Gogo Completes Acquisition of Satcom Direct and Announces Leadership Transition
Expanded Platform Accelerates Gogo’s LEO Strategy; Achieves $18m Run-rate Savings on Day 1
Chris Moore Appointed Chief Executive Officer, Succeeding Oakleigh Thorne who Transitions to Executive Chair
BROOMFIELD, Colo., Dec. 4, 2024 /PRNewswire/ — Gogo Inc. GOGO (“Gogo” or the “Company”) today announced the completion of its acquisition of Satcom Direct (“SD”), creating the only multi-orbit, multi-band, in-flight connectivity provider serving the needs of every segment of the global business aviation (“BA”) and military/government mobility markets.
Gogo paid $375 million in cash and issued five million shares of Gogo stock to SD ownership at close and could pay up to an additional $225 million tied to realizing performance thresholds over the next four years. The transaction, including fees, was funded with $250 million of debt and $150 million of cash from the Gogo balance sheet.
The interest rate on Gogo’s incremental debt is SOFR plus 6%, and the Company’s annual interest expense will increase by an estimated $25 million to $27 million. Gogo’s net leverage ratio at yearend 2024 is estimated to increase to 3.6x, and the Company expects to be back inside its target leverage range of 2.5x-3.5x within one to two years.
The transaction is immediately accretive, with $18 million of annual recurring cost savings achieved immediately after closing, and a total expected $25 million to $30 million in annual run-rate cost synergies to be achieved in the two years after close.
The acquisition is expected to accelerate sales of Gogo’s soon-to-launch Galileo Low Earth Satellite (“LEO”) connectivity product, by:
- selling Gogo Galileo to SD’s 1,300 premium global broadband customers,
- selling new Galileo installs through the SD international sales force to the 12,000 medium and smaller business aircraft outside North America that have no broadband solution available today, and
- leveraging SD’s strong presence in the Mil/Gov market where there is strong demand for LEO connectivity in combination with SD’s GEO connectivity.
“Combining with SD cements our position as the only in-flight connectivity provider able to satisfy the performance and cost needs of every segment of the global BA market,” said Oakleigh Thorne, Gogo Executive Chair. “With the launches of our next-generation LEO and 5G technologies, Gogo and SD are uniquely positioned to drive growth and future value creation.”
Gogo’s principal shareholders, GTCR, a leading private equity firm, and Thorndale Farm Inc., have expressed strong support for the acquisition and did not sell any shares in the transaction, reflecting their confidence in the long-term value creation potential of the combined company.
Leadership Transitions
In connection with the completion of the combination, Chris Moore, President of SD, has been appointed Gogo’s Chief Executive Officer and will lead the combined company, bringing years of satellite and telecommunications experience and success to his new role. He succeeds Thorne, who transitions to Executive Chair of the Gogo Board of Directors.
Moore said, “Uniting the complementary strengths of Gogo and SD marks an exciting new chapter for us as one company. Together, we are uniquely positioned to deliver unparalleled in-flight connectivity solutions across the underpenetrated global BA and military/government mobility markets. I am excited to expand Gogo’s reach and continue its legacy of exceptional service and cutting-edge technology.”
In addition, Zachary Cotner, Chief Financial Officer of SD, has been appointed Chief Financial Officer of the combined company, succeeding Jessi Betjemann. Mike Begler, who previously served as Senior Vice President of Gogo Production Operations, has been appointed Executive Vice President, Chief Operating Officer of the combined company.
Thorne continued, “I want to thank Jessi for her years of commitment and financial leadership at Gogo and wish her the best in her next chapter. As I transition to the Executive Chair role, I remain deeply committed to Gogo as a leader and an investor and look forward to working closely with Chris, Zach, Mike and our world-class team.”
Reiterates 2024 Guidance and Product Launch Timelines
Gogo reiterates the following standalone 2024 financial guidance previously provided on Tuesday, November 5, 2024:
- Total revenue in the range of $400 million to $410 million,
- Adjusted EBITDA in the range of $120 million to $130 million, which includes legal expenses from ongoing legal proceedings and approximately $20 million of operating expenses for strategic and operational initiatives including Gogo 5G and Gogo Galileo,
- Free Cash Flow in the range of $55 million to $65 million, which includes $35 million in reimbursements tied to the FCC Reimbursement Program, and
- Capital expenditures of approximately $30 million, which includes approximately $20 million for strategic initiatives.
As previously disclosed upon announcement of the transaction, the combined company is expected to generate pro forma 2024 revenue of approximately $890 million, Adjusted EBITDA Margin of approximately 24% and Free Cash Flow of more than $100 million. Including the anticipated launch of Gogo Galileo, the combined company is expected to deliver long-term annual revenue growth in the 10% range, Adjusted EBITDA Margins in the mid-20% range and significant Free Cash Flow accretion, which will support strategic investments, de-levering and return of capital to shareholders. See “Non-GAAP Financial Measures” below.
Additionally, Gogo reiterates that its small-form-factor Galileo HDX LEO service remains on track to begin shipping to customers by the end of 2024, and it expects to launch its large form factor Galileo FDX, and its Gogo 5G network, late in the second quarter of 2025.
About Gogo
Gogo is a leading provider of inflight connectivity services able to satisfy the performance and cost needs of every segment of the global business aviation and government markets. We offer a customizable suite of smart cabin systems for highly integrated connectivity, inflight entertainment, and voice solutions. Gogo’s products and services are installed on thousands of business aircraft of all sizes and mission types from turboprops to the largest global jets, and are utilized by the largest fractional ownership operators, charter operators, corporate flight departments and individuals. In addition, Gogo delivers consistent, reliable connectivity globally to military and government customers that utilize heavy jets.
As of September 30, 2024, Gogo reported 7,016 business aircraft flying with its broadband ATG systems onboard, 4,379 of which are flying with a Gogo AVANCE L5 or L3 system; and 4,180 aircraft with narrowband satellite connectivity installed. Connect with us at www.gogoair.com.
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Investor Relations Contact |
Media Relations Contacts: |
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Will Davis +1 917-519-6994 wdavis@gogoair.com |
Stacey Giglio +1 321-525-4607 +1 321-361-6101 |
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sgiglio@satcomdirect.com |
Non-GAAP Financial Measures
We report certain non-GAAP financial measurements, including Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow in the discussion above. Management uses Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow for business planning purposes, including managing our business against internally projected results of operations and measuring our performance and liquidity. These supplemental performance measures also provide another basis for comparing period-to-period results by excluding potential differences caused by non-operational and unusual or non-recurring items. These supplemental performance measurements may vary from and may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow are not recognized measurements under accounting principles generally accepted in the United States, or GAAP. When analyzing our performance with Adjusted EBITDA or Adjusted EBITDA Margin or liquidity with Free Cash Flow, as applicable, investors should (i) evaluate each adjustment in our reconciliation to the corresponding GAAP measure, and the explanatory footnotes regarding those adjustments in our financial statements, (ii) use Adjusted EBITDA and Adjusted EBITDA Margin in addition to, and not as an alternative to, net income (loss) attributable to common stock as a measure of operating results, and (iii) use Free Cash Flow in addition to, and not as an alternative to, consolidated net cash provided by (used in) operating activities when evaluating our liquidity. No reconciliation of the forecasted amounts of Adjusted EBITDA for fiscal 2024 is included in this release because we are unable to quantify certain amounts that would be required to be included in the corresponding GAAP measure without unreasonable efforts, due to high variability and complexity with respect to estimating certain forward-looking amounts, and we believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors.
