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Global Market Turmoil: VIX Spikes to Pandemic-Era Highs as Recession Fears Intensify

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– The VIX spiked to its highest level since March 2020, indicating high market volatility.
– Major indices, including the Dow and Nasdaq, suffered significant losses amid recession fears.
– Experts urged the Federal Reserve to consider emergency rate cuts to stabilize the economy.

In a significant development for global financial markets, the Cboe Volatility Index (VIX), commonly known as Wall Street’s “fear gauge,” surged to its highest level since the pandemic-driven market plunge in March 2020. This increase in volatility comes amid a sharp sell-off in equities, driven by mounting concerns about a potential U.S. recession and disappointing economic data.

The VIX briefly soared above 65 on Monday morning, a dramatic rise from about 23 on Friday and roughly 17 just a week ago. It later cooled to about 42 shortly after 10 a.m. ET, reflecting ongoing market turbulence. The last time the VIX reached such heights was in March 2020, when it climbed as high as 85.47 following the Federal Reserve’s emergency actions during the Covid-19 pandemic.

The VIX is calculated based on market pricing for options on the S&P 500 and is designed to measure expected volatility over the next 30 days. It is often used as an indicator of investor fear and market uncertainty. Historically, spikes in the VIX have coincided with significant market sell-offs, although they can also precede swift recoveries.

Monday’s market rout saw the Dow Jones Industrial Average drop 854 points, or 2.1%, while the Nasdaq Composite lost 3.1%, and the S&P 500 slid 2.5%. The decline was part of a broader global sell-off, with Japan’s Nikkei 225 plunging 12%, marking its worst day since the 1987 Black Monday crash.

The sell-off was triggered by a combination of factors, including fears of a U.S. recession, disappointing July jobs data, and concerns that the Federal Reserve is not acting quickly enough to cut interest rates to support the economy. The Fed recently chose to keep rates at their highest levels in two decades, exacerbating investor anxiety about economic growth.

Tech stocks were among the hardest hit, with Nvidia falling more than 5%, Apple dropping nearly 4.6% after Warren Buffett’s Berkshire Hathaway halved its stake in the company, and Tesla down 10%. Other major losers included Broadcom and Super Micro Computer, down 7% and 12%, respectively.

The bond market also reflected heightened fears, with U.S. Treasury yields tumbling as investors sought safe havens. The yield on the benchmark 10-year note fell to 3.7%. Meanwhile, Bitcoin experienced a sharp decline, falling from nearly $62,000 on Friday to around $52,000 on Monday.

In Asia, the Nikkei 225’s 12.4% loss underscored the global nature of the sell-off. The index closed at 31,458.42, its worst day since 1987, with a record point drop of 4,451.28. The decline was exacerbated by the Bank of Japan’s decision to raise interest rates, which ended the yen “carry trade” and increased the yen’s value against the U.S. dollar.

The sharp increase in the VIX and the corresponding market declines have prompted calls for urgent action. Jeremy Siegel, Wharton professor emeritus and chief economist at Wisdom Tree, urged the Federal Reserve to implement an emergency 75 basis point cut in the federal funds rate and to consider another cut at the September meeting. Chicago Fed President Austan Goolsbee also acknowledged that current interest rates might be too restrictive and suggested that the central bank would take necessary actions if economic conditions deteriorate further.

As markets continue to digest these developments, investors are closely monitoring economic data and Federal Reserve communications for signs of stability. The interplay between economic indicators, Fed policy, and market reactions will be crucial in determining the trajectory of the financial markets in the coming weeks. With three more Fed meetings scheduled for this year, there remains ample opportunity for the central bank to adjust its policy stance in response to evolving economic conditions.

The dramatic rise in the VIX serves as a stark reminder of the market’s vulnerability to economic uncertainties and the importance of vigilant policy responses to maintain stability and investor confidence.

Release – Graham Corporation Wins Over $65 Million In Defense and Space Industry Contracts for Mission Critical Turbomachinery and Cryogenic Pump Products

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on GHM

  • Secures new contract to provide the MK19 Air Turbine Pump assembly for the Columbia-class submarine
  • Wins new contract to provide cryogenic recirculation pumps for space launch vehicles
  • Awarded another option year for alternators and regulators to support the MK48 Mod 7 Heavyweight Torpedo program

BATAVIA, N.Y.–(BUSINESS WIRE)– Graham Corporation (NYSE: GHM) (“GHM” or “the Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer, and vacuum technologies for the defense, space, energy, and process industries, today announced that it was awarded three contracts with a combined value of over $65 million.

Matthew Malone, Vice President, Graham Corporation and General Manager – Barber-Nichols, commented, “We believe the investments we have made in our engineering and operations to expand our capacity and increase our capabilities to serve the defense and space industries led to our being awarded these contracts. We differentiated our solutions through our strong customer relationships, engineering expertise, precision manufacturing capabilities and rigorous testing and qualification processes. Our solutions are vital components that meet the high-level performance requirements for mission critical applications. We appreciate our customers’ confidence to select us for these high-value projects.”

The second option year award supporting the MK48 Mod 7 Heavyweight Torpedo program was received in the first quarter of fiscal 2025 which ended June 30, 2024. The Company will continue to provide alternators and regulators for this program. The contract award for the Company to provide the MK19 air turbine pump for the torpedo ejection system on the Columbia-class submarine was awarded in the second quarter of fiscal 2025 ending September 30, 2024. This is a new program for the Company and was won through a competitive bid process.

