Risk/Reward archive
GE Vernova (GEV) posted 26Q2 revenues of $11.1 billion, up 21.9% YOY. Operating income surged 72.8% to $655 million, driven by revenue growth and higher margins at Power and Electrification, which more than offset a modestly wider loss…
Continue reading →26Q2 revenue was $13.3 billion, up 21.1% over 25Q2. Commercial Engine & Services (CES) revenue rose 21.8%, while Defense & Propulsion Technologies (DPT) revenues were up 34.3%. CES segment profit jumped 19.0%, with a 60 bp decline in…
Continue reading →Matthews International Corporation (MATW) reported 26Q1 revenues of $284.8 million, down 29.1%. Nearly all of the decline was due to divestitures, especially the sale of SGK Solutions last May. Sales at its Memorialization business rose 7.2%, due to…
Continue reading →25Q3 revenue was $12.2 billion, up 23.8% over 24Q3. Commercial Engine & Services (CES) revenue rose 26.8%, while Defense & Propulsion Technologies (DPT) was up 26.1%. CES segment profit jumped 26.1%, with a 170 bp rise in margin…
Continue reading →GE Vernova (GEV) posted 25Q3 revenues of $10.0 billion, up 11.8% YOY. Operating income swung from a loss of $359 million to a profit of $366 million, primarily due to a $300 million favorable swing at Wind, and…
Continue reading →Matthews International Corporation (MATW) reported 25Q3 revenues of $349.4 million, down 18.3%. Most of the decline was due to the sale of SGK Solutions, which was completed in May. Sales at its Memorialization business rose 0.5%, due to…
Continue reading →GE Vernova (GEV) posted 25Q2 revenues of $9.1 billion, up 21.9% YOY. Yet, operating income fell 47.4% from $527 million to $378 million, primarily due to the nonrecurrence of $306 million related to an arbitration refund received in…
Continue reading →25Q2 revenue was $11.0 billion, up 21% over 25Q1. Commercial Engine & Services (CES) revenue rose 30%, while Defense & Propulsion Technologies (DPT) was up 7%. CES segment profit jumped 33%, with a 50 bp rise in margin…
Continue reading →Matthews International Corporation (MATW) reported 25Q2 revenues of $427.6 million, down 9.3%. Sales at its Memorialization business fell 7.4%, due to the normalization of U.S. death rates after COVID. Industrial Technology’s sales plunged 30.4%, as the energy storage…
Continue reading →GE Vernova (GEV) posted 25Q1 revenues of $8.0 billion, up 21.3% YOY. Operating income swung from a loss of $289 million to income of $43 million. With pension and other income, net of interest costs, pre-tax earnings swung…
Continue reading →25Q1 revenue was $9.9 billion, up 10% over 24Q1. Commercial Engine & Services (CES) revenue rose 14.4%, while Defense & Propulsion Technologies (DPT) was essentially flat. CES segment profit jumped 36%, with a 420 bp rise in margin…
Continue reading →Mistras Group reported 24Q4 EPS of $0.17 vs. 23Q4’s loss of $0.08 and my estimate of $0.14. Revenues of $172.7 million declined 5.1%, due to a 10.1% decline in Mistras’s largest industry served, Oil & Gas, that was…
Continue reading →On March 11, 2025, Matthews International Corporation (MATW) filed a three million share shelf registration under form S-3 with the U.S. Securities and Exchange Commission. Along with the shelf, it also filed a prospectus under which it would…
Continue reading →GE Vernova (GEV) posted 24Q4 revenues of $10.6 billion, up 5%, with growth in both equipment and services. Operating income more than doubled from $195 million to $593 million, as did net income from $205 million to $484…
Continue reading →24Q4 revenue was $10.8 billion, up 14% over 23Q4. Commercial Engine & Services (CES) revenue jumped 19% and Defense & Propulsion Technologies (DPT) rose 4.5%. CES segment profit surged 54%, with a 640 bp increase in margin to…
Continue reading →I am maintaining my $32 price target. With the stock's recent decline, I have raised my rating from outperform to buy. Three proxy voting services recommend shareholders vote for all three Barington Capital nominees. Even so, I will…
Continue reading →The stock of Matthews International Corporation (MATW) has lost more than half of its value since 2017. Over that time, the company has struggled to sustain its profitability due to the earnings deterioration in its SGK Brand Solutions’…
Continue reading →Mistras Group reported 24Q3 EPS of $0.20 vs. 23Q3’s loss of $0.34 and my estimate of $0.24. Revenues of $182.7 million were up 1.9%, as a 3.6% decline in Mistras’s largest segment, Oil & Gas, was more than…
Continue reading →GE Vernova (GEV) reported a 24Q3 GAAP diluted loss per share of $0.35 compared with 23Q3’s pro forma loss of $0.62. This quarter saw a big increase in SG&A from standalone corporate and higher restructuring costs. Excluding those…
