Categories
World News

China’s exports in August beat expectations

SINGAPORE – Asia Pacific stocks were mixed in trading on Tuesday as data showed China’s August trading data was above expectations.

The Shanghai composite in mainland China gained 0.77%, while the Shenzhen share rose 0.398%.

China’s exports rose 25.6% yoy in August, customs data on Tuesday showed – above analysts’ expectations in a Reuters poll of 17.1%.

Hong Kong’s Hang Seng index gained 0.61%.

The stocks of retailers listed in the city surged after Bloomberg reported that Hong Kong will allow quarantine-free entry to mainland visitors from September 15. Chow Sang Sang rose 3.8% while Giordano International rose 2.6% and Sa Sa International rose 5.26%.

Japan’s Nikkei 225 rose 0.86% while the Topix index rose 1%, with the country’s stocks continuing to climb after two consecutive days of trading with solid gains. This comes as investor sentiment is bolstered by the prospect of further stimulus reportedly being called for by Prime Minister candidate Fumio Kishida.

Elsewhere, the South Korean Kospi lost 0.7% while the S & P / ASX 200 in Australia lost 0.24%.

MSCI’s broadest index for Asia Pacific stocks outside of Japan was below the flatline.

Elsewhere, the South Korean Kospi lost 0.7% while the S & P / ASX 200 in Australia lost 0.24%.

MSCI’s broadest index for Asia Pacific stocks outside of Japan was below the flatline.

RBA rate decision

The Reserve Bank of Australia announced on Tuesday that it would stick to its cash rate target.

In a statement, Australia’s Central Bank Governor Philip Lowe also said the RBA will buy bonds at a price of A $ 4 billion (about $ 2.98 billion) a week until at least February 2022.

In August, when the plan was announced to reduce bond purchases from A $ 5 billion to A $ 4 billion in early September, Lowe had announced that the new weekly bond purchases would last at least until mid-November.

Following that announcement, the Australian dollar changed hands at $ 0.7449 from an earlier low of $ 0.7431.

CNBC Pro’s Stock Picks and Investment Trends:

Markets in the US were closed on Monday for a public holiday.

Currencies and oil

The US dollar index, which tracks the greenback versus a basket of its peers, came in at 92.126, still off the 92.4 level it hit last week.

The Japanese yen was trading at 109.78 the dollar, stronger than the 110.1 levels seen against the greenback last week.

Oil prices were mixed on the afternoon of Asian trading hours, with the international benchmark Brent crude oil futures rising 0.47% to $ 72.56 a barrel. U.S. crude oil futures declined 0.19% to $ 69.16 a barrel.

Categories
World News

Virgin Galactic to launch Richard Branson on July 11, aiming to beat Jeff Bezos to house

The founder of Virgin, Sir Richard Branson, in Sydney, Australia.

James D. Morgan | Getty Images

Virgin Galactic announced Thursday that the space tourism company will attempt to launch its next test space flight with founder Sir Richard Branson on July 11th.

Branson wants to knock his billionaire Jeff Bezos into space, because he wants to start his own company Blue Origin on July 20th.

“After more than 16 years of research, development and testing, Virgin Galactic is at the forefront of a new commercial space industry that will open space to mankind and change the world forever,” Branson said in a statement. “I am honored to confirm the journey of our future astronauts and make sure we deliver the unique customer experience that people have come to expect from Virgin.”

This will be Virgin Galactic’s fourth test space flight to date and its first mission with a crew of four on board as the company launched its final space flight on May 22 with just two pilots.

Virgin Galactic’s shares rose 20% during after-hours trading, from $ 43.19 on Thursday’s closing.

In addition to Branson, three Virgin Galactic mission specialists will be present: Chief Astronaut Instructor Beth Moses, Senior Operations Engineer Colin Bennett, and VP of Government Affairs Sirisha Bandla. Virgin Galactic pilots Dave Mackay and Michael Masucci will fly the company’s VSS Unity spacecraft.

Virgin Galactic says it will live stream the space flight for the first time, a feed that will be available on Twitter, YouTube and Facebook.

On June 25, the company announced that the Federal Aviation Administration had granted a license to fly passengers on future space flights and Virgin plans to begin flying paying passengers in early 2022.

Branson founded Virgin Galactic in 2004 to build a space tourism company. The company’s spacecraft takes off from a carrier aircraft before accelerating to more than three times the speed of sound.

