Latest news with #0.6
Mint
7 days ago
- Business
- Mint
Banks, energy stocks lift Australian shares as inflation data keeps rate-cut bets intact
May 29 (Reuters) - Australian shares advanced on Thursday, led by banks and energy stocks, a day after data showed that inflation remained steady in April and within the central bank's target range, encouraging bets of further interest rate cuts this year. The S&P/ASX 200 index rose 0.2% to 8,414.80, as of 0034 GMT. The benchmark closed 0.1% lower on Wednesday. Data from the Australian Bureau of Statistics on Wednesday showed that consumer inflation held steady in April leaving the wagers of further rate cuts from the Reserve Bank of Australia still on the table. Financials rose 0.4%, with the country's top four banks climbing between 0.2% and 0.6%. Energy stocks rose 1.1% as oil prices gained after a U.S. court blocked President Donald Trump's tariffs from taking effect, among other factors. Woodside and smaller rival Santos added 1.3% and 0.6%, respectively. On the other hand, mining stocks fell for a third session in a row, down 0.4%, on extended downturn of iron ore futures from slowing steel production in top consumer China. BHP, Rio Tinto and Fortescue dropped 0.7%, 0.2% and 0.3%, respectively. Gold stocks slipped 0.7% to a one-week low despite steady bullion prices. Northern Star Resources declined 1.5% and Evolution Mining dropped 1.9%. Meanwhile, local technology stocks gained 0.5% as sentiment improved after Nvidia's first-quarter sales beat estimates. The sub-index is hovering near a three-month high, with WiseTech Global and ASX-listed shares of Xero climbing 0.4% and 0.2%, respectively. Meanwhile, New Zealand's benchmark S&P/NZX 50 index fell 0.2% to 12,334.11. The Reserve Bank of New Zealand lowered borrowing costs by 25 basis points on Wednesday. The central bank flagged a deeper easing cycle than it previously estimated in view of rising risks from a sharp shift in U.S. trade policies. (Reporting by Sneha Kumar in Bengaluru; Editing by Rashmi Aich)
Scoop
24-05-2025
- Politics
- Scoop
Budget 2025 Robs Researchers To Pay For Regulation
Press Release – New Zealand Association of Scientists This years budget allows us to update our analysis showing how far short of the 0.6% of GDP target we fall. We advocate for alternative budgets that initially restore core public research investment to inflation-adjusted 2019 levels and then proceed … NZAS Co-Presidents Lucy Stewart and Troy Baisden have made initial comments on the Budget released by the coalition government this week, highlighting the 're-prioritisation' of frontline research funds to pay for the government's science reforms. Pre-Budget commentary has emphasised that Aotearoa New Zealand's research and science system has been under-funded by successive governments for decades and that meaningful new funding is needed if we want to achieve the same level of science and innovation as other small advanced economies [1]. The need for funding from government was also a key theme of the first Science System Advisory Group report released in January 2025 [2]. Prof Troy Baisden laments, 'Following last year's nothing-burger budget for science, this year edges toward a black hole budget for the research system. Many areas of research may now be heading across a threshold where there's no escape and they can no longer rebuild what is being lost.' Dr Lucy Stewart comments, 'The Government signalled that there was unlikely to be new spending for research and science in this Budget. They have also, in the past six months, demonstrated a willingness to take funding away from areas of research that they do not see as priorities. This was most clearly illustrated by the changes to the Marsden Fund in December 2024, which removed social sciences and humanities from the eligible areas of research. In recent weeks they have also announced that the Endeavour Fund will not award new funding in 2026 and will only offer extensions to current projects which are considered to be 'value for money' and to align with the government's priorities. At the same time, they have committed to significant reforms to the science system including the establishment of three – or perhaps four – new Public Research Organisations, two created by merging existing Crown Research Institutes, as well as the establishment of a new regulator for genetic technologies. These reforms will cost money. In this Budget, we learn that they propose to pay for them by cutting yet more money from our core research funds – primarily the Health Research Fund, which has $17 million less budgeted in the 2025/2026 financial year, as well as the Catalyst Research fund, which loses $12 million. The Strategic Science Investment Fund is also hit by significant 'reprioritisation' of funds forecast across the next three years, and cuts of approximately $5 million are proposed for the Marsden Fund in 2026/2027 and 2027/2028 as well. The Marsden Fund has effectively not received any new funding for nearly a decade, so it is already very hard-hit by inflation. As I said last year, I expect to see more job losses across the sector before the end of the year. Many researchers depend entirely on contestable funding to support their jobs and less contestable funding available means