'Extremely Bullish' Portfolio Manager Cites 5 Huge Reasons Why Bull Market Rally Has Room To Run
A powerful bull market rally is emerging — but the window to make big money could come sooner than most Wall Street watchers think.
“The consensus view is we’re going to be weak until the election, and once the election is cleared up, we’re going to rally into the end of the year,” Charles Harris, portfolio manager at O’Neil Global Advisors, told Investor’s Business Daily’s “IBD Live.”
↑
X
Does The ‘Super Bullish’ Market Cycle Have Staying Power? Charles Harris Weighs In
“But the market doesn’t always cooperate with the consensus and what everyone is expecting,” he said, with his bullish short-term outlook contrarian to that of those who view October as a seasonally weak period.
Bull Market Buying Opportunities
To succeed in the stock market, Harris says all investors need is just one strong period – and that period can be as short as a month or two.
Harris says the current market “feels like the latter part of 2007.” At the time, the market saw a brief sell-off in August and a strong rally just before the 2007 financial crisis struck.
His analysis was focused on the technical action and the Fed’s cutting cycle, and does not foresee a similar financial crisis looming.
“In that little window, I doubled my account in two months,” he said. “That’s all you need, just a window of opportunity.”
Harris explains five key reasons why the bull market rally has room to run from here.
1) Macroeconomic Backdrop
Harris cites a positive economic outlook ahead, with a blowout September jobs report and the Fed committed to rate cuts.
“We’re in an easing cycle and you don’t fight the Fed,” Harris said. He added that the market was so devastated by the Fed’s tightening cycle that a loosening cycle is likely to be a huge tailwind.
2) Technical Action For Indexes
The major indexes are trending higher, with the Nasdaq and S&P 500 in power trends. Both are finding support at the key 21-day moving average and bouncing from there, something often seen in bullish market trends.
The S&P 500 is close to all-time highs, while the tech-heavy Nasdaq is back above 18,000 – a notable psychological level. September was a powerful month. This week’s action is ending on a high note after an orderly bull market pullback.
“I think that everything is set up well for a strong year-end,” he said.
3) Bull Market’s ‘Wall Of Worry’
Harris says the market is showing strength despite a “wall of worry,” with big-picture fears not yet denting investor appetites.
Tensions in the Mideast remain high as Israel vows retaliation on Iran, which could expand the ongoing Israel-Hamas war.
The 2024 U.S. presidential election is also considered a potential risk event since the market does not like uncertainty.
Meanwhile, a three-day dockworkers’ strike ended late Thursday after a sweetened offer from port owners — and immense pressure from the White House — ending fears of logistics snags.
When the bull market climbs a “wall of worry,” that means there’s still money sitting on the sidelines waiting to be deployed to fuel further gains in an uptrend. Unbridled enthusiasm, for instance, can signal exuberance and a potential market top.
4) Artificial Intelligence Innovation
Catalyzing bull market momentum is a backdrop of innovation and new technology, led by the generative AI boom.
“We’re still at the very beginning of this new leg of AI and everything that it will offer,” said Harris. He expects productivity gains across various industries and falling costs to boost companies.
5) Leading Stocks Acting Well
Harris cites strong stock leadership in the market that’s broadening out, compared with earlier periods where only a handful of stocks led the market. Seeing more stocks participate strengthens the bull case vs. only having a handful of megacap tech stocks be the ones carrying the bull market rally.
A strong macro environment and underlying tech innovation create opportunities for sector leaders, but the chart does not always tell the full story. “Find some charts that you like, but then dig in deeper and build a level of conviction so you can hook a big winner and ride it for a significant move,” said Harris.
Tesla (TSLA) is one stock Harris is eyeing as a potential leader in the bull market rally.
Tesla Stock Analysis
Harris says he sees a bull market move for Tesla stock in the near future, driven by the promises of a cheaper model and its use of generative AI in technologies like robotaxis.
He points to a potential cup-with-handle pattern forming in the stock as the automaker heads into both earnings and its robotaxi event in October.
Tesla stock is currently forming a 60-day cup pattern, according to MarketSurge pattern recognition. Harris sees a handle forming for the stock.
Pattern recognition currently does not show the handle as it does not yet meet the required gestation time of five days. However, the stock is bouncing off the 21-day line after a three-day pullback.
Robotaxis, Cheaper Cars Fuel Tesla Ambitions
Harris sees Tesla’s expected cheaper model and its autonomous robotaxi as two catalysts. The robotaxi is reportedly set to build on Tesla’s AI technology.
“It’s gone through a long digestion period since its peak in 2021, and they’ve got (the robotaxi) event next week that I think is going to be really exciting,” he says.
The elections present another risk for Tesla stock. Tesla could greatly benefit from a Trump victory in November because of CEO Elon Musk’s support for the former president and candidate. Likewise, Musk’s purchase of Twitter and antagonism of Democrats could damage Tesla stock if Harris wins the upcoming election.
A recent pullback in the stock runs contrary to what Harris typically sees in Tesla stock before big events. He says Tesla stock tends to sell off after a big announcement like its Cybertruck reveal in 2019.
“But this time the stock is selling off going into the event,” said Harris. “Maybe that bodes well for change.”
Follow Mike Juang on X at @mikejuangnews and on Threads at @namedvillage.
YOU MAY ALSO LIKE:
IBD Live: Follow The Bull Market With Investing Experts
How Wall Street, Silicon Valley Will Feel The Impact Of A Trump Or Harris Presidency
Tesla and Consumer Habits Are Squeezing Out EV Charging Stocks
Auto Equipment Makers Say China Is Leading Self-Driving Car Demand. Can The U.S. Catch Up?
Why Apple Stock And This ‘Recession-Proof’ Leader Strengthen Market’s Bull Case
Elizabeth Michelle Williams Boosts Confidence With $135K Purchase Of Brady Stock
Elizabeth Michelle Williams, Board Member at Brady BRC, reported an insider buy on October 4, according to a new SEC filing.
What Happened: In a Form 4 filing on Friday with the U.S. Securities and Exchange Commission, it was disclosed that Williams bought 1,809 shares of Brady, amounting to a total of $135,005.
The latest update on Friday morning shows Brady shares down by 0.0%, trading at $73.64.
All You Need to Know About Brady
Brady Corp provides identification solutions and workplace safety products. The company offers identification and healthcare products that are sold under the Brady brand to maintenance, repair, and operations as well as original equipment manufacturing customers. Products include safety signs and labeling systems, material identification systems, wire identification, patient identification, and people identification. Brady also provides workplace safety and compliance products such as safety and compliance signs, asset tracking labels, and first-aid products. The company is organized and managed on a geographic basis with two reportable segments: Americas & Asia which derives maximum revenue, and Europe & Australia.
A Deep Dive into Brady’s Financials
Negative Revenue Trend: Examining Brady’s financials over 3 months reveals challenges. As of 31 July, 2024, the company experienced a decline of approximately -0.73% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.
Profitability Metrics:
-
Gross Margin: With a high gross margin of 51.56%, the company demonstrates effective cost control and strong profitability relative to its peers.
-
Earnings per Share (EPS): Brady’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.16.
