A secret Cold War-era deal lets British jets shadow Russian bombers when they fly near a vital Atlantic chokepoint

Since Russia seized Crimea in 2014, British fighters have scrambled several times to intercept Russian bombers off of Ireland's west coast. A Russian Tu-95 strategic bomber over the Kremlin in Moscow in May 2015.ALEXANDER NEMENOV/AFP via Getty Images Since the 1950s, Ireland has allowed British jets to intercept Russian aircraft near Irish airspace. Ireland's west coast overlooks North Atlantic waters that the Russians and NATO keep a close eye on. The deal allowing the intercepts has long been secret, and Irish lawmakers now want more details. If Russian bombers fly near Ireland, they may be intercepted by fighter jets — but not Irish ones.Under a secret agreement between the UK and the Republic of Ireland that dates back more than 70 years, Britain will defend Irish airspace from intrusions by Russian aircraft and other aerial threats.The deal has been amended by Irish leaders over the years, but it has also been kept secret due to Irish memories of British rule and tensions over Northern Ireland, which remained a part of the UK after Ireland was partitioned in 1921.The deal now faces rising backlash, however. An Irish senator filed a lawsuit last year arguing the deal is unconstitutional. The growing power of Sinn Fein — an Irish republican party historically opposed to British influence — could also affect the future of the agreement.On the other hand, rising tensions between the West and Russia could jeopardize Ireland's traditional neutrality and challenge its meager military, which is primarily oriented for UN peacekeeping missions.There is "growing alarm among the Irish public and its European governmental neighbors at Ireland's woefully neglected defense capabilities," Michael Mulqueen, a professor at Britain's University of Central Lancashire and an expert on Irish national security, told Insider.Irish Air Corps PC-9s fly by an Irish navy patrol vessel in August 2006.Irish Defense ForcesWith barely any warplanes and few anti-aircraft weapons, Ireland has little ability to defend its airspace, whether from Russian bombers, hijacked airliners, or even drug smugglers in private jets. According to the Irish Times, Ireland is probably more dependent on Britain for air defense now "than at any point since the first agreement in 1952."Since 2014, when Russia seized Crimea and set off a new period of tensions, British fighters have scrambled several times to intercept Russian bombers off Ireland's west coast. Russia also conducted live-fire naval exercises off the Irish coast in 2022, despite Irish protests.Ireland has also been lumped in to the Kremlin's threats to the UK: In 2022, Moscow threatened to annihilate the British Isles with a nuclear-induced tsunami, releasing an animated video that showed the bomb detonating off the coast of Northern Ireland.The ire over the deal reflects Britain and Ireland's contentious relationship. There are bitter memories on both sides but also a long history of exchange. Despite Ireland's neutrality in World War II, an estimated 80,000 of its citizens joined the British military, and its government allowed British anti-submarine aircraft to fly over Irish territory to hunt German U-boats.The current Anglo-Irish defense agreement is rooted in mutual practicality. Ireland occupies a strategic position on the UK's western flank and adjacent to the Greenland-Iceland-UK Gap, a vital maritime chokepoint that the British and other NATO militaries are keen to monitor.During the Cold War, British aerial protection spared a small nation — and a poor one in the 1950s — the need to fund expensive air defenses. Beefing those defenses up now would essentially mean starting from scratch.Irish soldiers test-fire RBS-70 short-range air-defense missiles in September 2019.SaabThe Irish military has a few short-range RBS-70 surface-to-air missiles that can reach 16,000 feet, backed by Giraffe search radars. When President Joe Biden visited Ireland in April, there were fears he would be vulnerable because the Giraffes weren't working.In 1998, the Irish Air Corps replaced its only jets — a handful of old French-made Fouga Magister trainers — with eight PC-9M Pilatus propeller-driven trainers that have "speed, height, and agility capabilities broadly equivalent with that of British Hurricanes and Spitfires of World War II," Mulqueen said.The PC-9M has a top speed of 368 mph and a maximum altitude of 25,000 feet and is armed with two .50-caliber machine guns, meaning it's unlikely to catch let alone shoot down a Russian Tu-160 bomber, which can reach speeds of Mach 1.6, or about 1,228 mph, and altitudes of 60,000 feet.A retired Air Corps pilot told the Irish Times that the PC-9M's effective altitude was only about 10,000 feet, making it "very capable of intercepting something slow-moving" like a Cessna but not much else.In 2022, an Irish government commission recommended purchasing 24 jet fighters, but with a 2022 defense budget of just $1.3 billion for a military of only 8,200 active-duty personnel that purchase doesn't seem likely.The issue is complicated by uncertainty about whether British fighters could legally bring down an aircraft in Irish airspace. Mulqueen said that official Irish and British statements suggest British pilots could intercept intruders but not actually shoot at them.A British Typhoon jet intercepts a Russian Tu-95 bomber off of northwest Scotland in March 2020.Royal Air Force"Consequently, actors seeking to attack the UK have a coherent rationale to devise a secondary list of high-value targets over Ireland, so that they can mitigate the risks of RAF interception over Irish airspace," Mulqueen told Insider.Sinn Fein — Ireland's main opposition party — has only said that it wants more information about the defense agreement before deciding whether to oppose it. Should Sinn Fein take power in the future, it would be responsible for Ireland's security, including its air defense.Ultimately, Ireland, an EU member-state, will have to decide whether to participate in European defense. Given the state of the Irish military, that could mean even more cooperation with the UK."It wasn't that long ago that our neighbor was oppressing us," defense correspondent Sean O'Riordan wrote in a recent opinion piece for the Irish Examiner. "Now it's our protector, because we took our eye off the ball and effectively surrendered our neutrality by penny-pinching on our own defense."Michael Peck is a defense writer whose work has appeared in Forbes, Defense News, Foreign Policy magazine, and other publications. He holds a master's in political science. Follow him on Twitter and LinkedIn.Read the original article on Business Insider.....»»

Category: topSource: businessinsider14 hr. 25 min. ago Related News

Countries Where America Has the Most Soldiers

The U.S. has an extensive global military network that by far is the world’s largest. The country operates about 750 bases in 80 countries abroad. About 60% of these facilities are larger than 10 acres or worth more than $10 million, and they typically house at least 200 military personnel. Smaller bases, known as “Lily […] The U.S. has an extensive global military network that by far is the world’s largest. The country operates about 750 bases in 80 countries abroad. About 60% of these facilities are larger than 10 acres or worth more than $10 million, and they typically house at least 200 military personnel. Smaller bases, known as “Lily Pads,” make up the rest. To find the countries where America has the most soldiers, 24/7 Wall St. reviewed Aljazeera’s report: Infographic: US military presence around the world. Countries, including one U.S. territory, are ranked by the number of troops, with data as of July 2021. Total bases per country also comes from the report. The number of troops in Iraq were adjusted to reflect more recent information. According to data from the Conflict Management and Peace Science Journal, the U.S. had about 173,000 troops deployed in 159 counties as of 2020. But most of these American active service members — about 160,000 of them — are located in 14 countries and Guam, an unincorporated Pacific island territory of the United States. (While the U.S. military is large, it is not the largest. This is the country with the largest military.) Interestingly, the two countries with the largest U.S. overseas military presences are the ones that initiated World War II: Germany and Japan. What began as U.S. military occupations of these two defeated Axis states in the years after the war has evolved into cooperative relationships between close military, political, and economic allies. The numbers of U.S. troops in any of these bases vary as active service members are regularly redeployed, but these estimates offer a snapshot of where the U.S. prioritizes its global security operations. For example, U.S. troops numbers have been edging downward in Germany but increasing in Italy, which is closer to the Middle East and North Africa. This reflects the shifting focus of the U.S.’s global security operations since the Sept. 11, 2001, terrorist attacks and the ongoing global war on terror. (This is the year the most americans died in war.) Of the top 15 largest U.S. overseas military presences, seven are located in countries of the North American Treaty Organization; four are in the Asia-Pacific region, including the unincorporated U.S. territory of Guam; three are in the Middle East; and one is located in the Caribbean: the Guantanamo Bay Naval Base in Cuba, America’s oldest overseas naval base. Here is where America has the most soldiers. Sponsored: Tips for Investing A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit......»»

Category: blogSource: 247wallst19 hr. 13 min. ago Related News

Ukrainian forces scattered around Bakhmut could retake the city after Wagner Group mercenaries evacuate and are replaced by regular Russian troops

With Wagner Group troops evacuating and being replaced by regular Russian troops, Ukraine could plan to retake Bakhmut, Western analysis said. A Ukrainian artillery unit fires toward Russian positions on the outskirts of Bakhmut on December 30, 2022.SAMEER AL-DOUMY/AFP via Getty Images Ukrainian forces around Bakhmut could retake the city after Wagner Group forces evacuate. The ISW suggests that Russian movement in the area is low, leaving openings for a Ukraine offensive. Ukrainian troops in Bakhmut said fighting regular Russian troops won't be as hard as Wagner forces. As Wagner Group troops evacuate Bakhmut, Ukrainian forces may have a chance to retake the war-torn city — but it's unclear if that will be Kyiv's priority as a long-awaited counteroffensive looms. Russia claimed victory over Bakhmut earlier this month after a long and costly battle for both sides of the war. Shortly after, Wagner Group boss Yevgeny Prigozhin announced he would be withdrawing his mercenaries from the city on June 1 after Russia claimed full control of the city. Regular Russian troops will replace Wagner's forces, Prigozhin said. That transition — coupled with notably low tempo and movement from Russian forces in the area — leaves an opening for Ukraine to potentially retake Bakhmut, according to an assessment from The Institute for the Study of War. The analysis, released May 28, said: "Ukrainian personnel in the Bakhmut area reportedly expressed optimism that the decreased tempo of Russian operations around Bakhmut may facilitate further limited and localized Ukrainian counterattacks."Those offensives, along with "ongoing relief" being provided to Ukraine's troops, could provide "Ukrainian forces in the area the initiative to launch a new round of operations around the city if they so choose," ISW stated.While Bakhmut may have been a symbolic win for Moscow, Ukrainian officials such as President Volodymyr Zelenskyy still assert that Kyiv's forces are active in the city limits. Now, they're saying those Ukrainian troops can continue to make gains around the city and stage a "semi-encirclement" to drive Russia out, according to The Washington Post.It's unclear if this plan would come as a part of Ukraine's counteroffensive or if it would be abandoned for other movements in eastern areas along the front lines that prove to be more strategically important to Kyiv. Nonetheless, the attrition-style fighting of Bakhmut has left Russian forces exhausted ahead of Ukraine's long-anticipated counteroffensive. Read the original article on Business Insider.....»»

Category: dealsSource: nyt20 hr. 41 min. ago Related News

The Saudi crown prince revealed his latest vision for Neom, the $1 trillion "utopian" megacity that critics fear will become a dystopian nightmare

In a new collection of pictures, Saudi Arabia presents the planned megacity of Neom as a vacation paradise. Experts have warned of a darker reality. This concept image shows the planned design of 'The Line,' a 'vertical skyscraper' from the planned futuristic Saudi Arabian city of Neom that cuts through the desert in the northwest of the country.NEOM Saudi Arabia unveiled new pictures of the Neom megacity planned by its ruler, Mohammed bin Salman. They highlight the landscapes surrounding the city, and present it as a vacation paradise.  But human-rights groups have concerns about the city's plans for mass surveillance. In a desert in the arid northwest of Saudi Arabia, plans for a trillion-dollar, futuristic megacity are beginning to take shape.Neom is the brainchild of Saudi Arabia's crown prince and de facto ruler, Mohammed bin Salman.In his bid to diversify Saudi Arabia's economy and reduce its reliance on fossil fuels, the crown prince aims to attract billions in investment to Neom, which he envisages as a tourism attraction and global hub for technology and innovation. In a new set of pictures released by Neom and Unsplash, the city is portrayed as a paradisaical adventure holiday resort. But activists are warning that that rights are being trampled as Saudi Arabia readies parts of the resort to be opened to visitors. Let's take a look at the latest images. Saudi Arabia is seeking to draw millions of tourists to NeomAn photograph released in May 2023 showing a desert canyon in Saudi Arabia where Neom is due to be builtGettyImages/Unsplash/NeomFor decades, Saudi Arabia was better known for its ultra-conservative interpretation of Islam and oil wealth than as a tourist destination. The kingdom already hosts millions of Muslims making the pilgrimage to Mecca every year, but was essentially closed to other visitors. It made a dramatic change in 2019, issuing its first tourist visas.Crown Prince Mohammed has ambitious plans to drive further change, and hopes to attract 100 million visitors to the kingdom each year.Neom is being billed as a core attraction, and is described on its website as the "world's most ambitious tourism project." The city will be built on 10,200 square miles of desertThis promotional photograph shows the Saudi Arabian desert where the city of Neom will be built.NEOM/GettyImages/UnsplashThe new images depict the unspoilt desert wilderness where the city will be built. Saudi Arabia has been keen to highlight to ecological credentials of the project as it seeks to pivot away from fossil fuels as part of its Vision 2030 plan. The city, planners say, will run entirely on renewable energy and 95% of the surrounding landscape and sea will be "protected for nature."  The coral reefs and hidden wrecks of the Red Sea are presented as among the exotic attractionsAn photograph showing a diver in the Red Sea, Saudi Arabia, near the site of the planned Neom megacityGettyImages/Unsplash/NeomTabuk Province, where Neom is being built, has the longest stretch of Red Sea coastline in Saudi Arabia. As well as Neom, luxury residences and eco resorts are being built on islands off the coast.The kingdom aims to attract scuba divers and yachters to the resorts.  "Go diving in Tabuk before the rest of the world discovers this dive area. You will be rewarded with crystal-clear, warm waters and pristine coral reefs few people have ever dived," said the diving news outlet Scubaverse in 2022.   The first part of Neom slated to be finished is Sindalah, an island due to include yacht marinas and luxury hotels. Officials say it will be opened to visitors from 2024.A concept image of the island of Sindalah, a planned yachting resort due to form part of the Neom project.NEOM"The destination will create a new season for superyachts, a dream alternative for yacht owners who want to spend the winter in an easily accessible location," Luca Dini, CEO of Luca Dini studio which designed the island resort, told Arab News.A new airport opened in the resort in 2019. But critics believe that the scale and ambition of the project mean it may never be fully realised, and ambitions for millions to live there in around a decade seem fanciful, Money Week reported. The images present the desert site as a place of mystery and wonderAn photograph showing a nighttime view of mountains in the region in northwest Saudi Arabia where planners say Neom will be built.GettyImages/Unsplash/NeomThe main planned residential area of Neom is "The Line," a 130-mile long building tower that cuts through the desert and is described by designers as a horizontal skyscraper.Residents and visitors are promised sweeping views of the surrounding landscape. Saudi Arabia says it'll be able to preserve vast swaths of the desert, and will even begin reintroducing vanished wildlife.   But the glossy prospectus doesn't tell the whole story, and activists are raising alarm about Saudi Arabia's human-rights record.A Saudi Arabia flag flies behind barbed wires at the backyard in the Saudi Arabian consulate in Istanbul on October 13, 2018Yasin AKGUL / AFP) (Photo by YASIN AKGUL/AFP via Getty ImagesSaudi Arabia in May sentenced three men to death from the Howeitat tribe, which traditionally lives on lands earmarked for Neom's development. The cause was that they refused to be evicted from the site, the UN said. "Despite being charged with terrorism, they were reportedly arrested for resisting forced evictions in the name of the Neom project and the construction of a 170km linear city called The Line," the UN experts said. The UN alleges that Saudi Arabian officials evicted the tribe from three villages in the area, and despite promises did not compensate them adequately. One man resisting eviction was killed by Saudi special forces, it said in May.And experts told Insider that recent deals with China hint at plans for the sweeping surveillance of Neom residentsSaudi security personnel monitor the hajj pilgrimage from a control room in Mina, near the holy city of Mecca, in October 2012.FAYEZ NURELDINE/AFP via Getty ImagesCrown Prince Mohammed has presented himself as a reformer, keen to open up the kingdom to investment and liberalize the ultra-conservative society.But critics say that this masks a brutal authoritarian streak, and point to the crown prince's persecution of critics, the war he has waged in Yemen, and the 2018 assassination of dissident Jamal Khashoggi (the crown prince has denied any involvement in the killing.)Activists are alarmed by recent deals between Saudi Arabia and Chinese tech giants, which they say could enable Saudi security services to harvest data from residents and surveil them.  Read the original article on Business Insider.....»»

Category: smallbizSource: nytMay 29th, 2023Related News

UK experts are teaching Ukrainians to make can-sized bombs that can bring down buildings, report says

As well as teaching Ukrainian soldiers how to build the bombs, British experts are bringing key components to build the bombs to Ukraine, according to CNN. Ukrainian soldiers in Bakhmut in December 2022.SAMEER AL-DOUMY/AFP via Getty Images British explosive experts are teaching Ukrainians how to build can-sized bombs by hand. Similar technology was reportedly used to bring down a building on Russian troops in Bakhmut. "If we have a high-priority target, we of course use this equipment against it," one fighter told CNN. Ukrainian soldiers fighting against Russia are reportedly being taught how to make powerful, can-sized bombs by British explosives experts.The weapons have been used to target individual Russian soldiers and bring down Russian-held buildings, according to CNN."If we have a high-priority target, we of course use this equipment against it," one anonymous Ukrainian soldier told the TV channel."This equipment is used to destroy the enemy," they added. "We use it to produce explosive devices we can use on the ground, on the battlefield, or in the air as munition for drones."CNN's Nic Robertson describes the bombs as a "secret weapon" in Ukraine's army. Similar technology was also used to bring down a building on dozens of Russian troops in Bakhmut, per CNN.Russia claimed it had captured the destroyed eastern city last week, but Ukrainian forces are believed to be planning a counter-offensive.As well as teaching Ukrainian soldiers how to build can-sized bombs, the British experts are bringing key components – including switches, microchips, and 3D printers – to Ukraine, according to CNN.It tends to be faster for Ukraine to get key supplies via experts coming into the country than through its NATO trading partners.Leaked files published last month showed that the UK had the highest number of special forces personnel operating in Ukraine, followed by Latvia, France, and the US.The UK has also supplied the Ukrainian army with long-range Storm Shadow cruise missiles, NATO-standard Challenger 2 battle tanks, and attack drones since Russia's invasion in February 2022.Read the original article on Business Insider.....»»

Category: smallbizSource: nytMay 29th, 2023Related News

We identified the 150 most important people at BlackRock. Explore our exclusive org chart.

BlackRock has been priming the next generation of management and making changes at the top. BlackRock CEO Larry FinkThos Robinson/Getty Images for The New York TimesInsider built an org chart showing the most senior executives at BlackRock.BlackRock has been priming the next generation of management and making changes at the top.Our org chart shows where executives said to be in the running to succeed Fink sit.BlackRock has made a number of top personnel changes and internal structural shifts in the past year at a time when it is also wrestling with who will take over from Larry Fink, its cofounder and chief executive.To provide a window into the current power structure, Insider has mapped out the roughly 150 most senior BlackRock executives.BlackRock is the largest asset manager in the world, overseeing $9.1 trillion. The New York firm is run by Fink, the only CEO BlackRock has had since he and seven partners, including president Rob Kapito, founded it in 1988.Fink is now 70, and the firm has been preparing for his and Kapito's retirements for years.Our org chart reflects recent changes to the company's structure. This month, the firm overhauled its alternative-investments business and made changes to the makeup of its Aladdin business, two core BlackRock offerings. Last year, BlackRock formed a new markets unit led by former human resources chief Manish Mehta and a new global client business led by Mark Wiedman.The chart also shows where influential, longtime decision-makers sit within the firm and who they oversee, including executives viewed by company insiders as possible Fink successors.Here is our exclusive org chart of the most powerful people at $9 trillion BlackRock.Do you have a story about BlackRock? Reach this reporter at, by encrypted email at, or at (646) 768-4711.Read the original article on Business Insider.....»»

