Sunday, August 28, 2016
- A Southwest Airlines (NYSE:LUV) flight landed safely Saturday morning after being diverted to northern Florida following a major malfunction of one of its two engines during a flight from New Orleans to Orlando.
- Photos showed the Boeing 737's (NYSE:BA) engine inlet completely torn away, revealing extensive structural damage to the engine nacelle that hangs underneath the wing.
- CFM International, a joint venture between General Electric (NYSE:GE) and Safran (OTCPK:SAFRY), is the sole supplier of engines for the single-aisle 737.
Saturday, August 27, 2016
- Many retailers are tightening up this year by reducing their store count or converting more locations to e-commerce fulfillment centers. Analysts note that although the strategy will lower revenue, over time the group should see improved bottom lines as underperforming stores are cut back and online efficiency improves. Amid the skittish trading with chain store stocks there could be some value deals.
- Store chains that currently trade with a PE ratio below 15 and offer a dividend yield of at least 2% include: TLRD, BKE, SMRT, GPS, AEO, CHS, CATO, TGT, KSS, M, HVT, WSM, PIR, BKS, OUTR, ODP, SPLS.
- ETFs: XLY, XRT, VCR, RTH, RETL, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, JHMC, CNDF.
- Volkswagen (OTCPK:VLKAY) plans to unveil an electric vehicle at the Paris Motor Show which will get 300 miles of driving range off a single 15-minute charge.
- Though the selling specification might only be limited to available charging infrastructure with the required voltage, it's still a significant marketing point from the world's largest automaker.
- Reports indicate the Golf model-sized EV will arrive in late 2018 or early 2019.
- Earlier this summer as part of its Diesel scandal reset, Volkswagen announced a target to have 30 new EV models by 2025.
- More than 24 new EV models are due to showcased at the Paris Motor Show in October at last check, including highly-anticipated looks at new EV models from Mercedes-Benz (OTCPK:DDAIF) and the European version of the Chevy Bolt (NYSE:GM) with the Ampera-E debut.
- All the EV buzz is sure to factor in to how investors gauge long-term demand for Tesla Motors (NASDAQ:TSLA) with the Model S, Model X, Model 3, and beyond.
- An interesting side note is that Ford (NYSE:F) is skipping the Paris event. The Detroit player's launch schedule didn't justify the cost and its long-term autonomous vehicle strategy is just now being mapped out.
- Target (NYSE:TGT) makes Barron's list of 10 Best Dividend Stocks, with its 3.41% yield and 44-year streak of increasing payouts standing out. Earlier this week, SA contributor Endurance Funds noted that Target's dividend looks attractive compared to the other so-called Aristocrats.
- Shares of Target are down about 7% since the company issued a back-half warning to accompany its disappointing Q2 report (-1.1% SSS) to trade in the lower part of their 52-week range of $65.50 to $84.14.
- Investment firms are decidedly mixed on Target's prospects over the short term amid a pressured retail environment, but most see a strong opportunity for the retailer in the extended future as the smaller-format stores start to factor into results.
- Current Wall Street ratings with one-year price targets: Morgan Stanley at Sell, $64 PT; Piper Jaffray at Overweight, $86 PT; Goldman Sachs at Neutral, $74 PT; Citigroup at Buy, $80 PT; Nomura at Hold, $75 PT; Cowen and Company at Outperform, $75 PT.
- Casinos in Manila are seeing explosive growth this year.
- Revenue was up 24% Y/Y for the first six months of the year, according to data from the Philippine Amusement and Gaming Corp. CLSA says the strong run extended into July, estimating revenue growth of 25% for the month.
- A clampdown on e-gaming and solid traffic from Chinese high rollers are helping to boost results in the region.
- The Manila casino scene is dominated by City of Dreams Manila (owned by Melco Crown (NASDAQ:MPEL)), Solaire Resorts & Casino (owned by Bloomberry Resorts (OTC:BBRRF)), and Resorts World Manila (owned in part by Genting Hong Kong (OTCPK:GTHKF)).
Friday, August 26, 2016
- Cosmetics firm e.l.f. Beauty (ELF) files for an IPO of up to $100M.
- The company reported sales of $96.8M for the first six months of the year and adjusted EBITDA of $19.96M.
- From the filing: "We believe that a paradigm shift has occurred in cosmetics: today’s cosmetics consumer is increasingly connected and informed, and purchasing decisions are often influenced by friends, beauty bloggers, social media and other online content."
