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Intel (INTC) earnings This fall 2020

Intel (INTC) earnings Q4 2020

Bob Swan, then Interim Chief Executive Officer and Chief Financial Officer of Intel Corp., reacts during the inauguration of the company’s research and development facility in Bengaluru, India, on November 15, 2018.

Samyukta Lakshmi | Bloomberg | Getty Images

Pat Gelsinger, Intel’s new CEO, said Thursday that the company’s troubled 7-nanometer chip manufacturing technique is on track to make chips sold in 2023.

However, he warned that Intel is likely to be outsourcing more and more chips to outside foundries.

The remarks came in a earnings call with analysts covering the quarter ended last December. It’s the last full quarter under CEO Bob Swan before Gelsinger takes over on February 15.

Intel stock closed 6.46% on Thursday after the chipmaker reported earnings and sales that exceeded investor expectations and its own forecast, driven by strong PC sales. However, details of Intel’s earnings were released on financial cables minutes before trading closed. After that, Intel gave up its profits and the stock fell.

Here’s how Intel did it:

  • Earnings per share (EPS): Adjusted for $ 1.52 versus $ 1.10 expected based on refinitive consensus estimates.
  • Revenue: $ 20 billion versus $ 17.49 billion expected by refinitive consensus estimates.
  • forecast: Revenue for the first quarter of 2020 of $ 18.6 billion and earnings per share of $ 1.03.

“I am pleased with the progress made in the health and recovery of the 7 nanometer program,” said Gelsinger. “I am confident that the majority of our 2023 products will be manufactured in-house. Given the breadth of our portfolio, it is likely that we will expand the use of external foundries for certain technologies and products.”

Intel’s troubled 7-nanometer technology has weighed on the company as it struggled to match the advances made by Asian chipmakers in chip manufacturing. Intel has both designed and manufactured its processors in the past. Competitors like AMD today typically use outside foundries to manufacture their designs.

Intel’s latest chips use a 14-nanometer or 10-nanometer process, while competing chips made by outside foundries like TSMC and Samsung currently use a 5-nanometer process. A smaller process is better because more transistors can fit in the same chip, increasing performance and efficiency, and creating a superior processor.

In December, activist hedge fund Third Point and its CEO Dan Loeb said in a letter to Intel’s board that the lag behind competitors was a critical vulnerability. He said Intel has fallen behind Asian chip foundries and urged Intel’s board of directors to make various changes to the company, including considering whether to outsource chip production or divest parts of the business such as acquisitions.

Intel customers like Apple, Amazon, and Microsoft have developed their own processors or have signaled that they intend to.

In the quarter ended December, Intel announced that the strength of PC sales helped it exceed expectations. It has been said that 33% more PCs with Intel chips were sold than at the same time last year, especially laptops. PC sales have been strong over the past year as people who work from home or go to school try to update their computers.

Intel increased its cash dividend 5% to $ 1.39 per share. However, the forecasts for revenue, earnings per share and operating margin for the first quarter were all lower than last year.

Revenue for the Intel data center group, which sells chips to companies that operate servers, declined 16% year over year for the quarter ended December.

Mobileye, its self-driving auto technology subsidiary, posted a 39% increase in revenue for the quarter year over year, according to Intel. Mobileye is still a small part of Intel, however – it had sales of $ 967 million in 2020, while Intel’s PC group had sales of $ 40.1 billion over the year.

Gelsinger, who most recently was CEO of VMWare, has a technical background and started his career at Intel. He is expected to push Intel to become more competitive in terms of chip manufacturing. Intel announced that it began manufacturing 10-nanometer chips during the quarter and that production will continue to increase this quarter.

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United (UAL) earnings This autumn 2020

United (UAL) earnings Q4 2020

A United Airlines-operated Boeing 787 Dreamliner takes off from Los Angeles International Airport.

Getty Images

United Airlines posted a fourth-quarter loss on Wednesday, warning that sales would continue to suffer in early 2021 as the coronavirus pandemic drags on.

Here’s how United performed in the quarter compared to Wall Street’s expectations based on Refinitiv’s average estimates:

  • Adjusted earnings per share: a loss of $ 7 versus an expected loss of $ 6.60 per share.
  • Revenue: $ 3.41 billion versus expected $ 3.44 billion in revenue.