The Virgin Galactic spacecraft then spends a few minutes in weightlessness over 50 miles (80 kilometers) – the limit the US officially recognizes as space – before slowly turning around and sliding back to Earth to land on a runway.

Virgin Galactic only competes with Bezos’ Blue Origin in suborbital space tourism, as Elon Musk’s SpaceX puts passengers into orbit on longer journeys, such as to the International Space Station.

In June, Bezos announced that it would be flying Blue Origin’s first passenger flight on the New Shepard rocket. Bezos is slated to hit the market on July 20 and will fly with his brother Mark, winner of a $ 28 million public auction, and legendary aerospace pioneer Wally Funk.

This is the latest news. Please check again for updates.

Categories
Business

L Manufacturers (LB) Q1 2021 earnings beat

Shoppers walk past a Victoria’s Secret store in a mall in San Diego, Calif., On April 22, 2021.

Bing Guan | Bloomberg | Getty Images

Victoria’s secret parent company L Brands reported first-quarter earnings and sales that beat analysts’ estimates on Wednesday.

The stock recently fell more than 1% in extended trading.

Here’s how the company performed for the quarter ended May 1, compared to analyst expectations based on a refinitive survey:

  • Earnings per share: $ 1.25 adjusted versus $ 1.21 expected
  • Revenue: $ 3.02 billion versus $ 3.01 billion expected

Net income rose to $ 276.6 million, or 97 cents per share, compared to a loss of $ 296.9 million, or $ 1.07 per share, last year. With no one-time expense, L Brands earned $ 1.25 per share, beating analysts’ forecast $ 1.21.

Total revenue increased more than 80% from $ 1.65 billion a year ago to $ 3.02 billion. That surpassed the estimates for $ 3.01 billion.

Total revenue in the same store increased 21% year over year, compared to a 4% increase in the same period last year.

At Victoria’s Secret, sales in the same store rose 25%, compared to a 15% decrease last year. Sales in the same store at Bath & Body Works rose 16%, compared to a 41% increase last year when many consumers stocked up on hand sanitizer at the start of the Covid pandemic.

According to L Brands, sales increased during the quarter thanks to stimulus checks and relaxed pandemic restrictions in stores. While it’s difficult to quantify the exact benefits of government incentives, the company estimated that the payouts increased sales by about $ 125 million – a benefit of $ 50 million at Bath & Body Works and $ 75 million at Victoria’s Secret.

The company had previously announced its first quarter expectations and raised them several times, citing the continued increased momentum of its lingerie brand Victoria’s Secret.

Management said in prepared notes released Wednesday that customers at Victoria’s Secret have responded “positively” to new merchandise, including marketing of its first-ever Mother’s Day campaign with a pregnant model.

“We are starting to tell the story of our repositioning of our brand through our marketing,” said the company.

Victoria’s Secret has long had a dominant market share in the lingerie industry but fell out of favor due to its overtly sexy marketing that avoided certain body types. That marketing message wasn’t working for many women and they had started shopping at other brands like American Eagle’s Aerie that included inclusivity and convenience. Victoria’s Secret had to spin to meet their needs.

By the fall, L Brands will spin off its Victoria’s Secret business into its own publicly traded company and said it would not make a forecast for the rest of the year.

The company also appointed the new CFOs for the two new companies. Wendy Arlin, currently Senior Vice President Finance and Controller at L Brands, will become CFO of Bath & Body Works. Former Big Lots CFO Tim Johnson becomes Victoria’s secret CFO.

For the second quarter, L Brands is calling for adjusted earnings per share in a range of 80 cents to $ 1. According to Refinitiv, analysts were looking for 76 cents per share.

It is forecast that Q2 sales will increase between 10% and 15% compared to 2019.

According to L Brands, the split will allow both brands to focus more on growth and have greater financial flexibility to adapt to a changing retail landscape. It had either considered a spin-off or a sale, but said the spin-off was the best option for the company to achieve the highest value.

At the close of trading on Wednesday, L Brands shares were up around 82% since the start of the year. The company has a market capitalization of $ 18.8 billion.

The full press release from L Brands can be found here.

Categories
Business

Goal (TGT) Q1 2021 earnings beat estimates, gross sales bounce 23%

According to Target, fiscal first quarter revenue rose 23% on Wednesday as investments in exclusive brands and services like roadside pickup fueled customer loyalty and kept bringing them back.