- SEC Form S-1
- Macquarie weighs in on the major car rental stocks in a fresh note to clients.
- The investment firm thinks Avis Budget Group (CAR +0.7%) will benefit from higher rental prices and see margins improve in Europe, while execution issues are seen continuing to plague Hertz Global (HTZ +0.3%).
- Coverage on Avis is started off at Outperform, while Hertz is set at Neutral with a $56 price target.
- Shares of Anheuser-Busch InBev (NYSE:BUD) are up 1.23% after the company tipped off that it will reduce thousands of jobs after SABMiller is absorbed.
- Perhaps as much as any large multinational, AB InBev is known for laserlike M&A efficiency as seen with both the Anheuser-Busch (2008) and Modelo (2013) deals in the past.
- Most analysts think that SABMiller shareholders are very likely to approve the merger deal when they formally vote on September 28.
- While shares of BUD have rallied a very respectable 13% over the last six months as Megabrew has headed toward the finish line, it's been beer players Molson Coors (+20%) and Craft Brew Alliance (+146%) that have seen powerful rallies.
- Atlas Air Worldwide Holdings (AAWW +5.1%) pushes higher after Stifel Nicolaus launches coverage on the stock with a Buy rating.
- Earlier this week, Atlas Air entered a five-year agreement with FedEx.
- Shares still trade on the low end of their 52-week range of $31.99 to $57.77, but are back over $38 for the first time in a few weeks.
- There are two positive trends working for J.C. Penney (JCP +0.9%) with rivals such as Macy's and Sears exiting from many malls.
- The company should see more leverage in in negotiating rent in certain malls and can lap up the extra sales from the reduced physical footprint of the department store group.
- Sephora, home furnishings, and appliances are three key areas of focus for JCP as it sticks to CEO Marvin Ellison's plan.
- Edmunds.com projects new car sales in the U.S. will increase in August to 1,553,508 units, up 1.1% M/M and down 2.5% Y/Y. The mark is high enough to keep the U.S. auto industry on pace for a record year by volume.
- Forecasts by major manufacturers are posted below.
- General Motors (NYSE:GM): -5.7% Y/Y to 255.151K units, market share of 16.6%.
- Toyota (NYSE:TM): +1.9% to 218.237K units, market share 14.2%.
- Ford (NYSE:F): -9.8% to 210.923K, market share of 13.8%.
- Fiat Chrysler Automobiles (NYSE:FCAU): +0.6% to 202.783K units, market share of 13.2%.
- Honda (NYSE:HMC): +2.5% to 159.309K units, market share 10.4%.
- Hyundai/Kia (OTC:HYMLF): +1.2% to 132.475K, market share 8.6%.
- Nissan (OTCPK:NSANY): -1.5% to 131.3579K units, market share 8.6%.
- Volkswagen/Audi (OTCPK:VLKAY): -8.7% to 46.68K, market share 3.0%.
- Diana Shipping (NYSE:DSX) announces that it has engaged financial advisors to help it negotiate with some lenders over the terms of its loan facilities.
- The company says an agreement in principle with certain lenders, including the company’s largest lender, are already in place.
- DSX -4.17% premarket to $2.30.
- Source: Press Release
- Cowen backs up its Outperform rating on Ulta Salon (NASDAQ:ULTA) after watching the retailer record another strong quarter of growth.
- Ulta Salon posted a sizzling 14.4% pace of comparable store sales growth after running up a 10% gain in the year-ago period.
- Once again, e-commerce exploded for Ulta Salon during the quarter, up 46% to $117M.
- Cowen analyst Oliver Chen boosts his price target on ULTA to $286 from $265.
- Shares of ULTA are down 2.38% premarket to $265 as investors digest the in-line guidance. It's nothing to worry about for investors long Ulta since 2014 that have watched their investment double in value.
- Cooper Standard (NYSE:CPS) announces the opening of a new headquarters and technical center in India.
- The 6K-square-foot facility will help Cooper Standard design sealing components and fuel and brake delivery products.
- "India is a key region in the automotive market, and this new facility enables us to better serve both our global customers in the region, as well as customers in the rapidly growing local market," said CEO Jeffrey Edwards.
- Cooper Standard now operates 32 facilities in the Asia Pacific region, including 11 in India, 13 in China, five in Korea, two in Japan and one in Thailand.