fewer researchers will be employed. I do note that there are small but relatively meaningful increases budgeted for funds supporting the development of mātauranga Māori researchers and organisations, PhD students working on applied science, and early and mid career researcher fellowships. This is good to see. However, at the same time the research system that these researchers are part of is being torn down around them. Small increases cannot make up for that.' Prof Troy Baisden adds: 'Today's budget continues to double down on a pattern spanning four decades, in which New Zealand's governments have been world leaders in choosing not to invest in the future. We appear determined to fall behind peer nations with our investment in research, science, innovation and technology. This is increasingly true for universities, which continue to see the increasing support they saw across the decade to 2020 reversed. There's almost no good news, with significant areas now having gone many years without any adjustment for the pulse of inflation. Areas we depend on such as GeoNet, which helps us understand earthquakes and tsunamis as they affect us, are seeing budget cuts of around 13%. The significant research programmes supported through the Ministry of Primary Industries are not immune, with reductions of $25 million across areas such as sustainable land management and greenhouse gas emissions reductions. We're seeing not just funding cuts in the future, but also 'efficiencies' where underspending has occurred relative to signalled allocations. Relatively small new initiatives in space science, touted as an important new area while Judith Collins was Minister, appear to be petering out to nothing. The Table of Estimates produced with Budget 2025 also allows us to look back, from an estimate for the year just ended to finalised funding in previous years. Funding for the entire tertiary education sector has flatlined then declined, following the period when Government helped stabilise the sector during the pandemic's impacts. Up until 2019 the sector was growing consistently. Although the current budget is consistent with the pre-2019 trend in dollar terms, it doesn't account for the recent pulse of inflation. Institutional budgets are undergoing increasing stress and provide little solace to top research teams who miss out or are now deemed ineligible for contestable research funding such as the Marsden fund. A very disappointing case is the significant cuts to the Health Research Fund, slowing the front of a pipeline into an innovation ecosystem where New Zealand has global companies. When last year's budget emerged with cuts to science, we noted that our hope for this year sat with Sir Peter Gluckman's Science System and University Advisory Groups (SSAG and UAG) to make a case for future funding. The first SSAG report made a very strong case, in part noting that we should focus more on the foundation that core public research investment provides. When carried out with sufficient quality, core public research investment of about 0.6% of GDP ensures that additional investments by government and business have strong payoffs. These payoffs across the economy have been tallied as an average of $11 for every dollar invested in Europe, or $5–20 for every dollar invested in Australia. The government is calling for that further investment, but we continue to undermine the foundation that's needed for these payoffs to be reliable. This year's budget allows us to update our analysis showing how far short of the 0.6% of GDP target we fall. We advocate for alternative budgets that initially restore core public research investment to inflation-adjusted 2019 levels and then proceed to the 0.6% target over 5 years.' 2
Yahoo
16-05-2025
- Business
- Yahoo
ALHC Q1 Earnings Call: Membership Growth and Margin Expansion Drive Upbeat Outlook
Health insurance company Alignment Healthcare (NASDAQ:ALHC) announced better-than-expected revenue in Q1 CY2025, with sales up 47.5% year on year to $926.9 million. The company expects next quarter's revenue to be around $957.5 million, close to analysts' estimates. Its non-GAAP profit of $0.05 per share was significantly above analysts' consensus estimates. Is now the time to buy ALHC? Find out in our full research report (it's free). Revenue: $926.9 million vs analyst estimates of $888.1 million (47.5% year-on-year growth, 4.4% beat) Adjusted EPS: $0.05 vs analyst estimates of -$0.07 (significant beat) Adjusted EBITDA: $20.18 million vs analyst estimates of $4.4 million (2.2% margin, significant beat) The company lifted its revenue guidance for the full year to $3.79 billion at the midpoint from $3.75 billion, a 1.2% increase EBITDA guidance for the full year is $49 million at the midpoint, above analyst estimates of $47.1 million Operating Margin: -0.6%, up from -6.5% in the same quarter last year Free Cash Flow was $8.36 million, up from -$17.36 million in the same quarter last year Customers: 217,500, up from 189,100 in the previous quarter Market Capitalization: $2.95 billion Alignment Healthcare began 2025 with a notable increase in membership and year-over-year revenue, propelled by its ability to manage medical costs and scale its clinical care model. CEO John Kao credited the company's approach to