The retailer also said it was benefiting from rising vaccination rates, a reopening economy and busier social calendars: shoppers were excited about new goods, especially clothing. Some rummaged in the shops again.

“We’re seeing a much more optimistic consumer who is excited to get back to the life they didn’t live last year,” said CEO Brian Cornell in an interview on CNBC’s Squawk Box.

Carried by that confidence, Target offered a second-quarter forecast that was well above Wall Street’s expectations, despite difficult comparisons to be made from last year.

Other retailers, including Walmart, Home Depot, and Macy’s, also had surprisingly strong results in the first quarter. Companies have partially attributed growth in sales to customers having more money in their pockets from stimulus checks. Walmart and Macy’s said customers buy items like luggage and teeth whiteners when they travel and go back to parties. But they haven’t stopped investing in their homes yet, which was a trend that started last year.

However, Target had unique benefits prior to the pandemic that kept its business going during the health crisis. It fulfills almost all of its in-store online orders, which improved the company’s profits. Numerous private labels have been introduced and expanded that set it apart from its competitors. And it has been ahead of other retailers when it comes to raising employee wages, which has held off a labor crisis and cleaned up stores.

Shares rose around 2% in premarket trading on Wednesday.

The following was what Target reported for the fiscal first quarter ended May 1 compared to its refinitive consensus estimates:

  • Earnings per share: $ 3.69 adjusted versus $ 2.25 expected
  • Revenue: $ 24.20 billion versus $ 21.81 billion expected

Net income rose to $ 2.1 billion, or $ 4.17 per share, from $ 284 million, or 56 cents per share last year. Excluding items, the retailer made $ 3.69 per share, more than analysts surveyed by Refinitiv expected $ 2.25 per share.

The more than sevenfold increase in net income compared to the previous year was due to several factors. In the early days of the pandemic, Target saw profits slump and labor costs spike as customers skipped high-margin merchandise like apparel and accessories and employees took on new responsibilities from extra cleaning the store to picking online orders.

Buyers are again spending more on apparel and housewares, and Target has increased sales of its own private label products.

Total revenue increased 23% year over year to $ 24.2 billion, beating analysts’ expectations of $ 21.81 billion.

Gain market share

The retailer said it continued to attract new customers and encourage them to spend more. It said it increased Market share of $ 1 billion over the three months, in addition to the market share of $ 9 billion in the last fiscal year. It cited internal and external research.

In the stores and on Target’s website, traffic over the three-month period increased 17% year-over-year and the shopping cart size increased 5%.

Like-for-like sales, a key metric that measures sales in stores that are open for at least 13 months and online, increased 22.9% year over year. This was significantly more than the 10.7% that analysts had expected in a StreetAccount survey. Sales from comparable stores increased 18% while sales from comparable digital stores increased 50%.

Roadside and in-store pickup and home delivery were popular options during the pandemic for safety reasons, but remain in demand for their convenience. Same-day service revenue grew more than 90% over the three-month period, led by Drive Up revenue growth of 123%. In-store pickup sales increased 52% while shipments increased 86%.

Apparel was Target’s strongest merchandise group for the quarter. Sales increased by more than 60% compared to the same period in the previous year. Hardlines, a category that includes items such as consumer electronics and exercise equipment, grew in the high range of 30% and home sales grew in the mid-range of 30%. Beauty product sales increased by a large percentage to teenagers. Food and beverage and the essentials – two categories that were particularly strong at the height of the pandemic – saw low to mid-single-digit growth.

The strength of the apparel was partly due to its weakness the year before when customers focused on stocking up on groceries and detergents rather than buying a new outfit.

A key part of Target’s strategy was to offer products that were only available in stores. In February, Target announced that its activewear brand All in Motion was the latest private label to reach $ 1 billion in sales. In the first quarter, sales of own brands increased by 36% compared to the same period of the previous year – the strongest jump in the company’s history.

Ready to party

Cornell produced other bright spots: he said Mother’s Day inspired shopping and was one of the strongest in years. He said he expects similar excitement from customers as they prepare for summer vacation like Memorial Day and prepare to return to the classroom or college campus.

The discounter shared a forecast of modest year-over-year growth, despite facing tough year-on-year comparisons due to unusually high sales during the pandemic. Comparable sales are expected to grow mid to high single digits in the second quarter and single digits in the last two quarters of the year.

