongs to the Electronics - Miscellaneous Products industry, a group that includes 33 individual companies and currently sits at #147 in the Zacks Industry Rank. This group has gained an average of 21.5% so far this year, so BELFB is performing better in this area.Story continuesCelestica, however, belongs to the Electronics - Manufacturing Services industry. Currently, this 5-stock industry is ranked #23. The industry has moved +42.9% so far this year.Investors with an interest in Computer and Technology stocks should continue to track Bel Fuse and Celestica. These stocks will be looking to continue their solid performance.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportBel Fuse Inc. (BELFB) : Free Stock Analysis ReportCelestica, Inc. (CLS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Is Bel Fuse (BELFB) Stock Outpacing Its Computer and Technology Peers This Year?

https://finance.yahoo.com/news/bel-fuse-belfb-stock-outpacing-134009183.html

2b580380-cef6-3dc3-8693-eebfdff87ab8

BELFB

Bel Fuse (BELFB) closed at $51.06 in the latest trading session, marking a +0.67% move from the prior day. This change outpaced the S&P 500's 0.7% loss on the day. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq lost 1.06%.Prior to today's trading, shares of the maker of electronic products for circuits had gained 2.28% over the past month. This has lagged the Computer and Technology sector's gain of 3.06% and outpaced the S&P 500's gain of 0.58% in that time.Investors will be hoping for strength from Bel Fuse as it approaches its next earnings release. On that day, Bel Fuse is projected to report earnings of $1.19 per share, which would represent a year-over-year decline of 19.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $158 million, down 11.11% from the year-ago period.BELFB's full-year Zacks Consensus Estimates are calling for earnings of $5.56 per share and revenue of $650.12 million. These results would represent year-over-year changes of +20.61% and -0.63%, respectively.Investors should also note any recent changes to analyst estimates for Bel Fuse. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Bel Fuse currently has a Zacks Rank of #1 (Strong Buy).Story continuesValuation is also important, so investors should note that Bel Fuse has a Forward P/E ratio of 9.12 right now. Its industry sports an average Forward P/E of 20.36, so we one might conclude that Bel Fuse is trading at a discount comparatively.The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% of all 250+ industries.The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportBel Fuse Inc. (BELFB) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Bel Fuse (BELFB) Gains As Market Dips: What You Should Know

https://finance.yahoo.com/news/bel-fuse-belfb-gains-market-221518298.html

659959f5-b489-3f80-963f-2480502ea7df

BEN

Franklin Templeton is a San Mateo, CA-based company. Initially known as Franklin Distributors Inc., this investment management giant commenced business in 1947. Franklin Templeton had assets under management of about $1.4 trillion as of Apr 30, 2023.The company has specialized expertise across a wide range of asset classes. Amongst its offerings are products under the Franklin, Templeton, Mutual Series and Fiduciary brands. The firm offers a wide variety of funds but is historically best known for bond funds under the Franklin brand, international funds under the Templeton brand and value funds under the Mutual Series brand.Franklin Templeton has a reputation for offering customized solutions for individual needs. Regardless of whether an investor seeks a steady income or aims to maximize growth, the firm has an offering to cater to it. Their available funds span across a wide range of asset types, such as equity, balanced portfolio, fixed income, hybrid and thematic investments. This diversified selection allows various options to develop a well-rounded and comprehensive investment plan.In recent weeks, with the job market showing signs of a definite slowdown and no clear signal from the Fed about the discontinuation of interest rate hikes, the possibility of a probable economic slowdown is back in the talks. At the very least, markets will remain volatile for the foreseeable future with no end in sight.This is where Franklin Templeton’s effective risk management practices to alleviate potential risks linked with market fluctuations come to the fore. Its broad range of funds, investment approach and impressive past results have reinforced its name as a trustworthy option for building a diverse portfolio. People looking for a safety net are likely to explore such options, especially in these uncertain times.Investing in these mutual funds may provide the much-required stability and growth potential in a market that is expected to remain volatile for a while. Hence, astute investors should consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).Story continuesWe have thus selected four mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, as well as carry a low expense ratio.Franklin Small Cap Value Fund FRVFX primarily invests the majority of its net assets in small-cap companies. FRVFX usually invests in stocks that its advisor believes are undervalued at the time of purchase and have the potential for capital appreciation.Nicholas Karzon has been the lead manager of FRVFX since December 2019. The three top holdings for FRVFX are 3.9% in ACI Worldwide, 3.8% in Crescent Point Energy and 3% in Glanbia.FRVFX’s 3-year and 5-year annualized returns are 15% and 6%, respectively, and its net expense ratio is 0.73% compared to the category average of 1.16%. FRVFX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.Franklin Rising Dividends Fund FRDTX invests primarily in investments of companies that have paid consistently rising dividends. FRDTX invests in both foreign and domestic companies without regard to market capitalization.Nayan Sheth has been the lead manager of FRDTX since September 2019. The three top holdings for FRDTX are 9% in Microsoft, 3.7% in Roper Technologies and 3.7% in Stryker.FRDTX’s 3-year and 5-year annualized returns are 11.8% and 10.2%, respectively, and its net expense ratio is 0.59% compared to the category average of 0.84%. FRDTX has a Zacks Mutual Fund Rank #2.Franklin Utilities Fund FRUAX seeks capital growth and primarily invests its assets in securities of public utility companies. FRUAX invests primarily in equity securities, which consist mainly of common stocks.John Kohli has been the lead manager of FRUAX since December 1998. The three top holdings for FRUAX are 11.5% in NextEra, 4.7% in The Southern and 4.6% in Edison.FRUAX’s 3-year and 5-year annualized returns are 7.4% and 8.4%, respectively, and its net expense ratio is 0.57% compared to the category average of 0.94%. FRUAX has a Zacks Mutual Fund Rank #1.Franklin Mutual International Value Fund TEMIX invests primarily in foreign issuers. TEMIX invests mainly in securities involving merger arbitrage and the debt and equity of stressed or distressed companies.Timothy Rankin has been the lead manager of TEMIX since April 2023. The three top holdings for TEMIX are 3.8% in Novartis, 3.7% in Deutsche Telekom and 3.6% in BNP Paribas.TEMIX’s 3-year and 5-year annualized returns are 16.4% and 5.2%, respectively, and its net expense ratio is 0.95% compared to the category average of 1.03%. TEMIX has a Zacks Mutual Fund Rank #2.Want key mutual fund info delivered straight to your inbox?Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportGet Your Free (TEMIX): Fund Analysis ReportGet Your Free (FRDTX): Fund Analysis ReportGet Your Free (FRUAX): Fund Analysis ReportGet Your Free (FRVFX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

4 Franklin Templeton Mutual Funds to Bank on in a Volatile Market

https://finance.yahoo.com/news/4-franklin-templeton-mutual-funds-094600536.html

94d63fcf-7a25-39b4-b97e-c21f21baf098

BEN

SAN MATEO, Calif., September 06, 2023--(BUSINESS WIRE)--Franklin Resources, Inc. (the "Company") [NYSE:BEN] announced a quarterly cash dividend in the amount of $0.30 per share payable on October 13, 2023 to stockholders of record holding shares of common stock at the close of business on September 29, 2023. The quarterly dividend of $0.30 per share is equivalent to the dividend paid for the prior quarter and represents a 3.4% increase over the quarterly dividend paid for the same quarter last year.About Franklin TempletonFranklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the Company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives, and multi-asset solutions. With more than 1,300 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.4 trillion in assets under management as of July 31, 2023. For more information, please visit franklinresources.com.View source version on businesswire.com: https://www.businesswire.com/news/home/20230906986581/en/ContactsFranklin Resources, Inc.Investor Relations: Selene Oh (650) 312-4091, [email protected] Media Relations: Matt Walsh (650) 312-2245, [email protected] investors.franklinresources.com

Business Wire

Franklin Resources, Inc. Announces Quarterly Dividend

https://finance.yahoo.com/news/franklin-resources-inc-announces-quarterly-203900243.html

4e76587a-03b4-3079-95ae-42cadafb31bb

BENF

Beneficient- Independent Examinations Confirm Beneficient Has Industry-Leading Cybersecurity and Data Protection Controls in Place -- AltAccess Customer Information is Validated to Provide Safe and Secure Rapid Online Liquidity and Data-Rich Custody Services to Alternative Asset Investors -- SOC 3 Report Conducted by External Auditor Now Available for Download Via Ben’s Website -DALLAS, Aug. 22, 2023 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) (“Ben” or the “Company”), a technology-enabled platform providing liquidity and related trust and custody services to holders of alternative assets, today announced the successful completion of System and Organization Controls (“SOC”) certifications.SOC examinations cover Ben’s online AltAccess Platform for delivering liquidity and custody services directly to alternative asset investors and encompasses:SOC 2 Type 1 including the Security, Availability and Processing Integrity categories as of August 31, 2022.SOC 2 Type 2 is a widely recognized industry standard, and the certification includes the Security, Availability, Confidentiality and Processing Integrity categories for the period October 1, 2022 through March 31, 2023.A SOC 3 report, a public facing report over the same scope as the SOC 2 Type 2 noted above.These examinations were conducted by independent auditor Weaver and Tidwell, L.L.P., (“Weaver”) and report on the controls in place that support Ben’s protection of its AltAccess customers’ data.Brad Heppner, Founder, Chairman and Chief Executive of Beneficient, commented: “Part of what differentiates Beneficient is that we offer customers a safe, regulated and secure experience when investors seek to exit their alternative investments. By utilizing our online AltAccess liquidity and custody platform, customers can achieve earlier liquidity sooner from their alternative assets in a simple, cost-effective manner. Today’s announcement provides further confidence to customers that, when going through the liquidity process with Ben, they are provided with the highest level of cybersecurity and data protection coupled with the confidence that AltAccess is subject to routine examinations by banking regulators.”Story continuesThe SOC 2 examination confirms Ben has established the necessary policies and procedures – and is effectively implementing controls in addition to the examination standards of banking regulators – surrounding the categories of Security, Availability, Confidentiality and Processing Integrity categories, which includes but are not limited to the following:Risk assessment proceduresSecurity controlsEmployee trainingMonitoring and loggingVendor management controls, andIncident response and business continuity.Maria Rutledge, Chief Technology Officer of Beneficient, stated: “At Ben, cybersecurity and customer data confidentiality are always top priorities. From our system architecture, through how we operate and process transactions, all of our practices are designed to ensure that the AltAccess experience is safe and secure. Notably, our AltAccess platform is regularly examined and tested by bank examiners and regulators of our fiduciary financial trust company, which provides the liquidity and custody services to our customers.”Achieving these SOC certifications is a major milestone for Ben and AltAccess, and a reflection of the work and investment our team has put in to being best-in-class when it comes to cybersecurity. AltAccess was designed to serve a range of customers expected to include primary custodian banks, wirehouses, financial advisors and general partner fund sponsors seeking to white label their own branded liquidity and data-rich custody services platforms for private wealth clients owning alternative assets.The SOC 2 certifications are in addition to Ben’s AT&T NetBond Certification. That process involved a rigorous series of regular reviews, penetration testing and security assessments, as well as continuous vulnerability scanning and validation by AT&T.Customers who wish to view a copy of the SOC 3 Report can download it here: https://www.trustben.com/wp-content/uploads/2023/06/The-Beneficient-Company-2023-SOC-3-FINAL.pdfInformation about Cybersecurity at Ben more generally can be found at the following link: https://www.trustben.com/about-ben/cybersecurity-at-ben/About BeneficientBeneficient (Nasdaq: BENF) – Ben, for short – is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors − mid-to-high net worth individuals and small-to-midsized institutions − with early liquidity exit solutions that could help them unlock the value in their alternative assets. Ben’s AltQuote™ tool provides customers with a range of potential liquidity exit options within minutes, while customers can log on to the AltAccess® portal to digitize their alternative assets in order to explore early exit opportunities, receive proposals for liquidity in a secure online environment, engage custodial services for the digital alternative assets and receive data analytics to better inform investment decision making.Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas’ Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner.For more information, visit www.trustben.com or follow on LinkedIn.ContactsInvestors: [email protected]:Longacre Square PartnersGreg Marose / Dan [email protected] Statements Some of the statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are generally identified by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management's current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, our ability to consummate liquidity transactions on terms desirable for the Company, or at all, and the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document and in our SEC filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

GlobeNewswire

Beneficient Announces Successful Completion of SOC 2 and SOC 3 Certifications for its Online AltAccess Platform

https://finance.yahoo.com/news/beneficient-announces-successful-completion-soc-120000999.html

ae94789c-d345-38be-a8b0-5968be4a55c9

BENF

BeneficientDALLAS, Sept. 08, 2023 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) (“Ben” or the “Company”), a technology-enabled platform providing liquidity and related trust and custody services to holders of alternative assets, announced that on Tuesday, September 19, 2023, at 4:30 p.m. EDT the Company will be hosting a webcast to discuss its compelling business fundamentals that contribute to its mission.In the interim, please view the Company’s public filings and updated list of Frequently Asked Questions that are posted under the Investors section of the Company’s website at www.trustben.com (linked here).A replay of the webcast will be available at www.trustben.com (linked here).About BeneficientBeneficient (Nasdaq: BENF) – Ben, for short – is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors − mid-to-high net worth individuals and small-to-midsized institutions − with early liquidity exit solutions that could help them unlock the value in their alternative assets. Ben’s AltQuote™ tool provides customers with a range of potential liquidity exit options within minutes, while customers can log on to the AltAccess® portal to digitize their alternative assets in order to explore early exit opportunities, receive proposals for liquidity in a secure online environment, engage custodial services for the digital alternative assets and receive data analytics to better inform investment decision making.Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas’ Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner.For more information, visit www.trustben.com or follow on LinkedIn.ContactsInvestors: [email protected]:Longacre Square PartnersGreg Marose / Dan [email protected] Statements Some of the statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are generally identified by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management's current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, our ability to consummate liquidity transactions on terms desirable for the Company, or at all, and the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document and in our SEC filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

GlobeNewswire

WEBCAST: Beneficient Discusses Its Business Model of Providing Liquidity for Investors in Alternative Assets

https://finance.yahoo.com/news/webcast-beneficient-discusses-business-model-201500196.html

f645efef-ae10-3898-9a65-b89b826a1f05

BERY

(Adds background in paragraphs 2-4)Sept 8 (Reuters) - Container and packaging firm Berry Global Group said on Friday it is evaluating strategic alternatives for its health, hygiene and specialties segment (HH&S).The company has been focusing on high-growth markets such as foodservice, health and beauty, dispensing and pharmaceuticals, while reducing capital and labor costs as it deals with declining volumes amid a weak market for consumer goods.For the third quarter ended June, the HH&S segment saw a 7% decline in volumes on lower demand.The segment — which provides non-woven fabric, specialty films and tapes for end-markets ranging from healthcare to building and construction, and industrials — accounted for 22% of the firm's consolidated net sales in fiscal 2022.Berry Global, however, said there is no deadline for the completion of the review and no guarantee an agreement would emerge from it. (Reporting by Ananta Agarwal in Bengaluru; Editing by Shilpi Majumdar)

Reuters

UPDATE 2-Berry Global launches review of health, hygiene and specialties segment

https://finance.yahoo.com/news/1-berry-global-initiates-formal-122451852.html

5062c850-a587-38f5-857d-a4263e908d14

BERY

A month has gone by since the last earnings report for Berry Global (BERY). Shares have lost about 8.3% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Berry Global due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.Berry Global Q3 Earnings & Revenues Miss, Decline Y/YBerry Global reported third-quarter fiscal 2023 (ended Jul 1, 2023) adjusted earnings (excluding 72 cents from non-recurring items) of $1.90 per share, which missed the Zacks Consensus Estimate of $1.97. The bottom line decreased 6.4% year over year, primarily due to weakness in the consumer and industrial end markets.  Net sales of $3,229 million missed the Zacks Consensus Estimate of $3,461.6 million. The top line decreased 13.3% year over year due to a 7% dip in volumes, and lower selling prices, which declined $250 million due to the pass-through of lower resin costs. Reduced demand in the consumer and industrial markets led to the volume decline.In the fiscal third quarter, Berry Global’s cost of goods sold decreased 14.7% to $2,649 million. Selling, general and administrative expenses remained flat year over year at $215 million. Berry Global reported an operating EBITDA of $522 million, down 5.1% year over year. Adjusted operating income in the quarter declined 9.2% year over year to $315 million.Segmental DiscussionConsumer Packaging – International sales were $1,036 million (accounting for 32.1% of total sales), down 5.5% from the year-ago quarter. Our estimate for segmental revenues was $1056.7 million. The decline in sales was due to lower selling prices and volumes as a result of weakness in the industrial and consumer markets. Operating income of $68 million fell 17.1% year over year.Consumer Packaging – North America’s sales were $798 million (accounting for 24.7% of total sales), down 13.9% year over year due to a 4% decline in volumes. Our estimate for segmental revenues was $863.8 million. Operating income dropped 14.4% year over year to $89 million.Revenues generated from the Health, Hygiene & Specialties segment amounted to $657 million (accounting for 20.3% of total sales), down 16.6% year over year due to a 7% decrease in volumes as a result of lower demand in filtration and building and construction, and other specialty markets. Operating income of $22 million dropped 60.7% year over year.Revenues from the Engineered Materials segment fell 19.3% year over year to $738 million (accounting for 22.8% of total revenues) due to an 11% decline in volumes as a result of inventory destocking, weakness in the European industrial markets and decreased selling prices. Operating income of $88 million decreased 6.4% year over year.Story continuesBalance Sheet and Cash FlowAt the end of third quarter of fiscal 2023, Berry Global had cash and cash equivalents of $633 million compared with $1,410 million at the end of fiscal 2022. Current and long-term debt totaled $9,212 million compared with $9,255 million at the end of fiscal 2022.At the end of fiscal third quarter, Berry Global generated net cash of $490 million from operating activities compared with $345 million in the year-ago period. Capital expenditure totaled $560 million compared with $556 million in the year-ago quarter. Adjusted free cash outflow at the end of fiscal third quarter was $70 million compared with $211 million in the year-ago period.In the first nine months of fiscal 2023, BERY repurchased 6.9 million shares for approximately $416 million. It also paid dividends of $97 million in the same period. The company expects to repurchase shares worth at least $600 million in fiscal 2023.FY23 GuidanceBerry Global expects adjusted earnings of $7.30 per share in fiscal 2023. The Zacks Consensus Estimate for the same stands at $7.33.BERY anticipates cash flow from operations of $1.45 billion in fiscal 2023. It expects free cash flow of $800 in the same period.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.VGM ScoresAt this time, Berry Global has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Berry Global has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerBerry Global is part of the Zacks Containers - Paper and Packaging industry. Over the past month, AptarGroup (ATR), a stock from the same industry, has gained 2.6%. The company reported its results for the quarter ended June 2023 more than a month ago.AptarGroup reported revenues of $895.91 million in the last reported quarter, representing a year-over-year change of +6.1%. EPS of $1.23 for the same period compares with $0.96 a year ago.AptarGroup is expected to post earnings of $1.27 per share for the current quarter, representing a year-over-year change of +33.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for AptarGroup. Also, the stock has a VGM Score of B.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportBerry Global Group, Inc. (BERY) : Free Stock Analysis ReportAptarGroup, Inc. (ATR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Berry Global (BERY) Down 8.3% Since Last Earnings Report: Can It Rebound?

https://finance.yahoo.com/news/berry-global-bery-down-8-153029717.html

8f930a16-7e0f-3a1f-95af-6740d697e0f9

BF.B

(Updates shares in paragraph 2, adds company comment in paragraphs 7 and 10)Aug 30 (Reuters) - Jack Daniel's maker Brown-Forman missed quarterly profit expectations on Wednesday, hurt by higher input costs and sluggish demand for its pricier whiskeys like Woodford Reserve and Gentleman Jack in the U.S.Shares of the company were down as much as 6%, touching a two-month low, as its net sales in the first quarter also fell marginally short of analysts' expectations.Higher input costs, including for agave, grains and wood, took a toll on the spirits maker, even as shipment volumes declined in the United States after wholesalers worked to trim inventories.Excluding items, Brown-Forman earned 48 cents per share, compared with a profit estimate of 53 cents per share, as per Refinitiv data.Advertising expenses in the quarter rose 19%, while overall expenses were up 14% as it also battled a tough labor market.The company increased the prices of its spirits between 2% and 3% year-on-year, as it grappled with supply-chain and input-cost issues that peaked in the last fiscal.A 90-basis-point expansion in gross margin in the quarter was driven by a 250-basis-point benefit from higher pricing as well as a let up in supply-chain costs, Brown-Forman said on a post-earnings call.Distributor inventories - or the stock that wholesalers hold - declined 11% in the U.S. in the reported quarter, contributing to an 8% fall in the company's net sales in the country.Its quarterly net sales rose 3%, to $1.04 billion, compared with analysts' average estimate of $1.05 billion.Still, Brown-Forman reaffirmed its annual target of organic net sales growth between 5% and 7% and said it expects demand trends to normalize after two years of strong growth. (Reporting by Juveria Tabassum; Editing by Pooja Desai)