serving seniors, particularly through care coordination for complex and dually eligible populations, as key to its success. Kao emphasized, "Our model combines the product control and data visibility of a health plan, clinical insights of a modern technology platform, medical management expertise of a care delivery organization and member experience of a consumer-first company." Looking forward, management raised full-year revenue and profit guidance, citing strong enrollment momentum and favorable industry dynamics. CFO Thomas Freeman highlighted the company's operational leverage and prudent approach to medical and pharmacy cost trends. He noted that Alignment plans to channel some early-year gains into member engagement and provider partnerships, aiming to build a durable growth platform as the Medicare Advantage landscape continues to evolve. Alignment Healthcare's management attributed the first quarter's growth to robust membership gains and strong execution in medical cost management. The following insights emerged from their remarks: Membership Expansion: The company grew membership by approximately 32%, with significant gains both in California and ex-California markets. Management pointed to the scalability of its clinical model and care coordination capabilities as core drivers. Clinical Model Scaling: The scaling of the AVA (Alignment's technology-enabled care model) enabled improved identification and engagement of high-risk seniors. This allowed for proactive care management, especially for dually eligible and chronically ill members, which management believes sets Alignment apart. Medical Cost Control: Alignment reported better-than-expected improvement in its medical benefit ratio (MBR), highlighting effective inpatient utilization management and favorable prior-year reserve releases. Management noted that these trends supported margin expansion despite rapid top-line growth. Strategic Technology Investment: Ongoing advances in the AVA platform are targeted at automating member experience and optimizing care outcomes. Management described a focus on efficacy and adoption rates of AVA modules, with plans to double down on those delivering measurable value. Leadership Transition: The company announced the transition of its long-serving CFO Thomas Freeman to a strategic advisor role, with Jim Head, a veteran healthcare finance executive, stepping in as the new CFO. Management framed this as a step to support Alignment's next phase of growth and scaling. Management outlined a constructive outlook for 2025, driven by membership growth, operational efficiencies, and continued investments in technology and partnerships. The main themes shaping guidance are: Provider Collaboration Focus: Management plans to deepen long-term partnerships with providers, especially to better serve high-need seniors. These collaborations are expected to support both growth and cost control efforts. Technology and Data Leverage: Continued investment in the AVA platform aims to advance clinical quality and member experience, with the goal of automating and personalizing care at scale. Management believes this will further distinguish Alignment in a competitive Medicare Advantage market. Regulatory and Competitive Factors: Management highlighted the impact of new Medicare Advantage payment rates and risk model changes, noting that Alignment's high plan quality ratings and efficient cost structure position it to benefit relative to some competitors. However, they acknowledged ongoing uncertainties regarding policy changes and market behavior. Ryan Daniels (William Blair): Asked about plans for expanding provider partnerships and possibly offering technology solutions externally. Management indicated that, while expansion is underway, any move into external enablement will be approached cautiously and only if it is sustainable. Michael Ha (Baird): Inquired about the drivers behind medical loss ratio outperformance and the potential pull-forward of earnings from Part D changes. Management clarified that Part D timing was a minor factor and that broader utilization trends and reserves management were more significant. Jessica Tassan (Piper Sandler): Queried about competitive changes in California and how Alignment will prepare its salesforce for increased rivalry. Management said it feels well-positioned due to partnership strengths and does not view smaller competitors as a long-term threat. Whit Mayo (Leerink Partners): Sought clarity on Alignment's risk adjustment revenue processes for new members and visibility on reimbursement. Management explained its conservative approach, booking revenue based on actual payments to avoid surprises. Joanna Gajuk (Bank of America): Asked if further Medicare Advantage rate changes could be a headwind or opportunity for market share. Management stated that its business model is designed to adapt to either environment, emphasizing focus on cost and quality. In the coming quarters, the StockStory team will be monitoring (1) the scalability of Alignment's AVA technology platform in new and existing markets, (2) the company's ability to sustain membership growth while preserving or improving margins, and (3) further developments in provider partnerships and regulatory policy changes affecting Medicare Advantage. Execution on these priorities will be central to evaluating Alignment's trajectory. Alignment Healthcare currently trades at a forward EV-to-EBITDA ratio of 51.8×. Should you load up, cash out, or stay put? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. 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Yahoo