Michael Fiddelke, Chief Financial Officer of Target, said the retailer is on track to invest around $ 4 billion this year to improve the customer experience and increase in-store presence. Among those investments, he said it would increase working hours to ensure store shelves are well stocked, open 30 to 40 new stores, remodel around 150 stores, and allow customers to pick up wine or beer in by roadside pickup most of its businesses.

Read the company’s press release here.

Categories
Business

Walmart (WMT) Q1 2022 earnings beat

People talk outside a Wal-Mart pickup grocery store in Bentonville, Arkansas.

Rick Wilking | Reuters

Walmart reported first quarter earnings above Wall Street estimates on Tuesday as the company saw strong grocery sales, strong ecommerce growth and raised its outlook for the year.

In premarket trading, shares rose by more than 3%.

The big box retailer said more shoppers have gone to its stores and website to do stimulus checks and prepare to reconnect if Covid cases drop and vaccination rates go up.

US ecommerce sales rose 37% as consumers returned to more normal activities.

Brett Biggs, Walmart’s chief financial officer, said in an interview that the company sees “pent-up demand” and expects it to continue. He said customers are still buying items that were popular during the pandemic, like bikes and printers, but have also started buying things like teeth whiteners when they take off their masks.

“You can say that people are slowly coming out,” he said.

The company has raised its outlook for the fiscal year. Walmart US earnings per share and operating income are expected to increase in the high single digits. It reiterated its forecast that Walmart US and Sam’s Club sales in the same business will grow in the low single digits excluding fuel and tobacco.

“Stimulus helped in the first quarter, and that’s why we’ve raised our earnings and sales guidance,” said Biggs. He said the company had also improved its outlook based on developments in the second quarter.

For the first quarter ended April 30, the company reported the following compared to consensus refinitive estimates:

  • Earnings per share: $ 1.69 adjusted versus $ 1.21 expected
  • Revenue: $ 138.31 billion versus $ 131.97 billion expected

For the quarter, net income rose from $ 3.99 billion, or $ 1.40 per share, to $ 2.73 billion, or 97 cents per share, in the prior year, according to Walmart. Excluding items, the company made $ 1.69 per share. According to Refinitiv, analysts had expected Walmart to make $ 1.21 per share.

Total revenue increased nearly 3% to $ 138.31 billion from $ 134.62 billion last year, and exceeded that figure Wall Street’s expectations of $ 131.97 billion.

Walmart’s sales in the same store in the US rose 6%, above the 0.9% increase expected by analysts surveyed by StreetAccount. The company said those grocery sales got a boost as it gained market share. Transactions were down 3.2%, but average ticket growth was up 9.5%.

Walmart subsidiary Sam’s Club sales in the same store rose 7.2% excluding fuel – more than the 1.2% growth forecast by analysts. The company said warehouse club membership had also hit an all-time high.

Walmart International’s net sales were $ 27.3 billion, down 8.3% year over year, partly due to the company divesting portions of its global business. However, e-commerce sales in this segment rose 49%. The company recently sold Asda, a UK supermarket chain, and a majority stake in Seiyu, a Japanese supermarket chain.

Read the company’s press release here.

Categories
Health

How the USA Beat the Coronavirus Variants, for Now

On December 29, a National Guard in Colorado became the first known case in the United States of a contagious new variant of the coronavirus.

The news was unsettling. The variant, named B.1.1.7, had upset Britain, began to grow in Europe, and threatened to do the same in the United States. And while scientists didn’t know it yet, other mutants began popping up across the country. These included variants that had ravaged South Africa and Brazil that appeared to bypass the immune system, as well as others that were native to California, Oregon, and New York.

This mixture of variants could not have come at a worse time. The nation was at the beginning of a spate of post-vacation cases that would dwarf any previous waves. And the spread of powerful vaccines from Moderna and Pfizer-BioNTech has been botched by chaos and misunderstandings. Scientists warned that the variants – and especially B.1.1.7 – could lead to a fourth wave and that the already strained health system could give way.

That didn’t happen. B.1.1.7 became the predominant version of the virus in the United States and now accounts for nearly three quarters of all cases. But the surge experts feared they were just a slip-up in most of the country. The nationwide total daily new cases began to decline in April and is now down more than 85 percent from horrific highs in January.

“It’s pretty humble,” said Kristian Andersen, a virologist at Scripps Research in La Jolla, California.

Dr. Andersen and other virus watchers still see variants as a potential source of problems in the coming months – especially one that has ravaged Brazil and is growing rapidly in 17 US states. But they are also taking stock of the past few months to better understand how the nation has evaded the variant threat.

