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Yahoo
08-08-2025
- Business
- Yahoo
Henkel AG & Co KGaA (HELKF) Q2 2025 Earnings Call Highlights: Strong Margins and Strategic ...
Organic Sales Growth: Flat in H1; positive growth close to 1% in Q2. EPS Growth at Constant Currencies: Increased by 5% versus prior year. Share Buyback: Over EUR400 million worth of shares bought back by June 30. Adjusted EBIT Margin: Increased by 60 basis points to 15.5% for the group. Adhesive Technologies Sales: EUR5.4 billion with 1.2% organic sales growth. Consumer Brands Sales: EUR4.9 billion with 1.6% organic sales growth. Adjusted Gross Profit Margin: Increased by 60 basis points to 51.3%. Free Cash Flow: Almost EUR500 million. Net Financial Position: Around EUR500 million. 2025 Guidance: Organic sales growth of 1% to 2%; adjusted EBIT margin of 14.5% to 15.5%. Warning! GuruFocus has detected 3 Warning Sign with HELKF. Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Henkel AG & Co KGaA (HELKF) reported a strong margin increase driven by very strong gross margins while maintaining appropriate investment levels. The company executed a share buyback program faster than the previous one, with shares worth more than EUR 400 million already bought back. Henkel AG & Co KGaA (HELKF) updated its 2025 guidance, narrowing the ranges and aligning with or slightly exceeding current market expectations. The Adhesive Technologies segment showed robust development with positive organic sales growth, particularly in electronics and industrial businesses. Consumer brands saw a sequential acceleration in organic sales growth in Q2, with top 10 brands achieving more than 3% organic sales growth. Negative Points Organic sales growth in the first half was flat, with only a slight improvement in Q2. The company faced challenges in the consumer brands segment, particularly in laundry and home care, due to macroeconomic factors. Foreign exchange was a headwind, with a negative impact of 2.8% in the first half, and is expected to continue affecting sales. The professional hair business was impacted by weaker North American consumer demand. Henkel AG & Co KGaA (HELKF) lowered its top line guidance due to persistent uncertainties in the economy and geopolitical volatility. Q & A Highlights Q: In previous calls, you mentioned a strong start to the quarter for both top and bottom lines. Is this also the case for the current quarter? Additionally, regarding consumer brands, it seems that the top 10 brands grew by more than 3% in Q2, implying a decline in the rest of the consumer brands. Are there specific areas responsible for this decline, and what are your plans to improve growth in this segment? A: We have seen positive organic growth in both adhesive technologies and consumer brands for May, June, and July, which supports our expectation for a stronger H2 compared to H1. Regarding the consumer brands, the most pressure is in the laundry and home care area, which is more macro-related. We plan to continue our valorization process, invest behind our brands, and introduce more launches in the laundry area in H2 to improve performance. Q: Do you track price gaps versus peers or private labels as a KPI? The gaps seem elevated for Henkel, which might contribute to weak growth and high gross margins. Is there a risk of needing price cuts? A: Our strategy focuses on valorization and strong marketing support. We aim for a balance between price and volume, and our top 10 brands already show a good balance. While consumer sentiment has been weak, especially in Europe and the US, we have seen positive organic sales development in recent months. Innovations addressing consumer needs allow us to maintain higher prices. Q: Can you discuss the volume improvement in consumer brands and the impact of innovation? Will we see positive volume in Q3? Also, how do you expect the competitive environment to develop if demand weakens? A: The consumer sentiment has bottomed out, and we have seen improvements due to better innovations, resolved supply chain issues, and less destocking. We improved volume by 430 basis points in Q2. While I won't guide on Q3 or Q4, we aim for flat to positive territory for the year. Innovations are expected to contribute more in H2, with a balanced pipeline between Q3 and Q4. Q: With the professional hair business impacted by weaker North American demand, can you provide a regional split for professional? Is Europe still the dominant region? A: North America is the strongest region for our professional business, accounting for roughly half of it. We have seen strong organic sales growth in Q2 across all regions, with North America, APAC, and Latin America contributing positively. Our regional headquarters in Los Angeles supports this growth. Q: Regarding marketing and selling costs, is the additional spending done, or should we expect an increase in the second half due to innovations? A: There have been no cuts in marketing spending, which remains above prior year levels. The margin improvement is due to gross margin improvements, better mix, and efficiency gains. We expect higher marketing spend in H2 to support launches, but overall spending for the year will not be significantly higher than 2024. Q: Can