United’s fourth-quarter revenue declined 69% year over year to $ 3.41 billion, below analysts’ estimates of $ 3.44 billion. The net loss of $ 1.9 billion for the quarter compared to a profit of $ 641 million last year.

The airline’s full year net loss of $ 7.07 billion was the largest since 2005.

The Chicago-based airline reported an adjusted loss of $ 7 per share, compared to estimates of a loss of $ 6.60 per share. The quarter consumed an average of $ 33 million per day, including debt and severance payments. Core daily cash burn removing these items averaged $ 19 million in the fourth quarter, down $ 5 million from the third quarter.

The airline is not expecting a quick turnaround early this year. Revenue in the first quarter is expected to be 65% to 70% below 2019 levels, the airline said. The estimated capacity in the first three months of 2021 will be at least 51% below the same period in 2019, reflecting a similar outlook from American Airlines.

The airline called 2021 a “year of transition” and expects to exceed its margins for 2019 to 2023.

United’s cargo business again proved to be a bright spot in the pandemic. Revenue for the quarter increased 77% to $ 560 million. This unit contributed 16% to fourth quarter revenue, up from just 3% last year. Passenger airlines have tried to bolster this business over the past year as customers around the world faced a crisis in air cargo capacity.

United shares fell 1.7% in after-hours trading, following the report.

Airline executives said the widespread availability of coronavirus vaccines will lead to a recovery in air travel. However, the introduction of the vaccine was slow and chaotic, characterized by a lack of doses.

United executives will be holding a call Thursday at 10:30 a.m. ET to discuss their earnings and prospects.

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Morgan Stanley (MS) This autumn 2020 earnings beat estimates

Morgan Stanley (MS) Q4 2020 earnings beat estimates

Morgan Stanley posted fourth quarter earnings and revenue on Wednesday that exceeded analysts’ expectations for strong trading, investment banking and wealth management results.

The company reported a 51% increase in earnings to $ 3.39 billion, or $ 1.81 per share. Excluding the $ 189 million integration cost associated with last year’s E-Trade acquisition, earnings per share were $ 1.92, compared to an estimate of $ 1.27 by analysts surveyed by Refinitiv. Revenue of $ 13.64 billion was over $ 2 billion above the estimate of $ 11.54 billion.

“The company had a very strong quarter and record results for the full year with excellent performance in all three businesses and regions,” said CEO James Gorman in the press release. “Our unique business model continues to serve us well as we continue to implement our long-term strategy with the acquisitions of E * TRADE and Eaton Vance.”

Expectations were high after robust trade and investment banking results at rivals Goldman Sachs and JPMorgan Chase helped boost profitability, and Morgan Stanley did not disappoint.

Investment banking had sales of $ 2.3 billion, half a billion dollars more than FactSet’s survey of $ 1.81 billion. The result was due to stocks from the underwriting of stocks, which more than doubled compared to the previous year due to robust IPOs and follow-up activities.

Stock trading generated sales of $ 2.49 billion, $ 350 million more than the estimate of $ 2.14 billion. Fixed income trading grossed $ 1.66 billion, $ 200 million more than analysts expected.

The wealth management division had sales of $ 5.68 billion, nearly $ half a billion more than analysts expected, thanks to higher assets and higher fee-generating activity, as well as the impact of the e-trade deal.

Morgan Stanley has the largest wealth management business of the six largest US banks, which typically benefit from rising markets. That business is backed by the bank’s $ 13 billion acquisition of E-Trade, which was announced a year ago. The fourth quarter is the first period in which E-Trade will be integrated into the larger company.

The bank’s shares were virtually unchanged after premarket trading rose 1.9%.

Gorman drove a small winning lap in his annual update of the company’s strategic goals, setting out the case that his company was at a turning point. In the next ten years, Gorman’s market share gains and acquisitions will sustainably generate higher sales and returns than in previous periods.

The company kept its long-term goals largely unchanged, saying the return on tangible equity will be 17% or more, instead of the 15% to 17% range reported last year.

“We are in the growth phase of this company for the next decade,” Gorman told analysts after the results were released.

