Primo Brands (PRMB) and FTAI Aviation (FTAI)
Primo Brands (PRMB) reported after the close yesterday with results that beat on the top line and missed on the bottom line. Revenue grew by 219% to $1.4 billion (growth reflects merger with BlueTriton Brands) while EPS improved to $0.13 from $0.12 cents. Investors are likely focused on management’s commentary about higher synergy targets (+50% to $300 million) that will be captured in two years instead of the previous guidance of three years. The cadence is expected to be $200 million in synergies this year and $100 million in 2026. Management also guided for revenue growth of 3% to 5% and adjusted EBITDA of roughly $1.62 billion. The sales growth guidance is likely conservative as was the typical pattern of Primo management prior to the merger. Overall, a good report and sticking with Primo. I expect the stock to continue to grind higher. BUY
Today FTAI Aviation (FTAI) stock jumped over 10% after the company said the audit committee of its board completed a review and determined the claims made by the short-seller in January were without merit. The company expects to file its 10-K report on time as well as report Q4 2024 results on February 26. This is a welcome relief. Looking for follow-through strength in the stock. HOLD HALF
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