Also awarded in the second quarter was a contract to provide the cryogenic recirculation pump that provides thermal conditioning for upper stage engines on launch vehicles in space. The products for all three of these contracts will be manufactured at the Company’s Arvada, Colorado operations.

The revenue for the contracts to provide the second-stage cryogenic recirculation pump and to support the MK48 Mod 7 Heavyweight Torpedo program will be recognized over varied periods for the next three years while revenue for the MK19 program will be recognized over varied periods for the next eight years. The revenue from these awards had been considered in the Company’s outlook for fiscal 2025.

About Graham Corporation
Graham is a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries. Graham Corporation and its family of global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems. Graham Corporation routinely posts news and other important information on its website, grahamcorp.com, where additional information on Graham Corporation and its businesses can be found.

Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “believe,” “expects,” “potential,” “will,” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, winning potential future or multi-year orders, potential revenues and timing of such revenues, and delivering timely or otherwise on schedule are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors,” its quarterly reports on Form 10-Q, and other filings it makes with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.

Christopher J. Thome
Vice President – Finance and CFO
Phone: (585) 343-2216

Deborah K. Pawlowski
Kei Advisors LLC
Phone: (716) 843-3908
dpawlowski@keiadvisors.com

Source: Graham Corporation

Released August 5, 2024

Release – Ocugen, Inc. Announces FDA Approval of Expanded Access Program for Patients with Retinitis Pigmentosa

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on OCGN

MALVERN, Pa., Aug. 05, 2024 (GLOBE NEWSWIRE) — Ocugen, Inc. (“Ocugen” or the “Company”) (NASDAQ: OCGN), a biotechnology company focused on discovering, developing, and commercializing novel gene and cell therapies and vaccines, today announced that it has received notification from FDA to begin its expanded access program (EAP) for the treatment of adult patients, aged 18 and older, with retinitis pigmentosa (RP) with OCU400—a modifier gene therapy product candidate.

“Each clinical milestone achieved by OCU400 brings us closer to providing a potential one-time treatment for life to patients living with RP,” said Dr. Shankar Musunuri, Chairman, CEO, and Co-founder of Ocugen. “With positive Phase 1/2 study data and an ongoing Phase 3 liMeliGhT (pronounced “limelight”) clinical trial, we now plan to work with clinicians, patients, and the RP community to provide access to OCU400 for eligible patients through our EAP. The EAP strengthens our commitment to serving RP patients—300,000 in the U.S. and Europe and 1.6 million globally.”

EAP allows patients who have unmet medical needs with serious or life-threatening conditions to access treatments outside of a clinical trial that are not yet approved by the FDA.

The OCU400 EAP is available for patients with early, intermediate to advanced RP with at least minimal retinal preservation who may benefit from the mechanism of action of OCU400 prior to approval of the Biologics License Application (BLA). Ocugen is actively dosing patients in the Phase 3 liMeliGhT clinical trial.

“RP patients with mutations in multiple genes currently have no therapeutic options. As a retinal surgeon, I am encouraged by the therapeutic potential of OCU400 to provide long-term benefit,” said Lejla Vajzovic, MD, FASRS, Director, Duke Surgical Vitreoretinal Fellowship Program, Associate Professor of Ophthalmology with Tenure, Adult and Pediatric Vitreoretinal Surgery and Disease, Duke University Eye Center, and Retina Scientific Advisory Board Chair of Ocugen. “The OCU400 EAP gives RP patients access to this novel modifier gene therapy outside of the ongoing Phase 3 study.”

“We are pleased to make OCU400 available to patients beyond our Phase 3 liMeliGhT clinical trial through this EAP,” said Dr. Huma Qamar, Ocugen’s Chief Medical Officer. “We are excited to expand our enrollment to include patients representing a diverse array of RP gene mutations. This program reflects our ongoing commitment to develop a safe and effective therapy for RP patients who may not have other treatment options.”

Ocugen previously announced that OCU400 has received orphan drug and Regenerative Medicine Advanced Therapy (RMAT) designations from FDA and that the European Medicines Agency (EMA) accepted the U.S.-based trial for submission of a Marketing Authorization Application (MAA). With the dosing of patients in the Phase 3 clinical trial program underway, OCU400 remains on track for targeted BLA and MAA approval in 2026.

About OCU400 EAP
The OCU400 EAP is a U.S.-only protocol for (1) eligible adult RP patients, 18 years and older, with early, intermediate to advanced disease with at least minimal retinal preservation, (2) patients who participated in the OCU400 Phase 1/2 study and who qualify for dosing in the contralateral eye, (3) patients who failed to meet inclusion criteria in the Phase 1/2 trial and ongoing Phase 3 liMeliGhT clinical trial who could benefit from OCU400, and (4) RP patients who can benefit from the mechanism of action of OCU400 prior to BLA approval.

Additional information on the OCU400 EAP will be available on www.clinicaltrials.gov.

