Bridger Aerospace Group Holdings Inc Expected To Post Earnings Of 46 Cents A Share - Earnings

Friday, October 11, 2024

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Bristol-Myers Squibb Co. (BMY), Arthur J. Gallagher & Co. (AJG) and TC Energy Corp. (TRP), as well a micro-cap stock Bridger Aerospace Group Holdings, Inc. (BAER). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Shares of Bristol-Myers Squibb have underperformed the Medical - Biomedical and Genetics industry over the past year (-2.1% vs. +4.4%). The company maintains momentum as growth in Eliquis, Opdivo and Reblozyl drives sales and cost-cutting measures boost the bottom line. Bristol-Myers Squibb is focusing on reshaping its business to achieve sustained top-tier growth.

The uptake of newer drugs like Opdualag, Reblozyl and Breyanzi has been strong. It is enabling Bristol-Myers to offset the loss of revenues due to declining sales of older drugs. The recent acquisitions of Mirati, Karuna and RayzeBio should strengthen and diversify its portfolio.

However, generic competition for its key drugs, Revlimid and Eliquis (outside the United States), is a headwind. While the performance of new drugs is encouraging, these will take some time to contribute significantly to the top line.

(You can read the full research report on Bristol-Myers Squibb here >>>)

Arthur J. Gallagher’s shares have gained +23.5% over the past year against the Zacks Insurance - Brokerage industry’s gain of +32.2%. The company is on track to generate both organic (particularly international) and inorganic growth. Its focus on tapping opportunities across the globe bodes well for growth. The insurance broker expects organic revenue growth in 2024 in the Risk Management and Brokerage segment to be better than the 2023 level.

This solid performance is expected to lead to an increase in cash flows, facilitating the return of wealth to shareholders via share buybacks and dividends. First-quarter adjusted earnings beat the consensus estimate.

However, escalating expenses weigh on the company’s margins. Lower return on capital poses a threat. Also, the debt level is significant, which raises interest payouts and results in low times interest earned.

(You can read the full research report on Arthur J. Gallagher here >>>)

Shares of TC Energy have gained +42.3% over the past year against the Zacks Alternative Energy - Other industry’s gain of +52.0%. The company is a predominantly natural gas pipeline operator with operations spanning Canada, the United States and Mexico. A quality stock with industry leading wide moat assets, TC Energy stands out as a dividend aristocrat that is set to increase its payout for the 25th consecutive year in 2024.

Meanwhile, the company’s historic Indigenous Equity Ownership agreement for the NGTL and Foothills Systems demonstrates a strong commitment to sustainable and inclusive growth. TC Energy’s strategic asset management and divestiture program positions it to maximize asset value.

However, continued timing and cost overrun issues over large construction projects, significant capital expenditure and interest rate volatility, are major overhangs. Moreover, share price appreciation will likely be tied to the extent of debt reduction.

(You can read the full research report on TC Energy here >>>)

Bridger Aerospace’s shares have underperformed the Zacks Aerospace - Defense industry over the past year (-71.7% vs. +11.8%). This microcap company with market capitalization of $108.46 million have high leverage and debt servicing pressures, seasonal revenue dependence, ongoing losses and execution risks in international expansion pose significant challenges. Its success hinges on maximizing fleet utilization, managing debt and maintaining government contracts amid an unpredictable wildfire environment.

Nevertheless, Bridger Aerospace is positioned to capitalize on the rising demand for aerial firefighting services, driven by climate change and population shifts to wildfire-prone areas. The company's fleet, including CL-415EAF "Super Scoopers" and advanced surveillance aircraft, secures its strong market position and ensures a stable income.

The acquisition of FMS Aerospace diversifies revenue streams, adding year-round income and reducing reliance on seasonal fire activity. The expansion into international markets offers growth potential.

(You can read the full research report on Bridger Aerospace here >>>)

Other noteworthy reports we are featuring today include NextEra Energy, Inc. (NEE), Roku, Inc. (ROKU) and MasTec, Inc. (MTZ).

Mark Vickery

Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

New Drugs Fuel Bristol Myers (BMY) Amid Generic Competition

Arthur J. Gallagher (AJG) Banks on Buyouts Amid High Costs

TC Energy's (TRP) Vast Pipeline Network Fuels Future Growth

Featured Reports

NextEra (NEE) Gains from Renewable Focus, Steady Investment

Per the Zacks analyst, NextEra's planned long-term investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.

