Key Takeaways
- Verizon (VZ) has significantly raised its annual profit forecast, driven by robust demand for premium plans and favorable tax benefits, with its stock seeing a pre-market boost of up to 4%.
- Safran announced the closing of its acquisition of Collins Aerospace’s flight control and actuation activities, a strategic move valued at $1.8 billion that strengthens its position in critical aerospace systems and is set to be consolidated by August 1st, 2025.
- Altice USA (ATUS) secured a substantial $1.0 billion asset-backed loan facility, primarily backed by its Hybrid-Fiber Coaxial (HFC) network assets, in partnership with Goldman Sachs, TPG Angelo Gordon, and other financial institutions.
- Federal Reserve Chair Jerome Powell faces a criminal referral from House GOP Representative Anna Paulina Luna, who alleges perjury related to the renovation of the Federal Reserve's Eccles Building.
- Indian Vice President Jagdeep Dhankhar has resigned from his post, effective immediately, citing health reasons.
Verizon (VZ) has provided an optimistic update, raising the lower end of its annual profit forecast. The telecom giant attributes this improved outlook to strong demand for its premium plans and benefits from new U.S. tax laws. Verizon's stock saw an increase of up to 4% in pre-market trading following the announcement. The company reported second-quarter revenues of $34.5 billion, surpassing estimates of $33.74 billion, and adjusted quarterly earnings per share of $1.22, also exceeding forecasts. Despite a surprising loss of 9,000 monthly postpaid wireless subscribers, Verizon added 293,000 broadband users in the second quarter, highlighting its strategic focus on internet services. The company now expects adjusted profit growth of 1%-3% for 2025, up from 0%-3%, and has raised its annual free cash flow forecast to $19.5 billion-$20.5 billion from $17.5 billion-$18.5 billion.
In the aerospace sector, Safran has completed its acquisition of Collins Aerospace's flight control and actuation activities. This deal, valued at $1.8 billion, is a significant strategic move for Safran, positioning it as a global leader in these mission-critical systems. The acquired business, which generated approximately $1.55 billion in revenue in 2024 and an EBITDA of about $130 million, employs around 4,000 people across eight main facilities in Europe and Asia. The consolidation of this business within Safran Electronics & Defense is expected to begin on August 1st, 2025. The acquisition is anticipated to generate around $50 million in annual cost synergies and is expected to have an accretive impact on Safran's earnings per share from the first year.
Meanwhile, Altice USA (ATUS) has bolstered its financial position by securing a landmark $1.0 billion asset-backed term loan facility. This inaugural transaction, entered into and funded in partnership with Goldman Sachs, TPG Angelo Gordon, and other firms, is primarily secured by receivables generated from the company's Bronx and Brooklyn service areas and Hybrid-Fiber Coaxial (HFC) network assets. The loan facility matures in January 2031 and carries a fixed coupon of 8.875%. This financing is a "first-of-its-kind transaction" in infrastructure-backed financing, securitizing parts of Altice USA's HFC network.
In political news, Federal Reserve Chair Jerome Powell is facing a criminal referral from House GOP Representative Anna Paulina Luna. Luna has accused Powell of perjury on two occasions related to alleged false statements about the renovation of the Federal Reserve's Eccles Building. The cost of the renovation project has reportedly surged by more than $700 million, now totaling $2.5 billion. This development introduces a layer of political scrutiny to the central bank's leadership.
Finally, Indian Vice President Jagdeep Dhankhar has resigned from his position, effective immediately. Dhankhar cited health reasons as the basis for his decision, stating he needs to "prioritise health care and abide by medical advice".
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.