All articles tagged with #share buybacks
Berkshire Hathaway's operating earnings surged 34% to $13.485 billion in Q3, driven by a significant increase in insurance income, while its cash reserves hit a record $381.6 billion with no share buybacks, and Buffett plans to step down as CEO with Greg Abel taking over.
Nvidia's latest earnings report shows strong growth and margins, but also reveals concerns over revenue concentration from a few major clients and a large share buyback program, which may indicate management struggles to find new high-growth investments and could impact future profitability. Investors should be cautious despite Nvidia's AI dominance and recent stock gains.
Alibaba Group Holding Ltd. has issued $4.5 billion in convertible bonds, marking the largest dollar-denominated sale by an Asian company. The funds will be used for share buybacks and investments in core businesses, including artificial intelligence. The bonds, due 2031, were priced with a 0.5% coupon and a 30% conversion premium, and the deal was significantly oversubscribed. This move comes as Alibaba seeks to capitalize on favorable financing conditions and a rally in its shares, while also addressing market share losses in its core and cloud businesses.
British American Tobacco (BAT) is actively working to sell some of its 29% stake in India's ITC, signaling a move towards resuming share buybacks and sending its shares up almost 8%. The company aims to reduce debt and move towards the leverage range for buybacks, with the CEO stating that a 25% stake is required for veto rights. BAT's dividend, up 2% on last year, remained intact, and the company reported a 5.2% rise in adjusted diluted earnings per share, slightly beating analyst expectations.
Danish shipping giant Maersk's shares dropped over 12% after announcing "high uncertainty" in its 2024 earnings outlook due to Red Sea disruptions and oversupply of shipping vessels, leading to the suspension of share buybacks. The company reported lower-than-expected fourth-quarter profit, with EBITDA dropping to $839 million. Global supply chains have been disrupted since late 2023 due to diversions away from the Red Sea following attacks by Yemen's Houthi rebels, leading to increased delivery times and costs, potentially impacting inflation.
Despite a significant drop in full-year profits due to lower oil prices, BP plans to accelerate its share buyback program and increase shareholder returns. The company reported a 50% decrease in full-year profit, but exceeded analyst expectations for fourth-quarter net profit. BP's CEO expressed confidence in the company's strategy and commitment to delivering long-term value for shareholders. The announcement comes amid pressure from activist investors over the company's strategy, including calls to ramp up oil and gas investments. BP has also undergone a leadership change and adjusted its climate plans, aiming for a 20% to 30% cut in emissions instead of its previous target of net zero by 2050.
Exxon Mobil expects its earnings to more than double by 2027, driven by cost-cutting measures and increased sales of chemicals, lower emission fuels, and performance lubricants. The company plans to cut structural costs by $6 billion and increase its annual share repurchase program to $20 billion after the completion of its Pioneer Natural Resources acquisition. Exxon also anticipates capital expenditures of $23 billion to $25 billion in 2024 and plans to invest $20 billion in lower carbon emissions projects. The company aims to reduce its own upstream greenhouse gas emissions by 50% by 2030 and is focusing on carbon capture, lithium for electric vehicle batteries, hydrogen, and biofuels.
Exxon Mobil plans to increase annual project spending to between $22 billion and $27 billion through 2027, while maintaining existing spending and production targets. The company's spending outlook includes a higher investment of $20 billion in its energy transition unit, but it will require government support. Exxon also plans to increase share buybacks to $20 billion annually after the completion of its acquisition of Pioneer Natural Resources. The company forecasts a production increase to 3.8 million barrels of oil equivalent per day in 2024, primarily driven by the Permian shale basin and Guyana.
Shell, the British oil giant, reported a sharp drop in second-quarter profit due to lower fossil fuel prices and refining margins. The company's adjusted earnings for the three-month period were $5.1 billion, missing analyst expectations. Shell increased its quarterly dividend by 15% and announced $3 billion in share buybacks. The CEO emphasized the company's focus on creating value with fewer emissions and meeting aggressive emissions reduction targets. French oil major TotalEnergies also reported weaker-than-expected earnings, reflecting a 49% drop from last year. The impact of lower commodity prices is expected to be seen across the energy industry. Shell has faced criticism for backing away from new oil output cuts and reiterated its commitment to climate targets.
Deutsche Bank reported a net profit of 763 million euros ($842 million) for Q2 2023, beating expectations despite a 27% decline in profit. Net revenues rose 11% year-on-year to 7.4 billion euros. However, non-interest expenses increased by 15% to 5.6 billion euros, with adjusted costs up 4% to 4.9 billion euros. The bank plans to initiate up to 450 million euros of share buybacks this year and expects total capital returned to shareholders through dividends and buybacks in 2023 to exceed 1 billion euros.
Bank of America has initiated discussions with the Federal Reserve to seek clarification on the discrepancies between the central bank's stress test results and the bank's own analysis under the Dodd-Frank Act. While major lenders, including Bank of America, were deemed to have sufficient capital to withstand an economic downturn, the bank wants to understand the differences in the "other comprehensive income" category during the measured period. Unlike its rivals, Bank of America has not made any announcements regarding dividends or share repurchases since the stress test results were released.
Citigroup has announced that it will pursue an initial public offering (IPO) of its consumer, small business, and middle-market banking operations in Mexico, following the planned separation of its leading institutional business that will remain part of Citi. The business will retain the Banco Nacional de México (“Banamex”) brand and will remain one of the leading financial groups in Mexico. Citi will continue to operate a locally-licensed banking business in Mexico through its Institutional Clients Group (ICG), which provides an unrivaled global network of banking and advisory services to private and public institutions, financial sector clients and investors, as well as through Citi Private Bank for ultra-high-net-worth individuals and families.
Pfizer executives announced that the company will shift its focus to dividends and share buybacks after a period of M&A activity fueled by Covid-19 vaccine and therapeutic sales.
BP's stock fell as the company announced plans to slow down share buybacks due to declining oil prices. This news comes amidst ongoing volatility in the stock market and broader financial markets.
Exxon and Chevron, the two largest US oil companies, are divided over what to do with their huge cash reserves, which are far in excess of what they need for routine operations. Exxon CEO Darren Woods is happy to see cash balances rise so the company is well-positioned for a cycle downturn, while Chevron's Finance Chief Pierre Breber believes too much cash on the books is "economically inefficient" and plans to reduce some of its cash. Wall Street is pushing for higher share buybacks and dividends, worried that too much cash could signal a spurt of big-dollar acquisitions.