Debt Management: Brady’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.12.
Market Valuation:
-
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 18.09 is lower than the industry average, indicating potential undervaluation for the stock.
-
Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.66 suggests overvaluation in the eyes of investors, considering sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 12.05 reflects market recognition of Brady’s value, positioning it as more highly valued compared to industry peers.
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
The Importance of Insider Transactions
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Essential Transaction Codes Unveiled
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Brady’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Cryptocurrency Expert Predicts Significant Drops For Bitcoin And Ethereum Before Altcoin Season Begins
Well-known cryptocurrency trader, Capo, has forecasted potential significant declines for Bitcoin BTC/USD and Ethereum ETH/USD.
What Happened: Capo, who commands a large following on the social media platform X, predicts that Bitcoin might test the $48,000 to $50,000 range, while Ethereum could fall to between $1,800 and $2,000.
“There’s a possibility of one last shakeout, with BTC testing the $48,000 – $50,000 zone and ETH $1,800 – $2,000, before the real altcoin season begins.”
Currently, Bitcoin is priced at $60,508, marking a 6% decline over the past week, and Ethereum is valued at $2,345, down by 11% over the same period.
Capo also shared insights on altcoins ranked below the top ten by market capitalization, known as “OTHERS,” on his Telegram channel.
He suggests that the market cap of OTHERS might drop to between $132 billion and $164 billion after failing to break a significant resistance level. The altcoins index was rejected from a resistance zone around $240 billion, indicating market weakness.
See Also: Donald Trump Is Now Level With Kamala Harris At 49.5% Election Odds After September Rollercoaster
Why It Matters: The potential declines for Bitcoin and Ethereum come at a time when other analysts have expressed optimism about Bitcoin’s future. A recent analysis suggested that Bitcoin could reach a new all-time high if it surpasses the $64,000 resistance level.
Additionally, the cryptocurrency market recently saw strong gains, with Bitcoin, Ethereum, and Dogecoin ending the week on a high note, driven by positive labor market data. This suggests a potential shift from the summer lull to a more bullish Q4 seasonality.
Despite the current bearish outlook, some analysts believe Bitcoin’s rebound above $61,500 indicates a higher likelihood of reaching $80,000 rather than falling to $40,000. This tension between bullish long-term charts and bearish short-term action highlights the uncertainty in the market.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
VC Ben Horowitz First Endorsed Donald Trump, Now Pledges Support For Kamala Harris
Prominent venture capitalist Ben Horowitz intends to financially support Kamala Harris‘ presidential campaign – a move that comes on the heels of his recent financial support for political action committees that favor Donald Trump‘s presidential bid.
What Happened: Horowitz and his wife have committed to making a “significant donation” to entities backing the Harris-Walz campaign.
The venture capitalist, a co-founder of the firm Andreessen Horowitz, disclosed this in a letter to his employees. In the letter, he stated that he and his wife have been friends with Harris for over a decade.
According to a report by Axios, a person close to the firm confirmed the contents of the letter.
“I wanted to give you an update on my political activity. As I mentioned before, Felicia and I have known Vice President Harris for over 10 years and she has been a great friend to both of us during that time,” Horowitz wrote in the letter.
Also Read: Harris Vs Trump: Kamala Harris Leads In Fundraising As Wall Street, Silicon Valley Boost Her
“As a result of our friendship, Felicia and I will be making a significant donation to entities who support the Harris Walz campaign,” he also added in the letter.
Despite their previous financial support for Trump’s campaign, Andreessen Horowitz has not officially endorsed any candidate for the 2024 election. The firm’s backing for Trump was linked to what they described as a superior “little tech agenda.”
Horowitz voiced his optimism about Harris after engaging in discussions with her and her team. However, he pointed out that her tech policy is still to be unveiled, and as such, the firm will not revise its position on that issue.
Why It Matters: The decision by Horowitz to back Harris’ campaign marks a significant shift in his political leanings.
His previous support for Trump’s PACs had been linked to the former president’s tech policies, which Andreessen Horowitz found favorable.
However, with Harris’ tech policy yet to be announced, it remains to be seen how this will influence the firm’s political endorsements moving forward.
Read Next
Kamala Harris’ Campaign Achieves Historic $540M Milestone Raised Since Biden Exit
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image:
Image: Wikimedia Commons
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The db Group and Hard Rock International Announce Hard Rock Hotel Malta as Part of New Development Project
Download additional images & videos here
ST. GEORGE’S BAY, Malta, Oct. 4, 2024 /PRNewswire/ — The Malta-based db Group and Hard Rock International yesterday broke ground and laid the foundation stone for the Hard Rock Hotel Malta along with a mixed-use development including Ora Residences with two towers of exclusive apartments and a vast mall. The total investment in the project is €300 million and is set to create hundreds of different jobs.
The 5-star Hard Rock Hotel Malta will feature 394 rooms, most with balconies overlooking the Mediterranean, and 25 suites with a private pool. The hotel meticulously preserves and integrates the architecture of the original 1860 British military accommodation quarters. Guests seeking to relax will enjoy numerous private and public pools, a full-service Rock Spa®, and state-of-the-art Body Rock® fitness center set to be amongst Malta’s largest.
“Our vision is quite unique. We want people to come here and go wherever their imagination takes them. They can live here, stay at the Hard Rock Hotel for incredible service, dine at any of our 12 restaurants, swim, shop at Malta’s best high-end mall, go to the beach lido, gym, spa, take a seaside walk, feast their eyes on the vertical gardens covering our two residential towers and much more. This will not be a place. It will be a destination,” said Silvio Debono, Chairman, db Group.
“We are excited to work with db Group to bring Hard Rock’s hospitality and entertainment offerings to the beautiful island country of Malta. This development is expected to enhance Malta’s tourism industry by appealing to the modern traveler, creating yet another wonderful addition to our award-winning Hard Rock Hotels portfolio,” said John Rees, Senior Vice President of Hotel Operations, Hard Rock International.
Conceived as vertical gardens, the Ora Residences will offer luxurious designs and a suite of exclusive and top-tier personalized services. Residents will have access to a wealth of high-end amenities, including private temperature-controlled wine cellars, private pools, housekeeping services, chauffeurs, 24/7 concierge services and more.
Another key element of the project will be St. George’s Mall, covering over 20,000 sqm with a mix of top-tier and more accessible brands and family entertainment.
The project also features 12 different restaurants and bars including Hard Rock Cafe and EL&N, 5,000 sqm of green and public spaces, a 1,300 sqm supermarket, 1,300 parking spaces and a globally branded exclusive beach lido.
Dr Robert Abela, Prime Minister of Malta, emphasized that the project exemplifies the confidence that Malta’s esteemed investors have in the nation’s economy and tourism sector. “As we look to the future, our focus is on attracting high-yield travelers while enriching the very essence of our tourism industry,” stated Prime Minister Abela. He further asserted that tourism transcends merely increasing visitor numbers; it is a vital industry capable of driving significant social progress and serves as a cornerstone for the sustainable development of our nation.