Morgan Stanley is the last major US bank to post earnings in the fourth quarter. JPMorgan and Goldman Sachs beat analysts’ expectations for sales and earnings aided by trading, while Citigroup, Wells Fargo and Bank of America were disappointed with sales as credit margins were squeezed.

The shares of New York-based Morgan Stanley rose 33% in 2020, outperforming the KBW Bank Index’s 4.3% decline.

Here are the numbers:

  • Adjusted earnings of $ 1.92 per share versus $ 1.27 estimate by analysts surveyed by Refinitiv.
  • Revenue of $ 13.64 billion versus an estimate of $ 11.54 billion.
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Procter & Gamble (PG) Q2 2021 earnings high expectations

Procter & Gamble (PG) Q2 2021 earnings top expectations

Procter & Gamble raised its outlook for the second quarter in a row on Wednesday.

Revenue increased 8% in the second quarter, driven by higher demand for cleaning products and shaving and styling products as the pandemic continues to affect consumer behavior.

The company, whose brands include Tide, Pampers and Bounty, expects sales to grow 5% to 6% in fiscal 2021, after previously forecasting growth of 3% to 4%. Adjusted earnings are also projected to increase 8% to 10% from the previous target of 5% to 8%.

The company’s shares fell 1% in the early trading day.

The company reported for the quarter ended December 31st, versus Wall Street’s expectations, based on an analyst survey conducted by Refinitiv:

  • Earnings per share: $ 1.64, adjusted versus expected $ 1.51
  • Revenue: $ 19.75 billion versus $ 19.27 billion expected

P&G reported net income of $ 3.85 billion, or $ 1.47 per share, for the second quarter, compared to $ 3.72 billion or $ 1.41 per share last year.

Excluding items, the company earned $ 1.64 per share, beating the analysts surveyed by Refinitiv at $ 1.51 per share.

Net sales rose 8% to $ 19.75 billion, beating expectations of $ 19.27 billion. Organic sales, which exclude the effects of acquisitions, divestments, and foreign currencies, also increased 8%. New products helped increase sales for the quarter.

“It’s a combination of planned products and a quick response to real, emerging needs,” said CFO and COO Jon Moeller in CNBC’s Squawk Box.

For example, Microban 24-hour disinfectant spray was launched in February just before U.S. consumers started buying up every cleaning product they could find due to the pandemic.

In P & G’s Fabric & Household Care segment, organic sales increased 12% for the quarter. This is the company’s largest increase by business area. Home care, which includes Comet cleaning products, saw 30% organic sales growth as more consumers cleaned surfaces and dishes.

The Healthcare segment, which includes Oral B and Vicks products, posted organic sales growth of 9%. Price increases combined with consumer demand for high-end products boosted sales. However, the company said demand for respiratory products was lower this year as fewer people caught cold or flu.

In the nursing and baby, gynecological and family care segments, organic sales increased 6% in the quarter. Organic P&G Grooming Equipment sales increased 20% as consumers search for styling and shaving products for the home.

P & G’s beauty segment, which includes Olay and SK-II, posted organic sales growth of 5%.

The distribution of vaccines has raised questions about whether consumer giants like P&G or Conagra Brands will be able to maintain the same pace of growth once their customers return to their previous routines. At a press conference, Moeller announced that demand for some of its products, which have seen significant sales increases, is likely to be lower. However, other products that have been weakened by recent trends may bounce back. The company also predicts the disappearance of “some very strong headwinds” such as supply chain challenges.

For fiscal 2021, P&G predicts foreign currency headwinds that will cost about $ 100 million after tax, as well as higher freight costs that will also cost $ 100 million after tax.

The company expects to buy back up to $ 10 billion of its own shares over the course of the fiscal year, from a previous estimate of $ 7 billion to $ 9 billion.

Read the full results report here.

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Dow futures soar 200 factors on better-than-expected Goldman earnings, stimulus hopes

Dow futures jump 200 points on better-than-expected Goldman earnings, stimulus hopes

Stock futures rose Tuesday, pointing to a rebound from a troubled week as investors hailed Goldman Sachs with excellent earnings and gave signals of another big stimulus and a faster pace of vaccine distribution.

