Profit margin – Stormbirds http://stormbirds.net/ Sun, 10 Oct 2021 17:48:09 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://stormbirds.net/wp-content/uploads/2021/07/icon-2021-07-05T151758.466-150x150.png Profit margin – Stormbirds http://stormbirds.net/ 32 32 Asos expected to reveal sales boosted by purchases after Freedom Day http://stormbirds.net/asos-expected-to-reveal-sales-boosted-by-purchases-after-freedom-day/ Sun, 10 Oct 2021 17:30:00 +0000 http://stormbirds.net/asos-expected-to-reveal-sales-boosted-by-purchases-after-freedom-day/ Online fashion retailer Asos is expected to report slower sales growth this week, as its profit margins are hit by global freight shortages. The fashion giant saw sales jump during the pandemic as shoppers turned to online stores for comfortable clothes to lock in. Analysts said they predicted freight shortages, currency movements and less lucrative […]]]>

Online fashion retailer Asos is expected to report slower sales growth this week, as its profit margins are hit by global freight shortages.

The fashion giant saw sales jump during the pandemic as shoppers turned to online stores for comfortable clothes to lock in.

Analysts said they predicted freight shortages, currency movements and less lucrative foreclosure-focused products would have limited the retailer’s full-year profits.

Sales are expected to rise 20% to £ 3.9bn for the year through August, while analysts expect profits to rise 35% to £ 193m.

The retailer reported weakening trade in the final weeks of the four months leading up to June.

However, Russ Mold and Danni Hewson, at AJ Bell, said removing Covid restrictions would likely have resulted in increased sales in recent months.

They said: “Second-hand clothing sales may have offered some margin support as people started to go out again as pubs, clubs and restaurants started to open more fully.”

Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said she also suspected “things would have improved in some key markets.”

“More social events on calendars means more outfits to buy.

Profitability has been held back by a higher proportion of less lucrative ‘foreclosure’ items, coupled with higher distribution costs and rising return rates, could mean operating margins are going in the wrong direction direction.”

The retailer has previously stressed that the disruption of its supply chain will not impact consumers

Nick Beighton, CEO of Asos, told reporters in July: “We haven’t changed any of our prices, quite the contrary, we have invested heavily in them and will continue to do so.”




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TSMC investor conference could focus on US call for information http://stormbirds.net/tsmc-investor-conference-could-focus-on-us-call-for-information/ Sat, 09 Oct 2021 06:43:00 +0000 http://stormbirds.net/tsmc-investor-conference-could-focus-on-us-call-for-information/ Taipei, Oct. 9 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) has scheduled an investor conference for Thursday, October 14, and the event closely watched by investors around the world is expected to address US demand for manufacturers of chips to share information on demand and delivery, analysts said. Other major topics include its third quarter results, […]]]>

Taipei, Oct. 9 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) has scheduled an investor conference for Thursday, October 14, and the event closely watched by investors around the world is expected to address US demand for manufacturers of chips to share information on demand and delivery, analysts said.

Other major topics include its third quarter results, fourth quarter outlook, capital spending and advanced manufacturing processes, analysts said.

On September 23, the US government held a meeting with TSMC, Samsung Electronics Co., Intel Corp. and others on industry progress in solving semiconductor supply chain issues, and launched a “Request for Information” (RFI) on the topic the same day.

RFI asks companies in the semiconductor supply chain to “voluntarily share information on inventory, demand and delivery dynamics.” Its goal is to “understand and quantify where bottlenecks may exist,” according to a statement posted on the US Department of Commerce’s website.

The request has sparked fears about leaks of confidential business information that could lead to economic losses for Taiwanese semiconductor suppliers.

Taiwanese Economy Minister Wang Mei-hua (王 子 花) said on Friday that she raised concerns expressed by Taiwanese semiconductor suppliers during a regular meeting held on Wednesday with Sandra Oudkirk, director of the American Institute in Taiwan, the de facto United States Embassy in Taiwan. .

While Wang said companies that received the questionnaires are allowed to answer questions “voluntarily”, stressing that they do not have to share confidential business information, the market has remained uncomfortable with the request of the United States.

Earlier this week, Sylvia Fang (方淑華), legal and legal adviser to TSMC, said her company would not release any sensitive information, especially information involving its clients.

On Friday, TSMC announced that its consolidated sales for the third quarter of the year increased 11.42% from the previous quarter to reach NT $ 414.67 billion ($ 14.81 billion) after a strong performance. in September, when the chipmaker’s monthly turnover exceeded NT $ 150 billion for the first time to reach NT $ 152.69 billion.

In September, Apple unveiled the latest iPhone 13 lineup, which uses the A15 processor made on TSMC’s advanced 5-nanometer technology. TSMC is considered the sole supplier of the A15 processor.

While third quarter sales were in line with TSMC’s forecast, analysts said the market is closely monitoring how the company will report its gross margin – the difference between revenue and cost of goods sold – for the third quarter. .