Experts point to a combination of factors – masks, social distancing, and other restrictions, and possibly a seasonal decline in infections – that gave tens of millions of Americans crucial time to vaccinate. They also attribute a good dose of serendipity as B.1.1.7 is powerless against the vaccines unlike some of its competitors.

“I think we were lucky to be honest,” said Nathan Grubaugh, an epidemiologist at Yale University. “We are saved by the vaccine.”

After B.1.1.7 appeared at the end of December, new variants with combinations of disruptive mutations came to light. Scientists worried about how competition between the variants might develop.

In January, researchers in California discovered a variant with 10 mutations that was becoming more common there and drifting to other states. Laboratory experiments suggested that the variant of antibody treatment that had worked well against previous forms of the virus could be evaded, and that it was possibly more contagious as well.

In the months that followed, the United States dramatically improved its surveillance for the mutation of the variants. Last week, more than 28,800 virus genomes, nearly 10 percent of all positive test cases, were uploaded to an international online database called GISAID. This clearer picture has allowed scientists to observe how the mutants compete with each other.

The California variant proved a weak competitor, and its numbers fell sharply in February and March. It’s still common in parts of northern California, but it has virtually disappeared from the southern parts of the state and never gained a foothold anywhere else in the country. As of April 24, it made up only 3.2 percent of all virus samples tested in the country, while B.1.1.7 rose to 66 percent.

“B.1.1.7 went to knockout and it’s like ‘Bye bye, California variant’,” said Dr. Andersen.

Across the country, researchers reported in February that a variant called B.1.526 spread quickly in New York and appeared to be a formidable opponent for B.1.1.7. By February, each of these variants was down to about 35 percent of the Dr. Grubaugh’s Connecticut laboratory has grown. But B.1.1.7 has the edge.

Updated

May 16, 2021, 6:13 p.m. ET

In fact, B.1.1.7 seems to have an advantage over almost every variant identified so far. At a congressional hearing on Tuesday, Dr. Rochelle P. Walensky, director of the Centers for Disease Control and Prevention, that B.1.1.7 accounts for 72 percent of cases in the country.

“We really see how B.1.1.7 decisively pushes out other variants,” said Emma Hodcroft, epidemiologist at the University of Bern.

The variants identified in California and New York were found to be only moderately more contagious than older versions of the virus, and much of their initial success may have been luck. The general boom in cases last fall exacerbated what might otherwise have gone undetected.

It is unclear what gives B.1.1.7 an advantage over the others. “Is it the largest of all the variants? It’s hard to tell right now, ”said Angela Rasmussen, virologist at the University of Saskatchewan’s Vaccines and Infectious Diseases Organization. “We need more research to find out what all these combinations of mutations do.” Some of the answers may come from California, where researchers are holding a head-to-head competition in a laboratory and injecting mice with a cocktail of B.1.1.7 and six other variants.

“The idea is to see who will prevail,” said Dr. Charles Chiu, a virologist at the University of California at San Francisco, who was the first scientist to discover the California variant.

In Michigan, one of the few states to see an increase in projected cases this spring, B.1.1.7 found a catch in younger people returning to school and engaging in contact sports.

“Because it’s more transmissible, the virus finds behavioral cracks that normally wouldn’t have been as problematic,” said Emily Martin, an epidemiologist at the University of Michigan.

But in the rest of the country, of course, people became more cautious when faced with the terrible numbers of the virus after the holidays. B.1.1.7 is thought to be about 60 percent more contagious than previous forms of the virus, but the way it spreads is no different. Most states had at least partial restrictions on indoor eating and introduced mask mandates.

“B.1.1.7 is more transferable but cannot jump through a mask,” said Dr. Hodcroft. “So we can still stop its spread.”

However, other experts are still concerned about how much the virus appears to have defied predictions.

“I can’t necessarily attribute it to behavior,” said Sarah Cobey, an evolutionary biologist at the University of Chicago. Respiratory viruses sometimes go through seasonal cycles, but it’s not clear why the coronavirus cycle would have caused it to go back in the middle of winter. “That might make me even more ignorant,” she said.

It is also puzzling why variants that have beaten other countries have not yet become widespread in the United States. B. 1,351 rapidly dominated South Africa and several other African countries late last year. It was first reported in the US on January 28, but it still only accounts for 1 percent of the cases. This may be because it is not ahead of the rapidly expanding B.1.1.7.