Planned to be inaugurated in early 2026, this development will join Hard Rock International’s portfolio of European accommodations including Hard Rock Hotel Madrid and REVERB by Hard Rock Hamburg, resort hotels in Davos, Ibiza, Marbella, and Tenerife, and the ongoing development of Hard Rock Hotel & Casino Athens.
Project Facts:
- A total of €300 million is being invested in the project – €250 by the db Group and an additional €50 million by partners and clients.
- Several hundred new jobs with different specializations will be created.
- 5-star Hard Rock Hotel Malta: 394 rooms with balconies and sea views including 25 suites with private pools.
- Mall: 20,000 sqm
- Private members club: 500 sqm
- Parking spaces: 1,300
- Green and public spaces: 5,000 sqm
- Restaurants & bars: 12
- Trees & plants: Approximately 4,000
- Supermarket: 1,300 sqm
- Gym & spa: 3,300 sqm
- Beach lido on St George’s Bay
- 1,350 sqm of event space
For more information on Hard Rock Hotel Malta and upcoming properties visit HardRockHotels.com.
About Hard Rock®:
Hard Rock International (HRI) is one of the most globally recognized companies with venues in over 74 countries spanning 313 locations that include owned/licensed or managed Hotels, Casinos, Rock Shops®, Live Performance Venues and Cafes. Its Unity by Hard Rock™ global loyalty program rewards members for doing the things they love across participating properties around the world. HRI also launched a joint venture named Hard Rock Digital in 2020, an online sportsbook, retail sportsbook and internet gaming platform. Beginning with an Eric Clapton guitar, Hard Rock owns the world’s largest and most valuable collection of authentic music memorabilia at more than 88,000 pieces, which are displayed at its locations around the globe. HRI became the first privately-owned gaming company designated a U.S. Best Managed Company by Deloitte Private and The Wall Street Journal in 2021 and has since been honored fourfold. Hard Rock was also honored by Forbes among the World’s Best Employers, as well as Best Employers for Women, Diversity and New Grads and a Top Large Employer in the Travel & Leisure, Gaming and Entertainment Industry. In the 2022 Global Gaming Awards, Hard Rock was named Land-Based Operator of the Year for the second time in four years. Hard Rock International currently holds investment grades from primary investment-grade rating agencies: S&P Global Ratings (BBB-) and Fitch Ratings (BBB). For more information on Hard Rock International, visit www.hardrock.com or shop.hardrock.com.
About Hard Rock Hotels & Casinos®:
Hard Rock Hotels & Casinos is internationally recognized as a leader in the hospitality industry – offering world-class entertainment, contemporary designs, incomparable service and one-of-a-kind brand amenities, catering to modern travelers who seek a reprieve from traditional, predictable hotel experiences. Driven by integrity, philanthropy and unparalleled guest experiences, the brand adorns 34 distinctive Hotels & Casinos in the world’s most enviable destinations. Hard Rock Hotels provide amazing live music, dining options that make guests’ taste buds sing, head-to-toe wellness services and many more amenities, in addition to offering best in class protocols for health and safety which Hard Rock deems SAFE + SOUND. For more information on Hard Rock Hotels, visit hardrockhotels.com.
About the db Group:
The db Group is one of Malta’s fastest-growing businesses, with various successful ventures spanning hospitality, property development, catering and healthcare. Founded by Silvio Debono in 1984 with a small guest house, the Group today owns two of Europe’s most popular all-inclusive properties – the db Seabank Resort and Spa and the db San Antonio Hotel and Spa – as well as 11 successful restaurants spread across the Maltese islands. The restaurant portfolio includes two that are included in the Michelin guide, LOA and AKI. db Group will soon open AKI in London’s prestigious Cavendish square, its first venture outside of Malta. The most ambitious db Group project to date is a multi-use beachside development which will include a Hard Rock Hotel, ORA luxury residences and St George’s Mall. It aims to be Malta’s largest hospitality and shopping destination. db Group’s trusted reputation has helped it to forge strong alliances with iconic international brands, including Starbucks and Hard Rock Café, both of which have expanded their presence on the island after great success. Looking ahead, db Group remains focused on consolidating its local market footprints, expanding internationally, and continuing to diversify into new sectors, all underpinned by its unwavering commitment to excellence.
For more information visit www.dbgroupmalta.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/the-db-group-and-hard-rock-international-announce-hard-rock-hotel-malta-as-part-of-new-development-project-302267713.html
SOURCE Hard Rock International
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Aviat Networks Announces Fiscal 2024 Fourth Quarter and Twelve Months Financial Results
Fourth Quarter Total Revenue of $116.7 million; Up 28.1% Year-Over-Year
Fourth Quarter Adjusted EBITDA of $11.9 million
Cash from Operations of $8.3 million in fourth quarter, $30.5 million for full year
AUSTIN, Texas, Oct. 4, 2024 /PRNewswire/ — Aviat Networks, Inc. (“Aviat Networks,” “Aviat,” or the “Company”), AVNW, the leading expert in wireless transport and access solutions, today reported financial results for its fiscal 2024 fourth quarter and twelve months ended June 28, 2024.
Fourth Quarter Highlights
- Pasolink acquisition accretive to Adjusted EBITDA and non-GAAP net income in the quarter
- Achieved 4th consecutive fiscal year of growth in both revenue and Adjusted EBITDA
- Secured statewide win of a new public safety customer, converting customer from legacy incumbent
Fourth Quarter Financial Highlights
- Total Revenues: $116.7 million, up 28.1% from the same quarter last year
- GAAP Results: Gross Margin 35.3%; Operating Expenses $35.7 million; Operating Income $5.5 million; Net Income $1.5 million; Net Income per diluted share (“Net Income per share”) $0.12
- Non-GAAP Results: Adjusted EBITDA $11.9 million; Gross Margin 35.9%; Operating Expenses $31.3 million; Operating Income $10.6 million; Net Income $9.2 million; Net Income per share $0.72
- Net cash and cash equivalents: $64.6 million; cash net of debt: $16.3 million
Full Year Financial Highlights
- Total Revenues: $408.1 million, up 18.5% from last year
- GAAP Results: Gross Margin 35.5%; Operating Expenses $125.3 million; Operating Income $19.4 million; Net Income $10.8 million, Net Income per diluted share $0.86
- Non-GAAP Results: Adjusted EBITDA $48.1 million; Gross Margin 36.4%; Operating Expenses $105.4 million; Operating Income $43.1 million; Net Income per diluted share $3.15
Fiscal 2024 Fourth Quarter and Twelve Months Ended June 28, 2024
Revenues
The Company reported total revenues of $116.7 million for its fiscal 2024 fourth quarter, compared to $91.1 million in the fiscal 2023 fourth quarter, an increase of $25.6 million or 28.1%. North America revenue of $56.2 million increased by $1.4 million or 2.5%, compared to $54.8 million in the prior year due to continued execution on private network projects. International revenue of $60.5 million increased by $24.2 million or 66.6%, compared to $36.3 million in the prior year. This growth was due to the addition from the Pasolink acquisition and strong core Aviat revenues in Asia Pacific and Europe regions.