In the second quarter, TSMC’s gross margin fell 2.4 percentage points from the first quarter to 50% due to the higher depreciation costs of its 5nm process, the latest technology for which the chipmaker started serial production.

Looking ahead, analysts say, TSMC could provide guidance, forecasting its fourth-quarter revenue to grow about 5% from the previous quarter to a new high, but the 5% growth forecast looked cautious. as the momentum of TV and Chromebook shipments has slowed. .

Due to a global chip shortage, TSMC informed customers of a price hike in August, marking the first time in years for the chipmaker to raise prices for its entire product line. Analysts said further price hikes could be a priority at the investor conference, as higher product prices are expected to drive TSMC’s sales, profits and gross margin in 2022.

After the 5nm process, TSMC is developing the 3nm process that it plans to start mass production in 2022. Beyond the 3nm process, analysts say, the market is considering a specific timeline that will be disclosed by TSMC for the development of the 2nm process as rival Samsung Electronics Co. has announced that it will begin commercial production of its 2nm process in 2025.

TSMC is investing $ 12 billion to build a 5nm wafer manufacturing plant in Arizona and is evaluating the possibility of setting up production sites in Japan and Germany.

Analysts said the upcoming investor conference is expected to detail the chipmaker’s global expansion plan and a possible decision by TSMC to increase its capital spending over the next three years from the current spending plan of $ 100. billions of dollars.

This week, TSMC shares hovered between NT $ 560.00 and NT $ 583.00 and closed at NT $ 575.00 on Friday, down 0.86% from Thursday. Over the five sessions, foreign institutional investors stood on the sell side, registering a net sale of 30.36 million shares.

(By Chang Chien-chung and Frances Huang)

Final element / cs


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Why it has increased dramatically this week http://stormbirds.net/why-it-has-increased-dramatically-this-week/ Thu, 07 Oct 2021 15:36:12 +0000 http://stormbirds.net/why-it-has-increased-dramatically-this-week/ The Acuity Brands, Inc. (NYSE: AYI) share price has risen more than 14% in the past few trading days. That’s why it happened. The Acuity Brands, Inc. (NYSE: AYI) share price has risen more than 14% in the past few trading days. Investors are responding positively to the company’s fourth quarter and full year 2021 […]]]>

  • The Acuity Brands, Inc. (NYSE: AYI) share price has risen more than 14% in the past few trading days. That’s why it happened.

The Acuity Brands, Inc. (NYSE: AYI) share price has risen more than 14% in the past few trading days. Investors are responding positively to the company’s fourth quarter and full year 2021 results.

The company reported net sales of $ 992.7 million for the fiscal fourth quarter ended August 31, 2021, an increase of $ 101.5 million, or 11.4% from the same period in 2020. And diluted earnings per share was $ 2.72, an increase of 45.5. percent over the prior year, and adjusted diluted earnings per share was $ 3.27 per share, an increase of 39.1 percent over the prior year.

Q4 results

– The company reported gross profit of $ 419.3 million, up $ 44.2 million, or 11.8% from the previous year. And the gross margin was 42.2% of net sales for the fourth quarter of fiscal 2021, an increase of 10 basis points from 42.1% in the fourth quarter of fiscal 2020. Gross profit margin was hit this quarter by an increase in materials, labor and freight. costs. This impact was largely offset by our continued improvements in our products and productivity, increased sales volume and the benefits of recent price increases.

– Operating income of $ 132.8 million increased $ 26.9 million, or 25.4%, from the prior year. Operating profit was 13.4% of net sales for the fourth quarter of fiscal 2021, an increase of 150 basis points from 11.9% for the fourth quarter of fiscal 2020 thanks to the ‘improvement in gross profit and the leverage of our operating expenses.

– Adjusted operating income of $ 156.4 million increased $ 25.7 million, or 19.7%, for the fourth quarter of fiscal 2021 compared to the prior year. And adjusted operating profit was 15.8% of net sales for the fourth quarter of fiscal 2021, an increase of 110 basis points from 14.7% in the fourth quarter of fiscal 2020.

– Net income of $ 98.1 million increased $ 24.4 million, or 33.1%, from the prior year. And diluted earnings per share of $ 2.72 increased $ 0.85, or 45.5%, for the fourth quarter of fiscal 2021, compared to $ 1.87 for the fourth quarter of fiscal year. 2020.

– Adjusted net income of $ 117.7 million increased $ 24.9 million, or 26.8%, from the prior year. Adjusted diluted earnings per share of $ 3.27 increased $ 0.92, or 39.1%, from $ 2.35 for the fourth quarter of fiscal 2020.

Summary of the year 2021

– Net sales reached $ 3.5 billion for the full year 2021, an increase of $ 134.7 million or 4% from fiscal 2020.

– Gross profit of $ 1.5 billion increased $ 72.6 million, or 5.2%, in fiscal 2021, compared to the prior year. And the gross profit margin was 42.6% for fiscal 2021, an increase of 40 basis points from 42.2% for fiscal 2020.

