Stock Repurchases: Continued stock repurchases have contributed to the rise in leverage; a total of CAD628 million of repurchases were made in 2015, following CAD612 million in repurchases in 2014.
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It spent $3371212 million on share repurchases in 3371908, and $33710310 million on share repurchases in 33711.
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Apollo spent $48 million on share repurchases in the first nine months of 2016, including open-market repurchases and repurchase of shares issued to employees.
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Share Repurchases Fitch's ratings for Host have some tolerance for share repurchases, provided the company executes its program within its stated financial policies, primarily sustaining leverage below 7503x.
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The firm's plan also includes an up to $11.5 billion of common stock repurchases, compared to $8.3 billion in share repurchases in the four quarters ended in the first quarter of 2017.
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Fitch expects that ALSN will continue to target most of its excess cash toward share repurchases, although Fitch also expects the company would pull back on repurchases if it needed to conserve liquidity.
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Largely as a result of that block share repurchase, the net amount the company spent on share repurchases in the LTM was $671 million, well above the amount ALSN typically spends on repurchases.
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The bank also said it plans $6403 million in repurchases.
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Aetna doubled its dividend and announced additional share repurchases Friday.
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The stepped up repurchases reflect strong first half free cashflow.
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BECKY QUICK: Another $75 billion that's been authorized for repurchases.
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"It could be repurchases, it could be dividends," he said.
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HP had about $1.2 billion remaining in approved share repurchases.
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Berkshire has not disclosed any subsequent repurchases under its program.
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And, you know, $2 of that comes from share repurchases.
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Recent commentary from management to prioritize share repurchases over larger-scale M&A is concerning to us as while it may support the share price near-term, repurchases do nothing to address broader pipeline concerns.
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Share repurchases ($500 million through June 30, 0003) could exceed Fitch's forecasted FCF of $800 million-$850 million in 2017, although Fitch believes this would represent a catch-up from no share repurchases in 2016.
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This is aided by the 2908Q'29121 higher cost debt repurchases.
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Previously, it was making repurchases to replace all securities that matured.
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Go deeper: Low-risk investments are fueling more private equity repurchases
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Several companies have since directed their tax savings to share repurchases.
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They could do it either by acquisitions, or dividends, or repurchases.
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The legislation has caused corporate America, to ramp up stock repurchases.
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The revision also reflects General Mills concurrent increase in share repurchases.
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In response to operational headwinds, the company has reduced share repurchases.
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BlackRock also approved a 9 percent dividend hike and additional share repurchases.
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At smaller firms, 25 percent of earnings growth is linked to repurchases.
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JPM's net payout ratio was approximately 48% including share repurchases in 2015.
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The hardware technology manufacturer authorized an additional $4 billion for stock repurchases.
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In earnings updates, investors can often gauge the pace of corporate repurchases.
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In the past two quarters Oracle paid almost $20 billion for stock repurchases.
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VW is contracting for storage space to house vehicles it repurchases, she said.
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TMK uses these cash flows mainly for debt service and significant share repurchases.
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Fitch expects free cash flow to continue to be dedicated to share repurchases.
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As we've gotten larger as an organization we have increased our stock repurchases.
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Any share repurchases occur on leverage-neutral basis per the company's recent activity.
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Aggressive share repurchases have sharply reduced share counts and inflated per-share profits.
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WARREN BUFFETT: I try to leave myself a year, two years of repurchases.
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WE SAW SOME OF OUR – SOME CLIENTS SELLING ASSETS FOR RISING STOCK REPURCHASES.
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Most of the company's FCF is expected to be used for share repurchases.
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For instance, Airbnb, the short-term rental site, is making annual stock repurchases.
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We anticipate Accenture will continue to use FCF for share repurchases and acquisitions.
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Repurchases executed at Bank of America accelerated last week to three-month highs.
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"We are not planning share repurchases for fiscal 2018," CFO Jane Nielsen said.
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ANNOUNCES FIRST QUARTER 2018 SHARE REPURCHASES Source text for Eikon: Further company coverage:
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Share repurchases have long been a pillar of support for the broad market.
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Fitch expects Ebay will use FCF for share repurchases and, to a lesser extent, acquisitions through the intermediate term Fitch expects intensified share repurchases in line with eBay's commitment to buying back up to $6 billion of stock through 2017.
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For example, JP Morgan increased planned share repurchases to $10.6 billion from $4.2 billion.
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By contrast, he said, suspending dividend payments and barring share repurchases produces slower results.
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IBM will pause share repurchases in 2020 and 2021, but won't touch its dividend.
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King Street has previously said Toshiba is "severely undervalued" and should boost share repurchases.
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The previous record for annual share repurchases was $809.6 billion in 2007, Santschi said.
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Krosby said companies have announced aggressive plans for repurchases but haven't executed them fully.
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Then they subtracted the amount of net monthly repurchases to arrive to that conclusion.
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Berkshire's holdings crept above 10 percent last year because of Wells Fargo's stock repurchases.
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In fact, stock repurchases are currently tracking at a 21-month low for March.
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However, FCF is expected to be used for share repurchases rather than debt paydown.
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This could consist of $21 billion in dividends and $63 billion in share repurchases.
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U.S. stock repurchases in Q1 were $2.953 billion, the strongest quarter in two years.
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Fitch assumes Jabil executes its share repurchases in the context of investment-grade metrics.
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In addition, Chipotle said its board had authorized another $100 million in stock repurchases.
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The primary use of cash through Fitch's forecast is expected to be share repurchases.
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As part of its resubmission, Capital One reduced the amount of authorized share repurchases.
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Goldman Sachs estimated that companies will spend $2023 trillion on share repurchases in 2018.
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FCF should be sufficient to fund debt reduction, modest share repurchases and small acquisitions.
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The bill specifically prohibits share repurchases using the money provided by the bailout package.
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The company returned $3.6 billion to shareholders through a combination of dividends and share repurchases.
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The company would likely use FCF to resume share repurchases, absent any other acquisition opportunities.
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Fitch anticipates share repurchases to range between $6 billion and $8 billion during fiscal 2016.
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AutoNation said net income per share remained flat at $1.05 a share, reflecting share repurchases.
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Buybacks, or share repurchases, have long been a pillar of support for the broader market.
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Fortunately for HSBC, it can afford the stock repurchases thanks to a healthy capital cushion.
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It was a one-time boost that was leading to this increase in share repurchases.
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He added that companies continue to pump money into the market through repurchases and acquisitions.
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The increase in earnings per share was also helped by share repurchases, the company said.
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In the first three months of this year, Apple spent $23.5 billion on share repurchases.
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And on Tuesday, it said it would initiate an additional $100 billion in stock repurchases.
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The proceeds from the issue will be used for general corporate purposes, including share repurchases.
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No winning streak lasts forever, and that includes Wall Street's impressive run of share repurchases.
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Fitch anticipates share repurchases to range between $7 billion and $8 billion during fiscal 2017.
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Calls are likely for more companies to begin offering payouts through dividends or share repurchases.
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However, share repurchases can sometimes be useful for reducing the overall amount of outstanding shares.
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The company has been stepping up repurchases, spending $100 million since September, according to filings.
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Big banks announced large new stock repurchases and dividends within minutes of the Fed's announcement.
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Nordstrom said it would be working toward making cost cuts and is suspending share repurchases.
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Share repurchases have been a key element during this bull market, the longest on record.
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"Those repurchases, they've been a huge waste of money and time for management," Cramer said.
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There is no sign the company will slow down its share repurchases anytime soon, either.
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Stock "repurchases will lift earnings per share, return on equity and share prices," he wrote.
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Goldman Sachs has estimated that share repurchases could total more than $453 trillion this year.
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Fitch notes that the company funded three fairly sizeable acquisitions in 2011-0501, as well as a high level of share repurchases, although it did suspend share repurchases in right after the Life Tech acquisition, before resuming stock buybacks of $500 million in 2015.
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This rule, which the SEC put in place in 1982, protects companies from insider trading when it repurchases its shares, as long as repurchases on any given day is less than 25 percent of the stock's average daily trading volume over the previous four weeks.
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Planned repurchases for the first half of this year increased from $2.5 billion to $4.3 billion.
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Combined with Deutsche Telekom's planned repurchases, the program could approach the $2 billion level, Carter said.
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Fitch does not expect CenturyLink to issue debt for future share repurchases in Fitch's base case.
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Mentions of "repurchases" are on the rise but "acquisition" shows up just three times this year.
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The company said it would initiate immediate share repurchases from $3.8 billion remaining on its authorization.
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Of the $8trn returned to shareholders in this period, just over half was via share repurchases.
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The schedule for potential repurchases was flagged by Swiss newspaper Neue Zuercher Zeitung earlier on Wednesday.
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Smaller banks are more likely to use their capital for loan growth than for stock repurchases.
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It is planning $1 billion to $1.8 billion in annual share repurchases over the same time.
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For all of 2015, share repurchases totaled $572.2 billion, an increase of 3.4 percent from 2014.
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Stock prices are high, which will discourage repurchases and higher interest rates will reduce the appeal.
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Bastian said the savings would not be spent on investors in the form of share repurchases.
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His warning comes as stock repurchases decline a bit after setting all-time highs in 2018.
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Share repurchases were next at 46 percent while mergers and acquisitions ranked third at 42 percent.
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On the strength of its repurchases, Target's earnings per share rose by 7.3 percent each year.
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The railroad said it was increasing its expected annual share repurchases to $1.5 billion for 2018.
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The strong investment response to the TCJA should alleviate concern about increased share repurchases and dividends.
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Apple, a big beneficiary of the new tax law, has ramped up its repurchases this year.
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We were encouraged that management recently mentioned exploring share repurchases, which is a good first step.
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Then it turned around and spent over $21970 billion in stock repurchases from 2401 to 21990.
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Pfizer said the new forecast reflects $6.1 billion worth of share repurchases already completed in 2018.
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Including share repurchases, we think cash returned to shareholders next year should be north of 6%.
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COMMITMENT TO SHAREHOLDER RETURNS LIMITS RATINGS HEADROOM Agilent's commitment to return 85% of pre-dividend FCF to shareholders through dividends and share repurchases reduces flexibility at the current rating level, as the company plans to finance the share repurchases by issuing $0003 million of annual incremental debt.
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The timing of the share repurchases will depend on several factors, including market conditions, the company said.
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Net share buybacks (share repurchases minus stock issuance) spiked 99% to a record $467 billion, Moody's said.
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The company added that it had made $928 million in share repurchases in the three-month period.
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Falling capital spending could also help Honeywell boost acquisitions, share repurchases and dividend growth, the newspaper said.
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Share Repurchase and Dividends Growing: Management expects to complete approximately $1 billion in share repurchases in 2016.
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Brown's bill would require companies to offer employees $2 for every $1 million spent on stock repurchases.
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The previous earnings season, in January and February, saw U.S. companies announce $191.4 billion in share repurchases.
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Big banks' reliance on share repurchases could be a hot-button topic ahead of the 2020 elections.
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Chuck Schumer and Bernie Sanders to Marco Rubio support bills that restrict or tax corporate share repurchases.
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Once the company repurchases stock, there are fewer shares outstanding, which, in turn, lifts earnings per share.
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Shareholders' equity grew by 2.5% in 1H17, with underwriting profits slightly exceeding share repurchases and shareholder dividends.
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IBM said it returned $2.6 billion to shareholders through dividends and share repurchases in the first quarter.
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Goldman Sachs estimates that spending on repurchases will fall 15% this year and another 5% in 2020.
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After it gave the go-ahead, many major banks announced significant increases to dividends and share repurchases.
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Proving this requires banks to outline their planned dividend repurchases and share buybacks a year in advance.
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FCF should be sufficient to fund what Fitch expects will be moderate share repurchases and increasing dividends.
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Ongoing margin expansion coupled with debt paydown and share repurchases will drive nearly 653% annual EPS growth.
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Corporate America set a record for stock repurchases last year, even as lawmakers proposed curtailing the practice.
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Some critics argue that workers should come ahead of G.M.'s robust profits and hefty share repurchases.
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The eight biggest U.S. lenders, led by JPMorgan Chase & Co , already halted stock repurchases earlier this month.
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It expects share repurchases in the second half of 2018 to continue at about the same pace.
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Resources segment and share repurchases continue to support EPS, but are unable to fully offset these headwinds.
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All these would have varying impact to reduce the extent to which companies rely on stock repurchases.
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It also maintained it will not allow repurchases to reduce its cash and equivalents below $20 billion.
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The ratings incorporate Fitch's expectations that Avnet would moderate share repurchases in the face of pressured FCF.
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Buffett said he would be happy to see the Apple share price fall if it would spur repurchases.
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WARREN BUFFETT: Repurchases can be the dumbest thing in the world or the smartest thing in the world.
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Nevertheless, Fitch views share repurchases as a credit negative that, all else equal, favor equity holders over bondholders.
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A Goldman Sachs basket of companies with the highest share repurchases has underperformed the broader market this year.
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Agilent will help finance the share repurchases with $250 million of incremental debt each year from 2016-2018.
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Goldman Sachs expects S&P 500 share repurchases to climb another 22 percent to $940 billion next year.
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Gilead also raised its quarterly dividend by 10 percent and authorized an additional $12 billion in share repurchases.
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Citigroup must receive permission from regulators before it can return capital to shareholders through stock repurchases or dividends.
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The share repurchases in the march quarter drove Apple's cash net of debt down slightly to $216 billion.
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Share repurchases are controversial since that money flows to investors, who tend to be wealthier than most Americans.
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Each of these 15 companies gets at least 5% of their average daily trading volume from net repurchases.
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Over the past several years, ALSN has begun returning more cash to shareholders through dividends and share repurchases.
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Oracle noted in its statement that its board has increased the authorization of share repurchases by $12 billion.
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Cash Deployment: Fitch expects Liberty's free cash flow (FCF) to be dedicated to share repurchases and debt reduction.
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"We think it's possible, if Apple wanted to, it could do $100 billion in extra repurchases," Sacconaghi said.
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As large as those numbers seem, they don't reveal the degree to which the repurchases have benefited shareholders.
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KBW projects universal banks — the biggest Wall Street names — will plow $97 billion into share repurchases in 2018.
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Munger, for his part, warned that some companies use repurchases simply to prop up their own stock prices.
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Repurchases hit $384 during the first six months, a 48 percent jump from the same period in 2017.
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Other factors supporting the stock include overall expectations for growth in global athletic footwear sales and share repurchases.
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Buybacks reached a fever pitch last year as U.S. companies announced a record $1 trillion in share repurchases.
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The academics then examined the amounts these companies had spent on repurchases compared with their current market capitalizations.
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Revenue also beat Street forecasts, and the company announced the approval of an additional $843 million in share repurchases.
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In a stock buyback, a company repurchases its own shares from the broader marketplace, usually through the open market.
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The bank is coming off a year in which it returned $12.5 billion to shareholders through repurchases and dividends.
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Net share buybacks (share repurchases minus stock issuance) at US nonfinancial companies covered by Moody's spiked 99% in 2018.
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In the absence of acquisitions, Fitch believes shareholder returns, especially opportunistic share repurchases, will take precedence over debt reduction.
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Since then, he has repeatedly highlighted the relatively slow growth in wages to the massive jump in share repurchases.
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Charles Schumer and Bernie Sanders recently proposed requiring companies to meet certain requirements before being allowed to do repurchases.
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Many believe those share repurchases have provided up to 70 percent of the support in the market, he added.
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Bank of America said the proposed repurchases are not connected to the company's 2016 capital analysis and review submission.
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Share repurchases have hit records for the past four consecutive quarters, according to the S&P Dow Jones data.
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Honeywell expects to spend proceeds from the spinoffs on potential acquisitions, share repurchases as well as to extinguish debt.
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The bank only said the plan allows share repurchases, dividend increases, and issuance and redemption of other capital securities.
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JNJ intends to use the net proceeds from the issuance for share repurchases, debt reduction and general corporate purposes.
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Even if repurchases slow down, companies are buying back so much stock that it wipes out selling by investors.
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Share repurchases have been a go-to move for companies to lift their stock prices over the past decade.
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Goldman Sachs warns on buybacks A company that repurchases its shares on the open market typically retires those shares.
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Nestlé said the bulk of repurchases would take place in 2019 and 2020 to let it make takeovers first.
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The London-based bank has announced $5.5 billion in share repurchases since last year as its prospects have improved.
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Fitch expects Ebay will use net proceeds from the issuance for general corporate purposes, including share repurchases and acquisitions.
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The board has now authorized $15 billion for share repurchases, up from the $5 billion authorization announced in October.
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"Corporate repurchases remain the largest source of demand for shares," wrote David Kostin, chief U.S. equity strategist at Goldman.
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In 1982, the Securities and Exchange Commission adopted a rule that allowed share repurchases, provided they followed certain rules.
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Earnings for fiscal 33 are expected to be about $1.42 a share, excluding the impact of any potential share repurchases.
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The company also said it expects to allocate part of the proceeds from this transaction to increase its share repurchases.
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So far during this two-year downturn Exxon and Chevron have held their dividends as sacrosanct, while curbing stock repurchases.