Category: smallbizSource: nytMay 29th, 2023Related News

“The Price Of Freedom” – A Look At The Evolution Of Gold And Silver Prices Since The First Memorial Day

As we convene in remembrance on this Memorial Day, we pause to honor the extraordinary courage of the men and ... Read more As we convene in remembrance on this Memorial Day, we pause to honor the extraordinary courage of the men and women who laid down their lives in service to our nation. This solemn occasion, tracing its roots back to 1868, allows us to consider the tides of change that have ebbed and flowed since that first observance, not least the fluctuation in the value of the ever-reliant pillars of economic stability – gold and silver. Both gold and silver have stood as formidable symbols of wealth, prosperity, and economic assurance for millennia. Their enduring presence and importance in our economic tapestry have remained consistent, despite the oscillations in their value. They’ve served as a barometer of sorts, reflecting not just our economic climate but also the political and social events that have shaped our history, including the various wars that have marked our past. As we pay our respects this Memorial Day, we invite you to join us on a journey, tracing the path gold and silver have charted over the annals of our past. In doing so, we hope to highlight the myriad influences that have shaped their prices and, in turn, our economic narrative. We’ll delve into the intersections where significant wars, pivotal in the remembrance of Memorial Day, have left indelible impressions on the trajectory of these precious metals. In honoring our history and the bravery of those who served, we simultaneously explore the intriguing evolution of gold and silver through the years. Post-Civil War Era (1865-1914) In the period following the Civil War, from 1865 to 1914, the United States found itself transitioning from a turbulent era of war and reconstruction into a time of rapid industrial growth and financial evolution. This era was significant in many ways, not least of which was the transformation of the nation’s monetary system. During the latter half of the 19th century, the United States operated on a bimetallic standard, recognizing both gold and silver as legal tender. This system provided a certain degree of financial flexibility, allowing the exchange of these precious metals at a fixed ratio. This was the prevailing system during the first official Memorial Day observance in 1868. However, as the industrial revolution advanced, so too did the need for a burgeoning economy. The country’s monetary system needed to provide stability, especially in the wake of economic depressions that struck periodically throughout the late 19th century. Many economists and policymakers believed that a gold standard would provide this stability, reducing the volatility of currency values and making long-term economic planning more predictable. The Gold Standard Act of 1900 marked a significant shift in American monetary policy. The Act formally abandoned bimetallism, tying the U.S. dollar directly to gold. This move reflected a growing international trend towards gold monometallism and established gold as the basis of the nation’s currency, relegating silver to a secondary status. The establishment of the gold standard played a significant role in shaping the nation’s economic trajectory in the years leading up to World War I. World War I (1914-1918) World War I, lasting from 1914 to 1918, was an era of vast societal and economic changes, leading nations into territories uncharted in modern history. Among these changes, the shift in economic policies for financing the war efforts was profound and had a lasting impact. At the outset of the war, the United States, like many nations, was operating under the gold standard. This system pegged the value of the U.S. dollar to a specific amount of gold, providing a solid basis for international trade and currency stability. However, the enormous costs of the war forced nations to rethink this approach. With unprecedented wartime expenditure, countries needed more flexibility in their monetary policy to finance their military activities. The U.S. and other nations temporarily suspended the gold standard. This decision allowed governments to print additional money without the constraints of gold reserves, leading to an increase in the money supply. This significant increase in the money supply led to inflation. As a result, the nominal price of goods, including precious metals like gold and silver, increased. However, it’s important to note that while the nominal price of gold and silver rose, their real value, accounting for inflation, may not have seen the same rate of increase. The suspension of the gold standard during World War I signaled the beginning of a period of greater government intervention and control over economies, a trend that would continue into the following decades. Interwar Years and World War II (1918-1945) The era spanning the conclusion of World War I, the interwar years, and through World War II brought substantial shifts to the global financial landscape. This period, which saw the service and sacrifice of numerous military personnel whom we honor on Memorial Day, was also characterized by significant changes in the valuation of gold. The economic instability following World War I led to the Great Depression of the 1930s. To stabilize global currencies and foster international economic cooperation in the aftermath, representatives from 44 Allied nations convened in Bretton Woods, New Hampshire, in 1944. The conference resulted in the establishment of a new monetary system, known as the Bretton Woods system. Under the Bretton Woods system, the U.S. dollar was established as the world’s reserve currency. It was directly convertible to gold at a rate of $35 per ounce. Other nations pegged their currencies to the U.S. dollar, establishing a relatively stable global financial system. This pegging of the U.S. dollar to gold at $35 an ounce created a definitive and predictable measure of gold’s value. Throughout World War II and into the post-war era, the gold price remained at this pegged rate. Despite the vast military spending and economic fluctuations of these years, the Bretton Woods system provided a degree of stability for the price of gold. The $35 per ounce peg remained in place until the early 1970s when the Bretton Woods system was finally abandoned. Post-World War II to Vietnam War Era (1945-1975) The years following World War II until the mid-1970s, which encapsulate the era of the Vietnam War, was a time of significant economic development but also tumultuous changes in the financial landscape. During this time, the U.S. saw remarkable economic expansion, accompanied by the evolution of its monetary system and the de-linking of the U.S. dollar from gold. In the early 1970s, President Richard Nixon, faced with a mounting economic crisis and widespread inflation partly attributed to the cost of the Vietnam War, made the decision to end the direct convertibility of the U.S. dollar to gold, effectively ending the Bretton Woods system. This move, famously known as the ‘Nixon Shock,’ allowed the price of gold and silver to float freely in the market. The fixed price of $35 per ounce was abandoned, and the value of gold began to be determined by the forces of supply and demand. The Vietnam War, with its extensive military spending, had a profound impact on the U.S. economy, notably leading to high inflation rates. This economic turbulence was reflected in the precious metals market. As investors sought safe-haven assets amidst uncertain economic times, demand for gold and silver rose, leading to an increase in their market prices. Thus, this era, from the end of World War II through the Vietnam War, was a period of significant change for the U.S. monetary system and the gold and silver markets. The shift from a fixed gold price to a free-market system marked a fundamental transformation in the way the value of these precious metals was determined. Late 20th Century and the Persian Gulf War (1980-2001) The period from 1980 through the turn of the century saw gold and silver prices rise dramatically as the geopolitical landscape became increasingly complex. The ending of the gold standard in the early 1970s had set these precious metals free to react to market forces, resulting in significant price fluctuations. In 1980, a culmination of factors including inflation fears, international tensions, and soaring oil prices propelled gold to a then-record high of $850 per ounce, while silver reached a staggering $49.45 per ounce. This period was also marked by geopolitical upheavals, with the Persian Gulf War being one of the most significant events. From 1990 to 1991, this conflict saw a U.S.-led coalition engage with Iraqi forces following Iraq’s invasion of Kuwait. The uncertainty and volatility that accompanied this war and its potential to disrupt global oil supplies stirred anxiety in global markets. As is often the case in turbulent times, investors turned to gold and silver as safe-haven assets. Precious metals have long been viewed as a reliable store of value during periods of economic uncertainty or geopolitical unrest. This period was no exception; the escalating tensions of the Persian Gulf War bolstered the demand for these assets as investors sought stability amidst the chaos. Thus, the late 20th century, marked by its complex geopolitical climate and the lingering effects of the decision to end the gold standard, saw gold and silver solidify their role as safe-haven assets. 21st Century Wars and Beyond (2001-Present) As we navigate the 21st century, we find ourselves in a world that’s increasingly unpredictable. From the tragic events of 9/11 that launched the United States into the War on Terror to the ongoing conflicts in Iraq and Afghanistan to the recent global pandemic, the uncertainties facing our world are many and multifaceted. In such tumultuous times, gold and silver have consistently demonstrated their resilience and continued to shine as safe-haven assets. Following the 9/11 attacks, the U.S. and its allies were propelled into the Afghanistan War in 2001 and the Iraq War in 2003. During these times of military conflict and the resultant political instability, gold and silver prices experienced periods of heightened volatility, yet their overall trend was upward. These precious metals provided a sanctuary for investors seeking stability in the face of geopolitical turmoil and economic uncertainty. Then came the global financial crisis of 2008, followed by the European sovereign debt crisis, both of which stoked fears of a worldwide economic collapse. Once again, investors flocked to the time-tested safety of gold and silver, pushing prices to new record highs. Gold reached a peak of $1,917.90 per ounce in 2011, while silver reached $49.51 per ounce, mirroring its 1980 record. In the current era marked by the COVID-19 pandemic, gold and silver have again proven their mettle as stores of value. Despite the initial shock to the markets in early 2020, gold and silver have rebounded strongly, with gold achieving an all-time high of over $2,000 per ounce in August 2020. Conclusion: Reflecting on Resilience through the Lens of Precious Metals The enduring saga of gold and silver, marked by their ebbs and flows against the backdrop of America’s past, offers a singular vantage point into the evolution of our nation. They mirror our history of resilience in times of adversity, echoing the very essence of what Memorial Day embodies – the remembrance of the brave who faced the most profound adversity on behalf of us all. As we trace the journey of gold and silver prices from the post-Civil War era to the present day, we observe their steadfastness through tumultuous events and uncertainties. They have borne witness to wars and conflicts, economic upheavals, and global pandemics, embodying a sense of constancy amidst the ever-changing tides of history. The resilience of these precious metals parallels the resilience of the American spirit, as exemplified by our fallen heroes whom we honor on Memorial Day. Moreover, the history of gold and silver is not just a retrospective mirror reflecting our past, but it also projects a beacon into our future. The persisting appeal of these precious metals in the face of uncertainty stands testament to their potential in navigating future challenges, much as we draw inspiration from our past to face the future. As we commemorate Memorial Day, honoring the extraordinary courage and sacrifice of our military personnel, the chronicle of gold and silver serves as a potent reminder of our nation’s journey. It is a testament to the enduring spirit of resilience, both in the value of precious metals and in the heart of our nation. As we reflect on our past and anticipate the future, we do so with the memory of our heroes in mind and the steadfast resilience that gold and silver represent in our hands......»»

Category: blogSource: valuewalkMay 27th, 2023Related News

JPMorgan is the latest company to slash jobs amid a layoff wave expanding beyond tech. Here"s the full list of major US companies making cuts this year.