15-05-2025
- Business
- Yahoo
MGPI Q1 Earnings Call: Revenue Tops Expectations, Margin Pressures Remain Amid Strategic Refocusing
Food and beverage supplier MGP Ingredients (NASDAQ:MGPI) reported revenue ahead of Wall Street's expectations in Q1 CY2025, but sales fell by 28.7% year on year to $121.7 million. The company expects the full year's revenue to be around $530 million, close to analysts' estimates. Its non-GAAP profit of $0.36 per share was 3.3% below analysts' consensus estimates. Is now the time to buy MGPI? Find out in our full research report (it's free). Revenue: $121.7 million vs analyst estimates of $117.5 million (28.7% year-on-year decline, 3.5% beat) Adjusted EPS: $0.36 vs analyst expectations of $0.37 (3.3% miss) Adjusted EBITDA: $21.76 million vs analyst estimates of $19.54 million (17.9% margin, 11.3% beat) The company reconfirmed its revenue guidance for the full year of $530 million at the midpoint Management reiterated its full-year Adjusted EPS guidance of $2.60 at the midpoint EBITDA guidance for the full year is $110 million at the midpoint, above analyst estimates of $107.9 million Operating Margin: -0.6%, down from 17% in the same quarter last year Free Cash Flow was $24.76 million, up from -$2.4 million in the same quarter last year Market Capitalization: $691.8 million MGP Ingredients delivered first quarter results that management described as in line with expectations, emphasizing early progress on its core initiatives to stabilize the brown goods (whiskey) business and focus on premium brands within its Branded Spirits segment. Interim CEO and CFO Brandon Gall highlighted that while industry-wide whiskey inventories remain elevated and consumer demand is cautious, targeted investments in premium products like Penelope, El Mayor, and Rebel 100 led to growth within the company's Premium Plus portfolio. Gall noted, 'These early signs of stabilization are encouraging and give us confidence that the proactive steps we're taking are beginning to take hold.' Looking ahead, management reaffirmed its full-year revenue and profit guidance, citing ongoing productivity initiatives and cost controls as central to achieving its targets. Gall reiterated that operational execution, particularly in ingredient production and customer partnerships, will be key for the remainder of the year. The company believes its pipeline of innovation and efficiency projects, along with a strengthened balance sheet, position it to navigate current market headwinds. Management stated it would continue to monitor the industry's inventory correction and supply chain challenges, maintaining a focus on shareholder value creation. MGP Ingredients' management attributed first quarter performance to a mix of consumer and industry trends, as well as disciplined execution of strategic initiatives. The quarter's deviations from analyst expectations were primarily linked to a sharper decline in year-over-year revenues, offset by better-than-expected cost controls and working capital management. Premium Plus brands drive growth: The Branded Spirits segment's Premium Plus portfolio, including Penelope, El Mayor, and Rebel 100, posted 7% growth, fueled by targeted brand investment and product innovation such as Penelope Wheated and ready-to-serve cocktails. Distilling Solutions stabilization efforts: Management focused on recalibrating customer contracts and production volumes in Distilling Solutions, leading to more collaborative customer relationships and extended agreements, though overall brown goods volumes and pricing were down as anticipated. Ingredient Solutions execution challenges: Sales in the Ingredient Solutions segment were impacted by adverse weather and the Atchison distillery closure, but management cited progress on operational projects like the Deep Well and biofuel facilities, expected to improve efficiency and margin in future quarters. Cost structure and productivity: The company's ongoing productivity agenda, including scheduling optimization and supply chain efficiencies, helped mitigate margin pressures from lower whiskey volumes and ingredient production issues. Leadership and governance updates: The ongoing CEO search continues, but recent Board of Directors changes are intended to strengthen oversight and support execution of growth initiatives, with Gall emphasizing that strategic projects are moving forward despite interim leadership. Management's outlook for the remainder of the year is shaped by ongoing efforts to optimize product mix, improve operational reliability, and navigate an industry-wide inventory reset, with a focus on margin discipline and targeted brand investments. Premiumization strategy: The company believes continued emphasis on premium spirits brands and innovation will support revenue stability, even as mid- and value-tier brands face ongoing declines and promotional pressures. Operational improvements: Projects in ingredient production, such as the