you comment on the lower guidance for the top line? Are there specific markets or categories you're more cautious about? A: The uncertainties in the economy and geopolitical volatility persist longer than expected, particularly affecting North America. We see signs of improvement, but the environment remains muted. The narrowed guidance reflects this, aligning with market expectations. Q: You delivered at the top end of your margin guide for H1. Can you explain the building blocks for margins in H2? A: We expect higher marketing spend in H2 to support launches and a less favorable mix in consumer brands due to expected recovery in laundry. Raw materials might be slightly higher, but that's minor. For adhesive technologies, we expect a balanced bottom line development between H2 and H1. Q: Regarding electronics, was there forward purchasing due to tariff impacts? And for professionals, is the slowdown due to underspending or the consumer environment? A: There was no significant pre-skipping in electronics; the strong performance is expected to continue. For professionals, the slowdown was due to weak consumer sentiment, especially in North America. We have strong momentum in professional, supported by innovation centers and strong relationships with hairdressers. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
04-07-2025
- Business
- Yahoo
Does Manitowoc Company (NYSE:MTW) Deserve A Spot On Your Watchlist?
The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Manitowoc Company (NYSE:MTW). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Manitowoc Company with the means to add long-term value to shareholders. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. That makes EPS growth an attractive quality for any company. Manitowoc Company's shareholders have have plenty to be happy about as their annual EPS growth for the last 3 years was 37%. Growth that fast may well be fleeting, but it should be more than enough to pique the interest of the wary stock pickers. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. While Manitowoc Company may have maintained EBIT margins over the last year, revenue has fallen. While this may raise concerns, investors should investigate the reasoning behind this. The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image. See our latest analysis for Manitowoc Company The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Manitowoc Company's future EPS 100% free. Investors are always searching for a vote of confidence in the companies they hold and insider buying is one of the key indicators for optimism on the market. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions. We note that Manitowoc Company insiders spent US$77k on stock, over the last year; in contrast, we didn't see any selling. This is a good look for the company as it paints an optimistic picture for the future. The good news, alongside the insider buying, for Manitowoc Company bulls is that insiders (collectively) have a meaningful investment in the stock. Indeed, they hold US$16m worth of its stock. That's a lot of money, and no small incentive to work hard. While their ownership only accounts for 3.5%, this is still a considerable amount at stake to encourage the business to maintain a strategy that will deliver value to shareholders. Manitowoc Company's earnings per share have been soaring, with growth rates sky high. To make matters even better, the company insiders who know the company best have put their faith in the its future and have been buying more stock. This quick rundown suggests that the business may be of good quality, and also at an inflection point, so maybe Manitowoc Company deserves timely attention. Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Manitowoc Company (1 is significant) you should be aware of. The good news is that Manitowoc Company is not the only stock with insider buying. Here's a list of small cap, undervalued companies in the US with 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. Sign in to access your portfolio
Yahoo
02-07-2025
- Business
- Yahoo
GE Aerospace Earnings Preview: What to Expect
With a market cap of $265.6 billion, GE Aerospace (GE) is a global leader in designing and manufacturing jet engines, integrated systems, and components for commercial and military aviation. The company operates worldwide and is renowned for its innovation, service capabilities, and advanced aero-derivative gas turbines for marine and industrial applications. The Evendale, Ohio-based company is expected to release its fiscal Q2 2025 earnings results before the market opens on Tuesday, Jul. 22. Ahead of this event, analysts project GE to report an adjusted EPS of $1.42, a 18.3% growth from $1.20 in the year-ago quarter. The company has exceeded Wall Street's bottom-line estimates in the last four quarters. In Q1 2025, GE Aerospace surpassed the consensus adjusted EPS estimate by 18.3%. Is Palantir Stock a Buy, Sell, or Hold for July 2025? Is Archer Aviation Stock a Buy, Sell, or Hold for July 2025? Microsoft Stock Is Headed for $4 Trillion. Is It Too Late to Buy MSFT Here? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For fiscal 2025, analysts forecast GE Aerospace to report adjusted EPS of $5.51, up 19.8% from $4.60 in fiscal 2024. Over the past 52 weeks, GE Aerospace has surged 56.7%, significantly outperforming the broader S&P 500 Index's ($SPX) 13.2% return and the Industrial Select Sector SPDR Fund's (XLI) 22.8% gain over the same period. GE Aerospace stock soared 6.1% on Apr. 22 after the company reported Q1 2025 results that significantly beat expectations, with adjusted EPS of $1.49 and revenue of $9.9 billion. The 11% year-over-year revenue growth and a 460-basis-point increase in operating profit margin to 23.8% showcased strong execution despite ongoing supply chain challenges. Investors were also encouraged by the 15% order growth in the Commercial Engines & Services segment and a robust $12.3 billion in total Q1 orders. Additionally, management's reaffirmation of full-year guidance, including expected adjusted EPS of $5.10 - $5.45 and mid-teens revenue growth, further boosted investor confidence. Analysts' consensus view on GE Aerospace stock is bullish, with an overall 'Strong Buy' rating. Among 21 analysts covering the stock, 16 suggest a "Strong Buy," two give a "Hold," and three provide a "Hold" rating. As of writing, GE is trading above the average analyst price target of $239.37. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
02-07-2025
- Business
- Yahoo
Despite delivering investors losses of 55% over the past 5 years, Zalando (ETR:ZAL) has been growing its earnings
Statistically speaking, long term investing is a profitable endeavour. But that doesn't mean long term investors can avoid big losses. Zooming in on an example, the Zalando SE (ETR:ZAL) share price dropped 55% in the last half decade. That's an unpleasant experience for long term holders. Shareholders have had an even rougher run lately, with the share price down 13% in the last 90 days. While the stock has risen 8.1% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us. 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. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. While the share price declined over five years, Zalando actually managed to increase EPS by an average of 53% per year. So it doesn't seem like EPS is a great guide to understanding how the market is valuing the stock. Or possibly, the market was previously very optimistic, so the stock has disappointed, despite improving EPS. Because of the sharp contrast between the EPS growth rate and the share price growth, we're inclined to look to other metrics to understand the changing market sentiment around the stock. In contrast to the share price, revenue has actually increased by 6.8% a year in the five year period. So it seems one might have to take closer look at the fundamentals to understand why the share price languishes. After all, there may be an opportunity. The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image). It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. So we recommend checking out this free report showing consensus forecasts It's nice to see that Zalando shareholders have received a total shareholder return of 28% over the last year. Notably the five-year annualised TSR loss of 9% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. Before deciding if you like the current share price, check how Zalando scores on these 3 valuation metrics. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. 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
23-06-2025
- Business
- Yahoo
Here's Why Allianz Malaysia Berhad (KLSE:ALLIANZ) Has Caught The Eye Of Investors
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 are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Allianz Malaysia Berhad (KLSE:ALLIANZ). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Allianz Malaysia Berhad with the means to add long-term value to shareholders. 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. Allianz Malaysia Berhad's Earnings Per Share Are Growing Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That means EPS growth is considered a real positive by most successful long-term investors. Impressively, Allianz Malaysia Berhad has grown EPS by 18% per year, compound, in the last three years. As a general rule, we'd say that if a company can keep up that sort of growth, shareholders will be beaming. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. It's noted that Allianz Malaysia Berhad's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. Allianz Malaysia Berhad maintained stable EBIT margins over the last year, all while growing revenue 15% to RM6.2b. That's progress. The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart. KLSE:ALLIANZ Earnings and Revenue History June 23rd 2025 Check out our latest analysis for Allianz Malaysia Berhad Fortunately, we've got access to analyst forecasts of Allianz Malaysia Berhad's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting. Are Allianz Malaysia Berhad Insiders Aligned With All Shareholders? It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Allianz Malaysia Berhad followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. To be specific, they have RM74m worth of shares. This considerable investment should help drive long-term value in the business. Even though that's only about 2.1% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders.