Reuters

UPDATE 1-Jack Daniel's maker Brown-Forman misses profit estimate as costs pinch

https://finance.yahoo.com/news/1-jack-daniels-maker-brown-155343774.html

2e4819e5-84d2-3a60-910d-b220c8742513

BF.B

ParticipantsLawson E. Whiting; CEO, President & Director; Brown-Forman CorporationLeanne D. Cunningham; Executive VP & CFO; Brown-Forman CorporationSusanne J. Perram; Director of IR; Brown-Forman CorporationBryan Douglass Spillane; MD of Equity Research; BofA Securities, Research DivisionDrew Nolan Levine; Analyst; JPMorgan Chase & Co, Research DivisionEric Adam Serotta; Equity Analyst; Morgan Stanley, Research DivisionNadine Sarwat; Senior Research Associate; Sanford C. Bernstein & Co., LLC., Research DivisionStephen Robert R. Powers; Research Analyst; Deutsche Bank AG, Research DivisionVivien Nicole Azer; MD & Senior Research Analyst; TD Cowen, Research DivisionWilliam Joseph Kirk; MD; ROTH MKM Partners, LLC, Research DivisionPresentationOperatorGood morning, and welcome to Brown-Forman First Quarter Fiscal Year 2024 Earnings Conference Call. (Operator Instructions). I would now like to hand the conference over to Sue Perram, Vice President, Investor Relations. Ma'am, you may begin.Susanne J. PerramThank you, and good morning, everyone. I would like to thank each of you for joining us today for Brown-Forman's First Quarter Fiscal Year 2024 Earnings Call. Joining me today are Lawson Whiting, President and Chief Executive Officer; and Leanne Cunningham, Executive Vice President and Chief Financial Officer. This morning's conference call contains forward-looking statements based on our current expectations. Numerous risks and uncertainties may cause actual results to differ materially from those anticipated or projected in these statements. Many of the factors that will determine future results are beyond the company's ability to control or predict. You should not place undue reliance on any forward-looking statements, and except as required by law, the company undertakes no obligation to update any of these statements, whether due to new information, future events or otherwise. This morning, we issued a press release containing our results for the first quarter fiscal year 2024 in addition to posting presentation materials that Lawson and Leanne will walk through momentarily. Both the release and the presentation can be found on our website under the section titled Investors, Events and Presentations. In the press release, we have listed a number of the risk factors you should consider in conjunction with our forward-looking statements. Other significant risk factors are described in our Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission. During this call, we will be discussing certain non-GAAP financial measures. These measures are reconciliation to the most directly comparable GAAP financial measures and the reasons management believes they provide useful information to investors regarding the company's financial condition and results of operations, are contained in the press release and investor presentation. With that, I would like to turn the call over to Lawson.Story continuesLawson E. WhitingThank you, Sue, and good morning, everyone. It's a pleasure to be able to speak to you today about Brown-Forman's first quarter results for fiscal 2024. Before we get into the details of the quarter, there are a few key drivers of our first quarter results that you will hear about repeatedly throughout this call. First, the rebuilding of distributor inventories, primarily in the United States, in the prior year period had a significant impact on our first quarter results. As you will recall, this rebuilding in the prior year occurred as a result of supply chain disruptions. If you reference Schedule D in today's earnings release, it will provide you with additional information to put this quarter into better context. Second, the timing and phasing of our operating expenses had an impact on our first quarter operating income as we launched and acquired new brands while also investing in our existing portfolio. As you can surmise from our full year guidance, we expect this to moderate as we continue throughout the rest of the fiscal year. And finally, and most importantly, we believe the health of our brands and our business remain strong as evidenced by consumer takeaway trends. We continue to be confident that we have the best portfolio and the best people in the market, and it's this confidence that allows us to reaffirm our full year outlook for fiscal 2024. With this backdrop, let me quickly walk you through our high-level results for the first quarter. From a top line perspective, our reported and organic top line results were below our longer-term historical trends. Much of this is being driven by the comparison to the strong double-digit top line growth in the first quarter of last year. You'll recall our glass supply significantly increased in the spring and summer of 2022 which allowed us to rebuild distributor inventories, which created a strong comparison for the first quarter of this fiscal year. Our gross margin expanded with favorable price mix and the removal of the U.K. tariffs. These gains more than offset increased input costs, foreign exchange headwinds and the impact of our recent acquisitions. In the first quarter, we also made significant investments behind our brands and our people which resulted in a year-over-year decrease in reported and organic operating income. Now let's go into each of the P&L items a little bit more. I'll briefly provide a few more details on the top line from a brand perspective, and then I'll turn it over to Leanne who will share additional insights on our geographic performance as well as other financial heights before closing with some comments on our fiscal 2024 outlook. Our reported net sales growth increased 3% with organic net sales growth increasing 2% after adjusting for the recent acquisitions and the negative effect of foreign exchange. Organic net sales growth in the quarter was driven by the continued growth for Jack Daniel's Tennessee Whiskey, Jack Daniel's Tennessee Apple and El Jimador. This growth was partially offset by declines related to the estimated net decrease in distributor inventories, particularly for brands such as Woodford Reserve, Jack Daniel's Tennessee Fire and Gentleman Jack as we cycled against the significant inventory rebuild in the first quarter of last year. In total, we estimate that the net change in distributor inventories had a 6% impact on our overall top line results. If you were to factor in the net change in distributor inventory, our net sales growth would have actually been above our long-term growth expectations. As I mentioned earlier, we believe our business is strong. Jack Daniel's Tennessee Whiskey led our growth as organic net sales increased 2% after lapping organic net sales increase of 21% in the prior year period. We believe the consumer demand is normalizing and estimate that the growth rate on Jack Daniel's Tennessee Whiskey in the first quarter was lower by approximately 2 percentage points due to the net change in distributor inventory. Growth continues to benefit from our pricing strategy as well as our revenue growth management initiatives. Second, Jack Daniel's Tennessee Apple grew organic net sales more than 50% as we lap the impact of the glass supply constraints in the year ago period, and we're better able to meet consumer demand, particularly in markets such as Brazil. The brand also benefited from a strong launch in South Korea. Demand for Tequila, particularly in the U.S., remains strong. El Jimador was the third largest contributor to overall company organic growth, increasing organic net sales 26%. We continue to see strong momentum in our ready-to-drink portfolio, which grew organic net sales 5%. This was led by the launch of Jack Daniel's in Coca-Cola and the continued growth of new mix which performed well as the RTD category in Mexico is growing and the brand is increasing share. The growth was partially offset by planned declines in Jack & Cola as the market's prepared for the Jack Daniel's and Coca-Cola launch. I know there's been tremendous energy and curiosity around our new Jack Daniel's and Coca-Cola RTD. So I thought I'd share a bit more detail on the continued launch. Impressively, the global volume has already grown to 1.8 million cases across 11 markets, led by the U.S. and Japan. As we've shared before, some markets are being led by Brown-Forman, whereas others are being led by the Coca-Cola Company. Therefore, this total case volume is not reflected in our 9-liter depletion results. We expect that this total volume will continue to grow as we plan to expand from 11 to 30 markets by the end of calendar 2024. In the U.S., the Jack Daniels and Coca-Cola RTD launch has been the most successful launch in Brown-Forman history, having achieved the second highest level of off-premise distribution across the portfolio only behind Jack Daniel's Tennessee Whiskey. Today, it has reached over 2% of the RTD categories value share. And overall, we're pleased with the initial launch of this iconic product and believe our success is driven in part by the strong investment behind the launch including significant investments in broad-reach media, events and trade execution. As the launch evolves, we would naturally expect this investment to normalize. We're also excited by the brand visibility, the market share gains and the positive feedback from distributors, retailers and most importantly, consumers. I must say, you know you're doing something right when consumers start wearing your spirit brands. And I just saw a picture of the first reported Jack & Coke RTD Tattoo. The loyalty of our Jack Daniel's fans is strong and impressive. The Jack Daniel's and Coca-Cola RTD has been a strong addition to the portfolio, which as you know we have been very strategically reshaping over the last couple of decades to focus on premium and super premium brands. We continue to believe this premiumization provides us with the best opportunity for long-term growth and value creation. The integration of our newest brands, Gin Mare and Diplomático continues to go well. The brands increased reported net sales in the first quarter by 2%, and we continue to expect these brands will be meaningful contributors to our long-term growth. Also as a part of this portfolio evolution, we announced the sale of Finlandia Vodka earlier in the quarter. Finlandia has played an important role in the global growth of Brown-Forman since it joined our portfolio fully in 2004, and we appreciate the many talented employees who worked hard over the 2 decades to build the brand. We know this brand will continue to evolve in the capable hands of Coca-Cola HBC when the sale closes in the second half of the 2023 calendar year. Before turning the call over to Leanne, I'd also like to add some additional perspective on our gross margins and operating expenses. In the first quarter of 2024, our reported and organic gross profit increased 5%, both ahead of the respected top line growth rates. While we experienced some headwinds in the form of higher input costs and the negative effect of foreign exchange, they were more than offset by the tailwinds of favorable price/mix, lower supply chain disruption related costs and lower tariff-related costs due to the removal of the U.K. tariffs on American whiskey. This resulted in 90 basis points of gross margin expansion in the quarter. We continue to be focused on the execution of our long-term pricing strategy and believe the health and relevance of our brands, supported by our continued brand-building investments will allow us to continue to achieve our strategic priorities. Our brand-building investments were evident in our first quarter as organic advertising expenses grew 14%. This was largely due to the timing of our increased spend to support the launch of the Jack Daniel's and Coca-Cola RTD, which, as I mentioned earlier, is significantly skewed to first few months of our fiscal year as well as increased investment for Jack Daniel's Tennessee Whiskey. We also continue to invest behind our people. Organic SG&A investment increased 12%, driven primarily by higher compensation-related expenses related to organizational changes including our route to consumer expansions, which we believe will support Brown-Forman's long-term success. In summary, we're off to a good start in fiscal 2024 and remain optimistic that we can achieve our full year goals. While consumer demand for our brands begins to reflect a normalization back to our more historical trends, we expect to continue to benefit from our long-term pricing and revenue growth management strategies as well as a more normalized cost environment. We're still operating in a highly dynamic world. Yet we have remained agile, focused and committed to the long-term growth of our people, our brands and our business. We take pride in our ability to deliver consistent and reliable growth year after year, decade after decade, and we believe this tradition of excellence will continue in fiscal 2024. With that, I'll turn the call over to Leanne and she'll provide more details on our first quarter results.Leanne D. CunninghamThank you, Lawson, and good morning, everyone. As Lawson mentioned, I will provide additional details on our geographic performance, other financial highlights as well as our fiscal 2024 outlook. From a geographic perspective, collectively, our emerging international markets continued to deliver very strong double-digit organic net sales growth, driven by Jack Daniel's Tennessee Whiskey, particularly in the United Arab Emirates due to increased distribution and strong consumer demand in Türkiye, where the premium whiskey category is accelerating. Jack Daniel's Tennessee Honey led by Türkiye as well as Brazil, where the brand is returning to normal levels of supply and new mix, which continues to grow strong double digits in Mexico, where the RTD category is accelerated, and we are gaining share. As the international airline travel and cruise business continued to return to more normalized growth levels, the travel retail channel grew organic net sales 9%, led by higher volumes of Woodford Reserve. Our business in this channel continues to remain above pre-pandemic levels. Organic net sales for our developed international markets collectively were flat for the first quarter as growth in the United Kingdom, South Korea and Germany was offset by declines in Australia and Japan. Jack Daniel's Tennessee Apple was the largest contributor to growth driven by the successful launch of the brand in South Korea. This growth was offset by year-over-year declines for Jack Daniel's RTDs, driven by Australia, where macroeconomic pressures negatively impacted volume growth and the United Kingdom, where we are transitioning from Jack Daniel's and Cola to Jack Daniel's and Coca-Cola partially offset the growth in Germany and Jack Daniel's Tennessee Whiskey, which had strong growth in the United Kingdom, but was negatively impacted by Japan due to an estimated net decrease in distributor inventory where we remain on track for our transition to own distribution on April 1st of this fiscal year. And for the United States, organic net sales decreased 9% as a result of lower volumes due to an estimated net decrease in distributor inventories of 11%, partially offset by higher prices across our portfolio. As Lawson highlighted, in the first quarter, we cycled against the significant inventory rebuild during the same period last year, which was particularly impactful to the United States market as we focused on rebuilding distributor inventory for brands with substantial volume in the U.S., including Woodford Reserve, Gentleman Jack, Jack Daniel's Tennessee Honey and Jack Daniel's Tennessee Fire. With the rebuilding of finished goods inventory across the 3-tiered system, we accomplished in fiscal 2023, we believe that distributor inventories have returned to more normal levels. The consumer premiumization trend continued to drive demand for our super premium Jack Daniel's products and partially offset the decline. This included growth from Jack Daniel's Sinatra, our specialty launches such as Jack Daniel's Single Barrel Rye, Barrel Proof and the newest member of our Bonded series, Jack Daniel's Bonded Rye. These products highlight our whiskey credentials and give consumers the opportunity to explore and discover within the Jack Daniel's family while premiumizing the Jack Daniel's family of brands. The Tequila category also continued to experience growth in the United States with El Jimador leading the growth of our Tequila portfolio, delivering double-digit organic net sales growth and the launch of Jack Daniel's and Coca-Cola RTD drove a high single-digit organic net sales increase for the Jack Daniel's ready-to-drink portfolio. From a takeaway perspective, the data reflects a normalization as total distilled spirits as well as Brown-Forman delivered value growth in the mid-single digits, driven by growth in RTDs, Tequila and U.S. whiskey. As Lawson shared, the details of our gross margin expansion and operating expenses for the quarter, I will now turn to our operating income. In total, reported and organic operating income decreased 4% and 6%, respectively, in the first quarter of fiscal 2024, largely driven by the phasing of our operating expense growth, partially offset by our gross margin expansion. These results, combined with a decrease in our effective tax rate and an increase in interest expense resulted in a 7% diluted EPS decrease to $0.48 per share. And finally, to our fiscal 2024 outlook which we are reaffirming. In what has been a highly dynamic operating environment, we continue to be optimistic. We continue to believe global trends will normalize after 2 years of very strong growth. And while consumer demand for our brands is also starting to reflect more historical trends, we expect to continue to grow on this elevated base as a result of our long-term pricing and revenue growth management strategies as well as the addition of 2 super premium brands, Gin Mare and Diplomático to our portfolio, partially offset by a portfolio mix shift to RTDs. We'll also note that due to the timing of the Gin Mare and Diplomático acquisitions, which were in the third quarter of fiscal 2023, the contribution of these brands in the first half of fiscal 2024 will only appear in our reported results as the operating activity in this period will be noncomparable year-over-year. Once we lap the acquisitions, the results will then be included in our organic results. While we remain cautious due to the current macroeconomic volatility and the potential impact of inflation on consumer spending, we maintain our belief that the collective strength of our U.S. and international markets, along with the travel retail channel should reflect our longer-term growth algorithm and therefore, reiterate our organic net sales growth expectation for fiscal 2024 in the 5% to 7% range. Today, we have intentionally highlighted the impact of our results from the strong shipments in the year ago period related to the rebuilding of distributor inventories. As a reminder, we began rebuilding distributor inventories in the second half of fiscal 2022 through the first half of fiscal 2023. I also want to remind you of the stronger shipments associated with the launch of Jack Daniel's and Coca-Cola RTD in the United States in the back half of fiscal 2023 will have to be lapped in the second half of fiscal 2024. Both are reflected in our guidance. We believe inflation will continue to negatively impact our input cost which will partially be offset by lower year-over-year costs associated with the supply chain disruption we incurred in fiscal 2023. On the topic of input cost I'd like to take a moment here to share some thoughts on the recent changes in the (inaudible) pricing. As we have discussed with you over the last few quarters, given the increase in tequila demand, there was a significant increase in the number of planting several years ago. We have long believed that this would lead to an eventual increase in supply and subsequent decrease in cost, assuming the tequila category remained strong. In the last 3 months, we have seen a significant decrease in agave cost from MXN 28 to MXN 30 per kilo to MXN 16 to MXN 18 per kilo depending on the quality of the agave. While we are very encouraged that prices are finally coming down the benefits to our cost of goods sold will not be immediate for 3 reasons. First, we have finished goods inventory produced prior to the reduction in agave prices that need to be sold. Secondly, more than half of our tequila is aged liquid for expressions such as Reposado and Anejo, which will require some time before it is bottled and sold. For our Blanco expression, we will begin to see a benefit more quickly, in addition and as we have shared, we both grow agave internally and source it externally, and this mix can vary based up our needs and the volume growth by expression. So while the overall agave pricing trend is increasingly favorable, we still believe that inflation will be a headwind for our overall input cost in fiscal 2024. Turning our attention to the full year operating expenses. Our outlook continues to reflect a normalization of incremental advertising spend aligned with our long-term philosophy for advertising spend to be aligned with our top line growth. And SG&A growth is still likely to remain higher than historical averages as we continue to expect higher compensation-related expenses and expenses related to the transition to own distribution in Japan. Based on these expectations, we continue to anticipate organic operating income growth in the 6% to 8% range for the full fiscal year. We also expect our fiscal 2024 effective tax rate to be in the range of approximately 21% to 23% and our capital expenditures to be in the range of $250 million to $270 million for the full year. In summary, we have had a good start to fiscal 2024. The results reflect the continued normalization of consumer demand as well as the comparison against the very strong shipments related to the rebuilding of distributor inventories in the year ago period. They also include the benefit of our pricing strategy and the phasing of our brand investments. While our short-term organic results in the quarter were below our historical trends, we believe our brand and our business are healthy. We remain optimistic as we look ahead to the full fiscal year and are confident in our ability to deliver our near-term goals and our long-term strategy. This concludes our prepared remarks. Please open the line for questions.Question and Answer SessionOperator(Operator Instructions). Our first question comes from the line of Nadine Sarwat with Bernstein.Nadine SarwatI'd like to zoom in on the distributor inventory in 2 parts. So the first, could you just quantify how much of the change in distributor inventory was due to the tough comp you highlighted versus how much is due to actual distributor destocking? And if there is a fair amount of actual destocking, what is driving this? And then secondly, are you happy with current distributor stock levels? Or should we be expecting some destocking in the next quarter?Leanne D. CunninghamI'll start with the first part of your question, which is we have talked about the comp that we had in the first quarter compared to the comp that we had in the last -- the first quarter of last year, when we had very strong shipments. And if you go back to our -- what is that point in time with the Schedule C, you would have seen the impact that we had there. So it is partially that we are comping the very strong comp. It's also -- we don't see it as destocking. We have finally gotten our inventory levels back up to what we believe is normal. We've been working on that for a year and bringing you along in that story along the way. What we see now is a change in distributor buying patterns in that other part that you're asking about. And it really comes back to, we continue that with lapped everything related to the pandemic. We now have to comp the things related to supply chain disruption. And as we got into supply chain disruption, before that, we had a very consistent cadence and seasonality of our shipments. But due to the various ways that we determined that we needed to rebuild our distributor inventories, first, prioritizing Jack Daniel's Tennessee Whiskey, which would have started in the second half of 2020 and then moving into the first half of 2023, where we were able to prioritize Woodford Reserve, Gentleman Jack and Jack Daniel's flavors, we also prioritized markets for the U.S. first and then Europe and emerging international as we worked our way through the rebuilding of the inventory. So the cadence and timing of our shipments are abnormal from what we would -- our historic norms. So once we're back into a stable inventory position for long enough, we believe that it will become less volatile and would be kind of backed to our historic norms. But again, for us, we have been working for a year to get back up to that normal level of inventory across the world, and we now believe that we're there. So I hope that helps.Lawson E. WhitingLet me try to add on to that, Nadine, a little bit, too, because I do want to make sure everybody sort of -- I get that this is really confusing. And I do make sure reiterate really what Leanne said, that this is a comparison issue though, it is not a destocking, (inaudible) why it's not a destocking because I know that would sort of feel normal at this point. So but if you go -- literally, you can go back 3 years, the summer of 2020 into the fall really into the spring of -- I'm talking calendar years here, not fiscals. We -- it was kind of the boom years. It was the post-COVID, Nielsen numbers were up at like 30% for everyone, and there was just an enormous uplift in the entire industry. You get to the summer of '21, it begins to show up in terms of glass shortages. Really for Brown-Forman, it's seemingly worse than everyone else. But we really began to have those challenges in the summer of '21, and it was a challenge for about 8 months, where we ran global inventories down so low, and that would be going so far as to say the consumer inventory, the retail inventories, layers of distributors have got very low and we had out of stocks all over the place. We are, at that time, working very hard. We're diversifying our glass supply. We're moving bottling lines. We're doing all sorts of things to try to alleviate the glass shortage and it starts to come back right in the spring of '22. And as Leanne said, we prioritized Jack because at that point, the on-premise is opening around the world and we did not want to miss that. But so Jack Daniel's really begins to move and had a huge year in fiscal '22 and had a big year in fiscal '23 also. So Jack gets replenished in the spring and into the early summer, but now you get into the summer of '22, which is the one we're comparing against as we said earlier good for Gentleman Jack, all 3 flavors and basically our whole portfolio really begins to come back online. Now the reason there's not a destock here, this is where it takes -- it doesn't -- you wouldn't think at first, but what was happening because retail inventories were so low that those cases of Woodford and the Gentleman Jack, the entire portfolio got to the distributor warehouse and they were outside the back door in about 20 minutes because the retail environment was so desperate for the product. So our days never crept up. And so we haven't had to take them down. I mean, so it's not a days of inventory issue, and it's not a destocking issue. It's just these comparisons against some crazy quarters. And I'll finish this off, and I don't want to spend that much more time on this. But Q1 of last year, JD, Jack Daniel's Tennessee Whiskey was plus 21%, total company was plus 17%. So you're comping against numbers like that. Q2, just a sort of foreshadow everyone is a big quarter, too. So we have another one as we continue to replenish these inventories through Q2 of last year and then the comps get much, much easier. But it's been a volatile ride. It's been a volatile ride for 5 years. But the business is solid. I think if you look at the Nielsen numbers, in particular right now, they're kind of -- they've normalized. But as we said last quarter, normal is good. We've got this business, I think, rolling in the right direction and momentum is good and the volatility, we don't love the volatility, but it is there. We've got a little bit longer to go, but I still argue or not argue, but I'm still venture to say that our underlying business is in pretty good shape.Nadine SarwatAll right. That's very helpful. So just to clarify, I know in the release you called out that it was partially due to the comp issue, are you saying that there is no destocking whatsoever? There isn't a change in distributor buying patterns more caution. This is purely a comp cadence issue? And then if you could just clarify what we should expect for Q2? Thank you.Leanne D. CunninghamYes. So just for clarification, we said partially comping the rebuilding and it's also partially a change in the distributor buying patterns because we are off our normal cadence of shipments our historical trends because of how we chose to prioritize, how we rebuilt our brands and in what markets we were rebuilding those. So over the longer period of time, that will begin to normalize.OperatorOur next question comes from the line of Bryan Spillane with Bank of America.Bryan Douglass SpillaneThanks, operator, and good morning, Lawson, Leanne. So thanks for all of that commentary on inventory. And I guess if I were to sum it up, if you deplete 10 cases, you'll ship 10 cases, right? That's what the plan is built on.Lawson E. WhitingPretty much.Bryan Douglass SpillaneOkay. And then, Lawson, maybe could you just give a little perspective on depletions in the quarter. Volume depletions were up 1%. And so could you just kind of put that in context of -- is that more or less in line with what you were expecting? Maybe what that looks like relative to the industry? There's a lot of focus right now on volume and volume growth and just what's happening with consumption, not just for Brown-Forman, just more broadly across I know our entire coverage, consumer coverage inverse. So just trying to get a sense of, if you could put that into perspective of just what you're seeing in terms of volume consumption trends and whether kind of a 1% to 2% type depletion is maybe what we should be thinking about in terms of Brown-Forman and maybe just the industry for the year.Leanne D. CunninghamI'll add some color to that. And if you look at Schedule B, you can see that really, for the most part, shipments and depletions are aligned except for where you -- we get down to the Jack Daniel's ready-to-drink and that's all about the launch of the Jack Daniel's and Coca-Cola in the U.S. So where we are right now is they're in line. Over a longer period of time as shipments over the last few years have been stronger than depletions as we've been working to rebuild inventories. We do expect that depletions would need to come back in line and will exceed our shipments in this year, is what is built into our guidance. So as we think about that, we will continue to update you as we go through the quarters. But right now, we still believe our depletions will be a bit ahead of our shipments as we go through this fiscal year.Lawson E. WhitingI mean, I think, [shared] part a little bit by geography. I mean, the U.S. market, if you look at GDS in Nielsen, it's sort of between 5 and 6, I think. We're right there, too. So the U.S. market, I mean, there's so much noise in the sales numbers, I know. But the U.S. market is in a pretty decent shape. It's definitely being elevated by the RTD piece of things. So I do -- I think it's fair to say the full strength has the -- some of it's comparisons, but the full strength market has softened a little bit. But it's being made up for us for the most part in our international markets, which continue to be really strong in particularly the emerging markets, which really is in its third year of pretty outstanding growth. That growth is coming from a very wide variety of markets, which is always nice also. It's one of the -- while we are so dependent on Jack Daniel's, when you talk about the international markets, there's so much geographic diversification that for instance, South America and Mexico, we've had an outstanding run and the markets in Eastern Europe that are on really strong runs right now. So we've got really strong pockets of growth coming out of some of the most important markets. U.K. is actually in pretty good shape right now, too, and is delivering well. So no, the business is not turning into a 1% growth. No one is thinking of that.OperatorThank you. Our next question comes from the line of Eric Serotta with Morgan Stanley.Eric Adam SerottaWith regards to the comment that you made in the press release and on the prepared remarks about declines in the old Jack & Cola offsetting growth in the Jack & Coke launch. If I remember correctly, the previous comments that you made were that Jack & Coke was nicely incremental. So just looking for some color as to why they largely offset in the quarter. Was there a timing issue with getting some of the old Jack & Cola out of the channel or was some of this -- a lot of this growth reported on Coke [stocks] and not yours. Any color into that dynamic would be very, really helpful.Lawson E. WhitingYes. So sure, because this is one of the topics but also is a little bit confusing. So as I mentioned in my prepared remarks, the global volumes, it's about 1.8 million cases across the 11 markets. Now the part -- I think most people know, but a reminder, I guess, some markets are led by Brown-Forman and others are being led by the Coca-Cola Company. So that is what is throwing some of our volume numbers off in the spreadsheet. And I think it's what you're referring to. There are markets where Coca-Cola is taking the lead, and I'll use the U.K. as a good -- probably the clearest example. We had a big Jack & Cola business there, and now we are evolving that over to Jack & Coke. So those sales of the actual sales to the Tescos of the world, will not be on our books anymore, it's going to be on the Coca-Cola's books. It doesn't mean the business is going away, it's just we're taking out the cola and replenishing or replacing it with Jack & Coke. And so that's why the numbers look like they're going down, but that's not really the case. In system-wide, they're not. It's just the way that's being reflected on our financial statements. So and I think -- look, I'd also reiterate, I mean, this has been a great launch. It's an iconic product. We are really investing highly behind this launch as is the Coca-Cola Company. And so -- there's been a lot of broad reach media, there's events, there's trade execution, but it's [gone] and it is off to a very strong start. So the increased visibility, I think, is important. The market share gains we're getting. We've got a lot of positive factors. So and it's got 2% of the category. In the U.S. It's got 2% share already, and it's only been 3 or 4 months. So it's off to a good start, and we feel pretty good about it. And I think the long-term potential is exciting and a lot of things that it does for the health of the brand, along with the actual business proposal itself. So it's off to a good start.Eric Adam SerottaGreat. And then just to follow up on the inventory dynamic. Hopefully, this is one of the last questions on it, but you did mention or you did flag rightfully so, I think some tough comp again in the second quarter. My recollection is the rebuild last year in the second quarter was somewhat less than it was in the first quarter. Am I remembering that correctly, and should we expect some sort of moderation in that year-on-year headwind in the second quarter before all things being equal, should be about neutral in the second half.Leanne D. CunninghamYou're remembering that correctly. And what we're talking about as far as comp is the entire company because we had the really strong shipments in the first half of last year. But you are correct that as we get into the second quarter, the shipments and depletions more normalized. But the one thing we have to remember is, and we'll share this with you every quarter as we get into the fourth quarter of fiscal 2024, then we'll have to lap the launch of Jack Daniel's and Coca-Cola in the U.S.Lawson E. WhitingYes. I mean, so it is less. Q2, I said a minute ago, Jack was still up 14% in Q2. So it's still -- we've still got high comps, but it is normalizing.OperatorOur next question comes from the line of Andrea with JPMorgan.Drew Nolan LevineThis is Drew Levine on for Andrea. So I wanted to pick up on the U.S. So it looked like underlying trends were up around 2% in the quarter and a loss as you mentioned TDS was up sort of mid-single digit. And the track channels, it looks like even Brown-Forman was stronger than that. So just curious if you can elaborate maybe on what the disconnect there is? And if we just see that sort of delta between the underlying growth rate and what we're seeing in track channels narrow looking ahead?Lawson E. WhitingWell, I mean, those numbers never tick and tie exactly. I think the 5% growth number, which includes Jack and Coke, it's a pretty solid sort of result. The U.S. for like a decade has been between 4% and 5% with the exception of these sort of post-COVID years when it really blew up. Yes, the difference between the -- getting from minus 9 on organic basis and adjusting for the distributor inventories is what gets you to the two. I don't know if I can explain that the between the 2 and 5 necessarily. I don't think it's not a huge number.Leanne D. CunninghamIt's really about the launch of the Jack and Coke and the buying patterns that are in there. So that's creating a lot of noise in the difference between what you would see in our takeaway trends and what's happening in our net sales. So it's just -- again, as we were coming through and the gap was narrowing over the last few quarters, but then as we launched Jack and Coke and it's not all the way through into those takeaway numbers yet. That's creating the gap for us.Drew Nolan LevineAll right. Fair enough. And then if I could ask a follow-up on gross margins. So it looks like costs were about 100 bps headwind this quarter moderated from the fourth quarter, which I think was around [320] bps. And you mentioned you'll be lapping a lot of those supply chain mitigation efforts from last year. So can you maybe offer some more color on gross margin expectations looking ahead? Should we think about gross margins potentially over 60% here going forward? And then on the Blanco or agave situation. Is there any sort of way to think about the internal versus external mix of supply there?Leanne D. CunninghamOkay. Great. Thanks. So I'll start with our gross margin for the first quarter, which was, as you noted, expanded 90 basis points, and it's where our price/mix more than offset the inflation on our input cost. And it was really driven by our price mix, which was plus 250 basis points that was driven by kind of the price increases across our portfolio that was led by Jack Daniel's Tennessee Whiskey. We also still, and I'll just point this out, is the last time I'll have the opportunity to say it is the last of the benefit from the removal of the U.K. tariffs on American whiskey because they rolled off June 1 of '22. And as you pointed out, the impact of inflation on our input cost has been partially offset by supply chain disruption costs. And then so that's a good segue for me to go into the full year. And again, everything I say here is built into our operating income guidance. But we do expect price mix to continue to be a leader for us this year with our long-term pricing and that new growth management strategies. We'll have the -- from a cost perspective, we'll have the absence of the supply chain disruption costs that will be significantly less to zero in F '24. And we'll still have inflation that will negatively impact our input cost in total, but though at a lower level. And to your question, I'll talk to you about a couple of our key input items starting with agave. And it really is about what we said. We've been talking about this for a very long time. We're really excited that it's finally starting to come down. We've been looking out there for such a long period of time seeing those large number of plantings and waiting for supply to catch up with the demand, and we are approaching and arriving to that now. We just wanted to be clear, though, with everybody, though, like we said in our prepared remarks, we do have finished cases in the supply chain -- in the supply chain and our inventory that need to be sold through, and it varies back to how much inventory we have, but generally speaking, that would be 3 to 4 months depending on SKUs. So well, we need to work through that. And then like we talked about for our portfolio of tequilas, Reposado and Anejo and some of our other expression are aged liquid. So we need to continue to let them, go through their aging cycle before they're bottled and the inventory is sold through. But as we get to expressions like Blanco or any nonaged expressions, we'll see that benefit more quickly. So it's really more about the inventory -- moving through the aged liquid and the finished goods inventory. Though there a bit of it will be the mix, just between what do we need to meet our needs. So we do grow our own internal agave. And but where we have needs, we source on the spot market. As you know, we've been clear with that over time. So balancing all those things, I think I'll just say that in a number of months from now, we're going to continue -- we're going to see a meaningful benefit that will come towards the end of our fiscal '24 and well into F '25, which continues to make us excited about as we look ahead because we know agave and the cost of wood have been our 2 biggest challenges over the last number of years as it relates to our costs. And just to give you a quick update on wood while I'm here, the commodity cost for wood continues to remain high, but we have made a lot of strategic changes to our wood supply chain that is beginning to benefit us and yield those benefits. And we continue to believe, we are going to continue to see those benefits as we move through '24 and then well into the future as well. So we've got that position well. I'll real quickly hit just in case anybody is curious [bringing] for us, which is largely corn. It's below its peak. We're expecting it to be stable but well below kind of the prior year's prices. And with the reduction of natural gas and diesel prices, we will still see a bit of a slight increase in our glass cost but less than what we've had. So all in all, this is built into our guidance. And in total, our cost trends are moving and appeared to be moving in a favorable direction for us. So I hope that helps as you think about gross margin where we were for the quarter and kind of where we're thinking for the full year.OperatorOur next question comes from the line of Vivien Azer with Cowen.Vivien Nicole AzerI was hoping to ask about advertising spending a little bit. Understanding that the growth this quarter is really a phasing, and we heard you loud and clearly on kind of the longer-term aspiration to grow A&P in line with sales. But Leanne or Lawson, I was just curious how you're viewing the evolution of the competitive dynamic in TBA in the United States, for a whole host of reasons, a number of large public beer companies are stepping up their A&P for the remainder of the year. I'm just wondering how you're thinking about the potential impact on the sell spirit sales as a result and the potential need for you guys to spend more.Lawson E. WhitingYes. I mean I had not heard that the beer companies were really stepping up that much. But I do think, as you said, the long-term philosophy is to keep it in step with sales. We have significantly increased our [thought of] spending in the last 2 years by well over a $100 million. And so I think we feel pretty good that we have gotten ourselves in a comfortable place. And I think we can manage the P&L from there. I mean, look, the beer companies are struggling. And so they are -- I'm quite sure they are trying to figure out ways to obviously turn their brands around, some brands are in real trouble. And they're going to find a way to try to spend their way out of that. But I don't see us doing that. And I don't really think, at least in the short term, I don't see much of a reaction out of us because of that. Their challenges are sort of unique to them, and we'll continue to [pop] forward the way we have.Leanne D. CunninghamYes. And if you don't mind, Vivien, I'll kind of scope back out, and I'll kind of talk about our full year because I think we need to put what happened in Q1 into context with how we're thinking about the full year. So I'm going to go a little bit broader first, just to say, like I've shared, we've left the impact of the pandemic to a more normalized level, and we're on that elevated base. We're still lapping impact of just supply chain disruption. But the reasons we believe that we're going to deliver our full year guidance is we lap those strong shipments of the rebuilding of our distributor inventory. And like we talked about here today, once we adjust for the estimated net change in distributor inventories that you've seen on Schedule D, we believe our brands and our business are really healthy. So I'll tie that back to how we're investing in it. The investment really kind of came with the launch of Jack Daniel's and Coca-Cola in the U.S. We are getting ready to launch that in September, which is just a few days away in Germany. So when Lawson said in his prepared remarks that the majority of that hit in the first few months of the year, is to support those launches, and we're going to get back to that normal trend. But I think it's important to go ahead and say, for our full year, we've got our pricing and our revenue strategies, we've got the addition in the back half of the year. That's not in the first half of the year, which is the impact of Gin Mare and Diplomático that will be moving into our organic results. So we feel good about our top line guidance. We also feel good about the absence of supply chain disruptions and the costs associated with that. We feel good that from a full year perspective, we will invest in our brands in a way that lands with how we planned it, which is in line with top line growth that heavily skewed to the front end. And that, we've said this already, but from an operating expense perspective, SG&A, we continue to invest in our route to consumers. We know that's Japan and also Slovakia for fiscal 2024. And we've got all this built into our guidance. So even with all the noise that we're talking through today, we believe we're going to land our operating income growth at that 6% to 8%.Lawson E. WhitingIn fact one more comment on the beer versus spirits thing more to the RTD world. I think it's just -- and they need to advertise because the malt-based RTD is obviously have gone through a huge amount of (inaudible) in the last few years where they exploded and then they've taken a sharp dive. Most a lot of it is coming at the expense of the spirit-based RTDs which I just -- I found interesting. I don't think any of us predicted that to happen. But I think at the end of the day, the consumer is willing to pay more substantially more for spirit-based RTD, than a malt-based RTD because they taste better. And that is making the numbers get a little bit wild in the world of Nielsen and all the rest of it. But I think we have -- we, not Brown-Forman, but I mean, the industry is showing that the consumer is willing to pay a little bit more for something that tastes really good. And it's been interesting to watch those dynamics.Vivien Nicole AzerAbsolutely. If I could just squeeze in a quick follow-up on Japan specifically. We've observed Brown-Forman evolve the route-to-market process in a number of different markets historically. I've never seen this much dislocation. So can you just help us think through the 80% decline in Japan and how that evolves over the course of the year?Leanne D. CunninghamYes. So again, we've been working, again, scoping out, working on our, increasing our route to consumer into own distribution models for quite some time. We've had prior to 2020 -- fiscal 2024, we've had 14 markets move into own distribution. We've seen a lot of success. They deliver a lot of things like they fuel our growth, strengthen our position. They do unlock value for us, and we're continuing to move forward in that. So specifically, in this year as it relates to Japan, we are in the process of transition. We know that if you were to look at a year ago period, we were with our distributor partner. We had inventory in that market to supply the sales, and we're going through just the transition. And so as we -- again, all of this is built into our full year plan. But again, at fiscal 2024 for us is going to be a year of transition in Japan. And with that, we have SG&A costs associated with it, and we have a bit of volatility in our inventory levels as we make that transition.OperatorOur next question comes from the line of Bill Kirk with ROTH MKM.William Joseph KirkI wanted to ask about your inventory levels, not necessarily the distributor levels. Naturally, they're up from the glass shortage error. You highlighted that. However, if I go back further, I have the days up about 25% over fiscal '19. So I guess, how do you feel about the amount of inventory you hold?Leanne D. CunninghamSo what I would say and you can probably see some of this on a cash flow statement is that, again, as we compare to a prior year period where we were working really, really hard to get all of the supply chain replenished with finished goods inventory. We now have what we've talked about, all of the parts of the chain replenished, including our own inventory. We go into probably the important holiday selling period ready to supply that. So we believe by the time, it's a bit high right now, again, if you look for our own inventories. But as we go through the holiday period, we will, by the end of the year, our plan is that we have that work down and then our own inventories, too, are back in the normal. That's the last piece of the chain that we will be normalizing and we are ready to make those shipments for the holiday season.William Joseph KirkOkay. Excellent. And then there were 2 comments I want to try to tie together. I think Lawson, you made both of them. One was you mentioned that absent distributor inventory changes, net sales would have been above long-term growth expectations. But you also suggested that 1% depletions are below what people should expect going forward. So I guess how are the net sales ex-shipment timing above long term, but the completions below long term? I'm having a little trouble with those 2 comments.Lawson E. WhitingWell, that's just going straight to that Schedule D. So that's where we would I think Leanne said, if you adjust the distributor inventory topic, we'd be running it at an 8% top line. So that's the reference to the higher than sort of -- higher than historical norms in terms of sales growth. And that's the part that gets -- honestly gets us feeling confident because that number is pretty healthy. Now the 1%, I think we talked about that a few minutes ago, there's a lot of RTD movement in there, it's suppressing it. And the other part of it is volumes. We've taken a lot of pricing. I think that contributes to it too because we're getting more of our sales growth now is coming from pricing than it has over the historical periods. So it's a little bit of a balance.OperatorOur next question comes from the line of Stephen Powers with Deutsche Bank.Stephen Robert R. PowersI had 2 follow-ups on 2 different questions. The first one, just quickly on the agave topic, Leanne. Is there a way to summarize or quantify the percentage of the company's agave needs that you currently have the capacity to self-grow versus source externally?Leanne D. CunninghamWe've never shared that then and it changes over time depending on the category, demand, our finished goods inventory, our liquid inventory. So it does ebb and flow and we do grow our own and we supplement it with the external as we see demand above what we are able to grow ourselves and then our sourcing strategy that's implied in there. So again, we are excited that is finally coming down, that supply is coming on. We continue to think that, that's going to be a tailwind for us as we move through F '24 and well through F '25.Stephen Robert R. PowersOkay. Okay. Fair enough. And then probably Lawson for you. On Jack & Coke, I was wondering if you could talk at all about through the incremental distribution gains, new launches that are planned over the balance of the fiscal year, that should I think at least partially offset the tougher comp in the fourth quarter as you lap the U.S. launch. Any perspective there would be helpful. But also, love, if you have it, any details on consumer repeat rates or what have you. The trial has been great. Just curious as to how much of the demand we are seeing is incremental, like first-time trial versus repeated consumption.Lawson E. WhitingAll right. Let me answer the second one, first a little bit because it is -- we were obviously getting prepared for this, I knew that question would come. It was very difficult to get sort of terms of repeat purchase rates. It's just too early. We're getting massive distribution flow and that has been impressive and very good. And so we've essentially reached most of our goals in a pretty short period of time. But we just don't have that. We'll have that -- I assume by next quarter, we'll probably have some indications on that, that will be a little bit better, but it's just playing too early. Now as the year -- as the year goes on, the highlight or the highlights, I guess, we've launched in the U.K. We've launched in Spain and Poland, and all has gone pretty well, and I think we've talked about that. We're really, the big one that's coming is Germany. So that's going to happen in September. And Germany is a very large RTD market for Brown-Forman. And so sort of getting that right is obviously going to be very important, but that will be exciting to watch, and we'll see how that goes. And then Coca-Cola is taking it in a lot of other -- getting bigger in a lot of other markets, places like Japan, we talked about the Philippines, the U.K., Poland, Hungary, Netherlands, Ireland. So the international rollout continues throughout this fiscal year.OperatorThank you. Ladies and gentlemen, due to the interest of time, I would now like to turn the call back over to Sue for closing remarks.Susanne J. PerramThank you. And thank you to Lawson and Leanne, and thank you to everyone for joining us today for Brown-Forman's First Quarter Fiscal Year 2024 Earnings Call. If you have any additional questions, please contact us. We do look forward to presenting at the Barclays Global Consumer Staples Conference next week, and we hope to see many of you there. For those of you that are unable to attend the presentation will be made available as a webcast, accessible via the Brown-Forman corporate website under the section titled Investors, Events and Presentations. We also want to wish everyone an enjoyable weekend, particularly those in the United States that will be celebrating the Labor Day holiday. And on September 2, we hope you will join us in raising a glass as we say happy birthday to our founder, George Garvin Brown. Cheers, everyone. With that, this concludes our call.OperatorLadies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Thomson Reuters StreetEvents

