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Shares of Workday fall after a lukewarm quarter subscription revenue
Workday's third-quarter subscription revenues were in line with Wall Street expectations on Tuesday. This signaled a softer market and sent its shares down by nearly 7% during extended trading. A sluggish higher education market, which heavily relies on federal funding, also affected the forecast for subscription revenue in the fourth quarter of this human resources software provider. Workday is a payroll provider that competes with Oracle and SAP. Customers include United Airlines, Visa, and FedEx. Some customers, in an uncertain economic climate, are reassessing their budgets and timing. They may also reduce spending on Workday. According to data compiled and analyzed by LSEG, the company anticipates fourth-quarter revenue from subscriptions of approximately $2.36 billion. This compares with an average analyst estimate of $2.35billion. The company's third-quarter revenue increased 12.6%, to $2.43 Billion, slightly exceeding the estimates of $2.42 Billion. The quarter ended October 31 saw subscription revenue rise 14.6%, to $2.24 Billion. This was in line with expectations. The company reported a profit per share adjusted of $2.32, which was higher than the estimate of $2.18. (Reporting and editing by Jaspreet in Bengaluru, Alan Barona).
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Zscaler exceeds its quarterly forecasts on the strength of cybersecurity demand
Zscaler's cloud-based security solutions and strong demand for them drove the company to beat Wall Street expectations for revenue and profit for its quarter on Thursday. As digital threats became more sophisticated, enterprise spending on cyber-protection solutions increased. Zscaler’s flexible buying program helped it to sign multi-year platform agreements with larger enterprise clients. The company has also raised its revenue outlook for the full year to approximately $3.28 to $3.30 Billion, up from its previous forecast of $3.27 to $3.28 Billion. The company now anticipates a fiscal 2026 adjusted earning per share between $3.78 and $3.82 compared to the previous forecast of $3.64 - $3.68. The shares of the company fell by more than 7% during extended trading, despite a rise of nearly 61% in this year. RBC analysts stated in a report that, although the company raised its annual revenue forecasts by a small amount compared to the revenue growth in the first quarter. Zscaler's revenue jumped 26% to $788.1M in the first quarter ending October 31. This was higher than analysts' estimates of $773.8M, according to LSEG data. The adjusted earnings per share for the first quarter was 96 cents, which is above expectations of 86 cents. Palo Alto Networks, a larger competitor, also increased its annual revenue forecasts last week and reported a rise in the first quarter. Zscaler competes primarily in the market for secure access service edges (SASE), which combines network and security into one platform that connects users, devices, and applications anywhere. SASE is one the fastest growing segments in cybersecurity, as cloud adoption and artificial intelligence continue to transform network architectures.
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Ryanair's December bookings are slightly ahead of the year before, says CEO O'Leary
Michael O'Leary, the CEO of budget airline Ryanair, said that the company's December bookings, which include the crucial Christmas period, were slightly higher than a year earlier. Around 40% of the seats are still available until the end this year. This month, the airline, Europe's biggest by passenger number, announced that it would fly 207 millions passengers for the year ending March, an increase of one million over the previous forecast. Boeing deliveries improved, allowing it to increase capacity during the first quarter and current quarter. Bookings for Christmas have been a strong success. "We're currently about a half-percent ahead of where we were at this time last, and the average fares are in the mid-to-high single-digit range," O'Leary said at a press event at Vienna International Airport. Ryanair clarified, however, that he meant December in general. "December is basically Christmas." O'Leary stated that there is not much happening in the first couple of weeks of December. Francois Murphy reported. (Editing by Jan Harvey, Mark Potter and Jan Harvey)
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Transportation chief of the US wants healthier snacks for flights