About OCU400 Phase 3 (liMeliGhT) for RP
The Phase 3 liMeliGhT clinical trial, with a duration of one year, will have a sample size of 150 participants. One arm will include 75 participants with RHO gene mutations, and the other arm will include 75 participants who have mutations in other genes. Within each arm, participants will be randomized 2:1 to the treatment group (2.5 x1010 vector genomes/eye of OCU400) and untreated control group, respectively. Patients eight years of age and older with early to late-stage RP are being recruited to participate in the liMeliGhT study.

About OCU400
OCU400 is the Company’s modifier gene therapy product based on a nuclear hormone receptor (NHR) gene called NR2E3. This gene regulates diverse physiological functions within the retina, such as photoreceptor development and maintenance, metabolism, phototransduction, inflammation, and cell survival. Retinal cells in RP patients have a dysfunctional gene network, and OCU400 resets this network to reestablish a healthy cellular homeostasis—which has the potential to improve vision in patients with RP.

About Modifier Gene Therapy
Modifier gene therapy is designed to fulfill unmet medical needs related to retinal diseases, including IRDs, such as RP, Leber congenital amaurosis (LCA) and Stargardt disease, as well as multifactorial diseases like dry age-related macular degeneration (dAMD). Our modifier gene therapy platform is based on the use of NHRs, master gene regulators, which have the potential to restore homeostasis — the basic biological processes in the retina. Unlike single-gene replacement therapies, which only target one genetic mutation, we believe that our modifier gene therapy platform, through its use of NHRs, represents a novel approach that has the potential to address multiple retinal diseases caused by mutations in multiple genes with one product, and to address complex diseases that are potentially caused by imbalances in multiple gene networks. Currently, Ocugen has three modifier gene therapy programs in the clinic: OCU400, OCU410, and OCU410ST. In addition to the OCU400 Phase 3 liMeliGhT clinical trial, the OCU410 Phase 1/2 ArMaDa clinical trial for geographic atrophy (GA) secondary to dAMD and the OCU410ST Phase 1/2 GARDian clinical trial for Stargardt disease are currently underway. GA affects approximately two to three million people in the U.S. and EU combined and Stargardt disease affects nearly 100,000 people in the U.S. and EU combined.

About Ocugen, Inc.
Ocugen, Inc. is a biotechnology company focused on discovering, developing, and commercializing novel gene and cell therapies and vaccines that improve health and offer hope for patients across the globe. We are making an impact on patients’ lives through courageous innovation—forging new scientific paths that harness our unique intellectual and human capital. Our breakthrough modifier gene therapy platform has the potential to treat multiple retinal diseases with a single product, and we are advancing research in infectious diseases to support public health and orthopedic diseases to address unmet medical needs. Discover more at www.ocugen.com and follow us on X and LinkedIn.

Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding qualitative assessments of available data, potential benefits, expectations for ongoing clinical trials, anticipated regulatory filings and anticipated development timelines, which are subject to risks and uncertainties. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks, and uncertainties that may cause actual events or results to differ materially from our current expectations, including, but not limited to, the risks that preliminary, interim and top-line clinical trial results may not be indicative of, and may differ from, final clinical data; that unfavorable new clinical trial data may emerge in ongoing clinical trials or through further analyses of existing clinical trial data; that earlier non-clinical and clinical data and testing of may not be predictive of the results or success of later clinical trials; and that that clinical trial data are subject to differing interpretations and assessments, including by regulatory authorities. These and other risks and uncertainties are more fully described in our periodic filings with the Securities and Exchange Commission (SEC), including the risk factors described in the section entitled “Risk Factors” in the quarterly and annual reports that we file with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we assume no obligation to update forward-looking statements contained in this press release whether as a result of new information, future events, or otherwise, after the date of this press release.

Contact:
Tiffany Hamilton
Head of Corporate Communications
Tiffany.Hamilton@ocugen.com

Haynes International (HAYN) – Tempering Expectations for the Remainder of FY 2024 and FY 2025

Posted on by cpereira@noblefcm.com


Monday, August 05, 2024

Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, nickel and cobalt-based high-performance alloys, primarily for use in the aerospace, industrial gas turbine and chemical processing industries.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Third quarter financial results. Haynes reported third-quarter fiscal 2024 net income of $8.1 million or $0.63 per share compared to $8.8 million or $0.68 per share during the prior year period. Adjusted EBITDA was $17.1 million compared to $18.7 million during the prior year period and declined as a percentage of net revenues. Third-quarter results were negatively impacted by raw material headwinds and lower mill production volumes due to fewer orders and company initiatives to reduce inventory.

Updating estimates. We have lowered our 2024 EBITDA and EPS estimates to $68.5 million and $2.52, respectively, from $77.3 million and $3.00. The revisions reflect third quarter financial results and management expectations that fourth quarter revenue and earnings will be like the third quarter due to the unfavorable impact of lower production volumes. Our 2025 EBITDA and EPS estimates were lowered to $90.5 million and $3.82, respectively, from $99.5 million and $4.15 to reflect lower revenue and margin expectations in 2025, particularly during the first half of the year.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Cumulus Media (CMLS) – Green Shoots Wither Amidst Economic Uncertainty

Posted on by cpereira@noblefcm.com


Monday, August 05, 2024

Cumulus Media (NASDAQ: CMLS) is an audio-first media company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. Cumulus Media engages listeners with high-quality local programming through 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Mixed Q2 results. The company reported revenue of $204.8 million, slightly lighter than our expectations of $206.2M. Due to cost cuts, adj. EBITDA was $25.2 million, finishing ahead of our estimates by $2.1M. Digital revenues advanced 5%, but was slower than the 7% in the first quarter. 