Q1 2024 Brown-Forman Corp Earnings Call

https://finance.yahoo.com/news/q1-2024-brown-forman-corp-082459126.html

96ab8179-e3bb-379f-bb20-5562ec531fa0

BFAM

Costs for preschool and day care are still climbing in the US, bucking the national trend of cooling prices, and squeezing parents already in the grips of inflation.And this with another economic shock just around the corner when a federal grant program for childcare sunsets at the end of September.The average price for daycare and preschool across the country increased 6% in July compared to a year ago, according to the latest data from the Bureau of Labor Statistics. On top of this, headline inflation showed prices rose 3.2% over the prior year in July and 3% in June, the least in two years.But a double crunch of staff shortages and an end to pandemic funding is set to ratchet up the affordability challenges facing parents.This content is not available due to your privacy preferences.Update your settings here to see it."Huge costs are being shouldered by families," said Brad Wilson, CEO of Care.com, a marketplace for families to find help caring for children, seniors, pets, and more.A survey of child care providers by the National Association for the Education of Young Children found that 43% of childcare center directors and 37% of family childcare providers said they will be forced to raise tuition once the federal grants end.Childcare provider Bright Horizons (BFAM) reported earlier this month that the sunsetting of government funds would hurt its upcoming quarter. The company previously received about $9 million in government funding, but as the program expires that figure would shrink to as low as $5 million, the company said.More than 3 million children are projected to lose access to childcare nationwide, according to a recent report by the Century Foundation, which estimates that 70,000 childcare programs are likely to close once federal funding dries up.Providers that manage to stay open will likely raise prices to offset the loss of funding, adding to the burden already facing many families.Childcare currently costs about 14% of median household income, according to researchers at the Federal Reserve Bank of St. Louis. But the costs of childcare vary widely based on geography, family size, and the age of a family's children, government data shows.Story continuesA recent Department of Labor report found that on the lower end, the average cost of childcare adds up to $5,357 per year — or about 8% of median family income — for school-aged kids in residential care in small counties.But for infants in commercial daycare in big cities, the costs balloon to an average of $17,171, or nearly 20% of median family income. Expenses were especially acute for parents of infants, who require more staff supervision and smaller group sizes. And parents with multiple children face compounding costs.And while rates are elevated across the country, counties in California, Massachusetts, and New York were among the most financially burdensome. Center-based infant care in the Bronx registered the most expensive in the nation — taking up nearly half an average family's income.Pre-K students use electronic tablets at the South Education Center, Wednesday, April 2, 2014, in San Antonio. (Eric Gay/AP Photo)A 'persistent gap'Even as more signs emerge that the Federal Reserve's fight against inflation is headed in the right direction, prices are still increasing for consumers and markedly so for parents of young children.Bright Horizons, for instance, told investors earlier this month, "Labor costs and margins are pressured by higher wage rates, greater reliance on more costly agency staff, and inherent inefficiency at current occupancy levels."And yet childcare still remains a low-paying industry.Childcare workers who take care of infants, toddlers, and preschoolers and provide after-school care are among the lowest paid in the country, according to Labor Department data, making it hard for employers to attract workers.Labor Department data showed average hourly earnings for childcare workers was $19.95 for the month of June, about 40% less than the average hourly pay for all private-sector service workers, which stood at $33.50 an hour.This content is not available due to your privacy preferences.Update your settings here to see it.And this challenge in the childcare market had been playing out even before the shock of the pandemic, Chloe Gibbs, an economics professor at the University of Notre Dame, told Yahoo Finance Live.There has been a "persistent gap between the cost of providing high-quality care and the prices that families can afford," Gibbs added.Researchers point to more parents returning to in-office work, the diminished pool of childcare workers, and higher wages as factors that could continue to increase costs."Thousands of daycare centers permanently closed during the pandemic, expanding the childcare desert crisis across the country. Fewer slots drive up the costs," Wilson said."Additionally, the caregiving workforce continues to contract due to low wages and lack of benefits."In 2021, Congress passed the American Rescue Plan Act, which included $24 billion in grants to help stabilize the childcare industry and about $15 billion to help families afford care. But those funds are set to expire at the end of September, and a bitterly divided Washington is unlikely to grant additional financial relief.Democrats have called on President Joe Biden to address the end of childcare subsidies by including funds in an emergency spending package that Congress is expected to consider next month.Care.com's Wilson said the country needs more supportive policies at the state and federal levels to provide relief for families. He added that more employers should make childcare benefits table stakes, akin to health benefits."The headline here is that childcare is a systemic issue — one that isn't new but is getting worse," he said. "Without it, parents can't work."Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on Twitter @hshaban.Click here for the latest economic news and economic indicators to help you in your investing decisionsRead the latest financial and business news from Yahoo Finance

Yahoo Finance

Childcare costs keep surging with pandemic funding set to expire in September

https://finance.yahoo.com/news/childcare-costs-keep-surging-with-pandemic-funding-set-to-expire-in-september-093404171.html

a26e7d19-c732-4123-9cc1-cd41e65cac75

BFAM

Investors with an interest in Schools stocks have likely encountered both Lincoln Educational Services Corporation (LINC) and Bright Horizons Family Solutions (BFAM). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.Currently, Lincoln Educational Services Corporation has a Zacks Rank of #2 (Buy), while Bright Horizons Family Solutions has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that LINC likely has seen a stronger improvement to its earnings outlook than BFAM has recently. However, value investors will care about much more than just this.Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.LINC currently has a forward P/E ratio of 24.71, while BFAM has a forward P/E of 35.26. We also note that LINC has a PEG ratio of 1.65. 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. BFAM currently has a PEG ratio of 2.07.Another notable valuation metric for LINC is its P/B ratio of 1.75. 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, BFAM has a P/B of 4.80.Story continuesBased on these metrics and many more, LINC holds a Value grade of B, while BFAM has a Value grade of D.LINC stands above BFAM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LINC is the superior value option right now.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportLincoln Educational Services Corporation (LINC) : Free Stock Analysis ReportBright Horizons Family Solutions Inc. (BFAM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

LINC vs. BFAM: Which Stock Is the Better Value Option?

https://finance.yahoo.com/news/linc-vs-bfam-stock-better-154009675.html

aeefb9e1-791f-3c86-a079-558102779d91

BFC

Net income of $14.1 million and $24.8 million for the three and six months ended June 30, 2023, respectivelyEarnings per common share of $1.37 and $2.46 for the three and six months ended June 30, 2023, respectivelyAnnualized return on average assets of 1.38% and 1.25% for the three and six months ended June 30, 2023, respectivelyQuarterly cash dividend of $0.30 per share declared, matching the prior quarter and a 20.0% increase from the prior-year second quarterMANITOWOC, Wis., July 18, 2023 /PRNewswire/ -- Bank First Corporation (NASDAQ: BFC) ("Bank First" or the "Bank"), the holding company for Bank First, N.A., reported net income of $14.1 million, or $1.37 per share, for the second quarter of 2023, compared with net income of $11.7 million, or $1.55 per share, for the prior-year second quarter. For the six months ended June 30, 2023, Bank First earned $24.8 million, or $2.46 per share, compared to $21.8 million, or $2.89 per share for the same period in 2022. After removing the impact of one-time expenses related to acquisitions as well as gains and losses on sales of securities and other real estate owned ("OREO"), the Bank reported adjusted net income (non-GAAP) of $14.6 million, or $1.41 per share, for the second quarter of 2023, compared with $12.1 million, or $1.61 per share, for the prior-year second quarter. For the first six months of 2023 adjusted net income (non-GAAP) totaled $29.3 million, or $2.91 per share, compared to $22.6 million, or $2.99 per share for the same period in 2022.Operating ResultsNet interest income ("NII") during the second quarter of 2023 was $34.3 million, up $2.0 million from the previous quarter and up $10.8 million from the second quarter of 2022. The impact of purchase accounting increased NII by $2.5 million, or $0.18 per share after tax, during the second quarter of 2023, compared to $2.2 million, or $0.17 per share after tax, during the previous quarter and $0.4 million, or $0.04 per share after tax, during the second quarter of 2022.Story continuesNet interest margin ("NIM") was 3.77% for the second quarter of 2023, compared to 3.74% for the previous quarter and 3.21% for the second quarter of 2022. NII from purchase accounting increased NIM by 0.27%, 0.26% and 0.05% for each of these periods, respectively. While the Bank's average rate paid on interest-bearing liabilities continued to rise during the second quarter of 2023, average rates earned on interest-earning assets also saw a significant increase due to continual repricing of variable-rate loans as well as fixed-rate loans which matured and were renewed during the quarter. The beneficial impact of the Bank's continuing high percentage of noninterest-bearing deposits (32.3% of the Bank's total core deposits at June 30, 2023) also had a positive impact, adding 65 basis points to NIM during the second quarter of 2023 compared to 51 basis points and 14 basis points for the prior quarter and second quarter of 2022, respectively.Bank First did not record a provision for credit losses during the second quarter of 2023, compared to recording a provision of $4.2 million during the previous quarter and $0.5 million during the second quarter of 2022. Provision expense was $4.2 million for the first six months of 2023 compared to $1.7 million for the same period during 2022. The acquisition of the loan portfolio of Hometown Bancorp, Ltd. ("Hometown") during the first quarter of 2023 resulted in a day 1 provision for credit losses expense of $3.6 million as required under the Current Expected Credit Losses ("CECL") methodology, which the Bank adopted on January 1, 2023. The lack of a provision for credit losses during the second quarter of 2023 was the result of a negligible contraction in the Bank's loan portfolio during that quarter as well as continued strong asset quality metrics discussed later in this release. Recoveries of previously charged-off loans exceeded currently charged-off loans by $0.1 million through the first six months of 2023, compared to recoveries exceeding charge-offs by $0.7 million through the first six months of 2022.Noninterest income was $4.1 million for the second quarter of 2023, compared to $5.8 million and $5.6 million for the prior quarter and second quarter of 2022, respectively. Service charge income increased by $0.2 million, or 10.4%, and $0.3 million, or 22.6%, from the prior quarter and prior-year second quarter, respectively, as a result of the added scale from the acquisitions of Denmark Bancshares, Inc. ("Denmark") and Hometown. Income provided by the Bank's investments in Ansay & Associates and UFS increased by $0.1 million and $0.2 million from the prior-year second quarter, representing 16.0% and 36.8% increases, respectively, while each declined $0.1 million from the prior quarter. Loan servicing income from loans previously sold to the secondary market with servicing rights, and therefore servicing income, retained by the Bank increased by $0.1 million, or 17.8%, and $0.3 million, or 67.2%, from the prior quarter and prior-year second quarter, respectively. Sold but serviced loan portfolios acquired from Denmark and Hometown totaled $159.5 million and $343.6 million, respectively, leading to this increase in loan servicing income. The Bank experienced a $0.5 million negative valuation adjustment to its mortgage servicing rights asset during the second quarter of 2023 which compared unfavorably to $0.8 million and $1.5 million positive valuation adjustments during the prior quarter and prior-year second quarter, respectively. Finally, net losses on sales of OREO totaled $0.5 million during the second quarter of 2023 compared to no corresponding loss in the prior quarter and a negligible loss during the second quarter of 2022. These current quarter losses related to operating locations acquired from Hometown and Denmark, as well as one from a previously acquired institution, which were not utilized as operating locations by Bank First. At the start of the second quarter of 2023 Bank First held nine such buildings, but finished the quarter with only four as a result of these sales.Noninterest expense was $19.5 million in the second quarter of 2023, compared to $19.7 million during the prior quarter and $13.2 million during the second quarter of 2022. Most areas of noninterest expense have increased over the past four quarters as a result of added operational scale from the acquisitions of Denmark and Hometown, which increased the Bank's total assets by $1.13 billion, or 38.2%, from the end of the second quarter of 2022 to the end of the second quarter of 2023. In addition to this trend, expenses directly attributable to these acquisitions totaling $0.2 million, $1.3 million and $0.6 million during the second and first quarters of 2023 and second quarter of 2022, respectively, have caused volatility in several noninterest expense areas, most notably personnel, occupancy and outside service fee expenses. Core deposit intangible assets of $15.1 million and $16.5 million created by the Denmark and Hometown acquisitions, respectively, created an increase in amortization of intangible assets expense over the last several quarters.Balance SheetTotal assets were $4.09 billion at June 30, 2023, a $431.6 million increase from December 31, 2022, and a $1.13 billion increase from June 30, 2022. The preliminary fair value of assets acquired in the Denmark acquisition during the third quarter of 2022 and the Hometown acquisition during the first quarter of 2023 totaled approximately $687.5 million and $614.4 million, respectively.Total loans were $3.31 billion at June 30, 2023, up $420.5 million from December 31, 2022, and up $926.9 million from June 30, 2022.Total deposits, nearly all of which remain core deposits, were $3.41 billion at June 30, 2023, up $345.5 million from December 31, 2022, and up $804.3 million from June 30, 2022. As mentioned earlier in this release, noninterest-bearing demand deposits comprised 32.3% of the Bank's total core deposits at June 30, 2023, compared to 31.1% and 31.7% at December 31 and June 30, 2022, respectively.Asset QualityNonperforming assets at June 30, 2023 remained negligible, totaling $7.2 million compared to $6.7 million and $5.3 million at the end of the fourth and second quarters of 2022, respectively. Nonperforming assets to total assets ended the second quarter of 2023 at 0.18%, matching the level from the end of the fourth and second quarters of 2022. Nonperforming assets at June 30, 2023 included four properties valued at $2.2 million that were previously operating branch locations of acquired institutions which are no longer part of the Bank's branch network. These properties have all been listed for sale.Capital PositionStockholders' equity totaled $570.9 million at June 30, 2023, an increase of $117.8 million from the end of 2022 and $256.7 million from June 30, 2022. The acquisitions of Denmark and Hometown increased total stockholders' equity by $124.8 million and $115.1 million, respectively. Bank First's tangible common equity (non-GAAP) increased by $39.5 million and $110.2 million during the first half of 2023 and trailing twelve months, respectively. The Bank's book value per common share totaled $54.95 at June 30, 2023 compared to $50.22 at December 31, 2022 and $42.06 at June 30, 2022. Tangible book value per common share (non-GAAP) totaled $35.18 at June 30, 2023 compared to $36.14 at December 31, 2022 and $34.18 at June 30, 2022.Dividend DeclarationBank First's Board of Directors approved a quarterly cash dividend of $0.30 per common share, payable on October 4, 2023, to shareholders of record as of September 20, 2023. This dividend represents a 20.0% increase over the dividend declared one year earlier.For further information, contact:Kevin M LeMahieu, Chief Financial OfficerPhone: (920) 652-3200 / [email protected] CisionView original content:https://www.prnewswire.com/news-releases/bank-first-announces-net-income-for-the-second-quarter-of-2023-301879364.htmlSOURCE Bank First Corporation

PR Newswire

Bank First Announces Net Income for the Second Quarter of 2023

https://finance.yahoo.com/news/bank-first-announces-net-income-201000899.html

c7b63035-58c9-3080-9209-bb48492ab563

BFC

Bank First Corporation (NASDAQ:BFC) just released its latest quarterly report and things are not looking great. Results look to have been somewhat negative - revenue fell 2.3% short of analyst estimates at US$38m, and statutory earnings of US$1.37 per share missed forecasts by 2.5%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results. Check out our latest analysis for Bank First earnings-and-revenue-growthAfter the latest results, the dual analysts covering Bank First are now predicting revenues of US$155.1m in 2023. If met, this would reflect a meaningful 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 16% to US$5.33. Before this earnings report, the analysts had been forecasting revenues of US$153.9m and earnings per share (EPS) of US$5.35 in 2023. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$88.00.Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Bank First's growth to accelerate, with the forecast 24% annualised growth to the end of 2023 ranking favourably alongside historical growth of 14% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Bank First to grow faster than the wider industry.Story continuesThe Bottom LineThe most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.However, before you get too enthused, we've discovered 1 warning sign for Bank First that you should be aware of.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Join A Paid User Research SessionYou’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

Simply Wall St.