Sean Duffy, the U.S. Transportation secretary, wants airlines to replace salty pretzels with healthier alternatives. "I'd love to have some better snacks." Duffy, in an interview posted on Blaze News Tuesday, said, "I would love to have a healthier snack while flying." He added that it would be better "if I did not get the really fattening cookies full of sugar, butter and crap." Or that snack pack of pretzels." Airlines for America is a trade association that represents American Airlines, Delta Air Lines and Southwest Airlines. United Airlines was also represented. Duffy launched a new campaign last week to encourage people to dress and act nicely when traveling by air. He asked travelers to refrain from wearing pajamas or slippers at the airport. Duffy told passengers on Monday, "Don't remove your shoes and place your feet on the seat in front of you." Duffy oversees a $12,5 billion overhaul of America's air traffic system. He is also working to solve the persistent shortage of controllers. He is asking Congress to approve an additional $19 billion for the project. Duffy also received criticism after USDOT, his predecessor's agency, retracted a plan this month that would have required airlines to compensate passengers in cash when carriers cause U.S. flights to be disrupted. Duffy said he dropped the compensation plan because he took a "common sense approach". He also told Fox News that the compensation plan could lead to increased ticket prices. Duffy stated that the goal was to strike the right balance between airlines and passengers. In the United States, airlines are required to refund customers for cancelled flights but not compensate them for delayed flights. All four countries - the European Union, Canada and Britain - have rules on airline compensation for delays. There are no large U.S. airlines that guarantee cash compensation for flight delays, but there are many who offer free hotel rooms and meals as well as pay for out-of pocket expenses if the airline is responsible. (Reporting and editing by Alistair Bell; Reporting by David Shepardson)
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UK stocks rise ahead of the budget, led by financials and consumer staples stocks
The UK stock market rose on Tuesday. Gains in consumer staples and financials were a major factor, as investors geared up for the budget of Wednesday that will likely include significant tax changes. The blue-chip FTSE 100 ended up 0.8%. The FTSE 250, which measures domestically oriented UK companies, rose by about 1%. This was its best day for over a week. The sectoral gains were led by personal goods, which rose 3.9%. Burberry was up 4.7%. Construction and materials rose 2.5% with Ibstock rising 5.9%. Retailers gained 2.4%, helped by Kingfisher's 5.9% increase after it raised its profit forecast for the year. The survey found that British retailers' confidence dropped to its lowest level in 17 years, and sales declined again before Wednesday's budget. In the budget on Wednesday, it is likely that the government will not raise income taxes but instead increase several other levies. Goldman Sachs referred in a note to a Financial Times article that said the banks would not be taxed. Lloyds Banking rose by 3.8%, Barclays gained 2.4% and NatWest Group increased by 3.7%. The industrial metals miners rose 1.2% on the back of higher copper prices. Anglo American gained 1.6%. Travel and leisure recovered from initial losses and added 0.9%. Wizz Air rose 3.6%. EasyJet's sales slumped 1.5% due to winter concerns. Non-life insurers dropped 2.7%, while Beazley fell 9.2% as the company lowered its forecast for annual insurance premiums written. Compass Group's shares dropped 2.7%, among other things, after the food caterer reported that 2026 revenue growth would be moderate due to lower inflation. Domino's Pizza Group shares fell 1.4% following the resignation of CEO Andrew Rennie. This is another high-ranking departure in a company that has changed its strategy to combat weak sales and rising cost. The British government bonds rose on Tuesday, the day before the Budget. In the U.S., retail sales in September fell short of expectations. A separate report revealed that producer prices rose in September. (Reporting and editing by Shreya Biwas and Ros Russell; Utkarsh T. Hathi)
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BP identifies the source of Olympic Pipeline Leak in Washington
BP Olympic Pipeline announced Tuesday morning that its crews had identified the source for a fuel spill east of Everett in Washington. On November 11, the first report of the discharge of refined products appeared. BP confirmed a rupture in one of two pipelines located in the region. In an email, BP said that testing on the other pipeline had shown no signs of leakage. The company announced that "Plans are being developed for a partial start-up and a new timeline will be available when it is ready." Crews are developing repair plans for the affected section. The Olympic Pipeline System, a 400-mile pipeline system that runs from Washington's northern border to Oregon, transports refined petroleum products such as gasoline and diesel. Washington Governor Bob Ferguson declared a state of emergency in response to the shutdown last week. Jet fuel has been disrupted at Seattle-Tacoma International Airport due to the shutdown. Tina Kotek, the Governor of Oregon, declared a fuel crisis on Monday. The system supplies over 90% of Oregon transportation fuels at terminals in Portland, for distribution across the state. Reporting by Nicole Jao, New York; editing by David Gregorio