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Like other big U.S. banks, Citigroup cannot return capital to shareholders through stock repurchases or dividends without permission from regulators.
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"What we did find to be a more helpful indicator is when Apple really accelerates its share repurchases," Sacconaghi said.
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Big U.S. banks are showering investors with fatter dividends and share repurchases after passing the Federal Reserve's annual stress tests.
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The plan, unveiled Tuesday, would eliminate the preferential tax treatment of share repurchases as a way to discourage that behavior.
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Suncor reduced it's debt by C$1.2 billion in the quarter and spent nearly C$900 million on share repurchases.
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After the Trump administration slashed taxes on corporations, American companies spent a record $1.1 trillion on share repurchases last year.
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Brands Inc says $4.2 billion in additional share repurchases of outstanding common stock is authorized through december 31, 2016 * Yum!
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ABM said it does not expect to do share repurchases in the near future, in light of the pending deal.
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HRS has de-leveraged slower than Fitch expected following the XLS acquisition driven by recent portfolio reshaping and share repurchases.
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Dover said it expects share repurchases of $1 billion in 2018, including the use of cash from the Wellsite dividend.
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Apple alone has already announced $100 billion in share repurchases on top of its previously announced $210 billion repurchase program.
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If repurchases fail to keep up with the recent pace, the effect of declining earnings on valuations could be magnified.
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Changes to how overseas profits are treated also allowed it to plow a record amount of cash into stock repurchases.
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Through July of this year, United States corporations authorized $29 billion in repurchases, according to an analysis by Birinyi Associates.
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According to investment research firm Birinyi Associates, share repurchases grew more than $200 billion in 2018, 1.1 percent of GDP.
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Last year, those airlines and Southwest spent a collective $143 billion on share repurchases, up from $5.7 billion in 2018.
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The company also said that it would be decreasing capital expenditures by approximately $500 million and temporarily suspending share repurchases.
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Although that's still a stunning amount of repurchases, it marks a 103% decline from the same period a year ago.
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The No. 2 Canadian crude producer Suncor Energy Inc on Monday cut its 2020 production outlook and suspended share repurchases.
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In securities markets like Hong Kong, share repurchases must be reported at least 30 minutes before the next trading day.
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He told CNBC in an interview Monday that using the cash for share repurchases is not out of the question.
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The updated outlook includes the impact of $7 billion of share repurchases made this year, Home Depot said on Tuesday.
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Cramer pointed to the trend of share repurchases, or stock buybacks, emerging among major companies like J.P. Morgan and Citigroup.
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The company also said it expects to allocate part of the proceeds from this transaction to increase its share repurchases.
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"For a company as troubled as Sears to be doing repurchases, it's predictable it's in the state it is now."
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Rubio's pushback against buybacks comes as Democrats have slammed the spike in share repurchases sparked by the 2017 tax law.
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S&P warned of a 1-in-3 chance of another rate cut if Oracle doesn't slow down its repurchases.
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Analysts across Wall Street are widely expecting a jump in share repurchases, but J.P. Morgan's forecast is the most aggressive.
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The company relaxed rules it had on share repurchases last year and has since been an aggressive buyer of Berkshire stock.
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After its bond prices collapsed in August, it then bought back a further 32.8m through a series of open market repurchases.
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The New York-based asset manager returned $3.6 billion to shareholders in 3973, including $1.7 billion of full year share repurchases.
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Allergan expects to execute half of that in open market repurchases over four to six months subject to favorable market conditions.
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Share repurchases improve this gauge of profitability because when a company buys back shares, it shrinks the number of shares outstanding.
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Debt is expected to remain essentially flat and Kellogg will continue to allocate $1.4 billion towards share repurchases and dividends annually.
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CSX also said its board authorized $1.5 billion in share repurchases, which builds upon the $1.5 billion program it recently completed.
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Apple said it returned more than $21 billion to shareholders during the fiscal third quarter, including $17 billion in share repurchases.
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As such, if FITB were to redeploy a majority of related gains into share repurchases, this would likely impact FITB's ratings.
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Fitch anticipates HUM using the proceeds from the planned issue for general corporate purposes, which may include share repurchases and acquisitions.
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The big picture: One driver of private equity repurchases, even at higher valuations, is that the investments are largely de-risked.
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BlackRock also announced a 5 percent increase in its quarterly dividend to $2.29 per share and $300 million of share repurchases.
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AIG's board has also authorized an additional $2.5 billion in share repurchases, putting the company closer to its capital return target.
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BlackRock also announced a 9 percent increase in its quarterly dividend to $2.50 per share and $275 million of share repurchases.
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But it remains unclear when the divestments will give way to share repurchases, and some investors appear to be growing impatient.
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However, like other big U.S. banks, Citigroup cannot return capital to shareholders through stock repurchases or dividends without permission from regulators.
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Fitch expects Flex will use FCF for share repurchases and acquisitions focused on access to technologies and customers in growth markets.
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Rubio backed a plan that would raise taxes on capital gains as a way to discourage companies from pursuing share repurchases.
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This could also be achieved via a commitment toward reducing share repurchases in favor of debt reduction alongside continued EBITDA growth.
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Especially problematic are buybacks financed with borrowed money; repurchases of stock made at prices above its intrinsic value are also unwise.
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American, Delta, United and Southwest spent a collective $353 billion on share repurchases last year, up from $235 billion in 214.
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Goldman Sachs a few days ago estimated that share repurchases will eclipse $1 trillion for the year, exceeding already-lofty expectations.
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He thinks investors are better off with repurchases, because they get a larger share of the company when shares are reduced.
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The company said it would use the proceeds to support its capital allocation strategy, including pension pre-funding and share repurchases.
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And as its prospects have improved, it has announced $5.5 billion in share repurchases since the second half of last year.
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The Omaha, Nebraska-based company spent $1.3 billion on share repurchases that month, mainly from the estate of a longtime shareholder.
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And after previously announcing it would suspend share repurchases, it announced Thursday that it was formally ending its share repurchase program.
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During the 2004 tax holiday, stock repurchases were a forbidden use of the cash, but that rule proved difficult to enforce.
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If share repurchases fall more than expected next year, it could lead to slower earnings per share growth and increased volatility.
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"Share repurchases are arguably the most conservative things companies can do with their money other than pay down debt," he added.
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On Tuesday, the company said it had returned $25 billion to shareholders in the quarter, including $20 billion in share repurchases.
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A short-seller borrows shares, sells them, waits for the stock to fall, and then repurchases them at the lower price.
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With the price of oil near $22013 a barrel, the company said it would pare share repurchases as a cost-saving measure.
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Shareholder Returns Continue: Discovery has completed more than $0003 billion of share repurchases from the program's inception in late 2010 through Dec.
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Samsung also said it would expand its share buyback after completing a record 11.4 trillion won ($113 billion) of repurchases this year.
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The increase was due primarily to net income and incrementally lower risk-weighted assets offset by common share dividends and share repurchases.
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Samsung also said it would expand its share buyback after completing a record 11.4 trillion won ($9.8 billion) of repurchases this year.
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Fitch views positively management's guidance for share repurchases in a more modest range of $800 million to $1 billion in FY 2018.
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"We also returned significant capital to shareholders in the form of our regular dividend and $196 million in share repurchases," he added.
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In the absence of attractive acquisition opportunities, Fitch believes that shareholder returns, especially opportunistic share repurchases, will take precedence over debt reduction.
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In addition, the bank is foreseeing more share repurchases from Apple this year, which could offer additional support to the stock prices.
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It's that surge in share repurchases that exacerbates inequality among Americans, Schumer and Sanders argued in their New York Times op-ed.
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Returnly fronts consumers their money in the form of an online wallet that can be used for repurchases from the same brand.
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Companies are now expected to repatriate the cash to fund dividend payments, share repurchases or finance other activities including mergers and acquisitions.
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Huntsman said it intends to speed up its share repurchases under its existing $1 billion multi-year authorization after the deal closes.
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Ellison also said he was stopping $500 million worth of previously planned investments and would put the money in share repurchases instead.
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Exxon held an analyst day Wednesday where it shared details about reducing capital expenditures, cutting share repurchases and raising money in debt.
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If earnings are the lifeblood of stocks, then share repurchases have been the nutrients on the plate that have kept circulation going.
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The company said it expected that repurchases under the new buyback program would be made over the next 24 to 30 months.
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Additionally, a negative action may also be considered if the company engages in sizable share repurchases or acquisitions prior to reducing leverage.
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The rating incorporates Fitch's belief that the company will deploy liquidity, including FCF, toward share repurchases and acquisitions in a disciplined manner.
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Business spending isn't booming The market appears to have become more reliant on repurchases, with stocks stumbling when buybacks get turned off.
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Simply put, the nature of share repurchases allows them to be used as a possible tool for various forms of market manipulation.
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AutoNation's CP program is used to finance such needs as working capital, acquisitions, capital expenditures, share repurchases and other general corporate purposes.
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This situation is only deepening the backlash against buybacks, paving the way for bipartisan restrictions against share repurchases by bailed-out companies.
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During 2016, Wells Fargo returned $12.5 billion to shareholders through common stock dividends and share repurchases net of stock issued to employees.
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The cash Cisco spent on stock repurchases over the past five years amounted to 2310 percent of its cash flow from operations.
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But investors have hoped that the company would spend more on stock repurchases, since loosening its policy on such moves in 2018.
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Earnings per share are expected to fall within a range of $3.35 to $3.55, excluding the impact of any future share repurchases.
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Corporations announced $433.6 billion in share repurchases during the period, nearly doubling the previous record of $242.1 billion in the first quarter.
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Repurchases done on the open market, which constitute the vast majority of all buybacks, are nothing but manipulation of the stock market.
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Completed stock repurchases surged last week to their fourth-highest weekly level since Bank of America began tracking the metric in 2009.
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The note points to how stocks perform during blackout periods, when buybacks are prohibited, to show what could happen with fewer repurchases.
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Further, Navient could continue to utilize excess liquidity and cash flow to prepay unsecured debt through open-market repurchases and tender offers.
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The bank is one of the most aggressive buyers of its own stock, with repurchases tripling last quarter to nearly $7 billion.
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By reducing the equity outstanding at a company, the repurchases increase its per-share earnings, often giving a boost to its stock.
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Yum did not immediately have a breakdown on much of the extra returns would be from share repurchases and how much from dividends.
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Shareholder Returns Increasing Share repurchases have ramped up the past two years to $300 million annually compared to none in 2012 and 05403.
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In 2017, the board signed off on share repurchases of up to $15 billion of its Class A shares with no expiration date.
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The Fed may also limit banks' dividends and share repurchases if it finds they do not have enough capital in the worst scenario.
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Fitch's existing assumptions did not reflect the sale of TI or a modest level share repurchases as have occurred under a new NCIB.
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Amgen has a good balance of returning capital to shareholders (repurchases, dividends), pipeline, and ability (yet not urgent need) to do M&A.
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Dimon called share repurchases "an essential part of proper capital allocation" though he acknowledged that companies should focus on investing for the future.
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Fitch expects FCF to be directed towards the repayment of the company's $400 million term loan in 2016 and towards share repurchases thereafter.
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Delta earned $5.9 billion in 2015, dished out $2.6 billion in dividends and share repurchases and there are only 770 million shares outstanding.
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This "light-touch" regulation allows less accountability from executives and would do little to prevent them from taking personal advantage of share repurchases.
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More profits left after taxes should make more capital available for additional dividends and share repurchases that could help lift bank stock prices.
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But share repurchases allowed for a 5% increase in earnings per share, which was a bit better than forecast by Wall Street analysts.
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Berkshire also reported a rare stock buyback of $928 million after the board in July removed strict limits that essentially prohibited share repurchases.
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The board also approved an estimated $900 million in repurchases to offset shares awarded under equity-based compensation plans during the same period.
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The company said tax reform legislation should create additional cash flow in 2018 it will use for capital investments, dividends and share repurchases.
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Miller, an Apple investor, wants Apple to use some of its cash to boost share repurchases and reinvest some in the services business.
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Berkshire did step up repurchases of its own stock, buying back roughly $22019 billion after repurchasing $211 billion in the prior nine months.
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But investors excited about the prospect of repatriation are generally hoping the money would be used for dividends, share repurchases or growth acquisitions.
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Toshiba said it will carefully consider the timing and method of the share repurchases but aimed to carry them out as soon as possible.
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The company has returned and authorized approximately $67 million in dividends in FY2017 and conducted nearly $30 million in share repurchases (reported through 3Q0003).
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Share repurchases of approximately $30 million annually through FY2019, assuming extension of the share repurchase program set to expire at the end of FY2018.
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Fitch expects FCF will be adequate to fund modest discretionary spending for acquisitions, share repurchases and other uses while maintaining steady debt and leverage.
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The company also announced a new share purchase programme of up to $400 million and said it had completed $215 million in share repurchases.
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COSTCO CFO- SALES HIGHLIGHTS FOR Q3 INCLUDE DIAMOND REPURCHASES IN $400,000 RANGE AND BIG-TICKET ITEMS LIKE GOLF SIMULATORS THAT SOLD FOR $14,000 EACH
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In fact, that rule hasn't been touched since 2003, when the SEC required companies to disclose more information on share repurchases, among other amendments.
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Cabot said it plans to distribute greater than 24 percent of that money to shareholders annually through a combination of dividends and share repurchases.
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Brown said his bill would both prohibit "excessive" buybacks and require companies to offer employees $153 for every $1 million spent on stock repurchases.
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He contends that much of the bottom-line improvement has come through reductions in loan-loss provisions and a steady diet of share repurchases.
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Apple said that it would spend $75 billion on share repurchases and it also approved a 75 cent dividend per share, a 5% increase.
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Why it matters: GTCR previously owned AssuredPartners between 2011 and 2015, and today's news is part of a growing trend of private equity repurchases.
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Bank of America Merrill Lynch estimates repurchases are up 91 percent year over year, with staples and materials leading followed by tech and financials.
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Apple, for example has executed more than $250 billion in repurchases over the past decade through 2018, according to S&P Dow Jones Indices.
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The firm repurchased $2.3 billion of stock in 0003Q16, yielding a total payout ratio (dividends plus share repurchases) of about 65% in the quarter.
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Fitch currently models $1 billion of share repurchases and $240 million of dividends for calendar year 2016, in addition to $1.8 billion of acquisitions.
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Most of the academic research on stock repurchases over the last few decades has pointed to long-term abnormal returns following stock buyback announcements.
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Fitch expects EA's overseas cash balances to grow in lieu of repatriation and as the company utilizes domestic FCF to fund its share repurchases.
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Conversely, cash depletion (or additional borrowing) related to share repurchases, special dividends or the company taking on large-scale projects could pressure the IDR.
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Investors have been pushing the company to resume repurchases which were halted in 2016 except to offset the dilution the stock issues to employees.
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GameStop said proceeds from the sale may be used to reduce debt, fund share repurchases and reinvest in core video game and collectibles businesses.
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Evercore ISI's macro research analyst Dennis DeBusschere says he's identified a group of companies that may dramatically reduce their repurchases, leaving their stocks vulnerable.
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Shareholder-focused activities, such as dividend increases and share repurchases will likely continue, and Fitch believes the company will largely finance these with FCF.
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Such repurchases have boomed this year as the strong economy — and steep cuts in corporate tax rates — have left American companies flush with profits.
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U.S. President Donald Trump said on Thursday during a press conference that he would not oppose banning stock repurchases under his administration's stimulus plan.
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Last year, Walmart gave $12 billion to shareholders in dividends and stock repurchases, and a lot of that went right to the Walton heirs.
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In the fourth quarter of 2019, JPMorgan alone did more than $6 billion in net repurchases, which accounts for extra shares issued to employees.
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U.S. President Donald Trump said on Thursday during a press conference that he would not oppose banning stock repurchases under his administration's stimulus plan.
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Congress is taking notice: the Reward Work Act introduced by Senator Tammy Baldwin in March would ban stock buybacks done as open market repurchases.
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FCF is projected to approximate $7503 billion or more annually during this time period and to be deployed mainly towards share repurchases, absent acquisitions.
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Apple represented about 220.83 percent of the technology sector's total with $199.6 billion of share repurchases in the time period, according to its website.
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An era of ultra-low interest rates gave U.S. companies an unprecedented opportunity to boost their share prices with stock repurchases and higher dividends.
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Fitch expects HMHC to continue to deploy cash towards organic growth, share repurchases, and acquisitions in digital and adjacent K-12 educational material markets.
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The firm repurchased $2.3 billion of stock in 3Q0003, yielding a total payout ratio (dividends plus share repurchases) of about 65% in the quarter.
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IHS Markit is likely to pursue higher levels of share repurchases and begin to target meaningful acquisitions, necessitating increased issuance needs over the ratings horizon.
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In any event, on the airlines, if we own 24 percent we might find we were 210 percent, or something like that, because of repurchases.
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In any event, on the-- on the airlines-- if we own 217% we might find we were 24% or something like that, because of repurchases.
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Going forward, Fitch expects the company will use pre-dividend FCF for dividends and acquisitions first, using any remaining domestic cash flow for share repurchases.
