In today’s briefing:
- A/H Premium Tracker (To 9 May 2025): AH Premia Fall Small; Spread Torsion Provides Continued Alpha
- [Japan M&A] Bloomberg Reports Bain MBO on Nissin (9066) May Come Monday – The Implied Price Is Light
- PACCAR: Tariff Management Strategy to Maintain Stability & Upsurge Revenue!
- United Parcel Service (UPS): Recent Shift to Robotics & Automation Driving Our Bullishness!
- Woodward Misses a Beat But Bets Big on Naval Dominance With MicroNet Contracts!
- Honeywell’s $500M Tariff Hit? No Problem—Stock Jumps as Split Plan Gains Steam!
- Xylem Looking To Supercharge Growth With Targeted Acquisitions—Is The Vacom Deal Just The Start?
- NV5 Global on the Radar: Why Acuren and Others Are Eyeing This Engineering Giant
A/H Premium Tracker (To 9 May 2025): AH Premia Fall Small; Spread Torsion Provides Continued Alpha
- AH spreads are basically flat on the shortened week. AH premia rose in Pharma and Tech, fell in Industrials, Finance, and Banks.
- All eyes will be on what happens in Geneva. I personally don’t expect much.
- The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.
[Japan M&A] Bloomberg Reports Bain MBO on Nissin (9066) May Come Monday – The Implied Price Is Light
- Last year, Nissin Corp (9066 JP) started race-walking the good governance walk. The day they released earnings they announced crossholding sales and an overnight 23.61% ToSTNeT-3 Buyback (executed successfully).
- They also expected 19% Net Income Growth (to go with accretion), and in November, nearly doubled their dividend on new payout policy (minimum 4% DOE).
- Now, Bloomberg reports they are considering going private via a Bain MBO at ¥100bn+ (or a 30% premium).
PACCAR: Tariff Management Strategy to Maintain Stability & Upsurge Revenue!
- PACCAR Inc.’s recent earnings for the first quarter of 2025 presented a nuanced view of the company’s financial performance and strategic positioning amid complex global economic conditions.
- The company reported revenues of $7.4 billion and an adjusted net income of $770 million, indicating solid financial health.
- PACCAR Parts achieved record quarterly revenues of $1.7 billion, with pretax income of $427 million, a testament to their successful expansion and market demand for their products.
United Parcel Service (UPS): Recent Shift to Robotics & Automation Driving Our Bullishness!
- United Parcel Service, Inc. (UPS) reported its first-quarter 2025 financial results amidst a complex global trade landscape and strategic shifts in its business model.
- The company’s consolidated revenue for the quarter stood at $21.5 billion, a slight decrease of 0.7% from the previous year, aligning with its forecasts.
- Meanwhile, operating profit rose by 0.9% to $1.8 billion, reflected in an operating margin improvement to 8.2%.
Woodward Misses a Beat But Bets Big on Naval Dominance With MicroNet Contracts!
- Woodward, Inc. delivered a promising performance in the second quarter of fiscal 2025, with net sales rising by 6% year-over-year and adjusted earnings per share increasing by 4%, reflecting steady growth despite challenges, notably from decreased volumes in China’s on-highway market.
- Excluding the China on-highway impacts, the company posted a 12% increase in revenue and a significant 22% rise in operating earnings, showcasing resilience and efficiency in a challenging global environment.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Honeywell’s $500M Tariff Hit? No Problem—Stock Jumps as Split Plan Gains Steam!
- Honeywell International Inc. delivered a strong start to fiscal 2025, reporting first-quarter results that exceeded Wall Street expectations and raised guidance despite a complex macroeconomic backdrop.
- The company posted adjusted earnings per share of $2.51 on revenue of $9.8 billion, surpassing analyst estimates of $2.21 EPS on $9.6 billion in revenue.
- This performance also marked a year-over-year improvement from $2.25 EPS on $9.1 billion in sales.
Xylem Looking To Supercharge Growth With Targeted Acquisitions—Is The Vacom Deal Just The Start?
- Xylem Inc. closed the first quarter of 2025 with a performance that surpassed expectations and reaffirmed their guidance for the year.
- The company reported a robust revenue increase across all segments, contributing to a 120 basis point rise in EBITDA margin and a double-digit growth in earnings per share (EPS), which hit $1.03, outpacing the guidance midpoint by $0.08.
- Maintaining a backlog of $5.1 billion, Xylem showcased resilience in demand with a book-to-bill ratio exceeding one, although orders slightly dipped due to challenging comparisons in key segments.
NV5 Global on the Radar: Why Acuren and Others Are Eyeing This Engineering Giant
- NV5 Global, Inc.’s fiscal first quarter 2025 financial results highlight a mixture of strength and challenges.
- The company’s stated focus on providing non-discretionary services in essential sectors, such as infrastructure and utilities, serves as a hedge against economic volatility and supply chain issues.
- In this quarter, NV5 reported a 10% year-over-year increase in gross revenues, reaching $234 million, and a 10% increase in gross profit to $123.2 million.
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