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09 Nov 17. An industry-wide decline in pricing for industrial broadband and satellite telecoms seems to have missed Inmarsat (ISAT). The company’s share price has suffered badly in the last few months due to rising competition and poor results from European peers, but sales held their own in the nine months to September 2017. Demand for in-flight internet sent the group’s aviation revenues up by 50 per cent to $54m ($41m). Enterprise is back on the rise and even the beleaguered maritime division managed to report flat revenue of $143m. The bottom line makes for less pleasant reading. Exorbitant spending – which management estimates will be $500m to $600m this year and next – means adjusted cash profit fell 7 per cent to $191m in the quarter.
Amid the competitive pressures of the industry, Inmarsat’s heavy investment has allowed it to keep attracting new business. We think investors have been too hard on the shares, particularly now that the company is priced for a potential takeover. Buy at 517p.
Last IC View: Buy, 753p, 4 Aug 2017
(Source: Investors Chronicle)
09 Nov 17. Will Rolls-Royce Holding PLC soar higher than BAE Systems plc, GKN plc and Cobham plc after trading update?
Rolls-Royce Holding PLC (LON:RR) (RR.L) has released a trading update today which shows it is on target to meet its full year guidance.
The company has continued to make steady progress in H2. In its Civil Aerospace division, it has continued to achieve its key targets for customer deliveries while managing the in-service issues that have presented themselves.
In Defence Aerospace and Power Systems, performance has also been satisfactory, although the company’s Marine division is still being impacted by weak demand for products and services for the offshore oil and gas market.
Beyond the current year, Rolls-Royce seems to be making good progress from an operational perspective according to today’s update. It is ramping up production, bringing new large civil engines to market, as well as enhancing further its aftermarket capabilities across all of its businesses.
The company is also making progress in reducing unit cash costs on original equipment sales of large civil engines. Although there is ongoing weakness in offshore oil and gas markets for Marine and timing changes to new export orders for Defence Aerospace, markets for its Power Systems products continue to improve.
In the last year the Rolls-Royce share price has risen 25%. That’s a better performance than other aerospace and defence stocks such as BAE Systems plc (LON:BA) (BA.L), GKN plc (LON:GKN) (GKN.L) and Cobham plc (LON:COB) (COB.L). BAE Systems has fallen 2%, GKN has gained 7% and Cobham has dropped 13% during the same time period.
In my view, Rolls-Royce is moving in the right direction. Although some of its markets are proving to be challenging and there is still some way to go with its turnaround plan, I feel it is making good overall progress. Within a sector that I’m bullish on, it’s one of my top picks for the long term. Therefore, I’m optimistic about its future investment performance. (Source: Google/Investomania)
08 Nov 17. PrismTech™, a global leader in software platforms for distributed systems, is now ADLINK’s IoT Solutions and Technology (IST) group. Built on the strengths of PrismTech’s industry-leading data connectivity platforms and ADLINK’s first-in-class infrastructure product lines, ADLINK IST combines a full range of IoT domain expertise to drive business value through high-performance distributed systems.
“We had envisioned this integration of domain expertise from the start and are now in a position to define new business models and drive new business value for our customers,” said Rob