Cautionary Note Regarding Forward-Looking Statements
Certain disclosures in this press release include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the Company’s acquisition of SD and synergies related thereto, our ongoing delay and the risk of future delays in deploying 5G, and our ability to develop and deploy Gogo 5G, Gogo Galileo or other next generation technologies, the Company’s business outlook, industry, business strategy, plans, goals and expectations concerning the Company’s market position, international expansion, future technologies, future operations, margins, profitability, future efficiencies, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words “anticipate,” “assume,” “believe,” “budget,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “future” and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this report. Forward-looking statements reflect the Company’s current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although the Company believes the expectations reflected in the forward-looking statements are reasonable, the Company can give you no assurance these expectations will prove to have been correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from the Company’s expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, our ability to effectively evaluate and pursue strategic opportunities. Additional information concerning these and other factors can be found under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2024, and in the Company’s Quarterly Reports on Form 10-Q as filed with the SEC on May 7, 2024, August 7, 2024 and November 5, 2024. Any one of these factors or a combination of these factors could materially affect the Company’s financial condition or future results of operations and could influence whether any forward-looking statements contained in this report ultimately prove to be accurate. The Company’s forward-looking statements are not guarantees of future performance, and you should not place undue reliance on them. All forward-looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Gogo
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Marvell shares surge as it forecasts strong Q4 amid AI demand
(Reuters) – Marvell Technology’s (MRVL) Technology’s shares jumped over 13% in premarket trading on Wednesday after the chipmaker’s optimistic forecast boosted investor confidence in AI-related stocks.
The company, which produces custom AI chips for major cloud provider that help GenAI speedily process large amounts of data, forecast fourth-quarter revenue above estimates on Tuesday.
“Marvell is capitalizing on a massive artificial intelligence chip opportunity with a burgeoning custom accelerator portfolio and a dominant optical chip position,” Morningstar analysts said in a note.
The company’s market capitalization could increase by more than $11 billion if premarket gains hold, pushing its valuation to a record $94.37 billion.
“We are seeing strong custom AI demand continue into the fourth quarter and have secured supply chain capacity to support our customers’ growth forecast,” CEO Matt Murphy said on Tuesday.
Reuters reported on Tuesday that CEO Murphy is being considered a potential candidate for the position of CEO at the struggling chipmaker Intel (INTC). However, Murphy said during a post-earnings call that he remains “100% focused on Marvell.”
Marvell’s shares have climbed nearly 60% this year, driven by Wall Street’s AI-focused “picks-and-shovels” trade that has propelled chipmakers’ stocks to new highs.
Efforts by hyperscalers such as Microsoft (MSFT), Meta (META), and Alphabet (GOOG, GOOGL) to reduce reliance on AI chip leader Nvidia’s (NVDA) supply-constrained processors have benefited companies like Marvell and its larger competitor, Broadcom (AVGO).
The company’s data center segment, which includes custom chips, saw 98% growth to a record $1.10 billion in the third quarter, accounting for over 70% of total revenue in the quarter, compared to about 40% in the year-ago period.
Other chipmakers also saw gains, with Broadcom up nearly 2% premarket, while Nvidia, Intel, AMD (AMD), and Qualcomm (QCOM) rose between 0.5% and 1.5%.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Tasim Zahid)
Salesforce jumps as latest AI tools set to accelerate demand
(Reuters) – Salesforce (CRM) shares jumped 12.5% in premarket trading on Wednesday, after the customer relationship management software maker topped quarterly sales estimates and provided an upbeat forecast for its newly launched AI integrated products.
The company is banking on Agentforce to reenergize its growth, as tech firms look to tap into rising demand for AI agents that can autonomously complete tasks.
“F2026 (CY25) is shaping up to be an important transitional year as CRM lays the groundwork to bring AI agents to the enterprise masses with new pricing and packaging offerings(Agentforce, Foundations, Data Cloud, etc.),” said analysts at Piper Sandler.
On a post-earnings call, executives said even though Agentforce was made generally available in late October, it delivered 200 deals. They also projected a strong pipeline of deals.
“We remain very bullish on Agentforce even despite the long road to monetization and believe we have presented the broadest and deepest possible array of proprietary Agentforce work,” J.P. Morgan analysts said.
Salesforce is set to add more than $40 billion to its market valuation of $316.85 billion if gains hold. At least 20 analysts raised their price targets on the stock, according to LSEG data.
The stock has gained about 26% this year through the last close and the new median price target of $380 represents an about 15% upside.
The company now expects fiscal year 2025 revenue between $37.8 billion and $38 billion, compared with its prior forecast range of $37.7 billion to $38 billion.
Third-quarter revenue rose 8% to $9.44 billion, beating the average analyst estimate of $9.35 billion, according to data compiled by LSEG.
“We like the setup heading into FY’26 given reasonable Street expectations, positive progress made around the company’s AI strategy, and potential upside as front-office spending comes back,” Baird Equity Research analysts said.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Sriraj Kalluvila)
Microscopy Market Insights, Key Drivers and Emerging Trends | Exactitude Consultancy
Luton, Bedfordshire, United Kingdom, Dec. 04, 2024 (GLOBE NEWSWIRE) — Key Drivers of the market include the growing demand for advanced imaging in regenerative medicine, nanotechnology, and research and development across industries. The use of microscopy in semiconductor fabrication, healthcare diagnostics, and environmental monitoring has further fueled market growth. However, the high cost of microscopes and ongoing software subscription fees, especially for high-end electron microscopes and scanning probe microscopes, remain a significant barrier.
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North America currently leads the market, supported by robust funding for R&D and the presence of several key manufacturers and distributors. The region’s dominance is also due to strong regulations and high demand for advanced, high-tech products in industries such as healthcare, pharmaceuticals, and electronics.
As new applications emerge, such as optogenetics and the integration of microscopy in telemedicine, there is considerable potential for growth in various market segments. However, the skills gap in handling advanced microscope systems, particularly those with AI and ML capabilities, could present challenges to widespread adoption.
Microscopy Market Dynamics
Drivers: Increased Focus on Regenerative Medicine and Nanotechnology
Nanotechnology, a multidisciplinary field encompassing engineering, biology, chemistry, and physics, has gained significant attention, particularly in regenerative medicine. As nanomaterials are often too small to be observed with standard optical microscopes, advanced microscopes are essential for their study. These instruments provide crucial insights into nanostructures by offering high-resolution imaging that allows for molecular and atomic-level characterizations. As regenerative medicine continues to evolve, alongside advancements in nanotechnology, the demand for precise, high-quality microscopy instruments is expected to rise, driving market growth.
Restraints: High Costs of Advanced Microscopes and Software Subscriptions
Technological advancements have led to the emergence of high-end microscopes such as electron microscopes, scanning probe microscopes, and digital microscopes. These devices offer enhanced features, including superior magnification and resolution, but their high costs remain a significant barrier. High-end models can range from approximately USD 30,000 to USD 2.5 million, limiting their accessibility for small labs and businesses. Furthermore, the need for specialized software that often requires recurring subscription fees adds to operational costs, further hindering market penetration. The combination of these high initial and maintenance costs restricts the widespread adoption of these technologies, particularly in resource-constrained environments.
Opportunities: Expanding Applications in Emerging Fields
Recent developments in microscopy have unlocked new potential in various fields. In optogenetics, microscopy is being used alongside light-based methods to regulate and monitor neuronal activity in living tissues, opening new doors in neurobiology. Telemedicine, which increasingly relies on remote diagnostics, also benefits from advanced microscopes capable of digital support and remote management. Moreover, the semiconductor and electronics industries have adopted innovative microscopy techniques for quality control, production monitoring, and defect detection at the micro and nano scales. With these expanding applications, the microscopy market has substantial growth opportunities, particularly as industries seek more precise and efficient diagnostic tools.
Challenges: Shortage of Skilled Professionals
Despite the high demand for advanced microscopy instruments, the shortage of qualified professionals to operate and manage these sophisticated systems remains a key challenge. Many modern microscopes integrate AI and machine learning (ML) technologies, which require specialized knowledge to handle. However, the current availability of skilled personnel is insufficient to meet this demand, especially in developing regions. Additionally, software updates and the need for regular maintenance increase the operational costs, which could discourage potential buyers in countries with lower purchasing power. The lack of expertise in managing cutting-edge technologies, combined with increasing operational expenses, could slow the adoption of advanced microscopes in the market.