The Bank First Corporation (NASDAQ:BFC) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

https://finance.yahoo.com/news/bank-first-corporation-nasdaq-bfc-130555490.html

aa9430d3-e49a-3237-8b5d-a39a59f2dc1d

BFS

BETHESDA, Md., Aug. 3, 2023 /PRNewswire/ -- Saul Centers, Inc. (NYSE: BFS), an equity real estate investment trust ("REIT"), announced operating results for the quarter ended June 30, 2023 ("2023 Quarter").  Total revenue for the 2023 Quarter increased to $63.7 million from $60.3 million for the quarter ended June 30, 2022 ("2022 Quarter").  Net income increased to $17.2 million for the 2023 Quarter from $17.0 million for the 2022 Quarter primarily due to (a) higher commercial base rent of $1.3 million, (b) higher residential base rent of $0.8 million and (c) higher lease termination fees of $0.5 million, partially offset by (d) higher interest expense, net and amortization of deferred debt costs of $1.8 million and (e) lower recovery income, net of expenses of $0.7 million.  Net income available to common stockholders increased to $10.4 million, or $0.43 per basic and diluted share, for the 2023 Quarter from $10.2 million, or $0.43 per basic and diluted share, for the 2022 Quarter.Same property revenue increased $3.4 million, or 5.7%, and same property operating income increased $1.8 million, or 3.9%, for the 2023 Quarter compared to the 2022 Quarter. Same property revenue and same property operating income are non-GAAP financial measures of performance and improve the comparability of these measures by excluding the results of properties that were not in operation for the entirety of the comparable reporting periods. We define same property revenue as total revenue minus the revenue of properties not in operation for the entirety of the comparable reporting periods.  We define same property operating income as net income plus (a) interest expense, net and amortization of deferred debt costs, (b) depreciation and amortization of deferred leasing costs, (c) general and administrative expenses, (d) change in fair value of derivatives, and (e) loss on early extinguishment of debt minus (f) gains on sale of property and (g) the results of properties not in operation for the entirety of the comparable periods.  No properties were excluded from same property results. Shopping Center same property operating income for the 2023 Quarter totaled $34.5 million, a $0.7 million increase from the 2022 Quarter.  Shopping Center same property operating income increased primarily due to (a) higher base rent of $1.3 million, partially offset by (b) lower expense recoveries, net of expenses of $0.4 million and (c) lower percentage rent of $0.3 million.  Mixed-Use same property operating income totaled $12.7 million, a $1.1 million increase from the 2022 Quarter. Mixed-Use same property operating income increased primarily due to (a) higher residential base rent of $0.8 million and (b) higher lease termination fees of $0.5 million. Reconciliations of (a) total revenue to same property revenue and (b) net income to same property operating income are attached to this press release.Story continuesFunds from operations ("FFO") available to common stockholders and noncontrolling interests (after deducting preferred stock dividends) decreased to $26.5 million, or $0.79 and $0.78 per basic and diluted share, respectively, in the 2023 Quarter compared to $26.6 million, or $0.80 and $0.78 per basic and diluted share, respectively, in the 2022 Quarter.  FFO is a non-GAAP supplemental earnings measure that the Company considers meaningful in measuring its operating performance.  A reconciliation of net income to FFO is attached to this press release.  The decrease in FFO available to common stockholders and noncontrolling interests was primarily the result of (a) higher interest expense, net and amortization of deferred debt costs of $1.8 million, (b) lower recovery income, net of expenses of $0.7 million, (c) lower percentage rent of $0.1 million and (d) higher credit losses on operating lease receivables and corresponding reserves, net (collectively, $0.1 million), partially offset by (e) higher commercial base rent of $1.3 million, (f) higher residential base rent of $0.8 million and (g) higher lease termination fees of $0.5 million.As of June 30, 2023, 94.0% of the commercial portfolio was leased, compared to 92.6% as of June 30, 2022.  As of June 30, 2023, the residential portfolio was 99.2% leased compared to 98.1% as of June 30, 2022.For the six months ended June 30, 2023 ("2023 Period"), total revenue increased to $126.8 million from $122.4 million for the six months ended June 30, 2022 ("2022 Period").  Net income increased to $34.9 million for the 2023 Period from $34.5 million for the 2022 Period.  The increase in net income was primarily due to (a) higher commercial base rent of $2.0 million, (b) higher residential base rent of $1.8 million and (c) lower depreciation and amortization of deferred leasing costs of $0.6 million, partially offset by (d) higher interest expense, net and amortization of deferred debt costs of $3.0 million and (e) lower recovery income, net of expenses of $0.9 million. Net income available to common stockholders increased to $21.1 million, or $0.88 per basic and diluted share, for the 2023 Period compared to $20.8 million, or $0.87 per basic and diluted share, for the 2022 Period.No properties were excluded from same property results. Same property revenue increased $4.3 million, or 3.5%, and same property operating income increased $3.3 million, or 3.7% for the 2023 Period, compared to the 2022 Period.  Shopping Center same property operating income increased $1.6 million, or 2.4%, primarily due to (a) higher base rent of $2.0 million, partially offset by (b) lower lease termination fees of $0.3 million. Mixed-Use same property operating income increased $1.7 million, or 7.6%, primarily due to (a) higher residential base rent of $1.8 million and (b) higher lease termination fees of $0.5 million, partially offset by (c) lower recovery income, net of expenses of $0.7 million.FFO available to common stockholders and noncontrolling interests, after deducting preferred stock dividends decreased to $53.4 million, or $1.60 and $1.57 per basic and diluted share, respectively, in the 2023 Period from $53.6 million, or $1.61 and $1.58 per basic and diluted share, respectively, in the 2022 Period.  FFO available to common stockholders and noncontrolling interests decreased primarily due to (a) higher interest expense, net and amortization of deferred debt costs of $3.0 million, (b) lower recovery income, net of expenses of $0.9 million and (c) higher general and administrative expenses of $0.5 million, partially offset by (d) higher commercial base rent of $2.0 million, (e) higher residential base rent of $1.8 million and (f) higher lease termination fees of $0.2 million.As of July 31, 2023, the Company had collected 99.1% of contractual base rent and operating expense and real estate tax recoveries due during the 2023 Quarter.  For additional discussion of how the COVID-19 pandemic has impacted the Company's business, please see Part 1, Item 2 (Management's Discussion and Analysis of Financial Condition and Results of Operations) of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.Although we are and will continue to be actively engaged in rent collection efforts related to uncollected rent, and we continue to work with certain tenants who have requested rent deferrals, we can provide no assurance that such efforts or our efforts in future periods will be successful.  As of June 30, 2023, of the $9.4 million of rents previously deferred, $8.8 million has come due and $0.3 million has been written off. Of the amounts that have come due, $8.5 million, or approximately 96%, has been paid as of July 31, 2023. Saul Centers, Inc. is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland, which currently operates and manages a real estate portfolio of 61 properties, which includes (a) 50 community and neighborhood shopping centers and seven mixed-use properties with approximately 9.8 million square feet of leasable area and (b) four non-operating land and development properties. Over 85% of the Saul Centers' property operating income is generated by properties in the metropolitan Washington, D.C./Baltimore area.Safe Harbor StatementCertain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the federal securities laws.  For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.  Although the Company believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.  These factors include, but are not limited to, the risk factors described in our Annual Report on (i) Form 10-K for the year ended December 31, 2022 and (ii) our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 and include the following: (i) general adverse economic and local real estate conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (iv) the Company's ability to raise capital by selling its assets, (v) changes in governmental laws and regulations and management's ability to estimate the impact of such changes, (vi) the level and volatility of interest rates and management's ability to estimate the impact thereof, (vii) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and risks related to acquisitions not performing in accordance with our expectations, (viii) increases in operating costs, (ix) changes in the dividend policy for the Company's common and preferred stock and the Company's ability to pay dividends at current levels, (x) the reduction in the Company's income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, (xi) impairment charges, (xii) unanticipated changes in the Company's intention or ability to prepay certain debt prior to maturity and (xiii) an epidemic or pandemic (such as the outbreak and worldwide spread of COVID-19), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it, which may (as with COVID-19) precipitate or exacerbate one or more of the above-mentioned and/or other risks, and significantly disrupt or prevent us from operating our business in the ordinary course for an extended period.  Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release.  Except as may be required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events or otherwise.  You should carefully review the risks and risk factors included in (i) our Annual Report on Form 10-K for the year ended December 31, 2022 and (ii) our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. Saul Centers, Inc. Consolidated Balance Sheets (Unaudited)(Dollars in thousands, except per share amounts)June 30,2023December 31,2022AssetsReal estate investmentsLand$         511,529$         511,529Buildings and equipment1,590,7621,576,924Construction in progress410,966319,6832,513,2572,408,136Accumulated depreciation(708,770)(688,475)1,804,4871,719,661Cash and cash equivalents11,47313,279Accounts receivable and accrued income, net51,94956,323Deferred leasing costs, net22,79922,388Other assets15,98621,651Total assets$      1,906,694$      1,833,302LiabilitiesNotes payable, net$         951,505$         961,577Revolving credit facility payable, net217,328161,941Term loan facility payable, net99,45699,382Construction loan payable, net25,841—Accounts payable, accrued expenses and other liabilities54,21142,978Deferred income21,83623,169Dividends and distributions payable22,47322,453Total liabilities1,392,6501,311,500EquityPreferred stock, 1,000,000 shares authorized:Series D Cumulative Redeemable, 30,000 shares issued and outstanding75,00075,000Series E Cumulative Redeemable, 44,000 shares issued and outstanding110,000110,000Common stock, $0.01 par value, 40,000,000 shares authorized, 24,048,626 and 24,016,009 shares issued and outstanding, respectively240240Additional paid-in capital448,231446,301Partnership units in escrow39,65039,650Distributions in excess of accumulated net income(280,850)(273,559)Accumulated other comprehensive income3,1312,852Total Saul Centers, Inc. equity395,402400,484Noncontrolling interests118,642121,318Total equity514,044521,802Total liabilities and equity$      1,906,694$      1,833,302 Saul Centers, Inc. Consolidated Statements of Operations(In thousands, except per share amounts)Three Months Ended June 30,Six Months Ended June 30,2023202220232022Revenue(unaudited)(unaudited)Rental revenue$             62,002$             59,134$       123,830$           119,814Other1,7071,1592,9282,623Total revenue63,70960,293126,758122,437ExpensesProperty operating expenses8,9977,64117,78317,179Real estate taxes7,4537,15614,94814,574Interest expense, net and amortization of deferred debt costs12,27810,45724,09921,059Depreciation and amortization of deferred leasing costs12,11412,37724,13024,704General and administrative5,6785,66510,94610,433Total expenses46,52043,29691,90687,949Net Income17,18916,99734,85234,488Noncontrolling interestsIncome attributable to noncontrolling interests(4,027)(3,981)(8,188)(8,107)Net income attributable to Saul Centers, Inc.13,16213,01626,66426,381Preferred stock dividends(2,799)(2,799)(5,597)(5,597)Net income available to common stockholders$             10,363$             10,217$         21,067$             20,784Per share net income available to common stockholdersBasic and diluted$                  0.43$                  0.43$              0.88$                  0.87 Reconciliation of net income to FFO available to common stockholders and noncontrolling interests (1)Three Months Ended June 30,Six Months Ended June 30,(In thousands, except per share amounts)2023202220232022Net income$              17,189$              16,997$             34,852$             34,488Add:Real estate depreciation and amortization12,11412,37724,13024,704FFO29,30329,37458,98259,192Subtract:Preferred stock dividends(2,799)(2,799)(5,597)(5,597)FFO available to common stockholders and noncontrolling interests$              26,504$              26,575$             53,385$             53,595Weighted average shares and units:Basic33,34033,25633,33233,210Diluted (2)34,04933,98134,04033,933Basic FFO per share available to common stockholders and noncontrolling interests$                  0.79$                  0.80$                 1.60$                 1.61Diluted FFO per share available to common stockholders and noncontrolling interests$                  0.78$                  0.78$                 1.57$                 1.58(1) The National Association of Real Estate Investment Trusts ("Nareit") developed FFO as a relative non-GAAP financial measure of performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by NAREIT as net income, computed in accordance with GAAP, plus real estate depreciation and amortization, and excluding impairment charges on real estate assets and gains or losses from real estate dispositions. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs, which is disclosed in the Company's Consolidated Statements of Cash Flows for the applicable periods. There are no material legal or functional restrictions on the use of FFO. FFO should not be considered as an alternative to net income, its most directly comparable GAAP measure, as an indicator of the Company's operating performance, or as an alternative to cash flows as a measure of liquidity. Management considers FFO a meaningful supplemental measure of operating performance because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time (i.e. depreciation), which is contrary to what the Company believes occurs with its assets, and because industry analysts have accepted it as a performance measure. FFO may not be comparable to similarly titled measures employed by other REITs. (2) Beginning March 5, 2021, fully diluted shares and units includes 1,416,071 limited partnership units that were held in escrow related to the contribution of Twinbrook Quarter. Half of the units held in escrow were released on October 18, 2021. The remaining units held in escrow are scheduled to be released on October 18, 2023.  Reconciliation of revenue to same property revenue (3)(in thousands)Three Months Ended June 30,Six Months Ended June 30,2023202220232022(unaudited)(unaudited)Total revenue$              63,709$              60,293$           126,758$           122,437Less: Acquisitions, dispositions and development properties————Total same property revenue$              63,709$              60,293$           126,758$           122,437Shopping Centers$              43,974$              42,038$             88,199$             86,137Mixed-Use properties19,73518,25538,55936,300Total same property revenue$              63,709$              60,293$           126,758$           122,437Total Shopping Center revenue$              43,974$              42,038$             88,199$             86,137Less: Shopping Center acquisitions, dispositions and development properties————Total same Shopping Center revenue$              43,974$              42,038$             88,199$             86,137Total Mixed-Use property revenue$              19,735$              18,255$             38,559$             36,300Less: Mixed-Use acquisitions, dispositions and development properties————Total same Mixed-Use property revenue$              19,735$              18,255$             38,559$             36,300(3)Same property revenue is a non-GAAP financial measure of performance that management believes improves the comparability of reporting periods byexcluding the results of properties that were not in operation for the entirety of the comparable reporting periods.  Same property revenue adjusts propertyrevenue by subtracting the revenue of properties not in operation for the entirety of the comparable reporting periods.  Same property revenue is a measureof the operating performance of the Company's properties but does not measure the Company's performance as a whole.  Same property revenue shouldnot be considered as an alternative to total revenue, its most directly comparable GAAP measure, as an indicator of the Company's operating performance. Management considers same property revenue a meaningful supplemental measure of operating performance because it is not affected by the cost of theCompany's funding, the impact of depreciation and amortization expenses, gains or losses from the acquisition and sale of operating real estate assets,general and administrative expenses or other gains and losses that relate to ownership of the Company's properties.  Management believes the exclusion ofthese items from same property revenue is useful because the resulting measure captures the actual revenue generated and actual expenses incurred byoperating the Company's properties.  Other REITs may use different methodologies for calculating same property revenue.  Accordingly, the Company'ssame property revenue may not be comparable to those of other REITs. Reconciliation of net income to same property operating income (4)Three Months Ended June 30,Six Months Ended June 30,(In thousands)2023202220232022(unaudited)(unaudited)Net income$              17,189$              16,997$             34,852$             34,488Add: Interest expense, net and amortization of deferred debt costs12,27810,45724,09921,059Add: Depreciation and amortization of deferred leasing costs12,11412,37724,13024,704Add: General and administrative5,6785,66510,94610,433Property operating income47,25945,49694,02790,684Less: Acquisitions, dispositions and development properties————Total same property operating income$              47,259$              45,496$             94,027$             90,684Shopping Centers$              34,512$              33,854$             69,477$             67,861Mixed-Use properties12,74711,64224,55022,823Total same property operating income$              47,259$              45,496$             94,027$             90,684Shopping Center operating income$              34,512$              33,854$             69,477$             67,861Less: Shopping Center acquisitions, dispositions and development properties————Total same Shopping Center operating income$              34,512$              33,854$             69,477$             67,861Mixed-Use property operating income$              12,747$              11,642$             24,550$             22,823Less: Mixed-Use acquisitions, dispositions and development properties————Total same Mixed-Use property operating income$              12,747$              11,642$             24,550$             22,823(4)Same property operating income is a non-GAAP financial measure of performance that management believes improves the comparability of reportingperiods by excluding the results of properties that were not in operation for the entirety of the comparable reporting periods.  Same property operatingincome adjusts property operating income by subtracting the results of properties that were not in operation for the entirety of the comparable periods. Same property operating income is a measure of the operating performance of the Company's properties but does not measure the Company's performanceas a whole.  Same property operating income should not be considered as an alternative to property operating income, its most directly comparable GAAPmeasure, as an indicator of the Company's operating performance.  Management considers same property operating income a meaningful supplementalmeasure of operating performance because it is not affected by the cost of the Company's funding, the impact of depreciation and amortization expenses,gains or losses from the acquisition and sale of operating real estate assets, general and administrative expenses or other gains and losses that relate toownership of the Company's properties.  Management believes the exclusion of these items from property operating income is useful because the resultingmeasure captures the actual revenue generated and actual expenses incurred by operating the Company's properties. Other REITs may use different methodologies for calculating same property operating income. Accordingly, same property operating income may not be comparable to those of other REITs. CisionView original content:https://www.prnewswire.com/news-releases/saul-centers-inc-reports-second-quarter-2023-earnings-301893167.htmlSOURCE Saul Centers, Inc.

PR Newswire

Saul Centers, Inc. Reports Second Quarter 2023 Earnings

https://finance.yahoo.com/news/saul-centers-inc-reports-second-201800484.html

d92503d6-fdea-3d18-bfed-e9ab8c610a18

BFS

Saul Centers (BFS) came out with quarterly funds from operations (FFO) of $0.78 per share, beating the Zacks Consensus Estimate of $0.76 per share. This compares to FFO of $0.78 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 2.63%. A quarter ago, it was expected that this real estate investment trust involved mostly in shopping malls would post FFO of $0.75 per share when it actually produced FFO of $0.79, delivering a surprise of 5.33%.Over the last four quarters, the company has surpassed consensus FFO estimates two times.Saul Centers , which belongs to the Zacks REIT and Equity Trust - Retail industry, posted revenues of $63.71 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 1.54%. This compares to year-ago revenues of $60.29 million. The company has topped consensus revenue estimates three times over the last four quarters.The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.Saul Centers shares have lost about 6.3% since the beginning of the year versus the S&P 500's gain of 17.6%.What's Next for Saul Centers?While Saul Centers has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.Story continuesAhead of this earnings release, the estimate revisions trend for Saul Centers: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus FFO estimate is $0.76 on $63.69 million in revenues for the coming quarter and $3.05 on $255.36 million in revenues for the current fiscal year.Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Retail is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.One other stock from the broader Zacks Finance sector, HCI Group (HCI), is yet to report results for the quarter ended June 2023. The results are expected to be released on August 8.This property and casualty insurance holding company is expected to post quarterly earnings of $0.60 per share in its upcoming report, which represents a year-over-year change of +184.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.HCI Group's revenues are expected to be $122.85 million, down 2.5% from the year-ago quarter.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportSaul Centers, Inc. (BFS) : Free Stock Analysis ReportHCI Group, Inc. (HCI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Saul Centers (BFS) Q2 FFO and Revenues Top Estimates