For the twelve months ended June 28, 2024, total revenue increased by 18.5% to $408.1 million, compared to $344.4 million in the same period of fiscal 2023. North America revenue of $206.1 million increased by $5.4 million or 2.7%, compared to $200.7 million in the same period of fiscal 2023. International revenue of $202.0 million increased by $58.3 million or 40.5% as compared to $143.8 million in the same period of fiscal 2023.
Gross Margins
In the fiscal 2024 fourth quarter, the Company reported GAAP gross margin of 35.3% and non-GAAP gross margin of 35.9%. This compares to GAAP gross margin of 35.9% and non-GAAP gross margin of 36.2% in the fiscal 2023 fourth quarter, a change of (60) and (30) basis points, respectively. The fluctuations were driven by project and regional customer mix.
For the twelve months ended June 28, 2024, the Company reported GAAP gross margin of 35.5% and non-GAAP gross margin of 36.4%. This compares to GAAP gross margin of 35.5% and non-GAAP gross margin of 35.8% in the same period of fiscal 2023. GAAP gross margin was flat to the prior year comparison period, and non-GAAP gross margin increased 60 basis points.
Operating Expenses
The Company reported GAAP total operating expenses of $35.7 million for the fiscal 2024 fourth quarter, compared to $26.3 million in the fiscal 2023 fourth quarter, an increase of $9.3 million or 35.5%. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and merger and acquisition expenses for the fiscal 2024 fourth quarter were $31.3 million, compared to $22.0 million in the prior year, an increase of $9.2 million or 41.9%.
For the twelve months ended June 28, 2024, the Company reported total operating expenses of $125.3 million, compared to $97.8 million in the same period of fiscal 2023, an increase of $27.6 million or 28.2%. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and merger and acquisition expenses for the twelve months ended June 28, 2024 were $105.4 million, as compared to $84.1 million in the same period of fiscal 2023, an increase of $21.3 million or 25.3%.
Operating Income
The Company reported GAAP operating income of $5.5 million for the fiscal 2024 fourth quarter, compared to $6.3 million in the fiscal 2023 fourth quarter, a decrease of $(0.9) million or (13.7)%. On a non-GAAP basis, the Company reported operating income of $10.6 million for the fiscal 2024 fourth quarter, compared to $11.0 million in the prior year, a decrease of $(0.4) million or (3.2)%.
For the twelve months ended June 28, 2024, the Company reported GAAP operating income of $19.4 million, as compared to $24.6 million in the same period of fiscal 2023, a decrease of $(5.2) million or (21.2)%. Operating income decreased primarily due to merger and acquisition related expenses. On a non-GAAP basis, the Company reported operating income of $43.1 million, compared to $39.1 million in the same period of fiscal 2023, an increase of $4.1 million or 10.4%.
Income Taxes
The Company reported GAAP income tax expense of $3.1 million in the fiscal 2024 fourth quarter, compared to $2.0 million in the fiscal 2023 fourth quarter, an increase of $1.1 million or 53.2%.
For the twelve months ended June 28, 2024, the Company reported GAAP income tax expense of $6.1 million compared to $11.1 million in the same period of fiscal 2023, a decrease of $(5.0) million or (44.9)%. The decrease was driven by non-recurrence of a $2.6 million deferred tax liability in the prior year related to legal entity restructuring.
Net Income / Net Income Per Share
The Company reported GAAP net income of $1.5 million in the fiscal 2024 fourth quarter and GAAP net income per share of $0.12. This compared to GAAP net income of $3.8 million or GAAP net income per share of $0.32 in the fiscal 2023 fourth quarter. On a non-GAAP basis, the Company reported net income of $9.2 million or non-GAAP net income per share of $0.72, compared to non-GAAP net income of $10.3 million or $0.87 per share in the prior year.
The Company reported GAAP net income of $10.8 million for the twelve months ended June 28, 2024, or GAAP net income per fully diluted share of $0.86. This compared to GAAP net income of $10.2 million or $0.86 per share in the comparable fiscal 2023 period. On a non-GAAP basis, the Company reported net income of $39.2 million or net income per share of $3.15 for the twelve months ended June 28, 2024, as compared to non-GAAP net income of $37.3 million or $3.15 per share in the comparable fiscal 2023 period.
Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”) for the fiscal 2024 fourth quarter was $11.9 million, compared to $12.6 million in the fiscal 2023 fourth quarter.
For the twelve months ended June 28, 2024, the Company reported Adjusted EBITDA of $48.1 million, as compared to $45.2 million in the comparable fiscal 2023 period, an increase of $2.9 million, or 6.4%.
Balance Sheet Highlights
The Company reported $64.6 million in cash and cash equivalents as of June 28, 2024, compared to $58.2 million as of March 29, 2024. As of June 28, 2024, total debt was $48.4 million, a decrease of $0.6 million from March 29, 2024.
Fiscal 2025 Full Year Guidance
The Company established its fiscal 2025 full year revenue and Adjusted EBITDA guidance as follows:
- Full year Revenue between $450 and $490 million
- Full year Adjusted EBITDA between $46.0 and $52.0 million
As previously disclosed, Aviat has identified certain material weaknesses in its internal control over financial reporting for the 2024 fiscal year. The Company has initiated and will continue to implement measures designed to improve its internal control over financial reporting to remediate these material weaknesses with oversight from the Audit Committee of the Board of Directors and assistance from its external advisors. Please refer to Item 9A in our Annual Report on Form 10-K (the “Form 10-K”) filed with the Securities and Exchange Commission (“SEC”) on October 4, 2024, for more information.
Subsequent to the issuance of the consolidated financial statements and related disclosures for the fiscal year ended June 30, 2023, the Company identified certain errors in its previously issued consolidated financial statements. The Company evaluated the materiality of the errors and determined that the impacts were not material, individually or in the aggregate, to the Company’s previously issued consolidated financial statements for any of the prior reporting periods in which they occurred. The Company has revised the prior period financial statements for fiscal 2024 and fiscal 2023 to correct the errors. The revisions ensure comparability across all periods presented herein. Please refer to Note 16. Revisions to Prior Period Consolidated Financial Statements of the Notes to the consolidated financial statements in our Form 10-K for further information.
Conference Call Details
Aviat Networks will host a conference call at 8:30 a.m. Eastern Time (ET) on October 7, 2024, to discuss its financial and operational results for the fiscal 2024 fourth quarter ended June 28, 2024. Participating on the call will be Peter Smith, President and Chief Executive Officer; Michael Connaway, Sr. Vice President and Chief Financial Officer; and Andrew Fredrickson, Director of Corporate Development and Investor Relations. Following management’s remarks, there will be a question and answer period.
Interested parties may access the conference call live via the webcast through Aviat Network’s Investor Relations website at investors.aviatnetworks.com/events-and-presentations/events, or may participate via telephone by registering using this online form. Once registered, telephone participants will receive the dial-in number along with a unique PIN number that must be used to access the call. A replay of the conference call webcast will be available after the call on the Company’s investor relations website.
