Latest news with #406
Yahoo
2 days ago
- Business
- Yahoo
Why Spotify's Latest Results Look Worse Than They Are
Spotify Technology (NYSE:SPOT) saw its stock drop sharply on Tuesday after it released its second-quarter 2025 results. Despite strong user growth, the company missed earnings and revenue expectations and issued a cautious forecast, which shook investor confidence. Wall Street analysts rerated the stock after the quarterly results. JP Morgan analyst Doug Anmuth reiterated an Overweight rating on Spotify, suggesting continued confidence in the company's long-term prospects despite the near-term headwinds. Similarly, Goldman Sachs analyst Eric Sheridan maintained a Buy rating, underscoring his positive outlook with a reaffirmed price forecast of $ these endorsements from analysts indicate underlying belief in Spotify's business model, the immediate market reaction highlights the Street's sensitivity to financial performance deviations. JP Morgan's Perspective Anmuth noted Spotify is executing well on its medium-term financial targets of achieving 30-40% gross margins and 10%+ operating margin. The analyst credited product optimizations and effective marketing for driving solid growth in both users and premium subscribers, while Spotify continues to invest in its core offerings, including audiobooks, video podcasts, and music. However, second-quarter results and third-quarter guidance were mixed, he noted. Spotify delivered stronger-than-expected MAUs and premium subscriber growth, but foreign exchange (FX) headwinds and social charges weighed on revenue, gross margin, and operating income, Anmuth said. The analyst said the company posted a second-quarter gross margin of 31.5%, which was in line with both guidance and consensus. But he noted that its third-quarter gross margin forecast of 31.1% came in slightly below JPMorgan's 31.3% estimate, factoring in a ~40bps regulatory charge. Spotify guided for third-quarter FX-neutral revenue growth of 10%, signaling a ~500bps deceleration, though that figure may not reflect potential price increases, Anmuth noted. Notably, Spotify doubled its share buyback authorization to $2 billion. He will watch to see whether this marks a shift toward more consistent capital returns or remains opportunistic. In the second quarter, Spotify generated 700 million euros in free cash flow, beating JPMorgan's 641 million euros estimate, and delivered operating income of 406 million euros. This included 116 million euros in social charges but still fell short of management's 539 million euros forecast. JPMorgan and consensus estimates stood at 457 million euros and 490 million euros, respectively. On the user side, Spotify added 18 million MAUs in the second quarter, bringing the total to 696 million, above the 689 million guidance. Strong marketing campaigns and favorable competitive dynamics supported this growth across all regions. Premium subscribers rose to 276 million, 8 million net additions, beating the company's guidance of 273 million. Revenue for the quarter came in at 4.19 billion euros, up 15% FX-neutral year-over-year, but below both management's guidance of 4.3 billion euros and JPMorgan's 4.27 billion euros estimate. FX headwinds were much stronger than expected, around 440bps compared to the 170bps the company had projected. Premium revenue grew 16% FX-neutral, driven by a 12% increase in subscribers and a 3% rise in ARPU. Advertising revenue increased 5% FX-neutral, slightly below the 6% JPMorgan had expected. Spotify guided for third-quarter MAUs of 710 million and premium subscribers of 281 million, ahead of JPMorgan and consensus estimates. However, revenue guidance of 4.2 billion euros fell short of the 4.5 billion euros estimate, again reflecting significant FX pressure (~490bps) and indicating another ~500bps slowdown in FX-neutral revenue growth. Spotify expects a third-quarter gross margin of 31.1% and operating