https://finance.yahoo.com/news/saul-centers-bfs-q2-ffo-232512071.html

646e52b4-cabc-3bf7-8db0-1f5d8ac534be

BG

This article will shed light on the major vegetable oil-producing countries and their latest production amounts. You can skip our analysis of the vegetable oil industry and read Top 8 Vegetable Oil Producing Countries in the World.Oils extracted from soybean, palm, canola, sunflower, olive, and coconut plants serve as a cornerstone in the agricultural economies of the top vegetable oil producing countries in the world. Historically, the twin titans of vegetable oil production have been Indonesia and Malaysia due to their dominance in palm oil cultivation. As of the last assessment, Malaysia and Indonesia own 85% of the world's palm oil output. Likewise, China, the US, and Brazil are the leading soybean oil producers. Currently, Malaysia is the largest exporter of vegetable oils, with the Netherlands and China as its primary importers. According to OEC, Malaysia's vegetable oil exports amounted to $1.63 billion in 2021, and the Netherlands imported vegetable oil valued at $499 million in the same year. Notably, in addition to their obvious culinary uses, vegetable oils are also employed in biodiesel production. According to Precedence Research, the biodiesel market was $36.48 billion in 2022, and 96.4% of its worldwide revenue originated from the vegetable oil feedstock category. We have previously discussed the 15 Most Consumed Edible Oils in the World; read our article to discover which oils are most in demand.Companies Focusing on Innovation in the Vegetable Oil IndustryThe vegetable oil industry was valued at $212.6 billion in 2022 and is projected to grow at a CAGR of 4.8% between 2022 and 2027, reaching $268.9 billion by 2027. As market dynamics shift, with an increasing emphasis on sustainability and healthier alternatives, companies are consistently innovating to optimize vegetable oil yield. For instance, Archer-Daniels-Midland Company (NYSE:ADM), a titan in the vegetable oil industry, specializes in edible oil sourcing, processing, and distribution. The company leads in vegetable oil innovation and has invested in a biodiesel-focused soybean crushing plant. The soybean plant aims to produce 600 million pounds of refined soybean oil, a portion of which will be utilized as renewable diesel feedstock.Story continuesBesides biodiesel, ADM-SIO, a subsidiary of Archer-Daniels-Midland Company (NYSE:ADM), has introduced sustainable personal care solutions derived from hydrogenated vegetable oils. A prevalent texturization agent in personal care products like soaps, lipsticks, and lotions is stearic acid; this agent traditionally comes from the hydrolysis of animal fat. However, a more sustainable method involves using hydrogenated vegetable oils, such as cottonseed, palm, olive, and sunflower oils. As a result, Archer-Daniels-Midland Company (NYSE:ADM) produces texturization agents from these hydrogenated vegetable oils for use in cosmetics and personal care items, offering a more eco-friendly alternative to those derived from animal fats. Archer-Daniels-Midland Company (NYSE:ADM) is also among the vegan stocks billionaires are loading up on; the company currently has 12 billionaire investors and has invested $300 million to increase its production capacity to meet the rising demand for alternative proteins. As the company foresees a $125 billion market for alternative proteins by 2030, it plans to capitalize on it.Similarly, Bunge Limited (NYSE:BG) is refining its strategies for oilseed processing and oil extraction efficiency. Bunge Limited (NYSE:BG)'s venture into high-oleic oils is notable, addressing the increasing demand for healthier vegetable oil alternatives. High-oleic vegetable oils, which have a greater percentage of monounsaturated oleic acid than standard oils, possess an extended shelf life and are more cost-effective. The stability and skin-friendly attributes of high-oleic oils also make them a preferred choice for formulations in creams, lotions, and other cosmetic products.Bunge Limited (NYSE:BG) and Viterra, a Glencore Plc-backed marketer and handler of grains and oilseeds, have recently entered into an agreement to form a combined global agribusiness solutions company. The agreement is based on a cash and stock transaction, and the merger aims to create an innovative agribusiness company to meet the demands of increasingly complex markets.As the union will increase both companies' market foothold, they plan to better manage seasonal cycles and supply chains. According to Bunge's announcement, Viterra shareholders will receive 65.6 million shares of Bunge stock, with an aggregate value of approximately $6.2 billion, along with $2.0 billion in cash. The terms represent a consideration mix of around 75% Bunge stock and 25% cash. Moreover, as part of the deal, Bunge Limited will assume $9.8 billion of Viterra's debt, which is associated with approximately $9.0 billion of highly liquid, readily marketable inventories.We have already done a detailed overview of the 12 Biggest Palm Oil Companies In The World; read this insightful piece to know this sector's central entities. Let’s now move towards the top vegetable oil producing countries. Top 20 Vegetable Oil Producing Countries In The WorldTop 20 Vegetable Oil Producing Countries In The WorldOur MethodologyWe identified the countries with the highest vegetable oil output using the Food and Agriculture Organization of the United Nations (UN FAO) database. After shortlisting the top 20 vegetable oil producing countries, we obtained their oil production data for 2020, 2019, and 2018 from the UN FAO. We then averaged these annual production figures to determine these nations' standard vegetable oil yield.Based on our findings, here are the leading nations in the vegetable oil industry:20. The Philippines Average Annual Vegetable Oil Production: 1.35 million tons The Philippines has vast coconut plantations; naturally, it's a leading producer of coconut oil. In 2020, the country's largest share of vegetable oil production came from coconut oil (almost 0.96 million tons), followed by maize oil. The country's tropical climate and archipelagic geography provide an ideal environment for coconut cultivation. Beyond mere production, the Philippines has also invested in refining, marketing, and research to cement its position in coconut oil exports.19. Japan Average Annual Vegetable Oil Production: 1.61 million tons While Japan is not traditionally recognized as an agricultural powerhouse, it has a specialized niche in vegetable oil production. Canola (rapeseed) and soybean oils are predominant in the country and are deeply rooted in Japanese culinary traditions. Notably, the country employs advanced oil extraction and refining technologies to ensure consistent quality.18. Colombia Average Annual Vegetable Oil Production: 1.84 million tons Colombia's tropical climate and fertile plains are favorable for palm cultivation, and as a result, the country's annual palm oil production is close to 1 million tons. Other top vegetable oils in Colombia are palm kernel oil and soybean oil.17. Turkey Average Annual Vegetable Oil Production: 1.937 million tonsTurkey's dominance in the vegetable oil sector comes from its extensive sunflower and olive plantations. The country's diverse climates, ranging from Mediterranean to temperate, allow for the cultivation of various oil crops. The country’s most important vegetable oil is sunflower oil, with a production of over 1 million tons, followed by olive and cottonseed oils. Turkish producers emphasize tradition, especially in olive oil, and combine ancient practices with modern technology to position the country as a quality-driven producer in the global market.16. MexicoAverage Annual Vegetable Oil Production: 1.96 million tons Mexico's vegetable oil industry leans heavily on its rich tradition of cultivating soybeans, coconuts, and safflowers. The country has also benefited from its strategic location and a diversified agricultural landscape that allows producers to experiment with new seed varieties. For instance, Mexican producers began growing canola around 2000 and have had success with its yield. Today, a significant share of Mexico’s total vegetable oil output comes from canola.15. NigeriaAverage Annual Vegetable Oil Production: 2.04 million tons Nigeria is Africa's top palm oil producer, and the country's palm oil yield currently stands at 1.28 million tons. The Niger Delta region, characterized by its tropical climate, is particularly conducive to oil palm cultivation. Although the vegetable oil industry faced challenges in past decades, recent revitalization efforts by the government and stakeholders are steadily restoring Nigeria's position in the palm oil market. Besides palm oil, the country also boasts a significant yield of groundnut and soybean oil.14. France Average Annual Vegetable Oil Production: 2.49 million tons France's vegetable oil industry thrives on its agricultural landscape; notably, the country's agricultural production value is the highest in the EU. Rapeseed oil production in France amounts to 1.7 million tons, thanks to its vast rapeseed fields. French vegetable oil producers are renowned for maintaining high standards of quality and sustainability. Coupled with strong regulatory frameworks, France has consistently ranked among the top European vegetable oil producers.13. Spain Average Annual Vegetable Oil Production: 2.613 million tonsSpain and olive oil are synonymous, as the country ranks first among the countries that produce the best extra virgin olive oil. Also, according to the International Olive Council (IOC), Spain produces 40% of global olive oil. The Iberian Peninsula boasts extensive olive groves and benefits from a Mediterranean climate. Spain's dedication to quality assurance and appellation control guarantees its esteemed position in the global market.12. Thailand Average Annual Vegetable Oil Production: 3.61 million tons Thailand has a strong foothold in the vegetable oil industry because of its vast palm oil and coconut oil production. The country's tropical climate and extensive coastline create an ideal environment for these crops. According to the UN FAO, Thailand’s palm oil production reaches up to 2.6 million tons annually.11. Germany Average Annual Vegetable Oil Production: 4.41 million tons Germany produces close to 3.7 million tons of rapeseed (canola) oil each year, owing to its temperate climate and fertile soils. Moreover, the nation's agricultural infrastructure and emphasis on quality have helped it carve a niche in the global vegetable oil market.10. CanadaAverage Annual Vegetable Oil Production: 4.71 million tons Canada is a global leader in canola oil production, and the country's current canola oil production stands at 4.4 million tons. While Canada also produces soybean, maize, and linseed oil, their yields are significantly lower than that of canola oil. The country’s impressive canola oil yield can be attributed to its cooler climate.9. IndiaAverage Annual Vegetable Oil Production: 6.004 million tonsIndia's agriculture is among the most diverse in the world, a result of its vast expanse. The nation produces significant amounts of cotton, canola, soybean, mustard, and coconut and naturally capitalizes on the oil from these seeds. According to the UN FAO, India’s primary vegetable oils are canola, soybean, and cottonseed oils. Systematic breeding programs have improved the quality of oils produced in the country, emphasizing purity and nutritional content.Click to continue reading Top 8 Vegetable Oil Producing Countries In The World.Suggested Articles:15 Most Consumed Crops in the World15 Worst Countries in the World for Vegetarians20 Countries With Highest Rates Of VegetariansDisclosure: None. Top 20 Vegetable Oil Producing Countries in the World was originally published at Insider Monkey.

Insider Monkey

Top 20 Vegetable Oil Producing Countries In The World

https://finance.yahoo.com/news/top-20-vegetable-oil-producing-122051285.html

029568c7-368b-373a-a0f3-a67ee7a1ff1b

BG

Key InsightsBunge's estimated fair value is US$185 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$112 suggests Bunge is potentially 39% undervaluedOur fair value estimate is 34% higher than Bunge's analyst price target of US$138Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Bunge Limited (NYSE:BG) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. See our latest analysis for Bunge The MethodWe use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate:10-year free cash flow (FCF) estimate2024202520262027202820292030203120322033 Levered FCF ($, Millions) US$1.36bUS$1.29bUS$1.26bUS$1.24bUS$1.24bUS$1.25bUS$1.26bUS$1.28bUS$1.30bUS$1.32bGrowth Rate Estimate SourceAnalyst x2Analyst x1Est @ -2.59%Est @ -1.17%Est @ -0.17%Est @ 0.52%Est @ 1.01%Est @ 1.35%Est @ 1.59%Est @ 1.76% Present Value ($, Millions) Discounted @ 6.2% US$1.3kUS$1.1kUS$1.1kUS$980US$921US$873US$830US$793US$759US$727("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$9.4bStory continuesAfter calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.2%. We discount the terminal cash flows to today's value at a cost of equity of 6.2%.Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = US$1.3b× (1 + 2.2%) ÷ (6.2%– 2.2%) = US$34bPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= US$34b÷ ( 1 + 6.2%)10= US$19bThe total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$28b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$112, the company appears quite undervalued at a 39% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.dcfImportant AssumptionsThe calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Bunge as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.2%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.SWOT Analysis for BungeStrengthEarnings growth over the past year exceeded the industry.Debt is well covered by earnings.WeaknessEarnings growth over the past year is below its 5-year average.Dividend is low compared to the top 25% of dividend payers in the Food market.OpportunityGood value based on P/E ratio and estimated fair value.ThreatDebt is not well covered by operating cash flow.Paying a dividend but company has no free cash flows.Annual earnings are forecast to decline for the next 3 years.Moving On:Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Why is the intrinsic value higher than the current share price? For Bunge, we've compiled three further aspects you should further research:Risks: We feel that you should assess the 4 warning signs for Bunge (2 are concerning!) we've flagged before making an investment in the company.Future Earnings: How does BG's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Bunge Limited (NYSE:BG) Shares Could Be 39% Below Their Intrinsic Value Estimate

https://finance.yahoo.com/news/bunge-limited-nyse-bg-shares-104949033.html

e4a9ec18-44a4-315c-9dee-73812421a747

BGS

Focus on strategic pricing actions has been favoring B&G Foods, Inc. BGS. The shelf-stable and frozen food and household product company is on track with prudent buyouts to grow its portfolio. Meanwhile, the company undertakes strategic divestitures to focus on growth areas.Let’s discuss this in detail.Favorable Pricing Fuels GrowthIn the second quarter of fiscal 2023, B&G Foods benefited from higher pricing.  Pricing realization and the impact of product mix contributed $54.1 million to base business net sales. The company’s pricing actions caught up with the higher costs and inflation during the quarter. The gross margin expanded to 21.8% from 16% reported in the year-ago quarter.  Efficient pricing has been protecting B&G Foods’ margins. In the fiscal second quarter, adjusted EBITDA as a percentage of net sales stood at 14.6%, up from 11.3% reported in the year-ago quarter. In its last earnings call, management highlighted that improved margins resulted from favorable pricing and a moderation in input costs and logistics inflation. The company continues to see inflation across most of its portfolio, although the pace of inflation has slowed.Zacks Investment ResearchImage Source: Zacks Investment ResearchPortfolio Refining EffortsB&G Foods has a successful track record of acquisition-led growth. On May 5, 2023, it acquired the frozen vegetable manufacturing operations of Growers Express, LLC., which works well for the company’s Green Giant brand operations. The company acquired the Crisco brand in December 2020. Before this, it acquired Farmwise (in February 2020), while BGS also acquired an integrated retail baking powder maker, Clabber Girl (in May 2019). The company has also acquired notable brands such as Green Giants, Victoria, Mama Mary, TrueNorth, McCann’s and Ortega.The company’s focus on reshaping its portfolio is also evident from its focus on making prudent divestitures. To this end, B&G Foods sold the Back to Nature brand in January 2023 – in a bid to exit the small, fragmented lower, margin snacks portfolio. Management is analyzing other divestiture possibilities to enhance portfolio focus and reduce debt.Story continuesIs All Rosy For B&G Foods?B&G Foods has been struggling with lower volume, hurting its sales performance. In the fiscal second quarter, the company’s sales declined 1.9% to $469.6 million on Back to Nature divestiture. Base business net sales, which inched up slightly, were largely offset by decreased unit volume and unfavorable currency rates.At the time of its fiscal second-quarter results, management lowered its net sales outlook for fiscal 2023. The company now anticipates net sales in the band of $2.11-$2.13 billion compared with the previous guidance of $2.13-$2.17 billion. In fiscal 2022, net sales amounted to $2,163 million ($2.16 billion).Nevertheless, focus on growth endeavors will likely help B&G Foods’ stay afloat amid such hurdles.The Zacks Rank #3 (Hold) company’s shares have gained 11.6% year to date against the industry’s 9.5% decline.Some Solid Staple BetsMGP Ingredients MGPI, which produces and markets ingredients and distillery products, currently sports a Zacks Rank #1 (Strong Buy). MGPI has a trailing four-quarter earnings surprise of 18% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for MGP Ingredients’ current financial-year sales and earnings per share suggests growth of 5.8% and 10.4%, respectively, from the corresponding year-ago reported figures.Flowers Foods FLO emphasizes providing high-quality baked items. The company currently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 2.3%.The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales suggests growth of 6.7% from the year-ago period’s actuals. FLO has a trailing four-quarter earnings surprise of 7.6% on average.Utz Brands Inc. UTZ manufactures a diverse portfolio of salty snacks, carrying a Zacks Rank #2. UTZ’s expected EPS growth rate for three to five years is 11.4%.The Zacks Consensus Estimate for Utz Brands’ current fiscal year sales suggests growth of 3.7% from the year-ago reported numbers. UTZ has a trailing four-quarter earnings surprise of 12.3% on average.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportB&G Foods, Inc. (BGS) : Free Stock Analysis ReportFlowers Foods, Inc. (FLO) : Free Stock Analysis ReportMGP Ingredients, Inc. (MGPI) : Free Stock Analysis ReportUtz Brands, Inc. (UTZ) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

B&G Foods (BGS) Gains on Pricing Actions & Prudent Buyouts

https://finance.yahoo.com/news/b-g-foods-bgs-gains-160700734.html

608066b2-4cf3-3691-92a7-ffd154ad3fa3

BGS

In this article, we look at the top 25 spice producing countries in the world. You can skip our detailed analysis on the spice industry and head over directly to the Top 10 Spice Producing Countries in the World.Spices are used in both fresh and dry form for seasoning and preservation of food, as well as adding flavor to it. They are the 618th most traded product in the world, according to The Observatory of Economic Complexity (OEC).In addition to being used by the food and beverages industry, spices are also now being widely utilized by the cosmetics industry due to their organic and healing properties. A number of herbs and spices are used as ingredients in the production of perfumes and colognes, such as cinnamon, vanilla, saffron, chili pepper, ginger, coriander, and cardamom. Terre d'Hermès first used black pepper in its Hermès Twilly perfume to create a warm and sensual fragrance. On the other hand, vanilla is widely used as an ingredient in several other perfume brands, including but not limited to Saint Laurent, Dior, and Chanel.The global spices and seasoning industry is estimated to have had a value of approximately $18 billion in 2021, and is projected to grow to $25.4 billion by 2029 at a compound annual growth rate of 4.67%, as noted by Fortune Business Insights. Asia on a whole constitutes more than 80% of all production of spices, a major chunk of it coming from southern Asia. Some of the largest spice companies in the region include India’s Everest Food Products Pvt Ltd and Mahashian Di Hatti Private Limited (MDH), which both together hold around 30% share of the country's spice market.Everest's products are stocked by more than 400,000 stores nationwide. According to the company’s website, 20 million households in India use Everest’s products every day and more than 3.7 billion packs of Everest are sold each year. The company’s product range comprises more than 200 products, which includes 52 different spices that are sold across 80 countries. Shan Foods, headquartered in Karachi, Pakistan is another large spice company that sells a variety of pure and mixed spices, and also maintains a product line of cooking pastes, sauces, and dessert mixes. Founded in 1981, the company exports its products to 65 countries across 5 continents. Shan Foods generated a revenue of $490 million in 2021.Story continuesSpice Market in the United StatesThe United States is the largest spice importing country in the world, with an import bill of $1.99 billion in 2022, an increase of 7.16% compared to 2021. Wide use and demand for spices in the country is forcing companies in the spice industry to adopt new trends to become more efficient and what they do.McCormick & Company, Incorporated (NYSE:MKC), the largest spice company in the world, employs artificial intelligence to come up with new flavors to tantalize consumer taste buds. The company in 2019 announced that it was working with IBM to build an AI system that mines 40 years of data and information related to spices to help the management come up with new spice combinations. McCormick & Company, Incorporated (NYSE:MKC) is the global leader in the manufacturing and distribution of spices, seasoning mixes, and other flavor-enhancing products to retailers and food businesses. Its products are sold in over 170 countries. In 2022, McCormick & Company, Incorporated (NYSE:MKC) recorded $6.35 billion in sales.On the other hand, several corporations are venturing into the spice segment by establishing units dedicated to the commodity. American food company B&G Foods, Inc. (NYSE:BGS) acquired Spice Island, Tone’s and Durkee brands of the spice and seasoning business of ACH Food Companies in 2016 for $365 million. The rationale behind B&G Foods, Inc. (NYSE:BGS)'s decision was to venture into the spice industry and reap rewards due to its high demand in the United States.At the time of acquisition, B&G Foods, Inc. (NYSE:BGS) projected its new business unit to generate over $220 million per annum in revenues after it gets fully integrated. The company announced to reorganize itself into four units in 2022 – spices and seasonings, frozen and vegetables, meals, and specialty. The spice segment is forecasted to make 18% of all net sales.The Kraft Heinz Company (NASDAQ:KHC), this year, announced plans to bring Just Spice, Europe’s favorite spice brand to the United States, a year and a half after it acquired a majority stake in the business. Just Spices sells mixed spice blends to consumers through online and retail channels. The Kraft Heinz Company (NASDAQ:KHC) in 2021 took over 85% of the shareholding of the Germany-based startup that had a product portfolio of 170 items, generating sales of €60 million. Rafael Oliveira, the international zone president of The Kraft Heinz Company (NASDAQ:KHC) described the deal as an opportunity to further accelerate his company’s growth and anticipate trends in consumer preferences.Kitchenware providers are also looking to take advantage of the business potential offered by the spice industry. Lifetime Brands, Inc. (NASDAQ:LCUT), for instance, offers a Free Spice Refill incentive for its customers if they purchase its spice rack from any authorized dealer. After doing so, customers that register with the company get free spice refills for the next five years, excluding shipping costs. Lifetime Brands, Inc. (NASDAQ:LCUT) is a listed kitchenware company whose shares are traded on NASDAQ.MethodologyWe have ranked the top 25 spice producing countries in the world using data released by The Food and Agriculture Organization (FAO) of the United Nations in 2021. This is the latest year for which data on food production is available. Items ranging from pepper, chili, capsicum, ginger, garlic and coriander to anise, badian, cumin, nutmeg, cardamom, cloves and cinnamon among several other spice and aromatic crops were considered for this article. Countries are ranked in ascending order of spice production volume in tonnes. Moreover, we have also included information related to spice trade for each country in our list. The figures were sourced from The Observatory of Economic Complexity (OEC).If interested, also take a look at the 15 Largest Spice Companies in the World.Top 25 spice producing countries in the worldLet’s now head over to the list of the top spice producing countries in the world.25. Burkina FasoProduction (tonnes) in 2021: 74,381Burkina Faso is a country in West Africa. Spices are the 64th most exported products of the country, which generated $677,000 in revenue in 2021. Germany is the largest importer of spices grown in Burkina Faso.24. PeruProduction (tonnes) in 2021: 88,140Peru ranks 24th on the list of top spice producing countries in the world. Spices commonly grown and found in the South American country include black pepper, cinnamon, basil, chincho, cloves, and oregano among others.23. EgyptProduction (tonnes) in 2021: 89,239Next up is Egypt, where the spices and herbs market is valued at $150 million, according to Market Research Future. Cumin is the most commonly used spice in Egypt. It is also termed as the country’s ‘staple spice’ for its wide use in local dishes.22. MoroccoProduction (tonnes) in 2021: 89,748Morocco is a country located in North Africa. It exported spices worth nearly $10 million in 2021. The five most common spices in Morocco are cumin, saffron, ginger, turmeric, and black pepper.21. RussiaProduction (tonnes) in 2021: 90,063Russian spices like caraway seeds, chervil, and sorrel among various others add great tastes, flavors and zests to local cuisines. The country is among the 21st largest producers of spices in the world.20. CameroonProduction (tonnes) in 2021: 104,256Spice production in Cameroon is projected to rise at a compound annual growth rate of 0.7% between 2021 and 2026. The country exported $441,000 in spices in 2021. The three top buyers of Cameroon’s spices were France, Canada, and the United States.19. GhanaProduction (tonnes) in 2021: 111,871Garlic, chili peppers, and cumin are the most used spices in Ghanian cuisine. Spices are the 166th most exported product by Ghana, and earned the country $631,000 in exports in 2021. The United States, United Kingdom, Netherlands, Canada, and Australia were the top five buyers of Ghana's spices in 2021.18. BrazilProduction (tonnes) in 2021: 118,057Brazil is the largest producer of coffee, and also ranks among the top spice producing countries in the world, with an estimated production volume of nearly 0.12 million tonnes in 2021. The country exports spices worth over $60 million each year.17. BeninProduction (tonnes) in 2021: 137,226Benin, located in West Africa, is a major producer of chillies and peppers. Cinnamon, cloves, nutmegs, chillies and pepper are some of the spices that are grown in Benin.16. Côte d'IvoireProduction (tonnes) in 2021: 138,327Côte d'Ivoire, also known as Ivory Coast, has had a steady output of spices, over 120,000 tonnes each year. The country is located in West Africa, and borders Burkina Faso to the north – which is another large spice producing country. More than 40,000 tonnes of spices are consumed in Ivory Coast each year.15. Sri LankaProduction (tonnes) in 2021: 138,464Sri Lanka is one of the largest and finest producers of tea. A number of spices are also grown in Sri Lanka, such as nutmeg, cardamom, clove, and pepper. It exported spices worth over $9 million in 2021. The United Kingdom is the largest importer of Sri Lankan spices.14. MyanmarProduction (tonnes) in 2021: 147,949A wide variety of spices are grown in Myanmar, including garlic, ginger, turmeric, chili and coriander. The country’s spice production is projected to grow at a compound annual growth rate of 0.4% between 2021 and 2026.13. MexicoProduction (tonnes) in 2021: 213,378Mexico does not only rank among the largest spice producing countries in the world, it also has a high spice consumption rate, estimated to be 150,000 tonnes each year. Production of spice in Mexico has grown by 3% per annum since 2017. Coriander, Mexican oregano, anise, cacao, and cinnamon are some of the most commonly used spices in Mexican cuisine.12. YemenProduction (tonnes) in 2021: 214,411Yemen is a country in the Middle East that grows a large volume of spices such as cardamom, chili peppers, and cumin. Yemen exported nearly $700,000 worth of spices in 2021. Neighboring Saudi Arabia was the largest buyer of Yemeni spices and had an import order of $435,000 that year.11. PakistanProduction (tonnes) in 2021: 219,739Pakistan generated $87 million in export revenue of spices in 2021. Major destinations Pakistan exports its spices to are Saudi Arabia, the United States, and the United Kingdom. The country is also home to one of the world's most familiar spices or masala brand, Shan Foods.Click to continue reading and see the Top 10 Spice Producing Countries in the World.Suggested Articles:Top 20 Rice Producing Countries In The World20 Largest Silver Producing Countries In The WorldTop 15 Flower Exporting Countries in the WorldDisclosure: None. Top 25 Spice Producing Countries in the World is originally published on Insider Monkey.

Insider Monkey

Top 25 Spice Producing Countries in the World

https://finance.yahoo.com/news/top-25-spice-producing-countries-070939081.html

05445258-2709-37aa-a03c-80b99f525df5

BGXX

The cannabis sector is one of the most challenging sectors in the market, leading to speculative cannabis stocks. If you’ve been following it for the last few years, you know the roller coaster ride investors have ridden. In addition to legislative challenges, issues on the macroeconomic side have pushed investors to be on the defensive, pushing companies down to their all-time low.This increased investors’ fears and helped limit the access to potential capital for these companies to access from institutional investors and the banking system. While it is understandable that the cannabis sector has high risk, it would require a promise of superior returns to be considered at least.Investing in cannabis is not something investors will load up on the road to financial success. That said, a long-term investor willing to bet on an industry experiencing market lows thanks to banking and federal constraints may also expect rewards that they may not get from other industries. That’s why it’s important to speculate on the right cannabis stocks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLet’s look at three cannabis stocks that we see potential right now.Tilray Brands (TLRY)Young green medicinal marijuana plant in a pot after a rain fall shallow depth of field with focus on leaf; cannabis stocksSource: gvictoria / Shutterstock.comTilray Brands, Inc. (NASDAQ:TLRY) is a cannabis-lifestyle, pharmaceutical, and consumer packaged goods company that operates in four key segments: Cannabis business, Distribution business, Wellness business, and Beverage alcohol business. TLRY grows, cultivates, and distributes medical and adult-use cannabis. The company also conducts its purchase and resale of pharmaceutical and wellness products. Not only that, Tilray has aggressively expanded its alcohol and beverage business and has ended up being one of the most diversified Cannabis producers.Today, Tilray is one of the biggest names in the Canadian recreational sector, as it has consolidated most players in the market through acquisitions. Tilray resulted from a reverse merger with Aphria and taking the name. Other notable acquisitions were Hexo, SweetWater (Aphria’s strategic acquisition into the alcohol business), Truss Beverage (remaining 57.6% stake), and MedMen. Further, Tilray has recently acquired eight Anheuser-Busch beer and beverage brands to boost its alcohol and beverage business. This makes it one of those speculative cannabis stocks to buy.Story continuesTilray management’s careful approach to expansion has allowed it to reach profitability faster than any of its Canadian peers and dominate its home market, making this a potential high-reward cannabis investment.SNDL (SNDL)A marijuana leaf rests atop one of dozens of aluminum beverage cans.Source: Bukhta Yurii / Shutterstock.comSNDL (NASDAQ:SNDL) is a Canada-based retailer specializing in the cannabis retail and operations, liquor, and investment segments. SNDL’s main retail banners include Liquor Depot, Value Buds, Ace Liquor, Wine and Beyond, and Spirit Leaf. It’s one of those speculative cannabis stocks.SNDL’s cannabis retail and operations segment consists of the cultivation and distribution to the adult-use and medical markets in Canada and the sale of recreational cannabis in its stores and franchises. The company also deploys capital to investment opportunities that arise to help grow its business strategically.SNDL’s acquisition of Valens is poised to help enhance the company’s offering by utilizing its low-cost manufacturing capabilities. Furthermore, this creates a vertical integration set to generate more significant revenue with an optimized manufacturing process that Valens brings to the table. SNDL plans to reconfigure its focus on higher-margin products and brands with the acquisition’s completion. This helps further increase the company’s profitability and is one of the choices for risky cannabis stock picks.Bright Green Corp (BGXX)Cannabis leaf on dollar bill. Cannabis StocksSource: ShutterstockBright Green Corporation (NASDAQ:BGXX) is a pharmaceutical company that provides cannabis, its related products, and other legal medicinal plant-based therapies. The company is heavily engaged in the propagation of recreation and medical use of cannabis. BGXX’s lineup includes a variety of products requested for authorized sales, including cannabis flowers, concentrates, capsules, tinctures, cannabis vape pens, and other cannabis-related products.BGXX is one of the very few companies under federal and state laws allowed by the United States government to legally grow, manufacture, and sell cannabis and cannabis-related products for research and pharmaceutical applications alongside affiliated exports. Its approval from the DEA as a bulk manufacturer has placed the company on a pedestal, making it a high-potential investment for anyone willing to take a bit of risk. Last, Bright Green Corp’s stock has also been included in the Russell 3000 index, adding another milestone for 2023 – and making it one of our favorite speculative cannabis stocks.On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing GuidelinesRick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.More From InvestorPlaceMusk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.ChatGPT IPO Could Shock the World, Make This Move Before the AnnouncementIt doesn’t matter if you have $500 or $5 million. Do this now.The post High Risk, High Reward: 3 Cannabis Stocks for the Bold Trader appeared first on InvestorPlace.