Lackluster pacing outlook. Management indicated that third quarter revenue pacing is disappointingly down low single digits, in spite of the anticipated influx of Political advertising. We believe that spot advertising is down mid single digits, with Network likely to be down double digits, similar to the second quarter. 


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

ACCO Brands (ACCO) – 2Q 2024: A Closer Look

Posted on by cpereira@noblefcm.com


Monday, August 05, 2024

ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Segment results. Americas revenue totaled $292.3 million in Q2, a decrease of 13.1% from the prior year period. Comparable sales were down 12.7%. International revenue was $146.0 million in Q2, a decrease of 7.1% from the prior period. Comparable sales decreased 5.1%. While revenue was modestly below our estimates, largely due to soft demand for business and consumer office products and a shift from lower margin products, we believe the Company’s outlook is favorable.

Cost reduction efforts. The company made significant progress towards its cost reduction target of $60 million in annualized savings, with $10 million in cost reductions realized so far this year, and $20 million of savings expected for full year 2024. Notably, the Company reduced inventory levels by 17% from the prior year with its technology enabled SKU rationalization.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Wall Street Panic Forces Powell’s Hand – Will He Cut Rates?

Posted on by slightbourne@noblecapitalmarkets.com

As of August 5, 2024, the Federal Reserve finds itself under increasing pressure to take more aggressive action on interest rates amid growing concerns about the U.S. economy and heightened market volatility. The recent sell-off on Wall Street, coupled with a disappointing July jobs report, has intensified calls for the central bank to accelerate its rate-cutting plans.

The latest employment data released by the Bureau of Labor Statistics showed the U.S. economy added only 114,000 nonfarm payroll jobs in July, falling short of the 175,000 expected by economists. Moreover, the unemployment rate climbed to 4.3%, its highest level since October 2021. These figures have reignited fears of an economic slowdown and potential recession.

In response to these developments, market expectations for Fed action have shifted dramatically. Traders are now pricing in more aggressive rate cuts, anticipating half-percentage-point reductions in both September and November, followed by an additional quarter-point cut in December. This marks a significant change from previous expectations of two quarter-point cuts for the remainder of 2024.

Some prominent voices on Wall Street are even calling for more immediate action. JPMorgan chief economist Michael Feroli suggests there is a “strong case to act before September,” indicating that the Fed may be “materially behind the curve.” Feroli expects a 50-basis-point cut at the September meeting, followed by another 50-basis-point reduction in November.

However, not all experts agree on the need for such aggressive measures. Wilmer Stith, bond portfolio manager for Wilmington Trust, believes an inter-meeting rate cut is unlikely, as it might further spook investors. Wells Fargo’s Brian Rehling echoes this sentiment, stating that while the situation could deteriorate rapidly, the Fed is not at the point of needing an emergency rate cut.

The pressure on the Fed comes just days after its most recent policy meeting, where Chair Jerome Powell and his colleagues decided to keep rates at a 23-year high. This decision has been questioned by some observers who believe the Fed should have acted sooner to get ahead of a slowing economy.

Powell, for his part, appeared dismissive of the idea of a 50-basis-point cut during last week’s press conference. However, he will have another opportunity to address monetary policy in about two weeks at the Fed’s annual symposium in Jackson Hole, Wyoming.

As market participants anxiously await further guidance, the debate over the appropriate pace and timing of rate cuts continues. Some strategists, like Baird’s Ross Mayfield, believe a 50-basis-point rate cut should be on the table for the September meeting.

The coming weeks will be crucial as policymakers digest incoming economic data and assess the need for more aggressive action. With three more Fed meetings scheduled for this year, there remains ample opportunity for the central bank to adjust its stance.

As the situation evolves, all eyes will be on economic indicators, Fed communications, and market reactions. The interplay between these factors will be critical in determining the trajectory of monetary policy and the broader economic outlook for the remainder of 2024 and beyond.

New Hope for Rare Disease Patients: FDA Panel Backs Zevra’s Drug

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– FDA advisory panel recommends approval of arimoclomol for Niemann-Pick disease type C (NPC).
– If approved, arimoclomol would be the first FDA-approved treatment for NPC in the US.
– Final FDA decision expected by September 21, 2024.

In a significant development for patients with a rare and devastating brain disease, an FDA advisory panel has recommended approving arimoclomol, a drug developed by Zevra Therapeutics. This decision marks a potential turning point in the treatment of Niemann-Pick disease type C (NPC), a condition that currently lacks FDA-approved therapies in the United States.

NPC is a serious genetic disorder that impairs the body’s ability to process and transport fats, leading to their accumulation in various organs, including the brain. This buildup causes progressive neurological damage, severely impacting patients’ quality of life. The disease is caused by mutations in either the NPC1 or NPC2 genes, which are responsible for producing proteins involved in cellular cholesterol transport.

Arimoclomol’s journey to potential approval has been marked by setbacks and perseverance. In 2021, the FDA initially rejected the drug, requesting additional evidence of its efficacy. However, under the new ownership of Zevra Therapeutics (formerly KemPharma), arimoclomol has found new life. The company submitted a reinforced New Drug Application (NDA) with additional long-term data, which seems to have addressed the FDA’s previous concerns.