Futures contracts linked to the Dow Jones Industrial Average rose 200 points, or 0.7%. S&P 500 futures were up 0.8%. Nasdaq 100 futures were up 1%.

Goldman’s shares rose 2.7% in premarket trading after the bank beat expectations for fourth-quarter earnings and sales. The blowout results were based on the strong performance of stock traders and investment bankers.

Bank of America was down more than 1% in the premarket after the bank posted quarterly sales that fell short of expectations. The result, however, was slightly above the estimate.

“We expect investors to review the fourth quarter results and focus on company comments on how the rebound is progressing in 2021,” said David Kostin, head of US equity strategy at Goldman, in a note. “With investors in mind through 2021, politics remains a major driver of corporate earnings.”

Janet Yellen, Joe Biden’s nominee for Treasury Secretary and former Federal Reserve chairman, will appear before the Senate Finance Committee Tuesday. Yellen’s prepared remarks call on the federal government to put in a big incentive to support business.

“Neither the president-elect, nor I are proposing this bailout without appreciating the country’s debt burden. But with interest rates at historic lows, it is smartest to act big right now,” Yellen said in prepared remarks. “I believe the benefits will far outweigh the costs, especially when it comes to helping people who have had problems for a long time.”

Stocks that would benefit most from further stimulus and a faster vaccine roll-out resulted in profits in premarket trading. Norwegian Cruise Line Holdings shares were up 3%. Boeing gained 2.8% in premarket trading. American Airlines gained 2.5% in early trading.

Some tech stocks also rebounded from their losses over the past week.

Stocks are “likely to trend higher again after a healthy consolidation ends,” Fundstrat’s Tom Lee wrote in a note citing an increase in vaccination rates and an eventual rollover in coronavirus cases.

Dr. Rochelle Walensky, Joe Biden’s election to head the Centers for Disease Control and Prevention, said Sunday she was confident the U.S. will have enough vaccine doses to meet the new administration’s goal of 100 million people in 100 days to vaccinate.

The movement in futures comes after stocks fell last week. The S&P 500 lost 1.5% for its first weekly loss in three years, while the Dow and Nasdaq Composite lost 0.9% and 1.5%, respectively, and both had their first negative week in five years.

The market fell slightly last week, despite Biden unveiling its $ 1.9 trillion plan for economic relief as the country tries to deal with the Covid-19 pandemic. Biden is slated to be inaugurated with the National Guard in Washington on Wednesday after security concerns rose following a January 6 riot in the U.S. Capitol.

“We’ll have plenty of global economic data and US earnings reports in the coming week. What matters is whether President Elect Biden’s inauguration on January 20 will be peaceful and whether the Senate Republicans are sending signals of constructive cooperation or a repeat of 2020. ” Julian Emanuel, chief strategist for stocks and derivatives at BTIG, said in a statement to clients on Sunday.

The US stock market closed on Monday in honor of Martin Luther King Jr. Day.

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Goldman Sachs (GS) This fall 2020 earnings crushes estimates

Goldman Sachs (GS) Q4 2020 earnings crushes estimates

David Solomon, Chairman of the Board of Directors of Goldman Sachs & Co., speaks during an interview with Bloomberg Television at the Milken Institute Global Conference in Beverly Hills, California, USA, on Monday April 29, 2019.

Patrick T. Fallon | Bloomberg | Getty Images

Goldman Sachs exceeded analyst expectations for fourth quarter earnings and sales on Tuesday due to the strong performance of the company’s stock traders and investment bankers.

The bank posted earnings of $ 12.08 per share, defeating the estimate of $ 7.47 per share by analysts polled by Refinitiv. Sales of $ 11.74 billion exceeded expectations by approximately $ 1.75 billion.

The shares of the New York-based bank rose 2.4% in premarket trading.

“We’ve been able to help our customers navigate a challenging environment and as a result have strong results across the franchise while driving our strategic priorities,” said David Solomon, CEO of Goldman, in the press release. “We hope this year brings much-needed stability and a break from the pandemic, but we remain poised to deal with a variety of outcomes and ready to serve our customers’ needs.”

The expectations of Solomon were high. Last week, JPMorgan Chase posted record fourth-quarter trading and advisory results that helped the bank beat earnings estimates.