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He is correct that a significant amount of money has flowed to stock repurchases, as was the case when he was in the White House.
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Many thorny issues remain, including what happens to vehicles that Volkswagen repurchases and how the automaker will handle buybacks and fixes if the EPA approves.
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In 2004, companies brought back some $362 billion from overseas but used it primarily to reward investors through stock repurchases, dividends, and mergers and acquisitions.
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The Wichita, Kansas-based company has tried to cut costs amid the grounding by freezing hiring, offering voluntary retirements, pausing share repurchases and deferring spending.
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The Fed is beginning to tighten and drain liquidity from the markets, utilizing reverse repurchases to provide a soft floor under short-term interest rates.
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Announces stock repurchase plan * Says extension brings total amount of authorized share repurchases under plan to $40 million Source text for Eikon: Further company coverage:
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Money flow was a bigger factor than growth or value in February, as companies authorized a record number of share repurchases this year, he said.
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"If Berkshire shares are selling below intrinsic business value, massive repurchases will almost certainly be the best choice," he wrote in his 2011 annual letter.
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He said GM expects to generate free cash flow of $5 billion in 0003, with as much as $2.8 billion available for additional share repurchases.
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Shareholder Returns Expected to Moderate Share repurchases have ramped up the past two years to $4807123 million annually compared to none in 212001 and 2013.
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"Looking forward, we expect to continue to return excess cash to our shareholders in the form of increased dividends and continued share repurchases," he said.
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Asked whether investors could expect more share repurchases in light of America Movil's reduced debt, Garcia Moreno suggested the company was working toward that aim.
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KEY RATING DRIVERS Outside of investing in its core businesses and growth initiatives, share repurchases continue to be the centerpiece of CBS's capital allocation strategy.
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The 220 banks Barclays covers have committed to return $22008 billion of capital to shareholders in dividends and share repurchases, he said in the note.
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In last year's proxy season, BlackRock funds opposed five percent of resolutions to approve share buybacks or repurchases, according to Proxy Insight's analysis for Reuters.
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After paying down debt, the next most likely use at 46 percent is share repurchases, followed by mergers and acquisitions, and only then capital expenditures.
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Heading into talks about the latest response package Friday, Senate Minority Leader Chuck Schumer said he would not back a bailout without forbidding share repurchases.
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Shares of Warren E. Buffett's Berkshire Hathaway jumped about 5 percent on Wednesday, after the company said it had removed a limit on share repurchases.
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These funds could be used for capital projects, dividends/share repurchases, consumption, or job creation – all of which represent a boost to the weak economy.
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Speaking to CNBC, Ermotti kept the door open to further repurchases this year if good opportunities come up, despite the bank already meeting its target.
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Share repurchases continue to be the centerpiece of CBS's capital allocation strategy and the primary tool the company will use to achieve its leverage target.
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KEY ASSUMPTIONS --Organic revenue growth of nearly 4% annually; --EBITDA margin increases by 100 basis points annually through FY2018; --Post-dividend FCF exceeds $2.3 billion per year through FY2018; --Most of Accenture's post-dividend FCF will be used for share repurchases and acquisitions; --Accenture will not engage in significant debt-funded share repurchases or acquisitions that would signify a shift in the company's financial policies.
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Home Depot also said Tuesday it now expects to complete roughly $8 billion in share repurchases for the year, up from initial plans for $6 billion.
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Return of capital through share repurchases are anticipated to sharply decline, with a renewed emphasis on deploying earnings into the existing business and new growth opportunities.
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IHS Markit stated it intends to use the net proceeds from the offering for general corporate purposes which may include repayment of indebtedness or share repurchases.
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Using hedge fund analytics tool Kensho, CNBC conducted a study to find out which Dow Components and sector ETFs perform well once the stock repurchases resume.
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Goldman has forecast total repurchases this year of about $1 trillion, which it expects to support the firm's 2,850 price target for the S&P 500.
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In the first quarter, share repurchases totaled $161.4 billion, up 12 percent from the fourth quarter of 2015 and the second highest quarterly buyback total ever.
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BB&T said it expects "minimal effects" to its other equity capital markets services, which include equity syndicate, at-the-market ATM offerings, and share repurchases.
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Of course, Amazon already caters to the repeat shopper through other programs, like Subscribe & Save, which offers discounts on frequent repurchases, like dog food and diapers.
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Kellogg, which makes Corn Flakes and Raisin Bran cereals, also said on Thursday it would need to cut back on share repurchases to maintain financial flexibility.
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The interest rate on secured general collateral repurchases, in which banks and dealers use Treasuries as collateral to borrow from investors, is of a comparable size.
|
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Raytheon's Chief Financial Officer Toby O'Brien said the company will continue to invest in itself, but also return cash to shareholders through dividends and share repurchases.
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The Swedish company said its share repurchases and dividend policy would be unaffected by the deal, but its shares were down 3.7 percent by 1300 GMT.
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He suggested that it could, instead, dedicate roughly $25 billion for dividends over the next five years, leaving an additional $135 billion left for share repurchases.
|
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Ratings incorporate Fitch's expectations that the company's share repurchases and M&A activity will likely exceed FCF generation given strong liquidity and the current credit profile.
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Since Lampert merged Sears and Kmart together in 2005, the company squandered $6 billion on share repurchases in a failed attempt to support its stock price.
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Share repurchases for all companies are averaging $7.8 billion a day in what is expected to be a record year, according to market research firm TrimTabs.
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Investors and analysts will be looking out for Omnicom's forecast for the second quarter and the full year, as well as details on possible share repurchases.
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The company also said it may use a portion of the funds "to acquire complementary businesses, products, services, or technologies" or to repurchases of Snap stock.
|
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Fitch expects the company will deploy much of its post-dividend FCF toward share repurchases, with some further debt reduction, as the company's term loan amortizes.
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A "buyback blackout" is a period of several weeks around announcement of quarterly results when companies and their executives refrain from issuing any new share repurchases.
|
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A downgrade could result from lower than expected cash flows, leading Agilent to issue more than the expected additional debt to fund dividends or share repurchases.
|
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Good FCF, Increased Share Repurchases: Flowers generates good free cash flow (FCF), which Fitch projects will approximate $95 million in 2016 and $80 million in 2017.
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The enhanced financial flexibility provided by the elimination of Windstream's dividend (net of cash used for share repurchases) serves as an additional avenue for modest deleveraging.
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The drugmaker plans to buy back up to 10% of its stock over the next three years with an eye to cancel the shares it repurchases.
|
|
With a lower corporate tax rate, businesses are expected to bring more foreign earnings home, increasing the cash available to pay for dividends and share repurchases.
|
|
"The reluctance to pull the trigger on share repurchases suggests corporate leaders are becoming less enthusiastic about what they see ahead," said TrimTabs CEO David Santschi.
|
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Good FCF, Increased Share Repurchases: Flowers' generates good free cash flow (FCF), which Fitch projects will approximate $95 million in 2016 and $80 million in 2017.
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The brokerage is overweight consumer staples, as well as financial and energy stocks thanks to compelling valuations and prospects for healthy dividends and repurchases, the strategist added.
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This commitment would be reflective of achieving a more balanced capital allocation policy with a pullback in share repurchases and a commitment to reduce gross debt levels.
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In April it announced it was suspending the repurchases of company shares, a way to compensate shareholders, in order to conserve cash to deal with the crisis.
|
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Crown's stake in Melco will fall to 27.4 percent from 34.3 percent after Melco International Development repurchases 155 million shares from a subsidiary called Crown Asia Investments.
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Rather than lamenting the buyback numbers, Aureus Asset Management's Karen Firestone says to focus instead on where the money not used on share repurchases might be going.
|
|
If you also exclude a monster buy-back by Amgen, a drugs company, the share of cashflow spent on repurchases by the remainder has risen more modestly.
|
|
The ratings have limited tolerance for Host's leverage temporarily increasing to the mid-3.0x range for a strategic acquisition and, to a lesser extent, for share repurchases.
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At GM, CEO Mary Barra has matched or beaten financial targets for profit, share repurchases and return on invested capital agreed upon with activist investors last year.
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What's most shocking about Apple's dividend is that it could easily be even bigger if the company didn't also choose to deploy some capital via share repurchases.
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The profit forecast was increased, with Home Depot now expecting earnings per share, after anticipated share repurchases, to rise about 11 percent year-over-year to $7.15.
|
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Fitch expects adjusted leverage (debt plus capitalized leases/EBITDAR) to remain stable at around 2x, as the current pace of share repurchases and investments such as Jet.
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However, investor surveys have reflected a desire for less cash devoted to repurchases and dividends and more for capital expenditures, research and development, and mergers and acquisitions.
|
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In 2015, the company issued $3.5 billion of debt to fund share repurchases which offset the deleveraging from EBITDA growth driven by its recently strong operational performance.
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"More companies are decreasing their cash flow from operations, which does not really lend itself to repurchases," said Abhra Banerji, director of quantitative research at Evercore ISI.
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And-- and since Wells repurchases their shares and we were right up against 10%-- fact, we-- we went over because they repurchased shares, not because we bought.
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AET's declined shareholders' equity reflected the payment of a $1 billion termination fee from its failed acquisition of HUM as well as the resumption of share repurchases.
|
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That fueled a dramatic increase in share repurchases — but very little additional investment on top of what the top 15 cash-hoarding companies had been spending already.
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Under former CEO Jeff Immelt, GE (GE) shelled out $24 billion on share repurchases in 2016 and 2017 at what turned out to be extremely high prices.
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Some critics say that top managers who preside over big stock repurchases are failing at one of their most basic tasks: allocating capital so their businesses grow.
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As for buybacks, Congress has been bristling at the record stock repurchases by corporate America, popular particularly in the post-financial crisis era of low interest rates.
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The company has committed to a capital deployment policy that will see the company issue incremental debt of $250 million each year to help fund share repurchases.
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The company said it has taken actions including deferring capital investments and pausing hiring and share repurchases to mitigate the financial impact of the MAX production change.
|
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Overseas costs also contributed to a rise in net debt to 182.1 million pounds from 143 million pounds last year, along with share repurchases and dividend distributions.
|
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The potential BBB'/'F2' post-transaction rating assumes Abbott will pursue a more conservative approach to capital deployment, with share repurchases, dividend increases and acquisitions remaining modest.
|
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Noting that corporate buyback announcements are up 46 percent versus last year, Goldman said that August is historically the most popular month for share repurchases, Cramer recounted.
|
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Share repurchases, a key driver for US bond issuance in recent years, are now down to about US$1.8bn daily on average, said stocks research firm TrimTabs.
|
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Berkshire Hathaway CEO Warren Buffett told CNBC that he, too, will consider share repurchases if the company can't find other ways to deploy its large cash pile.
|
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Meanwhile, according to Walmart's 28500-K, the company spent $6900 billion on share repurchases in 2628, up from $28503 billion in 22019 and $1 billion in 2015.
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Most recently, from 2007 through 2016, stock repurchases by 21625 companies on listed on the S&P 2900 totaled $220006 trillion, equal to 2202 percent of profits.
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Excluding noncash retirement plan settlement charges and net premiums and fees associated with debt repurchases, Macy's adjusted earnings for the second quarter were 48 cents per share.
|
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"On the positive front, the bank's mortgage portfolio review is complete with repurchases looking to come within guidelines," CIBC analyst Robert Sedran said in a research note.
|
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The London-based bank, which generates much of its profit in Asia, has announced $5.5 billion in share repurchases since last year as its prospects have improved.
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"Obviously, repurchases should be price-sensitive: Blindly buying an overpriced stock is value destructive, a fact lost on many promotional or ever-optimistic C.E.O.s," Mr. Buffett wrote.
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But in 1982 the Securities and Exchange Commission adopted a rule that gave the green light to most share repurchases, as long as they followed certain rules.
|
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The company also raised its earnings forecast for the year ending January 2018 to $7.15 per share from $7.13, citing anticipated share repurchases of $5 billion this year.
|
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That doesn't change the fact that J.P. Morgan is No. 8 among all companies in share repurchases over the past decade, with over $67 billion spent on buybacks.
|
|
Broadcom remains committed to growing its dividend, which could approach $2 billion for fiscal 2017, but will refrain from share repurchases until it achieves its 2x target leverage.
|
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Its stock has posted solid gains in recent years, but critics point to Apple's growing reliance on stock buybacks — announcing more than $100 billion in repurchases last year.
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Capital Allocation Strategy: Fitch expects Arrow to continue to invest internally on engineers and grow services but use excess cash flow to pursue acquisitions and for share repurchases.
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Kellogg said it intends to reduce its planned share repurchases in 2016 to $450 million-$550 million, from its forecast of $700 million-750 million, to save cash.
|
|
The black eye stock buybacks have received in the halls of Congress lately has not stopped companies from stepping up their announced share repurchases in the first quarter.
|
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The trillions spent on share repurchases since the current bull market began in March 2009 have helped keep a floor under Wall Street even when times got bad.
|
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The share sale is expected to result in a $650 million after-tax gain in 3Q17, which will be used for common share repurchases in a like amount.
|
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Companies reluctant to invest in their businesses have been funneling money into share repurchases and dividend payouts, he said, while private companies have been reluctant to go public.
|
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Without repurchases, which reduce the total number of shares outstanding, EPS growth would be far below the already-modest 4.4 percent median forecast for that group, KBW said.
|
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"Companies continued to spend more of their tax savings on these share repurchases as they boosted earnings through significantly reduced share counts," Silverblatt said in a press release.
|
|
During the third quarter, Costco sold some big-ticket items like diamond repurchases, one in the $400,000 range, and items like golf simulators that sold for $14,000 each.
|
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DaVita said it plans to focus on its kidney care business and use the proceeds of the sale for "significant stock repurchases" following the close of the transaction.
|
|
Companies announced $6.63 billion in share repurchases during the period, nearly doubling the previous record of $242.1 billion in the first quarter, according to market research firm TrimTabs.
|
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Even at companies that have made big repurchases of their shares in recent years, including Yahoo, General Electric, Home Depot and IBM, BlackRock has voted yes on pay.
|
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Excluding $1 billion in premiums paid and costs incurred as part of debt repurchases, the company earned $1.25 per share, compared with the analysts' average estimate of $40.2.
|
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The company said that it is facing uncertainty regarding the coronavirus' impact on its supply chain and consumer demand, and chose to suspend share repurchases in fiscal 216.
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The airline is deferring $500 million in capital expenditures, delaying $500 million in voluntary pension funding, suspending share repurchases and planning to hasten the retirement of older planes.
|
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Pfizer Inc dropped 4.4% after the drugmaker reported a lower-than-expected quarterly profit and said it would no longer rely on share repurchases to help drive growth.
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Pfizer Inc dropped 4.99% after the drugmaker reported a lower-than-expected quarterly profit and said it would no longer rely on share repurchases to help drive growth.
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Many analysts are not convinced that the rate of repurchases, which are still close to alltime highs, is a sign that the bull market is nearing a peak.
|
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Pfizer Inc dropped 7.43% after the drugmaker reported a lower-than-expected quarterly profit and said it would no longer rely on share repurchases to help drive growth.
|
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Modern IR, which provides data analytics to help companies manage their share buybacks, in recent days has seen many of its clients step up repurchases of their shares.
|
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But Lampert and Sears doubled down on share repurchases, buying an additional 22.9 million shares for $1.5 billion, over the next three years as the company's problems mounted.
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"Apple has all this cash, repurchases shares and the money goes out to new entrepreneurial firms that need equity capital to come up with the next great thing."
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The demand created by buybacks has outpaced demand from other sources, such as mutual funds, since 2011, giving repurchases increased importance to the U.S. markets, according to Goldman.
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The changes, along with a plan to slash its dividend and suspend stock repurchases, come as the company predicts major losses in the fourth quarter of the year.
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The retailer, which also reported a bigger loss for the third quarter, said it was canceling its dividend to retain free cash flow for debt reductions and share repurchases.
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Aetna also authorized up to an additional $4 billion in repurchases of its common stock, adding to the roughly $1.1 billion remaining under the company's existing share repurchase programs.
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Don't buy Apple's stock just because CEO Tim Cook is on TV — but expect better days ahead when you see more share repurchases, an analyst told CNBC on Wednesday.
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Apple currently has 5.26 million shares outstanding, compared to the 5.76 million shares outstanding they had in March 2015, according to Factset, as the company has approved share repurchases .
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During the March 5003 to March 2016 period, U.S. companies spent a record $589.4 billion in share repurchases, according to figures released Wednesday by S&P Dow Jones Indices.
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A negative rating action could occur if: --Consolidated leverage through, but not limited to, operational performance, acquisitions, or debt-funded stock repurchases, is expected to be 3.25x or higher.
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TRMK's stock price has risen considerably, and it has repurchased just $750 thousand worth of stock since the buyback program was authorized indicating management's cautious approach to share repurchases.
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Fitch believes Disney maintains an appropriate balance between returning capital to shareholders, in the form of dividends and share repurchases, and investing in the strategic needs of its business.