The FDA’s Genetic Metabolic Diseases Advisory Committee (GeMDAC) voted 11 to 5 in favor of approving arimoclomol. This recommendation is based on a comprehensive review of clinical data, including results from a pivotal trial and a four-year open-label extension study. These studies demonstrated a decrease in the NPC Clinical Severity Scale (NPCCSS) score compared to placebo, indicating a meaningful clinical benefit for patients.

Arimoclomol works by inducing the heat shock response in cells, which helps to correct the protein misfolding that contributes to NPC. This novel approach has earned the drug several FDA designations, including orphan drug, fast track, breakthrough therapy, and rare pediatric disease status, underscoring its potential significance in treating this devastating condition.

If approved, arimoclomol would become the first FDA-approved treatment for NPC in the United States. Currently, US patients rely on off-label use of miglustat (Zavesca), which is approved for NPC in some European countries. The FDA’s final decision on arimoclomol is expected by September 21, 2024, the Prescription Drug User Fee Act (PDUFA) action date for the NDA.

The market implications of arimoclomol’s potential approval are substantial. GlobalData forecasts that the NPC drug market could reach $220 million by 2031 across the US, Germany, and the UK. This represents a significant opportunity for Zevra Therapeutics and, more importantly, a beacon of hope for NPC patients and their families.

Zevra’s CEO, Neil McFarlane, expressed confidence in arimoclomol’s clinical benefit and optimism about its path to approval. The company’s persistence in addressing the FDA’s initial concerns and providing robust long-term data has seemingly paid off, potentially bringing a much-needed treatment option to a patient population with limited choices.

This story underscores the complex and often challenging path of drug development for rare diseases. It highlights the importance of persistence and comprehensive clinical data in addressing regulatory concerns and ultimately bringing innovative treatments to patients in need. If approved, arimoclomol could significantly improve the lives of people with NPC, offering hope to a community that has long awaited an effective treatment option.

Silicon Valley Shockwave: Intel’s Historic Plunge Sends Ripples Through Global Tech Sector

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Intel’s stock experiences its worst drop in 50 years, falling to a decade-low price.
– The chipmaker reports significant losses and announces massive layoffs and restructuring.
– Global semiconductor stocks feel the impact, with Asian and European chip firms also declining.
– Intel’s struggles highlight the shifting dynamics in the AI-driven chip market.

In a seismic event that has sent shockwaves through the technology sector, Intel, once the undisputed king of chipmakers, experienced its most dramatic stock plunge in half a century. On Friday, August 2, 2024, Intel’s shares nosedived by a staggering 27%, marking the company’s second-worst trading day since its IPO in 1971. This unprecedented fall has not only erased billions from Intel’s market value but has also triggered a ripple effect across the global semiconductor industry.

The catalyst for this historic downturn was Intel’s dismal quarterly report, which revealed a swing from a $1.48 billion net income to a $1.61 billion net loss year-over-year. The company’s adjusted earnings per share of 2 cents fell drastically short of analysts’ expectations of 10 cents, while revenue also missed the mark. These disappointing figures have pushed Intel’s stock price down to $21.22, a level not seen since 2013, and have dropped its market capitalization below the $100 billion threshold.

In response to this financial turmoil, Intel CEO Pat Gelsinger announced a sweeping restructuring plan, describing it as “the most substantial restructuring of Intel since the memory microprocessor transition four decades ago.” The plan includes laying off more than 15% of the company’s workforce as part of a $10 billion cost-reduction strategy. Additionally, Intel has suspended its dividend payment for the fiscal fourth quarter of 2024 and significantly lowered its full-year capital expenditure forecast.

The repercussions of Intel’s downturn were felt far beyond Silicon Valley. Asian semiconductor giants such as Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung saw their stock prices tumble, with TSMC closing 4.6% lower and Samsung dropping more than 4%. The aftershocks continued into the European markets, affecting companies like ASML, STMicroelectronics, and Infineon.

Intel’s struggles highlight the rapidly changing landscape of the semiconductor industry, particularly in the face of the artificial intelligence revolution. The company’s decision to accelerate the production of AI-capable Core Ultra PC chips contributed to its losses, indicating the intense pressure to compete in the AI chip market. This shift in focus comes as Intel faces fierce competition from rivals like AMD, Qualcomm, and Nvidia, who have been quicker to capitalize on the AI boom.

Adding to the sector’s woes, reports emerged of a U.S. Department of Justice antitrust investigation into Nvidia, the current leader in AI chips. While Nvidia maintains that it “wins on merit,” this development underscores the heightened scrutiny and competitive tensions within the industry.

As the dust settles on this tumultuous day in tech history, the future of Intel and the broader semiconductor industry remains uncertain. The company’s massive restructuring effort and its push into AI-capable chips represent a high-stakes gamble to regain its former glory. However, with competitors like AMD and Nvidia making significant inroads in the AI chip market, Intel faces an uphill battle.

The coming months will be crucial for Intel as it implements its restructuring plan and attempts to navigate the rapidly evolving tech landscape. For investors and industry watchers alike, Intel’s journey serves as a stark reminder of the volatile nature of the tech sector and the relentless pace of innovation that can make even the mightiest giants vulnerable to disruption.

