We spoke with a contact at the Teamsters about its ongoing contract negotiations with UPS ahead of the July 31 contract deadline. While the Teamsters have authorized a strike, our contact believes that neither sides want a strike and both sides are hopeful to announce a tentative deal by the end of June. Our contact added that the two sides have already agreed to most of the non-economic (non-wage) issues, and the wage issues currently being worked on. Our contact believes the biggest issue right now is 2-tier hybrid drivers which would allow UPS to hire lower-paid workers to deliver packages on weekends, including Sunday. These employees would work Sunday to Thursday or Tuesday to Saturday, avoiding overtime pay. Under the current contract, most package drivers earn higher wages if they work on the weekend. Thus, our contact believes UPS wants to start Sunday delivery.
Search Coverage List, Models & Reports
Search Results1-10 out of 16087
Honeywell (HON) announced that the transportation systems spinoff will be named “Garrett”. Honeywell will spin off the Homes product portfolio and ADI global distribution business, as well as its Transportation Systems business into two stand-alone publicly traded companies. Timing is expected to be 2018 Q3. The Homes and ADI business have a combined annual revenue of about $4.5 bn and the Transportation Systems Business has an annual revenue of about $3 bn. The RemainCo will be composed of four businesses: aerospace, building technologies, performance materials and technologies, and safety and productivity solutions. The spin-offs will provide an avenue for Honeywell to pursue other acquisitions according to CEO Darius Adamczyk.
Yesterday (6/12/2018) the EIA updated its short-term energy outlook which got us thinking what better time than mid-year to stack our U.S. natural gas supply/demand model versus theirs side-by-side to see where we’re different (see page 3 for comparison).
Yesterday (06/12/18) the EIA updated its short-term energy outlook which got us thinking what better time than mid-year to stack our U.S. natural gas supply/demand model versus theirs side-by-side to see where we’re different (see page 3 for comparison). On natural gas demand, the EIA bumped its 2018 forecast higher by 0.5bcf/d versus its last publication in May to 89.4bcf/d while its 2019 forecast went largely unchanged at 92.7bcf/d, with the revision to 2018 largely driven by higher than expected Res/Com and Power burn YTD. Excluding imports/exports, the EIA’s demand forecast averages 1.5bcf/d higher than our model for both 2018 & 2019 with the main delta versus Wolfe being Res/Com & Power Gen. We’d note that both demand outlooks 1) continue to show relatively flat Power Gen demand going forward, 2) are in-sync when it comes to LNG exports, but 3) differ when it comes to pipeline imports/exports with the EIA assuming on average 1.8bcf/d higher imports and 1.4bcf/d higher exports across both years. On natural gas supply, the EIA raised its forecast for 2018/19 by roughly 0.5bcf/d each year with total L48 supply coming in nearly 1bcf/d lower than our model in both years. Interestingly both models assume 2.5bcf/d of L48 supply growth in 2019 vs 2018. As a result, the EIA sees year-end working gas storage of 2.95Tcf for 2018 and 2.86Tcf for 2019, some 700+bcf below our estimates in each year, which helps explain their above-consensus $3/mmbtu price forecast versus our below-consensus $2.50/mmbtu forecast.
The news. On Thursday morning (06/14/18) RCL announced it’s acquiring a 2/3 equity stake in Silversea Cruises for $1B. RCL also reaffirmed FY18 EPS guidance despite an incremental $0.25 headwind from fuel/FX because of a stronger 2Q, while citing continued strong demand trends. We believe the guidance and demand commentary is the main reason why the stock rallied 5% on the day given investors needed reassurance in the face of poor sentiment.
Competitive capacity. Most of us watch it closely. But as Scott Kirby likes to say, not all capacity is created equal. That’s true! We pulled each U.S. airline’s total domestic revenue, by market, then we pulled schedule data to determine competitive capacity growth each is facing in the coming quarters, weighted by each airline’s own revenue exposure.
We had the opportunity to host some of Sprouts’ senior management in the U.K. earlier this week. From the company were Amin Maredia (CEO), Brad Lukow (CFO), and Susannah Livingston (VP, Investor Relations & Treasury).
Tomorrow (6/15/2018) CNC will host an Investor Day in NYC. In addition to a detailed business update and thoughts on the political and regulatory landscape, CNC typically provides a preliminary view of revenue guidance for the next year. As discussed below, we see a path to meeting / exceeding 2019 consensus rev making generally conservative assumptions.
- 1 of 1609
- next →