Shreyas Tonse

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Boeing Logo
BA $117
  • made a price estimate 2/20/13
  • tags: BA
  •  Boeing's Share of Global Commercial Aircraft Deliveries
     Commercial Airplanes EBITDA Margin
      [ less... ]
     Boeing's Share of Global Commercial Aircraft Deliveries
     Commercial Airplanes EBITDA Margin
     
    BA Logo
    Boeing: How The 787 Grounding Could Affect Its Prospects
  • By , 2/4/13
  • tags: BA GE ERJ UTX
  • Submitted by Shreyas Tonse as part of our contributors program . The Boeing 787 Dreamliner, crown jewel of Boeing’s assortment, has recently seen a lot of turbulent times with several airlines grounding their Dreamliner fleet. This move has been prompted by repeated operational problems faced in the first year of service of the airplane which Boeing claimed as being the company’s most fuel efficient airliner. Investigators are still unable to clearly pinpoint the root cause of the electrical problems triggered by the lithium ion batteries used in the airplane that have led to 2 separate incidents over the past month. Several operators have grounded their 787 fleet. Carriers such as All Nippon Airways, Japan Airlines, Ethiopian Airlines, Air India, Qatar Airways, United Airlines had the Dreamliner in service when the incidents were reported. Some of these and others had placed orders with Boeing for the Dreamliner in order to expand their fleet. Boeing had issued an optimistic revenue forecast on 30th January 2013 for the year based on the assumption that there would not be any significant financial impacts of the regulators’ grounding of its 787 fleet. Possible Effects of the Grounding For the carriers that currently have the 787 in service, or those planning to induct these into their fleet, this issue has created a burgeoning problem. While some of them are already losing out on revenues, others such as Scoot Pte, the budget carrier owned by Singapore airlines has categorically commented that their growth hinges on the delivery of the Dreamliners. If Boeing cannot fix the problem soon and is not able to get the nod from the regulators, it is likely that these carriers would lose patience and ask for replacements, in turn putting pressure on the company to deliver under tight timelines. All Nippon (ANA) is already negotiating with Boeing to push them higher on the waitlist of deliveries of its 777 planes. Of the total 848 orders made thus far, some of the carriers would renegotiate and opt for other planes or might even consider shifting over to Airbus. Through December 2012, Boeing was able to deliver 49 of these orders. It is also likely that if the extended grounding continues, carriers would ask Boeing for compensation, further denting the bottom line for Boeing. As Boeing has yet to determine the fix required to put these planes back into service, the time and resources required for this exercise would make Boeing sweat over its future prospects. Boeing, however, is optimistic about the fact that it has the technical acumen to put a fix in place at the earliest as voiced in an official statement released on their website. Currently, the commercial planes segment accounts for around 52% of the stock price for Boeing according to Trefis estimates. If Boeing is not able to get a clean from regulators soon, the outlook for this segment could trend lower. However, in the airline industry such setbacks and delays are quite frequent and Boeing’s competitor, Airbus also saw similar teething problems during the launch of its A380 aircraft.
    Yahoo! – Showing Signs Of Recovery As Topline Strengthens
  • By , 1/30/13
  • tags: YHOO AOL GOOG MSFT
  • Submitted by Shreyas Tonse as part of our contributors program . Yahoo! Inc. (NASDAQ: YHOO) reported results for the fourth quarter and full year ended December 31 2012 on Monday, 28th January 2012. While profits dropped by 8%, revenues rose 2% y-o-y compared to Q4 2011. This is the first time in 4 years that revenue growth has come out of the red. CEO Marissa Mayer, a former Google executive was cautious as she commented, “While the road to growth is certain, it will not be immediate.” Though the results were not robust, they generally met the expectations of the street. Drivers of Revenue Search Advertising: Search Advertising constitutes around 12% of Yahoo!’s stock price and saw a y-o-y increase of 9%. This growth is largely fueled by the fact that Yahoo! search results are now powered by Microsoft’s Bing search engine and Bing has been witnessing an increasing market share. This trend is likely to continue upwards as Bing captures more of the market share from Google. Display Ads: Constituting around 13% of the stock price, Yahoo!’s chief business driver, the display ads segment took a hit with a y-o-y decline of about 5%. Coupled with the fact that ad agencies are not all that excited about Yahoo!’s offering due a lack of creativity, it is quite possible that this might continue to dent the stock price unless Yahoo! is able to revive itself in the Valley and attract smart developers. Focus is on Mobile As Yahoo! looks to take on the likes of Google and Facebook, it has realized that it must make swift inroads into the mobile devices platform. It has already launched a revamped Flickr app for iOS devices and redesigned the Yahoo Mail interface on both the Web and for mobile. The strategy has started reaping returns as Yahoo’s mobile platform hit 200 million unique visitors. Mayer has made a strong bet on the mobile platform by acquiring mobile app companies Stamped and OnTheAir and is building a team of mobile engineers. Yahoo! also needs to be innovative when it comes to the mobile platform as its product mix overlaps with that of Google. If this strategy pays off, Yahoo! would see increased traffic leading to improvement of overall revenues. Margins are expected to remain flattish or might even contract a little due to the increasing competitive landscape. Currently, I predict a price of $22.45 for Yahoo!’s stock driven largely by the fact that the number of Internet users would increase and thereby both the Display Ads and Search Advertising segments should see a positive rub off.
    Yahoo Logo
  • commented 1/30/13
  • tags: YHOO
  • Comment on Yahoo Revenue per Search (RPS)

    The association with Bing & increased search traffic through this source should see a slightly upward trend. [ less... ]
    Comment on Yahoo Revenue per Search (RPS) The association with Bing & increased search traffic through this source should see a slightly upward trend.
    Yahoo Logo
  • commented 1/30/13
  • tags: YHOO
  • Comment on Yahoo Revenue per Page View (RPM) from Display Ads

    Yahoo is rapidly trying to become popular on the mobile devices platform and this should increase the # of internet users on yahoo thus positively impacting the revenue through display ads [ less... ]
    Comment on Yahoo Revenue per Page View (RPM) from Display Ads Yahoo is rapidly trying to become popular on the mobile devices platform and this should increase the # of internet users on yahoo thus positively impacting the revenue through display ads

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