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Companies returning cash to shareholders can win the favor of current and potential investors.
Texas Instruments Incorporated
General Mills, Inc.
Eaton Corporation plc
Delta Air Lines, Inc.
The Hartford Financial Services Group, Inc.
Brown & Brown, Inc.
C.H. Robinson Worldwide, Inc.
Franklin Resources, Inc.
Huntington Ingalls Industries, Inc.
The New York Times Company
Reliance Steel & Aluminum Co.
Spirit AeroSystems Holdings, Inc.
ABM Industries Incorporated
Cathay General Bancorp
Barnes Group Inc.
Delta Air Lines (NYSE: DAL) has issued notices to 2,558 pilots warning of potential layoffs, Bloomberg reported on Thursday, a worrisome sign of what to expect from airlines this fall if passenger traffic does not return and the industry is forced to dramatically shrink its operations. Delta had hinted that it would soon send out furlough notices to pilots last week after it reached an agreement with its pilots' union on an early-retirement package. Airlines have been hit particularly hard by the COVID-19 pandemic; Delta has already warned that its second-quarter revenue will be down by as much as 90% year over year.
Delta (DAL) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The Zacks Analyst Blog Highlights: Delta Air Lines, American Airlines, United Airlines, Azul and Hawaiian Holdings
The U.S. Treasury said Thursday it has finalized loan terms with five airlines, part of the nearly $50 billion in assistance offered to the industry as part of the CARES Act stimulus plan. Treasury has reached deals with American Airlines Group (NASDAQ: AAL), Spirit Airlines (NYSE: SAVE), Hawaiian Holdings (NASDAQ: HA), SkyWest (NASDAQ: SKYW), and Frontier Airlines. Other carriers including Delta Air Lines have said they could eventually participate in the program, but American in particular has been vocal for months, saying it intends to tap the government for funding.
Over the past five trading sessions, the defense biggies put up a mixed show with Boeing and Lockheed Martin losing but Northrop and Textron recording gains.
Earlier this year, the CARES Act helped avert a tidal wave of layoffs and furloughs in the U.S. airline industry. In return for a total of $25 billion in grants to major passenger airlines (roughly 30% of which must be paid back), airlines had to agree not to implement any involuntary layoffs or furloughs before Oct. 1. For Delta Air Lines (NYSE: DAL), that could entail furloughing more than 2,500 pilots.
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(Bloomberg) -- The Chinese company behind the fast-growing Perfect Diary cosmetics brand has picked Goldman Sachs Group Inc. and Morgan Stanley to prepare for a potential initial public offering, according to people familiar with the matter.Guangzhou Yatsen E-Commerce Co., or Yatsen Global as it is known, aims to raise $400 million to $500 million in an offering, which could happen as soon as the end of this year, the people said. It has been considering Hong Kong among potential listing venues though no final decision has been made, said the people, asking not to be identified as the matter is private.Yatsen raised about $100 million in its latest funding round earlier this year, valuing the firm at about $2 billion, the people said. Tiger Global Management, Hopu Investment Management, Hillhouse Capital and Hony Capital are among its backers, according to its website.The founders started the cosmetic company in 2016, naming it after their alma mater which commemorates China’s first president Sun Yat-sen. The firm has developed over 700 beauty products and now has more than 25 million online followers. It plans to increase the number of Perfect Diary stores to more than 600 by 2022, up from 40 in 2019. In June, Yatsen launched its second brand, Abby’s Choice, featuring skincare, makeup and other products aimed at a female young adult demographic.Preparations for the IPO are at an early stage and details including size and timing could change, the people said. Representatives for Goldman Sachs, Morgan Stanley and Yatsen Global declined to comment.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Lemonade Inc., the online home insurance provider backed by SoftBank Group Corp., is set to raise $319 million in its U.S. initial public offering.The company will sell 11 million shares at $29 apiece, Lemonade said in a filing, confirming an earlier Bloomberg News report. It was marketing 11 million shares at $26 to $28 each after boosting the range from $23 to $26, according to filings with the U.S. Securities and Exchange Commission.At $29, Lemonade would have a market value of $1.6 billion, based on the number of shares outstanding listed on its IPO filings.SoftBank led a $300 million funding round in Lemonade last year, valuing the company at $2.1 billion at the time, Bloomberg News previously reported. SoftBank will own a 21.8% stake in the company upon the IPO, the filing shows. Sequoia Capital Israel