- Source: Press Release
- Signet Jewelers (NYSE:SIG) plans to test new technology to help it confirm the authenticity of diamonds sold by the company.
- CEO Mark Light says the system will track diamonds by their unique markings and will help create a transparent system for customers.
- Signet Jewelers' Earnings Call Transcript (Aug. 25)
- UBS sticks with a Buy rating on Dollar General (NYSE:DG) after factoring in the company's Q2 earnings report.
- The sequential slowdown in comparable sales at Home Depot, Lowe's, O'Reilly Automotive, and others makes UBS question if Dollar General's biggest problem was losing market share to Wal-Mart.
- "We expect that DG’s comp can accelerate as the overall spending environment improves. In the meantime, we think the stock has already priced in a lot of risk," writes analyst Michael Lasser.
- The investment firm lowers its price target to $92 from $101.
- Disappointing earnings reports from Dollar Tree (NASDAQ:DLTR) and Dollar General (NYSE:DG) have thrown a spotlight back on the reduced amount of benefits being paid out from the Supplemental Nutrition Assistance Program. While health care cost inflation is a major consideration for retailers with a high mix of low-income customers, the SNAP program factors in as well.
- The issue has been used by executives in the retail sector sporadically in the past as an excuse/explanation for soft sales, but it has added significance in an election year. Both Donald Trump and Hillary Clinton have promised to improve the food stamp program, although in different manners.
- The companies listed below talked about the impact of food stamps on their recent earnings conference calls.
- SpartanNash Company Earnings Call Transcript
- Alimentation Couche-Tard Earnings Call Transcript
- Papa Murphy's Earnings Call Transcript
- Dollar Tree Earnings Call Transcript
- Dollar General Earnings Call Transcript
- Related stocks: BIG, FIVE, WMT.
- Restaurant Group (OTC:RSTGY, OTC:RSTGF) is making a strong gain in London trading after the company announced it will close 33 sites, including 14 Frankie & Benny's restaurants.
- The company is also considering a sweeping pricing change initiative.
- "We will look at the pricing architecture of the menu, re-invigorate the value offer and seek to understand how we can use our supply chain relationships to price engineer more effectively," reads a Restaurant Group statement.
- Shares are up over 6% at last check.
- Macquarie initiates coverage on ManpowerGroup (NYSE:MAN) with an Outperform rating.
- Piper Jaffray reiterates an Overweight rating on the staffing stock with a price target of $85.
- ManPowerGroup's forward P/E ratio of 11.42 ranks 6th lowest out of the 25 staffing/outsourcing stocks with a market cap of over $50M.
- Performance Sports Group (NYSE:PSG) is close to locking in a deal with creditors for a 60-day extension on payments, according to the New York Post.
- Sources say the clock is ticking with the company's deal needing to be completed before August 29 to prevent a technical default.
- Shares of PSG are down 88% from their 52-week high.
- Fiesta Restaurant Group (NASDAQ:FRGI) announces that CEO Tim Taft will retire at the end of the 2016 fiscal year.
- A committee comprised of board members will commence a search for a replacement.
- Fiesta says it also will review its strategic plan, new store opening, and capital expenditure plan in light of new market dynamics and recent operating performance.
- Source: Press Release
- Susquehanna picks out some favorites from the auto retailer sector.
- The investment firm issues Positive ratings on Monro Muffler Brake (NASDAQ:MNRO), CarMax (NYSE:KMX), and Kar Auction (NYSE:KAR).
- It's a nice shot in the arm for the trio amid dramatic news in the automobile industry on self-driving car initiatives.
- Previously: Ford's self-driving car push could have major commercial implications (Aug. 16)
- Previously: Mobileye and Delphi Automotive confirm self-driving partnership (Aug. 23)
- Previously: World's first self-driving taxi service launches (Aug. 25)
- Big Lots (NYSE:BIG) reports comparable-store sales rose 0.3% in Q2.
- Gross margin rate improved 110 bps to 40.4%.
- Adjusted SG&A expense rate grew 70 bps to 34.5%.
- Adjusted operating margin rate increased 30 bps to 3.3%.
- Inventory -1.6% Y/Y to $808.63M.
- Q3 Guidance: Comparable-store sales: flat to +2% Y/Y; Adjusted EPS: -$0.04 to $0.01.
