BUZZ-Australia's Kelsian shares rise as asset sale triggers Morningstar's cautious optimism
路透社2026/10/07 04:36Latest developments on October 7th – Kelsian Group (KLS.AX) shares briefly rose 1% to A$3.93 before narrowing gains to 0.3% by midday in Sydney. Morningstar holds a positive view on the transport operator’s recently announced A$150 million (US$104.76 million) sale of travel assets in mid-September. The investment research firm noted that this divestment relieves the transportation and travel operator from reliance on discretionary-spending businesses such as resorts, cruises, and tours. It also stated that the sale enables management to focus more on core operations and moderately reduces capital intensity. However, Morningstar pointed out that the sale means profits from the marine segment will still be "discretionary in nature." It added that the sale will leave the company’s earnings mainly dependent on its US interstate coach business, which is characterized by short-term contracts without cost-adjustment mechanisms and serves highly volatile sectors such as technology, oil, and gas. Year to date, the share price is down 8.2%. (US$1 = A$1.4318) (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. Automated translation may be inaccurate or may not completely reflect the required context; Reuters does not guarantee the accuracy of translated texts, which are provided solely for reader convenience. Reuters is not responsible for any harm or loss arising from the use of automatic translation.)
Latest Updates
October 7 - ** Kelsian Group (KLS.AX) shares rose as much as 1% to 3.93 Australian dollars, but pared gains to a 0.3% increase by midday trading in Sydney
** Morningstar takes a positive view of the travel asset divestment deal valued at 150 million Australian dollars (104.76 million US dollars) announced by the transport operator in mid-September
** The investment research firm said the sale allows the transport and tourism operator to shed its discretionary spending-dependent resort, cruise, and tourism businesses
** It added that the divestment also enables management to focus more on core operations while moderately reducing capital intensity
** However, Morningstar pointed out that this sale means profits from the marine segment remain discretionary in nature
** It also noted that the sale means the company's earnings will mainly come from the US intercity coach business, which features shorter contract periods, lacks cost adjustment mechanisms, and serves highly volatile industries such as technology, oil, and gas
** Shares have fallen 8.2% so far this year
(1 US dollar = 1.4318 Australian dollars)
(To facilitate non-English speakers, Reuters has automatically translated its report into several other languages. Because automated translation may contain errors or lack necessary context, Reuters does not guarantee the accuracy of this translated text and provides it solely for the convenience of readers. Reuters assumes no responsibility for any damage or losses arising from the use of the automated translation feature.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Illia Polosukhin: NEAR accounts can achieve quantum resistance through key updates
Chart - U.S. stock funds see weekly net outflows for the first time in three weeks
Reuters, October 9 – After two consecutive weeks of net inflows, U.S. equity funds saw net outflows for the week ending October 7, as investors took profits during a market rally while concerns persisted over rising Treasury yields and sustained high oil prices. LSEG Lipper data shows investors withdrew a net $5.11 billion from U.S. equity funds during the week, marking the first weekly net outflow since September 16. The S&P 500 index (.SPX) hit a record high of 7,844.52 points earlier in the week before retreating. Mounting inflation concerns fueled a sharp selloff in the bond market, driving the yield on the 10-year Treasury to 5.3645%, its highest level since April 2002, dampening market sentiment. Large-cap, mid-cap, and small-cap U.S. equity funds recorded net redemptions of $14.08 billion, $1.03 billion, and $834 million, respectively. However, investors made net purchases of $5.68 billion in sector funds, led by technology, which attracted $4.53 billion. The utilities and industrials sectors absorbed $1.18 billion and $1.04 billion, respectively. U.S. bond funds posted net inflows of $19.78 billion for the week, a historic high. Investors poured $6.76 billion into short- to intermediate-term government and Treasury funds, the highest in six months. Short- to intermediate-term investment-grade funds and general domestic taxable fixed income funds saw net inflows of $5.04 billion and $2.52 billion, respectively. Meanwhile, money market funds attracted $68.49 billion, reversing the previous week’s $43.6 billion in outflows. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several other languages. Due to possible inaccuracies or lack of context in automated translations, Reuters does not guarantee the accuracy of such texts and provides them solely for the convenience of readers. Reuters accepts no liability for any damage or loss caused by the use of automated translation services.)
BUZZ - Delta Air Lines shares fall after lowering full-year profit guidance
October 9 - Delta Air Lines (DAL.N) shares fell nearly 5% in pre-market trading to $78.12. Due to a surge in jet fuel prices, Delta Air Lines (DAL) on Friday lowered its full-year adjusted profit forecast. The U.S. airline now expects adjusted earnings per share in 2026 to be between $5.10 and $5.60, down from the previous guidance of $6.5 to $7.5 per share. The current midpoint of $5.35 per share is lower than analysts’ expectations of $5.46 per share. DAL expects its annual fuel costs to rise by about $6.0 billion, compared to an earlier projection of a $4.0 billion increase. Analysts tracking DAL have given it an average “Buy” rating, according to data compiled by LSEG. So far this year, Delta Air Lines stock has risen 18.4%, the highest increase among major U.S. competitors. (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. Since automated translations may contain errors or lack the necessary context, Reuters does not guarantee the accuracy of automated translation texts, which are provided solely for readers’ convenience. Reuters assumes no responsibility for any damage or loss resulting from the use of automated translation services.)
Crypto prices
More
