Core Viewpoint - The article focuses on the recent Federal Reserve meeting, where it was decided to maintain interest rates unchanged, primarily due to the unclear impact of Trump's tariff policies on the U.S. economy and a stable job market. The market anticipates three rate cuts of 25 basis points each by the end of the year. Additionally, it highlights three dividend-paying companies for further investor research [5]. Group 1: Tenaris SA - Tenaris SA, a Luxembourg energy company, will distribute a dividend of $1.12 per share to shareholders registered by May 20 [7]. - The company has consistently increased its dividend since 2020, indicating potential for future dividend growth [9]. - Tenaris SA has a solid financial position, supporting its ability to maintain ongoing dividend payments [11]. Group 2: Artisan Partners Asset Management - Artisan Partners Asset Management has a dividend yield of approximately 8%, with its stock price showing signs of recovery [14]. - The ex-dividend date is May 16, with the payment date on May 21, aligning with Tenaris SA [14]. - The company has a dividend payout ratio of 80.33%, with an annualized dividend amount of $3.22 per share, indicating a strong commitment to returning value to shareholders [15]. Group 3: Universal Insurance Holdings - Universal Insurance Holdings has an ex-dividend date of May 9 and will pay dividends on May 16, demonstrating a history of stable dividend payments [18]. - The company's fundamentals are strong, and valuation models suggest a fair value increase of over 20% [21]. - The stock price is projected to test $51, indicating long-term potential for investors [17].

Core Points - Tenaris S.A. held its annual and extraordinary general meetings on May 6, 2025, where all resolutions on the agendas were approved [1] - Shareholders acknowledged the consolidated annual report for the year ended December 31, 2024, including financial and non-financial information, and approved the consolidated financial statements for the same period [2] - An annual dividend of US$0.83 per share was approved, totaling approximately US$0.9 billion, with a balance of US$0.56 per share to be paid on May 21, 2025 [3] - The number of directors was maintained at eleven, with re-appointments of existing board members and the election of audit committee members [4] - Compensation for board members for the year ending December 31, 2025, was approved, along with the appointment of Forvis Mazars as the statutory auditor for the fiscal year ending December 31, 2025 [5] - Authorization to purchase company shares was renewed, allowing the board to acquire shares under approved terms [6] - The extraordinary general meeting approved the cancellation of 90,762,598 ordinary shares, reducing the share capital from US$1,162,757,528 to US$1,071,994,930 [7]

Core Insights - Tenaris S.A. reported revenue of $2.92 billion for Q1 2025, a year-over-year decline of 15.1%, with EPS of $0.94 compared to $1.27 a year ago, exceeding the Zacks Consensus Estimate of $2.87 billion by 1.78% and delivering an EPS surprise of 17.50% [1] Financial Performance - The company’s shares have returned -14.5% over the past month, while the Zacks S&P 500 composite changed by -0.2%, indicating underperformance relative to the broader market [3] - Tubes sales volume for seamless pipes was 775 Kmt, exceeding the three-analyst average estimate of 760.78 Kmt, while total tubes sales volume reached 987 Kmt against an estimate of 934.25 Kmt [4] - Net sales for Tubes in North America were $1.24 billion, a decline of 16.4% year-over-year, compared to the average estimate of $1.14 billion [4] - Net sales for Tubes in Asia Pacific, Middle East, and Africa were $761 million, surpassing the average estimate of $720.27 million [4] - Net sales for Tubes in Europe were $208 million, down 8% year-over-year, compared to the estimated $251.69 million [4] - Net sales for Tubes in South America were $552 million, a decline of 10.1% year-over-year, against an estimate of $593.41 million [4] - Revenues from other segments were $157 million, slightly above the average estimate of $155 million, but represented a significant year-over-year decline of 49.4% [4] - Total revenues from Tubes were $2.77 billion, exceeding the average estimate of $2.71 billion, but reflecting an 11.7% decrease compared to the previous year [4] - Operating income from other segments was $36 million, above the estimate of $25.06 million, while operating income from Tubes was $514 million, exceeding the average estimate of $478.24 million [4]