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They also must get their capital plans approved by the Federal Reserve through an annual stress test, meaning that banks cannot unilaterally decide to increase dividends or share repurchases.
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Fitch believes the company is committed to its 3.0x-3.25x leverage policy target, and Marriott demonstrated its willingness and ability to reign in share repurchases during the Great Recession.
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Marriott will need to execute on asset sales and pull back on share repurchases to return leverage to within its policy target range by the end of this year.
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Marriott could also face pressure from equity investors to sustain a higher level of share repurchases and delay de-leveraging during the year, depending on how its shares perform.
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Apple currently has 5.25 billion shares outstanding, compared with the 5.76 billion shares outstanding it had in March 2015, according to FactSet, as the company has approved share repurchases.
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Chief Financial Officer Jessica Uhl said in a call last week that Shell's priorities remain to reduce debt, pay dividends and turn off scrip before turning to share repurchases.
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Scout24's guidance for leverage of up to 3.5 times implies that it could spend an extra 150-180 million euros on share repurchases next year, company sources said.
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"HON has also commented that with a favorable change in the repatriation rules [it] would bring all options on the table from major M&A to large share repurchases."
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If repatriation becomes cost-effective companies will be able to bring the offshore cash back and use the funds for share repurchases, dividends, acquisitions and backstopping commercial paper programs.
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That includes a record $806 billion in repurchases last year, a figure that was boosted by the Tax Cuts and Jobs Act and has slipped a bit in 2019.
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One of the best arguments against stock repurchases is that they offer only a one-time gain while investing intelligently in a company's operations can generate years of returns.
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The result is an increase in return on equity and a company's ability to return more capital to shareholders in the form of dividends, share repurchases and debt reduction.
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PNC received no objection to its capital plan under CCAR, which included an 24947% increase in the common dividend to $0.55 a share, and $2 billion in share repurchases.
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In first quarter, the company outpaced analyst expectations on the bottom line, helped by a lower tax rate and share repurchases, but revenue was weak and fell below expectations.
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According to one study cited, as much as 91 cents on the dollar went to share repurchases, even though that, along with compensation increases, was expressly prohibited by Congress.
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Fitch expects that leverage should remain relatively stable with some modest improvement, assuming continued EBITDA growth, partially offset by continued capital planning including share repurchases, which Fitch considers discretionary.
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For now the main financial strategy Alphabet has disclosed is ramping up share repurchases, which boosts earnings per share by using available cash to reduce the number of shares.
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Fifth Third will increase its quarterly stock dividend to 14 cents a share in the fourth quarter and will make share repurchases of up to $660 million, the bank said.
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Fields, who earned $22.1 million in 2016 and had a 28-year-career at Ford, also faced a clamor for share repurchases at the company's annual meeting earlier this month.
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So on Wednesday, it injected cash into money markets through 14-day reverse repurchases agreements for the first time in six months to show its concern about the rising leverage.
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With a strong balance sheet, Merck has plenty of room for maneuver when it comes to capital allocation, leading some analysts to speculate it might also step up share repurchases.
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U.S. companies are on pace to break another record for share repurchases in 2019, using a combination of cash and debt to push the total to close to $1 trillion.
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Additionally, Fitch incorporates the expectation that CBS will continue to dedicate free cash flow towards share repurchases, but will do so prudently and within the parameters of Fitch's leverage threshold.
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Fitch expects the effect of share repurchases to largely offset the effect of any dividend increases on overall dividend spending, which will further support increased FCF over the intermediate term.
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The bank, which reported a 15.4 percent rise in second-quarter profit, said it would suspend $950 million worth of share repurchases and issue fresh equity to finance the deal.
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While the company's share repurchases have declined in recent years as NAVI's student loan portfolio continues to run off, it still represents a meaningful use of the company's excess liquidity.
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For instance, at banks like J.P. Morgan Chase, about 63 percent of the median expected earnings per share growth in 2019 is tied to share repurchases, according to the note.
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The share repurchases will be handled by the brokerages of BTG Pactual CTVM and Santander Corretora de Câmbio e Valores Mobiliários SA. Reporting by Stephen Eisenhammer; Editing by Lisa Shumaker
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The strong current pace of corporate debt issuance could provide new fuel for ramping up stock repurchases, said Brian Reynolds, chief market strategist at New Albion Partners in New York.
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Corporations cut repurchases by 11 percent in 2016 and have slashed them 20 percent so far in 2017 compared with the same period a year ago, according to Goldman Sachs.
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"Biogen's management appears mostly inclined to deploy these savings and the rest of their excess capital for share repurchases rather than for transformative acquisitions," SVB Leerink analyst Geoffrey Porges said.
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Chris Van Hollen of Maryland pointed to evidence from a Securities and Exchange Commission study indicating that share repurchases are benefiting corporate insiders at the expense of long-term investors.
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Shareholders' equity of $4.7 billion at June 30, 2016 is flat from year-end 2015, as net income was offset by share repurchases and dividends on common and preference shares.
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In the latest quarter, the company outpaced analysts expectations on the bottom line, helped by a lower tax rate and share repurchases, but revenue was weak and fell below expectations.
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"While we believe restrictions on share repurchases are unlikely to be enacted in the near term, the escalation in political rhetoric represents a clear risk to our forecast," Hunter said.
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In our view Disney maintains an appropriate balance between returning capital to shareholders, in the form of dividends and share repurchases, and investing in the strategic needs of its business.
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Fitch expects Citrix will use net proceeds from the issuance for share repurchases, given the vast majority of Citrix's cash is generated outside the U.S. and held by foreign subsidiaries.
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LPL declined to answer my questions about the buyback, including those about how its board had determined that buying back TPG's shares was the best way to execute the repurchases.
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Dollarama also said it would pause share repurchases to maintain its leverage ratio, a move BMO Capital Markets called "uncharacteristic" as the company has a history of consistent share buybacks.
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In conjunction with the deal, Avaya said its board authorized $500 million in share repurchases and that it will pay down $250 million of its nearly $3.2 billion debt pile.
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The shrinking of the U.S. equity supply, including buyouts to private equity firms, acquisitions, and share repurchases, is acknowledged as a significant factor contributing to the rise in equity prices.
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It found 61 companies have spent $88.6 billion in share repurchases so far this year, more than double the amount announced by 58 companies during the same period last year.
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Berskhire Hathaway Chairman Warren Buffett said the company has bought back some of its shares as it changes the metric it uses to decide when repurchases are a good move.
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The company's net cash outlays for acquisitions and share repurchases were roughly $30.5 billion during the period (excluding the subsequent $14 billion acquisition of Medivation), while FCF was $7 billion.
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But when share repurchases replace a company's research-and-development spending, that indicates its management is unable or unwilling to spend on innovation that could generate future earnings to shareholders.
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The approximate 2582 bps improvement from last quarter was due primarily to retained earnings, lower risk-weighted assets, offset by share repurchases, a slight build in the DTA, and unrealized losses.
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So I'm just looking at large entities that generate a lot of cash that are reducing their debt and also are returning capital to shareholders through either dividends or stock repurchases.
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Whether corporations use the windfall to fund dividends or share repurchases as opposed to reinvesting in the broader economy has been a sticking point for those who oppose the tax law.
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A few companies like Microsoft are continuing to buy back billions in their own stock, but last quarter saw a significant decline in the number of companies making such large repurchases.
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Favorably, restructuring expenses have recently been immaterial, and share repurchases are considered to be discretionary in order to preserve liquidity ($800 million repurchased in 2016 compared to $1.4 billion in 2015).
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According to one study cited, as much as 91 cents on the dollar went to share repurchases, even though that, along with compensation increases, was an expressly prohibited use by Congress.
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However, JPM received a non-objection from the Federal Reserve regarding incremental share repurchases of $1.88 billion through the end of 2Q16, giving them aggregate remaining authority of about $2.9 billion.
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Announces authorization of up to $4.2 billion in share repurchases and declares quarterly dividend of $0.46 per share Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +1-646-646-8780)
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ICE also said it sold its 12 percent stake in Brazil's Cetip clearinghouse and that it would use the $438 million in net proceeds to pay down debt and share repurchases.
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Share repurchases in Japan have surpassed a record 6.5 trillion yen ($58.7 billion) since April 1, and Goldman Sachs forecasts the figure will grow another 20 percent this coming fiscal year.
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Repurchases are up 2171.3 percent year to date, far ahead of the 9 percent gain in dividends, while M&A activity involving U.S. companies has surged 130 percent, according to UBS.
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Moreover, Fitch needs to see progress related to refranchising and evidence that Coca-Cola will adhere to a more balanced capital allocation stragegy related to share repurchases, dividends and debt reduction.
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" Meanwhile, with the intent on maintaining its "leverage profile," IBM will pause its share repurchases in 2020 and 2021, a move that Rometty describes as "being prudent about our debt level.
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That would leave Berkshire valued at about 2238 times book value, which Gelb called "attractive," though it would remain above the 2215 ratio that could prompt Buffett to authorize share repurchases.
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The company raised its fiscal 219 earnings outlook to a range of $22017 and $250 per share, excluding the impact of various store closings and other costs associated with debt repurchases.
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Executives on Friday said the company plans to continue to prioritize spending on new projects and shareholder dividends over stock repurchases, something that investors have been calling for it to restart.
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The bank also said it will increase share repurchases from $3.5 billion to up to $5 billion of outstanding common stock for the four quarters, also beginning in the third quarter.
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"The stable outlook also reflects that Boeing's historically aggressive financial policy will remain tempered, with no share repurchases until after a sustained recovery following the ungrounding of the Max," Moody's said.
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But the tides are starting to turn as Disney is poised to benefit from its acquisition of Fox, which Morgan Stanley predicts will lead to share repurchases of $5 billion in 2020.
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Results for the latest quarter "benefited from a lower effective tax rate and a significantly lower number of shares outstanding due to share repurchases made throughout 2016," Sotheby's said in a release.
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Comparable sales; and repurchases $23 million of common stock year-to-date * Q2 earnings per share $0.35 * Q2 earnings per share view $0.28 — Thomson Reuters I/B/E/S * Qtrly combined u.s.
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Going forward, Fitch believes leverage will range between 1x and 1.4x during the ratings horizon after consideration for a modest increase in debt levels related to the higher level of share repurchases.
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Lenders including J.P. Morgan Chase and Bank of America are widely expected to increase dividends and share repurchases after the Federal Reserve discloses the results of the industry's stress tests on Thursday.
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Following the acquisition of AdvancePierre, Tyson expects to pull back on share repurchases and use FCF and divestiture proceeds to return leverage back to its targeted 1.5x-2.0x as quickly as possible.
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"This would imply Apple repurchases $2003bn in shares and pays $52bn in dividends over the next three years," Morgan Stanley equity analyst Katy Huberty wrote in a note to clients in April.
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The company said on Monday that after completing the European sale, it would have $2 billion to accelerate share repurchases, and capital spending would be reduced by about $1 billion a year.
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During the bank's investor call after the earnings release, Chief Financial Officer Martin Chavez told investors something they may not have liked: Goldman will not make share repurchases in the second quarter.
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After several years of "lower-quality" earnings driven largely by cost-cutting and share repurchases, stronger organic growth — the best since the last financial crisis — demonstrates that U.S. companies truly are growing.
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Cash Deployment: Fitch expects Liberty's FCF to be dedicated to share repurchases and debt reduction, and QVC to manage to its stated 2.5x leverage target within 18 months, primarily though EBITDA growth.
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Fitch expects FOX will curtail share repurchases and use its FCF generation and cash balances to return leverage to within the company's leverage target of 2.5x-3.0x within 103 months of closing.
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Going forward, Fitch believes leverage will range between 1x and 1.3x during the ratings horizon after consideration for a modest increase in debt levels related to the higher level of share repurchases.
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Management also noted that due to capital reaching targeted levels, stock repurchases could increase in future years, though this remains subject to the Federal Reserve approving of the company's annual capital plan.
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He also defended past spending by the company, saying that most of the profits in recent years went into new aircraft and employees, not to share repurchases or dividends that benefit shareholders.
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Suncor Energy Inc on Monday cut its 2020 production outlook and suspended share repurchases for the year following the decline in crude oil prices and the economic impact of the coronavirus outbreak.
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Short of a Congressional ban on buybacks, as Ms. Baldwin proposes, the S.E.C. should immediately rescind Rule 10b-18, and confront the reality of stock market manipulation that open market repurchases entail.
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Technology companies in particular have taken a huge share — about 40 percent — of the repurchases, important as some of the sector's biggest names like Facebook and Netflix have undergone substantial pullbacks recently.
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The company plans to offer $7 billion in share repurchases and dividends to shareholders by the end of fiscal 2019 HPE issued strong earnings guidance for the upcoming quarter and fiscal 2018.
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"I am delighted with the increased commitment to share repurchases," said Thomas Russo, a partner at Gardner, Russo & Gardner, which invests 231.5% of the $43 billion of assets it oversees in Berkshire.
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Companies in January announced just $27 billion of repurchases, the slowest opener since 2013 and coming off a 2019 that saw a 30% drop-off from the previous year, according to AllianceBernstein.
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The share repurchases have helped keep the market afloat, as investors have pulled $23.5 billion out of funds that focus on U.S. stocks this year, according to Bank of America Merrill Lynch.
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Cisco said this month that in response to the tax package, it would bring back to the United States $19806 billion of overseas cash, using $25 billion to finance additional share repurchases.
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In his 2011 letter to Berkshire's shareholders explaining why he began buying IBM, Buffett said the stock would deliver benefits in the form of billions of dollars in dividends and repurchases over time.
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Fitch expects the company to face pressure to increase its dividend in line with other S&P 500 index constituents and sees potential for it to ramp up share repurchases in the future.
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Since the end of 2012, the world's biggest airplane producer has pumped back nearly $40 billion to its investors through dividend and share repurchases while still investing substantially in products, services and people.
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We believe focused business portfolios can allow companies to create value for shareholders by more effectively allocating capital towards opportunities with higher growth and returns or towards share repurchases, dividends and debt reduction.
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The total value of share repurchases by companies surged to a record $806.4 billion in 2018, up 55 percent from a year earlier, according to new data from S&P Dow Jones Indices.
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This growth is due to continued net income and an increase in unrealized gains on debt securities, partially offset by share repurchases and a slight decrease in unrealized investment gains on equity securities.
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In response to a question from the audience, Rosengren said he would advocate forcing banks to shut down dividend payments and share repurchases if another downturn threatened the health of the banking system.
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On Thursday, Dunkin' also reported first-quarter earnings that outpaced analysts' expectations on the bottom line, helped by a lower tax rate and share repurchases, but revenue was weak and fell below expectations.
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Stock repurchases alone are not an indicator of how the new tax law is performing, as companies regularly buy back stock throughout the year, dating back long before the enactment of H.R. 1.
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Discretionary management moves that cause leverage to rise above 2.5x, such as another material acquisition or stock repurchases, could lead to a negative action in the absence of a strong commitment to delever.
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The bank also said it will increase share repurchases from $3.5 billion to up to $5 billion of outstanding common stock for the four quarters beginning the third calendar quarter of this year.
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Jesse Fried and Charles Wang argued earlier this year that the real amount of buybacks is overstated by politicians who focus on gross share repurchases that are partially offset by new share issuances.
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Such deals would be a higher priority than the stock buybacks: Nestlé said the bulk of its share repurchases would take place in 2019 and 2020 to let the company make takeovers first.
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"While there is a plausible argument supporting greater share repurchases - return of excess cash in the absence of viable alternative investments - firms have historically exhibited poor timing," UBS said in a recent note.
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Both the Class A and B shares are trading near 170 percent of book currently, so shares would have to fall quite a bit before a fresh round of repurchases would be initiated.
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Thomson Reuters will fund the share repurchases from the roughly $17 billion sale of its financial and risk business to private equity funds managed by Blackstone, a deal that was announced in January.
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"This represents less than 20% of Walmart's tax savings which we expect will be invested in merchandise price reductions, employee training, omnichannel and other technology investments as well as share repurchases, " Dreher said.
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CLAYTON, N.C. (Reuters) - Caterpillar Inc on Thursday provided investors with details on its push to grow its services business while also laying out dividend increases and more consistent share repurchases in the coming years.
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With share repurchases among companies near highs, with the group having broken its record-making buyback streak in the first quarter of 2019, global stock markets are now officially shrinking, according to Citi Research.
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When it reported fiscal first-quarter earnings earlier this year, Foot Locker lowered its profit outlook for the year to high-single digit growth from double-digit growth, citing plans for lower share repurchases.
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In another sign of confidence, the company spent $6 billion on share repurchases in the quarter, keeping it on track to deliver a promised $22 billion through buybacks and dividends from 2015 through 2017.
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CURRENT FINANCIAL POLICY REDUCES FINANCIAL FLEXIBILITY Management intends to return 85% of pre-dividend FCF (up from historical levels of around 40%) to shareholders over the next three years through dividends and share repurchases.
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The company has taken multiple actions, including deferring capital investments and pausing hiring and share repurchases, to control its costs in the face of a possibility of a further rate cut by the planemaker.
