Latest news with #EBIT
Yahoo
9 hours ago
- Automotive
- Yahoo
British carmaker JLR trims FY26 margin forecast to 5%-7% as US tariffs cast shadow
(Reuters) -British luxury carmaker Jaguar Land Rover cut its fiscal 2026 earnings before interest and taxes margins forecast to 5%-7% on Monday from 10% earlier, citing uncertainty in the global auto industry as U.S. tariffs loom. Shares in the company's Indian parent Tata Motors dropped as much as 4.7% in early trade after the announcement. JLR's EBIT margin forecast was also below its reported margin of 8.5% for the previous fiscal year. JLR, which gets over a quarter of its sales from the U.S., had temporarily paused shipments to the country after its President Donald Trump slapped a 25% duty on all foreign-made vehicles sold in the world's second-largest car market. Tata Motors' ownership of JLR makes it among the most exposed Indian automakers to Trump's tariffs on vehicle imports. Unlike most of its rivals, including German brands Mercedes- Benz and BMW, JLR has no manufacturing presence in the U.S.
Yahoo
9 hours ago
- Automotive
- Yahoo
British carmaker JLR trims FY26 margin forecast to 5%-7% as US tariffs cast shadow
(Reuters) -British luxury carmaker Jaguar Land Rover cut its fiscal 2026 earnings before interest and taxes margins forecast to 5%-7% on Monday from 10% earlier, citing uncertainty in the global auto industry as U.S. tariffs loom. Shares in the company's Indian parent Tata Motors dropped as much as 4.7% in early trade after the announcement. JLR's EBIT margin forecast was also below its reported margin of 8.5% for the previous fiscal year. JLR, which gets over a quarter of its sales from the U.S., had temporarily paused shipments to the country after its President Donald Trump slapped a 25% duty on all foreign-made vehicles sold in the world's second-largest car market. Tata Motors' ownership of JLR makes it among the most exposed Indian automakers to Trump's tariffs on vehicle imports. Unlike most of its rivals, including German brands Mercedes- Benz and BMW, JLR has no manufacturing presence in the U.S. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17 hours ago
- Business
- Yahoo
We Ran A Stock Scan For Earnings Growth And Tower (NZSE:TWR) Passed With Ease
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Tower (NZSE:TWR). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. In the last three years Tower's earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. As a result, we'll zoom in on growth over the last year, instead. Outstandingly, Tower's EPS shot from NZ$0.10 to NZ$0.26, over the last year. It's not often a company can achieve year-on-year growth of 152%. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The good news is that Tower is growing revenues, and EBIT margins improved by 10.8 percentage points to 21%, over the last year. That's great to see, on both counts. In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image. Check out our latest analysis for Tower Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Tower. Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions. The first bit of good news is that no Tower insiders reported share sales in the last twelve months. Even better, though, is that the company insider, Blair Turnbull, bought a whopping NZ$429k worth of shares, paying about NZ$1.48 per share, on average. Big buys like that may signal an opportunity; actions speak louder than words. Tower's earnings have taken off in quite an impressive fashion. Most growth-seeking investors will find it hard to ignore that sort of explosive EPS growth. And may very well signal a significant inflection point for the business. If this is the case, then keeping a watch over Tower could be in your best interest. We should say that we've discovered 2 warning signs for Tower (1 makes us a bit uncomfortable!) that you should be aware of before investing here. There are plenty of other companies that have insiders buying up shares. So if you like the sound of Tower, you'll probably love this curated collection of companies in NZ that have an attractive valuation alongside insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
2 days ago
- Business
- Yahoo
Investors Could Be Concerned With TAKKT's (ETR:TTK) Returns On Capital
When we're researching a company, it's sometimes hard to find the warning signs, but there are some financial metrics that can help spot trouble early. Typically, we'll see the trend of both return on capital employed (ROCE) declining and this usually coincides with a decreasing amount of capital employed. Ultimately this means that the company is earning less per dollar invested and on top of that, it's shrinking its base of capital employed. On that note, looking into TAKKT (ETR:TTK), we weren't too upbeat about how things were going. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for TAKKT: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.021 = €15m ÷ (€913m - €211m) (Based on the trailing twelve months to March 2025). Thus, TAKKT has an ROCE of 2.1%. Ultimately, that's a low return and it under-performs the Commercial Services industry average of 8.3%. View our latest analysis for TAKKT Above you can see how the current ROCE for TAKKT compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering TAKKT for free. The trend of ROCE at TAKKT is showing some signs of weakness. To be more specific, today's ROCE was 9.9% five years ago but has since fallen to 2.1%. On top of that, the business is utilizing 22% less capital within its operations. The fact that both are shrinking is an indication that the business is going through some tough times. If these underlying trends continue, we wouldn't be too optimistic going forward. In short, lower returns and decreasing amounts capital employed in the business doesn't fill us with confidence. Investors must expect better things on the horizon though because the stock has risen 16% in the last five years. Regardless, we don't like the trends as they are and if they persist, we think you might find better investments elsewhere. If you'd like to know about the risks facing TAKKT, we've discovered 1 warning sign that you should be aware of. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Covalon Technologies Ltd (CVALF) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Revenue Growth: Strong revenue growth relative to prior periods, with sequential quarterly growth expected in Q3 and the second half of the year. Vascular Access and Surgical Consumables Sales Growth: More than 40% year-to-date growth over last year. Gross Margin: Performance in the 55% to 60% range, slightly lower in Q2 due to geographic revenue mix. Profitability: Positive adjusted EBIT in Q2, marking the fifth consecutive quarter of profitability. Cash Position: Over $18 million in cash on hand, an increase of about $11 million from a year ago. US Product Revenue Growth: Over 30% growth in the US product revenue category over three years. Top 50 US Hospital Customers: 100% retention and 38% revenue growth from the same group of top 50 hospitals from 2024. New Hospital Accounts: Added 29 new hospital accounts in Q2, totaling 50 new hospitals in the first half of the year. Warning! GuruFocus has detected 6 Warning Signs with BMO. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Covalon Technologies Ltd (CVALF) reported strong revenue growth in its vascular access and surgical consumables and international sales channels, with both up more than 40% year-to-date compared to last year. The company has maintained a disciplined approach to spending, achieving its fifth consecutive quarter of profitability with positive adjusted EBIT. Covalon Technologies Ltd (CVALF) has a robust cash position with over $18 million in cash and zero debt, providing significant flexibility for growth and shareholder value initiatives. The company has successfully retained 100% of its top 50 US hospital customers, demonstrating the stickiness of its business and the quality of its products. Covalon Technologies Ltd (CVALF) has engaged Origin Merchant Partners to explore opportunities for mergers, acquisitions, and partnerships to maximize shareholder value and expand the reach of its technology. The company's gross margin was slightly lower this quarter due to a higher geographic mix of revenue from its international sales channel, which has a lower gross margin than the US sales channels. Covalon Technologies Ltd (CVALF) experienced a softer quarter in its US Advanced wound care sales channel, impacting overall revenue growth. The company has not yet executed a share buyback program, despite discussions with the board and Origin Merchant Partners. Covalon Technologies Ltd (CVALF) does not currently provide quarterly guidance, citing the stage of the company and the predictability of its revenue. The company's adjusted EBITDA for the trailing 12 months has decreased, attributed to the softer performance in the US Advanced wound care channel. Q: Given the company's $18 million cash position and low valuation, is there a plan for share buybacks? A: Brent Ashton, CEO: Our cash position provides flexibility for growth and shareholder value initiatives, including potential share buybacks. This is under discussion with our board and Origin, but no action has been taken yet. Q: When will Covalon provide quarterly guidance, considering the goal of doubling the share price annually for five years? A: Brent Ashton, CEO: We are confident in our growth potential but are not issuing guidance due to the current stage of our company and revenue predictability. Q: What caused the erosion in gross profit as a percentage of sales? A: Brent Ashton, CEO: The shift in revenue mix, with a higher percentage from our international business, which has lower gross margins, affected the overall gross profit. We expect margins to rebound. Q: Can you explain the drop in adjusted EBITDA for the trailing 12 months? A: Brent Ashton, CEO: The drop is due to a softer quarter in the US Advanced wound care channel. We anticipate sequential quarterly growth in Q3 and a stronger second half of the year. Q: What is the future outlook for the international sales channel, and will US sales channel growth improve gross margins? A: Brent Ashton, CEO: We expect gross margins to improve as US sales pick up. The international sales channel is a strong growth driver, and we are expanding product offerings and entering new countries. Q: What is Covalon's M&A strategy, and are there specific geographic focuses? A: Brent Ashton, CEO: We are actively exploring opportunities with Origin, focusing on North America but open to global prospects. Specific targets are not disclosed due to the ongoing process. Q: How many US sales reps does Covalon have, and what are the future plans? A: Brent Ashton, CEO: We have one open position for the West Coast and will continue to refine our model responsibly to support growth without inflating costs. Q: How does EBITDA margin on international sales compare to the US? A: Brent Ashton, CEO: We report EBITDA at the company level. International gross margins are lower than US margins, but the selling model differs, affecting the EBITDA profile. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
