Author: Akanksha

DE – Deere Stock Gains After Solid Q3 Results

Deere Stock Gains After Solid Q3 Results

  • Deere & Company (NYSE: DEreported third-quarter net sales and revenue growth of 29.2% year-over-year to $11.53 billion, beating the consensus of $10.3 billion.
  • Equipment Operations net sales improved 32%, and the Equipment-division operating margin was 19%.
  • Sales by segments: Production & Precision Agriculture $4.25 billion (+29% Y/Y), Small Agriculture & Turf $3.15 billion (+32% Y/Y), and Construction & Forestry $3.02 billion (+38% Y/Y), Financial services revenues $902 million (+1% Y/Y) and Others $212 million (+22% Y/Y).
  • EPS improved to $5.32 from $2.57 in 3Q20, beating the consensus of $4.57.
  • Deere’s operating profit increased by 61.4% Y/Y to $2.24 billion, and the margin expanded by 388 bps to 19.5%.
  • Deere generated cash from operating activities year-to-date of $4.31 billion, compared to $4.06 billion a year ago.
  • Recently, the company announced the acquisition of the Deere-Hitachi JV business for $275 million as consideration for the factories and intellectual property. The transaction is to be accretive to EPS in the first year.
  • FY21 Outlook: Deere expects net income attributable of $5.7 billion – $5.9 billion (prior $5.3 billion – $5.7 billion). Net operating cash flow from Equipment operations of $5.8 billion – $6 billion.
  • Price Action: DE shares are trading higher by 1.40% ay $363.99 during the premarket session on Friday.

LYTS – LSI Industries Stock Gains As Q4 Result Tops Consensus; Declares Dividend

LSI Industries Stock Gains As Q4 Result Tops Consensus; Declares Dividend

  • LSI Industries, Inc. (NASDA: LYTS) reported fourth-quarter sales growth of 53% year-over-year to $97.02 million, +39% on an organic basis, beating the consensus of $81 million.
  • Lighting Segment sales $52.7 million (+30% Y/Y), and Display Solutions Segment sales $44.3 million (+93% Y/Y).
  • Adjusted EPS improved to $0.12 from $0.07 in 4Q20, beating the consensus of $0.05.
  • The gross margin contracted by 124 bps to 23.6%.
  • Adjusted operating income increased by 82% Y/Y to $4.65 million, and margin expanded by 77 bps to 4.8%.
  • LSI Industries generated cash flow from operations of $3.37 million (-73% Y/Y), with Free cash flow of $2.66 million.
  • Adjusted EBITDA increased by 49% Y/Y to $6.82 million, and margin contracted by 18 bps to 7%.
  • The company had $68 million in long-term debt, resulting in a ratio of net debt to pro forma trailing twelve months Adjusted EBITDA of 2.5x.
  • LSI Industries declared a regular cash dividend of $0.05 per share payable on September 7, 2021, to shareholders of record on August 30, 2021.
  • Price Action: LYTS shares closed higher by 8.00% at $7.83 on Thursday.

AMRC – Ameresco Forms JV With Hannah Solar Government Services For Undisclosed Terms

Ameresco Forms JV With Hannah Solar Government Services For Undisclosed Terms

  • Ameresco Inc (NYSE: AMRCenters a joint venture with Hannah Solar Government Services (HSGS), a Service-Disabled Veteran-Owned Small Business (SDVOSB) renewable energy company. The financial terms of the JV were not disclosed.
  • The joint venture was facilitated as part of the SBA Mentor Protégé Program, which helps eligible small businesses, known as protégés, gain exposure and win government contracts through partnerships with mentors.
  • Ameresco will provide mentorship to Hannah Solar Government Services and bring cleantech solutions to customers in the Federal sector.
  • Together, the pair will work collaboratively to bring cleantech solutions to the Department of Veterans Affairs (VA) and other Federal agencies.
  • Price Action: AMRC shares are trading higher by 2.69% at $64.92 on the last check Wednesday.