Continue reading →GE Aerospace reported 24Q3 revenues of $9.8 billion, up 5.8% vs. the prior year; GAAP EPS from continuing operations was $1.56, compared with 23Q3’s $0.20; and non-GAAP EPS was $1.15 vs $0.92. Results exceeded my estimates of $1.18…
Continue reading →GE Aerospace reported 24Q2 revenues of $9.1 billion, up 3.9% year-over-year; GAAP EPS from continuing operations was $1.20, compared with 23Q2’s $1.09; and non-GAAP EPS was $1.20 vs $0.74. The mean estimates of analysts were $8.6 billion for…
Continue reading →Mistras Group reported 24Q2 EPS of $0.20 vs. 23Q2’s $0.01 and my estimate of $0.11. Revenues of $189.8 million were up 7.8%, with all industry segments posting gains, including double-digit gains in segments that had been experiencing steady…
Continue reading →In its first quarter since being spun off by General Electric on April 2, GE Vernova (GEV) reported GAAP diluted EPS of $4.69 compared with a pro forma loss of $0.55 in 23Q2. This quarter’s results included an…
Continue reading →Mistras Group reported 24Q1 EPS of $0.03 vs. 23Q1’s loss of $0.17 and my estimate of $0.00. Revenues of $184.4 million were up 9.8%, due mostly to strong maintenance turnaround activity in the Oil & Gas sector. Gross…
Continue reading →Mistras Group reported 23Q3 EPS of ($0.34) vs. 22Q3’s $0.14 and my estimate of $0.19. The net loss was due to a $13.8 million goodwill impairment charge taken against its International business and $2.7 million of reorganization charges…
Continue reading →GE reported 23Q3 revenues of $17.3 billion, up 19.9% year-over-year; GAAP EPS from continuing operations of $0.08, compared with 22Q3’s $0.29 loss; and non-GAAP EPS of $0.82 vs 22Q3’s ($0.17). I had anticipated revenues of $15.4 billion, GAAP…
Continue reading →Mistras Group reported 23Q2 EPS of $0.01, below 22Q2’s $0.15 and my estimate of $0.18. Revenues of $176.0 million were down 1.7% vs. 22Q2’s $179.0 million and also below my estimate of $186.1 million. The shortfall was attributed…
Continue reading →GE reported 23Q2 revenues of $16.7 billion, up 18.2% year-over-year; GAAP EPS from continuing operations of $0.91, compared with 22Q2’s $1.09 loss; and non-GAAP EPS of $0.68 vs 22Q2’s $1.14. I had anticipated GAAP EPS of $0.23 per…
Continue reading →Mistras Group reported a 23Q1 loss of $0.17, slightly better than 22Q1’s $0.18 loss, but wider than my estimate of a $0.08 loss. Revenues of $168.0 million were 3.9% above 22Q1’s $161.7 million and also above my estimate…
Continue reading →GE reported 23Q1 revenues of $14.5 billion, up 14.3% year-over-year; GAAP EPS from continuing operations of $5.61, compared with 22Q1’s $1.17 loss; and non-GAAP EPS of $0.27, reversing 22Q1’s $0.09 loss. I had anticipated a GAAP loss of…
Continue reading →Mistras Group reported 22Q4 EPS of $0.09, above 21Q4’s $0.00 and my estimate of $0.02. Revenues of $168.2 million were 1.7% below 21Q4’s $171.2 million and also below my estimate of $171.4. The results met management’s top line…
Continue reading →GE announced 22Q4 revenues of $21.8 billion, up 7.3% year-over-year, GAAP EPS of $1.93, compared with 21Q4’s $3.26 loss, and non-GAAP EPS of $1.24, up 52% over 21Q4’s $0.82. I had anticipated a GAAP EPS of $0.38 per…
Continue reading →Large cap stocks, as measured by the Lark Research Large Cap Index (the “Index”)[1] which mirrors the S&P 500, posted a decline of 19.5% in 2022. As in previous years, most of the performance was driven by a…
Continue reading →Mistras Group reported 22Q3 EPS of $0.14, above 21Q3’s $0.11 and my estimate of $0.23. Revenues of $178.5 million were 2.2% above the year earlier period but also below my expectations. My projections were in line with the…
Continue reading →GE announced 22Q3 revenues of $19.5 billion, up 0.5% year-over-year, a GAAP loss per share of $0.14, compared with 21Q3’s $0.54 profit, and non-GAAP EPS of $0.35, below 21Q3’s $0.53. I had anticipated a GAAP EPS of $0.44…
Continue reading →Mistras Group reported 22Q2 EPS of $0.15, below 21Q2’s $0.20 and my estimate of $0.18. Revenues of $179.0 million were 0.8% above the year earlier period and also below my expectations. While revenues were essentially flat, gross margin…
Continue reading →General Electric Company (GE) announced 22Q2 revenues of $18.6 billion, up 2.4% year-over-year, a GAAP loss per share of $0.59, two cents worse than 21Q2’s $0.57 loss, and non-GAAP EPS of $0.78, above 21Q2’s $0.22. I had anticipated…
Continue reading →Since reporting disappoint 22Q1 results on April 26, GE’s stock has fallen sharply. Year-to-date, GE’s stock is down 22.6%, worse than the S&P 500 Industrial sector’s 11.7% decline.