As the global chip industry grapples with these developments, one thing is clear: the battle for supremacy in the AI-driven semiconductor market is far from over, and the outcome will shape the future of technology for years to come.

Release – ACCO Brands Reports Second Quarter Results

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on ACCO

  • Reported net sales of $438 million, with gross margin expanding 150 basis points
  • On track to deliver over $20 million in cost savings in 2024 from multi-year cost savings program
  • Net operating cash flow improved $42 million; Anticipate free cash flow of approximately $130 million for full year 2024
  • Consolidated leverage ratio of 3.7x at quarter-end; Net debt position decreased $130 million
  • Loss per share of ($1.29) includes impairment charges; adjusted EPS of $0.37, above the Company’s outlook

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today reported financial results for its second quarter and first six-months ended June 30, 2024.

“Our prudent approach to cost management, as well as strategic improvements in our infrastructure and operational efficiencies delivered strong bottom-line results and improved cash flow and we achieved a lower leverage ratio this quarter. We’ve made significant headway with our multi-year $60 million cost reduction program and are on track to achieve more than $20 million in savings this year. While demand headwinds in certain markets persist, we expect to see a moderation in sales declines across many categories. Additionally, the second quarter was also impacted by our previously communicated exit of lower margin business primarily in our back-to-school categories. The impact of the exits will lessen throughout the remainder of 2024. With the softer than anticipated sales, we are reviewing our cost structure for additional cost reduction opportunities,” stated ACCO Brands’ President and Chief Executive Officer, Tom Tedford.

“Our results reflect an improved cost structure, better service and strengthened relationships with key customers. Over the past two years, our unwavering commitment to debt reduction has significantly improved our financial position, which will allow greater flexibility with our capital allocation priorities. We are operating effectively in a challenging environment and are actively investing in new product development while refining our strategy to enhance business performance,” concluded Mr. Tedford.

Second Quarter Results

Net sales were $438.3 million down 11.2 percent from $493.6 million in 2023. Adverse foreign exchange reduced sales by $4.7 million, or 1.0 percent. Comparable sales decreased 10.2 percent. Both reported and comparable sales declines reflect softer global business and consumer demand for our office products and gaming accessories, and our exit of lower margin business, which accounted for approximately 4.0 percent of the decline. These declines were partially offset by growth in computer accessories.

Operating loss was $111.2 million versus operating income of $55.2 million in 2023 primarily due to non-cash impairment charges of $165.2 million related to goodwill and intangible assets, within the Americas segment. Adjusted operating income was $64.6 million down from $66.2 million in 2023. Both reported and adjusted operating income declines reflect lower sales volume, which were partially offset by moderating product costs, improved product mix and the impact of SG&A cost reduction initiatives and lower incentive compensation expense.

Net loss was $125.2 million, or $(1.29) per share, compared with prior-year net income of $26.4 million, or $0.27 per share, in 2023. The net loss is primarily due to the non-cash charges of $165.2 million related to goodwill and intangible assets. Adjusted net income was $36.6 million compared with $36.5 million in 2023, and adjusted earnings per share of $0.37 per share, compared to $0.38 in the prior year.

Business Segment Results

ACCO Brands Americas – Second quarter segment net sales of $292.3 million decreased 13.1 percent from $336.4 million in the prior year, and comparable sales declined 12.7 percent. Both reported and comparable sales decreases reflect softer business and consumer demand for our office products and gaming accessories, and our exit of lower margin business, which accounted for approximately 5.0 percent of the decline. These declines were partially offset by growth in computer accessories.

Second quarter operating loss was $108.7 million versus operating income of $60.4 million a year earlier, primarily due to the non-cash charges of $165.2 million related to goodwill and intangible assets. Adjusted operating income was $63.2 million, down from $66.8 million in the prior year. Both reported and adjusted operating income declines reflect lower sales volume, partly offset by moderating product costs, improved product mix and lower SG&A expense due to cost reduction initiatives and lower incentive compensation.

ACCO Brands International – Second quarter segment net sales of $146.0 million decreased 7.1 percent from $157.2 million in the prior year. Adverse foreign exchange reduced sales by 2.0 percent. Comparable sales were $149.2 million, down 5.1 percent versus the prior year. Both reported and comparable sales decreases reflect reduced business and consumer demand for our office products, partially offset by the benefit of price increases and growth in computer accessories.

Second quarter operating income was $7.8 million, an increase from $7.1 million in the prior year, with adjusted operating income of $11.7 million, flat with the prior year. This reflects moderating product costs and the cumulative benefit of pricing and cost actions offsetting the impact of lower sales volume.

Six Month Results

Net sales were $797.2 million down 11.0 percent from $896.2 million in 2023. Adverse foreign exchange reduced sales by $3.0 million, or 0.3 percent. Comparable sales decreased 10.7 percent. Both reported and comparable sales declines reflect softer global business and consumer demand for our office products and technology accessories, and our exit of lower margin business, which accounted for approximately 3.0 percent of the decline.

Operating loss was $105.3 million versus operating income of $65.3 million in 2023, primarily due to non-cash impairment charges of $165.2 million related to goodwill and intangible assets within the Americas segment. Adjusted operating income was $80.8 million, down from $90.5 million in 2023. Both reported and adjusted operating income (loss) declines reflect lower sales volume, partially offset by moderating product costs and the cumulative effect of cost reduction initiatives and lower incentive compensation expense resulting in lower SG&A expense.