The wave of layoffs hitting tech companies and beyond shows no signs of slowing down. JPMorgan is cutting 500 jobs, and about 1,000 from newly acquired First Republic. JPMorgan confirmed to CNN it was cutting 500 employees within its own bank, as well as 1,000 staffers from newly acquired First Republic Bank.Chris Hondros/Getty Images JPMorgan is the latest US company to conduct layoffs, reportedly slashing about 500 employees. Over the past few months, layoffs have expanded outside of tech, media, and finance as Gap and Whole Foods announced cuts. See the full list of layoffs so far in 2023. A wave of layoffs that hit dozens of US companies toward the end of 2022 shows no sign of slowing down into 2023.America's largest bank, JPMorgan Chase, is the latest US company to announce layoffs. CNBC was first to report that the finance giant was cutting about 500 jobs across several divisions, and a JPMorgan spokesperson confirmed the cuts to CNN later on Friday.The news comes weeks after Linkedin announced cuts of its own. The business networking platform informed employees in a memo posted May 8 that it would be cutting 716 roles from its global workforce and discontinue InCareer, its localized jobs app in China. These companies join a large number of major corporations that have made significant cuts in the new year: Tech companies, including Meta and Google, and finance behemoths, like Goldman Sachs, announced massive layoffs in the first weeks of 2023 amid a continued economic downturn and stagnating sales.The downsizing followed significant reductions that companies including Meta and Twitter made last year. The layoffs have primarily affected the tech sector, which is now hemorrhaging employees at a faster rate than at any point during the pandemic, the Journal reported. According to data cited by the Journal from, a site tracking layoffs since the start of the pandemic, tech companies slashed more than 187,000 in 2023 alone — compared to 80,000 in March to December 2020 and 15,000 in 2021. But it's not just tech companies that are cutting costs, with the major job reductions that have come from the Gap, along with FedEx, Dow, and Wayfair.Here are notable job cuts so far in 2023: JPMorgan: About 500 jobsJPMorgan recently began cuts of about 500 employees, CNBC and CNN reported.ReutersJPMorgan announced this week that it is slashing 500 roles, CNBC reported.The cuts are expected to spread across JPMorgan's retail and commercial banking, asset and wealth management, and corporate and investment banking operations, according to CNBC.The reported layoffs come just a day after reports that JPMorgan laid off 1,000 First Republic employees, or about 15% of its workforce. JPMorgan, the largest bank in the US, got even larger earlier this month when it acquired the assets of failing First Republic after it was seized by regulators.LinkedIn: 716 rolesRyan Roslansky, CEO of LinkedIn, said the company would be cutting 716 roles on Tuesday.Courtesy of Ryan RoslanskyLinkedIn announced earlier this month that it would be cutting 716 roles from its global workforce in a message from CEO Ryan Roslansky.Roslansky also noted that company will also be discontinuing InCareer, a local jobs app in China, as it refocuses on helping companies in China hire, market, and train abroad. The decision comes on the heels of LinkedIn's 20th anniversary last week. "While we're making meaningful progress creating economic opportunities for our members and customers and experiencing record engagement on the platform, we're also seeing shifts in customer behavior and slower revenue growth," Roslansky said.Shopify: 20% of workforceDavid Fitzgerald/Sportsfile via Getty ImagesShopify is slashing 20% of its workforce and selling off most of its logistics business to supply chain company Flexport, the company announced on May 4. The cuts confirmed growing concern of layoffs among staffers in recent weeks, following the cancellation of several team-building offsite events and analyst speculation that Shopify would alter its logistics arm, Insider reported."I recognize the crushing impact this decision has on some of you, and did not make this decision lightly," Shopify CEO Tobi Lütke said in a note to employees and shareholders.He continued: "This is a consequential and hard week. It's the right thing for Shopify but it negatively affects many team members who we admire and love working with."Morgan Stanley: 3,000 jobsReutersMorgan Stanley is cutting 3,000 jobs by the end of the quarter, Bloomberg reported, citing sources familiar with the matter. One person told the outlet that the company's banking and trading teams will be most impacted.The cuts will affect about 5% of the firm's workforce, excluding financial advisers and personnel in the wealth management division, Bloomberg noted. A spokesperson for the bank did not immediately respond to Insider's request for comment and declined to comment to Bloomberg. However, CEO James Gorman noted last month that underwriting and mergers activity has been "subdued" and that he doesn't expect a rebound before the second half of 2023 or even 2024, Bloomberg noted. The firm last cut 1,600, or around 2% of its staff in December, Bloomberg noted. Dropbox: 16% of staffDrew Houston, cofounder and CEO of Dropbox, told employees Thursday that the company was eliminating 500 jobs.Matt Winkelmeyer / Getty ImagesCloud storage firm Dropbox said Thursday that it would be reducing its global workforce by 16%, or 500 jobs.In a message to staff sent Thursday, CEO Drew Houston said the cuts are being made, in part, from slowing business growth and the expansion of AI products. "Today's changes were the result of taking a hard look at our strategic priorities and organizational structure as a leadership team, and aligning to principles of sustainable financial growth, efficiency, and flexibility to invest in our future. We're also streamlining how the company is organized," Houston said.  Gap: more than 2,000 jobs since late last yearGap posters in Birmingham, England.Mike Kemp/Getty ImagesClothing retailer Gap is cutting 1,800 positions in its headquarters and upper management as part of a restructuring plan meant to cut costs, the retailer said Thursday.Gap said that the cuts are expected to help the company see $300 million in annualized savings."We are taking the necessary actions to reshape Gap Inc. for the future — simplifying and optimizing our operating model, elevating creativity, and driving better delivery in every dimension of the customer experience," the company's chairman and interim CEO Bob Martin said in a statement given to Insider.In September, Gap slashed 500 jobs from its corporate ranks in a push to save $250 million annually, the Wall Street Journal reported. Jenny Craig: potential mass layoffsA man enters a Jenny Craig facility June 19, 2006 in Niles, Illinois.Tim Boyle/Getty ImagesWeight loss company Jenny Craig notified staffers of potential mass layoffs on April 27, as a result of the company "winding down physical operations," according to an internal email reviewed by NBC News.According to NBC News, the company has been in the process of selling and anticipates the pending sale "will likely impact all employees in some manner," an FAQ document sent to employees read. "We do not know the exact employees/groups whom will be impacted, and if any employees may be retained," the document said, per NBC News. "As a result, we would suggest that you anticipate that your employment may be impacted and begin to seek other employment." 3M: 6,000 jobsMike Roman, CEO of 3M.Xinhua News Agency / Contributor/Getty ImagesOn Tuesday, the Scotch tape and Post-It Notes manufacturer said it will be cutting 6,000 positions across all parts of the company with the goal of streamlining operations, simplifying supply chain, and reducing layers of management, according to The Wall Street Journal.The company's chief executive Mike Roman said Tuesday that the cuts would eliminate 10% of 3M's global workforce and ultimately save the company between $700 to $900 million in pretax costs, the Journal said. 3M last announced cuts in January when it said it was removing 2,500 manufacturing positions.Lyft: 1,072 rolesReutersIn an SEC filing on Thursday, Lyft said it was cutting roles for 1,072 employees, or about 26% of its corporate workforce. In the filing, the company also said it is scaling back on hiring and has eliminated over 250 open positions. The news comes just weeks after David Risher took the helm as Lyft's new CEO, part of an executive shakeup that involved cofounders Logan Green and John Zimmer moving into board roles. A spokesperson for Lyft previously told Insider, "David has made clear to the company that his focus is on creating a great and affordable experience for riders and improving drivers' earnings."The spokesperson added, "To do so requires that we reduce our costs and structure our company so that our leaders are closer to riders and drivers. This is a hard decision and one we're not making lightly. But the result will be a far stronger, more competitive Lyft." Deloitte: 1,200 jobsAlex Tai/SOPA Images/LightRocket via Getty ImagesDeloitte announced on April 21 it was cutting 1,200 jobs, or about 1.5% of its US staff, the Financial Times reported. The cuts will largely be concentrated in the financial advisory business as a result of a decline in mergers and acquisitions, per internal communications viewed by the FT. Whole Foods: Several hundred corporate employeesMary Meisenzahl/InsiderWhole Foods announced on April 20 it was letting go of several hundred corporate employees, amounting to less than 0.5% of the company's workforce, CNBC reported.The cuts are a result of a structural reorganization of global and regional support teams, which will be downsized from nine to six, but will not cause store closures, according to CNBC.In a memo to employees viewed by CNBC, Whole Foods executives wrote "simplifying our work and improving how we operate is critical as we grow." "As the grocery industry continues to rapidly evolve, and as we — like all retailers — have navigated challenges like the COVID-19 pandemic and continued economic uncertainty, it has become clear that we need to continue to build on these changes," the memo read, per CNBC. It continued: "With additional adjustments, we will be able to further simplify our operations, make processes easier, and improve how we support our stores."BuzzFeed News: 15% of staffBuzzFeed News headquarters.Drew Angerer / Getty ImagesBuzzFeed announced on April 20 that it was shuttering its BuzzFeed News division, laying off 15% of its staff, or 180 employees, in the process. In a memo to staff shared with Insider's Lucia Moses, CEO Jonah Peretti admitted to mistakes like over-investing in the news arm and failing to successfully integrate BuzzFeed and Complex after the latter was acquired in 2021. "I could have managed these changes better as the CEO of this company and our leadership team could have performed better despite these circumstances," he wrote. "Our job is to adapt, change, improve, and perform despite the challenges in the world. We can and will do better."Ernst & Young: 3,000 positionsEY spends $500 million annually on learning for its employees.TOLGA AKMEN / Contributor / GettyErnst & Young announced on April 17 it was laying off 3,000 US employees, or about 5% of its total US staff.The decision came after the financial auditor nixed a proposed reorganization that would break up its consulting and accounting businesses, Reuters reported. According to the Financial Times, which first reported the layoffs, the cuts will address "overcapacity" and will largely impact the company's consulting business. Opendoor: 560 jobsOpendoor announced it was cutting 560 jobs on Tuesday.Opendoor Technologies/GlassdoorOn Tuesday, home flipping giant Opendoor said it was cutting 560 jobs, or 22% of its workforce, citing a souring housing market. A spokesperson for Opendoor told Insider by email,"We've been weathering a sharp transition in the housing market – the steepest and fastest rate increase by the Fed in 40 years, the more than doubling of mortgage rates from historic lows, and the hit to home affordability have driven an approximately 30% decline in new listings from peak levels last year."The spokesperson noted that the cuts have been made to "better align our operational costs with the anticipated near-term market opportunity, while maintaining our critical technology investments that will continue to drive the business long term."Impacted team members will receive severance pay, extended health benefits, and job transition support. Opendoor last made cuts in November 2022, laying off 550 workers or about 18% of its staff.  McKinsey: About 1,400 employeesFABRICE COFFRINI/AFP via Getty ImagesMcKinsey & Company will cut an estimated 1,400 positions, or 3% of its total workforce, Bloomberg reported on March 29.The layoffs are part of the consulting firm's efforts to reorganize support teams and pare down an employee base that has grown rapidly in recent years, per the outlet. "The painful result of this shift is that we will have to say goodbye to some of our firm functions colleagues, while helping others move into new roles that better align to our firm's strategy and priorities," Bob Sternfels, global managing partner, wrote in a note to staff seen by Bloomberg. He continued: "Starting now, where local regulations allow, we will begin to notify colleagues who will depart our firm or be asked to change roles."David's Bridal: 9,236 employeesShoppers head for David's Bridal in Sunset Hill, Mo. Tuesday, May 10, 2005.James A. Finley/AP ImagesDavid's Bridal is laying off more than 9,000 workers across the US, according to a WARN notice filed with the Pennsylvania Department of Labor and Industry on April 14. "We are evaluating our strategic options and a sale process is underway," David's Bridal spokesperson Laura McKeever told the Philadelphia Inquirer. "At this time, there are no updates to share."The company is considering filing for bankruptcy in the near future, according to an April 7 report from the New York Times. David's Bridal also filed for bankruptcy in 2018. Virgin Orbit: 85% of staffersSir Richard Branson, founder of Virgin Orbit.Mark GreenbergVirgin Orbit disclosed in a March 30 filing with the Securities and Exchange Commission that it is slashing 85% of its staff, or about 675 employees.The company, which operates within the Virgin Group and provides launch services for satellites, is also ceasing operations "for the foreseeable future," CNBC reported. "Unfortunately, we've not been able to secure the funding to provide a clear path for this company," Virgin Orbit CEO Dan Hart said, according to audio of a company all-hands obtained by CNBC.     Electronic Arts: About 780 employeesLucy Nicholson/ReutersElectronic Arts — the video game company best known for its "The Sims," "FIFA," and "Madden NFL" franchises — is letting go of 6% of its staff, or about 780 employees, the company announced on March 24. "As we drive greater focus across our portfolio, we are moving away from projects that do not contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams," Electronic Arts CEO Andrew Wilson wrote in a blog post to staffers. Wilson said the cuts began early this quarter and will continue through the beginning of the next fiscal year.  Amazon: 9,000 more jobsAmazon CEO Andy Jassy announced on Monday that the company would be eliminating another 9,000 roles, on top of the 18,000 announced in January.Richard Brian/ReutersAmazon announced on March 20 that it would cut 9,000 jobs from its workforce over the coming weeks. The cuts come on the heels of the 18,000 roles the company announced it was cutting back in January. In a message to employees shared on Amazon's site, CEO Andy Jassy noted that the impacted positions are largely in the Amazon Web Services, People Experience and Technology Solutions, Advertising, and Twitch departments. In the memo, Jassy said the company staggered its layoff announcements because "not all of the teams were done with their analyses in the late fall." He added, "rather than rush through these assessments without the appropriate diligence, we chose to share these decisions as we've made them so people had the information as soon as possible."Roku: 200 staffersRoku CEO Anthony Wood speaks during Tribeca X - 2021 Tribeca Festival on June 18, 2021 in New York City.Photo by Arturo Holmes/Getty Images for Tribeca FestivalRoku is cutting an additional 200 roles, or 6% of its workforce, Reuters reported on March 30. The cuts come after the streaming device manufacturer previously laid off 200 employees in November 2022. The company is expected to complete the cuts by the end of the second quarter, and also plans to leave and sublease office facilities in an attempt to reduce costs, according to Reuters. Walmart: About 200 employeesA Walmart store.Bruce Bennett/Getty ImagesWalmart asked about 200 workers at five fulfillment centers to find employment elsewhere in the company in the next 90 days or else be laid off, Reuters reported on March 23.The cuts are a response to the reduction of evening and weekend shifts at select Walmart facilities, including those in Chino, California; Davenport, Florida; Bethlehem, Pennsylvania; Pedricktown, New Jersey; and Fort Worth, Texas, per Reuters. "We recently adjusted staffing levels to better prepare for the future needs of customers," a Walmart spokesperson told Reuters in a statement.  Accenture: 19,000 positionsJoan Cros/Corbis via Getty ImagesAccenture is slashing 19,000 roles, or 2.5% of its total workforce, according to a Security and Exchange Commission filing on March 23.The tech consultancy company said the layoffs will take place over the next 18 months and half of the cuts will impact staffers in "non-billable corporate functions," per the filing.  "While we continue to hire, especially to support our strategic growth priorities, during the second quarter of fiscal 2023, we initiated actions to streamline our operations and transform our non-billable corporate functions to reduce costs," Accenture wrote in the filing. Indeed: 2,200 staffersIndeed CEO Chris HyamsPhoto by Niall Carson/PA Images via Getty ImagesIndeed CEO Chris Hyams announced on March 22 that the online networking platform will cut 2,200 jobs, or about 15% of its staff. In a note sent to employees, Hyams wrote the reductions will impact "nearly every team, function, level, and region" across the company in an effort to reduce redundancy and increase efficiency. "I am heartbroken to share that I have made the difficult decision to reduce our headcount through layoffs. This is a decision I truly hoped I'd never have to make," he wrote. Meta: 10,000 workersMeta CEO Mark ZuckerbergMark Lennihan/APRoughly 10,000 Meta workers will find out that their jobs have been cut between March and May, according to an announcement by the company's founder and CEO, Mark Zuckerberg. Zuckerberg also said the company would close around 5,000 open roles that haven't yet been filled as part of the company's effort to downsize. "My hope is to make these org changes as soon as possible in the year so we can get past this period of uncertainty and focus on the critical work ahead," Zuckerberg wrote in a post on Facebook announcing the layoffs. In the post, Zuckerberg said that members of Meta's recruiting team would learn about the fate of their jobs in March, while tech workers would find out in late April, and business groups would find out in May. "In a small number of cases, it may take through the end of the year to complete these changes," he wrote. The job cuts come less than 5 months after Meta slashed 11,000 workers, or about 13% of its workforce, in November. At the time, Zuckerberg called the layoffs a "last resort."  SiriusXM: 475 rolesJennifer Witz, CEO of SiriusXM said the company was cutting 475 roles on March 6.Cindy Ord / Staff/ Getty ImagesThe radio company said March 6th that it was cutting 8% of its staff or 475 roles according to a statement posted on the company's website from CEO Jennifer Witz.In the statement, Witz said "nearly every department" across the company will be impacted. She also noted that those impacted will be contacted directly and will have the opportunity to speak with a leader from their department as well as a member of the company's People + Culture team. Impacted employees will also be provided with exit packages that include severance, transitional health insurance benefits, Employee Advocacy Program continuation, and outplacement services, Witz noted.Citigroup: hundreds of jobsCiti CEO Jane FraserPatrick T. Fallon/AFP via Getty ImagesCiti plans to cut hundreds of jobs, with many focused on the company's investment bank division. The total headcount cut will reportedly amount to less than 1% of Citi's more than 240,000 workers and are part of Citi's normal course of activities.Citi's cuts were first reported by Bloomberg. In January, Citi's CFO told investors the company remained "focused on simplifying the organization, and we expect to generate further opportunities for expense reduction in the future."Citi declined Insider's request to provide comment on the record. Waymo: reported 209 roles so farWaymo's co-CEOs Tekedra N. Mawakana and Dmitri Dolgov reportedly told employees that 8% of the unit's staff has been cut this year.Peter Prado/Insider; Vaughn Ridley/Sportsfile via Getty ImagesAlphabet's self-driving car unit Waymo has reportedly laid off a total of 209 employees this year in two rounds of cuts, according to The Information. Waymo reportedly laid off 137 employees on March 1, according to The Information. Waymo's co-CEOs Tekedra N. Mawakana and Dmitri Dolgov reportedly told employees that 209 employees— approximately 8% of the company's staff— have been cut this year, according to an internal email seen by The Information.Waymo did confirm the cuts to Insider but did not specify the number of roles impacted or the date the first round of cuts occurred.  Thoughtworks: reported 500 employeesThoughtworks laid off 500 employees on February 28. That day, CEO Guo Xiao said in the company's earnings release that it was "pleased" with its performance in the fourth quarter of 2022.Screenshot of Guo Xiao from the Thoughtworks website.Thoughtworks, a software consultancy firm, reportedly laid off 500 employees or 4% of its global workforce, according to TechCrunch. TechCrunch noted that the company "did not dispute" the figure when reached for comment on March 1. According to TechCrunch, Thoughtworks "initially informed" the affected employees about the decision on February 28. That same day, Thoughtworks reported that its revenue had increased 8.3% between the fourth quarter of 2022 and the fourth quarter of 2021. The company also reported a more than 21% year over year revenue increase for 2022. In the company's earnings release, Thoughtworks' CEO Guo Xiao said, "We are pleased with our performance in the fourth quarter and our clients continue to look to us to help them navigate these uncertain times and tackle their biggest technology challenges."General Motors: reported 500 salaried jobsGM CEO Mary Barra.Patrick T. Fallon/Getty ImagesGeneral Motors plans to cut 500 executive-level and salaried positions, according to a report from The Detroit News. The layoffs come only one month after CEO Mary Barra told investors and reporters on the company's earnings call, "I do want to be clear that we're not planning layoffs." In a memo to employees, seen by Insider, GM's chief people officer wrote, "we are looking at all the ways of addressing efficiency and performance. This week we are taking action with a relatively small number of global executives and classified employees following our most recent performance calibration." Employees who are getting laid off were informed on Feb. 28. General Motors confirmed the layoffs to Insider but did not confirm a specific number of employees getting cut. Twitter: about 200 employeesElon Musk is Twitter's CEO and ownerREUTERS/Jonathan ErnstThe layoffs reportedly haven't stopped at Twitter under Elon Musk. The social media company reportedly laid off 200 more employees on a Saturday night in late February, according to the New York Times. Some workers reportedly found out they had lost their jobs when they couldn't log into their company emails.Musk laid off 50% of Twitter's workforce in November after buying the company for $44 billion. Yahoo: 20% of employeesSOPA Images / Getty ImagesYahoo announced it will eliminate 20% of its staff, or more than 1,600 people, as part of an effort to restructure the company's advertising technology arm, Axios reported on February 9.Yahoo CEO Jim Lanzone told Axios that the cuts are part of a strategic overhaul of its advertising unit and will be  "tremendously beneficial for the profitability of Yahoo overall."    Disney: 7,000 jobsBob Iger, CEO of DisneyCharley Gallay/Stringer/Getty ImagesFresh off his return as Disney CEO, Bob Iger announced February 8 that Disney will slash 7,000 jobs as the company looks to reduce costs. Iger, who returned to the position in November 2022 to replace his successor Bob Chapek after first leaving in 2020, told investors the cuts are part of an effort to help save an estimated $5.5 billion. "While this is necessary to address the challenges we are facing today, I do not make this decision lightly," Iger said. "I have enormous respect and appreciation for the talent and dedication of our employees worldwide and I am mindful of the personal impact of these changes."DocuSign: 10%Igor Golovniov/SOPA Images/LightRocket/Getty ImagesDocuSign plans to slash 10% of employees as part of a restructuring plan "designed to support the company's growth, scale, and profitability objectives," the electronic signature company wrote in a Securities and Exchange Commission filing on Feb. 16. The company said the restructuring plan is expected to be complete by the second quarter of fiscal 2024, per the filing. Affirm: 19% of its workforceAffirm co-founder and CEO Max LevchinAffirmAffirm announced on February 8 it plans to slash 19% of its workforce, after reporting declining sales that missed Wall Street expectations. Affirm co-founder and CEO Max Levchin said in a call with investors that the technology company "has taken appropriate action" in many areas of the business to navigate economic headwinds, including creating a "smaller, therefore, nimbler team.""I believe this is the right decision as we have hired a larger team that we can sustainably support in today's economic reality, but I am truly sorry to see many of our talented colleagues depart and we'll be forever grateful for their contributions to our mission," he said.  GoDaddy: 8% of workersGoDaddy's CEO Aman Bhutani in September 2019Don Feria/Invision/AP ImagesGoDaddy, the website domain company, announced on February 8 it will cut 8% of its global workforce. "Despite increasingly challenging macroeconomic conditions, we made progress on our 2022 strategic initiatives and continued our efforts to manage costs effectively," GoDaddy CEO Aman Bhutani wrote in an email to staffers."The discipline we embraced was important but, unfortunately, it was not sufficient to avoid the impacts of slower growth in a prolonged, uncertain macroeconomic environment."Zoom: 15% of staffZoom CEO Eric Yuan.AP Photo/Mark LennihanZoom CEO Eric Yuan announced in a memo to workers that the company would reduce its headcount by 15%, or about 1,300 employees, on February 7. He attributed the layoffs to "the uncertainty of the global economy and its effect on our customers" but also said the company "made mistakes" as it grew. "We didn't take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably toward the highest priorities," Yuan said. In the memo, Yuan also announced that he would cut his salary by 98% in 2023 and forgo his corporate bonus. In addition, other members of the executive leadership team will also reduce their base salaries by 20% this year, according to Yuan. eBay: 500 jobseBay CEO Jamie Iannone told employees Tuesday that the company would be eliminating 500 roles.Harry Murphy/Sportsfile for Web Summit via Getty ImagesOn Tuesday, e-commerce giant eBay told employees that it would be eliminating 500 roles, or about 4% of its workforce, according to a message included in a regulatory filing on Tuesday. In the message, CEO Jamie Iannone wrote "Today's actions are designed to strengthen our ability to deliver better end-to-end experiences for our customers and to support more innovation and scale across our platform."He added, "this shift gives us additional space to invest and create new roles in high-potential areas — new technologies, customer innovations and key markets — and to continue to adapt and flex with the changing macro, ecommerce and technology landscape." Dell: 5% of workforceDell is eliminating approximately 5% of its workforce. The company's co-chief operating officer Jeff Clarke told employees in a memo, "market conditions continue to erode with an uncertain future."Kevork Djansezian / Staff/Getty ImagesOn February 6, Dell said in a regulatory filing that it would be eliminating about 5% of its workforce. The percentage amounts to approximately 6,650 roles based on numbers that Dell provided Insider. In a memo sent to employees posted on Dell's website, co-chief operating officer Jeff Clarke, said "market conditions continue to erode with an uncertain future." He also noted in the memo that the company had paused hiring, limited employee traveling, and decreased spending on outside services. He added, however, "the steps we've taken to stay ahead of downturn impacts – which enabled several strong quarters in a row – are no longer enough."Pinterest: 150 jobsBen Silbermann is the founder and executive chair of Pinterest. He was the company's CEO until June 2022.Horacio Villalobos/Getty ImagesPinterest said it would cut 150 workers, or less than 5% of its workforce, on February 1, the company confirmed to Insider.  "We're making organizational changes to further set us up to deliver against our company priorities and our long-term strategy," a company representative said.The social media company was recently the target of activist investor Elliott Management, agreeing to add one of the firm's representatives to its board last month.   Rivian: 6% of jobsRivian CEO RJ Scaringe.Carlos Delgado/Associated PressRivian's CEO RJ Scaringe announced the EV company would cut 6% of its workforce in a memo to employees, the company confirmed to Insider. This is the company's second round of job cuts in the last 6 months after Scaringe announced a separate 6% workforce reduction in July 2022. In his memo to staff, Scaringe said Rivian needs to focus its resources on ramping up production and reaching profitability. BDG Media: 8% of staffScreengrab of Gawker's homepageGawkerBDG Media announced on February 1 that it was shutting down pop-culture site Gawker and laying off 8% of its staff, according to Axios. BDG owns Bustle, Elite Daily, and other lifestyle and news websites. "After experiencing a financially strong 2022, we have found ourselves facing a surprisingly difficult Q1 of 2023," CEO Bryan Goldberg wrote in a memo to staff seen by Axios. Splunk: 325 jobsGary Steele took over as Splunk's CEO in April 2022.YouTube/ProofpointSoftware and data platform Splunk is the latest in a long list of tech companies to announce layoffs in recent months. On February 1, the company said it would lay off 4% of its staff and scale back the use of consultants to cut costs, according to a filing viewed by Insider. The layoffs will reportedly be focused on workers in North America, and CEO Gary Steele told employees Splunk would continue to hire in "lower-cost areas."Intel: 343 jobsIntel CEO Pat Gelsinger.Pool Eric Lalmand/Getty ImagesIntel notified California officials per WARN Act requirements it plans to layoff 343 workers from its Folsom campus, local outlets reported on January 30. "These are difficult decisions, and we are committed to treating impacted employees with dignity and respect," Intel said in a statement to KCRA 3, noting that the cost-cutting comes as the company is faces a "challenging macro-economic environment." On February 1, the company announced CEO Pat Gelsinger will take a 25% pay cut, while other members of the executive team will take salary reductions in amounts ranging from 5% to 15%.  FedEx: more than 10% of top managersFedEx workers in New York City on March 16, 2021.Alexi Rosenfeld/Getty ImagesFedEx informed staffers on February 1 it plans to slash more than 10% of top managers in an effort to reduce costs.  "This process is critical to ensure we remain competitive in a rapidly changing environment, and it requires some difficult decisions," CEO Raj Subramaniam wrote in a letter to staff, which was shared with Insider's Emma Cosgrove. While the exact number of employees impacted was not specified, a FedEx spokesperson told Insider that since June 2022 the company has reduced its workforce by more than 12,000 staffers through "headcount management initiatives." "We will continue responsible headcount management throughout our transformation," the spokesperson said. PayPal: 7% of total workforceDan Schulman, president and CEO of PayPal announced that the company would be cutting 7% of its total workforce on January 31.PaypalPayPal announced on January 31 that it plans to cut 2,000 workers or approximately 7% of the company's total workforce over the coming weeks. In a statement announcing the layoffs on PayPal's website, CEO and president Dan Schulman cited the "challenging macro-economic environment." He added, "While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do."HubSpot: 7% of staffYamini Rangan is HubSpot's CEO.Matt Winkelmeyer/ Getty ImagesHubSpot's CEO Yamini Rangan announced that the company would lay off 500 workers, according to an email seen by Insider. "We came into 2022 anticipating growth would slow down from 2021, but we experienced a faster deceleration than we expected. The year was challenging due to a perfect storm of inflation, volatile foreign exchange, tighter customer budgets, and longer decision making cycles," Rangan wrote to employees. IBM: 1.5% of staffIBM's CEO Arvind KrishnaBrian Ach / Stringer / Via GettyIBM plans would cut 1.5% of its staff, roughly 3,900 workers. The layoffs were first reported by Bloomberg but confirmed by Insider.The company said the cuts would cost IBM about $300 million and is related entirely to businesses the company has spun off. Bloomberg reports that CFO James Kavanaugh said the company is still hiring in "higher-growth areas." Hasbro: 15% of workersA Jenga game by Hasbro Gaming.Thomson ReutersHasbro reportedly plans to cut 1,000 workers after warning that the 2022 holiday season was weaker than expected, according to the toy and game company. The company said the layoffs come as it seeks to save between $250 million to $300 million per year by the end of 2025. "While the full-year 2022, and particularly the fourth quarter, represented a challenging moment for Hasbro, we are confident in our Blueprint 2.0 strategy, unveiled in October, which includes a focus on fewer, bigger brands; gaming; digital; and our rapidly growing direct to consumer and licensing businesses," Chris Cocks, Hasbro's CEO said. Dow: 2,000 global employeesThe Dow Chemical logo is shown on a building in downtown Midland, home of the Dow Chemical Company corporate headquarters, December 10th, 2015 in Midland, MichiganBill Pugliano/Getty ImagesDow Inc. announced on January 26 that it will lay off 2,000 global employees, a move that indicates mass layoffs are spreading beyond just the technology sector, the Wall Street Journal reported. It's part of a $1 billion cost-cutting effort intended to help amid "challenging energy markets," Dow CEO Jim Fitterling said in a press release. The chemical company also  will shut down select assets, mostly in Europe, per the release."We are taking these actions to further optimize our cost structure and prioritize business operations toward our most competitive, cost-advantaged and growth-oriented markets, while also navigating macro uncertainties and challenging energy markets, particularly in Europe," Fittlering said.   SAP: Up to 3,000 positionsSAP CEO Christian KleinULI DECK/POOL/AFP via Getty ImagesSoftware company SAP said on January 26 it will slash up to 3,000 jobs globally in response to a profit slump, with many of the cuts coming outside of its headquarters in Berlin, the Wall Street Journal reported.  The layoffs will impact an estimated 2.5% of the company's workforce and are part of a cost-cutting initiative aiming at reaching an annual savings of $382 million in 2024, according to the Journal. "The purpose is to further focus on strategic growth areas," said Luka Mucic, SAP's chief financial officer, per the Journal.   Spotify: 6% of the workforceDaniel Ek, Spotify cofounder and CEOGreg Sandoval/Business InsiderIn a memo to Spotify employees, CEO Daniel Ek said the company would cut 6% of its staff, about 600 people. "While we have made great progress in improving speed in the last few years, we haven't focused as much on improving efficiency. We still spend far too much time syncing on slightly different strategies, which slows us down. And in a challenging economic environment, efficiency takes on greater importance. So, in an effort to drive more efficiency, control costs, and speed up decision-making, I have decided to restructure our organization," he wrote. As part of the changes, Dawn Ostroff, the company's chief content and advertising officer, who spent more than $1 billion signing exclusive podcast deals with Joe Rogan, the Obamas, and Prince Harry and Meghan Markle, has departed. 3M: 2,500 jobs cut3M3M, which makes Post-It notes, Scotch tape, and N95 masks, said it plans to cut 2,500 manufacturing jobs worldwide. CEO Mike Roman called it "a necessary decision to align with adjusted production volumes." "We expect macroeconomic challenges to persist in 2023. Our focus is executing the actions we initiated in 2022 and delivering the best performance for customers and shareholders," he said in a press release. Google: around 12,000 employeesBrandon Wade/ReutersSundar Pichai, CEO of Google parent company Alphabet, informed staffers on January 20 that the company will lay off 12,000 employees, or 6% of its global workforce. In a memo sent to employees and obtained by Insider, Pichai said the layoffs will "cut across Alphabet, product areas, functions, levels and regions" and were decided upon after a "rigorous review." Pichai said the company will hold a townhall meeting to further discuss the cuts, adding he took "full responsibility for the decisions that led us here" "Over the past two years we've seen periods of dramatic growth," Pichai wrote in the email. "To match and fuel that growth, we hired for a different economic reality than the one we face today." Vox: 7% of staffThe layoffs were reportedly announced in a memo from CEO Jim Bankoff.Vox MediaVox Media, the parent company of publications like Vox, The Verge, New York magazine, and Vulture, is laying off roughly 133 people, or 7% of its staff, according to a report by Axios. The cuts come just a few months after the media company laid off 39 roles in July. The decision was reportedly announced in a note to staff from CEO Jim Bankoff, who wrote that while the company is "not expecting further layoffs at this time, we will continue to assess our outlook, keep a tight control on expenses and consider implementing other cost savings measures as needed," according to Axios.Vox Media's layoffs come at a time when advertisers are tightening their belts in anticipation of an economic slowdown, taking a toll on the media industry. Capital One: more than 1,100 tech workersBrian Ach/AP ImagesCapital One slashed 1,100 technology positions on January 18, a company spokesperson told Insider. The cuts impacted workers in the "Agile job family," a department which was eliminated and its responsibilities integrated into "existing engineering and product manager roles," per the spokesperson. "Decisions that affect our associates, especially those that involve role eliminations, are incredibly difficult," the Capital One spokesperson said in the statement. "This announcement is not a reflection on these individuals or the work they have driven on behalf of our technology organization," the spokesperson continued. "Their contributions have been critical to maturing our software delivery model and our overall tech transformation."The eliminations came after the bank had invested heavily in tech efforts in recent years, including launching a new software business focused on cloud computing in June 2022. "This decision was made solely to meet the evolving skills and process enhancements needed to deliver on the next phase of our tech transformation," the spokesperson said.  WeWork: About 300 employeesReutersWeWork announced on January 19 it will cut about 300 positions as it scales back on coworking spaces in low-performing regions, Reuters reported. The layoffs come after the company said in November 2022 it planned to exit 40 locations in the US as part of a larger cost-cutting effort. The company announced the cuts in a press release listing its fourth-quarter earnings call date, stating only the reductions are "in connection with its portfolio optimization and in continuing to streamline operations."  Wayfair: more than 1,000 employeesPavlo Gonchar/SOPA Images/LightRocket via Getty ImagesWayfair is expected to lay off more than 1,000 employees, about 5% of its workforce, in the coming weeks in response to slumping sales, the Wall Street Journal reported on January 19.The cuts mark the second round of layoffs in six months for the online furniture and home goods company, after it nixed 900 staffers in August 2022. Though the company experienced significant growth during the pandemic-driven home improvement boom, sales began to stagnate as social distancing policies loosened and Americans began returning to offices."We were seeing the tailwinds of the pandemic accelerate the adoption of e-commerce shopping, and I personally pushed hard to hire a strong team to support that growth. This year, that growth has not materialized as we had anticipated," Wayfair CEO Niraj Shah wrote in a letter to employees announcing the August 2022 layoffs, per CNN. In its most recent quarter, the Wayfair reported that net revenue decreased by $281 million, down 9% from the same period the year prior.  Microsoft: 10,000 workersMicrosoft CEO Satya NadellaStephen Brashear/Getty ImagesMicrosoft announced on January 18 that it planned to reduce its workforce by 10,000 jobs by the end of the third quarter of this year. CEO Satya Nadella attributed the layoffs to customers cutting back in anticipation of a recession. However, Nadella also told workers that the company still plans to grow in some areas, despite the firings, writing that the company will "continue to hire in key strategic areas." Microsoft's layoff announcement comes as the tech giant is reportedly in talks to invest $10 billion in OpenAI, which created the AI chatbot ChatGPT. On February 13, the company laid off staff at LinkedIn—which it acquired in 2016— according to The Information. The cuts were in the recruiting department, though the total number laid off is not immediately clear, The Information 20% of CEO Kris announced on January 13 that it would let go of a fifth of its workforce amid a sagging crypto market and fallout from FTX's collapse. This is the second major round of firings for, which also had layoffs in July. "The reductions we made last July positioned us to weather the macro economic downturn, but it did not account for the recent collapse of FTX, which significantly damaged trust in the industry. It's for this reason, as we continue to focus on prudent financial management, we made the difficult but necessary decision to make additional reductions in order to position the company for long-term success," CEO Kris Marszalek wrote in a memo to employees. BlackRock: up to 3% of global workforceBlackRock CEO Larry FinkSpencer Platt/Getty ImagesBlackRock is cutting up to 500 roles in its first round of firings since 2019. Staff members were notified on January 11 about whether they were laid off. "Taking a targeted and disciplined approach to how we shape our teams, we will adapt our workforce to align even more closely with our strategic priorities and create opportunities for the immense talent inside the firm to develop and prosper," CEO Larry Fink and President Rob Kapito wrote in a memo to employees. Goldman Sachs: an estimated 6.5% of its global workforceGoldman Sachs is laying off an expected 3,200 employees.Photo by Michael M. Santiago/Getty ImagesGoldman Sachs began laying off employees on Jan. 11, with cuts expected to impact an estimated 6.5% of the company's global workforce — or roughly 3,200 staffers — a source told Insider. The company previously slashed roles on its media and tech teams in September 2022, and it was expected to issue further reductions in the first half of January. The cost-cutting efforts from the investment banking giant mirror reductions from competitors including Morgan Stanley and Citi, which also laid off employees in 2022. "We continue to see headwinds on our expense lines, particularly in the near term," Goldman Sachs CEO David Solomon said at a conference in December. "We've set in motion certain expense mitigation plans, but it will take some time to realize the benefits. Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set."   BNY Mellon: 1,500 jobsBNY Mellon CEO Robin VinceBNY MellonBNY Mellon is planning to cut approximately 3% of its workforce, or 1,500 jobs, according to the Wall Street Journal, which cited people familiar with the matter. The cuts will be primarily aimed at talent management roles, according to the report. BNY Mellon will reportedly plan to invest more in junior staff. Verily (part of Alphabet): reportedly 15% of workersAlphabet CEO Sundar PichaiJerod Harris/Getty ImagesVerily, which is Alphabet's healthcare unit, is laying off more than 200 employees, according to an email seen by the Wall Street Journal. The Journal reports that the company will also scale down the number of projects it works on in an effort to cut costs."We are making changes that refine our strategy, prioritize our product portfolio and simplify our operating model," Verily's CEO, Stephen Gillet, wrote in the email, according to the Journal.This is the first significant layoff done by Google's parent company, which had so far avoided the massive waves of job cuts done by other big tech giants like Amazon and Meta. DirecTV: 10% of management staffDirecTV.Karen Bleier/AFP/Getty ImagesDirecTV employees were told in the first week of January that the company would lay off several hundred workers in management roles.The satellite TV business has faced slowing revenues as more people choose to cut the cord and pay for streaming services over cable TV. "The entire pay-TV industry is impacted by the secular decline and the increasing rates to secure and distribute programming. We're adjusting our operations costs to align with these changes and will continue to invest in new entertainment products and service enhancements," a spokesperson for DirecTV told Insider. Coinbase: 950 workersCEO Brian Armstrong cited the downward trend in cryptocurrency prices and the broader economy as reasons for the layoffs.Patrick Fallon/Getty ImagesCoinbase announced on Tuesday, Jan. 10, that would lay off another 20% of its staff. The cuts came after the crypto company laid off over 1,000 employees in July. In a memo to employees, CEO Brian Armstrong said, "in hindsight, we could have cut further at that time," referencing the layoffs in July. Armstrong partially attributed the company's weakness to the "fallout from unscrupulous actors in the industry," likely referencing the alleged fraud that took place at FTX late last year under then-CEO Sam Bankman-Fried. Armstrong predicted "there could still be further contagion" from FTX in the crypto markets but assured remaining employees that Coinbase is well capitalized. Amazon: 18,000 employeesAmazon CEO Andy Jassy initially announced the company's latest round of layoffs in November.AmazonAmazon is in the midst of the most significant round of layoffs in the company's history. In a memo to employees, CEO Andy Jassy said the company would cut more than 18,000 workers in total — far more than what was initially expected based on reporting by the New York Times. Jassy cited "the uncertain economy" and rapid hiring as reasons for the layoffs. While most of Amazon's 1.5 million staff have warehouse jobs, the layoffs are concentrated in Amazon's corporate groups. Amazon's layoffs began late last year, though the Wall Street Journal reports cuts will continue through the first few weeks of 2023.Amazon's 18,000 jobs cuts are the largest of any major tech company amid the wave of recent layoffs.  Salesforce: 10% of its staffSalesforce said in the first month of 2023 that it would enact big job cuts.Noam Galai/Getty ImagesSalesforce co-CEO Marc Benioff announced on Jan. 4 that the software company plans to layoff 10% of its workforce — an estimated 7,000 employees — and close select offices as part of a restructuring and cost-cutting plan. "The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions," Benioff wrote in an email to staff. "With this in mind, we've made the very difficult decision to reduce our workforce by about 10 percent, mostly over the coming weeks."He continued: "As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we're now facing, and I take responsibility for that."Everlane: 17% of corporate employeesEverlane founder and executive chair Michael Preysman.Lars Ronbog/Getty Images for Copenhagen Fashion SummitEverlane is slashing 17% of its 175-person corporate workforce, and 3% of its retail staff."We know there will be some bumpiness over the next few weeks as we navigate a lot of change at once. We ask for your patience as we do right by our departing team members," CEO Andrea O'Donnell wrote to employees, according to an internal memo seen by Insider. In a statement to Insider, a company spokesperson said the decision was intended to "improve profitability in 2023 and continue our efforts to help leave the fashion industry cleaner than we found it."The e-commerce clothing company previously laid off nearly 300 workers, mostly in retail in March 2020 amid the outbreak of the Covid-19 pandemic.Vimeo: 11% of its workforceAnjali Sud, CEO of Vimeo, speaks during the company's direct listing on Nasdaq, Tuesday, May 25, 2021, in New York.AP Photo/Mark LennihanVimeo CEO Anjali Sud told employees on Jan. 4 that the company would layoff 11% of its staff, the video platform's second major round of layoffs in less than a year, after cutting 6% of employees in July"This was a very hard decision that impacts each of us deeply," Sud wrote in an email to staff. "It is also the right thing to do to enable Vimeo to be a more focused and successful company, operating with the necessary discipline in an uncertain economic environment."A spokesperson told Insider reduction is intended to assist with ongoing economic concerns and improve the company's balance sheet. Compass: size of layoffs not immediately disclosedCompass is letting go of more employees after two rounds of layoffs in the past eight months.CompassCompass CEO Robert Reffkin told staffers on Jan. 5 it would conduct more layoffs, following two previous rounds in the past eight months, as the brokerage continues to struggle with significant financial losses. "We've been focused over the last year on controlling our costs," Reffkin wrote in an email to employees. "As part of that work, today we reduced the size of some of our employee teams. While decisions like these are always hard, they are prudent and allow us to continue to build a long-term, successful business for all of you."While the size of the layoffs was not immediately disclosed, the brokerage let go of 450 corporate employees in June 2022, followed by an additional 750 people from its technology team in October 2022.   Stitch Fix: 20% of salaried jobsStitch Fix is laying off salaried employees.SOPA ImagesStitch Fix announced on Jan. 5 that it plans to slash 20% of its salaried workforce, the Wall Street Journal reported.The cuts come in tandem with the announcement that CEO Elizabeth Spaulding is stepping down, after less than 18 months at the helm of the struggling retail company."First as president and then as CEO, it has been a privilege to lead in an unprecedented time, and to chart the course for the future with the Stitch Fix team," Spaulding said in a statement. "It is now time for a new leader to help support the next phase."Stitch Fix founder Katrina Lake — who formerly served as chief executive and sits on the board of directors — will become interim CEO, the company said in a press release. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderMay 27th, 2023Related News

