Latest news with #CoreyWalker
Yahoo
12-05-2025
- Business
- Yahoo
AVTR Q1 Earnings Call: CEO Transition and Margin Focus Amid Weak Market Conditions
Life sciences company Avantor (NYSE:AVTR) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 5.9% year on year to $1.58 billion. Its non-GAAP profit of $0.23 per share was in line with analysts' consensus estimates. Is now the time to buy AVTR? Find out in our full research report (it's free). Revenue: $1.58 billion vs analyst estimates of $1.61 billion (5.9% year-on-year decline, 1.6% miss) Adjusted EPS: $0.23 vs analyst estimates of $0.23 (in line) Adjusted EBITDA: $269.5 million vs analyst estimates of $277.4 million (17% margin, 2.8% miss) Operating Margin: 9.3%, in line with the same quarter last year Free Cash Flow Margin: 5.1%, down from 6.4% in the same quarter last year Organic Revenue fell 2.1% year on year (-6.3% in the same quarter last year) Market Capitalization: $8.19 billion Avantor's first quarter results reflected ongoing challenges across its core markets, with management candidly acknowledging underperformance in revenue, particularly in the Lab Solutions segment. CEO Michael Stubblefield highlighted that customer caution in education, government, and early-stage biotech, along with policy changes and funding cuts, weighed on demand. In response, leadership is executing a series of targeted actions to regain momentum, including supply chain improvements, digital platform upgrades, and a renewed focus on account acquisition under Corey Walker, the newly onboarded President of Lab Solutions. Looking ahead, management's guidance incorporates persistent market headwinds but leans on cost transformation initiatives and operational discipline to protect margins and cash flow. Stubblefield stated, 'We are not satisfied with our growth and are taking aggressive actions to reignite the top line regardless of the macro backdrop.' The company's updated outlook assumes continued caution in public sector spending and uncertainty around tariffs, but management expects incremental savings from expanded cost programs to drive margin stability even if revenue remains pressured. Avantor's leadership addressed both internal and external factors behind first quarter results and outlined specific remediation steps. Management emphasized the need to control what is within their reach, including operational efficiency and strategic investments, while recognizing the impact of market-wide funding pressures and competition. CEO Transition Announced: Michael Stubblefield will step down as CEO when a successor is named. The Board seeks a leader with a proven growth record, signaling an intent to reset strategy and leadership focus. Lab Solutions Weakness: Reduced demand from academic, government, and early-stage biotech customers—attributed to U.S. policy changes and funding cuts—drove underperformance in Lab Solutions. Management noted increased competition, with some customer volume shifting to rivals. Cost Transformation Expansion: Avantor expanded its multiyear cost savings program, targeting $400 million in annual run-rate savings by 2027 (up from $300 million by 2026). The initiative aims to offset external headwinds and support margin stability. Digital and Pricing Initiatives: The company accelerated the rollout of an AI-enabled e-commerce platform and revamped its pricing strategy using digital tools, aiming to improve customer experience and profitability. The first phase of this pricing transformation is scheduled to go live later in the quarter. Strength in Bioprocessing Order Book: While Bioscience Production faced headwinds in controlled environment consumables, management reported strong growth in process ingredients and single-use offerings, with a healthy order book supporting expectations for improvement in the second quarter. Management's outlook for the rest of the year centers on persistent demand headwinds, ongoing cost discipline, and targeted investments in digital capabilities to offset external pressures and drive operational improvement. Market Uncertainty Remains: The company expects continued caution in education and government, muted funding for early-stage biotech, and ongoing competitive intensity, all of which may constrain top-line growth. Tariff and Policy Risks: Future performance will depend on how effectively Avantor navigates evolving global trade policies and tariff-related costs, particularly with 2% cost of goods sold exposure to China. Management is working to offset potential impacts through supply chain adjustments and pricing. Cost Initiatives as a Buffer: The expanded cost transformation program is expected to deliver incremental margin improvement and support free cash flow, even if revenue remains subdued. Early digital investments, including the AI-enabled e-commerce platform, are intended to enhance efficiency and strengthen customer retention. Michael Ryskin (Bank of America): Asked about the step-up in second quarter guidance and whether the improvement was due to timing or underlying market changes. Management attributed it to typical seasonal strength and timing, emphasizing a balanced and prudent outlook. Vijay Kumar (Evercore): Sought clarity on Bioprocessing demand, especially for controlled environment consumables. CEO Stubblefield explained demand weakness was due to customers optimizing usage in response to macro headwinds but expressed confidence in the order book and ongoing corrective actions. Rachel Vatnsdal Olson (JPMorgan): Probed for details on declines in academic and government equipment and consumables, and how these trends are reflected in guidance. Management confirmed both segments remain under pressure and current trends are assumed to persist for the year. Daniel Brennan (TD Cowen): Pressed on the impact of U.S.–China tariffs and how much of the exposure is included in guidance. CFO Brent Jones said no material impact from tariffs is assumed, with mitigation efforts underway, and provided context on alternative sourcing and flexibility. Luke Sergott (Barclays): Inquired about the scope of business transformation in Lab Solutions and whether changes address portfolio gaps or competitive weaknesses. Management emphasized cross-functional improvements, new leadership, and digital investments to drive commercial performance and customer retention. In upcoming quarters, the StockStory team will be monitoring (1) the effectiveness of digital and pricing initiatives in accelerating Lab Solutions growth, (2) any improvement in demand from academic, government, and biotech customers as funding environments evolve, and (3) execution of the expanded cost transformation program and its impact on margins and cash flow. Progress in mitigating tariff exposure and the outcome of the CEO transition will also be critical signposts for the company's trajectory. Avantor currently trades at a forward P/E ratio of 11×. Should you load up, cash out, or stay put? See for yourself 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 5 Strong Momentum Stocks for this week. 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.