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Heathrow Airport expansion plan of $64 billion chosen by UK
The government announced on Tuesday that Britain chose Heathrow Airport’s expansion and upgrade plan worth 49 billion pounds ($64 billion) as the basis for a new runway. This was over a more affordable rival proposal. The decision comes after Finance Minister Rachel Reeves made a pledge In January, Build a third runway in Heathrow The airport will be redeveloped to spur economic growth and put an end to decades of uncertainty about its future. The headline figure includes 15 billion pounds in planned upgrades and 33 billion pounds for the construction of the runway, rerouting London's motorway orbital and adding a terminal. This year, the government has given its backing to airport projects. It has approved the use of a runway in the second largest airport in the UK, Gatwick. September Supporting a new terminal in Luton April is a month of celebrations. Heathrow’s plan was compared to an alternative by Arora Group which owns hotels and land near the airport. Arora estimated that its proposal was under 25 billion pounds. However, this figure did not include some costs. The Government sets a target of 2035 Planning consent is required by 2029. Flights on Heathrow's brand new runway will begin in 2035. The government chose Heathrow’s full-length plan for a runway as the "most achievable option" to meet these deadlines. The government has said that a "rapid and robust" review of Heathrow's expansion plans will help to shape them in line with Britain’s climate obligations. It also aims at avoiding potential legal challenges regarding air quality and emission levels, which it has faced in the past. Heathrow Airport, which is owned by Ardian France, Qatar Investment Authority and Public Investment Fund of Saudi Arabia, among others, welcomed the decision by the government but asked for clarification from the aviation regulator and government by mid-December in order to avoid any delays. Arora expressed its satisfaction that there was no single promoter and will revisit its plans. Airline companies are worried about cost Heathrow's high fees have been a concern for airlines like British Airways, IAG, and Virgin Atlantic. Heathrow Airport, located west of London is Europe's busiest and most crowded airport. It operates at maximum capacity. Heathrow's two runways are comparable to the four runways at Charles de Gaulle Airport in Paris, Frankfurt Airport and Schiphol Airport in Amsterdam. In a statement, the government said that the review will include details like the length of runways, the layout and the associated infrastructure implications.
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What are the challenges ahead of UK's expansion plan for Heathrow Airport?
The government of Britain approved Heathrow Airport’s plan for a new runway Tuesday as it pushes forward with the controversial project. The construction of one of the busiest airports in the world, which is estimated to cost 43 billion pounds ($43.4billion), will not begin until the project has been approved by the local authorities and environmental concerns have been addressed. The government wants to secure planning approval for the new runway by 2029, and have planes take off by 2035. Why a third runway for heathrows now? Rachel Reeves, the finance minister of Britain, wants to bring life back into Britain's economic system. She says that infrastructure projects can help spur growth by attracting investment and, in Heathrow’s case boosting tourism and trade. Reeves, the Labour budget minister, is expected to announce tax increases in Wednesday's Budget. Heathrow Airport is operating at 99% of its capacity, and it could overtake Frankfurt Airport as Europe's busiest in the coming years. Heathrow Airport has two runways, compared to four at Charles de Gaulle Airport in Paris and Frankfurt Airport and six at Schiphol Airport in Amsterdam. What is the history of the Heathrow Expansion Plan? Heathrow’s third runway was approved in 2009, but it was scrapped after the change in government in 2010. This sparked thoughts about building a hub airport east London before a 2015 commission recommended a third runway at Heathrow. Heathrow’s third runway was given the go-ahead by Britain’s top court in 2020. However, this was during the COVID-19 epidemic, which halted air traffic. Heathrow focused on the recovery of travel. By 2024, Heathrow's passenger numbers had risen to 84,000,000, surpassing the pre-pandemic peak and placing the third runway on the agenda. What are the environmental objections to the expansion? Heathrow Airport is located 24 km (15 miles) west of London. Residents have complained for years about the noise pollution, air pollution and high carbon emissions caused by flight paths that mainly