- Q4 Guidance: Comparable-store sales: flat to +2% Y/Y; Adjusted EPS: $2.18 to $2.23.
- FY2016 Guidance: Total sales: up slightly Y/Y; Comparable-store sales: +1% to +2%; Adjusted EPS: $3.45 to $3.55 (+15% to +18%); Cash flow: ~$210M.
- Around 3% of the combined workforce of Anheuser-Busch InBev (NYSE:BUD) and SABMiller (OTCPK:SBMRY) could be laid off in the three years following the completion of their merger. That 3% though, excludes sales and front-office supply staff, as AB InBev says regulatory restrictions prevent it from moving forward with integration plans at the moment.
- Combined, the two companies currently employ about 220K.
Thursday, August 25, 2016
- Ulta Salon (NASDAQ:ULTA) -1.2% AH despite posting a solid Q2 earnings and revenue beat, as investors lock in some of the stock's 77% gain over the past 12 months.
- Ulta tallied its seventh straight quarter of double-digit sales growth, as Q2 revenues rose 22% Y/Y, in-line with analyst expectations, and comp-store sales gained 14.8% vs. guidance of 12.9% growth, although the rate cooled a bit from Q1's 15.2%.
- Ulta issues in-line guidance for Q3, seeing EPS of $1.25-$1.30 vs. $1.29 analyst consensus estimate, on revenues of $1.07B-$1.09B vs. $1.08B consensus.
- For the full year, Ulta now sees EPS growth in the low 20s percentage range, up from earlier guidance of 18%-20% growth, and expects sales to rise in the high teens percentage range on same-store sales growth of 10%-12%, up from an earlier outlook for 8%-10% growth, as e-commerce sales rise 40%.
- A Texas jury finds that a General Motors (NYSE:GM) ignition switch was not to blame for a 2011 accident that killed one driver and injured another, in the company’s third trial win this year in ignition cases.
- The plaintiff claimed he lost power steering and power brakes when his ignition switch jiggled off, causing him to smash into the oncoming truck; GM told jurors the accident was caused by the plaintiff's reckless speeding on a rain-slick road.
- Hundreds of ignition switch claims remain, prompted by GM’s recall of millions of vehicles for a flaw ultimately linked to hundreds of deaths and injuries.
- GameStop (NYSE:GME) reports same-store sales plunged 11% in Q2. Sales of new video game hardware fell to 33% Y/Y during the quarter.
- Revenue mix: New video game hardware $216.4M (13.3% of total), New video game software $382M (23.4%), Pre-owned and value video game products $543M (33.3%), Video game accessories $120M (7.3%), Digital $36M (2.2%), Mobile and consumer electronics $203M (13%), Collectibles $90M (5.5%).
- The company's gross profit rate rose 500 bps to 37.9% off the shift in mix.
- GameStop expects FQ3 comparable-store sales to fall in a range of -2% to +1%. Q3 EPS of $0.53-$0.58 is expected.
- Previously: GameStop EPS in-line, misses on revenue (Aug. 25)
- GME -6.44% AH to $30.09.
- By mutual agreement, Walgreens Boots Alliance (NASDAQ:WBA) exercises warrants to purchase AmerisourceBergen (NYSE:ABC) common shares that were originally exercisable in March 2017, enabling it to acquire 22,696,912 shares for ~$1.19B. The transaction was funded with cash on hand.
- WBA now owns 56,854,867 ABC shares representing a stake of 23.9%.
- In the latest instance of partnering with a fintech firm instead of fighting it, JPMorgan (NYSE:JPM) will team with TrueCar (NASDAQ:TRUE) for Chase Auto Direct, allowing customers to shop for and then finance their new/used car on their computer or smartphone.
- The offering will initially be available to existing customers in 30 states, with further phases to be rolled out next year.
- Paper stocks are higher on word that pricing will increase in the sector. The analysis is based off a look at October contracts.
- Buckingham Research is on top of the siutuation, already tweeting that it raised price targets on International Paper (IP +4.2%), Packaging Corp of America (PKG +2.7%), and WestRock (WRK +5.3%).
- KapStone Paper and Packaging (KS +6.4%) and Clearwater Paper (CLW +1.2%) also broke higher in afternoon trading.
- Shares of ITT Educational Services (ESI -31.2%) plunge after the Department of Education announces new enforcement actions against the company in a new blog post.