At Goldman, stock traders saw revenue grow 40% year over year to $ 2.39 billion, surpassing the estimate of $ 1.89 billion by roughly $ half a billion. Like most of its competitors, the fixed income business fell short of expectations for the quarter, posting revenue of $ 1.88 billion, which is below the estimate of $ 2.06 billion.

Investment banking revenues rose 27% to $ 2.61 billion, beating the estimate of $ 2.15 billion. This is due to higher income from subscriptions to stocks and completed mergers.

“Goldman Sachs’ profits were shockingly good,” said Octavio Marenzi, CEO of capital market management consultancy Opimas. “We expected a strong performance, but Goldman has outperformed almost all of its businesses. Goldman’s activities are focused entirely on investment banking and trading, areas that did well everywhere but particularly well at Goldman.”

Of the six largest US banks, Goldman generates most of its revenue from Wall Street activities, including trading and investment banking. This has been a disadvantage for the company in recent years as retail banking has driven the industry’s record profits. For the final quarter of the year hit by the coronavirus pandemic, Goldman’s model could prove to be an asset.

With unprecedented actions by the Federal Reserve earlier in the year, wide open markets should help usher in the best year for Wall Street trading since the financial crisis. Meanwhile, investment bankers are benefiting from rising demand for IPOs and a record rate of debt issuance.

Goldman shares rose 11% in 2020, outperforming the KBW Bank Index’s 4.3% decline.

Here are the numbers:

Earnings: $ 12.08 per share versus $ 7.47 per share, according to Refinitiv.
Revenue: $ 11.74 billion versus $ 9.9 billion.

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Citigroup earnings This autumn 2020 beat revenue estimates

Citigroup earnings Q4 2020 beat profit estimates

Jane Fraser, General Manager for Latin America at Citigroup Inc., speaks during the Milken Institute Global Conference in Beverly Hills, California on Monday, April 29, 2019.

Kyle Grillot | Bloomberg via Getty Images

Citigroup released fourth quarter results on Friday that beat analysts’ earnings estimates as the company partnered with rival JPMorgan Chase to free up reserves for credit losses.

Earnings fell 7% to $ 4.63 billion, or $ 2.08 per share, compared to $ 1.34 per share expected by analysts surveyed by Refinitiv, according to Citigroup. Company-wide revenue declined 10% to $ 16.5 billion, below the estimate of $ 16.7 billion.

The bank released $ 1.5 billion in reserves for loan losses, a move larger than analysts expected. That compares with a reserve build-up of $ 436 million in the third quarter and $ 253 million a year ago. As a result, borrowing costs for the period were more than $ 2 billion lower than a year ago.

Over the past year, banks have allocated tens of billions of dollars in provisions for loan losses in the expectation that shutdowns caused by the Covid shutdown would force customers large and small to default on credit. Now it seems like the industry has turned a corner and will begin releasing some of those reserves, increasing earnings and their ability to buy back stocks this year.

“As a sign of the strength and longevity of our diversified franchise, our sales remained unchanged through 2019 despite the massive economic impact of COVID-19,” said outgoing CEO Mike Corbat in the press release.

Citigroup shares fell 6.2%.

Citigroup made history when it announced that Jane Fraser would take over the running of the company. This made it the first major Wall Street bank to be run by a woman. Weeks before her successor at Corbat, Fraser spoke to investors and analysts for the first time on Friday. Shareholders wanted to know how Fraser, a former McKinsey partner who led Citi’s Latin American operations before becoming president in 2019, will improve the company’s bottom line.

Fraser said she is embarking on a review of the company’s strategy to best position it to meet its ROI targets and meet regulatory requirements.

“We’re taking a clinical look at our strategic positioning and assessing which companies can achieve leading market positions in a much more digitalized world,” said Fraser. “Like any true Scot, I believe there is value in unlocking by simplifying the company.”

Citigroup, the third largest US bank by assets, was hurt by relatively poor performance when compared to competitors such as JPMorgan Chase. The results have frustrated investors, including activist hedge fund ValueAct. The bank is also working on a government agency agreement to improve its internal risk controls after it accidentally sent nearly $ 900 million to Revlon lenders last year.