Net loss was $131.5 million, or $(1.37) per share, compared with a net income of $22.7 million, or $0.23 per share, in 2023, primarily due to the non-cash impairment charges of $165.2 million related to goodwill and intangible assets. Adjusted net income was $39.2 million compared with $45.0 million in 2023, and adjusted earnings per share were $0.40 per share compared with $0.47 per share in 2023.

Capital Allocation and Dividend

Year to date, the Company significantly improved its operating cash flow to $2.6 million versus a cash outflow of $39.3 million in the prior year, driven primarily by working capital. The Company’s consolidated leverage ratio as of June 30, 2024, was 3.7x, versus 4.3x at the end of the prior year second quarter.

On July 26, 2024, ACCO Brands announced that its board of directors declared a regular quarterly cash dividend of $0.075 per share. The dividend will be paid on September 4, 2024, to stockholders of record at the close of business on August 16, 2024.

Full Year 2024 and Third Quarter Outlook

The Company is updating its full year 2024 outlook and providing a third quarter outlook. For the full year the Company now expects reported sales to be down in the range of 8.0% to 9.0%. Full year adjusted EPS is expected to be within a range of $1.04 to $1.09. The Company expects 2024 free cash flow of approximately $130 million with a year-end consolidated leverage ratio of approximately 3.0x to 3.2x.

In the third quarter, the Company expects reported sales to be down in the range of 5.0% to 7.0%, and adjusted EPS within a range of $0.21 to $0.24.

Webcast

At 8:30 a.m. ET on August 2, 2024, ACCO Brands Corporation will host a conference call to discuss the Company’s second quarter 2024 results. The call will be broadcast live via webcast. The webcast can be accessed through the Investor Relations section of www.accobrands.com . The webcast will be in listen-only mode and will be available for replay following the event.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, and play. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com .

Non-GAAP Financial Measures

In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this earnings release to aid investors in understanding the Company’s performance. Each non-GAAP financial measure is defined and reconciled to its most directly comparable GAAP financial measure in the “About Non-GAAP Financial Measures” section of this earnings release.

Forward-Looking Statements

Statements contained herein, other than statements of historical fact, particularly those anticipating future financial performance, business prospects, growth, strategies, business operations and similar matters, results of operations, liquidity and financial condition, and those relating to cost reductions and anticipated pre-tax savings and restructuring costs are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management based on information available to us at the time such statements are made. These statements, which are generally identifiable by the use of the words “will,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “forecast,” “project,” “plan,” and similar expressions, are subject to certain risks and uncertainties, are made as of the date hereof, and we undertake no duty or obligation to update them. Forward-looking statements are subject to the occurrence of events outside the Company’s control and actual results and the timing of events may differ materially from those suggested or implied by such forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. Investors and others are cautioned not to place undue reliance on forward-looking statements when deciding whether to buy, sell or hold the Company’s securities.

Our outlook is based on certain assumptions which we believe to be reasonable under the circumstances. These include, without limitation, assumptions regarding the impact of inflation and global geopolitical and economic uncertainties and fluctuations in foreign currency exchange rates; and the other factors described below.

Among the factors that could cause our actual results to differ materially from our forward-looking statements are: a limited number of large customers account for a significant percentage of our sales; sales of our products are affected by general economic and business conditions globally and in the countries in which we operate; risks associated with foreign currency exchange rate fluctuations; challenges related to the highly competitive business environment in which we operate; our ability to develop and market innovative products that meet consumer demands and to expand into new and adjacent product categories that are experiencing higher growth rates; the long-term impacts of the COVID-19 pandemic; our ability to successfully expand our business in emerging markets and the exposure to greater financial, operational, regulatory, compliance and other risks in such markets; the continued decline in the use of certain of our products; risks associated with seasonality; the sufficiency of investment returns on pension assets, risks related to actuarial assumptions, changes in government regulations and changes in the unfunded liabilities of a multi-employer pension plan; any impairment of our intangible assets; our ability to secure, protect and maintain our intellectual property rights, and our ability to license rights from major gaming console makers and video game publishers to support our gaming accessories business; our ability to successfully execute our multi-year restructuring and cost savings program and realize the anticipated benefits; continued disruptions in the global supply chain; risks associated with inflation and other changes in the cost or availability of raw materials, transportation, labor, and other necessary supplies and services and the cost of finished goods; risks associated with outsourcing production of certain of our products, information technology systems and other administrative functions; the failure, inadequacy or interruption of our information technology systems or its supporting infrastructure; risks associated with a cybersecurity incident or information security breach, including that related to a disclosure of personally identifiable information; our ability to grow profitably through acquisitions, and successfully integrate them; risks associated with our indebtedness, including limitations imposed by restrictive covenants, our debt service obligations, and our ability to comply with financial ratios and tests; a change in or discontinuance of our stock repurchase program or the payment of dividends; product liability claims, recalls or regulatory actions; the impact of litigation or other legal proceedings; the impact of additional tax liabilities stemming from our global operations and changes in tax laws, regulations and tax rates; our failure to comply with applicable laws, rules and regulations and self-regulatory requirements, the costs of compliance and the impact of changes in such laws; our ability to attract and retain qualified personnel; the volatility of our stock price; risks associated with circumstances outside our control, including those caused by telecommunication failures, labor strikes, power and/or water shortages, public health crises, such as the occurrence of contagious diseases, severe weather events, war, terrorism and other geopolitical incidents; and other risks and uncertainties described in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, and in other reports we file with the Securities and Exchange Commission.