- DOE actions: "We’re no longer allowing ITT to enroll new students with federal aid. In addition, in case the school’s actions cause it to close, we’re increasing the amount of cash reserves it must send us and we’re ending its installment payment plan for the amount previously required. Finally, we’re slowing down when ITT receives student aid from the government to ensure that ITT is handling its finances properly."
- Nomad Foods (NYSE:NOMD) is back on the hunt for companies to acquire, according to CEO Stefan Descheemaeker.
- The exec says mid-sized frozen foods makers in Europe are the most attractive targets for the company due to the synergies they could deliver.
- Nomad picked up foods assets from Findus Sverige AB last year.
- Volkswagen (OTCPK:VLKAY) is expected to announce later today that it struck a deal with U.S. dealers to compensate them for losses from the emissions cheating scandal.
- Dealers in the U.S. have paid a heavy price for the placement of cheating devices in diesel models by the German automaker.
- Terms of the financial settlement are likely to be withheld until a future date.
- Tilly's (TLYS +7.5%) rallies after surprising on the upside with Q2 results.
- "Our second quarter comp sales and operating income exceeded our outlook ranges and we ended the quarter with inventory down 7% on a per square foot basis," summed up CEO Ed Thomas.
- Tilly's expanded its margin rates during the quarter, despite only a 0.9% in gain comparable sales.
- Shares of tilly's are at their highest level since mid-March.
- Previously: Tilly's beats by $0.08, beats on revenue (Aug. 24)
- The Oakland Raiders filed several trademark applications with the USPTO using "Las Vegas Raiders" in the phrasing.
- A move by the Raiders to Vegas is of high interest to Las Vegas Sands (NYSE:LVS) which is backing a domed stadium proposal and to MGM Resorts (NYSE:MGM) with its high mix of Strip properties.
- The two casinos closest to the proposed stadium site off the Strip are the MGM Grand and the Tropicana Las Vegas owned by Penn National Gaming (NASDAQ:PENN).
- Related ETF: BJK
- The Department of Justice appealed a ruling from a federal judge that blocked proposed casino development on land owned by Indian tribe Mashpee Wampanoag.
- The $1B First Light Resort and Casino will be run by Genting Malaysia (OTCPK:GMALF) if it is developed.
- The issue boils down to if federal jurisdiction for the Mashpee Wampanoag reservation applies to the area near Boston where the casino is scheduled to be built.
- The Mashpee Wampanoag were acknowledged as a federally recognized tribe again in 2007 and now hold full tribal sovereignty rights.
- Wynn Resorts (WYNN +0.9%) also has plans for a casino in the Boston market. The Wynn Everett is scheduled to be opened in 2019.
- Janney Montgomery Scott backs a bullish view on Six Flags Entertainment (SIX +0.1%) by reiterating its Buy rating.
- The investment firm sets a fair value mark of $64 on the theme park stock.
- Earlier this week, Oppenheimer stood by its Outperform rating and $64 PT on SIX.
- Shares of Six Flags are down 20% from their 52-week high of $62.39 seen in April.
- Phillips-Van Heusen (PVH +1.2%) is higher after the company flew past estimates with its Q2 report.
- The company kept a lid on costs and sales for Calvin Kein North America were notably improved during the quarter.
- PVH now sees FY16 EPS falling in a range of $6.55 to $6.65, up from prior guidance of $6.45 to $6.55.
- A common theory from analysts is that dollar stores are in the sweet spot of retail - somewhat shielded from the Amazon Effect and geared toward a demographic in which consumers are seeing a meaningful benefit from higher wages and low gas prices.
- That premise could be questioned after discounters Dollar Tree (DLTR -6.9%) and Dollar General (DG -10.8%) both disappointed with their Q2 earnings and were perhaps surprisingly outperformed by retail giant Wal-Mart (WMT +0.2%).
- Though the reporting periods don't match up exactly, Wal-Mart showed a 1.6% increase in U.S. comparable sales in Q2 to top Dollar General's 0.7% mark and Dollar Tree's 1.2% pace. It should be noted that at Wal-Mart's scale every basis point of comp gain means a significant amount of extra revenue to help lever down costs.
- In early trading, Five Below (FIVE -3.7%) and Big Lots (BIG -3.4%) are both lower due to the dollar store earnings disappointment.