– Operating income of $ 427.6 million increased $ 73.7 million, or 20.8%, in fiscal 2021, compared to the prior year. And operating profit represented 12.4% of net sales for fiscal 2021, an increase of 180 basis points from the previous year. Adjusted operating income of $ 506.3 million increased $ 50 million, or 11%, for fiscal 2021 compared to the prior year. And adjusted operating profit was 14.6% of net sales for fiscal 2021, an increase of 90 basis points from the previous year.

– Net income of $ 306.3 million increased $ 58 million in fiscal 2021, or 23.4%, from the prior year. And diluted earnings per share of $ 8.38 increased $ 2.11, or 33.7%, for fiscal 2021, compared to $ 6.27 for fiscal 2020.

– Adjusted net income of $ 371.7 million increased $ 44.4 million for fiscal 2021, or 13.6%, from the prior year. And adjusted diluted earnings per share of $ 10.17 increased $ 1.90 in fiscal 2021, or 23%, compared to $ 8.27 in fiscal 2020.

KEY QUOTE:

“I am proud of the progress our team has made in transforming our business in fiscal 2021. We have improved our operations and delivered strong performance in a challenging environment. We enter fiscal 2022 in a strong position with a diverse and skilled team, driven by our values ​​to deliver results for our clients, our investors and our environment. “

– Neil Ashe, CEO of Acuity Brands

Disclaimer: This content is intended for informational purposes. Before you make an investment, you need to do your own analysis.


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Sika is confident that it can handle rising commodity prices http://stormbirds.net/sika-is-confident-that-it-can-handle-rising-commodity-prices/ Thu, 07 Oct 2021 06:47:00 +0000 http://stormbirds.net/sika-is-confident-that-it-can-handle-rising-commodity-prices/ The logo of the Swiss chemicals group Sika can be seen on the snow-covered roof of a branch in Berikon, Switzerland on February 12, 2021. REUTERS / Arnd Wiegmann / File Photo Sales growth of 13 to 17% in local currencies this year Experience greater increase in operating profit Cost savings to increase margins in […]]]>

The logo of the Swiss chemicals group Sika can be seen on the snow-covered roof of a branch in Berikon, Switzerland on February 12, 2021. REUTERS / Arnd Wiegmann / File Photo

  • Sales growth of 13 to 17% in local currencies this year
  • Experience greater increase in operating profit
  • Cost savings to increase margins in the years to come

ZURICH, Oct. 7 (Reuters) – Sika (SIKA.S) may overcome rising raw material costs and supply chain restrictions to increase sales and profit margins this year, the Swiss maker of construction chemicals.

The company, whose products are used to seal, strengthen and protect building materials, said it expects sales growth in local currencies of 13% to 17% this year, and a higher increase. operating profit, confirming previous forecasts.

The operating profit margin (EBIT) will reach 15% for the first time this year, he added, “despite difficult raw material prices and supply chain restrictions.” In 2020, it posted an EBIT margin of 14.4%.

In a statement ahead of its Investor Day, Sika also confirmed its targets for 2023, saying it still aims for local currency sales growth of 6-8% per year and expects to increase operating profit margins. at 15 to 18% from 2021.

The outlook confirmed the directions given by the company in its half-year results in July.

The improved margins would come from cost savings in operations, logistics, purchasing and product formulations, he said.

These are expected to translate into an annual improvement in operating costs equivalent to 0.5% of sales, said Sika, which also aims to reduce its carbon emissions.

Chief Executive Thomas Hasler, who took over as CEO in May, said Sika will continue to seek acquisitions and new products to meet its goals. The company has already made seven acquisitions this year.

“Our business has great potential for future growth and long-term success,” he said.

Reporting by John Revill and Silke Koltrowitz Editing by Riham Alkousaa and Mark Potter

Our standards: Thomson Reuters Trust Principles.


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Why Investors Should Bet on CRSR Stocks for PC Gaming http://stormbirds.net/why-investors-should-bet-on-crsr-stocks-for-pc-gaming/ Wed, 06 Oct 2021 17:51:36 +0000 http://stormbirds.net/why-investors-should-bet-on-crsr-stocks-for-pc-gaming/ Aside from extreme volatility earlier this year, Corsair game (NASDAQ:CRSR) traded in a narrow range between $ 26 and $ 30. Source: WDphotography / Shutterstock.com During the last publication of its quarterly results, the CRSR share tried, unsuccessfully, to exit a downtrend. More recently, the premium gaming computer supplier has encountered technical resistance. Unless Corsair […]]]>

Aside from extreme volatility earlier this year, Corsair game (NASDAQ:CRSR) traded in a narrow range between $ 26 and $ 30.

Source: WDphotography / Shutterstock.com

During the last publication of its quarterly results, the CRSR share tried, unsuccessfully, to exit a downtrend. More recently, the premium gaming computer supplier has encountered technical resistance.

Unless Corsair releases a more compelling quarterly report, short sellers will have the upper hand. They have a short float position of 11.7% against the stock. Before justifying a purchase on Corsair, what are the main headwinds this cheap title faces?