Continue reading →21Q4 Results Below Expectations, Lowering 2022 Estimates, Reducing Rating and Price Target Mistras Group reported 21Q4 EPS of $0.00, slightly worse than 20Q4’s $0.01 and below my estimate of $0.06. Revenues of $171.2 million were 6.5% above the…
Continue reading →Mistras Group is a leading provider of non-destructive testing (NDT) and related asset protection services that monitor the condition of critical infrastructure and equipment to ensure safe and efficient operations and maximize uptime. The company’s business has suffered…
Continue reading →2020 was of course dominated by the impact of the pandemic on the economy and specifically on the revenues and profits of each of the S&P 500 constituents. There was a sharp stock market sell-off in March-April, followed…
Continue reading →General Electric reported a 2020 third quarter GAAP loss of $1.16 billion or $0.13 per share on revenues on revenues of $19.4 billion, down 17%. In the 2019 third quarter, the company reported a comparable net loss of…
Continue reading →Shares of GE have underperformed both the broader market and GE’s industrial peer group since the onset of the COVID-19 pandemic. The weak performance reflects primarily the company’s exposure to the aviation business, which prior to the pandemic…
Continue reading →As noted in a previous post, it is most appropriate to value GE as a single, stand-alone enterprise. Several unifying investment themes support this view:
Continue reading →In April 2015, partially in response to the regulatory restrictions that accompanied GE Capital’s designation as a systemically important financial institution by the Financial Stability Oversight Council, GE adopted the GE Capital Exit Plan, under which it planned…
Continue reading →In my view, the most appropriate way to look at GE’s stock valuation is to consider the company as a single enterprise. In this analysis, I compare its current valuation to peers. My calculations for GE’S enterprise value-to-EBITDA…
Continue reading →Based upon management’s guidance given at General Electric’s 2020 Outlook meeting on March 4th, I project 2020 Industrial Leverage EBITDA of $11.6 billion, up roughly 3% from 2019. Industrial Leverage EBITDA was given in the appendix to the…
Continue reading →Given the complexity of its business mix and financial structure, valuing GE is not an easy exercise even under benign economic conditions. The task is made even more difficult when there is considerable uncertainty about prospects for the…
Continue reading →GE’s stock has been battered during this sell-off, falling much more than the broader market as a whole. Since reaching an intra-day peak of $13.26 on February 12 (roughly one month ago), the stock has fallen 40.8% to…
Continue reading →The cover story in this week’s Sunday New York Times Magazine is “What Really Caused the Deadly Crashes of the Boeing 737 Max?“. While acknowledging that malfunctions caused the crashes, it also documents in detail the errors made…
Continue reading →On August 15, 2019, Harry Markopolos, who gained fame as the person who exposed the fraud perpetrated by Bernie Madoff, released a 175-page report entitled “General Electric, A Bigger Fraud Than Enron.” GE’s stock fell 11.3% on the…
Continue reading →The company reported diluted EPS of $0.24 per share, up from $0.21 a year ago. Sales declined 1% to $31.4 million due mostly to a non-repeat of a large order from a distributor who was launching a first…
Continue reading →General Electric (GE) posted 2018 fourth quarter results that were viewed positively by the financial community primarily because there were no new major negative surprises. Although management gave an update on the company’s recent progress and certain aspects…
Continue reading →2018 was a rough year for investors in Acme United Corporation’s (ACU) stock, including CEO Walter Johnsen who owns 15% of the outstanding shares. ACU’s 2018 total return was -38%, worse than the Zack’s Micro Cap Index’s 17%…
Continue reading →General Electric (GE) reported 2018 third quarter results on Tuesday, October 30. This was the first conference call for newly-installed Chairman and CEO H. Lawrence (Larry) Culp, Jr.
Continue reading →Besides the recent weakness at Power and Oil & Gas, GE has been grappling with legacy issues at GE Capital. Although it has been downsizing for more than a decade now – reducing its assets from $660 billion…
Continue reading →On June 26, General Electric (GE) announced the outcome of its strategic review. Besides divestiture actions already announced, the company said that it will spin-off its Healthcare business over the next 12-18 months and distribute its 62.5% stake…
Continue reading →General Electric reported disappointing 2018 second quarter GAAP earnings attributable to shareholders of $736 million or $0.07 per share, down 30% from $1.03 billion or $0.10 per share last year. Adjusted (Non-GAAP) EPS, according to the company’s definition,…
Continue reading →“You can’t grow long-term if you can’t eat short-term. Anybody can manage short. Anybody can manage long. Balancing those two things is what management is” -Jack Welch As everyone knows, this has been a tough year for…
Continue reading →On Friday (10/6), after the market close, General Electric (GE) announced that three of its senior executives, all Vice Chairs – John Rice, CEO of GE’s Global Growth Operations, Beth Comstock, CEO of GE’s Business Innovations and Jeff…
Continue reading →UPS held an investor day in New York City on February 22, three weeks after reporting disappointing fourth quarter results. Its stock fell sharply on the earnings news, giving back all of its Trump rally gains. So far…
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