About Aviat Networks
Aviat Networks, Inc. is the leading expert in wireless transport and access solutions and works to provide dependable products, services and support to its customers. With more than one million systems sold into 170 countries worldwide, communications service providers and private network operators including state/local government, utility, federal government and defense organizations trust Aviat with their critical applications. Coupled with a long history of microwave innovations, Aviat provides a comprehensive suite of localized professional and support services enabling customers to drastically simplify both their networks and their lives. For more than 70 years, the experts at Aviat have delivered high performance products, simplified operations, and the best overall customer experience. Aviat is headquartered in Austin, Texas. For more information, visit www.aviatnetworks.com or connect with Aviat Networks on Facebook and LinkedIn.
Forward-Looking Statements
The information contained in this Current Report on Form 8-K includes forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including Aviat’s outlook, business conditions, new product solutions, customer positioning, future orders, bookings, new contracts, cost structure, profitability in fiscal 2025, its recent acquisitions and acquisition strategy, process improvements, measures designed to improve internal controls, plans and objectives of management, realignment plans and review of strategic alternatives and expectations regarding future revenue, gross margin, Adjusted EBITDA, operating income or earnings or loss per share. All statements, trend analyses and other information contained herein regarding the foregoing beliefs and expectations, as well as about the markets for the services and products of Aviat and trends in revenue, and other statements identified by the use of forward-looking terminology, including “anticipate,” “believe,” “plan,” “estimate,” “expect,” “goal,” “will,” “see,” “continue,” “delivering,” “view,” and “intend,” or the negative of these terms or other similar expressions, constitute forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, forward-looking statements are based on estimates reflecting the current beliefs, expectations and assumptions of the senior management of Aviat regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should therefore be considered in light of various important factors, including those set forth in this document. Therefore, you should not rely on any of these forward-looking statements.
Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following: the disruption the 4RF and NEC transactions may cause to customers, vendors, business partners and our ongoing business; our ability to integrate the operations of the acquired 4RF and NEC businesses with our existing operations and fully realize the expected synergies of the 4RF and NEC transactions on the expected timeline; disruptions relating to the ongoing conflict between Russia and Ukraine and the conflict in Israel and surrounding areas; continued price and margin erosion in the microwave transmission industry; the impact of the volume, timing, and customer, product, and geographic mix of our product orders; our ability to meet financial covenant requirements; the timing of our receipt of payment; our ability to meet product development dates or anticipated cost reductions of products; our suppliers’ inability to perform and deliver on time, component shortages, or other supply chain constraints; the effects of inflation; customer acceptance of new products; the ability of our subcontractors to timely perform; weakness in the global economy affecting customer spending; retention of our key personnel; our ability to manage and maintain key customer relationships; uncertain economic conditions in the telecommunications sector combined with operator and supplier consolidation; our failure to protect our intellectual property rights or defend against intellectual property infringement claims; the results of our restructuring efforts; the effects of currency and interest rate risks; the ability to preserve and use our net operating loss carryforwards; the effects of current and future government regulations; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States and other countries where we conduct business; the conduct of unethical business practices in developing countries; the impact of political turmoil in countries where we have significant business; our ability to realize the anticipated benefits of any proposed or recent acquisitions; the impact of tariffs, the adoption of trade restrictions affecting our products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; our ability to implement our stock repurchase program or that it will enhance long-term stockholder value; and the impact of adverse developments affecting the financial services industry, including events or concerns involving liquidity, defaults or non-performance by financial institutions.
For more information regarding the risks and uncertainties for Aviat’s business, see “Risk Factors” in Aviat’s Form 10-K for the fiscal year ended June 28, 2024 filed with the SEC on October 4, 2024, as well as other reports filed by Aviat with the SEC from time to time. Aviat undertakes no obligation to update publicly any forward-looking statement, whether written or oral, for any reason, except as required by law, even as new information becomes available or other events occur in the future.
Investor Relations:
Andrew Fredrickson
Director, Corporate Development & Investor Relations
Phone: (512) 582-4626
Email: andrew.fredrickson@aviatnet.com
|
Table 1 AVIAT NETWORKS, INC. Fiscal Year 2024 Fourth Quarter Summary CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||
|
Three Months Ended |
Twelve Months Ended |
||||||
|
(In thousands, except per share amounts) |
June 28, |
June 30, |
June 28, |
June 30, |
|||
|
Revenues: |
|||||||
|
Product sales |
$ 78,795 |
$ 64,093 |
$ 274,205 |
$ 238,579 |
|||
|
Services |
37,865 |
27,010 |
133,878 |
105,854 |
|||
|
Total revenues |
116,660 |
91,103 |
408,083 |
344,433 |
|||
|
Cost of revenues: |
|||||||
|
Product sales |
50,794 |
39,363 |
171,783 |
150,637 |
|||
|
Services |
24,727 |
19,074 |
91,568 |
71,414 |
|||
|
Total cost of revenues |
75,521 |
58,437 |
263,351 |
222,051 |
|||
|
Gross margin |
41,139 |
32,666 |
144,732 |
122,382 |
|||
|
Operating expenses: |
|||||||
|
Research and development |
10,985 |
6,256 |
36,426 |
24,908 |
|||
|
Selling and administrative |
23,059 |
19,929 |
85,038 |
69,842 |
|||
|
Restructuring charges |
1,640 |
157 |
3,867 |
3,012 |
|||
|
Total operating expenses |
35,684 |
26,342 |
125,331 |
97,762 |
|||
|
Operating income |
5,455 |
6,324 |
19,401 |
24,620 |
|||
|
Interest expense, net |
916 |
322 |