OEG – Orbital Energy Stock Falls As Q2 Result Misses Consensus

Orbital Energy Stock Falls As Q2 Result Misses Consensus

  • Orbital Energy Group Inc (NASDAQ: OEGreported second-quarter revenue growth of 110% year-over-year to $16.3 million, missing the consensus of $22.03 million.
  • The company reported a gross loss of $(1.16) million, compared to a profit of $1.04 million a year ago, due to ramp-up costs associated with additional onboarding equipment, supplies, and personnel.
  • EPS of $(0.16), missed the consensus of $(0.12).
  • Adjusted net loss reduced to $(1.47) million, compared to $(3.66) million a year ago.
  • Loss from operation expanded to $(18.26) million from $(7.2) million in 2Q20.
  • Orbital Energy cash used in operating activities year-to-date was $22.77 million, compared to $8.97 million a year ago. 
  • Adjusted EBITDA loss widened to $(8.28) million, compared to $(4.81) million in 2Q20.
  • The company held cash and cash equivalents of $9.6 million and restricted cash of $1.2 million at the end of the quarter.
  • Orbital Energy’s total backlog increased to $294.9 million on June 30, 2021, up from $40.4 million on December 31, 2020, reflecting backlog growth across all operating segments.
  • “Going forward, we will continue to pursue synergistic strategic acquisitions that will generate strong organic growth. Through this strategy, we expect to build greater value for our shareholders and are on a trajectory to achieve profitable, long-term growth,” said Jim O’Neil, vice chairman, and CEO.
  • The company expects margins to improve substantially during the course of 2021.
  • Price Action: OEG shares are trading lower by 1.90% at $3.09 on the last check Monday.

JCI – Johnson Controls, Apollo Infrastructure Partner To Provide Energy Efficiency Services

Johnson Controls, Apollo Infrastructure Partner To Provide Energy Efficiency Services

  • Johnson Controls International PLC (NYSE: JCI) and funds managed by affiliates of Apollo Global Management Inc (NYSE: APO) have entered a strategic partnership to provide sustainability and energy efficiency services. The financial terms of the deal were not disclosed.
  • The new venture intends to provide customers across the U.S. and Canada with performance-based energy efficiency and smart buildings services at no upfront costs and predictable monthly fees.
  • The venture targets a range of efficiency offerings for schools, campuses, data centers, healthcare facilities, and commercial and industry facilities, as customers strive for environmental standards to combat climate change and reach carbon neutrality goals.
  • The sustainability services will leverage Johnson Controls’ experience in energy efficiency performance contracting, along with its OpenBlue smart buildings technology and services.
  • Apollo uses its infrastructure expertise and fund capital to offer customers solutions to meet energy savings and decarbonization objectives.
  • Price Action: JCI shares are trading lower by 0.29% at $72.82 and APO lower by 0.91% at $58.79 on the last check Thursday.

LUV – Southwest Airlines Warns It'll Be Difficult To Be Profitable In Q3

Southwest Airlines Warns It'll Be Difficult To Be Profitable In Q3

  • Southwest Airlines Co (NYSE: LUV) reported that July 2021 operating revenues performed in line with expectations, a decrease of ~12% (estimated a reduction of 10-15%) compared to July 2019, driven primarily by strong leisure passenger traffic and fares above July 2019 levels. 
  • Capacity (available seats per miles) was up 41% year-over-year and down 3% compared to July 2019. The load factor was ~87%.
  • July 2021 managed business revenues also performed according to expectations and decreased ~63% compared with July 2019.
  • Southwest Airlines has experienced a deceleration in close-in bookings and an increase in close-in trip cancellations in August 2021 due to a rise in COVID-19 cases associated with the Delta variant and believes these trends will make it difficult for the Company to be profitable Q3.
  • The Company continues to expect 3Q21 unit costs to increase in the range of 1 to 5 %, compared with 3Q19, and economic fuel costs to be $2.05 to $2.15 per gallon.
  • August 2021 operating revenue is estimated to be down 15% to 20% compared to 2019 (prior expectations were lower by 12% to 17%).
  • Southwest Airlines sees 3Q21 operating sales down 15-20% vs. 2019 levels, load factor 80-85%, and available seat miles up ~49% Y/Y.
  • As of August 9, 2021, the Company had cash and short-term investments of ~$16.9 billion.
  • Price Action: LUV shares are trading lower by 0.03% at $51.10 during the market session on Wednesday.
  • Photo by Eric Salard via Wikimedia

ASGN – ASGN Acquired Healthcare Analytics Firm Enterprise Resource Performance For Undisclosed Sum

ASGN Acquired Healthcare Analytics Firm Enterprise Resource Performance For Undisclosed Sum

