On March 1, 2024, P10 Inc. announced its strong fourth-quarter earnings for fiscal year 2023, highlighting its resilience and strategic foresight in a challenging economic landscape. The company experienced double-digit asset growth and impressive top-line expansion. CEO Luke Sarsfield and CFO Amanda Coussens played key roles in driving the company's financial success. P10 Inc. also revealed significant leadership changes, including the promotion of Mark Hood to EVP of Operations and Chief Administrative Officer, and the appointment of Arjay Jensen as EVP Head of Strategy and M&A. Additionally, the company unveiled an expanded share repurchase program worth over $50 million, demonstrating its confidence in its intrinsic value and commitment to delivering value to shareholders. P10 Inc. plans to host its inaugural Investor Day in the fall to present its long-term strategy for accelerated and profitable growth [ce273ece].
The announcement from P10 Inc. adds to the growing trend of companies engaging in share buybacks. Companies on both sides of the Atlantic have been announcing share repurchases at a rapid pace, driven by stronger-than-expected earnings and the ongoing stock market rally. In the first seven days of February, U.S. companies announced $105 billion in planned share repurchases, surpassing the total for the entire month of January. It is projected that S&P 500 companies will repurchase $885 billion in stock this year, a 10% increase from 2023. European companies, particularly in the financials and energy sectors, have also seen a rise in buyback announcements. As a result, a basket of high-buyback-yield stocks compiled by Goldman Sachs Group Inc. has outperformed the Stoxx Europe 600 index with a 5.9% return over the past 12 months [e9af012b].
The increase in share buybacks is seen as a positive development for investors, as it reduces the amount of total shares outstanding and boosts investors' stake in the company. It also indicates that companies have confidence in their financial momentum and believe they are in a stronger position. Alongside the rise in buybacks, companies such as Meta, Disney, and Uber have also announced plans to repurchase shares. This trend is further supported by the fact that S&P 500 members repurchased $63 billion worth of their own stock during the first week of February, marking the highest single-week total for buybacks since May 2023 [4e584781].
In addition to share buybacks, companies have been engaging in deals at an increased rate. Deal-making year-to-date is up 55% compared to the same period last year. The rise in deals is seen as a confidence builder for markets, as interest rates have stabilized and companies have gained more confidence to pursue deals [4e584781].
Furthermore, P10 Inc. announced an expanded share repurchase program, reflecting its confidence in its intrinsic value and commitment to returning value to shareholders. The program is worth over $50 million and aims to deliver value to shareholders while demonstrating the company's financial strength. P10 Inc. plans to unveil its long-term strategy for accelerated and profitable growth at its inaugural Investor Day in the fall [ce273ece].
In a separate development, Papa John's International, Inc. announced a change in leadership as Rob Lynch, the current President and CEO, steps down to take another CEO position. Ravi Thanawala, the company's Chief Financial Officer, will take over as Interim CEO. Lynch will continue to support the transition until April 30, 2024. The board is actively searching for a permanent CEO. Papa John's reaffirmed its financial outlook for fiscal 2024, with expectations for Adjusted Operating Income to be between $153 million and $163 million. The company anticipates over 20% growth in North American net unit openings relative to 2023 and projects 100 to 140 new international restaurant openings [63d76d8b].
BMO Capital has adjusted its stock price target for Papa John's International, Inc. to $80 from $90 following the announcement that CEO Rob Lynch will depart the company on April 30. CFO Ravi Thanawala has been appointed as interim CEO while the board searches for a permanent replacement. The company confirmed its operating profit and development outlook for 2024 but did not provide an update on its comparable sales guidance. BMO Capital cites the leadership transition, uncertainties about future sales trajectory, and the possibility of an earnings adjustment as reasons for the price target reduction. Despite the challenges, BMO Capital maintains an Outperform rating on Papa John's stock [9c1be383].