2,337 |
532 |
|||
|
Other (income) expense, net |
(70) |
234 |
158 |
2,774 |
|||
|
Income before income taxes |
4,609 |
5,768 |
16,906 |
21,314 |
|||
|
Provision for income taxes |
3,060 |
1,997 |
6,146 |
11,145 |
|||
|
Net income |
$ 1,549 |
$ 3,771 |
$ 10,760 |
$ 10,169 |
|||
|
Net income per share of common stock outstanding: |
|||||||
|
Basic |
$ 0.12 |
$ 0.33 |
$ 0.88 |
$ 0.90 |
|||
|
Diluted |
$ 0.12 |
$ 0.32 |
$ 0.86 |
$ 0.86 |
|||
|
Weighted-average shares outstanding: |
|||||||
|
Basic |
12,597 |
11,475 |
12,182 |
11,358 |
|||
|
Diluted |
12,829 |
11,920 |
12,456 |
11,855 |
|||
|
Table 2 |
|||
|
AVIAT NETWORKS, INC. |
|||
|
Fiscal Year 2024 Fourth Quarter Summary |
|||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
|
(Unaudited) |
|||
|
(In thousands) |
June 28, |
June 30, |
|
|
ASSETS |
|||
|
Current Assets: |
|||
|
Cash and cash equivalents |
$ 64,622 |
$ 22,242 |
|
|
Accounts receivable, net |
158,013 |
100,911 |
|
|
Unbilled receivables |
90,525 |
57,170 |
|
|
Inventories |
62,267 |
33,428 |
|
|
Assets held for sale |
2,720 |
— |
|
|
Other current assets |
27,076 |
22,164 |
|
|
Total current assets |
405,223 |
235,915 |
|
|
Property, plant and equipment, net |
9,480 |
9,452 |
|
|
Goodwill |
8,217 |
5,112 |
|
|
Intangible assets, net |
13,644 |
9,046 |
|
|
Deferred income taxes |
83,112 |
87,080 |
|
|
Right of use assets |
3,710 |
2,554 |
|
|
Other assets |
11,837 |
13,978 |
|
|
Total long-term assets |
130,000 |
127,222 |
|
|
Total assets |
$ 535,223 |
$ 363,137 |
|
|
LIABILITIES AND EQUITY |
|||
|
Current Liabilities: |
|||
|
Accounts payable |
$ 92,854 |
$ 60,141 |
|
|
Accrued expenses |
42,148 |
24,442 |
|
|
Short-term lease liabilities |
1,006 |
610 |
|
|
Advance payments and unearned revenue |
58,839 |
44,268 |
|
|
Other current liabilities |
21,614 |
600 |
|
|
Current portion of long-term debt |
2,396 |
— |
|
|
Total current liabilities |
218,857 |
130,061 |
|
|
Long-term debt |
45,954 |
— |
|
|
Unearned revenue |
7,413 |
7,416 |
|
|
Long-term lease liabilities |
2,823 |
2,140 |
|
|
Other long-term liabilities |
394 |
314 |
|
|
Reserve for uncertain tax positions |
3,485 |
3,975 |
|
|
Deferred income taxes |
412 |
492 |
|
|
Total liabilities |
279,338 |
144,398 |
|
|
Commitments and contingencies |
|||
|
Stockholder’s equity: |
|||
|
Preferred stock |
— |
— |
|
|
Common stock |
126 |
115 |
|
|
Treasury stock |
(6,479) |
(6,147) |
|
|
Additional paid-in-capital |
860,071 |
830,048 |
|
|
Accumulated deficit |
(578,513) |
(589,273) |
|
|
Accumulated other comprehensive loss |
(19,320) |
(16,004) |
|
|
Total stockholders’ equity |
255,885 |
218,739 |
|
|
Total liabilities and stockholders’ equity |
$ 535,223 |
$ 363,137 |
|
|
AVIAT NETWORKS, INC. |
|
Fiscal Year 2024 Fourth Quarter Summary |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE |
|
To supplement the consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (GAAP), we provide additional measures of gross margin, research and development expenses, selling and administrative expenses, operating income, provision for or benefit from income taxes, net income, net income per share, and adjusted income before interest, tax, depreciation and amortization (Adjusted EBITDA), in each case, adjusted to exclude certain costs, charges, gains and losses, as set forth below. We believe that these non-GAAP financial measures, when considered together with the GAAP financial measures provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on results in any particular period. We also believe these non-GAAP measures enhance the ability of investors to analyze trends in our business and to understand our performance. In addition, we may utilize non-GAAP financial measures as a guide in our forecasting, budgeting and long-term planning process and to measure operating performance for some management compensation purposes. Any analysis of non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP follow. |
|
1We have not reconciled Adjusted EBITDA guidance to its corresponding GAAP measure due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to merger and acquisition costs and share-based compensation. In particular, share-based compensation expense is affected by future hiring, turnover, and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted EBITDA are not available without unreasonable effort. |
|
Table 3 |
|||||||||||||||
|
AVIAT NETWORKS, INC. |
|||||||||||||||
|
Fiscal Year 2024 Fourth Quarter Summary |
|||||||||||||||
|
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1) |
|||||||||||||||
|
Condensed Consolidated Statements of Operations |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
Twelve Months Ended |
||||||||||||||
|
June 28, |
% of Revenue |
June 30, |
% of Revenue |
June 28, |
% of Revenue |
June 30, |
% of Revenue |
||||||||
|
(In thousands, except percentages and per share amounts) |
|||||||||||||||
|
GAAP gross margin |
$ 41,139 |
35.3 % |
$ 32,666 |
35.9 % |
$ 144,732 |
35.5 % |
$ 122,382 |
35.5 % |
|||||||
|
Share-based compensation |
96 |
164 |
406 |
627 |
|||||||||||
|
Merger and acquisition related expense |
650 |
174 |
3,409 |
180 |
|||||||||||
|
Non-GAAP gross margin |
41,885 |
35.9 % |
33,004 |
36.2 % |
148,547 |
36.4 % |
123,189 |
35.8 % |
|||||||
|
GAAP research and development expenses |
$ 10,985 |
9.4 % |
$ 6,256 |
6.9 % |
$ 36,426 |
8.9 % |
$ 24,908 |
7.2 % |
|||||||
|
Share-based compensation |
(141) |
(129) |
(593) |
(514) |
|||||||||||
|
Non-GAAP research and development expenses |
10,844 |
9.3 % |
6,127 |
6.7 % |
35,833 |
8.8 % |
24,394 |
7.1 % |
|||||||
|
GAAP selling and administrative expenses |
$ 23,059 |
19.8 % |
$ 19,929 |
21.9 % |
$ 85,038 |
20.8 % |
$ 69,842 |
20.3 % |
|||||||
|
Share-based compensation |
(1,559) |
(1,292) |
(6,342) |
(5,579) |
|||||||||||
|
Merger and acquisition related expense |
(1,070) |
(2,727) |
(9,121) |
(4,526) |
|||||||||||
|
Non-GAAP selling and administrative expenses |
20,430 |
17.5 % |
15,910 |
17.5 % |
69,575 |
17.0 % |
59,737 |
17.3 % |
|||||||
|
GAAP operating income |
$ 5,455 |
4.7 % |
$ 6,324 |
6.9 % |
$ 19,401 |
4.8 % |
$ 24,620 |
7.1 % |
|||||||
|
Share-based compensation |
1,796 |
1,585 |
7,341 |
6,720 |
|||||||||||
|
Merger and acquisition related expense |
1,720 |
2,901 |
12,530 |
4,706 |
|||||||||||
|
Restructuring charges |
1,640 |
157 |
3,867 |
3,012 |
|||||||||||
|
Non-GAAP operating income |
10,611 |
9.1 % |
10,967 |
12.0 % |
43,139 |
10.6 % |
39,058 |
11.3 % |
|||||||
|
GAAP income tax provision |
$ 3,060 |
2.6 % |
$ 1,997 |
2.2 % |
$ 6,146 |
1.5 % |
$ 11,145 |
3.2 % |
|||||||
|
Adjustment to reflect pro forma tax rate |
(2,560) |
(1,697) |
(4,546) |
(9,945) |
|||||||||||
|
Non-GAAP income tax provision |
500 |
0.4 % |
300 |
0.3 % |
1,600 |
0.4 % |
1,200 |
0.3 % |
|||||||
|
GAAP net income |
$ 1,549 |
1.3 % |
$ 3,771 |
4.1 % |
$ 10,760 |
2.6 % |
$ 10,169 |
3.0 % |
