Latest news with #debtReduction
Yahoo
5 days ago
- Business
- Yahoo
Amentum Holdings, Inc. (AMTM): A Bull Case Theory
We came across a bullish thesis on Amentum Holdings, Inc. (AMTM) on Cornerstone Value's Substack. In this article, we will summarize the bulls' thesis on AMTM. Amentum Holdings, Inc. (AMTM)'s share was trading at $21.21 as of 22nd May. AMTM's trailing and forward P/E were 322.56 and 10 respectively according to Yahoo Finance. A close-up of an antenna, its intricate designs a testament to the company's expertise in space infrastructure. Amentum's recent earnings report was largely uneventful, with management maintaining EBITDA, cash flow, and EPS guidance while tightening the guidance range and providing timing details on the divestment of its Rapid Solutions Division. Despite a modestly lower book-to-bill ratio this quarter, the year-to-date figure remains strong. The stock's sharp decline following the results appears driven more by the unwinding of long/short trade positions that had anticipated a beat-and-raise scenario, rather than the fundamentals. The April announcement of the $360 million sale of the Rapid Solutions Division to Lockheed Martin validates Amentum's strategy of divesting non-core, low-growth, or low-margin assets to accelerate deleveraging and reshape its margin profile. This deal is notable for its exceptionally high 36x EBITDA multiple, reflecting Lockheed's strategic valuation of the business despite its modest growth within Amentum. Proceeds from the sale are earmarked for debt reduction, which is important given that debt paydown had been delayed due to prepayment penalties that recently expired. On the operational front, the company faces a one-time $70 million cash outflow in 3Q25 tied to Jacobs net working capital true-up, already reflected in guidance. Additionally, the winding down of Elon Musk's involvement in DOGE, which had previously caused sector volatility, is a positive development for the industry's stability and efficiency reforms—a potential tailwind for Amentum and peers. While this quarter's results did not impress, the strategic moves, including divestitures and deleveraging, alongside reduced market chaos, position Amentum well. The stock remains volatile but offers significant upside as management executes its transformation plan, and the team remains confident enough to have increased their position amid recent volatility. We have previously covered Amentum Holdings, Inc. (AMTM) in March 2025 wherein we summarized a bull thesis by Acid Investments on Substack. The author highlighted Amentum (AMTM) trading near $18 amid defense spending concerns and sector weakness. Since then, Jacobs' full exit has eased overhang risks, boosting sentiment despite some volatility. Management's focus on deleveraging and margin improvement, supported by insider buying, continues to point to strong upside potential. As of May 2025, the stock has risen by 13.18%. Amentum Holdings, Inc. (AMTM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held AMTM at the end of the fourth quarter which was 28 in the previous quarter. While we acknowledge the risk and potential of AMTM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMTM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Amentum Holdings, Inc. (AMTM): A Bull Case Theory
We came across a bullish thesis on Amentum Holdings, Inc. (AMTM) on Cornerstone Value's Substack. In this article, we will summarize the bulls' thesis on AMTM. Amentum Holdings, Inc. (AMTM)'s share was trading at $21.21 as of 22nd May. AMTM's trailing and forward P/E were 322.56 and 10 respectively according to Yahoo Finance. A close-up of an antenna, its intricate designs a testament to the company's expertise in space infrastructure. Amentum's recent earnings report was largely uneventful, with management maintaining EBITDA, cash flow, and EPS guidance while tightening the guidance range and providing timing details on the divestment of its Rapid Solutions Division. Despite a modestly lower book-to-bill ratio this quarter, the year-to-date figure remains strong. The stock's sharp decline following the results appears driven more by the unwinding of long/short trade positions that had anticipated a beat-and-raise scenario, rather than the fundamentals. The April announcement of the $360 million sale of the Rapid Solutions Division to Lockheed Martin validates Amentum's strategy of divesting non-core, low-growth, or low-margin assets to accelerate deleveraging and reshape its margin profile. This deal is notable for its exceptionally high 36x EBITDA multiple, reflecting Lockheed's strategic valuation of the business despite its modest growth within Amentum. Proceeds from the sale are earmarked for debt reduction, which is important given that debt paydown had been delayed due to prepayment penalties that recently expired. On the operational front, the company faces a one-time $70 million cash outflow in 3Q25 tied to Jacobs net working capital true-up, already reflected in guidance. Additionally, the winding down of Elon Musk's involvement in DOGE, which had previously caused sector volatility, is a positive development for the industry's stability and efficiency reforms—a potential tailwind for Amentum and peers. While this quarter's results did not impress, the strategic moves, including divestitures and deleveraging, alongside reduced