income of 485 million euros, below JPMorgan's forecasts of 31.3% and 524 million euros, respectively. The outlook embeds another 25 million euros of headwind from social charges. Overall, while user growth remains a strength, Anmuth closely watched for improvements in revenue momentum, cost structure, and long-term margin execution. Goldman Sachs' Take Sheridan expects a mixed to slightly negative market reaction to Spotify's second-quarter 2025 results. The analyst noted that the company reported revenue and operating profit below its prior guidance, while gross margin landed in line with expectations. He attributed the shortfall to an unfavorable revenue mix, higher-than-expected FX headwinds, and elevated social charges, driven in part by stock price appreciation. Despite these headwinds, Spotify continued to show strong user growth, signaling that external factors had more impact than weak business fundamentals, Sheridan noted. The analyst noted that this quarter's results reflect a continuation of Spotify's 2025 strategy, prioritizing long-term growth investments over margin expansion after a strong margin performance in 2024. He also highlighted Spotify's newly authorized $1 billion share buyback, on top of the remaining $896 million from a previous program. On the earnings call, Sheridan will watch for clarity on pricing strategy, gross margin outlook, and Spotify's ability to balance growth investments with operating efficiency. Price Action: SPOT stock is trading lower by 11.6% to $619.96 at last check Tuesday. Photo via Shutterstock Latest Ratings for SPOT Date Firm Action From To Mar 2022 Deutsche Bank Initiates Coverage On Hold Feb 2022 B of A Securities Maintains Buy Feb 2022 Wells Fargo Maintains Underweight View More Analyst Ratings for SPOT View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Why Spotify's Latest Results Look Worse Than They Are originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
TimesLIVE
3 days ago
- Automotive
- TimesLIVE
Audi cuts forecast over US tariffs and restructuring costs
German carmaker Volkswagen's premium brand Audi lowered its full-year financial guidance on Monday, citing the impact of higher US import tariffs and ongoing restructuring costs. The Ingolstadt-based company expects revenue of between €65bn (R1,355,406,000,000) and €70bn (R1,459,560,200,000), down from its previous forecast of €67.5bn (R1,407,537,000,000) to €72.5bn (R1,511,687,350,000). Audi also cut its operating margin forecast to 5% to 7%, compared to the earlier range of 7% to 9%. Audi said it is assessing the implications of the trade deal reached between the US and the EU on Sunday. The agreement set a 15% baseline US tariff on imports from the EU, including cars, which had previously faced customs duties of 27.5%. "Should the 15% tariff stay in place long-term, it would put Audi at a competitive disadvantage because its key peers have a more pronounced US production footprint," said Fabio Hoelscher, an analyst from Warburg Research. Audi is among the carmakers most exposed to US tariffs as it has no manufacturing facilities in the US. Though the deal provides clarity on the new tariff regime, enabling better operational and strategic planning, the 15% rate represents a structural shift from the 2.5% rate before US President Donald Trump took office, said Pal Skirta, equity analyst from Metzler Equities. That leaves German carmakers facing persistently higher US tariffs on their exports and long-term competitiveness challenges, he said. The Volkswagen Group also cut its full-year guidance on Friday after taking a $1.5bn (R26,781,448,350) tariff hit in the first half of the year. Global carmakers have booked billions of losses and some issued profit warnings due to US import tariffs. The European industry is also facing stiffening competition from China and domestic regulations aimed at speeding up the electric-vehicle transition.