|||||||
|
Share-based compensation |
1,796 |
1,585 |
7,341 |
6,720 |
|||||||||||
|
Merger and acquisition related expense |
1,720 |
2,901 |
12,530 |
4,706 |
|||||||||||
|
Restructuring charges |
1,640 |
157 |
3,867 |
3,012 |
|||||||||||
|
Other (income) expense, net |
(70) |
234 |
158 |
2,774 |
|||||||||||
|
Adjustment to reflect pro forma tax rate |
2,560 |
1,697 |
4,546 |
9,945 |
|||||||||||
|
Non-GAAP net income |
$ 9,195 |
7.9 % |
$ 10,345 |
11.4 % |
$ 39,202 |
9.6 % |
$ 37,326 |
10.8 % |
|||||||
|
Diluted net income per share: |
|||||||||||||||
|
GAAP |
$ 0.12 |
$ 0.32 |
$ 0.86 |
$ 0.86 |
|||||||||||
|
Non-GAAP |
$ 0.72 |
$ 0.87 |
$ 3.15 |
$ 3.15 |
|||||||||||
|
Shares used in computing net income per share |
|||||||||||||||
|
GAAP |
12,829 |
11,920 |
12,456 |
11,855 |
|||||||||||
|
Non-GAAP |
12,829 |
11,920 |
12,456 |
11,855 |
|||||||||||
|
Adjusted EBITDA: |
|||||||||||||||
|
GAAP net income |
$ 1,549 |
1.3 % |
$ 3,771 |
4.1 % |
$ 10,760 |
2.6 % |
$ 10,169 |
3.0 % |
|||||||
|
Depreciation and amortization of property, plant and equipment and intangible assets |
1,265 |
1,615 |
4,993 |
6,180 |
|||||||||||
|
Interest expense, net |
916 |
322 |
2,337 |
532 |
|||||||||||
|
Other (income) expense, net |
(70) |
234 |
158 |
2,774 |
|||||||||||
|
Share-based compensation |
1,796 |
1,585 |
7,341 |
6,720 |
|||||||||||
|
Merger and acquisition related expense |
1,720 |
2,901 |
12,530 |
4,706 |
|||||||||||
|
Restructuring charges |
1,640 |
157 |
3,867 |
3,012 |
|||||||||||
|
Provision for income taxes |
3,060 |
1,997 |
6,146 |
11,145 |
|||||||||||
|
Adjusted EBITDA |
$ 11,876 |
10.2 % |
$ 12,582 |
13.8 % |
$ 48,132 |
11.8 % |
$ 45,238 |
13.1 % |
|||||||
|
1 |
The adjustments above reconcile our GAAP financial results to the non-GAAP financial measures used by us. Our non-GAAP net income excluded share-based compensation, and other non-recurring charges (recovery). Adjusted EBITDA was determined by excluding depreciation and amortization on property, plant and equipment, interest, provision for or benefit from income taxes, and non-GAAP pre-tax adjustments, as set forth above, from GAAP net income. We believe that the presentation of these non-GAAP items provides meaningful supplemental information to investors, when viewed in conjunction with, and not in lieu of, our GAAP results. However, the non-GAAP financial measures have not been prepared under a comprehensive set of accounting rules or principles. Non-GAAP information should not be considered in isolation from, or as a substitute for, information prepared in accordance with GAAP. Moreover, there are material limitations associated with the use of non-GAAP financial measures. |
|
Table 4 |
|||||||
|
AVIAT NETWORKS, INC. |
|||||||
|
Fiscal Year 2024 Fourth Quarter Summary |
|||||||
|
SUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA |
|||||||
|
(Unaudited) |
|||||||
|
Three Months Ended |
Twelve Months Ended |
||||||
|
June 28, |
June 30, |
June 28, |
June 30, |
||||
|
(In thousands) |
|||||||
|
North America |
$ 56,194 |
$ 54,814 |
$ 206,073 |
$ 200,678 |
|||
|
International: |
|||||||
|
Africa and the Middle East |
13,063 |
16,307 |
48,884 |
59,674 |
|||
|
Europe |
7,231 |
5,067 |
24,608 |
18,772 |
|||
|
Latin America and Asia Pacific |
40,172 |
14,915 |
128,518 |
65,309 |
|||
|
Total international |
60,466 |
36,289 |
202,010 |
143,755 |
|||
|
Total revenue |
$ 116,660 |
$ 91,103 |
$ 408,083 |
$ 344,433 |
|||
View original content to download multimedia:https://www.prnewswire.com/news-releases/aviat-networks-announces-fiscal-2024-fourth-quarter-and-twelve-months-financial-results-302267954.html
SOURCE Aviat Networks, Inc.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Former Treasury Secretary Larry Summers Slams Fed's September Rate Cut Saying It Was A Mistake: 'Today's Employment Report Confirms Suspicions That…'
Former Treasury Secretary Larry Summers has expressed disapproval of the Federal Reserve’s decision to cut interest rates last month, terming it a misstep in the face of the latest US job growth data.
What Happened: On Friday, Summers took to X, formerly Twitter, and voiced his disagreement with the Federal Reserve’s decision to slash interest rates by 50 basis points in September.
He labeled this action as a “mistake,” particularly in light of the recent data that shows U.S. job growth exceeding all predictions.
“Today’s employment report confirms suspicions that we are in a high neutral rate environment where responsible monetary policy requires caution in rate cutting,” he said.
See Also: Lawrence Summers Calls For SEC Investigation Into Unprecedented VIX Movement
Why It Matters: The September jobs report exceeded expectations, showing a 254,000 increase in U.S. payrolls and a surprising drop in the unemployment rate to 4.1%.
Wage growth also outpaced predictions, climbing 0.4% from the previous month and 4% over the past year.
Joseph Brusuelas, principal and chief economist at RSM US LLP, highlighted the strong wage increases and dismissed recession concerns, pointing instead to a “mid-cycle economic expansion.”
Aditya Bhave, U.S. economist at BofA Securities, adjusted his November forecast to smaller rate cuts (25 basis points) due to the robust economic data.
Bhave predicted a terminal rate of 3.0%-3.25%, with the potential for it to rise further, given the unexpectedly strong productivity growth.
Before the September rate cut, Federal Reserve Chairman Jerome Powell had stated that future interest rate cuts would hinge on economic data. His comments at the time added uncertainty to the market, causing stocks to slip.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
FORD FINAL CHANCE: Ford Motor Company Investors are Notified to Contact BFA Law before Imminent October 7 Deadline in Securities Fraud Class Action (NYSE:F)
NEW YORK, Oct. 05, 2024 (GLOBE NEWSWIRE) — Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Ford Motor Company F and certain of the Company’s senior executives.
If you invested in Ford, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/ford-motor-company.
Investors have until October 7, 2024 to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Ford securities. The case is pending in the U.S. District Court for the Eastern District of Michigan and is captioned Guzman v. Ford Motor Company, et al., No. 24-cv-12080.
What is the Lawsuit About?
Ford is an automotive manufacturing company that develops, delivers, and services a range trucks, cars, and luxury vehicles worldwide. The complaint alleges that during the relevant period, the company misrepresented its warranty reserves and that it had completed a sequence of organizational changes designed to ensure higher quality and lower costs. In truth, Ford was experiencing higher warranty costs, and the warranty reserves did not accurately reflect the quality issues in its vehicles.