InvestorPlace

High Risk, High Reward: 3 Cannabis Stocks for the Bold Trader

https://finance.yahoo.com/news/high-risk-high-reward-3-142400279.html

8493eb02-b16b-3192-8990-42baf85f2f49

BGXX

Bright Green CorporationThe Company has settled a $3.6 million related party loan, representing all outstanding indebtedness, in shares of common stock and warrants, valued at $1.28 per share and accompanying warrantGRANTS, N.M., Sept. 05, 2023 (GLOBE NEWSWIRE) -- Bright Green Corporation (Nasdaq: BGXX) (“Bright Green” or “the Company”), one of few companies selected by the U.S. government to grow, manufacture, and sell, legally under federal and state laws, cannabis and cannabis-related products for research, pharmaceutical applications and affiliated export, is pleased to announce that it has entered into an Agreement to pay down the Company’s outstanding indebtedness (the “Note”) with the Company’s founder, largest shareholder, and member of the Board of Directors ("Lender”), effective September 1, 2023.Under the terms of the Agreement, the $3.6 million outstanding balance of the Note was cancelled and the Company’s obligations thereunder were satisfied in full. In consideration, the Company issued Lender 2,827,960 unregistered shares of common stock, and unregistered warrants to purchase up to 2,827,960 shares of common stock at an exercise price of $3.00 per share. Each share of common stock was issued together with one warrant at a combined effective conversion price of $1.28 per share and related warrant ($1.15 per share and $0.13 per warrant).The conversion price of $1.15 per share represents a 246% premium to the August 31st closing market price of the Company’s common stock.The warrants may be exercised at any time, in whole or in part, and expire on the earlier of (i) the 45th day after the closing price per share of Common Stock is $3.00 or greater or (ii) August 31, 2024.Notwithstanding the cancellation of the outstanding balance under the Note, the Note will remain in full force and effect, and the Company may borrow up to $15 million from Lender at the Company’s election, pursuant to the terms and subject to the conditions set forth in the Note.Story continuesLynn Stockwell stated, “I am truly excited about the future of Bright Green Corporation. As a committed and devoted stakeholder, I firmly believe in the company’s mission of producing U.S. manufactured pharm aceutical API from DEA scheduled substances. This Agreement reaffirms my confidence in Bright Green’s potential for growth, the value of the Company, and its exceptional position in the market. I am proud to be part of a company that is dedicated to making a meaningful impact while building shareholder value long term.”About Bright GreenBright Green is one of the very few companies selected by the US government to grow, manufacture, and sell, legally under federal and state laws, cannabis and cannabis-related products for research, pharmaceutical applications and affiliated export. Our approval based on already agreed terms from the U.S. Drug Enforcement Administration gives us the opportunity to advance our vision of improving quality of life through the opportunities presented by cannabis-derived therapies. To learn more, visit www.brightgreen.us.Media [email protected] Relations [email protected] Note Regarding Forward-Looking StatementsThis press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management as of such date. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control, including the price of the Company’s common stock, and availability of future borrowings under the line of credit and related note described herein. The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well as other reports and documents that may be filed by the Company from time to time with the Securities and Exchange Commission (the “SEC”). The forward-looking statements included in this press release represent the Company’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. The Company undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release. Additional information regarding these and other factors that could affect the Company’s results is included in the Company’s SEC filings, which may be obtained by visiting the SEC's website at www.sec.gov.

GlobeNewswire

Bright Green Announces Agreement to Settle Debt in Shares at a Premium

https://finance.yahoo.com/news/bright-green-announces-agreement-settle-183000564.html

c21c05ea-8186-396c-98f9-a8b9e3f36409

BHE

ParticipantsJeffrey W. Benck; President, CEO & Director; Benchmark Electronics, Inc.Paul Mansky; IR & Corporate Development Officer; Benchmark Electronics, Inc.Roop K. Lakkaraju; Executive VP & CFO; Benchmark Electronics, Inc.Anja Marie Theresa Soderstrom; Senior Equity Research Analyst; Sidoti & Company, LLCJaeson Allen Min Schmidt; Senior Research Analyst & Director of Research; Lake Street Capital Markets, LLC, Research DivisionJames Andrew Ricchiuti; Senior Analyst; Needham & Company, LLC, Research DivisionSteven Bryant Fox; Founder & CEO; Fox Advisors LLCPresentationOperatorGood day, and welcome to Benchmark Electronics Inc. Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please, note this event is being recorded. I would now like to turn the conference over to Paul Mansky with Benchmark Electronics. Please go ahead.Paul ManskyThank you, Betsy, and thanks, everyone, for joining us today for Benchmark's Second Quarter Fiscal Year 2023 Earnings Call. Joining me this afternoon are Jeff Benck, CEO and President; and Roop Lakkaraju, CFO. After the market closed today, we issued an earnings release pertaining to our financial performance for the second quarter of 2023, and we have prepared a presentation that we will reference on this call. Both are available on the Investor Relations section on our website at bench.com. This call is being webcast live, and a replay will be available following the call. The company has provided a reconciliation of our GAAP to non-GAAP measures in the earnings release as well as in the appendix to the presentation. Please take a moment to review the forward-looking statements advice on Slide 2 in the presentation. During our call, we will discuss forward-looking information. As a reminder, any of today's remarks, which are not statements of historical fact are forward-looking statements which involve risks and uncertainties as described in our press releases and SEC filings. Actual results may differ materially from these statements most notably due to ongoing supply chain constraints, macroeconomic conditions and semi-cap equipment spending. Benchmark undertakes no obligation to update any forward-looking statements. For today's call, Jeff will begin by providing a summary of our first quarter results. Roop will then discuss our detailed financial results and our third quarter guidance. Jeff will then return to provide more insight on demand trends by sector, business wins and then closing remarks. If you'll please turn to Slide 3, I will turn the call over to our CEO, Jeff Benck.Story continuesJeffrey W. BenckThank you, Paul. Good afternoon, and thanks to everyone for joining our call today. The company executed well in the second quarter as we delivered revenue and operating income above the high end of guidance despite continued weakness in the semi-cap market and lingering component availability issues that impacted some output in the quarter. Specifically, we grew revenue 12% year-over-year in the quarter when excluding supply chain premiums or SCP. We believe assessing our revenue growth, excluding the 0 margin pass-through revenue more accurately reflects company performance. As an example, SCP was $17 million in Q2 2023, and $91 million in Q2 2022. This represents a $74 million year-over-year reduction. Excluding SCP, non-GAAP gross margins were 9.4%, up 1.5 points from the prior year, and non-GAAP operating margins were 4.1%, up from 3.6% last year. This enabled us to deliver non-GAAP EPS at the higher end of our guidance range. Inventory came down modestly in the quarter, but we still have more to do to achieve our days of inventory goals. Lastly, we generated positive operating and free cash flow in the quarter. Looking at the drivers of our 12% growth, we saw double-digit year-over-year performance from 4 of our 6 sectors, including advanced computing, industrials, medical and next-generation communications. Although our sequential performance in semi cap was encouraging, industry commentary around potential timing of the broader market recovery appears to be shifting deeper into 2024. Nonetheless, we firmly believe in the constructive long-term secular trends underpinning our anticipated future growth in this sector and are investing accordingly. We remain cautiously optimistic on the demand profile across our diversified sectors, which we believe will allow us to weather the current market uncertainty while continuing to deliver to our profitability targets. Before turning it over to Roop, I'd like to highlight a couple of key announcements we've recently made, reinforcing our ability to attract world-class talent to benchmark. David Moezidis has joined us as Chief Commercial Officer, which is a new role at Benchmark. David's 30-plus years of industry experience in operations, engineering, sales and marketing, across tech and specifically within EMS, making an incredibly valuable strategic addition to the team. David will direct Benchmarks' commercial strategy, including vertical market sector plans and our global go-to-market approach, leveraging his deep expertise to drive continued business growth. At the same time, we also announced Dave Valkanoff has joined as our new Chief Operating Officer. Dave is a global manufacturing executive known for a successful track record in driving lean principles and operational excellence. With over 30 years of experience in sectors such as aerospace and defense, industrial, automotive and semi cap. He brings extensive global operations knowledge to our team. We are very pleased to have both executives on board, and I'm confident they will make a significant impact. I also want to thank our current Chief Revenue Officer, Rob Crawford for his contributions over the past 4 years and wish him well in his retirement set to begin in August. Now let me pass it over to Roop to share more detail on the June quarter and our guidance for Q3.Roop K. LakkarajuThank you, Jeff, and good afternoon. Please turn to Slide 5 for our revenue by market sector. Total Benchmark revenue was $733 million in Q2, which is 6% higher sequentially and 1% higher year-over-year. As Jeff mentioned, excluding the effect of SCP, revenue was up 12% year-over-year in the period. A reconciliation of this and our sector level performance can be found in the Appendix section of the presentation materials. Turning to Slide 6. Medical revenue for the second quarter was up 14% versus the prior year. Our growth was fueled by strength in existing programs and new programs ramping. Semi cap revenue decreased 4% year-over-year, in line with our expectations. A&D revenue was down 10% year-over-year. Defense continues to be challenged by supply availability, coupled with the timing of program ramps. This was partially offset by growth in commercial aerospace. Industrial's revenue for the second quarter increased 28% year-over-year as new customer programs are ramping in areas, including test and measurement and energy efficiency. Advanced computing increased 19% year-over-year as we benefited from the continued execution of mobile high-performance computing programs. In the next-generation communications sector, Revenue was up 53% year-over-year. Our year-over-year performance was driven by continued secular strength in 5G infrastructure and satellite communications. In the second quarter, our top 10 customers represented 52% of total revenue. Please turn to Slide 7. Our GAAP earnings per share for the quarter was $0.39, our GAAP results included restructuring and other onetime costs totaling $3.3 million. For Q2, our non-GAAP gross margin of 9.1%, decreased 10 basis points sequentially and primarily due to lower revenue within our semi-cap sector. Excluding SCP, our gross margin was 9.4%, which was in line with guidance. Our SG&A was $37.7 million, down sequentially because of cost actions taken in the first half, coupled with lower variable compensation. Non-GAAP operating margin was 4%, excluding SCP, operating margin was 4.1%, representing the high end of our guidance range. In Q2 2023, a non-GAAP effective tax rate was 21.2%. For the quarter, non-GAAP EPS of $0.48 was $0.02 higher than the midpoint of our guidance. Non-GAAP ROIC in the second quarter was 9.5%. Please turn to Slide 8 to discuss the effects of SCP on a trended basis. In Q2, SCP declined to $17 million versus $18 million in Q1 and $91 million in Q2 2022. Excluding SCP, our revenue in the second quarter was $716 million, a sequential increase of $39 million or 6% and a year-over-year increase of $79 million or 12%. Please turn to Slide 9 to review our cash conversion cycle performance. Our cash conversion cycle days were 103 in the second quarter compared to 109 days in Q1. The largest contributor to the decrease was a reduction in inventory. Total inventory decreased sequentially in Q2 by $22 million. Turning to Slide 10 for an update on liquidity and capital allocation. In Q2, we generated $25 million of cash from operations and invested $8 million in CapEx to support continued growth at our Mexico facilities and enhanced capabilities in our Precision Technologies business unit. We expect our CapEx spending in Q3 2023 to be between $10 million and $15 million. For the full year 2023, we expect CapEx to range between $65 million to $75 million. Our cash balance on June 30 was $245 million. As of June 30, we had $129 million outstanding on our term loan, $300 million outstanding borrowings against our revolver and $246 million available to borrow under our revolver. In Q2, we paid our regular quarterly cash dividend of $5.9 million. Please turn to Slide 11 for a review of our third quarter 2023 guidance. We expect revenue, excluding SCP to range from $680 million to $720 million. SG&A expense will range between $36 million and $38 million. Excluding SCP, our non-GAAP operating margin range is forecasted to be 4.7% to 4.9%. As a reminder, this includes approximately 50 basis points of stock-based compensation. Our non-GAAP guidance excludes the impact of $1.6 million in monetization of intangible assets and $1.1 million to $1.5 million of estimated restructuring and other costs. Our non-GAAP diluted earnings per share is expected to be in the range of $0.51 to $0.59 or a midpoint of $0.55. Other expenses net are expected to be approximately $9 million due primarily to interest expense, which has grown due to the higher rate environment. We expect that for Q3, our non-GAAP effective tax rate will be between 19% and 21% and the weighted average share count of 35.7 million. And with that, I'll turn the call back over to you, Jeff.Jeffrey W. BenckThanks, Roop. Please turn to Slide 13. All metrics I referenced here are related to demand trends we are seeing by sector are excluding the effect of SCP. In medical, we continue to see strong demand from our existing products while also ramping new programs I'm particularly encouraged by the strong demand we are seeing in the defibrillator subsector as the benefits of having these life-saving devices readily accessible are becoming increasingly well understood. We continue to build on our future success during this past quarter, securing new wins across our offerings. For example, in manufacturing, we won a program to deliver subassembly views in medical sterilization equipment. Within engineering, we won an engagement to design fluid pumps used in field applications by the DOD. Lastly, we were pleased to be awarded a collaborative design engagement with the company to develop cardiovascular treatment devices. With the continued underlying medical product demand strength and a steadily improving supply chain, we expect solid year-over-year growth in the period and on a full year basis. Within semi cap, we're encouraged by the better performance in the quarter and believe the March quarter may have been our low point for semi cap revenue in the year. However, as I mentioned earlier, we have heard from several OEMs that the timing of the broader market recovery may be pushed out a bit further than initially anticipated. For Q3, we expect revenue to be relatively flat sequentially. However, the long-term secular growth drivers are still very much intact, including silicon penetration, the quest for ever decreasing node sizes and the global efforts to build a broader foundry ecosystem. We continue to invest in this space to capture disproportionate share as the next upswing commences. Moving to A&D sector. We continue to score new wins in defense. Just this quarter, we secured a manufacturing win to provide actuation control modules for an extension extended range guided multiple rocket system. Additionally, we expanded an existing engagement with the U.S. Army to manufacture camera systems used in live round tank gunnery training ranges. Within commercial aero, both demand and our ability to meet it continues to improve for us. Combined, we expect Q3 A&D revenues to be up double digits sequentially and year-over-year. Turning to Industrials, we position ourselves well to participate in megatrends, specifically automation, test and measurement and energy efficiency solutions. Examples of this in Q2 include a manufacturing win for geospatial devices, which enable efficiency and productivity in the agriculture and construction industries. At the same time, our design engineering teams have secured new business collaborating with customers in areas such as additive manufacturing, environmental controls and security detection platforms. Looking forward, supply conditions in industrials are showing improvement, which we anticipate will continue. We expect sector revenue to grow year-over-year in the quarter and for the full year. In advanced computing, revenues were largely consistent with our guidance provided last quarter. As a reminder, our advanced computing efforts are not in support of cloud or data center infrastructure. Rather, we helped build some of the largest and most sophisticated high-performance computing machines in the world. These are often government agency sponsored and by definition, relatively macro resilience. We highlighted last quarter that we expected to complete a significant project during the second quarter. This happened translating to a sequential decline in revenue, albeit still up nearly 20% year-over-year. Our third quarter will be the first full quarter without revenue from that completed project, translating to expectations of sequential and year-over-year declines. With the strong first half performance, coupled with a new win expected to ramp in Q4, we continue to anticipate growth in this sector on a full year basis. Lastly, and next-generation communications, we remain cautious on this sector given the carrier and operator CapEx spending rationalization that is going on in the near term. We remain well positioned to capture investment in broadband infrastructure, demand for satellite communications and new broadband connectivity programs focused on rural areas. However, some of these initiatives are exposed to infrastructure deployment delays and macro sensitivity. As such, we expect second half revenue performance to be challenged with sequential declines in each of the next 2 quarters. Although on a full year basis, we continue to expect growth. In summary, please turn to Slide 14. While there is always room for improvement, I'm pleased with the team's execution in the quarter. Despite the macro challenges and semi-cap cyclicality. Excluding SCP, benchmark delivered 12% annual revenue growth in the quarter. At the same time, non-GAAP operating income grew 28% or more than twice the rate of revenue growth. The working capital initiatives we discussed on last quarter's call are beginning to bear fruit with positive operating and free cash flow generated in the quarter. Looking to the second half, we expect to continue to reduce inventory and maintain our focus on operational execution, particularly as supply chains are expected to continue to improve, enabling us to fulfill more of our customer demand. We will protect investment from future growth sectors, particularly semi cap, given our conviction in the long-term secular drivers. Although as uncertain as to the shape of the recovery, we know it will come, and we will be ready for it. These collective efforts give us continued confidence we can grow revenue in the high single digits in 2023 when excluding the effects of SCP. With that, I'll now turn the call over to the operator to conduct our Q&A session.Question and Answer SessionOperator(Operator Instructions) The first question today comes from Jim Ricchiuti with Needham & Company.James Andrew RicchiutiJust a question on the supply chain premium revenue that you're talking about. You may have given it, but what are you anticipating for Q3? I believe you said $17 million is what it was in Q2?Roop K. LakkarajuThat's right, Jim. This is Roop. So Q2 was $17 million. We actually didn't guide SCP for Q3 or Q4. So the guide we gave is exclusive of any SCP as we've done throughout the year. As we've seen, though, the one thing I guess, I'll comment incrementally is just if you think about going back to Q2 of '22, we were at a high point of $91 million. We've seen it sequentially decline. We do think -- we anticipate that, that should continue to do so in the second part of this year, but we haven't specifically guided to that.James Andrew RicchiutiGot it. And any color you can give us on how we should be thinking about gross margins just given some of the mix you're anticipating for the current quarter?Roop K. LakkarajuYes. Actually, gross margins should continue to strengthen as we think about ramp coming through, getting up to more volume level, more distributed revenue throughout our network. We anticipate growing that gross margin towards the high 9s, potentially down at 10% or so. So we feel pretty good about that distribution.James Andrew RicchiutiGot it. And Jeff, with respect to some of the market verticals, where do you have the most confidence. I mean you can anticipate -- I think we've all been anticipating a pickup in A&D, but it seems like supply chain has been weighing on that, and maybe it's also your customers just dealing with their own issues. But apart from commercial...Jeffrey W. BenckYes, happy to provide some color a little bit across the verticals. As we talked about semi-cap, maybe initially, we saw a bigger recovery in the second half of '23. And we were talking to our OEMs, we see that pushing into 2024. So we're not expecting a significant step-up in semi. But A&D is improving. Certainly, supply chain is freeing up there, and we're continuing to ramp up there with a number of customers on the commercial side. Seeing particular strength, but even some new defense stuff happening for us. So look for that to be a bit better in the second half.And the medical and industrial are both still good growth sectors for us, held up well in the current environment. We see pockets of -- depending on the segment the customer is in, where there might be softness, but we also see strength in other areas. We talked a little bit about that with medical around like the defibrillator space, which seems like everybody wants a defibrillator at anywhere you can put it, right, because they're really great life-saving devices. And so see strength there as well. With -- just turning to comms, we've seen some push out of some larger infrastructure deployment that is probably weighing a little bit on that, but we think we're well positioned, and we've had a strong first half. So that's actually going to serve us well, but not -- maybe not as strong in the second half of '23. But hopefully, that color helps.OperatorNext question comes from Jaeson Schmidt with Lake Street.Jaeson Allen Min SchmidtI just want to follow up on the supply chain. I know it was down $1 million sequentially in Q2. And it sounds like you expect further declines from a supply chain premium standpoint in the second half. But just at a high level, has the supply chain environment continued to be a little weaker than you guys originally expected? Or kind of how should we think about the improvement here in the second half in that supply chain premiums?Jeffrey W. BenckI would say, broadly, it's continued to improve. Instead of what used to be a year ago with thousands of parts, earlier this year might have been hundreds and now we're -- maybe it's a handful of things that are gating us. We still -- there's still some long lead times there, and there are still pockets where (inaudible) or some, even some of the legacy technology, where all the supply went to some of the newer nodes has been a challenge and continues to be challenging. So it's hard to communicate to customers, "Hey, everything is great because there are still areas where we've seen it." What we have seen a significant drop in supply chain premiums, as Roop has talked about it. We kind of see that being sequentially down quarter-to-quarter in Q3. It's getting to the point where it's getting smaller as we go. And so that ability to forecast it perfectly is part of the reason that we're saying, look, let's just guide without it, recognizing that it's a downward trend. It was down over $74 million in Q2. So we're kind of wrapping around where there's not as much need to be leveraging these brokers and going there because the broad-based supply chain has improved.Jaeson Allen Min SchmidtOkay. That's helpful. And when you look at your backlog or business pipeline, have you seen any significant changes when it comes to kind of decommit or cancellation standpoint?Jeffrey W. BenckI mean it's -- broadly, I'd say it's holding very consistent. I mean we talked about a high single-digit growth in the year, which is kind of in line with where our thoughts have been. There are pockets where a customer, depending on what they're participating in or what's going on with them may see some softness. So that's certainly weighing on certain areas. We kind of touched on it a little bit in, for example, in communication, next-gen comps that we've seen, some there. But overall, I would say our diversified portfolio is serving us well. We're seeing that -- we believe when you exclude supply chain premiums from a product shipment, we expect 4 of 6 sectors to grow for the full year. And from that standpoint, we're seeing things hold up pretty well.Jaeson Allen Min SchmidtOkay. And then just the last 1 for me, and I'll jump back in the queue. Just following up on sort of those comments on your communications segment. I'm correct, I thought you guys originally expected that to be down sequentially in Q2. It obviously was up. What was sort of the primary driver there? Was it just sort of deployment scheduling or shipment timing?Roop K. LakkarajuYes, that's fair to say, Jaeson, it's kind of some one-off. We got some parts that helped us produce a little more in the quarter and got it out the door. So that was helpful for us on that comps. As we indicated in the latest kind of sequential view based on our sector outlook, we are expecting comps to come down from a sequential standpoint. So a little bit of just that timing and seeing how customer demand is profiling through the year.OperatorThe next question comes from Steven Fox with Fox Advisors.Steven Bryant FoxA couple of questions from me. First off, on the semi-cap comments. Can you just sort of maybe dice it a little bit closer in terms of new programs versus existing programs for the second half of the year? Are you seeing new programs get pushed out or just certain types of new programs get pushed out? Or is it all related to just sort of end markets of existing programs? How would you sort of describe the mix of what you're seeing if things are going to stay flattish?Jeffrey W. BenckYes. I would say it's a little bit of both. And it's good that you kind of -- that you dug into that, a little color, a little bit because we just had a super strong year of bookings last year. And a number of those programs certainly expected a lot of activity in '23 and some of those have pushed out. I will say they're still active in the sense that they are next-generation tools.So there's no fear about losing a win or whatever, but it's like where an OEM might have said, "Hey, let's build 6 tools this year." Maybe now we're building on, right? So that's weighed a little bit. And we sort of anticipated going when I -- when we kind of recasted in February, we probably anticipated that we would see more activity on the new wind front, building in '23. And I would say, while there's certainly a lot of programs going on, it has moved a bit to the right.And then just -- we have a broader footprint of wins across tool sets, whether it's lithography or deposition or a lot of the front-end processes. And so we have certainly seen from a broad based, right, that, that business came down. And it stabilized. And certainly, in Q3, we're guiding kind of sequentially flattish in the third quarter. It's just -- we sort of anticipate initially that fourth quarter, we'd be preparing for a huge ramp up in Q4.And now we're just here and signals that, "Hey, it may be a little longer." While there's certainly demand, and we're seeing some strength in some of the areas that are under restriction on some of the legacy nodes. We're seeing people purchase those tools, and there's OEMs who are looking to fulfill that. But I also would say some of the benefits like of the CHIPS Act, I'm not -- I don't see that at the beginning of '24. It just recently was published that some of the builds here in Phoenix Valley are taking longer just because of labor force and such to build those new fabs here in the Valley as an example. So still long in the space and believe that it's -- that the upswing when it happens will be significant. But right now, we're just not calling it in '23.Steven Bryant FoxUnderstood. And then on the aerospace and defense, if I have this right -- I'm sorry, I don't have the slides in front of me, but it sounded like aerospace and the defense piece was down quarter-over-quarter and commercial aero was better. Do I have that fact right, first of all?Roop K. LakkarajuYes, that's a fair way to characterize it, Steve.Jeffrey W. BenckWe did have 1 defense program that we thought would start in 2Q that's push into 3Q. So that was certainly a factor in that weakness in defense.Steven Bryant FoxOkay. And then my other part of that question on that number is just I know that there's very specific part shortages that are especially challenging to get. Do you guys feel like you are performing in line with the market there. The only reason I ask is because it sounds like one of your peers was able to grow in aerospace defense, and you guys seem to have a problem in the defense piece quarter-over-quarter?Roop K. LakkarajuYes. I think it really comes down to program-specific kind of considerations there. And some of our programs, and we've commented in our sector outlook, we got some program ramps that are expected to come later in the year, these sort of things. So part of it is what programs are on specifically, whether it could be growth. The other piece is we've got some new programs, new wins that came in, in previous quarters that are ramping that we expect to see throughout '23. What we can say is commercial aero has performed more consistently through the year so far and has been in an upward trend cycle.Operator(Operator Instructions) The next question comes from Anja Soderstrom with Sidoti.Anja Marie Theresa SoderstromI'm just curious, could you quantify how much revenue do you left behind your -- the supply chain challenges?Jeffrey W. BenckI don't know that we specifically called it out, but it was north of $100 million that we've kind of carried over. It's come down some over the last 6 months. I don't know if we addressed it on last quarter's call. Obviously, as supply chain frees up, we will fulfill more than that, but we still have a fair amount that is unfulfilled rolling into the second half of this year.Anja Marie Theresa SoderstromOkay. And what other opportunities do you have to improve the cash flow other than bringing down inventory?Roop K. LakkarajuWell, Anja, I mean, I think we've got a number of items. Part of it is inventory. We have to work with the inventory we have. And so we're actively working with our customers on aligning the inventory levels and the demand schedule to be clear to build these things. And I think those are really the primary. With that said, we obviously make sure that aero collections were on top of these sort of things.The other things we're doing more strategically in terms of strategic suppliers and terms, aligning those terms more effectively as well as finding greater flexibility from that standpoint within those terms. So it's multifaceted kind of a set of challenges to drive that cash flow. But the biggest priority is inventory alignment to clear to build and then just bleeding down that inventory as we continue to grow.Anja Marie Theresa SoderstromOkay. And then just lastly, in terms of the semi-cap and that being pushed out a bit, how do you think that's going to affect your margins in terms of capacity utilization?Roop K. LakkarajuYes. Maybe I'll start in terms of -- from a margin standpoint, maybe Jeff can add incremental color. I think as we've talked about semi-cap, especially the precision and the screening side and semi cap overall for us is a very strong market sector from a gross margin standpoint. We are liking investments on a concurrent basis. That's why CapEx as we've provided the range that we have. And we're going to continue to invest in semi-cap because it is cyclical, and that market upturn is coming. .What we have done is paced out those investments effectively such that when they come online, how they might be a drag on margins is reduced or limited. And then, of course, as Jeff said, we've got some new programs that are starting to ramp there. And so all of this, combined with the expectation that it will recover is going to bode well from an overall enterprise margin standpoint. In the interim, we're very cognizant of managing the margin profile as we work through this softness.Jeffrey W. BenckYes. Maybe I would just add, on the EMS side of the business, operational efficiency is improving, which is great. I think the incremental revenue that we've seen in product shipments has given -- helps in areas of absorption. So our margins are performing quite well. You saw that in 2Q, and you'll see that in the guide without the recovery of semi-cap. So we kind of look forward to -- semi-cap is on the higher end of our corporate gross margin. So when we're dealing with the downturn now, that's putting some pressure there that we've been able to successfully kind of overcome. So we're really looking forward to the opportunity to continue to drive that further towards our strategic goal as semi-cap comes back with significant growth. So maybe that's how we think about it.OperatorThis concludes our question-and-answer session. I would like to turn the conference back over to Paul Mansky, for any closing remarks.Paul ManskyThank you, Betsy, and thank you, everyone, for participating at Benchmark's Second Quarter 2023 Earnings Call. Before we go, I'd like to remind listeners that we'll be attending the 12th Annual Needham Virtual Industrial Tech, Robotics & Clean Tech one-on-one conference on August 7. With that, thank you again for your support, and we look forward to speaking with you soon.OperatorThe conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Thomson Reuters StreetEvents