The world"s most powerful militaries in 2023, ranked

Global Firepower ranked 145 countries based on factors including their total available active military, weaponry, and overall resources. Pakistani military personnel stand beside a Shaheen III surface-to-surface ballistic missile during Pakistan Day military parade in Islamabad, Pakistan, in March 2017.REUTERS/Faisal Mahmood Global Firepower ranked 145 countries based on their military power. It said the US, China, and Russia rank highest, with some surprises further down the list. See below for the world's 25 strongest militaries in 2023. Global Firepower's 2023 Military Strength Ranking lists 145 countries in order of their overall strength.The ranking considers factors including the amount of military equipment and troops each country has, as well as their financial standing, geography, and avaliable resources.It uses these factors to generate a PowerIndex score, with a score closer to zero indicating a more powerful military.Here's how the top 25 countries stack up:25: GermanySoldiers of German armed forces Bundeswehr in Altengrabow, Germany, in January 2023.REUTERS/Fabrizio BenschWhile 25th overall, with a PowerIndex score of 0.3881, Global Firepower ranked Germany in the top 20 globally in areas including total aircraft fleet strength, helicopter strength, and its total armored fighting vehicle fleet.It said that as of January 2023, Germany had around 601 aircraft, 266 tanks, and 287 helicopters.The country also had the fifth-highest defense budget, of around $52.3 billion, behind only the US, China, Russia, and India. It also benefits from being a core part of NATO.24: ThailandThai soldiers march through Bangkok's financial district as they clash with anti-government protesters in May 2010.REUTERS/Damir SagoljGlobal Firepower ranked Thailand in the top 20 in terms of total available population fit for military service, and total available active military manpower.As of January 2023, Thailand's available manpower was over 36 million people, Global Firepower said, resulting in a PowerIndex score of 0.3738.Understandably, given its long coastlines, Thailand has a strong navy, and while it has no aircraft carriers, its total naval assets (292), which includes six corvettes and seven frigates, are the 8th largest in the world, Global Firepower said.23: TaiwanTaiwan's special forces move through colored smoke during a military exercise in Taipei.(AP Photo/Chiang Ying-ying, FileGlobal Firepower ranked Taiwan first in terms of total available reserve military manpower, with around 1.5 million reserve personnel as of April 2023, the equivalent of 6.4% of the country's population.Taiwan, which was given a PowerIndex score of 0.3639, also ranked highly in terms of air power, with 285 fighter aircraft and 91 attack helicopters, both the 8th largest fleets of those kinds in the world, according to Global Firepower.22: Saudi ArabiaGraduating soldiers from the Saudi special forces demonstrate their unarmed combat skills in Riyadh, June 2010.REUTERS/Fahad ShadeedGlobal Firepower ranked Saudi Arabia second when it came to its total aerial tanker aircraft fleet strength, and in the top 20 in areas including total helicopter strength, total oil production, natural gas production, and total available active military manpower.The country had 22 aerial tanker aircraft as of January 2023, with Saudi Arabia the second-biggest oil producer in the world, after the US.Its defense budget of $46 billion was also the eighth highest in the world.Global Firepower gave the country a PowerIndex score of 0.3626.21: SpainMembers of the Spanish Navy in Tyre, Lebanon, in September 2006.REUTERS/Alessandro BianchiGlobal Firepower ranked Spain as having the 21st most powerful military in the world in 2023, and a top-20 power in areas including its total transport fleet strength, total fighter/interceptor aircraft strength, number of submarines, and also its number of available ports.Spain is also one of the few countries in the world with a helicopter carrier, and its fleet of 11 frigates places it 7th globally in that category.The country, which was given a PowerIndex score of 0.3556, also had 140 fighter aircraft and two submarines as of January 2023.20: PolandA Polish soldier stands guard in front of a pile of burning illegal narcotics in Afghanistan's Ghazni province, November 25, 2008REUTERS/Shir AhmadGlobal Firepower ranked Poland in the top 20 in areas including its total helicopter strength, its armored fighting vehicle fleet strength, its total number of mine and countermine warfare ships, and its total number of submarine craft.It said that as of December 2022, Poland had 208 helicopters and more than 50,000 armored fighting vehicles, giving it a PowerIndex score of 0.3406.19: VietnamVietnamese soldiers during a welcoming ceremony for South Korean President Moon Jae-in at the Presidential Palace in Hanoi, Vietnam, in March 2018.REUTERS/Kham/PoolGlobal Firepower ranked Vietnam in the top 10 in areas including total available active military manpower and its total Self-Propelled Gun vehicle fleet strength.It said that as of January 2023, Vietnam had more than 53 million people who count as available military manpower, with an estimated 470,000 active military personnel (9th highest in the world), in addition to 2.5 million reserves.It gave Vietnam a PowerIndex score of 0.2855.18: IsraelA military flyover as part of an aerial show organized for Israel's 75th Independence Day celebrations, in Tel Aviv, Israel, April 26, 2023.REUTERS/Corinna KernEighteenth overall, Global Firepower ranked Israel in the top 20 in areas like its total fighter/interceptor aircraft strength, its total aircraft fleet strength, and its total available reserve military manpower.It said that Israel, which it gave a PowerIndex score of 0.2757, had 601 military aircraft as of January 2023, with 241 of those being fighters. It also had 2,200 tanks, as well as a stock of 650 pieces of self-propelled artillery.Israel ranks low when it comes to naval assets, with just 67 vessels, of which 45 are offshore patrol vessels, though its fleet of five submarines is the 16th largest in the world, according to Global Firepower.17: IranThe commander of the Iranian Army's Ground Force Gen. Kioumars Heidari among Iran-made drones on April 20, 2023.Iranian Army via APGlobal Firepower ranked Iran in the top 10 in areas including its total combat tank fleet strength, total self-propelled Multiple Launch Rocket Projector vehicle fleet strength, and its total available active military manpower.It said that as of January 2023, Iran had more than 4,000 tanks and more than 1,000 rocket projectors. Its active military personnel of 575,000 was the seventh largest in the world.Overall it gave the country a PowerIndex score of 0.2712.16: AustraliaTwo Australian Defence Force (ADF) S70A-9 Blackhawk helicopters fly in formation along Sydney's Parramatta River in 1999.REUTERSWith the sixth highest defense budget in the world, Global Firepower ranked Australia in the top 10 in areas including its total aerial tanker aircraft fleet strength, total number of helicopter carrier warships, total natural gas production, and its number of roadways, airports, and major ports.While its active military personnel was just 60,500 (61st largest), the country has two helicopter carriers (4th) and six aerial tanker aircraft, making its fleet the eighth largest in the worldIt gave Australia a PowerIndex score of 0.2567.15: UkraineUkrainian soldiers in a trench on the Vuhledar frontline in Donetsk Oblast, January 5, 2023.Diego Herrera Carcedo/Getty ImagesGlobal Firepower said Ukraine increased its ranking compared to last year due to its response to Russia's invasion, and the military help, including weapons, it is getting from its allies.Russia invaded Ukraine in February 2022, expecting to take the country in a matter of days. Instead, it was pushed back to the east, where both sides are now grinding it out on the battlefield, with no signs the conflict will end any time soon.Global Firepower ranked Ukraine 10th overall for its number of self-propelled Multiple Launch Rocket Projectors, saying that as of April 2023 it had 647 of them. It gave the country a PowerIndex score of 0.2516.14: EgyptEgyptian soldiers in front of the Great Giza pyramids on the outskirts of Cairo, February 9, 2011.REUTERS/Mohamed Abd El-GhanyGlobal Firepower ranked Egypt in the top 10 in areas including total available active military manpower, available paramilitary force strength, and total available reserve manpower, as well as the strength of its aircraft fleet.It said Egypt had more than 1,000 military aircraft as of January 2023, and that it had 300,000 people who can be considered part of its paramilitary forces.It gave Egypt a PowerIndex score of 0.2224.13: IndonesiaIndonesian army soldiers during a rehearsal for the 70th anniversary of Indonesia's military in Cilegon, Banten province, in October 2015.REUTERS/BeawihartaGlobal Firepower ranked Indonesia in the top 5 worldwide in areas including its total available population fit for military service, total available population reaching military age on an annual basis, and its total number of offshore patrol boats and corvette warships.It said that, as of January 2023, more than 112 million Indonesians were eligible for military service, 40.7% of the country's population.It gave Indonesia a PowerIndex score of 0.2221.12: BrazilA soldier stands guard outside the Brazilian embassy in Tegucigalpa in September 2009.REUTERS/Eliana AponteGlobal Firepower ranked Brazil in the top 5 in areas including its available population that is fit for military service, its total transport fleet strength, and its number of total serviceable airports. The country has over 4,000 airports, the second-highest in the world, as well as 17 ports and trade terminals, the fifth highest in this category.Global Firepower said that Brazil had more than 87 million people fit for military service as of January 2023, 40.3% of the country's population.It gave Brazil a PowerIndex score of 0.2151.11: TurkeyTurkish marines land near the Greek village of Kyparissia during a phase of the NATO "Dynamic Mix" exercise in June 2000.REUTERSGlobal Firepower said Turkey is "undoubtedly a rising military power, relying evermore on local industry to satisfy equally-local defense requirements on land, on sea, and in the air. "It ranked the country in the top 10 in areas including aircraft fleet strength, transport fleet strength, and helicopter strength. It said Turkey had 1,065 military aircraft as of January 2023, giving it a PowerIndex score of 0.2016.10: ItalyItalian Ariete tank of NATO enhanced Forward Presence battle group fires during military exercise "Silver Arrow" in Adazi, Latvia, in September 2021.REUTERS/Ints KalninsGlobal Firepower ranked Italy in the top 10 in areas including its aerial tanker aircraft fleet, total helicopter strength, attack aircraft strength, and its total number of aircraft carrier warships.It said Italy had 404 helicopters, including 58 attack helicopters, and two aircraft carrier warships as of January 2023.It gave Italy a PowerIndex score of 0.1973.9: FranceArmored cars drive down the Avenue des Champs-Élysées in Paris during the annual Bastille Day parade, July 14, 2005.REUTERSGlobal Firepower ranked France, ninth overall, in the top 10 in areas including total aerial tanker aircraft fleet, total helicopter fleet, and number of destroyer warships, as well as its total transport fleet strength.It said France had 438 helicopters, including 69 attack helicopters, and 10 destroyer warships as of January 2023, giving it a PowerIndex score of 0.1848.8: JapanA soldier from Japan's Ground Self-Defense Force participates in a beach invasion drill at Camp Pendleton, California, in February 2019.REUTERS/Mike BlakeGlobal Firepower ranked Japan in the top 10 for its aircraft fleet strength, total helicopter strength, and armored fighting vehicle fleet strength.An island nation, Japan was the highest-ranked nation when it came to major ports, and with four helicopter carriers it ranked second in that category, as well as second (behind only the US) when it came to the strength of its special-mission aircraft fleet – platforms specifically developed to undertake an over-battlefield role "by utilization of advanced onboard equipment or specialized trait."Global Firepower said that Japan had more than 1,400 military aircraft, and more than 111,000 vehicles as of January 2023, with a PowerIndex score of 0.1711.7: PakistanPakistani military personnel stand beside a Shaheen III surface-to-surface ballistic missile during Pakistan Day military parade in Islamabad, Pakistan, in March 2017.REUTERS/Faisal MahmoodPakistan rose from ninth overall in 2022 to seventh on the list in 2023.While Pakistan had more than 3,700 tanks, 1,400 military aircraft, nine submarines, and 654,000 active military personnel as of January 2023, Global Firepower said its rise was also due to this year's rankings having a bigger focus on natural resources and shared borders.Pakistan neighbors Afghanistan, China, India, and Iran, and has a lot of coal, as well as some petroleum and natural gas fields.Global Firepower ranked Pakistan in the top 10 in areas including its total available population fit for military service, total available active military manpower, and total aircraft fleet strength, with a PowerIndex score of 0.1694.  6: South KoreaUS and South Korean marines take part in an amphibious landing drill called the 'Ssangyong' exercise in Pohang, South Korea, in March 2023.REUTERS/Kim Hong-JiThe strength of South Korea's military is no surprise giving its decades-old tensions with North Korea.Global Firepower ranked South Korea in the top five for its aircraft fleet strength, armored fighting vehicle fleet strength, and its helicopter strength. It said the Asian nation had more than 133,000 vehicles and 739 helicopters, including 112 attack helicopters, as of January 2023.Overall, it gave South Korea a PowerIndex score of 0.1505.5: UKGraduating cadets are seen prior to inspection by Britain's King Charles III on April 14, 2023.Dan Kitwood/Pool Photo via APGlobal Firepower said the UK's position was boosted by its strengths in manpower and airpower, as well as its strong financial position. "It is also one of the few powers to operate more than one aircraft carrier," it added.The UK currently has two aircraft carriers, equal to the number that China, Italy, and India have, but far fewer than the 11 that the US operates.Global Firepower ranked the UK in the top 10 in areas including its total number of available ports and its total aerial tanker aircraft fleet strength, giving the country a PowerIndex score of 0.1435.4: IndiaAn Indian army soldier shouts commands to his colleagues in October 2007.REUTERS/Danish IsmailIndia's strength lies in the size of its population. Global Firepower ranked India second for available manpower, total available active military manpower, and paramilitary force strength.It said India's avaliable manpower was more than 653 million people, 47% of the country's population, as of January 2023. It also said that India had almost 1.5 million active military personnel.It gave India a PowerIndex score of 0.1025.3: ChinaWarships and fighter jets of Chinese People's Liberation Army (PLA) Navy take part in a military display in the South China Sea in April 2018.REUTERS/StringerGlobal Firepower ranked China first for available manpower and for the strength of its naval fleet.China has a "distinct advantage economically and by way of sheer manpower and has placed a decided focus on increasing (primarily through local means) naval, airpower, and land warfare capabilities," Global Firepower said in its latest ranking.If the trend continues, it added, China "will become the primary global military adversary to the United States."According to Global Firepower, China has available military manpower of more than 761 million people as of April 2023, along with 50 destroyer warships and 78 submarines, among many other military assets.It gave China a PowerIndex score of 0.0722. 2: RussiaA military parade on Victory Day in Red Square, Moscow, May 2022, to mark the 77th anniversary of the victory over Nazi Germany in World War II.REUTERS/Evgenia NovozheninaWhile its military's reputation has taken a hit since the invasion of Ukraine in February 2022, Russia retained its second-place spot on Global Firepower's ranking.Russia's invasion of Ukraine "showcased key limitations in Russian military capabilities despite its quantitative manpower and material advantage over neighboring Ukraine," Global Firepower said. It added that China was moving closer to taking the runnerup spot.Global Firepower ranked Russia second in areas including total aircraft fleet strength and total transport fleet strength. It said that, as of January 2023, Russia had more than 4,100 military aircraft.While Russia has faced a number of military setbacks since it launched its invasion of Ukraine, losing considerable quantities of equipment, notably tanks, its airforce and navy has largely avoided damage.Overall, Global Firepower gave Russia a PowerIndex score of 0.0714.1: USMembers of the 82nd Airborne Division of the US Army at Pope Field ahead of deployment to Poland from Fort Bragg, North Carolina, in February 2022.AP Photo/Nathan PosnerGlobal Firepower said the US took the top spot as it "showcases commanding numbers in key material, financial, and resource categories."The US, which was given a PowerIndex score of 0.0712, leads the world technologically, it said, and is advanced in key medical, aerospace, and telecom sectors, while maintaining an edge in several major industry markets "allowing for a certain degree of self-sustainment."With 92 destroyers, 11 aircraft carriers, 13,300 aircraft, and 983 attack helicopters, as of April 2023, the country was ranked first in many areas, including the size of its aircraft fleet, number of warships, and its transport fleet strength.It also had by far the largest defense budget, of $761.7 billion, more than triple that of China in second place, which had a defense budget of $230 billion.Read the original article on Business Insider.....»»