Winnipeg Free Press
27-06-2025
- Sport
- Winnipeg Free Press
Royals head into matchup against the Dodgers on losing streak
Los Angeles Dodgers (51-31, first in the NL West) vs. Kansas City Royals (38-43, fourth in the AL Central) Kansas City, Missouri; Friday, 8:10 p.m. EDT PITCHING PROBABLES: Dodgers: Dustin May (4-5, 4.46 ERA, 1.32 WHIP, 72 strikeouts); Royals: Noah Cameron (2-3, 2.08 ERA, 0.96 WHIP, 34 strikeouts) BETMGM SPORTSBOOK LINE: Dodgers -159, Royals +134; over/under is 9 1/2 runs BOTTOM LINE: The Kansas City Royals will try to end a five-game losing streak when they play the Los Angeles Dodgers. Kansas City is 19-22 in home games and 38-43 overall. The Royals have the ninth-ranked team batting average in the AL at .243. Los Angeles has a 21-17 record in road games and a 51-31 record overall. The Dodgers have a 14-9 record in games decided by one run. Friday's game is the first meeting between these teams this season. TOP PERFORMERS: Vinnie Pasquantino leads the Royals with 11 home runs while slugging .406. Bobby Witt Jr. is 12 for 40 with five doubles, two home runs and three RBIs over the past 10 games. Shohei Ohtani has 12 doubles, six triples and 28 home runs while hitting .291 for the Dodgers. Andy Pages is 14 for 38 with three doubles and three home runs over the past 10 games. LAST 10 GAMES: Royals: 4-6, .195 batting average, 3.17 ERA, outscored by five runs Dodgers: 8-2, .270 batting average, 4.30 ERA, outscored opponents by 18 runs INJURIES: Royals: Cole Ragans: 15-Day IL (rotator cuff), Michael Massey: 10-Day IL (ankle), Hunter Harvey: 60-Day IL (shoulder), Alec Marsh: 60-Day IL (shoulder), James McArthur: 60-Day IL (elbow) Dodgers: Roki Sasaki: 60-Day IL (shoulder), Tony Gonsolin: 60-Day IL (elbow), Tyler Glasnow: 60-Day IL (shoulder), Evan Phillips: 60-Day IL (forearm), Blake Snell: 60-Day IL (shoulder), Blake Treinen: 60-Day IL (forearm), Edgardo Henriquez: 60-Day IL (foot), Kyle Hurt: 60-Day IL (elbow), Michael Grove: 60-Day IL (shoulder), Brusdar Graterol: 60-Day IL (shoulder), River Ryan: 60-Day IL (elbow), Gavin Stone: 60-Day IL (shoulder) ___ The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.
The Citizen
05-06-2025
- Entertainment
- The Citizen
Event organiser demand over R80K refund after Pearl Thusi no-show
Pearl Thusi said she was unable to attend the 'Weekend in the East' festival, where she was scheduled to appear, due to 'intense and unforeseen circumstances'. Namibian event organiser Ludgerus Amushila is reportedly demanding a full refund of N$86,406 (R86,406) from Pearl Thusi's management, Africa Creative Agency (ACA). This comes after Pearl failed to attend the Weekend in the East festival last week. The event was held at AM Ludgerus Boutique Estate in Rundu, Namibia, on Saturday, 31 May. According to The Namibian, Amushila stated that the refund amount includes a N$40,000 booking fee deposit, N$19,346 for flight tickets, N$8,360 for visas, and N$18,700 for vehicle rental — a total amount that was spent specifically on Pearl's participation. Amushila told the publication that all communication and transactions were handled through ACA, not directly with Pearl. 'They confirmed the booking, received payment, and arranged logistics. 'Now that there's a breach, they're passing us on to a lawyer we were never introduced to during the process.' The Citizen has reached out to Africa Creative Agency for comment, but no response had been received at the time of publication. This article will be updated when the agency responds. Meanwhile, The Namibian reported that ACA's Yvette Gayle said the agency is not liable to pay the refund. 'As a talent agency acting solely in a representative capacity, we are not a party to our clients' contractual obligations nor guarantors of their performance… 'Our role is limited to facilitating bookings, negotiating terms, and collecting payments on behalf of our clients.' ALSO READ: WATCH: Pearl Thusi vacays with her daughter in Mozambique Pearl Thusi apologised ahead of the event Prior to the event, Pearl issued a public apology, announcing that she would not be able to attend due to intense and unforeseen circumstances. 'I was really, really looking forward to coming through to Namibia. A lot of people know how much I love travelling across the continent and spending time with different people from our beautiful Africa. Unfortunately, due to intense and unforeseen circumstances, I won't be able to attend,' she said in a video. FYA cc Pearl Thusi..🙏🏾 — Ab Pro (@AbAmushila) May 30, 2025 NOW READ: 'I'm not gonna lie, this is rocking me': Prince Kaybee opens up about health battle
Yahoo
15-05-2025
- Business
- Yahoo
Shree Cement Ltd (BOM:500387) Q4 2025 Earnings Call Highlights: Strong Growth in Sales and ...