MasTec (MTZ) Banks on Solid Oil & Gas Unit, Low Spending Ail

Per the Zacks analyst, MasTec benefits from solid contributions from Oil and Gas unit on strong project activity. Yet, a slow recovery in demand for distribution services due to low spending hurt.

Decent Comps Run to Fuel Ollie's Bargain's (OLLI) Top Line

Per the Zacks analyst, Ollie's Bargain's business model, cost control efforts and healthy comps run reinforce its position. Management expects fiscal 2024 comps to increase in the band of 2.7-3.2%.

Alkermes' (ALKS) Proprietary Drugs Aid Growth, High Reliance a Woe

Per the Zacks analyst, strong sales of Alkermes' proprietary drugs are driving growth. The restructuring initiatives are also a positive. Heavy dependence on partners for revenues remains a concern

Technology Boost Aids Strategic Education (STRA), Costs Ail

Per the Zacks analyst, Strategic Education is benefiting from increased employer-affiliated enrollment and focus on technology platforms and marketing initiatives. Yet, high costs and expenses hurt.

New Upgrades

ROKU Rides on User Engagement & Strong Roku Channel Growth

Per the Zacks analyst, Roku is benefiting increased user engagement and ARPU. Growth of the Roku Channel in both reach and engagement is benefiting top-line growth.

Telephone and Data Systems (TDS) Rides on Solid Fiber Expansion

Per the Zacks analyst, healthy growth in residential broadband connections, backed by significant investment in fiber network infrastructure is expected to drive Telephone and Data Systems' top line.

New Downgrades

Weak Industrial Segment and Increasing Costs Ail Barnes (B)

Per the Zacks analyst, Barnes is experiencing softness in the Industrial segment due to weakness in the motion control solutions and automation businesses. High costs are an added concern.

Weaker China Demand, High Capex Ail ArcelorMittal (MT)

Per the Zacks analyst, the company faces challenges from weaker steel demand in China due to the slowdown in key end-use markets. High capital expenditure may also impact its free cash flows. n

Zacks Investment Research

Monday, August 26, 2024

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Eli Lilly and Company , Chevron Corporation and Abbott Laboratories , as well as a micro-cap stocks Bridger Aerospace Group Holdings, Inc. . The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Eli Lilly shares were hit hard during the recent market turmoil, but they have recouped all of their losses by now. On a year-to-date basis, Eli Lilly shares are up +63.9% vs. +29.3% for the large-cap pharma industry. Driving Eli Lilly's momentum is the company’s weight loss drug and a track record of strong quarterly results.

Eli Lilly has seen unparalleled success with its GLP-1 drugs, Mounjaro and Zepbound. Despite a short time on the market, they have become key top-line drivers, with demand rising rapidly. In the past couple of years, it has received approvals for several new drugs like Kisunla, Omvoh and Jaypirca and witnessed pipeline and regulatory success. Its new drugs have been contributing significantly to its top-line growth in 2024. Lilly is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s.

However, declining sales of Trulicity, rising pricing pressure on some drugs and potential competition in the GLP-1 diabetes/obesity market are some top-line headwinds.

(You can read the full research report on Eli Lilly here >>>)

Shares of Chevron have gained +0.2% over the past six months against the Zacks Oil and Gas - Integrated - International industry’s gain of +7.2%. The company is grappling with high sensitivity to oil price fluctuations and relatively expensive valuation. Another concern is the sub-100% reserve replacement ratio, indicating challenges in replenishing produced energy. Considering all these factors, investors are advised to wait for a better entry point.

Nevertheless, Chevron is positioned as one of the top global integrated oil firms, set for sustainable production growth, particularly due to its dominant position in the lucrative Permian Basin. Further, the planned acquisition of Hess Corporation is expected to significantly strengthen Chevron's presence in oil-rich Guyana.

(You can read the full research report on Chevron here >>>)

Abbott shares have gained +11.6% over the past year against the Zacks Medical - Products industry’s gain of +15.6%. The company’s pipeline is generating several new growth prospects, which will help sustain the positive momentum and contribute to the strong growth projection in 2024.

Alinity, the company’s next-generation suite of systems, is a key driver in the core lab diagnostics business. EPD's impressive performance stems from the company’s unique business model. The company is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales, beginning 2025.

Freestyle Libre CGM device is also on a great trajectory. Within Nutrition, after a period of hiccups, Abbott has finally reestablished itself as the market leader in the infant formula business. Yet, the significant runoff of COVID-19 testing-related sales is hurting Abbott’s Diagnostics growth. Tough macro conditions also pose a concern.