and General Catalyst are also among backers.Lemonade has yet to turn profitable since its inception in 2015, it said in its prospectus. It reported a $36.5 million net loss in the three months ended March compared to a net loss of $21.6 million during the same period last year. Its sales have more than doubled in that period.The company allows customers to buy insurance policies on a mobile app after answering several questions. It also pledges to donate the leftover funds, after expenses, to a charity in order to discourage fraudulent claims.While the company is headquartered in New York, it has roots in Israel and it has 123 full-time employees there, its filing showed.Goldman Sachs Group Inc., Morgan Stanley, Allen & Co. and Barclays Plc are leading the offering. Citadel Securities is the designated market maker for the listing.Lemonade will list on the New York Stock Exchange Thursday under the symbol LMND.(Updates with details from statement in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Grupo Aeromexico SAB’s financing plan under its Chapter 11 bankruptcy protection filing could be ready in the next four to six weeks, Chief Executive Officer Andres Conesa said.The voluntary filing will allow the company to weather the coronavirus pandemic however long it may last, Conesa said in an interview Wednesday.Aeromexico’s bankruptcy protection filing came after the carrier saw the number of passengers it flew plummet more than 90% as governments grounded flights and travelers stayed home. Airlines in Latin America, unlike their counterparts in the U.S. and Europe, have received scant government support.“We’re solvent, we have assets, but we haven’t been able to tap financial markets over the past three months,” Conesa said. “This will allow us to access better financing that we wouldn’t get otherwise.”Since the pandemic started, the carrier has had to dole out 1.5 billion pesos ($65.8 million) to repay debt, Conesa said. Aeromexico’s total debt reached $1.9 billion and 7.9 billion pesos, according to the first day petition filed on Wednesday before the court.DIP FinancingLatam Airlines Group SA, which also filed for creditor protection in May, is seeking as much as $2.15 billion in new debt, according to court filings. Avianca Holdings SA has not specified how much it is seeking, a spokeswoman said.Conesa says he doesn’t see Aeromexico needing that much, though a final number is still four to six weeks away. Now that the filing has been made, a group of creditors will get together this month and they, alongside the company and a judge, will decide how much needs to be raised and what form the restructuring will take.“We’ll likely have a mix of plain and convertible debt,” he said. “But the message is clear -- we’re focused on keeping Aeromexico flying and acting responsibly. We’re not thinking about the equity side at the moment.”The carrier received zero support from the government, Conesa said. “The government was very clear on that. The entire region is heading towards a market restructure, and that will allow us to have an even better future.”Flexible FleetAeromexico owns about 30% of its fleet, Conesa said, which stood at 130 jets before the pandemic started. Those assets could be offered as collateral through sale-and-lease-back operations, he said.Additional flexibility comes from its leases being staggered. Contracts for about 15% of its fleet expire over the next 15 months, he said.Another decision to be made in the coming weeks will be what routes to keep and at what frequencies. This month, the airline will fly about half of the domestic flights it had in July last year and about 20% of its international ones.When, or if, to bring the rest back will largely depend on demand and on governments’ flight restrictions across the globe, he said. The airline, which still has nine Boeing 737 Max aircraft to be delivered, said it is reviewing its contract conditions with the plane maker.The airline will likely emerge slimmer from the proceedings, Conesa said, but that won’t mean a change to its business model and he doesn’t see aggressive fare cuts necessary to compete with domestic rivals.“Aeromexico’s essence will continue, it was working so far,” he said. “But not even the strongest airline in the world can withstand this.”Aeromexico operates routes in Mexico and internationally to destinations including the U.S., Canada, Europe and Asia. Delta Air Lines Inc. is its biggest shareholder.The airline has been able to avoid lay-offs until now, but Conesa says fewer flights in the future will likely require adjustments, though he declined to give a figure. The carrier’s workforce stands at about 16,000, he said.Aeromexico is being advised by Davis Polk & Wardwell LLP, Rothschild & Co., Cervantes Sainz S.C., AlixPartners and Skyworks Holdings, LLC.(Updates with details on next steps starting in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
GIS earnings call for the period ending May 31, 2020.