Market Outlook and Future Trends
The microscopy market is poised for steady growth driven by innovations in nanotechnology and regenerative medicine. However, high instrument costs and the need for skilled professionals to operate complex systems remain significant challenges. As the market for advanced microscopy continues to evolve, addressing these barriers through cost-effective solutions, improved training programs, and accessible software subscriptions will be critical to sustaining growth. Furthermore, expanding applications in fields like optogenetics, telemedicine, and semiconductors will continue to fuel demand, ensuring the future relevance and success of the microscopy market.
These trends highlight the ongoing transformation of microscopy technologies and their increasing importance across diverse industries. As demand for high-quality imaging rises, the market is expected to evolve, with new opportunities for growth, while still facing significant hurdles related to cost and expertise.
Microscopy Market Segmentation and Trends
By Product Type:
In 2023, the optical microscope segment held the largest market share within the microscopy industry. This dominant share is primarily due to the increased emphasis on advancing digital microscopy technologies, alongside the broadening range of applications in sectors such as materials science, semiconductors, and life sciences. Optical microscopes offer a magnification range of 10x to 1,000x, making them versatile tools across various industries. Recent technological advancements have enabled optical microscopes to incorporate CMOS and CCD cameras, allowing real-time digital imaging. This innovation eliminates the need for traditional eyepieces, providing users with a more convenient and efficient method of sample examination.
By Application:
In terms of application, the semiconductors and electronics sector led the microscopy market in 2023. Microscopes play a crucial role in inspecting and ensuring the quality of semiconductor components and in the precise fabrication of electronic devices. The sector’s growth is fueled by the increasing demand for miniaturized, high-performance electronic components. Other notable applications for microscopes include materials sciences, healthcare and life sciences, automotive, aerospace, environmental monitoring, and water treatment. Among these, industrial and healthcare applications are the major contributors to market volume, with industrial settings, in particular, dominating due to the practical demand for precise imaging and analysis in manufacturing, diagnostics, and quality control.
As microscopy technology continues to evolve, its integration into industrial processes is set to expand, reinforcing the demand across various sectors, particularly those requiring high precision and advanced imaging capabilities.
Report Link Click Here: https://exactitudeconsultancy.com/reports/31343/microscopy-market/
Regional Analysis of the Microscopy Market
North America is anticipated to remain the largest market for microscopy products throughout the forecast period. The region’s dominance can be attributed to its robust financing system, which actively supports research and development and fosters continuous demand for cutting-edge, high-tech products. North America is home to numerous leading microscope distributors and manufacturers, driven by favorable regulatory environments and strong infrastructure in advanced manufacturing.
Key industry players are well-established in North America, taking advantage of the region’s strategic positioning to cater to both academic and industrial sectors. Additionally, the growing demand for high-precision instruments across sectors like healthcare, life sciences, semiconductors, and materials science contributes to North America’s sustained leadership in the global microscopy market. The concentration of research institutions and medical facilities in the region further reinforces its position, ensuring continuous growth and innovation.
Key Players:
- Danaher Corporation
- Thermo Fisher Scientific
- Oxford Instruments plc
- Hitachi High–Tech Corporation
- Keyence Corporation
- Shimadzu Corporation Carl Zeiss AG
- EVIDENT
- Nikon Corporation
- JEOL Ltd.
- Euromex Microscopen bv
- Bruker Corporation
- Helmut Hund GmbH
Market Segmentations:
By Type
- Optical Microscopes
- Electron Microscopes
- Scanning Probe Microscopes
- Accessories
- Software
By Application
- Semiconductors and electronics
- Healthcare and life sciences
- Materials Science
- Others
By End Users
- Industrial Users
- Diagnostic and Pathology Labs
- Pharma–Biopharma Companies and CRO’s
- Academic and Research Institutes
- Others
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Recent Developments of Microscopy Industry:
- Danaher Corporation – VIVENTIS LS2 (May 2024): Danaher Corporation launched the VIVENTIS LS2, featuring light sheet technology. This innovation is designed to produce high-depth images of live samples, improving clarity and detail in cellular imaging. It enhances live-cell imaging applications, making it ideal for researchers focusing on dynamic biological processes in real time.
- Carl Zeiss AG – Axiovert 5 (June 2023): Carl Zeiss AG unveiled the Axiovert 5, a cell imaging system equipped with pre-built artificial intelligence. This system automates complex lab workflows, offering significant efficiency improvements in cell imaging. The integration of AI streamlines data analysis, making it easier for researchers to process large volumes of imaging data.
- Thermo Fisher Scientific – METRIOS 6 (S)TEM (June 2023): Thermo Fisher Scientific launched the METRIOS 6 (S)TEM, an advanced transmission electron microscope (TEM). This model includes new features that allow for in-depth imaging of internal structures at the nanoscale level. It offers unparalleled imaging capabilities for sample analysis, particularly useful in materials science and nanotechnology research.
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Stock market today: Nasdaq futures lead S&P 500, Dow higher with Fed's Powell on deck
US stock futures rose on Wednesday, as techs helped set the stage for fresh record highs and investors waited to hear from Federal Reserve Chair Jerome Powell for clues to what’s next for interest rates.
Dow Jones Industrial Average futures (YM=F) climbed 0.5%, or over 200 points, while S&P 500 futures (ES=F) added 0.3% on the heels of an all-time closing high. Contracts on the tech-heavy Nasdaq 100 (NQ=F) led the way higher with a 0.7% gain.
Salesforce (CRM) stock surged around 13% in pre-market trading after the software maker’s quarterly revenue beat boosted hopes for its AI products. Shares of Okta (OKTA) and Marvell (MRVL) also jumped amid well-received earnings reports, setting a positive tone for techs.
Anticipation is building for Powell’s appearance in New York later, with Wall Street keen to find out whether growing confidence in a December rate cut is justified. Fed officials have signaled support for more easing as they prepare for their final meeting of the year.
The central bank is widely expected to lower rates at its Dec. 18 meeting. Traders see near 74% odds of a 25 basis point cut, compared with around 66% a week ago, per the CME FedWatch tool.
A reading on private payrolls in November is in focus after job openings data suggested the labor market is softening but not too much. The ADP report highlights a busy Wednesday of PMIs and other economic releases, and leads into the all-important monthly jobs report on Friday.
Investors were also keeping a watchful eye on political turmoil in France after upheaval in South Korea pulled stocks there lower. French lawmakers will vote on a no-confidence motion that could bring down the government. Meanwhile, South Korea’s president now faces impeachment after plunging the country into political crisis by briefly declaring martial law.
Coming soon
Live stock market coverage for Wednesday, Dec. 4, 2024
DOLLARAMA REPORTS FISCAL 2025 THIRD QUARTER RESULTS
- 3.3% comparable store sales(1) growth and 6.5% increase in diluted net earnings per share to $0.98
- Increases long-term store target in Canada to 2,200 stores by 2034
- Enters into agreement to acquire land in the Calgary, Alberta region to develop a logistics hub in Western Canada
MONTREAL, Dec. 4, 2024 /PRNewswire/ – Dollarama Inc. DOL (“Dollarama” or the “Corporation”) today reported its financial results for the third quarter ended October 27, 2024.
Fiscal 2025 Third Quarter Highlights Compared to Fiscal 2024 Third Quarter Results
- Sales increased by 5.7% to $1,562.6 million, compared to $1,477.7 million
- Comparable store sales increased by 3.3%, over and above 11.1% growth in the corresponding period of the previous year
- EBITDA(1) increased by 6.5% to $509.7 million, representing an EBITDA margin(1) of 32.6%, compared to 32.4%
- Operating income increased by 5.4% to $407.5 million, representing an operating margin(1) of 26.1%, compared to 26.2%
- Diluted net earnings per common share increased by 6.5% to $0.98, compared to $0.92
- 18 net new stores opened, compared to 16 net new stores
- 1,360,635 common shares repurchased for cancellation for $186.2 million
“We are pleased with our financial results in the third quarter of fiscal 2025, with solid same store sales growth in the context of continued normalization and cautious consumer spending. Our performance demonstrates the enduring relevance of our business model for consumers from coast to coast,” said Mr. Neil Rossy, President and CEO.