Q2 2023 Benchmark Electronics Inc Earnings Call

https://finance.yahoo.com/news/q2-2023-benchmark-electronics-inc-103728015.html

ae496c4d-f0e3-3bd1-be60-4cfc117c00d9

BHE

U.S. stocks have rallied since the start of the year thanks to the significant performance of large tech stocks that dabble in Artificial Intelligence (AI). Big-cap tech companies have pushed the market to bullish territory while their prices reach new heights. Several industries are already reaping the benefits of AI integration, increasing efficiency and production by notable margins. Furthermore, the technology’s widening applications open new opportunities for companies looking into facilitating raw material production, component manufacture, and implementation solutions for AI leaders. It might be worth looking at these companies as we pivot from the more expensive AI stocks. So let’s look at some tech stocks ready to take off.Benchmark Electronics (BHE)Illustration of geometric mask surrounded by tech symbols against blue background representing artificial intelligence (AI)Source: shutterstock.com/Andrey SuslovBenchmark Electronics, Inc. (NYSE:BHE) is a technology solutions company offering product manufacturing services for design and engineering. BHE’s services offer various products as an OMS, EMS, and ODM provider that ranges from concept to production and aftermarket support services. The company has several manufacturing facilities worldwide, including in the Americas, Europe, and Asia. Its extensive list of solutions supports industries like aerospace and defense (A&D), Industrials, Healthcare, Communication, and other Tech companies from conception to production.Benchmark Electronics finished its 2nd quarter with solid results. Even with lower expectations from analysts, BHE beat revenue estimates by 5.92% at $733.23 million. Its EPS also beat estimates by 2.13% at $0.48 a share. Despite the challenges and slowdown in the semiconductor and capital equipment market, BHE delivered results beyond expectations. This continued resiliency and the ongoing trend of outsourcing make it one of our top-secret tech stocks that could start taking off soon.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTD Synnex Corp (SNX)Graphic of side view of virtual financial charts with tech aesthetic, symbolizing fintechSource: shutterstock.com/whiteMoccaStory continuesTD Synnex Corporation (NYSE:SNX) is a solutions provider for Information Technology (IT) ecosystem and employs more than 23,000 workers, and serves more than 150,000 customers in 100+ countries. SNX’s two primary solution services include endpoint solutions catering to PCs, mobile phones, accessories, and small gadgets. Its advanced solutions provide businesses with system design, logistics, financial services, and online services. The company serves clients in the Americas, Asia-Pacific -Japan, and Europe.While SNX’s reported revenue and EPS may have missed expectations, it still offers much value with its strong management team and a long-term shift to higher-margin software service. Analysts love it as it provides long-term growth opportunities with its broad product portfolio and ability to shift resources and investments quickly. SNX recently joined hands with CoreStack as a strategic partner to enable growth and scalability to their partner ecosystem. With the rise in A.I., the company can enhance the efficiency of its processes and further boost growth, making it one of the most promising under-the-radar tech stocks to buy.TTM Technologies (TTMI)semiconductor stocks Close-up electronic circuit board. technology style concept. representing semiconductor stocks. top semiconductor stocks to buy nowSource: ShutterstockTTM Technologies Inc. (NASDAQ:TTMI) manufactures technologically advanced PCBs (printed circuit boards), specialty components, and technologically advanced solutions globally. These serve various markets, including data centers, automotive, medical, industrial, network and communications, and aerospace and defense. TTMI segments are: PCB and RF, and Specialty Components (RF&S Components) have operations globally, including North America, Asia Pacific, and EMEA.While the revenue for the 2nd quarter of 2023 dropped -10%, its net income and EPS still beat expectations. EPS came at $0.32 and exceeded expectations by 60%; net income arrived at $33.04 million, a surprise at 48.70%. According to Tom Edman, CEO of TTM, “Revenues were within the guided range due to the strength of their Aerospace and Defense and Data Center Computing end markets.” TTMI has continued to gain momentum and has more room to grow. Its resiliency and permanence have made it one of your portfolio’s leading stealth tech stocks.On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing GuidelinesRick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.More From InvestorPlaceChatGPT IPO Could Shock the World, Make This Move Before the AnnouncementMusk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.The Rich Use This Income Secret (NOT Dividends) Far More Than Regular InvestorsThe post 3 Under-the-Radar Tech Stocks That Could Take Off appeared first on InvestorPlace.

InvestorPlace

3 Under-the-Radar Tech Stocks That Could Take Off

https://finance.yahoo.com/news/3-under-radar-tech-stocks-171416825.html

7e50e034-9b4c-3e1d-8e2d-2e5a6db54f7e

BHG

Bright Health Group (BHG) came out with a quarterly loss of $8.55 per share versus the Zacks Consensus Estimate of a loss of $5.24. This compares to loss of $36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -63.17%. A quarter ago, it was expected that this health insurer would post a loss of $8.80 per share when it actually produced a loss of $14.40, delivering a surprise of -63.64%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Bright Health , which belongs to the Zacks Medical Services industry, posted revenues of $297.98 million for the quarter ended June 2023, missing the Zacks Consensus Estimate by 61.21%. This compares to year-ago revenues of $1.58 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.Bright Health shares have lost about 66.2% since the beginning of the year versus the S&P 500's gain of 17.2%.What's Next for Bright Health?While Bright Health has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.Story continuesAhead of this earnings release, the estimate revisions trend for Bright Health: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$5.94 on $755.8 million in revenues for the coming quarter and -$34.38 on $3.06 billion in revenues for the current fiscal year.Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.OpGen, Inc. (OPGN), another stock in the same industry, has yet to report results for the quarter ended June 2023. The results are expected to be released on August 10.This company is expected to post quarterly loss of $0.71 per share in its upcoming report, which represents a year-over-year change of +72.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.OpGen, Inc.'s revenues are expected to be $0.9 million, down 7.2% from the year-ago quarter.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportBright Health Group, Inc. (BHG) : Free Stock Analysis ReportOpGen, Inc. (OPGN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Bright Health Group (BHG) Reports Q2 Loss, Lags Revenue Estimates

https://finance.yahoo.com/news/bright-health-group-bhg-reports-120507503.html

0008ae62-896c-3e4e-b07f-d461c2e2b40c

BHG

ParticipantsGeorge Lawrence Mikan; Vice Chairman, CEO & President; Bright Health Group, Inc.Jay Stephen Matushak; CFO; Bright Health Group, Inc.Stephen Rodgers Hagan; Director of IR; Bright Health Group, Inc.PresentationOperatorHello, and welcome to the Bright Health Group Q2 2023 Earnings Call. My name is Alex, and I will be coordinating the call today. I'll now hand over to your host, Stephen Hagan, Investor Relations Director, to begin. Please go ahead.Stephen Rodgers HaganGood morning, and welcome to Bright Health Group's Second Quarter 2023 Earnings Conference Call. As a reminder, this call is being recorded. We have in the call today are Bright Health Group's President and CEO, Mike Mikan; and CFO, Jay Matushak. Before we begin, we want to remind you that this call may contain forward-looking statements under U.S. federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. A description of some of the risks and uncertainties can be found in the reports that we file with the Securities and Exchange Commission, including the risk factors in our current and periodic reports we file with the SEC. Except as required by law, we undertake no obligation to revise or update any forward-looking statements or information. This call will also reference non-GAAP amounts and measures A reconciliation of the non-GAAP to GAAP measures is available in the company's second quarter press release available on the company's Investor Relations page at investors.brighthealthgroup.com. Information presented on this call is contained in the earnings release we issued this morning and in our Form 8-K dated August 9, 2023, which may be accessed from the Investor Relations page of the company's website. We announced on June 30 that we have entered into a definitive agreement to sell our California Medicare Advantage business. And as we are working through the regulatory approval and other closing conditions for the sale, we are not going to be conducting a Q&A session on this call. With that, I will now turn the conference over to Bright Health Group Chief Executive Officer, Mike Mikan.Story continuesGeorge Lawrence MikanThank you, Stephen, and good morning, everyone. I'd like to begin by welcoming Jay Matushak to his first earnings call as CFO of Bright Health Group. Jay has stepped into his new role at a pivotal moment in the company's history. And I can't be more pleased with how he has jumped in so far and, more importantly, for the wealth of knowledge and focus on execution Jay will bring as we continue our journey of transition. It goes without saying that Bright Health has gone through significant changes over the past few months. We have focused and simplified our business on what was core to Bright Health when it was founded: delivering personalized and affordable health care for aging and underserved consumers through our Fully Aligned Care Model. That focus and our mission of making health care right together does not change and is core to everything we do. We believe, and the results continue to demonstrate, when you connect the financing and delivery of care, you unlock the best outcomes. I'm excited to have Jay and I share with you the strong performance of our Consumer Care business through the second quarter and how we are positioning the business for the future. However, before I do, I wanted to note the key actions the Board and management set out to accomplish when we announced the exit of the ACA insurance business at the end of 2022. First, focus and simplify our business. As I noted, Bright Health's core has always been the Fully Aligned Care Model and the belief that when you connect the financing and delivery of care, you get the best results. With the sale of the Medicare Advantage and discontinuation of ACA insurance businesses, the company will have a singular focus on value-driven care and the results we can drive with our aligned partners. Second, secure core external payer partners. While always an important part of our business, no longer having a captive insurance company accelerated the need to develop strong and deep partnerships with payers so that we can deliver and execute our model. The team has done a phenomenal job in, as I noted in the past, building and deepening relationships with some of the largest payers in the country. As Jay will discuss, we ended the second quarter serving 371,000 consumers through value-based arrangements, including approximately 65,000 through our REACH ACOs. We continue to build and expand on those relationships as well as enter new ones, like the provider agreement with Molina to serve Medicaid and ACA Marketplace populations in Florida and Texas in 2024. These are all great partners that have millions of members where we can continue to expand value-based arrangements together. Third, demonstrate strong performance for those partners. While still early with 2 quarters behind us, we are delivering results for our partners, and those results are coming through in our financials. As Jay will discuss, the Consumer Care business continued its solid performance in the second quarter, generating positive operating income in both Consumer Care segments. This positive segment operating income drove Bright Health to its first quarter of adjusted EBITDA profitability, a key milestone on our path to long-term profitable growth. We remain focused on delivering adjusted EBITDA profitability for the full year. Fourth, manage the liability for our discontinued operations. We have made substantial progress on the runout of our ACA Marketplace business, reaching approximately 95% claims completion as of June 30. We have also received the final details on the risk adjustment obligations by state. We believe that, together, the progress on the claims and risk adjustment means that our ultimate liability in the ACA Marketplace business is much closer to a final outcome with the risks related to this business being much narrower at this point. Fifth, bolster the company's capital position. We announced on April 28 that we were exploring strategic alternatives for our California Medicare Advantage business. And on June 30, we signed an agreement with Molina for them to acquire that business for $600 million. Earlier this week, we announced the company entered into a $60 million credit facility with NEA, along with a permanent waiver of default on our existing credit facility. Jay will discuss the details of this in a moment, but taken together, we believe these actions put the company in a strong capital position as we continue to execute against our transformation and our mission. And finally, as the team and I turn to the future, we couldn't be more excited about how the company is positioned and where it sits in today's health care landscape. We were pleased to report positive GAAP operating income in both Care Delivery and Care Solutions in the second quarter and the year-to-date period. The ongoing business at Bright Health is one of the largest providers of value-driven care in the country. As we've shown so far this year through positive segment operating income and enterprise adjusted EBITDA, we are focused on balancing risk and growth in the business and setting the company up for long-term profitable growth. I'll now hand it over to Jay to provide additional details on our second quarter performance and our updated outlook.Jay Stephen MatushakThank you, Mike, and good morning, everyone. I'll start by briefly discussing our balance sheet. I'll then recap our second quarter results and provide a review of our 2023 outlook. Starting with our balance sheet. As of June 30, 2023, we had $108.2 million in nonregulated liquidity, nearly all of which was in cash and cash equivalents. We had approximately $2.2 billion of additional cash in short and long-term investments held by our regulated insurance subsidiaries. On our $350 million credit facility, outstanding borrowing was $303.9 million as of the end of Q2, and we had $30.7 million in undrawn letters of credit committed to support our REACH ACOs. We announced on August 7 that we secured a $60 million credit facility with one of our key investors, NEA. We also announced on August 7 that we entered into a permanent waiver of default of our $350 million credit facility with our banking partners. The $350 million credit facility expires in February 2024. These financing steps support our operating capital needs as we work through the pending close of the sale of the California Medicare Advantage business. We believe all the steps we've taken since the end of first quarter will significantly strengthen our balance sheet and are positioning the company for a long-term capital efficient growth in our value-driven care model. Turning to the second quarter results. Bright Health Group revenue in the second quarter was $298 million compared to $149.3 million in Q2 2022, 100% year-over-year growth. Q2 revenue reflects the result of our Consumer Care business as the Medicare Advantage business moved to discontinued operations for reported second quarter financials. As Mike mentioned earlier, the Consumer Care business continued to perform well in the second quarter, ending the quarter with 371,000 value-based consumers. This includes over 65,000 consumers in our REACH ACOs and more than 305,000 consumers in our clinics through our relationships with commercial payers. Both segments in the Consumer Care business performed well in the quarter. Care Delivery revenue was $66.1 million in Q2 and the segment generated operating income of $11 million. Care Solutions revenue, including our REACH ACOs, was $237.7 million, and operating income was $3 million. Total company gross profit in Q2 was $52.8 million, up meaningfully from $18.5 million in Q2 2022. Gross margin increased to 17.7% from 12.4% in the prior year. We also drove material operating cost leverage in the quarter with our adjusted operating cost ratio decreasing to 18.3% in the second quarter, down from 39.4% in Q2 2022 or 35.5% when adjusted for investment losses in Q2 2022. A reconciliation of the adjusted operating cost ratio to the GAAP operating cost ratio was provided in our press release and the slides on our website. Our consolidated adjusted EBITDA for the quarter was positive $6.4 million, reflecting the solid segment operating income performance and corporate operating cost leverage. We were very pleased to report our first quarter of positive adjusted EBITDA, an important step toward our long-term profitability targets. Our discontinued operations reporting now includes the wind-down of our ACA Marketplace insurance business as well as our held-for-sale California Medicare Advantage business. We have made significant advancements with regards to the exit of the ACA Marketplace. The final risk adjustment liability published by CMS was in line with our balance sheet accrual positioning, and we are prudently reserved for the runout of claims, which is approximately 95% complete. We believe the remaining risk related to this business is very limited at this point. The California Medicare Advantage business has performed well on a year-to-date basis, and we remain very focused on delivering similar results in the second half. The medical cost ratio in the second quarter was 90.2%, in line with our expectations, and utilization remained stable. We found a great partner to purchase our California Medicare Advantage business and to continue to serve consumers. We are working through the regulatory approvals and closing conditions with the transaction expected to close by early 2024. We have updated our full year 2023 outlook this morning, reflecting the movement of the California Medicare Advantage business to discontinued operations. We have narrowed our Consumer Care revenue outlook range, which is now also the outlook for our consolidated Bright Health Group and enterprise revenue. We expect 2023 enterprise revenue between $1.15 billion and $1.2 billion. With our new segment reporting, we've added revenue guidance for each of our new segments to our outlook in the earnings slides. We are forecasting Care Delivery revenue for the full year between $250 million and $275 million, and we are forecasting Care Solutions revenue for the full year between $900 million and $925 million. One important note with regards to the revenue outlook for the year. In the business transition to providing care with external payer partners, we moved from full risk arrangements on ACA Marketplace consumers with our captive Bright Health Care insurance partner to shared risk contracts with our now external payer partners. Over time, we expect to transition those contracts to total cost of care arrangements, like we currently have in our Medicare Advantage business with gross revenue accounting treatment. Based on the value-based consumers served today, we believe we would recognize over $1 billion in additional revenue, which would more appropriately reflect the true scale of this business. Within Consumer Care, we continue to expect a total of 335,000 to 355,000 total value-based consumers at year-end, including 60,000 from our REACH ACOs and 275,000 to 295,000 from our value-based relationships with other payers, including consumers in the ACA Marketplace, Medicare Advantage and Medicaid. We continue to expect enterprise adjusted EBITDA profitability for the year. Our Consumer Care business performed very well in the first half of the year, supporting our positive outlook for the full year. We continue to see multiple opportunities for long-term growth, working with our key payer and provider partners and serving a growing number of consumers through our value-driven care model. Now here's Mike for some final comments.George Lawrence MikanThank you, Jay. We are pleased to deliver another strong quarter in the Consumer Care business, and I want to thank our team for their efforts as we position the company for long-term success. The addressable market for value-driven health care continues to grow and represents a very large, long-term opportunity across multiple payer categories, including Medicare Advantage, Medicaid and the ACA Marketplace. Our experience, integrating health insurer functions into care delivery, including claims management, utilization management and member enrollment, has allowed us to build a unique model in value-driven care. We have great growth potential in the value-driven marketplace as we continue to partner with payer partners and provider groups. As Stephen noted, given the pending regulatory approval of the sale of our California Medicare Advantage business, we won't be conducting a Q&A session today. We will look to update you as soon as possible on any developments. Thank you for joining the call and for your interest in our company.OperatorThank you for joining today's call. You may now disconnect your lines.

Thomson Reuters StreetEvents

Q2 2023 Bright Health Group Inc Earnings Call

https://finance.yahoo.com/news/q2-2023-bright-health-group-005334291.html

a0275908-0343-3e88-8e16-e32c1ff31d75

BHLB

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Avantor, Inc. AVTR is a provider of mission-critical products and services. The Zacks Consensus Estimate for its current year earnings has been revised 17.1% downward over the last 60 days.Berkshire Hills Bancorp, Inc. BHLB is a bank holding company for Berkshire Bank . The Zacks Consensus Estimate for its current year earnings has been revised 10.1% downward over the last 60 days.Bio-Techne Corporation TECH is a life sciences company. The Zacks Consensus Estimate for its current year earnings has been revised 11.3% downward over the last 60 days.View the entire Zacks Rank #5 List.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportBerkshire Hills Bancorp, Inc. (BHLB) : Free Stock Analysis ReportBio-Techne Corp (TECH) : Free Stock Analysis ReportAvantor, Inc. (AVTR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

New Strong Sell Stocks for August 22nd

https://finance.yahoo.com/news/strong-sell-stocks-august-22nd-084100345.html

082d53e8-3fd9-3ec5-b7c6-20b61f522f9d

BHLB

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:AFC Gamma, Inc. AFCG is a commercial real estate finance company. The Zacks Consensus Estimate for its current year earnings has been revised 8.4% downward over the last 60 days.Ashland Inc. ASH is a provider of additives and specialty ingredients. The Zacks Consensus Estimate for its current year earnings has been revised 21% downward over the last 60 days.Berkshire Hills Bancorp, Inc. BHLB is a bank holding company for Berkshire Bank. The Zacks Consensus Estimate for its current year earnings has been revised 10.1% downward over the last 60 days.View the entire Zacks Rank #5 List.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAshland Inc. (ASH) : Free Stock Analysis ReportBerkshire Hills Bancorp, Inc. (BHLB) : Free Stock Analysis ReportAFC Gamma Inc. (AFCG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

New Strong Sell Stocks for August 24th

https://finance.yahoo.com/news/strong-sell-stocks-august-24th-101400205.html

9ace8854-ed68-361c-bab1-86983cc2a1bc

BIGC

Backed by real-world data and comprehensive research, The Total Economic Impact™ Study finds merchants saved time and cost, experienced business growth and increased revenue retention after replatforming to BigCommerceAUSTIN, Texas, August 31, 2023--(BUSINESS WIRE)--BigCommerce (Nasdaq: BIGC), a leading Open SaaS ecommerce platform for fast-growing and established B2C and B2B brands, today announced the results of its commissioned Total Economic Impact™ study conducted by Forrester Consulting. The study found that a composite organization comprised of merchants with experience using BigCommerce achieved a 211% ROI with a payback period of eight months, and a net present value of $5.42 million, after migrating from legacy platforms.The study evaluated the cost savings and business benefits of five anonymous merchants using BigCommerce to determine financial impact over a three-year period."The study's findings reaffirm for us the unquestionable value that BigCommerce’s enterprise-grade ecommerce platform provides sophisticated and growing B2C and B2B merchants," said Meghan Stabler, senior vice president at BigCommerce. "We feel it also demonstrates the transformative impact our platform has on enterprises, even amidst a challenging macroeconomic landscape. These results demonstrate, in our opinion, the commitment and innovation behind BigCommerce's focus to offer the most comprehensive, cost effective and flexible ecommerce solution available."Before launching on BigCommerce, the five merchants used different ecommerce platforms for their online stores. Each merchant faced a number of challenges on their legacy solutions such as operational inefficiencies, website performance issues and poor customer experience. Lacking the scalability and flexibility to grow their business, these merchants migrated to BigCommerce and quickly saw significant results that include:Time savings of 50% to 90% for developers using BigCommerce’s open API features, the time savings realized by developers is worth around $188,000.Time savings of 30% to 40% related to updating ecommerce site content and catalog is worth around $244,000.Business growth from a 10% to 30% improvement in site traffic conversion rate and 5% improvement in average order value (AOV).Over $300,000 in revenue retention from better site performance and availability after migrating to BigCommerce.Over $774k in cost savings from retiring legacy solution.Unquantified benefits include better CX, expansion into new markets (via Feedonomics) and strong customer support.Story continuesAfter the investment in BigCommerce, merchants shared they were able to realize time savings in various activities, improved operational efficiency and time-to-value in website changes, leading to revenue growth and better customer satisfaction.As one web developer at a fashion brand expressed: "We’ve doubled our sales from last year. I’d say that’s due in large part to the scalability that BigCommerce offers you. There’s nothing BigCommerce hasn’t been able to handle for us."And a marketing director at a business supplies company said: "[With BigCommerce], time is no longer an issue for our marketing team if they want to scale and launch new products. It’s just a matter of having the right information in place."Ted Baker, MKM Building Supplies, Jimmy Brings, Cambio Bike, King Arthur Baking Company and Selle Italia are just a few enterprise brands using BigCommerce to grow and scale worldwide.For a deep dive into Forrester’s findings and data, and how to save valuable time, increase ecommerce site conversion and unlock new ways of growing revenue, download the full Forrester Total Economic Impact™ of BigCommerce study.TEI Framework and MethodologyThis study is a commissioned study conducted by Forrester Consulting on behalf of BigCommerce and results are based on a composite organization. From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in BigCommerce. The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that BigCommerce can have on an organization.About BigCommerceBigCommerce (Nasdaq: BIGC) is a leading open software-as-a-service (SaaS) ecommerce platform that empowers merchants of all sizes to build, innovate and grow their businesses online. BigCommerce provides merchants sophisticated enterprise-grade functionality, customization and performance with simplicity and ease-of-use. Tens of thousands of B2C and B2B companies across 150 countries and numerous industries use BigCommerce to create beautiful, engaging online stores, including Ben & Jerry’s, Molton Brown, S.C. Johnson, Skullcandy, Solo Stove, Ted Baker and Vodafone. Headquartered in Austin, BigCommerce has offices in London, Kyiv, San Francisco, and Sydney. For more information, please visit www.bigcommerce.com or follow us on Twitter, LinkedIn, Instagram and Facebook.BigCommerce® is a registered trademark of BigCommerce Pty. Ltd. Third-party trademarks and service marks are the property of their respective owners.View source version on businesswire.com: https://www.businesswire.com/news/home/20230831391739/en/ContactsDana [email protected]