Yahoo
06-02-2025
- Entertainment
- Yahoo
Man charged in 2020 killing of rapper Pop Smoke pleads guilty to manslaughter to avoid trial
LOS ANGELES (AP) — A man charged in the 2020 killing of rapper Pop Smoke during a robbery at a Hollywood Hills mansion accepted a plea deal, averting a trial on a murder charge that was to have started Thursday. Corey Walker, 24, pleaded guilty Wednesday to voluntary manslaughter and two counts of robbery in exchange for a sentence of 29 years in prison, which he will receive at a later hearing. He was the only adult charged in the case along with three who were juveniles at the time of the crime, including a then-15-year-old gunman. All have already reached separate deals. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. An email sent to Walker's lawyers seeking comment was not immediately answered. He was accused of leading the group to the rented mansion where the 20-year-old New York rapper Pop Smoke, whose legal name was Bashar Barakah Jackson, was killed on Feb. 19, 2020, during what was to be a four-day trip to Los Angeles. A 911 call from a friend of someone in the house reported armed intruders inside, police said. The robbers knew the address because a day earlier, Pop Smoke had posted a photograph on social media of a gift bag he had received and the address was on a label, authorities said. The rapper was in the shower when masked robbers confronted him. During a struggle, the 15-year-old, pistol-whipped him and shot him three times in the back, according to court testimony. The attackers stole his diamond-studded Rolex watch and sold it for $2,000, a detective testified. Born and raised in Brooklyn, Pop Smoke arrived on the hip-hop scene in 2018 and broke out with 'Welcome to the Party' an anthem with boasts about shootings, killings and drugs that became a huge sensation, and prompted Nicki Minaj to drop a verse on a remix. He had several other hits, including the album 'Shoot for the Stars Aim for the Moon,' which was released posthumously.
Associated Press
06-02-2025
- Entertainment
- Associated Press
Man charged in 2020 killing of rapper Pop Smoke pleads guilty to manslaughter to avoid trial
LOS ANGELES (AP) — A man charged in the 2020 killing of rapper Pop Smoke during a robbery at a Hollywood Hills mansion accepted a plea deal, averting a trial on a murder charge that was to have started Thursday. Corey Walker, 24, pleaded guilty Wednesday to voluntary manslaughter and two counts of robbery in exchange for a sentence of 29 years in prison, which he will receive at a later hearing. He was the only adult charged in the case along with three who were juveniles at the time of the crime, including a then-15-year-old gunman. All have already reached separate deals. An email sent to Walker's lawyers seeking comment was not immediately answered. He was accused of leading the group to the rented mansion where the 20-year-old New York rapper Pop Smoke, whose legal name was Bashar Barakah Jackson, was killed on Feb. 19, 2020, during what was to be a four-day trip to Los Angeles. A 911 call from a friend of someone in the house reported armed intruders inside, police said. The robbers knew the address because a day earlier, Pop Smoke had posted a photograph on social media of a gift bag he had received and the address was on a label, authorities said. The rapper was in the shower when masked robbers confronted him. During a struggle, the 15-year-old, pistol-whipped him and shot him three times in the back, according to court testimony. The attackers stole his diamond-studded Rolex watch and sold it for $2,000, a detective testified. Born and raised in Brooklyn, Pop Smoke arrived on the hip-hop scene in 2018 and broke out with 'Welcome to the Party' an anthem with boasts about shootings, killings and drugs that became a huge sensation, and prompted Nicki Minaj to drop a verse on a remix. He had several other hits, including the album 'Shoot for the Stars Aim for the Moon,' which was released posthumously.