Category: personnelSource: nytMay 27th, 2023Related News

Why Are US Military Personnel Heading To Peru?

Why Are US Military Personnel Heading To Peru? Authored by Nick Corbishley via, The ostensible goal of the operation is to provide “support and assistance to the Special Operations of the Joint Command of the Armed Forces and National Police of Peru,” including in regions recently engulfed in violence.  Unbeknown, it seems, to most people in Peru and the US (considering the paucity of media coverage in both countries), US military personnel will soon be landing in Peru. The plenary session of Peru’s Congress last Thursday (May 18) authorised the entry of US troops onto Peruvian soil with the ostensible purpose of carrying out “cooperation activities” with Peru’s armed forces and national police. Passed with 70 votes in favour, 33 against and four abstentions, resolution 4766 stipulates that the troops are welcome to stay any time between June 1 and December 31, 2023. The number of US soldiers involved has not been officially disclosed, at least as far as I can tell, though a recent statement by Mexico’s President Andrés Manuel Lopéz Obrador, who is currently person non grata in Peru, suggests it could be around 700. The cooperation and training activities will take place across a wide swathe of territory including Lima, Callao, Loreto, San Martín, Huánuco, Ucayali, Pasco, Junín, Huancavelica, Iquitos, Pucusana, Apurímac, Cusco and Ayacucho. The last three regions, in the south of Peru, together with Arequipa and Puno, were the epicentre of huge political protests, strikes and road blocks from December to February after Peru’s elected President Pedro Castillo was toppled, imprisoned and replaced by his vice-president Dina Boluarte. The protesters’ demands included: The release of Castillo New elections A national referendum on forming a Constitutional Assembly to replace Peru’s current constitution, which was imposed by former dictator Alberto Fujimori following his self-imposed coup of 1992 Brutal Crackdown on Protests Needless to say, none of these demands have been met. Instead, Peru’s security forces, including 140,000 mobilised soldiers, unleashed a brutal crackdown that culminated in the deaths of approximately 70 people. A report released by international human rights organization Amnesty International in February drew the following assessment: “Since the beginning of the massive protests in different areas of the country in December 2022, the Army and National Police of Peru (PNP) have unlawfully fired lethal weapons and used other less lethal weapons indiscriminately against the population, especially against Indigenous people and campesinos (rural farmworkers) during the repression of protests, constituting widespread attacks.” As soon as possibly next week, an indeterminate number of US military personnel could be joining the fracas. According to the news website La Lupa, the purported goal of their visit is to provide “support and assistance to the Special Operations of the Joint Command of the Armed Forces and National Police of Peru” during two periods spanning a total of seven months: from June 1 to September 30, and from October 1 to December 30, 2023. The secretary of the Commission for National Defence, Internal Order, Alternative Development and the Fight Against Drugs, Alfredo Azurín, was at pains to stress that there are no plans for the US to set up a military base in Peru and that the entry of US forces “will not affect national sovereignty.” Some opposition congressmen and women begged to differ, arguing that the entry of foreign forces does indeed pose a threat to national sovereignty. They also lambasted the government for passing the resolution without prior debate or consultation with the indigenous communities. The de facto Boluarte government and Congress are treating the arrival of US troops as a perfectly routine event. And it is true that the US military has long held a presence in Peru. For example, in 2017, U.S. personnel took part in military exercises held jointly with Colombia, Peru and Brazil in the “triple borderland” of the Amazon region. Also, the US Navy operates a biosafety-level 3 biomedical research laboratory close to Lima as well as two other (biosafety-level 2) laboratories in Puerto Maldonado. But the timing of the operation raising serious questions. After all, Peru is currently under the control of an unelected government that is heavily supported by Washington but overwhelmingly rejected by the Peruvian people. The crackdown on protests in the south of the Peru by the country’s security forces — the same security forces that US military personnel will soon be joining — has led to dozens of deaths. Peru’s Congress is refusing to call new elections in total defiance of public opinion. Just a few days ago, the country’s Supreme Court issued a ruling that some legal scholars have interpreted as essentially criminalising political protest. As Peru’s civilian institutions fight among themselves, Peru’s armed forces — the last remaining “backbone” in the country, according to Mexican geopolitical analyst Alfredo Jalife — has taken firm control. And lest we forget, Peru is home to some of the very same minerals that the US military has identified as strategically important to US national security interests, including lithium. Also, as I noted in my June 22, 2021 piece, Is Another Military Coup Brewing in Peru, After Historic Electoral Victory for Leftist Candidate?, while Peru’s largest trading partner is China, its political institutions — like those of Colombia and Chile — remain tethered to US policy interests: Together with Chile, it’s the only country in South America that was invited to join the Trans-Pacific Partnership, which was later renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership after Donald Trump withdrew US participation. Given as much, the rumours of another coup in Peru should hardly come as a surprise. Nor should the Biden administration’s recent appointment of a CIA veteran as US ambassador to Peru, as recently reported by Vijay Prashad and José Carlos Llerena Robles: Her name is Lisa Kenna, a former adviser to former US Secretary of State Mike Pompeo, a nine-year veteran at the Central Intelligence Agency (CIA), and a US secretary of state official in Iraq. Just before the election, Ambassador Kenna released a video, in which she spoke of the close ties between the United States and Peru and of the need for a peaceful transition from one president to another. It seems more than likely that Kenna played a direct role in the not-so-peaceful transition from President Castillo to de facto President Boluarte, having met with Peru’s then-Defence Minister Gustavo Bobbio Rosas on December 6, the day before Pedro Castillo was ousted, to tackle “issues of bilateral interest”. On a Knife’s Edge After decades of stumbling from crisis to crisis and government to government, Peru rests on a knife’s edge. When Castillo, a virtual nobody from an Andean backwater who had played an important role in the teachers’ strikes of 2017, rode to power on a crest of popular anger at Peru’s hyper-corrupt establishment parties in June 2021, Peru’s legions of poor and marginalised hoped that positive changes would follow. But it was not to be. Castillo was always an outsider in Lima and was out of his depth from day one. He had zero control over Congress and failed miserably to overcome rabid right-wing opposition to his government. Even in his first year in office he faced two impeachment attempts. As Manolo De Los Santos wrote in People’s Dispatch, Peru’s largely Lima-based political and business elite could never accept that a former schoolteacher and farmer from the high Andean plains could become president. On December 7, they finally got what they wanted: Castillo’s impeachment. Just hours before a third impeachment hearing, he declared on national television that he was dissolving Congress and launching an “exceptional emergency government” and the convening of a Constituent Assembly. It was a preemptive act of total desperation from a man who held no sway with the military or judiciary, had zero control over Congress, and had even lost the support of his own party. Hours later, he was impeached, arrested by his own security detail and taken to jail, where he remains to this day. Castillo may be out of the picture but political instability continues to reign in Peru. The de facto Boluarte government and Congress are broadly despised by the Peruvian people. According to the latest poll by the Institute of Peruvian Studies (IEP), 78% of Peruvians disapprove of Boluarte’s presidency while only 15% approve. Congress is even less popular, with a public disapproval rate of 91%. Forty-one percent believe that the protests will increase while 26% believe they will remain the same. In the meantime, Peru’s Congress continues to block general elections. Peru’s “Strategic” Resources  As regular readers know, EU and US interest in Latin America is rising rapidly as the race for lithium, copper, cobalt and other elements essential for the so-called “clean” energy transition heats up. It is a race that China has been winning pretty handily up until now. Peru is not only one of China’s biggest trade partners in Latin America; it is home to the only port in Latin America that is managed entirely by Chinese capital. And while Peru may not form part of the Lithium Triangle (Bolivia, Argentina and Chile), it does boast significant deposits of the white metal. By one estimate, it is home to the sixth largest deposits of hard-rock lithium in the world. It is also the world’s second largest producer of copper, zinc and silver, three metals that are also expected to play a major role in supporting renewable energy technologies. In other words, there is a huge amount at stake in how Peru evolves politically as well as the economic and geopolitical alliances it forms. Also, its direct neighbour to the north, Ecuador, is undergoing a major political crisis that is likely to spell the end of the US-aligned Guillermo Lasso government and a handover of power to Rafael Correa’s party and its allies. And the US government and military have made no secret of their interest in the mineral deposits that countries like Peru hold in their subsoil. In an address to the Washington-based Atlantic Council on Jan 19, Gen. Laura Richardson, head of the U.S. Southern Command, spoke gushingly of Latin America’s rich deposits of “rare earth elements,” “the lithium triangle — Argentina, Bolivia, Chile,” the “largest oil reserves [and] light, sweet crude discovered off Guyana,” Venezuela’s “oil, copper, gold” and the fact that Latin America is home to “31% of the world’s fresh water in this region.” She also detailed how Washington, together with US Southern Command, is actively negotiating the sale of lithium in the lithium triangle to US companies through its web of embassies, with the goal of “box[ing] out” US adversaries (i.e. China and Russia), concluding with the ominous words: “This region matters. It has a lot to do with national security. And we need to step up our game.” Which begs the question: is this the first step of the US government and military’s stepping-up-the-game process? The former president of Bolivia Evo Morales, who knows a thing or two about US interventions in the region, having been on the sharp end of a US-backed right-wing coup in 2019, certainly seems to think so. A few days ago, he tweeted the following message: The Peruvian Congress’ authorisation for the entry and stationing of US troops for 7 months confirms that Peru is governed from Washington, under the tutelage of the Southern Command. The Peruvian people are subject to powerful foreign interests mediated by illegitimate powers lacking popular representation. The greatest challenge for working people and indigenous peoples is to recover their self-determination, their sovereignty and their natural resources. With this authorization from the Peruvian right, we warn that the criminalization of protest and the occupation of US military forces will consolidate a repressive state that will affect sovereignty and regional peace in Latin America. Mexico’s President Andrés Manuel Lopéz Obrador, who refuses to acknowledge Boluarte (whom he calls the “great usurper”) as Peru’s president and has recently faced threats of direct US military intervention in Mexico’s drug wars from US Republican lawmakers, had a message for the US government this week:  “[Sending soldiers to Peru] merely maintains an interventionist policy that does not help at all in building fraternal bonds among the peoples of the American continent.” Unfortunately, the US government does not seem interested, if indeed it ever has been, in building fraternal bonds with the peoples of the American continent. Instead, it is set on upgrading the Monroe Doctrine for the 21st century. Its strategic rivals this time around are not Western European nations, which are now little more than US vassals (as a recent paper by the European Council of Foreign Relations, titled “The Art of Vassalisation”, all but admitted), but rather China and Russia. Tyler Durden Fri, 05/26/2023 - 23:20.....»»

Category: blogSource: zerohedgeMay 27th, 2023Related News

Here"s Why You Should Retain Globus Medical (GMED) Stock Now

Investors continue to be optimistic about Globus Medical (GMED) based on the strong performances across geographies and the pending NuVasive acquisition. Globus Medical, Inc. GMED is well-poised for growth in the coming quarters, backed by the strength of its international business and the pending merger with NuVasive. The company’s recently released 2023 first-quarter results generate investors’ optimism. However, mounting expenses and a competitive landscape do not bode well for Globus Medical.In the past year, this Zacks Rank #3 (Hold) stock has decreased 19.7% compared to the 0.1% rise of the industry and a 2.1% rise of the S&P 500 composite.The renowned medical device company has a market capitalization of $5.36 billion. Globus Medical projects a long-term estimated earnings growth rate of 12.7% compared with 13.8% of the industry. GMED’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.76%.Let’s delve deeper.UpsidesImpressive Q1 Results: Globus Medical ended the first quarter of 2023 with better-than-expected earnings and revenues. The company delivered its highest quarterly revenues with a 21% year-over-year increase at the constant currency rate (CER). Within the United States, the Spine business witnessed notable gains across its product portfolio in expandables, biologics, MIS screws, 3D printed implants and cervical offerings.Image Source: Zacks Investment ResearchThe robust performance of Enabling Technologies continued to be driven by ongoing robotic and imaging system sales. The rapid market interest and customer demand have positioned Excelsius3D, the company’s latest addition to the Excelsius Ecosystem, as a major growth driver in 2023.NuVasive Deal a Strategic One: On the first-quarter earnings call, the company provided an update regarding the pending merger with NuVasive. More than 99% of Globus Medical and NuVasive Class A shareholders have voted in support of the merger deal.Post regulatory approvals and the completion of the transaction, Globus Medical expects to deliver above 20% non-GAAP EPS accretion by the completion of the first full year following deal closure.International Business Holds Potential: In the first quarter, Globus Medical’s international revenues grew 24.7% as reported and 31.5% at CER. The growth was led by international spinal implant businesses mainly in Australia, Brazil, Poland, the United Kingdom, Spain and Germany.Excluding Japan, the company delivered 30% CER growth in the spinal implant business. Double-digit growth was registered in most markets, with strong growth in key markets.DownsidesEscalating Expenses: In the first quarter, SG&A expenses were up 21.5% from the year-ago quarter. The increase reflected higher personnel-related expenses, primarily driven by sales compensation, as well as higher meetings, travel and training expenses. Despite an increase in the adjusted operating profit, the adjusted operating margin contracted 55 basis points.A Competitive Landscape: The presence of several players made the musculoskeletal device market intensely competitive. With the presence of larger players like Zimmer Biomet, Stryker, Johnson & Johnson’s DePuy, Smith & Nephew and Medtronic, Globus Medical needs to constantly introduce or acquire new products to withstand competitive pressure and maintain its market share.Estimate TrendGlobus Medical has been witnessing a positive estimate revision trend for 2023. The Zacks Consensus Estimate for 2023 earnings per share (EPS) has moved up from $2.30 to $2.33 in the past 30 days.The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $1.12 billion. This suggests a 9.7% rise from the year-ago reported number.Key PicksSome better-ranked stocks in the broader medical space are Zimmer Biomet ZBH, Penumbra PEN and Hologic, Inc. HOLX.Zimmer Biomet has an earnings yield of 5.72% compared to the industry’s -2.31%. Zimmer Biomet’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 7.38%. Its shares have increased 6% against the industry’s 31.8% decline in the past year.ZBH sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Penumbra, sporting a Zacks Rank #1 at present, has an estimated growth rate of 64.1% for 2024. Penumbra shares have risen 114.8% compared with the industry’s 2.4% increase over the past year.PEN’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 109.4%.Hologic, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 4.84% compared to the industry’s -7.06%. Shares of HOLX have risen 3% compared with the industry’s 0.1% growth over the past year.Hologic’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 27.3%. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hologic, Inc. (HOLX): Free Stock Analysis Report Globus Medical, Inc. (GMED): Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH): Free Stock Analysis Report Penumbra, Inc. (PEN): Free Stock Analysis ReportTo read this article on click here.Zacks Investment Research.....»»