Core Viewpoint - Tenaris S.A. reported its financial results for the first quarter of 2025, showing a decline in net income and EBITDA compared to the same period in 2024, while experiencing a slight increase in net sales compared to the previous quarter [2][3][4]. Financial Performance - Net sales for Q1 2025 were $2,922 million, a 3% increase from Q4 2024 but a 15% decrease from Q1 2024 [3]. - Operating income was $550 million, down 2% from Q4 2024 and down 32% from Q1 2024 [3]. - Net income remained stable at $518 million, unchanged from Q4 2024 but down 31% from Q1 2024 [3]. - EBITDA for Q1 2025 was $696 million, a 4% decrease from Q4 2024 and a 29% decrease from Q1 2024, with an EBITDA margin of 23.8% [3][4]. Sales and Market Dynamics - Sales were supported by seasonal volumes in Canada and higher onshore sales in the USA, despite a decline in average selling prices due to market and product mix effects [4]. - The Tubes segment saw an 8% increase in sales volumes sequentially, with seamless pipe sales at 775 thousand metric tons and welded pipe sales at 212 thousand metric tons [8]. - Net sales in North America increased by 10% sequentially, while South America and Europe experienced declines [8]. Cash Flow and Liquidity - Free cash flow for Q1 2025 was $647 million, following a reduction in working capital of $224 million [5][18]. - The net cash position increased to $4.0 billion as of March 31, 2025, after share buybacks of $237 million [5][18]. Market Outlook - The oil and gas drilling activity has remained stable, but the outlook for oil demand and prices has shifted due to lower global economic growth expectations and OPEC+ production increases [6]. - US OCTG reference prices have risen due to extended tariffs on steel imports, which is expected to mitigate the impact of higher costs on US operations [7]. Operational Efficiency - Selling, general and administrative expenses (SG&A) were $457 million, representing 15.6% of net sales, slightly up from 15.7% in the previous quarter [12]. - Operating working capital days increased to 134 days from 131 days year-on-year, indicating a slight decline in operational efficiency [38].

Core Viewpoint - Tenaris S.A. has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook for its earnings and potential stock price increase [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are a significant factor influencing stock prices [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Company Performance and Outlook - The upgrade for Tenaris reflects an improvement in its underlying business, which is expected to drive the stock price higher as investors recognize this trend [5]. - For the fiscal year ending December 2025, Tenaris is projected to earn $3.43 per share, representing a 5% decrease from the previous year, but the Zacks Consensus Estimate has increased by 8.3% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Tenaris's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Company Overview - Tenaris S.A. (TS) shares increased by 6.3% to close at $32.65, following a broad-based rally due to President Trump's announcement of a 90-day suspension of reciprocal tariffs for most countries [1] - The stock had previously experienced a 16.3% loss over the past four weeks [1] Earnings Expectations - The company is expected to report quarterly earnings of $0.79 per share, reflecting a year-over-year decline of 37.8% [2] - Revenues are projected to be $2.87 billion, down 16.6% from the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for Tenaris has been revised 0.6% lower in the last 30 days [3] - A negative trend in earnings estimate revisions typically does not lead to price appreciation, indicating potential caution for future stock performance [3] Industry Context - Tenaris operates within the Zacks Steel - Pipe and Tube industry, which includes other companies such as Mueller Water Products (MWA) [3] - MWA's stock closed 8.9% higher at $24.85, despite a -14% return over the past month [3][4] Zacks Rank - Tenaris currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook [3] - Mueller Water Products also has a Zacks Rank of 2 (Buy), with an unchanged EPS estimate of $0.32, representing a 6.7% increase from the previous year [4]

Core Points - Tenaris S.A. filed its 2024 Annual Report with various regulatory bodies including the Luxembourg Stock Exchange and the U.S. SEC [1] - The report includes consolidated financial statements, management certifications, and external auditors' reports [1] - Shareholders can request hard copies of the reports free of charge through Tenaris's website [2] Meeting Information - Tenaris will hold its Annual General Meeting of Shareholders on May 6, 2025, at 10:00 Central European time [3] - An Extraordinary General Meeting will follow immediately after the Annual General Meeting [3] - The convening notice with meeting agendas and voting procedures will be published and available on multiple platforms [3][4] Additional Documents - Various documents related to the shareholder meetings will be available on Tenaris's website, including the Shareholder Meeting Brochure and Proxy Statement [5] - Shareholders registered in the share register can request electronic copies of the documents free of charge [4][5]