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Over the past 10 years, tech giant Apple has been the biggest buyback champion, splurging a whopping $239 billion on share repurchases, followed by Exxon Mobil and Microsoft, according to data from Birinyi Associates.
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With the Rockwell deal falling through, Emerson said it plans to speed up the rate of share repurchases over the next month and buy back up to $1 billion over the next 12 months.
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Leaders of the Business Roundtable and the Council of Institutional Investors on Monday pushed back against proposals to put restrictions on stock buybacks, as lawmakers have taken aim at share repurchases in recent weeks.
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When the company posts its results on Tuesday, investors and analysts will be looking out for Omnicom's forecast for the second quarter and the full year, as well as details on possible share repurchases.
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A group of Senate Democrats is pushing the Securities and Exchange Commission (SEC) to review its rules about stock buybacks, following an increase in share repurchases after the passage of the Republicans' tax law.
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Here's how the share buybacks broke down by month: October: 14.2 million November: 19.4 million December: 14 million Source: company filing October and December saw slightly smaller repurchases than November, but not by much.
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And while it spent billions repurchasing its shares in recent years, the company stopped those share repurchases last April to conserve cash after the 737 Max was grounded and deliveries of the plane stopped.
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After buying back more than $1 trillion of their own stock last year, public companies are slowing their share repurchases in 2019, and that will add to troubles for the market and the economy.
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Apple's cash flow statements show it has spent nearly $211 billion on stock repurchases over the past five years, which works out at 2315 percent of its cash flow from operations for the period.
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The bank, which is based in London but generates much of its profit in Asia, has announced $5.5 billion in share repurchases since the second half of last year as its prospects have improved.
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The safe harbor protects companies from facing any liability for share repurchases even though they don't have to disclose exactly when they repurchase their stock, and they only have to report on their plans.
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The airlines-to-financial services conglomerate said in a statement it had repurchased the bonds due to the "impact of recent market fluctuations" on prices but did not provide further details about the repurchases.
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Over the last 13 months Citi returned $12.2 billion of capital to shareholders via a mix of dividends and share repurchases, which equates to a payout ratio over the last 12 months of approximately 79%.
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That can come in the form of stock repurchases and dividends, which offers investors an opportunity to capture some of the value of an increasing stock price while they watch it continue its march forward.
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The German automaker has hired 22009 people to handle the buybacks and will have a dedicated person in each dealership to oversee the repurchases that could begin next month if the judge approves the settlement.
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DuPont said it was aiming to buy back $2 billion of shares in 2016, and would make the repurchases after shareholders vote on the deal, expected to be held after completion of the SEC review.
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Executives said the company, which will see its effective tax rate drop due to the new U.S. tax law, is putting business investments before large share repurchases, comments that also contributed to Tuesday's share declines.
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However, Fitch generally expects BWA's relatively strong operating cash flow will provide it with sufficient flexibility to fund capital spending, dividends, share repurchases and smaller acquisitions without the need for significant incremental long-term borrowing.
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"The earnings our investees retain are often used for repurchases of their own stock — a move that increases Berkshire's share of future earnings without requiring us to lay out a dime," he wrote this year.
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To stabilize the Outlook, Fitch would need to see progress related to refranchising and evidence that Coca-Cola will adhere to a more balanced capital allocation strategy related to share repurchases, dividends and debt reduction.
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Discretionary management moves that cause core telecom leverage to rise above 2.5x, such as another material acquisition or stock repurchases, could lead to a negative action in the absence of a strong commitment to deleveraging.
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In January, PNC announced a $300 million increase to its planned share repurchases, to be completed by June 30, 2017, which is in addition to the $2 billion requested as part of last year's CCAR.
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Activist campaigns against FIs remain constrained by regulatory limitations on capital extraction, which run counter to one of activists' primary modes of increasing investment value, returning capital to shareholders via share repurchases or dividend increases.
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Expect Stable Leverage: Fitch forecasts that HCA will produce cash flow from operations (CFO) of about $5 billion in 2017, and will prioritize use of cash for organic investment in the business and share repurchases.
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Wells Fargo led bank stocks higher Friday as most of the biggest U.S. lenders announced plans to boost stock repurchases and quarterly dividends by billions of dollars after passing the Federal Reserve's annual stress test.
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In the annual ritual, banks must show that they can survive an economic downturn with enough capital to keep lending, while taking into account the capital leaving in the form of dividends and share repurchases.
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To stabilize the Outlook, Fitch would need to see a public commitment that Coca-Cola will adhere to a more balanced capital allocation strategy including a reduction in share repurchases resulting in gross debt reduction.
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Chemed Corp: * CHEMED CORPORATION'S BOARD OF DIRECTORS AUTHORIZES AN ADDITIONAL $250 MILLION FOR STOCK REPURCHASE * CHEMED CORP - REPURCHASES WILL BE FUNDED THROUGH CASH FROM OPERATIONS, REVOLVING CREDIT FACILITY Source text for Eikon: Further company coverage:
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"It will likely result in increased dividends and share repurchases, and that makes valuations more reasonable and should prolong the rally," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.
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Mature industries — where double-digit annual profit growth is a reach in the best of times — are especially vulnerable to activist investors' demands for board seats, bigger stock repurchases and other short-term financial rewards.
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Instead of focusing the repatriation tax policy on activities that are not permitted, such as dividends, stock repurchases and executive compensation, the next administration and Congress should focus on creating tax-free activities for companies.
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The big-box retailer said Tuesday it plans to spend up to $25.4 million on store remodels and supply chain upgrades, along with about $230 million this fiscal year on share repurchases and debt reduction.
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Fitch does not expect any material change to existing financial policies (outside of the suspension of dividends and share repurchases) and expects credit protection measures to remain solid for the rating through the intermediate term.
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A good chunk of that money has been returned to shareholders this year, with S&P 500 companies on track to execute more than $1 trillion in share repurchases by the end of the year.
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IHS Markit's offering underscores Fitch's stated expectation at the time of its affirmation that the company will likely continue to operate with reduced headroom due to higher share repurchases, expected acquisitions and associated future debt issuance.
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"The debt agency AKK will want to see how it goes in the next weeks, and if they change financing policy, more FX bond repurchases is one of the options," one Budapest-based bond trader said.
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BEIJING (Reuters) - China further deregulated its capital markets on Thursday, saying it would ease foreign institutions' access by combining two inbound investment schemes, while broadening their investment scope to include derivatives, bond repurchases and private funds.
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High Medium-Term Leverage Fitch expects that Mondelez will likely operate with gross leverage (total debt-to-EBITDA) of around 3.4x to 3.5x through 2016 as it executes share repurchases, and incurs peak cash restructuring charges.
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At the high end of next year's spending, the company would have "$1.5 billion to $2.5 billion for share repurchases, ahead of our expectations of $1.2 billion," Credit Suisse analysts said in a note on Wednesday.
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Wall Street pros like her are moving more money to equities, companies are starting to pull back on share repurchases as stocks get more expensive, and investors are demanding more from companies when they report earnings.
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If FOX completes the Sky acquisition, Fitch expects FOX will use its FCF generation and cash balances to further invest in its core businesses and growth initiatives while curtailing share repurchases until leverage is below 3x.
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Fitch expects that Disney will manage the level of share repurchase activity in a manner consistent with its current ratings and acknowledges that the company's share repurchases and M&A activity will likely exceed FCF generation.
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"We assume that 60% of the cash held overseas is repatriated, half of which is allocated to share repurchases, and the rest is divided equally for debt buybacks and capital expenditure," AXA wrote in the report.
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ZURICH, March 10 (Reuters) - Novartis AG plans to buy back up to 10% of its stock over the next three years with an eye to cancel the shares it repurchases, the Swiss drugmaker said on Tuesday.
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The company, which said in a statement that it would reduce debt partly by selling some non-core assets, has also proposed a $2 billion share buy-back programme in 2018-2020 through open market repurchases.
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The Comprehensive Capital Analysis and Review (CCAR) is of critical importance to large banks because the Fed must approve their capital plans each year before they can proceed with dividend payments, stock repurchases, or planned acquisitions.
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"I think it is more likely that you will see incremental cash return to shareholders in the form of higher dividend and/or incremental share repurchases," Bernstein analyst Toni Sacconaghi said on CNBC's "Power Lunch" Wednesday.
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A good chunk of that repatriated money went to share repurchases — for the top 15 cash holders, some $55 billion was used on buybacks, more than double the $23 billion in the fourth quarter of 2017.
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Wall Street already had been expecting a potentially history-making year for repurchases, but Goldman anticipates that the corporate appetite will be even stronger than anticipated particularly with August being the biggest month traditionally for buybacks.
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Cowen predicted Nike could return $24 billion to shareholders over the next five years through share repurchases and dividends, given its strong free cash flow of $4.5 billion annually from the fiscal year of 2019 to 2023.
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"CSCO's strong balance sheet and cash flow continues to enable it to fund growth and enhance shareholder returns through ongoing dividend increases and share repurchases" points out five-star Tigress Financial analyst Ivan Feinseth (Track Record & Ratings).
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BECKY QUICK: We're going to talk a little bit more about share repurchases, not just with Apple, but more broadly, because it is a question that came up pretty frequently this weekend at the Annual Meeting, too.
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Rating concerns include typical integration risks associated with the merger, restructuring costs to realign the combined company, a rapidly evolving automotive battery market served by JCI's Power Solutions, and future cash deployment for acquisitions and share repurchases.
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The news and information provider and parent of Reuters News reported earnings excluding special items of 27 cents per share, compared with 28.5 cents per share a year ago, helped by lower interest expenses and stock repurchases.
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Positive rating actions could result from: --Management's commitment to maintain total leverage at 2x or below, implying organically funded serial acquisitions within the context of curtailing share repurchases; --Expectations for more than $1 billion of annual FCF.
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KEY ASSUMPTIONS Fitch's key assumptions within the rating case for Moody's include: --Low- to mid-single-digit revenue growth; --Stable EBITDA margins; --Base case assumes that shareholder returns continue in the form of share repurchases and dividends.
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Negative Rating Action: A negative rating action could be prompted by sustained gross leverage of 2.5x or higher due to a combination of acquisitions, spectrum purchases and stock repurchases in the absence of a credible deleveraging plan.
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S. operations (21000% of its revenue in 212000 was generated outside the U.S.), leverage could rise if the company chooses to fund dividends, share repurchases or any U.S. acquisitions with long-term debt instead of repatriated cash.
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Share repurchases decreased 3.4 percent in the fourth quarter from the previous three-month period and are tracking at a 21-month low in March, according to respective data from S&P Dow Jones Indices and TrimTabs.
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Instead, the most repeated criticism is aimed at share repurchases, or stock buybacks, in the aftermath of the Tax Cuts and Jobs Act that supposedly evince self-enrichment by CEOs and a failure to generate business investment.
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Should traffic trends weaken or debt increases materially to fund investments and share repurchases under the company's $2212 billion share program expected to be completed by the end of fiscal 2908, a negative rating action could occur.
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Wall Street analysts expect full-year buybacks to total as much as $800 billion, part of what UBS recently forecast to be a $2.5 trillion tsunami of cash pumped into repurchases, dividends, and mergers and acquisitions activity.
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The reset in commodity prices has forced companies to find ways to live within their cash flow, and ExxonMobil reached free cash flow neutrality (cash from operations covers capital expenditures, dividends, and any share repurchases) in 2017.
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Expect Stable Leverage: Fitch forecasts that HCA will produce cash flow from operations (CFO) of about $4.8 billion in 2017, and will prioritize use of cash for M&A, organic investment in the business, and share repurchases.
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Shares of Exxon fell 2.2 percent to $74.59 after the oil major reported its smallest quarterly profit in more than a decade, forecast a 153-percent drop in capital spending from 2015 levels and suspended share repurchases.
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The deal, announced Monday, has Twitter buy back $2 billion in shares and appoint two new board members, one from Elliot and one from equity firm Silver Lake, which is putting up $1 billion for the repurchases.
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The deal, announced Monday, has Twitter buying back $6900 billion in shares and appointing two new board members, one from Elliot and one from equity firm Silver Lake, which is putting up $2628 billion for the repurchases.
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"We see the combination of continued stable fundamental performance, a lower tax rate and an increasing volume of share repurchases pushing to total return for ORCL into the low-teens over the next two years," Weiss wrote.
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Rosneft said in a statement on Tuesday that it would reduce debt partly by selling non-core assets, adding that the proposed share buyback programme would be carried out between 2018 and 2020 through open market repurchases.
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So focused on shareholder value, companies, rather than investing in ways to make their businesses more resilient or their workers more productive, have been dedicating ever larger shares of their profits to dividends and corporate share repurchases.
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Details: The investment bank's data also shows S&P 500 companies, especially in tech, have slowed the pace of stock buybacks this year, with share repurchases in the third quarter down 12% year over year so far.
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"We have some causal evidence that because of short-termism companies are doing some stock repurchases that maybe they shouldn't do," said Heitor Almeida, a professor of corporate finance at the University of Illinois at Urbana-Champaign.
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KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: --Organic revenue growth in the low single-digits over the intermediate term supported by components and software but partially offset by negative growth in legacy hardware products; --Expectation for mid-cycle operating EBITDA margins to remain stable in the mid-4% area; --Mid-cycle FCF of $0003 million to $500 million annually through the rating cycle; --FCF is used principally for share repurchases and bolt-on acquisitions; --Arrow would moderate share repurchases in the face of pressured FCF.
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The news and information provider and parent of Reuters News reported earnings excluding special items of 36 cents per share, compared with 28 cents per share a year ago, helped by lower interest expenses and by stock repurchases.
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So what you would expect to see if you think the repurchases are a good thing because they reshuffle capital to the people who need it the most is a big surge in capital spending by independent businesses.
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Even if a panic ensues, and pensions have to pull money out of the market, and companies stop their share repurchases, Buffett suggests retail investors should take a page out of his 2008-09 playbook, and be buying.
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The news and information provider and parent of Reuters News reported earnings excluding special items of 2155 cents per share, compared with 20183 cents per share a year ago, partly due to lower interest expenses and stock repurchases.
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However, Fitch believes future acquisitions will be targeted toward adjacent industrial markets, of which the pending 'New' Baker Hughes partnership is an example, and that GE will be disciplined in its cash deployment for acquisitions or share repurchases.
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"This will likely mean lower than previously anticipated dividend growth and no share repurchases for the foreseeable future," Aiken wrote in a client note, while adding that the action would not affect Barclays' long-term outlook for BMO.
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While investors have taken about $232 billion out of mutual and exchange-traded equity funds over the past three years, companies have pumped in $1.8 trillion through repurchases, according to Nick Colas, co-founder of Data Trek Research.
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The company also issued $350 million of 5% senior unsecured guaranteed notes, the proceeds of which were used to fund $300 million of share repurchases and to repay $50 million of outstanding amounts on the revolving credit facility.
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Fitch-defined FCF is expected to be sufficient to fund some level of share repurchases going forward and is projected to grow from $173 billion in FY2016 to $1.4 billion in FY2019 due primarily to digital revenue growth.
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Companies thus far seem to have taken much of the windfall and pushed it to stock repurchases and dividends, with the evidence so far unclear as to whether there will be an accompanying investment boom and wage increase.
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The Roosevelt Institute and NELP also closely examined the share repurchases of companies in the restaurant, retail and food manufacturing industries — three industries that employ many low-wage workers, many of whom are women and people of color.
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Starbucks raised its targeted dividend pay out to earnings to 40% to 50% in 2016 from 35% to 45% previously, and net share repurchases have increased to $1.8 billion in 2016 from less than $500 million in 0003.
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Viacom's historically aggressive capital allocation posture, which has long favored share repurchases in excess of free cash flow (FCF) generation, along with the weak operating results have combined to reduce Viacom's financial flexibility and weaken its credit profile.
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Only to stay under 10%, which was something that the Fed requires, and since Wells repurchases their shares and we were right up against 10 %, that way we went over because they repurchased shares not because they bought.
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Amid a record amount of company share repurchases since the 2017 tax-cut law executives have been cashing out their stock and benefiting from the short-term jump in price that typically follows news of a repurchase plan.
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"If they had put $6 billion into upgrading stores and website development, they could be in a very different position right now," said William Lazonick, a retired University of Massachusetts economics professor and an expert in share repurchases.
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KEY RATING DRIVERS Little Leverage Flexibility: Despite Fitch's expectation that Pfizer will continue to generate stable operating performance and significant free cash flow (FCF), leverage remains strained, stemming from acquisitions and share repurchases during the past two years.
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Fitch's concerns include: --Consistent, material increases in cash dividends long-term, which, in the absence of commensurate growth in profitability, could pressure FCF and financial flexibility, necessitating further increases in core debt to fund acquisitions or share repurchases.
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The company said while its board is still evaluating the best way to spend the proceeds, it may use the money to pay down debt, fund share repurchases and/or reinvest in core businesses including video games and collectibles.
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The Board continues to evaluate the optimal use of these proceeds, which could include reducing the company's outstanding debt, funding share repurchases, reinvesting in core video game and collectibles businesses to drive growth, or a combination of these options.