Category: topSource: zacksMay 26th, 2023Related News

Gap Inc. Reports First Quarter Fiscal 2023 Results

SAN FRANCISCO, May 25, 2023 /PRNewswire/ -- Gap Inc. (NYSE:GPS), a portfolio of purpose-led, billion-dollar lifestyle brands including Old Navy, Gap, Banana Republic, and Athleta, and the largest specialty apparel company in the U.S., today reported financial results for its first quarter ended April 29, 2023. "We continue to take the necessary actions to drive critical change at Gap Inc., ultimately getting us back on a path toward delivering consistent results long-term," said Bob Martin, Executive Chairman and Interim CEO, Gap Inc. "While the macro and consumer environment remain uncertain, Q1 underscores our ability to deliver improvements to the business including share gains at Old Navy and Gap Brand, adjusted operating margin expansion, reduction in inventory, and strength in our balance sheet. The need for lasting change is permeating the organization and I want to express my gratitude to our employees for embracing a new operating model and organizational structure, a renewed focus on our customer, and for their continued belief in our incredible brands." "The Gap Inc. Board of Directors and I have deep appreciation for and confidence in the work that has taken hold under Bobby Martin and the Leadership Team, with results already showing progress, and more importantly, a collective focus on continued improvement still ahead. As we are engaged toward the appointment of a new Gap Inc. CEO to carry this work into the future, we look forward to the time when we will introduce this great company's next leader - one who will bring passion, vision and an unwavering focus on the customer," said Mayo Shattuck, Lead Independent Director, Gap Inc. First Quarter Fiscal 2023 - Financial Results Net sales of $3.28 billion, down 6% compared to last year, inclusive of an estimated 1-point foreign exchange headwind and 2 percentage points of negative impact from the sale of Gap China. Net sales were in line with the company's expectations for a mid-single digit decline in the quarter. Comparable sales were down 3%. Store sales decreased 4% compared to last year. The company ended the quarter with 3,453 store locations in over 40 countries, of which 2,601 were company operated. Online sales decreased 9% compared to last year and represented 37% of total net sales. Reported gross margin was 37.1%. Excluding $4 million in restructuring costs, adjusted gross margin of 37.2% increased 570 basis points versus last year. Merchandise margin increased 600 basis points versus last year, or 610 basis points on an adjusted basis, due to lower air freight expense and improved promotional activity in the quarter, partially offset by inflationary cost headwinds. Rent, occupancy, and depreciation (ROD) deleveraged 40 basis points versus last year primarily due to lower online sales in the quarter. Reported operating loss was $10 million; reported operating margin of negative 0.3%. Adjusted operating income was $18 million, excluding a $47 million gain related to the sale of an office building and $75 million of restructuring costs; adjusted operating margin of 0.5%. The effective tax rate was 10%. Reported net loss of $18 million; reported diluted loss per share of $0.05. Adjusted net income of $3 million, excluding the gain on sale and restructuring costs; adjusted diluted earnings per share of $0.01. First Quarter Fiscal 2023 – Balance Sheet and Cash Flow Highlights Ended the quarter with cash and cash equivalents of $1.2 billion, an increase of 38% from the prior year. Net cash from operating activities was $15 million. Free cash flow, defined as net cash from operating activities less purchases of property and equipment, was negative $102 million. Ending inventory of $2.3 billion was down 27% compared to last year. Capital expenditures were $117 million. Paid first quarter dividend of $0.15 per share, totaling $55 million. Board of Directors approved second quarter fiscal 2023 dividend of $0.15 per share. Additional information regarding adjusted gross margin, adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, and free cash flow, all of which are non-GAAP financial measures, is provided at the end of this press release along with a reconciliation of these measures from the most directly comparable GAAP financial measures for the applicable period. First Quarter Fiscal 2023 – Global Brand Results Old Navy: Net sales of $1.8 billion, down 1% compared to last year. Sales in the quarter were driven by continued strength in the women's category offset by continued softness in the active and kid's categories as well as continued slower demand from the lower-income consumer. Comparable sales were down 1%. Gap: Net sales of $692 million, down 13% compared to last year. Excluding the negative impact from the sale of Gap China, the shutdown of Yeezy Gap and foreign exchange headwinds, net sales were down 1% versus last year driven by continued strength in the women's category offset by continued softness in the active and kid's categories as well as strategic store closures in North America. Comparable sales were up 1%. Banana Republic: Net sales of $432 million, down 10% on top of 24% growth last year. Sales in the quarter were impacted as the brand lapped outsized growth last year driven by the shift in consumer preferences. Comparable sales were down 8%. Athleta: Net sales of $321 million, down 11% compared to last year. Sales in the quarter were impacted by continued product acceptance challenges. Comparable sales were down 13%. Fiscal 2023 Outlook "As we look to the remainder of fiscal 2023, we believe we remain well positioned to drive continued margin expansion and improved cash flow relative to last year despite what we know continues to be an uncertain macro and consumer environment," said Katrina O'Connell, Executive Vice President and Chief Financial Officer, Gap Inc. "We continue to believe we are taking the right steps toward positioning Gap Inc. back on its path towards sustainable, profitable growth and delivering value for our shareholders over the long term." The company's outlook takes into consideration the continued uncertain consumer and macro environment. The company is estimating second quarter net sales could decrease in the mid to high-single digit range compared to last year's net sales of $3.86 billion.  As a reminder, the sale of Gap China to Baozun Inc. closed on January 31, 2023. Second quarter 2022 net sales included approximately $60 million in sales for Gap China. The company continues to anticipate that fiscal 2023 net sales could decrease in the low to mid-single digit range compared to last year's net sales of $15.6 billion.  As a reminder, fiscal 2022 net sales included approximately $300 million in sales for Gap China. Fiscal 2023 will include a 53rd week estimated to positively impact net sales by $150 million.    The company expects second quarter and fiscal 2023 gross margin expansion compared to the prior year. At the estimated level of sales described above, the company is planning adjusted SG&A of approximately $1.3 billion in the second quarter and continues to anticipate approximately $5.2 billion for fiscal 2023.  The company now expects fiscal 2023 capital expenditures in the range of $500 million to $525 million, compared to its prior range of $500 million to $550 million, reflecting lower capital project investments and fewer Old Navy and Athleta store openings than previously contemplated. Webcast and Conference Call InformationCammeron McLaughlin, Head of Investor Relations at Gap Inc., will host a conference call to review the company's first quarter fiscal 2023 results beginning at approximately 2:00 p.m. Pacific Time today.  Ms. McLaughlin will be joined by Interim Chief Executive Officer Bob Martin and Chief Financial Officer Katrina O'Connell. A live webcast of the conference call will be available online at A replay of the webcast will be available at the same location. Non-GAAP Disclosure This press release and related conference call include financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP) and are therefore referred to as non-GAAP financial measures. The non-GAAP measures described below are intended to provide investors with additional useful information about the company's financial performance, to enhance the overall understanding of its past performance and future prospects and to allow for greater transparency with respect to important metrics used by management for financial and operating decision-making. The company presents these non-GAAP financial measures to assist investors in seeing its financial performance from management's view and because it believes they provide an additional tool for investors to use in computing the company's core financial performance over multiple periods with other companies in its industry. Additional information regarding the intended use of each non-GAAP measure included in this press release and related conference call is provided in the tables to this press release. The non-GAAP measures included in this press release and related conference call are adjusted gross margin, adjusted operating expenses/adjusted SG&A, adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, and free cash flow, as well as expected adjusted operating expenses/adjusted SG&A. These non-GAAP measures exclude the impact of certain items that are set forth in the tables to this press release. Also note that a reconciliation of expected adjusted operating expenses/adjusted SG&A is not provided, in reliance on the exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, because a comparable GAAP measure is not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be necessary for such reconciliation. Namely, we are not able to reliably predict the impact of many of the costs and expenses that may be incurred in the future that could impact operating expenses/SG&A. In addition, we believe such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. The variability of those costs and expenses may be material and have a significant and unpredictable impact on our future GAAP results. The non-GAAP measures used by the company should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP and may not be the same as similarly titled measures used by other companies due to possible differences in method and in items or events being adjusted. The company urges investors to review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures included in the tables to this press release below, and not to rely on any single financial measure to evaluate its business. The non-GAAP financial measures used by the company have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Forward-Looking StatementsThis press release and related conference call contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as "expect," "anticipate," "believe," "estimate," "intend," "plan," "project," and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding the following: actions to drive critical change, improve the trajectory of our business and deliver consistent and long-term results; improving near-term execution and brand performance; simplifying our operating model and structure; modernizing our core capabilities; stabilizing Old Navy's core and elevating the brand's execution; expanding the BR Home collection; improving our long-term sales and margin performance and creative and product execution; expected cost savings from actions to optimize our operating model and structure, including employee-related actions, and the expected timing of recognizing the benefits thereof; additional opportunities to rationalize investments and further optimize our cost structure; our positioning in fiscal 2023, including to drive margin expansion and improved cash flow; Old Navy's positioning and value proposition; making meaningful change to Athleta's assortments; effectively managing inventory and integrating pack and hold inventory in fiscal 2023; expected ending inventory in fiscal 2023; expected cash flow trends through fiscal 2023; paying down our asset-backed line of credit in fiscal 2023; our dividend strategy; the expected impact of the Gap China transition, foreign exchange headwinds and an additional fiscal week on second quarter and fiscal 2023 net sales; expected second quarter and fiscal 2023 net sales; expected second quarter and fiscal 2023 adjusted gross margin; expected gross margin improvement in fiscal 2023; expected air freight expense in the second quarter and fiscal 2023; expected inflationary impacts, including commodity costs and ocean freight rates, in the second quarter and fiscal 2023; expected inventory positions and promotional activity in the second quarter and fiscal 2023; expected ROD in the second quarter and fiscal 2023; expected adjusted operating expenses/adjusted SG&A in the second quarter and fiscal 2023; incentive compensation and wage inflation in the second quarter and fiscal 2023; expected capital expenditures in fiscal 2023; expected capital project investments in fiscal 2023; and expected store openings and closings in fiscal 2023. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following risks, any of which could have an adverse effect on our financial condition, results of operations, and reputation: the overall global economic and geopolitical environment and the impact on consumer spending patterns; the risk that inflationary pressures continue to negatively impact gross margins or that we are unable to pass along price increases; the risk that restructuring our business may not generate the intended benefits and projected cost savings to the extent or on the timeline as expected;  the risk that we or our franchisees may be unsuccessful in gauging apparel trends and changing consumer preferences or responding with sufficient lead time; the risk that we may be unable to manage or protect our inventory effectively and the resulting impact on our gross margins, sales and results of operations; the risk that we fail to manage key executive succession and retention and to continue to attract and retain qualified personnel; the risk that we fail to maintain, enhance, and protect our brand image and reputation; the highly competitive nature of our business in the United States and internationally; engaging in or seeking to engage in strategic transactions that are subject to various risks and uncertainties; the risk that our investments in customer, digital, and omni-channel shopping initiatives may not deliver the results we anticipate; the risks to our business, including our costs and supply chain, associated with global sourcing and manufacturing; the risks to our reputation or operations associated with importing merchandise from foreign countries, including failure of our vendors to adhere to our Code of Vendor Conduct; the risk of data or other security breaches or vulnerabilities that may result in increased costs, violations of law, significant legal and financial exposure, and a loss of confidence in our security measures; the risk that failures of, or updates or changes to, our IT systems may disrupt our operations; natural disasters, public health crises, political crises, negative global climate patterns, or other catastrophic events; the ongoing conflict between Russia and Ukraine and the impact on global market stability; the risk that our efforts to expand internationally may not be successful; the risk that our franchisees and licensees could impair the value of our brands or fail to make payments for which we are liable; the risk that trade matters could increase the cost or reduce the supply of apparel available to us; the risk of foreign currency exchange rate fluctuations; the risk that our comparable sales and margins may experience fluctuations, that the seasonality of our business may experience changes, or that we may fail to meet financial market expectations; the risk that we or our franchisees may be unsuccessful in identifying, negotiating, and securing new store locations and renewing, modifying, or terminating leases for existing store locations effectively; the adverse effects of climate change on our operations and those of our franchisees, vendors and other business partners; the risk that we will not be successful in defending various proceedings, lawsuits, disputes, and claims; our failure to comply with applicable laws and regulations and changes in the regulatory or administrative landscape; our failure to satisfy regulations and market expectations related to our ESG initiatives; reductions in income and cash flow from our credit card arrangement related to our private label and co-branded credit cards; the risk that worsening global economic and geopolitical conditions could result in changes to the assumptions and estimates used when preparing the Condensed Consolidated Financial Statements; the risk that changes in our business structure, our performance or our industry could result in reductions in our pre-tax income or utilization of existing tax carryforwards in future periods, and require additional deferred tax valuation allowances; the risk that changes in the geographic mix and level of income or losses, the expected or actual outcome of audits, changes in deferred tax valuation allowances, and new legislation could impact our effective tax rate; the risk that our level of indebtedness may impact our ability to operate and expand our business; the risk that we and our subsidiaries may be unable to meet our obligations under our indebtedness agreements; the risk that changes in our credit profile or deterioration in market conditions may limit our access to the capital markets; the risk that the adoption of new accounting pronouncements will impact future results; and the risk that additional information may arise during our close process or as a result of subsequent events that would require us to make adjustments to our financial information. Additional information regarding factors that could cause results to differ can be found in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2023, as well as our subsequent filings with the Securities and Exchange Commission. These forward-looking statements are based on information as of May 25, 2023. We assume no obligation to publicly update or revise our forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.  About Gap Inc.Gap Inc., a collection of purpose-led lifestyle brands, is the largest American specialty apparel company offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. The company uses omni-channel capabilities to bridge the digital world and physical stores to further enhance its shopping experience. Gap Inc. is guided by its purpose, Inclusive, by Design, and takes pride in creating products and experiences its customers love while doing right by its employees, communities, and planet. Gap Inc. products are available for purchase worldwide through company-operated stores, franchise stores, and e-commerce sites. Fiscal year 2022 net sales were $15.6 billion. For more information, please visit    Investor Relations Contact: Nina Media Relations Contact: Megan   The Gap, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS UNAUDITED ($ in millions) April 29, 2023 April 30, 2022 ASSETS Current assets:     Cash and cash equivalents $              1,170 $                 845     Merchandise inventory 2,299 3,169     Other current assets 814 991         Total current assets 4,283 5,005 Property and equipment, net  2,646 2,791 Operating lease assets 3,123 3,587 Other long-term assets 880 874         Total assets $            10,932 $            12,257 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:     Accounts payable  $              1,199 $              1,599     Accrued expenses and other current liabilities 1,051 1,127     Current portion of operating lease liabilities 658 717     Income taxes payable 10 29         Total current liabilities 2,918 3,472 Long-term liabilities:.....»»

Category: earningsSource: benzingaMay 25th, 2023Related News

Why Is Moody"s (MCO) Up 1.4% Since Last Earnings Report?

Moody's (MCO) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. A month has gone by since the last earnings report for Moody's (MCO). Shares have added about 1.4% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Moody's due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Moody's Q1 Earnings & Revenues Beat, Costs Rise Y/YMoody's reported first-quarter 2023 adjusted earnings of $2.99 per share, which handily beat the Zacks Consensus Estimate of $2.31. The bottom line also grew 3% from the year-ago quarter figure.Lower operating expenses and Moody’s Analytics segment’s solid performance supported Moody’s results. The company’s liquidity position was robust during the quarter. Yet, subdued issuance volume was a major headwind, which hurt Moody’s top line.After taking into consideration certain non-recurring items, net income attributable to Moody's was $501 million or $2.72 per share, up from $498 million or $2.68 per share in the prior-year quarter.Revenues Down, Costs RiseQuarterly revenues were $1.47 billion, which outpaced the Zacks Consensus Estimate of $1.43 billion. The top line, however, declined 3% year over year. Foreign currency translation unfavorably impacted revenues by 2%.Total expenses were $916 million, up 6%.Adjusted operating income of $656 million was down 11%. Adjusted operating margin was 44.6%, down from 48.2% a year ago.Mixed Segment PerformanceMoody’s Investors Service revenues declined 11% year over year to $733 million. The fall was mainly due to muted capital market activities. Foreign currency translation affected the segment’s revenues by 1%.Moody’s Analytics revenues grew 6% to $747 million. This was mainly driven by the steady demand for Know Your Customer solutions and credit research. Foreign currency translation unfavorably impacted the segment’s revenues by 3%.Strong Balance SheetAs of Mar 31, 2023, Moody’s had total cash, cash equivalents and short-term investments of $2.2 billion, up from $1.86 billion as of Dec 31, 2022.The company had $7.5 billion in outstanding debt and $1.25 billion in additional borrowing capacity under the revolving credit facility.Share Repurchase UpdateDuring the quarter, Moody's repurchased 0.1 million shares at an average price of $297.30 per share.2023 GuidanceMoody’s expects adjusted earnings in the range of $9.50-$10.00 per share, up from the earlier projection of $9.00-$9.50. On a GAAP basis, earnings are projected within $8.45-$8.95 per share, rising from the prior target of $8.05-$8.55.Moody’s projects revenues to increase in the mid-to-high-single-digit percent range.Operating expenses are expected to rise in the mid-single-digit percent range, an increase from the low-single-digit percent range provided previously.Net interest expenses are expected to be $275-$295 million, changed from the previous guidance range of $290-$310 million.Adjusted operating margin is expected to be 44-45%. The operating margin is likely to be nearly 37%.Moody’s expects cash flow from operations in the range of $1.7-$1.9 billion. Similarly, free cash flow is projected to be $1.4-$1.6 billion.The company will likely repurchase shares worth $250 million.The effective tax rate is projected to be 15-17%, changed from the 20-22% projected earlier.Segment Outlook for 2023MIS segment revenues are anticipated to increase low-to-mid-single-digit percent range.Adjusted operating margin is expected to be mid-50s.Coming to the MA segment, Moody’s anticipates revenues to grow 10%.Adjusted operating margin is expected to be roughly 31%. Further, the segment’s organic Annualized Recurring Revenue (ARR) is projected to rise in the low-double-digit percent range.2022-2023 Geolocation Restructuring ProgramManagement expects the program to help the company further adapt to the new global workplace and talent realities. Also, the restructuring plan will accelerate a number of ongoing cost-efficiency initiatives, and includes real estate optimization and increased utilization of lower-cost operational hubs.The program is expected to result in annualized savings of $100-$135 million per year.The exit from certain leased office spaces is expected to result in $50-$70 million of pre-tax charges to either terminate or sublease the affected real estate leases.The program also includes $75-$100 million of pre-tax personnel-related restructuring charges, an amount that includes severance and related costs primarily determined under the company’s existing severance plans.Cash outlays associated with the program are expected to be $75-$100 million, which are expected to be paid through 2024.The program is expected to be substantially complete by the end of 2023.Medium-Term TargetsMoody’s projects total revenue growth of at least 10%, with adjusted operating margin in the low-50s range. Adjusted earnings per share are anticipated to increase in the low double-digit percentage range.MA segment revenues are projected to grow in the low-to-mid teen percentage range, with adjusted operating margin in the mid-30s range.MIS segment revenues are anticipated to rise in the low-to-mid-single-digit percentage range, with adjusted operating margin in the low-60s range.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.VGM ScoresAt this time, Moody's has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Moody's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerMoody's is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Synchrony (SYF), a stock from the same industry, has gained 3.2%. The company reported its results for the quarter ended March 2023 more than a month ago.Synchrony reported revenues of $4.05 billion in the last reported quarter, representing a year-over-year change of +6.9%. EPS of $1.35 for the same period compares with $1.73 a year ago.Synchrony is expected to post earnings of $1.19 per share for the current quarter, representing a year-over-year change of -25.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Synchrony. Also, the stock has a VGM Score of A. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Moody's Corporation (MCO): Free Stock Analysis Report Synchrony Financial (SYF): Free Stock Analysis ReportTo read this article on click here.Zacks Investment Research.....»»

Category: topSource: zacksMay 25th, 2023Related News

Universal Health Services (UHS) Down 10.8% Since Last Earnings Report: Can It Rebound?