- Signet (NYSE:SIG) announces that affiliates of Leonard Gren & Partners will purchase $625M worth of convertible preferred shares. The transaction is expected to close in Q3.
- The company plans to add the proceeds from the PE firm to its buyback allowance which will take it to $1.1B.
- Previously: Signet misses by $0.31, misses on revenue (Aug. 25)
- Previously: Signet sinks after weak results and guidance cut (Aug. 25)
- Shares of Signet are down 9.95% premarket to $85.95, recovering somewhat from the early post-earnings slide.
- Sears Holdings (NASDAQ:SHLD) says it took on $300M in debt financing from the hedge fund owned by CEO Eddie Lampert.
- The company previously disclosed that ESL Investments kicked in $125M of an initial $250M loan.
- In another development, Sears says it has received interest from retailers and manufacturers for the Sears Home Services business and the unit that holds Kenmore, Craftsman, and DieHard.
- Over the last five years shares of Sears have lost 74% of their value, while other large chains such as Wal-Mart (+37%), Macy's (+64%), Target (+41%), and L Brands (+112%) have adjusted their models more successfully.
- Sears saw another drop in margin rates during Q2, despite the trimming of select stores seen as underperforming. A "challenging" retail environment was cited again.
- Previously: Sears Holdings beats by $1.45, beats on revenue (Aug. 25)
- Previously: More on Sears Holdings' Q2 (Aug. 25)
- SHLD -5.44% premarket to $13.90.
- Execs with Express (NYSE:EXPR) had to take their lumps during the company's conference call after a weak report on sales. One of the problems the retailer had was it aimed too low with its targeted demographic as higher sales to the 18 to 21 years old group were more than offset by a decline in the 20 to 30 years old group.
- "While our fashion attracted more customers at the lower end of our target demographic age group, this was more than offset by a decline at the upper end," said CEO David Kornberg.
- "We have to get back to who our core customer is in terms of our grow projection and we have to get her back into the store," he added.
- EXPR -0.59% premarket to $11.87.
- Express conference call transcript
- Previously: Multi-year low for Express after earnings misfire (Aug. 24)
- Burlington Stores (NYSE:BURL) reports comparable-store sales rose 5.4% in Q2.
- Gross margin rate up 40 bps to 39.6%.
- SG&A expense rate improved 110 bps to 27.3%.
- Adjusted EBITDA increased 31.4% to $99.1M.
- Merchandise Inventories -7.1% Y/Y to $745M.
- Q3 Guidance: Net sales: +7.1% to +8.1%; Comparable-store sales: +2.5% to +3.5%; Adjusted diluted EPS: $0.30 to $0.32; Fully diluted share count: ~72M.
- FY2016 Guidance: Net sales: +7.8% to +8.3%; Comparable-store sales: +3.6% to +4.1%; Adjusted EBITDA margin: +50 bps to +60 bps; Interest expense: ~$59M; Adjusted diluted EPS: $2.92 to $2.96; Fully diluted share count: ~72.1M; Net new stores: 25.
- BURL +3.18% premarket.
- Singapore became the first country in the world to offer a self-driving taxi service with the targeted launch of nuTonomy. A full roll-out of an autonomous taxi service across the nation is expected as early as 2018.
- While self-driving cars from Google (GOOG, GOOGL), Baidu (NASDAQ:BIDU), and others have been out testing on the roads for the last few years, nuTonomy's service is the first commercial application of the nascent technology open to public use. Uber (Private:UBER) plans to test self-driving cars in Pittsburgh next month.
- NuTonomy will use human drivers as backups in the initial roll-out of the Renault (OTC:RNSDF, OTCPK:RNLSY) Zoe and Mitusubishi (OTCPK:MMTOF) i-MiEV taxis before moving to full autonomy.
- Other companies with autonomous vehicles on their radar include Mobileye (NYSE:MBLY), Delphi Automotive (NYSE:DLPH), Volvo (OTCPK:GELYF), Ford (NYSE:F), Tesla Motors (NASDAQ:TSLA), Toyota (NYSE:TM), Hertz Global (NYSE:HTZ), Avis Budget (NASDAQ:CAR), Nissan (OTCPK:NSANY), BMW (BAMXY), Intel (NASDAQ:INTC), Honda (NYSE:HMC), FedEx (NYSE:FDX), Lyft (Private:LYFT), and General Motors (NYSE:GM) to name just a partial list -- although analyzing which stocks may benefit from a future of a mix of self-driving cars on the road is a tricky business.
