Latest news with #profitability
CNN
11 hours ago
- Business
- CNN
Turkish Airlines Chairman Says Supply Chain Snags are Impacting the Entire Industry
"Everybody [is] facing similar issues, similar problems, so how to utilize the existing capacity is the art to make the airline more profitable." Turkish Airlines Chairman Ahmet Bolat says supply chain snags are impacting the entire industry.
Globe and Mail
11 hours ago
- Business
- Globe and Mail
Spotify's Q1 Profitability Takes Off: What's the Secret Sauce?
Spotify Technology S.A. 's SPOT first-quarter 2025 profitability was top-tier, driven by robust top-line growth and disciplined expense management. Revenues increased 15% year over year in the quarter, driven by a combination of factors, including continued subscriber growth, average revenues per user gains associated with the price surge, growth in impression sales and automated sales channels. This striking top-line growth translated successfully into a gross margin expansion of 400 basis points (bps) from the year-ago quarter to 31.6%. Solid growth across Spotify's Premium and Ad-Supported segments aided this expansion. The premium gross margin was up 332 bps year over year, fueled by rising demand for audiobooks and music. Ad-Supported gross margin expanded 885 bps from the year-ago quarter, driven by strong podcast ad sales and content cost management. Spotify's success at curbing operating expenses by 3% year over year (at constant currency) in the first quarter of 2025 provided a head start in reaching its profitability position. The company managed to do so by reducing its marketing expenses, and cutting off personnel and related expenses. The impacts of increasing revenues, gross margin expansion and a decline in operating expenses drove SPOT's operating margin. In the first quarter of 2025, Spotify's record-high operating income skyrocketed 203% from the year-ago quarter, resulting in an operating margin expansion of a whopping 750 bps. In essence, SPOT's success is a textbook example of how improving the efficiency of core operations and controlling overhead expenses can fuel significant operating income growth, thereby boosting the company's profitability in the quarter. SPOT's Profitability Comparison With AAPL & AMZN There is no denying that Spotify's profitability position was impressive in the first quarter of 2025. However, it lagged its competitors, Apple AAPL and Amazon AMZN, in terms of return on equity (ROE). Spotify's ROE was 22.5%, lower than Apple's 167.2% and Amazon's 24.1%. In terms of return on invested capital (ROIC), Spotify stood at 24%, outpacing Amazon's 15.7% while lagging Apple's 43.9%. Spotify's Price Performance, Valuation & Estimates The SPOT stock has skyrocketed 129.2% in the past year, significantly outperforming the industry 's 37.6% rally and the 10.6% rise of the Zacks S&P 500 composite. 1-Year Price Performance Image Source: Zacks Investment Research From a valuation standpoint, SPOT trades at a forward price-to-earnings ratio of 60.15, above the industry's 39.66. It carries a Value Score of F. The Zacks Consensus Estimate for Spotify's earnings for 2025 is pegged at $9.26 per share, implying a 55.6% growth year over year. SPOT currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks 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 Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Spotify Technology (SPOT): Free Stock Analysis Report
Zawya
19 hours ago
- Business
- Zawya
SNB vice chairman says banks' capital and liquidity buffers remain key
ZURICH: Banks' capital and liquidity buffers remain key in the context of increased financial market volatility and persisting vulnerabilities in Switzerland's mortgage and residential real estate markets, Swiss National Bank Vice Chairman Antoine Martin said on Thursday. The interest rate environment in Switzerland has started to weigh on banks' profitability, Martin added in a speech after the SNB's latest interest rate decision. (Reporting by Ariane Luthi, Editing by Miranda Murray)
Yahoo
19 hours ago
- Business
- Yahoo
2 Profitable Stocks with Promising Prospects and 1 to Question
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn't mean it will thrive tomorrow. Not all profitable companies are created equal, and that's why we built StockStory - to help you find the ones that truly shine bright. That said, here are two profitable companies that balance growth and profitability and one that may face some trouble. Trailing 12-Month GAAP Operating Margin: 13.3% A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services. Why Do We Think Twice About LNN? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Projected sales for the next 12 months are flat and suggest demand will be subdued Earnings per share have dipped by 1.1% annually over the past two years, which is concerning because stock prices follow EPS over the long term Lindsay is trading at $135.13 per share, or 21.9x forward P/E. Check out our free in-depth research report to learn more about why LNN doesn't pass our bar. Trailing 12-Month GAAP Operating Margin: 26.7% The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE:TGLS) is a manufacturer of architectural glass, windows, and aluminum products. Why Do We Like TGLS? Annual revenue growth of 17.5% over the past five years was outstanding, reflecting market share gains this cycle Highly efficient business model is illustrated by its impressive 27.3% operating margin, and its operating leverage amplified its profits over the last five years Earnings per share grew by 43.6% annually over the last five years and trumped its peers Tecnoglass's stock price of $77.24 implies a valuation ratio of 18.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. Trailing 12-Month GAAP Operating Margin: 7.3% With a 50-year legacy of "Leading with Science" and operations on all seven continents, Tetra Tech (NASDAQ:TTEK) provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure for government and commercial clients worldwide. Why Does TTEK Stand Out? Market share has increased this cycle as its 20% annual revenue growth over the last two years was exceptional Sales pipeline is in good shape as its backlog averaged 15.6% growth over the past two years Revenue base of $4.56 billion gives it economies of scale and some distribution advantages At $35.98 per share, Tetra Tech trades at 24.9x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
Japan Times
20 hours ago
- Business
- Japan Times
Regional lender Jimoto Holdings exits government control
Shareholders of Jimoto Holdings approved Thursday a plan to resume dividend payments on preferred shares held by the government, allowing the regional banking group to exit from effective government control. The plan was approved at a general shareholders meeting held in the city of Yamagata. In the business year ended in March 2024, Jimoto Holdings incurred a net loss for the second straight year due to the deterioration of earnings at subsidiary Kirayaka Bank, based in Yamagata. The group also has Sendai Bank, based in city of Sendai, under its wing. At a general shareholders meeting in June 2024, Jimoto Holdings decided to forgo dividend payments, giving preferred shares that are held by the government voting rights equivalent to 63% of the total. At an extraordinary shareholders meeting in September last year, Jimoto Holdings revamped its management team, working to improve its profitability. As a result, the holding company regained profitability in the business year ended in March this year, and it decided on a policy of resuming dividend payments. The focus is now on whether the group will be able to repay a total of ¥78 billion in public funds injected into Sendai Bank and Kirayaka Bank as planned. Kirayaka Bank received public funds following the financial crisis triggered by the 2008 collapse of U.S. investment bank Lehman Brothers. Public funds were again injected into the bank, following the 2011 massive earthquake and tsunami that heavily hit northeastern Japan, and the COVID-19 crisis.