(Bloomberg Opinion) -- You probably need only look inside your own pantry to have some idea of what a blockbuster spring it has been for the packaged food industry. General Mills Inc. reported Wednesday that organic sales, a measure that excludes currency fluctuations and other factors, shot up 16% in the quarter from a year earlier as people loaded up on Gold Medal flour, Cheerios, and Pillsbury rolls to ride out the pandemic. A day earlier, Conagra Brands Inc., corporate parent of labels such as Duncan Hines and Marie Callender’s, reported similarly robust growth, with quarterly organic sales rising 22% percent from a year earlier.My colleague Tara Lachapelle has written that this sector shouldn’t get too comfortable with these kinds of results, and she’s right. The panic-buying at the beginning of the U.S. Covid-19 outbreak was a one-off spasm of spending that won’t be repeated, and the long-term shift toward healthy eating and fresh ingredients isn’t going away. But the pandemic is bound to change our eating habits in some ways that stick. Many Americans will be keeping their new routines for months to come if their workplaces don’t reopen and kids don’t return to in-person schooling. That provides ample opportunity to reinforce habits that could outlast stay-at-home guidelines. The latest earnings results from Conagra and General Mills offer some clues as to where the industry may be able to build durable sales growth. General Mills saw an especially strong sales increase, 75% percent from a year earlier, in its U.S. meals and baking category. I’m not optimistic it can hang on to much of the growth in its Progresso Soup business, given that canned soup has generally proved an extremely tough sell to younger shoppers. But the company has products in this portfolio that aren’t necessarily out-of-sync with pre-pandemic eating values and make even more sense for families now that more meals are happening at home. For example, a shelf-stable Old El Paso taco dinner kit helps make a quick dinner that includes fresh beef and produce. With some marketing around that message, there’s no reason this product couldn’t become a go-to in many more homes. General Mills also reported that sales of Gold Medal flour, Pillsbury refrigerated baking items and Betty Crocker desserts were especially robust in the quarter – no surprise given the surge of interest in baking. There’s a chance General Mills could keep some of these newbie bakers engaged by pummeling them with recipe ideas on Pinterest and reminding them in commercials that baking is a way to spend time with their kids that doesn’t involve staring at a screen. Conagra, meanwhile, said Tuesday that retail sales of frozen vegetables, which includes its Birds Eye brand, surged 26.5% from a year earlier in the quarter. The company said the demand for such products outpaced supply in the quarter, which led it to seek out external manufacturing partners to ramp up production. This is a smart area of investment. Frozen veggies very much fit with a healthy eating ethos, so Conagra should be able to retain a piece of the recent sales growth it notched from new and lapsed customers.Packaged-food companies still face deep challenges in returning to relevance, but they should not resign themselves to thinking the pandemic is simply a temporary boon to their business. It is a time when longstanding eating habits are breaking and new ones are forming. They have only themselves to blame if they don’t leverage this moment to claim more permanent space in America’s cupboards and refrigerators.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of United Airlines Holdings (NASDAQ: UAL) jumped 10% at the open, while shares of American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) opened up 9% apiece and Delta Air Lines (NYSE: DAL) and JetBlue Airways (NASDAQ: JBLU) were each up 6% apiece. The stocks all gave back some of their gains as the morning went on, but investors on Wednesday are looking for reasons to feel positive about what has been a beaten-down sector due to the pandemic.
General Mills' (GIS) fourth-quarter fiscal 2020 results reflect the impact of higher sales, thanks to coronavirus-led higher at-home consumption.
Templeton Emerging Markets Income Fund [NYSE: TEI] today announced a monthly distribution from net investment income of $0.0506 per share, payable on July 31, 2020, to shareholders of record on July 15, 2020 (Ex-Dividend Date: July 14, 2020).
Mexican airline Grupo Aeromexico SAB de CV filed for Chapter 11 bankruptcy in the United States late Tuesday, becoming the third major Latin American airline to seek bankruptcy protection due to the COVID-19 pandemic. Aeromexico in a statement said it intends to use the Chapter 11 process to reorganize its operations and strengthen its financial position. "Our industry faces unprecedented challenges due to significant declines in demand for air transportation," Aeromexico CEO Andrés Conesa said in a statement.
Templeton Global Income Fund [NYSE: GIM] today announced a monthly distribution from net investment income of $0.0155 per share, payable on July 31, 2020, to shareholders of record on July 15, 2020 (Ex-Dividend Date: July 14, 2020).
General Mills (GIS) delivered earnings and revenue surprises of 3.77% and 0.91%, respectively, for the quarter ended May 2020. Do the numbers hold clues to what lies ahead for the stock?
A rising dividend stream not only hedges against inflation, it also accelerates payback on investment.