Financial Performance - For the year, Tenaris reported EBITDA of $3.1 billion, net income of $2.1 billion, and net sales of $12.5 billion, with free cash flow of $2.2 billion distributed to shareholders through dividends and share buybacks [23]. - The company proposed a 38% increase in the annual dividend per share compared to the previous year, while maintaining a net cash position of $3.6 billion [23]. - The company’s dividend payments depend on the operational results and financial condition of its subsidiaries, which could be restricted by legal or contractual limitations [131]. - The company’s ability to pay dividends is subject to Luxembourg law, which requires dividends to be paid out of net profits and retained earnings [133]. Operational Developments - Tenaris has strengthened its service differentiation in North America, providing 24/7 digital well integrity solutions and extending its range of Wedge Series 400™ connections [24]. - The company completed several investments aimed at improving operational efficiency and reducing environmental impact, including new electric arc furnaces and modernization of facilities [30]. - Tenaris is advancing its target to reduce carbon emissions and is constructing a second wind farm in Argentina to increase renewable energy usage [32]. - Tenaris is expanding its Rig Direct services globally, integrating operations with customers to reduce costs and improve efficiency [155]. Market Position and Strategy - The company received the 2024 supplier of the year award from ExxonMobil for its supply chain integration efforts and has secured long-term agreements for US shale operations [25]. - Tenaris established a leading position in 20K projects in the US deepwater, with awards from Shell and BP for casing supply and product testing [26]. - The company consolidated its position in the Guyana-Suriname basin by supplying line pipe and insulation coating for Total's GranMorgu development [27]. - In Saudi Arabia, Tenaris won a tender for a major CCS pipeline and extended its long-term agreement with ADNOC in Abu Dhabi [28]. Regulatory and Environmental Challenges - The company faces increased regulatory requirements related to GHG emissions, including the EU Carbon Border Adjustment Mechanism adopted on May 17, 2023, which could affect demand for its products [56]. - The SEC adopted climate-related disclosure rules in March 2024, which would require expanded climate-related disclosures, although implementation was voluntarily stayed [57]. - The company is exposed to physical risks from climate change, including extreme weather events that could disrupt operations and financial results [61]. - The company faces regulatory uncertainties in Mexico due to recent constitutional reforms impacting energy supply and cost structure [80]. Economic and Geopolitical Factors - The company is significantly impacted by the volatility in international oil and gas prices, which affects sales and profitability [53]. - The United States imposed a 25% tariff on steel imports from all countries, effective early 2025, affecting market prices and supply chains [69]. - Argentina's new administration announced emergency measures in December 2023, including cuts in public spending and labor reforms, which may impact demand for the company's products [76]. - The Argentine peso has devalued by over 100% since December 2023, with a "crawling peg" policy in place, potentially affecting the company's financial condition [77]. Cybersecurity and Compliance - Cybersecurity threats have increased significantly, with a reported 2.75 times rise in human-operated ransomware attacks, highlighting vulnerabilities in the company's information systems [123]. - The company has implemented cybersecurity awareness campaigns and training programs to enhance resilience against cyber threats [125]. - The company does not currently maintain cybersecurity insurance, which may expose it to financial risks from cyber threats [128]. - The company is committed to compliance with anti-corruption laws, facing risks of investigations and penalties that could impact sales and profitability [107]. Production Capacity and Facilities - Tenaris's effective annual production capacity for seamless tubes is 4,677 thousand tons, with actual production at 3,229 thousand tons in 2023, reflecting a slight increase from 3,188 thousand tons in 2022 [175]. - The company acquired the global pipe coating business of Mattr at the end of 2023, enhancing its range of pipe coating technologies [152]. - The Bay City facility in Texas represents a $1.8 billion investment, featuring a seamless mill with a capacity of 757,000 tons per year [180]. - The company operates an integrated network of steel pipe manufacturing, research, finishing, and service facilities across the Americas, Europe, the Middle East, Asia, and Africa [141].

Group 1 - Tenaris S.A. is one of 194 individual stocks in the Industrial Products sector, currently ranked 9 in the Zacks Sector Rank [2] - The Zacks Rank for Tenaris S.A. is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past three months, the Zacks Consensus Estimate for Tenaris S.A.'s full-year earnings has increased by 10.2%, reflecting improved analyst sentiment [4] Group 2 - Year-to-date, Tenaris S.A. has gained approximately 3.5%, outperforming the Industrial Products sector, which has returned an average of -6.9% [4] - Tenaris S.A. belongs to the Steel - Pipe and Tube industry, which is currently ranked 3 in the Zacks Industry Rank, with an average gain of 1.8% this year [6] - In contrast, Wartsila, another stock in the Industrial Products sector, has a year-to-date return of 10.2% and is ranked 2 (Buy) [5]

Core Viewpoint - The article expresses personal opinions regarding potential investment opportunities in TS, indicating a possible long position in the near future [1]. Group 1 - The author has no current stock, option, or similar derivative position in any of the companies mentioned but may initiate a beneficial long position through a purchase of the stock or call options in TS within the next 72 hours [1]. - The article is intended for informational purposes only and does not constitute investment recommendations [2]. - The author emphasizes the importance of performing due diligence before acting on any information provided [2].