Citigroup has announced that trading sales will increase 15% year over year in the fourth quarter, while investment banking fees should increase 10% to 15%.

The shares of the New York-based bank fell 23% last year, compared with the KBW Bank Index’s 4.3% decline.

Here are the numbers:

  • Earnings: $ 2.08 per share versus $ 1.34 per share for analysts surveyed by Refinitiv.
  • Revenue: $ 16.5 billion versus an estimate of $ 16.7 billion.

JPMorgan on Friday reported fourth quarter earnings and sales that were above estimates.

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JPMorgan earnings This autumn 2020

JPMorgan earnings Q4 2020

Jamie Dimon, CEO of JP Morgan Chase, will appear in CNBC’s Squawk Box on January 22nd, 2020 at the 2020 World Economic Forum in Davos, Switzerland.

Adam Galica | CNBC

JPMorgan Chase beat analysts’ estimates for fourth quarter earnings on better-than-expected trading results and a boost from releasing funds previously earmarked for credit losses.

The company posted earnings of $ 3.79 per share, beating Refinitiv’s poll of $ 2.62 per share. Even without the increase in loan reserves by 72 cents per share, the bank would have exceeded the estimates. The company had sales of $ 30.16 billion, beating the estimate of $ 28.7 billion.

Jamie Dimon, CEO of JPMorgan, cited the two main developments that occurred in late 2020 – news of effective coronavirus vaccines and another round of government incentives – as reasons for running down his bank’s reserves. The company announced that it had released $ 2.9 billion from its stack of cash earmarked for expected loan defaults in the quarter, increasing earnings by $ 1.9 billion from approximately $ 1 billion. Dollar in depreciation.

“While positive vaccine and stimulus developments this quarter have contributed to these reserve releases, our credit reserves of over $ 30 billion continue to reflect significant economic uncertainties in the near term and will enable us to withstand an economic environment far worse than current Baseline forecasts of most economists, “Dimon said in a statement.

Dimon added that he did not view the $ 2.9 billion reserve release as part of the bank’s core operating income, but rather the result of calculations that “now include several multi-year hypothetical probabilistic scenarios that may or may not occur “and this could bring quarter to quarter volatility.

A bright spot for Wall Street in 2020 was trading, which is expected to be the best year in terms of total revenue since the financial crisis thanks to unprecedented moves by the Federal Reserve to support markets. Investment bankers also benefited from the fact that wide open markets brought with them increased demand for IPOs and a record rate of debt issuance.

Last month, Dimon expected trade and investment banking revenue to be 20% higher in the fourth quarter than a year earlier.

Analysts might ask Dimon about succession planning after a health crisis he had last year. Although it was widely reported that Dimon had heart surgery in March last year, he recently told the Wall Street Journal that his condition was so precarious that he thought he “couldn’t make it”.

Analysts will also be excited to see how quickly the bank expects share buybacks. JPMorgan announced a $ 30 billion share buyback program last month after the Federal Reserve announced that the industry could resume buybacks in the first quarter.

JPMorgan stocks were down 8.7% over the past year, compared with the KBW Bank Index’s 4.3% decline.

Here are the numbers:

  • Earnings: $ 3.79 per share versus $ 2.62 per share, according to Refinitiv.
  • Revenue: $ 30.16 billion versus $ 28.70 billion according to Refinitiv.

    This story evolves. Please try again.

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Lululemon sees earnings at prime finish of outlook because of holidays

Lululemon sees earnings at top end of outlook thanks to holidays

Pedestrians seen walking past the Canadian sportswear retailer Lululemon in Shanghai.

Alex Tai | SOPA pictures | LightRocket | Getty Images

Lululemon said Monday that fourth quarter earnings and sales will now be at the high end of the previous outlook thanks to the strong performance during the vacation.

Ahead of virtual meetings with analysts and investors this week at the annual ICR conference, the company called for adjusted earnings per share growth at the high end of its previously announced mid-single-digit growth expectations. Net sales for the quarter ended Jan. 31 are expected to grow at the high end of its expectations for medium to high teens, it said in a statement.

Lululemon stock was down more than 2% on the Monday before trading. The stock is up more than 54% in the past 12 months.