Selling pressure on CRSR share

In the second quarter, Corsair achieved sales of $ 473 million and EBITDA of $ 52 million. Revenue increased 24.3% from a year ago, driven by strong device sales, which increased 40.9% to $ 155.2 million. The company underperformed expectations due to supply chain constraints and logistics issues.

CEO Andy Paul highlighted the company’s investment in research and development, infrastructure and marketing. This led to the launch of its first camera. With 75 new products launched to date, Corsair covers many new areas of the PC market.

Investors don’t see it that way.

Corsair must repay its debt. In the second quarter, it took advantage of its higher cash flow to pay off an additional $ 25 million in debt. This is strategically important since rate hikes in the next quarter will increase the cost of debt.

Opportunity

Cultural changes in the gaming market are an opportunity for Corsair to increase its total addressable market. For example, the company will increase its market share in the console, PC and mobile markets (such as shown on slide 28). By dominating dozens of product categories, consumers will prioritize Corsair’s peripheral solutions.

The low valuation of Corsair shares is a chance for value-oriented investors to build up a position at cheap prices. Conversely, its forward price / earnings ratio of 13.8 is higher than that of HP (NYSE:HPQ) Where Dell (NYSE:DELL). These PC makers are trading at a multiple of 7.4x and 11.26x, respectively. As Corsair and the industry overcome supply constraints, its profit margin will improve.

Sea freight costs increase logistics costs (per slide 20). The shipping industry will adapt by increasing the supply. The general demand for products manufactured abroad will decline for price sensitive products. In the gaming market, Corsair has superior product quality and performance compared to the competition. Customers are willing to spend more on the company’s gaming components and systems.

Growth in the second half of the year

CFO Michael Potter acknowledged that the second quarter is generally weak seasonally. It follows with a stronger second half of the year. Prospects are not a guarantee. Customers face huge shortages of high-end computer chips and graphics cards. This increases the price of gaming systems in the range of $ 2,000 to $ 4,000.

Because it is difficult for them to build, Paul said sales channels and suppliers adjusted.

Just value

Corsair share quotation

Source: Stock Rover

As noted above, CRSR shares trade at a modest 6% discount to fair value. Thanks to its strong profit margins, the share obtains an 88/100 on quality.

As an old stock meme on Reddit r / WallStreetBets, Corsair could briefly hit $ 40. In June, the markets thought these speculators were gone, to witness the frenzied buying that month. Nonetheless, the dynamic investors in the sub-forum may have lost interest in the stocks itself and in Corsair.

On Wall Street, four analysts offer a 12-month price target. The average price target is $ 39 and ranges from $ 31 to $ 45, according to Tipranks.

Your takeaway meals

Investing in PC gaming stocks is a test of investor patience. The stock can move nowhere for months. As the markets recognize the increase in profits and higher sales, more investors will accumulate in Corsair shares. The tech index trades at a premium in general, with Corsair reversing the trend.

Value investors should consider building up a position at current levels. Selling puts or buying long term calls is another way to bet on the upside potential of this undervalued company.

As of the publication date, Chris Lau does not have (directly or indirectly) any position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, submitted to InvestorPlace.com Publication guidelines.


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Bang & Olufsen Q1 2021/22 interim report: positive EBIT http://stormbirds.net/bang-olufsen-q1-2021-22-interim-report-positive-ebit/ Wed, 06 Oct 2021 05:51:52 +0000 http://stormbirds.net/bang-olufsen-q1-2021-22-interim-report-positive-ebit/ The company continued to implement its turnaround strategy and maintained the strong momentum of last year. For the first time since fiscal 2007/08, Bang & Olufsen achieved a first quarter with both positive EBIT before exceptional items and positive free cash flow. Revenue increased 44% in local currencies year over year. The company grew in […]]]>

The company continued to implement its turnaround strategy and maintained the strong momentum of last year. For the first time since fiscal 2007/08, Bang & Olufsen achieved a first quarter with both positive EBIT before exceptional items and positive free cash flow.

Revenue increased 44% in local currencies year over year. The company grew in all regions and all product categories, improved its gross margin and benefited from the full effect of the cost reduction program implemented last year.

CEO Kristian Teär comments:

“We are satisfied with the progress we made in the first quarter. Despite the pandemic and the continued challenges of global supply chain issues, the hard work of our employees and partners has helped us deliver 44% growth and a profitable first quarter for the first time since 2007/08. Results were driven by solid growth in all regions and product categories and the full effect of our cost reduction program. “

“We have entered the second phase of our turnaround where we focus on building greater robustness in our business, while achieving double-digit growth and improving our profitability. In the first quarter, we made solid progress in our strategic focus areas. We have expanded our customer base, strengthened our organization, launched new product innovations, continued our digital transformation and improved the customer experience. Overall, we are delighted to see that our strategy is working and we remain on track to meet our expectations for the entire year. “