Total Sales Volume: Increased to 9.84 million tonnes, up 13% from 8.67 million tonnes sequentially. Average Valuation per Tonne: Improved by 5% to INR4,768 from INR4,554 sequentially. EBITDA: INR1,383 crores, representing a growth of 47%. EBITDA per Tonne: Increased by 29% to INR1,406 from INR1,088 sequentially. Adjusted EBITDA per Tonne: INR1,437, accounting for a one-off item of INR30.66 crores. Green Energy Share: 60.2% of total energy consumption in Q4 FY25. Green Power Generation Capacity: 582 megawatts, up 21% from 480 megawatts at the beginning of FY24-25. Installed Cement Capacity: Increased to 62.8 million tonnes in India. Premium Product Sales Share: Increased from 11.9% in Q4 2024 to 15.6% in Q4 FY25. Additional Provision for ECL: INR24 crores for legal notices issued. Warning! GuruFocus has detected 8 Warning Signs with BOM:500387. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Shree Cement Ltd (BOM:500387) reported a 13% increase in total India sales volume, reaching 9.84 million tonnes in Q4 FY25. The company's EBITDA for the quarter grew by 47%, with EBITDA per tonne increasing by 29% to INR1,406. The company achieved a significant milestone with 60.2% of its energy consumption coming from green energy sources, one of the highest in the industry. Shree Cement Ltd (BOM:500387) received an ESG rating of Care Edge ESG 1 with a score of 70.8%, highlighting its leadership in managing ESG risks. The company launched several premium products, increasing the share of premium product sales from 11.9% to 15.6% year-over-year. Despite the positive results, the company faces challenges with capacity utilization, which remains around 65%, indicating underutilization of its installed capacity. The company incurred a one-off cost of INR30.66 crores due to a voluntary separation scheme, impacting its financials. Shree Cement Ltd (BOM:500387) made an additional provision of INR24 crores for expected credit losses, reflecting a more conservative accounting approach. The company's strategy to focus on profitability over volume growth may limit its market share expansion in a competitive industry. There are concerns about the impact of new capacity additions on pricing and market dynamics, especially with the industry's supply overhang. Q: What is the outlook for volume growth in FY26, given the recent capacity expansions? A: Ashok Bhandari, Senior Adviser, explained that the strategy is to focus on profitability rather than volume. The company expects a volume growth of 6.5% to 7.5% for FY26, with a target of reaching 39 million tonnes. The focus will remain on balancing volume and price to maximize profitability. Q: Can you elaborate on the branding strategy and its impact on pricing? A: Neeraj Akhoury, Managing Director, stated that the company is focusing on improving brand equity through premium products and technical work in the field. The strategy is consistent across regions, aiming to enhance brand strength and improve pricing. Q: What are the plans for capacity expansion, particularly in North India? A: Neeraj Akhoury mentioned that the company is targeting Central and East UP markets with the new Ita plant. The North plants will cater to various markets, including Jammu and Kashmir, Gujarat, and West MP. The company is also exploring opportunities in Jaisalmer for future expansion. Q: How does the company plan to manage the trade-off between volume and pricing in a supply overhang scenario? A: Ashok Bhandari emphasized that the company aims to be the most profitable rather than the largest volume player. The focus is on maximizing cash profit and net profit through a strategic mix of volume and pricing, considering market conditions and competition. Q: What is the status of the RMC business, and what are the future plans? A: Neeraj Akhoury shared that the RMC division is relatively new, with about 15 plants currently operational. The company plans to expand rapidly, aiming for at least 50 RMC units. Some plants are already EBITDA positive, particularly in Mumbai and Hyderabad. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