“In light of the positive customer response to our value proposition year after year and following a re‑evaluation of our market potential in Canada, we are increasing our long-term target from 2,000 stores by 2031 to 2,200 stores by 2034. We are also setting in motion plans for a future logistics hub in Western Canada, in complement to our currently centralized logistics operations in the Montreal area, to support our growth and optimize our logistics for the long term,” concluded Mr. Neil Rossy.
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(1) Refer to the section entitled “Non-GAAP and Other Financial Measures” of this press release for the definition of these items and, where applicable, their reconciliation with the most directly comparable GAAP measure. |
Fiscal 2025 Third Quarter Financial Results
Sales for the third quarter of fiscal 2025 increased by 5.7% to $1,562.6 million, compared to $1,477.7 million in the corresponding period of the prior fiscal year. This increase was driven by growth in the total number of stores over the past 12 months (from 1,541 stores on October 29, 2023, to 1,601 stores on October 27, 2024) and increased comparable store sales.
Comparable store sales for the third quarter of fiscal 2025 increased by 3.3%, consisting of a 5.1% increase in the number of transactions and a 1.7% decrease in average transaction size, over and above comparable store sales growth of 11.1% in the corresponding period of the prior fiscal year. Comparable store sales in the third quarter of fiscal 2025 remained strong, driven by continued customer demand for consumables, offset by softer demand for seasonal items, compared to the same period last year.
Gross margin(1) reached 44.7% of sales in the third quarter of fiscal 2025, compared to 45.4% of sales in the third quarter of fiscal 2024. The decrease is mainly due to stronger sales of lower margin consumable products and higher logistics costs.
General, administrative and store operating expenses (“SG&A”) for the third quarter of fiscal 2025 increased by 4.5% to $223.5 million, compared to $213.8 million for the third quarter of fiscal 2024. SG&A as a percentage of sales decreased to 14.3% for the third quarter of fiscal 2025, compared to 14.5% for the third quarter of fiscal 2024, due to the positive impact of scaling.
EBITDA totalled $509.7 million, representing an EBITDA margin of 32.6%, for the third quarter of fiscal 2025, compared to $478.8 million, or an EBITDA margin of 32.4% of sales, in the third quarter of fiscal 2024.
The Corporation’s 60.1% share of Dollarcity’s net earnings for the period from July 1, 2024 to September 30, 2024 amounted to $27.1 million. This compares to $18.0 million for the Corporation’s 50.1% share during the same period last year. The Corporation’s investment in Dollarcity is accounted for as a joint arrangement using the equity method.
Net financing costs increased by $4.9 million, from $36.7 million for the third quarter of fiscal 2024 to $41.6 million for the third quarter of fiscal 2025. The increase is mainly due to higher interest expense on lease obligations and a decrease in interest income due to lower invested capital.
Net earnings increased by 5.6% to $275.8 million, compared to $261.1 million in the third quarter of fiscal 2024, reflecting an increase in diluted net earnings per common share of 6.5% to $0.98 per diluted common share, in the third quarter of fiscal 2025.
New Long-Term Dollarama Store Target in Canada(2)
Following an updated evaluation of the market potential for Dollarama stores across Canada, management believes that the Corporation can profitably grow its Canadian store network to approximately 2,200 stores by 2034 and maintain an average new store capital payback period of approximately two years. This is an increase from Dollarama’s previously disclosed long-term store target of 2,000 stores in Canada by 2031.
Factors taken into consideration and the assumptions relied upon in the establishment of the new long‑term store target include the continued positive customer response to Dollarama’s value proposition and the relevance of its business model, third-party analysis, the successful management of profit margins, actual and projected census and household income data, rates of per capita store penetration, historical and projected performance of comparable and new stores, the current real estate pipeline and the competitive retail, real estate, labour, economic and geopolitical conditions, and the absence of any significant change in such conditions.
|
_________________________________ |
|
(2) To be read in conjunction with the “Forward-Looking Statements” section of this press release. |
Dollarama to Acquire Land for Development of a Logistics Hub in Western Canada(2)
The Corporation has entered into an agreement to acquire land in the Calgary, Alberta region for a total cash consideration of $46.7 million, subject to customary closing purchase price adjustments.
Following the closing of the transaction, which is anticipated in the fourth quarter of fiscal 2025 and subject to the satisfaction of customary closing conditions, the Corporation intends to build a warehouse and second distribution centre to service stores in Western Canada, expected to be commissioned by the end of calendar 2027. Having a two-node logistics model will enable the Corporation to optimize its warehousing and distribution operations and support its growth plans while generating cost savings.
The construction of the logistics hub, excluding land acquisition costs, is currently anticipated to require total capital expenditures of approximately $450.0 million, to be disbursed over a three-year period. Such expenditures are expected to be mainly funded with cash flow from operating activities and are not currently expected to impact the Corporation’s shareholder capital return strategy.
Dollarcity Store Growth
During its third quarter ended September 30, 2024, Dollarcity opened 18 net new stores, compared to 22 net new stores in the same period last year. As at September 30, 2024, Dollarcity had 588 stores with 349 locations in Colombia, 103 in Guatemala, 75 in El Salvador and 61 in Peru. This compares to 532 stores as at December 31, 2023.
Normal Course Issuer Bid
On July 4, 2024, the Corporation announced the renewal of its normal course issuer bid and the approval from the Toronto Stock Exchange to repurchase up to 16,549,476 of its common shares, representing approximately 6.0% of the public float of 275,824,605 common shares as at June 28, 2024, during the 12‑month period starting on July 7, 2024 and ending no later than July 6, 2025 (the “2024-2025 NCIB”).
During the third quarter of fiscal 2025, 1,360,635 common shares were repurchased for cancellation under the 2024-2025 NCIB, for a total cash consideration of $186.2 million, representing a weighted average price of $136.84 per share, excluding the tax on share repurchases.
Dollarama Dividend
On December 4, 2024, the Corporation announced that its Board of Directors approved a quarterly cash dividend for holders of common shares of $0.0920 per common share. This dividend is payable on February 7, 2025 to shareholders of record at the close of business on January 10, 2025. The dividend is designated as an “eligible dividend” for Canadian tax purposes.
|
_________________________________ |
|
(2) To be read in conjunction with the “Forward-Looking Statements” section of this press release. |
Outlook(2)
The Corporation’s financial annual guidance ranges for fiscal 2025 issued on April 4, 2024, as well as the assumptions on which these ranges are based, remain unchanged:
|
(as a percentage of sales except net new store |
Fiscal 2025 |
|
|
Guidance |
||
|
Net new store openings |
60 to 70 |
|
|
Comparable store sales |
3.5% to 4.5% |
|
|
Gross margin |
44.0% to 45.0% |
|
|
SG&A |
14.5% to 15.0% |
|
|
Capital expenditures (i) |
$175.0 to $200.0 |
|
(i) |
Excludes any payment towards the $46.7 million purchase price in respect of the land purchase agreement, which is expected to close in the fourth quarter of fiscal 2025, and any future payment related to the intended development of a logistics hub in Western Canada. |
These guidance ranges are based on several assumptions, including the following:
- The number of signed offers to lease and store pipeline for the remainder of fiscal 2025, the absence of delays outside of our control on construction activities and no material increases in occupancy costs in the short- to medium-term
- Approximately three months visibility on open orders and product margins
- Continued positive customer response to our product offering, value proposition and in-store merchandising
- The active management of product margins, including through pricing strategies and product refresh, and of inventory shrinkage
- The Corporation continuing to account for its investment in Dollarcity as a joint arrangement using the equity method
- The entering into of foreign exchange forward contracts to hedge the majority of forecasted merchandise purchases in USD against fluctuations of CAD against USD
- The continued execution of in-store productivity initiatives and realization of cost savings and benefits aimed at improving operating expense
- The absence of a significant shift in labour, economic and geopolitical conditions, or material changes in the retail environment
- No significant changes in the capital budget for fiscal 2025 for new store openings, maintenance and transformational capital expenditures, the latter mainly related to IT projects
- The absence of unusually adverse weather, especially in peak seasons around major holidays and celebrations
The guidance ranges included in this section are forward-looking statements within the meaning of applicable securities laws, are subject to a number of risks and uncertainties and should be read in conjunction with the “Forward-Looking Statements” section of this press release.
|
________________________________ |
|
(2) To be read in conjunction with the “Forward-Looking Statements” section of this press release. |
Forward-Looking Statements
Certain statements in this press release about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements, including the statements relating to the Corporation’s long-term store target, the proposed acquisition of land in the Calgary, Alberta region and intended development of a logistics hub in Western Canada and the Corporation’s shareholder capital return strategy. The words “may”, “will”, “would”, “should”, “could”, “expects”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “predicts”, “likely” or “potential” or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements.