“I think that’s because it doesn’t really have much of a transmission benefit,” said William Hanage, an epidemiologist at Harvard TH Chan School of Public Health.

P.1, a variant that is devastating Brazil, got off to a sluggish start in the US but is now estimated to account for more than 10 percent of the country’s cases.

“I think it is a matter of time before the P.1 variant becomes one of the most widespread in the US,” warned Dr. André Ricardo Ribas Freitas, a medical epidemiologist at the Faculdade São Leopoldo Mandic in Brazil.

Still, Nels Elde, an evolutionary biologist at the University of Utah, said the events of the past four months had raised questions about whether it was worth fretting over different variations rather than focusing on the behaviors that can limit them all.

“We split the hair between a handful of mutations here and there, we lost perspective,” he said. “It’s catnip for an inquisitive mind.”

The United States also has a plethora of powerful vaccines that make variants an academic problem rather than a concern for the average person. The vaccines may be slightly less effective against the variants identified in South Africa and Brazil, but prevent serious illness in all known variants.

It is not impossible that the situation could get worse. Only about 35 percent of people in the United States are fully immunized, and protection from the vaccines could wear off by winter. Nobody knows how variants that appear in other parts of the world, like one that has grown in importance in India and is circulating at a low level in the US, will behave here. And even more variants will inevitably appear in places where the virus is widespread, warned Dr. Cobey: “There is still a lot to be done.”

Categories
Business

Altria (MO) Q1 2021 earnings beat

A Philip Morris Marlboro cigarette burns in an ashtray for this arranged photo in Tiskilwa, Ill. On Wednesday, July 12, 2017.

Daniel Acker | Bloomberg | Getty Images

Altria’s earnings declined in the first quarter as sales fell below estimates and cigarette shipments continued to decline.

The parent company of Marlboro Cigarettes has turned its business away from traditional tobacco products and announced it will acquire the remaining 20% ​​stake in On, a nicotine pouch product.

The company’s stock fell 1.1% in late morning trading.

The company reported for the first quarter, versus Wall Street expectations, based on an analyst survey by Refinitiv:

  • Earnings per share: $ 1.07 adjusted versus $ 1.05 expected
  • Revenue: $ 4.88 billion excluding excise taxes versus $ 4.98 billion expected

Net income declined from $ 1.55 billion, or 83 cents per share last year, to $ 1.42 billion, or 77 cents per share.

Excluding items, Altria earned $ 1.07 per share, beating the analysts surveyed by Refinitiv who expected it to be $ 1.05 per share.

Revenue decreased 5.1% from $ 6.36 billion a year ago to $ 6.04 billion. However, after excise taxes, sales came in at $ 4.88 billion, falling short of what analysts had expected to be $ 4.98 billion.

Total cigarette shipments to wholesalers decreased 12% year over year. However, Altria estimates that cigarette industry shipments were down 2% in the quarter, unchanged from last year’s levels.

Altria again lowered the value of its Juul Vaping brand, this time trading its value around $ 200 million. The company said the fair value of its stake, which it acquired for $ 12.8 billion in December 2018, was $ 1.5 billion at the end of March.

Although the overall vaping category is up 24% year over year, Juul’s retail share is down 6% year over year to 33% of the category, according to the company.

“Against a challenging comparison, our tobacco businesses performed well in the first quarter and we made further progress in developing our non-combustible portfolio,” said CEO Billy Gifford.

Gifford also attributed part of that success to the trends the pandemic brought with it when people were able to smoke more easily at home throughout the day.

“You also have the compensation, you have the government incentives that just came out and we’ll see how consumers feel about when their mobility has increased and what other areas of discretionary spending they could use those incentives for,” added he added a conference call.

Altria and other tobacco companies could face a tougher regulatory environment. On Thursday, the Food and Drug Administration, which regulates tobacco products in the United States, announced a ban on menthol-flavored cigarettes. Menthol cigarettes were often used disproportionately by colored people. The vast majority of black smokers consume menthol cigarettes, and black men have the highest rate of lung cancer deaths in the United States

Altria has a 26% share of the menthol market, which accounts for about a third of all cigarettes sold in the United States. According to a recent report by Bernstein analyst Callum Elliott, around 17% of Altria’s cigarette volume falls into this category.

In addition, the Biden government announced last week that it was considering putting nicotine levels in cigarettes.

All of these potential changes are in the very early stages and are likely to be questioned by the industry.