Financial Highlights, Q1 2021/22

  • Sales increased 44% in local currencies, across all regions and product categories.
  • Flexible Living maintained the strong momentum of last year, with growth of 87%. The Staged and On-the-go categories recorded growth of 35% and 48% respectively. Growth in all product categories was driven by both existing and new products.
  • Component shortages remained a challenge and had a negative impact on growth and margins. The company’s procurement team continued to successfully secure components, but delivery times are even longer for specific products, especially in the Staged category.
  • Gross profit was DKK 299 million (Q1 20/21: DKK 198 million). This amounted to a gross margin of 44.8% (Q1 20/21: 42.8%). The improvement in gross margin is due to a 4.4 point increase in gross margin on products thanks to a favorable product mix, price increases and a better income / fixed cost ratio. The improvement was partially offset by higher costs for components and logistics.
  • EBIT was DKK 7 million (Q1 20/21: -DKK 49 million). This corresponds to an EBIT margin of 1.1% (Q1 20/21: 9.0%).
  • EBIT before exceptional items was DKK 9 million, which equates to a margin of 1.4% (Q1 20/21: -8.4%).
  • The profit for the period was a profit of DKK 1 million (Q1 20/21: loss of DKK 49 million).
  • Free cash flow was DKK 21 million (Q1 20/21: DKK -62 million), driven by EBITDA.
  • Available cash remained stable at DKK 608 million (Q4 20/21: DKK 593 million).

Progress on strategic priorities
The company continued to implement its strategy which generated profitable growth while strengthening the robustness of its business operations.

  • The company hired 85 new employees, especially in the software and engineering fields, with the aim of building the right teams, capabilities and structures.
  • The first quarter saw the launch of three product innovations, Beovision Contour in a 55 ” version, Beoplay EQ and stereo pairing as a software update for the products of the new product platform.
  • To support product and platform launches, several marketing activations were carried out, including the Beoplay EQ launch campaign with Chinese musician Lay Zhang.
  • The six main European markets and the two main Asian markets achieved 37% and 17% year-on-year growth, respectively. Last year, sales in China were positively affected by delayed orders compared to the fourth quarter of the previous year. Taking into account the phasing of last year’s orders, growth was just over 30%.
  • The brand and license partnership agreement with HP was renewed and the company announced a brand and license partnership with Sagemcom.
  • The customer base grew 7.5% in the first quarter and the company plans to continue the positive trajectory throughout the year.

Outlook
The company maintains the outlook for the 2021/22 financial year which is as follows:

2.9 billion DKK to 3.1 billion DKK
  • EBIT margin before exceptional items:
2-4%
0m DKK to 100m DKK

The outlook is based on certain assumptions and remains subject to high uncertainty due to COVID-19 and general pressure on supply chains.

Conference call for analysts and investors
The company will host a webcast on October 6, 2021 at 10:00 a.m. CEST, where the financial developments for the first quarter of 2021/22 will be presented.

The webcast can be accessed at https://streams.eventcdn.net/bo/q1202122

Login details for Q&A participants:
DK: +45 7872 3251
United Kingdom: +44 333 300 9030
United States: +1 646 722 4956

For more information, please contact:

Martin Raasch Egenhardt
Investor Relations
Telephone: +45 5370 7439

Jens Gamborg
Group communication
Telephone: +45 2496 9371

  • Interim report Q1 2021-22

  • BO_2109_ Interim report Q1 2021-22_UK


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Why I am transmitting the Toast IPO http://stormbirds.net/why-i-am-transmitting-the-toast-ipo/ Tue, 05 Oct 2021 15:37:00 +0000 http://stormbirds.net/why-i-am-transmitting-the-toast-ipo/ Good companies don’t always translate into good investment opportunities. Unfortunately, this disconnect often appears when exciting new ventures like the restaurant point of sale platform Toast (NYSE: TOST) Go in public. There are reasons to be excited about Toast as a company, but here’s why I’m passing on the company’s recent IPO – at least […]]]>

Good companies don’t always translate into good investment opportunities. Unfortunately, this disconnect often appears when exciting new ventures like the restaurant point of sale platform Toast (NYSE: TOST) Go in public.

There are reasons to be excited about Toast as a company, but here’s why I’m passing on the company’s recent IPO – at least for now.

Toast’s place in the point of sale area

Running a restaurant is no easy task; there are many aspects to ensuring the smooth operation of the operation. Restaurants are often small businesses and their founders may know more about food than business management and logistics.

Image source: Getty Images.

Toast is a cloud-based point-of-sale and software service that helps manage all aspects of running a restaurant business, including order entry, menu management, analysis, ordering online and much more.

The point of sale industry has many competitors, including Square, Speed ​​of light, Toast, Stripe and others. These businesses have all prospered because the addressable market is so large: There are over 31 million small businesses in the United States alone, and that number includes approximately 860,000 restaurants. Toast was designed for the restaurant industry from the ground up. This specialization has enabled it to carve out a market share among the competition since the Toast platform serves more than 40,000 restaurants.