Forward-looking statements are based on information currently available to management and on estimates and assumptions made by management regarding, among other things, general economic and geopolitical conditions and the competitive environment within the retail industry in Canada and in Latin America, in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including the factors which are outlined in the management’s discussion and analysis for the third quarter of the fiscal year ending February 2, 2025 and discussed in greater detail in the “Risks and Uncertainties” section of the Corporation’s annual management’s discussion and analysis for the fiscal year ended January 28, 2024, both available on SEDAR+ at www.sedarplus.ca and on the Corporation’s website at www.dollarama.com.
These factors are not intended to represent a complete list of the factors that could affect the Corporation or Dollarcity; however, they should be considered carefully. The purpose of the forward-looking statements is to provide the reader with a description of management’s expectations regarding the Corporation’s and Dollarcity’s financial performance and may not be appropriate for other purposes. Readers should not place undue reliance on forward-looking statements made herein. Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as at December 4, 2024 and management has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. All of the forward‑looking statements contained in this press release are expressly qualified by this cautionary statement.
Third Quarter Results Conference Call
Dollarama will hold a conference call to discuss its fiscal 2025 third quarter results today, December 4, 2024 at 10:30 a.m. (ET) followed by a question-and-answer period for financial analysts only. Other interested parties may participate in the call on a listen‑only basis via live audio webcast accessible through Dollarama’s website at www.dollarama.com/en-CA/corp/events-presentations.
About Dollarama
Dollarama is a recognized Canadian value retailer offering a broad assortment of consumable products, general merchandise and seasonal items both in-store and online. Our 1,601 locations across Canada provide customers with compelling value in convenient locations, including metropolitan areas, mid-sized cities and small towns. Select products are also available, by the full case only, through our online store at www.dollarama.com. Our quality merchandise is sold at select fixed price points up to $5.00.
Dollarama also owns a 60.1% interest in Dollarcity, a growing Latin American value retailer. Dollarcity offers a broad assortment of consumable products, general merchandise and seasonal items at select, fixed price points up to US$4.00 (or the equivalent in local currency) in 588 conveniently located stores in Colombia, Guatemala, El Salvador and Peru.
Selected Consolidated Financial Information
|
13-week periods ended |
39-week periods ended |
||||||
|
(dollars and shares in thousands, except per share amounts) |
October 27, 2024 |
October 29, 2023 |
October 27, 2024 |
October 29, 2023 |
|||
|
$ |
$ |
$ |
$ |
||||
|
Earnings Data |
|||||||
|
Sales |
1,562,644 |
1,477,692 |
4,531,800 |
4,228,177 |
|||
|
Cost of sales |
863,928 |
807,462 |
2,518,613 |
2,373,350 |
|||
|
Gross profit |
698,716 |
670,230 |
2,013,187 |
1,854,827 |
|||
|
SG&A |
223,519 |
213,766 |
653,631 |
607,724 |
|||
|
Depreciation and amortization |
94,788 |
87,797 |
279,041 |
258,545 |
|||
|
Share of net earnings of equity-accounted investment |
(27,083) |
(17,989) |
(71,871) |
(42,485) |
|||
|
Operating income |
407,492 |
386,656 |
1,152,386 |
1,031,043 |
|||
|
Net financing costs |
41,603 |
36,705 |
119,065 |
109,458 |
|||
|
Earnings before income taxes |
365,889 |
349,951 |
1,033,321 |
921,585 |
|||
|
Income taxes |
90,083 |
88,896 |
255,730 |
234,895 |
|||
|
Net earnings |
275,806 |
261,055 |
777,591 |
686,690 |
|||
|
Basic net earnings per common share |
$0.98 |
$0.92 |
$2.78 |
$2.42 |
|||
|
Diluted net earnings per common share |
$0.98 |
$0.92 |
$2.77 |
$2.41 |
|||
|
Weighted average number of common shares outstanding: |
|||||||
|
Basic |
281,356 |
282,587 |
280,079 |
283,921 |
|||
|
Diluted |
282,349 |
283,595 |
281,075 |
285,059 |
|||
|
Other Data |
|||||||
|
Year-over-year sales growth |
5.7 % |
14.6 % |
7.2 % |
18.1 % |
|||
|
Comparable store sales growth (1) |
3.3 % |
11.1 % |
4.5 % |
14.4 % |
|||
|
Gross margin (1) |
44.7 % |
45.4 % |
44.4 % |
43.9 % |
|||
|
SG&A as a % of sales (1) |
14.3 % |
14.5 % |
14.4 % |
14.4 % |
|||
|
EBITDA (1) |
509,677 |
478,803 |
1,451,725 |
1,302,265 |
|||
|
Operating margin (1) |
26.1 % |
26.2 % |
25.4 % |
24.4 % |
|||
|
Capital expenditures |
51,018 |
129,893 |
151,237 |
218,789 |
|||
|
Number of stores (2) |
1,601 |
1,541 |
1,601 |
1,541 |
|||
|
Average store size (gross square feet) (2) (3) |
10,454 |
10,415 |
10,454 |
10,415 |
|||
|
Declared dividends per common share |
$0.0920 |
$0.0708 |
$0.2760 |
$0.2124 |
|||
|
As at |
|||||
|
(dollars in thousands) |
October 27, |
January 28, |
|||
|
$ |
$ |
||||
|
Statement of Financial Position Data |
|||||
|
Cash and cash equivalents |
283,044 |
313,915 |
|||
|
Inventories |
947,895 |
916,812 |
|||
|
Total current assets |
1,311,066 |
1,309,093 |
|||
|
Property, plant and equipment |
992,080 |
950,994 |
|||
|
Right-of-use assets |
2,066,380 |
1,788,550 |
|||
|
Total assets |
6,441,106 |
5,263,607 |
|||
|
Total current liabilities |
919,046 |
677,846 |
|||
|
Total non-current liabilities |
4,261,845 |
4,204,913 |
|||
|
Total debt (1) |
2,284,758 |
2,264,394 |
|||
|
Net debt (1) |
2,001,714 |
1,950,479 |
|||
|
Shareholders’ equity |
1,260,215 |
380,848 |
|||
|
(1) |
Refer to the section entitled “Non-GAAP and Other Financial Measures” of this press release for the definition of these items and, where applicable, their reconciliation with the most directly comparable GAAP measure. |
||||
|
(2) |
At the end of the period. |
||||
|
(3) |
The Corporation revised its prior years square footage information to align with its current and updated methodology. |
||||
Non-GAAP and Other Financial Measures
The Corporation prepares its financial information in accordance with GAAP. Management has included non-GAAP and other financial measures to provide investors with supplemental measures of the Corporation’s operating and financial performance. Management believes that those measures are important supplemental metrics of operating and financial performance because they eliminate items that have less bearing on the Corporation’s operating and financial performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP measures. Management also believes that securities analysts, investors and other interested parties frequently use non-GAAP and other financial measures in the evaluation of issuers. Management also uses non-GAAP and other financial measures to facilitate operating and financial performance comparisons from period to period, to prepare annual budgets and to assess their ability to meet the Corporation’s future debt service, capital expenditure and working capital requirements.
The below-described non-GAAP and other financial measures do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers and should be considered as a supplement to, not a substitute for, or superior to, the comparable measures calculated in accordance with GAAP.
