All articles tagged with #financial targets
AMD's stock surged after the company announced ambitious financial targets, including over 35% revenue CAGR and a data center market forecast of $1 trillion by 2030, driven by AI processor growth and strategic partnerships, positioning AMD for a new era of industry-leading expansion.
Boeing's quarterly loss narrowed, but the 737 Max 9 crisis looms over future results as a fuselage panel blew out midflight on a nearly new 737 Max 9, raising questions about the company's financial targets. The company did not provide a 2024 outlook, and CEO Dave Calhoun is under pressure to address the company's reputation with airline customers, regulators, and the public. Federal investigators are examining production flaws, and the FAA has cleared the Max 9 to fly again but halted Boeing's planned production ramp-up. Delays in production could impact financial targets and affect suppliers and customers, while Boeing executives face questions about the certification timeline for other Max models.
Morgan Stanley's new CEO, Ted Pick, is confident in the bank's ability to achieve its financial targets of $10 trillion in client assets and a 20% return, emphasizing the importance of sticking to the strategy, maintaining the bank's culture, and achieving these goals. Pick highlighted the firm's unique combination of wealth management and investment banking as its "secret sauce," and expressed optimism about an expected rebound in corporate mergers and related activities. He also suggested that the U.S. economy may be past peak inflation and hinted at the possibility of the Federal Reserve cutting rates faster than anticipated due to weakening data.
Citigroup is shutting down its municipal business, a move driven by CEO Jane Fraser's efforts to improve the bank's overall returns. The decision comes as the business has fallen in the rankings for underwriting state and local debt and no longer aligns with Citigroup's goal of becoming the premier bank for large multinational corporations. The unit's profitability was further impacted by being frozen out of deals in Texas due to the bank's firearms policies. The wind down is expected to be completed by the end of Q1 2023, affecting around 100 employees. Citigroup will continue to work with transportation and healthcare entities on public-private partnerships and invest in municipal bonds.
Spotify's CFO, Paul Vogel, will step down from his position after eight years at the company, just days after the announcement of its third round of layoffs this year. The music streaming giant is undergoing an evolution to align its spending with market expectations while funding growth opportunities. Spotify CEO Daniel Ek stated that the company is entering a new phase and requires a CFO with a different mix of experience. An external search for Vogel's successor has been launched, and in the interim, Ben Kung, vice president of financial planning and analysis, will take on an expanded role. Despite the recent layoffs, Spotify's stock has been performing well, with shares up about 150% year to date.
Sony is reportedly set to take full control of Bungie, the developer of Destiny, if the studio fails to meet its financial targets. Bungie is currently an independent subsidiary within Sony, but sources say that if certain financial goals are not reached, Sony can dissolve the split board and assume full control. The delay of the highly anticipated Destiny 2 expansion, The Final Shape, and ongoing investments in other projects have raised concerns about Bungie's ability to retain its independence. Recent layoffs and cost-cutting measures have impacted morale within the company, and further layoffs are expected if The Final Shape underperforms.
Viasat announced that it will not replace its damaged $750 million ViaSat-3 Americas satellite, stating that its current and upcoming satellite fleet, along with third-party support, will meet the needs of its key mobility market customers despite the lost bandwidth. The company expects to achieve its financial growth objectives earlier than expected and anticipates being free cash flow positive in the first half of 2025. Viasat also plans to finalize a $420 million insurance claim for the ViaSat-3 Americas satellite and a $348 million claim for the I6 F2 backup satellite, totaling $768 million.
Palo Alto Networks' decision to report its fiscal fourth-quarter earnings on a Friday, instead of the usual Monday or Tuesday, has made Wall Street nervous. Analysts have lowered their estimates, and there are concerns that the company's outlook for fiscal 2024 may miss expectations. Some speculate that Palo Alto could announce a strategic and operational reveal, possibly discontinuing the sale of hardware. The stock has retreated in August but is still up 54% for the year.
MillerKnoll CEO Andi Owen apologized to her employees after a video call in which she criticized them for complaining about not receiving bonuses and told them to leave "pity city" went viral. Owen acknowledged that her message was poorly delivered and apologized for any offense caused.
Ford has revealed a new operating structure that will report financial performance using business segments Ford Blue (gas, hybrid vehicles), Ford Model e (EVs), and Ford Pro (commercial products & services), instead of regional markets. The company expects to incur losses of $3 billion in the Model e EV segment in 2023, but aims to achieve an 8% EBIT margin objective by late 2026. Ford's CFO stated that the losses are due to long-term investments in new vehicles and plants, and that the company will show how scale and new platforms will eventually lead to profitability.