Latest news with #costmanagement
Yahoo
a day ago
- Business
- Yahoo
UPS's lead over FedEx in market value shrinks to narrowest ever
(Bloomberg) — United Parcel Service Inc.'s (UPS) once-towering lead over rival FedEx Corp. in market valuation has shrunk to the smallest ever after a 29% plunge in UPS shares this year. The Atlanta-based company is struggling to manage high costs and improve volume amid uncertain trade policies. It did not provide revenue or operating profit guidance for 2025 when it reported second-quarter earnings Tuesday. UPS' market capitalization was $21.2 billion higher than FedEx after a sharp selloff following the results that has extended into Wednesday trading, which is the smallest difference since UPS went public in 1999. At its widest level in 2022, the gap was about $135 billion — higher than the combined value of both companies today. Shares of both parcel couriers have been volatile in recent years as the rise of online commerce upends the delivery business, and US President Donald Trump's trade war has ratcheted up the pressure on a sector that's closely linked to international commerce. Additionally, as UPS scales back its low-margin business with Inc., the courier has set out to reduce costs by cutting jobs and closing facilities. Management said on its earnings call that workers have been leaving at a lower rate than expected, raising concerns among analysts about the company's future performance. UPS' quarterly results were a modest miss based on lowered expectations, 'but the bigger concern is the extreme lack of visibility' for the rest of the year, Morgan Stanley analyst Ravi Shanker wrote in a Tuesday note. ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
11-07-2025
- Business
- Yahoo
Avantor (AVTR) Q1 2025 Results Reflects Focus on Cost Management
Avantor, Inc. (NYSE:AVTR) is one of the The company's Q1 2025 results exhibited disciplined execution as well as a continued focus on cost management amidst the dynamic macro environment. Even though the company's earnings and margin performance remained in line with its plan, the Lab Solutions revenue was impacted by lower demand, mainly in its Education and Government end market, after the policy changes. Furthermore, Avantor, Inc. (NYSE:AVTR) has expanded its cost transformation initiative and expects to deliver $400 million in gross run-rate savings exiting 2027. A team of scientists working together to develop a new lab product or process. While Avantor, Inc. (NYSE:AVTR)'s cost transformation continues to drive conversion and margins, its Bioscience production segment offers mission-critical materials and solutions. With respect to the Lab business, the company continues to make immediate and significant changes to fuel growth. The company's delivery excellence initiative remains focused on ensuring greater supply chain efficiency and resilience. Next, Avantor, Inc. (NYSE:AVTR) has been accelerating digital enhancements to its platform, which includes the rollout of a new AI-enabled e-commerce platform, in order to further streamline customer experience. Another step is to strategically optimize the approach to pricing by leveraging the integration of digital technologies. Broyhill Asset Management, an investment advisor, released its Q1 2025 investor letter. Here is what the fund said: 'Shares of Avantor, Inc. (NYSE:AVTR) declined 23% in the first quarter, as policy uncertainty around budget cuts for academic institutions and pharmaceutical companies weighed on the life sciences sector. With shares trading at valuations not previously seen in its history as a public company, we believe this is a dramatic overreaction as the market is essentially discounting a halting or meaningful slowdown in scientific progress at these levels. It is rare for companies benefiting from such strong secular growth trends to be valued at trough multiples on trough earnings, but that's exactly how we view AVTR today, and exactly why we've capitalized on recent weakness to continue building our position.' While we acknowledge the potential of AVTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey.
Bloomberg
11-07-2025
- Business
- Bloomberg
Emirates Employees Get Smaller Salary Bump After Record Year
Emirates Group is giving more modest pay increases to employees this year, suggesting the owner of the world's largest international airline is keeping a closer eye on costs. Employees across its businesses in Dubai, including Emirates' namesake carrier and the Dnata airport services unit, were granted a 3% increase to their basic salaries, one percentage point less than what was handed out last year, according to documents seen by Bloomberg News.