(A) Non-GAAP Financial Measures
EBITDA
EBITDA represents operating income plus depreciation and amortization and includes the Corporation’s share of net earnings of its equity-accounted investment. Management believes EBITDA represents a supplementary metric to assess profitability and measure the Corporation’s underlying ability to generate liquidity through operating cash flows. A reconciliation of operating income to EBITDA is included below:
|
13-week periods ended |
39-week periods ended |
||||||
|
(dollars in thousands) |
October 27, 2024 |
October 29, 2023 |
October 27, 2024 |
October 29, 2023 |
|||
|
$ |
$ |
$ |
$ |
||||
|
Operating income |
407,492 |
386,656 |
1,152,386 |
1,031,043 |
|||
|
Add: Depreciation and amortization |
102,185 |
92,147 |
299,339 |
271,222 |
|||
|
EBITDA |
509,677 |
478,803 |
1,451,725 |
1,302,265 |
|||
Total debt
Total debt represents the sum of long-term debt (including accrued interest and fair value hedge – basis adjustment), short-term borrowings under the US commercial paper program, long-term financing arrangements and other bank indebtedness (if any). Management believes Total debt represents a measure to facilitate the understanding of the Corporation’s corporate financial position in relation to its financing obligations. A reconciliation of long-term debt to total debt is included below:
|
(dollars in thousands) |
As at |
|||
|
October 27, |
January 28, |
|||
|
Senior unsecured notes (the “Fixed Rate Notes”) bearing interest at: |
$ |
$ |
||
|
Fixed annual rate of 5.165% payable in equal semi-annual instalments, maturing April 26, 2030 |
450,000 |
450,000 |
||
|
Fixed annual rate of 2.443% payable in equal semi-annual instalments, maturing July 9, 2029 |
375,000 |
375,000 |
||
|
Fixed annual rate of 5.533% payable in equal semi-annual instalments, maturing September 26, 2028 |
500,000 |
500,000 |
||
|
Fixed annual rate of 1.505% payable in equal semi-annual instalments, maturing September 20, 2027 |
300,000 |
300,000 |
||
|
Fixed annual rate of 1.871% payable in equal semi-annual instalments, maturing July 8, 2026 |
375,000 |
375,000 |
||
|
Fixed annual rate of 5.084% payable in equal semi-annual instalments, maturing October 27, 2025 |
250,000 |
250,000 |
||
|
Unamortized debt issue costs, including $1,371 (January 28, 2024 – $1,320) for the credit facility |
(7,754) |
(9,049) |
||
|
Accrued interest on the Fixed Rate Notes |
26,354 |
21,460 |
||
|
Long-term financing arrangement |
7,133 |
– |
||
|
Fair value hedge – basis adjustment on interest rate swap |
9,025 |
1,983 |
||
|
Total debt |
2,284,758 |
2,264,394 |
||
Net debt
Net debt represents total debt minus cash and cash equivalents. Management believes Net debt represents a measure to assess the financial position of the Corporation including all financing obligations, net of cash and cash equivalents. A reconciliation of total debt to net debt is included below:
|
(dollars in thousands) |
As at |
|||
|
October 27, |
January 28, |
|||
|
$ |
$ |
|||
|
Total debt |
2,284,758 |
2,264,394 |
||
|
Cash and cash equivalents |
(283,044) |
(313,915) |
||
|
Net debt |
2,001,714 |
1,950,479 |
||
(B) Non-GAAP Ratios
Adjusted net debt to EBITDA ratio
Adjusted net debt to EBITDA ratio is a ratio calculated using adjusted net debt over consolidated EBITDA for the last twelve months. Management uses this ratio to partially assess the financial condition of the Corporation. An increasing ratio would indicate that the Corporation is utilizing more debt per dollar of EBITDA generated. A calculation of adjusted net debt to EBITDA ratio is included below:
|
(dollars in thousands) |
As at |
|||
|
October 27, |
January 28, |
|||
|
$ |
$ |
|||
|
Net debt |
2,001,714 |
1,950,479 |
||
|
Lease liabilities |
2,370,031 |
2,069,229 |
||
|
Unamortized debt issue costs, including $1,371 (January 28, 2024 – $1,320) for the credit facility |
7,754 |
9,049 |
||
|
Fair value hedge – basis adjustment on interest rate swap |
(9,025) |
(1,983) |
||
|
Adjusted net debt |
4,370,474 |
4,026,774 |
||
|
EBITDA for the last twelve-month period |
2,010,626 |
1,861,166 |
||
|
Adjusted net debt to EBITDA ratio |
2.17x |
2.16x |
||
EBITDA margin
EBITDA margin represents EBITDA divided by sales. Management believes that EBITDA margin is useful in assessing the performance of ongoing operations and efficiency of operations relative to its sales. A reconciliation of EBITDA to EBITDA margin is included below:
|
13-week periods ended |
39-week periods ended |
||||||
|
(dollars in thousands) |
October 27, 2024 |
October 29, 2023 |
October 27, 2024 |
October 29, 2023 |
|||
|
$ |
$ |
$ |
$ |
||||
|
EBITDA |
509,677 |
478,803 |
1,451,725 |
1,302,265 |
|||
|
Sales |
1,562,644 |
1,477,692 |
4,531,800 |
4,228,177 |
|||
|
EBITDA margin |
32.6 % |
32.4 % |
32.0 % |
30.8 % |
|||
(C) Supplementary Financial Measures
|
Gross margin |
Represents gross profit divided by sales, expressed as a percentage of sales. |
|
Operating margin |
Represents operating income divided by sales, expressed as a percentage of sales. |
|
SG&A as a % of sales |
Represents SG&A divided by sales. |
|
Comparable store sales |
Represents sales of Dollarama stores, including relocated and expanded stores, open for at least 13 complete fiscal months relative to the same period in the prior fiscal year. |
|
Comparable store sales growth |
Represents the percentage increase or decrease, as applicable, of comparable store sales relative to the same period in the prior fiscal year. |
View original content:https://www.prnewswire.com/news-releases/dollarama-reports-fiscal-2025-third-quarter-results-302321894.html
SOURCE Dollarama Inc.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Wall Street's Most Accurate Analysts Spotlight On 3 Industrials Stocks With Over 5% Dividend Yields
During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.
Benzinga readers can review the latest analyst takes on their favorite stocks by visiting Analyst Stock Ratings page. Traders can sort through Benzinga’s extensive database of analyst ratings, including by analyst accuracy.
Below are the ratings of the most accurate analysts for three high-yielding stocks in the industrials sector.
Deluxe Corporation DLX
- Dividend Yield: 5.13%
- TD Cowen analyst Lance Vitanza maintained a Buy rating and raised the price target from $33 to $35 on May 14. This analyst has an accuracy rate of 79%.
- Northcoast Research analyst Kartik Mehta initiated coverage on the stock with a Buy rating and a price target of $27 on April 19. This analyst has an accuracy rate of 67%.
- Recent News: On Nov. 19, Deluxe announced the pricing of senior secured notes offering.
- Benzinga Pro’s real-time newsfeed alerted to latest DLX news
Karat Packaging Inc. KRT
- Dividend Yield: 5.10%
- Truist Securities analyst Jake Bartlett downgraded the stock from Buy to Hold and cut the price target from $34 to $28 on Aug. 9. This analyst has an accuracy rate of 74%.
- Stifel analyst Michael Hoffman reiterated a Buy rating and raised the price target from $30 to $32 on March 15. This analyst has an accuracy rate of 86%.
- Recent News: On Nov. 7, Karat Packaging posted weaker-than-expected quarterly earnings.
- Benzinga Pro’s real-time newsfeed alerted to latest KRT news
United Parcel Service, Inc. UPS
- Dividend Yield: 5.03%
- Citigroup analyst Ariel Rosa maintained a Buy rating and cut the price target from $163 to $158 on Nov. 12. This analyst has an accuracy rate of 74%.
- Oppenheimer analyst Scott Schneeberger maintained an Outperform rating and raised the price target from $140 to $146 on Oct. 28. This analyst has an accuracy rate of 70%.
- Recent News: On Oct. 24, United Parcel Service reported better-than-expected third-quarter financial results.