“We are pleased with the momentum during the vacation because our investments in Lululemon and Mirror have enabled us to connect with guests both physically and digitally,” said CEO Calvin McDonald in a statement.

In December, Lululemon posted third-quarter sales of $ 1.1 billion, up 22% year over year.

Lululemon has not given an outlook for the full year due to the ongoing effects of the Covid pandemic.

Read the full version of Lululemon.

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Walgreens (WBA) Q1 2021 earnings beat

Walgreens (WBA) Q1 2021 earnings beat

The Walgreens Boots Alliance on Thursday reported first-quarter earnings that exceeded Wall Street’s expectations, aided by stronger-than-expected pharmacy sales.

Walgreens stock was up about 7% on Thursday morning.

Walgreens reported, versus analyst expectations for the first quarter ended November 30th: based on refinitive data:

  • Earnings per share: $ 1.22, adjusted versus expected $ 1.03
  • Revenue: Expected to be $ 36.31 billion versus $ 34.95 billion

For the first quarter, Walgreens posted a net loss of $ 308 million, or 36 cents per share, compared to net income of $ 845 million, or 95 cents per share, last year.

Excluding a charge from investing in AmerisourceBergen, the company earned $ 1.22 per share, above the $ 1.03 analysts surveyed by Refinitiv expected.

Revenue rose to $ 36.31 billion from $ 34.34 billion a year ago, surpassing analysts’ $ 34.95 billion.

Walgreens said its US pharmacy sales increased as there were more prescriptions filled and flu shots. The comparable pharmacy turnover increased by 5% compared to the previous year. The higher sales came despite less pedestrian traffic, lower sales of cough, cold and flu medication, and fewer new prescriptions as people skipped the doctor’s office and socially distanced themselves during the pandemic.

In the UK, Walgreen’s like-for-like pharmacy sales increased 2.5% year over year, mainly driven by reimbursement from the national healthcare system. Boots UK’s businesses were particularly hard hit by restrictions during the pandemic. The NHS payment helped offset a drop in prescription volumes.

Walgreens reiterated its outlook for low single digit growth in adjusted earnings per share for the year. However, the company cautioned against headwinds in the second quarter as the UK is again locked and customers continue to restrict trips to the store.

“We are now much better at managing through lockdown, which is good, but it is also a cloud in the future,” said CFO James Kehoe on a profit call on Thursday. “Second, you see the large number of incidents in the US that are leading to fewer doctor visits pretty quickly.”

For the company, this means fewer prescriptions and fewer visits to the branches.

However, Kehoe said Walgreens continues to focus on long-term opportunities rather than short-term pandemic-related challenges. He said that The company has cut costs and is investing in areas of growth as the drugstore industry faces disruption and the pandemic changes shopping patterns. It adds more Health services and expansion of the digital offer. The company has unveiled a new mobile app and is now offering roadside pick-up in its US stores, which enables customers to prepare online purchases in just 30 minutes.

In July, the company announced plans to open hundreds of primary care clinics in its VillageMD-owned and operated branches. It said on Wednesday it would speed up the schedule for this and expect 600 to 700 clinics to open over the next four years.

The company also announced on Wednesday that it would divest its European drug distribution business by selling it to US drug wholesaler AmerisourceBergen for $ 6.5 billion. The sale allows Walgreens to focus on the pharmacy and retail business.

The company has almost completed its planned store closings. Kehoe said it closed 232 of the 250 Walgreens stores that are slated to close and 158 of the 200 Boots UK stores. He said it is on track to achieve more than $ 2 billion in annual cost savings by fiscal 2022.

In the past year, more than 4,000 jobs were cut in the Boots UK and Boots Opticians business units, representing a 7% reduction in the workforce in these units.

Stefano Pessina, CEO of the Walgreens Boots Alliance, is stepping down after five years in the role, but his successor has not yet been named. Its rival CVS Health is also getting a new CEO. Karen Lynch will succeed longtime CVS CEO Larry Merlo in February.

Walgreens began giving Covid vaccines to employees and residents of nursing homes and other long-term care facilities in mid-December. There are plans to offer the recordings to the public in drug stores as soon as they become available.

Walgreens shares are down 28% over the past year, taking their market value to $ 37.2 billion.

Read the company’s full press release here.