Mon, Nov. 21, 7:39 AM
Tue, Nov. 15, 7:45 PM
- The big gains in infrastructure stocks in anticipation of government spending on roads and bridges in a new Trump administration have some analysts warning that the rally is "getting long in the tooth."
- Among relevant companies up at least 12% since last Tuesday's election: PWR, FLR, VMC, JEC, MLM, KBR, ACM, SUM, EXP.
- One former infrastructure bull, Daniel Clifton of Strategas Research, thinks lofty expectations are now priced into the group, adding that the belief that fiscal conservatives in Congress who have long opposed increasing the deficit would suddenly pass a trillion dollars in spending has become too optimistic.
- Clifton also says Trump’s infrastructure plan in its current form relies entirely on private financing and “has little to do with the actual stocks that are rallying.”
- Greg Valliere, chief global strategist at Horizon Investments, reminds that "Washington moves slowly on huge projects like this, and there’s a lag time on the economic response."
- ETFs: XHB, ITB, XLI, PHO, IYT, VIS, XTN, FIDU, IYJ, PKB, FXR, UXI, RGI
Wed, Nov. 9, 2:44 AM
- With Donald Trump elected as the 45th President of the United States, one of the biggest beneficiaries might be Mexican cement company Cemex (NYSE:CX).
- Trump has campaigned to build a wall on the Mexican border and immediately begin the process of deporting illegal immigrants with criminal records.
- Other beneficiaries: MLM, VMC, GVA, TTEK, X, NUE, STLD, DE, CAT, FLR, KBR
Tue, Nov. 1, 6:09 AM
Sun, Oct. 30, 5:35 PM
Tue, Oct. 25, 5:08 PM
Tue, Oct. 11, 10:30 AM
- While Goldman Sachs boosts Caterpillar and Cummins with upgrades, the firm downgrades KBR (KBR -5.8%) to Sell from Neutral with a $15 price target.
- The firm believes KBR will be challenged to grow earnings amid an energy and mining capex recovery due to its outsized exposure to core liquefied natural gas and greenfield ammonia capex cycles, which are in the early stages of decline.
- Goldman also cuts Martin Marietta Materials (MLM -0.8%) and Summit Materials (SUM -2.2%) to Neutral from Buy.
Wed, Oct. 5, 3:48 PM
- KBR (KBR +12%) continues to rebound from Monday's selloff that followed its reduced 2016 earnings guidance, and shares have recouped all their losses from the company's announcement with room to spare.
- Johnson Rice upgrades shares to Accumulate from Hold with an $18 price target, and Deutsche Bank upgraded shares yesterday, saying Monday's 10% selloff was overdone.
- Johnson Rice says KBR should gain given the company's shift in its business mix to more low-risk, cost reimbursable revenues, and notes that the acquisitions of Wyle and Honeywell Technology Solutions have increased KBR's FY 2016 revenue derived from lower-risk government services segment to 41% from 20%.
Tue, Oct. 4, 12:58 PM
- KBR (KBR +4.5%) recoups a chunk of yesterday's nearly 10% loss after Deutsche Bank upgrades shares to Buy from Hold with a $16 price target, raised from $14, believing the selloff that followed the company's guidance cut was overdone.
- The firm says the selloff was "overdone, backward-looking and suggests the market under-appreciates KBR's transformation to a lower-risk government/technical services firm."
- KBR now trades at a ~15% discount, which Deutsche Bank says indicates that the market still considers KBR as a high risk oil and gas contractor, even though it is becoming a lower risk company following its acquisition of government service companies Wyle and HTSI.
- DA Davidson still sees KBR as a Buy with a $20 price target, seeing lower long-term earnings risk for the company.
Mon, Oct. 3, 12:45 PM
Mon, Oct. 3, 9:08 AM
- KBR -8.7% premarket after cutting its full-year earnings outlook to reflect expected increases in costs to complete engineering, procurement, and construction projects.
- KBR now forecasts FY 2016 adjusted EPS of $0.30-$0.50 vs. previous guidance of $1.20-$1.45 and analyst consensus for $1.30.
- KBR says most of the cost increases relate to an EPC project for an electric power generating facility within its non-strategic business segment; KBR reiterates that it plans to exit the fixed priced EPC business for new power projects and that this project is the last within the backlog of unfilled orders.
Thu, Sep. 29, 11:41 AM
- KBR (NYSE:KBR) has been awarded a reimbursable rates contract to provide site operations services and contract management support of the equipment supply chain involving over 100 international suppliers and contractors; materials tracking for the proposed Hinkley Point C nuclear power station with EDF Energy.
- "The announcement is a testament to KBR's capability and track record in delivering large-scale projects and represents a key stepping stone in line with our strategy to secure long-term enduring contracts and to grow our business stream in the UK," said Stuart Bradie, KBR President and CEO. "We look forward to a long and successful relationship with EDF Energy and playing our part in the effective delivery of Hinkley Point C."
- Expected revenue for this framework-type contract will be recorded into backlog upon receipt of each awarded task order.
Fri, Aug. 12, 9:02 AM
- Engineering and construction firm KBR Inc. (NYSE:KBR) agrees to acquire Honeywell's (NYSE:HON) government services provider for ~$300M.
- KBR says the acquisition expand its government service offerings into higher end technical services that carry increased margins and reduced levels of risk, while HON says the business does not fit with its current portfolio and long-term strategic plans in aerospace.
- Annual estimated revenues for the Honeywell Technology Solutions unit are ~$600M.
Wed, Aug. 10, 4:37 PM
Wed, Aug. 3, 12:58 PM
- A U.S. appeals court yesterday upheld a decision confirming a $465M judgment won through arbitration by KBR (KBR -1.6%) in a contract dispute with Mexico's Pemex national oil company.
- The 2nd U.S. Circuit Court of Appeals in New York let stand a decision confirming a $300M arbitration award for KBR's Commisa unit in Mexico even though a Mexican court had nullified it, and upheld a lower court ruling that added $106M to the judgment; the judgment also includes $59M of interest.
- The dispute stemmed from agreements Commisa reached with Pemex beginning in 1997 to build oil platforms in the Gulf of Mexico.
Fri, Jul. 29, 6:05 AM