Altria previously sent a letter to the FDA asking it to make it known that nicotine, the addictive component of cigarettes, does not cause cancer. The company said this would help smokers switch to potentially less risky, non-flammable options, such as: B. their heated tobacco stick Iqos and the nicotine pouch On.

The full publication of the results can be found here.

Categories
Business

Comcast Earnings Beat Expectations Amid Shift to Streaming

In a few years Peacock will have the right to stream National Football League games alongside NBC on Sundays. That could ripple feathers at some NBC branches if viewers drop the TV and choose Peacock to watch football. The streamer will also have some games exclusive.

Peacock can also act as a hedge against other cable operators like Charter or Cox when Comcast’s media division, NBCUniversal, is negotiating transportation fees.

Comcast also sells something that has proven to be more durable than sports and entertainment: broadband, the pipelines that all streaming platforms carry. In the first quarter, sales rose 12 percent to $ 5.6 billion. It will likely overtake cable television as the company’s biggest business.

Mr. Roberts highlighted the company’s plans to offer higher speeds that could exceed several gigabits per second and are many times faster than the current benchmark. “The robustness of our network in the US speaks for how we have positioned ourselves in competition with other providers,” he said.

Comcast sees itself first and foremost as a technology company and then as a media company. Even Peacock is seen as an extension of its broadband business.

Sales at NBCUniversal fell sharply as theaters remained largely closed and fewer people visited the Universal Orlando Resort and other theme parks due to the pandemic. Revenue declined 9 percent to $ 7 billion and profit before tax declined 12 percent to $ 1.5 billion. Advertising on television networks, which include NBC, MSNBC and Syfy, fell 3.4 percent to $ 2.1 billion.

Jeff Shell, the head of NBCUniversal, has launched a series of cost-cutting measures since its acquisition in January 2020, accelerated by the pandemic. This has helped maintain profits even when revenues have declined. The theme parks division was hardest hit, losing $ 61 million in the quarter. The company expected business to pick up in the summer.

Overall, Comcast exceeded expectations, reporting adjusted earnings of 76 cents per share on sales of $ 27.2 billion. The stock rose on Thursday morning. Investors were looking for earnings per share of 59 cents and sales of $ 26.6 billion.

Categories
World News

S&P, Nasdaq 100 futures are larger after Apple & Fb beat estimates

US stock index futures were higher early Thursday morning after major averages posted losses the previous day.

Futures contracts linked to the Dow Jones Industrial Average gained 88 points. S&P 500 futures and Nasdaq 100 futures also traded in positive territory.

The strong quarterly results from Apple and Facebook have fueled the future. Sales rose 54% for the quarter, with each product category posting double-digit growth, according to Apple. The company also announced it would increase its dividend by 7% and approved share buybacks of $ 90 billion. Facebook revenue increased 48% due to more expensive ads. Apple shares rose more than 2% in after-hours trading, while Facebook rose 6.15%.

The main averages closed in the red during normal trading. The Dow lost 165 points and lost 0.48%. The S&P 500 hit a record high but failed to sustain those gains and closed 0.08% lower. The Nasdaq Composite was down 0.28%.

The Federal Reserve said Wednesday that it would keep interest rates near zero. The S&P slid from its high after Federal Reserve Chairman Jerome Powell said during a press conference following the Federal Open Market Committee’s decision that there was some signs of froth in the market.

“Interest rates are unchanged for now, and despite the improvement in economic data, the cone talk was off the table at today’s Federal Reserve meeting,” said Bethany Payne, portfolio manager at Janus Henderson.

“As vaccination rates accelerate, employment boosts and expansive fiscal policies continue to support household and corporate incomes, investors are now looking for signs of whether the central bank’s safety net may be pulled out sooner than expected,” she added.

Thursday is the busiest day of the winning season. Around 11% of the S&P 500 is to be updated quarterly. Caterpillar, McDonald’s, Comcast, and Merck are among the names on deck before the market opens. Amazon, Gilead Sciences, Twitter, US Steel and Western Digital will publish quarterly results after the market closes.

According to Refinitiv, as of Wednesday morning, 86% of the S&P 500 components reported were above earnings estimates, with earnings 22.7% above expectations. In terms of sales, 77% of companies exceeded expectations.

The economic data released on Thursday will give investors a glimpse of the progress of the economic recovery. The first jobless claim numbers are released, with economists polled by Dow Jones expecting a pressure of 528,000. Pending home sales are also posted.