Looking at the numbers

Toast generates income in several ways and divides its revenue into:

  • Subscription services
  • Financial technology solutions
  • Equipment
  • Professional services

The company generated revenue of $ 703.7 million in the first six months of 2021, up 105% year on year. Such growth is impressive, but it’s important to note that the first half of 2020 included the start of pandemic closures when many restaurants temporarily closed their doors or reduced their service, which made the comparison “easier” by 2021. While investors should monitor how the business continues to grow with the pandemic under control, revenue for the first half of this year was still up 155% from the same period in 2019.

Toast margins are a more pressing issue, in my opinion. The company’s gross profit margin for the first half of 2021 was 22%, which is a bit low for a tech company. The culprit here is Toast’s sale of computer hardware and professional services, which cost more than they generate income.

Investors should look for subscription revenue growth as Toast expands its customer base over time. Subscriptions are the most profitable segment of Toast’s business with a gross margin of 66%, but they have only contributed 10% of revenue for the year to date. Otherwise, the business is not profitable if you factor in the expenses of sales and marketing, research and development, and administration.

The hype machine at full power

As companies prepare to enter public markets, investment banks that underwrite the Initial Public Offering (IPO) are evaluating the stock. A company’s financial data, peer comparisons, overall history, and demand for stocks can all impact the price at which a company goes public. As a result, “hype” can be a factor.

Toast received a lot of attention ahead of its IPO, and the initial offering price rose accordingly. The deal ended up exceeding its initial range of $ 30 to $ 33 per share, priced at $ 40. When Toast began trading on September 22, its price climbed further with an opening trade of $ 65.26 per share, although it has since moved into the mid-range of $ 50.

Why am I sending Toast

Toast has generated $ 1.18 billion in revenue over the past four quarters. Its market cap of $ 28.4 billion at the time of this writing values ​​the stock at a price-to-sell (P / S) ratio of 24. Although it markets itself as a SaaS (software as a) company. service), the low margin somewhat tarnishes this narrative and could make it difficult to justify the high share price.

Lightspeed, a similar company that focuses on the wider hospitality industry, trades at a P / S ratio of 35, but its gross profit margin is much higher at 54%. Meanwhile, analysts expect industry leader Square to experience similar growth to Toast this year (101% revenue growth for 2021), but Square has a similar gross margin (23%) but is trading at a P / S ratio of less than eight.

These comparisons aren’t perfect – small businesses can often get a higher valuation because they have more room to grow over time. But given the valuation of similar stocks, it looks like the investor hype drove a lot of Toast’s near-term upside, which is why I’m passing the action on for now.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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7 things to know about the upcoming $ 4.2 billion IPO of AvidXchange Holdings (AVDX) shares http://stormbirds.net/7-things-to-know-about-the-upcoming-4-2-billion-ipo-of-avidxchange-holdings-avdx-shares/ Mon, 04 Oct 2021 21:09:30 +0000 http://stormbirds.net/7-things-to-know-about-the-upcoming-4-2-billion-ipo-of-avidxchange-holdings-avdx-shares/ Receive instant alerts for news on your actions. Claim your 1-week free trial for StreetInsider Premium here. AvidXchange Holdings (NASDAQ: AVDX) is expected to launch its IPO next week. The IPO will be available to investors on the RobinHood IPO access platform, among other brokerages. AvidXchange is a leading provider of automation software and Accounts […]]]>

Receive instant alerts for news on your actions. Claim your 1-week free trial for StreetInsider Premium here.


AvidXchange Holdings (NASDAQ: AVDX) is expected to launch its IPO next week. The IPO will be available to investors on the RobinHood IPO access platform, among other brokerages. AvidXchange is a leading provider of automation software and Accounts Payable, or AP, payment solutions for mid-market businesses and their vendors.

1. Avidxchange IPO calendar: AvidXchange Holdings is expected to have its IPO on October 13, 2021. The stock will trade on NASDAQ under the symbol “AVDX”. Normally, IPOs on NASDAQ started between 10:00 a.m. and 2:00 p.m. ET.

2. Avidxchange IPO price: AvidXchange Holdings shares are expected to be listed between $ 21 to $ 23 per share. It could go up or down in price depending on demand.

3. Offered shares: AvidXchange Holdings offers 22,000,000 shares of ordinary shares in the offering. The total number of shares outstanding after the offer will be 191,350,102 shares.

4. Valuation of the IPO: Pricing in the middle of the range would value AvidXchange at $ 4.21 billion.

5. Subscribers: The offering is led by Goldman Sachs, JP Morgan, BofA Securities, Barclays, Credit Suisse, KeyBanc, Deutsche Bank, Piper Sandler, Nomura and Fifth Third Securities.

6: Finances: Avidxchange generated revenues of $ 149.6 million in 2019 and $ 185.9 million in 2020, representing growth of 24.3% year over year. The gross margin was $ 62.6 million in 2019 and $ 85.4 million in 2020, resulting in a gross margin of 41.9% in 2019 and 45.9% in 2020. Our gross margin non-GAAP was $ 78.6 million in 2019 and $ 102.3 million in 2020, resulting in gross margins of 52.5% in 2019 and 55.0% in 2020. Our net loss was $ 93.5 million in 2019 and $ 101.2 million in 2020, and we have generated a net loss of over $ 484.0 million since our inception.