- Benzinga Pro’s charting tool helped identify the trend in UPS stock.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Coccidioidomycosis Drugs Market to Reach US$ 634.3 Million by 2034, Expanding at a CAGR of 4.9% | Fact.MR Report
Rockville, MD, Dec. 04, 2024 (GLOBE NEWSWIRE) — According to Fact.MR, a market research and competitive intelligence provider, the global coccidioidomycosis drugs market is estimated to reach a valuation of US$ 393.1 million in 2024 and is expected to grow at a CAGR of 4.9% during the forecast period of (2024 to 2034).
The global coccidioidomycosis drugs market is set to witness significant growth over the next few years driven by increased awareness, development in antifungals with new technologies, and access to health care in regions endemic for this disease like the southwestern part of the United States and parts of Central and South America. According to Fact.MR, the upward trajectory of the market is underpinned by a confluence of factors in light of an increased prevalence of valley fever, improving diagnostics, and demand for effective treatments, especially as more cases are showing up with environmental factors.
The coccidioidomycosis drugs market has grown steadily during the past years, supported by several critical factors. The key drivers include rising awareness of the prevalence of valley fever, particularly in its endemic regions, enabled by healthcare initiatives and state policies increasing public awareness. Growing demand for antifungal therapies, primarily azole antifungals, contributed to the market, driven by effective outpatient treatment needs of patients and healthcare providers. These two drugs are the preferred choice to treat the infection due to their availability and ease of usage. Since it is less expensive, these two drugs are pre ferred for mild or moderate cases. Growing demand along with improvement related to the formulations of antifungal drugs, has facilitated the growth in the market.
For More Insights into the Market, Request a Sample of this Report: https://www.factmr.com/connectus/sample?flag=S&rep_id=10503
Recent innovations in lipid-based formulations of Amphotericin B try to reduce toxicity developed by polyene drugs so that they can be safely administered in serious or disseminated cases of coccidioidomycosis. This has widened the therapeutic horizons for patients with progressive infections and has been of particular benefit to those who are immunocompromised. Newer approaches to resistant cases include combination therapies using azoles together with polyenes or echinocandins, further widening treatment options.
With wider availability and better drug formulations, health providers now have more effective tools for the treatment of valley fever, says an analyst at Fact.MR. This trend is likely to see further reflection as new products come into the market to further support positive patient outcomes.
Key Takeaways from the Market Study:
- The global coccidioidomycosis drugs market is projected to grow at 9% CAGR and reach US$ 634.3 million by 2034
- The market created an opportunity of US$ 57.8 million growing at a CAGR of 3% between 2019 to 2024
- North America is a prominent region that is estimated to hold a market share of 7% in 2034
- Predominating market players include Pfizer Inc., and Glenmark Pharmaceutical Inc among others.
- Oral segments under route of administration are estimated to grow at a CAGR of 1% creating an absolute $ opportunity of US$ 160.0 million between 2024 and 2034
“Higher diagnosis rates and awareness are substantially driving the demand for valley fever treatment options, as healthcare providers increasingly use antifungal therapies to manage mild to severe cases, says a Fact.MR analyst.
Leading Players Driving Innovation in the Coccidioidomycosis Drugs Market:
Pfizer Inc.; Glenmark Pharmaceutical Inc; Cipla Inc; Sun Pharmaceutical Industries Ltd.; Viatris Inc.; Novartis AG (Sandoz); Gilead Sciences, Inc.; Merck & Co., Inc.; Dr Reddy’s Laboratories (UK) Ltd; Xellia Pharmaceuticals; FUJIFILM Toyama Chemical Co., Ltd.; Nippon Chemiphar Co., Ltd; Other Prominent Players
Market Development:
The growth strategy for the coccidioidomycosis drugs market involves geographic expansion concerning therapeutic development. Other pharmaceutical companies also expand into emerging markets that might present cases from either travel to and from endemic areas or due to climate change. Greater migration and travel between North America and other parts of the world has raised increased international awareness, thus encouraging companies to expand their reach and improve access to antifungal therapies.
The company Walgreens is already on its way to executing this by introducing online pharmacy services that could facilitate accessibility for antifungal drugs in patients suffering from valley fever. On August 2022, OFRANTIN is on the list of antifungal medications as is being sold on the Walgreens website. Due to its desire to increase the accessibility of antifungal medications to those in the more rural regions as well as to increase patient compliance to the long-term treatment process of valley fever, Walgreens started an online service.
Online services make it easier for patients, especially those suffering from chronic or recurrent infections, to have easy access to maintenance drugs supporting their treatment and general outcomes. This trend of digital health solutions is expected to make inroads into assuring access to the most remote or less-privileged areas of patient populations.
Companies are sinking money into R&D to introduce safer and more effective drugs into the market. Recent partnerships, such as between the NIH & multi-national pharmaceutical companies are developing vaccines for the treatment and management of valley fever, which signifies growth in the market commitment toward therapeutic advancements. A preventive vaccine would likely alter the landscape of treatments and, by reducing infection rates, would decrease the ultimate burden on health systems in endemic areas. This vaccine would constitute a breakthrough in the first preventive approach that could contribute to long-term public health goals while potentially reducing demand for antifungal therapies.
- In June 2021: Through the new market access to an emerging market, the liposomal amphotericin B market was successfully launched by Gilead Sciences Inc. had availed a liposomal Amphotericin B formulation that was safer than standard treatment regimen in addressing deadly fungi in so-called, “resource-limited settings.”
- In April 2020, Combination Therapy, Azoles, and Polyenes opened up new Possibilities according to the Journal of Antimicrobial Therapy (JAT). Strombol was identified as working in cases of resistant coccidioidomycosis through the administration of the azole-polyene combination therapy, making it a new possible treatment for those who do not respond to single-drug treatments.
Coccidioidomycosis Drugs Industry News:
- March 2023: New Formulation of Fluconazole Clears FDA for Expanded Use FDA. The FDA cleared the use of fluconazole’s extended-release formulation for weekly administration, thus optimizing treatment in chronic cases of the disease.
- October 2022: To build upon the study, NIH embarked on a partnership to advance the development of a vaccine for coccidioidomycosis in populations at risk in endemic regions. This would to a large extent help in the prevention of the disease from occurring in the first instance.
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More Valuable Insights on Offer
Fact.MR, in its new offering, presents an unbiased analysis of the global coccidioidomycosis drugs market, presenting historical data for 2019 to 2023 and forecast statistics for 2024 to 2034.
The study reveals essential insights on the basis of drug class (azole antifungals, polyenes, echinocandins, and combination therapy), route of administration (oral and intravenous), patient demographics (adults, pediatric, and immunocompromised patients), disease severity (acute coccidioidomycosis, chronic coccidioidomycosis, and disseminated coccidioidomycosis), by distribution channel (hospital pharmacies, and retail pharmacies, and online pharmacies) across major regions of the world (North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and Pacific, Middle East & Africa).
Checkout More Related Studies Published by Fact.MR Research:
Amoxicillin Drugs Market By Infection Type (Skin Infections, ENT (Ear, Nose & Throat) Infections, Stomach Infections), By Route of Administration (Oral, Intravenous), By Form (Tablets, Capsule, Suspensions), By Distribution Channels – Global Market Insights 2018 to 2028
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The global oncology small molecule drugs market has reached a valuation of US$ 79 billion in 2022 and is forecasted to expand at a CAGR of 5.5% to climb to a market size of US$ 135.4 billion by 2032.
In FY 2022, the Anticoagulant Reversal Drugs market reached a valuation of US$ 989.0 Million and is likely to register a Y-o-Y growth rate of 13.0% in 2023, closing at US$ 1,137.35 Million. Furthermore, across the 2022-2032 period of assessment, growth is expected to accelerate at a whopping 15.0% CAGR, reaching US$ 4,601.22 Million.
The global antibacterial drugs market, the market is projected to expand at a CAGR of 2.6% over the forecast period (2021-2031), and reach a valuation of over US$ 62 Bn by 2031-end, and surpassing US$ 51 Bn by 2025. As of the next half-a-decade, the market is anticipated to register a CAGR of 1.5%. Demand for β-lactams will be the highest, clocking a CAGR of 2% through 2031.
