Stock Markets
Starbucks loses appeal over union election at Seattle store
By Daniel Wiessner
(Reuters) – A U.S. appeals court on Wednesday rejected Starbucks (NASDAQ:)’ claims that an election won by a union at the coffee company’s flagship Seattle store was invalid because it was held via mail ballot during the COVID-19 pandemic.
A three-judge 9th U.S. Circuit Court of Appeals panel upheld a National Labor Relations Board decision that said the company, which is facing a nationwide union organizing campaign, must recognize and bargain with the store’s union, which represents nearly 100 workers.
Starbucks claimed that a labor board official who ordered the mail-ballot election in March 2022 used the wrong data to determine that an in-person election was unsafe because there was an upward trend in COVID cases in the Seattle area at the time. Workers at the store voted 38-27 to unionize.
The 9th Circuit on Wednesday disagreed, finding that the official correctly applied a test the board adopted in 2020 for determining when a mail-ballot election was appropriate because of the pandemic.
Starbucks and Workers United, the union organizing the company’s stores, did not immediately respond to requests for comment.
During the pandemic, most union elections were held via mail ballot, and the labor board is still ordering elections by mail in some cases.
Business groups and Republican lawmakers have criticized the labor board for continuing to shun in-person elections even as the pandemic subsided. They claim mail-ballot elections lower voter participation and jeopardize workers’ rights to choose whether to be represented by a union.
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In a 2020 decision involving hospital operator Aspirus, the labor board said that, among other factors, regional directors should look at the 14-day trend in local COVID cases in deciding how to administer a union election.
In Wednesday’s case, Starbucks claimed that meant looking at the average rate of new cases each day over a 14-day period, and not the number of cases reported 14 days apart as the regional director had done.
But the 9th Circuit in its decision noted that the labor board had not defined what a 14-day trend was or laid out a specific method for calculating it.
“Even if we credit Starbucks’s approach … our standard of review does not permit us to displace the NLRB’s choice between two fairly conflicting views,” Circuit Judge M. Margaret McKeown wrote for the court.
Workers at more than 420 of Starbucks’ 9,000 U.S. stores have voted to unionize since 2021. The 9th Circuit case is one of several involving the organizing campaign to reach federal appeals courts.
On Monday, Goldman Sachs reaffirmed its Buy rating on Mattel Inc . (NASDAQ: NASDAQ:) with a steady price target of $22.00. The decision followed a review of the company’s recent presentation, which conveyed a positive outlook on consumer and retail demand as the year progresses.
Mattel’s management highlighted the company’s readiness to cater to value-seeking consumers, particularly those at the lower end of the market, through a variety of well-regarded brands.
The toy manufacturer’s strategic positioning was emphasized, with management confident in their product range’s appeal to budget-conscious customers.
This approach aligns with observed consumer trends, as shoppers increasingly look for value in their purchases. Mattel’s diverse portfolio, featuring recognizable and respected brands, is seen as a key advantage in attracting and retaining such customers.
In addition to its market strategy, Mattel confirmed that it is on track to meet its previously stated financial goals and targets. The company has reiterated its commitment to achieving comparable year-over-year top-line growth. This reiteration of financial guidance suggests a stable outlook for Mattel’s performance and underlines the company’s expectations for sustained progress.
The analyst’s commentary provided insight into the company’s operational focus and market strategy. Mattel’s emphasis on well-known brands and high-quality offerings is designed to resonate with consumers who prioritize value. This focus is particularly pertinent given the current economic climate, where cost-conscious behavior is prevalent among consumers.
Goldman Sachs’ reiteration of the Buy rating and price target reflects confidence in Mattel’s strategic direction and its ability to navigate the market effectively. The company’s management appears to be proactive in addressing consumer trends and maintaining a robust financial trajectory as it heads into the latter half of the year.
In other recent news, Mattel Inc. has seen a series of significant developments. The toy manufacturer recently appointed Sai Koorapati as its new Senior Vice President and Chief Technology Officer.
Koorapati, who brings over two decades of technology leadership experience, will oversee the company’s technological advancements and online security initiatives.
In terms of financial performance, Mattel reported mixed results for Q2 2024. While the company experienced a slight 1% decrease in net sales, it noted an increase in its adjusted gross margin to 49.2%, along with improvements in both adjusted EBITDA and EPS.
Despite a decrease in gross billings, Mattel saw growth in the APAC region and maintained its global market share, particularly in key product categories.
Mattel also provided its outlook for 2024, anticipating comparable net sales and an adjusted gross margin between 48.5% and 49%. The company expects adjusted EBITDA to be between $975 million and $1.025 billion, along with double-digit growth in adjusted EPS.
Despite anticipating a modest industry decline in 2024, Mattel remains focused on expanding its entertainment offerings and leveraging its intellectual property for long-term growth.
InvestingPro Insights
As Goldman Sachs maintains a bullish stance on Mattel Inc. (NASDAQ: MAT), real-time data and insights from InvestingPro further illustrate the company’s financial health and market positioning. A standout aspect of Mattel’s financial profile is its perfect Piotroski Score of 9, indicating high financial strength, which could reassure investors about the company’s robustness amidst market uncertainties. Additionally, Mattel’s management has demonstrated confidence in the company’s value by engaging in aggressive share buybacks, a move that often signals a belief in underpriced stock and a commitment to enhancing shareholder value.