7. Total Addressable Market (TAM): In addition to providing B2B payments, the company believes they can become a strategic cornerstone of our supplier financial organizations to better manage expenses and cash flow. They believe there is a significant unmet need for supplier invoice financing, with nearly half of the market underserved. The company’s solutions help suppliers expedite prepayment invoices, manage supplier payment preferences and forecast future cash flows. They believe the total addressable market opportunity for these solutions represents over $ 20 billion in additional white space opportunities, bringing the total addressable market to north of $ 40 billion.


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Facts Behind FBN Holdings’ Second Quarter Profits Nearly Doubling http://stormbirds.net/facts-behind-fbn-holdings-second-quarter-profits-nearly-doubling/ Sun, 03 Oct 2021 21:39:00 +0000 http://stormbirds.net/facts-behind-fbn-holdings-second-quarter-profits-nearly-doubling/ FBN Holdings Plc took advantage of two major game-changing factors to accelerate earnings growth in the second quarter, resulting in an exceptional 96% after-tax profit growth for the quarter. The bank made a profit of 22.5 billion naira for the second quarter, which represents 59% of its closing profit of 38 billion naira for the […]]]>

FBN Holdings Plc took advantage of two major game-changing factors to accelerate earnings growth in the second quarter, resulting in an exceptional 96% after-tax profit growth for the quarter. The bank made a profit of 22.5 billion naira for the second quarter, which represents 59% of its closing profit of 38 billion naira for the six-month period ended June 2021.

The significant improvement in the bank’s second quarter results reflects positive changes in three major operational functions. These are revenue growth, cost savings through reduced loan impairment charges and interest charges.

Positive revenue growth helped the bank absorb a higher level of costs and cost savings on interest charges and loan impairment charges allowed management to increase its profit margin.

Non-interest income exclusively explains the improvement in gross profit of FBN Holdings in the second quarter. This was led by net gains from financial instruments of over N19 billion for the quarter compared to a net loss of N1 billion in the same quarter in 2020.

Other operating income also fell from less than N1 million to N14.6 billion quarter on quarter. On the downside for the quarter were a drop of more than 72 percent in net gains on the sale of investment securities and a foreign exchange loss of more than 2 billion naira during the same period.

The revenue gains were supported by significant cost savings related to loan impairment charges and the cost of funds. Loan impairment charges reversed from strong growth of around 36% in the first quarter to a decline of 46% in the second.

The bank closed its half-year operations with net loan impairment charges of 24.5 billion naira, a 20 percent year-on-year decline. This development puts the bank back on track to keep credit losses lower for the fifth year in a row.

Despite this slight increase in interest charges in the second quarter, the half-yearly figure of about 57 billion naira still represents a decline of about 25% year-on-year.

A combination of improved revenues and reduced costs resulted in a strong improvement in the bank’s profit margin in the second quarter. This improved the year-over-year net profit margin from 11% in the first quarter to 13% in the first half.

The stock of profit growth that the bank recorded in the second quarter is therefore a function of the recovery in revenues and a gain in profit margin.

With a strong second quarter exit, FBN Holdings regained lost ground in terms of first quarter results with a turnaround in revenues and profits. The development changed its earnings story from a 39% profit decline in the first quarter to a 7% year-over-year profit improvement at the end of half-year operations.

There is also a reversal from an over 14% drop in gross profits in the first quarter to a 13% quarter-on-quarter increase in the second quarter. The recovery in revenues in the second quarter changed the half-year position slightly down 1.4% to close at N292 billion.

Interest income remains a weak point in the bank’s income performance, closing the half-year operations with a drop of more than 22% to N161 billion. The decline in interest income was more than offset by a 47% increase in non-interest income to 131 billion naira year-on-year. This pushed the bank’s revenue performance from a decline in the previous quarter to a slight decline in the middle of the year.

The decline in interest income translated into a 21% drop in net interest income to less than 104 billion naira in the half-year. In addition, despite the decline in loan impairment charges, net interest income after charges fell further by 21% to 79 million naira at the end of June 2021.

Strong growth of 47% in non-interest income to 131 billion naira helped soften the decline in interest income and increased operating profit 9% year-on-year to 45 billion naira .

These developments put the bank back on the path to recovery and growth, which it has maintained over the past five years.

FBN Holdings closed the first half of fiscal 2021 with a balance sheet of over 8 trillion naira, one of the largest bank balance sheets in the Nigerian banking space. It increased the size of the balance sheet by 4% from the closing figure of 7.7 trillion naira in 2020.