(You can read the full research report on Abbott here >>>)

Shares of Bridger Aerospace have underperformed the Zacks Aerospace - Defense industry over the past year (-54.9% vs. +0.3%). This microcap company with market capitalization of $165.88 million is witnessing high leverage and debt servicing pressures, seasonal revenue dependence, ongoing losses and execution risks in international expansion pose significant challenges.

Its success hinges on maximizing fleet utilization, managing debt and maintaining government contracts amid an unpredictable wildfire environment. Nevertheless, Bridger Aerospace is positioned to capitalize on the rising demand for aerial firefighting services, driven by climate change and population shifts to wildfire-prone areas.

Bridger Aerospace's fleet, including CL-415EAF "Super Scoopers" and advanced surveillance aircraft, secures its strong market position and ensures a stable income. The acquisition of FMS Aerospace diversifies revenue streams, adding year-round income and reducing reliance on seasonal fire activity. The expansion into international markets offers growth potential.

(You can read the full research report on Bridger Aerospace here >>>)

Other noteworthy reports we are featuring today include Phillips 66 , Occidental Petroleum Corporation and BCE Inc. .

Director of Research

Sheraz Mian

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Lilly's Mounjaro, Zepbound Key to 2024 Sales Growth

Chevron to Gain Guyana Foothold with Hess Buy

Core Lab Diagnostics, Solid EPD Prospect Aids Abbott

Featured Reports

Planned Investments, Permian Basin Focus Aid Occidental

Per the Zacks analyst Occidental's investments to strengthen infrastructure and expansion of Permian Basin operation through acquisition will drive its performance over the long run.

Strength in Bell Media Aids BCE, High Interest Costs Ails

Per the Zacks analyst, BCE's performance is cushioned by robust sales in the Bell Media segment. Higher depreciation and interest expenses are likely to dent its bottom line in 2024.

Focus on Cost Savings to Bolster McCormick's Margins

Per the Zacks analyst, McCormick's focus on cost-saving plans will continue to enhance its margins. The company expects its fiscal 2024 gross margin to increase by 50 to 100 basis points.

MAP 2025 Plan Aids RPM International , High Costs Hurt

Per the Zacks analyst, RPM International is benefiting from the execution of its MAP 2025 initiatives and solid demand trends across two of its reportable segments. Yet, high costs and expenses hurt.

Solid Budget Aids Curtiss-Wright Amid Fuel Price Hike

Per the Zacks analyst, increasing U.S. defense budget should boost demand for Curtiss-Wright's nuclear propulsion equipment. Yet rising fuel price might hurt airline industry and in turn the stock

Rising Loan Balance Aid First Horizon Amid High Costs

Per the Zacks analyst, First Horizon's strategic buyouts, as well as a strong presence across high-growth markets, are likely to drive its loan growth. Yet, the rising expense base is a concern.

Strong SMB clientele Aids BILL Holdings' Prospects

Per the Zacks analyst, BILL is benefiting from an expanding small and medium business clientele, as well as a diversified business model.

New Upgrades

Phillips 66's Diversified Business Model Aids Growth

Per the Zacks analyst, Phillips 66's focus on midstream, renewables and chemicals sectors should aid its cash flow. However, increasing regulatory costs might limit the company's profitability.

Patient-Centric Care Model, Overseas Growth Aid DaVita

The Zacks analyst is upbeat about DaVita's patient-centric business model that leverages its kidney care services platform. Steady expansion in the international markets is an added plus.

Globe Life Continues to Gain From Solid American Income

Per the Zacks analyst, Globe Life is set to grow on solid American Income distribution channel, which remains the largest contributor of premium and underwriting margin, that aided revenue growth.

New Downgrades

American Airlines' Prospects Hurt by Elevated Costs

High fuel and labor expenses at American Airlines bother the Zacks analyst. Weakness pertaining to liquidity represents another headwind.

Lower Production in Europe & Rising Debt Ail Magna

Per the Zacks analyst, lower vehicle production in Europe and no further production of the Fisker Ocean are likely to hit Magna's top line. Rising debt levels are also concerning.

Avnet Hurt by Declining Demand, High Inventory Levels

Per the Zacks analyst, softened demand in a tight IT spending environment, along with high inventory levels at customers, is likely to hurt Avnet's financial performance in the near term.

Zacks Investment Research