Business Wire

Total Economic Impact™ Study Shows Enterprise Merchants Achieve 211% ROI on BigCommerce

https://finance.yahoo.com/news/total-economic-impact-study-shows-120000648.html

1dde8635-5e97-3b4d-b9cf-4b6a7671a433

BIGC

Basic ecommerce functionality, frictionless checkout and transparency on products and pricing among top purchasing expectationsAUSTIN, Texas, September 05, 2023--(BUSINESS WIRE)--BigCommerce (Nasdaq: BIGC), a leading Open SaaS ecommerce platform for fast-growing and established B2C and B2B brands, today released the results of its Global B2B Buyer Behavior Report examining the changing habits and preferences of B2B buyers in the US, UK and Australia.The results reflect a continued blurring of lines between consumer retail and B2B ecommerce trends. B2B buyers increasingly expect the same experience they get as consumers: engaging mobile responsive sites, product and pricing transparency and a frictionless checkout experience.The findings also mark a call to action for businesses to modernize their ecommerce operations or risk being left behind at a time when B2B ecommerce is still relatively young. According to eMarketer, ecommerce is the fastest-growing channel for B2B product sales, and US B2B ecommerce sales will exceed $2 trillion by 2024."The way B2B buyers shop is changing, and B2B merchants need to adapt. Buyers are turning to online channels to research, compare and purchase products," said Lance Owide, general manager of B2B at BigCommerce. "B2B merchants need to have a strong online presence and offer a seamless omnichannel shopping experience to keep buyers loyal and converting — or risk losing market share."Among the key findings in the BigCommerce survey:74% of respondents said they use online platforms to purchase products65% said they use search engines as the main means of product discovery, while 42% cited online marketplaces (such as Amazon Business)60% of respondents shared that they use B2B marketplaces to make purchases, with 51% of those using Amazon BusinessB2B buyers’ main pain points during the purchasing process are inaccurate pricing and shipping costs (40%), slow website load times (29%) and poor customer support (28%)31% of respondents indicated that technical issues kept them from completing an online purchaseRespondents indicated that the most important feature of the checkout process was not mobile support or auto-renew functionality, but displaying complete and accurate pricing informationStory continuesTo access the full report, click here.How B2B buyers discover and purchase productsWhile digital platforms like internet search results and online marketplaces prove to be the most frequently used ways that buyers find products online, 42% of global respondents discover products for their business from catalogs, signaling that catalogs are still a viable way of grabbing buyers’ attention. Meanwhile, just 24% of global respondents said they discover new products at trade shows as live events are still ramping up globally after coming to an almost complete halt during the Covid-19 pandemic.The pandemic sparked a rush to ecommerce for B2B merchants and buyers as in-person interactions shut down. A 2021 survey by Sana Commerce found 87% of B2B buyers identified new suppliers online, up from 78% prior to the pandemic. Using websites to evaluate suppliers increased as well, with 74% of B2B buyers doing so in 2021, compared to 60% before Covid.Among the most used purchasing channels, suppliers’ ecommerce websites and apps were the most selected across the US (75%), UK (73%) and Australia (77%). B2B marketplaces and in-store/warehouse purchasing followed close behind. Interestingly, buyers in Australia purchase significantly less through B2B marketplaces (45%) than their counterparts in the US (65%) and UK (62%).Of merchants in the BigCommerce survey who had purchased on an online marketplace, 51% of those respondents selected Amazon Business, with Walmart (23%) and Alibaba (19%) seeing significantly fewer selections. Broken down by region, there are significant differences in which marketplace buyers prefer. Buyers in Australia utilize Amazon Business (38%) less than the US (57%) and UK (58%).Ratings and reviews and peer recommendations are major drivers when it comes to making the decision to purchase. Promotions and marketing also ranked highly, signaling the importance of strong B2B marketing campaigns. Trade events lagged behind as events are still ramping up globally after the pandemic.What B2B buyers want from ecommerce sitesB2B buyers value the option to buy online because of benefits such as the ability to compare products and prices across competitors, customize their orders, save their purchase histories and make purchases at any time from anywhere. However, those benefits are negated when websites include inaccurate pricing or shipping options, slow page loads and complicated checkouts.Inaccurate pricing and shipping costs were deemed most frustrating by respondents (40%). This is a valuable takeaway for merchants who may unintentionally hide shipping costs or taxes until the final stages of checkout. Slow website loading time was ranked as the second-highest pain point for B2B buyers (29%), with customer support challenges (28%) following close behind.In aggregate, B2B buyers indicated that the most important features for their online purchasing experience were detailed product information and custom pricing and discounts.Looking at the results based on respondents’ frequency of purchase, however, shows that detailed product information has an increasing importance as frequency of purchases decreases, perhaps indicating that buyers who make fewer purchases want to have more information to make a decision when they are ready. As frequency of purchase increases, however, B2B buyers display more preference for bulk ordering than those who purchase less often."B2B sellers need to get the basics of a website right before moving on to bigger and better functionality," Owide said. "Many of these basic functions come from their experiences in the consumer retail space, mobile responsive sites and customer reviews to name a few. Technology partners can help alleviate some of these stresses. Customer service, for example, could benefit from implementing a live chat function, allowing buyers to speak directly to a representative from the site."What B2B buyers expect during checkoutThe checkout process is a critical step in ecommerce because even the slightest bit of friction can cause buyers to abandon their carts. Respondents in this section were asked about how they paid for products, as well as the pain points they experience during the process, and how those pain points can impact their final purchase.Surpassing all other selections by a fairly wide margin, the top reason B2B buyers abandoned their carts was because of technical issues faced at checkout (31%). This, along with a complicated checkout process (15%), signal the importance of a smooth, effortless checkout experience. Lack of secure checkout was the second biggest reason for abandoned carts across all regions, but it was the No. 1 reason in the UK with 30% of respondents choosing it, compared to 20% in the US and 21% in Australia.Credit and debit cards are the most-used payment methods across regions with more traditional B2B payment methods such as automated clearing house (ACH) and purchase order (PO) invoicing following closely. Electronic and physical checks were significantly more preferred in the US over the UK and Australia.When it comes to preferred checkout features, respondents overwhelmingly value total and accurate pricing information, followed by the availability of multiple shipping options.While not showing high preference overall, respondents who have to go through 10 or more approvals showed some preference for an auto-save cart feature, signaling the importance of this function to buyers who have longer purchasing processes or will need to come back to their cart later during the approval process. Similarly, auto-renew or subscribe-and-save options showed increased preference from respondents with higher approval levels as well."B2B buying habits have been through a tremendous transformation over the last few years, and BigCommerce’s platform makes it easy for merchants to meet those buyer expectations," said Owide. "Whether purchasing from suppliers, manufacturers, distributors or wholesalers, buyers are no longer relying solely on sales teams to guide their purchases. Instead, the journey has become a mix of physical and digital interactions that often results in a final purchase online."The full Global B2B Buyer Behavior Report can be found here.MethodologyBigCommerce enlisted Price Intelligently by Paddle to conduct a consumer survey in May 2023. In total, there were 1,006 respondents total across the US (508), UK (261), and AU (237). Qualifications to participate were that respondents were at least age 18 or above, employed, had the authority to make purchases on behalf of their business, and that they made purchases at least more than twice a year.About BigCommerceBigCommerce (Nasdaq: BIGC) is a leading open software-as-a-service (SaaS) ecommerce platform that empowers merchants of all sizes to build, innovate and grow their businesses online. BigCommerce provides merchants sophisticated enterprise-grade functionality, customization and performance with simplicity and ease-of-use. Tens of thousands of B2C and B2B companies across 150 countries and numerous industries use BigCommerce to create beautiful, engaging online stores, including Ben & Jerry’s, Molton Brown, S.C. Johnson, Skullcandy, Solo Stove, Ted Baker and Vodafone. Headquartered in Austin, BigCommerce has offices in London, Kyiv, San Francisco, and Sydney. For more information, please visit www.bigcommerce.com or follow us on Twitter, LinkedIn, Instagram and Facebook.BigCommerce® is a registered trademark of BigCommerce Pty. Ltd. Third-party trademarks and service marks are the property of their respective owners.View source version on businesswire.com: https://www.businesswire.com/news/home/20230905978524/en/ContactsBrad [email protected]

Business Wire

Consumer Ecommerce Expectations Continue to Put Pressure on B2B, BigCommerce Survey Finds

https://finance.yahoo.com/news/consumer-ecommerce-expectations-continue-put-120000583.html

8b0294f1-cc80-3f50-aecf-2c5151fdbb58

BIIB

Eli Lilly surged 15% in one day on enthusiasm for weight-loss and Alzheimer’s drugs. But is LLY stock a buy now? Here's what you should know.Continue reading

Investor's Business Daily

Is Eli Lilly Stock A Buy Now That It Has Hit A Profit-Taking Zone?

https://finance.yahoo.com/m/75ad41f4-79f0-3b48-af19-38b6a6e1e059/is-eli-lilly-stock-a-buy-now.html

75ad41f4-79f0-3b48-af19-38b6a6e1e059

BIIB

As you may have heard this summer, Biogen (NASDAQ: BIIB) is taking out a $1.5 billion-dollar loan to fund its acquisition of rare disease drug developer Reata Pharmaceuticals (NASDAQ: RETA) for $7.3 billion in cash. Buying Reata Pharmaceuticals will accomplish a couple of things for Biogen. First, it'll gain control of Reata's newly approved drug Skyclarys, which is the only medicine approved to treat Friedreich's ataxia.Continue reading

Motley Fool

Does Biogen's Latest $1.5 Billion-Dollar Move Make It a Buy?

https://finance.yahoo.com/m/3bd3765c-1818-3ea4-a3e9-439c6bdb6f4b/does-biogen-s-latest-1-5.html

3bd3765c-1818-3ea4-a3e9-439c6bdb6f4b

BIMI

NEW YORK, NY, Aug. 07, 2023 (GLOBE NEWSWIRE) -- BIMI International Medical Inc. (NASDAQ: BIMI, “BIMI”), a leading global provider of healthcare services and innovative medical solutions, today announced the formation of a strategic partnership between its subsidiary, Phenix Bio Inc. (“Phenix”) and China Duty Free Group (“CDFG”), one of the largest and most influential state-owned duty-free retail enterprises in China.The Purchase Agreement between Phenix and CDFG, which became effective on August 1, 2023, provides that CDFG will distribute a selection of Phenix’s healthcare products across all of its retail stores for a one-year term.Under the term of the agreement, a selection of Phenix’s high-quality dietary supplements will be made available to Chinese consumers through CDFG's extensive network of duty-free retail locations in airports, cruise terminals, and downtown stores. The partnership aims to improve the accessibility of world-class dietary supplements to China's growing population, while further expanding BIMI and Phenix’s footprint in the Asian market.A signing ceremony was held at BIMI’s headquarters in New York City where representative from both parties, including BIMI's Chief of Staff, Symington Smith and CDFG executives, attended."We are thrilled to partner with China Duty Free Group, a company that shares our commitment to excellence and innovation in the healthcare sector," said Tiewei Song, CEO of BIMI. "This partnership represents a significant opportunity for our company to leverage CDFG's extensive distribution network, while offering Chinese consumers access to our best-in-class products and services.”About BIMI International Medical Inc.BIMI International Medical Inc. (NASDAQ: BIMI) is a leading global provider of healthcare services and innovative medical solutions, dedicated to improving patient outcomes and ensuring the highest standards of medical care. With a diverse portfolio of products and services, BIMI International Medical Inc. is committed to enhancing the overall healthcare experience for patients, healthcare professionals, and institutions alike. For more information, please visit www.usbimi.comStory continuesAbout China Duty Free GroupChina Duty Free Group (CDFG) is one of the largest and most influential state-owned duty-free retail enterprises in China. With a vast network of retail locations in airports, cruise terminals, and downtown stores, CDFG is dedicated to providing travelers and consumers with a world-class shopping experience, offering a diverse range of high-quality products and services.Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of BIMI International Medical Inc.'s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, risks and uncertainties related to the integration of acquired businesses and other risks detailed in BIMI International Medical Inc.'s filings with the Securities and Exchange Commission. BIMI International Medical Inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.Investor Relations Contact:Vinson [email protected] 981 6274

GlobeNewswire

BIMI International Medical Inc. Announces Strategic Partnership by its Phenix Bio Inc. Subsidiary with China Duty Free Group

https://finance.yahoo.com/news/bimi-international-medical-inc-announces-120000757.html

acb42cc8-23e3-32a5-96a9-917e3669a55d

BIMI

NEW YORK, Aug. 24, 2023 (GLOBE NEWSWIRE) -- BIMI International Medical Inc. (the “Company”) today announced that on August 22, 2023, the Company received a notification letter from The Nasdaq Stock Market LLC (“Nasdaq”) stating that, because the Company has not yet filed its Quarterly Report on Form 10-Q for the period ended June 30, 2023 (the “Form 10-Q”), the Company is no longer in compliance with Nasdaq Listing Rule 5250(c)(1). Nasdaq Listing Rule 5250(c)(1) requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission. The Nasdaq letter has no immediate effect on the listing of the Company’s shares.Nasdaq’s notification letter states that the Company has 60 calendar days to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rules. If Nasdaq accepts the Company’s plan, then Nasdaq may grant the Company up to 180 days from the prescribed due date for filing the Form 10-Q to regain compliance. If Nasdaq does not accept the Company’s plan, then the Company will have the opportunity to appeal that decision to a Nasdaq hearings panel.The Company intends to resolve the deficiency and regain compliance with the Nasdaq Listing Rules.About BIMI International Medical Inc.BIMI International Medical Inc. is a healthcare products and services provider, offering a broad range of healthcare products and related services. For more information, please visit www.usbimi.com.Safe Harbor StatementCertain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, the Company’s ability to achieve profitable operations, its ability to continue to operate as a going concern, its ability to continue to meet NASDAQ continued listing requirements, the effects of the spread of COVID-19, the demand for the Company’s products and services in the People’s Republic of China, general economic conditions and other risk factors detailed in the Company’s annual report and other filings with the United States Securities and Exchange Commission.Story continuesInvestor Relations ContactInvestor Relations Department of BIMI International Medical Inc.Email: [email protected] Tel: +1 949 981 6274

GlobeNewswire

BIMI Receives Nasdaq Notification of Non-Compliance with Listing Rule 5250(c)(1)

https://finance.yahoo.com/news/bimi-receives-nasdaq-notification-non-132500179.html

488da44c-b66a-326a-b87f-782be7afbe6f

BIO

Biotech stocks soared high during the COVID-19 pandemic, as they were our only hope for new drugs and vaccines to fight the virus. However, the biotech sector received little thanks from the market when the pandemic was over. Biotech stocks as a whole have dropped considerably from their pandemic-era highs. Although these stocks have been hit hard lately, some of these investments present long-term opportunities for a savvy investor.Biotechnology is still the wave of the future, with new discoveries helping to treat once-untreatable diseases. New biotech labs still need new equipment to make tomorrow’s new discoveries. As our population ages and diseases become more prevalent, the healthcare industry is set to outpace the economy. The biotech industry will be growing right alongside it.The best-undervalued biotech picks are those that have likely been oversold due to investor skittishness amid rising interest rates. While speculative drug plays aren’t a guarantee of success, many companies are much more well-positioned than people realize. Companies that hold critical patents in their industries or produce vital equipment can still profit in a high-interest rate environment.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBecause the key to the biotech sector in the coming years will be the speculative becoming commonplace. Antibiotics and genetic modification were once the stuff of science fiction. Now, they’re part of our everyday lives. So, too, will it be with some of the most exciting up-and-coming technologies in the biotech space. So remember that past performance doesn’t predict the future, and keep an eye out for these undervalued biotech picks.Moderna (MRNA)Moderna (MRNA) research Coronavirus (Covid 19) vaccine. Row of vaccine bottles with blurred Moderna company logo on background.Source: Carlos l Vives / Shutterstock.comModerna (NASDAQ:MRNA), once a star during the COVID-19 pandemic, has not fared well since the pandemic ended. The tremendous success of its mRNA COVID-19 vaccine catapulted Moderna into the limelight. Since then, the company has encountered setbacks in clinical trials, causing its stock price to take a hit.Story continuesClinical trial failures are a common part of the pharmaceutical industry. They don’t necessarily signal a scientific failure but rather underscore the challenges of bringing new drugs to market. What made Moderna shine during the pandemic was its pioneering of mRNA vaccine technology. The company is even named after the words “modified” and “RNA.” This technology still holds the greatest promise to vaccinating against a whole host of diseases. A few clinical trial setbacks don’t change that.Moderna remains a strong contender in the mRNA vaccine arena. Its pipeline remains strong and it is still likely to come out ahead with some winners in the near future. Most importantly, it has a strong position to continue its pipeline until it starts finding more winners. Moderna’s Q2 2023 earnings report shows $3.8 billion in cash and $4.7 billion in investments. That gives them a lot of room even with a quarterly loss of $1.3 billion.At the end of the day, mRNA vaccines are set to revolutionize the medical landscape, offering faster, safer, and more effective prevention of many common diseases. Moderna’s journey may have encountered turbulence, but it’s too early to write off its potential. If you’re looking for an opportunity in beaten-down biotech stocks, this is definitely one for your watchlist.Bio-Rad (BIO)MNMD stock: A scientist holding a test tube in a stock image. AI Recommended Biotech StocksSource: ShutterstockBio-Rad (NYSE:BIO) is a major player in the high-throughput equipment space. They have had a challenging year in the stock market, marked by a huge sell-off following disappointing earnings results in Q1 2023. Their Q1 earnings showed declining revenue and a poor sales mix. Customers weren’t buying enough of the reagents and consumables that make up the most profitable segments of Bio-Rad’s sales.Part of this skewed sales mix could be attributed to ongoing supply chain disruptions that have plagued laboratories, causing price hikes and affecting Bio-Rad’s sales and cost-of-sales. There are still some lab products that cannot easily be gotten for any amount of money. However, if supply issues continue to abate, the company may see a reduction in costs and find it easier to sell its products in bulk. A temporary setback shouldn’t be misunderstood as a permanent quagmire.But by comparison, Bio-Rad has shown recovery in Q2 2023. In Q1 2023, net sales were $677 million and income from operations was $62 million. In Q2 2023, net sales were $681 million and income from operations was $90 million. Although revenue is not increasing fast, Bio-Rad has made the adjustments to bring more to the bottom line. The overall earnings are not comparable as in Q2 2023 they declared a loss from the change in fair value of equity securities. While that is important, it’s not part of their core revenue.Bio-Rad could be the poster child of an upcoming recovery in biotech stocks which have continued to lag the broader market. Their high-throughput products are still some of the best ways a lab or drug company can increase productivity. So don’t count them out after one bad earnings report. Bio-Rad may still prove to be the undervalued biotech pick of 2023.CRISPR Therapeutics (CRSP)the CRISPR Therapeutics (CRSP) logo seen displayed on a smartphoneSource: rafapress / Shutterstock.comCRISPR Therapeutics (NASDAQ:CRSP) has been a lonely bright spot in the biotech industry this year, with its stock gaining over 20% year-to-date. But it remains more than ⅔ below its pandemic-era highs, and some doubt it can ever reclaim them. However, CRISPR Therapeutics still holds significant promise if its groundbreaking technology continues to deliver.CRISPR Therapeutics’s recent earnings reports have brought encouraging news. Operating costs are on a downward trend, while collaboration revenue is on the rise. In Q1 2023, CRISPR Therapeutics had collaboration revenue of $100 million and operating expenses of $164 million. That was down from operating expenses of $175 million in Q1 2022. And in Q2 2023, they reported collaboration revenue of $70 million and operating expenses of $165 million, down from $183 million in Q2 2023. With revenue becoming more regular, CRISPR Therapeutics may be on the path to profit.And that path seems much more secure as well. The FDA is currently evaluating Exa-cel, a CRISPR/Cas9-based treatment for sickle cell anemia and beta-thalassemia. A decision is expected December 8th and if approved, CRISPR Therapeutics stands to earn 40% of the profits from Exa-cel, sharing them with Vertex Pharmaceuticals (NASDAQ:VRTX).The success of this treatment could potentially pave the way for a wave of new drugs based on CRISPR/Cas9 technology. And as CRISPR Therapeutics holds so many key technology patents for CRISPR/Cas9, they stand to be the biggest beneficiary.The bottom line is that CRISPR Therapeutics is a beaten-down biotech opportunity that is already making its comeback. FDA approval and a new wave of CRISPR/Cas9 drugs could bring it back to its pandemic highs in a heartbeat.On the date of publication, John Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.John Blankenhorn is a neuroscientist at Emory University. He has significant experience in biochemistry, biotechnology and pharmaceutical research.More From InvestorPlaceMusk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.ChatGPT IPO Could Shock the World, Make This Move Before the AnnouncementIt doesn’t matter if you have $500 or $5 million. Do this now.The post 3 Beaten-Down Biotech Stocks Bound for a Bounce Back appeared first on InvestorPlace.

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3 Beaten-Down Biotech Stocks Bound for a Bounce Back

https://finance.yahoo.com/news/3-beaten-down-biotech-stocks-113858824.html

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BIO

Bio-Rad Laboratories Inc (NYSE:BIO) has seen a daily loss of 1.42% and a 3-month loss of 1.26%, with a per share loss of 15.01. The question that arises is whether the stock is significantly undervalued. This article delves into a valuation analysis of Bio-Rad Laboratories, providing a comprehensive view of its financial standing and future prospects.Company OverviewBio-Rad Laboratories, headquartered in Hercules, California, is a prominent player in the clinical diagnostics and life sciences markets. With a diversified geographic presence spanning the Americas, Europe, Africa, and Asia-Pacific, the company manufactures and markets products for clinical laboratories and research, biopharmaceutical production, and food testing. A significant stakeholder in Sartorius AG, a laboratory and biopharmaceutical supplier, Bio-Rad Laboratories commands a market cap of $10.60 billion.Warning! GuruFocus has detected 3 Warning Sign with BIO. Click here to check it out. BIO 30-Year Financial DataThe intrinsic value of BIOUnveiling Bio-Rad Laboratories (BIO)'s Value: Is It Really Priced Right? A Comprehensive GuideUnpacking the GF ValueThe GF Value is a proprietary measure that provides an estimate of a stock's intrinsic value. The GF Value Line, visible on our summary page, denotes the stock's ideal fair trading value. This value is computed considering historical trading multiples, a GuruFocus adjustment factor based on past performance and growth, and future business performance estimates.At its current price of $362.66 per share, Bio-Rad Laboratories (NYSE:BIO) appears to be significantly undervalued according to the GF Value calculation. This suggests that the long-term return of its stock is likely to be much higher than its business growth.Unveiling Bio-Rad Laboratories (BIO)'s Value: Is It Really Priced Right? A Comprehensive GuideLink: These companies may deliver higher future returns at reduced risk.Financial StrengthBefore investing in a company, it's crucial to assess its financial strength. Companies with poor financial strength pose a higher risk of permanent loss. Key indicators of financial strength, such as the cash-to-debt ratio and interest coverage, reveal that Bio-Rad Laboratories has a cash-to-debt ratio of 1.25, which is worse than 61.44% of 835 companies in the Medical Devices & Instruments industry. However, the overall financial strength of Bio-Rad Laboratories is 7 out of 10, indicating fair financial health.Story continuesUnveiling Bio-Rad Laboratories (BIO)'s Value: Is It Really Priced Right? A Comprehensive GuideProfitability and GrowthInvesting in profitable companies, especially those with consistent long-term profitability, is generally less risky. Bio-Rad Laboratories has been profitable for 9 out of the past 10 years, with an operating margin of 13.11%, which ranks better than 71.27% of 825 companies in the Medical Devices & Instruments industry. This indicates fair profitability .However, growth is a crucial factor in a company's valuation. Companies that grow faster create more value for shareholders, especially if that growth is profitable. The average annual revenue growth of Bio-Rad Laboratories is 7.1%, which ranks worse than 51.03% of 725 companies in the Medical Devices & Instruments industry. The 3-year average EBITDA growth is 0%, which ranks worse than 0% of 729 companies in the Medical Devices & Instruments industry.ROIC vs WACCComparing a company's return on invested capital (ROIC) to its weighted average cost of capital (WACC) can provide insights into its profitability. Bio-Rad Laboratories's ROIC is 2.77 while its WACC came in at 8.32, indicating that the company may not be creating value for its shareholders.Unveiling Bio-Rad Laboratories (BIO)'s Value: Is It Really Priced Right? A Comprehensive GuideConclusionIn conclusion, Bio-Rad Laboratories (NYSE:BIO) appears to be significantly undervalued. The company's financial condition and profitability are fair, but its growth ranks worse than 0% of 729 companies in the Medical Devices & Instruments industry. For more detailed financial information about Bio-Rad Laboratories, check out its 30-Year Financials here.To discover high-quality companies that may deliver above-average returns, please check out the GuruFocus High Quality Low Capex Screener.This article first appeared on GuruFocus.

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Unveiling Bio-Rad Laboratories (BIO)'s Value: Is It Really Priced Right? A Comprehensive Guide

https://finance.yahoo.com/news/unveiling-bio-rad-laboratories-bio-153558361.html

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