  • ASGN Inc (NYSE: ASGNhas acquired Enterprise Resource Performance, Inc. (ERPi), a premier healthcare consulting and data analytics firm that delivers federal healthcare transformation services. The financial terms of the deal were not disclosed.
  • ERPi’s team of 250 consultants will become part of the Enterprise Solutions business unit within ECS, ASGN’s Federal Government Segment. 
  • ERPi provides IT solutions, data analytics, artificial intelligence/machine learning (AI/ML), and healthcare domain expertise to government entities.
  • “The acquisition of ERPi deepens ECS’ capabilities across a number of exciting solution areas and provides key contract vehicles that will bolster our current healthcare industry offerings,” commented George Wilson, President of ECS.
  • ASGN held cash and cash equivalents of $375.4 million as of June 30, 2021.
  • Price Action: ASGN shares closed lower by 1.77% at $102.40 on the last check on Monday.

MEG – Montrose Environmental Acquires Software Company SensibleIoT For Undisclosed Sum

Montrose Environmental Acquires Software Company SensibleIoT For Undisclosed Sum

  • Montrose Environmental Group Inc (NYSE: MEGhas acquired SensibleIoT, LLC, an IoT and software platform that interfaces with multiple air, water, and soil data sources to provide an integrated environmental solution with advanced data analytics capabilities. The financial terms were not disclosed.
  • “In combining Montrose’s environmental solutions with Sensible’s platform, we are able to offer further integrated services and data analytics that will help our clients meet their environmental goals,” said Jose Revuelta, Chief Strategy Officer of Montrose Environmental Group.
  • Montrose Environmental held cash in hand of $10.64 million as of March 31, 2021.
  • Price Action: MEG shares are closed lower by 0.44% at $50.04 on Monday.

UPWK – Upwork To Raise $500M Via Convertible Senior Notes Private Offering

Upwork To Raise $500M Via Convertible Senior Notes Private Offering

  • Upwork Inc (NASDAQ: UPWKplans to offer $500 million of convertible senior notes due 2026 in a private placement.
  • Upwork also intends to grant the initial purchasers an option to purchase up to an additional $75.0 million of notes. The notes will mature on August 15, 2026. Interest will be payable semiannually in arrears.
  • Upwork intends to use a portion of the net proceeds to pay the cost of the capped call transactions and the remainder for general corporate purposes.
  • Price Action: UPWK shares are trading lower by 8.18% at $47.05 on the last check Thursday.

TGI – Triumph Group Stock Plunges 10% As FY22 Outlook Lags Expectations, Q1 Revenue Decline

Triumph Group Stock Plunges 10% As FY22 Outlook Lags Expectations, Q1 Revenue Decline

  • Triumph Group Inc (NYSE: TGIreported a first-quarter sales decline of 19.9% year-over-year to $396.65 million, +11% Y/Y on an organic basis, which missed the consensus of $397.31 million.
  • Sales by segments: Systems & Support $258.41 million (+7.7% Y/Y) and Aerospace Structures $138.25 million (-43.4% Y/Y).
  • Adjusted EPS improved to $0.09 from $(0.15) in 1Q21, beating the consensus of $0.04.
  • The operating income increased to $20.83 million compared to the loss of $252.39 million a year ago, and the margin recovered to 5.3% from -51%. Adjusted operating margin expanded by 477 bps to 7.9%.
  • Triumph burned cash in operating activities of 149.51 million, compared to $197.53 million a year ago. Free cash flow used was $151.63 million.
  • Adjusted EBITDA increased to $41.02 million, compared to $17.61 million in 1Q21, and the margin expanded by 680 bps to 10.4%.
  • Triumph’s backlog at Q1 was at $1.9 billion.
  • The company, during the quarter, retired several non-recurring cash uses and is on track to complete the 747 productions later this month. They strengthened their balance sheet by reducing debt and have no substantive repayments until 2024.
  • FY21 Outlook: Triumph expects net sales of $1.5 billion – $1.6 billion vs. consensus estimate of $1.61 billion, GAAP EPS of ($0.15) – $0.05, and Adjusted EPS of $0.41-$0.61 vs. consensus of $0.61.
  • It expects cash flow used in operations of $110 million – $125 million and free cash use of $135 million – $150 million.
  • Price action: TGI shares plunge 10.6% at $17.62 on the last check Wednesday.
  • 1
  • 2