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Finally, there's Citigroup, which announced a buyback of more than $15 billion about a year and a half ago and is No. 20 among all companies buying back debt over the past decade, at $45 billion in share repurchases.
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The bank has also authorized near $30 billion of stock buybacks Goldman Sachs may spend up to $7 billion on stock repurchases and will raise its dividend payout from $0.85 to $1.25 in the third quarter of the year.
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Fitch anticipates TI would curtail share repurchases should the company face meaningful near-term headwinds, although FCF (Fitch defined as after dividends) and, therefore, stock buybacks should be structurally lower as the company approaches its target dividend pay-out.
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Fitch expects more normalized shareholder returns over the intermediate term, after several years of meaningfully elevated share repurchases as the company completed its transformation into a focused public safety solutions provider and return of deemed excess cash to shareholders.
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NEW YORK (Reuters) - The escalating trade war between the United States and China may prompt U.S. companies to shift money they had earmarked for capital expenditures into stock buybacks instead, pushing record levels of corporate share repurchases even higher.
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This assumes we see a path for Host's leverage to return to its 2.5x-3.0x policy range within approximately one year (strategic acquisition) to six months (share repurchases) and that Fitch has a stable or positive lodging industry outlook.
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S&P, which maintained a stable outlook on the rating, said the company's debt level had more than doubled in recent years, reflecting high capital spending and dividends as well as share repurchases that substantially exceeded internal cash flow.
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Its stated model is to generate 20 percent to 30 percent of top-line revenues in free cash flow, and payout 100 percent of free cash flow to shareholders through its increasing dividend, share repurchases and targeted debt reduction.
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But what Trump's critics aren't saying is that the pick-up in share buybacks actually follows a marked downturn in such activity last year, which through the first three quarters saw the lowest level of repurchases in five years.
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The company is investing in its business with capex averaging roughly 7% of sales annually since 7503 and returning an increasing amount of cash to shareholders via dividends and share repurchases while maintaining total adjusted debt/EBITDAR near 2.0x.
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Brinker announced that it plans to increase leverage in the range of $250 to $300 million in the near term subject to market conditions and use the proceeds to return capital to shareholders in the form of share repurchases.
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Fitch expects FCF to be between $200 million-$300 million annually and that most of it will be directed toward share repurchases, which are expected to remain in the $300 million-$350 million range over the next few years.
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JPMorgan's decision follows pressure from U.S. lawmakers - who urged big banks last week to stop using funds for stock repurchases and instead help the economy - and as its home city, New York, took further steps to contain the virus.
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DUBLIN (Reuters) - Ryanair amended the terms of a 700 million euro ($795 million) share buyback on Wednesday to allow block repurchases it said could limit the holdings of British shareholders and ensure it remains majority EU-owned after Brexit.
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Share Repurchase and Dividends Growing: Management expects to complete approximately $103 million in share repurchases in 2017, revised down from previous years in order to accommodate for the payment of the settlement charge taken in the fourth quarter of 2016.
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GM also said it plans to repurchase a total of $16 billion in shares by the end of 2017, extending and increasing the earlier plan to return about $10 billion in share repurchases and increased dividends in 2015 and 2016.
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The company also cut the upper range of its annual adjusted profit forecast and now expects to earn between $3.25 per share to $3.50 per share from a range of $3.25 per share to $3.65 per share, excluding any share repurchases.
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Despite $5 billion in stock repurchases during the past year, the company's stock has fallen 3 percent for the year so far, and has languished below the $33 a share at which it debuted after the automaker's 2009 bankruptcy filing.
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"Our financial health has improved enough to conduct the repurchases," a Sony spokesman said, as the company reinvented itself as an entertainment company with stable revenue from music content and gaming, after battling years of losses with price-competitive consumer electronics.
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The company may also use some of its excess balance sheet cash for share repurchases, but is nonetheless expected to retain sufficient cash to handle its seasonal working capital needs without having to tap its $500 million revolver maturing May 2908.
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LONDON, May 23 (Reuters) - Sovereign wealth funds invested more equity in unlisted technology companies in 2018 than in any year since 2015, new research showed on Thursday, as public markets shrank due to fewer initial public offerings and large share repurchases.
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The reset in commodity prices has forced companies to find ways to live within their cash flow, and ExxonMobil appears well on its way to achieving free cash flow neutrality (cash from operations covers capital expenditures, dividends, and any share repurchases). ).
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Proceeds from the offering are expected to be used for general corporate purposes, including the payments of amounts due on EA's existing convertible notes and share repurchases, including the new $500 million share repurchase program announced concurrently with this offering.
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Brands Inc says planned separation of its china business is on track to be completed by end of 2016 * "additional repurchases part of co's commitment to returning $6.2 billion of capital to shareholders prior to planned separation of china unit" * yum!
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Charles Schumer, a New York Democrat, and Bernie Sanders, a Vermont independent who is running for president on the Democratic ticket, unveiled a plan that would force companies engaging in repurchases to pay a living wage and provide health-care benefits.
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The bank also said that the Canada Mortgage and Housing Corporation (CMHC), Canada's federal housing agency, had agreed the bank did not need to perform a full review of mortgages sold to CMHC's securitization programs or make further large-scale repurchases.
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While hiring is a major piece of the GOP argument for the tax cuts, some company executives have already signaled businesses are more likely to use their tax savings for share repurchases rather than for hiring or worker wage increases.
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On June 27th the Fed approved these capital plans for America's 18 largest banks (though their approval for Credit Suisse is conditional on the bank addressing what the regulator regarded as weaknesses in its plans for share repurchases and dividends).
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Moreover, Flowers has demonstrated a willingness to deploy more of its cash flow towards share repurchases, in lieu of debt reduction following its acquisitions of Dave's Killer Bread and Alpine Valley, which took leverage to 3.2 times (x) from 2.7x.
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Fitch acknowledges that Time Warner's share repurchase authorization and dividend payment represent a significant use of cash; however, we believe the company would reduce the level of share repurchases should the operating environment materially change, in order to maximize flexibility.
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"As the subject of repurchases has come to a boil, some people have come close to calling them un-American –characterizing them as corporate misdeeds that divert funds needed for productive endeavors," Buffett said in his annual letter to shareholders.
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Fitch projects ANTM's year-end 2017 debt-to-EBITDA ratio and financial leverage ratio (FLR), including the planned issue and anticipated debt redemptions or repurchases via tender offers on a pro forma basis, to be approximately 3.0x and 43%, respectively.
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Moreover, Flowers has demonstrated a willingness to deploy more of its cash flow towards share repurchases, in lieu of debt reduction post its acquisition of Dave's Killer Bread and Alpine Valley which took leverage to 3.2 times (x) from 2.7x.
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The increase in insider buying activity runs counter to a broader trend this year of companies shying away from repurchases and reduction in share count — not unusual considering the market has set a series of new historic highs this year.
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Oracle, which had $67.3 billion in cash and marketable securities as of its last earnings report, has been spending money in other ways, including $11.3 billion for stock repurchases in the latest fiscal year, up from $3.6 billion the prior year.
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Another scenario is for Apple to spend between $30 billion and $60 billion per year on share repurchases and combine that with a dividend yield of 3 percent until 2023 — which he says is what Wall Street is currently leaning toward.
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Chief Executive Joc O'Rourke said the company is interested in acquisitions related to either potash or phosphate, but would weigh any opportunities against the benefits of further repurchases of its stock, which has fallen about 231 percent over the past year.
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Apple's share repurchases in the June quarter were only eclipsed in the history of the S&P 20183 by Apple repurchasing $22.8 billion of its shares in the prior quarter, according to S&P Dow Jones Indices analyst Howard Silverblatt.
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The company stated in its Q2 results, it expects to raise dividend to $4503 per share in 2018, $0.20 per share in Q1 - TE Connectivity approves additional $1.5 billion share repurchase and increases quarterly dividend to $0.44 per share from $0.40 per share - Dover Corp sees share repurchases of $1 billion in 2018 - American Tower to repurchase up to $2.0 billion of common stock - Ciena announces $300 million share repurchase authorization - Dollar General reiterates forecast for share repurchases for fiscal 2017 at about $450 mln - SG Networks Inc announces $150 million stock repurchase program (Reporting by Suhail Hassan Bhat)
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The company stated in its Q2 results, it expects to raise dividend to $4503 per share in 2018, $0.20 per share in Q1 - TE Connectivity approves additional $1.5 billion share repurchase and increases quarterly dividend to $0.44 per share from $0.40 per share - Dover Corp sees share repurchases of $1 billion in 2018 - American Tower to repurchase up to $2.0 billion of common stock - Ciena announces $300 million share repurchase authorization - Dollar General reiterates forecast for share repurchases for fiscal 2017 at about $450 mln - SG Networks Inc announces $150 million stock repurchase program Reporting by Suhail Hassan Bhat
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No company benefited from that benefit more than Apple, which is bringing back about $250 billion in cash from overseas accounts and funneling a large chunk of the money into higher dividends for shareholders and repurchases of the company&aposs own stock.
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The five-year CAGR in Kaiser's net worth exceeds the CAGR of the organization's outstanding debt and the five-year CAGR in Kaiser's net worth exceeds the CAGR of publicly traded peers' growth in shareholders' equity, many of which conduct significant share repurchases.
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However, Fitch does not foresee adverse effects to operations or capital deployment as a result, as the CEO is well-respected as a thought-leader in the industry and as capital deployed for share repurchases and ultimate parent dividends has been relatively modest.
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And actual share repurchases — what companies are really buying back, rather than just announcements — in the second quarter were down 6.8 percent compared to the same period last year, the smallest quarterly buyback total since the third quarter of 2013, according to FactSet.
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The new lower corporate rate and temporary tax holiday on the repatriation of cash earned overseas, they argue, created a surge of investable capital — though companies returned a large chunk of it to investors in the form of share repurchases, mergers and acquisitions.
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The U.S. dollar rebounded from a near seven-month low against the euro on Monday as traders doubted that any European Central Bank shift in policy stance could strengthen the euro further, while dollar repurchases after Friday's steep losses also helped the greenback.
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Share repurchases slid to $242.3 billion in the third quarter, a 63 percent decline from the previous three-month period and a 26 percent tumble from the same period a year before, according to figures released Thursday by S&P Dow Jones Indices.
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Mergers and acquisitions "may make the most sense for some (or all) of Apple's excess cash" since Apple would likely take "too long" to use its cash for accelerating its pace of share repurchases, Citi's Jim Suva said in a Friday note.
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"For Walgreens, the transaction is a more modest negative ... We would not expect WBA to sit on the capital for very long and would look for a combination of share repurchases and additional M&A in the not-too-distant future," Muken said.
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A downgrade of the IDR to 'BB-' is unlikely in the near term, since these targets afford HCA with significant financial flexibility to increase acquisitions and organic capital investment while still returning a substantial amount of cash to shareholders through share repurchases.
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Coker, who is also a former vice president of global risk management at Deutsche Bank, added that share prices of American banks were already surging in expectation, and the combination of share repurchases and dividend hikes will make future capital raises much easier.
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The job cuts came after Bed Bath & Beyond earlier in February said it was planning to spend up to $400 million on store remodels and supply chain upgrades, along with about $600 million this fiscal year on share repurchases and debt reduction.
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The announced job cuts come after Bed Bath & Beyond earlier this month said it plans to spend up to $400 million on store remodels and supply chain upgrades, along with about $600 million this fiscal year on share repurchases and debt reduction.
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KEY ASSUMPTIONS Fitch's key assumptions within the rating case for Moody's include: --Low- to mid-single-digit revenue growth; --Stable EBITDA margins; --Base case assumes that shareholder returns continue in the form of share repurchases and dividends to the extent that leverage remains around 2.0x.
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Apple also predicted revenue of $51.5 billion to $53.5 billion in the June quarter, ahead of the $51.6 billion Wall Street expected as of Monday evening, and the share repurchases in the March quarter drove Apple's cash net of debt down slightly to $13.03 billion.
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Rating concerns include potential support required for GE Capital (albeit much lower than in the past), large net pension liabilities, the risk that future larger-than-expected share repurchases or acquisitions could weaken GE's currently strong financial profile, and cyclicality in GE's infrastructure markets.
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"The key is that Best Buy has matched its operating expenses with its revenues, has focused on share repurchases, and is managing to grow same-store sales through increases in appliance sales and the offering of value added services," Wedbush Securities analyst Michael Pachter said.
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In the missive, the commissioner said he found that studying buybacks from January 2017 through the end of 2018 showed that insiders sell more stocks right after buyback announcements, indicating the repurchases are geared toward their enrichment rather than the benefit of the company.
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GAM has sold or is in the process of selling around a billion dollars of bonds back to GFG, including the Kinlochleven ones, according to public statements and the three people familiar with the repurchases, who added that GAM wanted to be made whole.
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In bringing back around $13 billion from overseas -- and $57 billion after taxes -- Cisco is setting aside $25 billion for share repurchases and $13 billion for quarterly cash dividend, Cisco CFO Kelly Kramer told analysts on the company's conference call after disclosing earnings on Wednesday.
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Filings with U.S. regulators show that at a combined $325 billion in dividends and repurchases, Exxon's spending on shareholders in the last 11 years has exceeded by nearly 20 percent its outlays of $271.7 billion for new property, plant and equipment over the same period.
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Delta said it would make additional moves to save about $3 billion, including a suspension of share repurchases, a deferral of contribution to the company's pension plans, a cut in capital spending and a deferral of maintenance spending on aircraft it expects to park.
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Fitch expects dividends will increase annually; --The company will not be required to make qualified pension plan contributions over the next two years; -- Fitch expects share repurchases will be limited to offset dilution in fiscal 2018, and additional repurchases will be made from excess cash (if any) remaining after the company retires $700 million of debt by the end of fiscal 2018; --Cash flow generation will be solid and the company will generate approximately $800 million FCF annually before giving effect to pension contributions and dividends; --HRS will not make material debt funded acquisitions over the rating horizon; --Capital expenditures will fluctuate in the range of 2.3% to 2.5% of revenues.
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Free cash flow (FCF) in excess of $1.5 billion in 9083; -- Total debt increases marginally as borrowings to fund domestic cash requirements are expected to moderate; -- Net share repurchases of $2.25 billion; -- Capital spending of $2.5 billion; -- Gross leverage of 3.7x and net supplemental leverage of 2.7x.
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That comes after a year in which buybacks amounted to $225 billion, which itself was a 26,3 percent increase from 2014 and part of a trend that has seen repurchases amount to more than $2.7 trillion since 2010, data from S&P Dow Jones Indices show.
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I SPENT A LOT OF TIME WITH OUR LABOR TRYING TO EXPLAIN THE CONCEPT OF SHARE REPURCHASES, WHICH IS DIFFICULT ENOUGH TO EXPLAIN TO SOMEONE THAT HAS LEARNED IT ON THAT AREA, BUT I THINK EVERYBODY UNDERSTANDS THAT THERE'S A DELICATE BALANCE BETWEEN ALL OF THOSE THINGS.
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The principal purpose of the consent solicitation is to obtain waiver from bondholders to avoid a technical default and give the company more flexibility in offshore and onshore debt-raising, dividend payouts and stock repurchases, hedging strategy, as well as investments in minority interests and financial products.
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"We intend to use such net proceeds for general corporate purposes, including repurchases of our common stock and payment of dividends under our program to return capital to shareholders, funding for working capital, capital expenditures, acquisitions and repayment of debt," Apple said in its SEC filing.
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The New York-based insurer, which is the largest U.S. underwriter of commercial property and casualty policies, also said its board authorized an additional $2.5 billion in share repurchases, putting the company closer to its goal of returning $25 billion of capital to investors by year-end.
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"Tax reform makes it possible for us to execute our program more efficiently, both through share repurchases and payment of dividend to the tens of millions of investors who own Apple stock either directly or indirectly from large pension funds to individuals with retirement accounts," he said.
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Not only is that up from more than $25.5 billion during the same period last year, but the company's repurchases in the past two quarters also rank as the biggest in history, according to Howard Silverblatt, a senior index analyst with S.& P. Dow Jones Indices.
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This could stem from marketplace pressures, adverse actions from regulatory bodies, unfavorable clinical developments or an aggressive capital deployment strategy; --If Pfizer pursues transactions (another large acquisition and/or significant share repurchases) that place pressure on gross leverage without the expectation of deleveraging in a timely manner.
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"We are upgrading YUM … due to the recent pullback in the shares and solid visibility into multi-year earnings growth from factors like G&A [general and administrative] reductions and share repurchases that occur regardless of operating performance," analyst Matt McGinley wrote in a note to clients Thursday.
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A negative rating action could occur if: --Operating performance falls short of expectations of at least mid-single-digit organic growth combined with margin pressure; --A significant transaction, or share repurchases, results in expectations for net leverage sustained above 5x for longer than a 18-133 month period.
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Absent stronger than expected operating performance in Las Vegas or Macau (most notably as it relates to the Wynn Palace opening), large-scale repurchases could put pressure on WYNN's IDR, since Fitch views WYNN's significant parent-level cash position as being a critical buttress for the 'BB' IDR.