market chaos, position Amentum well. The stock remains volatile but offers significant upside as management executes its transformation plan, and the team remains confident enough to have increased their position amid recent volatility. We have previously covered Amentum Holdings, Inc. (AMTM) in March 2025 wherein we summarized a bull thesis by Acid Investments on Substack. The author highlighted Amentum (AMTM) trading near $18 amid defense spending concerns and sector weakness. Since then, Jacobs' full exit has eased overhang risks, boosting sentiment despite some volatility. Management's focus on deleveraging and margin improvement, supported by insider buying, continues to point to strong upside potential. As of May 2025, the stock has risen by 13.18%. Amentum Holdings, Inc. (AMTM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held AMTM at the end of the fourth quarter which was 28 in the previous quarter. While we acknowledge the risk and potential of AMTM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMTM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. 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
Associated Press
25-05-2025
- Business
- Associated Press
Organon & Co. Investor Notice: Robbins LLP Reminds Investors of the Class Action Against OGN
SAN DIEGO, May 25, 2025 (GLOBE NEWSWIRE) -- Robbins LLP reminds stockholders that a class action was filed on behalf of investors who purchased or otherwise acquired Organon & Co. (NYSE: OGN) securities between October 31, 2024 and April 30, 2025. Organon is a global healthcare company with a primary focus on improving the health of women throughout their lives. For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003. The Allegations: Robbins LLP is Investigating Allegations that Organon & Co. (ORG) Misled Investors Regarding its Debt Reduction Strategy According to the complaint, during the class period, defendants provided investors with material information concerning Organon's prioritization of its capital allocation strategy through regular, quarterly dividends. Defendants' statements included, among other things, reassurance that capital allocation through the dividends was a '#1 capital allocation priority' and that Organon was committed to consistent deployment of capital. The complaint alleges that while defendants were making these positive statements, they were concealing the high priority of Organon's debt reduction strategy following the Company's acquisition of Dermavant, resulting in a 70% decrease for the regular quarterly dividend. The complaint further alleges that the truth came out on May 1, 2025, when Organon announced its first quarter 2025 results wherein management had reset the Company's dividend payout, from $0.28 to $0.02 to recapture capital for the Company. On this news, the price of Organon's common stock declined from $12.93 per share on April 30, 2025, to $9.45 per share on May 1, 2025, a decline of more than 27%. What Now: You may be eligible to participate in the class action against Organon & Co. Shareholders who want to serve as lead plaintiff for the class you should contact the firm. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here. All representation is on a contingency fee basis. Shareholders pay no fees or expenses. About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Organon & Co. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today. Attorney Advertising. Past results do not guarantee a similar outcome. A photo accompanying this announcement is available at
Yahoo
24-05-2025
- Business
- Yahoo
Wells Fargo Upgrades Sonoco Products (SON) Stock, Lifts PT
On May 23, Wells Fargo analyst Gabe Hajde double upgraded Sonoco Products Company (NYSE:SON)'s stock to 'Overweight' from 'Underweight,' and raised the price objective to $55 from $45. As per the firm's analyst, the efforts to simplify the company with an emphasis on fewer but larger businesses continue to reach the advanced stages. Aerial view of a factory producing consumer packaging and fiber-based protective packaging. Furthermore, Wells Fargo believes that Sonoco Products Company (NYSE:SON)'s shares remain attractive because of the stock's valuation hovering below the historical averages, and there is a relatively clear path to higher profits. As per Wells Fargo, Sonoco Products Company (NYSE:SON) remains focused on 3 key areas, all with leadership positions. These areas include metal packaging, rigid paper packaging, and industrial paper packaging. The company continues to strengthen its balance sheet. With the sale of its Thermoformed and Flexibles Packaging business, Sonoco Products Company (NYSE:SON) has used after-tax proceeds of ~$1.56 billion to reduce debt. As a result, its net leverage ratio now sits at below 4.0x Net Debt/Adjusted EBITDA, and it is on track to achieve its targeted net leverage of 3.0x - 3.3x by 2026 end. Sonoco Products Company (NYSE:SON) is engaged in designing, developing, manufacturing, and selling several engineered and sustainable packaging products. While we acknowledge the potential of SON to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SON and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. 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
20-05-2025
- Business
- Yahoo
8x8 Inc (EGHT) Q4 2025 Earnings Call Highlights: Strong Service Revenue Growth Amid Challenging ...