new biofuel facility and increased maintenance investment, are expected to improve reliability and reduce costs, positioning the Ingredient Solutions segment for sequential improvement. Risks from market dynamics: Management acknowledged the risk of prolonged elevated whiskey inventories across the industry, as well as potential supply chain disruptions and consumer caution, which could affect timing and magnitude of any recovery. Marc Torrente (Wells Fargo): Asked about the visibility and progress in recalibrating customer contracts in Distilling Solutions. Management said 75% of customer negotiations are complete, with most adjustments reflected in current guidance and further extensions possible. Bill Chappell (Truist Securities): Sought more detail on stabilization actions for mid- and value-tier spirits brands and improvement plans for Ingredient Solutions. Management pointed to price support strategies and operational investments, expecting gradual improvement but emphasizing execution risk. Seamus Cassidy (TD Cowen): Questioned whether Premium Plus growth exceeded expectations and how pricing actions will impact segment margins. Management confirmed a strong start from Penelope but maintained a cautious full-year outlook, noting that price reductions do not always translate to lower margins. Sean McGowan (ROTH Capital): Inquired about any demand shifts related to tariff concerns and the sustainability of Penelope's improved performance. Management reported no evidence of tariff-driven customer behavior and reiterated optimism about Penelope's growth trajectory. Mitch Pinheiro (Sturdivant): Asked about production timing, inventory management, and the effect of lower throughput on cost structure. Management explained that higher Q1 branded barrel put-away was due to scheduling and affirmed productivity initiatives are designed to maintain competitiveness despite volume reductions. In upcoming quarters, the StockStory team will be monitoring (1) the pace and success of renegotiated customer contracts and inventory management in the Distilling Solutions segment, (2) operational reliability and throughput improvements in Ingredient Solutions as new projects come online, and (3) the ability of premium brands to offset declines in mid- and value-tier spirits. Execution on cost-saving and productivity initiatives, as well as the ongoing CEO search, will also be key indicators of future performance. MGP Ingredients currently trades at a forward P/E ratio of 12.2×. At this valuation, is it a buy or sell post earnings? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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Yahoo
15-05-2025
- Business
- Yahoo
UK economy grew more than expected in first three months of year
The UK's economy grew by more than expected in the first three months of the year, according to the latest official figures. The economy expanded by 0.7% in the January-to-March period, which was stronger than the 0.6% that analysts had forecast. The Office for National Statistics (ONS) said growth was largely driven by the UK services sector, although production also "grew significantly". The figures mark the period just before the US imposed import tariffs and UK employer taxes increased in April, and analysts warned the strong rate of growth was unlikely to continue. Chancellor Rachel Reeves said the latest figures showed "the strength and potential of the UK economy". "In the first three months of the year, the UK economy has grown faster than the US, Canada, France, Italy and Germany," she added. But shadow chancellor Mel Stride pointed out that both the Office for Budget Responsibility and the International Monetary Fund had downgraded the UK's growth forecast for this year. He also criticised the rise in employers' National Insurance payments, which came into effect in April, calling it a "jobs tax". "Labour inherited the fastest-growing economy in the G7, but their decisions have put that progress at risk," he said. Liberal Democrat Treasury spokesperson Daisy Cooper said the data was "positive news", but there was "no time for complacency". The economy grew by 0.2% in March, the ONS said, which was also better than the zero growth that had been forecast. Liz Martins, senior UK economist at HSBC, told the BBC's Today programme she was feeling "quite cheered" by the figures. The economy had grown strongly in February, which had been put down partly to companies ramping up output and exports ahead of US tariffs. But Ms Martins said the latest figures indicated growth had been "driven by the good stuff". "Business investment is up nearly 6% on the quarter and the service sector is doing well as well. "So it's not just manufacturers selling to the US to get ahead of the tariffs." However, Paul Dales at Capital Economics was more sceptical, saying the latest growth "might be as good as it gets for the year". He said the strong rise in GDP was "unlikely to be repeated as a lot of it was due to activity being brought forward ahead of US tariffs and the rise in domestic businesses taxes". Simon Pittaway, senior economist at the Resolution Foundation, also said the growth rebound was "unlikely to last, with data for April looking far weaker, and huge tariff-shaped clouds hanging over the global economy".