- Previously: Scientists warn on self-driving car rush (July 8)
- Previously: Self-driving car push adds a little buzz for restaurants (Aug. 6)
- Tiffany (NYSE:TIF) reports net sales declined 6% in Q2 on a constant currency basis.
- Comparable-store sales fell 8% Y/Y.
- Geographic revenue growth: Americas: $434M (-9%); Asia-Pacific: $230M (-6%); Japan: $138M (+10%); Europe: $111M (-12%); Other: $18M (-3%).
- Gross margin rate improved 200 bps to 61.9%.
- SG&A expense rate rose 80 bps to 43.2%.
- Operating margin expanded 140 bps to 18.8%.
- Inventory -1.4% to $2.32B.
- Store count +7 Y/Y to 311.
- FY2016 Guidance: Net sales: decline by a low single-digit percentage; Diluted EPS: decline by a mid-single-digit percentage; Free cash flow: at least $400M; Capex: $260M.
- TIF +3.11% premarket.
- Vista Outdoor (NYSE:VSTO) approves a new repurchase program for up to $100M of the company's common stock.
- "We recently completed our previously approved $200 million share repurchase program, and we are committed to creating long-term value for our shareholders by repurchasing shares as part of a balanced capital deployment strategy," said Chairman/CEO Mark DeYoung.
- Source: Press Release
- Shares of Netflix (NASDAQ:NFLX) are on watch after William Blair upgrades to an Outperform rating after having the streamer set at Market Perform.
- The investment firm assigns a lofty price target of $145 and makes the bull case pitch of a run to as high as $185.
- NFLX is up 0.89% premarket to $96.03.
- Guess (NYSE:GES) pops in early trading after surprising on the bottom line. The results were strong enough to prompt a reset from a pair of investment firms.
- B. Riley upgrades Guess to a Buy rating from Neutral after digesting the Q2 results.
- Telsey Advisory Group boosts its price target to $17.
- Guess reported that operating margin during the quarter decreased 190 basis points to 2.9%, but analysts expected an even sharper drop. The retailer raised full-year guidance for EPS to $0.79-$0.92 vs. $0.48-$0.68 prior.
- Previously: Guess beats by $0.07, misses on revenue (Aug. 24)
- Shares of Guess are up 18.86% premarket to $17.71.
- Destination XL Group (NASDAQ:DXLG) reports comparable-store sales increased 2% during Q2.
- Comparable sales were up 4.6% for the DXL retail store chain. Total transactions in DXL stores were up 3.2% Y/Y.
- Gross margin rate fell back 70 bps during the quarter to 46.5%.
- The company's merchandise margin rate plunged 110 bps, while occupancy costs as a percentage of sales improved by 40 bps.
- SG&A expense rate +100 bps to 39.3%.
- EBITDA $8.5M vs. $6.8M a year ago.
- Inventory was $121.3M at the end of the quarter vs. $123.6M last year.
- Store count +8 Y/Y to 353.
- FY2016 Guidance: Total sales: $457M to $463M; Total comp sales: +2.0% to +4.0%; Gross margin rate: 46.2% to 46.5%; EBITDA: $31M to $35M; EPS: -$0.05 to $0; Capex: ~$30M.
- Previously: Destination XL misses on revenue (Aug. 25)
- Signet (NYSE:SIG) reports same-store sales fell 2.3% in Q4.
- Comp growth by brand: Kay -0.5%, Jared -7.6%, Sterling -3.1%, Zales (total) -1.7%, Zales US Jewelry -2.2%, H.Samuel -0.4%, Ernest Jones +1.9%, UK Jewellers division +0.8%.
- Adjusted gross margin rate down 130 bps Y/Y to 34.0%.
- Adjusted SG&A expense rate was up 50 bps to 29.7%.
- Adjusted operating margin rate rose 150 bps to 8.7%.
- Net inventory flat at $2.4B.
- Store count +7 Y/Y to 3,625.
- FY17 Guidance: Same-store sales: -2.5% to -1.0%; EPS: $7.25 to $7.55; Net selling square footage growth +3.0% to +3.5%.
- Previously: Signet misses by $0.31, misses on revenue (Aug. 25)
- SIG -14.14% premarket to $82.00.
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