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APAC region, Europe and America will become a profit hub for diesel fuel filters market players during the period 2021-2026 http://stormbirds.net/apac-region-europe-and-america-will-become-a-profit-hub-for-diesel-fuel-filters-market-players-during-the-period-2021-2026/ Sun, 03 Oct 2021 05:56:13 +0000 http://stormbirds.net/apac-region-europe-and-america-will-become-a-profit-hub-for-diesel-fuel-filters-market-players-during-the-period-2021-2026/ The Diesel Fuel Filters market report integrates all the key aspects such as predominant trends and opportunities which will positively impact the industry dynamics during the forecast period. In addition, it contains several recommendations and suggestions for effectively managing the present and future challenges in this vertical industry. Further, the research literature develops the sizes […]]]>

The Diesel Fuel Filters market report integrates all the key aspects such as predominant trends and opportunities which will positively impact the industry dynamics during the forecast period. In addition, it contains several recommendations and suggestions for effectively managing the present and future challenges in this vertical industry. Further, the research literature develops the sizes and shares of market segments, including product landscape, application spectrum, and regional terrain. It also highlights the effect of COVID-19 on this area and mentions strategies for effective risk management and high profits in the years to come.

Key points of COVID-19case studies:

  • COVID-19 footprint on social and economic status at regional and global levels.
  • Flows in the supply chain and changes in demand share.
  • Industry scenario before and after the pandemic.

Overview of the regional assessment:

  • Major regional markets are North America, Europe, Asia-Pacific, South America, Middle East & Africa, Southeast Asia.
  • The contribution of each region to the overall growth of the market is taken into consideration.
  • The growth rate, sales and revenue for each area are provided.

Request a copy of this report @ https://www.nwdiamondnotes.com/request-sample/25981

Other Vital Inclusions in the Diesel Fuel Filters Market report:

  • The report segments the product type of the Diesel Fuel Filters market into Ceramic Wall Filters, Ceramic Fiber Filters, and Sintered Fuel Filters.
  • Industry share and revenue for each product type are shown.
  • Critical information on the production market growth, patterns and annual growth rate of each product category during the analysis period is also documented.
  • The application spectrum of the Diesel Fuel Filters market is divided into passenger vehicles and commercial vehicles.
  • Estimates of the growth rate and market share of each application segment during the forecast period are accompanied by statistics to support the forecast.
  • The main competitors in the diesel fuel filter market are Denso, Phoenix, MAHLE, MANN + HUMMEL, YBM, Bosch, TOYOTA BOSHOKU, Freudenberg, Universe Filter, Baowang and ALCO Filters.
  • The companies mentioned are rated in terms of important parameters such as market remuneration, gross margins, pricing model and production capacity.
  • The report examines key trends and their impact on businesses in order to better understand the competitive dynamics in this vertical.
  • An in-depth industry supply chain assessment is conducted uncovering key manufacturers, raw material and equipment suppliers, and downstream customers.
  • The paper also infers the investment viability of a new project using several methods such as Porter’s Five Force Analysis and SWOT Assessment.

This Diesel Fuel Filters market research / analysis report contains answers to your following questions:

  • Who are the major global players in this Diesel Fuel Filters market? What is their company profile, product information, contact details?
  • What was the global market status of the market? What was the capacity, production value, cost and profit of the market?
  • What are the projections of the global industry taking into account the capacity, output and production value? What will the cost and profit estimate be? What will be the market share, supply and consumption? What about imports and exports?
  • What is the market chain analysis by upstream commodity and downstream industry?
  • What are the market dynamics of the market? What are the challenges and opportunities?
  • What should be the entry strategies, the countermeasures to the economic impact, the marketing channels for the industry?

The scope of the report:

The report offers a comprehensive company profile of key players competing in the global market. Diesel Fuel Filters Market with special emphasis on share, gross margin, net profit, sales, product portfolio, new applications, recent developments and several other factors. It also throws light on the vendor landscape to help the players to be aware of future competitive changes in the global Diesel Fuel Filters market.

Reasons to buy the report:

  • Improve your market research resources with this comprehensive and accurate report on the Global Diesel Fuel Filters Market
  • Get a comprehensive understanding of general market scenarios and future market situations to prepare you for challenges and ensure strong growth
  • The report offers in-depth research and various trends of the global Diesel Fuel Filters market
  • It provides a detailed analysis of changing market trends, current and future technologies used, and various strategies adopted by major players in the global Diesel Fuel Filters Market
  • It offers recommendations and guidance to new entrants to the global Diesel Fuel Filters market and carefully guides established players for future market growth.
  • Besides the most advanced technological advancements in the global diesel fuel filters market, it sheds light on the plans of the dominant players in the industry

TABLE OF MAIN CONTENTS OF THE REPORT:

  • Chapter 1 Industry Overview
  • Chapter 2 Production Market Analysis
  • Chapter 3 Sales Market Analysis
  • Chapter 4 Consumer Market Analysis
  • Chapter 5 Production, Sales and Consumption Market Benchmarking
  • Chapter 6 Major Manufacturers Production and Sales Market Benchmarking
  • Chapter 7 Major Product Analysis
  • Chapter 8 Analysis of Major Applications
  • Chapter 9 Industry Chain Analysis
  • Chapter 10 Global and Regional Market Forecast
  • Chapter 11 Major Manufacturers Analysis
  • Chapter 12 Feasibility Analysis of a New Investment Project
  • Chapter 13 Conclusions
  • Chapter 14 Appendix

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