On July 24, 2024, after the market closed, Ford announced second quarter 2024 financial results (the “2Q24 Press Release”). The 2Q24 Press Release revealed that the Company’s “[p]rofitability was affected by an increase in warranty reserves” and “higher warranty costs.” It was reported that, in the second quarter, Ford’s warranty and recall costs totaled $2.3 billion, $800 million more than the first quarter and $700 million more than a year ago. This news caused the price of Ford’s stock to decline by $2.51 per share, or over 18%, to close at $11.16 per share on July 25, 2024.
Click here if you suffered losses: https://www.bfalaw.com/cases-investigations/ford-motor-company.
What Can You Do?
If you invested in Ford, you have rights and are encouraged to submit your information to speak with an attorney.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses. Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/ford-motor-company
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/ford-motor-company
Attorney advertising. Past results do not guarantee future outcomes.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
MEI INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Announces that Methode Electronics, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit
SAN DIEGO, Oct. 05, 2024 (GLOBE NEWSWIRE) — Robbins Geller Rudman & Dowd LLP announces that purchasers of Methode Electronics, Inc. MEI common stock between June 23, 2022 and March 6, 2024, all dates inclusive (the “Class Period”), have until October 25, 2024 to seek appointment as lead plaintiff of the Methode Electronics class action lawsuit. Captioned Salem v. Methode Electronics, Inc., No. 24-cv-07696 (N.D. Ill.), the Methode Electronics class action lawsuit charges Methode Electronics as well as certain of Methode Electronics’ top former executive officers with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Methode Electronics class action lawsuit, please provide your information here:
https://www.rgrdlaw.com/cases-methode-electronics-inc-class-action-lawsuit-mei.html
You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com.
CASE ALLEGATIONS: Methode Electronics designs, engineers, and produces mechatronic products for Original Equipment Manufacturers (“OEMs”).
The Methode Electronics class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Methode Electronics had lost highly skilled and experienced employees during the COVID-19 pandemic necessary to successfully complete Methode Electronics’ transition from its historic low mix, high volume production model to a high mix, low production model at its Monterrey facility; (ii) Methode Electronics’ attempts to replace its General Motors center console production with more diversified, specialized products for a wider array of vehicle manufacturers and OEMs, in particular in the electric vehicle (“EV”) space, had been plagued by production planning deficiencies, inventory shortages, vendor and supplier problems, and, ultimately, botched execution of Methode Electronics’ strategic plans; (iii) Methode Electronics’ manufacturing systems at its critical Monterrey facility suffered from a variety of logistical defects, such as improper system coding, shipping errors, erroneous delivery times, deficient quality control systems, and failures to timely and efficiently procure necessary raw materials; (iv) Methode Electronics had fallen substantially behind on the launch of new EV programs out of its Monterrey facility, preventing Methode Electronics from timely receiving revenue from new EV program awards; and (v) as a result, Methode Electronics was not on track to achieve the 2023 diluted earnings-per-share guidance or the 3-year 6% organic sales compound annual growth rate represented to investors and such estimates lacked a reasonable factual basis.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud. You can view a copy of the complaint by clicking here.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Methode Electronics common stock during the Class Period to seek appointment as lead plaintiff in the Methode Electronics class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Methode Electronics class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Methode Electronics class action lawsuit. An investor’s ability to share in any potential future recovery of the Methode Electronics class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities fraud cases. Our Firm has been #1 in the ISS Securities Class Action Services rankings for six out of the last ten years for securing the most monetary relief for investors. We recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm in the last four years. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
https://www.rgrdlaw.com/services-litigation-securities-fraud.html
Attorney advertising.
Past results do not guarantee future outcomes.
Services may be performed by attorneys in any of our offices.
Contact:
Robbins Geller Rudman & Dowd LLP
J.C. Sanchez, Jennifer N. Caringal
655 W. Broadway, Suite 1900, San Diego, CA 92101
800-449-4900
info@rgrdlaw.com
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Merchants Capital Completes $630 Million Securitization of Healthcare CRE Loans
CARMEL, Ind., Oct. 4, 2024 /PRNewswire/ — Leading financial services provider Merchants Capital (Merchants) today announced the securitization of approximately $630 million in healthcare commercial real estate (CRE) bridge loans. The loans were originated by VIUM Capital, Merchants’ joint venture partner, and underwritten and closed on the balance sheet of Merchants’ parent, Merchants Bank, within the past 16 months. The loans are intended to support the properties until they seek permanent financing through U.S. Department of Housing and Urban Development (HUD).
The securitization pool contains 21 loans collateralized by 74 properties across 15 states for a variety of facilities, including skilled nursing, assisted living, memory care and independent living. The loans had a weighted average LTV of 69% and a weighted average debt yield above 15%.
Structured as a credit risk transfer (CRT), Merchants in collaboration with ATLAS SP Partners as Structuring Agent and Sole Bookrunner, partnered with a large investment manager specialized in alternative assets to purchase the junior securities, which totaled 15% of the transaction. As part of its purchase, the investor retained the first loss Risk Retention certificates as a third-party purchaser.
“Merchants is actively positioning its balance sheet to accommodate potential increased volume during the next couple of years,” said Evan Gibson, Executive Vice President of Capital Markets at Merchants Capital. “Merchants has developed a strategic program around loan securitizations, completing four CRTs since 2022, which has helped to provide capital relief, reduce credit risk, and allow Merchants to continue as one of the top multifamily and healthcare bridge lenders in the country.”
To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
ABOUT MERCHANTS BANCORP
Ranked as a top performing U.S. public bank by S&P Global Market Intelligence, Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana operating multiple segments, including Multi-family Mortgage Banking that offers multi-family housing and healthcare facility financing and servicing; Mortgage Warehousing that offers mortgage warehouse financing; and Banking that offers retail and correspondent residential mortgage banking, agricultural lending, and traditional community banking. Merchants Bancorp, with $18.2 billion in assets and $14.9 billion in deposits as of June 30, 2024, conducts its business primarily through its direct and indirect subsidiaries, Merchants Bank of Indiana, Merchants Capital Corp., Merchants Capital Investments, LLC, Merchants Capital Servicing, LLC, Merchants Asset Management, LLC, and Merchants Mortgage, a division of Merchants Bank of Indiana. For more information and financial data, please visit Merchants’ Investor Relations page at investors.merchantsbancorp.com.
ABOUT MERCHANTS CAPITAL
With more than 30 years of success built on putting people first, Merchants Capital is a proven leader in financing for multifamily housing nationwide. Our licenses with Fannie Mae, Freddie Mac and HUD/FHA, in addition to our bank’s balance sheet products, allow us to offer custom solutions with agility and ease of execution, expanding access to housing in meaningful and impactful ways. Recognized as a top five affordable lender, Merchants Capital pairs our comprehensive debt offerings with in-house tax credit equity to provide a one-stop-shop for developers and owners. To learn more about Merchants Capital, visit www.merchantscapital.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements which reflect management’s current views with respect to, among other things, future events and financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “outlook,” “aim,” “would,” “annualized” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, management cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated in these forward-looking statements, including the impacts of factors identified in “Risk Factors” or “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
View original content to download multimedia:https://www.prnewswire.com/news-releases/merchants-capital-completes-630-million-securitization-of-healthcare-cre-loans-302267289.html
SOURCE Merchants Bancorp
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.