Universal Health Services (UHS) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. It has been about a month since the last earnings report for Universal Health Services (UHS). Shares have lost about 10.8% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Universal Health Services due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Universal Health Q1 Earnings Beat on Higher AdmissionsUniversal Health Services reported first-quarter 2023 adjusted earnings per share (EPS) of $2.34, which surpassed the Zacks Consensus Estimate by 8.8% and our estimate of $2.14. Additionally, the bottom line grew 8.8% year over year.Net revenues of Universal Health advanced 5.3% year over year to $3,468 million in the quarter under review. The top line beat the consensus mark by 1.3% and our estimate of $3,415.5 million.The strong quarterly results of UHS were supported by improved patient admissions at its acute care and behavioral healthcare facilities as well as rising patient days. However, the upside was partly offset by an elevated expense level.Quarterly Operational UpdateAdjusted earnings before interest, taxes, depreciation & amortization (EBITDA), net of net income attributable to noncontrolling interests (NCI), amounted to $421.1 million. The metric does not consider the impact of the provision for asset impairment and other (income) expenses, net. The figure improved 11% year over year and outpaced our estimate of $387.6 million.Total operating costs escalated 4.2% year over year to $3,188.8 million in the first quarter. This was mainly due to increased salaries, wages and benefits, other operating expenses, supplies, lease and rental expenses. The continued shortage of nurses and other medical personnel throughout the United States kept the company under pressure.Segmental UpdateAcute Care Hospital ServicesAdjusted admissions (adjusted for outpatient activity) grew 10.5% year over year on a same-facility basis in the quarter under review, while adjusted patient days increased 3.7% year over year. Net revenues derived from Universal Health’s acute care services witnessed a 3.5% year-over-year uptick on a same-facility basis.Behavioral Health Care ServicesIn the first quarter, adjusted admissions increased 7.5% year over year on a same-facility basis. Adjusted patient days advanced 4.7% year over year. Net revenues stemming from the behavioral healthcare services of UHS rose 9.7% year over year.Financial Update (as of Mar 31, 2023)Universal Health exited the first quarter with cash and cash equivalents of $110 million, which increased from $102.8 million at 2022-end.As part of the $1.2-billion revolving credit facility of UHS, net of outstanding borrowings and letters of credit, there remains an aggregate available borrowing capacity of $875 million at the first-quarter end.Total assets of $13,556 million increased from $13,494.2 million at 2022-end.Long-term debt amounted to $4,707.3 million, down from $4,726.5 million at 2022-end. Short-term debt was at $96.2 million.Total equity of $6,052.4 million rose 1.5% from the figure at 2022-end.In the first quarter of 2023, net cash provided by operating activities declined 34.7% from the 2022-end level to $290.8 million. The plunge in this metric was caused by unfavorable other working capital accounts.Share Repurchase UpdateUniversal Health bought back shares worth roughly $78.7 million in the first quarter. It had leftover funds of around $869 million under its repurchase authorization as of Mar 31, 2023.2023 GuidanceEarlier management provided guidance for net revenues between $14,044 million and $14,314 million. This indicates an improvement of around 4.8%-6.8% from the 2022 figure of $13,399.4 million.Adjusted EBITDA, net of NCI, was earlier anticipated in the band of $1,662-$1,753 million, the midpoint of which suggests 2.7% growth from the 2022 figure of $1,662 million.UHS projected adjusted EPS in the range of $9.50-$10.50 for 2023, the midpoint of which implies 1.2% growth from the 2022 figure of $9.88.Depreciation and amortization were estimated at $594.4 million. Interest expenses were projected at around $198 million. Capital expenditures were expected within $725 and $875 million.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates revision.VGM ScoresCurrently, Universal Health Services has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Universal Health Services has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Health Services, Inc. (UHS): Free Stock Analysis ReportTo read this article on click here.Zacks Investment Research.....»»

Category: topSource: zacksMay 25th, 2023Related News

Why Is Visa (V) Down 2.6% Since Last Earnings Report?

Visa (V) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. It has been about a month since the last earnings report for Visa (V). Shares have lost about 2.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Visa due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Visa's Q2 Earnings Beat Mark on Rising Payments VolumeVisa reported fiscal second-quarter 2023 earnings of $2.09 per share, which beat the Zacks Consensus Estimate of $1.97 by 6.1% and our estimate of $1.92. The bottom line improved 17% year over year.Net revenues amounted to $7,985 million, which advanced 11% year over year in the quarter under review. The top line outpaced the consensus mark by 3% and our estimate of $7,596.9 million.The solid quarterly results benefited on the back of higher payments and cross-border volumes and processed transactions. Steady cross-border travel growth and lower-than-expected client incentives aided the results, partially offset by higher costs.Operational PerformanceVisa’s payments volume grew 10% year over year on a constant-dollar basis in the fiscal second quarter. Processed transactions (implying transactions processed by Visa) totaled 50.1 billion, which rose 12% year over year and beat our estimate of 49 billion.On a constant-dollar basis, the cross-border volume of Visa climbed 24% year over year in the quarter under review. Excluding transactions within Europe, its cross-border volume (that boosts a company’s international transaction revenues) advanced 32% year over year on a constant-dollar basis.Service revenues improved 7% year over year to $3.8 billion during the March quarter on the back of better payment volume. The metric came higher than the Zacks Consensus Estimate and our estimate of $3.6 billion.V’s data processing revenues of $3.8 billion grew 10% year over year in the quarter under review, meeting our estimate and beating the consensus mark of $3.7 billion.International transaction revenues advanced 24% year over year to $2.7 billion, which outpaced the Zacks Consensus Estimate by 1.7% and our estimate of $2.5 billion on higher cross-border volume. Other revenues of $551 million climbed 16% year over year, which came lower than the consensus mark of $570.6 million but beat our estimate of $514.1 million.Client incentives (a contra-revenue item) of Visa escalated 18% year over year to $2.9 billion in the quarter under review. The metric amounted to 26.7% of Visa’s gross revenues of $10.9 billion.Total operating expensesof $2.6 billion increased 11% year over year, lower than our estimate of $2.7 billion. The increase was due to elevated personnel costs and professional fees. Non-GAAP operating expenses escalated 13% year over year. Interest expense came in at $142 million, up 3.6% year over year.Balance Sheet (as of Mar 31, 2023)Visa exited the March quarter with cash and cash equivalents of $13.8 billion, which dropped from the fiscal year-end level of $15.7 billion.Total assets of $86.8 billion increased from the 2022 fiscal year-end level of $85.5 billion.V’s long-term debt amounted to $20.6 billion, which inched up from the fiscal year-end level of $20.2 billion.Total equity grew from the 2022 fiscal year-end level of $35.6 billion to $38.6 billion.Cash FlowsVisa generated net cash from operations of $8,031 million in the six months ended Mar 31, 2023, which increased from $7,721 million a year ago. Fiscal second quarter free cash flows of $3,650 million rose from $3,222 million a year ago.Capital Deployment UpdateVisa rewarded $3.2 billion to shareholders via share buybacks of $2.2 billion and dividends of $1 billion in the March quarter. V had authorized funds of $11.8 billion remaining under its share buyback program as of Mar 31, 2023.On Apr 25, 2023, management sanctioned a quarterly cash dividend of 45 cents per share, which will be paid out on Jun 1, 2023, to shareholders of record as of May 12, 2023.OutlookNet revenues are estimated to register low double-digit growth in the fiscal third quarter. Client incentives are expected to remain at the upper side of the 26.5%-27.5% of gross revenues band.  Growth rate in domestic payments volume is expected to decline in the fiscal third quarter of 2023, while the strength seen in the international market will likely continue. The fiscal third quarter tax rate is expected within 19-19.5%.Non-GAAP operating expense growth is likely to witness a moderation throughout fiscal 2023. From the expense growth recorded in second-quarter fiscal 2023, the growth of expenses on a nominal dollar basis is anticipated to decline two or three points in the fiscal third quarter of 2023. The non-GAAP operating expense growth rate in the fiscal fourth quarter is likely to face a further reduction of two to three points.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates revision.VGM ScoresCurrently, Visa has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Visa has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerVisa belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Equifax (EFX), has gained 4.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.Equifax reported revenues of $1.3 billion in the last reported quarter, representing a year-over-year change of -4.5%. EPS of $1.43 for the same period compares with $2.22 a year ago.Equifax is expected to post earnings of $1.71 per share for the current quarter, representing a year-over-year change of -18.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Equifax. Also, the stock has a VGM Score of F. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Visa Inc. (V): Free Stock Analysis Report Equifax, Inc. (EFX): Free Stock Analysis ReportTo read this article on click here.Zacks Investment Research.....»»

Category: topSource: zacksMay 25th, 2023Related News

ZTO Express (Cayman) Inc. (NYSE:ZTO) Q1 2023 Earnings Call Transcript

ZTO Express (Cayman) Inc. (NYSE:ZTO) Q1 2023 Earnings Call Transcript May 18, 2023 Operator: Good day and welcome to the ZTO Express First Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to […] ZTO Express (Cayman) Inc. (NYSE:ZTO) Q1 2023 Earnings Call Transcript May 18, 2023 Operator: Good day and welcome to the ZTO Express First Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Sophie Li, Company Secretary. Please go ahead. Sophie Li : Thank you, operator. Hello, everyone, and thank you for joining us today. The company’s results and an investor relations presentation were released earlier today and are available on company’s IR website at On the call today from ZTO are Mr. Meisong Lai, Chairman and the Chief Executive Officer, and Ms. Huiping Yan, Chief Financial Officer. Mr. Lai, will give a brief overview of the company’s business operations and highlights followed by Ms. Yan, who will go through the financials and guidance. They will both be available to answer your questions during the Q&A session that follows. I remind you that this call may contain forward-looking statement made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company’s control, which may cause the company’s actual results performance or achievements to differ materially from those in the forward-looking statement. Further information regarding this and other risks, uncertainties and factors is included in the company’s filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law. It is now my pleasure to introduce Mr. Mason Lai. Mr. Lai will read through his prepared remarks in their entirety in Chinese before I translate for him in English. Meisong Lai: Thank you, Chairman Lai. Let me translate first. Hello, everyone. And thank you for joining us on today’s conference call. In the first quarter of 2023, our business volume reached RMB6.3 billion, up 20.5% year-over-year, and our market share increased by 1.8 percentage points over the same period last year. We maintained our industry leading service quality ranking, while at the same time achieved an adjusted net income of RMB1.92 billion, up 82% year-over-year. In the first quarter of 2023, net express delivery industry volume increased nearly 11% over last year. Successfully saving market opportunities, ZTO delivered on a set of strong performance results in accordance with our consistent core strategy of accelerating market share growth while maintaining high quality service and achieving targeted earnings through implementation of the following specific tasks. First, we revised the target setting methodology by referencing the existing market share versus merely based on growth rate; paying particular attention to relatively low sending regions to reduce their lack; we’ve categorized our franchisee partners and designed appropriate policies to match their unique business profiles; we increased communication effort to explain the intention of the change and pointed out the repeatability year-after-year hence effectively alleviate their concerns, so of course had reservations. Secondly, regarding revenue, we refined our volume cost profit analytics and implemented managerial tools across the network to further improve the effectiveness of transit fee pricing to cover associated operating costs. In conjunction with continued effort to optimize KA customer mix, we were able to enhance structure of revenue and quality of earnings. Third, from the perspective of cost. On one hand, we benefited from better economies of scale given higher package volume. On the other hand, we were able to improve the efficiency in isolating operational anomalies and address problems more effectively where processed data are traced to workstation or individual operator, thanks to several standardization initiatives we started in the second half of last year which provided us action, level of visibility and quantification to manage productivity. Fourth, high service quality is a prerequisite for price premiums, network stability and consistent market share expansion. We continued to refine the design of quality control points to improve standardized execution throughout the whole process of pickup, rotation, transit and delivery, addressing root causes and ensure timeliness and overall customer satisfaction. Entering into the second quarter, we observed that the industry’s performance was reasonably fair relative to last year’s low base. With improved consumer confidence and the further recovery of national economy, we believe the express delivery industry will regain steady growth momentum. Meanwhile, ZTO shall maintain internally focused to improve operational safety and network stability. By keeping the pedal to the metal, we will carry out the following portent works. Number one, drive full implementation of the last mile policies that assures the path through of market pricing into the hands of careers. We’re cultivating a mini platform that sign for all the operators to promote entrepreneurship has increased careers income as well as proportion of the ZTOs retail to the volume. Number two, strengthen capability of the entire network, particularly empower our network partner and always to establish capacity for direct linkage. Our goal is to increase market coverage and the penetration of our time definite products, which will help improve profitability. Number three, enhanced capability of delivery to door to improve overall value add and quality of services, our last mile posts. We aim to go from help addressing industry wide challenges in the labor costs and the lightening the workload for delivery personnel to the development of multifaceted product and service solutions for last mile customers. Since its establishment in 2002, ZTO has always adhered to the philosophy of shared success, paid attention to infrastructure development, and their efficient utilization to establish our competitive advantage. And we have consistently stay relevant in promoting fair and equitable sharing of benefits amongst all participants of our business endeavors. Our leading position at presence in the Express industry in terms of service quality scale, and the profitability is the result of a common goal and a concerted Win-Win cooperation that everyone under the ZPO brand. If we actually build ever relative success in the industry for the past 10 years to the more effective linkage between headquarter and sortation centers. Then our competitive mode for our next stage of growth and the development would largely be dependent on whether we are able to build cohesiveness and a streamlined connection amongst sorting centers our last mile careers and our customers. We are confident in the growth prospects of China’s express delivery industry. Staying practical and improving digitization and a data driven process improvements will continuously enhance the ZTO’s competitive edge. Our altruistic service mindset will propel us to grow our business big and strong as well as to take on greater responsibility towards the country and the society. The balanced approach and increases in service quality, scale and wage plus higher earnings will bring about meaningful payback to everyone who participates support, and invest in us. With that, let’s welcome Ms. Yan to interpret the financial results and status of ZTO. Huiping Yan: Thank you, Sophie. Thank you, Chairman. Hello, everyone on the call. As I go through financial, please note that unless specifically mentioned, all numbers quoted are in RMB, the percentage changes referred to year-over-year comparisons. Detailed analysis of our financial performance, unit economics and cash flow are posted on our website. And I’ll go through some of the highlights here. In the first quarter, ZTO maintain profitable growth, thanks to sound execution of our consistent corporate strategy. With industry leading ranking in quality of services, our parcel volume grew 20.5% to RMB6.3 billion, expanding our market share by 1.8 points to 23.4%, compared to the first quarter last year. We delivered a strong adjusted net income growth over 82% to reach RMB1.92 billion. Total revenue increased 13.7% to RMB9 billion. ASP for the core express delivery business decreased 3.7% or RMB0.05 resulted mainly from lower average weight per parcel, increase in volume incentives, and mix shift due to decrease in KA volume, all of the above, absorbing positive impact from more effective network pricing. As a note, KA revenue includes delivery fees as KA revenue as a percentage of total revenue decreases, ASP decreased, because the rest of the revenue is reported net of delivery fees. Total cost of revenue was RMB6.5 billion, which increased 2.8% because of scaled leverage, and meaningful productivity gain. Overall unit cost of revenue for the core express delivery business decreased 12.8% or RMB0.14. Specifically, line-haul transportation costs per parcel decreased 10.6% to RMB0.51 driven by real time data monitoring and analytics to optimize resource utilization, route planning and load rate. Unit sorting costs decreased 11.1% to RMB0.32, thanks to continued standardization in sortation procedures and improved productivity with better resource deployment. As a result, gross profit increased 55.8% to RMB2.5 billion, because of increased revenues and costs productivity gains, gross profit margin rate increased 7.6 points to 28.1%. SG&A expenses excluding SBC compensation, as a percentage of revenue grew by 0.3 points to 5.9%, demonstrating a stable and solid corporate cost structure. Consistent with gross profit, income from operations increased 74.7% to RMB2 billion and associated margin rate grew 7.6 points to 21.7%. Again, adjusted net income increased at 2.1% to RMB1.9 billion and adjusted net income margin grew 8.1 points to 21.4%. Operating cash flow grew 147.7% to RMB2.7 billion, capital expenditure totaled RMB2.3 billion and we anticipated annual CapEx in 2023 to be in the range of RMB6.5 billion to RMB7.5 billion. Taking into consideration that current market conditions and our operations, we are raising our annual parcel volume projection to be in the range of 29.27 billion to 30.24 billion, representing a 20% to 24% increase year-over-year. We remain committed to increase our market share by at least 1.5 percentage points for 2023, while maintaining high quality of services and customer satisfaction, and achieving optimal earnings growth for the year. These estimates represent management’s current and limitary view, which are subject to change. This concludes our prepared remarks. Operator, please open the lines for questions. Thank you. Q&A Session Follow Zto Express (Cayman) Inc. (NYSE:ZTO) Follow Zto Express (Cayman) Inc. (NYSE:ZTO) We may use your email to send marketing emails about our services. Click here to read our privacy policy. Operator: We will now begin a question-and-answer session. [Operator Instructions] [Operator Instructions] And our first question will come from Ronald Keung of Goldman Sachs. Please go ahead. Ronald Keung: Thank you. Thank you for taking my question and congratulations on the strong results. So I have two questions, one is about the unit cost that we have done exceptionally well in cutting unit costs down. So can you go through just whether there’s 10% improvement in the unit costs particularly in tracking and sorting, whether that could resist sustainable, particularly heading into the next few quarters whether the unit cost improvement will continue. Second is can you also share how you see the latest competitive landscape for the industry given the some of the many companies are talking about focusing a bit more on market share this year not just on the profitability. And therefore how do we see the company landscape when passive growth is lapsing the easiest low base over the past one or two months now we’re having a slightly less EV-base now. So let me let me translate my question. Meisong Lai : Thank you, Ronald for your question. So for the first part you asked about the unit cost and also the expectation for it to continue. Chairman had described that, indeed our performances has been quite well for the first quarter. And as we look at the sequential improvement, there are also present but certainly, the year-over-year comparisons is much more significant if you look at the first quarter. The first quarter unit costs for transportation and sorting combined decreased by RMB0.10 year-over-year. On one hand, the impact of the pandemic in the same period last year suppressed the economies of scale, again, productivity was not fully demonstrated. On the other hand, since the second half of last year, we have began proactively taking a series of cost optimization measures, which have had sustained effects coming into the rest of the quarter, including this quarter. In Q1 the transportation costs per parcel decreased RMB0.06 to RMB0.51, the sorting cost decreased RMB0.04 to RMB0.32. And the reason mainly are some of the things that we’ve done is with regards to our digitization and refined management and process productivity gains. In terms of the transportation for example, we optimized redundant drivers by matching routes with the equipment and the personnel. We implemented a standard fuel consumption management to reduce fuel costs. As you know that all the data are on the dashboard so that we are able to monitor and compare. In addition, we have developed the ability to start to an extent dynamically planning our route planning our truck routes, so as to meet the demand in business volume. And as it fluctuates, we are able to also better optimize the utilization of the capacity and improving our low rate. In terms of sortation, we made the employee management much more scientific. As you know sortation, the labor costs as a percentage is the largest. On one hand, we implemented a unit rate compensation in other words, we paid by the quantity of processing. So you do more work in you earn more to stimulate employees working and [indiscernible]. On the other hand, we improved efficiency, labor efficiency through optimized scheduling, and utilized more skilled hired workers instead of temp workers. Standardization and digitization is certainly another key contributor to our productivity gain. We took the operational process, we broke that apart and quantified indicators, and conducted assessment throughout the entire progress of the package. We use digital intelligence tools to realize to achieve data, so that we are gaining visibility into the actual production process. And by comparing the completion of work and their indicators, we will then reward excellent performances and then reprimand poor performances, so as to improve the entire overall efficiency. Regardless of the impact. If we disregard the impact of the oil price, the annual cost reduction target for the full year is between RMB0.05 to RMB0.10 or RMB0.05 to RMB0.07, I’m sorry, for the cost of sortation and transportation combined. In addition to — in the future, the cost effectiveness of our entire connection between sortation and the transportation as well as our expanded effort into productivity gain for our network partners, which will create streamline and enhance our cohesiveness of the entire operation. We believe their continued effort in digitization and our expanded effort throughout the entire network will help us continue to drive productivity certainly without over emphasizing that the scale will continue to bring us leverage. That’s for the cost side of the question. And then in for your second question relating to the market dynamics. Overall is that the market share will continue to be concentrating towards those companies who could operate with the best efficiency with the best quality of services and the most stable network. So, with that, the Chairman mentioned that our overall performance and profitability and our strategy to balance our gain on market share quality of services and also profitability will remain to be our focus. The industry currently we have seen the continued acceleration of consolidation organically. The leading private enterprises have more productivity, more room for productivity gain and the ZTO intend to maintain that leadership. Profitability of each company is also differentiated based on their ability and their results speak for itself. Focusing on our own development with advantage of scale and efficiency and to continuously depending on our digitization and process improvement, we should be able to maintain our competitive advantage. Operator: The next question comes from Qianlei Fan of Morgan Stanley. Please go ahead. Qianlei Fan: Thank you. I’ll translate for myself. So there are two questions. The first question is about the capacity plan. So we observed that the company has adjusted the full-year rolling guidance and also in first quarter CapEx has been up year-on-year. So wondering, what’s the capacity optimized capacity plan for the next few quarters of the year? Is there any adjustment to your full year CapEx plan? And the second question is about competition, so, we observe that the first quarter market share gains faster than the 1.5 percentage point. Is management happy with the current market share advantage as well as unit profit advantage versus your peers or you think you will be more aggressive in expending the relative advantage compared with peers? Huiping Yan: Thank you for your question. I’ll take the first one regarding CapEx. The full year guidance is still we’re maintaining it as RMB6.5 billion to RMB7.5 billion for CapEx spending. If you look at last year, because the pandemic impact volume incoming are weak, so hence, we have adjusted our CapEx investment pace. And in this year, certainly the first quarter based on strong volume expectations, we are adjusting it to be a higher so there are two reasons, one being the low base and then the other is indeed this year we have a higher volume incoming. Preparing for our capacity is important, because we want to continuously monitor the best cost point or sweet spot. For example, the first quarter we have reached 85 million and above packages per day for a part of March. And looking into the rest of the year, we believe there are still increments to where our capacity needs to be adjusted up. So we are planning for installing more machinery and equipment to replace more costly labor and also some of our older facilities are being upgraded and expanded all gearing towards the busy season that are coming in for the second half of the year. But certainly, we will continue to monitor the growth in volume so as to maintain an optimal pace in CapEx investment. Meisong Lai : Let me translate for the Chairman for the second part of the question the industry of growth forecast, at present China’s economy is showing signs of gradual recovery and consumers’ confidence level is also expected to continue to recover and rise from March to April due to the lower base effect the industry’s growth are also exhibiting strong rebound. And considering the overall low base of last year and the current market recovery we have a good — we expect that the industry’s growth will remain for the full year around 12% to 16%. Our market share growth target is still to be no less than 1.5 percentage gain. The overall — the strategy, I think for our overall growth in terms of the policy, we set up certain indicators based on the original market share that each of the region currently have. And then — with our new methodology to set growth goals we focused on market share instead of year-over-year of percentage comparison, this alleviated a lot of the concerns from our network partners so that they will be more focused and less worried about the repeatability and more focused on going forward a market and maintaining quality of services and so on so forth. And then in terms of the following — in terms of the policy promotion, we also paid more attention to the outlets that truly need help as they shorten the gap compared to either our national average or regional average, so that they could catch up. The digitization tools, we are also extending that to provide visibility to our network partners, so that they are able to closely see what we have measured them upon in providing the guidance in where the problems might be. As far as what we are going to do relative to our competitors, we will continue to focus on our own — within our own control. Our consistent strategy has been that all three, including quality of services, market share, and also profitability, and all these are part of the performance measure matrix. We drive for balanced development. Services, quality is the prerequisite our market premium to help us propelled forward with sheer performance services as well as quality, including our empowerment to our network partners in couriers as well as the better on location sharing of the benefit of the growth in a profit is going to help the to further our competitive advantage going forward. Operator: The next question comes from Lu Xu of Citi. Please go ahead. Xu Lu: So let me translate my question. So first question is regards to the ASP trend. So what are the management expectations on the ASP trend going forward this year, with the decline trend continue throughout the year. And in the longer term how management’s view the ASP trend for next year. And also, if we look at the earnings growth, is the company still confident to achieve a larger earnings growth than the parcel volume’s growth rate? And the second question is regards to the last mile network development. What’s the current number of the last mile posts station and the inbox for in station rate. And how could it improve on the current level is there ceiling for that? Thank you Meisong Lai : As for the first quarter and full year, ASP for the first quarter decreased RMB0.05. And as I explained earlier, due to combined impact of package per parcel weight decline KA as a percentage of revenue decline and then volume incentive increases. And all these all together plus or minuses there is some optimization of RMB0.03 of that part of what I had described earlier as negative impact. It is expected that unit price will remain relatively stable throughout the year. ZTO has always been a supporter of stable pricing and reasonable market pricing for — in the past and we’ll continue to do so. The first quarter results — after the first quarter results in the future what we will plan on doing is continue to through policy making and our product structure improvements to bring up our pricing where possible. Digitization as mentioned earlier helped us to make better pricing to cover cost. The pricing is done on a more granular level at the route level. Another thing specifically the Chairman mentioned that we are focusing on through our standardized timeliness product improvements in design, we will further introduce new way of going to market and providing differentiated products and services to our customers. More products and innovation is expected to come. And this will also go hand in hand with our initiatives to pass through market price to the courier so that they are encouraged to bringing more non-e-commerce packages hence, to see packages. As we continue to focus on better quality of services in maintaining the level of customer satisfaction, we will be able to secure our premium at the marketplace through every segments of process improvement, we will be able to maintain such quality of services going forward The next part of the question relates to our last mile post. Since 2021, the company formed Tuxi. And we quickly expanded our footprint through a partner network model. And we have developed a reasonable set of footprint as well as capabilities for services with standardization. The goal of Tuxi is to develop an infrastructure platform which is also open to public, open to all the express delivery companies focusing on solving the problem for the industry in terms of cost for delivery and at the same time improve the shortcomings of last mile services. We have set our goals for this quarter to develop further enhanced capabilities at the last mile, including delivery to door and also our pickup at door. The services that are going to be gradually developed that are individualized to meet customers’ individualized demand is part of our effort. But the main focus is to first establish ability to bring the cost of delivery down because volume are continuously increasing. And then from there, we are able to then produce opportunities or create opportunities for us to provide other services, including with our direct link between our destination outlets, to our customers through the services of our network couriers. I’m sorry, the comments for the growth comparisons. We have our profit growth in this quarter faster than our volume growth. And going into the future as we anticipate the level of revenue development, and also our continued effort in cost productivity gains, we believe we are able to maintain for a period of time, the growth of our revenue, growth of our bottom line faster than the top-line. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks. Sophie Li: Thank you again for everyone who join us. And we have put together some of the answers for you today. And we hope to answer more and have more discussions with you in the future. Thank you again. Operator: The conference is now concluded. Thank you for attending today’s presentation. And you may now disconnect. Follow Zto Express (Cayman) Inc. (NYSE:ZTO) Follow Zto Express (Cayman) Inc. (NYSE:ZTO) We may use your email to send marketing emails about our services. Click here to read our privacy policy......»»