Yahoo
10-07-2025
- Business
- Yahoo
Avantor (AVTR) Q1 2025 Results Reflects Focus on Cost Management
Avantor, Inc. (NYSE:AVTR) is one of the The company's Q1 2025 results exhibited disciplined execution as well as a continued focus on cost management amidst the dynamic macro environment. Even though the company's earnings and margin performance remained in line with its plan, the Lab Solutions revenue was impacted by lower demand, mainly in its Education and Government end market, after the policy changes. Furthermore, Avantor, Inc. (NYSE:AVTR) has expanded its cost transformation initiative and expects to deliver $400 million in gross run-rate savings exiting 2027. A team of scientists working together to develop a new lab product or process. While Avantor, Inc. (NYSE:AVTR)'s cost transformation continues to drive conversion and margins, its Bioscience production segment offers mission-critical materials and solutions. With respect to the Lab business, the company continues to make immediate and significant changes to fuel growth. The company's delivery excellence initiative remains focused on ensuring greater supply chain efficiency and resilience. Next, Avantor, Inc. (NYSE:AVTR) has been accelerating digital enhancements to its platform, which includes the rollout of a new AI-enabled e-commerce platform, in order to further streamline customer experience. Another step is to strategically optimize the approach to pricing by leveraging the integration of digital technologies. Broyhill Asset Management, an investment advisor, released its Q1 2025 investor letter. Here is what the fund said: 'Shares of Avantor, Inc. (NYSE:AVTR) declined 23% in the first quarter, as policy uncertainty around budget cuts for academic institutions and pharmaceutical companies weighed on the life sciences sector. With shares trading at valuations not previously seen in its history as a public company, we believe this is a dramatic overreaction as the market is essentially discounting a halting or meaningful slowdown in scientific progress at these levels. It is rare for companies benefiting from such strong secular growth trends to be valued at trough multiples on trough earnings, but that's exactly how we view AVTR today, and exactly why we've capitalized on recent weakness to continue building our position.' While we acknowledge the potential of AVTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. 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
Yahoo
09-07-2025
- Business
- Yahoo
Educational Development Corp (EDUC) Q1 2026 Earnings Call Highlights: Navigating Challenges ...
Release Date: July 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Educational Development Corp (NASDAQ:EDUC) successfully reduced its loss before taxes from $1.7 million last year to $1.4 million this quarter, indicating effective cost management. The company has launched a guest checkout feature, improving the ease of doing business for customers and brand partners. EDUC has formed a successful partnership with Ticket to Dream, distributing thousands of books to foster children and families. The company has initiated strategic sales events to generate cash and reduce bank borrowings, meeting lender requirements. EDUC has a Plan B in place for the sale of its Hilty complex, ensuring financial stability even if the primary sale plan does not materialize. Net revenues have significantly decreased from $10 million last year to $7.1 million this quarter, reflecting a challenging sales environment. The average active brand partners have declined from 13,400 to 7,700, indicating a reduction in sales force engagement. The company is experiencing a challenging period for new consultant recruiting, impacting its direct sales industry performance. High inflation and reduced disposable income among families with small children are negatively affecting sales. The sale of the Hilty complex has been delayed, and its completion is crucial for the company's financial viability. Warning! GuruFocus has detected 4 Warning Signs with EDUC. Q: If the sale of the Hilty complex falls through, what is the board's contingency plan? Would you consider hiring an advisor to explore strategic alternatives for the business? A: Craig White, CEO: We have a viable Plan B that also gets us out of bank debt. Our intention is to execute either Plan A or Plan B by the end of September. Plan B involves other offers with quick close contingencies, which we've curated over the last six months. While Plan A is preferred, Plan B is a solid alternative. Q: Can you share more about the buyer group for the Hilty complex? A: Craig White, CEO: The buyer group is a real estate company that has reached out to potential partial investors. I will feel more comfortable sharing details after the initial due diligence period ends on July 28th, when half of their deposit goes hard. Q: Has the board considered implementing minimum ownership requirements to align director incentives with long-term shareholder value? A: Craig White, CEO: We have been focused on growing the business back, but board makeup and governance are on my mind. We are transitioning to make the board more aligned with our current goals, including giving board members small amounts of stock to better align incentives. Q: Why pursue new titles when there is already significant inventory? A: Craig White, CEO: New titles energize our salesforce. Our inventory is still selling, and the new titles are part of a conservative approach that won't significantly increase inventory levels. This strategy signals to our salesforce that we are a viable business with new products. Q: What is the target net revenue run rate and average brand partners for normalization? A: Craig White, CEO: It will take time to rebuild, but we are putting pieces in place, such as IT improvements and new projects to excite the field. We have conservative forecasts for low, medium, and high expectations, and it will be a gradual build. 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