Total Revenue: $177 million, near the midpoint of guidance. Service Revenue: $171.6 million, near the midpoint of guidance. 8x8 Standalone Service Revenue Growth: 4.6% year-over-year growth in Q4, 2.8% for fiscal 2025. Gross Margin: 69%, at the low end of guidance range. Operating Margin: 10%, at the high end of guidance range. Operating Cash Flow: $5.9 million in Q4; $63.6 million for fiscal year 2025. Debt Reduction: Over $209 million reduced since August 2022 peak. Cash and Cash Equivalents: $89.3 million at the end of Q4. Net Debt to EBITDA Ratio: Approximately 2.7 times. Stock-Based Compensation: 4.6% of total revenue, a multi-year low. Guidance for Fiscal Q1 '26: Service revenue between $170 million and $175 million; total revenue between $175 million and $182 million; non-GAAP operating margin between 9% and 9.5%. Guidance for Fiscal Year 2026: Service revenue between $682 million and $702 million; total revenue between $702 million and $724 million; operating margin between 9% and 10%. Warning! GuruFocus has detected 5 Warning Signs with EGHT. Release Date: May 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. 8x8 Inc (NASDAQ:EGHT) reported a year-over-year growth in service revenue, excluding Fuze, of 4.6% in Q4, marking the highest growth rate in 10 quarters. The company achieved its highest two-year cash flow from operations, exceeding half of its market capitalization. There was a 13% year-over-year increase in customers with three or more products, indicating successful cross-selling and new customer acquisition. Strong momentum was observed in sales of Microsoft Teams integrations, with new license sales up 72% in Q4. 8x8 Inc (NASDAQ:EGHT) made substantial progress in upgrading customers from the Fuze platform, expecting full transition by the end of the calendar year. The economic environment remains challenging, with global uncertainties and tariff actions impacting market dynamics. The company is still navigating the transition of Fuze customers, which poses a risk of revenue loss during the migration process. Gross margin was at the low end of guidance due to a revenue mix shift towards lower-margin platform usage revenue. There is ongoing pressure on non-GAAP operating margins due to investments in growth and innovation. The macroeconomic environment has led to elongated deal cycles and shrinking deal sizes, affecting sales performance. Q: Can you share insights on the macro impact from your field reps and partners? Are there delays in sales cycles or spending? A: Samuel Wilson, CEO: In March and April, we noticed chaos in the US with elongated deal cycles and shrinking deal sizes. However, May has been calmer. The rest of the world seems to be chugging along unaffected by US dynamics. Q: What remains to be addressed in your go-to-market strategy, and can you provide adjusted service revenue growth for fiscal '26 excluding Fuze? A: Samuel Wilson, CEO: We are about 60-70% through our go-to-market transformation, focusing on solution selling. Kevin Kraus, CFO: Excluding Fuze, we expect positive growth next year as headwinds diminish. Q: How do you plan to achieve high single-digit growth, and what factors are driving this? A: Samuel Wilson, CEO: Growth is driven by internal factors like increased multi-product customers, new product sales, and improved go-to-market execution. We don't rely on market changes for growth. Q: Why are you winning in the CCaaS space, and how is your performance in the APAC region? A: Samuel Wilson, CEO: We offer a complete solution with best-in-breed technology from a single vendor, appealing to mid-market enterprises. In APAC, our CCaaS continues to perform well, supported by strong VAR and reseller networks. Q: What is your focus now that you've improved the balance sheet and expense structure? A: Samuel Wilson, CEO: Our focus is on returning to growth by accelerating the shutdown of Fuze and investing in CCaaS and distribution improvements for fiscal '27 and '28. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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