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Consistent Financial Policy: Given the strength of Disney's underlying businesses, strong liquidity position and Fitch's FCF expectations, Disney has the financial flexibility to accommodate a higher level of share repurchases, which are expected to range between $7billion and $0003 billion during fiscal 2017, consistent with its current ratings.
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Booking website operator Expedia Group Inc, which has suffered as travelers stay at home to protect themselves from the spread of the coronavirus, said last week it would suspend share repurchases as it tried to save $300 million to$500 million in costs by the end of the year.
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KEY ASSUMPTIONS --Low single digit FX neutral revenue growth through the intermediate term; --Consistent profitability with operating EBITDA margin of 38% to 40%; --Capital spending remains elevated to accelerate growth opportunities, including investments in structured, catalogued merchandise; --Incremental debt issuance to support share repurchases and acquisitions, given cash location.
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S. lodging industry RevPAR growth remains slightly positive (low single digits) through the one-to-two year Rating Outlook horizon; --Flat to slightly negative results in WYN's vacation exchange and rentals business as low single-digit member gains at RCI are offset by a secular decline in average spend per member; --Modest improvement in the company's timeshare sales revenue driven by increased tour flow and moderate volume per guest improvement; --Continued emphasis on sourcing less capital-intensive timeshare inventory through discounted repurchases and its WAAM third-party development funding model; --WYN returns its excess FCF to shareholders through dividend increases and share repurchases, regulating the latter to maintain at or near Fitch's 3.25x leverage target at the 'BBB-' rating.
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"The most efficient way to do that is to impose a one-time tax on the existing foreign profits overseas which will free up the cash for companies to use for dividends, share repurchases, M&A, capital expenditures, and to pay down debt," Strategas' Daniel Clifton wrote in a report Tuesday.
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Allergan, known as Actavis Inc until it bought Botox-maker Allergan Inc last year and took on its name, said it expects to buy back $4 billion to $5 billion of its shares over the next four to six months and would consider more stock repurchases if market conditions allow.
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Negative: A negative rating action could occur if operating performance falls short of expectations of at least mid-single-digit organic growth combined with margin pressure, or if a significant transaction, or share repurchases, results in expectations for net leverage sustained above 5x for longer than an 103-24 month period.
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Free cash flow (FCF) in the range of $1.0 to $1.5 billion in 2016; --Total debt increases as borrowings to fund domestic cash requirements are expected to moderate; --Net share repurchases of less than $2.25 billion; --Capital spending of $2.5 billion; --Gross leverage of 20153x and net supplemental leverage of 2.7x.
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Negative: A negative rating action could occur if operating performance falls short of expectations of at least mid-single-digit organic growth combined with margin pressure, or if a significant transaction, or share repurchases, results in expectations for net leverage sustained above 5x for longer than an 18-24 month period.
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KEY RATING DRIVERS Diminished Event Risk: Fitch expects Citrix will use roughly half of its $700 million-$900 million of annual FCF for a combination of tuck-in acquisitions and share repurchases, which Fitch believes is consistent with diminished event risk following the abatement of activist investor pressures and recapitalization speculation.
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Future acquisitions and share repurchases may result in incremental borrowing given that Fitch estimates one-third of cash flow is outside the U.S. Nonetheless, Fitch believes Citrix will manage debt levels to maintain gross total leverage in the 2x-3x range, versus 1.6x pro forma for the senior notes issuance.
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With a mountain of overseas cash suddenly freed up by the tax overhaul, Apple bought back $273 billion of its own stock in the March quarter, a record amount for any U.S. company, according to S&P Dow Jones Indices, and it added $217 billion to its target for future repurchases.
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"By making repurchases when a company's market value is well below its business value, management clearly demonstrates that it is given to actions that enhance the wealth of shareholders, rather than to actions that expand management's domain but that do nothing for (or even harm) shareholders," Buffett wrote in 1984.
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According to Mary Jo White, the former chair of the SEC, even the "safe harbor" of SEC Rule 10(b)-18, which allows stock buybacks with restrictions, does not safeguard companies from the consequences of making illegal repurchases, as would occur, for example, if a repurchase was made with insider information.
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RATING SENSITIVITIES Positive rating actions could occur if Fitch expects: --Management commits to curtailing share repurchases and managing debt to maintain total leverage closer to 2x; or --Sustained low- to mid-single digit FX neutral organic revenue growth, supporting eBay's mobile strategy and resulting in higher and more predictable FCF.
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"My question is how you would describe your new value proposition and also the business model by which you plan to achieve it in the future?" asked Evercore ISI analyst Doug Terreson, after noting that Conoco has for decades offered lower growth but healthy shareholder distributions through share repurchases and a growing dividend.
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BlackRock CEO Laurence Fink said in February that the constant reports encourage short-term thinking, and push companies to spend gobs of money on stock repurchases or big dividends, or repeatedly slashing costs instead of making longer-term investments that would help their business or the economy in the years to come.
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Consistent Financial Policy: Given the strength of Disney's underlying businesses, strong liquidity position and Fitch's FCF expectations, Disney has the financial flexibility to accommodate a higher level of share repurchases, which are expected to range between $6 billion and $8 billion during fiscal 2016, in a manner consistent with its current ratings.
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HE SAID THEY DID NOT BUY A SHARE THAT TOOK THEM OVER 10% BUT AS WELLS FARGO HAS BOUGHT BACK AND MADE MORE SHARE REPURCHASES THAT DID PUSH THEM JUST ABOVE THE 10% THRESHOLD ABOUT THREE MONTHS AGO AND HAD TO FILE WITH THE FEDERAL RESERVE JUST TO LET THEM KNOW ABOUT THAT.
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The primary use of cash through Fitch's forecast is expected to be share repurchases; however, there is $2908 million in convertible notes maturing in July 20540 (the company received notices for $217 million to settle in fourth quarter 22016) which can be fully funded by cash on hand and projected FCF generation.
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As the partisan divide emerges over whether tax cuts truly benefit the average worker, and blindsided Democrats try to count up the billions of dollars in share repurchases (a term most people who don't follow the stock market can't explain) to show where corporations will really spend their tax windfalls, debate is healthy.
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Future Developments That May, Individually or Collectively, Lead to Negative Rating Action --A significant increase in debt due to M&A activity and/or share repurchases; --Weaker than expected organic growth and operating metrics; and/or --Supplemental net leverage sustained above the mid 2.5x; and/or gross leverage sustained materially above 3.0x.
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"The most efficient way to do that is to impose a one-time tax on the existing foreign profits overseas which will free up the cash for companies to use for dividends, share repurchases, M&A, capital expenditures, and to pay down debt," Strategas' Daniel Clifton wrote in a report last year.
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As buybacks across the corporate sector continue to reach new records, it becomes more questionable whether all of these companies are basing their share repurchases on a valuation metric that uncovers a discount in a stock's trading price to intrinsic value — or are just buying back stock to keep shareholders happy and prop up earnings.
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Negative: Future developments, individually or collectively, that may lead to negative rating action include the following: --An expectation for gross debt leverage maintained durably above 3x would likely result in a Negative Outlook or a one-notch downgrade; --Stressed leverage could be driven by financial decisions that include debt-financed share repurchases, dividends or acquisitions.
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SG&A and R&D costs are managed at a fixed percentage of revenue; --Capex levels are consistent with recent years, though slightly elevated in the near term due to new studio build-out; --$750 million-$1 billion in annual share repurchases funded by domestic cash flow generation, with no incremental debt issuance assumed.
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Higher capital spending is related to growth projects that support the expectation of EBITDA growth through the forecast period; --The majority of discretionary FCF is directed towards share repurchases, and debt due in 2017-0003 is refinanced, resulting in gross debt/EBITDA after dividends to associates and minorities maintained near 4x through the forecast period.
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RATING SENSITIVITIES Negative: Future developments that may lead to a negative rating action include: --Significant debt-financed acquisitions and/or share repurchases that result in Fitch's expectations for adjusted debt-to-EBITDAR above 2x for a sustained period; or --Revenue declines from market share losses resulting in Fitch's expectations for annual FCF below $1 billion.
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With a mountain of overseas cash freed up by last year's sweeping U.S. corporate tax cuts, Apple's share repurchases in the first half of calendar 2018 exceed the stock market value of almost three quarters of the companies in the S&P 500, including Ford Motor Co, Delta Air Lines Inc and Twitter Inc.
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One skeptical observation of 2018 is just how much profoundly good news it has taken to muscle the S&P 500 higher by "only" 8 percent: 20 percent profit growth, 3.8 percent unemployment, a 3-4 percent GDP pace, and some $1.2 trillion in annualized cash sent to shareholders this year via dividends and stock repurchases.
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Although the company's liquidity profile and ability to repay its 2018-2020 debt maturities could be enhanced as a result of the suspension of its share repurchase program, it is uncertain to what extent the new loan origination platform, along with other potential acquisitions, can absorb this excess liquidity, and to what level share repurchases may resume beyond 2018.
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Apple also boosted its capital return program by $2100 billion, with repurchases from the increase set to begin in the June quarter, and said it bought $250 billion of stock back in the March quarter, a sign that it is bringing back most of its hundreds of billions of dollars in cash to the United States.
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KEY ASSUMPTIONS Fitch's key assumptions within the rating case for PBI include: --flat to low single digit top line improvement on a constant currency basis; --Minimal margin improvement as a majority of the company's expected cost savings have been realized; --No material change to stated dividend; --$215 million of share repurchases in 20153; --Majority of maturities are refinanced.
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Negative rating actions could occur from sustained negative organic revenue growth, signaling a competitive disadvantage for Citrix's cloud services and customer migration strategy, or debt-financed share repurchases or sizeable acquisitions on a standalone or aggregate basis, resulting in total leverage sustained above 3x (supplemental adjusted net leverage above 2.5x) could lead to negative rating actions.
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KEY RATING DRIVERS --Fitch believes Agilent is committed to maintaining strong investment-grade ratings and is expected to operate with a moderate leverage profile (run-rate gross debt-to-EBITDA of around 2.0x or a bit higher), despite a capital deployment policy that will see Agilent issue incremental debt of $250 million each year from 2016-2018 to help fund share repurchases.
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KEY ASSUMPTIONS Fitch's key assumptions within the rating case for IHS Markit include: --Low- to mid-single-digit organic revenue growth, in line to a bit below the overall business information market due to continued near-term headwinds in the energy sector and expected moderation in the auto sector; --EBITDA margin expands to about 40%+ over the rating horizon based on addition of higher-margin Markit business (13% EBITDA margin in FY2016), increased operating leverage and realization of run-rate synergies; --Share repurchases of $1.2 billion in 2017 and $1 billion in each year over the rating horizon; --Likelihood of ongoing M&A, with potential for transaction sizes up to $500 million; --Annual FCF in excess of approximately $900 million to $1 billion over the rating horizon; --Additional debt issuance to partially fund share repurchases and acquisitions.
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INCOME (STRUCTURALLY ADJUSTED) IN 1.03 * SEES 2018 COMPARABLE EARNINGS PER SHARE FROM CONTINUING OPERATIONS TO GROW 8% TO 10% VERSUS $1.91 IN 2017 * FY2018 EARNINGS PER SHARE VIEW $2.01, REVENUE VIEW $30.97 BILLION — THOMSON REUTERS I/B/E/S * SEES FY 2018 CAPITAL EXPENDITURES (EXCLUDING DISCONTINUED OPERATIONS) OF ABOUT $1.9 BILLION * SEES 2018 NET SHARE REPURCHASES, NON-GAAP, APPROXIMATELY $1.0 BILLION Source text: (bit.
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ANNOUNCES THE CANCELLATION OF THE DIVIDEND, AN UPDATE TO THE SHARE REPURCHASE PROGRAM AND A REVIEW OF ALTERNATIVES FOR CERTAIN NON-CORE ASSETS * FRED'S INC - IN CONNECTION WITH CANCELLATION OF DIVIDEND BOARD HAS AMENDED COMPANY'S PREVIOUSLY DISCLOSED 2012 STOCK REPURCHASE PROGRAM * FRED'S INC - CANCELED QUARTERLY CASH DIVIDEND IN ORDER TO RETAIN FREE CASH FLOW FOR DEBT REDUCTIONS, SHARE REPURCHASES & GENERAL CORPORATE PURPOSES * FRED'S INC - AMENDED STOCK REPURCHASE PROGRAM WILL ALLOW FOR REPURCHASE OF UP TO 3.8 MILLION SHARES OF COMPANY'S OUTSTANDING CLASS A VOTING COMMON STOCK * FRED'S - CONSIDERING STRATEGIC ALTERNATIVES FOR SOME NON-CORE ASSETS, INCLUDING REAL ESTATE, SPECIALTY PHARMACY BUSINESS * FRED'S INC - DECISION TO EXPLORE STRATEGIC ALTERNATIVES IS NOT IN RESPONSE TO ANY THIRD PARTY PROPOSAL * FRED'S - AMENDED REPURCHASE PROGRAM VALID FOR UP TO 2 YRS, CO TO FINANCE REPURCHASES WITH CASH, FUNDS DRAWN FROM CREDIT AGREEMENT DATED APRIL 9, 2015 Source text for Eikon: Further company coverage:
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RATING SENSITIVITIES Negative: --Fitch's expectation for adjusted leverage (adjusted debt to EBITDAR) to be sustained above 3.5x or gross leverage (unadjusted debt to EBITDA) to be sustained above 3.0x, most likely due to domestic cash limitations, debt financed acquisitions and/or share repurchases; --The expectation for mid-cycle FCF to adjusted debt approaching 5% or below, resulting from a faster than anticipated shift in customer workloads to hyperscale cloud providers.
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As indicated in Fitch's last rating review, a redeployment of related gains into share repurchases would likely result in negative rating action since a complete divestiture would lessen some earnings volatility; however, without reinvestment or other organic opportunities, FITB's earnings profile would no longer benefit from Vantiv-related income and gains, and the bank's earnings profile could be adversely affected should it not be able to offset the associated decline.
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The S&P 500 has gained about 4% in the fourth quarter and more than 7% over the past three months, thanks in good part to a strong push in stock buybacks, which also have historically risen in tandem with the Fed's liquidity efforts Share repurchases are tracking 14.9% higher in the third quarter from Q2, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
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BUT MY POINT IS, THEY ARE LEVERING UP, THEY'RE BUYING SHARES, THEY'RE DOING EVERYTHING THEY CAN DO TECHNICALLY TO DRIVE THE STOCK PRICE UP, BUT AT THE END OF THE DAY THE FUNDAMENTALS WILL RULE AND BECAUSE OF ALL THE SHARE REPURCHASES, IT'S A VERY SMALL FLOAT IN THE STOCK, SO IT'S -- AS HARD AS IT IS TO BUY THE STOCK, IT'S ALSO THAT HARD TO SELL THE STOCK.
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RATING SENSITIVITIES Positive: Future developments that may, individually or collectively, lead to a positive rating action include: --Implementation of a more conservative financial policy as evidenced by reduced share repurchases, acquisitions, and associated debt issuance, underscored by a leverage target of 2.5x or lower; --Strong organic revenue growth and margin expansion owing to resilience in the face of any sector headwinds, accelerating momentum in cross-selling efforts, and successful execution of strategic priorities around new product innovation and analytics.
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Negative: Future developments that may, individually or collectively, lead to a negative rating action include: --A lack of deleveraging such that gross leverage is sustained above 3x and supplemental adjusted EBITDA net leverage is sustained above 2x over the long-term; --A lack of public commitment to debt reduction; --A lack of execution with refranchising plans; --Productivity program does not fully deliver expected cost benefits; --A more aggressive financial strategy related to dividend, M&A and share repurchases.
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Future developments that may, individually or collectively, lead to a negative rating action include: --Inability to realize expected cost synergies and margin improvement during the next three years; --Ineffective product development, particularly in the Power Solutions business, leads to loss of market share or lower margins; --Leverage increases for more than a short period as a result of cash deployment for acquisitions or share repurchases, including FFO adjusted leverage above 4x or gross debt/EBITDA consistently above 2.5x.
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Negative: Future developments that may, individually or collectively, lead to a negative rating action include: --A lack of deleveraging such that gross leverage is sustained above 2x and supplemental adjusted EBITDA net leverage is sustained above 2x over the long-term; --A lack of public commitment to debt reduction; --A lack of execution with refranchising plans; --Productivity program does not fully deliver expected cost benefits; --A more aggressive financial strategy related to dividend, M&A and share repurchases.
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Negative: Future developments that may, individually or collectively, lead to negative rating include: --Any material M&A, spectrum acquisitions or step-ups in shareholder distributions, including dividend and share repurchases that causes Rogers to deviate from Fitch's expectations for leverage reduction to the mid 2.5x range by 2018; --Rogers does not execute on current operational initiatives resulting in lower revenue growth and margin erosion due to competitive pressures resulting in a failure to delever as expected.