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Release – Commercial Vehicle Group Announces Sale of Cab Structures Business

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on CVGI

Divestiture streamlines CVG’s focus
Important milestone in ongoing long-term growth strategy

NEW ALBANY, Ohio, Aug. 01, 2024 (GLOBE NEWSWIRE) — Commercial Vehicle Group (the “Company” or “CVG”) (NASDAQ: CVGI), a diversified industrial products and services company, today announced it reached an agreement to sell its Cab Structures business with operations in Kings Mountain, North Carolina to a Volvo Group company, effective July 31, 2024. The net proceeds of the transaction are expected to be $40 million, with closure expected in the second half of 2024. The Company expects the majority of proceeds to be used for debt paydown and other general corporate purposes.

The Cab Structures business primarily serves the Class 8 truck market. This transaction continues a trend of heavy truck OEMs insourcing their cab structure production in recent years.

James Ray, CVG President and Chief Executive Officer, said, “The strategic sale of our Cab Structures business marks another milestone on our journey to evolve our business towards higher-growth products and markets, in line with our ongoing strategic transformation plan, while simultaneously generating shareholder value. The sale of our Cab Structures business reduces our exposure to the cyclical Class 8 market, lowers our customer concentration, removes complexity from our business, and improves our return profile.”

About 230 CVG employees are expected to become employees of Volvo, as part of the transaction.

“We are very happy to see this plant in good hands,” said Mr. Ray. “Volvo brings proven operating experience. Kings Mountain employees will benefit from continuity of the plant’s operations and will have the unique opportunity to work for the OEM.”

Mr. Ray concluded, “This transaction also lowers our future capital investment needs and provides the opportunity to invest in high-growth opportunities moving forward. We will continue to closely review additional opportunities for value creation.”

CVG expects to update its full-year 2024 outlook to reflect the impact of the Cab Structures business divestiture in its second quarter 2024 earnings release expected to be released on August 5, 2024.

Company Contact
Andy Cheung
Chief Financial Officer
CVG
IR@cvgrp.com 

Investor Relations Contact
Ross Collins or Stephen Poe
Alpha IR Group
CVGI@alpha-ir.com 

About CVG

At CVG, we deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries and communities we serve. Information about the Company and its products is available on the internet at www.cvgrp.com.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “continue”, “likely”, and similar expressions. In particular, this press release may contain forward-looking statements about the Company’s expectations for future periods with respect to its plans to improve financial results, the future of the Company’s end markets, changes in the Class 8 and Class 5-7 North America truck build rates, performance of the global construction equipment business, the Company’s prospects in the wire harness, warehouse automation and electric vehicle markets, the Company’s initiatives to address customer needs, organic growth, the Company’s strategic plans and plans to focus on certain segments, competition faced by the Company, volatility in and disruption to the global economic environment and the Company’s financial position or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including those included in the Company’s filings with the SEC. There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.

Source: Commercial Vehicle Group, Inc.

DLH Holdings (DLHC) – A Transitionary Quarter

Posted on by slightbourne@noblecapitalmarkets.com


Friday, August 02, 2024

DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Environment. The government continues to delay its decision making process on various contract awards, as management notes that although decisions do take time, they have been abnormally long in 2024. Coinciding with this is the VA’s decision on its CMOP locations, which provides a good and bad aspect for DLH. The good is a likely extension of DLH’s ID/IQ contract with the VA, but the bad is that the VA is reducing responsibilities within the awards, not allowing the Company to differentiate from its competitors.

Expanding Markets. As the government delays its decisions, management is focused on its three markets in digital transformation & cyber security, science research & development, and systems & engineering & integration. These markets have had growth to their budget in recent years and we believe they provide DLH with future opportunities to expand its pipeline and add to its total proposals outstanding, a focus of management.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Haynes International (HAYN) – Third Quarter Negatively Impacted by Lower Production and Raw Material Headwinds

Posted on by cpereira@noblefcm.com


Friday, August 02, 2024

Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, nickel and cobalt-based high-performance alloys, primarily for use in the aerospace, industrial gas turbine and chemical processing industries.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Third quarter financial results. Haynes reported third-quarter fiscal 2024 net income of $8.1 million or $0.63 per share compared to $8.8 million or $0.68 per share during the prior year period. Adjusted EBITDA was $17.1 million compared to $18.7 million during the prior year period and declined as a percentage of net revenues. Third-quarter results were negatively impacted by raw material headwinds and lower mill production volumes due to fewer orders and company initiatives to reduce inventory. Strong operating cash flow of $52.5 million supported reducing the balance of the company’s credit facility by $24.2 million during the first nine months of fiscal 2024.

Merger Update. With respect to Haynes’ proposed merger with North American Stainless, Inc., a wholly owned subsidiary of Acerinox S.A., required approvals in the United States have been obtained. Following favorable decisions by European countries reviewing the transaction from a foreign direct investment (FDI) perspective, the company expects to obtain remaining required clearances from the U.K. and Austria in time for a fourth calendar quarter 2024 transaction close.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.