Johnson & Johnson is going to declare bankruptcy, to resolve the issue of possible claims. Lordstown Motors will get a ton of money in exchange for nothing and set an example for other scams.. And let's also look at the reports of companies, which were previously reviewed on the site.
Disclaimer: when we talk about, that something has grown, we mean a comparison with the same quarter a year earlier. Since all issuers are from the USA, then all results in dollars. When creating the material, sources were used, inaccessible to users from the Russian Federation. We hope, Do you know, what to do.
Disassemble the reports
Electronics manufacturer Garmin (NASDAQ: GRMN) revenue increased from 869,867 million to 1,326 billion. Growth was in all segments, and even in the aviation segment: with 126,14 to 180,832 million. The last fact can be considered a good sign for all companies in general., working in the field of aircraft construction. The company's profit has grown since 184,18 to 316,997 million, and all this is almost entirely due to the improvement of the operating business.
Industrial semiconductor business MKS Instruments (NASDAQ: MKSI) revenue increased by 38%. Given the shortage of semiconductors, it was logical to expect an increase in business margins. Actually, this is what happened: operating margin increased from 22,4 to 24,8%. In the semiconductor segment, revenue increased by 34%, and in developed markets - on 43%. Profit increased from 122 to 147 million.
Semiconductor supplier Cirrus Logic (NASDAQ: CRUS) reported an increase in revenue from 242,573 to 277,253 million. Company's gross margin, Really, fell from 52,6 to 50,5%. Last year she had one-time non-core income, but this year they are not, therefore, in the last quarter, profit fell from 18,209 to 17,209 million.
2U online education platform (NASDAQ: TWOU) increased revenue by 30%. In the segment of technologies and services for education, growth amounted to 26%, and the growth in the segment of alternative online learning was 36%. Losses decreased significantly: with 66,167 to 21,831 million.
Telecommunications REIT American Tower (NYSE: AMT) reported revenue growth on 20,2% and arrived at 66,8%. Truth, This growth was made possible in no small part by successful currency hedging this year.. As a result, the company increased its dividend, And, given the large spending by telcos on 5G, I would expect AMT revenue growth to continue.
Scientific discovery software maker Clarivate (NYSE: CLVT) reported on revenue growth by as much as 59% - but mainly through acquisitions of new businesses, without it, the growth would have been 5%. Losses increased by 224,9% - to 82,2 million.
At the Tradeweb Markets e-bond trading platform (NASDAQ: TW) revenue increased from 160,84 to 212,1 million. Growth was recorded in all segments, but the most significant - in the segment of transaction fees - at 28,15%. Profits have grown since 42,408 to 66,233 million.
Freight carrier Schneider National (NYSE: SNDR) delighted investors with news of revenue growth on 30% and arrived at 129% - and all this entirely by improving business efficiency. Growth took place in most business segments. The revenue growth was particularly noticeable in the intermodal transport segment - with 219 to 274 million — and logistics: with 230,9 to 430,7 million. But in the segment of equipment leasing and insurance there was a decrease: with 89,8 to 88,5 million.
IT Service Provider NetScout Systems (NASDAQ: NTCT) reported an increase in revenue from 183,815 to 190,272 million. Remarkably, that sales of the company's products increased, but sales of services fell. Losses decreased from 17,42 to 11,341 million.
Booz Allen Hamilton Consulting Business (NYSE: BAH) increased revenue by 1,7%, but the profit fell by 28,8%.
Saving the drowning is the work of the rescuers themselves
Remember the history of the dishonor of startup Lordstown Motors? She recently received an unexpected development. Компания Yorkville Advisors, providing financial planning services, entered into an agreement with Lordstown to purchase shares of the company on 400 million dollars within three years, and at the request of Lordstown herself. Probably, Yorkville will become an intermediary here and will resell these shares to end buyers, without spending your own money. Lordstown this deal will extend its inglorious existence and, may be, even live to sell their pickups.
Deal format not very inspiring: usually companies turn to investment banks for such operations. That fact, that Lordstown chose a company from outside, talks about, that Lordstown foresees possible troubles, related to the sale of its shares, for investors.
But if you look at it in a wider context, this is great news for all companies, working in the field of electric cars, as more or less successful like Tesla, who recently brought her car business to profitability, and generally not leading operating activities like QuantumScape.
That fact, that inferior and falling apart before our eyes, Lordstown was able to access big money without even being in debt at a huge percentage, but in fact in the form of a share in the enterprise, talks about, what to all, what about electric cars, in the financial world they treat with inappropriate reverence and are ready to save even an outright scam. May be, this is the attitude of the ruling circles - and this has an impact on decision-making already in the financial sector. How it works, we talked about ESG in a longread.
The best analogue of this, I see the history of the infrastructure development of the United States in 19 century. Canals and railroads in general were a very risky investment., Yes, and stretched for a very long time. Therefore, investor money was lured there with promises of high profitability.. Well, certainly, as a result there were many bubbles and defaults. By the way, aj 8 American states went through a default in the 1840s as a result of such projects. As a result, everyone forgot about bankruptcy, but the infrastructure has remained and has been regularly serving America for many, many years.
It's the same with electric cars.: for the industry create an image of "coolness" and "promising", in order to attract money from greedy and not very smart investors there and already at the expense of this to move forward scientific and technological progress. If you let Lordstown die, then this can be regarded by many investors as a "bell" and a reason to take their money out of many similar enterprises. Therefore, they decided to save the company. The example of Lordstown can be considered at least inspiring for equally troubled startups like Nikola.. May be, and a miraculous salvation awaits them, contrary to all economic logic.
Johnson & Johnson can get out of debt
J&J is not only a corporate giant, but also a defendant in a number of lawsuits, including asbestos. According to this lawsuit, the company was obliged to pay 2,12 billion dollars 22 victims — and there are about such victims 30 thousand, and their number may grow. From this situation J&J plans to come out, using the scheme, known as the "Texas Two-Mover", - free translation of "Texas two-step".
The essence of the scheme is as follows: J&J will be divided into two companies - one will have everything, what is associated with asbestos, and in the other - everything else. "Asbestos" company will file for bankruptcy and go into oblivion along with all future claims, a J&J will continue to exist, trading on the stock exchange.
It all sounds like a fraudulent scheme., but under Texas law it is indeed possible. Truth, you won't be able to get out without loss.: into "asbestos" J&J will have to invest substantial money, in the region of several billion dollars. Therefore, a “two-move” will mean large monetary losses in the short term.. May be, the company will even have to cut dividends. But in the long run it, certainly, will benefit her, since it will significantly limit the financial damage from new lawsuits in this case.
However, the company has not yet completed this maneuver, and maybe, the court won't let her do it. But still, the shareholders of the company should keep this information in mind..