About Us:
Fact.MR is a distinguished market research company renowned for its comprehensive market reports and invaluable business insights. As a prominent player in business intelligence, we deliver deep analysis, uncovering market trends, growth paths, and competitive landscapes. Renowned for its commitment to accuracy and reliability, we empower businesses with crucial data and strategic recommendations, facilitating informed decision-making and enhancing market positioning. With its unwavering dedication to providing reliable market intelligence, FACT.MR continues to assist companies in navigating dynamic market challenges with confidence and achieving long-term success. With a global presence and a team of experienced analysts, FACT.MR ensures its clients receive actionable insights to capitalize on emerging opportunities and stay ahead in the competitive landscape.
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History says small caps should shine until the US dollar 'wrecking ball' arrives
Listen and subscribe to Stocks in Translation on Apple Podcasts, Spotify, or wherever you find your favorite podcasts.
Small-cap stocks have been on fire since the election, with the Russell 2000 (^RUT) handily beating its large-cap cousin, the S&P 500 (^GSPC).
And while small-cap investors have been burned by a series of ill-fated rallies in this “weird” bull market, big changes are underway for reasons that are both backward- and forward-looking.
Steve Sosnick, chief strategist at Interactive Brokers, pointed to surging US interest rates as a big driver of small caps’ chronic underperformance over the past two years, which is unlike most of the bull markets this century.
“Small caps don’t like higher rates because many of [them are] money-losing stocks, which means they have to be able to borrow money to stay afloat,” he said on a recent episode of Yahoo Finance’s Stocks in Translation (see video above or listen below). “They prefer lower rates.”
But history might be about to work in favor of small caps when it comes to seasonality — the annual, semi-predictable vicissitudes of the market.
“Seasonally speaking, small caps are set up for their annual year-end rally into [the first quarter],” Jeff Hirsch, editor in chief of the Stock Trader’s Almanac, wrote.
Five decades ago, his father, Yale Hirsch, first noticed small caps had a tendency to lead from mid-December to mid-March. He named this phenomenon the “January effect” for the month that tends to see the greatest outperformance and gains.
“In a typical year the smaller fry stay on the sidelines while the big boys are on the field,” Jeff Hirsch wrote. “Then, around early November, small stocks begin to wake up, and in mid-December, they take off.”
Investors are also weighing ideas from the incoming Trump administration that will shape the fortunes of small caps.
Tariffs and a tougher immigration policy could raise the cost of goods (and services, in some cases). And if companies cannot pass these higher costs on to consumers, margins and profitability will be pressured, squeezing small-cap companies that are already walking a tightrope.
Meanwhile, the potential for deregulation and Cabinet-level leadership changes likely work in favor of smaller companies. “Whoever would replace [Lina Khan at the Federal Trade Commission] would likely be more lax about [mergers],” Sosnick said, adding, “Small-cap stocks are more likely to be taken over.”
Trump’s “America First” approach could also help domestic businesses, which includes most small companies. “Protectionism probably helps these companies more than most,” Sosnick said.
Nanocapsules Market for Cosmetics Projected to Reach USD 2.4 Billion by 2034, Driven by Innovation in Therapeutic and Nutritional Applications | TMR
Wilmington, Delaware, Transparency Market Research Inc., Dec. 04, 2024 (GLOBE NEWSWIRE) — Nanotechnology Driving Evolution in the Cosmetics Industry
The global nanocapsules market for cosmetics (mercado de nanocápsulas para cosméticos), valued at US$ 1.3 billion in 2023, is forecasted to achieve a CAGR of 6.0% from 2024 to 2034, culminating in an estimated market value of US$ 2.4 billion by the end of the forecast period.
Nanocapsules, known for their precision in encapsulating active ingredients and enhancing their delivery, have become critical in transforming cosmetics into therapeutic solutions. These nanoscale carriers enable sustained release, targeted application, and improved stability of active compounds, making them essential in modern product formulations.
Once used solely for cleansing, protecting, and enhancing the appearance of skin and hair, cosmetics now embrace advanced functionalities such as addressing dermatological concerns and promoting overall skin health. This trend, coupled with the growing consumer preference for high-performance and science-backed products, is driving the adoption of nanotechnology in cosmetics.
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Analysis of Key Players
Prominent players in the nanocapsules market for cosmetics are capitalizing on nanotechnology’s potential to enhance product efficacy and consumer satisfaction. Companies such as BASF SE, L’Oréal Groupe, and DSM-Firmenich are at the forefront of this transformative movement.
Strategic Developments by Market Leaders:
- BASF SE: Innovating polymeric nanocapsules for premium skincare products, focusing on enhancing the stability and delivery of active ingredients.
- L’Oréal Groupe: Incorporating cutting-edge nanotechnology in their luxury skincare and makeup lines to improve product absorption and performance.
- DSM-Firmenich: Emphasizing sustainable nanocapsule production methods to cater to eco-conscious consumers and meet regulatory standards.
- Clariant and Gattefossé: Developing lipid-based nanocapsules for enhanced moisturizing and anti-inflammatory properties in skincare products.
Collaborations between cosmetics manufacturers and research institutes are further fueling innovation, while contract manufacturing organizations (CMOs) are scaling production to meet rising global demand.
Innovations Reshaping the Skincare and Beauty Landscape
Cosmetics manufacturers are increasingly focusing on leveraging nanocapsules to meet the demands of consumers who prioritize efficacy, safety, and sustainability. Key areas of innovation include:
- Anti-Aging Products: Nanocapsules enable the effective delivery of retinoids, peptides, and antioxidants deep into the skin, ensuring prolonged activity and visible results.
- Moisturizers and Serums: Nano-encapsulation of hydrating agents ensures enhanced absorption and sustained hydration, addressing consumer needs for all-day skin care.
- Makeup and Haircare Products: Incorporating nanocapsules in formulations improves product longevity, texture, and functionality, enhancing the overall consumer experience.
These advancements not only cater to rising consumer expectations but also align with global trends favoring multifunctional and personalized cosmetics.
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Key Drivers and Trends
- Growing Demand for Therapeutic Skincare Products
Consumers increasingly view cosmetics as a means to maintain and enhance skin health. Nanocapsules, with their ability to deliver bioactive ingredients precisely where needed, are vital in addressing this trend. - Shift Toward Sustainability
Environmental concerns are driving manufacturers to adopt bio-based and biodegradable materials for nanocapsules, ensuring eco-friendliness without compromising on performance. - Personalized Beauty
With rising consumer interest in tailor-made products, nanocapsules facilitate customized formulations by delivering specific ingredients suited to individual needs. - Increased Investment in R&D
Companies are allocating significant resources to nanotechnology research, aiming to stay ahead in the competitive cosmetics industry by offering groundbreaking products.
Market Segmentation
- By Material Type:
- Polymeric Nanocapsules
- Lipid Nanocapsules
- Protein-based Nanocapsules
- Carbohydrate-based Nanocapsules
- Inorganic Nanocapsules
- Others
- By Application:
- Skin Care
- Hair Care
- Makeup
- Fragrance
- Others
- By End-user:
- Personal Care Manufacturers
- Contract Manufacturing Organizations (CMOs)
- Research and Development Institutes
- Others
Regional Outlook
- North America: Leading in innovation and adoption of nanotechnology for high-performance cosmetics, with strong consumer demand for premium skincare and makeup products.
- Europe: A prominent market driven by stringent regulatory standards and a preference for sustainable, high-quality cosmetics.
- Asia Pacific: Fast-growing region owing to increasing disposable incomes, urbanization, and heightened awareness of skincare benefits.
- Latin America: Emerging as a potential market due to rising interest in multifunctional beauty products.
- Middle East & Africa: Gaining traction with growing access to international brands and increasing adoption of advanced cosmetic technologies.
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As the cosmetics industry (Mercado de Cosméticos) continues to evolve, nanocapsules are positioned as a game-changer, delivering enhanced functionality, targeted application, and prolonged efficacy. This aligns with growing consumer demand for innovative, sustainable, and science-backed products.
The nanocapsules market for cosmetics represents a lucrative opportunity for stakeholders willing to invest in cutting-edge nanotechnology and meet the ever-expanding expectations of consumers worldwide.
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