The company’s forward-looking metrics are equally compelling, with a low Price-to-Earnings (P/E) ratio of 20.32, which drops to an adjusted 19.05 when looking ahead to the last twelve months as of Q2 2024. This is coupled with a PEG Ratio of just 0.47 during the same period, suggesting that Mattel’s earnings growth may not be fully reflected in its current stock price. Furthermore, with liquid assets surpassing short-term obligations, Mattel exhibits a solid liquidity position that could help navigate any near-term market volatility.
InvestingPro Tips highlight that Mattel is expected to be profitable this year, with net income predicted to grow. This aligns with the company’s strategic focus on delivering value to cost-conscious consumers through its diverse product range. For readers interested in a more granular analysis, InvestingPro offers additional tips on Mattel, providing deeper insights into the company’s performance and prospects.
For those looking to explore Mattel’s potential further, there are a total of 9 additional InvestingPro Tips available, which can be found at https://www.investing.com/pro/MAT. These tips offer a more comprehensive understanding of the company’s financial nuances and market strategy, complementing the positive outlook shared by Goldman Sachs.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
In a remarkable display of market resilience, VEON Ltd. (NASDAQ: NASDAQ:), a leading global provider of connectivity and internet services, has reached a new 52-week high, with its stock price peaking at $28.49. This milestone underscores a period of robust growth for the company, which has seen its stock value surge by an impressive 69.25% over the past year. Investors have shown increased confidence in VEON’s strategic initiatives and operational advancements, propelling the stock to levels not seen in the previous year and signaling a strong outlook for the company’s future performance.
In other recent news, VEON Ltd. has reported strong growth and a healthy liquidity position for Q2 2024. The company’s U.S. dollar revenues and Group EBITDA have seen substantial growth, with increases of 12.1% and 10.6% respectively. This growth is attributed to VEON’s digital strategy and the expansion of its 4G network, which has led to a significant increase in digital revenue streams, now accounting for 10% of total revenues in H1 2024.
The company’s operations in Ukraine, Pakistan, Kazakhstan, and Bangladesh have all reported growth, and VEON’s liquidity remains strong with a cash reserve of $722 million. However, the company experienced a cyber-attack in Ukraine and network disruptions in Bangladesh, impacting revenue and EBITDA. Despite these setbacks, VEON anticipates continued revenue growth of 16-18% and EBITDA growth of 18-20% for the full year of 2024.
The company is also focusing on repaying its 2025 debt maturities. These recent developments indicate that VEON is effectively navigating market challenges while capitalizing on growth opportunities, particularly in digital services and network expansion.
InvestingPro Insights
In tandem with VEON Ltd.’s (NASDAQ: VEON) recent surge to a new 52-week high, InvestingPro data reflects a company that has experienced considerable revenue growth and profitability. Over the last twelve months as of Q2 2024, VEON has reported a revenue growth of 6.53%, with its gross profit margin reaching an impressive 99.66%. Additionally, VEON has demonstrated a strong operating income margin of 25.03% in the same period, reflecting its operational efficiency. The company’s stock has indeed been trading near its 52-week high, with the price at 98.31% of this peak level.
InvestingPro Tips provide further context to VEON’s financial health, indicating that despite some volatility in stock price movements, analysts predict the company will be profitable this year. This is supported by the company’s performance over the last year, with a price total return of 62.81%. However, it’s worth noting for potential investors that VEON does not pay a dividend to shareholders, which may influence investment strategies depending on individual preferences for income-generating assets.
For those looking to delve deeper into VEON’s financials and future prospects, InvestingPro offers additional tips and a comprehensive analysis, which can be found on their platform. As of now, there are seven more InvestingPro Tips available that can help investors make more informed decisions about VEON.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
By Simon Lewis and Humeyra Pamuk
WASHINGTON (Reuters) – The United States on Monday called on Israel to complete a full inquiry into the killing of an American Turkish woman last week in the Israeli-occupied West Bank, saying it believes Israel has begun such a probe.
Turkish and Palestinian officials said on Friday that Israeli troops shot 26-year-old Aysenur Ezgi Eygi who had been taking part in a protest against settlement expansion.
“Our understanding is that our partners in Israel are looking into the circumstances of what happened, and we expect them to make their findings public, and expect that whatever those findings are, expect them to be thorough and transparent,” U.S. State Department deputy spokesperson Vedant Patel told a news briefing.
Palestinian news agency WAFA said the incident took place during a regular protest march by activists in Beita, a village near Nablus that has seen repeated attacks on Palestinians by Jewish settlers.
Israel’s military said it was looking into reports that a female foreign national “was killed as a result of shots fired in the area. The details of the incident and the circumstances in which she was hit are under review.”
Patel did not provide further information on the circumstances of the killing.
Turkey’s President Tayyip Erdogan condemned Eygi’s death, saying in a post on social media that Turkey “will continue to work in every platform to halt Israel’s policy of occupation and genocide”. Israel denies its actions in occupied Palestinian territories amount to genocide.
A rise in violent attacks by Israeli settlers on Palestinians in the West Bank has stirred anger among Western allies of Israel, including the United States, which has imposed sanctions on some Israelis involved in the settler movement.
Since the 1967 Middle East war, Israel has occupied the West Bank of the Jordan River, which Palestinians want as the core of an independent state. Israel has built settlements there that most countries deem illegal, which Israel disputes citing historical and biblical ties to the land.
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