“The primary market trend remains positive,” said Keith Lerner, chief marketing strategist at Truist. “We expect a more troubled environment, however, as tensions between better economic growth and better earnings prospects versus the potential for higher taxes and rising interest rates as the economy normalizes,” he added.

Thursday marks the 100th day of President Joe Biden’s tenure. On Wednesday evening, he gave his first address to a joint congressional session where he unveiled his previously popular agenda, which included a $ 2 trillion infrastructure plan and a freshly unveiled $ 1.8 trillion plan for families, Includes children and students.

Become a smarter investor with CNBC Pro.
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.
Sign in to start a free trial today

Categories
Health

Johnson & Johnson JNJ earnings Q1 2021 beat estimates

Johnson & Johnson’s coronavirus disease (COVID-19) vaccines will be seen at Northwell Health’s South Shore University Hospital in Bay Shore, New York on March 3, 2021.

Shannon Stapleton | Reuters

Johnson & Johnson on Tuesday reported $ 100 million in first-quarter sales of its Covid-19 vaccine, which is on hold in the US while federal health officials investigate a rare blood clotting problem.

When it released its first quarter financial results, the company also reported earnings and sales that exceeded Wall Street’s expectations.

According to Refinitiv’s average estimates, J&J has fared compared to Wall Street expectations as follows:

  • Adjusted earnings per share: $ 2.59 per share versus $ 2.34 expected.
  • Revenue: $ 22.32 billion versus $ 21.98 billion expected.

The New Jersey-based company’s share price fell slightly in premarket trading after the report.

J & J’s pharmaceuticals business, which developed the single-shot vaccine Covid, had sales of $ 12.19 billion, up 9.6% year over year. Results were driven by sales of the company’s multiple myeloma drugs Darzalex and Stelara, a treatment for Crohn’s disease.

The company’s consumer unit, which makes products like Neutrogena Face Wash and Listerine, had sales of $ 3.5 billion, down 2.3% year over year. J&J executives told investors the decline was due to an “unfavorable comparison” with the previous year when people were stocking over-the-counter products due to the virus.

The medical device unit grossed $ 6.57 billion, up 7.9% as the pandemic recovery improves. The unit was badly hit last year when the pandemic forced hospitals to postpone elective surgeries and Americans stayed at home.

J & J’s chief financial officer Joseph Wolk told CNBC Tuesday that the three businesses are “healthier” than they were last year when they entered the pandemic.

The company increased its profit and sales forecast for the year. J&J now expects full year earnings of $ 9.42 to $ 9.57 per share, compared to its previous guidance of $ 9.40 to $ 9.60 per share. Revenue is expected to range between $ 90.6 billion and $ 91.6 billion, compared to its previous forecast of $ 90.5 billion to $ 91.7 billion.

J & J’s Covid vaccine was suspended in the US after six women developed a rare but potentially life-threatening bleeding disorder. One woman died and another was in critical condition.

The six women developed a condition known as cerebral sinus thrombosis within about two weeks of receiving the shot, US health officials said. CVST is a rare form of stroke that occurs when a blood clot forms in the venous sinuses of the brain. It can eventually leak blood into the brain tissue and cause bleeding.

The Chief Medical Officer of the White House, Dr. Anthony Fauci said last week the hiatus would give US health officials the time they need to thoroughly investigate the cases and “find some common ground among the women involved”.

Vamil Divan, an analyst at Mizuho Securities, said in a notice to investors Tuesday that he expects security concerns about the J&J shot to fuel further demand for Pfizer’s mRNA-based vaccine.

During an earnings meeting with investors, J&J executives said the company was working to “restore confidence in the vaccine” after reports of rare blood clots shocked some patients.

“We hope by making people aware of it [of the risk,] Not only do we use clear diagnostic and therapeutic guidelines to restore confidence in our vaccine, ”said Dr. Paul Stoffels, Scientific Director of J & J.

Wolk told CNBC that the company is working with US regulators to ensure they have all the information they need to make a decision about using the J&J vaccine. He expects the US to make a decision by the end of this week. A key body of the Centers for Disease Control and Prevention is due to meet on Friday to make a recommendation on the vaccine.

“We remain very confident and hope the benefit-risk profile will work,” he told CNBC’s Squawk Box, adding that the company continues to expect 100 million doses to be released in the first half of this year will, if the US investigation is conducted on the clot cases, “go well.”