- SPX Technologies Inc (NYSE:SPXC) disclosed completing the acquisition of ASPEQ Heating Group for $418 million in cash.
- Post completion, ASPEQ became a part of SPX Technologies’ HVAC Heating platform within its electrical heating business.
- Management expects ASPEQ to witness annual revenue of about $120 million, with higher-than-company-average sales growth and margins.
- 2023 Guidance Raised: The company increased the adjusted EPS outlook to $3.90-$4.05 (+28% Y/Y) from $3.80-$3.95 earlier, vs consensus of $3.90.
- SPXC now projects revenue of $1.68 billion-$1.72 billion (vs. $1.61 billion-$1.65 billion prior and consensus: $1.62 billion) and an adjusted operating income margin of 15.00%- 15.75% (vs. 14.50%-15.25% earlier).
- The higher guidance reflects a partial year of ownership of ASPEQ and the impact of financing costs related to the transaction.
- Gene Lowe, President and CEO, stated, “This transaction more than doubles SPX Technologies’ position in electrical heating and expands our value-creation opportunities in highly complementary and attractive industrial and commercial end markets. We see significant long-term growth potential for our combined businesses, as well as nearer-term benefits from favorable secular trends such as electrification, decarbonization, and reshoring.”
- Last month, the company reported Q1 2023 revenues of $399.8 million, beating the consensus of $331.0 million and adjusted EPS of $0.93, exceeding the consensus of $0.60.
- SPXC held $212.7 million in cash and cash equivalents as of Apr 1, 2023.
- Price Action: SPXC shares are trading lower by 1.02% at $81.26 premarket on the last check Monday.
Citigroup Navigates Tough Quarter with Revenue Dip, Plans Major Job Cuts
Citigroup Inc. (NYSE: C) faced a challenging fourth quarter in FY23, with its revenue declining by 3% year-over-year to $17.44 billion, falling short of the expected $18.74 billion. However, the company surpassed EPS estimates with $0.84, beating the consensus of $0.81.
