Tyson Foods Chickens Came Home to Roost as Operating Margins Contract

Tyson Foods is a stock known for not missing earnings, in the Q3 (June), quarter it did. Adjusted operating margins tell the story as they contracted by 340 bps yr/yr to 7.4%. While consumer prices for beef, chicken, and pork boosted revenue the input costs more than offset the pricing benefits. TSN adjusted their prices given their products have a degree of price elasticity. TSN did reaffirm its FY22 revenue guidance of $52-54 billion as well as its adjusted operating … Continue reading “Tyson Foods Chickens Came Home to Roost as Operating Margins Contract”

Revlon gets court approval for $1.4 billion bankruptcy loan

Cosmetic company Revlon Inc, who filed for Chapter 11 in June, received a U.S. bankruptcy judge’s permission on Monday to proceed with a $1.4 billion loan. Junior creditors had argued that its onerous terms could block their chance to recover anything from the company’s bankruptcy. The Judge ruled Revlon must be allowed to borrow the cash it needs to continue its operations in bankruptcy. $REV shares moves sharply higher on the decision, up over 120% given the significance it had … Continue reading “Revlon gets court approval for $1.4 billion bankruptcy loan”

Ford Motor Crushes Earnings, Hikes Dividend Raising Guidance

Ford Motor reported better than expected second quarter earnings after the close Wednesday. $F stick soared after the automaker reaffirmed its 2022 outlook and hiked the Ford stock dividend. Strong demand for both the traditional combustion and new electric vehicles overcame supply and inflation headwinds. Ford made an operating profit of $3.7 billion from $40.2 billion in sales. Wall Street was looking for an operating profit of $2.6 billion from sales of $34.8 billion. Earnings Ford Second Quarter 2022 Earnings … Continue reading “Ford Motor Crushes Earnings, Hikes Dividend Raising Guidance”

Pinterest Stalked by Activist Investor Elliott Management

Pinterest stock jumped to 20.25 +2.69 or +15.3% after the WSJ reported that activist Elliott Management Corp. has built a stake of over 9% in the company to become the biggest investor in PINS. The once hot social-media company that Paypal had eyes on much higher, though $PYPL backed out after the payments company’s shareholders balked. Now like many social media companies it has a decline in users and faces other challenges from a collapsing stock market and economy. Elliott has been in … Continue reading “Pinterest Stalked by Activist Investor Elliott Management”

Levi Strauss Earnings Watch, Market Share Gains Boosting Apparel Margins

Iconic American blue jean maker Levi Strauss & Co. reports second quarter earnings after the market closes on Thursday, July 7th. $LEVI posted improved earnings and revenue for the first quarter ended in February. Levi Strauss has benefited from growth in its direct-to-consumer and e-commerce businesses, though it has had to confront inflation and supply chain constraints. Analysts are projecting revenue of $1.43Billion and EPS of $0.23. Earnings Preview Levi Strauss & Co. NYSE: LEVI Report Earnings After Close Thursday … Continue reading “Levi Strauss Earnings Watch, Market Share Gains Boosting Apparel Margins”

Nike Brand Power and North American Sales Fail to Overcome China Weakness

Nike reported softer Q4 2022 results after the close Monday as expected, and guided down FY23 margins. Fourth quarter revenue missed estimates in North America and China. The many headwinds took their toll, tough comps in North America, lockdowns in China, Russian exit, strong USD and supply chain pressures. Nike’s consumer demand in $NKE’s biggest market North America needed vigorous demand to balance but not to be. Board authorized a new $18 billion buyback program How much has the consumer … Continue reading “Nike Brand Power and North American Sales Fail to Overcome China Weakness”

Texas Based Academy Sports + Outdoors Beats Earnings and Sales Expectations, Increases Share Buybacks

Academy Sports + Outdoors released better than expected 1Q23 earnings, coupled with a new $600 mln share repurchase program. This brought the total amount available for repurchase up to $700 mln, which saw the stock close 8.80% higher. This accounts to almost a quarter of ASO’s total float. Academy’s earnings have been bolstered by the American enthusiasm for outdoor activities, sports, and recreation. $ASO beat top and bottom-line estimates for the seventh straight quarter. ASO’s comparable sales decline of 7.5% … Continue reading “Texas Based Academy Sports + Outdoors Beats Earnings and Sales Expectations, Increases Share Buybacks”

Target Misses Earnings Metrics as Margins Collapse on Soaring Expenses

Retail giant Target Corporation on Wednesday reported worse than expected first-quarter earnings missing on major metrics. $TGT shares fell over 26%. Competitor Walmart reported yesterday and also sold off on its earnings miss for its largest single-day percentage decrease since 1987. Target management said fuel and freight costs will be $1 billion higher this year than it had expected, with little sign of their easing throughout 2022.  Target Corporation NYSE: TGT Reported Earnings Before Market Open Wednesday  $1.09 Missed $1.11 … Continue reading “Target Misses Earnings Metrics as Margins Collapse on Soaring Expenses”

Home Depot Delivers Record Sales and Raises Guidance and Margins

Home Improvement Retailer Home Depot was in a position to take advantage of the upsurge in construction and renovation. $HD sales rose to the highest ever for the first quarter of the year. The company is still seeing healthy demand, even in the face of rising prices and a shaky housing market and raised guidance accordingly. Earnings HD earnings per share were $4.09, up from $3.86 a year earlier. Analysts expected earnings of $3.69 a share. First-quarter sales climbed to … Continue reading “Home Depot Delivers Record Sales and Raises Guidance and Margins”

Walmart Earnings Hit by Inflation, Lowers Forward Guidance

Retail giant Wal-Mart on Tuesday reported worse than expected first-quarter earnings and cut its full-year profit forecast, as surging costs cut into the bottom line of the world’s biggest retailer. WMT said it sees earnings falling by around 1%, compared to a prior forecast of a 5% to 6% increase. The stock was down 7% Premarket. “Bottomline results were unexpected and reflect the unusual environment. U.S. inflation levels, particularly in food and fuel,” said CEO Doug McMillon. Walmart Inc NYSE: … Continue reading “Walmart Earnings Hit by Inflation, Lowers Forward Guidance”