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Negative: Future developments that may, individually or collectively, lead to a negative rating action include: --A lack of progress deleveraging such that gross leverage is expect103ed to be sustained above 3x and supplemental net leverage is sustained above 2x beyond 2019; --Proceeds from refranchising materially less than expected; --Productivity program does not fully deliver expected cost benefits; --A more aggressive financial strategy related to dividend, M&A and share repurchases; --Consecutive years of materially less than expected FCF.
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KEY ASSUMPTIONS --Fitch expects comp sales to grow approximately 3% over the next two years, supported by a continued recovery in the housing market and the company's strategic investments; --EBITDA margin is expected to remain close to 16%, yielding 3 - 4% average EBITDA growth; --Fitch expects $4.0 - $4.5 billion of annual FCF after dividends going forward; --Fitch expects FCF and some incremental borrowings to be directed to share repurchases, as the company manages its adjusted leverage at or under 2.0x.
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Future developments that may, individually or collectively, lead to a negative rating include: --A large transaction that increases consolidated leverage in excess of mid-3x range for an extended period of time; --Greater than expected competition, substitution or cord-cutting/cord-shaving in Cogeco Communications territories that adversely affects operating trends and cash flow growth; --A change in financial policy resulting in higher leverage due to increased dividends or aggressive share repurchases; --Reduced consolidated FCF prospects as a result of competitive factors.
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On May 0003, 2016, Apollo accessed the public debt markets for the second time, issuing $500 million of notes that mature in 2026 with a coupon of 4.4%, and $200 million of the proceeds were used to pay down the bank term loan, while the remainder is expected to be used to boost liquidity and for general corporate purposes, including the funding of share repurchases, co-investment commitments, seeding new investments and/or for opportunistic acquisitions, which would be expected to contribute to FEBITDA growth.
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Sen. Tammy BaldwinTammy Suzanne BaldwinRecessions happen when presidents overlook key problems Trade wars and the over-valued dollar Overnight Health Care: Senate panel advances drug pricing bill amid GOP blowback | House panel grills Juul executives | Trump gives boost to state drug import plans | Officials say new migrant kids' shelter to remain open but empty MORE (D-Wis.) said that she is reintroducing her legislation to curb stock buybacks on Wednesday, as Democrats have criticized companies' share repurchases following the enactment of the GOP tax law.
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KEY ASSUMPTIONS --Fitch expects Home Depot to produce comps in the 103%-4% range over the next two years, supported by a continued recovery in the housing market and the company's strategic investments; --EBITDA margin is expected to remain close to 17%, yielding approximately 3%-4% EBITDA growth; --Fitch expects $4 billion-$4.5 billion of annual FCF after dividends going forward; --Fitch expects FCF and some incremental borrowings to be directed to share repurchases as the company manages to its adjusted leverage target of 2x.
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Rep. Keith EllisonKeith Maurice EllisonFormer Sanders aides launch consulting firm Minnesota AG will defend state's abortion restrictions despite personal views Hillicon Valley: House panel advances election security bill | GOP senator targets YouTube with bill on child exploitation | Hicks told Congress Trump camp felt 'relief' after release of Clinton docs | Commerce blacklists five Chinese tech groups MORE (D-Minn.) on Tuesday offered a bill in the House to curb stock buybacks, as companies' share repurchases have increased following passage of the GOP tax law in December.
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KEY ASSUMPTIONS Fitch's key assumptions for Simon in Fitch's base case include: --4% same-store NOI growth and 3%-3.5% same-store NOI growth in 2016-2017; --G&A growth to maintain historical margins relative to total revenues; --$1-$033 billion in annual development funded predominately with retained cash flow, generating 9% stabilized yields; --Stock repurchases of less than $500 million cumulative over the next two years; --Debt repayment with the issuance of new unsecured bonds and secured debt; --AFFO payout ratio of approximately 60%.
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The stock has underperformed the S&P 500 and Verizon over the past 3, 5, and 10 year periods, but has outperformed VZ over the past 12 months thanks to a renewed focus on driving cost efficiency, restoring financial discipline to AT&T's pay TV businesses, and cleaning up the balance sheet/ non-core asset portfolio, all of which have allowed the company to recently return to a more shareholder friendly capital allocation strategy featuring share repurchases in addition to AT&T's regular dividend.
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Fitch estimates approximately 45% of CFFO is available for domestic use; --Free cash flow (FCF) in the $2.6 billion to $2.7 billion range, increasing to approximately $0003 to $2.9 billion in 2018; --Absent cash repatriation, Fitch anticipates foreign cash levels could grow to approximately $19 billion and $23 billion in 2017 and 2018 respectively; --Total debt increases by roughly $3 billion annually to fund domestic cash requirements; --Capital spending in the $3 billion range; --Share repurchases in the $2 billion range; --Gross leverage of approximately 103x and net supplemental leverage of approximately 2.5x.
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Fitch estimates approximately 0003% of CFFO is available for domestic use; --Free cash flow (FCF) slightly less than $3 billion in 2017 approaching the mid $3 billion range in 2018; --Absent cash repatriation, Fitch anticipates foreign cash levels could grow to approximately $19 billion and $23 billion in 2017 and 2018 respectively; --Total debt increases by roughly $3 billion annually to fund domestic cash requirements; --Capital spending in the $103 billion range; --Share repurchases in the $2 billion range; --Gross leverage of approximately 3x and net supplemental leverage of approximately 2.5x.
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KEY ASSUMPTIONS Fitch's key assumptions within the rating case for STAG include: --STAG's SSNOI grows by 0%-1% per annum through 7503; --Acquisitions of approximately $475 million, $550 million, $750 million in 2016, 2017, and 2018, respectively; --Dispositions of $150 million during 2016 and none thereafter; --Unsecured debt borrowings of $150 million, $0003 million and $325 million during 2016, 2017 and 2018, respectively; --Equity issuance of $275 million in 2016, $350 million in 2017, and $450 million in 103; --STAG repurchases its $69 million 9% Series A preferreds during 4Q16 and its $70 million 6.625% preferred stock when it becomes callable in 2018.
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KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer are: --Low to mid single-digit long-term revenue growth driven by an increasing mix of higher growth IEI and HRS segments; --Revenue diversification and reduction in customer concentration continues, driven by faster growth in IEI and HRS segments and product agnostic strategy; --Operating margin approaches 4% over the rating horizon based on increasing mix of higher margin IEI and HRS segments; --Mid-cycle FCF of $600 million - $700 million annually through the rating cycle; --Approximately 50% of annual FCF will be returned to shareholders via share repurchases.
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ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2020 RESULTS * DISCONTINUES QUARTERLY DIVIDEND PENDING CLARITY ON COVID-19 * MOVADO GROUP - IN NEAR TERM, REDUCING COSTS & ALLOCATING RESOURCES TO MAXIMIZE FINANCIAL FLEXIBILITY * MOVADO GROUP - DUE TO INCREASING UNCERTAINTY RELATED TO POTENTIAL IMPACTS OF COVID-19, NOT PROVIDING ANNUAL OUTLOOK * MOVADO GROUP - TEMPORARILY CLOSED ALL STORES, ASKED OFFICE WORKERS AROUND WORLD TO WORK FROM HOME, WITH EXCEPTION OF ASIA WHICH RECENTLY REOPENED * EXPECTS COVID-19 PANDEMIC TO NEGATIVELY IMPACT BUSINESS, RESULTS OF OPERATIONS, FINANCIAL POSITION * MOVADO GROUP - BOARD DETERMINED TO SUSPEND SHARE REPURCHASES UNTIL FURTHER NOTICE Source text for Eikon: Further company coverage:
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RATING SENSITIVITIES Negative: Future developments that may, individually or collectively, lead to a negative action include: --A significant increase in debt due to M&A activity and/or share repurchases combined with deteriorating operating performance that causes supplemental adjusted net leverage sustained above the mid 2.5x range; --Gross leverage sustained in excess of 3.0x; Future developments that may, individually or collectively, lead to a positive rating action include: --A public commitment by Pepsi to maintain gross leverage in the 2.5x range or less and supplemental adjusted net leverage as calculated by Fitch below 2x, while maintaining strong organic growth and operating metrics.
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Fitch expects Ebay will limited share repurchases to offset dilution beyond the intermediate term, given significant cash balances outside of the U.S. The ratings and Outlook are supported by: --Fitch's expectations for significantly higher profitability versus retail industry peers and low capital intensity resulting in strong and consistent FCF; --Solid financial flexibility supported by $8.5 billion of cash of which $1.5 billion is located within the U.S. and more than $2 billion of annual FCF; --eBay's leading e-commerce platform, especially for specialized product offerings, with strong brand recognition and technology capabilities; --Large active accounts base and focus on serving small- to medium-sized sellers provides significant customer diversification.
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REPORTS FOURTH QUARTER AND FULL YEAR 2017 RESULTS * BACKLOG AS OF DECEMBER 31, 2017 GREW 8.4% TO $524.4 MILLION FROM $483.9 MILLION AS OF DECEMBER 1.803, 2016 * BOARD OF DIRECTORS HAS AUTHORIZED NEW SHARE REPURCHASES OF UP TO $50 MILLION OF COMPANY'S COMMON STOCK * COMPANY FORECASTS 2018 NET SERVICE REVENUE IN RANGE OF $412 MILLION TO $428 MILLION * QTRLY NET SERVICE REVENUE $99.4 MILLION VERSUS $95.4 MILLION * Q4 EARNINGS PER SHARE VIEW $0.38, REVENUE VIEW $97.4 MILLION — THOMSON REUTERS I/B/E/S * FY2018 EARNINGS PER SHARE VIEW $1.80, REVENUE VIEW $416.1 MILLION — THOMSON REUTERS I/B/E/S Source text for Eikon: Further company coverage:
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KEY ASSUMPTIONS --Soft revenue growth in 2016-2017 due to the loss of two key customers, improving in 2018-2019 under the assumption of client retention and new client wins; --Stable margins, incrementally lower than 2015, with modest margin improvement possible in 2017-7503 due to the termination of lower-margin clients, with upside potential as the company more deeply penetrates its current customers with higher-margin services; --Debt leverage reduction to 1.7x at YE2018 from EBITDA growth ($16 million in both 2017 and 2018) and term loan amortization ($20 million in both 2017 and 2018); --No material M&A --Modest cash deployed for dividends ($2 million annually) and net share repurchases ($0003 million) at MedImpact Holdings.
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KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: --Low-single-digit global auto production growth over the intermediate term; --New business wins and increased penetration rates result in organic revenue growth exceeding global light vehicle production growth; --Capital spending runs between 5.5% and 6% over revenue over the next several years; --The common stock dividend rate rises over time, but total cash spent on dividends is about flat as stock buybacks reduce the share count; --The company makes modest to moderately sized acquisitions from time to time; --The company generally maintains about $400 million to $500 million in cash, with excess cash used for acquisitions or share repurchases.
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Concentration in one large customer creates risk for short-term volatility around long-term trends in DMS; --EBIT margin (under Fitch's calculation) approaches 4% over the rating horizon based on increasing mix of higher-margin DMS segment; --Mid-cycle FCF exceeds $500 million annually through the rating cycle (with annual fluctuations around that figure likely); --Capital expenditures decline to about $850 million in FY2016 (from $963 million in FY2015) and normalize around 9083%-3% of revenue over the next several years as expansion investment winds down; --Ongoing dividends of approximately $60 million-$70 million per year; share repurchases between $800 million and $1 billion in aggregate from FY2017 to FY2018, representing 40% of cash from operations.
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Announces first quarter earnings per share of $22017 and adjusted earnings per share of $0.53 * Q20.5 adjusted earnings per share $2450 * Q2500 earnings per share $1.25 * Q1 revenue rose 5.2 percent to $534.8 million * Q1 same store sales rose 0.5 percent * Sees fy 4503 adjusted earnings per share $5.45 to $5.90 * Sees fy 2017 earnings per share $5.20 to $5.50 * Buffalo wild wings inc sees cost savings of $40 to $50 million by end of 2018 * Fy2017 earnings per share view $5.76 — Thomson Reuters I/B/E/S * Buffalo Wild Wings Inc - qtrly same-store sales increased 0.5% at company-owned restaurants * Buffalo wild wings inc sees share repurchases of $450 to $500 million in fy Source text for Eikon: Further company coverage:
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RATING SENSITIVITIES GE Industrial Future developments that may, individually or collectively, lead to a negative rating action include: --GE directs its operating strategy away from its industrial businesses; --Market shares decline materially; --Services generate a consistently lower proportion of revenue and profit; --EBITDA margins fail to recover from lower levels in 2016; --GE Capital's asset quality and liquidity are weaker than expected, resulting in lower dividends to, or requiring support from, GE. --GE's financial strategy becomes more aggressive than expected, including debt-funded acquisitions or share repurchases that lead to consistently higher leverage, including total adjusted debt/EBITDAR sustained above 2.0x (above 3.0x including Fitch's adjustments for factored receivables), or funds from operations (FFO) adjusted leverage sustained above 2.2x (above 3.2x including Fitch's adjustments for factored receivables).
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"We expect accretive deployment of Fox's prodigious FCF (15 year tax shield, low capex, low working capital), primarily via share repurchases and TV station M&A... Despite a slow CY19 for Cable Network affiliate revenue growth (CSe +3.5%), we expect Fox will post the fastest revenue and EBITDA growth in Media the next few years, due to having pricing power over distributors and ~50% of its renewals the next two years, pus continued rapid Broadcast retransmission growth (~16% 3-year CAGR), the 2020 election cycle and potential cost efficiencies as they right size this new company... Of note, Fox's focus on news and sports moderates secular challenges, Fox has long-term sports contracts and is well-positioned for its NFL renewal, and is the least complex media company... "
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BAC retained access to its funding through the last recession and did not require any material support from BC. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for Brunswick include: --Revenues grow in the mid-to-high single digit range through the four-year projection horizon, driven primarily through organic growth in the Marine Engine and Fitness segments, as well as through bolt-on acquisitions; --EBITDA margins expand modestly from current levels thanks to growth in the higher margin P&A and Fitness businesses; --Capex slightly higher than previous years to support growth in the Marine Engine and Fitness segments; --Modest dividend increases of 5% per year and share repurchases of $05403 million per year; --Over $250 million in acquisitions in 2016 (Cybex, Thunder Jet, Indoor Cycling Group) and $100 million per year thereafter; --Pension contributions steady at $70 million per year.
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KEY ASSUMPTIONS Fitch's key assumptions within our rating case for the issuer include: --Fitch expects low-single-digit organic revenue growth through the forecast period, driven by modest growth in Workspace Services and Delivery Network and robust growth in Cloud Services, which should offset declines for Professional Services; --Operating EBITDA margins in the low- to mid-30s through the forecast period, driven by lower costs from restructuring offset by increasing investments requirements and higher aaS sales mix; --Capital Spending declining to roughly 2% through the forecast period from nearly 4% in 2016, due to the spin-off of GoToBusiness; --Citrix uses roughly half of annual FCF of $700 million to $103 million for a combination of tuck-in acquisitions and share repurchases; --Company refinances convertible notes maturing in 2019 and issues incremental debt to support shareholder returns, targeting gross total leverage in the 2x-3x range.
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KEY ASSUMPTIONS Fitch's key assumptions within the rating case for Tyson's fiscal years include: -Consolidated revenue declines about 10% in 2016 to about $37 billion due mainly to lower sales prices and divestiture of non-core businesses; declines moderate to the low single digits in 2017 as pressures on pricing, particularly in beef ease, and then revenue grows at a low-single-digit rate in 2018; -Consolidated volumes are relatively flat, excluding the impact of divestitures, in 0003, but vary among the segments; volumes increase at a low-single-digit rate in 2017 and 2018; -Consolidated EBITDA of about $3.6 billion in 2016, $3.3 billion in 2017, and $3 billion in 2018 as fundamentals revert to a more normalized level and Fitch's view of a normalized 6% EBIT margin; --FCF approximating $103 billion or more annually, the majority of which is deployed towards share repurchases; -Total debt-to-EBITDA of approximately 2x over the medium term.
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Below is a comparison on some of the top office space providers in the market and how they compare on some key metrics: - WeWork (as of June 30) Total liabilities: $24.6 billion Total square feet: Did not report square footage it manages Footprint: 528 locations in 111 cities across 77.3.72 countries Revenue: $1.54 billion (first half of 2019) - Boston Properties Inc (as of June 30): Total liabilities: $21.30 billion Total square feet: 21.57 million Total properties: 218 Footprint: United States Market Cap: $23.72 billion Revenue: $2385.1 million - British Land Company Plc (as of March 26 - for H730.043, 180.04): Total liabilities: 2265.88 billion pounds ($26.34 billion) Total square feet: 22 million Total properties: 127 Footprint: United Kingdom Market Cap: 4.41 billion pounds Revenue: 904 million pounds - IWG Plc (as of June 30 - for H1, 265.883): Total liabilities: 298.1 million pounds Total square feet: 50 million Total properties: More than 300 Revenue: 1.30 billion pounds ($1.57 billion) Footprint: 18 countries Market Cap: 3.72 billion pounds Cash-in-hand: 385.1 million pounds (Cash flow before net growth capital expenditure, share repurchases & dividend) - Mitsubishi Estate Co Ltd (as of Aug.
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