go over London. In the past, environmental groups and groups of local opposition have challenged attempts to expand Heathrow. These groups could request a judicial review. The use of sustainable aviation gas will reduce carbon emissions in the future, and also help to boost the argument for expansion. This is important because the government must meet the legally-binding net zero targets set by Britain. Experts say that electric planes and at least 10% jet fuel should be used on flights departing from Britain by 2030. However, the current use is low. Heathrow is in the best position to benefit from the government's plan to simplify planning rules and make building easier. This legislation is currently going through Parliament. Last month, Transport Minister Heidi Alexander launched a review on the Airports National Policy Statement. This will help to shape plans that are in line with climate commitments and should be finished by the end 2026. How will it be paid for? Heathrow Airport, which is privately owned, has announced that the expansion would be privately funded. The airport estimated the cost of the new runway at 21 billion pounds. This includes 1.5 billion pounds to reroute nearby M25, and 12 billion pounds in infrastructure for the terminals. The airport is spending already 15 billion pounds upgrading the terminals. Airports owned by Ardian France, Qatar Investment Authority, Public Investment Fund of Saudi Arabia and other investment groups want a long-term financing framework to ensure future returns on their investment in a new runway. Airlines have stated that they don't want to be burdened with large increases in fees for expansion. Alexander stated in October that the expansion at Heathrow should be done to minimize costs for customers and passengers. Heathrow Airport announced on Tuesday that it needs clarity on the next phase of the project by mid-December. What other challenges are there? Heathrow's proposal would see London's orbital autobahn passing through a tunnel. This is a complex project, on a heavily congested route that has been criticized by the British Airways boss. The number of construction workers is also falling in Britain as the government pushes for other large projects. Reporting by Sarah Young and Editing by Timothy Heritage.
Ackman's Pershing Square aims for $5 billion IPO of closed-end funds
Two people with knowledge of the matter say that hedge fund manager Bill Ackman plans to raise $5 billion to launch a closed-end U.S. fund at the same time as he plans on listing his hedge fund company, Pershing Square Capital Management.
The billionaire investor who has cemented his reputation of an activist investor through his advocacy for companies such as Chipotle Mexican Restaurant and the railroad Canadian Pacific, now known as Canadian Pacific Kansas City is starting his new fund after years. He plans to give investors a share in his hedge fund.
The closed-end funds, which were first prepared to be listed last year, are expected to mirror Ackman's hedge fund while offering lower fees and faster access to capital. The fund would appeal to a wider pool of investors including pension funds and endowments, as well as retail investors.
Sources said that the initial public offerings of Pershing Square Capital Management and the closed-end funds could both happen early in 2026.
Bloomberg News was the first to report on the target fundraising goal.
The people who were not allowed to talk about the plans privately said that investors in the new fund will also get free shares of Pershing Square.
People warned that plans are still being discussed, and they could change depending on the market conditions.
Pershing Square's spokesman declined to comment.
Ackman began laying the foundations for the closed-end funds in early 2024. However, he cancelled the launch of Pershing Square USA on July 20, 2024 a few days before the fund was scheduled to start trading at the New York Stock Exchange.
After initial reports from people who were familiar with the situation suggested that the fund could raise up to $25 billion, he has reduced the size of his plans for the initial public offering several times. This would make it one of the largest IPOs ever.
Pershing Square purchased nearly half of Howard Hughes, a real estate firm.
Pershing Square has about $21 billion of assets under management. The majority is invested in Pershing Square Holdings - the closed-end London fund. The fund's returns since January have been 17.2% and double-digit returns are expected in 2024 and even 2023.
Analysts and investors say that Ackman's musings have become nearly as popular as his investment skills in recent years. The fund manager's 1.8 million followers on X often share his opinions about topics such as dating advice, sugary food, political races and higher education. Reporting by Svea Autumn-Bayliss, with additional reporting from Ateev Bhhandari in Bengaluru. Editing by Arun K. Koyyur and Deepa B. Babington.
(source: Reuters)