Category: topSource: insidermonkeyMay 25th, 2023Related News

Shell (SHEL) Shareholders Support Board at AGM Despite Protests

Shell's (SHEL) AGM gets disrupted by climate activist group Follow This, in an effort to limit the production of fossil fuels. Shareholders, however, back the board. Shell plc’s (SHEL) shareholders supported CEO Wael Sawan and the board at the company's annual general meeting in London, despite climate activists disrupting the meeting. A few protesters barged onto the platform where Shell's board members were seated, prompting numerous security personnel to step in and remove them.While numerous climate activists demanded an immediate stop to fossil fuel production, Shell was backed by shareholders’ vote to set carbon emission reduction objectives for 2030. The company was also supported by big pension funds and investors.According to a preliminary count from SHEL, the company’s shareholders rejected the activist group Follow This’ motion by 79.8% to 20.2%. In 2022, a similar resolution from the group received 20% support.According to the founder of Follow This, Mark van Baal, shareholders who support SHEL management through their votes enable the company to continue to destabilize the climate. They are also jeopardizing the company’s future.In his first annual meeting as Shell's CEO, Wael Sawan, defended the business against claims that it was not transitioning from fossil fuels to renewable energy quickly enough. According to Sawan, SHEL invested $4.3 billion in low-carbon energy in 2022, including renewable energy, hydrogen, electric vehicle charging stations and biofuels.He agreed that a major portion of the $25 billion in overall capital expenditures was spent on oil and gas. Sawan warned that any hasty reduction of oil and gas production by Shell and other companies would lead to price instability and creation of more harmful energy.Zacks Rank & Key PicksShell currently carries a Zack Rank #3 (Hold).Some better-ranked stocks for investors interested in the energy sector are Sunoco LP SUN, Murphy USA Inc. MUSA and Dril-Quip, Inc. DRQ. While both Sunoco and Murphy USA sport a Zacks Rank #1 (Strong Buy), Dril-Quip carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model with sustainable and predictable cash flows. For this year, SUN has witnessed an upward earnings estimate revision in the past seven days.Murphy USA, a leading retailer of gasoline, operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. MUSA, with more than 1,700 stores, witnessed an upward earnings estimate revision for 2023 and 2024 in the past seven days.Dril-Quip is a leading provider of highly engineered equipment, service and innovative technologies that are being employed in the energy sector. DRQ’s balance sheet has zero debt, highlighting a sound financial position. Free Report: Must-See Hydrogen Stocks Hydrogen fuel cells are already used to provide efficient, ultra-clean energy to buses, ships and even hospitals. This technology is on the verge of a massive breakthrough, one that could make hydrogen a major source of America's power. It could even totally revolutionize the EV industry. Zacks has released a special report revealing the 4 stocks experts believe will deliver the biggest gains.Download Cashing In on Cleaner Energy today, absolutely free.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dril-Quip, Inc. (DRQ): Free Stock Analysis Report Sunoco LP (SUN): Free Stock Analysis Report Murphy USA Inc. (MUSA): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportTo read this article on click here.Zacks Investment Research.....»»

Category: topSource: zacksMay 24th, 2023Related News

Aaron"s (AAN) Up 1.3% Since Last Earnings Report: Can It Continue?

Aaron's (AAN) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. It has been about a month since the last earnings report for Aaron's Company, Inc. (AAN). Shares have added about 1.3% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Aaron's due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Aaron's Q1 Earnings Beat Estimates, Revenues Up Y/YAaron's delivered first-quarter 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. While the top line increased year over year, the bottom line declined.Aaron's delivered adjusted earnings of 66 cents per share, outpacing the Zacks Consensus Estimate of 28 cents. However, the bottom line declined 24.1% year over year from 87 cents per share reported in the prior-year quarter. On a GAAP basis, AAN reported earnings of 41 cents per share versus earnings of 68 cents in the year-ago quarter.Quarter in DetailConsolidated revenues grew 21.5% to $554.4 million, driven by gains from the BrandsMart buyout, somewhat offset by weak lease revenues and fees, and drab retail sales at the Aaron's business. The figure came above the Zacks Consensus Estimate of $553 million.Breaking up the components of consolidated revenues, we note that lease revenues and fees dropped 8.7% year over year to $373.8 million and retail sales increased to $150.5 million from $12.6 million. Non-retail sales, which mainly include merchandise sales to franchisees, declined 14% year over year to $23.9 million, while franchise royalties and other revenues in the quarter decreased 3.2% to $6.1 million from the year-ago quarter.In the Aaron’s business, revenues declined 9.6% year over year to $412.1 million due to lower average lease portfolio size and lease renewal rate coupled with fewer exercises of early purchase options and weak retail sales. E-commerce revenues rose 12.3% year over year and represented 17.9% of the lease revenues.For BrandsMart, revenues were $144.2 million in the first quarter of 2023. Further, e-commerce product sales were 9.2% of total product sales.MarginsAaron’s gross profit rose 3.8% to $295.7 million and the gross margin expanded 80 basis points (bps) to 63.3%. The operating profit came in at $12.7 million, down from the prior-year quarter’s earnings of $30.2 million.Adjusted EBITDA declined 20.7% year over year to $45.9 million, due to lower lease revenues & fees at the Aaron's business, partly offset by reduced personnel costs. An incremental $2.8 million of the metric was delivered by the inclusion of BrandsMart in the company's consolidated results. The EBITDA margin also contracted 210 bps to 13.2%.Financial PositionAaron’s ended the quarter with cash and cash equivalents of $44.3 million, debt of $222.1 million and shareholders’ equity of $703.9 million. The company provided cash of $61 million from operating activities.At the end of the first quarter, the company generated an adjusted free cash flow of $42.5 million. Capital expenditure was $20.2 million in the reported quarter. Capital expenditures are expected in the band of $90-$105 million for 2023. AAN expects adjusted free cash flow in the range of $75-$85 million for 2023.Further, Aaron’s declared dividends worth $3.9 million in the quarter under review.OutlookFor 2023, the company anticipates revenues of $2.15-$2.25 billion versus $2.20-$2.30 billion stated earlier. Adjusted EBITDA (excluding stock-based compensation) is projected in the range of $140-$160 million. It envisions adjusted earnings per share (EPS) of $1-$1.40 compared with the previously mentioned 70 cents to $1.10 for the full year. Earnings per share are expected to be 70-95 cents compared with the earlier stated 55-80 cents.For the Aaron’s business, revenues are expected to be $1.50-$1.57 billion. Adjusted EBITDA is likely to be $170-$185million.For BrandsMart, revenues are anticipated to be $645-$675 million. Adjusted EBITDA is forecast to be $12.5-$17.5 million.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.The consensus estimate has shifted -23.55% due to these changes.VGM ScoresAt this time, Aaron's has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Aaron's has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Free Report: Must-See Hydrogen Stocks Hydrogen fuel cells are already used to provide efficient, ultra-clean energy to buses, ships and even hospitals. This technology is on the verge of a massive breakthrough, one that could make hydrogen a major source of America's power. It could even totally revolutionize the EV industry. Zacks has released a special report revealing the 4 stocks experts believe will deliver the biggest gains.Download Cashing In on Cleaner Energy today, absolutely free.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Aaron's Company, Inc. (AAN): Free Stock Analysis ReportTo read this article on click here.Zacks Investment Research.....»»

Category: topSource: zacksMay 24th, 2023Related News

Motorola (MSI) VB400 Cameras to Enhance London Police Safety

City of London Police selected Motorola's (MSI) VB400 body-worn cameras to enhance the safety and security of its police force. Motorola Solutions, Inc. MSI recently announced that the City of London Police selected VB400 body-worn cameras to boost the security of its officials. Police officers often have to work in highly-stressed environments and encounter unpredictable and potentially-dangerous situations. Officers are also exposed to various risks, including physical harm and injury, while on duty. Lack of proper evidence in those situations can put a question on official’s decision-making and attract public scrutiny and negative criticism.By integrating VB400 in the service, the police department is addressing these challenges and limitations and providing personnels with appropriate support and resources. Motorola’s VB400 is a highly-durable body camera, capable of capturing valuable incident footage with full-shift recording and encryption that ensures evidence integrity.The use of body-worn cameras improves transparency and accountability, which can foster trust between law enforcement agencies and the communities they serve. Advanced features of VB400 combined with the Pronto mobile digital policing platform will significantly improve real-time communication and collaboration, enhance the decision-making process and streamline the workflow.Motorola is a leading communications equipment manufacturer and has strong market positions in bar-code scanning, wireless infrastructure gear and government communications. As a leading provider of mission-critical communication products and services worldwide, Motorola has ensured a steady revenue stream from this niche market. The company intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem. It expects to record strong demand across video security and services, land mobile radio products, and related software while benefiting from a solid foundation.The stock has gained 33.1% in the past year compared with the industry’s decline of 14.8%.Image Source: Zacks Investment ResearchMotorola currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.InterDigital, Inc. IDCC, sporting a Zacks Rank #1, delivered an earnings surprise of 170.89%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 579.03%.It is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular and wireless 3G, 4G and IEEE 802-related products and networks.Akamai Technologies, Inc. AKAM, sporting a Zacks Rank #1, delivered an earnings surprise of 4.86%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 6.06%.It is a global provider of content delivery network (CDN) and cloud infrastructure services. The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video & audio, business applications, etc. Its offerings are intended to reduce the impact of traffic congestion, bandwidth constraints and capacity limitations on customers.Meta Platforms Inc. META, sporting a Zacks Rank #1, delivered an earnings surprise of 15.46%, on average, in the trailing four quarters. Meta Platforms is the world’s largest social media platform. The company’s portfolio offering evolved from a single Facebook app to multiple apps like photo and video-sharing app Instagram and WhatsApp messaging app owing to acquisitions.Meta is considered to have pioneered the concept of social networking, which is why it enjoys a first mover’s advantage in this market. As developed regions mature, Meta undertakes measures to drive penetration in emerging markets of South East Asia, Latin America and Africa. Free Report: Must-See Hydrogen Stocks Hydrogen fuel cells are already used to provide efficient, ultra-clean energy to buses, ships and even hospitals. This technology is on the verge of a massive breakthrough, one that could make hydrogen a major source of America's power. It could even totally revolutionize the EV industry. Zacks has released a special report revealing the 4 stocks experts believe will deliver the biggest gains.Download Cashing In on Cleaner Energy today, absolutely free.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis Report InterDigital, Inc. (IDCC): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportTo read this article on click here.Zacks Investment Research.....»»

Category: topSource: zacksMay 24th, 2023Related News

Immunovant (IMVT) Q4 Earnings Top Estimates, Pipeline in Focus

Immunovant (IMVT) reports narrower-than-expected results in fourth-quarter fiscal 2023. Pipeline development is on track. Stock surges 12% on Monday. Immunovant, Inc. IMVT reported a net loss of 46 cents per share in the fourth quarter of fiscal 2023 (ended Mar 31, 2023), narrower than the Zacks Consensus Estimate of a loss of 48 cents per share. In the year-ago quarter, the company reported a loss of 41 cents.Currently, IMVT does not have any approved product in its portfolio. As a result, it is yet to generate revenues.Corresponding to the narrower loss in the reported quarter, as well as reports of pipeline development remaining on track, Immunovant’s shares jumped 12% on Monday. Shares of Immunovant have skyrocketed 512.1% in the past year against the industry’s 4.7% decline.Image Source: Zacks Investment ResearchQuarter in DetailIn the reported quarter, research and development (R&D) expenses were $51.8 million, up 61.9% from the year-ago quarter’s figure. The year-over-year surge was due to increased personnel-related expenses and higher development costs related to the batoclimab program and cross-indication clinical studies. R&D expenses were partially offset by lower contract manufacturing costs related to the development of IMVT-1402, which were initiated in the prior-year period.General and administrative expenses were $12.4 million in the reported quarter, down 18.4% on a year-over-year basis. The decline was primarily due to lower personnel-related expenses, along with lower financial advisory and legal and other professional costs.As of Mar 31, 2023, Immunovant had a cash balance of $376.5 million compared with $432.6 million as of Dec 31, 2022.With its existing cash balance, IMVT expects to fund its operating expenses and capital expenditure requirements into the second half of 2025.Pipeline UpdateImmunovant is developing its lead pipeline candidate batoclimab as a subcutaneous injection to treat several indications, including myasthenia gravis (MG), thyroid eye disease (TED), chronic inflammatory demyelinating polyneuropathy (CIDP) and Graves’ disease (GD). Several mid-late-stage studies are currently ongoing to evaluate batoclimab in the treatment of each of these indications.During the reported quarter, the company initiated a phase II proof-of-concept study of batoclimab in GD in Germany. Initial results from the same are expected in the fourth quarter of 2023.Immunovant remains on track to report initial results from period 1 of the phase IIb study in CIDP in the first half of 2024. The company also expects to have top-line results from the phase III study in MG and the phase III study in TED, in the second half of 2024 and the first half of 2025, respectively.During the reported quarter, Immunovant received the FDA’s clearance of its investigational new drug application for IMVT-1402, a subcutaneously administered, FcRn inhibitor, for the treatment of autoimmune disease.Fiscal FY23 ResultImmunovant reported a loss of $1.71 per share for the fiscal year 2023, wider than the Zacks Consensus Estimate of a loss of $1.66 per share. The company reported a loss of $1.43 per share in the previous year.Immunovant, Inc. Price and Consensus Immunovant, Inc. price-consensus-chart | Immunovant, Inc. QuoteZacks Rank and Stocks to ConsiderImmunovant currently has a Zacks Rank #3 (Hold).Some better-ranked stocks in the biotech sector are Allogene Therapeutics ALLO, Akero Therapeutics AKRO and ADMA Biologics, Inc. ADMA, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.In the past 90 days, the Zacks Consensus Estimate for Allogene Therapeutics’ 2023 loss per share has narrowed from $2.83 to $2.32. In the past year, shares of Allogene Therapeutics have fallen by 17%.ALLO beat estimates in three of the trailing four quarters, missing the mark on one occasion, delivering an average earnings surprise of 5.08%.In the past 90 days, the Zacks Consensus Estimate for Akero Therapeutics’ 2023 loss per share has narrowed from $3.46 to $2.78. In the past year, shares of Akero Therapeutics have rallied by 454.8%.AKRO beat estimates in three of the trailing four quarters, missing the mark on one occasion, delivering an average earnings surprise of 7.96%. In the past 90 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has narrowed from 19 cents to 9 cents. In the past year, shares of ADMA Biologics have gained by 125.5%.ADMA beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 19.13%.  The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.Download the brand-new FREE report revealing 5 EV battery stocks set to soar.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ADMA Biologics Inc (ADMA): Free Stock Analysis Report Allogene Therapeutics, Inc. (ALLO): Free Stock Analysis Report Akero Therapeutics, Inc. (AKRO): Free Stock Analysis Report Immunovant, Inc. (IMVT): Free Stock Analysis ReportTo read this article on click here.Zacks Investment Research.....»»

Category: topSource: zacksMay 23rd, 2023Related News