Search Coverage List, Models & Reports
Search Results1-10 out of 2198
HXL hosted an investor day in Salt Lake City including a facilities tour of its fiber and prepreg lines. The event was well attended, and we estimate there were ~70 people there. Overall, HXL sounded good. HXL updated its 3-year CAGR targets and introduced LT growth goals, and, more importantly, highlighted strong FCF generation ahead. We believe HXL will benefit from further secular penetration in composites, helping its cash flow story take shape. But given HXL’s recent run, valuation seems full for now.
Last year amid allegations of TDG earning excess profits on DoD contracts and a request by Rep. Ro Khanna (D-CA), the DoD Inspector General (IG) launched an investigation reviewing 47 spare parts purchased by the Defense Logistics Agency (DLA) and the Army during Jan 2015 and Jan 2017. The IG issued its report in Feb 2019 concluding that TDG made excess profits on 46 out of 47 parts and recommended TDG voluntarily refund $16.1M to the government since the company didn’t technically break the law. The House Committee on Oversight and Reform held a hearing on 5/15/19 and asked five witnesses to testify consisting of 1) Kevin Fahey, the Assistant Secretary of Defense for Acquisition; 2) Glenn Fine, the Acting IG for the DoD; 3) Theresa Hull, Assistant IG for Acquisitions for the DoD; 4) Kevin Stein, TDG president and CEO, and 5) Nick Howley, TDG executive chairman who attended but didn’t give a separate prepared remark.
Scheduled system seat capacity for the May-Aug four-month period shows seats +3.5% y/y, up from +3.4% y/y last week due to rounding (up 2bp w/w). Domestic seat growth was flat w/w at +3.5% y/y, as additions from ALGT and Frontier were offset by cuts from ALK, SAVE, and DAL. Pacific capacity was flat w/w at -0.5% y/y, transatlantic was flat w/w at +5.6% y/y, and Latin ticked up 6bp w/w to +2.9% y/y on adds by SAVE and Frontier. Int’l capacity growth was up 4bp w/w to +3.3% y/y. Domestic competitive capacity was flat w/w at +3.0% y/y. There were no MAX-related changes this week.
We read every proxy statement for the airlines we cover. We highlight noteworthy things, some subtle and some obvious. We aggregate the drivers of 2018 CEO pay in easy-to-read tables and show how pay metrics changed from last year. And again, for reference, we show how pay drivers at each airline have evolved since 2007.
Canadian private equity shop Onex Partners today announced its intention to buy WJA for CAD3.5 billion in cash, or $31/share (CAD), a 67% premium to where WJA closed on Friday. We are suspending our rating on WJA, which we’d rated Underperform into this proposed acquisition.
At the 2019 Sea-Air-Space exposition last week, Navy acquisition head James Geurts voiced some concerns over the industrial base’s ability to sustain the accelerated production cadence of the Virginia Class submarine (VCS) program. Geurts noted delivery delays on Block IV submarines and the potential that this causes problems with the upcoming Columbia Class submarine (CCS), which he indicated is the Navy’s top priority. While we believe there are challenges the submarine industry needs to overcome, namely shortage of qualified workers, some of the issues that Geurts brought up appear to be gamesmanship in part to persuade Congress to provide more funding to both the VCS and CCS programs and also to motivate the private sector to improve its performance and make further investments. For instance, the expected 4-7mo delays on Block IV are against a 60-month start of construction to delivery timing vs. a 66-mo target under the previous Block III. In addition, we believe this delay won’t
Scheduled system seat capacity for the May-Aug four-month period shows seats +3.4% y/y, down 6bp w/w. Domestic seat growth was flat w/w at +3.5% y/y, though technically down 7bp on cuts from AAL and UAL. Pacific capacity was down 12bp w/w to -0.6% y/y, transatlantic was flat w/w at +5.6% y/y, and Latin was flat w/w at +2.8% y/y, as adds by AAL were entirely offset by cuts from ALK. Int’l capacity growth was flat w/w at +3.2% y/y. Domestic competitive capacity was 7bp lower w/w to +3.0% y/y. AAL and UAL added MAX flying this week while LUV made no MAX-related changes.
- 1 of 220
- next →